mitted to the committee, marked Sample No. 1, No. 2, No. 3, and No. 4, are correct and true within my knowledge; that said specimens were obtained by me in the ordinary course of trade and that the prices set forth were the actual prices paid by us in ordinary course of business; that our company purchases domestic labels as well as the imported ones, and that we find that the domestic article is and has been for some years crowding the imported labels out of this market. So much is this true that the importation of cigar labels is now carried on by not over four or five firms, whereas there has been a great increase in their consumption within recent years. I was present at the hearing of the committee on the 21st instant and heard the statement of George R. Meyercord, the first gentleman heard that day. The congestion of business before the committee prohibited my having a hearing, and I desire now to contradict certain statements of Mr. Meyercord. He said that in some instances the rates he proposed were double the present rates, but that this would not be so in others. With only three exceptions, the rates proposed by him on cigar labels, flaps, and bands would be double, treble, or quadruple the present duties. He proposed an additional duty of 10 cents per pound on all goods showing an embossing. In ninety-nine cases out of one hundred domestic as well as imported labels are embossed, and every cigar band, without exception, is embossed. Many labels are imported printed in five colors and bronze, the bronze printing under the present tariff counting as two colors, though the actual commercial value of such printing has never been considered more than one and one-half colors. This class of labels is now classified as printed in seven colors, duty at 20 cents per pound. Under Mr. Meyercord's schedule it would be considered eight colors and, with the additional duty for embossing, dutiable at 50 cents per pound. Cigar bands printed in five colors and bronze and embossed, dutiable at present at 20 cents per pound, would pay 90 cents per pound according to Mr. Meyercord. It is so evident that Mr. Meyercord's entire schedule is outrageously high that I forbear going through the list of rates and classifications proposed by him on cigar labels, flaps, and bands. Referring to the statement of Mr. Meyercord that European manufacturers have taken the largest part of the market from domestic lithogaphers, I have to state that it is my experience that cigar bands, as well as labels and flaps, are produced and sold by domesic manufacturers at about the same price as similar goods would cost us in Germany. I do not believe the statement of Mr. Meyercord, in answer to Mr. Crumpacker's question, that an importer of these goods "has a better footing by 25 per cent" than the domestic manufacturer. As I have stated, domestic work is produced and sold to the trade at the same prices and in many cases lower than the foreign cost of like goods. Besides, the importation of cigar labels in the last ten or twelve years has not increased, but has rather decreased, so that Mr. Meyercord can not be referring to this class of work when he makes the statement that imports have increased 1,000 per cent under the Dingley Act. In conclusion, Mr. Meyercord admits that the Wilson-Gorman Act allowed the American lithographers reasonable protection. As the present rates in the Dingley Act are higher on cigar labels, flaps, and bands than they were in the Wilson-Gorman Act, any advance now would immediately destroy the entire importing business in this line. Sworn to before me this 30th day of November, 1908. [SEAL.] JACOB LAUX. PETER J. HALPIN, Notary Public, No. 265, N. Y. County. CITY AND COUNTY OF NEW YORK, State of New York, ss: Louis C. Wagner, being duly svorn, says: I am the Louis C. Wagner mentioned in the brief for importers of cigar labels, flaps, and bands. I have carefully examined the figures in the tabulation and do declare of my own knowledge that the same are correct and true; that said figures represent the actual selling prices in Germany of the labels and prints referred to. I have also examined the comparison of cost and selling prices here and in Germany between the domestic and imported labels referred to in said brief as Samples K, G, E. F, and H, or otherwise described by their particular names, e. g., Mi Favor 61318-SCHED M-09-19 ita," and do declare that the same, as actually current in the market, are correctly set forth in said brief, and further that these labels represent the whole line of such merchandise as now dealt in. I am the largest importer of cigar labels, flaps, and bands. Beside myself there are at most four other firms engaged in this business, in which under the Dingley tariff act the importations have in no single year equaled $200,000 value. I unqualifiedly deny the statement of Mr. Meyercord so far as the same relates to cigar labels and flaps, which statement reads: "Mr. MEYERCORD. You must understand, Mr. Chairman, that there is a large part of this business that is original orders, quick delivery, duplicates, with only six months' time given. It is the duplicate business, or the staple end of the game, that the importer is now getting the better of the American manufacturer." The situation in my trade is precisely the reverse of what Mr. Meyercord alleges. Orders for duplicate editions are made here almost entirely, being copied from the imported designs. This is because of the present excessive duties. Sworn to before me this 30th day of November, 1908. [SEAL.] LOUIS C. WAGNER. CHARLES C. SHIELDS, CITY AND COUNTY OF NEW YORK, State of New York, ss: Hugo Brüning, being duly sworn, says: I am a member of the firm of Heinrich & August Brüning, manufacturers of cigar labels, flaps, and bands, whose place of business is at Hanau, Germany. I happen to be at this time making a tour of the United States and Canada seeking to obtain orders. I have met Louis C. Wagner and Jacob Laux, of this city, who have acquainted me with the pending revision of the tariff, and I desire to make a brief statement under eath, which I was prepared to do on the 21st instant before the committee at Washington but, because of the lack of time at the committee's disposal, I could not be heard. It is a fact that foreign manufacturers find it very difficult to sell in this country any cigar labels and flaps other than first editions; these we are able to sell in some measure, for the reason that we present novel designs which make a strong appeal to the trade. Once our first edition is produced here the American lithographer easily copies it, and is able to sell subsequent editions of the same design well under our figures. It is rare that we can market in this country an edition exceeding 10,000 sets, whereas editions of 50,000 form a very large proportion of the sales made here. Abroad the foreign lithographer is meeting active competition from American goods which are put out there at prices lower than I find quoted here in New York by the same manufacturers, and even lower in many cases than we are able to sell at. The duties on such work in continental countries are generally so trivial as not substantially to figure in the cost of marketing the goods. With regard to the conditions in German factories (where all imported cigar labels, flaps, and brands are made), I desire to state, speaking from my experience: The workmen there are not as quick as American workmen; their usual day's run is between 3,500 and 4,000 sheets, but never over 4,000; they work eight and one-half hours every day except Saturday, when the time is seven and one-half hours. In the United States a day's run is from 6,000 to 7,000 sheets. In answer to some of the statements I heard Mr. Meyercord make before the committee, I declare: Wages of lithographic workers in Germany are not lower than those prevailing elsewhere on the Continent; they are as follows: Lithographic artists, 32 to 45 marks per week (eight hours per day and seven hours on Saturday); press printers, 27 to 40 marks per week; feeders, 17 marks per week average. There are no free artists' schools for lithographers maintained in Germany, as alleged by Mr. Meyercord. Only the evening schools, such as are common in this country, are maintained by the state without charge. The labor unions have a strong organization in Germany and have succeeded in many factories in limiting the number of apprentices to be employed, which has and will continue to have as a natural result the steady growth of wages in this industry. If the differences between wages here and abroad alleged by Mr. Meyercord actually existed that fact would long since have been evidenced by substantial emigration to this country of German lithographers. I know that no such emigration has occurred. HUGO BRÜNING. Sworn to before me this 28th day of November, 1908. [SEAL.] CHARLES C. SHIELDS, Notary Public. STATEMENT OF I. WOLF, JR., OF PHILADELPHIA, RELATIVE TO DUTIES ON LITHOGRAPHIC PRINTS. SATURDAY, November 21, 1908. The CHAIRMAN. What do you wish to talk about, Mr. Wolf? Mr. WOLF. I just want to make one or two remarks in reference to the importation and manufacture of lithographic prints in this country and abroad. We are one of the largest producers, I believe, of American lithographic goods in this country, and at the same time the largest importers of foreign goods. The question of increasing the business has been largely on account of postal cards in the last few years—that is, the large increase in the lithographic business in the last few years has been a question of postal cards, and we are importing them in very large quantities, but we find that now within the last year the product in America is becoming very large, and we can not with the foreign goods compete, as against the American goods. In other words, we are buying goods in Europe which cost us 8 marks, or $1.94, a thousand in lots, and we can buy the same goods produced in this country for $1.65, and the lithographers here give equally good work as we get abroad. The duty on postal cards is 5 cents a pound, and they weigh about 10 pounds to the thousand, and that would be 50 cents a thousand. In other words, the goods that cost us 8 marks in Germany, and figuring the duty at 50 cents, would make the imported goods stand us $2.44. We can submit to you gentlemen estimates and samples of both the foreign and American production, and I think we are fully protected in the American market by the duty now existing. Mr. BONYNGE. Do you want any change made in the duty? Mr. WOLF. No, sir; we do not want it reduced. Mr. BONYNGE. You do not want it reduced? Mr. WOLF. We will take a reduction, but we do not ask for it. The printers are fully protected, and we think the present mode is a very just mode of assessing the duty. When the duty was at the Dingley rate a number of foreign manufacturers would fix the price so that it was difficult to arrive at the value. It was very difficult to get at the proper value, and the American lithographers at the time the last bill was passed met and agreed upon this bill; we agreed upon this bill ourselves, and agreed that it was the most fair arrangement that could be made, so that the United States Government could collect the same rate of duty from everybody, and not give the foreign manufacturers any advantage, so far as the rate of duty was concerned. Mr. HILL. Are your goods admitted free now to Germany? Mr. BONYNGE. Do you send any of your goods to Germany? Mr. HILL. France does, does she not? Mr. WOLF. France sends some to Germany. Mr. HILL. And they go in free? Mr. WOLF. Yes. Mr. GAINES. Do we send any to France and Germany? Mr. WOLF. The exportation is very little. The French have not gone into the art work in that line. The class of goods imported from Germany to America are lithographic prints, which are comparatively art reproductions, and also things used for advertising purposes. The American market up to the present time has occupied itself largely with lithographic prints for advertising purposes. They are going largely into calendars and advertisements, which go into foreign countries. Mr. HILL. What countries do you export to? THE ROSE COMPANY, PHILADELPHIA, PA., ASKS INCREASED DUTY ON POST CARDS, CALENDARS, AND PICTURES. PHILADELPHIA, PA., November 25, 1908. CHAIRMAN COMMITTEE ON WAYS AND MEANS, Washington, D. C. DEAR SIR: We beg to submit to you the following, relative to the duty on post cards, calendars, and pictures: When the present tariff was established there was no post card and very little domestic calendar industry in this country, therefore no tariff was arranged to protect it. Since that time the business has developed enormously, and millions of cards are now being manufactured every month. Far greater quantities of cards are being imported than are manufactured here, however, and for obvious reasons. Our cost for labor is far in excess of the European cost, and European manufacturers have the advantage of hundreds of thousands of old plates that they are utilizing on cards shipped to this country. European manufacturers of post cards, pictures, and calendars openly state that American manufacturers have made great progress within the past few years, and are strong competitors, but that they are safe so far as the better class of work is concerned, because the cost of American labor will not permit the production of the higher class of work at prices to compete with the foreign production. This is manifestly true, because the duty of 5 cents per pound is absurd. A thousand post cards weigh about 8 pounds, and the duty of 5 cents per pound is very little protection on a cheap card, and on a high-priced article the duty is absolutely no protection whatever. If American manufacturers and publishers were given fair protection, it would mean tremendous strides toward the betterment of the industry. It would be a great encouragement to thousands of artists, engravers, printers, pressmen, and to manufacturers of cardboard and paper. Work produced during the past year by many of the American publishers proves beyond question that so far as quality of work is concerned there will be no difficulty whatever in producing it if rea sonable protection is assured. There is no reason why the tariff should not be raised. This class of work is not a necessity, but a luxury. If the prices were slightly increased to the consumer, it would work no hardship to anyone, but, as a matter of fact, there would be no increase in the retail selling prices, and very little, if any, in the wholesale prices. During the past year, owing to the business depression in Europe, post cards, calendars, and pictures have been thrown into this country, millions at a time, at prices so low that American manufacturers could not possibly produce them at the price. A few American jobbers have been the gainers by this, and foreign manufacturers and mechanics have been enormously benefited, but thousands of American artisans have suffered and have been thrown out of employment. We feel that in the interest of the advancement of art, in the improvement of methods and workmanship, and in the interest of the many thousands of people now employed in this industry, and the many thousands more who will be employed if the change is made, this matter should be given a favorable consideration. We ask for a duty of not less than 50 per cent on printed. engraved, or lithographed pictures, calendars, and post cards. Yours, very truly, THE ROSE COMPANY. SAN FRANCISCO MAKERS OF POST CARDS ADVOCATE A DUTY OF ONE-FOURTH OF ONE CENT PER CARD. SAN FRANCISCO, CAL., November 28, 1908. COMMITTEE ON WAYS AND MEANS, House of Representatives, Washington, D. C. GENTLEMEN: The undersigned manufacturers of picture postal cards hereby petition your committee that in the revision of the Dingley tariff protection be given to the manufacture of picture postal cards in the United States by imposing on all imported picture postal cards a duty of one-fourth of 1 cent per card. Some forty odd years ago the publishing of picture postal cards started in Europe in a small way and grew slowly for the succeeding twenty years or more. Thereafter this industry made tremendous strides, so that now some of the foreign factories are as large as our woolen mills, some of them employing as many as 5,000 workmen. The official estimate of the number of souvenir postal cards passing through the British post-offices last year was 500,000,000, and the value placed on these cards was estimated at $5,000,000. In the United States picture postal cards became a fad first about fifteen years ago. They have grown in favor rapidly, until to-day we probably use more picture postal cards than any other country. It is estimated that as much as $200,000 a day is spent for these cards in the United States. Unfortunately, however, only a very small percentage of these cards is made in this country at the present time. We imported from Germany alone during the year 1907, 725,560,000 cards, which is more than half the total export from Germany. Owing to the big lead obtained by foreign manufacturers, American |