any silk in the market, and we think that in the near future we will be able to make it strong enough so that it can be used in broadgoods and ribbons; but with the present 30 per cent ad valorem duty it can not be made with a profit, and if the duty asked for is not granted this industry can never prosper, because of one principal reason that our high wages against the low wages in Europe is the most important item in the cost of production. Thanking you in advance for whatever you can do to help this new industry, we remain, Yours, very truly, THE CLEVELAND ART SILK COMPANY. EXHIBIT A. Showing the amount of help employed in a European factory making 350 kilos (770 pounds) per twenty-four hours, working three shifts: Manager, 1; assistant manager, 1; chemist, 1; cashier, 1; office help, 4. Washing and bleaching cotton department: Foreman, 1; men for machines, 2; men for boiling, 2; man for packing, 1; men for rinsing, 2; man for picking, 1. Mixing and filtering department: Foreman, 1; men for mixing, 2. Spinning department: Men for spinning, 180; men for washing, 30; men for drying, 15. Reeling department: Girls for reeling, 105; boys for reeling, 35. Twisting department: Girls for twisting, 80. Other parts of the factory: Men for manufacture of ammonia, 3; men for ice machinery and pumps, 2; men for washing skeins, 2; men for repairs and carpentry, 6; men instructors, 5; men porters, 2; firemen, 2; engineers, 2; electrician, 1; glassblowers, 2; plumber, 1. Making a total of 493 people, which number would also have to be employed in this country to make 770 pounds per twenty-four hours, working three shifts, amounting to about $825.25 for labor, which amount is more than double what would have to be paid in Europe to make the same amount. COLNÉ & COMPANY, NEW YORK CITY, ASK THAT PRESENT DUTIES BE RETAINED ON ARTIFICIAL SILK. COMMITTEE ON WAYS AND MEANS, NEW YORK, December 8, 1908. House of Representatives, Washington, D. C. GENTLEMEN: In connection with the revision of the tariff on silks, we wish to call your attention to the duties now collected on artificial silk-30 per cent ad valorem. On behalf of parties intending to start the manufacture by a new process of this artificial silk here, we would ask that the present duty be not lowered. This style of silk, to our knowledge, is not manufactured here, or, if any is made, it must be in a very small quantity. We have in abundance in this country the raw material for this manufacture. The making of this silk is now in successful operation in France and England, Belgium, and Italy. Owing to the low price of labor in those countries this new manufacture could not be made successful here if the present rate of duty is not maintained. As labor is the principal cost in making this silk, we are here under a disadvantage. On the other hand, if the present duty is maintained or raised, we will be able to compete with importation. If we are encouraged by maintaining the present tariff, our proposed works will employ a large number of hands, as a great part of the process is carried on by hand labor. We send you herewith a sample of some of this silk made in France. The demand for this material is great, and if we are not hampered by the tariff we will be able to create an industry which will be quite beneficial to the workingman, as well as the owners. We presume it is not necessary to remind your committee that protection has been the means of creating a large number of industries in this country which are now in successful operation. We ask to be the means, with your help, of contributing another enterprise to the prosperity of the country. Yours, very truly, COLNÉ & Co. COLNÉ & CO., NEW YORK CITY, FILE SUPPLEMENTAL INFORMATION RELATIVE TO IMPORTATIONS OF ARTIFICIAL SILK. 11 BROADWAY, NEW YORK, January 1, 1909. COMMITTEE ON WAYS AND MEANS, Washington, D. C. GENTLEMEN: We have addressed to your committee a letter dated December 8, concerning the duty on artificial silk. Since that time we have received data which we think will bear on the question. We are informed that last year $63,000,000 of raw silk has been imported. From Japan, $40,000,000; from Italy, $13,00,000; from China, $8,250,000, and from France, $1,500,000. We have read the testimony before your committee of Messrs. Ernst and Wartzfelder, and we fully concur in their recommendation of a duty of 60 per cent ad valorem. Owing to quite recent improvements in the manufacture of this artificial silk it has taken a large extension in Europe. Naturally, if we can not get the proper protection for our intended works here we shall have to abandon our intentions. As a consequence the European manufacturers will export their silk in large quantities, and we shall not only have to pay large sums of money for the supply of the silk manufacture and the trimming business, but we will be prevented from developing a business which is bound to become important. Your committee will be able to judge of the future of this business by examining the samples of the latest improved manufacture sent to us from Europe, which we are sending you under separate cover. Yours, very truly, COLNÉ & Co. VON NOSTITZ & TRUBE, NEW YORK CITY, WISH INCREASE ON BRAIDS OR DECREASE ON ARTIFICIAL SILK. Chairman of Ways and Means Committee, January 1, 1909. House of Representatives, Washington, D. C. SIR: We take the liberty of addressing you, as we have heard that you may be interested in hearing opinions of manufacturers. We are manufacturers of braids for dress-trimming purposes, on which the duty is 60 per cent. The artificial silk that we use is an imported article, on which the duty is 30 per cent, and we find that we are losing considerable orders through the fact that imported braids can successfully compete with ours. Accordingly, it would be of interest to the American manufacturer either to have the duty on the braids increased or on the artificial silk (which we call our raw material) decreased. Most respectfully, yours, VON NOSTITZ & TRUBE, CHIFFONS AND MOUSSELINE DE SOIE. Hon. SERENO E. PAYNE, [Paragraph 387.] NEW YORK, November 17, 1908. Chairman of Ways and Means Committee, Washington, D. C. Hon. Mr. PAYNE: Trust you will pardon our intrusion on your most valuable time, but circumstances compel us to write to you in regard to some revision of an article in the present tariff. This article is not manufactured in the United States but imported from and made in Lyon. The article is provided for as follows: Woven fabrics if dyed or printed in the piece, of which duty is $3.25 per pound, but not less than 50 per cent-weighing not more than one-third ounce per square yard-per pound, $4.50, but not less than 50 per cent. We are importers of chiffons and mousseline de soie, under which heading the above duties are quoted. Now, in order to reduce the duty to $3.25, 99 per cent of the importers add the weight in the dye, and by doing this they give to the public an article that is liable to rot, and the public does not derive the benefit of the right article. If this matter could be corrected and the article brought over in its natural state, without the addition of the weight, the public would get the proper value and there would be no interference with the revenues. Yours, very respectfully, GERMAIN, HOFFBAUER & HELM CO. BRAIDS AND TRIMMINGS. [Paragraph 389.] UNITED STATES BRAID MANUFACTURERS RECOMMEND CHANGES IN CLASSIFICATION OF ARTICLES OF SILK. NEW YORK CITY, 682 BROADWAY, November 28, 1908. COMMITTEE ON WAYS AND MEANS, Washington, D. C. GENTLEMEN: We recommend that the following items be stricken out of paragraph 389 and inserted in paragraph 390, namely: "Beltings, bindings, cords, cords and tassels," so that paragraph 390 shall read as follows: Laces, and articles made wholly or in part of lace, edgings, insertings, galloons, chiffon or other flouncings, nets or nettings and veilings, neck rufflings, ruchings, braids, fringes, trimmings, beltings, bindings, cords, tassels, cords and tassels, embroideries, and articles embroideried by hand or machinery, or tamboured or appliquéd, clothing ready-made, and articles of wearing apparel of every description, including knit goods, made up or manufactured in whole or in part by the tailor, seamstress, or manufacturer; all of the above-named articles made of silk, or of which silk is the component material of chief value, not specially provided for in this act, and silk goods ornamented with beads or spangles, of whatever material composed, sixty per centum ad valorem: Provided, That any wearing apparel or other articles provided for in this paragraph (except gloves) when composed in part of india rubber, shall be subject to a duty of sixty per centum ad valorem. The reason we recommend the above articles being stricken out of paragraph 389 and inserted in paragraph 390 is that they resemble more nearly in texture, quality, and use the articles enumerated in paragraph 390, such as braids and trimmings, than they do the articles enumerated in paragraph 389, and are made by manufacturers of braids and trimmings. We recommend that the present duty of 60 per cent ad valorem in paragraph 390 be retained, as that rate is necessary to compensate for the difference between cost of labor in this country and in Europe. Respectfully submitted by the Braid Manufacturers' Association of the United States. HENRY W. SCHLOSS, President. SILK CRAVATS. [Paragraph 390.] STATEMENT OF CHARLES RUSTON, JR., OF No. 10 WEST TWENTIETH STREET, NEW YORK CITY, REPRESENTING JAMES KEISER, OF NEW YORK. THURSDAY, December 17, 1908. (Mr. Ruston was duly sworn by the acting chairman, Mr. Dalzell.) Mr. RUSTON. I would like to say, gentlemen, that I come here this morning and I am representing simply our own concern-to speak regarding the subject of silk cravats, which some people call neck ties; but we didn't come here to ask any increase of duty nor a reduction, but simply that the tariff remain as it is at the present time. I have a statement here that will boil the whole matter down, and if I read it it will probably save time. Mr. DALZELL. You may read it. Mr. RUSTON (reads): Manufacturing silk cravats is a distinct industry. Cravats are in a great majority of cases made from silks that are woven specially for this purpose, and such silks, as a rule, are not suitable for any other purpose. There are probably 150 to 200 concerns engaged in the silk-cravat industry. Many of these concerns have only a few thousand dollars capital. There are a few, probably about half a dozen, having a capital of from $100,000 to $200,000. The business annually of these concerns ranges from about $30,000 to $50,000 each, up to several hundred thousand. There are probably only six or eight concerns whose business ranges between $500,000 and a million. The total annual business on a rough estimate is probably at least $25,000,000. There is absolutely no trust combination or understanding, secret or otherwise, existing between the various concerns, and such we believe impossible. Competition has lowered the price to the minimum; in fact, there is a large amount of business done, particularly in the medium and lower priced lines, at practically little more than a mere commission for profit. There have been no large individual fortunes built up from the profits in this business. The consumer has been able to get exceedingly good value at the various prices of 25 cents, 50 cents, $1, and above. It is only necessary to examine the retail stocks to be sure of this. In fact, we have heard many people say that they thought it was possible to get better value in this country in cravats than abroad. This is due to the keen rivalry among competing manufacturers, particularly smaller ones with perhaps insufficient capital employing no salesmen, and also to the almost continuous unloading of surplus stock, because of change of style, by either manufacturer or retail dealer in one locality or another. Under the present duty of 60 per cent since 1897 the business has grown rapidly. Under the old duty of 50 per cent previous to 1897 the importation of foreign cravats, mostly English, was developed, and this part of the business seemed to be growing rapidly until it was largely cut off, excepting where consumers were willing to pay the price for a luxury, by the increase of 10 per cent duty in 1897. We have heard some manufacturers say that the duty should be 70 per cent on silk cravats. Our own opinion is that it should certainly remain at not less than 60 per cent. Any reduction in duty would result in either forcing a number of concerns out of business or the price paid to labor would have to be reduced. There are probably 40,000 to 50,000 people engaged in this industry. If the duty was reduced the conditions under which we would have to do business would be worse than they were previous to 1897, as the price of labor in the last ten or fifteen years has advanced from 25 to 50 per cent, and from everything we have been able to gather there has been far from any such increase in the price of labor in Europe, particularly in England, from which country we would feel the keenest competition. The difference, therefore, between labor here and abroad is greater to-day than when the old duty of 50 per cent was in force. As there is practically very little, if any, export business in silk cravats, any lowering of duty would not gain us the export trade, and our only market would be seriously interfered with. As about 60 per cent of the wholesale selling price paid for silk cravats is made up of labor apart from raw material or profit, it can easily be seen that 60 per cent duty is none too much to protect us against the conditions governing labor abroad. Mr. DALZELL. Are there any importations? Mr. RUSTON. There are a few at the present time, sir; but I do not think it is a large item. Mr. UNDERWOOD. What is the volume of business of the cravat industry in this country? Mr. RUSTON. Well, it is pretty hard to get at that fact, but as near as I can estimate it I think it is at least $25,000,000. |