ment in Washington, and their suggested schedule-with certain modifications-was finally passed by Congress.

When the Dingley tariff came up for discussion, many of the more prominent American manufacturers and importers had a conference in New York, and agreed after considerable discussion to request Mr. Dingley and the Ways and Means Committee to incorporate the Wilson tariff practically as it stood in the new Dingley tariff. This was practically done, with some modifications.

Later, however, there was considerable dissatisfaction, and the schedule was made and remade a number of times. After a good deal of hard feeling and bitterness and fighting on both sides, the principal interests of American manufacturers and importers met in Washington and signed an agreement to accept the present schedule--paragraphs 398 and 400-as practically satisfactory to the interests concerned. The American lithographers had a very strong influence. and practically had everything that Congress could possibly feel was just given them in the McKinley bill, the Wilson bill, and the Dingley bill. The agreement made and signed for the Dingley tariff, I am informed, is still in existence, in the hands of the Treasury Department in Washington or at the appraisers' stores in New York.

I take the liberty of giving you somewhat of the history of this lithographic schedule, to show you that the present schedule is the result of many years of work, dissension, and discussion by all parties concerned. The American lithographers are amply protected by the present schedule. In fact, in many instances the protection is overhigh.

Owing to the peculiar nature of the lithographic business, it is wellnigh impossible for the Government, or individuals, to know what the foreign value of these articles is. The question of originals, which varies so tremendously between artists, and the question of the difference between an edition of, say, 1,000 or 50,000, makes the determining of values well-nigh impossible from an ad valorem standpoint.

The specific rate of duty puts all importers on an equal basis. The question of size, thickness, and weights is paid for equally by all, and the American manufacturer knows just what the duties would be under certain conditions.

We can speak most positively that the lithographic imports of our house are less now than they were prior to the Dingley Act. We are informed by most of the other large importers of lithographic prints that their imports of lithographic prints has decreased rather than increased.

There has been a large volume of imports of picture post cards. We are told that something over $2,000,000 per year. for several years, have been imported in this line alone. The picture post card business has been a great craze in Europe, but is now rapidly dying out. The picture post card business here has also been a craze, but has, in our judgment, reached its height, and we are importing practically no general view post cards and a limited number of Christmas, valentine, and Easter postals. We feel assured that the importation of picture post cards will materially decrease in the next few years. This post card business more than accounts for any increase in the lithographic schedule during the past few years.

The reason why certain American lithographers have felt dissatisfied with their net earnings in recent years is largely traceable to the rise of three and four color printing. Formerly all good color work had to be done by the lithographic process. Now some of the finest color work done is of the three and four color process. Pictures, illustrations for books, children's color books, toy books, post cards, and all kinds of color work are done, and done successfully, by the three and four color process. Even the most technical and difficult of the famous old masters' paintings have been and are reproduced by this three and four color process.

Mr. Meyercord and his associate members overstate the supposed amount of lithographs imported into the country, and they largely understate the actual wages paid to foreign, especially German, lithographers and labor connected with the lithographic trade.

The American lithographers are constantly reprinting the best of our designs, and using them in whole or in part in toto, practically stealing them from us without ever so much as "by your leave," and are able to produce these designs and sell them on the American market at prices less than we actually pay for the same articles landed in New York. This is proof positive that the present rate of duty is more than sufficient for protection.

As the present schedule is the result of years of work and compromise, as it now stands it is working in a fairly satisfactory way to the importers, and by Mr. Meyercord's own statements it is producing certainly all the protection that the American lithographers are entitled to.

We earnestly petition you that you maintain the present schedule, and if you feel it necessary to make certain changes to make those changes on the basis of the present schedule. Since the enactment of the Dingley tariff we, and all the importers, have had considerable difficulty in the working of the schedule. These various disputes have from time to time been taken into the courts and before the Board of General Appraisers, and have now practically all been decided, so that both the importers and the American lithographers know just the results of the working of the Dingley Act.

If you contemplate making any change in the Dingley Act, we earnestly hope you will give us an opportunity of presenting our case before you and your committee. There is one part of the Dingley Act-that part specially referring to books for children's use containing illuminated lithographic prints weighing under 16 ouncesthat should be changed. These children's color books are manufactured principally in Germany, and are of the highest art color work. The present rate of 8 cents per pound is practically prohibitive, shutting out all but a few of the very highest order. We believe this duty should be reduced from 8 cents per pound to 5 cents per pound.

In conclusion, we emphasize again the fact that what Mr. Meyercord and his committee ask for is not protection but prohibition, and we assure you and the gentlemen of your committee that the rates asked for would prove prohibitive.

We refer to the schedule as specifically applying to lithographic prints, as we know nothing concerning the cigar labels, flaps, and bands and have no interest whatever in these items, or in any form of labels.

Thanking you in advance for the courtesy of receiving this protest, E. P. DUTTON & Co.,

we are,

Faithfully, yours,

Importers.

SUPPLEMENTAL BRIEF FILED BY THE NATIONAL ASSOCIATION OF EMPLOYING LITHOGRAPHERS, CHICAGO, ILL., RELATIVE TO LITHOGRAPHIC PRINTS.

Hon. SERENO E. PAYNE,

CHICAGO, ILL., December 21, 1908.

Chairman Committee on Ways and Means,

Washington, D. C.

DEAR SIR: We present herewith the supplementary brief of the National Association of Employing Lithographers to make clearer some of the statements and answers made by our chairman, Mr. George R. Meyercord, as also to answer the briefs and statements of those opposed to our proposed substitute for paragraph 400. Mr. Underwood asks:

What is the total production in the United States?

Mr. Meyercord answers:

About $25,000,000.

While this $25,000,000 is correctly stated, yet it is also a fact that the selling value of lithographic color work in this country, in which there is competition with German lithographers, is not more than $12,000,000.

The Treasury Department statistics show that in the fiscal year 1908 there was imported under paragraph 400 lithographs to the value of $4,911,102. In addition to which it is estimated that there was also imported under paragraphs 398, 403, and 407 lithographs to the value of over $2,000,000.

It may therefore be stated that the total imports for the fiscal year 1908 amounted to at least $7,000,000. Specific and ad valorem duties transformed to ad valorem equivalent would equal in round figures 20 per cent, while freight, insurance, selling expense and profit would certainly add at least 30 per cent more; therefore the comparison of the selling value in the United States of imported lithographic color work and domestic lithographic color work is as $11,000,000 imported to $12,000,000 produced in the United States. Mr. Underwood again asks:

What do the exports amount to?

Mr. Meyercord answers:

I have not those figures, but I do not believe they amount to more than $1,000,000. The probabilities are (although we have not the exact figures) that they do not amount to more than $150,000. A very considerable part of this is in advertising matter for American manufacturers to advertise their products abroad, and not for lithographic work for foreign consumption or manufacture.

The chairman asks:

What proportion of the domestic production is used by manufacturers?

Mr. Meyercord answers:

I venture to say they consume 90 per cent of it.

This answer should be amplified by stating that fully 60 per cent of all lithographic color work produced in the United States is used by the manufacturers for advertising purposes, and does not enter directly into the cost of their goods, nor are they compelled to use lithography; there are many other processes which they could use if they so desire; while another 20 per cent is for so-called art productions, leaving only 20 per cent of the entire product used by manufacturers as an item entering into costs of their goods.

(We file the following answers to brief and statement of Mr. John G. Duffy, representing Louis C. Wagner & Co., and Charles Stutz Company of New York, and to the statement of Mr. Louis C. Wagner, of New York, and to the statement of Mr. I. Wolf, of Philadelphia, made before the Ways and Means Committee of the House of Representatives, on the tariff hearings, on Saturday, November 21, 1908.) Mr. Duffy states:

It is also a fact that there has not been a single year under the Dingley tariff when there was imported into this country $200,000 worth of this item of lithographic prints [i. e., cigar labels, flaps, and bands].

The statistics of the custom-house at the port of New York alone will show for the fiscal year ended June 30, 1907, there were imports. of lithographic cigar labels, flaps, and bands (at the very erroneous and misleading values given in the invoices of the importers) in an aggregate of $342,834.80; and for 1908, under still lower invoice values and a year of great depression in business, $337,016.04.

Mr. Duffy states that the duty ran from 44 per cent to 73 per cent. Again, the statistics of the custom-house at the port of New York will show for the fiscal year ended June 30, 1907, that the specific duty, transformed to ad valorem equivalent, ran from 17.88 per cent to 46.67 per cent, and the latter figure of 46.67 per cent was on importations to the value of exactly $12, while the largest item in importations of cigar labels, flaps, and bands, "printed in less than eight colors, but not including metal leaf printing," amounted to $216,746.80, which at the specific duty of 20 cents per pound transferred to its ad valorem equivalent, equaled 20.94 per cent. For the year 1908 the imports of cigar labels, flaps, and bands printed in less than eight colors amounted to $206,771.50, which at the specific rate of duty, 20 cents per pound, transferred to its ad valorem equivalent, equaled 23.95 per cent. This seeming increase of ad valorem equivalent in 1908 is accounted for by the lower valuations in the invoices of the German exporters, for while the weight of lithographs in 1907 amounted to 226,886 pounds, in 1908 the weight amounted to 247,652 pounds. Under a specific duty, the lower the valuation the higher will be the ad valorem equivalent.

Mr. Duffy also states

A set of cigar labels costs about 44 cents a box, and sometimes more.

This is absolutely incorrect and misleading. The average cost of labels, flaps, and trimmings of a box is less than 40 cents on the average cost of $40 per thousand cigars; therefore if the cigars were packed 50 in a box, the cost would be 2 cents per box.

61318-SCHED M-09- -22

In the brief by Mr. Duffy for Mr. Louis C. Wagner and others it is stated

prior to the act of 1894 no distinction was made between this class of merchandise (i. e., cigar labels, flaps, and bands) and other lithographic prints.

This is true in part, for there were practically no importations of cigar bands in 1894, nor when the Dingley tariff act was enacted in 1897. If there had been any quantity of such merchandise imported, it would have been properly covered in the Dingley tariff act. We are now seeking to protect an industry in the United States for the production of this class of lithographic color work.

There has been some fear that giving the protection asked for by the lithographers of this country would work a hardship to the ultimate consumer. This is best answered by stating that the average cost to the cigar manufacturer for cigar bands is 3 cents for each box of 100 cigars. The manufacturers, because of competition with each other, have been compelled to use these cigar bands, so that each particular brand of cigar is identified by the band.

You will undoubtedly note that this brief of Mr. Wagner's was drawn up by two firms of attorneys who have absolutely no knowledge of the subject which they are discussing.

The brief for Louis C. Wagner & Co. and Charles Stutz & Co., of New York, was intended to be misleading; they state:

It is also known that the American lithographers, besides possessing a practical monopoly of the trade in cigar labels on this side, have for many years invaded the foreign markets, particularly Germany, where imported labels are produced.

Mr. Wagner states:

Just one moment. It was said a while ago by my predecessor that there were no cigar labels exported to Europe. I have here some samples of the American Lithographic Company showing their agent in Holland, another one showing their agent in London, and another one showing their agent in Hamburg. They do export their cigar labels right into England and Germany in competition with those made in those countries.

In answer we say that this lithographic establishment is the only one in the United States who within recent years has exported cigar labels to any extent. We have had access to their books and find the exports were as follows:

Contrast the exports during the year 1907, amounting to $4,834.20, with the imports for the year 1907, amounting to $342,834.80, and you will see how flagrantly misleading the brief for Wagner is, as also his statement.