schappe and spun-silk yarns such as velvets, plushes, etc.—and could be readily adopted. SIDNEY BLUMENTHAL & Co. (Inc.), Shelton, Conn., SIDNEY BLUMENTHAL, Treasurer. THE SALT'S TEXTILE MANUFACTURING CO., Bridgeport, Conn., THE AMERICAN VELVET Co., Stonington, Conn., CHAS. A. WIMPFHEIMER, Proprietor. A. WIMPFHEIMER & BRO. Mr. UNDERWOOD. On this first paragraph, "Silk partially manufactured from cocoons or from waste silk," under that paragraph, what is the amount of goods produced in this country? Mr. BLUMENTHAL. I am not quite positive as to that, but I believe that the census statistics of the United States show that at the last census a production of 570,000 pounds of spun material, at a valuation of about a million and a half, was produced. Mr. UNDERWOOD. There are no importations in this line of goods at all, are there? Mr. BLUMENTHAL. I am not certain as to materials partially manufactured but not yet spun. Mr. UNDERWOOD. You know of none in your trade, do you? Mr. BLUMENTHAL. I am not directly concerned in the operations, excepting that we use materials similar to those which are made here, and the process of this initial operation, of one part of the manufacture, is one that I have not looked into as deeply as should be required to give you an intelligent answer. Mr. UNDERWOOD. I do not see any report in the government statistics of any importations, and therefore I presume that the present duty is prohibitive. Do you know anything to the contrary? Mr. BLUMENTHAL. I do not know anything to the contrary. Mr. UNDERWOOD. And if it is a prohibitory duty, I presume there would be no objection to our making a reduction in that clause? Mr. BLUMENTHAL. None that I can see, unless it shall cripple existing industries, which might offer serious objections to such a proposition. Mr. UNDERWOOD. Paragraph 385, "Thrown silk, not more advanced than singles "are you familiar with the industry in that schedule? Mr. BLUMENTHAL. Somewhat. Mr. UNDERWOOD. What is the production of the American article? Mr. BLUMENTHAL. I think I mentioned it just now. The paragraph, I believe, that you refer to includes thrown silks and spun silks, does it not? I haven't the paragraph clear in my mind. Mr. UNDERWOOD. "Thrown silk, not more advanced than singles, tram, organzine, sewing silk, twist, floss, and silk threads or yarns of every description, except spun silk, 30 per cent ad valorem." Mr. BLUMENTHAL. There is a vast industry in the thrown-silk division of silk manufacture, and practically the largest proportion of that used in manufacture is produced in this country. Mr. UNDERWOOD. Do you think that 99 per cent is produced? Mr. BLUMENTHAL. I should not say as to that figure, but not very far from it; somewhere between 95 and 99 per cent. Mr. UNDERWOOD. Most of that silk is made by machine work, is it not; not hand labor? Mr. BLUMENTHAL. Very largely machine work. Mr. UNDERWOOD. Therefore it could stand a reasonable reduction in order to obtain some revenue? Mr. BLUMENTHAL. I am not sure as to that, not having given it any consideration. Mr. UNDERWOOD. The next paragraph is 386. Mr. BLUMENTHAL. The brief is more in regard to the other portions of the paragraph to which you have alluded. You have only referred to thrown silk. There are also other rates of duty to which this paragraph refers. In the matter of materials spun from the waste silk, concerning which you asked me before, and the duties operative now in protection of manufacture and for the purpose of giving the Government revenue, they are compound. At one time, and for many years, they were ad valorem. At the present time they are partly specific and partly value duties. We suggest in our brief, so far as possible, a specific duty, a weight duty, be practically adopted for the purpose of having stability and uniformity both in the revenue to the Government and in the protection of the manufacturer and consumer using the material. Mr. UNDERWOOD. You have filed tables for the committee? Mr. BLUMENTHAL. I have, sir. Mr. UNDERWOOD. Are you familiar with the velvet schedule? Mr. UNDERWOOD. What is the amount of production in this country? Mr. BLUMENTHAL. Production in the velvet industry has increased very, very largely during the past fifteen years; I believe more so during the past five to eight years. None the less, importations have kept pace in growth with the increase of industry, so that there has been no vital advantage apparently, either in the importer's or the manufacturer's favor. Mr. UNDERWOOD. I notice the importations under this schedule amount to 735,000 pounds at a valuation of $2,683,000. What percentage would you say that was of the total consumption in America? Mr. BLUMENTHAL. The foreign valuation? Mr. UNDERWOOD. Yes. Mr. BLUMENTHAL. That would mean duty paid about $3,500,000 or $4,000,000, I should say. I estimate the production in this country at present at from $6,000,000 to $7,000,000. So that there is possibly one-third of the total consumption imported. Mr. UNDERWOOD. That is, one-third imported and two-thirds produced here? Mr. BLUMENTHAL. I should think so. Mr. UNDERWOOD. Is the price of the goods fixed by close competition in this line of goods? Mr. BLUMENTHAL. Very much so. SIDNEY BLUMENTHAL, NEW YORK CITY, FILES SUPPLEMENTAL BRIEF FOR AMERICAN SILK MANUFACTURERS. Hon. E. J. HILL, NEW YORK, December 16, 1908. House of Representatives, Washington, D. C. we MY DEAR SIR: The opportunity for securing such facts as intended to lay before the Committee on Ways and Means not hav ing been sufficient in point of time to allow us to have them ready when we had the privilege of presenting our brief on December 1, I take the liberty of inclosing an additional statement which I ask you to kindly bring to the attention of the Committee on Ways and Means so as to supplement and strengthen the recommendations we have made with regard to a specific duty on spun silk, schappe, etc., substantially as proposed in the schedule which was suggested to take the place of the one row in operation, covering paragraph 385, by the Salts Textile Company, Bridgeport, American Velvet Company, Stonington, and Sidney Blumenthal & Co. (Incorporated), Shelton, ail of Connecticut, representing themselves and other manufacturers. We are entirely at the command of the Committee on Ways and Means for any further information that is in our power to furnish. Thanking you for your courtesy, I am, Yours, very truly, SIDNEY BLUMENTHAL, Treasurer. NEW YORK, December 16, 1908. Washington, D. C. The WAYS AND MEANS COMMITTEE, GENTLEMEN: Since we appeared before your honorable body on December 1, we have had an opportunity to compile some further information, not available to us up to that time, which we respectfully submit for your consideration, in conjunction with the brief already filed. The following is a list of the importations of spun silk and schappe yarns according to the figures compiled by the United States Government: Eighteen hundred and ninety was the last year prior to the enactment of the McKinley tariff. The McKinley tariff being in operation from 1891 to 1895, was succeeded by the Wilson tariff from 1896 up to part of 1898, and the Dingley tariff, now existing, followed at the compound rate which is now prevailing. During the McKinley tariff the rate was 35 per cent, the Wilson tariff then followed with 30 per cent ad valorem and was succeeded by a compound rate of duty intended to restore the duties to an equivalent of 35 per cent, the 75941-H. Doc. 1505, 60-2-Vol 6- -2 point at which they were operative during the existence of the McKinley tariff. We respectfully submit that in estimating an equivalent for the ad valorem of 35 per cent the Dingley tariff was based on the value of importations, as they were made into the ports of the United States during the preceding years of 1896, 1897, 1898. It will be noticed that the average values of all importations during 1896 was $1.28; 1897, $1.35; 1898, $1.23; 1899, $1.15 per pound, the average value rising for the year 1900 to $1.52 and falling back to $1.34 in 1905. Taking this period of ten years, from 1896 to 1905, inclusive, as a basis it will be seen that the average value is somewhere between $1.15 and $1.52 for the purposes of estimating the point at which a specific duty can be fairly imposed. It will be conceded that a specific duty, if fair to the Government and to the producer in this country at a normal time, becomes doubly effective, both from the point of revenue and from the point of protection in times of depression, and is only slightly lowered in percentage at a time when the revenues are naturally increased by the larger business which causes the advance in raw materials and always at a time when the producer himself suffers least from foreign competition, a competition which is mainly injurious at times when low-priced raw materials and excess stocks on hand threaten to make it unfair. During the period of ten years, since the compound rates now prevailing have been in existence, over 20,000,000 pounds of Schappe and spun-silk yarns have been imported into the United States. As a matter of fact, the imports of spun silk have increased between 1890 and 1905, according to the statistics of the United States Census, to the extent of 190 per cent, whereas the number of employees and the wages involved in the production of silk goods of all kinds in this country have increased by only 60 per cent, and the estimated increase of spun-silk yarns made in this country during the same period is hardly 50 per cent. According to the census statistics of the year 1900, pages 203 and 204, the production of velvets in this country aggregated $4,959,971, chiefly in the popular grades, such as go largely into the consumption and are bought by the wage-earner of the United States. In spite of the fact that the manufacturers of these goods, through improvements in machinery and cutting down of profits, have reduced the prices of the manufactured velvets considerably during that time, it is estimated that the production of velvets and plushes in this country is now hardly less than $7,000,000, an increase of fully 40 per cent in eight years. A still larger increase has resulted in the use of spun silks for the weaving of silk fabrics other than pile fabrics. Furthermore, we draw your attention to the report recently issued showing that the invoice value of the importations for the year ending June 30, 1908, 2,140,848 pounds of spun silk (of a foreign value of $3,702,232), practically equaled those for the year ending June 30, 1907, of 2,545,000 pounds, at a foreign value of $3,789,845. If the average value of imports of the years from 1896 to 1899, on which the Dingley tariff was based, is taken at $1.28 and is compared with the average value of the importations for the year ending 1908, which is $1.72, it will be seen that the consumer in 1908 was made to pay 33 per cent more duty than that which was contemplated by the schedule of the Dingley tariff bill at the time it was made effective in 1898. Under dates of December 12 and 16, 1908, we have on file letters from the representatives of the two largest spinners of Schappe and spun silk in the world, certainly the largest importers of materials into the United States, the Société Anonyme de Filatures de Schappe of Lyons, and the Société Industrielle pour la Schappe of Basle, as follows: Referring to your verbal request, below statement of percentage of numbers of Schappe yarns, shipped to the United States by the Société Anonyme de Filatures de Schappe, Lyons, for eighteen months from June 1, 1907, to November 30, 1908. Numbers..... '50 70 80 85 100 110 120 140 160 200 250 Percentage... 1.26 8.89 1.07 1.16 35.78 1.02 0.20 5.52 11.30 33.97 0.10 The proportion of importations of Schappe yarn from Société Industrielle pour la Schappe of Basle, expressed in percentage, were as follows: Taking these importations as a basis for the application of specific duties such as we have proposed to the Ways and Means Committee, it is plain that the basis we have suggested would be, not only specific but also as equitable as the rates of duty heretofore prevailing. If the duty had been collected according to the aforesaid purely specific schedule, as submitted to your honorable committee, for the importations of the year 1907, it would have amounted to $1,328,875 as against the duties actually collected of $1,427,480. These were collected on an average foreign value basis of $1.50. This ($1.50) we contend is a price higher than that which served the framers of the Dingley tariff bill as a basis for computing their compound rate of duty which was intended to be equivalent to 35 per cent. Per contra, if the rates of duty we propose would have been applied to the importations for 1907 at an average foreign value of $1.40 they would have been just equal to the duty collectable under Dingley rates. One dollar and forty cents is considerably higher than the average value prevailing in the years just before and after the framing of the Dingley tariff. The importations of the two companies whose figures are taken for this comparison are computed by number, or count, or size, because: First. There are no government statistics accessible giving such information, grouped otherwise than by value. Second. These two companies in the aggregate furnish (conservatively estimated) from 70 to 75 per cent of all the importations made into the United States, and it is fair to presume that the figures which they have compiled as to their importation would reasonably apply to the importations as a whole. Respectfully submitted. SIDNEY BLUMENTHAL & Co. (INCORPORATED), THE SALTS TEXTILE MANUFACTURING Co., THE AMERICAN VELVET Co., CHAS. A. WIMPFKIMER, President. |