PARAGRAPH 422-STRAW HATS, ETC. This would equal a duty of 35 per cent, which is the present rate, and would greatly benefit the import trade by simplifying matters and would do away with the expense and delay now resulting from uncertainty of valuation. Importations at present are, in general, warehoused to await the results of the appraiser's report, and often times penalties are forced upon the trade in spite of their most earnest endeavor to fully comply with the law. We therefore would request a specific duty on all woven Panama hats imported from Colombia, Ecuador, and Peru, on the basis of 40 cents each on all hats valued at $6 and not more than $30 per dozen; 75 cents each on all hats valued above $30 and not over $60 per dozen; and $2 each on all hats exceeding $60 per dozen. We annex hereto the records of two of the largest importers covering the season of 1912, which confirm our statement that a duty of 40 cents a hat would be equitable to the trade, and certainly satisfactory to the Government. (Exhibit A.) The Panama woven hats in demand in the United States to-day are those valued at from $6 to $60 per dozen, and that retail from $3 to $5 each after having been bleached, blocked, and trimmed in this country, and these constitute practically seven-eighths of all the importations. Finally, it is respectfully submitted that paragraph 422 be amended to read as follows: 422. "Braids, plaits, laces, and willow sheets or squares, composed wholly or in chief value of straw, chip, grass, palm leaf, willow, osier, rattan, real horsehair, Cuba bark, or Manila hemp, suitable for making or ornamenting hats, bonnets, or hoods, not bleached, dyed, colored or stained, fifteen per centum ad valorem; if bleached, dyed, colored or stained, twenty per centum ad valorem; hats, bonnets, and hoods when imported from Colombia, Ecuador, or Peru, and composed wholly or in chief value of straw, chip, grass, palm leaf, willow, osier, rattan, Cuba bark, or Manila hemp, whether wholly or partly manufactured, but not trimmed, if valued at less than $6 per dozen, thirty-five per centum ad valorem; if trimmed, fifty per centum ad valorem; if valued at $6 per dozen and not more than $30 per dozen, 40 cents each; if valued at above $30 per dozen, and not more than $60 per dozen, 75 cents each; if valued at more than $60 per dozen, $2 each; but the terms "grass" and "straw" shall be understood to mean these substances in their natural form and structure, and not the separated fiber thereof." Should it be found desirable, however, to make the classification more general, the following is suggested. 422. "Braids, plaits, laces, and willow sheets or squares, composed wholly or in chief value of straw, chip, grass, palm leaf, willow, osier, rattan, real horsehair, Cuba bark, or manila hemp, suitable for making or ornamenting hats, bonnets, or hoods, not bleached, dyed, colored, or stained, fifteen per centum ad valorem; if bleached, dyed, colored, or stained, twenty per centum ad valorem; hats, bonnets, and hoods, composed wholly or in chief value of straw, chip, grass, palm leaf, willow, osier, rattan, Cuba bark, or manila hemp, whether wholly or partly manufactured, but not trimmed, if valued at less than $6 per dozen, thirty-five per centum ad valorem; if trimmed, fifty per centum ad valorem; if valued at $6 per dozen and not more than $30 per dozen, forty cents each; if valued at more than $30 per dozen and not more than $60 per dozen, seventy-five cents each; if valued at more than $60 per dozen, $2 each. But the terms 'grass' and 'straw' shall be understood to mean these substances in their natural form and structure, and not the separated fiber thereof." If desired that the question of straw hats be made a separate one, the present paragraph 422 could remain as it is, with a supplemental clause as follows: "Untrimmed straw hats, known as Panamas, made from straw, chip, grass, or palm leaf and valued at less than $6 per dozen, thirty-five per centum ad valorem; if valued at $6 per dozen and not more than $30 per dozen, forty cents each; if valued at more than $30 per dozen and not more than $60 per dozen, seventy-five cents each; if valued at more than $60 per dozen, $2 each.” All of which is respectfully submitted. (By Francis E. Hamilton, counsel, 32 Broadway, Dated, New York, N. Y., January 27, 1913. POTTBERG, EBELING & Co. M. CASTILLO & Co. A. HELD. SCHUTTE, BUNNEMANN & Co. CALHOUN & Co. J. H. MENENDEZ & Co. New York, N. Y.) Number of cases. PARAGRAPH 422-STRAW HATS, ETC. List of duties paid on Panama hats during 1912-Continued. On 10,800 dozen, we paid $51,939.60 duty, or $4.81 duty paid on each dozen hats. Equal to 40 cents per hat. Figures of another importer, Apr. 10, 1912, to Dec. 2, 1912. One hundred cases, containing 50 dozen each, equal to 5,000 dozen. Declared value on 5,000 dozen of straw hats, $63,782, or an average of $12.756 each dozen. This, at 35 per cent, makes a duty payment of $4.464 per dozen, or, in other words, 40 cents per hat. MEMORIAL OF THE ITALIAN CHAMBER OF COMMERCE, NEW YORK, N. Y., RE STRAW BRAIDS, ETC. Hon. O. W. Underwood, Chairman of the Ways and Means Committee, Washington, D. C. SIR: The Italian Chamber of Commerce in New York desires to submit to the earnest consideration of this honorable committee the following recommendations relating to the advisability of reducing the fiscal burden on certain articles hereunto stated, both in the interest of the consumer and of revenue, without prejudice to domestic industry. Braids, plaits, etc., for making or ornamenting hats, bonnets, hoods, etc.-Under this heading, covered by paragraph 422 of the present tariff, are materials necessary in the 78959°-VOL 5-13-22 PARAGRAPH 422-STRAW HATS, ETC. manufacture of hats, not produced in this country, which should be considered practically as a raw material." The duty should be so framed as to encourage the use of this semiraw material, increase the production and consumption of the finished article, lower its cost, and at the same time promote revenue. The scope of paragraph 422, in so far as relating to braids, plaits, and similar materials necessary to the manufacture of hats, was at the last tariff revision extended to include specifically a greater number than formerly of the materials of which braids, plaits, etc., are made, and also to apply to materials in chief value, instead of only wholly of straw, chip, grass, palm leaf, willow, osier, rattan, real horsehair, Cuba bark or manila hemp. While this has been an improvement justified by necessities of trade, the same motives advise the further extending of the purport of said paragraph to include other materials which by reason of fashion have come to be used in the manufacture of braids, plaits, etc. Among these is ramie, which is now assessed a duty of 60 per cent, while it should be assimilated to the above-stated materials when manufactured into the same article, thus avoiding the present discrimination, encouraging the use of suitable materials in the manufacture of the commodity in question, and giving the consumer the benefit of a greater variety, greater novelty, and better quality of the ultimate article. It seems also to this chamber that the present discrimination in the manner of assessing duty between natural and bleached, dyed, colored, and stained braids, plaits, etc., is not justified, when it is considered that the latter are not produced in this country. The dyeing is done mostly by the hat manufacturer himself according to the requirements of fashion, and the domestic industry is not equal from a technical standpoint and is, further, limited to one or two firms. The difficulty experienced in dyeing these materials is such that often they have to be shipped to distant countries from those of production, where special efficiency has been attained, in order to get them in the condition essential to the manufacture of the ultimate article. The difference in price between natural and dyed braids is often so small that it should not be made the motive for a higher rate, and this chamber is of the opinion that it would be wise to assess the duty on braids, plaits, etc., at a uniform rate, irrespective of whether natural or dyed, etc., as the color does not intrinsically affect the value of the article. In establishing the rate this chamber respectfully recommends, in view of the increasing use of such material-from $3,988,033 in 1907 to $4,597,409 in 1911-that a uniform rate of 10 per cent be levied. The increasing importations would certainly offset the effects of the reduction of the rate on revenue, while the reduction would enable the hat manufacturers to give to the consumer the benefit of a lower cost of the ultimate article. Straw hats, bonnets, etc., are not a luxury, but a commodity of universal use, and it is reasonably expected that the present tariff revision will bring relief by lightening as much as possible the duties on materials, such as the one in question, indispensable to the manufacture of an article of such primary necessity. By encouraging the importation of this semiraw material and the consumption of the articles manufactured therefrom, American labor is also benefited. Leather gloves.-Gloves are certainly not a luxury, although they might appear such on the face of present selling prices, owing to the practical exclusion of a certain class of gloves from acceding our markets, due to the prohibitive rates of duty. Such is the case, for instance, of men's gloves, the consumption of which is almost entirely supplied by domestic manufacture, which enjoys the privilege of a protective duty, ranging from 100 to 150 per cent. In fact, while the American manufacturer produces about $17,000,000 worth of gloves (almost entirely men's gloves), the share represented by imported men's gloves in the consumption did not exceed in fiscal year 1911 $718,000 out of a total of $7,775,436. It will thus be seen that the possibilities left to the foreign supply of this article are confined to women's and children's gloves, the rates on which, while not so high as on men's, are nevertheless high enough to afford every possible protection to domestic production, were such possible to a greater extent, which can not be the case, owing to the scarce domestic production of the lamb, kid, and goat skins suitable to the manufacture of this class of gloves. That gloves are not a luxury but a necessary article of wearing apparel is, under our conditions of climate, living, and customs, a recognized fact. PARAGRAPH 422-STRAW HATS, ETC. The present tariff on gloves, framed with the express intent to reserve the home market to domestic production by duties excluding all possible competition from the imported article, exorbitant as it is, is rendered even more prohibitive owing to its objectionable feature of cumulative duties. In fact, while paragraphs 454, 455, 456, 457, and 458 provide specific duties according to the description, quality, and size of the gloves, high enough for all purposes of revenue and protection, paragraph 459 assesses on them additional duties, a further burden, which should be eliminated from the tariff, and thus avoid the litigation of which the assessment of said cumulative duties has often been the cause to the discouragement of importations and consequent loss to business. Another objectionable feature of the present duties on gloves is the inequitable nondistinction between women's and children's gloves, both assessed at the same rates, while it is well known that the cost of children's gloves is from 10 to 20 per cent less, on account of the less material and less labor required in their manufacture. Means should be devised whereby it should be possible to establish duties on children's and women's gloves, respectively, more proportionate and logical with their cost. While this chamber recommends that the system of levying specific duties on gloves be continued, as the one that gives the most satisfactory results to all concerned, it can not overlook the fact that if the present tariff revision is aimed at reducing the cost of living and lessening the discomforts of the increased cost of an article as gloves of almost universal use, the glove schedule, which contains some of the highest rates of the tariff, especially on men's gloves, which are from 25 to 30 per cent higher than on women's and children's, and which have not proved responsive in raising revenue, is entitled to a revision in a downward direction. Works of art. The last revision of the tariff accomplished some results in lightening the burden which this country maintains on works of art by exempting such of them as proven not less than 20 years old. Remarkable as this achievement was on the face of the unheeded recommendations which had repeatedly been addressed to Congress for the repeal of the duties on works of art it is, however, far from satisfactory, as it means that the American public will have to wait 20 years before it can secure the advantages of a modern work of art which it might be deemed advisable to introduce in this country for the benefit of the artistic education of our people. The maintaining of a tariff on works of art, from which but a small revenue ($1,591,167 in 1911) is, after all, secured, is one of the regrettable features of our fiscal legislation, indifferent to the great educational influence which works of art exert on the people. In this country, where an already admirable educational system needs the integration of cultivating the artistic tendencies of a cosmopolitan population, the encouragement and development of the study of fine arts and of their application to manufacture should be stimulated to a greater extent. Most all the civilized countries admit works of art free of duty, recognizing the beneficial effect of this production on both the educational standard of the people as well as the industrial progress of the countries, and this country should follow an example which has already been characterized by satisfactory and encouraging results. The popularization of works of art is a form of education of high value in which the United States should not remain behind other nations who have succeeding in attaining from the artistic standpoint greater results, often notwithstanding the less versatile and artistically inclined nature of their races. Works of art, provided they are the original productions of artists, should be allowed to come in free and spread their beneficial influence upon the masses. While works of art which are the production of American artists are already admitted free of duty, we should not make discrimination in matters of this kind which is inconsistent with the universal purport of art. This chamber, therefore, respectfully recommends that works of art be exempted from duty; but should exigencies of revenue make this impossible this chamber recommends in a subordinate line that (a) No duty be charged on breakages which practically destroy the value of the work. (b) That the market value of a work of art on which duty is assessed be the price actually paid to seller at place of origin and not the value placed on such work by dealers, which price often includes profit and other charges, as freight, storage, etc. Respectfully submitted. ITALIAN CHAMBER OF COMMERCE IN NEW YORK, G. R. SCHROEDER, Secretary. |
