PARAGRAPH 451-LEATHER. The CHAIRMAN. So you had better suggest to the committee just what you want. Mr. BERNHEIM. How long may I have? The CHAIRMAN. If you want it printed, you will have to put it in by Saturday, but I will consider it if you will write me a letter about it any time in the next two weeks. Mr. BERNHEIM. All right, sir. PROTEST OF THE SHOE AND LEATHER ASSOCIATION OF CHICAGO, ILL. CHICAGO, ILL., January 20, 1913. To the honorable The Ways and Means Committee of the Congress of the United States, Washington, D. C. GENTLEMEN: The Shoe and Leather Association of Chicago, composed of manufacturers of shoes, leather, harness, belting, and leather goods, and dealers in leather, hides, etc., respectfully but emphatically protests against further reduction in the tariffs on leather, shoes and harness in the revenue bill now being drafted. The duties on our products were among the few severely revised downward in 1909. Sole, belting, and rough leather were lowered from 20 to 5 per cent; upper leather from 20 to 7 per cent; shoes from 25 to 10 per cent, and harness from 45 to 20 per cent. This was the most severe reduction of duties on manufactured products inflicted upon a staple industry in the history of tariff legislation. Attempts still further to narrow the slender margin of protection remaining would be inequitable and unjust. The small duties imposed by the existing law do not suffice to measure the difference between the labor cost of production at home and abroad, and further attacks upon us would be disastrous. We are not advocates of inordinate protective tariffs and do not oppose "revision downward" but desire to protest against invidious revision which singles out one industry for repeated reductions. Leather and its products are not controlled by trusts. There is severe competition in all parts of the country. Profits are small and the ultimate consumer is served efficiently and economically. Our duties, small originally, were reduced 60 to 75 per cent four years ago. In this we stand apart from every other industry. Injustice will result if our case is not disassociated from others and considered strictly upon its merits. All of which is respectfully submitted. SHOE AND LEATHER ASSOCIATION OF CHICAGO, C. W. STAFFORD, First Vice President, Committee. BRIEF OF JOHN W. PECHIN, PHILADELPHIA, PA. The CHAIRMAN Ways and Means Committee, JOHN W. PECHIN, Philadelphia, January 11, 1913. Washington, D. C. DEAR SIR: Inclosed you will find a brief which we hope you will consider, as we believe it to be a just and fair and true adjustment which should be made in Schedule N, sundries, paragraph 451. We know your committee wants to act justly in this matter, and if they feel that the brief has not fully enlightened them, we would be glad to send our representative to Washington to go before your committee and explain thoroughly as to the paragraph we have explained in the inclosed brief. Hoping you will make this change for the benefit of the industry, I am, Yours, very truly, JOHN W. PECHIN. PARAGRAPH 451-LEATHER. LEATHER BELTING. We beg to call your attention to Schedule N, sundries, paragraph 451: “Band, bend or belting leather, rough and sole leather, 5 per cent.' This paragraph has caused considerable litigation in the courts, and some of the cases are still pending. The paragraph should be changed to read: "Belting leather, sole leather, rough leather, in the whole hide or butt or bend form, 5 per cent ad valorem." The balance of paragraph 451, to the best of our knowledge, is a just and very fair protection to the manufacturers and laborers. Our reasons in the starting of this paragraph lie in the fact that importers are importing all kinds of leather into this country and calling same "band" and under the word "band" leather. We have questioned continually many leather tanners and manufacturers of leather, etc., on this subject and all declare they have never heard of “band” leather. The word "bend" was misplaced in that paragraph and importers are taking advantage of the fact and are bringing in many varieties of leathers, cutting them into bend form and bringing them in as "band" leather. The word "bend" does not mean leather, but does mean the trimming of a butt or hide. It means the part after the shoulder has been cut from the hide and the hide then split in half, each half being called a bend. Sole leather is mostly sold in bend form. The leathers these concerns are bringing in under the words “band" and "bend" are apron and picker leathers for worsted machinery. Prior to the importers taking advantage of the word "band" and "bend," there were being tanned in this country and manufactured about 50 to 60 per cent of these leathers. But since this change the tanners and manufacturers of these leathers in this country there is now about 20 per cent, and the importing of the same has grown to a very large extent, they gaining the difference. These apron and picker leathers should come in under the word "not specially provided for, at 15 per cent," and if you will adjust the paragraph to read as stated above they will come in under that wording, as there is at least 20 per cent more labor, etc., on apron and picker leather than on rough belting or sole leather. So that these leathers should be properly placed, Schedule Ñ, paragraph 451, should read as follows: "Paragraph 451. Belting leather, sole leather, rough leather, in whole hide or in butt or bend form, 5 per cent ad valorem; dressed upper and all other leather, calfskins, tanned or tanned and dressed, kangaroo, sheep and goat skins (including lamb and kid skins), dressed and finished, other skins and bookbinder's calfskins, all the foregoing not specially provided for in this section, 15 per cent ad valorem; skins for morocco, tanned but unfinished, 5 per cent ad valorem; patent, japanned, varnished, or enameled leather weighing not over 10 pounds per dozen hides or skins, 27 cents per pound and 15 per cent ad valorem; if weighing over 10 pounds and not over 25 pounds per dozen, 27 cents per pound and 8 per cent ad valorem; if weighing over 25 pounds per dozen, 20 cents per pound and 10 per centum ad valorem; pianoforte leather and piano-forte-action leather, and glove leather, 20 per cent ad valorem; leather shoe laces, finished or unfinished, 50 cents per gross pairs and 10 per cent ad valorem; boots and shoes made of leather, 15 per cent ad valorem: Provided, that leather cut into shoe uppers or vamps or other forms suitable for conversion into manufactured articles, and gauffre leather, shall pay a duty of 10 per cent ad valorem in addition to the duty imposed by this paragraph on leather of the same character as that from which they are cut." BRIEF OF A. TEPEL, NEW YORK, N. Y., ET AL. SCHEDULE N, PARAGRAPH 451. NEW YORK, January 21, 1913. PATENT, JAPANNED, VARNISHED OR ENAMEL LEATHER. Present rate, weighing not over 10 pounds per dozen, 15 per cent ad valorem and 27 cents per pound; weighing over 10 pounds and not over 25 pounds per dozen, 8 per cent ad valorem and 27 cents per pound (equivalent to 294 per cent ad valorem). Rate we propose, same as sole leather, 5 per cent, at least same as shoes, 10 per cent, or free, if shoes are to be free. PARAGRAPH 451-LEATHER. CALFSKINS TANNED, OR TANNED AND DRESSED. Present rate, 15 per cent ad valorem. Rate we propose, same as sole leather, 5 per cent, or free, if shoes are to be free. Why.-Revision should be same as sole leather or at least same rate as shoes. Raw material.-Hides, calfskins, and goatskins are free. Rate on sole leather made from hides is 5 per cent. Therefore on upper leather made from hides and calfskins the rate should be the same. Discrimination against American shoe manufacturer.-Shoes made from imported patent and upper leathers are admitted at 10 per cent. At the same price.-More shoes can be made from a certain amount of domestic patent or upper leathers than from the imported patent and upper leathers. Besides "Farmers' free list bill," to offset free shoes, proposed that shoe vamps and shoe uppers enter free. American shoe manufacturers would not be benefited because several hundred different lasts, patterns, and styles are used in the manufacture of shoes. Detrimental to American labor.-If practical, free shoe vamps and shoe uppers would curtail labor and deprive and injure the American shoe cutter and shoe fitter. Comparisons as to cost of labor.-The domestic article is acid tanned, taking not over one month to finish. The imported article is bark tanned, taking from five to eight months to finish. By difficult process, considerable more expense is required to make the rough or flesh side smooth of the imported article, whereas the domestic article is finished on the grain or natural smooth side. Revenue. The present rate more than protects; it excludes: Importations, patent leather, year ending June 30 1900. 1906. 1912. Importations, tanned calfskins, year ending June 30— 1899. $1, 270, 214. 00 197, 140. 80 160, 193. 00 285, 836. 00 188, 164.00 1905. 1912.. 129, 344. 00 Whereas fully 90 per cent of the above importations were used in shoes, domestic patent leather, during the same years, increased by over $25,000,000 annually. Over 99 per cent of patent leather used in the United States is American made. Also, during 1912, at least $50,000,000 worth of upper leather, made from calfskins, was used in the United States. About 99 per cent of upper leather made from calfskins was tanned in the United States. Important. Scores of original letters from American shoe manufacturers were sent former Chairman Payne, and should be on file, which favor a substantial reduction and substantiate most of the statements contained herein. Reciprocity. Imported patent leather and upper leather made from calfskins come mostly from Germany and France, who buy ten times more upper leather from the United States than they export to the United States. A. TEPEL, 30 Ferry Street, New York, N. Y. D. WALLERSTEIN, 34 Spruce Street, New York, N. Y. CHRISTMAN, WOLFENSTEIN & SHANAHAN, 39 Spruce Street, New York, N. Y. NEW YORK, N. Y., February 4, 1913. ADDITIONAL OR SUPPLEMENTARY BRIEF. Patent, japanned, varnished, or enamel leather.-Present rate: Weighing not over 10 pounds per dozen, 15 per cent ad valorem and 27 cents per pound; weighing over 10 pounds and not over 25 pounds per dozen, 8 per cent ad valorem and 27 cents per pound. Rate we propose Same as sole leather, 5 per cent; at least same as shoes, 10 per cent, or free if shoes are to be free. Equivalent to 294 per cent ad valorem. Calfskins tanned, or tanned and dressed.-Present rate: 15 per cent ad valorem. Rate we propose: Same as sole leather, 5 per cent, or free if shoes are to be free. PARAGRAPH 451-LEATHER. Consumption.-Fully 95 per cent of the importations of both of these articles is used exclusively in the manufacture of shoes absolutely and positively. Free shoe vamps or shoe uppers or any other forms used in the manufacture of shoes will not benefit the American shoe manufacturers or consumers. The combined importations year ending June 30, 1912, of shoe vamps or shoe uppers or any other forms made of patent, japanned, varnished, or enamel leather and calfskins tanned, or tanned and dressed, amounted to only $3,969. Joker: Rates recommended in brief submitted to the committee by the National Association of Tanners of the United States, that on flesh-side finished patent leather the duty should be 4 cents per square foot and 10 per cent ad valorem. This rate is equivalent to about 25 per cent ad valorem. There is no grain-finished patent leather imported into the United States. A. TEPEL, 30 Ferry Street, New York City. D. WALLERSTEIN, 34 Spruce Street, New York City. CHRISTMAN, WOLFENSTEIN & SHANAHAN, 39 Spruce Street, New York City. BRIEF OF THE GEORGE A. SHEPARD & SONS CO., BETHEL, Hon. E. J. HILL, Washington, D. C. CONN. BETHEL, CONN., January 24, 1913. DEAR SIR: We herewith submit a sample representing the labor of preparing, tanning, and finishing a complete hat sweat band. There is no trust in this product, and the fierce domestic and foreign competition holds the profit at a low basis. There are large and increasing importations of hat sweat leather, both in the finished skin and in the sweat bands, under the present rate of duty. The wages paid on this work in foreign countries range from 50 cents to $1.50 per day, and the corresponding wages in this country on the same product range from $1.25 to $3 per day, which is none too much for decent American living. Any lowering of the selling price of imported hat sweat bands must disastrously affect the wages of labor, if an effort is made to retain the business in this country. An increase of importation not only means lower wages in the face of present high living costs, but it means a decreased amount of obtainable work and great hardship will be imposed by loss of business by any decrease of the rate of duty. We submit that as a foundation principle, there should be "an American living wage," not a European living wage, derived from all goods produced in America. On account of the strong domestic competition no additional cost would be put upon hat sweat leather bands now made in this country if the duty were raised, but an advantage would accrue to the country by an increase of business if a large part of the sweat bands now imported were manufactured in America. A working knowledge of conditions as above stated is convincing that the present duty is so low that the American workmen and manufacturers have to surrender too much of business and work to the man across the water. Purchases made in America helps America. Money spent in Europe hurts American workingmen and manufacturers. We respectfully ask, for our employees and ourselves, that we be permitted to continue the business upon an American (not a foreign) standard of living, and that the present rate of duty be retained. We indorse the "brief" upon leather submitted to Hon. Oscar W. Underwood, chairman of the Ways and Means Committee by the National Association of Tanners. Respectfully, yours, THE GEO. A. SHEPARD & SONS Co., H. L. SHEPARD, Treasurer. PARAGRAPH 451-LEATHER. BRIEF OF NORMAN H. PARKE, GENERAL MANAGER OF THE BLACK HORN LEATHER CO. Hon. Oscar W. Underwood, chairman, and gentlemen of the Ways and Means Committee, House of Representatives. GENTLEMEN: Anent the subject of duty on chamois skin now fixed at 20 per cent ad valorem under the provision of the tariff act 1909, section 451, your committee is respectfully urged that there be no reduction on this item under the proposed tariff legislation. Submitted herewith are some reasons in support of such a request. The duty on chamois leather now fixed at 20 per cent under the existing law provides a margin under which it has been possible for chamois manufacturers after years of constant efforts to systematize the business, and with the assistance of machinery designed almost entirely by ourselves to show a margin of profit on our production of genuine chamois leather. This satisfactory result has been reached within a comparatively short period of time, and should the tariff be removed or materially reduced it would destroy the fruits of our efforts and deprive the workmen of our shops the opportunity of continued employment in lines with which they have become familiar and where they are most efficient. On the basis of 20 per cent duty, if no radical change should occur in the raw-skin market it would enable the Black Horn Leather Co. to continue its manufacturing as the largest industry in Susquehanna County, Pa., but it is not apparent how it would be possible for us to equalize conditions whereby the business might be continued should there be a reduction of this rate of duty. Chamois leather, unlike other commodities with which it is classed, is a finished article. It is not alone a tanned but it is a manufactured article, and is as ready for the market as a complete pair of shoes. It has its place, without the necessity of additional labor, in nearly every well organized household, and therefore should not come under the head of flat leather, but as an article of manufacture from leather. As the tariff has stood on a 20 per cent basis ad valorem there have been tremendous quantities of chamois imported into this country annually, and part at 10 per cent under our market, which is an absolute proof that 20 per cent ad valorem duty on chamois is not only not excessive but is not sufficient to properly protect the manufacturers of genuine chamois, tanned leather in the United States, and should be increased to 30 per cent ad valorem. This has been further proved in past history. Numerous efforts have been made to compete in this line with the foreign markets, and in nearly every case the industry has proved an absolute failure, for the all-important reason that the comparative wages paid outside of the United States are not more than one-third of the average wages paid for labor in this country; and our labor, in comparison with other manufacturing industries in this country, is at the minimum rate. As before stated, if it were not for the careful arrangement of labor and assistance we have been able to derive from machinery, we would be unable to continue the business. In other words, we are handling our stock at the minimum cost, and under this proper development we have but a small margin in meeting, as we do, the market price of the imported chamois, and at times the European interests are able to manipulate the market, so that under the 20 per cent duty ad valorem we are forced to handle large quantities of stock at cost and at less than cost of production. It is clearly a case dependent upon a scale of wages, which scale if placed on a par with the European wage scale, which is impossible, would permit us to manufacture at as low a figure as the European manufacturer. All sheepskins suitable for chamois leather (the term chamois for a number of years having been a technical term illustrative of the method of tannage) are imported from foreign countries. The native stock is not suitable for chamois leather, owing to the climate or some other cause which we are unable to define. In the manufacture of chamois leather it is necessary to split off the outside of the pelt, namely, the grain or skiver of the pelt, leaving a fibered surface on both sides of the raw material to be put into chamois, and the grain or skiver is not chamois tanned, but is bark or extract tanned, and has a definite market value for bookbinding, pocketbook, hat-sweat, and other light leathers. The native stock is tanned and manufactured in the full pelt as taken from the sheep, as it is impossible to split same, owing to its character, and realize the necessary value for the grain and have left a flesher for chamois that would be suitable for chamois. Not only would the flesher be of inferior and in every way undesirable value for chamois, but from the original nature of the pelt the grain or skiver is porous, and when split the pores of the skin, being deep, go clear through the grain, or, in other words, cause pinholes in the grain, making the grain or skiver of poor value. Summing up these two values in flesher and in skiver, we are unable to use the native stock, |