stripped, and then in that case the average duty would be on this class of goods 35 per cent, figuring the duty at 20 cents per pound.

A specific duty is by all means the fairest for all concerned, as it would do away with undervaluations which in this line could easily be done. The reason is, that the cost of manufacture is never the same in any two factories manufacturing this line of goods. As we represent the largest number and most important factories of Europe, and are manufacturers ourselves in this country on the largest scale, we can demonstrate this fact upon request.

Domestic manufacturers of decalcomania. This industry was started in this country in 1866 by the firm of Pfeil & Weiss, Philadelphia. In 1868 Wells & Hope, Philadelphia, and Tuchfaber & Co., Cincinnati, Ohio. Then in 1888 Pfeil & Golz, Camden, N. J., and since 1893 the following manufacturers have been established in this country and have been successful:

American Decalcomania Company, which is now the American Decalcomania Works, Weehawken, N. J., owned by us and which is a large industry and growing every year.

Meyercord Company, Chicago, Ill., which is a large industry and started in a very modest way, and has grown to its present proportions under existing conditions.

National Decalcomania Company, Philadelphia, Pa.

Armour Lithographing Company, Pittsburg, Pa.

U. S. Decalcomania Company, Chicago, Ill., which concern has been reorganized and is now manufacturing under the name of "The Decalcomania Company.

Karle Lithographing Company, Rochester, N. Y.

Wolf & Co., Philadelphia, Pa.

Palm Brothers Company, Cincinnati, Ohio.

In addition to this there are many others that are in this industry but not of great importance.

This list of names will show you that all of these manufacturers have established themselves in this country and are growing from year to year under the present conditions.

Increase of duty. This would affect the pottery industry in this country more than any others, as it would increase the cost of the ceramic decalcomania to them, and, as the ceramic decalcomania has been the means of bringing the American pottery up to its present high standard because the decalcomania as furnished to them is the same quality, style, design, etc., as used by the foreign potters: therefore, decalcomania is a raw material and absolutely necessary in this particular branch of American industry.

Ceramic transfers as made in this country are of a very mediocre quality, and no domestic manufacturer of decalcomania in the ceramic line has as yet been able to produce decalcomania in the lowest, medium, or high-grade goods anything that equals the foreign manufacture; so, any increase of duty on these goods would not benefit the domestic manufacturer and would only increase the cost of this article to the user in this country.

We would also state that decalcomania, though made by the lithograph process, is not a lithograph in the full sense of the word, and would recommend that a separate paragraph be devoted to this one particular branch, so as to avoid complications such as have arisen in

the past, and by this we refer now to the decision of the Philadelphia court, under which rule the new duty is being levied and this decision is being now fought out in the courts.

For the above reasons we respectfully recommend as follows:
First. A specific duty for decalcomania.

Second. The duty to be 20 cents per pound.

Third. That no stripped goods be permitted to be imported, and, if it is permitted to import stripped goods, that in that case these goods to pay a duty equal to what the difference would be on regular duplex paper, and this would then mean that the duty would be $1 per pound.

Fourth. That decalcomania be placed under a separate paragraph, and entirely free from the schedule of lithographic material. Very respectfully submitted.

PALM, FECHTELER & Co.,

THE DETROIT (MICH.) PUBLISHING COMPANY ASKS A CONSIDERABLE INCREASE IN DUTY ON POST CARDS.

Hon. SERENO E. PAYNE,

DETROIT, MICI., December 2, 1908.

Chairman Committee on Ways and Means,

House of Representatives, Washington, D. C.

DEAR SIR: We have a factory located at Detroit, Mich., and respectfully ask an increase in the tariff imposed upon souvenir post cards imported into this country. We ask it because of ruinous competition due to foreign importations of this article.

HISTORY OF THE TRADE.

As it bears upon the present situation, we allude briefly to the history of the trade. The souvenir post-card trade of the United States is of a recent development. Prior to 1898 the total cards used were negligible and the importations of no moment. Our company was the first to develop the business here on a large scale, commencing in 1898. It was not until four or five years later that the trade attained a real magnitude. Since then the consumption has grown every year, and from three or four companies publishing these cards originally the number has increased to over one hundred companies. There are some manufacturers of cards within the United States, but most publishing houses have their cards made abroad. Also, several of the foreign manufacturers maintain agencies here both for taking orders and for distribution of their stock designs. Other foreign houses send travelers over to take orders to be manufactured abroad.

Foreign cards are made in a variety of processes-three-color, half tone, lithography, gravure, and collotype. The trade uses more and more the foreign lithographed card, principally because the duty on that card is negligible.

Millions of these foreign-made cards are imported, and the number used, as compared with the domestic-made cards, is constantly increas

ing. The Treasury Department is unable to give the number imported, on account of their not being separately classed. The writer knows no way by which exact figures can be presented to your committee. Certain it is, however, that an overwhelming proportion are of foreign manufacture. Most of the German-made cards bear the German imprint, and an examination of the sources of distribution will show on an average four German cards alone to one of domestic manufacture. During the last five years there has been a constantly increasing ratio of the use of the foreign card compared with the domestic card. Again and again customers buy abroad who say they prefer to buy at home, but can not afford the prices American makers must ask.

COST OF MANUFACTURE.

The cost of making the home card is very much in excess of the cost of the foreign card. Several items contribute, but labor is the greatest factor. It is conservative to say that the average labor employed on this industry abroad is paid one-third that of labor in the United States for equivalent work. Here is an illustration: A German lithographic pressman engaged in this work will receive from $7.50 to $12 per week, as against the American pressman, who receives $22 to $35 per week. A draftsman will receive from $6 to $10, as against $20 to $35 here. There are, of course, men in both vocations here and abroad who are receiving both more and less than the above rates, but these figures are for equivalent grades, with the American rates, if anything, understated. In large cities of the United States the rates are still higher in proportion as the quality of work increases. For unskilled work, women are often employed in capacities which are unusual in the United States and at equal discrepancies.

There is a great variation in the cost of this product, dependent upon the quality of work and size of edition. Any schedules of cost, therefore, which do not go fully into these two factors are sure to be misleading, and such schedules could not be properly presented within a letter. Averaging the range of these conditions, which are very wide, we believe that the cost allotted to an imported card under the conditions most commonly occurring will vary from one-third to two-fifths of the cost of the equivalent American card. As indicating something of the range of the product, cards are sold all the way from $1.50 per thousand to $50 per thousand.

PRESENT COST OF IMPORTATION.

Cards made by engraving or gravure are assessed 25 per cent duty, but cards made by lithography are assessed 5 cents per pound. This means an import duty of not more than 50 cents per thousand cards, which is no restriction whatever, considering the enormous difference in manufacturing cost. The low duty results from this fact. They are imported as lithographic cards under paragraph 400 and under the specifications of "not exceeding twenty-thousandths of an inch in thickness and not exceeding 35 square inches, cutting size, in dimensions." To show the absurdity of the schedule, the same cards if imported in the sheet before cutting up would pay 35 per cent duty, but because they are cut up before importation (thus completing the manufacture) they fall under the 5 cents per pound rate. It is impor

tant to note that the schedule was made before the existence of the souvenir-card business in this country. They are imported, therefore, under a rate designed to cover another article. We are not sure enough to state what it was designed for, but we think it probable it was intended to cover a form of lithographic label and not the pictorial work now known as a souvenir mailing card. Certainly at the time of the adoption of this tariff the trade did not exist and American houses were not engaged in such manufacture. The trade has been a development of the last eight years.

RESULTS OF SUCH IMPORTATION.

As above stated, we are one of the first American makers of these cards, and therefore feel competent to speak with assurance about the trade. It was difficult to get the American educated to the use of the card, but when its merits were realized the growth of the business was extremely rapid. As soon as a real market was created here at the cost of the home manufacturer, the foreign companies invaded the field, and that invasion has constantly progressed until they are dominant in the trade. The foreign manufacturer has a much larger field at home than the United States, and he considers surplus orders he takes for the American market as so much insurance against dull business in his home market and as tending to cut down his "overhead" expense. He will take orders in this market at less than his cost, or at barely cost, in order to reduce his home expense. In short, we are used as a dumping ground for the foreign makers. During the last five years there has been a continual decrease in the price of these goods, due to increased importations. The business we are able to hold at home is due to special considerations having no relation to the cost of the article, and even then we are compelled to make rates which can not be continuously endured.

REMEDY.

In order to give the American manufacturer an equal chance with the foreign manufacturer it is absolutely necessary to have a very considerable increase in the import duty. Without this he will be forced to give up the business. As to the form that import duty should take, we respectfully ask the following: We believe there should be a specific tax per card in addition to an ad valorem duty, the same as exists in the present tariff on playing cards. In that case there is a specific duty of 10 cents per pack of cards plus 20 per cent. In the case of the souvenir mailing card we think there should be a specefic duty of not less than one-fourth cent per card ($2.50 per thousand cards) plus the highest percentage rate applied to other prints of the same medium in any size. Illustration: Suppose that in the amended tariff the highest rate of duty upon lithographs in large size is 50 per cent. A lithographed card would then be imported upon payment of $2.50 per thousand cards plus 50 per cent upon the assessed value. If the card were an engraved card, then it would be imported at the percentage for engravings plus $2.50 per thousand. Quite apart from this subject, we believe the rates on lithographs should be greatly increased, but as figures on that matter will be given you separately we confine ourselves here solely to the question of souvenir mailing cards.

We will be glad to give further details if desired and also give further support to the above statements. All of which is respectfully submitted.

DETROIT PUBLISHING COMPANY.
W. A. LIVINGSTONE, Manager.

THE GRAY LITHOGRAPH COMPANY, NEW YORK CITY, ASKS PROTECTION FROM FOREIGN-MADE POST CARDS.

Hon. SERENO E. PAYNE,

NEW YORK, December 2, 1908.

Chairman Ways and Means Committee, Washington, D. C.

DEAR SIR: The tremendous increase in imports of post cards, calendars, etc., in the last few years, combined with the lack of work for the workmen in this country who produce similar material, proves conclusively that the millions of dollars invested in the lithographic plants in this country and the thousands of employees in the lithographic line in this country are being sacrificed, all for the benefit of the foreign lithographers whose product is turned out on a scale of wages that will average about one-third of the wages which have been paid to the workmen employed in the lithographic plants in the United States.

The ingenuity and skill of the lithographic manager and employer are such that with proper protection he can quickly put the thousands of workmen in the lithographic line to work who are now idle, and do so without the hardship of cutting their wages down while food products, etc., are going upward in their cost.

A new and very important line in the lithographic industry-the manufacturing of post cards-would add millions of dollars in work every year to the lithographic plants of this country, and the American taste and style would be preferred to the foreign product. The American product will be purchased provided the foreign product is not allowed to be put into this market at the very low rate at which it is now delivered here, as against the rate made necessary for the American product by reason of the rate of wages now paid to workmen in this country.

While many of the workmen in Europe receive from $5 to $8 per week in wages, the workmen doing the same class of work in the United States receive from $18 to $25 per week.

This rate of wages is only in keeping with the wages paid to workmen of the same general intelligence and ability employed in other lines of trade. There is every reason, therefore, why the wages of workmen in the lithographic line should not work downward.

It is absolutely necessary, therefore, to have a strong protective tariff on all lithographic product, particularly calendars, post cards. show cards, etc., to enable the lithographic employer to properly use the large plants already erected in this country and to properly employ at living rates of wages the large number of employees who can be given steady employment in this important branch of industry in the United States.