Mr. ASBURY. Unquestionably the foreign machine. Mr. ASBURY. Yes; because when it is displayed the established price, we will say, of the American machine being $1.75, an attempt is frequently made by the distributors, department stores, and others, to put the same price on that as they would put on the American machine, or perhaps a 5 or 10 cent cut, when it costs them much less, and they can sell on appearance, simulating American products. Mr. TREADWAY. So that you are at a disadvantage in reaching the consumer? Mr. ASBURY. Unquestionably. Mr. MCLAUGHLIN. I notice that the larger the machine the higher the price. In what way is it more expensive to make the larger machines, except for the amount of material that goes into them? Mr. ASBURY. The tool equipment is very much more expensive on the larger articles. The wear and tear on tools, and the replacement of the more expensive tools, more frequently, of course, adds to the cost. In addition, the large diameter tools operate more slowly, and it takes more time of labor in producing. Mr. MCLAUGHLIN. Is there the same relative difference in the cost of the foreign manufacturers? Do they increase in price, relatively, the same as yours, as the size increases? Mr. ASBURY. Yes. Mr. MCLAUGHLIN. Do you find any difference between your commodity and the foreign commodity, as to quality? Mr. ASBURY. We do, but the public does not. Mr. MCLAUGHLIN. Which is better? Mr. ASBURY. The American product. Mr. MCLAUGHLIN. The material is practically the same, is it not? Mr. ASBURY. The material is the same, yes, but you will note that in the cutting edge Mr. MCLAUGHLIN. Your work is better? Mr. ASBURY. The work is better. It is more accurately done. Mr. RAGON. If one were to go down here to buy that article, what would it cost? What would that generally retail at? Mr. ASBURY. This one would retail for about $2.25. The smaller model which I submitted would be about $1.25 for the foreign one, and about $1.75 for the American. Mr. RAGON. Can you give us any idea about the number of those articles sold in the country? Mr. ASBURY. Yes. There are over one million a year. Mr. RAGON. They are sold largely to the farming class, I suppose? Mr. ASBURY. The larger sizes go largely to the farming classes. The smaller sizes are sold through hardware and department stores. Mr. CHINDBLOM. If you can give us some idea of the relative cost of these two pieces, and a comparison between the foreign cost and the American cost, I think that would be a better standard than the retail price. The CHAIRMAN. The gentleman answered that question a moment ago by saying that because these articles are in the basket clause he can not obtain those prices. You can make any answer you wish to Mr. Chindblom. Mr. CHINDBLOм. Do you think the retail prices that you have mentioned are indicative of the difference in the relative cost of production? Mr. ASBURY. Yes, sir, substantially. Mr. RAMSEYER. You say the quality is the same? Mr. ASBURY. No. The American product we consider superior in quality. Mr. RAMSEYER. How about the material? Mr. ASBURY. The material is substantially the same. Mr. RAMSEYER. In what way do you speak of quality? In examining these grinders here, I am not an expert on making sausages, and I can not see any difference. Mr. ASBURY. May I explain? These two parts [indicating] are the heart of the machine. That is where the cutting is done. The accuracy of fit between those parts is a determining element. Mr. CHINDBLOM. What are those parts, for the record? The CHAIRMAN. How do you describe them? Are they the cutting knives? Mr. ASBURY. I should describe them as the cutting knives; yes, sir. Mr. TREADWAY. I would like to ask one further question. You said there were 1,000,000 used in the country. Mr. ASBURY. Yes, sir. Mr. TREADWAY. You did not state the relative number used of American manufacture and foreign importation. Mr. ASBURY. I am sorry I can not answer that question, sir, because the record of imports is not available. Mr. TREADWAY. I realize that, but my question was directed more particularly to your information coming through the trade, and what you thought was the probable relationship between the two. Mr. ASBURY. Within the past two years the importations have increased very much, and the competitive situation is an impossible one for the American manufacturers. (Mr. Asbury submitted the following brief:) BRIEF OF MANUFACTURERS OF MEAT AND FOOD CHOPPERS The Committee on Ways and Means, House of Representatives, Washington, D. C. GENTLEMEN: This brief refers to paragraph 399 of Schedule 3 of tariff act of 1922 (H. R. 7456). When the tariff act of 1922 (H. R. 7456) was enacted the manufacturers of meat and food choppers assumed that importations would be assessed under paragraph 399 of Schedule 3 of that bill, which provides for "Articles or wares not specially provided for," but in the subsequent administration of it, the bulk of the importations were assessed under that portion of paragraph 372 which provides for "all other machines or parts thereof finished or unfinished," the rate of duty in this paragraph being 25 per cent less than provided in paragraph 339, which provides for "Table, household, kitchen, and hospital utensils." Separate parts of these goods were imported under paragraph 356 which provides for "and all other cutting knives and blades used in power or hand machines" at a rate of duty 50 per cent less than provided in paragraph 399. Under these rulings, the American manufacturers are confronted with a very difficult situation, and we therefore respectfully urge that a separate paragraph be provided covering meat choppers, cutters or grinders, food choppers, cutters or grinders and parts thereof 40 per cent, and when coated or plated in whole or in part with tin, nickel, or zinc or enameled or glazed with vitreous glasses, 5 cents per pound additional. In support of this plea the manufacturers enumerated below, who represent 95 per cent of the total industry, submit the following statistics: Total amount State taxes paid... $4, 824. 51 $5, 297.94 $6, 565. 49 $5, 632. 10 $5, 105, 51 $4, 773. 91 $4, 721.86 Since the enactment of H. R. 7456 in 1922 became operative in 1923, there has been a steady decline in the number of employees, aggregating over 25 per cent with a corresponding steady decline in the volume of business-and since 1922 when the present law was enacted the daily wages paid by the industry to common labor have advanced approximately 15 per cent, and to skilled labor approximately 20 per cent. Therefore, with lesser volume and higher costs we are compelled to ask relief by somewhat higher rates of duty. We respectfully present that the amount of Federal taxes paid by the industry have likewise declined about 25 per cent. In general we submit the following facts regarding the industry and the prices of foreign competitors affecting it. This industry was originated in the United States, and in former years the manufacturers in the United States not only supplied out domestic market, but succeeded in developing an export business practically covering all countries of the world. The foreign manufacturers by reason of substantially lower cost of manufacture have practically captured all of the markets in the common export fields. This in itself was of serious consideration to the American manufacturers. The foreign manufacturers have copied the original patterns made here, and have actually adopted the arbitrary numbers, designating different sizes and models, which the American manufacturers had previously established, and which by long use became of good-will value in trade practices. To such an extent has this been done that it is difficult to determine by casual glance the difference between the goods made here and the goods which are imported. We will be glad to submit for your inspection samples which will demonstrate this similarity. This, we submit, savors of unfair competition, and furthermore, the importers are widely advertising that all parts for imported machines are interchangeable with those of the American manufacturers. The American manufacturers, on the other hand, have carefully avoided such unethical or unfair practices, and have not duplicated each other's models, patterns, or numbers, thereby preventing so far as possible any deceptive substitutions, or confusion in the minds of the public as to the identity of the product. In recent years the foreign manufacturers have been very aggressive in the American market, actually selling the foreign goods, after custom duties, transportation, selling expenses, and presumably a profit for the importer has been added, at prices from 162% per cent to 30 per cent lower than the selling prices of the American manufacturers of similar models, as quotations which we are prepared to furnish your committee will indicate. The chief sources of importations in the industry are from Germany, Sweden, and Czechoslovakia. From the best information available we have gathered that the labor costs in foreign countries where meat and food choppers are made, compare with ours as follows: Czechoslovakia, 20 per cent; Germany, 35 per cent; Sweden, 40 per cent. There is now grave danger of a transference of our home market to the foreign manufacturers unless the relief for which we pray is granted. If, in the wisdom of your committee, a separate paragraph can not be provided as above requested, we then respectfully urge that the provisions in paragraphs 339, 356, 372 and 399, all be amended to carry the rate of duty for which we ask. Respectfully submitted. CHARLES W. ASBURY, Enterprise Manufacturing Co., Philadelphia, Pa. Representing also: Colebrookdale Manufacturing Co., Pottstown, Pa.; Griswold Manufacturing Co., Erie, Pa.; New Standard Corporation, Mount Joy, Pa.; Russell & Erwin Manufacturing Co., New Britain, Conn.; Sargent & Co., New Haven, Conn. BRIEF OF BOLINDERS CO. (INC.), NEW YORK CITY [Including knives for meat and food choppers, par. 356] COMMITTEE ON WAYS AND MEANS, House of Representatives, Washington, D. C. GENTLEMEN: Paragraphs 372, 339, and 356 of the act of 1922 are the paragraphs under which meat and food choppers and parts are imported under the present act as follows: Small sizes of meat and food choppers and parts thereof except knives are imported under paragraph 339 listed as "Kitchen utensils" are dutiable at 40 per cent ad valorem. Larger meat and food choppers and parts thereof except knives are imported under paragraph 372 under the provision "All other machines and parts thereof, finished or unfinished, not specially provided for," are dutiable at 30 per cent ad valorem. Knives for all sizes of meat and food choppers are imported under paragraph 356 under the provision "Meat-slicing cutters and all other cutting knives and blades used in power and hand machines" are dutiable at 20 per cent ad valorem. We respectfully submit that paragraph 372 of the tariff act of 1922 indicates congressional intent to classify meat and food choppers of all sizes under the general provision of "All other machines and parts thereof, finished or unfinished, not specially provided for," dutiable at 30 per cent ad valorem. We further submit that paragraph 356 specifying "Meat-slicing cutters and all other cutting knives and blades used in power and hand machines," dutiable at 20 per cent ad valorem, not only covers so-called knives used in meat choppers but it also apparently was the congressional intent to cover knives and blades or plates used for meat choppers in so far as both knives and plates or blades form a cutting unit and should be dutiable under paragraph 356. We therefore respectfully suggest that all meat and food choppers and parts thereof except knives and plates should be classified under paragraph 372, dutiable at 30 per cent. Knives and plates used for cutting purposes in meat and food choppers should be classified under paragraph 356, duitable at 20 per cent. We submit the following information for the consideration of the honorable committee. At the hearing held before the Committee on Ways and Means January 19, 1929, Mr. Charles W. Asbury, representing 95 per cent of the domestic manufacturers of meat and food choppers submitted statistics showing meat and food choppers manufactured in the United States as follows: We respectfully call your attention to the fact that we are the largest importers of meat and food choppers and that our importation of these products into the United States exceeds the total of all other importers of such products. Our average importation per year beginning with 1922 and ending with 1928 were less than 5,000 pieces of complete meat and food choppers per annum. Since there are no accurate records available at this time as to the importation of the other importers of meat and food choppers, we estimate that the total importations of meat and food choppers of all importers are less than 10,000 pieces per annum. The average number according to figures given by domestic manufacturers at above hearing of meat and food choppers manufactured per year during the same period in the United States is 1,000,000 pieces. Therefore, the total importation of 10,000 pieces represents only 1 per cent of the pieces manufactured in the United States. It has been impossible for us to get definite statistics as to the number of United States pieces (meat and food choppers) exported during the same period but we are reliably informed that the exportation exceeds the importation by a very substantial margin. At the hearing before the Committee on Ways and Means on January 19, 1929, it was further stated that the meat and food choppers manufactured in the United States are superior in quality and workmanship to those imported. We contend that therefore these domestic choppers of superior quality should logically sell at a higher price over the counter. It was further stated at said hearing that certain foreign manufacturers imitated the trade names of American manufacturers. According to our knowledge of the trade, there is only one foreign manufacturer who practices this. The importations from that source constitute only a very small part of the total importation. We do not subscribe to such practices and it is our opinion that the domestic manufacturer should protect himself with regard to trade names and should not use such argument as a reason for an increase in the rate of duty. At said hearing samples were submitted of foreign meat and food choppers selling at $1.25 and $1.30 over the counter while the American machine sells at $1.75. We are prepared to submit a sample of domestic machines selling over I the counter at 79 cents. We do not know of any foreign machine selling over the counter in the United States at a similar low price. The sale of meat and food chopper parts, particularly knives and plates, is almost entirely and exclusively controlled by domestic manufacturers due to the fact that on account of the prevailing high duties, the importer is unable to compete in this market. In the hearing before the Ways and Means Committee, it was further stated that the yearly sale of domestic meat and food choppers has gradually decreased during the period from 1922 to 1928. We respectfully submit that in our opinion this decreased sale of these products was not due to an increase of imported similar products but it was primarily due to the fact that during this period, electric-operated meat and food choppers primarily used by butchers, institutions, and restaurants exclusively of domestic manufacture were developed and replaced large quantities of hand choppers. We respectfully submit to the honorable committee's attention that hand-operated meat and food choppers are primarily used by the average small household and farm as well as the small butcher store. All large operators restaurants, hospitals, public institutions of all sorts, also butchers of average size are using machine-operated, generally electric-driven meat and food choppers. Therefore, a decrease in duty would in our opinion not harm the domestic manufacturer of meat and food choppers but it would beneficially affect the average wage earner of the United States. We further are of the opinion that importations of the comparatively small quantities of choppers as mentioned, will be of benefit to the citizen of the United States in so far as those importations tend to stabilize the trade and eliminate monopoly in this market as well as avoid excessive profits which may result from such exclusion of reasonable foreign competition. In view of these presentations, we pray that you will duly consider our recommendations made with regard to the classifications of meat and food choppers and parts thereof as herein stated. Respectfully submitted, E. J. LUSTER, |