PARAGRAPH 415-WALL PAPER. I do not think any injustice will be done to the consumer if the duty on wall paper be made 35 per cent. Should the rate be reduced from 25 per cent our limited market would be further limited by the aggressive competition on the cheaper grades of goods of the Canadian factories which are at our doors and by the increased competition of the European factories on the better grades of goods. Respectfully submitted. GEORGE H. KEIM, Vice President Gledhill Wall Paper Co., New York, N. Y. And representing Janeway & Co., New Jersey; American Lincrusta Co., Brooklyn, N. Y. BRIEF OF W. H. S. LLOYD CO. 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 415M : To the WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. GENTLEMEN: The undersigned, importers of wall paper, respectfully ask that the duty of 25 per cent now existing upon wall paper be reduced to 15 per cent. We request the reduction of the present rate of duty in order that we may be able to import the medium and cheaper grades of wall paper, so that they may be sold in competition with the home product. Such a reduction in duty would without doubt increase the importations of wall paper, which, according to official records, amounted to only $868,294 for the fiscal year closing June 31, 1912. Such an importation was insignificant in comparison with the amount manufactured and used in the United States. Certain domestic manufacturers are now exporting wall paper, and one of the largest American manufacturers maintains a large agency for the sale of his product in Great Britain. According to official records upward of $370,000 worth was exported in 1911. The domestic manufacturers state in their brief, filed in Tariff Hearings under the paper schedule, page 6250, in 1908, that their annual production was then about $12,000,000 in value. This has doubtless materially increased since 1909. And another statement filed with the Ways and Means Committee in that same year admitted that 25 per cent of this output consisted of the medium and higher grades of paper. These facts show how completely the domestic manufacturers have control of the wall-paper market in the United States, even to being able to export a portion of their product. Unless a reduction in the present rate is made no medium grade of paper can possibly be imported. A small quantity of the better grades may be brought in, but the cheaper papers for the use of the masses are effectually shut out. The moderate reduction asked for will permit importations of much greater value than heretofore, and the sum of $217,073 collected as duty during the last fiscal year will be materially increased. The American manufacturers are in no need of protection on this product, since they control 94 per cent of the entire business in this country, according to the statement made by them in 1908, and are able not only to monopolize the market here, but also to meet European competition in their export sales. We respectfully submit these facts and request the reduction of the present rate in paragraph 415 to 15 per cent ad valorem. W. H. S. Lloyd Co., Shirley S. Lloyd, Treasurer; Lionel Moses, per PARAGRAPH 415-WALL PAPER. BRIEF OF CLARK J. BUSH, REPRESENTING THE PRAGER CO., BROOKLYN, N. Y. WASHINGTON, D. C., January 20, 1913. Hon. OSCAR W. UNDERWOOD, Chairman Ways and Means Committee, House of Representatives. DEAR SIR: I beg to submit to your committee some facts in regard to the wallpaper situation in the United States, which have either been neglected or imperfectly developed in the testimony so far submitted. The present duty of 25 per cent ad valorem in effect for many years has been sufficient to enable the domestic manufacturers to practically monopolize the sale of this product during the past 30 years. The apparent increase of imports of wall papers since the year 1904 has been principally caused by the inclusion in the statistics of a large amount of material brought in as "unfinished wall paper" and which has paid duty at the same rate (25 per cent) as finished, printed wall paper. "Unfinished wall paper" is construed to cover a large variety of plain surfaced, pulp-colored paper known to the trade as "oatmeal papers," "Holtzmehls," "Duplex papers, "Columbia Duplexis," and under many other trade designations. These papers, while used to some extent for wall decoration without printing or other additional treatment, are very largely purchased and used by domestic factories by the printing of ornamental designs and colors upon the surface of these originally plain unprinted papers which thus become a part of the raw materials used in domestic manufacture. Also, quantities of the product known as "Lin O'Wall," being identical with the American-made "Lincrusta Walton," is imported as wall paper and pays the same rate of duty. It is likely that the above-named materials which are not strictly wall paper constitute the greater part of the increased importations shown in the statistics of the past seven years. During the years from August 1, 1892, to July 1, 1900, the prices obtained by American manufacturers were maintained at an average of at least 40 per cent higher than since that time, through the operation of the merger known as the National Wall Paper Co., and during the period from July, 1898, to July, 1900, the domestic monopoly effected by the selling agency called the Continental Wall Paper Co. Since July, 1900, no controlled uniform prices have been in operation and competition among domestic mills has kept prices uniformly low. It is, therefore, evident that a duty of 25 per cent ad valorem has been ample to enable American manufacturers to maintain very profitable prices whenever home competition could be stifled or controlled and that foreign competition has at no time been a real factor in the price situation. The real protection enjoyed by American wall-paper manufacturers lies in the fact that ordinary American demand and taste calls for an entirely different class of designs and effects from those popular and salable in foreign countries. This fact also explains the small amount of exports from America to the rest of the world. American cheap wall papers are the best in the world for the American market. European cheap wall papers would not be brought to America in any volume under free-trade conditions. Large quantities of wall paper of fair quality is made in America and sold to dealers at from 24 to 3 cents per roll of 36 square feet of covering surface. This cheap grade of goods is made and sold at a fair margin of profit, as is shown by the continued operation and steady growth of factories who make nothing else. There are at least seven such mills now in active and supposably profitable operation. The average total cost of labor used in printing all wall paper made in America is not over 75 cents per 100 rolls of finished product or much less than the present rate of duty. The class of wall papers imported from Europe come in because of their distinct and absolute superiority to the domestic product. More care and better artists are employed in their designing. Much higher prices are paid for designs throughout Europe than in America. Better coloring matter is used and colors are usually more permanent and fade less quickly. More originality and enterprise in the invention and use of new machinery and processes results in the production of new and interesting effects far in advance of their production here. PARAGRAPH 415-WALL PAPER. American manufacturers recognize these facts and depend largely upon copies of imported designs instead of exercising originality and the best skill in designing and coloring. American manufacturers would be stimulated to higher effort and care in their designing and manufacturing if foreign manufacturers were permitted a little freer access to this enormous but closed market. American homes would be better decorated if American women were permitted a little more range of choice in their selection of wall papers for this purpose. An ad valorem duty of not over 15 per cent on wall paper finished or unfinished would be greatly in excess of the difference in labor cost. This reduced duty would enable American mills to use nore freely the novel and superior plain unprinted materials originating in Europe to the improvement of their product in the better grades. It would afford a much needed stimulus to the production of artistic decoration, employ more skilled labor in designing and manufacture and tend generally to the ultimate improvement of American wall papers. A reduction of the duty to not over 15 per cent ad valorem is urgently and conscientiously recommended. Respectfully, CLARK J. BUSH, BRIEF OF THE NATIONAL ASSOCIATION OF MACHINE PRINT- Hon. OSCAR W. UNDERWOOD, House of Representatives. DEAR SIR: The existing rate of duty on wall papers of all kinds, both the cheaper and the better grades, is 25 per cent. I think that the committee will agree with me that this is a modest rate of duty for an industry of this nature. As far as I know, the rate has been uniform for years. I have been actively engaged in the business since 1884, and I believe that the same rate has prevailed during that entire period. There are 45 wall-paper factories competing strenuously in the United States. There is no agreement of any kind among these factories nor has there been since the year 1900. The business of each factory is to run independently, and each one is striving to maintain the greatest possible volume of trade. The price of wall paper is low. Domestic manufacturers sell good wall paper at 34 cents per roll of 8 yards. The tariff therefore does not unduly protect the American manufacturer, and there is little possibility of the prices being raised should the tariff be advanced, as the 45 factories are more than sufficient to supply the needs of this country and to allow an ample amount of product for the export markets. We ask for a fair tariff on wall paper, primarily for the reason that the cost of manufacture in this country is higher than it is in foreign countries, owing to the high rate of wages we are paying. We pay our skilled labor an average of $26 per week. England, Germany, and France pay an average of $11 per week. The unskilled labor is paid the same ratio in both countries. We therefore pay almost if not entirely 25 per cent more for labor than is paid in foreign countries. In addition, our agreements with the labor union provide that we are compelled to operate 47 weeks in the year, whether we have orders or not. The result is that we make each year a considerable quantity of goods for stock which, consequently, have to be marked at a low price. The total capital engaged in the manufacture of wall paper is $14,000,000. The total annual production is about $14,000,000. The amount of profit in the last 20 years was small, owing mainly to the severe domestic competition and in part to the increase in the importation of foreign goods. The total amount of exports of wall paper was only $399,121 in the year 1912. The amount was $301,339 in the year 1902. The exports have accordingly increased about 30 per cent. The total amount of imports in the year 1901 was $208,171. The imports have accordingly increased 400 per cent while the exports have increased only 30 per cent. The kind of wall paper imported is mainly of the better grades. In my opinion, a moderate increase in the tariff would not materially lessen the amount of imports. The consumer who desires imported wall papers will probably purchase such wall paper in the same quantities whether the tariff be 25 or 35 per cent. In this country we manufacture mainly the cheaper grades of wall papers. There is a greater proportion of the better grades made by the manufacturers of foreign PARAGRAPH 416-BOOKS. countries. This is mainly due to the fact that many wall papers of the better grades are made either to a large extent by hand. An increase in the rate of duty would permit us to employ a larger number of hand printers in this country. It should be our aim to make better wall papers and to compete with England, Germany, and France on that class of goods. Wall paper is generally considered to be a semiartistic production, but there are not enough artists and artisans employed in this country, and the main reason is that the better grades of wall paper are imported. The duty on American wall papers into Canada is 35 per cent. Canada has a number of wall paper factories, which may become active competitors against those in the United States. If the duty in this country be lowered we might find a good part of our market in this country taken away from us by the Canadian factories. The average cost of our production of wall papers is about 6 cents per roll, of which the cost of labor is about 3 cents per roll, the balance being for materials. The labor in foreign countries on similar wall papers is less than 13 cents. The American manufacturer is compelled to pay as much as 2 cents per roll for labor on this class more than the European manufacturer. The protection, therefore, seems to be inadequate. On a number of raw materials used in the manufacture of wall paper in the United states the prevailing rate of duty is more than 25 per cent. I respectfully desire to call attention to the fact that other articles used for wall decoration, as, for example, silk hangings, carry a duty of 60 per cent. The higher grades of wall papers can perhaps be considered luxurious, and as silk hangings are imported under a 60 per cent tariff it seems to me that the better grades of wall papers, which are now admitted under a 25 per cent tariff, would be imported to the same extent under a higher rate. I do not think any injustice will be done to the consumer if the duty on wall paper be made 35 per cent. Should the rate be reduced from 25 per cent our limited market would be further limited by the aggressive competition on the cheaper grades of goods of the Canadian factories which are at our doors and by the increased competition of the European factories on the better grades of goods. Respectfully submitted. PARAGRAPH 416. PATRICK E. LYONS, Books of all kinds, bound or unbound, including blank books, slate books, and pamphlets, engravings, photographs, etchings, maps, charts, music in books or sheets, and printed matter, all the foregoing wholly or in chief value of paper, and not specially provided for in this section, twenty-five per centum ad valorem. Views of any landscape, scene, building, place, or locality in the United States, on cardboard or paper, not thinner than eight one-thousandths of one inch, by whatever process printed or produced, including those wholly or in part produced by either lithographic or photogelatin process (except show cards), occupying thirty-five square inches or less of surface per view, bound or unbound, or in any other form, fifteen cents per pound and twenty-five per centum ad valorem; thinner than eight one-thousandths of one inch, two dollars per thousand: Provided, That the rate or rates of duty provided in the tariff act approved July twenty-fourth, eighteen hundred and ninety-seven, shall remain in force until October first, nineteen hundred and nine, on all views of any landscape, scene, building, place, or locality, provided for in this paragraph, which shall have, prior to July first, nineteen hundred and nine, been ordered or contracted to be delivered to bona fide purchasers in the United States, and the Secretary of the Treasury shall make proper regulations for the enforcement of this provision. BOOKS. TESTIMONY OF D. S. BRASSIL, OF THE EMPLOYING BOOKBINDERS OF NEW YORK CITY. The witness was duly sworn by the chairman. Mr. BRASSIL. Mr. Chairman and gentlemen of the committee, I want to state, as representing the Employing Bookbinders' Association of New York, that they are employers of labor engaged in manufacturing books. I wish to correct a statement that was made by PARAGRAPH 416-BOOKS. one of the speakers who preceded me as to the cost and manner of binding books. The gentleman stated that the greater number of books imported were scientific books for educational purposes. That is true to-day, but if the tariff were removed I want to say that lots of books, such as I hold in my hand, manufactured by publishers in the United States and originally published in England and over 20 years old, and bound for him at 74 cents, for which the paper cost 4 cents and the printing 2 cents, and he sells for 17 cents, and for which the people of the country are paying 25 cents, he did not say that he was anxious to get the duty taken off so that he could sell a book that he now charges 35 cents for could come in competition with this line. I want to introduce my remarks with that statement, and I would like to have this book handed to the chairman as Exhibit A. The chairman calls Mr. Dixon to the chair. We beg to submit the following facts to your honorable body for its consideration: In relation to the importation on books we request that you do not decrease the duty under section 416 and amend sections 517 and 518 allowing books bound in cloth and paper covers only to come in free, and add a new section providing for a duty on certain books bound in leather. More than 50 years ago, when the present duty was first placed on books, conditions here and abroad were somewhat similar, as books were bound at that time mostly by hand, but since then, through the introduction of machinery that is now in use in the United States and England, the conditions vary considerably on account of the difference in the cost of labor. In the United States the cost of male labor to-day for machine help varies from $18 to $24 per week, while in England the operators on the same machines, namely, Quad folding machines, Smyth casemaking machines, Smyth casing-in machines, duplex trimmers, Blauvelt lining machines, and various makes of stamping machines receive from $8 to $12 per week, while their production is equal in a given time, and the American manufacturer is also under the further disadvantage of having a shorter work day. During the past five years a large number of American publishers and importers of books have taken advantage of these conditions, and placed orders abroad for large editions, varying from 50,000 to 1,250,000 books, and after paying a duty of 25 per cent they are able to lay them down in this country at a lower cost than if manufactured here. When you realize that one order for 1,250,000 books will keep an average bindery employing one hundred or more people busy for at least six months, you will understand what this means to the laboring people employed in this industry. American publishers to-day are manufacturing books to sell to the large mass of the American people at very reasonable prices. A. L. Burt Co., of New York City, for instance, is publishing one line of over 300 titles, consisting of classical literature that is being sold for 25 cents retail throughout the United States. (See Exhibit A handed the chairman in the shape of a book.) They, as well as other manu |