PARAGRAPHS 92-94-POTTERY. These were the words of the president of the United States Potters' Association, Mr. W. E. Wells, again president of the association in 1906, who made the following remarks: If volume of business alone means prosperity to the American potter, the members of this association have abundant reason for feeling satisfied with the results of the year just closing. While these quotations from Mr. Wells at the annual convention was several years ago, no one can doubt but what the volume of business has largely increased, and many new kilns are being built. Mr. H. D. Wintringer, of Steubenville, Ohio, president of the United States Potters' Association, at their annual meeting at Pittsburgh in November last, said: As an organization we have grown steadily and safely over a period of more than a third of a century until now we are producing in our own lines probably seventeen millions worth of finished product. A study of the Government's statistics for the past three years reveals some satisfactory information, chief of which is the authentic report of the total importations for the last Government fiscal year, which were $9,997,689 as compared with $11,411,665 for the previous period. An attempt was made some years ago, when the Dingley bill was pending, to ingraft an absurd provision in the form of a compound duty. The effect would have proved confusing and prohibitive, but it failed when scrutinized in the Senate. At that time telegrams were rushed in upon Senators and Members of the House from the various potteries in Ohio and New Jersey, saying that unless compound duty were provided, raising the tariff above the rates finally adopted "the pottery industry in this country would be paralyzed and the smoke from the tall chimneys would cease to rise." The crusade to ingraft specific or compound duties so much per hundred pounds, avoirdupois, and also an ad valorem attached, would have been impracticable and absurd. The compound duty was eliminated, and what happened? No paralysis of the pottery industry, the smoke continued to rise from the tall chimneys, many new kilns have been built and the industry has progressed. We believe in a simple ad valorem duty, understood by all, that will be fully and fairly collected. The rate of duty has been increased 10 per cent in 1784-1794, 20 per cent in 1816-1842, 24 per cent in 1857-1861, 40 per cent in 18641883, 55 per cent to 60 per cent under present law, plus the duty on the cost of outside packages and the geographical protection given by bringing goods from such distant points justifies our making for a substantial reduction in the tariff tax. Let me mention the fact of the steady diminution in the importation from Liverpool for the last 10 years and more, for example: In 1895, 121,374 crates and casks; 10 years later, in 1905, 45,896 crates and casks; 1911, 35,620 crates and casks. During the last 10 years the importations of French, German, and Austrian china have, on the whole, remained about stationary, in some years showing a slight increase, in others a decrease. It is from the fact that they make a class of translucent china in tableware that satisfies the pride of the farmer's wife and daughter. A plate held up to the light shows its translucency, and, while it is really china, it is made. in such quantities and so attractively that it has its place in the pride of those who want something better than the ordinary opaque ware. PARAGRAPHS 92-94-POTTERY. In reference to the sale and use of English pottery, it is observed that the importations in 1911 were practically the same volume in Canada as to the United States, $2,000,000 to each country in value. In the United States these $2,000,000 paid a duty of 60 per cent plus freights and expenses, while into Canada the duty was only 15 per cent, thus saving the Canadian consumer more than a million dollars. We have formulated with great care a reclassification of what should be assessed at the low rate and that which should be assessed at the higher rate, recommending duty on the commonest, of which there is very little imported, as follows: Paragraph 92. Common yellow, brown, red, or gray earthenware, brown stoneware; plain, embossed, or salt glazed. Stoneware and crucibles, all the foregoing, not decorated in any manner, 10 per cent ad valorem. Page 93: China, porcelain, bisque, and Parian ware composed of a nonabsorbent and translucent body, not specially provided for, including clock cases with or without movements, and all other articles composed wholly or in chief value of such ware, all of the foregoing plain, embossed, or decorated in any manner, 35 per centum ad valorem. Page 94: Earthenware, stoneware, crockery, white granite, and semiporcelain, Rockingham, jet, and Samian ware, whether or not vitrified in whole or in part, or whether or not composed of a hard opaque but porous body, capable of absorbing moisture, including plates, cups, saucers and other articles or pieces, such as are commonly used in breakfast, dinner, tea, and similar table sets, toilet sets, hotel ware; pill tiles, clock cases, with or without movements, plaques, ornaments, toys, vases, statues, statuettes, mugs, steins, and lamps, together with all other articles composed wholly or in chief value of such ware, all of the foregoing, plain, embossed or decorated in any manner, 30 per cent ad valorem. We recommend a somewhat higher duty on translucent china, believing that, in adhering to the ad valorem duty, it is a fair tax, readily understood by all. For example, a cheap china dinner set of 130 pieces, if it cost $10, at 35 per cent the duty would be $3.50. If it is a richly decorated service, costing $100, the duty would be $35, as against $3.50 for the cheaper one, which figures out the ad valorem method logically. This reclassification between china and earthenware would eliminate ambiguities which often lead to litigation and long delays in liquidating an entry. We have talked with those who are familiar with the appraiser's work, and it is agreed that this would be a reasonable and desirable change in assessing duties. We can give you any necessary statistics on the comparative cost between products of earthenware and china in this country, and also of foreign wares which compete, and will supply them, if you desire it, over our signature. This is signed by Mr. E. H. Pitkin of Chicago, Mr. George W. Kinney of Cleveland, and myself. We have all been in the wholesaling of ware, both American and foreign, for our lifetime. The CHAIRMAN. Are there any questions, gentlemen ? What is the import price of dinner sets of 100 pieces that retail here for $25? Mr. JONES. Well, there are so many different kinds and different makes. I should say that a dinner set that would wholesale for $15 would retail for $25. Mr. KITCHIN. On that $15 wholesale price dinner set what is the import price? PARAGRAPHS 92-94-POTTERY. Mr. JONES. I think if the wholesaler is able to make 10 to 12.5 per cent he is satisfied. Mr. KITCHIN. What are the cheapest dinner sets that are imported? Mr. JONES. That depends, of course, on how many pieces. Mr. KITCHIN. Say a dinner set of 100 pieces. Mr. JONES. One hundred and thirty pieces is rather large. Mr. KITCHIN. I say 100 pieces. Mr. JONES. Will you let me get your question better? Mr. KITCHIN. I say how cheap is the cheapest class of dinner sets of 100 pieces that are imported? Mr. JONES. You mean with some decoration? Mr. KITCHIN. No; not decorated. Mr. JONES. That would be white ware. Mr. KITCHIN. White ware; yes, under paragraph 92. Mr. JONES. I should say $4.80. Mr. KITCHIN. How much? Mr. JONES. $4.80. I mean the cost of the white. Of that class of goods some are Mr. KITCHIN. Under paragraph 94, china porcelain, white and plain brown, comes in at 55 per cent. imported as low as how much? Mr. JONES. I should think, for an offhand answer, $4.80 would be the cheapest. Mr. KITCHIN. Under paragraph 94, including the white and plain brown, there were imported in 1912 one million eleven thousand and some few hundred dollars' worth. What proportion of that would you say would be dinner sets of 100 pieces on which the import price would not be in excess of $10? Mr. JONES. Do you mean under paragraph 94? Mr. KITCHIN. Ninety-four-that is, plain white and plain brown, not decorated and not painted. In 1912 we imported a little over a million dollars' worth, a million and eleven thousand dollars. What proportion of that would be dinner sets of 100 pieces, the import price of which would not exceed $10? Mr. JONES. I would say your figures there would be my answerabout a million dollars worth, or a million and a half dollars perhaps. Mr. KITCHIN. So that practically all of that which came in, in your opinion, would be dinner sets the import price of which would not exceed $10? Mr. JONES. Well, in that classification. Some lines are very cheap and others are better. Some are double the lowest price, I mean. It varies, according to decoration. Mr. KITCHIN. These are undecorated. Mr. JONES. Oh; plain white? Mr. KITCHIN. The plain white; yes. We imported, as I say $1,011,000 worth last year. What proportion of that would you say cost under $10 a set, import price? Mr. JONES. Nearly half of it. Mr. KITCHIN. What proportion cost not to exceed $5 ? Mr. JONES. I could not classify that so as to give an answer that I would feel was intelligent. I never have seen it classified. Mr. KITCHIN. Is there any considerable portion of those dinner sets that come in the import price of which would be four and five dollars? PARAGRAPHS 92-94-POTTERY. Mr. JONES. Oh, yes; I think there is a considerable portion of them. Mr. KITCHIN. Of the plain white? Mr. JONES. No; not the plain white. Mr. KITCHIN. What do you mean when you say a considerable portion? Mr. JONES. I mean what would be called the lower grade of decorated ware. Mr. KITCHIN. Decorated ware? The CHAIRMAN. Is decorated ware cheaper than plain white ware? Mr. JONES. Yes, and no. Decorated ware is made cheaper because on the pieces that are selected for decoration oftentimes they decorate over blemishes. In the hard firing of pottery, little blemishes, little bits of blisters, which you might not detect, but which I should detect, occur, and they can print right over those little blemishes; so that they can produce decorated ware oftentimes cheaper on that account, because they cover up some of the little imperfections. Mr. KITCHIN. I see in 1912 we imported of decorated china, chinaware, decorated, painted, etc., about $8,000,000 worth. What proportion of that would be dinner sets whose import price would not be in excess of $25? Mr. JONES. Well, that would involve the whole decorated output, I suppose. Mr. KITCHIN. Yes. Mr. JONES. That runs all the way from sets that would cost $15 to $30 to $40 and upward. In that case "the punishment to fit the crime"-no matter how high the cost of the set, the ad valorem duty would reach Mr. KITCHIN (interposing). I understand that. What I am getting at is this: Was all of this $8,000,000 worth of imports high-priced china? Mr. JONES. Not necessarily. Mr. KITCHIN. What proportion would you say of that was dinner sets that exceeded $25 import price? Mr. JONES. I should think it was a third of it. Mr. KITCHIN. About a third? Mr. JONES. Or a quarter of it, I should say, because the great mass that comes in is for the middle class-the class that can not afford high-priced sets. Mr. KITCHIN. You think the greater proportion of that is china that is imported for the middle classes? Mr. JONES. Surely. Mr. KITCHIN. Do the manufacturers in this country make any highclass china? Mr. JONES. Yes, sir. Mr. KITCHIN. Do they make china that would wholesale to exceed $50 a set? Mr. JONES. It is made by several potters. I have in mind a potter that makes ware up on the level of the high-cost decorations, and they are successful. They do not have a large output, but they are successfully competing and have an output that satisfies the customer who wants a high-class decorated set. They are successfully competing now, but only two or three potteries. PARAGRAPHS 92-94-POTTERY. Mr. KITCHIN. How are those sets classified? They are composed of how many pieces-75, 100, 112, or 115? Mr. JONES. Well, the answer to that is that where we import a great many sets we have to import an open stock, so that a customer can buy anything he wants to. He is not obliged to confine himself to a set. You could hardly find a woman customer who would want exactly the same combination of pieces, so that the class of dealers to which I belong have to have an open stock. We carry an open stock to satisfy any retail customer or wholesale customer. Mr. KITCHIN. You do not always buy them in sets? Mr. JONES. Not necessarily; not one-half are imported in sets. Mr. JONES. Oh, a good proportion of them will buy dinner sets. Then they patch them up afterwards Mr. KITCHIN (interposing). What are the wholesale classifications in this country of dinner sets and tea sets? Mr. JONES. Well, it may be 100 or it may be 110 or it may be 130. Mr. KITCHIN. They have a regular number of pieces for different sets, do they not? Mr. JONES. As a rule; yes. Mr. KITCHIN. What is the general rule? What is the number of pieces? Mr. JONES. Well, plates, cups, saucers, and meat dishes Mr. KITCHIN (interposing). I know, but how many in a set? You see them advertising a dinner set of 100 pieces or 115 pieces or 130 pieces? Mr. JONES. Well, it is according to the fancy of the dealer and the fancy of his customer. There is no absolute formulæ as to what a dinner set should be. Some think it ought to be larger on plates and some less; some think it ought to be larger on platters and less on pitchers, and so forth. There is no cookbook rule about it. Mr. LONGWORTH. Do you deal in any of the articles in paragraph 92 ? Mr. JONES. Yes, sir; but we do not import any, because they are made cheaper here. You take the common yellow ware and things that go into the kitchen and the American market has had those for years. We can not import. Any importer that would import those lines and pay the duty, they would want him in a dime museum as a curiosity. Mr. LONGWORTH. Are any of the articles enumerated in paragraph 92 a substantial part of your business? Mr. JONES. I beg your pardon? Mr. LONGWORTH. Are any of the articles enumerated in paragraph 92 a substantial part of your business? Mr. JONES. Oh, yes; we get them by the carload from the Ohio potteries, and have for several years. Mr. LONGWORTH. What you import all comes in under paragraphs 93 and 94? Mr. JONES. Yes, sir. Mr. LONGWORTH. Do you buy in the open market abroad? Mr. JONES. Yes, sir. |