to 9.1 per cent on the inch and to 10.8 per cent on the inch. From this size it rises to a maximum increase of 19.1 per cent for the 14 inch, falling to 15.6 per cent on the 11⁄2 inch and again rising.

COSTS ON THRUST BALL BEARINGS KEEP THEM OUT

Tapered roller bearings are made 221⁄2 per cent cheaper in Canton, Ohio, than in Turin, Italy, tariff or no tariff.

Spiral cylindrical bearings are made by two companies in the United Statesone very large, the other very small-and by two in Europe-one very large, the other large. The very large European manufacturer makes only for replacement purposes, the other gives little space to them in his catalogue. On the other hand the very large American manufacturer says in his service catalogue, 1927: "Hyatt service is provided in every country in the world through the operation of hundreds of branches, dealers, and agencies." The enormous quantities run through the American plant make it probable that here again American cost are below foreign costs.

It is possible to import balls inch and smaller, radial ball bearings, solid cylindrical roller bearings, and spherical roller bearings.

Spherical roller bearings are made under patent owned by Aktiebolaget Svenska Kullager Fabriken, the owner of S K F Industries (Inc.). There is no licensee Solid cylindrical roller bearings and -inch balls and smaller are a small business

PRICES

Bearings in sizes 205 and 304 and smaller can be imported from Germany and sold at net 10 per cent profit when quoted 70 per cent from the American list. Sizes larger than 205 and 304 can be sold at a fair profit at 70 and 10 per cent. Taking as examples sizes 305 and 205 which list at $4.10 and $3 and using these discounts we find the first can be sold at $1.107, the second at 90 cents. The weight of the 305 is 0.55 pound and of the 205, 0.29 pound. This makes a specific of 5.5 cents on the 305 and 2.9 cents on the 205. When this specific is subtracted we have a price of $1.052 for the 305 and $0.871 for the 205. But ball bearings are sold in the United States at 80 per cent from list, sometimes 80 and 10 per cent to the largest buyers. This makes the American price of the 305, 82 cents and of the 205, 60 cents. This is a mark-up over the foreign fair price of 28 per cent for the 305 and 45 per cent for the 205. Included in this 28 per cent and 45 per cent is a profit for the importer of, say, 10 per cent. This brings the figures down to 18 per cent and 35 per cent. The tariff would have to be reduced by 18 per cent for German makers to begin to compete, if in addition the ad valorem were removed.

WHY THE TARIFF SHOULD BE REDUCED

A reduction in the tariff will allow more bearings to come in.
This will bring more revenue to the Federal Government.

A reduction in the tariff will make bearings somewhat cheaper to the American buyer and the ultimate consumer. This will lower the price of articles into which bearings are incorporated, ultimately reducing the price of many articles manufactured by machines using bearings. Passenger cars are largely used by farmers.

A reduction in the tariff will mean keener competition to American manufacturers of bearings. Competition is a fundamental of our national policy for business. Somewhat lower prices will necessitate that the American manufacturer better his manufacturing and selling methods (always remembering that American bearings now compete with foreign bearings in foreign countries.) A lower price will mean a greater use of bearings. Each lower price opens up a new stratum of buyers. In this the American manufacturer will profit with the European.

More imports will mean more exports, commerce being an exchange, and these exports will be goods that will be made in the United States.

But chiefly to remember is the absurdity of a tariff upon a line of goods exported over seven to one imported.

AMOUNT OF REDUCTION REQUESTED

In view of these facts a change in the tariff to "20 per centum ad valorem" is requested.

CONNECTION OF AUTHOR OF THIS BRIEF

This brief has been prepared for H. Boker & Co. Owing to the fact that Mr. Boker had to leave for Europe before the brief was completed, the author, not H. Boker & Co., signs the brief.

See committee print, unrevised, No. 7, page 1390.

MORGAN T. RILEY.

LETTER FROM THE BINGHAMTON CHAMBER OF COMMERCE, BINGHAMTON, N. Y.

Congressman JOHN D. CLARK,

House of Representatives, Washington, D. C.

JANUARY 22, 1929.

MY DEAR CONGRESSMAN: The following figures on the Hider Steel Ball Works will show you the problem that they are up against, particularly in the small sizes:

Production figures of this company show that in 1928 they produced 6,000,000 of one-eighth size as against sales of 20,000,000 in 1927. They were able to keep a better position with the five thirty-seconds balls by slashing their prices to cost figures. They made 6,000,000 of this size in each year. They likewise undercut the German figures in order to keep their plant going on the threesixteenths size and increased from 4,500,000 to 8,000,000. Reduction of selling price was only one of two important factors that permitted them to keep in production on these two major sizes. In order to compete at all, they were compelled to sacrifice the American manufacturer of ball wire with their price of 17 cents and purchase from Germany at 9 cents.

This company employes about 25 people with a wage scale ranging from 35 cents to 70 cents per hour for the more skilled workers. Because of foreign competition, their output in 1928 was cut to $40,000 as compared with $60,000 for 1927.

From a manufacturer at Ann Arbor, Mich., we get our first and only information that there is in existence a ball tariff committee. I wrote him yesterday morning, upon receipt of the original of the attached letter, asking for the name of the chairman of the committee, as well as the name of the Washington counsel. Mr. Hider informs me that this is the first that he has ever heard of any such set-up and states that there is not a national organization of these particular manufacturers. Up to this morning's mail, we have heard nothing from any of the other eight manufacturers to whom we wrote Thursday afternoon.

Yours very truly,

J. KENNARD JOHNSON, Manager.

LETTER FROM THE MANUFACTURERS ASSOCIATION OF CONNECTICUT (INC.), HARTFORD, CONN.

Hon. E. HART FENN,

FEBRUARY 4, 1929.

House of Representatives, Washington, D. C.

MY DEAR CONGRESSMAN FENN: If it is not too late, the Hartford Steel Ball Co., of Hartford, Conn., wish to corroborate the statement made by Mr. J. Kennard Johnson, manager of the Binghamton Chamber of Commerce, Binghamton, N. Y., as introduced into the records of the hearings before the Ways and Means Committee on page 281 of print No. 15, January 23, 1929, and wish to become a party to their request for an increase in the tariff on antifriction balls, particularly in the 8-inch size.

Very truly yours,

JOSEPH E. WUICHET,
Foreign Trade Secretary.

STEEL TIRES

[Par. 324]

BRIEF OF RAILWAY STEEL-SPRING CO., NEW YORK CITY

To the COMMITTEE ON WAYS AND MEANS:

Subject: Paragraph 324, act of 1922.

"Wheels for railway purposes, and parts thereof, of iron or steel, and steel-tired wheels for railway purposes, wholly or partly finished, and iron or steel locomotive, car, or other railway tires and parts thereof, wholly or partly manufactured, 1 cent per pound; Provided, That when wheels for railway purposes, or parts therof, of iron or steel, are imported with iron or steel axles fitted in them, the wheels and axles together shall be dutiable at the same rate as is provided for the wheels when imported separately."

The same materials were covered in paragraph 142, Underwood law, October 3, 1913, the tariff being 20 per cent ad valorem.

Under the Payne-Aldrich bill of 1909, the tariff was 14 cents per pound on wholly or partly manufactured parts, and 1 cent per pound on ingots, blanks, etc. Under the Dingley bill of 1897, paragraph 171, the tariff was the same as the Payne-Aldrich bill of 1909.

Under the McKinley bill, the rates were 22 cents per pound.

The Railway Steel-Spring Co. has now invested in the business pertaining to the manufacture of steel tires $24,000,000 (this is but one of the articles enumerated in paragraph 324). The total investment in the United States in the manufacture of steel tires, we think, is approximately $50,000,000.

The total amount invested in the manufacture of the articles covered by paragraph 324 is very difficult to estimate, there being very many foundries that manufacture iron wheels, and at least 12 plants manufacturing steel wheels. We think that the total investment in the manufacture of articles covered by paragraph 324 would be $250,000,000.

Inquiry reveals that never in the history of the manufacture of steel tires in the United States have any American-made steel tires been used on English or German railroads, except that during the recent war some American-made tires were used to a limited extent upon English railroads.

All of the materials entering into the manufacture of steel tires in the United States are native American materials. The Railway Steel-Spring Co. alone employs about 1,500 men in this business. We can not accurately estimate the number of men employed in furnishing raw material to us, but a general idea of the number can be gathered when it is realized that it requires from four to five carloads of raw material, such as pig iron, scrap iron, fuel, supplies, etc., to manufacture one carload of tires.

The factories manufacturing steel tires are located in Pennsylvania and Illinois; the steel wheel-making factories are located in Pennsylvania and Illinois, and there is hardly a State in the Union that has not one or more foundries that manufacture iron wheels.

Inasmuch as the industry of the manufacture of steel tires, which was started in the United States about 1880, gives employment directly and indirectly to at least 6,000 men, and has a direct investment of $50,000,000, we think that a tariff of 22 cents per pound should be imposed upon articles of this class which are imported into the United States, for the following reasons:

We have absolutely no chance of selling steel tires in England, Germany, Belgium, France, or Italy, and little or no chance to sell any other European country. With respect to the former countries, it has been found to be wasted endeavor to even go through the preliminaries of quoting, as it is difficult, expensive, and generally impossible to secure specifications of the material to be purchased. The following quotation is from a letter written by United States Senator Sherman, of Illinois, dated Washington, D. C., May 20, 1913:

"The writer had occasion some time ago to examine Great Britain's schedule on this subject (import duties on tire and iron and steel wheels for railway purposes), and found that the compulsory use of such articles is made by law."

The steel-tire production of the European and Japanese manufacturers is greatly in excess of their consumption for home requirements, and the surplus production is sold in other markets for the best price obtainable. The object of maintaining an excessive production is for the purpose of reducing overhead expenses and to give employment to as many nationals as possible.

Directly after the Underwood law of 1913 became effective German representatives entered the American market and offered steel tires for sale at 0.019 cent per pound, ocean freight and tariff paid. The price charged in Germany for this material was about 0.04 cent per pound; the current price charged by American manufacturers was between 0.03 cent and 0.04 cent per pound. The entry of the German tires into the American market was made possible by the 20 per cent ad valorem tariff. We are not certain of all the objectives the German manufacturers had in mind, but we are positive that had they been able to continue selling tires in the United States at 0.019 cent or thereabouts the American tire makers generally would have been compelled to cease manufacturing, for the purpose of conserving their assets, resulting in the discharge of the employees and the possible disintegration of an industry which is of prime importance in our commercial life.

As compared with the steel-tire manufacturers of Europe and Japan, the American manufacturer of steel tires would be classified as high cost producers. Within the past few years three or four steel-tire plants have been erected in Japan. This increase in the world's production by low-cost producers will undoubtedly result in an invasion of the American market unless a high protective tariff is imposed.

The especial reason for the high cost in the United States is due to the fact that all of the materials used are of American origin. Whether the material consumed be it ore, pig iron, scrap iron, coal, oil, brick, etc., the high cost of American wages follows the material from the original extraction from the earth through to the finished steel tire. The machinery used for making steel tires is practically the same the world over.

Because of custom, or law, it would be practically impossible for the American steel-tire manufacturers to sell tires for use upon the railroads of England, France, Belgium, Japan, or Germany, and unless a high protective tariff is imposed the United States will be practically an open market for the manufacturers of the above referred to European countries and Japan.

In order to keep alive a long-established American industry, which during the recent war proved to be of the utmost importance (it being imperative that all locomotives be equipped with steel tires), we think, in view of the dire necessity for the maintenance of this industry in the United States, that a specific duty of 22 cents per pound be imposed upon steel tires that are imported into the United States.

In view of the foregoing, we think that it would be economically unsound to give foreign manufacturers and nationals an advantage which we are denied, and to allow them to profit at the expense of American industry and all that pertains to it, not the least being the taxes paid to the United States Government. RAILWAY STEEL-SPRING Co.

NEW YORK, N. Y., January 9, 1929.

ANVILS

[Par. 325]

STATEMENT OF J. E. FINNERAN, REPRESENTING THE COLUMBUS ANVIL & FORGING CO., THE COLUMBUS FORGE & IRON CO., COLUMBUS, OHIO, AND THE EAGLE ANVIL WORKS, TRENTON, N. J.

Mr. FINNERAN. Our industry is a small industry, but it is facing extinction. We are interested in paragraph 325, anvils. The present duty is 15% cents per pound. We ask for a specific duty of not less than 4 cents per pound.

In 1922, a committee representing the five anvil manufacturers appeared before Congress asking for an increased duty and predicting a large increase in importations if an increase were denied them, which it was.

Since then two companies, one of them the largest in the industry, have gone out of business. The imports have progressively increased from 166,000 pounds in 1922 to 836,000 pounds in 1927, and the domestic sales have progressively decreased from 879,000 pounds in 1925 to 447,000 pounds in 1928. We do not have the figures available for sales prior to 1925, as two companies are out of business and we have not their figures. So that imports at the present time are practically double domestic production.

It is true that there is not the market for anvils to-day that existed some years ago, but there would be a good volume available for the three companies now making anvils if they could secure a fair share of it. In the years from 1900 to 1910 the domestic production averaged about 3,000,000 pounds, and imports, under a duty of onequarter cent higher than it is to-day, averaged about 600,000 pounds, as compared to sales of 400,000 pounds and imports of 800,000 pounds to-day; so that the full brunt of the decreased demand has been borne by the domestic manufacturers.

About 80 per cent of imports now come from Sweden. The Swedish price in this country to-day is from 121 to 13 cents a pound, and the product is delivered at this price to New York, New Orleans, St. Louis, and San Francisco. The domestic price is 16 cents, f. o. b. factory. In 1913 the Swedish average wage rate for a similar class of labor was 11 cents per hour, as compared to our average rate of 20 cents. I do not know the Swedish rate at present, but ours is about 55 cents per hour. That is the average rate, including skilled and unskilled labor.

The ad valorem rate on anvils to-day figures about 18 per cent on the declared value, while prior to the war it averaged about 30 per cent, so that due to the rise in costs and values our actual protection. is less to-day than before the war.

We feel that we are grossly discriminated against in our tariff duty, as compared to other articles in iron and steel. As we point out in our brief, the duty on anvils, having a sales value of about 15 cents a pound, is as low as, and in most cases lower, figured on an ad valorem basis, than on steel products in low stages of manufactures, and selling from 22 to 4 cents a pound.