FOREIGN PRODUCTION. The principal foreign countries producing knitting machines are Germany, England, Switzerland, and France, mentioned in the order of their relative importance to the United States. As stated above, the full-fashioned hosiery machine referred to as the Cotton system was invented and first produced in England, but soon copied in Germany. Before the war Germany supplied most of the full-fashioned hosiery machines imported into the United States. It is asserted by an American manufacturer who has recently been in Chemnitz that the Chemnitz manufacturers of full-fashioned hosiery machines in the last few years, and particularly since the armistice, have taken up the production of circular knitting machines on a large scale in order to meet the demand in Central Europe. Circular knitting machines have a greater productive capacity than the flat machines, and for this reason are now actively sought to supply the deficiency in knit goods. Before the war Germany exported Cotton system knitting machines all over the world, and American manufacturers express apprehension that the Germans will again come into the market with such machines as well as with the circular machines to the production of which they have recently turned. In addition to copying the Cotton system machine, the Germans took up the production on a large scale of the radial-needle machine, a French invention, and the Lamb system machine, an American invention. All types of warp machines were invented in England, but before the war Germany was supplying 90 per cent of the machines used in the world for the manufacture of fabric gloves. The two types of knitting-machine needles, the latch needle and the spring needle, are both British inventions, but the former type, which is more difficult to make than the latter, was made almost exclusively in Germany before the war. The following summary taken from an article in the Textile Recorder, May 15, 1919, classifies knitting machinery and indicates for each class the countries of production: A. Spring-needle machines (1) Straight-bar machines (Cotton's system), produce fashioned hosiery, underwear, outerwear; built in Great Britain, France, and Germany. (2) Radial-needle circular machines, produce fine-gauge fabrics for underwear and outerwear; built in Germany (over 90 per cent) and France. (3) Loop-wheel circular frames, produce underwear and fleecy fabrics; built in America and Great Britain. (4) Fast-warp knitting machines, Milanese looms, etc., produce warp-knitted fabrics for gloves, underwear, and outerwear; built in Great Britain and Germany. B. Latch-needle machines- (1) Flat and purl machines, produce neckwear, gloves, outerwear, and to a smaller extent hosiery and underwear; built in Germany and Switzerland. (2) Plain auto-knitting machines, produce seamless hose, half hose, and socks; built in America (90 per cent) and Great Britain. (3) Rib auto-knitting machines, produce ribbed seamless hose, half hose, and socks; built in Great Britain and America. (4) Plain-web machines, produce plain fabrics for underwear, etc.; built in America and Great Britain. (5) Ribbed-underwear machines, produce ribbed underwear, jerseys, etc.; built in America (80 per cent) and Great Britain. (6) Rib-top machines, produce rib tops for half hose; built in America and Great Britain. (7) Warp knitting machines, produce adults and children's outerwear; built in Germany. C. Seaming, linking, and making-up machines (1) Linking machines and point seaming machines, used for closing toes of hosiery, selvedge seaming, attaching rib, etc.; built in Great Britain, America, and Germany. (2) Seaming machines, making-up machines, etc.; used for seaming "cut" fabrics, making-up, button-holing, and sewing, etc.; built in America and Great Britain. (3) Cutting machines, used for cutting; built in America and Great Britain. D. Finishing machines— (1) Scouring, milling, dyeing, etc., used for washing, unshrinking, dyeing, etc.; built in Great Britain and Germany. (2) Brushing, pressing, calendering, etc., used for fleecing, finishing, and trimming; built in Great Britain, Germany, and America. E. Accessories and parts (1) Latch needles, spring needles; made in Germany, Great Britain, and America. (2) Sinkers, sliders, jacks; made in Germany and Great Britain. (3) Stop-motions; made in America (80 per cent) and Great Britain. F. Winding machines (1) Bottle bobbin machines; built in America, Great Britain, and Germany. (2) Cone machines; built in America and Great Britain. G. Domestic knitting machines; made in Germany. IMPORTS. Commerce and Navigation Reports do not show imports of knitting machines separately, but group them with imports of certain other machines under "all other textile machinery." Only fragmentary import statistics are available. In Daily Consular and Trade Reports, June, 1914, appear the following statistics of exports of knitting machines from the district of Nottingham, England, to the United States: Elastic-hosiery machines, hand frames, and machines for surgical goods to the value of $2,271 in 1912, and $757 in 1913; other hosiery machines to the value of $2,603 in 1912, and $4,585 in 1913; knitting machines to the value of $2,210 in 1912, and $233 in 1913; and warp knitting machines (of the Milanese and Tricot type) to the value of $50,239 in 1912, and $47,606 in 1913; a total of $57,323 in 1912, and $53,181 in 1913. In the Daily Consular and Trade Reports of August 29, 1914, exports of knitting machines and knittingmachine needles from the district of Chemnitz, Germany, to the United States are reported as follows: Knitting machines to the value of $501,322 in 1912, and $606,994 in 1913; knitting-machine needles to the value of $123,401 in 1912, and $137,688 in 1913. One American importer reports imports of knitting machinery from Germany to the value of $242,256 in 1913, and $119,753 in 1914, and another reports imports from Germany and Switzerland valued at $100,000 in 1913, $25,000 in 1914, and $60,000 in 1919. Some fullfashioned hosiery machines were imported from Germany in 1920. According to importers, the machines from Germany included fullfashioned Cotton patent leggers and footers; flat knitting machines of the purl-stitch type; flat knitting machines of the Lamb style (hand operated); flat knitting machines, power operated, semi and full automatic; warp knitting machines, both spring beard needle type and latch needle type; loopers and seamers for hosiery, underwear, and sweaters; flat knitting machine parts; latch needles; and winders, spoolers, and warpers. Broadly speaking, circular knitting machines of all kinds are produced in the United States and few are imported. PRICES. Statistics furnished by American manufacturers to the Tariff Commission indicate that from 1913 to 1919 prices increased almost 100 per cent. Foreign prices are not available for comparison. Manufacturers in conference with the Tariff Commission in January, 1920, cited instances of knitting machines bought in Germany in 1919 for $1,500 just like the American made machine selling at the time for $6,000. This price was made possible, however, only by the depreciation in the German mark, and doubtless does not represent an established price. TARIFF HISTORY. Since 1883 knitting machines have been dutiable as manufactures of metals not specially provided for. By the acts of 1883 and 1890 they were dutiable at 45 per cent ad valorem, by the act of 1894 at 35 per cent, and by the acts of 1897 and 1909 again at 45 per cent. Under the act of 1913 the duty was reduced to 20 per cent. Without adequate import statistics it is impossible to discuss the effect of the various rates of duty on imports and on the American knittingmachine industry. It is asserted, however, by manufacturers that the reduction in duty in 1913 resulted in larger imports of fullfashioned knitting machines from Germany and compelled the only important producer in this country to reduce his output. COMPETITIVE CONDITIONS. In the manufacture of knitting machines American producers have some advantage over their European competitors in the lower price of iron, steel, and brass, the metals from which the machines are made. But the value of this metal in a crude of semicrude state rarely, if ever, represents more than 10 per cent of the value of the finished machine, and doubtless often represents only 5 per cent or less. However, cost statements of manufacturers may show raw material costs amounting to 20 per cent or 30 per cent more of the price of the completed machine. This is true because they do not buy the major part of the metal used in a crude or semicrude state, but in the form of castings, forgings, screw-machine products, and other component parts on which considerable labor has been expended. Any considerable difference in labor costs in favor of European producers would far outweigh the advantages derived by American producers from lower cost of metal. Wages are lower in Germany and in other European countries than in the United States, but in common with other types of machinery manufactured, the labor costs in making knitting machines are not in proportion to the wage rates, owing to differences in the efficiency of labor and equipment. American machine manufacturers assert that European producers have some advantage in lower cost of supplies and equipment and in capital investment. Although European producers did have some advantage under prewar conditions, it is doubtful if that advantage is maintained under present conditions. TARIFF CONSIDERATIONS. The Knitting Machine Manufacturers' Association presents the following suggestion: We would suggest a tariff which will provide both a specific and an ad valorem duty; the duty which figures the highest to be charged. Our reason for this request is to prevent foreign manufacturers building the intricate parts of the machines abroad, entering them into this country under a specific duty and building the frames here, also to prevent the possibility of a shipment of one complete machine with the head or more intricate part of the second machine included in the shipment, in which event if the duty were a specific one only, two machines could be entered for but little extra duty than one. An ad valorem duty only would make it possible for foreign manufacturers to ship the machinery to selling agents in this country at a much reduced value, the selling agents, of course, in turn, to sell them at their proper value in this country. We believe, therefore, an ad valorem duty plus a specific duty, the specific duty to be based, in the case of flat machines on each inch of needle bar and in the case of circular machines on the diameter of the cylinder, would secure to the American manufacturer the fullest protection possible. 1 Figures for 1913 and 1919 submitted to the Tariff Commission by knitting-machine manufacturers, and represent doubtless 80 per cent or more of total production. Figures for 1917 and 1918 are from the records of the Council of National Defense, and do not include loopers. The figure for 1918 is for eight months only. Domestic exports of knitting machines.1 1 Statistics compiled from returns to questionnaires sent to knitting-machine manufacturers. The actual exports were larger than the table indicates, not all manufacturers being able to give the value of their exports. COURT AND TREASURY DECISIONS. Knitting machines operated by hand power were held not to be machine tools within paragraph 197 of the act of 1909 and dutiable as manufactures of metal under paragraph 199 of the act of 1909. (Surgical Supply Importing Co. v. United States, 3 Ct. Cust. Appls. 429.) Act of Par. 1883.... 216 Rates of duty-Knitting machines. Tariff classification or description. Manufactures, articles or wares, not specially enumerated or provided for in this act, composed wholly or in part of iron, steel, copper, lead, nickel, pewter, tin, zinc, gold, silver, platinum, or any other metal, and whether partly or wholly manufactured. 1890.... 215 Manufactures, articles, or wares, not specially enumerated or provided for in this act, composed wholly or in part of iron, steel, lead, copper, nickel, pewter, zinc, gold, silver, platinum, aluminum, or any other metal, and whether partly or wholly manufactured. Manufactured articles or wares, not specially provided for in this act, composed wholly or in part of any metal, and whether partly or wholly manufactured. 1894.... 177 1897.... 193 1909.... 199 1913.... 167 Articles or wares not specially provided for in this act, composed Articles or wares not specially provided for in this section, com- Articles or wares not specially provided for in this section: If composed wholly or in part of platinum, gold, or silver, and If composed wholly or in chief value of iron, steel, lead, cop- SEWING MACHINES. SUMMARY. Rates of duty, specific and ad valorem. 45 per centum ad valorem. Do. 35 per centum ad valorem. 45 per centum ad valorem. Do. 50 per centum ad valorem. 20 per centum ad va lorem. The sewing machine has been developed by American manufac turers after years of experimentation and considerable expense in perfecting a standard-type machine. After the sewing machine had been developed to a very high degree in respect to performance the protected patented rights expired. With these rights no longer protected, Germany began the manufacture of sewing machines, copying the American product. This situation immediately placed German and other foreign manufacturers upon an even footing with American manufacturers in respect to the quality and standardization of the product. The foreign manufacturers adopted American machinery and American methods of manufacture and employed American superintendents, all of which made it possible for them to produce a sewing machine equal in every respect to the American standard machine. American capital is also engaged in operating sewing machine factories in some foreign countries. There is a considerable amount of capital invested in this industry. In 1914 the census reported $34,466,624 invested. This has since been increased. The sewing machine industry in 1909 ranked ninetythird in importance in value of product in the United States. The production for 1919 was $54,215,410.7 The importation of sewing machines increased from $53,000 in 1911 to $109,000 in 1913. After the duty was removed the imports for 1914 amounted to $586,945, which was over five times that of the previous year. Imports decreased during the war. The imports for 1918 were $98,245, but reached $225,541 in 1919 and $346,519 in 1920. |