manufacturer is in a position to compete with Canadian manufacturers in production costs and where some trade has been established by American manufacturers based on features of construction and efficiency. 6. Question. Why do American-made cream separators cost more to manufacture than those manufactured in European countries? Answer. The principal reason at the present time is the scale of wages paid to all classes of workmen employed in the manufacture of such machines. A survey of American manufacturers shows that the percentage of labor entering into the actual manufacture of a centrifugal cream separator varies from 35 to 65 per cent of the total cost, depending upon, of course, the quality, size, and efficiency of the separator concerned. The Bureau of Labor statistics reveal that at the present time the average weekly wage in Belgium is only one-eighth as great as the average weekly wage for similar labor in the vicinity of Philadelphia, Pa., and that the average wage for all classes of labor in European countries is less than one-fourth of the average weekly wage for all classes of labor in the vicinity of Philadelphia, Pa. 7. Question. Has there been any reduction in wages in the cream-separator industry as yet? Answer. No general reductions in wages have been made and it is hoped that none will be necessary. 8. Question. How many large separators above $50 valuation are imported into the United States? Answer. During 1926 there were imported 816 separators at an average value of $198.47. In 1927 there were imported 403 at an average valuation of $337.79, the wide variation in values being accounted for undoubtedly by the difference in sizes and quality of machines imported during each year. 9. Question. How many factory-size cream and whey separators are manufactured in the United States? Answer. Accurate information is not available, but approximately from 1,000 to 1,500 for use in milk plants, condenseries, creameries, cheese factories, etc. 10. Question. How does the selling price of imported power seaparators compare with the selling price of American-made power separators? Answer. The selling prices are approximately the same with the best Americanmade machines. 11. Question. Why should power cream separators bear a higher duty than the 25 per cent now imposed? Answer. The same quality of materials, the same class of labor, but a greater percentage of labor to total cost, is used in the manufacture of a power cream separator. The import figures published by the Department of Commerce for the years 1926 and 1927 show an average value for imported machines of factory size of $244.53, which with 25 per cent duty makes an average price in the United States of $305.66; while the average cost of American machines of similar quality and capacity is at least 15 to 20 per cent greater. 12. Question. Why were cream separators divided as to classification and some machines bear 25 per cent duty while others are duty free? Answer. Undoubtedly a misunderstanding of the character of the machine and the mistaken impression that a duty on cream separators might work a hardship on the American farmer were responsible. 13. Question. Will the American farmer suffer from an equalizing duty on imported cream separators? Answer. It is our contention that he will not suffer in the least. Heretofore he has not obtained any appreciable benefit in the way of lower prices on imported machines of a similar quality, nor has he obtained any advantages of design, size, or construction. 14. Question. Will an equalizing duty on imported foreign cream separators assist the American farmer? Answer. Our contention is that it will tend to eliminate the importation of many cheap foreign machines that can not give efficient and lasting service, even in proportion to the investment as compared with American-made machines. Such cheap imported machines are usually sold to the farmer who is just starting in the dairy business and who has not yet lerned from experience that a poorly constructed cream separator is always a source of serious loss. Any foreign machine that would then be imported would carry an equalizing tariff duty and would be purchased on the basis of comparative quality and structural features in equal competition with American manufacturers. The importer of such machines then would have to establish service agencies and maintain repair stocks at convenient points for machines sold, which is most essential to the best interests of the dairy farmer. The keen competition between American manufacturers of cream separators would unquestionably keep the selling prices of such machines to the American dairy farmer at the lowest pos sible basis, as it has done during the past 15 years. 15. Question. Why does the American separator manufacturer deserve consideration? Answer. In the development of the dairy industry, the value of which is over $3,000,000,000 per annum, and the most important branch of all agriculture in the United States, the American-made cream separator has been one of the most important agencies, as is evidenced by the many letters from leading educators and dairy and agricultural associations, some of which are attached. The American cream-separator manufacturer has been an active agent with the agricultural and dairy authorities throughout the United States in educating the American farmer to the value of dairying and the development of American agriculture as a whole. During the recent agricultural depression the American dairy farmer has been in the best financial condition of any, and it is our contention that the development of dairying on the American farm will do much toward helping to solve what is commonly known as the farm problem. With the experience of many years and the vital necessity for maintaining an increasing market for its products, the American manufacturer of cream separators, if permitted to do so on an equal price basis with the foreign competitors, can and will continue to do much for the benefit of American agriculture. It is our desire to see the interests of American agriculture protected by tariff duties on imported products of the farm, as we believe that the American farmer must be encouraged and protected in the development of this great source of individual and national wealth, and we therefore feel that it is but just that the American cream-separator manufacturers, who have always aided, fostered, and encouraged agriculture in every way possible, should be placed on at least an equal basis with foreign manufacturers in the sale of all kinds of cream separators for farm and factory use. Respectfully submitted. ASSOCIATION OF AMERICAN MANUFACTURERS OF CENTRIFUGAL CREAM SEPARATORS. A copy of 50 Years of Service to the Dairy Industry has been mailed to each member of the Ways and Means Committee as an exhibit supporting the claims contained in the brief as to the importance of the American manufactured cream separator to the American dairy industry. [Quoted from 50 Years of Service to the Dairy Industry] Dr. C. W. Larson, director of the National Dairy Council, and former head of the bureau of dairying, United States Department of Agriculture: "Fifty years ago the dairy industry was undeveloped, unscientific, and relative y un mportant. To-day the dairy industry of the United States is the largest and most vital industry in the world. It has a more far-reaching effect upon the health and prosperity of this country than any other industry." Dr. S. M. Babcock, professor emeritus, college of agriculture, University of Wisconsin: "Sweet cream is the highest priced dairy product the cow owner has to sell, and when he can obtain sweet cream of any richness to suit the buyer by using a centrifugal cream separator he is equipped with a means of producing a salable product that will contribute to his prosperity." Prof. M. Mortensen, head of department of dairying, Iowa State College: "The invention of the centrifugal cream separator has evidently been the most revolutionary invention affecting the dairy industry. It has made it possible to remove the dairy manufacturing processes from the farms to well-organized factories where a uniform product of high quality is manufactured at the minimum cost, and, as a result thereof, the producers have added materially to the income from their dairies; they have been able to provide more comfortable homes and a better education for their children." Prof. De Voe Meade, dairy and animal husbandry, college of agriculture, University of Maryland: "The substitution of the cream separator for gravity and other means of separation has been a potent factor in reducing the losses which formerly occurred through the skim milk, increased materially the yield of products, such as cream and butter made from a given quantity of milk, and has undoubtedly been of some influence in improving the uniformity and quality of some of our important dairy products." C. W. Holdaway, head of department of dairy husbandry, Virginia Polytechnic Institute: "If we were asked to name the two most important achievements in the dairy industry during the past half century, we would be forced to give precedence to the cream separator and the Babcock test. Both of these have been most important factors in advancing the dairy industry from a comparatively insignificant position in the agricultural world to a very prominent place, an industry which produces almost one-quarter of the revenue derived by farmers from all agricultural products." WEST CHESTER, PA., June 26, 1925. Chicago, Ill. ALBAUGH-DOVER MANUFACTURING CO., GENTLEMEN: Replying to yours of the 22d, we shall be glad to cooperate with yourselves and others in endeavoring to have an adequate duty put on cream separators. The injustice and want of fairness to the American manufacturer and workman in the present policy of compelling them to live and do business on a protected basis for all they may buy, yet giving no protection on what they sell, is self-evident. Personally we may not have the same interest as some others in this, for we have our own factory for hand-power separator manufacture in Germany and are in position to import our machines from there. In fact, we have imported into the thousands from our factory there during the past season, and thus have caused a corresponding idleness among our own workmen here. We will be only too glad, however, to see the American manufacturer fairly protected. Outside of the difference in wages it is necessary to pay, they are in à sense at a disadvantage through the fact that they have educated the dairymen to call on them for service covering many dairy questions, and which service is exceedingly valuable to dairymen, but which they do not get in connection with foreign-made separators under usual conditions. Sincerely, THE SHARPLES SEPARATOR Co., Per P. M. SHARPLES. NATIONAL DAIRY ASSOCIATION, ASSOCIATION OF AMERICAN MANUFACTURERS OF CENTRIFUGAL CREAM SEPARATORS, Chicago, Ill. GENTLEMEN: The National Dairy Association is very much in sympathy with your movement seeking protection of your home market for the output of your. factories. I may say that we recognize very largely the splendid part that you manufacturers have played in the up-building of the American dairy industry. With the knowledge that you have of the important position in the agricultural developemnt that the dairy cow holds, we feel quite certain that your interests will continue to lie along the line of anything that tends to profitable production for the farmers of our country. In which event it would seem that, inasmuch as foreign makers of cream separators have no interest in the material welfare of our agriculture, they ought not to be seriously considered as having any rights in the market, particularly since they not only can not insure the farmer receiving as good a machine as that being made at home nor can their invasion of the market in any way affect the price of the ultimate consumer, quality of machine being the first consideration. Therefore, if there is anything that we can do to aid you in your work to secure a fair field for your manufacture, we feel that your attitude toward American agriculture entitles you to our every possible consideration. Yours very truly, W. E. SKINNER, General Manager. UNIVERSITY OF MINNESOTA, St. Paul, February 8, 1926. Mr. G. F. FoWLER, American Manufacturers Centrifugal Cream Separators, Chicago, Ill. DEAR SIR: I have been in close touch with the dairy industry for 30 years. During this time the farm cream separator first came to be a factor in modern dairying, and I can speak from observation and experience as to the exceedingly important part it has played in the development of our present enormous dairy industry. No small part of the great advance in dairying is due directly to the efforts of the manufacturers of cream separators. Undoubtedly there was the motive of creating a market, but at the same time for every dollar accruing to the manufacturers many more came to the farmer. Certain companies have even maintained experts whose entire time was devoted to introducing better methods in dairy farming and factory management, leaving the possibility of selling dairy machines open to any one who might follow. Cream separator companies have for 25 years been called upon for financial assistance by practically every dairy organization. They contribute to funds for prizes for calf clubs, for medals given in butter exhibitions, and to help meet the expenses of practically every State dairy association. They have assisted the agricultural colleges by loaning separators which are kept up to date free of expense to the schools. The manufacturers of cream separators have in the past 25 years invested a sum undoubtedly running into the millions for the betterment of the dairy industry in the United States. In recent years as a result of a lack of tariff protection American manufacturers are suffering a strong competition from foreign manufacturers of cream separators who are taking advantage of the development and pioneer work done at great expense by American manufacturers. Not only is this a great injustice to the American manufacturers but it is decidedly not to the advantage of the American farmer. What will it profit a farmer to buy a machine for a few dollars less if when he needs a few repairs no source of supply exists? One of the most important considerations in buying a cream separator, as in the case of an automobile or any other machine, is the opportunity of getting service when needed. Without minor repairs and service a cream separator will probably be out of use in five years. With suitable repairs at hand the average life of the American-built machine is from 12 to 15 years, while many are used up to 20 years. The American manufacturers have local agents rendering service to users of their machines and furnishing supplies in almost every locality in the United States. There is abundant competition among cream-separator manufacturers to properly regulate the price without the influx of cheap foreign machines which the farmer is being offered and which he is buying against his own best interests as I see the situation. Yours truly, Mr. G. F. FOWLER, C. H. ECKLES, Chief Division of Dairy Husbandry. THE PENNSYLVANIA STATE COLLEGE, Secretary of American Manufacturers of Centrifugal Cream Separators, Chicago, Ill. DEAR SIR: I have learned that your association is endeavoring to secure some protection to the American manufacturers against the importation of cheaply made European machines. I am heartily in sympathy with this endeavor. I feel that the American separator manufacturers have had a large hand in the development of the dairy industry in this country. The transition of the farm dairy industry to a factory industry with a tremendous saving of the slavish work in connection with gravity creaming has been due almost entirely to the advent of the American manufactured centrifugal separator. Furthermore, much encouragement has been given the dairy industry by the American manufacturers of centrifugal separators through the work they have fostered in building up calf clubs and dairy clubs which made more efficient farm dairying and consequently a greater measure of prosperity and interest among the dairy farmers of the nation. Dairy shows, both State and National, are usually financed to a large extent through the sale of advertising space to the manufacturers of dairy equipment. These shows have resulted in great good to the dairy industry at large. Our instructional work at this institution in dairy subjects has been greatly assisted through the helpfulness of the manufacturers of centrifugal separators in placing these machines in our laboratories free of cost for instructional purposes. I feel that the benefits rendered to the dairy industry particularly in butter and cheese making by the manufacturers of centrifugal separators are such that it would be only fair to protect the manufacturers against the importation of cheaply constructed European machines. Very truly yours, A. A. BORLAND, Professor of Dairy Husbandry. SOUTH DAKOTA STATE COLLEGE Mr. G. F. FOWLER, Centrifugal Cream Separators, Chicago, Ill. DEAR MR. FOWLER: I have your letter of January 18th, relative to the work your association is doing to secure protection for the manufacturers of American cream separators. The cream separator companies have been very liberal in their help in advancing the dairy industry in the United States. They have always been ready and glad of the opportunity to give prizes or in any other way aid the interests of the industry. Hence, I feel that the industry owes considerable of its success to the manufacturers of cream separators. Probably another matter that should be given consideration is the furnishing of repairs and keeping the separators in good mechanical condition. This is not always possible with foreign-made machinery, and in my opinion is particularly important in the case of cream separators. There can be no doubt that considerable fat is lost now, due to inefficient separators and if a type of separator should be in general use, for which parts could not be readily obtained, I think that condition would be considerably exaggerated. Very truly yours, THOMAS M. OLSON, Dairy Husbandry Department. OKLAHOMA AGRICULTURAL AND MECHANICAL COLLEGE, Mr. G. F. FOWLER, Chicago, Ill. DEAR SIR: I was much interested in your letter regarding cheap European centrifugal separators which are competing with American-made machines. I would not care to see this country flooded by nondescript, inefficient and cheaply constructed separators because it would not only work a hardship on American manufacturers, but would certainly cause a heavy loss to farmers. I have greatly appreciated the cooperation of American manufacturers of centrifugal separators in building up interest in dairying, especially in this section of the country. They have also cooperated splendidly with our agricultural colleges and have never failed to assist us in building calf clubs and protecting the dairy industry in general. I would greatly regret to see cheap European makes of separators compete with our high quality American-made machines. Very truly yours, A. D. BURKE, Associate Professor of Dairying. STATEMENT OF EUGENE H. GARNETT, REPRESENTING BABSON BROS., CHICAGO, ILL. Mr. GARNETT. Mr. Chairman and gentlemen of the committee, I represent Babson Bros., of Chicago, who are manufacturers of milking machines and importers of cream separators. They have been importing cream separators for a great many years. Their percentage of imports in value of cream separators sometimes runs as high as 80 per cent of all the cream separators imported into this country, and sometimes as low as 55 or 60 per cent. 34120-29-VOL 3, SCHED 3-48 |