PARAGRAPHS 92-94-POTTERY. Mr. CASEY. We are perfectly content to meet them as a competitor, for the reason that we have one advantage of being able to deliver goods promptly. Mr. JAMES. And notwithstanding the fact they undersell you, you are still willing to meet them in the market where that is done? Mr. CASEY. Yes, sir; the quality of the ware entering into it as a consideration. Mr. KITCHIN. That comes in under the 60 per cent duty? Mr. CASEY. Yes, sir. Mr. KITCHIN. Do you have any idea how much of that class you produce is imported into this country? Mr. CASEY. Four years ago there was something like $120,000. Mr. KITCHIN. How much do you think the American production was last year? Mr. CASEY. How much the American production was? Mr. KITCHIN. Yes; about? Mr. CASEY. I do not know as to that; we sold in the vicinity of $180,000 to $185,000 last year. Mr. KITCHIN. You do not sell all of it, do you? Mr. CASEY. Oh, no. In the last few years possible six to seven or eight factories are manufacturing lines similar to ours, but not exclusively. Mr. KITCHIN. Do you suppose there is as much as a million dollars of that kind of goods produced in this country? Mr. CASEY. No. Mr. KITCHIN. I wish in your brief you would get up the statistics of the American production of that class of articles, and also what amount you think of the $8,000,000 imported under that clause, under the 60 per cent duty, constituted this class of goods. You think about $120,000, you say? Mr. CASEY. I should say $125,000 to $150,000. It would be hard to say without looking it up. Mr KITCHIN. I say, look it up, and include it in your brief, if you will. Mr. CASEY. Very well. Mr. JAMES. What amount of goods are imported of the character where they undersell you? Mr. CASEY. Really, I do not know. Mr. JAMES. You have no idea at all? Mr. CASEY. No, sir. Mr. PALMER. When did you begin this business? Mr. CASEY. I have been in the business about 12 years, and manufacturing this particular line something like 10 years. Mr. PALMER. Are you engaged in the business of manufacturing this line of ware exclusively, and doing nothing else? Mr. CASEY. Yes, sir. Mr. PALMER. And you have been doing that exclusively for 12 years? Mr. CASEY. Oh, no; just the last three years. Mr. PALMER. Was there anybody else in the business of the manufacture of this kind of ware before 12 years ago? Mr. CASEY. No, sir. PARAGRAPHS 92-94-POTTERY. Mr. PALMER. What was the duty on the article at that time? Mr. CASEY. It was rather a peculiar condition that faced me in this business. It was to get something, to do something Mr. PALMER. That is what we all go into business for. Mr. CASEY. Yes, sir. It developed after investigation that something had to be done. The business was on so close a margin. I took up the manufacturing of this particular class of ware, and after we had developed our business and experimented on it for years, and were becoming a contender on the market with the importers, foreign manufacturer, then the price was cut. Mr. KITCHIN. The price where was cut? Mr. CASEY. What ware was cut? Mr. PALMER. At what point was the price cut? Mr. CASEY. All over the country. Mr. PALMER. What was the reason for that? Mr. CASEY. They probably wanted to put me out of business. Mr. CASEY. I do not know that they were organized, but it was simply a question of getting the business. Mr. PALMER. Because these other people who had been in business cut the price to the consumer, you asked the Ways and Means Committee three years ago to increase the duty, which they did. Mr. CASEY. Five per cent. Mr. PALMER. Were you able to make some money after 1909? Mr. PALMER. That is a very unsatisfactory answer, I do not know what "very much" means in your mind. Mr. CASEY. We really are not entirely out of debt at this time, if that will answer the question. Mr. PALMER. How big an investment have you got? Mr. CASEY. I should say in the neighborhood of $140,000. Mr. PALMER. Do you own it all yourself? Mr. CASEY. Not all of it; no, sir. Mr. PALMER. You were making a profit on your ware before the Payne bill was passed? Mr. CASEY. No, sir; it was simply an uphill fight from year to year, to make ends meet. Mr. PALMER. The 5 per cent additional duty which you received under the Payne bill made it possible for you to make a profit? Mr. CASEY. The increase in my production and in volume of business, which I was able to do by creating a demand for my particular line, gave me some profit. Mr. LONGWORTH. To-day there is a substantial importation of your class of goods. Mr. CASEY. Yes. There is not a city you can go into without finding this foreign ware at a lower price than we are selling. Mr. KITCHIN. What is the technical-the commercial name for this class of goods? Mr. CASEY. It is brown, white-lined enameled earthenware. Mr. CASEY. Yes. PARAGRAPHS 92-94-POTTERY. Mr. KITCHIN. In order to make your business successful, you have added the tariff of 60 per cent to the foreign price and this makes your price? Mr. CASEY. Yes, sir. If you were to cut the duty here a very few per cent, I question very much if we could do business at all. Mr. LONGWORTH. At 60 per cent there is substantial competition? Mr. CASEY. Yes, sir. To-day there is not a city in the United States you can not go into and see the foreign-manufactured ware, competing with ours. Mr. KITCHIN. You make yours as good as the foreign? Mr. CASEY. Yes, sir. Mr. LONGWORTH. And a little better? Mr. CASEY. I think it is a little better. Hon. OSCAR W. UNDERWOOD, CAMBRIDGE, OHIO, January 1, 1913. Chairman Committee on Ways and Means, Washington, D. C.: The Guernsey Earthenware Co. herewith submits in as condensed and compact a form as possible its application for the retention of the present rate of duty upon one line of earthenware, to wit: "Earthenware cooking utensils, brown, white-lined, enameled, provided for by paragraph 93 of Schedule B of the present act of 1909, 60 per cent. The plant is at Cambridge, Guernsey County, Ohio. Production is strictly limited by the fact that the potter's wheel and hand labor must be depended upon. Labor-saving machinery in this respect is unattainable. We can not hope, therefore, to reduce our labor cost below 55 per cent to 60 per cent. This industry falls strictly within the definition by the Supreme Court of the United States of one entitled to protection, namely: It is new in this country; it is an infant industry; it is desirable to be established; and it is handicapped by foreign competition. Ought not this "world power" to make its own stewpans? What we make is cooking ware and that only. We simply can not do this business unless we can be adequately protected against European competition, that of Germany in particular. We present the following statements of fact, and shall be glad to amplify them, or to furnish proof of any or all of them: This is a new industry; because it is only 12 years old; because it makes earthenware cooking utensils (brown, white-lined, enameled), heretofore successfully made only in France and Germany. This is an infant industry; because it is new, as stated; because this is the only factory in the United States making this particular line of earthenware in such quality as can compete for quality with foreign-made ware of this class. Other factories, however, are trying. This is a native industry; because it is located in Ohio, and its earthenware is made of Ohio clays in an original and secret mixture; because much of its labor it must educate and train out of native material. This is a weak industry because it is profitless except upon a large volume of business, and because a large volume of business is impossible with American labor unless there is substantial protection against European labor. Because importing houses in this country, not being manufacturers, can temporarily cut prices and destroy this industry, and then raise prices at will, except for adequate protection. This is a growing industry. From an investment of about $55,000 in the year 1900 to a present investment of about $185,000. From about 12 to 18 employees in 1900 to 155 at present. From an original pay roll of about $560 per month to a present pay roll of $8,000 per month. From sales of this ware of about $45,000 in 1908 to about $185,000 for 1912. But without this protection this growth would have been impossible, if, in fact, the industry could have survived. This is a helpful industry because it employs, for the most part, skilled labor. Because it employs women also at better wages than they ordinarily get. This is a fair industry because the present duty of 60 per cent is no more than necessary. Because there are steady importations notwithstanding this duty. Because PARAGRAPHS 92-94-POTTERY. under this protection, it has increased the rate of wages paid from 20 per cent to 25 per cent, thus sharing with the wage earner. Because, at the same time, it has reduced its selling prices to the trade and is thus sharing with the consumer. If this protection is to be reduced, or removed, and this industry destroyed, what is to become of these many employees and of this investment? OUR PRICES FOUR YEARS AGO AND NOW. On page 1053 of the tariff hearings, Schedule B, of the Sixtieth Congress, appears our prices of certain staples of our manufacture at that time, 1908. We have materially reduced our prices to the trade for those particular lines as is shown below: Having thus, under this protection, reduced prices as well as increased wages, have we not given a square deal? FOREIGN AND DOMESTIC PRICES. We have within the past few days, after much effort, obtained prices in the open market in this country, from importers, without their knowledge, and file herewith as exhibits what we bought, and also our own corresponding ware, and also submit the following comparison of prices. The wares shown are staples in this line, representative throughout, and the comparisons of prices are for same sizes throughout. All prices are by the dozen. 1 "Import" is the price of the foreign ware f. o. b. factory abroad with duty paid. "Stock" is the price of the same ware in stock at the importer's in New York City ready for his trade with duty paid. These custards are the only article in which we offer ware below the foreign price. We do it here, not because we get enough for the ware, but to use these as a "leader" in the trade, and charge the loss to advertising, as it were. THE PRESENT LEGISLATION. This company was formerly known as the Chambridge Art Pottery Co., its corporate name having been changed to The Guernsey Earthenware Co. It appeared under its former name before the Committee on Ways and Means of the Sixtieth Congress. Its president was heard by that committee, its brief and sundry exhibits were filed, and the report of all appears on pages 1049 et seq. of tariff hearings, section B. Prices then obtained by foreign makers, duty paid, appear upon page 1053. This company was then paying about double the wages paid in this line in Great Britain, and about three times the wages paid in Germany, as shown by Daily Consular and Trade Reports No. 3304, October 14, 1908. An effort has been made since notice of these hearings to obtain a later showing from the Department of Commerce and Labor on this point without developing any increase abroad except in one instance. This is an increase of less than 10 per cent to some of the wage earners at Stoke on Trent in Great Britain, reported in Daily Consular and Trade Reports, issue of Feb PARAGRAPHS 92-94-POTTERY. ruary 21, 1912, page 770. Manifestly any increase abroad must be negligible in comparison. Meanwhile, as is matter of common knowledge, wages in this country have materially increased. This company has meanwhile increased the average rate of wages paid in its factory by 20 per cent to 25 per cent. Therefore its argument really favors an increase of the rate of duty, though all it asks is a retention of the present rate. This company is sharing with its employees the benefits of this protection. CONCLUSION. With a growing industry, a sharing of the protection with the public, a sharing with the wage earner also, why should it be crippled or destroyed? If that is done, where will Congress provide support for these employees? Respectfully submitted. THE GUERNSEY EARTHENWARE Co., By CHARLES L. CASEY, President. STATEMENT OF WILLIAM BURGESS, OF TRENTON, N. J., REPRESENTING THE UNITED STATES POTTERS' ASSOCIATION. Mr. BURGESS. Mr. Chairman and gentlemen of the committee, within the few minutes allotted to me I can not do more than mention a few facts in connection with the pottery industry, the one in which we are so vitally interested, and about which we are so anxious at this time. Mr. JAMES. What paragraph do you have reference to? In considering the pottery schedule, you are confronted with the following summary of facts: The pottery industry is one which requires more capital invested in proportion to the amount and value of its annual production than any industry in this country. It is one which employs more labor, in proportion to the capital invested, than almost any other. On account of the character of the materials and the processes of manufacture, machinery can be used to only a very limited extenthand labor is indispensable. Fully 90 per cent of the total cost of pottery ware represents labor, 663 per cent actually going out in our pay envelopes. Wages to the pottery employees are among the highest paid in any industry in this country and far exceed, in difference of wages at home and abroad, the present rate of duty imposed on pottery ware. It is an industry in which capital and labor are in friendliest relations, having learned that arbitration is better than war and friendly converse than strike. All disputed questions are settled biannually. There has been no strike in 20 years. Since the establishment of the industry in the United States competition has reduced the cost almost two-thirds to the consumer, at the same time greatly improving the quality of the ware. Through all the recent history of high and advancing prices American pottery has not advanced and is sold to-day cheaper than ever in the history of potting. We are to-day supplying less than two-fifths of the total consumption of pottery ware in the United States. 78959°-VOL 1-13-38 |