PARAGRAPH 463-HORN COMBS. Mr. HARRISON. What are other combs made out of? They are made out of rubber, are they not? Mr. WALTON. There are a large number of combs made out of india rubber. Mr. HARRISON. Is there not a much larger industry making combs of india rubber than of horn? Mr. WALTON. I suppose it is larger. Mr. HARRISON. How do the prices of that kind of combs compare with the prices of the others? Mr. WALTON. They compete. The rubber comb is a very sharp competitor on some styles. They make lots of finer goods than we do, but in the common small articles they compete with us. Mr. HARRISON. From what countries are horn combs imported? Mr. WALTON. Our severe competition in combs is from Aberdeen, Scotland. There is a comb factory there which is really a combination of all the large factories of Great Britain. I suppose it would be denominated a trust if it was in this country. They are very active in their competition with us. Mr. HARRISON. Where do you get your horn from? Mr. WALTON. We buy in the world, practically. The American horns used to supply us years ago, but owing to the dehorning of cattle and cross breeding, it has reduced the quantity and quality of the horns, and we are compelled to buy South American horns. Mr. HARRISON. Do you pay any duty on those? Mr. WALTON. No, sir; no duty. Mr. HARRISON. They are on the free list? Mr. WALTON. Yes, sir. Mr. HARRISON. Where do your competitors in Aberdeen, Scotland, get theirs? Mr. WALTON. In the same markets. We usually compete in Antwerp. Of course, the Aberdeen, Scotland, factory has one advantage-at least all European manufactories have this advantage; in the fact, according to my information, that there is no dehorning of cattle in the other countries, and local horn markets usually furnish a percentage of the product, which would be of much value to them, because you can usually buy the local horns, if there are any quantities of them, at less prices than the regular stock horns which we have to buy in large quantities. By your inquiries, you have elucidated several points I wanted to make. There are several things. In the first place, though, the duty was changed at the last Congress, and since then there has been a tendency downward, absolutely no increase in prices by the American manufacturers. On the contrary, there has been a tendency downward. I think it would amount to between 2 and 5 per cent less for the general line of our horn combs to-day than three years ago. This price is brought down largely because our American manufacturers are equipped as they have been for a number of years, for the production of a larger amount of goods than the country will take, in view of the importations. As a consequence, there is home competition, which, in addition to the foreign competition, keeps the prices low. PARAGRAPH 463-HORN COMBS. In view of these facts, and the fact that we can see no advantage to the consumer nor to the Government, in any change of the tariff, our plea is that the tariff be allowed to remain just as it is. Mr. HULL. What kind of machinery do you have in your factories? Mr. WALTON. Most of the machinery is the product of the individual factories themselves. Several of the manufacturers are inventors, and have very good machinery. Unfortunately for our industry, one of the factories was foolish enough to sell American machinery to the Aberdeen comb works, some years ago, which we deplored very much, but it happened and we can not get away from it. Mr. HULL. Is the machinery here and in Europe practically the same? Mr. WALTON. There is some difference, but it is practically the same. It happens that we have several workmen in our plant who have worked in the Aberdeen comb works, and I judge from the description of their plant that in the main it is like ours. To some extent we may be superior. Mr. HULL. The costs are about the same? Mr. WALTON. Of what, the machinery? Mr. HULL. Yes. Mr. WALTON. The machinery costs more here, because we have a different price that is paid labor. Their machinists, some of them, get $4 and $6 a week, and we pay ours $20. Mr. HULL. I mean the machinery itself. Mr. WALTON. We build our own machinery. Of course we pay the labor on that. There is no plant or manufacturing concern for comb machinery; the comb manufactories build that themselves. SYNOPSIS Of Brief. [Subject: Horn combs, made from cattle horn and used for hair dressing, Schedule N, par. 643, last clause.] Present duty of 50 per cent ad valorem advanced in the last bill from 30 per cent for reasons given in briefs presented to Sixty-first Congress, extracts of which are attached herewith. (1) This advance was based on the difference of cost of labor. (2) The aggressive competition of foreign manufacturers made possible by their low rate of wages. (3) The fact that most of our goods are sold in this country at either 5 or 10 cents, so that a change of duty would have no effect on the consumer. As proof that this advance was justified and should be maintained, we submit the following: 1. Since the change, there has been no advance in prices of horn combs by the domestic manufacturers. 2. The importation of foreign combs has continued large. 3. The horn-comb business is affected by sharp competition both at home and from the foreign manufacturers. In view of the fact that the duty of 50 per cent ad valorem did not make possible an advance in prices, and the further fact that we have a steadily rising scale of wages since the last tariff bill, and the further fact that according to all advices we receive there has not been any advance in foreign wage scale, we feel justified in urging that the present duty shall not be changed. EXTRACT FROM BRIEFS SUBMITTED TO PREVIOUS COMMITTEE ON WAYS AND MEANS. Horn combs are made of cattle horns, and some years ago the production in this country supplied us with all our raw material at a moderate price; but owing to the breeding of shorthorn cattle and the process of dehorning, the quantity and quality of American horns have fallen so low that it has been necessary for some years for PARAGRAPH 463-HORN COMBS. American manufacturers to buy a large part of their material in European markets, where the foreign manufacturers have the advantage of being on the ground. The product of the foreign comb manufacturers has always found a market in this country, but under present conditions there is an increase in the number of sizes and styles, many of them copies of our makes, which enter our market and drive out the domestic goods. This competition is more keen and difficult to meet each year, particularly in view of the fact that the scale of wages we are required to pay has advanced. A very considerable item of comb imports consists of fine handmade combs, which sell in all the department stores and among the dealers in better goods. Some of these goods manufactured in France are made in a manner that we could not presume to have sufficient tariff to enable us to compete. In these goods the item of hand labor figures very largely. While in France in 1904 I was informed by horn brokers and other men familiar with the business that it is the custom of the large manufacturers to prepare the horn stock up to a certain point and then farm it out to families, who take the work home and there put upon it the fine hand labor which produces the superior article. For this work the famílies, consisting of father, mother, and several children (sometimes five or six), receive the equivalent of about $5 for a full week's work. This statement had previously been made to me by Frenchmen in this country who were familiar with the comb industry of France. There is also a line of very cheap combs coming here from Italy, Scotland, and the Netherlands which we can hardly expect to compete with. Among these are pocket combs in cases, which are delivered in New York for $1.25 per gross, duty paid, or of a line of fine-teeth combs at ridiculously low prices. While thousands of dollars of these goods are continually shipped here, we do not advocate such protection as would give the American manufacturers a monopoly in this market. The burden of our plea is that the tariff should be high enough to enable the American manufacturer paying decent wages to workmen, to make reasonable profits, and retain the market which legitimately belongs to them. While there has been a large increase in the consumption of horn combs in this country, the industry has not advanced correspondingly. The decline in the cleared horn line of dressing and fine-teeth combs is particularly marked, the foreign manufacturers having this field practically to themselves, although most of our factories are equipped for this work, and if it were possible to compete could give employment to a goodly number of workmen. If a change were made in the tariff schedule, either lowering or increasing the rates, it would not change the price of the combs to the consumer except in a limited group of the article. The price that is charged for the comb at retail in this country, for probably 75 per cent of the combs sold, is 10 cents. The only effect of lowering the duty would be to enrich the dealer at the expense of the manufacturer, and by the increase of importations reduce the output of our factories, which would result in the employment of less workmen and possibly the retirement of the industry, in which case the foreigner would undoubtedly increase his prices to this market. On the other hand, an increase of duty would not increase the price to consumers, the revenue to the Government would probably not be materially diminished, and there would be an enlargement of the industry, which would give employment to more American labor. Mr. James W. De Graff, representing the Noyes Comb Co., of Binghamton, N. Y., writes: "About 15 years ago there were 11 horn-comb factories in this country, and to-day there are but 4, as the inadequate duty of 30 per cent does not allow the American manufacturer sufficient protection to enable him to compete with the low wages paid in Aberdeen, Scotland, and in Germany. Most of the importations into this country come from one horn-comb works in Aberdeen, Scotland. Our factory obtained a United States patent on a metal-back comb, where the back extended over the ends, forming the end teeth, which patent expired a number of years ago, and the fair market value for this article is $7.25 net, but the competing comb offered by the Aberdeen Comb Works can now be landed in New York City, freight and duty paid, for $5.70; and beg to say that this comb can not be made in America to meet the foreign price mentioned above. Taking 100 as a unit, the wages amount to 45 per cent and a superintendent's charge of 5 per cent. Notwithstanding the fact that foreign combs are brought into this market at the price mentioned above, the consumer pays exactly the same price at retail for his goods as he does for ours, as the comb can not be retailed at 5 cents, and is universally sold at 10 cents, so that the difference in cost to the wholesale merchant is absorbed by him and the retailer at the expense of American labor. PARAGRAPH 463-HORN COMBS. "The wage scale in the Aberdeen Comb Works, Scotland, of which we have positive information, as per attached sworn affidavit, is as follows: Managers receive salaries not exceeding $15 per week; foremen from $6 to $7.50 per week; the best workmen from $4 to $6.50 per week. Women earn an average of from $2 to $3, and boys, who must be 14 years old, start at $1 per week, and they receive this rate for a considerable period. "As comb making is not considered a man's work in Scotland, outside of manager, foremen, machinists, and a few men for very hard work, the larger proportion of employees are women and minors. "On the contrary, our labor is principally men, whose wages are about four times as large as the women who do similar work, and the boys employed by us receive at least four times as much as boys abroad. "A conservative estimate of the relative amount of the labor cost as between the foreign and domestic manufacturers is that the foreign wages for the same amount of labor would be less than 334 per cent of the American wage cost. These figures relate particularly to Scotland, and are well within the facts. In other countries the rates would probably be lower." [Copy of affidavit.] FRANKFORD, PHILADELPHIA, PA., December 31, 1908. I, John Rogers, of 4151 Paul Street, Frankford, Philadelphia, Pa., was in the employ of the Aberdeen Comb Works Co., Aberdeen, Scotland, for 42 years. During this time I worked in the various departments and for a number of years I was employed as foreman. The rates of wages paid by this firm at the time my employment with the said firm ceased were as follows: Managers, average wages not over 60 shillings, or abour $15 per week. Boys, average wages not over 4 to 5 shillings, or about $1 to $2 per week; this latter rate gradually increasing as the boys reach manhood. I have been in constant correspondence since I left Aberdeen with employees of the comb works who are my old friends and neighbors, and I am sure that rates have not advanced, but rather have decreases since that time. JOHN R. ROGERS. John Rogers, being duly sworn according to law, deposes and says that the facts set forth in the above statement, to which he has attached his signature, are true to the best of his knowledge and belief. JOHN R. ROGERS. Sworn and subscribed to before me this 31st day of December, 1908. Commission expires January 27, 1909. G. W. Richardson Co. and Wm. H. Noyes & Bro. Co., of Newburyport, Mass., write as follows: "This industry is principally carried on in the States of Massachusetts, Pennsylvania, and New York, and although the various parties engaged in same have given strict attention to the details of the business and have been energetic and ingenious in inventing labor-saving devices, the business has not kept pace with the growth of the country. "This is largely due, in our opinion, to the strong competition of the foreign manufacturers, notably those of Great Britain, France, Italy, and the Netherlands, who are sending large quantities of combs to this country and underselling us, notwithstanding the present duty. "We consider that the low wage scale and also low cost of supplies abroad is the secret of their ability to do this, and the cost of the above items is fully 50 per cent of the total cost. "The supplementary brief recently submitted by Mr. Walton gives facts in relation to the wage scale in Scotland which are of great importance when considering what is a fair measure of protection, and we call your especial attention to same. "As women perform much of the heavy work in Scotland, for which we employ men at a rate of $10.50 to $13.50 per week, it is clear to us that the total labor cost in Aberdeen would not exceed 30 to 33 per cent of what it is in this country. PARAGRAPH 463-HORN COMBS. "One of our principal items is a 7-inch metal-guard tooth comb, with a metal back of nicolene. This comb has been copied by the Aberdeen people, and is now sold in this country by them at $5.70 per gross, duty and freight paid. "A fair price for this is from $7 to $7.50 per gross. The comb retails at 10 cents." ILLUSTRATION. On the basis of cost prices in Scotland a tariff of 50 per cent would merely meet the difference in wages alone, on the class of combs in general use in this country. As stated by us in the briefs submitted to the Ways and Means Committee and printed in their tariff hearings No. 36, pages 5395-5397 and in No. 47, pages 7075-7077, the proportion of labor cost in the medium goods (most commonly used) of horn combs in America is about 50 per cent of the total cost. Take a comb that will cost in America, as example, say, $6 per gross The labor cost would be 50 per cent.. The labor on same article in Scotland. Which would give advantage to foreigner of........... And make their cost only.. To equal the American cost, we must add 50 per cent. $3.00 1.00 2.00 4.00 2.00 6.00 You will note that this relates to the medium grade of goods, which are made with considerable machinery, but for high-priced goods, which require more handwork, this percentage would be inadequate. While formerly the foreign manufacturers confined themselves to the peculiar styles of their own countries which were salable here only in limited quantities for perhaps a decade, they have made a careful study of our market and methods of manufacture and have gradually imitated our largest sellers, and though their product is still somewhat crude have made great inroads on the business of American manufacturers. This, of course, is only made possible by the low wage rate they pay. In one style of comb known in the market as the metal end tooth comb, a comb with a nicoline (nickel-plated zinc) back and end teeth, which material they purchase lower in Europe than we can buy it here, their competition has been especially keen. The factories of the Aberdeen Comb Co., Aberdeen, Scotland, which is a combination of the factories of Great Britain, and in this country would be denominated a trust, is especially active and determined to capture the American market. The custom now firmly entrenched in the United States, and very largely brought about by the syndicate stores, of selling small wares at 5 or 10 cents has a determining influence on the prices the comb manufacturers can get for their goods. Except for a few styles especially well made and sold in limited quantities to a select trade it would be suicidal for us to attempt to ask prices that would not permit the goods to be retailed at 10 cents. Owing to this trade condition a change of duty either upward or downward would have no effect upon the consumer. In Europe we found the prices at retail varied very much, running from the equivalent of our 5 cents up to a franc (20 cents) and shilling (about 25 cents), and in most instances, especially in the cheaper combs, the retail prices are equal to our American prices. From these facts we can fairly assume, were the Americans driven out of business from lack of sufficient duty to meet wage differences, it would not be long before the foreign prices would be advanced and the consumer here be compelled to buy inferior goods for 5 to 10 cents or pay higher prices. The importations of horn combs have been quite large. According to reports of the Department of Commerce and Labor, which were handed to the writer, the importations were as follows: Year ending June 30, 1911. $155,265, duty paid; year ending June 30, 1912, $130,272, duty paid. During the latter year domestic manufacturers were reduced in their sales in about the same proportion. These figures would indicate imports in excess of 25 per cent of the domestic manufactures, which clearly indicates that the present rate of duty is by no means prohibitive. Owing to the fact that horn combs were not classified in previous tariff bills, but were imported under the general head of the "Manufactures of horn," which included many other articles, it is impossible for a comparison with former years to be made |
