PARAGRAPH 423-BRUSHES. Mr. FORDNEY. If he had been here and had disclosed the same facts, he would have gotten the same advice; otherwise, he might have gotten in jail. Mr. HILL. Is it not a fact that it is a practice that has existed in New England from time immemorial of sending out that class of goods into the farmers' homes, and the surrounding towns, where the people would not come into the factory, and it enables you to enlarge your producton by just so much? Mr. CORDES. Yes. Mr. HILL. That is all there is to it? Mr. CORDES. That is all there is to it; absolutely nothing more. Mr. FORDNEY. My remark about the jail was just getting even with him; not you. Mr. CORDES. I have no fear, Mr. Congressman. The CHAIRMAN. Have you anything further to say? Mr. CORDES. I wanted to touch on that point, and I am very glad it was brought up. I do not think I have anything more; no. I thank you very much. The following documents on behalf of the Florence Manufacturing Co. were filed: Hon. OSCAR W. UNDERWOOD, FLORENCE MANUFACTURING CO., Florence, Mass., January 20, 1913. Chairman Ways and Means Committee, Washington, D. C.: The present duty on brushes is ad valorem 40 per cent. We petition that brushes be made subject to 50 per cent ad valorem duty. The principal raw material used in the manufacture of brushes is hogs' bristles, which are subject to 74 cents per pound. This is the condition in which nearly all bristles are imported. The duty on bristles is nearly 3 per cent of the value of brushes in which they are used. Bristles in crude state are imported free of duty, but we know of none of any consequence being imported in this shape, as quality and value can not be intelligently judged, and cost of preparing is so much greater in the United States than in foreign countries, owing to the great difference in the cost of labor. The census of the United States for 1909 gives the sale value of brushes manufactured in the United States for that year as 14,694,000. There are about 400 brushmanufacturing establishments with an average profit of each less than $6,000. Importations of brushes and bristles from 1909 to 1912 were as follows: There has been an increase, according to this statement, in importation of bristles, comparing 1909 with 1912, of 20 per cent. Brushes imported for the corresponding period have increased 44 per cent. You will please notice that the increase in the importation of brushes, as compared with bristles imported, was even of more injury to the brush manufacturers in the United States in the comparison of 1909 with 1911. It is fair to estimate that one-third of the better kind of brushes used in the United States are of foreign make, and of the variety of brushes imported there are not made in the United States in value more than $5,000,000. Of toilet brushes, such as hair, tooth, cloth, etc., one-half of those used in the United States are foreign made. This statement can be easily verified by examination of the brushes offered for sale by retailers of brushes in department stores, drug stores, etc., anywhere in the United States. PARAGRAPH 423-BRUSHES. Our customhouse records for seven years state importation of brushes as follows: For many years we have been manufacturing toilet brushes, and for a number of years we have tried to make some popular-priced toothbrushes, but find with our costs we are unable to compete with the European and Asiatic manufacturers, where most of this class of merchandise is made, because they are able to bring these goods into the United States for even less money than our actual bare manufacturing costs. Consequently we employ less labor than we would if brushes were protected; certainly the brush industry has never been protected under a protective tariff. A few facts bearing on the Japanese labor conditions furnish positive evidence that an equitable tariff for revenue duty should be on a higher ad valorem basis. In Japan children are more or less employed at about 1 cent per hour (we employ no children). Women in the United States earn from 10 to 20 cents per hour; in Japan women earn from 14 to 2 cents per hour. Male labor in the United States is paid from 15 to 35 cents per hour; in Japan male labor is paid 5 cents per hour. Workers in Japan work from 7 a. m. to 6 p. m. 7 days a week, generally 312 days a year-one large factory works 330 days in a year. When modern brush machinery is introduced in Japan, such as is in general use in Europe, especially in Germany and Austria, coupled with the Japanese low-priced labor, the brush industry in the United States would be practically ruined. As a further proof of labor costs in Japan, a few years ago an importer of Japanese products sent us some toothbrush handles made of bone ready to have the bristles drawn in. The price he quoted, duty paid to New York, in comparison with similar handles made in our own factory, showed an advantage in favor of the Japanese maker of 25 per cent, in spite of the very fact that most of the bone used in the manufacture of toothbrush handles is bought in the United States and shipped to Japan. While it is improbable that handles for toothbrushes will be made in Japan and sent to this country (United States), we simply give these facts to show that labor costs in the brush industry, especially tooth and toilet brushes, are lower in Japan than anywhere in the world, and in view of the rapidly increasing importation of brushes from Japan, our industry is not sufficiently protected. Although the United States Government does not permit Japanese labor to enter, it seems inconsistent that it does permit one of Japan's products in the form of brushes to come in in increasingly large quantities. In Austria and Germany many of the operations in the making of brushes are performed by women, where we are obliged to employ men, consequently creating a much wider difference in labor costs than is apparent in an actual comparison of wages paid. In Japan this condition is much worse, as women are paid a great deal less than in Germany and Austria. In Belgium and Germany women dress bristles and do classes of work which are not and can not be performed by wonen under United States conditions. The foregoing statistics from the United States customs department records show conclusively that with this continued increase in importation of brushes, surely an PARAGRAPH 423-BRUSHES. ad valorem duty of 40 per cent is not fair to the brush industry. With a duty of 50 per cent ad valorem this importation would become smaller, and we could probably in a short time give employment to more people making brushes here. The United States census for 1909 gives the following details regarding brush manufacturing on percentage basis: The items of expenses do not include interest on capital, depreciation of plants, or losses from bad accounts. The item of wages, you will observe, in Massachusetts is 22 per cent among all brush manufacturers in this Commonwealth. In our own factory, Florence Manufacturing Co., one of the largest in the United States, this one item of wages alone on toothbrushes is between 30 and 40 per cent. No very large profit is shown by these statistics to the brush industry of the United States. Furthermore, these profits would in all probability be somewhat decreased by omissions on the part of individuals who omitted to include their own salaries. Of the various items that enter into the cost of making brushes, materials are in every country where brushes are manufactured of the same value, so that labor in the United States would be the only item which could be reduced, and that should not be on any lower basis than it is now. Not only does labor cost less in foreign countries, but such items as rent, incidental expenses, and interest are less than in the United States. To further show why the importation of brushes from Japan and Europe is increasing so rapidly, we ask you to kindly examine the table of statistics attached regarding wages paid in foreign countries in the manufacture of brushes. Please note the difference in wages paid between the United States and Germany and the marked difference between the United States and Japan. This statement will prove that the brush industry is not protected, and has a hard struggle with this foreign competition. Any reduction of duty would seem unreasonable, and certainly mean fewer brushes made, and the number of people employed in the brush industry in the United States would be greatly reduced. A comparison of American and foreign wages in brush manufacturing. Austria.-Blind skilled workers earn, per day, $0.60. Seeing skilled workers earn, per day, $1.20. Brush workers are very largely blind, perhaps 50 per cent are blind, and much of the work is done in homes. Germany.-Average male employed, per week, $6.66; average female employed, per week, $3.33; skilled males earn average of $7.14 to $9.76; skilled females earn average of $4.05 to $5.47; in small villages all minors, males, $2.14 to $4.28; females, $0.95 to $1.67. Japan.-Males, per day, 28 to 38 cents, females, per day, 13 to 18 cents; children, per day, 8 to 11 cents; drawing hands, females, up to 22 cents per day. These rates are for all departments of brush making. Employees work in Japan, 7 a. m. to 6p. m., seven days a week, generally 312 days a year; one large factory 330 days a year. 78959°-VOL 5-13-25 PARAGRAPH 423-BRUSHES. Our company, the Florence Manufacturing Co., have our factory here at Florence, Mass. We have a cash capital invested of $200,000 in the manufacture of brushes. We employ over 500 persons making toilet brushes from the raw materials to the finished goods; that is, all the wood and bone work, handles, etc. Our pay roll is between $200,000 and $212,000 yearly. We are also using in very large quantities lumber, bone, aluminum, steel, leather, lacquers, varnishes, and many other supplies that are produced in the United States. There are very few large brush manufacturers in the United States; most of the brushes made come from small factories. There is no brush trust or combination in the United States. Competition between American brush manufacturers is very keen, and profits are not at all large. We export a very few of our brushes, and what we do export we sell at the same prices as we do to the United States market. We do not solicit export business; it comes to us in most cases direct, due to the fact that our brushes are trade-marked and have a national reputation created through advertising, and in this way we get inquiries in a small way from foreign countries. Respectfully submitted. Hon. Oscar W. Underwood, FLORENCE MANUFACTURING CO., Treasurer and General Manager. FLORENCE, MASS., January 20, 1913. Chairman Ways and Means Committee, Washington, D. C. We are further handicapped in the manufacture of brushes by being obliged to pay 72 cents per pound duty on bristles, which are not produced to any extent in the United States. We petition that this duty be either reduced or removed entirely. If it is required for revenue purposes, we would be willing to have it remain as it is, provided the duty on brushes is made 50 per cent ad valorem. Respectfully submitted. Hon. OSCAR W. UNDERWOOD, FLORENCE MANUFACTURING Co., Treasurer and General Manager. FLORENCE, MASS., February 14, 1913. Chairman Ways and Means Committee, Washington, D. C. DEAR Mr. UNDERWOOD: In reply to the letter that I had from you several days ago, in which you requested that I look over the testimony I gave before the Ways and Means Committee and make such changes as I found necessary, will you be kind enough to permit me to simply say this, that the questions which were asked me before the Ways and Means Committee in reference to our method of selling toothbrushes I do not feel had any bearing whatsoever in regard to the tariff, and it gave me absolutely no opportunity whatever to state the situation as it should be. Neither do I think that the remarks that were made regarding the outside labor had anything whatever to do with it, nor the question of export prices, which Mr. Harrison seemed to be interested in, and his questioning the statements we made in our advertising, and the fact that we put on the market a Keepclean toothbrush and guarantee it for 10 cents has positively nothing whatever to do with the situation. This is a brush that is made from materials that we can not put into our regular Prophylactic toothbrush. It is a good toothbrush for 10 cents and is sold by us without any profit to amount to anything, and I think all of this questioning in connection with a small industry like ours was entirely uncalled for. When you stop to think that we sell less than $300,000 worth of toothbrushes in one year, one would think that the way I was questioned before the Ways and Means Committee that we were nothing more than criminals. The brief which we filed we stand by; the statements made therein are true to the best of our knowledge and belief. We have been in business making various kinds of merchandise for 45 years, and have tried in every way possible to build up a reputation that has never been attacked. If the committee wish to help the brush industry, I am quite sure they will pay little attention to what Mr. Holton testified to, especially in view of the fact that the statements he made were not wholly within the bounds of truth. When he made the remark, as is recorded in page 4493 in the tariff hearing reports, that the domestic production of brushes for 1910 was $29,125,596, this amount is the same as the Bureau of Census files say was the production of brooms PARAGRAPH 423-BRUSHES. and brushes reported for 1909. If you will look at the copy, the Director of CensusI believe his name is Mr. Durand-gives the figures as follows: Brooms, $14,431,593; brushes $14,694,003; total for both industries, $29,125,596. The statement made that the exports of brushes into Canada from the United States amounted to $153,110 in 1908, I think you will find that the Canadian book of reports of imports and exports states that exports into Canada of brooms and brushes from the United States for the year 1908 was $157,347. Brooms and brushes are handled in the statistics of Canada as a single industry, the same as they are in the United States. This, I think, is extremely unsatisfactory and misleading, and we wish very much it could be changed by division of these industries in the records. The two industries are separate and distinctly different. The question that was raised in regard to child labor by Mr. Rainey, of Illinois, and also brushes being made outside of the factories in the United States, I am positive that upon investigation you will find that this is done to such a limited extent that it does not amount to anything, and it is done because in most cases it is impossible to get the workers in the mills. It is also a fact, as far as our industry is concerned, that this is a practice that has existed in this section from time immemorial, sending out this class of work into the farmers' homes and the surrounding towns where the people would not come to the factory, and it enables us to enlarge our production just so much, and, as I stated before the committee, it only amounts in our particular case to about 5 per cent of our full product, which I have already told you the amount of. Now then, Mr. Underwood, I realize that the hearing is closed, but inasmuch as you asked me to make some changes, I feel that it is only just that I should at least have an opportunity to make this statement to you. The question of dividing the schedule into two classes, namely, one class at 40 per cent and the other at 50 per cent is, in our opinion, wrong. Any such division would be an invitation to fraud and undervaluation, and I believe that upon investigation you will find this point would be confirmed by the customhouse appraisers. The wording of paragraph 423 at the present time is all right and does not need to be changed. As far as exportation of brushes into Canada is concerned, I shall be very glad indeed to tell you just what these amount to. We exported in 1912 Prophylactic toothbrushes to Europe and Australia to the amount of $9,048.84; to Asia in 1912 we exported $3,640.20; to Canada we exported $2,810.53. These are our actual exports, and if you wish the invoices to the countries where they were exported and the people through whom they were exported, or the customhouse bills of lading to prove these are our exports, we will be very glad to send them to you. I make this statement because of the impression that some members of the committee gave that the testimony which was given by many manufacturers was not honest. With these facts and the statement made in our brief, I am quite positive that our industry, as an industry throughout the United States, is not protected at the present time. It is an absolute impossibility for us to compete with the Japanese market, and if the Ways and Means Committee lower the tariff on the brush industry, we shall try to become importers ourselves, as it is the only course that is left open to us. I thank you personally for your courtesy, and I trust that the statement made above will be treated in the spirit in which it is given. My understanding was that you were anxious to have the manufacturers help you intelligently frame a tariff bill, and as far as we are concerned, we tried to do this, and whatever comfort Mr. Rainey, of Illinois, may have had out of leaving the impression that the Universal Brush Co.'s attitude regarding child labor reflecting the brush industry as a whole, I repeat this is absolutely untrue. With kindest regards, and thanking you again, I am, very truly, yours, FLORENCE MANUFACTURING CO., STATEMENT AND PETITION BY JOHN L. WHITING-J. J. ADAMS CO., BOSTON, MASS. PRESENT TARIFF. Schedule N-Sundries.-423. Brushes and kindred lines, duty ad valorem 40 per cent. 424. Bristles, prepared, duty specific 0.071⁄2 cent per pound. 523. Bristles, crude state, free of duty. We petition that brushes be made subject to 50 per cent ad valorem duty. The duty on bristles is about 24 per cent to 3 per cent of the value of brushes in which they are used. If imported in crude state, bristles are free of duty. None are |