The CHAIRMAN. I ask you if that is not a fact, that it is doubling the duty?

Mr. MEYERCORD. In some instances and not in others.

The CHAIRMAN. I hope you will explain what effect that would have on the industries which use these things.

Mr. MEYERCORD. Yes, sir.

Decalcomania transfers: Ceramic prints on simplex paper, $2.50 per pound. It might be well for the committee to see a sample.

The CHAIRMAN. We understand about that. That is not a new subject.

Mr. MEYERCORD:

Ceramic prints on duplex paper, 70 cents per pound.

Simplex is the single sheet. Duplex is the double sheet in the form it is printed [exhibiting sample].

Decalcomania transfers backed with metal leaf, 70 cents per pound.

All other decalcomania transfers, 45 cents per pound.

Here is an amendment to the present schedule which reads:

If any article in schedule is manufactured of lithographic prints of different thicknesses, the major portion in size shall control the rate.

The object of that is, sometimes there are two types of lithographs pasted together-one is thin stock and the other thick stock-and they come within different divisions of the schedule on account of the unit of thickness. We take the major portion in size as the dividing line as to which class it shall come under. The object of that is to prevent any ambiguity in the schedule or in the classification.

A further recommendation which we make reads:

We recommend that paragraph 398 be amended to exclude all papers printed by lithographic process, so that all lithographic products will fall within the purview of paragraph 400 as amended herein.

There have been numerous court decisions and great confusion as to paragraph 400. It is probably one of the most confusing paragraphs to interpret in the entire Dingley tariff act. We seek to eliminate that confusion and bring every item of lithography under the purview of paragraph 400.

The CHAIRMAN. How much would that increase the duty?

Mr. MEYERCORD. That would be about a stand-off, in some cases lowering and in some cases raising the duty. You might cite instances where paragraph 400 will even apparently double the duty, will put some items at a very small ad valorem and other items at a prohibitive rate; but the general intent is to clarify the air in the sense of seeking to adhere to practically a uniform standard of protection.

The CHAIRMAN. Why not bring those items in under paragraph 398?

Mr. MEYERCORD. Simply because there are provisions here that cover them in paragraph 400, under eight one-thousandths of an inch in thickness. In other words, the surface-coated paper lithographic prints represent a sheet form of product that comes in intended to be used on the outside of candy boxes and the like, and the same process of manufacture would be used for a print that would come under that part of the paragraph reading, "not exceeding eight one-thou

sandths of 1 inch in thickness." It is the same principle and there is no sense in having that come under a new schedule entirely.

Mr. BOUTELL. We had here the other day, when the tea schedule was under discussion, some exhibits of very elaborate packages in which the tea was imported, some of them being very elaborately engraved and lithographed, which were admitted free, as they claimed. Does this amendment cover the use of those packages?

Mr MEYERCORD. That, I should say, would come under the distinctly administrative section, it being the wrapper that contains the tea shipped to this country.

The CHAIRMAN. It turns out that was an entire mistake and that that is amply provided for.

Mr. MEYERCORD. This industry is somewhat more than 100 years old; originated in Germany and from there has spread to all countries of the world. It has assumed a very considerable magnitude and, like most industries carried on in this country (but to a greater extent than most others), the workmen have prospered, receiving large remuneration for their services, thereby becoming self-respecting, thrifty citizens.

The present tariff is a most inequitable one. It is most crudely devised, not properly divided into classes of work, making it very difficult for the government officers to determine as to what class the work belongs, and on many classes of importation affords absolutely no protection at all.

From almost all of the States of Europe, particularly from the German Empire, imports come, the reason for this being that the lithographers in Germany receive less wages than those of other States of Europe.

We should have revision because wages paid in the lithographic industry in the German Empire are, stated broadly, at the rate of 1 mark (say 24 cents) to $1 paid here.

In Germany a lithographic artist is paid 32 to 36 marks ($8 to $9) per week; a man of like ability in this country is paid from $30 to $35 per week.

In Germany a steam-press printer is paid from 20 to 32 marks ($5) to $8) per week, and from $20 to $35 per week in this country.

In Germany feeders (female labor) are paid from $3 to $4 per week, while the minimum in this country (male labor) is $10.50 per week on the smallest press and running up to $17 per week on the largest press.

A like proportion holds good in every branch of the industry.

The industry in Germany is fostered by States or municipalities. Schools of art and drawing are established and maintained at the cost of the State or municipality, thereby placing more efficient workmen in the trade than is possible at present in this country.

The unions connected with the lithographic industry in this country have established a minimum weekly wage for artists, engravers, transferers, provers, and printers of $20 per week. The employers' organization have accepted this as their own, and there is no member of an employers' association in the United States at the present time paying less than the minimum scale of wages; on the contrary, they are paying very much larger wages.

In the printing department the employers are paying a minimum rate on Nos. 1, 2, and 3 stone presses of $20 per week; Nos. 31 and 41,

$22 per week; Nos. 5 and 54, $25 per week; one-color rotary, $25 per week; two-color rotary, $27 per week; three-color rotary, $30 per week, while the wages paid are generally much higher than the mini

mum rate.

Transferers and provers are paid very much higher wages than the minimum adopted by the union, few in the larger cities working for less than $25 per week, and from that up to $40 per week.

The minimum for stone artists is $20 per week, but the great majority of artists are paid above $25 per week, their wages running up to $60 per week, while sketch artists are paid from $25 to $100 per week, or more.

The workmen in other branches of the industry are paid, as stated above, at least four times as much as is paid in Germany. This is particularly noticeable in the employinent of female labor. It can be stated that there are few, if any, work girls in this country in our industry paid less than the minimum wage of $5 per week, the great majority being paid much higher wages, while the wages paid in Germany for like labor is from $1 to $1.50 per week.

A bulletin recently issued by the United States Census Bureau shows that the average weekly wage paid to all those engaged in the lithographic industry, whether skilled or unskilled, amounts to $16.45 per week, there being only one vocation (that of lapidary) which is paid higher.

Because the manufacturers of lithographic prints in Germany sell goods in this country below the market price for the same goods in Germany, and in some cases bill goods to their own branch offices in this country at less than the market price there.

If you would like to have me qualify that statement I can show you how it is done.

A common practice being that the cost for the designing and drawing on stone is not included, but this portion of the cost is calculated upon the price for the European market; the value of such work is in many cases greater than the cost of printing and paper and is not included in the exporters' invoice. These practices result in making the figures of our Treasury Department very inaccurate and unreliable as to what the present specific duty on lithographic prints produces in ad valorem equivalent. The computations made by the Treasury Department are based on the values given on the foreign exporters' invoices, which, as above stated, are not the true value of the goods abroad.

Importations of lithographic prints (exclusive of those articles, very large in number, which were classified as "manufactures of paper ") amounted in the year 1899 to $799,475; in the year 1907 to $3,968,542; in 1908, the last fiscal year ending in July, to $4,911,102. There were several million dollars additional to that not included under paragraph 400. Approximately $7,000,000 worth of paper was imported in the last twelve months.

You will notice that we do not give the importations prior to 1899, and regret that we can not do so, which is due to the fact that all articles in the paper schedule, including lithographs, parchment papers, etc., were combined in one item in previous reports of the Treasury Department. These importations were not segregated until the end of the fiscal year 1899.

Based on the figures furnished by the Treasury Department, the specific duty transferred to an ad valorem rate (computed on the erroneous values given in the invoices) amounted to 0.1923 per cent.

To illustrate: In certain articles, such as cigar bands, the European manufacturers have taken the largest part of the market out of our hands, and a number of American manufacturers have been obliged to import the articles instead of doing the work in this country, owing to the lower cost of production abroad.

We give figures showing what the percentage of wages, paper, materials, etc., is to entire cost of production, as also the duty we have to pay under the present tariff law.

The yearly value of the product of the industry in the United States is not less than $25.000.000.

Computed on the official statistics of importations published by the Treasury Department for the fiscal year 1907 the specific and ad valorem duties were equal to 0.1923 per cent. The wages in the United States equaling 41 per cent of the cost of production stated at $17.500.000 would amount to $7.175,000, while the wages paid in Germany would amount to $1,793,750, showing increased wages paid in the United States of $5,381,250 on a production at cost of $17,500.000, which shows that the specific rate in the present tariff laws, which only produced 0.1923 per cent ad valorem, does not protect the workingman in the United States.

That we are losing business under the present tariff at a rapid rate is shown by the fact that during the depression in business in 1908 the production in the United States has decreased about 25 per cent, while the imports during the same period have increased nearly 30 per cent, thus depriving our workmen of employment.

Mr. UNDERWOOD. What is the total production in the United States?

Mr. MEYERCORD. About $25,000,000.

Mr. UNDERWOOD. And how much do the imports amount to?

Mr. MEYERCORD. About $7,000,000, which after the duty is paid and the cost of marketing, which is very large, makes it run to $11,000,000 or $12,000,000.

Mr. UNDERWOOD. I am talking about the amount of importations. Mr. MEYERCORD. About $7,000,000.

Mr. UNDERWOOD. What do the exports amount to?

Mr. MEYERCORD. I have not those figures, but I do not believe they amount to more than $1,000,000.

Mr. UNDERWOOD. Where do you send the foreign shipments to?

Mr. MEYERCORD. Where do we export to?

Mr. UNDERWOOD. Yes, sir.

Mr. MEYERCORD. Largely to Mexico, Canada, and Cuba; just our close markets.

Mr. UNDERWOOD. And you come in competition in those countries with this class of paper made in this country, or is it paper shipped from abroad?

Mr. MEYERCORD. Largely paper shipped from abroad.

The CHAIRMAN. I would suggest, Mr. Underwood, that you permit the witness to finish his statement, as there is a larger number of people to be heard to-day than yesterday.

Mr. UNDERWOOD. Very well; that is entirely satisfactory to me. I thought he had finished his statement.

Mr. MEYERCORD. It is deemed wise to separate decalcomania, and give it a separate schedule entirely. The Hon. J. B. Reynolds, Assistant Secretary of the Treasury, suggested this be done; also numerous customs officers deem it necessary. And, in view of the fact that decalcomania is a separate article of commerce, bought and sold, and has a different use than lithographs, and, further, in view of the fact that the industry represents several millions a year in sales, it is important enough to be separately classified. There are a number of factories that manufacture decalcomania in this country.

Decalcomania is a transfer picture printed either on simplex or double paper. It is transferred from this paper to furniture, machinery, pottery, glass, and the like, and consists of three distinct types for the purpose of customs classification.

Ceramic prints are all printed on duplex paper, but can be turned into simplex by stripping the tissue from the heavier backing paper. and hence when in tissue-paper form would weigh very little, only 20 to 28 pounds per thousand sheets. Ceramic decalcomania is used for decorating china and glassware, and is composed of metallic colors, which metallic colors are almost entirely imported, and now pay 30 per cent ad valorem tariff. Duplex paper never has been made. in this country, and no attempt has been made to make it in this country, and pays 35 per cent ad valorem. It was originally classified under the Dingley law under paragraph 403 at 25 per cent ad valorem. but advanced to 35 per cent ad valorem, as a result of a court decision, and classified under paragraph 407, as a manufacture of paper.

In view of the fact that the metal leaf used is aluminum leaf, and at 6 cents per hundred leaves, the tariff is equivalent to 70 per cent on the value, and as metal leaf represents a large proportion of the cost of the article, and as it weighs practically nothing, the duty is placed at 70 cents per pound.

The other than ceramic decalcomania transfers prints can not be successfully shipped as tissue stock, hence there is no need of mentioning the word simplex or duplex in connection with same.

The brief is signed by Robert M. Donaldson, Horace Reed, and myself.

The CHAIRMAN. Do you know what the domestic production under paragraph 400 was in 1905, according to the census of that year? Mr. MEYERCORD. About $25,000,000, lithographs of all kinds.

The CHAIRMAN. The importations last year were $3,930,000— about $4,000,000?