The Swedish cast-steel anvil takes a duty of 15 cents a pound, but if classified as steel castings, which it is, excepting that it is a finished steel casting, it would take a rate of 22 cents a pound. The price of an anvil is of small moment to the purchasers, who at present are mostly the railroads, mines, factories, and so forth, and, as an anvil lasts many years, the cost per year is negligible. However, speaking for my own company, if we are granted relief we will not increase our present price. In fact, with increased volume available, we hope to lower it. In other words, we do not want an increase to enable us to raise our prices, but our volume. The situation to-day is that our production is so low that our overhead costs are increasing and we can not afford the expense of training new men. In a few years, under the present tendency, anvil making in this country will be a lost art. In time of war anvils are not a large item, but they are a very essential one, and we should be prepared to produce them. Mr. COLLIER. Swedish anvils are made of cast steel, are they not? Mr. FINNERAN. Yes. Mr. COLLIER. Ours are made in three ways, according to the Tariff Commission, and wrought iron constitutes the greater part of the labor. What is the difference in utility between the cast steel and the wrought? Mr. FINNERAN. The wrought steel anvil that we make is better. It will last longer. It is recognized by all the metallurgists that a forged piece of steel is better than cast steel; but, at the same time, the Swedish manufacturers, on account of the very high grade of their basic ores, are able to produce a cast steel anvil that gives fairly satisfactory results, and is competing with our anvils. Mr. COLLIER. If the Swedish people made a forged-steel anvil it would cost them considerably more, too, if they made as good an anvil as we did, would it not? Mr. FINNERAN. If they made a forged anvil it would cost them more to produce than it does to produce a cast steel anvil. We have tried to produce cast steel anvils in this country, but were never able to do it successfully. Mr. COLLIER. Is that because our ores are not sufficient? Mr. FINNERAN. Yes. Mr. COLLIER. You have 45 per cent on what you call jewelers' anvils, anvils under 5 pounds. How much do you want to raise those? Mr. FINNERAN. We do not make those. Mr. COLLIER. You are referring to the heavy anvils, on which we have 15% cents a pound, which is about 20 per cent ad valorem. What do you want on that? You want that 15% cents raised on what? Mr. FINNERAN. We want it raised to specifically 4 cents per pound. Mr. COLLIER. That would be about 60 per cent ad valorem, would it not? Mr. FINNERAN. No. I think the average value of imported anvils is around 9 cents. That would be about 55 per cent. Mr. COLLIER. The rate you have, which is 15%, or just a little over 12, is practically 20 per cent. Then, if you raised it to 4 cents, it would be considerably over 50 per cent, would it not? Mr. FINNERAN. I would say it would be about 50 per cent, roughly. Mr. COLLIER. I think it would be about 65 per cent, but I have not made the mathematical calculation. (Mr. Finneran submitted the following brief:) BRIEF OF DOMESTIC ANVIL MANUFACTURERS Hon. WILLIS C. HAWLEY, Chairman Ways and Means Committee, House of Representatives, Washington, D. C. DEAR SIR: The anvil manufacturers of this country again appear before Congress to appeal for tariff relief for the third and what will undoubtedly be the last time if said relief is not granted. The history of tariff legislation on anvils is as follows: Anvils were first placed on the dutiable list in 1894 under the McKinley Act at 22 cents per pound. Prior to that time all wrought anvils used in this country were imported from Germany and England. In 1894 imports were 736,915 pounds, but in 1895 the duty was reduced to 134 cents per pound and imports increased to an average of close to 1,000,000 pounds per year in 1895, 1896, and 1897. In 1898 the duty was increased to 1% cents per pound, at which rate it remained until 1910, the average imports during those years being about 605,000 pounds, varying a little of course with business conditions. In 1910 the duty was again reduced to 15% cents and during the three years to 1912, inclusive, imports averaged about 1,100,000 pounds annually. In 1913 the duty under the Underwood Act was changed to 15 per cent ad valorem, but from the beginning of the World War until several years after its close, a natural tariff law was in effect and the imports were only nominal, averaging less than 150,000 pounds for the years 1915 to 1922, inclusive. In 1922 a committee representing five anvil manufacturers in a petition before the Senate Finance Committee stated that if the anvil business was to survive it would be necessary to raise the tariff considerably higher than it had ever been before because of the great increase in wages and other costs as compared to 1913 and they predicted a large increase in importations. Their request was refused, and what has been the result? The five companies petitioning Congress in 1913 were the Hay Budden Manufacturing Co., Brooklyn, N. Y.; the Columbian Hardware Co., Cleveland, Ohio; the Columbus Anvil & Forging Co., Columbus, Ohio; the Columbus Forge & Iron Co., Columbus, Ohio; the Fisher Norris Co., Trenton, N. J. Since then the Hay Budden Co. has been forced out of business, the Columbian Hardware Co. has discontinued the manufacture of anvils, and the Columbus Anvil & Forging Co. has passed through receivership and is to-day developing their business along other lines as their anvil business is steadily declining. The crux of the situation is that the manufacture of anvils requires a highly skilled and specialized labor and can not be done by the ordinary mechanic without long and expensive training and we can not afford the expense of training new men to carry on the work because of the narrow margin of profit and small volume, and when the few skilled men existing to-day drop out for one reason or other anvil making in this country will become a lost art. The record of importations and domestic sales from 1922 to 1928, inclusive, is as follows: Domestic sales not available prior to 1925 on account of two companies now being out of business. Not available. It will be noted from above that there has been a steady increase in importations and consequent drop in domestic sales since 1922 and that while prior to the war imports were mostly from England and Germany, to-day they are practically all from Sweden. This is due to the fact that Sweden is producing a cast-steel anvil which can be made much cheaper than a wrought or forged one, and due to the superior quality of their basic ores their cast-steel anvil gives fair satisfaction, and while not equal in quality to the domestic makes and can not be repaired, yet on account of the low price at which it can be sold is seriously interferring with the sale of domestic anvils. It has been demonstrated that we can not produce a satisfactory cast-steel anvil in this country, as it was tried for a number of years but was not successful. The domestic anvil sells in this country to the jobber at about 15 cents per pound, while the Swedish anvil sells at 12 to 13 cents and even lower if imported direct, and as proof thereof we quote from Bulletins of the Biddle Purchasing Co. of New York as follows, as per attached addendum. There is no doubt that the total volume of anvil business available to-day is considerably less than in former years due to the automobile and more extensive use of drop forgings, thus eliminating to a large extent the old-time blacksmith. However, there is still a considerable demand that would produce a fair volume for domestic makers if they could secure a fair share. In the year 1907 there were produced in this country over 3,000,000 pounds of wrought anvils and the imports were 709,000 pounds, while in the year 1927 imports were 836,450 pounds and domestic sales 538,253, so that the importers have maintained their volume and the full brunt of decreased demand has been borne by domestic manufacturers. Relative cost of production.—In their brief to the House Ways and Means Committee in 1913 the anvil manufacturers pointed out that wages for similar labor in Sweden averaged 99 cents per day, or 11 cents per hour, as compared to an average rate in this country of $1.82 per day, or 20 cents per hour. We do not know the present rate in Sweden, but our average rate for men producing anvils is about $4.95 per day, or 55 cents per hour, so that the necessity of an increase in duty is obvious if American labor is to be protected. Discrimination.-Due no doubt to its own fault in not properly presenting its case to Congress, the anvil industry is grossly discriminated against in their tariff rate as compared to the rate on other iron and steel products, as witness: The present duty is 15% cents per pound, which based on the average value of anvils imported gives an ad valorem rate of duty of about 18 per cent, but for the years 1894 to 1912 under a protective tariff the average ad valorem rate of duty was 30.3 per cent, so that while due to changed conditions we should have a higher duty, we actually have less protection than we had prior to the war. Now, compare our present duty of 15% cents per pound (which figures about 18 per cent ad valorem) with other articles in iron and steel in tariff act of 1922. H. B. 7456. Paragraph 304: Steel ingots, billets, castings, etc., value (This is a comparatively low-priced product, in which the cost of labor is not nearly as great as in anvils.) Paragraph 312: Beams, etc., fabricated.. (The average value of this product would probably not exceed 3 or 4 cents per pound.) Frames and building forms.. Paragraph 319: Forgings of iron or steel not advanced condition by any subsequent operation............. Paragraph 326: Blacksmith hammers, tongs, sledges, track tools and crowbars. (The value of these items would probably not exceed 3 or 4 cents per pound.) Paragraph 331: Cut nails and spikes... (The selling price to jobbers in this country is about 212 cents per pound.) Paragraph 333: Horseshoes... (Sell to the Jobber for about 5 cents per pound.) Paragraph 332: Rivets of iron or steel. Rate 22 cents per pound. 20 per cent ad valorem. 20 per cent ad valorem. 25 per cent ad valorem. 25 per cent ad valorem. 13% cents per pound. 1 cent per pound. 1 cent per pound. 1 cent per pound. (Sell for about the same price as nails.) Paragraph 334: Saddlery or harness hardware.. Paragraph 398: Twist drills, reamers, taps, etc... Rate 35 per cent ad valorem. 60 per cent ad valorem. 30 per cent ad valorem. 60 per cent ad valorem. 55 per cent ad valorem. 35 per cent ad valorem. A study of the above items will reveal the following rather startling facts, viz: First. That the duty on anvils is lower on an ad valorem basis and in some cases on a pound basis than other forms of iron or steel, even in the lowest stages of manufacture. Second. The same thing applies to the duty on tools of the same general nature and use as anvils, but most of them much lower in value, viz: Par. 326. Blacksmith hammers. Par. 331. Cut nails and spikes. Par. 333. Horseshoes. Par. 334. Harness hardware. Par. 373. Shovels, etc. Third. That the items in higher stages of manufacture take a much higher duty than anvils. Fourth. That the duty on raw materials entering into the manufacture of anvils is higher than on anvils themselves, as witness: 1. Tool steel used for facing anvils, paragraph 304, 1.7 cents per pound. 2. Forgings of iron or steel, paragraph 319, 25 per cent ad valorem. 3. Steel castings, paragraph 304, 22 cents per pound. Fifth. That the duty on the cast-steel Swedish anvil of 15% cents per pound is lower than if they came in as unfinished steel castings at 21⁄2 cents per pound, and the duty on forged anvils is lower than if classified under unfinished forgings, paragraph 319, at 25 per cent as valorem. Now let us consider the effect of a higher tariff on the Government, the consumer, and the manufacturer. First. The Government: The revenues to the Government in 1926 were only $13,000, so that the loss would be practically negligible, and would undoubtedly be more than offset by income and local taxes paid by the domestic manufacturers, together with that paid by their employees and people from whom they purchase raw materials, machinery, etc. Furthermore, in time of war, anvils while not a large item, is an essential one, and it is necessary that we be prepared to produce them, as was demonstrated by the pressure for production exerted by the Government during the last war. Second. The consumer: The principal markets for high-grade anvils to-day are the railroads, mines, factories, etc., and as an anvil lasts many years, the price of one to any individual purchaser is of small moment. It is true that the farmers, garages, etc., purchase anvils, but as they do not require a high-grade one, the demand from this source is supplied by makers of cheap cast-iron or cast-steel anvils, selling at from 5 to 10 cents per pound, and which are not affected by the tariff. Third. The manufacturers: An increased tariff will enable us to keep our men fully employed, which we are not doing at present; will enable us to operate profitably, to purchase more materials from domestic suppliers, and to pay taxes to the National and local Governments. We will say further, that barring an inflation of labor or material costs, we will not raise our price above what it is at present. In fact, with the increased volume available, we are hopeful of being able to make a lower price. In conclusion we wish to say that in order to overcome the present spread between the Swedish price of 122 cents per pound and the domestic price of 15 cents, it will be necessary to increase the tariff rate to not less than 4 cents per pound, and we respectfully request your honorable committee to recommend this increase to Congress, after giving full consideration to the facts stated above. Respectfully, COLUMBUS ANVIL & FORGING CO., J. E. FUMERAN, President. COLUMBUS FORGE & IRON Co., FISHER NORRIS "EAGLE" ANVIL WORKS ADDENDUM (Being quotations from bulletins of Biddle Purchasing Co., New York, N. Y.) Swedish steel anvils-a low price: A genuine Swedish steel solid 1-piece construction 12 cents pound base, standard American extras, terms 30-12-10, f. o. b. New York. A good range of sizes is carried and immediate shipments can be made. Can be imported direct if ordered in sufficient quantities from 1 to 2 cents pound lower. This price seems attractive when compared with prices of domestic brands which range from 14 to 16 cents pound base. Wrought anvils: There has been some hesitancy about the buying of Swedish anvils, but general results for this year have been so satisfactory that there is little doubt about their being a real worth-while item. Domestic manufacturers have repeatedly recognized this competition but do not seem to be able to get their cost down to a point where it will enable them to bring the price of the domestic anvil below a basis of 15 cents. Swedish steel and iron products have long been recognized for their merit. On your future anvil business consider this Swedish item. We are entering orders in 1,000-pound lots at 121⁄2 cents, and in smaller quantities at 13 cents base, f. o. b. New York. A good stock is on hand of all of the good-selling sizes. Anvil prices steady: Both the domestic and imported brands seem to draw a certain amount of business. Very likely more and more are becoming converted to the imported anvil because of the differential in price and the realization that a good Swedish steel anvil is a first-class product in every way. Domestic sources continue to insist that there is no room for a lowering in price. This places the base at 15 cents f. o. b. shipping point. In quantities that aggregate 1,000 pounds the price is 122 cents per pound and in less quantities 13 cents pound f. o. b. New York. A substantial stock is on hand for immediate shipment. Wrought-anvil prices: The advance made a few days ago by one of the leading manufacturers of cast-iron anvils is not to be taken as an indication that the wrought anvil will advance. The wrought-anvil market is a far more competitive market. Domestic manufacturers have been unable to get their cost of production down so as to be able to meet foreign competition with the result that many foreign anvils are being sold and apparently giving good satisfication. For many years anvils have been imported from abroad, some makes of which bring higher prices than the domestic brands. We have a very satisfactory arrangement on a Swedish steel anvil in quantities of 1,000 pounds-122 cents and in smaller quantities 13 cents base. Terms 30-12-10 f. o. b. New York. A good stock is available of practically all sizes. Each anvil is guaranteed to give satisfaction. See price card No. 34. CAST-IRON PIPE AND FITTINGS [Par. 327] STATEMENT OF WALTER WOOD, REPRESENTING THE R. D. WOOD CO., FLORENCE, N. J. Mr. WOOD. Mr. Chairman and gentlemen, the cast-iron industry in this country is in a very unique situation on account of the wars between France and Germany. In the war of 1870 when France was on her knees she traded to Germany the Bruay Basin of iron ore, in order to be able to hold one of her main frontier fortresses. Of course, we in 1914 reversed things. She got the glory of securing Alsace and Lorraine, but we had the satisfaction of bringing back in our own borders most of the iron ore upon which she has developed her iron industry from three to four million tons a year up to 10,000,000. In fact, she has deprived Germany of one of the largest sources of ore supplies that Germany has. |