PARAGRAPH 475-PIPES AND SMOKERS' ARTICLES. pipes, under Schedule N, as produced in New York State as compared with the cost of producing the same article in Glasgow, Scotland. In the hearing granted us by previous committees the question of the difference in cost of labor in Scotland and the United States has never been fully recognized, and we have been protected with a specific duty of 15 cents per gross on an article costing 40 cents or less manufactured abroad. Our statement shows the cost of producing common clay pipes in both New York and Scotland, the different operations gone through to make a pipe, as well as the difference in the various costs both here and abroad. We have based our figures on the lowest cost of labor available in this country and have figured the highest respective cost of labor available in Scotland. The total of both results show a difference of about 20 cents a gross, not including overhead or fixed charges. Therefore Scotch manufacturers at the present rate of duty have an advantage of about 5 cents a gross, less freight charges, etc., of about 14 cents, not including fixed costs. COST OF MAKING FANCY CLAY PIPES WITH MOUNTINGS. We also inclose two statements showing the relative cost of producing a fancy clay pipe in New York and in Scotland and have selected for this purpose a style, namely the calabash shape of clay, which is at present in greatest demand. The American manufacturer is protected on this article by a specific duty of 50 cents per gross and an additional ad valorem duty of 25 per cent. In drawing up this statement we have also shown the entire process of manufacture, the result of which shows a difference of $1.65 per gross, less duty, without including fixed charges. In submitting these statements we wish to call your attention that statements submitted to previous committees have been based on the relative cost of molding and trimming only and did not include the other operations, which are just as important. The greatest factor in our industry is the question of labor, and in this respect we compare with Scotland as follows: A good pipe molder in New York earns on the average $2 per day, whereas in Scotland the time work is based on the rate of 24 to 25 shillings per week, or about $1.09 a day. A trimmer (trimming, an operation to remove molding faults) in Scotland earns about 6 to 8 shillings ($1.44 to $1.84) a week, whereas in New York they earn from $6 to $8. In Scotland boys and girls can also be employed at the rate of 6 to 8 shillings per week, whereas in New York boys can not be had at all, for the reason that wages are not attractive, and girls earn not less than $5 a week for work performed in Scotland for 6 to 8 shillings. We wish to add that the Scotch figures are the only ones which we have been able to obtain, and, while we do not know the conditions in France and Holland, we understand that labor there is still more cheap. This also applies to Germany, where pipe makers do not work regularly at the trade. In Germany pipe makers work in the fields planting or gathering the harvest until the weather compels them to keep indoors. At this season the farm hands or peasants apply at the pipe manufacturing plants for molds of pipes needed. They then build their own kilns and make the sagars in which to place the pipes preparatory to burning them, then mold and trim enough to fill the kiln and after firing the pipes, deliver them at the factory and collect the amount due them for their labor. This condition places in the hands of German pipe manufacturers very cheap labor, for the reason that the workman is willing to earn a small amount rather than sit idle during the time when he can not work at his occupation on the farms. As an example we quote the article known as the red clay pipe assortment composed of about eight different styles on which the cost of production in this country would be about from 95 cents to $1 and which article is landed in this country, duty paid (15 cents per gross, specific), 674 cents a gross f. o. b. dock. We especially mention the German condition for the reason that we have not been able to compete with their goods in the market. Our entire output is sold mainly to small jobbers and retailers at the same price asked for by the large jobbing houses, who have imported the article from Germany. In summing up we believe that a specific import duty of 25 cents per gross on clay pipes costing 40 cents or less abroad and an import duty of 50 cents per gross specific and 40 per cent ad valorem per gross on clay tobacco pipes or bowls costing more than PARAGRAPH 475-PIPES AND SMOKERS' ARTICLES. 40 cents per gross would enable us to compete in the open market without increasing the price to the jobber, retailer, or consumer. Submitting our brief to your honorable body, we remain, AMERICAN CLAY PIPE WORKS, Inc., Burning kiln, 5 hours work, at 20 cents (140-16 dozen gross to kiln). Emptying kiln, 24 hours work, at 20 cents (140-16 dozen gross to kiln).. Cost per gross 133 pounds to a 16 dozen gross.. Soaking and milling per ton (2,000 pounds), one day's work at $2 per day, 13 pounds to gross; cost per gross.. Molding, piece work per 16 dozen gross. Trimming, piece work per 16 dozen gross.. Potting and filling kiln, 20 hours work, at 20 cents (140-16 dozen gross to kiln).. $0.0859 . 0133 .75 .18 $4.00 1.00 .50 Total (27 hours work).... 5.50 Cost per gross 140-16 dozen gross to kiln. Firing kiln, fuel 1,200 pounds, at $7.25 per ton to burn 140-16 dozen gross, per gross.... .0393 .0335 Total cost of 16 dozen (rough).. Total cost of 12 dozen (rough)............. Polishing, 15 cents per gross, piece work. 1. 1020 .8265 . 15 .30 Ferrules, at 50 cents per gross, (45 per cent import duty included). Cost does not include heat, drying, nor cost of polishing paper or varnish. Cost of making fancy clay pipes in Scotland. Figuring 13 pounds to 16 dozen, cost per gross. $1.09 per day, cost per gross. Molding, 18. 64d., piecework, per 16 dozen gross. Trimming, 5d., piecework, per 16 dozen gross.. Potting and filling kiln, 2 days' work.. 20 hours, 5 hours, Emptying kiln, 24 hours' work. 24 hours, Total.... (27 hours, 258. per week, or $1.09 per day), cost per 16 dozen gross. .0214 Firing fuel, 1,200 pounds coal at 16d. per ton, or $3.84 per 140-16 dozen gross. .0164 Cost of 16 dozen.... .5455 Ferrules, 50 cents per gross American cost (less 45 per cent duty) .345 1.375 .0254 0084 2.4429 Cost does not include heat, drying, polishing paper, or varnish. Cost account showing the cost of production of a common clay pipe in New York. Figured at 11 pounds per gross.. .0745 Soaking and milling per ton, 2,000 pounds, 1 day's work, at $2. .0115 Molding, per gross, piecework, 29 to 30 cents, average.. .295 Trimming, per gross, piecework, 7 to 9 cents, average.. .08 Potting and filling kiln, 2 days' work, at $2, figured at 160 gross to kiln. $4.00 1.00 Emptying kiln, 24 hours' work, at 20 cents. .50 Packing pipes, average packing 100 1-gross boxes or 50 3-gross boxes per day; average, 125 gross, equaling 934 pipe makers' gross, at $2. Firing kiln, cost of coal, at $7.25 per ton, figuring 1,200 pounds, burn 160 gross.. Cost account showing the cost of production of a common clay pipe in Scotland. Figuring 11 pounds to a 16-dozen gross.. Soaking and milling, per ton (2,000 pounds), 1 day, at 25s. per week, $1.09 per day. 21 6 ($5.16) $0.0264 Firing kiln, coal at 16s. per ton, or $3.84, figuring 1,200 pounds to fire 160 gross.... Molding, per gross. 8d., lf., piecework, 16-dozen gross .0063 .1625 .045 .0109 .0144 Packing pipes, average day's work, 100 1-gross boxes or 50 3-gross boxes or 150 gross; average of 125 12-dozen gross per day or 93 16-dozen gross per day; a cost of Ss. per week, or $1.92, in 10 hours work.... .0037 Cost of 16 dozen.. Cost of 12 dozen.. .2692 2019 PARAGRAPH 475-PIPES AND SMOKERS' ARTICLES. BRIEF OF THE DIAMOND MILLS PAPER CO., NEW YORK, N. Y., ET AL. To the Committee on Ways and Means, House of Representatives, Washington, D. C.: The undersigned are manufacturers of tissue papers and certain special high-grade and light-weight papers. They desire to make the following suggestions in regard to said paragraph 475: SCHEDULE N, PARAGRAPH 474. "475. Pipes and smokers' articles.-Common tobacco pipes and pipe bowls made wholly of clay, valued at not more than 40 cents per gross, 15 cents per gross; other tobacco pipes and pipe bowls of clay, 50 cents per gross and 25 per cent ad valorem; other pipes and pipe bowls of whatever material composed, and all smokers' articles whatsoever, not specially provided for in this section, including cigarette books, cigarette book covers, pouches for smoking or chewing tobacco, and cigarette paper in all forms, 60 per cent ad valorem." We also beg to refer to the item of cigarette papers included in Schedule N, paragraph 475, "Pipes, smokers' articles, etc." It is respectfully suggested that this is the paragraph where it properly belongs, but no less duty than 60 per cent ad valorem, 'the rate assessed under the present tariff, will enable domestic manufacturers to compete with the foreign producer. The importation of these articles amounted in value for the fiscal year ending June 30, 1912, to $600,972.50, with duties amounting to $350,583.50. It is a well-known fact that the proportionate cost of labor is much greater in all paper mills making tissue paper or other high grade and expensive papers than in those making the cheaper grades. The following comparisons indicate the conditions of our market, as contrasted with those of Germany, which country would be the chief gainer by lowering the tariff on these grades of paper. The statistics as to German wages are obtained from the report of the German Imperial Government supplying labor items of German mills for the year 1910, as incorporated in the report of the United States consul general, Robert P. Skinner. In addition to which, labor in America works shorter hours than similar labor in Germany. This is strong proof that labor has obtained a large share of benefit from the present tariff act, and if the tariff is reduced on these papers labor must eventually give up a portion of its gain. We most earnestly request that the present method of having a specific duty as well as ad valorem duty be continued on these papers, because from our experience we have found that when an ad valorem duty only is to be collected, there is a constant temptation to importers to undervalue goods, thus causing great hardship and loss to the American manufacturer and honest importer, also a loss of revenue to the Government on account of smaller duties paid. We earnestly hope that your honorable committee will adopt the above suggestions and thus maintain an important industry. DIAMOND MILLS PAPER CO., New York, N. Y. C. H. DEXTER & SONS, Windsor Locks, Conn. THE ANCHOR MILLS PAPER Co., Windsor Locks, Conn. JOHN R. & JOHN H. BUCK, PARAGRAPH 476-AGRICULTURAL MACHINERY. BRIEF ON BEHALF OF THE IRISH INDUSTRIAL ASSOCIATION OF NEW YORK CITY, N. Y. COMMITTEE ON WAYS AND MEANS, Washington, D. C. NEW YORK, January 30, 1913. GENTLEMEN: The Irish Industrial Association of New York City, a commercial body of American citizens, representing an important interest as importers and dealers in foreign and domestic pipes and smokers' articles in the United States of America, respectfully submits to the consideration of this honorable committee for adoption the recommendation respecting duties on said articles coming under Schedule N sundries (par. 475). The present duty on common tobacco pipes and pipe bowls of clay, valued not more than 40 cents per gross, is 15 cents per gross; other, 50 cents per gross and 25 per cent. Pipes and pipe bowls of whatever materials composed, and all smokers' articles whatsoever not specially provided for, including cigarette books, cigarette book covers, pouches for smoking or chewing tobacco, and cigarette paper in all forms, 60 per cent. We believe, in the interest of ourselves and the users of smoking pipes, etc., that the above duties are exorbitant, for the reason that the French brierwood is the only wood in existence which is practical for a useful pipe, and nothing has been found in this country which could be applied as a substitute, hence putting a high duty on articles which can not be produced in this country is entirely injuring the public and deprives the United States Treasury of customs duties, as it substantially prohibits their importation and prevents them from purchasing something which this country does not produce. As to the common clay pipes and all other pipes, we think that the duty of 15 cents per gross as a specific duty is excessive, for the labor in Europe now is scarce and the wages are much higher than what they were a few years ago, and we therefore submit to this honorable committee a request to lower the duty on the above-mentioned articles. Respectfully submitted. PARAGRAPH 476. IRISH INDUSTRIAL ASSOCIATION OF NEW YORK, H. WINSHIP WHEATLEY, Attorneys. Plows, tooth and disk harrows, harvesters, reapers, agricultural drills and planters, mowers, horserakes, cultivators, thrashing machines, and cotton gins, fifteen per centum ad valorem: Provided, That any of the foregoing, province or colony which imposes no tax or duty on like articles imported from the United States, shall be imported free of duty. AGRICULTURAL MACHINERY. STATEMENT FILED BY FRANCIS J. LOWE, NEW YORK, N. Y. NEW YORK CITY, January 28, 1913. Schedule: Free list. Subject: Agricultural machinery. GENTLEMEN: You are urgently requested to report favorably the placing of all agricultural implements and machinery manufactured or controlled by the so-called Harvester Trust on the free list. It would be advisable to limit the period to two years, as by that time importations of foreign-made agricultural implements and machinery would be sufficient to break this monopoly. There is a provision in the present tariff law allowing "free of duty farm machinery manufactured in countries at present not charging any duty on similar goods shipped from the United States." This provision was placed there at the request of one of our Senators from the West. In view of the fact that Holland, known as the country of windmills, is about the only place to which agricultural machinery can be shipped or imported on the condition named, and, as it is impossible to find a factory there manufacturing implements and machinery, the provision in tariff law is of no avail. I also understand that the Fiji Islands come under such a provision, but it is more profitable to ship Bull Durham than any other commodity. |