PARAGRAPH 413. PARAGRAPH 413-WRITING PAPER. Writing, letter, note, handmade paper and paper commercially known as handmade paper and machine handmade paper, japan paper and imitation japan paper by whatever name known, and ledger, bond, record, tablet, typewriter, manifold, and onionskin and imitation onionskin papers calendered or uncalendered, weighing six and one-fourth pounds or over per ream, three cents per pound and fifteen per centum ad valorem; but if any such paper is ruled, bordered, embossed, printed, lined, or decorated in any manner, other than by lithographic process, it shall pay ten per centum ad valorem in addition to the foregoing rates: Provided, That in computing the duty on such paper every one hundred and eighty thousand square inches shall be taken to be a ream. WRITING PAPER. BRIEF OF SUNDRY PAPER MANUFACTURERS. BRIEF. IN THE MATTER OF TARIFF ON PAPER, MORE PARTICULARLY ON GRADES KNOWN AS WRITING AND COVER PAPER, REFERRED TO PRINCIPALLY IN SCHEDULE M, SECTION 413, and AddITIONALLY IN SECTIONS 411, 414, 415, IN THE TARIFF ACT OF AUGUST 5, 1909. Hon. OSCAR W. UNDERWOOD, Chairman Committee on Ways and Means, House of Representatives, Washington, D. C.: This brief represents the views of the following companies making these grades of papers: American Writing Paper Co., Holyoke, Mass.; Aetna Paper Co., Dayton, Ohio; Beckett Paper Co., Hamilton, Ohio; Berkshire Hills Paper Co., Adams, Mass.; L. L. Brown Paper Co., Adams, Mass.; Byron Weston Co., Dalton, Mass.; Carew Mfg. Co., South Hadley Falls, Mass.; Chapin & Gould Paper Co., Springfield, Mass.; Chemical Paper Co., Holyoke, Mass.; Crane Bros., Westfield, Mass.; Z. & W. M. Crane, Dalton, Mass.; Crane & Co., Dalton, Mass.; Crocker-McElwain Co., Holyoke, Mass.; C. H. Dexter & Sons, Windsor Locks, Conn.; Eastern Mfg. Co., Bangor, Me.; Esleeck Mfg. Co., Turners Falls, Mass.; Fox River Paper Co., Appleton, Wis.; Gilbert Paper Co., Menasha, Wis.; Hammermill Paper Co., Erie, Pa.; Hampshire Paper Co., South Hadley Falls, Mass.; Hawthorne Paper Co., Kalamazoo, Mich.; Kalamazoo Paper Co., Kalamazoo, Mich.; Keith Paper Co., Turners Falls, Mass.; Lee Paper Co., Vicksburg, Mich.; Millers Falls Paper Co., Millers Falls, Mass.; Mountain Mill Paper Co., Lee, Mass.; Mount Holly Paper Co., Mount Holly Springs, Pa.; Neenah Paper Co., Neenah, Wis.; W. B. Oglesby Paper Co., Middletown, Ohio; Old_Berkshire Mills Co., Dalton, Mass.; Parsons Paper Co., Holyoke, Mass.; Plover Paper Co., Menasha, Wis.; Poland Paper Co., Mechanic Falls, Me.; B. D. Rising Paper Co., Housatonic, Mass.; Riverside Fibre & Paper Co., Appleton, Wis.; Southworth Paper Co., Mittineague, Mass.; Strathmore Paper Co., Mittineague, Mass.; Taylor-Burt Co., Holyoke, Mass.; Valley Paper Co., Holyoke, Mass.; Worthy Paper Co., Mittineague, Mass.; Howard Paper Co., Urbana, Ohio; Russell Falls Paper Co., Russell, Mass.; Knowlton Bros., Watertown, N. Y.; Niagara Paper Mills, Lockport, N. Y.; Peninsula Paper Co., Ypsilanti, Mich.; District of Columbia Paper Co., Washington, D. C.; Advertisers Paper Mills, Holyoke, Mass.; Bardeen Paper Co., Ostego, Mich.; A. H. Hubbard Co., Norwich, Conn.; Chas. S. Boyd Paper Co., Appleton, Wis. These 50 companies represent some 88 mills, employing about 16,000 operatives; wages paid per year, about $10,000,000; capital invested, about $54,000,000. I. Classification. We beg to call your attention to our request that the present classification of papers as laid down in the tariff act of August 5, 1909, be adopted as the basis of any new act. This classification was arrived at after much study, argument, and arrangement, and has been in force for such a period of time as to not only permit all interested to become familiar with it and adJust themselves to it, but more particularly to permit the Government experts and officials to get foreign papers of entry properly classified under it, which involved long hearings before referees, taking much time and attention of the manufacturers and importers. We therefore submit that nothing is to be gained by a reclassification, but much difficulty, argument, and valuable time is to be saved by keeping the present classification. PARAGRAPH 413-WRITING PAPER. II. We beg further to direct your attention to the methods of assessing tariff, viz, specific and ad valorem. In our judgment the more important tariff for our grades of paper is the specific assessment, since such a method obviates the dangers of undervaluation (which the ad valorem, if assessed alone, fosters) and gives the American manufacturer some definite idea of the conditions he has to meet in his competition without regard to constantly changing invoice charges and valuations. The ad valorem assessment has its definite value in changing grades of the same qualities of paper, but can never meet the situation as well as the specific either from the revenue or protective point of view. But practice has established the value of both methods, and, while strongly advocating the higher values of the specific, we respectfully suggest that the established practice on these grades of paper be maintained. III. Labor conditions.-The conditions under which labor is performed should have weight when the matter of tariff on writing paper is under consideration. These conditions are better than those in almost any other industry. The departments in our mills which work 24 hours per day are run on three shifts of 8 hours each, and in those departments which work only days the 9-hour day prevails. No children are employed, and women work 50 to 54 hours per week. No women or minors are employed at night. The work done by women is light and not injurious to health. The mills are well lighted and ventilated and no injurious fumes or gases are employed in the process. The following comparisons indicate the conditions in America as contrasted with those in Germany, which country will be the chief gainer by lowering the tariff on these grades of paper. The statistics as to German wages are obtained from a report of the German Imperial Government supplying labor item of German mills for the year 1910, and as incorporated in a report by the United States consul general, Robert P. Skinner. In addition to which skilled and unskilled labor in America works shorter hours than similar labor in Germany. This is a very strong proof that labor has obtained a large share of any benefit from the tariff act, and if the tariff is reduced on these papers, labor must eventually give up a portion of its gain. Any substantial reduction in the duties on writing paper, allowing the importation of foreign-made paper will work a very serious hardship to both the owners and the employees of the writing-paper mills, the more so as these people are not the floating population that can readily go into other industries or return to Europe. They are American-born people living in their own homes and absolutely dependent on the mills for the comfortable conditions they now enjoy. IV. Raw materials. We beg further to call your attention to the fact that the raw material from which these papers are made, viz, rags and sulphite pulp, must be imported in a very large per cent from the foreign countries which are our largest competitors on these grades of papers. On these importations, amounting in 1912 to over 100,000 tons of rags alone, must be paid at least one profit to the importer that the foreigner does not pay, as well as freight to this market. It is an obvious fact, therefore, that in importing these raw materials and paying much higher wages in the manufacture from them of these grades of paper the American manufacturer is at a decided disadvantage. V. Present competition.-Under the present tariff act of August 5, 1909, the competition from foreign countries on these grades of paper is already severe : and with the necessity now existing and which will continue to exist of large importations of raw materials, and with the present rate of wages and hours, now very materially better in America in our paper mills than in those of our foreign competitors, it is very plain that with any reduction in the tariff on these grades of papers there can be but three conclusions: First, the production of these grades of papers must decrease, thus throwing a certain amount of American labor out of work; secondly, the per cent of profit to capital invested, PARAGRAPH 413-ONIONSKIN PAPER. now not excessive, must be materially reduced; or thirdly, the wages of labor in these mills must be materially reduced. It appears to us, therefore, that these reasons, simply stated but of truth and weight, offer very vital reasons why this Schedule M, especially as it applies to sections 411, 413, 414, and 415, should remain unchanged. Very respectfully submitted. BRIEF OF DENNISON & SONS, NEW YORK, N. Y. NEW YORK, November 18, 1912. The CHAIRMAN OF THE WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. DEAR SIR: We understand that your committee or others under its supervision are already formulating changes in the tariff on imported goods, and we take this early opportunity to call your attention to a defect in our present customs laws which needs correction. Perhaps a statement of a specific case will make the defect plainer. We will therefore state that about six months ago we imported from England several cases of writing paper, and as the paper came from a well-known manufacturer in England we accepted the goods and paid for them without giving them a thorough examination. When it became necessary to use the goods we found the paper was imperfect in this respect, that the sizing was very poor, so that the ink spread on the surface of the paper when writing on it. We complained to the manufacturer and he acknowledged that the paper was defective and expressed a willingness to make it right if we would send the paper back to him, by resizing it. We applied to the customs authorities for a permit to send the paper back to England, and, after the defect was corrected, to bring it in a second time free of duty. We had already paid the duty in the first instance and we thought it unfair to be compelled to pay duty the second time on the same lot of paper. The customs division of the Treasury Department informed us that we would not be permitted to send the paper back to England for the purpose of having the defects corrected and then bring it back here without paying duty a second time. We still have the paper on hand and having paid the English manufacturer, and paid the duty to the United States, we have goods which are utterly worthless in their imperfect condition; the English manufacturer is willing to correct the defect, but our Government insists on our paying double duty before the English manufacturer can be permitted to correct the defect. This simple explanation should be sufficient to show that merchants importing goods which prove to be defective should be permitted to return them to the manufacturer abroad without paying duty twice on the same goods, and we trust your committee, in framing the changes in the tariff law, may provide for such contingencies. Respectfully submitted. C. M. D. DENNISON & SONS, By C. M. DENNISON, President. P. ONIONSKIN PAPER. BRIEF OF ESLEECK MANUFACTURING CO., TURNERS FALLS, MASS. MANIFOLD AND ONIONSKIN PAPERS. [Supplementary to the brief submitted on writing papers, sec. 413.] Hon. OSCAR W. UNDERWOOD, Chairman Committee on Ways and Means, House of Representatives, Washington, D. C.: Our business was established 11 years ago. For 5 years we ran our business at a serious loss, as we were obliged to establish a market for this class of papers. To our knowledge no colored manifold papers were imported until after we began to manufacture them. Since that time the Germans have established themselves in this country through agencies and are aggressively pushing the PARAGRAPH 415-WALL PAPER. sale of this class of paper in both white and colors, and at prices far below the cost of American papers. Should this class of papers, viz, manifold and onionskin, that take the place of copying papers to a very great extent, carry the same duty as copying paper, viz, 5 cents per pound and 15 per cent ad valorem, it would work no hardship on the importer, as he could then undersell the American manufacturer. Again, the tariff as it now is, viz, 3 cents per pound and 15 per cent aa valorem, is not felt by the consumer; the average weight of manifold and onion. skin papers is about 2 pounds to 500 sheets of letter size, 8 by 11 inches. An individual or concern sending out 500 letters a day and making a carbon copy of each letter would save, provided he or they received the full benefit of the entire removal of the tariff, about 6 cents and a fraction per day. The same reduction would hopelessly put us and every manufacturer of fine writing papers out of business. We submit the above to your honorable committee, as we believe your aim and purpose is to frame a tariff that will be equitable in its operation, inflicting no hardship on the consumer, and at the same time preserve the industries of our common country. Respectfully submitted. TURNERS FALLS, MASS. PARAGRAPH 414. ESLEECK MANUFACTURING CO. Paper envelopes not specially provided for in this section, folded or flat, if plain, twenty per centum ad valorem; if bordered, embossed, printed, tinted, decorated, or lined, thirty-five per centum ad valorem. PARAGRAPH 415. Jacquard designs on ruled paper, or cut on Jacquard cards, and parts of such designs, cardboard, and bristol board, thirty-five per centum ad valorem; press boards or press paper, valued at ten cents per pound or over, thirty-five per centum ad valorem; paper hangings with paper back or composed wholly or in chief value of paper, twenty-five per centum ad valorem; wrapping paper not specially provided for in this section, thirty-five per centum ad valorem; paper not specially provided for in this section, thirty per centum ad valorem: Provided, That paper embossed, or cut, die-cut, or stamped into designs or shapes, such as initials, monograms, lace, borders, bands, strips, or other forms, or cut or shaped for boxes, plain or printed but not lithographed, and not specially provided for in this section, shall be dutiable at thirty-five per centum ad valorem; articles composed wholly or in chief value of paper printed by the photogelatin process and not specially provided for in this Act, three cents per pound and twenty-five per centum ad valorem. WALL PAPER. TESTIMONY OF HOWARD M. HESTON. The witness was duly sworn by the chairman. Mr. HESTON. Mr. Chairman, I should like to ask for a division of the time allotted to the wall-paper industry between myself and Mr. George Keim, the vice president of the Gledhill Wall Paper Co., of New York. The CHAIRMAN. We can not divide your 10 minutes. If we did that, we would get into interminable trouble. We are willing to allow one witness to surrender his time to another witness, but we can not allow you to divide your time. If the other gentleman to whom you refer desires to appear before the committee, he will have to take his place at the end of the list. PARAGRAPH 415-WALL PAPER. Mr. HESTON. Mr. Chairman and members of the Ways and Means Committee, I desire to address you on paragraph 415 of Schedule M, in the matter of wall paper. In 1908, by a like committee from your honorable body, wall-paper manufacturers of the United States were accorded a hearing, and the plaint at that time was for an increased duty, necessary, seemingly, to insure our vitality. Since then, or within four years, no new ventures into the manufacturing realm have occurred. On the other hand, four concerns have ceased to exist. One of these probably represented greater wealth and assets than any other in the industry and who no doubt determined to cease a losing business. The others went through bankruptcy. Nor are the conditions any better to-day than in 1908, therefore the wall-paper manufacturers of the United States, desirous of being fair, ask favorable consideration for their appeal, suggesting a reasonable tariff protection to the industry. The judgment of your committee in your recommendations we are sure is to be prompted by the highest motives and a desire to maintain an honest industry rather than to offer oppression to any, so that in presenting our full argument as set forth in the brief that we have filed I shall attempt simply to call attention to a few commanding features. First. The fact that we pay wages averaging three times as large as those paid by European manufacturers, whose skilled labor costs them only $7.80 to $9.20 per week, while we pay an average of $24 to $27 per week for the same class of help. It is to be assumed that their unskilled labor is paid in the same proportion. Then, too, we are compelled to guarantee employment for the entire year, while the European manufacturers employ labor only as they actually require it. Second. The entire exports from foreign manufacturers to this country for the year ending June 30, 1912, were $825,162, while our exports to European countries were only $51,328, thus demonstrating that we can not compete with them in their own markets, notwith standing the strenuous efforts we have made to do so. Our imports from European countries have increased from $244,000, in 1902, to $825,000, in 1912, representing about 330 per cent increase in the decade. While the proportion of the imports which amounted to $825,000 in 1912 may not seem large at first glance as compared to the total business of our manufacturers, $13,000,000, it must be remembered that at least 75 per cent of our product is sold at actual or less than cost, and that the competition from the European manufacturers is, therefore, directed against the remaining $3,250,000 upon which we look for a reasonable margin of profit, and that, consequently, our importation of $825,000 against a production of $3,250,000 materially affects the result, and as the importations continue to increase each year the situation bids fair to become worse instead of better, unless we obtain some relief. Third. On raw materials entering into the manufacture of wall paper, the duty is in some cases 50 per cent, while the wall paper, of which said raw materials form the main cost, is brought in at a duty of 25 per cent. When I speak of raw materials I refer to materials which are probably finished products in themselves, but which are 78959°-VOL 5-13-17 |