PARAGRAPH 412-LITHOGRAPHIC PRINTS. thereto the weight of 10 pounds per 1,000, you may readily see that the importer is unable to compete with the American market. In fact, were you to eliminate the entire duty it would still be impossible for the European manufacturer to compete with this country, which is due to the fact that whilst there is a difference in the rate of wages, yet the facility and ingenuity of the domestic manufacturer is so far greater that the output on an American machine is just about double the quantity that the European manufacturer can furnish. By comparing the specific rate to the ad valorem rate, it will perhaps show 20 per cent to 32 per cent on this particular class of goods, whereas the real ad valorem percentage is perhaps from 45 per cent to 55 per cent, brought about by the fact that there are a great many high-priced post cards and goods under 35 square inches which are imported to this country for educational and religious purposes, which are not competitive, as they are not made in this country, and which, of course, brings down the rate of duty. We do not think that the domestic manufacturer has been benefited by this increase in duty since the Payne-Aldrich bill has been enacted, as there have been more failures in the post-card line, due to overproduction, than there was before the bill was enacted. We are perfectly satisfied with the rate of the Dingley bill, and it should prove satisfactory to both interests. Under the item of surface-coated papers we were told by one of the representatives of the domestic lithographic industry that we would find a "joker" in the bill which would be a surprise, and it really was, for in the former bills printed matter was classified under ad valorem duty of 25 per cent, whereas under the new bill that part was taken out altogether and anything that was printed on surface-coated papers came under the rate of 5 cents per pound and 30 per cent ad valorem. We would suggest that printed matter, which should include either printed on surface-coated paper or cardboard, embossed or printed, whether by process printing or otherwise, should also be put on specific rate of duty and to be classified by the weight, precisely the same as the lithographic schedule. This, to our mind, would prevent undervaluation and would be fair and equitable to all concerned. PARAGRAPH 412-LITHOGRAPHIC PRINTS. BRIEF OF MANZI, JOYANT & CO., NEW YORK, N. Y. Par. 411. The WAYS AND MEANS COMMITTEE, NEW YORK, N. Y., January 18, 1913. House of Representatives, Washington, D. C.: We respectfully call attention to a most unjust condition which has arisen under the present tariff act in the present reading of paragraph 411 of Schedule M in the following clause: "Bags, envelopes, printed matter other than lithographic, and all other articles composed wholly or in chief value of any of the foregoing papers not specially provided for in this section, and all boxes of paper or wood covered with any of the foregoing paper, five cents a pound and thirty per centum ad valorem." It is to be noted that prior to the tariff act of 1909 all printed reproductions of the fine arts, excepting lithographic, were assessed at 25 per cent ad valorem, and that in the act of 1909 no apparent change was made in that rate of duty. After the passage of said act, however, the portion of paragraph 411 quoted above was construed to cover such printed reproductions, with the result that the rate of duty has been raised from 25 to 30 per cent and 5 cents per pound added. We submit that paragraph 411 was obviously intended to apply to commercial printing, such as may enter into competition with American labor and ought not to be construed to cover reproductions of the fine arts. That the originals of such reproductions of the fine arts as are imported are almost invariably located abroad, frequently in public museums, and can not be brought to this country to be reproduced; that reproductions of the same to be artistically successful must be made in the place where is the original; and that, therefore, such reproductions seldom enter into competition with work produced in the United States. That reproductions of the fine arts being taxed rather to secure revenue than to protect American labor should all be permitted to enter the United States under a uniform rate of duty, irrespective of the kind of paper they may be printed upon. That reproductions of the fine arts are frequently of great educational and moral value, and their importation should not be made difficult by excessive import duties. That the purchasers of such engravings and other reproductions are generally unable to afford the purchase of original paintings in oil or water color, and such reproductions should not be assessed more heavily than are paintings destined for the wealthy. That to correct the manifest error which has arisen it is desirable in paragraph 416, after the words "engravings, photographs, etchings," there be inserted “and all other reproductions of the fine arts." Manzi, Joyant & Co., By Francis E. Hamilton, counsel, 32 Broadway, New York City; temporary address in Washington, Hotel New Willard. PETITION OF EMPLOYEES OF FORBES LITHOGRAPH MANUFACTURING CO., BOSTON, MASS. Hon. OSCAR W. UNDERWOOD, BOSTON, MASS., January 16, 1913. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: The undersigned, employees of the Forbes Lithograph Manufacturing Co., Boston; Mass., respectfully petition that in revising Schedule M, paragraphs 412-416, which relate to lithographic matter, no reduction be made in the prevailing rate, but, on the contrary, an increase be made on such items as is necessary to at least equal the difference between the rate of wages paid in this country and abroad. We know from those of our fellow workers who have been employed in England and Germany, as well as from our trade bulletins, that the rate of wages is very much less, practically but one-quarter of what it is in this country; also that the hours of labor in this country are eight as against nine in Germany, in all departments but one (lithograph artists). Knowing as we do that in this business the labor cost is a very large portion of the total expense, we feel that we are entitled to ask your committee to protect us against the lower labor of Germany, in order that we may continue to maintain ourselves and families according to the American standard of living. WILLIAM J. DRISCOLL PARAGRAPH 412-CIGAR LABELS AND BANDS. TELEGRAM CONCERNING LITHOGRAPHIC PRODUCTS. Hon. JULIUS Kahn, Washington, D. C.: SAN FRANCISCO, CAL., January 17, 1913. We enter strong protest against any restrictions of present tariff on lithographic products. Japanese and other foreign competitors paying wages much below American scale would ruin our industry. Concurred in by Lithographers' Board of Trade. SCHMIDT LITHOGRAPH Co. CIGAR LABELS AND BANDS. BRIEF OF LOUIS C. WAGNER & CO., NEW YORK, N. Y. THE COMMITTEE ON WAYS AND MEANS, Washington, D. C. NEW YORK, January 14, 1913. SIRS: We refer to hearings before your committee on January 17 in relation to duties on labels, flaps, and cigar bands, Schedule M, paragraph 412. To avoid taking up your valuable time presenting oral testimony, w beg to make our appeal for lower duties in writing. At the outset we wish to make it very plain that we do not ask for lower duties to enable us to compete with domestic manufacture. That is not possible even though the duties were only nominal. While the rates on cigar labels in the Payne-Aldrich bill were not increased above those of the tariff act of 1897, those on cigar bands were made much greater. The increase being 50 per cent on one class, 33 per cent on another, and 10 per cent on the third. During the hearings of the last tariff we submitted a brief, dated November 21, 1908, embodying much material, and as conditions have become worse under this tariff we beg to refer to this brief again without repeating the various items therein. In addition thereto we submit herewith only one set of labels and one design band. The set of labels marked "A," consisting of four pieces, illustrates the disadvantages we labor under on account of present high duties. They were originally produced in Germany but are now being copied and printed in New York. For comparison we beg to submit the following table of original cost in Germany, also for reprints, as well as the selling prices for domestic work, viz: These same labels are now being copied from the foreign by the American Lithographic Co., New York, and sold by them with producers' profit added at approximately $20 for a first order, and consumer claims that he has been offered reprints at less than $19. These prices are based upon same quantities in both cases. Samples of American copies we can not submit as goods are still in process of printing, the proofs have been shown which, the consumer claims, equal the foreign work in every respect. We could, from our own experience, cite many other similar instances showing practically the same result, so take it, that the set herewith will suffice. Cigar bands, copy "B," for instance, was made abroad in metal leaf, but, owing to high cost, consumer was compelled to change to a cheaper band with bronze printing, as copy "C," which is also made by the American Lithographic Co. and sold by them, 78959°-VOL 5-13-15 PARAGRAPH 412-CIGAR LABELS AND BANDS. plus their profit, at 261 cents per 1,000. The same character of work, if made in Germany, would cost thus: The American Lithograph Co. is the largest institution in the United States, has the reputation of producing the best character of work, equal to imported, and what is more, gets the highest prices for their productions. It is not only this concern alone that copies foreign designs, there are other domestic firms doing likewise, at prices far below those of the American Lithographic Co., so that, in making the foregoing comparisons, the difference between the foreign cost and domestic work is really greater and so much more against us. We beg to impress upon your committee the positive fact that for the past 10 or more years there was no possibility of any domestic cigar labels being or having been copied abroad. Admitting that the labor abroad is lower than here we affirm that through improved machinery and more capable workmen (the Americans running from 7,000 to 7,500 sheets per day, while the Germans average only 3,000 to 3,500 at the outside) the identical articles can be and are produced here at practically the same prices as in Germany. On the other hand, original foreign designs are repeatedly reproduced in the United States because of the above advantages possessed by American manufacturers. This is most unfair to the importers, we are deprived of orders for reprints rightfully belonging to us on account of the invention and expense in the production of original designs and the Government is thereby deprived of the duties. We might also mention that the American Lithographic Co. has an agent in London, a Mr. Caton. In Holland, the firm of A. J. Koning & Co., located in Dordrecht, and other European countries, selling their goods in competition with factories abroad. Could this be possible if the cost of production here were higher, to any extent, than abroad? With the permission of your committee we beg to make the following suggestions for reduced rates on labels, flaps, and cigar bands, paragraph 412. Printed in less than eight colors (bronze printing counted as two colors) but not printed wholly or partly in metal leaf, 10 cents per pound; the same, in eight or more colors, 15 cents per pound; printed in not more than five colors and metal leaf, 25 cents per pound; the same, in more than five colors and metal leaf, 30 cents per pound. The division of metal-leaf printing into two classes we suggest because the present duty on an article in one color and metal leaf is exactly as high as though printed in twelve colors and metal leaf, which is clearly an injustice. In setting forth the foregoing we mention nothing that we can not substantiate, and we have endeavored to treat this matter in all fairness. The rates we respectfully suggest are equitable; in fact, the American lithographers need no duty at all for protection, and if the above schedule is enacted into law we confidently predict a substantial increase in revenue on this particular part of paragraph 412 within the next year. Respectfully, LOUIS C. WAGNER & Co. P. S. The statistics of imports during the Payne law, of which we have just received copies, do not show the decrease in the imports of cigar labels and bands for this reason. Under the Dingley bill small labels, such as perfumery, etc., came in as lithographic prints, while now thery are listed as labels less than 10 square inches and pay the respective band rates. Wine, liquor, and in fact all other lithographed labels, also listed as lithographic prints under the Dingley bill, are now brought in under labels. These additional items to our schedule make it impossible for us to show the actual decrease in imports of cigar labels, flaps, and bands only. BRIEFS OF MÖLLER KÖKERITZ & CO., NEW YORK, N. Y. SUMMARY OF BRIEF ON CIGAR LABELS, FLAPS, AND BANDS. Our propositions are: German workmen produce one to American workmen's four. American manufacturer can produce a given quantity of labels and bands more cheaply than foreigner, despite much higher American wages; this absolutely PARAGRAPH 412-CIGAR LABELS AND BANDS. proved by actual, detailed figures taken from American and from German manufacturers' books. Further proof of this, American goods freely offered to consumer at much lower prices than foreign-proved by examples and sworn statements of the universal experience of cigar manufacturers. No denial has been made of this fact by the American manufacturers. Dingley rates almost prohibitive; total importations 1906 only $206,949.10 (American selling value $339,062); total consumption of labels and bands, based on official figures of Internal Revenue Department for 1906 as to number of cigars and cigar boxes used, $3,121,324. Importations, therefore, less than 10.87 per cent of total American consumption. Rates should be lowered on labels even if left at the Dingley rates on bands. On the following pages is a copy of an amended brief substantially as submitted by us to the Senate Finance Committee, with such of the exhibits attached as are capable of being printed. The Senate bill shows reductions from the Payne bill, but by changes of clas sification and of the method of counting bronze printing, as well as by raising the figures, shows the following increases over the existing law: These increases are in spite of undisputed evidence that German labels and bands cost more than American labels and bands and that the American manufacturers now offer their product to the trade at prices very much less than the foreign product can be sold in this country. The evidence furnished has not been particular samples only, but sworn statements of large American cigar manufacturers as to the prices which they pay for all cigar labels and bands used by them. Read on this point the affidavits of Messrs. Rodriguez and Kaufmann, at pages 25 and 27 of the brief, and also the additional affidavit of Mr. Garcia, at page 34. We can not believe that this fact was realized by the members of the committee. The domestic manufacturer supplies under the Dingley law at least 89 per cent of the total amount of cigar labels and bands used, as shown by the official figures. Percentage of imports to total consumption year ending June 30, 1906. IMPORTS. Official figures of total imports (for details see p. 19 of following brief)__ $206, 949. 10 Official figures duty paid. 64, 301. 00 271, 250.00 Importers' expenses and profit (figured at 25 per cent, which is a very large figure) 67, 812.00 American selling value-- This is less than 10.87 per cent of $3,121,324.43, the total consumption. 339,062.00 |