Mr. HILL. Will you look into the matter and let the committee know whether the American production is increasing and the foreign importation falling off, or whether the American production is decreasing and the foreign importation increasing?

Mr. RICE. I can tell you that. I will say at once that the American production is falling off. For instance, we used to make a lot of these post cards. We made them for ourselves to sell and for other people to sell, for jobbers. We quit that business because we had to; we could not continue in the business. In other words, all the photogelatin post cards made in this country to-day do not amount to anything compared to what they were a few years ago, and they are being pushed right out of the country, so that there is no market in this country. There is only one answer to that question.

Mr. UNDERWOOD. How much ad valorem duty do you have now? Mr. RICE. Twenty-five per cent. The photogelatin printed matter-the pictures, because that is what the matter consists of, practically, and there is no printed matter in the actual acceptation of the term-comes in under the head of printed matter on a 25 per cent duty.

Mr. UNDERWOOD. And you want it raised how much?

Mr. RICE. I would like to see it raised to 60 per cent.

Mr. UNDERWOOD. What effect would a duty of 60 per cent have in the trade and on the revenue?

Mr. RICE. It would put us, I think, on about an even keel, so far as purchases are concerned, with the importer, and we do not ask anything else. All we want is just to be put on an even keel. If we can not merchandise our goods and make the quality as good as the foreigner can, that is our lookout.

Mr. UNDERWOOD. Do you think that 60 per cent would exclude the foreign goods?

Mr. RICE. No, sir.

Mr. UNDERWOOD. How much of the American market would your production control?

Mr. RICE. I think we might get back what we have lost, and perhaps divide the business with them.

Mr. UNDERWOOD. You think that it would give you control of 50 per cent of the business?

Mr. RICE. I think so.

Mr. UNDERWOOD. And not more than that?

Mr. RICE. Yes; and I do not know whether we could get that.

THE CAMPBELL ART COMPANY, ELIZABETH, N. J., SUBMITS SUPPLEMENTAL BRIEF ON PHOTOGELATIN PRINTS.

ELIZABETH, N. J., December 1, 1908.

COMMITTEE ON WAYS AND MEANS,

Washington, D. C.

GENTLEMEN: We ask that the products of the photo-gelatin press be classified in the tariff schedules separately from other "printed matter," excepting photogravures, as both the process and the products differ entirely from other printed matter, and at present are not mentioned at all in the tariff. We ask that the duty on imports of photo-gelatin and photogravure work, which are similar in character,

be made not less than 60 per cent ad valorem, for the reasons stated below and in our original brief.

Strictly speaking, the photo-gelatin process is a fine art, and the work turned out by it is a luxury. The luxury. The process is very slow-500 sheets a day for one press, as against 3,000 to 5,000 from a type of lithographic press. The cost of the work, especially as a finer grade of paper must be used, is correspondingly large. This narrows our business down to art pictures (samples of which are hereto attached) and to the highest grade of commercial work, such as book inserts, post cards, expensive calendars, and the like. There is not enough art business to keep the photo-gelatin concerns going, and the commercial work, on which our very existence depends, is going elsewhere, chiefly to Germany, but also to France, Austria, and England. If individuals or publishers want book illustrations, fine catalogues, art reproductions, or high-grade post cards, they order them chiefly from abroad, unless they are in a hurry for the delivery. For more than thirty years this dainty and beautiful process has struggled along in this country without making money for anybody. One after another of those engaged in it have sunk their capital, and those remaining in it are obliged to rely on accessory lines of business in order to keep their plants running.

Abroad it is entirely different. In Germany huge factories operating 20 or more power presses each, are running from ten to fourteen hours a day and thousands of people are employed and a large fraction of the output is marketed in the United States, coming in as "printed matter," at 25 per cent, if it does not come in under the head of lithographs, etc., at a still lower duty. Here it is not considered important enough to be mentioned in the tariff, but we can assure you, gentlemen, that it is a vastly important matter to the eight or ten concerns who have invested between two and three million dollars in the business, and we trust we are not so small as to escape notice altogether in the adjustment of the tariff. We ask for at least 60 per cent ad valorem on photo-gelatin and photogravure prints and cards, and this could scarcely be called an advance of the present duty because photo-gelatin and photogravure work has not been classified at all. It would be putting us, rather late to be sure, where we belong, namely, in a position to compete successfully with foreigners who pay about one-third as much for a longer day's work, and one-half as much for materials as we are obliged to. The exports of photogelatin work from this country in 1907 were practically nothing, probably less than $10,000, and consisted almost entirely of reproductions of copyrighted pictures protected under the international copyright law. The imports for that year (1907) were $350,000 at the port of New York alone. It is conservatively estimated that $150,000 more came in at Boston, Philadelphia, and other ports of entry, making $500,000 worth of photo-gelatin imports alone without counting gravures, which also came in as "printed matter" on a 25 per cent duty. Five hundred thousand of these recently came from England on one consignment, to be framed and sold in competition with our own products.

Since submitting our original brief we have carefully investigated the output from the eight largest photo-gelatin concerns and find it to have been less than $1,000,000 for 1907, whereas the entire importation of photo-gelatin and photogravure work at all ports of entry

would run up well toward that sum. In the largest single item, post cards, all of which should have been made here, we have been put out of business. The plain cards, which are laid down in New York, duty and commission paid, at from $2 to $4 per thousand, cost nearly double that to manufacture here; and the colored cards, which are quoted at from $4 to $5 per thousand, are a still more difficult proposition. (Attached are prices quoted by dealers to substantiate the above.)

Properly protected there is no reason why the photo-gelatin process should not flourish here as well as abroad and become an important commercial factor. It is probable that an increased demand for the presses would bring about their being built here and thus create a new industry.

The question of encouraging and keeping alive the photo-gelatin process is one that means more than the mere welfare of those who are engaged in it. The process itself is invaluable for the fine reproduction of art pictures, drawings, or natural objects. It is called for by the United States Geological Survey, the National Academy of Sciences, the Bureau of Ethnology, the United States Fish Commission, the Bureau of Forestry, Smithsonian Institution, Carnegie Institute, and others. (Samples along these lines are hereto attached as evidence both of the quality and practical usefulness of the work.) We do not expect or ask for a monopoly of the market for our products. We realize that the Government is largely supported by the duties imposed on importations, and we are willing to stand our share of the burden, but a 60 per cent duty would by no means be prohibitive, and if imports fell off one-half, which is extremely improbable, the government revenues would be greater than they are to-day with a 25 per cent duty, and the other half of the business would be the salvation of those who in thirty years have never asked for help or protection, but who sorely need it now.

CAMPBELL ART COMPANY,
ARTHUR F. RICE, Vice-President.

EXHIBIT A.

NEW YORK, November 18, 1908.

The CAMPBELL ART COMPANY, City.

GENTLEMEN: In reply to your inquiry of the 17th, we are sending you, under separate cover, samples of our plain photo-gelatin cards and offer you same in lots of 25,000; that is, 1,000 each of 25 subjects, at $3.25 per 1,000. The same cards in hand painted would cost $5 per thousand extra.

We are also inclosing you some samples of the hand-painted cards, and should be pleased to soon hear from you again.

We have a cheaper hand-colored card which we offer at $7.50 per thousand, and if you want to see samples kindly let us hear from you. Our terms are 2 per cent ten days, or thirty days net, after receipt of goods.

Hoping to soon hear from you, we remain,
Yours, very truly,

LAESSIG & Co.

Per W. E. GERNAN.

EXHIBIT B.

CAMPBELL ART COMPANY,

New York, N. Y.

NEW YORK, November 18, 1908.

DEAR SIRS: Replying to your favor of the 17th instant, will say that we can make delivery of black and white gelatin cards in eight weeks after receipt of photos. Advance samples are generally received after five or six weeks, and the goods arrive two weeks later. If 25 subjects are ordered at one time, we can quote you $3.10 per 1,000, and the same card hand-colored style, best quality, at $5.75 per 1,000 f. o. b. New York, 2 per cent ten days, or thirty days net.

We also print 500 of a subject in these two styles if necessary, but of course the prices are, in proportion to the larger quantity, much higher.

We inclose you herewith a few samples of our works, and, hoping that you will favor us with your esteemed commands, we remain, Very truly, yours,

NEWFIELD & NEWFIELD.

P. S.-If you desire to buy in marks at the factory, you do pay all charges from either Berlin or Frankfort to this port. You can save about 5 per cent on the above quoted prices, but this would only pay you if you get shipments of not less than 50 mille at a time.

PAPER NOVELTIES.

[Paragraph 407.]

THE PAPER NOVELTY MANUFACTURING CO., NEW YORK CITY, ASKS A COMPOUND DUTY ON ITS PRODUCTS.

NEW YORK, November 19, 1908.

COMMITTEE ON WAYS AND MEANS,

Washington, D. C.

GENTLEMEN: We beg to file with you our brief regarding the tariff on paper decorations and paper novelties.

The products involved are paper decorations and paper novelties. These are at present classed under paragraph 407, Schedule M, as all other paper not specially provided for in this act and are at present subject to a duty of 35 per cent ad valorem.

We respectfully recommend that these articles henceforth be specially classified as paper decorations and paper novelties and that they henceforth be subject to a specific duty of 6 cents per pound and 25 per cent ad valorem. In view of this we recommend that the following paragraph be inserted into the new tariff law "On all paper decorations and paper novelties a specific duty of 6 cents per pound and 25 per cent ad valorem."

REASONS.

Letter A from S. H. Knox & Co., of Buffalo, N. Y., of the 5 and 10 cent syndicate, having eighty-odd stores, gives some idea of the quantity of this line of goods used by such a concern. This

order would (including a proportionate amount of 10-cent bells) have amounted to upward of $15,000; this entirely without any other form of paper novelties other than the red tissue bell. This concern also sells green paper bells, paper garlands and wreaths, and a conservative estimate of their complete order in paper novelties would be $20,000.

F. W. Woolworth & Co., of New York, have 200 stores, and figures proportionately they would use $47,059 worth of these goods annually. S. H. Kress & Co., of New York, and F. M. Kirby & Co., of WilkesBarre, Pa., each have 85 stores, and would use approximately $20,000 worth. J. G. McCrorey & Co., of New York, have 65 stores, and would use probably $15,000 worth annually. Then there are É. P. Charlton, of Fall River, Mass., with 32 stores; S. S. Kreage, of Detroit, Mich., with 19 stores; and several other syndicates with 10 and 15 stores, who would use proportionate amounts.

Then there are Sibley, Lindsay & Curr Company, of Rochester, N. Y., and Butler Brothers, of New York City, George Borgfield & Co., of New York, Stroebel & Wilkin Company, of New York, and several others throughout the country who use from $5,000 to $20,000 worth of goods in this line annually. Then, there are hundreds of stores who use from $500 to $3,000 worth of these goods throughout the year. At present fully 85 per cent of the business in this line goes to foreign manufacturers.

Again, calling your attention to letter "A." In reply we wrote that we would have special dies made for any size that might be desired.

Now, calling your attention to letter "B." The 5-inch bell referred to is shown by sample No. 1. The cost was 62 cents per gross to produce. We submitted bell No. 2 as one for 60 cents per gross, but it was too small. The 7-inch bell referred to was represented by No. 3, and cost was $1.044 per gross to produce. Letter No. 3 represents the regrets of Messrs. S. H. Knox & Co., and when Mr. Connable was seen by one of our representatives on the occasion of his next visit to New York he informed him that the only reason for his placing the order with an import house was because of our inability to compete in the smaller sizes of bells, in which he did his largest business.

Letter No. 4 from Messrs. Sibley, Lindsay & Curr Company, of Rochester, N. Y., shows plainly the inability of the domestic manufacturer to compete with foreign manufacture of the goods. We are using machinery identical to that used in the manufacture of the foreign article, having imported our original machines from Europe.

The differences in costs, as shown by the example cited below, must therefore be accounted for in the difference between wage scales of the different countries as compared with those existing in the United States.

Bell No. 4 is an imported bell. These would cost us 27 cents per gross to produce. These bells are sold to the jobber by the importer. at 30 cents per gross. The importer sells these goods at a profit. of 10 per cent. This 30 cents then represents the 100 per cent of cost (duty paid) and the 10 per cent profit. The cost (duty paid), therefore is 27 cents per gross. This 27 cents now represents the 100