PARAGRAPH 463-HORN COMBS. with any accuracy. We are inclined to believe, however, that because in the particular combs which sell most largely the foreign manufacturers lowered their prices sufficiently to meet the difference in the rate of duty the sales have been approximately as large. The equipment of the horn-comb manufacturers for a number of years back, while it has not been materially increased, is sufficient to produce an excess of production, and each manufacturer is necessarily seeking more business continually. Of course the effect of this is to produce sharp competition; sometimes it takes the form of improved quality and at other times is a question of price, so that at home we have competition that would prevent any serious advance in prices. In view, however, of the large imports, and the fact that our foreign competitors are aggressive, the American manufacturer is compelled to sell as cheaply as possible in order to maintain business enough to keep the factories going. The countries from which we find competition, all of which have the low-wage scale, are Great Britain, France, Germany, and Italy. The Aberdeen Comb Co., of Aberdeen, Scotland, who are especially aggressive, and are making very strenuous efforts to capture the trade of this country, and who imitate our goods more than the others, are the sharpest competitors we have from foreign sources. Some years ago all of the important horn-comb factories in Great Britain formed a consolidation which would be denominated a trust if located in this country. In view of all these facts, which show that our present duty is not prohibitive, that the consumer is not overcharged, and that a change of duty could not benefit the consumer but would injure the industry very seriously, compelling either loss of occupapation or lower wages to the workingman, we trust that the present duty will be retained. JOHN WALTON. BRIEF OF IMPORTERS OF HORN COMBS. [Paragraph 463-Schedule N, Combs.] The WAYS AND MEANS COMMITTEE, House of Representatives, Washington, D. C. We, the undersigned, importers and jobbers of notions, respectfully request a reduction in duty under paragraph 463 of Schedule N, especially the last two lines: "Combs composed wholly of horn, or combs of horn and metal, 50 per cent." We ask that this rate be reduced and suggest a reading of the clause in the paragraph as follows: "Combs composed wholly of horn, or galalith, or keronyx, 20 per cent ad valorem." Under the tariff act of 1897 galalith or keronyx combs were held to be dutiable at 20 per cent, and the importations during the year 1908 of these goods amounted to $54,528. Strangled by the prohibitive act of 1909, however, the importations of these goods for the year ending June 30, 1911, fell to only $9,347. (See Imports of Merchandise, p. 220.) The act of 1909 did not specify galalith or keronyx combs, but the same had been classed under the former tariff act under section 6 as non-enumerated articles at 20 per cent; but in Treasury Decision 30725, General Appraisers 4047, the United States General Appraisers held that galalith combs should be assessed at the same rate of duty as horn combs under the similitude paragraph of the present act, 481, thus imposing a duty of 50 per cent upon this cheap and universally used article. Galalith or keronyx combs are much cheaper than rubber combs and are used very universally by the poor people who can not afford either horn or rubber goods. The advance of the duty upon the same from 30 to 50 per cent under the act of 1909 has practically prohibited the importation of them, and as a result the home manufacturer of the cheaper grades of the dangerous celluloid comb has been enabled to greatly enlarge his business. Imports of merchandise (p. 24) for the year ending June 30, 1912, reports the total value of imports of combs for the year to be but $86,426 and the duty thereon $43,423, more than 90 per cent of which refers to the expensive horn combs and covers the importation of all horn and metal combs including many fancy horn goods with ornamental metal trimmings used as back combs. Under the tariff act of 1897 horn combs were assessed at only 30 per cent and the change of rate shows the effect upon importations as the following figures will demon strate. PARAGRAPH 463-HORN COMBS. Referring to imports of merchandise, page 137, it appears that for the year ending June 30, 1907, the total value of importations of combs was $277,945; for the year ending June 30, 1908, $237,945; while for the year ending June 30, 1910, the importation was but $182,619. Since 1909 the imporations have been seriously reduced and have steadily decreased ever since, to the loss of the revenue, to the injury of the home consumer who must pay the extra protection created by the increased rate to 50 per cent directly to the pockets of the American manufacturer. This it was that the Republican tarif "reduced the cost of living" and lost control of the country in consequence. Incidentally this increase in tariff has largely improved the sale of the celluloid comb, which we charge to be a dangerous article on account of its inflammability and liability to explosion and spontaneous ignition. Many serious accidents have occurred from the use of these combs and we quote two items from the public press as follows [Extract from Evening Express, Oct. 17, 1911.] "Wearing a collar and hair comb made from celluloid, a woman has met with her death by burning. She was carrying a lighted lamp upstairs, when she slipped, and the ignition of the celluloid articles caused severe burns to her head.” [Extract from Evening Gazette, Oct. 22 1912.] "A woman named Margaret Downie, who resided at 38 Kenmure Street, Pollockshields, has succumbed in the Victoria Infirmary, Glasgow, to burning injuries received about a fortnight ago while on a visit to friends in Bo'ness. The unfortunate woman had been standing in front of the fire dressing her hair with a celluloid comb, which slipped from her grasp and fell into the fire. Instantly a flame shot up which ignited her clothing, and she sustained serious injuries about the body, arms, and head. At the time of the accident she was conveyed to the Glasgow Infirmary, where she died yesterday." Finally, we desire to submit statement of American sales of imported combs for the years 1906 to 1909, inclusive, and for the years 1909 to 1912, inclusive, showing a falling off of more than 50 per cent in importations and sales on account of the excessive duty rate under the present tariff act, as clearly set forth in Imports of Merchandise, pages 137, etc. For all the above reasons we earnestly pray that the duty on combs be reduced as herein set forth to 20 per cent ad valorem. The dangers arising from the storage of celluloid is occupying the attention of the corporation, and has resulted in an important recommendation by the fire-brigade committee in connection with the regulation and control of the storage of the inflammable material. They propose that the town clerk be instructed to forward a copy of firemaster Waddell's report to the home office. In his report Firemaster Waddell states that the storage of celluloid is a matter requiring careful consideration. On the 16th instant he visited certain establishments in the city where large quantities of cinematograph films are kept. In one instance he found a large room, which contained 2,000,000 feet of film. He is of the opinion that the storing of films in many premises visited is most unsatisfactory, and is charged with great dangers. The firemaster urges that immediate steps be taken to have this serious state of affairs rectified. IS CELLULOID AN EXPLOSIVE? Mr. Waddell, in a final note, adds: Some dubiety exists as to whether celluloid is really an explosive. Personally, I am convinced that celluloid is, under certain con PARAGRAPH 463-HORN COMBS. ditions, an explosive, and I am strongly of the opinion that it should be treated by the authorities as such. I have considered it my duty to bring this matter before you, and I sincerely trust that immediate action will be taken to have the whole matter thoroughly looked into, and have the risks and dangers which undoubtedly prevail minimized, or, if possible, abolished entirely. [From Glasgow News of Sept. 12, 1912.] STORAGE LIMITATIONS.-PROPOSED RESTRICTIONS. The storage of celluloid in various forms in the city has been the subject of a report by Firemaster Waddell-published in the News on Tuesday-along with the watching and lighting committee's recommendation to forward a copy of the report to the home secretary with a request, in view of the urgent necessity, for steps being taken to regulate and control the storage. At this afternoon's meeting of the corporation, Mr. R. S. Brown, in moving the minute, said they could not possibly magnify the dangers arising from celluloid, but it was satisfactory to know that Mr. Waddell and the brigade committee were doing everything in their power to minimize these. Mr. Brown spoke of the recent calamitous fire in London through celluloid cards going ablaze, and contended that what happened in London might well occur in Glasgow any day. Just a few days ago they had a fire in Trongate, where within a few minutes a whole building was ablaze and £5,000 damage done. GLASGOW EXPERIENCE As to other dangers, he was told by Mr. Waddell of a case where a celluloid comb in a hairdresser's window caught fire from the rays of the sun, and some damage was done. Mr. Waddell wished to have the entire control of the storage of such inflammable material, and suggested that all rooms where celluloid in any form was stored ought to be thoroughly fireproof, and the articles kept at least 20 inches from any source of heat and protected from warm drafts or the rays of the sun. Mr. McNaughton congratulated the chief fire officer and Mr. Brown on the proposals. Mr. P. G. STEWART. What about people walking about the streets with celluloid combs in their hair? Is this not a question for legislation? Mr. R. S. BROWN. That is just what we are asking. The report and minute were adopted. HORN COMBS. Hon. OSCAR W. UNDERWOOD, W. H. NOYES & BRO. Co. Newburyport, Mass., January 22, 1913. Chairman of the Committee on Ways and Means, Washington, D. C. DEAR SIR: It is probable that due to representation that will reach your committee, and which will be inspired by foreign manufacturers, particularly the Aberdeen Comb Co., of Aberdeen, Scotland, an attempt will be made to reduce the duty on horn combs. In the Payne-Aldrich bill the duty on combs was made 50 per cent ad valorem. This duty was made in view of the rapidly increasing importation of foreign combs. Congressmen in both Houses very willingly conceded that a duty of 50 per cent was a just and fair one, as this duty only covers the difference in wages paid in this country as compared with the Aberdeen Works, of Scotland, which is the most active competition we have. Other countries, which pay still lower wages, would be more serious competitors, but for the fact that they do not as yet imitate our styles so carefully as the Aberdeen Works. One evidence of the reasonableness of this duty of 50 per cent is the fact that there has been no increase in prices in the United States since this duty has been in effect, the tendency of prices being downward, while at the same time the importation of foreign combs is still very large. The manufacturers of horn combs in this country are absolutely dependent on protection, and to lower or remove the duty would not benefit the consumer, as investigation will prove. The great bulk of horn combs are sold for 5 and 10 cents apiece at retail, and these prices would prevail whatever the duty. Furthermore, those of us who have visited PARAGRAPH, 463-HORN COMBS. the countries of Europe have discovered that the retail price of combs is, on the average, as high as here. We believe were the duty entirely removed or lowered that the American manufacturer would be driven out of business, and the foreign price would equal the present American price, and the goods very inferior. We would respectfully ask that you give the above your careful attention, and after considering the matter of duty on combs, if you are satisfied our claims are just we would respectfully ask that your committee recommend at least a duty of 50 per cent ad valorem on combs. Respectfully, yours, W. H. NOYES & BRO. Co. Hon. OSCAR W. UNDERWOOD, NEWBURYPORT, MASS., January 22, 1913. Chairman Ways and Means Committee, Washington, D. C. DEAR SIR: As hearings in relation to a new tariff bill are now under way, we desire to give you the following information in regard to horn combs, dutiable under Section N, which section is set for hearing on the 29th instant. The duty on this article was raised from 30 per cent to 50 per cent ad valorem by the present tariff. That this advance in rate was fully justified by conditions is clearly shown by the following results: First. That no advance in prices have since been made by any of the domestic manufacturers. Second. The importations since the increase in rate have been as follows: Year ending June 30, 1911, $155,265, duty paid. Year ending June 30, 1912, $130,272, duty paid. These figures are from the official reports of the Department of Commerce and Labor. The value of importations in each year was fully 25 per cent of the estimated domestic production, the sales in 1912 showing a falling off in common with that of many other manufactured products. It is not possible to make a comparison with importations under previous tariffs, as the present bill is the first one to make a separate classification of this article, but the above large percentage of importations shows very clearly that the present rate is far from being prohibitive. The conditions existing in this industry are highly competitive, being from domestic and foreign sources. The manufacturers in this country have factory capacity in excess of production, and each is therefore striving keenly to secure more business. The foreign competition comes principally from Great Britain, France, Germany, and Italy, all countries with a very low wage scale. The competition of the Aberdeen Comb Co., of Aberdeen, Scotland, is particularly difficult to meet, and we are constantly undersold by them on many styles, they having imitated some of our most important combs, and are making strong efforts to increase their trade in this country. The above company is a consolidation of all of the important horn-comb factories in Great Britain, and if located in this country would be designated as a trust. Most of the horn combs sold in this country are retailed at either 5 cents or 10 cents. Owing to this trade condition a change of duty, either upward or downward, would have no effect on the consumer. Any reduction in the rate would therefore be solely to the advantage of the foreign manufacturers or to the importers. Such action would necessarily be distinctly to the disadvantage of the domestic manufacturers and to their employees. In view of the large importations under the present rate, and as it has been shown that the manufacturers in this country did not take advantage of the increase of duty to raise prices, and as the increased and steadily rising wage scale since the present law was passed makes it even more difficult now to compete with the low wage scale of Europe, we most earnestly hope that the present rate may not be changed. Yours, very truly, G. W. RICHARDSON Co., PARAGRAPH 463-RUBBER FOOTWEAR. RUBBER FOOTWEAR. STATEMENT BY THE L. CANDEE & CO., NEW HAVEN, CONN. Hon. THOMAS L. REILLY, THE L. CANDEE & Co., House of Representatives, Washington, D. C. DEAR SIR: I am glad to note by your letter of the 12th ultimo that you are interesting yourself actively in behalf of the industries of New England, and particularly those centering in your district. In reference to the duty on importations of rubber goods form foreign countries, which is at present 35 per cent, I respectfully suggest that if this tariff is to be lowered Congress should exert its best efforts to see what can be done in securing lower duties for American goods entering the markets of European countries, particularly the markets of Germany and France. In other words, if the tariff on rubber goods coming into this country is to be lowered, I feel very strongly that our Government should exact a "quid pro quo" from foreign Governments. Through great effort and at large expense we have developed a very gratifying export trade. This was severely injured when on account of the admission of free pulp from Canada, Germany withdrew the "most favored nation" privileges which we had enjoyed in that market, and substantially raised our rate of duty. There are many lines of goods which can be made cheaper, if not better, abroad, and if our markets are to be thrown open to foreign competition on these articles, we insist that in fairness to its own citizens our Government should see to it that American manufacturers have an opportunity to enter foreign markets where we can least as favorable a basis as foreigners can enter ours. at About a year ago the congressional Ways and Means Committee considered as a revenue measure the imposition of a 5-cent tax on all crude rubber coming into this country. Under date of March 28, 1912, the Rubber Club of America submitted a comprehensive statement to the Hon. Oscar W. Underwood, chairman of the Ways and Means Committee, which accurately set forth our ideas on this subject. While I can not believe that Congress would pass such a measure, I refer to this matter at the present time because it is a vital point, and should such legislation be passed it would be ruinous to our export business. The principal European countries with which we come in closest competition, na mely England, Germany, France, Austria, Sweden, and Italy, all admit rubber free of tax, and when it is understood that in the rubber industry about 60 per cent of the value of manufactured goods is in the crude rubber, the extent of the handicap under which such a tax as this one proposed would place us will be readily understood. Again thanking you for your interest in the matter, and assuring you that the manufacturers of Connecticut will greatly appreciate everything that you can do in protecting their legitimate interests, I am, Yours, very truly, H. STUART HOTCHKISS, Vice President. |