PARAGRAPH 431-TOYS. THE IVES MANUFACTURING CORPORATION, The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. GENTLEMEN: The following brief statement may be of interest to you in connection with the tariff problems which you have to solve, and a careful perusal of the facts, all of which can be substantiated, we hope will enable you to appreciate the position in which we are placed as to the manufacture of a product which has grown more in favor each year with the American buying public. Our business on the mechanical railways started in a small way in 1900, and at that time met with almost a failure; but persistence on our part and radical changes in construction brought it more into favor during the two or three years following. Another radical change in construction brought it rather more into competition with the foreign product, which, at that time, was not as substantial nor as well made as it is at the present time, and by our efforts and constant improvement we not only raised the standard of our own goods, but were the means of raising the standard of all imported articles of a similar character. It was predicted by many that goods of this character could not be successfully manufactured in the United States, but we have demonstrated that it can be done. We have now a very nice business established, and our product enjoys considerable popularity. We are frank to confess that the German manufacturers do not appreciate our efforts and the last two years have been offering extraordinary values in order to take business away from us. We have had to protect ourselves as best we could. The means adopted was that of publicity work. This, as you may know, is very expensive, and we spent large sums to keep our product in the minds of the American buying public. All of this has rendered the net returns much smaller than that ordinarily received from manufacturing concerns doing a corresponding amount of business. We employ 75 hands which are more or less skilled in work of this character, and during the last six months of the year, the number is increased to 130. A large amount of machinery and dies are also necessary to produce our goods. Three years ago we added electricity to our lines, so that we manufacture both the electric and mechanical railways. You will note by looking through our catalogue that we make a large variety of accessories and equipment, all of which go to make a complete railway, and we feel that these items, when handled by a small boy, act more or less as an educational feature. Our business has been built up under the present tariff rate, and we know that if you were to make a careful perusal of our books and note the annual statements they would prove to you conclusively that we were none too well protected. As we understand that there would be no chance of any raise in the tariff, we take this means of addressing you with the hope that you can see your way clear to at least have the tariff remain as it is. Even so, we will have to resort to all means to hold our trade against the ever increasing German invasion. Do not take it that we fear competition on an equal basis. In fact, we court it, as it is the stimulant of all business, but it is hard to meet it when handicapped. The writer of this letter is willing to bring books and statements before your committee, but would, of course, hesitate about doing so in an open hearing. The representative of the American toys industry will tell you other important facts concerning this branch of business, which we know will be of interest to you in many respects. The miniature railway industry of this country, which is showing rapid growth, would be more seriously affected by a change of tariff than some other items. At the same time, we are not offering this suggestion with the thought that we want more than is our due. We hold ourselves in readiness to meet any call you may make upon us in the way of further data or explanation. THE IVES MANUFACTURING CORPORATION, H. C. IVES, Treasurer. Yours, truly, THE A. SCHOENHUT CO., The WAYS AND MEANS COMMITTEE, GENTLEMEN: We are manufacturers of toys and novelties. Our business was started in a very small way by Albert Schoenhut (now deceased) 41 years ago. We 78959°-VOL 5—13- -35 PARAGRAPH 431-TOYS. can assure you that it was uphill work in the face of the strong German competition, and final success was only made possible because of the United States tariff on toys, which was never too high. Even now, on account of the ever increasing cost of material and labor in this country, we feel the German competition very keenly and steadily encroaching on our business, decreasing our sales materially with the present rate of duty in force. Furthermore, the Japanese are already deeply interested in the toy business, and even with the present tariff protection of 35 per cent will before long raise havoc with American toy industries and should the tariff be reduced it certainly will mean ruin to many of our toy industries that were built up after many years of the severest per severance. Our business represents a large proportionate investment of again half as much as the amount of annual business done, which is due to the bulky nature of toys requiring large storage capacity and a great variety of special and expensive machinery, tools, dies, etc., to produce the various lines of our products. To reduce the present United States tariff on toys would mean the next thing to ruin to our business. We pray you, honorable gentlemen, in view of the above-mentioned facts, not to reduce the present rate on toys. Hoping you will give this matter your favorable consideration, we remain, THE A. SCHOENHUT CO., A. F. SCHOENHUT, President. E. I. HORSMAN CO. (INC.), Mr. DE WITT C. BAKER, In care of the Baker & Bennett Co., City. New York, January 28, 1913. MY DEAR MR. BAKER: With reference to our opposition as manufacturers to any decrease in the tariff on toys, I would like to offer a few facts relating to the manufacture of dolls in which our firm is deeply interested. Only four or five years ago, when we began the manufacture of unbreakable dolls in America on a considerable scale, there was practically no such thing as an American doll industry, although we had been manufacturing rag dolls on a small scale for a dozen years or more previous. The fact that we were able to offer dolls with unbreakable heads made by a special process, enabled us to make our start even although our first attempts were comparatively crude. The teaching of experience and repeated improvements in method and installments at large expense of special machinery have now enabled us to make a line of dolls, which, with the aid of the present duty, enables us to find a market for the product of a good-sized factory, and we believe that under the continuance of the present rate of 35 per cent duty on dolls, we can look forward to a gradual increase in the production of these American dolls. We are frank to say, however, that were the duty of 35 per cent to be reduced even to 25 per cent, this budding doll industry in America would be crushed at once, since we could not hope to overcome by special machinery in this line the advantage which Germany holds by its cheap labor. It must be remembered that the most essential operations in doll making are necessarily handwork. Japan must also be regarded as likely to be a dangerous competitor in all classes of toys as well as dolls should the present duty be modified. Japanese are already making such articles in our line as baseballs of the cheaper grade, which despite the duty are better than anything we can make here at an equal price. American manufacturing in the toy field generally has been slowly but steadily growing to the dimensions of a modest but healthy industry under the present 35 per cent duty, and there would seem every reason for letting it continue its present nonmonopolistic growth. Very truly, yours, E. I. HORSMAN Co., PARAGRAPH 431-TOYS. The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. THE KENTON HARDWARE Co., GENTLEMEN: It has been brought to our attention that there is a movement on foot by certair importers of toys, who are not manufacturers and not financially interested in the manufacture of toys in this country, who expect to present a petition to your committee for a reduction on present rate of tariff on toys. We most emphatically protest against any reduction in present tariff rate on toys. Foreign manufacturers, principally in Germany, copy American made toys, and send them over here, and place them on the market at prices that the American manufacturer can not meet. Besides, toys imported into this country, principally by Germany, are such large values and offered at prices that the American manufacturer can not meet. They are able to place their production in this market at a price, including present tariff, which, if met by American manufacturers, would mean their financial ruin. The imports are increasing annually, whereas the production on toys of domestic manufacture has not been increased, due to the total volume of business that we are able to do on domestic toys, being reduced on account of inroads being made into the total volume of business by toys that are imported, notwithstanding the present tariff rate. If there should be any change in the tariff rate, we believe that in justice to the American manufacturer, the tariff should be raised instead of reduced. Trusting that your committee will give this matter the serious consideration it deserves, and see that home production is protected by maintaining the present tariff rate, for which we thank you in advance, we beg to remain, Yours, very truly, THE KENTON HARDWARE Co., L. S. BIXLER, President. THE WILKINS TOY Co., Keene, N. H., January 27, 1913. The CHAIRMAN and MemberS WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. GENTLEMEN: Regarding the import duty on toys and its effect upon lines which we manufacture: we beg to state our position briefly as follows: We have made for 20 years cast gray and malleable iron toys, and our business on same increased from year to year until 1907 and from which date there has been a substantial decrease, and we understand there has been a corresponding decrease in the total amount of these goods made in the United States. Three important concerns have retired from the manufacture of iron toys in recent years, two of which lines are entirely off the market and one partly reestablished by new interests. We do not know that there is any direct foreign competition in iron toys, but we have been informed by our salesmen that imported sheet-metal toys have replaced these goods among the trade and under a continuation of the present tariff schedule the prospective conditions for the manufacturer of iron toys are not pleasant to contemplate. About 14 years ago we introduced a line of spring motor automobile toys to retail for $1 and $1.50, and later brought out two numbers to retail for 50 cents. We have endeavored to develop lower-priced goods, but as yet have been unable to create anything which compares favorably with imported values. We are absolutely unable to meet foreign competition on low-priced mechanical toys, but thus far we have enjoyed a limited volume of business on better goods, although at a small margin of profit. We are the only manufacturers in this country making a line of automobile floor toys, so far as we know. Others have entered the field and withdrawn after a year or two and which is an indication that we have given a great deal of thought to efficient methods in order to maintain our position. In your consideration of the difference in domestic and foreign labor costs, we trust you will go beyond that which enters directly into production. We respectfully invite your attention to the skilled labor required for making dies and tools necessary for the production of sheet-metal toys. The higher price paid here for skilled toolmakers is in itself a severe handicap for American manufacturers. It means in this country a large investment for tools and a rapid depreciation to meet each season. And in addition to this is the higher cost of executive and clerical service and other items which enter into overhead expense. PARAGRAPH 431-TOYS. We believe the present tariff does not properly protect the manufacturer of metal toys and we believe the increasing preponderance of imported toys which is particularly evident during the holiday season should furnish sufficient argument against any reduction in the tariff rate on these goods. Respectfully submitted. THE WILKINS TOY Co., By H. T. KINGSBURY. LEO SCHLESINGER & CO., New York, January 28, 1913. Mr. DE WITT C. BAKER, 643 Broadway, City. DEAR SIR: Answering yours of the 23d, we inclose our check for $10 toward defraying expense of counsel, and have sent you herewith three of our catalogues, and in the brief of the counsel would like you to make use of the following: We would ask you to refer to pages 31 to 38. This is a class of goods that is only made in Europe, and we are the only manufacturers in this country. We have invested in this department about $60,000, and the difficulty we have to compete is the great difference in prices paid in Europe for labor, as they pay the same in marks that we do in dollars, besides the difficulty we have in getting the proper artists to do this work. The committee have surely had the lithographers before them regarding the great difference between Europe and this country in lithography, and with the duty now on this class of goods it is hard to compete with Europe, as they are imported to a very large extent. We can not sell these goods at the same price as the imported goods, and can only sell them to such houses that do not go abroad and must buy in this country, as their purchases are not large enough to warrant the expense of purchasing abroad. On this class of goods there should be the same protection as the lithographers have. The only difference between their protection and ours is that we lithograph on tin while they lithograph on paper. If there should be the slightest reduction on this class of goods we might as well close this branch, as we should never be able to sell this class of goods should the duty be lower. We should have an increase, but the tendency at the present to decrease, we prefer to have the duty remain as it is without any change. Yours, very truly, LEO SCHLESINGER & CO. THE SCHIEBLE TOY & NOVELTY CO., The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. GENTLEMEN: We are informed your committee are about to act on the advisability of a reduction in the tariff on toys, and in view of the conditions which exist between foreign-made toys and American products, we bitterly oppose any such movement as to any reduction, as it will surely be a great hardship on American industries to compete with cheap foreign labor, which the toy manufacturers know exists abroad in the manufacture of toys and novelties. We, as one of the great many toy manufacturers of this country, have been striving in the past years to overcome foreign-made cheap toys, whereby we could produce as good, if not a better class of toys, for our home markets, and at the same time be in a position to help our fellow workmen (the wage earner), who must be deeply considered in this matter, as in case a reduction is made in the tariff on foreign toys it is very clear to all toy manufacturers of the United States we would undoubtedly be compelled to reduce our present cost of manufacturing, which of course, would undoubtedly mean a cut in wages to the wage earner, and in view of the high cost of living, would be a great hardship on all employees in the toy industries of the United States. Under the circumstances, we trust your committee will not disturb the tariff on toys, and stand by the people and the good industries of the United States, who are endeavoring to make the United States the most prosperous and leading nation in the world. Yours, very truly, THE SCHIEBLE TOY & NOVELTY Co., PARAGRAPH 431-TOYS. The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. PETER F. PIA (Ino.), New York, January 24, 1913. GENTLEMEN: We herewith send catalogues, showing toys and novelties which we manufacture, and upon which we meet keen competition from the foreign manufac tures, even at the present toy tariff, on account of their low cost of labor in manufacturing. These toys require much labor and are made of mostly composition metals of lead, block tin, and antimony, and kindly ask that the present toy tariff be advanced, or at least upheld, in order to protect us and other domestic toy manufacturers. Hoping you will favor us in this matter, and thanking you in advance, we are, Yours, very truly, The WAYS AND MEANS COMMITTEE, PETER F. PIA (INC.). MYSTO MANUFACTURING Co., House of Representatives, Washington, D. C. GENTLEMEN: As one of the many rapidly growing toy manufacturing concerns in the United States, we believe that with ample protection we can continue the present increase in our business and offer employment to both skilled and unskilled labor to a very much larger number of men and women. Your cooperation can undoubtedly place the manufacturers of toys on an equal basis with our foreign competitors. THE MYSTO MANUFACTURING CO., Per A. C. GILBERT. Very truly, yours, The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. THE EMBOSSING CO., Albany, N. Y., January 24, 1913. GENTLEMEN: We understand that there is a movement on foot before your honorable committee for the purpose of obtaining a reduction in the tariff on toys and that your committee will give a hearing on the subject on the 29th instant. The lines manufactured by this company consist of alphabetical blocks for children, checkers, and dominoes, all made of wood. Similar items are imported from foreign countries under the classification of toys, and from the conditions found in our trade it is our belief that the present tariff does not afford more than reasonable protection. We are very much concerned over any prospect of a reduction in the present tariff on toys, because of the unusual conditions which obtain in trade on our lines. All our items, excepting one or two, which comprise an insignificant part of our business and are not to be considered, sell at very low prices which can not be changed without seriously limiting the volume of business which may be done, and in lines like ours volume is everything. The principal material entering into our products is lumber, and, as you undoubtedly know, the price for this has advanced very rapidly during the past few years, as have the costs of the other materials we use. In addition to these, wages have rapidly risen and, in connection with the advanced costs of materials, have increased our manufacturing costs very much, and on account of our inability to change the established selling prices we have each successive year been obliged to work on a smaller margin. The profit we earn is not excessive and only commensurable with the return which might reasonably be expected on our investment in the business. The present tariff, we believe, does not afford any more than reasonable protection to ourselves and other manufacturers of lines in the same classification as ourselves, and we solicit your earnest consideration of the facts herein in disposing of the question. Yours, very truly, THE EMBOSSING CO., |