PARAGRAPH 423-BRUSHES.

Mr. HARRISON. Excuse me. I have noticed that nearly every manufacturer appears here and claims that there is no export in his line of goods, and he is very much amazed to find that the Census Bureau reports that there are exports in his line. The committee have a right to rely upon the figures that the Census Bureau has given us, and those figures do not show any exports of brooms at all, but do show seven hundred thousand dollars' worth of brushes, feather dusters, and hair pencils exported. So even if your information is that there are no exports you will have to produce a little more evidence before the committee before we can correct those figures.

Mr. BONNER. I really meant to be correct, because I stepped into the other room and asked the clerk if brooms and brushes were segregated in the export item, and he gave me the information that they were not.

Mr. HARRISON. Possibly you are correct.

Mr. BONNER. They are separated in the imports, but given as one item in the exports. I believe the gentleman meant to be right. He says the manufactures were

Mr. HARRISON. That would be 7 per cent.

Mr. BONNER. Seven per cent of $29,000,000? Brushes plus brooms. Mr. HARRISON. About 15 per cent.

Mr. BONNER. Yes, sir. I am not intending to reply to the witness, however. That brings me to a point which I can properly state as a witness, and that is of the class of brushes, toilet and artist brushes, to which reference was made-that is, about 60 to 75 per cent of the amount manufactured in this country are imported.

The statement has been made here with reference to using child labor in making brushes. Drawing bristles through brush blocks a couple of decades ago was very similar and primitive custom to the use of a needle and thread in sewing prior to the introduction of sewing machines. The women and children employed in this work are at home. They are surrounded by their own family. They take a clamp and screw it to a table; the brush block is tightened, and they draw the bristle through the brush block. They can stay right at home, and if there are any children employed anywhere in the United States that way, I am satisfied that it is under cover of the home. I do not know of anything of the kind in Ohio-my State-because we can not employ minors under 16 years of age but eight hours a day, and then only down to 14 years. In the manufacture of the brushes of the grades of samples that were shown here by Mr. Holton from Grand Rapids, Mich., in Mr. Fordney's State in this country, the most intelligent machinery, automatic machinery, that can be conceived is used in the making of brushes. In ingenuity it is similar to the linotype machine used in connection with printing. The brush block is put into a machine; it bores the holes, puts the bristles in, and when the machine has completed its work of making a complete brush, stops. If there is any error in the machine in the making of a brush, it stops of itself. Under those conditions within the last 25 years that I have been associated, the quality of hairbrushes and toilet brushes of every kind

PARAGRAPH 423-BRUSHES.

that have been used in the family have improved in their manufacture about 60 per cent, and I should say that the price has been reduced 75 per cent. I had never before heard of that statement that our industry was in any sense using tenement house labor until I heard it to-day, except as I have qualified it. Almost all toilet brushes are now machine made.

We are asking, as we did yesterday, and others following me may ask, to change the rate from 40 to 50 per cent, and it is because of the terrific increase in importation of Japanese goods, which has amounted to 3,856 per cent since the McKinley law was enacted. I was handed by a gentleman since I have come into the room a clipping taken from a paper. It seems to be a cable dispatch under date of January 11 from Berlin. It explains how labor lives in Germany at $10.50 per week, in comparison with American labor at $18.

The use of the flesh of dogs as a food for man is becoming common, even in the capital.

From necessity the German workingman has long made horse meat a substantial portion of his daily fare, but while Saxony consumes thousands of dogs annually, the practice of eating this meat has not until recently invaded Prussia.

Now the overseers of the Berlin cattle yards have given their approval of the proposal to erect a municipal slaughterhouse for dogs at the yards, and it is expected that the police president will soon issue the required permit.

Now, the brush manufacturers in that country are paying dividends of something like 15 per cent. In one city there they employ over 3,000 people, and those goods are coming in here at a terrific rate. According to a Japanese financial statement, the last Imperial statement that I have seen issued shows that their labor is paid, the men over 14 years, something like twenty-four and a fraction cents; the women over 14 years, nineteen and a fraction; boys under 14, nine and a fraction, and the women seven and a fraction. Three times as many women are employed in the industry as men. American labor costs 15 times as much as Japanese labor.

For us to compete with the tremendous importation of toilet and artists' brushes means annihilation. We are asking 50 per cent instead of 40 per cent. We do not expect protection. Fifty per cent will not give us protection. It would take 75 per cent to give us any sort of protection, and we do not think 50 per cent will lessen the percentage of imports-50 per cent duty will only stay the annual increase somewhat.

There has been another statement to the effect that toothbrushes are being sold here at prices that are ranging from 10 to 25 cents. I administered the customs at Toledo under two presidential administrations, and just before leaving home I received direct information from the customhouse to the effect that Japanese toothbrushes, imported directly for one of our department stores-a good quality toothbrush, for 2 cents apiece.

The CHAIRMAN. Mr. Bonner, your time has expired.

Mr. BONNER. I thank you.

PARAGRAPH 423-BRUSHES.

TESTIMONY OF WILLIAM CORDES, TREASURER OF THE FLORENCE MANUFACTURING CO., FLORENCE, MASS.

The witness was duly sworn by the chairman.

Mr. CORDES. Mr. Chairman and gentlemen of the committee, I have a brief that I have already presented to your honorable chairman, but have another copy if you prefer it. I would like to supplement it by a few brief remarks.

This afternoon in a statement that was made by Mr. Holton, representing some importers, regarding the brush industry, he referred specifically to my company on page 5 of his printed brief, in which he stated that we were shipping into Canada Prophylactic toothbrushes at a less price than we were selling them at in America. I simply wish to state that perhaps Mr. Holton made this statement with partial knowledge only. He says here that we sell the goods in America for $23.25 and in Canada for $21. He forgot, or perhaps he did not know it, that there is a discount from that $23.25 of $3.75. We get a net price of $19.50 in America, and we sell the few brushes which we export at the same price abroad.

Mr. HARRISON. Let me interrupt you a moment. Is not your rate, instead of being $23, as a matter of fact $27 per gross to the jobbers in this country?

Mr. CORDES. To jobbers, less 20 brushes that we give as a discount, and less 20 brushes that we give to the retailers as a discount.

Mr. HARRISON. Twenty-seven dollars per gross is the price of toothbrushes to the jobbers?

Mr. CORDES. That is the price.

Mr. HARRISON. From that you deduct the bonus, which amounts to 20 brushes?

Mr. CORDES. Yes, sir; or $3.75.

Mr. HARRISON. Supposing that the jobber does not sign your selling agreement, does he get that bonus?

Mr. CORDES. No, sir.

Mr. HARRISON. It is given only to the jobbers if they agree not to sell below a certain price?

Mr. CORDES. A minimum price.

Mr. HARRISON. So you have a selling agreement with all the jobbers to whom you sell, and unless they agree to that they do not get the bonus of $3.75?

Mr. CORDES. Yes, sir.

Mr. HARRISON. So your price is $23.25 net to the good, wellbehaved jobber?

Mr. CORDES. Our jobbers all behave.

Mr. HARRISON. I judge they all sign the selling agreement.

Mr. CORDES. We have never been obliged to take anybody off that list. We have never refused to sell anybody.

Mr. HARRISON. You never blacklisted any of your jobbers?

Mr. CORDES. No, sir.

Mr. FORDNEY. Even though they violated the agreement and sold below the minimum ?

Mr. CORDES. We have never had occasion, because they have never gone below the minimum,

PARAGRAPH 423-BRUSHES.

Mr. FORDNEY. They have to be good or they can not get the goods? Mr. CORDES. No, sir; anybody gets the goods.

Mr. FORDNEY. Then why do you have that agreement?

Mr. CORDES. To maintain the price. If a jobber does not sign the agreement, he buys as a retailer, and the retail price is exactly the

same.

Mr. FORDNEY. You do not help the jobber out very much, do you? Mr. CORDES. He sells the goods at $27 a gross and gets a profit of 14 per cent.

Mr. FORDNEY. But you say you will sell to the retailer at the same price.

Mr. CORDES. Yes, sir.

Mr. FORDNEY. If they sell below a certain price, you do not discriminate, although you give them to understand you will if they do not live up to that agreement?

Mr. CORDES. We simply speak to them.

Mr. FORDNEY. And they behave?

Mr. CORDES. Yes, sir.

Mr. FORDNEY. The child learns his lesson and knows it well.

Mr. CORDES. We have never taken anybody off that list and never have refused to sell to anybody. I would not refuse to sell them under any circumstances. I do not think that would be fair.

Mr. FORDNEY. Why do you make the agreement?

Mr. CORDES. The agreement is simply to keep them from slashing the prices all to pieces.

Mr. FORDNEY. But if they do slash prices to pieces you will forgive them and kill the fatted calf?

Mr. CORDES. They simply say, "We will not do it any more."
Mr. FORDNEY. Oh, "We will be good now."

Mr. CORDES. Yes, sir.

Mr. HULL. This kind of trade agreement does not exist in other lines of business, does it?

Mr. CORDES. I do not know, I am sure; perhaps it does.

Mr. FORDNEY. If any man in the manufacture of lumber or steel or cotton or wool should make an agreement of that kind, he would be before the Supreme Court in 15 minutes. Why are not you there? That is a violation of the Sherman antitrust law.

Mr. CORDES. If it is, I will stop it right off.

Mr. KITCHIN. He is not there because the Republican administration would not enforce the law against him. [Laughter.]

Mr. FORDNEY. We will wait and see what the Democrats do. I will watch that. [Laughter.]

any

Mr. CORDES. I do not think it is fair to make this a political matter. I want to be fair. If it is not right, I will fix it so that it will be right. I do not propose to violate any law. I never have violated law. Mr. FORDNEY. There has been case after case before the Supreme Court involving an agreement of that kind as being in violation of the Sherman antitrust law.

Mr. CORDES. The matter has never been called to my attention in that way. In fact, I can not find an attorney that will interpret that in that way. I have had this matter before several attorneys, and they tell me we are entirely within the law.

PARAGRAPH 423-BRUSHES.

Mr. FORDNEY. The Tobacco Trust was punished for that very same thing, and the Rubber Trust-they have been after the Rubber Trust, but I do not know whether they got them.

Mr. CORDES. My understanding is that if you can prove that I am violating the Sherman Act or discriminating-but I am not discriminating.

Mr. FORDNEY. My dear friend. I do not have to prove it, if you will admit you have an agreement of that kind. The Supreme Court has repeatedly decided that it is an agreement in restraint of trade and therefore is in violation of the Sherman antitrust law.

Mr. CORDES. Has that any relationship to the question of establishing the price of an article or the tariff on it?

Mr. FORDNEY. Your price that you give as a minimum price to the merchant or retail man has nothing to do with the tariff.

Mr. CORDES. That is simply a statement that I was trying to make. I could not see why Mr. Harrison asked the question, because all I was trying to show was that we get the same price here that we are getting elsewhere.

Mr. HARRISON. To turn your thoughts to pleasanter paths-for we do not want to embarrass you, and do not desire to embarrass any person-I seriously asked the question about your prices here and in Canada for the reason that you have suggested that a witness this afternoon was mistaken when he said that the prices to the jobbers were cheaper in Canada than in the United States on the prophylactic toothbrush. You have just testified that all the jobbers who were good and you said they were all good-get your toothbrushes at $23.75 a gross. Is that correct?

Mr. CORDES. $23.25; yes, sir.

Mr. HARRISON. $23.25. At what price do you sell them per gross to jobbers in Canada?

Mr. CORDES. We sell the brushes in Canada at $27, I think the price is, and the duty brings the net somewhere in the neighborhood of $21.

Mr. HARRISON. Then $21 in Canada and $23.25 in the United States

Mr. CORDES (interposing). Mr. Harrison, on top of that we have to give the retailer 20 additional brushes; we carry a liability on our books, for every gross we send out, of an additional 20 brushes that the retailer gets, which is another reduction of $3.75.

Mr. HARRISON. The jobber in Canada does not get a discount, does he?

Mr. CORDES. No, sir.

Mr. HARRISON. But your jobbers' price per gross in Canada is $21, counting out the duty?

Mr. CORDES. Yes, sir.

Mr. HARRISON. And it is $23.25 to the good jobbers in the United States?

Mr. CORDES. Yes. But what am I going to do with the other 20 brushes that I have charged against me a liability that go to the retailer? They are provided for and it is an additional discount. I do not get that in cash.

Mr. HARRISON. But I am not interested, for the purposes of this question, in your activities as a distributing agent; but as a manu