PARAGRAPH 452-LEATHER BAGS, ETC. We are not only handicapped as regards the European product by reason of the fact that European labor cost is at least 60 per cent less on boots and shoes than it is in this country, but further by the fact that a great number of articles, raw material or manufactured articles, used in making shoes pay import duties ranging anywhere from 15 to 100 per cent; that the foreign manufacturer can purchase these articles cheaper than we can because he pays no duty on them directly or indirectly. The foreign manufacturer has an advantage over the American manufacturer in that he is not only on the same plane with the American manufacturer as regards leased machinery, but that if he so wishes he has a further advantage in that he can buy his machinery outright, if he so desires, which American manufacturers are prevented from doing owing to the large duty imposed on machinery and the tying clauses in the leases of the United Shoe Machinery Co. They are further handicapped by reason of the fact that the overhead charges are larger in this country than they are in European factories; that there is more power used and the depreciation is greater. The first result of a reduction of the tariff on boots and shoes would be there would be importation from Europe and from Canada, which would increase very fast. Every pair of foreign-made boots and shoes sold in this country would mean that much reduction on home manufactures, and would therefore mean less employment for the shoe workers. If American factories wished to compete they would be obliged to cut their costs. It is not possible to cut the profit, as that is already as small as a business can be conducted at safely. If costs are to be reduced, the natural point at which the cut would be made would be in the labor cost, for the material cost would not be any less, nor could materials be purchased for any less than they are at the present time, and if the price of labor were reduced it would immediately result in labor disturbances and strikes. This simply indicates in a short way the main points of argument in favor of a retention of duty on boots and shoes of at least the present schedule. Similar arguments will no doubt be presented by our committee in amplified form before the Ways and Means Committee, but we desire to enlist your assistance and your personal and moral support in this matter, and would appreciate it very much if you would exert your influence toward the end that there be no further reduction in the tariff on boots and shoes. Thanking you in advance, we are, Yours, respectfully, PARAGRAPH 452. UTZ & DUNN Co. Bags, baskets, belts, satchels, card cases, pocketbooks, jewel boxes, portfolios, and other boxes and cases, made wholly of or in chief value of leather, not jewelry, and manufactures of leather, or of which leather is the component material of chief value, not specially provided for in this section, forty per centum ad valorem; any of the foregoing permanently fitted and furnished with traveling, bottle, drinking, dining or luncheon and similar sets, fifty per centum ad valorem. LEATHER BAGS, ETC. BRIEF OF FRANCIS E. HAMILTON, NEW YORK, N. Y., COUNSEL OF TRUNK IMPORTERS. The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. We, importers of trunks, respectfully request that the present duty upon the same be reduced to 20 per cent. The present rate under paragraph 452 is 40 per cent, practically prohibitive, as will readily be shown by the following statement: A case 16 feet long by 3.6 feet wide and 3.8 feet high contains 220 cubic feet and will contain 16 trunks 36 inches by 20 and 22 inches. The packing case and packing costs. $12 33 11 mིཌ། PARAGRAPH 452-LEATHER BAGS, ETC. being $3.50 expense to each trunk. If the foreign market value is $10, after paying 40 per cent duty and the above expenses the trunk will have cost, laid down in New York, $18, and to continue business we must ask at least $22 for the same. A similar trunk can be bought in Paris for $14, and the trunk comes into competition with the American-made article protected by the high duty, which sells at $15 to $18, thus closing the market to our importations. That these conditions exist to the great injury of the importers as well as to the cost of the public it is only necessary to note that there are at the present time more than twenty times as many American trunks exported for sale in Europe as there are of European trunks imported. If the duty were reduced upon these goods to 20 per cent it would approach a competitive protective rate and as a result the Government would receive a largely increased revenue, as imports would be accelerated. Examination of the imports of all leather goods, including trunks, shows that the total value of the same for the year closing June 30, 1912, was less than $300,000, while at the same time the sale of leather goods in the United States, according to the statistics contained in the census, runs into the millions annually. The reason for this is simple; the present duty is so high that foreign leather goods are shut out from the American market, except in the small percentage of very expensive traveling cases, saddlery, etc., imported and sold to those who will pay any price for foreign-made articles. This class of buyers, however, is so small that not 1 per cent of the trade in the country is represented by them. We further call attention to the present customs rulings which within the past two years have imposed this heavy duty rate upon trunks purchased of necessity abroad by returning American travelers. Why should an honest citizen of this country, forced by accident or the exigencies of travel to buy a trunk while abroad to carry his personal wardrobe, none of it dutiable, be compelled to pay twice or even three times for the trunk he has unwillingly purchased, simply because it is not of American manufacture? No civilized nation so imposes upon its people, and this customs regulation, only recently in effect, would seem to be the dernier effort of the American manufacturer to control absolutely the expenditure of every last American dollar, whether spent at home or abroad, if used to buy leather goods. To us this seems a most reprehensible ruling. We therefore pray that the rate in paragraph 452 be reduced to 20 per cent ad valorem, and that the tariff law specifically permit a returning American citizen to bring in free of duty the trunk he has been obliged to purchase while in a foreign land. All of which is respectfully submitted. FRENCH CHAMBER OF COMMERCE, BRIEF OF BARTLEY BROS. & HALL, NEW YORK, N. Y. The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. We, as jobbers and importers of leather goods, find from our experience that the present duty of 40 and 50 per cent upon the same is almost prohibitive and compels us to import only the most expensive articles in that line. We therefore pray a reduction of this duty rate to 25 per cent. The duty of 40 per cent applies to bags, baskets, belts, satchels, card cases, pocketbooks, jewel boxes, portfolios, and all other boxes or cases made wholly or in chief value of leather and all manufactures of leather not placed under the 50 per cent rate. The duty of 50 per cent on leather bags, baskets, and novelties, fitted with articles for traveling purposes, compels the importation only of such articles as are novelties and of the finest workmanship. The cheaper grades can not be imported under a duty of 50 per cent. The duty upon leather means that every leather belt worn by the men and women and children of this country, and every pocketbook or card case carried by any citizen, as well as every leather trunk, handbag, suit case, hatbox, or ladies shopping bag must pay 40 or 50 per cent of protection to the manufacturers of leather in this country. As a result the manufacturers of leather have grown rich at the direct expense of the people. PARAGRAPH 452-LEATHER BAGS, ETC. The official statement of imports of merchandise from the Treasury Department from September 30, 1911, to June 30, 1912, at page 98, affords a striking illustration of the result of overtaxing foreign-made goods. From this it will be seen that the importations under this paragraph, whether coming in under the 40 per cent or the 50 per cent duty rate, are insignificant and the duty not $150,000 per year, when under a reasonable duty, say, 25 per cent, the importations would be so increased that the amount of revenue would be multiplied fourfold. Quoting from these official records, it is shown that the total importations of all kinds of manufactures of leather for the year ending June 30, 1912, amount to $76,346.96 of goods dutiable at 40 per cent and $199,647.78 of goods dutiable at 50 per cent. The goods under the 40 per cent rate are those used by the great masses of the American people, and the infinitesimal importation shows how the present high rate of duty absolutely strangles this business. Those articles which pay a 50 per cent duty, being in general traveling sets, are of the most expensive lines imported, and for that reason also the importations are especially limited; and since all leather manufacturers must pay 40 or 50 per cent, the importations are confined to the very finest grades in all classes of these goods. Leather goods are to be found in almost every store in the United States which deals in drugs and notions, department stores have special departments for leather goods, and in the smaller cities drug stores, cigar stores, stationery, toy, and variety stores carry leather goods, especially those classes covered by the 40 per cent rate. All these are American goods. The consumption of leather goods in general is enormous, and especially among the poor people; but the importer can not reach these consumers, since the duty rate forbids. A leather purse, well made and of good material, or a leather belt, is an absolute necessity to millions of Americans, but the articles can not be imported under a duty rate of 40 and 50 per cent, to sell in competition with those manufactured in the United States. The present tariff is not competitive, but practically prohibitive. One leather manufacturing house in Philadelphia reports sales of more than $400,000 worth of goods during the past year. There are in the New York Telephone Business Directory more than 200 manufacturers of leather in that city alone, and there are over 3,000 in the United States, yet the total importations of leather goods for the entire United States for the year closing June 30, 1912, was only about $275,000 worth. But one conclusion can be reached: The present tariff rate prohibits importation, makes a "trust" of the business of manufacturing leather in the United States, eliminates foreign competition, and forces the millions of the United States who find many articles of leather necessities to pay an exorbitant profit to a few, sheltered behind a 40 and 50 per cent tariff wall. The foreign freight rates have increased nearly 100 per cent within the past 20 years. The present cost of a shipment of 40 cubic feet of leather goods from the shipping port in England to New York is $10. Forty cubic feet of leather goods is not a large quantity, and this freight charge alone would be ample protection to the domestic manufacturer, who is nearer the source of supply for raw material and has also the advantage of distributing his goods without paying foreign freight charges. Leather goods, such as bags, satchels, and grips, are bulky freight. The tariff rates upon leather goods, covered by paragraph 452, Schedule N, goods which are used in some form-belts, leggins, pocketbooks, hatbands, etc.-by every man, woman, and child over 3 years of age in this country, are higher than the rates on automobiles, steam yachts, paintings, statuary, furniture, diamonds, golf sets firearms, fishing rods and reels, wines, etc., all of which are luxuries, while the leather goods referred to in this brief are absolute necessities. For all of the above reasons we ask your honorable committee to reduce this rate to 25 per cent. All of which is respectfully submitted. BARTLEY BROS. & HALL, 50 Warren Street, New York City. (Francis E. Hamilton, counsel, 32 Broadway, New York City.) Dated New York, N. Y., January 25, 1913. PARAGRAPHS 453-459-LEATHER GLOVES. PARAGRAPH 453. Gloves made wholly or in part of leather, whether wholly or partly manufactured, shall pay duty at the following rates, the lengths stated in each case being the extreme length when stretched to their full extent, namely: PARAGRAPH 454. Women's or children's "glace" finish, Schmaschen (of sheep origin), not over fourteen inches in length, one dollar and twenty-five cents per dozen pairs; over fourteen inches and not over seventeen inches in length, two dollars and twenty-five cents per dozen pairs; over seventeen inches in length, two dollars and seventy-five cents per dozen pairs; men's "glace" finish, Schmaschen (sheep), three dollars per dozen pairs. PARAGRAPH 455. Women's or children's "glace" finish, lamb or sheep, not over fourteen inches in length, two dollars and fifty cents per dozen pairs; over fourteen and not over seventeen inches in length, three dollars and fifty cents per dozen pairs; over seventeen inches in length, four dollars and fifty cents per dozen pairs; men's "glace" finish, lamb or sheep, four dollars per dozen pairs. PARAGRAPH 456. Women's or children's "glace" finish, goat, kid, or other leather than of sheep origin, not over fourteen inches in length, three dollars per dozen pairs; over fourteen and not over seventeen inches in length, three dollars and seventy-five cents per dozen pairs; over seventeen inches in length, four dollars and seventy-five cents per dozen pairs; men's "glace" finish, kid, goat, or other leather than of sheep origin, four dollars per dozen pairs. PARAGRAPH 457. Women's or children's, of sheep origin, with exterior grain surface removed, by whatever name known, not over seventeen inches in length, two dollars and fifty cents per dozen pairs; over seventeen inches in length, three dollars and fifty cents per dozen pairs; men's, of sheep origin, with exterior surface removed, by whatever name known, four dollars per dozen pairs. PARAGRAPH 458. Women's or children's kid, goat, or other leather than of sheep origin, with exterior grain surface removed, by whatever name known, not over fourteen inches in length, three dollars per dozen pairs; over fourteen inches and not over seventeen inches in length, three dollars and seventy-five cents per dozen pairs; over seventeen inches in length, four dollars and seventy-five cents per dozen pairs; men's goat, kid, or other leather than of sheep origin, with exterior grain surface removed, by whatever name known, four dollars per dozen pairs. PARAGRAPH 459. In addition to the foregoing rates there shall be paid the following cumulative duties: On all leather gloves, when lined, one dollar per dozen pairs; on all pique or prix seam gloves, forty cents per dozen pairs; on all gloves stitched or embroidered, with more than three single strands or cords, forty cents per dozen pairs. LEATHER GLOVES. BRIEF OF THE ASSOCIATION OF GLOVE IMPORTERS OF THE UNITED STATES. Hon. OSCAR W. UNDERWOOD, Chairman of the Ways and Means Committee, House of Representatives, Washington, D. C. SIR: The Association of Glove Importers of the United States begs to present its petition to you, praying for a reduction of the present tariff rates as embodied in Schedule N, paragraphs 453 to 460 of the tariff act, of August 5, 1909. The existing rates of duty are unfair, and, in many instances, prohibitive and are an excessive and burdensome tax upon the consumers of gloves imported into the United States. PARAGRAPHS 453-459-LEATHER GLOVES. We ask for this reduction of tariff, not only on behalf of the American consumer, but also on behalf of American merchants whose capital is invested in this business. We shall show by the facts and figures given in the subjoined tables that a substantial reduction in rates can be made to the very material benefit of the American people without jeopardizing the interests of American manufacturers and without lowering the schedule of wages in America. First. By the reduction of the existing schedules the consumers will be benefited to a great extent. They will be able to secure better value for their money, which will be a great economy. It will create a demand for merchandise of a higher order and will therefore increase the revenue of the United States Government. It must be borne in mind that leather gloves are not a luxury, but a necessity, and are worn by 90 per cent of the men and women of the United States, irrespective of class or social position. Second. As regards the effect of a reduced tariff upon American manufacturers, it may be stated, briefly, that the great bulk of our importations of foreign gloves consists of a grade which does not enter into competition directly with the American product at all, for the reason that up to the present time domestic manufacturers have been unable to produce gloves of brush leather (see Exhibit A) and have confined their operations solely to the heavier leathers from which they manufacture men's and women's gloves. A reduction, therefore, of the present onerous rates to fair revenue-producing rates would not alter this position in the least. Third. As regards the effect of a reduction of the present tariff upon American labor, the subjoined table of labor costs of production in this country and abroad, obtained from authoritative sources, while it shows a material difference in favor of foreign labor cost, will, by comparison with the rates of duty which we urge upon your honorable committee, show that the proposed rates will more than compensate for any difference in the labor costs which exists between the United States and foreign countries. We call your attention also to the fairness of the position taken by the importers and their willingness that the new rates proposed should compensate fully for the difference in the costs of production at home and abroad. On men's gloves, particularly, there is a practically prohibitive duty of $4 per dozen, with cumulative duties of 40 cents per dozen on piqué and prix seams, and 40 cents per dozen on all embroidered gloves, showing a discriminatory duty in favor of men's gloves of $1 to $1.50 per dozen. As it costs no more to manufacture men's than women's gloves, this discrimination is unfair and indefensible. During the hearing before the Ways and Means Committee in November, 1908, when the Payne-Aldrich bill was under consideration, Mr. Lucius N. Littauer, representing the American glove manufacturers, stated that it cost as much to make men's gloves as it did women's. This being true, there should be no difference in the rates of duty on men's and women's gloves. We also desire to call your attention specifically to the fact that the imports of foreign gloves into the United States have remained practically stationary during the last four years, averaging, in round figures, $7,500,000 per annum, showing no increase in revenue during that period. CUMULATIVE DUTIES. The cumulative duties of 40 cents per dozen on all prix seam and piqué sewn gloves, and an additional 40 cents per dozen on all gloves stitched or embroidered with more than three single strands or threads, are an absolutely unjust tax. In other words, simply because a glove is made with one or another style of stitching or embroidery (which fashion alone decrees) the duty assessed on its cost is made anywhere from 80 per cent to as high as 800 per cent. It is an unjust and inequitable proposition to levy a duty upon the embroidery of a glove from the fact that a glove without embroidery is an unfinished article of wearing apparel. Piqué or prix seam sewn gloves also pay a cumulative duty of 40 cents per dozen and cost to make in France from 1 to 2 francs (30 cents to 40 cents) per dozen additional, and therefore are assessed at about 133 per cent on their cost, while fashion says whether piqué or prix seam gloves are to be worn. From the above figures it is clear that these cumulative duties are unnecessary and can be completely abolished without the slightest injury to the American industry. SPECIFIC DUTY. We also desire to make an emphatic protest against the embodying in any new tariff act of any provision for ad valorem duties on gloves, and pray that the present 78959°-Vol 5-13-59 |