PARAGRAPH 474-PHOTOGRAPHIC PLATES. We beg you to consider that the reduction of the tariff would help all these American manufacturers who are not buying their film from the Eastman Kodak Co., of Rochester, the only concern in the United States that manufactures this film, and consequently the reduction of tariff would be of no damage to anybody outside of the Eastman Kodak Co. We therefore ask you to consider if this duty could be taken off, on the ground that it is a protection for the interest of only the above-mentioned concern and would be of benefit to the general trade. Trusting this matter will receive your kind attention, we remain, Respectfully, yours, RAW FILM SUPPLY CO., BRIEF OF THE MINNESOTA NATIONAL EXCLUSIVE FILM EXCHANGE, MINNEAPOLIS, MINN. Mr. UNDERWOOD, MINNEAPOLIS, MINN., February 24, 1912. Chairman, Committee on Ways and Means, Washington, D. C. DEAR SIR: I wish to acquaint you with a few facts concerning the cost of movingpicture film to prove that the present duty of 14 cents a linear foot is very exorbitant. Film sells abroad at 8 cents a foot. Here it sells for 10 cents. I am referring to new film which is sold for the first time after produced. Such film is known to the trade as "releases." "Cold copies" is new film which has never been run through a machine, but released some time before. Used film is film that has been shown already, but for some reason, chiefly lack of trade or additional customers, a buyer has no further use for it and will therefore sell it. Used film can be bought abroad at from 1 to 3 cents a foot, but when the duty is 50 to 150 per cent it is impossible to buy it and make anything on it. European manufacturers make a higher class film, use as good film (Eastman Co.'s goods), have a better class of actors. Bernhardt and Rejane act for motion pictures. Did you hear of an actress of the class of Maude Adams or Viola Allen acting for. American-made moving pictures? The supply of film in this country is in the hands of two trusts, only one of which will sell at all to anybody who wishes to buy; but no one can buy less than $1,200 a week, and no one buying less than $2,100 a week can buy any film elsewhere. If one should buy only $1,200 a week and some manufacturer would make a splendid subject somewhere I would not be able to buy any more film, while my big competitor could buy it and increase his prestige among the renters of film at my expense. This trust not only dictates to buyers, but also dictates to manufacturers who are not in it. It is using Standard Oil methods there. It squeezes both the producer and consumer. I would suggest that in the interest of liberty of trade and to loosen the hold on monopoly which will ultimately grip the business, and that very shortly, unless the European product is brought within reach of those who would engage in the business, that 20 to 25 per cent should be made the duty on used film. Conditions in the trade are such that film used is mostly secondhand. It passes from one exhibitor to another, and gets somewhat damaged in use. The more it is used the less its value. First, it loses in value because of its age (people have seen it already and the large theaters will not use any film which has already been shown), then it loses in value on account of physical condition. It takes about $50,000 with which to start in the film rental business if one is to buy new film; and if he does he takes the large risk of having the film depreciate in value through age alone. For example, if I buy a reel of film for $100 and rent it to only one man as soon as I got it and have no other customer for 30 days that film has lost half of its value because it is in use by others for that length of time. You can readily see that the losses are tremendous in this business (from the buyer's position), and yet the buyer has no chance to get films elsewhere. With the duty at the right figure I can import film which has never been used or film if used has never been shown in this country. Old film will not depreciate in value as rapidly as new, and consequently because of its more safer nature there will be more buyers and the public will have better entertainment. L. GILBERT COHEN. Truly, yours, PARAGRAPH 475-PIPES AND SMOKERS' ARTICLES. BRIEF OF THE PHOTOGRAPHERS' COPYRIGHT LEAGUE OF Hon. OSCAR W. UNDERWOOD, AMERICA. NEW YORK, January 28, 1913. Chairman Ways and Means Committee, Washington, D. C. SIR: We respectfully submit the following facts regarding the importation of photographic negatives or dry plates exposed or developed and ask the removal of duty from this article and its inclusion in the free list: 1. This article is included in paragraph 474 of Schedule N of the present law under the phrase, "Photographic: Dry plates or films not specially provided for, 25 per cent ad valorem." We request that the phrase have added to it the exception, "except photographic negatives or transparencies developed or exposed," and that the free list include the phrase, "photographic negatives or transparencies developed or exposed." 2. These articles are brought here for the sole purpose of manufacturing prints therefrom in the United States. Three cases occur. The first is that of the developed negative, which is used directly without further manipulation as a printing tool from which to make photographic prints. The second case is that of the exposed or undeveloped negative. In that case the development is completed within the United States and the resultant developed negative is used for printing as in the first case. The third case is that of the transparency, which is generally made from a foreign existing negative and then imported for the purpose of making what is called a "duplicate negative," so that the printing may be performed here by such duplicate negative in case the original can not be imported. All of these articles are imported for the purpose of performing the print manufacture within the United States instead of doing the print manufacture abroad and then importing the prints. 3. In the case of all foreign scenes, such as an architectural view of a cathedral or abbey or an art reproduction of a statue or a painting in which the original is located abroad, it is absolutely necessary that the dry plate, or photographic negative, be exposed abroad. Neither the painting nor the cathedral can be moved within the United States to do this work. The photographer must go to the place. The imposition of a duty upon these articles tends to prohibit the American manufacture of such reproductions. In the case of carbon photographs, which are commonly used for art reproductions and fine architecturals, the American maker not only pays the duty on the negative, or working tool, with which the printing is done, but he also has to import his carbon tissue and pay a duty on that, and, in addition, pay a much higher wage scale. The result is that fully 90 per cent of the prints of that description which are used in this country are made abroad. 4. Reduction of duty will not injure any existing industry, but will increase the making of prints in the United States. Very respectfully, yours, PARAGRAPH 475. B. J. FALK, President. Pipes and smokers' articles: Common tobacco pipes and pipe bowls made wholly of clay, valued at not more than forty cents per gross, fifteen cents per gross; other tobacco pipes and pipe bowls of clay, fifty cents per gross and twenty-five per centum ad valorem; other pipes and pipe bowls of whatever material composed, and all smokers' articles whatsoever, not specially provided for in this section, including cigarette books, cigarette-book covers, pouches for smoking or chewing tobacco, and cigarette paper in all forms, sixty per centum ad valorem. Chairman of the Ways and Means Committee, House of Representatives, Washington, D. C. DEAR SIR: With the understanding that your honorable committee has under consideration the revision of the present tariff, we herewith beg to submit to you statements of the relative cost of manufacturing our product, namely, clay tobacco PARAGRAPH 475-PIPES AND SMOKERS' ARTICLES. pipes, under Schedule N, as produced in New York State as compared with the cost of producing the same article in Glasgow, Scotland. In the hearing granted us by previous committees the question of the difference in cost of labor in Scotland and the United States has never been fully recognized, and we have been protected with a specific duty of 15 cents per gross on an article costing 40 cents or less manufactured abroad. Our statement shows the cost of producing common clay pipes in both New York and Scotland, the different operations gone through to make a pipe, as well as the difference in the various costs both here and abroad. We have based our figures on the lowest cost of labor available in this country and have figured the highest respective cost of labor available in Scotland. The total of both results show a difference of about 20 cents a gross, not including overhead or fixed charges. Therefore Scotch manufacturers at the present rate of duty have an advantage of about 5 cents a gross, less freight charges, etc., of about 14 cents, not including fixed costs. COST OF MAKING FANCY CLAY PIPES WITH MOUNTINGS. We also inclose two statements showing the relative cost of producing a fancy clay pipe in New York and in Scotland and have selected for this purpose a style, namely the calabash shape of clay, which is at present in greatest demand. The American manufacturer is protected on this article by a specific duty of 50 cents per gross and an additional ad valorem duty of 25 per cent. In drawing up this statement we have also shown the entire process of manufacture, the result of which shows a difference of $1.65 per gross, less duty, without including fixed charges. In submitting these statements we wish to call your attention that statements submitted to previous committees have been based on the relative cost of molding and trimming only and did not include the other operations, which are just as important. The greatest factor in our industry is the question of labor, and in this respect we compare with Scotland as follows: A good pipe molder in New York earns on the average $2 per day, whereas in Scotland the time work is based on the rate of 24 to 25 shillings per week, or about $1.09 a day. A trimmer (trimming, an operation to remove molding faults) in Scotland earns about 6 to 8 shillings ($1.44 to $1.84) a week, whereas in New York they earn from $6 to $8. In Scotland boys and girls can also be employed at the rate of 6 to 8 shillings per week, whereas in New York boys can not be had at all, for the reason that wages are not attractive, and girls earn not less than $5 a week for work performed in Scotland for 6 to 8 shillings. We wish to add that the Scotch figures are the only ones which we have been able to obtain, and, while we do not know the conditions in France and Holland, we understand that labor there is still more cheap. This also applies to Germany, where pipe makers do not work regularly at the trade. In Germany pipe makers work in the fields planting or gathering the harvest until the weather compels them to keep indoors. At this season the farm hands or peasants apply at the pipe manufacturing plants for molds of pipes needed. They then build their own kilns and make the sagars in which to place the pipes preparatory to burning them, then mold and trim enough to fill the kiln and after firing the pipes, deliver them at the factory and collect the amount due them for their labor. This condition places in the hands of German pipe manufacturers very cheap labor, for the reason that the workman is willing to earn a small amount rather than sit idle during the time when he can not work at his occupation on the farms. As an example we quote the article known as the red clay pipe assortment composed of about eight different styles on which the cost of production in this country would be about from 95 cents to $1 and which article is landed in this country, duty paid (15 cents per gross, specific), 674 cents a gross f. o. b. dock. We especially mention the German condition for the reason that we have not been able to compete with their goods in the market. Our entire output is sold mainly to small jobbers and retailers at the same price asked for by the large jobbing houses, who have imported the article from Germany. In summing up we believe that a specific import duty of 25 cents per gross on clay pipes costing 40 cents or less abroad and an import duty of 50 cents per gross specific and 40 per cent ad valorem per gross on clay tobacco pipes or bowls costing more than PARAGRAPH 475-PIPES AND SMOKERS' ARTICLES. 40 cents per gross would enable us to compete in the open market without increasing the price to the jobber, retailer, or consumer. Submitting our brief to your honorable body, we remain, AMERICAN CLAY PIPE WORKS, Inc., Cost of making fancy clay pipes in New York. Cost of clay per ton (2,240 pounds) f. o. b. dock.. Total.. Cartage..... Cost per gross 133 pounds to a 16 dozen gross.. Soaking and milling per ton (2,000 pounds), one day's work at $2 per day, 13 pounds to gross; cost per gross.. Molding, piece work 16 dozen gross. per Trimming, piece work per 16 dozen gross. Potting and filling kiln, 20 hours work, at 20 cents (140–16 dozen gross to kiln).. $12.00 2. 016 14. 516 $0.0859 . 0133 .75 . 18 $4.00 Burning kiln, 5 hours work, at 20 cents (140-16 dozen gross to kiln). Emptying kiln, 24 hours work, at 20 cents (140-16 dozen gross to kiln).... 1.00 .50 Total (27 hours work)... 5.50 Cost per gross 140-16 dozen gross to kiln.. Firing kiln, fuel 1,200 pounds, at $7.25 per ton to burn 140-16 dozen gross, per gross.. Ferrules, at 50 cents per gross, (45 per cent import duty included). Cost does not include heat, drying, nor cost of polishing paper or varnish. 4. 1015 Figuring 13 pounds to 16 dozen, cost per gross.. Potting and filling kiln, 2 days' work.. 20 hours, Emptying kiln, 24 hours' work Total.... day), cost per 16 dozen gross. 5 hours, 24 hours, Firing fuel, 1,200 pounds coal at 16d. per ton, or $3.84 per 140-16 dozen gross. Cost of 16 dozen. PARAGRAPH 475-PIPES AND SMOKERS' ARTICLES. Cost of 12 dozen... Polishing, 7d. per gross, 12 dozen. $0.4091 Varnishing, 7d. per gross, 12 dozen. .14 Ferrules, 50 cents per gross American cost (less 45 per cent duty) .14 .345 1.375 Packing, 40 gross per day at 68. to 8s. per week, $0.3344 day, 35 per day.......... .0254 .0084 2.4429 Cost does not include heat, drying, polishing paper, or varnish. Cost account showing the cost of production of a common clay pipe in New York. Figured at 11 pounds per gross. Soaking and milling per ton, 2,000 pounds, 1 day's work, at $2. Trimming, per gross, piecework, 7 to 9 cents, average. $12.00 2. 016 .50 14.516 .0745 .0115 .295 .08 Potting and filling kiln, 2 days' work, at $2, figured at 160 gross to kiln. $4.00 1.00 Emptying kiln, 24 hours' work, at 20 cents. .50 .0344 Firing kiln, cost of coal, at $7.25 per ton, figuring 1,200 pounds, burn 160 gross.... .0272 Packing pipes, average packing 100 1-gross boxes or 50 3-gross boxes per day; average, 125 gross, equaling 934 pipe makers' gross, at $2.. .0213 16 dozen, cost.. 12 dozen, cost.. .5439 .4079 Cost account showing the cost of production of a common clay pipe in Scotland. Soaking and milling, per ton (2,000 pounds), 1 day, at 25s. per week, $1.09 per day. $0.0264 0063 Molding, per gross. 8d., 1f., piecework, 16-dozen gross .1625 .045 .0109 Firing kiln, coal at 16s. per ton, or $3.84, figuring 1,200 pounds to fire 160 gross. .0144 Packing pipes, average day's work, 100 1-gross boxes or 50 3-gross boxes or 150 gross; average of 125 12-dozen gross per day or 931 16-dozen gross per day; a cost of 88. per week, or $1.92, in 10 hours work .0037 Cost of 16 dozen.. Cost of 12 dozen... .2692 .2019 |