PARAGRAPH 431-TOYS. few months in the year to a business which can be profitably conducted every month in the year. Indeed, the manufacturers hope that within the next five years the output will bear a considerably higher ratio to the capital invested than at present. In addition to the establishments exclusively engaged in the manufacture of toys, the industry is one which has an important bearing upon various other industries in this country in that many factories are able to employ their waste material, remnants, and scraps in the manufacture of toys. The total of the amounts manufactured in this way almost equals the production of factories making toys exclusively. This is of supreme importance for the reason that these factories engage in the manufacture of toys in those seasons of the year when business is dull in their regular product, when they would otherwise be compelled either to work half time or to reduce their working force. By employing their force in the manufacture of toys they are able to keep their hands employed during the entire year. Here again the reduction of the tariff would render the manufacture of toys unprofitable and would result in the enforced idleness . of highly skilled employees for considerable periods in each year. It is of the utmost importance not to lose sight of the fact that toys are essentially luxuries. Even in the remote contingency, therefore, that the elimination or reduction of the present tariff might be of some pecuniary benefit to the ultimate consumer in this country, it is clear that that ultimate consumer will not be of that class which it is the purpose of modern legislation to relieve from the harmful effects of the present high cost of living. If in spite of all that has been said here and elsewhere, the policy of the dominant majority be that only such tariffs shall be assessed as are necessary for the collection of revenues to defray the expenses of government, it is well to take note of the fact that even from this purely utilitarian standpoint a reduction or cancellation of the tariff on toys would be inadvisable. For during the first two of the three years when the tariff on toys had been reduced to 25 per cent ad valorem the gross quantity of imports was less than under the higher tariff; so that the revenues were reduced both positively and relatively. For the last year the imports, in anticipation of an increase in the rate, were, of course, considerably larger. In support of this brief we have filed two copies of Playthings-one the issue for February, 1912, and the other the issue for June, 1912. This last number is called the American toy number, and a glance through its pages and advertising matter will clearly disclose the nature and character of the industry as it exists to-day. This is a monthly publication devoted to toys, dolls, games, and like subject matter, and was first published in 1903, when the toy industry began to take a prominent place among American trades. The size and character of this magazine is indicative of the growth and development of the industry at the present time. There is also submitted a list of the concerns which have from time to time advertised in this publication. All of these concerns urge upon this committee the continuance of the present tariff. Submitted as a part of this brief are catalogues and numerous letters to this committee from American manufacturers of toys. These catalogues evidence the degree of perfection which this industry has reached, the high grade of toys manufactured, the skilled labor and machinery employed, and the large investment of capital. The attention of this committee is particularly called to the black penciled portions of the letters of The Ives Manufacturing Corporation, the A. Schoenhut Co., Mitred Box Co., and M. H. Christensen & Son Co., submitted herewith. It is respectfully requested that a short period of time be allowed for the submission of additional letters. This brief is submitted not only on behalf of all the manufacturers whose letters are attached to the exhibits, but also on behalf of numerous other manufacturers as well; and, in general, on behalf of all domestic toy manufacturers. Dated New York City, January 28, 1913. ALBERT T. SCHARPS, (For American Toy Manufacturers.) PARAGRAPH 431-TOYS. SCHEDULE A. Value of imports of dolls and toys. From Statistical Abstract of the United States, published 1907 by Bureau of Statistics: From Commerce and Navigation of United States, 1912-13: 2,923, 982 3,830, 311 4,023, 670 4, 232, 074 4,977, 389 4, 964, 457 5,887, 863 6, 993, 561 From Thirteenth Census of United States, Bulletin "Manufactures: United States": 4,869, 097 6,585, 781 7,964, 835 7,893, 582 [From publication of imports of merchandise, years ending June 30, 1908-1912, p. 361, now in form of proof sheets at Department of Commerce and Labor, Bureau of Statistics.] PARAGRAPH 431-TOYS. SCHEDULE D. Exports of toys and dolls. [From Commerce and Navigation of the United States for year ending June 30, 1911, and subsequent publications of the Department of Commerce and Labor.] 431. Dolls and parts of dolls, doll heads, toy marbles of whatever material composed, and all other toys, not composed of china, porcelain, parian, bisque, earthen or stoneware, and n. o. s. p. f. [Tariff Handbook (1913). Compiled by Daniel E. Roper, clerk to Ways and Means Committee.] Schedules A and C represents toys and dolls im 1 The difference between these figures and those on ported not for consumption, same having been placed in bond. Following are the letters mentioned above: The WAYS AND MEANS COMMITTEE, NEW YORK CITY, January 28, 1913. House of Representatives, Washington, D. C. GENTLEMEN: As a manufacturer of American toys, as well as representative of a number of toy industries for the past 25 years, and having been closely associated with its growth, I can speak with some degree of knowledge as to the causes of the present state of success which has been made by manufacturers engaged in the making of dolls and toys in this country. In 1885 the writer of this letter became associated with one of the largest houses in this country engaged in the importing of dolls and toys from foreign countries. The American industry at that time was almost unknown and of small importance. Most of the toys then came from abroad. Since then the condition has greatly changed year by year and steadily advancing, until now the largest part of the toys sold in this country are made at home. This institution is engaged in the sale of American toys only, and advertises the "American toys for American children." The condition as it is to-day could not have been brought about without a necessary protective tariff to enable home manufacturers to compete with the cheap child labor and other unsatisfactory conditions as engaged abroad, and which is explained fully in the brief submitted to your honorable body by counsel. During the Cleveland Administration the duty on dolls and toys was reduced from 35 to 25 per cent under the Wilson bill, and at that time the writer was engaged with the aforesaid large importing concern. The change in the tariff, however, did not PARAGRAPH 431-TOYS. affect the selling price of the merchandise in any degree. The only change noticeable was that the difference in the price was put into the article; and, as an example, a kid-body doll 16 inches long, under the 35 per cent duty, was sold at 25 cents retail, and at the reduced duty of 25 per cent a 174-inch doll of the same character and material was sold at 25 cents retail. This also applied to toy horns, a 16-inch horn being sold at retail for 10 cents under the 35 per cent duty and an 18-inch horn being sold for 10 cents under the 25 per cent duty. This condition was generally understood and remarked upon by importers as the facts existing. It is therefore evident that a reduction in the tariff of this commodity would in no way benefit the people at large, but, on the other hand, would seriously affect the home manufacturer engaged in the making of these lines, as the necessary protection being removed would place him in a position where he could not compete with the foreign manufacturers. This institution is engaged in a business where we represent and advance numerous small manufacturers of toys, and who during the season come to our office for payment of their shipments as often as once a week, so as to have the ready money for their weekly pay rolls. These makers in a large number of cases are small operators with little capital, working hard for a livelihood, and a change in the tariff would materially affect such manufacturers as these. In behalf of ourselves as well as these manufacturers, whom we represent, we ask that it be recommended that no change be made in the present tariff on toys. We respectfully submit this letter, together with a quantity of catalogues and circulars describing the various manufacturers whom we are selling agents for. Respectfully, yours, BAKER & BENNETT Co., THE M. F. CHRISTENSEN & SON Co., The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. HONORABLE SIRS: In connection with the matter of the revision of the tariff on imports now under consideration and investigation, we desire to call your attention to the necessity of tariff protection for our business on account of our very much greater manufacturing costs over that of the German manufacturers with whom we have to compete, and although our costs for material are also higher, the principal cost of our goods is that for labor, wages paid in the German glass-marble industry being as per copy of letter inclosed, which was addressed us in reply to our inquiry by American Consul General Frank Dillingham, of Coburg, Germany, under date of August 12, 1912. Our own labor costs are as follows: Adult male marble makers, $4 per day of 8 hours, $24 per week. marble packers, $1.75 per day of 8 hours, $10.50 per week. Minor female In the face of the sharp competition from abroad this industry can not long continue without tariff protection. Thanking you for the courtesy of careful consideration of the facts we are submitting, and hoping for action favorable to the continuation of our business, we remain, Respectfully, yours, THE M. F. CHRISTENSEN & SON Co., AMERICAN CONSULAR SERVICE, The M. F. CHRISTENSEN & SON Co., AMERICAN CONSULATE GENERAL, Marble Manufacturers, Akron, Ohio, U. S. A. GENTLEMEN: In reply to your inquiry of July 22, 1912, you are advised that the following wages (in American money) prevail in the glass-marble industry in this (Thuringian) part of this consular district, namely: Day adult marble makers, $4.76 to $6.85 and $7.14 per week by the job of 12 hours per day; night adult marble makers, $5.43 to $5.71 per week by the job of 10 hours PARAGRAPH 431-TOYS. a day; tube pullers, $4.76 per week by the job of 8 hours a day; tube blowers, $8.33 per week by the job of 8 hours a day; minor female marble packers, $2 per week by the job of 10 hours a day; minor female marble grinders, $2.57 to $2.86 per week by the job of 10 to 11 hours a day. The exports of marbles to the United States in 1908 carried a value of $14,494.95; in 1912, $7,227.74. No glass castor balls are exported through this consulate general. Prevailing prices of glass marbles to purchasers in the United States are about 1 mille glass marbles, all fine No. 1, 6.50 marks ($1.55); 1 mille glass marbles, all fine No. 2, 8.80 marks ($2.09); 1 mille glass marbles, all fine No. 3, 12.50 marks ($2.98). I am, however, unable to give you the cost of manufacture aside from the wages paid and above given, nor the cost of transportation to America. Yours, truly, F. DILLINGHAM, American Consul General. MITRED BOX Co. (INC.), The CHAIRMAN WAYS AND MEANS COMMITTEE, New York, January 27, 1913. House of Representatives, Washington, D. C. DEAR SIR: We understand that there is now on foot before your committee a movement to reduce the tariff on toys. In such a movement we are vitally interested, for the reason that we have undertaken the manufacture and marketing of an article that to-day constitutes the chief item of the toy industry, namely, that of making a fully jointed doll with movable eyes, an article never before made in the United States. To produce such an article in competition with the doll imported from Germany, the home of the world's doll industry, has been no small task. It required endless experimentation, the outlay of considerable capital, and now, when our efforts have been crowned with success, in spite of the great obstacles we had to overome, just now when we are so far advanced as to put our goods on the market, any prospect looking toward a reduction of the tariff on toys is a matter of grave concern to us. A fair estimate of the capital we have already invested in the making of our doll puts the sum at $50,000. A like sum would inevitably have to be invested if we remain undisturbed and able to further develop our plant, to meet the demand that already exists for our goods. We employ at present about 150 persons, a number that will rapidly rise to a higher one in our establishment, to say nothing of the fact that, once we have established the feasibility of doll production in America in competition with Germany, a task hitherto thought impossible, others are bound to take up the work, and a new industry in this country will result. Aside from the specific article we are producing, it will be well to consider the doll industry as a whole, such as it exists in America. The public can to-day purchase American-made dolls from 10 cents up. That industry, in so far as it has got a foothold, has been built up in this country under enormous difficulties and in the teeth of the most destructive competition conceivable. It could only have been done under the shield of a protective tariff. It can only be maintained under that shield because still too undeveloped to be able to exist under a condition of unrestricted foreign competition. And yet, though still in its infancy, there are possibilities of the investment in the doll industry in this countryof many millions of dollars, plus the many more millions that are already invested in the entire toy industry. These investments, our own included, we consider seriously menaced, if not for the most part hopelessly lost, should there be a reduction of the tariff rates on toy imports. We know that so far as we are concerned it would be impossible to exist were we at this time to encounter unaided the competition of the highly developed and powerful doll industry of Germany. We respectfully request that our interests and our argument on behalf of these interests be given earnest consideration, both for the sake of the people who have invested their funds in our establishment and for the sake of those who have found employment therein and thereby an opportunity to earn a living. We remain, Respectfully, yours, MITRED BOX Co., |