PARAGRAPH 448-JEWELRY. try that once flourished in New York. The American factory was located on Long Island with offices in New York City representing a large investment of capital and employing many hands. But when the proprietor died a few years ago the business fell behind owing, it is said, to the incapability or lack of interest of his successors. At any rate, it is more than a coincidence that the German industry in this district was established about the time that the American plant was discontinued, and that to-day jewelry boxes are being shipped by this firm to the same address in New York City at which was located the offices of the American factory." We also understand from a very reliable source that one of the large manufacturers of boxes in the East has a very large factory or factories in Germany and imports very large quantities of boxes annually. This will prove again that they can not be produced here in competition with German labor. Can you tell me who is benefited by such importation? Writer can only see that the importer is the only one that derives any benefit, while if the duty would be increased it would give employment to thousands of our working people, who are the sufferers. We think that it would be only a matter of justice to the American manufacturer to put the duty at 75 and 80 per cent ad valorem, respectively, for leatherette and velvet-covered cases, together with a strict appraisal at port of entry. Should you desire any further information of a detailed nature, we shall be glad to furnish it promptly. Thanking you for any efforts you may put forth in this matter, we are, WARNER JEWELRY CASE Co., BRIEF OF NEW ENGLAND MANUFACTURING JEWELERS AND SILVERSMITHS' ASSOCIATION. GENTLEMEN: The undersigned is an association chartered under the laws of Rhode Island, and as its name indicates is composed of members engaged in the manufacture of jewelry and silverware. We have requested permission to appear before this committee on the paragraph relating to jewelry in the sundries schedule, but we are also very seriously interested in the residuary clause of the metal schedule, owing to the many decisions rendered by the Board of General Appraisers and the courts, through whose interpretation of the language of paragraph 448 a very large proportion of the articles such as we make now pay duty as manufactures of metal under paragraph 199 instead of under the jewelry paragraph. A glance at paragraph 448 would convince the average reader, unskilled in the technicalities of tariff construction, that the rates in this paragraph were intended to apply not only to all jewelry, but to such articles as silver novelties, vanity cases, powder boxes, etc., for in the paragraph appears the following provision: "All other articles of every description ** *composed wholly or in chief value of silver * * * * and designed to be worn on apparel or carried on or about or attached to the person." This was the construction followed by the classifying officers until it was upset by the Board of General Appraisers, and to-day, through the decisions referred to, not a single article of this class is assessed for duty under this provision. In fact, under the present practice no article, which is at all utilitarian, although chiefly ornamental, is assessed under paragraph 448, all of them falling into paragraph 199 as manufactures of metal, unless commonly or commercially known as jewelry. In our brief filed in connection with paragraph 448 we will point out how this provision has been bereft of all force by one decision by the Board of Appraisers holding that nothing can come within it that is not jewelry and by another decision of the customs court holding that nothing can come within it which is jewelry. The jewelry paragraph has always been a source of difficulty in the various tariffs, and in almost every act in recent years its provisions have been so warped and twisted in construction that it might be taken for granted that, however clear the present paragraph may be apparently drawn up, a way will be und to cut out from its provisions many articles which should belong there, causing them to fall within the basket clause of the metal schedule. PARAGRAPH 448-JEWELRY. It is in order that such articles should pay a fair rate of duty, even under the metal schedule, that we suggest a special residuary clause for the manufactures of the three precious metals used in the jewelry trade-i. e., gold, silver, and platinum. Gold in bullion is free, as is silver. Platinum also is free in every crude form, as well as in the form of crucibles and other apparatus used chemically. Aside from these articles, practically every manufacture of gold, silver, or platinum is a luxury, and so different from the ordinary manufactures of metal that it is a matter of surprise to find them provided for with such articles as manufactures of steel, iron, lead, brass, etc., in paragraph 199. It is extremely difficult to conceive of any other article of gold, silver, or platinum which is not in the nature of jewelry or a luxury, and as such they should be differentiated and assessed at a higher rate of duty. We therefore suggest that the words "gold, silver, and platinum" be eliminated from paragraph 199 and that a new paragraph be inserted preceding it and reading as follows: "Articles or wares not specially provided for, composed wholly or in part of gold, silver, or platinum, wholly or partly manufactured, 60 per centum ad valorem.' It should be noted that the end sought would not be accomplished by merely omitting these words from paragraph 199 without inserting a new paragraph, since the words "or other metal" would include them. It is believed that the adoption of the rate suggested would result in increased revenues to the Government from a class of articles which, as luxuries, should properly be taxed. Respectfully submitted. NEW ENGLAND MANUFACTURing JewelerS JEWELRY NOVELTIES. Hon. OSCAR W. UNDERWOOD, A. STEINHARDT & BRO., Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: Your attention is respectfully called to paragraph 448 of the present tariff (1909). This paragraph, which is in fact a straight ad valorem one of 85 per cent and other rates, is written in the form of a compound one, and apparently so written for the purpose of misleading those not interested in the class of goods covered by itfor, when the tariff act was passed, the writer asked one of the Government officials who had been in attendance on the "committee" in charge of said paragraph why it was necessary to so word the paragraph, and in response was informed that if other industries knew that "the poor man's jewelry" was receiving a protection of 85 per cent there was a possibility of a demand by them for a like protection. Eighty-five per cent, as you are no doubt aware, is entirely too high a rate of duty to be assessed upon the class of merchandise enumerated by or covered under said paragraph 448, as is evidenced by H. R. 1438, Calendar No. 2, Sixty-first Congress, first session. The paragraph was published in a Providence jewelry organ early in the year 1909 and was not opposed as it might have been, as it seemed so ridiculous in its phraseology and rates that it was thought there would be little probability of its being seriously considered by either the House or the Senate. Representative Payne's committee apparently turned it down, but when it reached Senator Aldrich's committee he saw to it that his constituents (with whom the paragraph originated) were duly cared for. Again respectfully requesting your consideration of this paragraph, I am, Very truly, yours, EDWARD D. FLANNERY. N. B.-Another curious working of the present tariff was recently called to my attention. Aluminum forks under paragraph 154, "Forks and steels, finished or unfinished, if imported with handles of mother-of-pearl, shell, ivory, silver, nickel silver, or other metal than iron or steel, 14 cents each, and in addition, on all the above articles, 15 per cent ad valorem," pay between 600 and 700 per cent duty. This may be verified by reference to T. D. 30488. On the class of forks covered by that decision we have quotations of M. 10 and 12 per gross. PARAGRAPH 448-JEWELRY. BRIEF OF EDWIN HORRAX, NEW YORK, N. Y. Hon. OSCAR UNDERWOOD, Chairman Ways and Means Committee. NEW YORK, January 28, 1913. SIR: We wish herewith to protest against the present high tariff on several items known in the trade as notions; these are little necessities in life which are as staple as bread and butter, and we believe that the duty should be reduced on them; for instance, ordinary pins at present we are paying 35 per cent duty, and at this rate of duty the domestic manufacturers have absolutely no competition, as we can not figure near them with the imported goods, and the consequence of this high rate of duty has been that the domestic manufacturers have formed a combination, or so-called trust, and every mill has the same price list and discount on their goods, and furthermore will not allow an independent manufacturer to exist. On the glass-headed pins, which mostly come from Germany, the rate of duty on these is 45 per cent. I do not believe that there is or ever has been a glass-headed pin manufactured in the United States. As these goods are used in every household, it would seem that the duties should be reduced on this line. On ordinary wire hairpins we pay 35 per cent duty, and on account of the high duty it has absolutely stopped the importation of the cheapest class of goods, such as are put up in bulk and cabinets, as the domestic manufacturers are selling them a good deal lower than the cheapest German mills can manufacture them and pay this high rate of duty. On garter elastics the present duty is 60 per cent on the cotton covered and 50 per cent on the silk covered; some years ago, before this high rate of duty, we used to import large quantities of the cotton covered, but on account of this extremely high rate we are now unable to import any and if the present duty is continued on the silk it will only be a question of time when we will have to stop importing these as well; some years ago we used to import large quantities of cotton tapes, shoe laces, and similar staple articles which go into the notion line, but have not been able to import any for years, as the duties have been prohibitive, and under this high protective tariff the domestic mills would only turn out an inferior article at an extremely high price, as there has been no competition. Hoping that you will find time to go into the duties of the many hundred little items known as notions, but which are very necessary in every household in the country, we think that you will find that the duties can be materially reduced without seriously interfering with the welfare of the domestic mills, I remain, Yours, very truly, EDWIN HORRAX, Per J. C. HORRAX. BRIEF OF ALBERT BORGZINNER & CO., NEW YORK, N. Y. The COMMITTEE ON WAYS AND MEANS, NEW YORK, February 25, 1913. House of Representatives, Washington, D. C. GENTLEMEN: Your attention is respectfully directed to certain inaccuracies appearing in the brief filed by the Warner Jewelry Case Co., of Buffalo, N. Y., on or about the 22d day of January, 1913, in reference to the tariff on jewelry cases. First. The brief states that the present tariff on leatherette and velvet jewelry cases is 30 per cent ad valorem and 5 cents per pound. This is not the fact. The present tariff on paper or leatherette boxes is 45 per cent ad valorem and on velvet boxes 50 per cent. Second. It further states that the tariff on these articles was formerly 75 and 80 per cent. This is also contrary to the fact. At no time within the last 20 years, to the writer's knowledge, has the tariff on these articles been as high as at present. I have been engaged in the business of importing jewelry cases from England and Germany for more than 20 years, and now am engaged at No. 66 Nassau Street, in the city of New York, under the name of Albert Borgzinner & Co. In my 20 years' expe rience I have never known the tariff on these articles to be anything nearly as high as 75 and 80 per cent. In point of fact in all that time it has never been as high as at present. Third. The brief continues: "The duty now exacted does not protect the American manufacturer, and he is utterly incapable of competing with the German manufacturer," etc. This is again at variance with the fact and is without force. In spite of a tariff of 45 and 50 per cent on these respective articles manufacturers in Buffalo, in New York PARAGRAPH 448-JEWELRY. City, in Boston, and elsewhere are now well able to afford to sell their products cheaper than the imported boxes, for the following reason: The goods manufactured at these respective places are made by machinery. Exclusive rights to these machines, in the nature of a monopoly, are owned by three concerns in Buffalo and Boston. These machines can not be purchased. With these machines boxes are covered with leather, paper, or velvet without employing hand labor. The materials used in making these boxes, namely, velvet, leatherette, satin, board, etc., are mainly an importation of foreign manufacture on which a duty of about 50 or more per cent has been already paid. The only advantage that the importer can have, that I am aware of, may be in the lower cost of labor abroad. To my knowledge foreign labor is approximately 50 per cent less than domestic labor. Leather workers in the United States receive from $12 to $18 per week. In Germany they receive from 35 to 54 marks (about $8.50 to $13). Girls employed in the United States receive from $4 to $9 per week; in Germany they receive from 10 to 25 marks (about $2.50 to $6). The brief continues: "Writer can only see that the importer is the only one that derives any benefit, while if the duty would be increased it would give employment to thousands of our working people, who are the sufferers." Will a higher duty induce the manufacturers above described to employ hand labor and abandon their machines, or will it add another story to their profits? That the importer alone benefits by the present tariff I contend is wholly untrue. The Warner Jewelry Case Co., in its brief, ignores the fact that American manufacturers of boxes have been able to build up their business solely as a result of adopting the modern ideas and improved methods inaugurated by manufacturers abroad. Not only have the American manufacturers reduced the cost of production in this country by borrowing and adopting the ideas of foreign box manufacturers, but by improving upon those ideas they have still further reduced the cost of production in the United States to such an extent that the writer is ready and able to produce American-made boxes which compare and compete to advantage in every respect with imported boxes irrespective of the fact that a duty of 45 and 50 per cent, as the case may be, now exists. If under the existing tariff the American manufacturer can compete to advantage with the foreign manufacturer, what useful purpose can be served by disturbing the present tariff unless that purpose is to assist the manufacturers of machine-made boxes to a higher profit? What importance attaches to the statement that the importation of these boxes has benefited only the importer, may be judged from the fact that their importation has stimulated the entire box industry to larger efforts and has enabled jewelry stores, department stores, mail-order houses, and others to offer their jewelry, etc., in presentable, inexpensive boxes; and their ability to do this has materially aided and increased their business. This state of affairs formerly did not exist, and its beneficial influence was lost to the American trade until the dozing American manufacturers awoke to the fact that they could offer the goods they now offer. Thus indirectly a very large and substantial outside field of business, if affected by the importation of jewelry cases and the consequent increase in the number employed in that field, is a substantial and growing advantage to the American workingman. It is a significant fact that the Warner Jewelry Case Co. in its brief is silent with reference to the paper cardboard box industry. It will doubtless be of interest to fathom this silence. The tariff on these is the same as on leatherette boxes, and this is therefore a parallel case and illustrates the real situation with respect to the articles designated above to advantage. The fact is, the present tariff effectually prohibits the importation of paper cardboard boxes. Their cost abroad almost equals the selling price in the United States. Cardboard paper ring boxes may be taken as an instance. These, velveteen-lined, are sold in this country by the manufacturer for $1.65 per gross. The same boxes purchased abroad would cost in large quantities 5.75 marks per gross (that is $1.30), which with the duty and freight added would bring the cost up to $1.95 per gross. These, as I stated before, can be purchased from domestic manufacturers, even in small quantities, for $1.65 per gross, less a cash discount. It will thus be seen that a higher rate of tariff than the present rate on the articles mentioned would not benefit the workingman, but would benefit only the few manufacturers who employ machines and who now are, as the matter stands, in spite of the existing tariff, fully able to compete with foreign manufacturers and who now can, in point of the fact, materially undersell the foreign article. Respectfully submitted. ALBERT BORGZINNER, PARAGRAPH 448-JEWELRY. RESOLUTIONS OF COMMITTEE OF CITIZENS OF NORTH ATTLEBORO, MASS. NORTH ATTLEBORO, MASS., January 27, 1913. The COMMITTEE ON WAYS AND MEANS, United States House of Representatives, Washington, D. C. HONORABLE SIRS: In connection with the proposed tariff legislation at the coming session of Congress the Democratic town committee of North Attleboro, a committee elected by the Democratic voters of the town to promote the best interests of the Democratic Party, has instructed me to forward to you a copy of the following resolution passed by them on January 27, 1913: Whereas the customs tariff law is about to be revised by the United States Congress; and Whereas this committee recognizes that the welfare and prosperity of the town of North Attleboro is practically dependent upon its jewelry and silverware industries, which in turn are made possible only by an adequately protective tariff against the low-priced labor of foreign countries; and Whereas the committee has been informed and believes that even under the present rate of duty on similar goods, the imports are steadily increasing: Therefore, be it Resolved, That this committee record its disapproval of any reduction of duty upon jewelry, silverware, and kindred articles, and that it urge upon Congress the necessity of maintaining the present rates; and Be it further resolved, That the secretary of this committee be and he is hereby instructed to forward to the Ways and Means Committee of Congress, to the Representatives of this district, and to the United States Senators of this State a copy of this resolution. Dr. M. E. VANCE PROTEST AGAINST REDUCTION OF DUTY ON JEWELRY, SILVERWARE, ETC. NORTH ATTLEBORO, Mass., December 30, 1912. The COMMITTEE ON WAYS AND MEANS, House of Representatives, Washington, D. C. HONORABLE SIRS: In view of the proposed legislation on the customs tariff, the undersigned, who one and all supported the Democratic Party during the recent electoral campaign, take the liberty of asking you to use your good offices against any reduction in the rate of duty now levied upon jewelry, silverware, and kindred products, should such reduction be contemplated. As you are aware, the Attleboros practically owe their existence as manufacturing towns to the establishment and maintenance of the great jewelry and silverware industries, which are possible only under a tariff which will equalize the difference in the cost of labor and overhead charges between the United States and foreign countries. In these lines the difference is so enormous that even with the present duty of 85 per cent the competition has been exceedingly keen, and we are informed that even with the seemingly high duty the imports have greatly increased over those of preceding years. A reduction in the tariff even to a small degree would therefore mean greatly increased foreign competition, with consequent lessening of our output and a scarcity of work. It is a fact that under the construction put upon the present paragraph relating to our products, by which the duty has been reduced, whole lines of articles have been discontinued, and we greatly fear and believe that any further reduction will result in the curtailment, or indeed the actual closing down, of our factories, with enforced idleness and distress. It is unnecessary to point out to you how vital this matter is to us as workmen in these factories, and we urge you most earnestly to do your utmost to prevent any reduction in this duty. JOHN J. SOPER |