By examination of this schedule we find that there were imported the following amounts of spun silk: 1904 1905 Pounds. 2,096, 201 2,327, 637 2,310, 975 1906 1907 2,568, 208 The year 1907 was abnormal in many ways; prices soared in all grades of goods, due to the unprecedented prosperity of the country; all manufacturers increased their capacity, as did the spun-silk manufacturers, but the sudden increase in trade could not be met by as sudden an increase in production. Leaving the year 1907 out of consideration, we find by examination of this schedule that as long as the duty collected was below $0.85 the foreigner could import at liberty, that as soon as the duty collected passed the $0.83 mark the importations became comparatively less, but it must also be noticed that the duty never, on any grade, was prohibitive; the foreigner could always compete with the American. While these importations were going on there was a production of spun silk of about 1,000,000 pounds a year in this country. A careful computation of the selling prices, for the last five years, of domestic spun silk shows the average to have been about $2.83 per pound; thus you will perceive that, while a third of the yarn used in this country was produced here and two-thirds imported, the third which was made in this country was of the higher-priced goods. The reason for this is that so long as the duty under the ad valorem scheme was less than $0.83 per pound the American was not in position to compete with the European; the American manufacturer's business was confined entirely to the higher grades. Had he had the same per pound protection for the cheaper goods, he would have been in position to have competed on all grades of spun silk used in this country. Within this limited field of high-priced goods the American manufacturer has made steady progress, and there is to-day a capacity of about 1,250,000 pounds per annum. If the duty were to be made below the $0.83 per pound mark on the higher-priced goods, as it has been upon the lower grade of goods, the American spinner's business would be sacrificed. The amount of labor upon the lower grade of goods is about the same as upon the higher-grade goods-at least as much-and, therefore, the lower-grade goods never had sufficient protection to make up the difference in labor in this country and in Europe. By fixing a specific duty of $0.85 all around the American manufacturer would be protected on all classes of spun silk, and the result would be that three times the capital and three times the amount of labor would be employed in the manufacture of spun silk as at present. Such a specific duty and protection, while increasing and enlarging the industry in America, would do no harm, even supposing, which is most unlikely, that the American spinner would not respond to this incentive of a reasonable profit on the lower goods as well as on the higher-grade goods, for the importations would continue. The result would be a higher revenue to the Government, a slightly increased cost of the fabric woven from silk, which, being purely an article of luxury, no hardship would ensue, nor would the manufacturer of woven goods (that is, he who uses spun silk) be injured, as his protection would still be ample. Right here it is important to impress upon the mind the fact that spun silk has received less protection than any other branch of the silk industry, therefore the slow increase of the spun-silk industry, as compared to velvets, plushes, and other silk lines. The highest protection under the ad valorem scheme accorded the spun-silk manufacturer enabled him to make only a meager business profit; none the less, his manufacturing capacity has increased slowly, but surely, year by year, and is to-day increasing, but only within the narrow field of higher-priced goods, as set forth above. There has been filed with your committee a proposed schedule of duties covering the silk industry by a committee of the Silk Association of America. This committee is appointed by the Silk Association, but it must be made clear that it does not act for any individual member of the association, and no member of the association is bound by its suggestions, for the reason that its schedule is filed without consultation or authorization of the individual manufacturers. In the present instance the schedule thus proposed by the silk committee covering spun silk was never referred to the undersigned for observation, criticism, or approval. The gentlemen composing the membership of this Silk Association committee all have interests adverse to the spun-silk manufacture. One member of this committee, a gentleman of highest integrity and great ability, it is true, is a spun-silk manufacturer, and a large one, but he is a much larger manufacturer of goods made from spun silk. He is not a specialist in spun-silk manufacture, such as we are, and he could well afford to use the spun silk which he produces himself, and receive his protection through the finished article. It can well be a matter of indifference to him whether he increases his spun-silk manufacture or his weaving, and it may well be that he prefers to increase his weaving, as the latter is much more profitable, and much less vexatious. He purchases a large part of the spun silk which he uses, that is, the cheaper grades, and he may be well content to have the tariff on the cheaper grades as low as formerly, and even to accept a reduction of the tariff on the higher grades, as long as he receives his full protection on the woven article which is made from spun silk. All the other members of the committee could buy spun silk cheaper if the tariff were reduced. For these reasons, the schedule proposed by the Silk Association committee is not one that represents the real interest of the spun silk manufacturer, nor, as it happens, the real interest of the Government, nor the real interest of the people of the United States, conceiving a protective policy as a whole to be desired. The spun silk industry should be able to furnish labor to thousands of people in this country that are not now employed therein; the 2,500,000 pounds and over of spun silk that are yearly imported could be made in this country, and these 2,500,000 pounds per annum of the past would soon be (with a natural growth of the silk industry) 3,000,000 and 4,000,000. There is not one reason, aside from the labor cost, why spun silk can not be made as well in this country as in Europe. Its process of manufacture is thoroughly understood, the nucleus of skilled and unskilled labor is here, the business organization is here. Just as other industries which were European were made American by protection (instances are too thoroughly in mind. of this committee to need even enumeration), so spun silk can be made an American industry, to answer all the needs of the American consumer. There would follow a far-reaching effect in other lines. through the growth of this industry. At present, most of our machinery and many of our supplies must be brought from Europe; with the growth of the industry here, there would speedily arise the manufacture of machinery needed and the necessary supplies, and once the American machine builder becomes interested in the manufacture of spun silk (and the amount of such machinery needed would be enormous) we would find the inventive faculty that has modernized other industries pushing the American manufacture of spun silk ahead of the European. The American machine builder, while he has done wonders for the cotton and woolen industry, has never exerted his wonderful ingenuity in behalf of spun silk. With an industry three or four times, or possibly five times, as large to cater to, the American machine builder's interest would be aroused, and another industry, employing much skilled labor, would be benefited. We append herewith a schedule showing the duties per pound as they now exist, the duties per pound under the proposed schedule of the Silk Association, and the duties per pound as proposed by us. It will be seen that the Silk Association schedule calls for a decided cut in protection. Our schedule proposed would lower the tariffs on the very highest grade goods and raise them on the lower grades. We really strike a fair average. The difference in any case is not enormous. Speaking generally, the raise in duties on the lower grades between our schedule and that of the Silk Association is about 14 cents a pound, but it is just enough to make up the profit on spun silk. We can not impress this too firmly on the minds of your committee. The profit, after allowing for necessary expenses, depreciation, ordinary interest on the money invested, is, on the average, not above this 14 cents per pound. To gain 14 cents a pound in behalf of the weaver of silk would benefit him but little, if any; to cut off 14 cents more a pound from the spun silk manufacturer would spell his destruction; to place a higher duty on the lower grades of spun silk would increase the revenues of the Government without injury to anyone, until such grades were made in this country. When these grades of goods are made in this country, it will bring employment to thousands of people. Any further information in particular that we can furnish you we will exert ourselves to supply. Respectfully submitted. CHAMPLAIN SILK MILLS. EXHIBIT A. SUGGESTED SCHEDULE. Silk manufactured from cocoons or from waste silk of any kind and no further advanced or manufactured than carded or combed silk, 40 cents per pound. Threads or yarns, if single, 50 cents a pound, plus one-quarter of a cent per pound per number; if two-ply, 60 cents a pound, plus oneeighth of a cent per pound per number; if three or more ply yarn, 60 cents a pound, plus one-quarter of a cent per pound per number; if in the gray, on bobbins, spools, or beams, 10 cents per pound addi tional; if colored, bleached, or dyed in skeins, 10 cents per pound additional; if colored, bleached, or dyed on bobbins, spools, warps, or beams, 20 cents per pound additional. In assessing the duty on thread or yarn manufactured from cocoons or from waste silk, the number shall be that indicated by the French or metric system of 1,000 meters per kilogram per number; in all cases the number shall refer to the size of singles of which said yarn is composed. EXHIBIT B. Application of various tariff schedules and proposed schedules to spun silk yarns of various sizes and values. THE AMERICAN SILK SPINNING COMPANY, PROVIDENCE, R. I., SUBMITS WHAT IT CONSIDERS AN EQUITABLE CLASSIFICATION AND RATE FOR SPUN SILK. Hon. SERENO E. PAYNE, PROVIDENCE, R. I., February 11, 1909. Chairman Committee on Ways and Means, Washington, D. C. DEAR SIR: Referring to your esteemed favor of the 4th instant, I herewith respectfully submit our reasons for protesting against the proposed change in duty on spun silk, and suggest the adoption of a schedule which will be beneficial to the country at large, and which will enable our industry to live and grow. To put it concisely, there are three strong reasons which we would urge for not lowering the present duty by 15 to 20 per cent as proposed: 1. The saving to the consumer based on a variation of a full 25 cents per pound would be at the most 2 cents per yard on a yard of silk or velvet of an average grade such as we inclose both finished and unfinished. This difference is infinitesimal particularly on a luxury. 2. About 70 per cent of all imported spun silk yarns are manufactured by two continental trusts-the Société Anonyme and the Société Industriellewhich are combined as to absolute dictation of prices, amount of output, division of territory, increase of machinery, etc. 3. As the proposed reduction falls heaviest on a quality which would be the largest amount of our output, it would virtually put us out of business. This last reason is, of course, the principal one with us. We can submit sworn affidavits as to wage schedules and prices paid in Switzerland and Italy, the two lowest priced labor countries in Europe. Incidentally a lower tariff would reduce the income of the Government at least $750,000 on a luxury. In place of the proposed schedule submitted by the committee of the Silk Association of America, we respectfully recommend the following schedule: Silk manufactured from cocoons, or other waste silk of any kind, if not further advanced in manufacture than carded or combed silk, 40 cents per pound; if threads or yarns, and valued at not over 90 cents per pound, 35 cents per pound; if threads or yarns in the greige, not dyed or bleached, valued at over 90 cents per pound, in skeins, warps, or cops, etc. (p. 4 of proposed schedule), 50 cents per pound and one-fourth cent per number per pound, weight of cops to be included in weight in which duty is assessed; if advanced beyond the condition of singles by grouping or twisting two or more single yarns together, 60 cents per pound plus one-fourth cent per number per pound; if on bobbins, spools, etc. (p. 4 of proposed schedule), the rest of the schedule would be acceptable as proposed by the Silk Association schedule. Yours, very respectfully, AMERICAN SILK SPINNING COMPANY, ARTIFICIAL SILK. [Paragraph 385, under provisions of section 7.] BRIEF OF AMERICAN BRAID MANUFACTURERS RELATIVE TO ARTIFICIAL SILK AND HORSEHAIR BRAIDS. 682 BROADWAY, NEW YORK CITY, Saturday, November 28, 1908. COMMITTEE ON WAYS AND MEANS, Washington, D. C. GENTLEMEN: We wish briefly to give you an idea of the importance of this industry. 1. It employs directly about 35,000 people besides giving employment indirectly to many thousands of employees of box manufac |