PARAGRAPHS 92-94-POTTERY.

PORTLAND, OREG., January 7, 1913.

GEO. B. JONES, Washington, D. C.:

Fully indorse proposed rates earthenware. Will cheerfully give all assistance possible.

M. SELLERS & Co.

G. B. JONES, Washington, D. C.:

KANSAS CITY, Mo., January 7-8, 1913.

We fully indorse your request for new rate of duty china 35 per cent, earthenware 25 per cent. We believe these rates to be fair alike to American manufacturers, to dealers, and to consumers. Goods in bond should be subject to new rates of duty

Par. 92, common yellow and brown earthenware kitchen utensils, salt-glaze stoneware, etc..

$14,000,000

Pars. 93 and 94, earthenware, table and toilet ware, etc...

$150,000

Total earthenware.

Pars. 93 and 94, china, tea, and table ware, bric-a-brac, and fancy ornaments.

The foreign value of earthenware imported is only 7 per cent of the domestic production and decreasing each year.

Of China the domestic production is practically all hotel china, as the domestic potter (except Lennox of Trenton) has never seriously attempted to manufacture china dinner ware, which must therefore be supplied from the foreign factories. It is true a large quantity of domestic ware is sold and misbranded china," but is actually and only earthenware.

FACTS VERSUS STATEMENTS OF WILLIAM BURGESS.

In the brief presented January 8, 1913, to the Ways and Means Committee, Mr. William Burgess, representative of the United States Potters Association, quotes a mass of statistics so flagrantly erroneous as to merit flat contradiction. He states that his figures were obtained while he occupied the position of United States consul at Tunstall, England. That was in 1890, over 20 years ago, and every intelligent man knows that industrial conditions have vastly changed in that period. His quotations for English labor and material are identically the same as he quoted before the Payne committee in 1908 (Print 28, pp. 4000-4008), and represented earnings during a period when English factories were working about three days a week. Mr. Burgess is careful to quote advances since 1908 in American labor, but entirely ignores similar material advances in the English market, and present wages under full time.

On page 372 (Underwood Tariff Hearing No. 3, p. -), Mr. Burgess compares the total cost of an American and English factory output, in a vain attempt to prove that the domestic white ware costs 78 per cent more than English. Here again Mr. Burgess's figures of 1913 are identical with those of 1908, although he claims to be paying about 20 per cent higher for labor and materials.

Here are the actual selling prices of this output based on 1912 quotations of standard brands:

The difference is 18 and not 78 per cent, and if the expense of freights, etc., be added, there would be practically no difference in cost whatever. The English ware at the port of entry, without any duty, would be almost on a parity with the domestic selling price.

We submit that the tariff of 55 and 60 per cent on earthenware is excessive and prohibitive. We urge a separate classification of paragraphs 93 and 94 for china and earthenware, with a duty not exceeding 30 per cent on earthenware.

WM. S. PITCAIRN.

GEO. B. JONES.
JOHN B. MILLER.

STATEMENT OF CHARLES L. CASEY, ESQ., REPRESENTING THE GUERNSEY EARTHENWARE CO.

PARAGRAPH 93.

Mr. HARRISON. As to what paragraph do you speak?
Mr. CASEY. Paragraph 93, Schedule B.

Mr. HARRISON. Proceed.

Mr. CASEY. I am here, gentlemen, representing the Guernsey Earthenware Co. and its employees, of Cambridge, Ohio. We ask that we be continued under the same classification with a duty of 60 per cent as now obtains by paragraph 93, Schedule B, of the act of 1909, and protesting against any reduction of the present duty.

There are many reasons for us doing so. We are manufacturing a very complete line of earthenware cooking utensils, sold under the trade nameGuernsey," consisting of brown earthenware outer body, white enamel lining inside, with a clear glaze over the whole surface. This product we have been manufacturing some 10 years, starting in a very small way along with other wares that we were manufacturing

PARAGRAPHS 92-94-POTTERY.

on so close a margin that we were fortunate to stay in business, so much so that it was simply a question of doing something, developing a new industry; in other words, a new line of earthenware in this country.

We are the first American producers of the casserole, and we believe, gentlemen, you appreciate what we have done along the lines of good cooking. In fact, to some extent we have cheapened the high cost of living, you might say, by making cheap cuts of meat more tender and delicious.

At the beginning, and for the first six years, our business grew very slowly from a few thousand dollars annually along to $45,000 in 1908, this being a period of six years strenuous hard work and discouraging results, notwithstanding the fact of paying the closest attention to details and applying modern methods, not alone in manufacturing but also finding a market and selling our product. There were many reasons for discouragement, perhaps the principal one after we had successfully mastered the manufacturing end being the classification of similar wares on import. Just about this time a decision was given by the Board of Appraisers, Customhouse, New York City, giving similar wares a classification under 55 per cent duty, and at the last hearing of the Ways and Means Committee in 1909 they gave us the benefit of an extra 5 per cent, making the present duty 60 per cent.

Now, gentlemen, during the past four years we have increased our production, we have given our labor the benefits of 20 per cent to 25 per cent increase of wages, and at the same time the consumer, the American merchant, the benefit of a reduction in price, running through the whole line from 10 per cent to 20 per cent in his cost or purchasing price. To-day he can buy our wares, or those of a similar kind on import, from 40 per cent to 50 per cent less than 10 years ago.

For instance, a custard cup, similar to the one I hold in my hand, would have cost him 72 cents per dozen duty paid on import, f. o. b. New York City, 10 years ago. To-day the same thing can be purchased on import for 47 cents per dozen, duty paid, f. o. b. New York City. Our price, f. o. b. Cambridge, Ohio, is 49 cents per dozen.

We also wish to call your attention to a few exhibits, all being standard shapes and sizes, which we have filed along with our brief, showing the difference in price on all items in favor of the foreign manufacturer or importer. Through our whole line, gentlemen, there are no exceptions. The foreign manufacturer, or, in other words, the importer, can and does undersell us from 5 per cent to 25 per cent, in some instances more, and after paying a duty of 60 per cent.

Notwithstanding these conditions, we are satisfied to meet them as competitors and ask that the present duty of 60 per cent be continued. We will file our brief and honestly ask your careful consideration of the same.

Our factory, located at Cambridge, Ohio, is open for the inspection of your committee. We will be very glad to show you our methods that you may see what we have and what we are doing.

Mr. JAMES. Are you willing to accept a rate on the article that is imported here by this underselling?

PARAGRAPHS 92-94-POTTERY.

Mr. CASEY. We are perfectly content to meet them as a competitor, for the reason that we have one advantage of being able to deliver goods promptly.

Mr. JAMES. And notwithstanding the fact they undersell you, you are still willing to meet them in the market where that is done?

Mr. CASEY. Yes, sir; the quality of the ware entering into it as a consideration.

Mr. KITCHIN. That comes in under the 60 per cent duty?
Mr. CASEY. Yes, sir.

Mr. KITCHIN. Do you have any idea how much of that class you produce is imported into this country?

Mr. CASEY. Four years ago there was something like $120,000. Mr. KITCHIN. How much do you think the American production was last year?

Mr. CASEY. How much the American production was?

Mr. KITCHIN. Yes; about?

Mr. CASEY. I do not know as to that; we sold in the vicinity of $180,000 to $185,000 last year.

Mr. KITCHIN. You do not sell all of it, do you?

Mr. CASEY. Oh, no. In the last few years possible six to seven or eight factories are manufacturing lines similar to ours, but not exclusively.

Mr. KITCHIN. Do you suppose there is as much as a million dollars of that kind of goods produced in this country?

Mr. CASEY. No.

Mr. KITCHIN. I wish in your brief you would get up the statistics of the American production of that class of articles, and also what amount you think of the $8,000,000 imported under that clause, under the 60 per cent duty, constituted this class of goods. You think about $120,000, you say?

Mr. CASEY. I should say $125,000 to $150,000. It would be hard to say without looking it up.

Mr KITCHIN. I say, look it up, and include it in your brief, if you will.

Mr. CASEY. Very well.

Mr. JAMES. What amount of goods are imported of the character where they undersell you?

Mr. CASEY. Really, I do not know.

Mr. JAMES. You have no idea at all?

Mr. CASEY. No, sir.

Mr. PALMER. When did you begin this business?

Mr. CASEY. I have been in the business about 12 years, and manufacturing this particular line something like 10 years.

Mr. PALMER. Are you engaged in the business of manufacturing this line of ware exclusively, and doing nothing else?

Mr. CASEY. Yes, sir.

Mr. PALMER. And you have been doing that exclusively for 12 years?

Mr. CASEY. Oh, no; just the last three years.

Mr. PALMER. Was there anybody else in the business of the manufacture of this kind of ware before 12 years ago?

Mr. CASEY. No, sir."

PARAGRAPHS 92-94 POTTERY.

Mr. PALMER. What was the duty on the article at that time? Mr. CASEY. It was rather a peculiar condition that faced me in this business. It was to get something, to do something

Mr. PALMER. That is what we all go into business for.

Mr. CASEY. Yes, sir. It developed after investigation that something had to be done. The business was on so close a margin. I took up the manufacturing of this particular class of ware, and after we had developed our business and experimented on it for years, and were becoming a contender on the market with the importers, foreign manufacturer, then the price was cut.

Mr. KITCHIN. The price where was cut?

Mr. CASEY. What ware was cut?

Mr. PALMER. At what point was the price cut?

Mr. CASEY. All over the country.

Mr. PALMER. What was the reason for that?

Mr. CASEY. They probably wanted to put me out of business.
Mr. PALMER. Oh, they were organized against you?

Mr. CASEY. I do not know that they were organized, but it was simply a question of getting the business.

Mr. PALMER. Because these other people who had been in business cut the price to the consumer, you asked the Ways and Means Committee three years ago to increase the duty, which they did.

Mr. CASEY. Five per cent.

Mr. PALMER. Were you able to make some money after 1909 ?
Mr. CASEY. Not very much.

Mr. PALMER. That is a very unsatisfactory answer, I do not know what "very much" means in your mind.

Mr. CASEY. We really are not entirely out of debt at this time, if that will answer the question.

Mr. PALMER. How big an investment have you got?

Mr. CASEY. I should say in the neighborhood of $140,000.

Mr. PALMER. Do you own it all yourself?

Mr. CASEY. Not all of it; no, sir.

Mr. PALMER. You were making a profit on your ware before the Payne bill was passed?

Mr. CASEY. No, sir; it was simply an uphill fight from year to year, to make ends meet.

Mr. PALMER. The 5 per cent additional duty which you received under the Payne bill made it possible for you to make a profit?

Mr. CASEY. The increase in my production and in volume of business, which I was able to do by creating a demand for my particular line, gave me some profit.

Mr. LONGWORTH. To-day there is a substantial importation of your class of goods.

Mr. CASEY. Yes. There is not a city you can go into without finding this foreign ware at a lower price than we are selling.

Mr. KITCHIN. What is the technical-the commercial name for this

class of goods?

Mr. CASEY. It is brown, white-lined enameled earthenware.
Mr. LONGWORTH. It comes in under paragraph 93?

Mr. CASEY. Yes.