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 224 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. Brush Austria.-Blind skilled workers earn, per day, $0.60. Seeing skilled workers earn, per day, $1.20. 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. Em ployees 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 7 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 0.07 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 PARAGRAPH 423-BRUSHES. imported in that condition of any consequence, as quality and value can not be judged intelligently, nor do brush manufacturers wish to have the labor of handling refuse, etc.; also, labor for dressing bristles in the United States is much more expensive than in foreign countries. The United States Census for 1909 gives the sale value of brushes manufactured in the United States for that year: Value....... Number of establishments.. Average profits of each.... $14, 694, 000 390 $4,897 Importation of brushes and bristles for the past four years have been as follows: This shows that the increase in importation of bristles comparing 1909 with 1912 was 20 per cent, while the increase in importation of brushes for the same comparison is 44 per cent. It will be noticed that the percentage of increased importation of brushes as compared with importation of bristles was even more to the injury of brush manufacturers in the United States in the comparison of 1909 with 1911. Of the kinds of brushes imported there are not made in the United States in value over $5,000,000 or $6,000,000. A fair estimate would be that fully one-third of the better kinds of brushes used in the United States are of foreign manufacture. Of toilet brushes, such as hair, tooth, cloth, and similar kinds, fully one-half of those used in the United States are of foreign manufacture. To confirm this statement it is only necessary to examine the brushes offered for sale by retail sellers of brushes here in department stores, drug stores, etc. United States customhouse records for several years state imports of brushes as follows: This shows continual increase in importation of brushes from 1905 to 1911. With an ad valorem duty of 50 per cent on brushes, the importation of brushes would become smaller, and correspondingly more workpeople employed making brushes here. Details relating to brush manufacturing, as given in United States Census of 1909, stated by percentage basis: Expenses do not include interest on capital, losses from bad debts, or depreciation of plants. These statements do not show large profits to brush manufacturers in the United States. It is probable that many smaller brush manufacturers consisting of individuals or partnerships omitted to include salaries for themselves which, if a fact, would materially reduce percentage of profits. Of the items entering into cost of manufacturing brushes, materials are the same value in every country where brushes are made. To reduce cost of manufacturing brushes here, wages for labor is the only item which could be reduced, and that is now on as low a basis as it ought to be. The census report states for wage earners in the United States in the brush industry year named, average year's earnings per person $437. The low average for wage earners in the brush industry is accounted for by the large percentage of minor and female employees. Brush manufacturers in all countries employ minors and females in greater numbers than adult males, and brush manufacturers are equipped with laborsaving machines and devices equally well in all different countries. Brush manufacturers in other countries than the United States have all the advantages possessed here. The various processes of workers in making brushes are not difficult, the work is easy, and agreeable, and females and minors readily produce good results, therefore brush manufacturers employ in all countries a larger proportion of these classes than of adult men. In Japan and European countries the labor of manufacturing brushes is also done in families at home, where brushes are made by all members of the family, including small children. This method reduces labor cost materially on small cheap brushes below cost for labor in those countries, and the kinds so made are never made in the United States. Not only is labor paid less in other countries than in the United States but also rent, interest, and incidental expenses are less than in the United States. Wages paid in the manufacture of brushes in different countries obtained from reliable sources are annexed. Comparisons between United States and Germany show a marked contrast, and comparison between United States and Japan explains why the importation of brushes from Japan into the United States is a large amount and rapidly increasing. A comparison of American and foreign wages in brush manufacturing. Brush Austria.-Blind skilled workers earn per day $0.60. Seeing skilled workers earn per day $1.20. workers are very largely blind, perhaps 50 per cent are blind, and much of the work is done in homes. Germany.-Average male employee per week, $6.66; average female employee 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, female, up to 22 cents per day. These rates are for all departments of brush making. Employees work in Japan 7 â. m. to 6 p. m., seven days a week. Generally 312 days a year, one large factory 330 days a year. |