PARAGRAPHS 92-94-POTTERY. Mr. KITCHIN. In order to make your business successful, you have added the tariff of 60 per cent to the foreign price and this makes your price? Mr. CASEY. Yes, sir. If you were to cut the duty here a very few per cent, I question very much if we could do business at all. Mr. LONGWORTH. At 60 per cent there is substantial competition? Mr. CASEY. Yes, sir. To-day there is not a city in the United States you can not go into and see the foreign-manufactured ware, competing with ours. Mr. KITCHIN. You make yours as good as the foreign? Mr. CASEY. Yes, sir. Mr. LONGWORTH. And a little better? Mr. CASEY. I think it is a little better. Hon. OSCAR W. UNDERWOOD, CAMBRIDGE, OHIO, January 1, 1913. Chairman Committee on Ways and Means, Washington, D. C.: The Guernsey Earthenware Co. herewith submits in as condensed and compact a form as possible its application for the retention of the present rate of duty upon one line of earthenware, to wit: "Earthenware cooking utensils, brown, white-lined, enameled, provided for by paragraph 93 of Schedule B of the present act of 1909, 60 per cent. The plant is at Cambridge, Guernsey County, Ohio. Production is strictly limited by the fact that the potter's wheel and hand labor must be depended upon. Labor-saving machinery in this respect is unattainable. We can not hope, therefore, to reduce our labor cost below 55 per cent to 60 per cent. This industry falls strictly within the definition by the Supreme Court of the United States of one entitled to protection, namely: It is new in this country; it is an infant industry; it is desirable to be established; and it is handicapped by foreign competition. Ought not this "world power" to make its own stewpans? What we make is cooking ware and that only. We simply can not do this business unless we can be adequately protected against European competition, that of Germany in particular. We present the following statements of fact, and shall be glad to amplify them, or to furnish proof of any or all of them: This is a new industry; because it is only 12 years old; because it makes earthenware cooking utensils (brown, white-lined, enameled), heretofore successfully made only in France and Germany. This is an infant industry; because it is new, as stated; because this is the only factory in the United States making this particular line of earthenware in such quality as can compete for quality with foreign-made ware of this class. Other factories, however, are trying. This is a native industry; because it is located in Ohio, and its earthenware is made of Ohio clays in an original and secret mixture; because much of its labor it must educate and train out of native material. This is a weak industry because it is profitless except upon a large volume of business, and because a large volume of business is impossible with American labor unless there is substantial protection against European labor. Because importing houses in this country, not being manufacturers, can temporarily cut prices and destroy this industry, and then raise prices at will, except for adequate protection. This is a growing industry. From an investment of about $55,000 in the year 1900 to a present investment of about $185,000. From about 12 to 18 employees in 1900 to 155 at present. From an original pay roll of about $560 per month to a present pay roll of $8,000 per month. From sales of this ware of about $45,000 in 1908 to about $185,000 for 1912. But without this protection this growth would have been impossible, if, in fact, the industry could have survived. This is a helpful industry because it employs, for the most part, skilled labor. Because it employs women also at better wages than they ordinarily get. This is a fair industry because the present duty of 60 per cent is no more than necessary. Because there are steady importations notwithstanding this duty. Because PARAGRAPHS 92-94-POTTERY. under this protection, it has increased the rate of wages paid from 20 per cent to 25 per cent, thus sharing with the wage earner. Because, at the same time, it has reduced its selling prices to the trade and is thus sharing with the consumer. If this protection is to be reduced, or removed, and this industry destroyed, what is to become of these many employees and of this investment? OUR PRICES FOUR YEARS AGO AND NOW. On page 1053 of the tariff hearings, Schedule B, of the Sixtieth Congress, appears our prices of certain staples of our manufacture at that time, 1908. We have materially reduced our prices to the trade for those particular lines as is shown below: Having thus, under this protection, reduced prices as well as increased wages, have we not given a square deal? FOREIGN AND DOMESTIC PRICES. We have within the past few days, after much effort, obtained prices in the open market in this country, from importers, without their knowledge, and file herewith as exhibits what we bought, and also our own corresponding ware, and also submit the following comparison of prices. The wares shown are staples in this line, representative throughout, and the comparisons of prices are for same sizes throughout. prices are by the dozen. All "Stock" is the price "Import" is the price of the foreign ware f. o. b. factory abroad with duty paid. of the same ware in stock at the importer's in New York City ready for his trade with duty paid. These custards are the only article in which we offer ware below the foreign price. We do it here, not because we get enough for the ware, but to use these as a "leader" in the trade, and charge the loss to advertising, as it were. THE PRESENT LEGISLATION. This company was formerly known as the Chambridge Art Pottery Co., its corporate name having been changed to The Guernsey Earthenware Co. It appeared under its former name before the Committee on Ways and Means of the Sixtieth Congress. Its president was heard by that committee, its brief and sundry exhibits were filed, and the report of all appears on pages 1049 et seq. of tariff hearings, section B. Prices then obtained by foreign makers, duty paid, appear upon page 1053. This company was then paying about double the wages paid in this line in Great Britain, and about three times the wages paid in Germany, as shown by Daily Consular and Trade Reports No. 3304, October 14, 1908. An effort has been made since notice of these hearings to obtain a later showing from the Department of Commerce and Labor on this point without developing any increase abroad except in one instance. This is an increase of less than 10 per cent to some of the wage earners at Stoke on Trent in Great Britain, reported in Daily Consular and Trade Reports, issue of Feb PARAGRAPHS 92-94-POTTERY. ruary 21, 1912, page 770. Manifestly any increase abroad must be negligible in comparison. Meanwhile, as is matter of common knowledge, wages in this country have materially increased." This company has meanwhile increased the average rate of wages paid in its factory by 20 per cent to 25 per cent. Therefore its argument really favors an increase of the rate of duty, though all it asks is a retention of the present rate. This company is sharing with its employees the benefits of this protection. CONCLUSION. With a growing industry, a sharing of the protection with the public, a sharing with the wage earner also, why should it be crippled or destroyed? If that is done, where will Congress provide support for these employees? Respectfully submitted. THE GUERNSEY EARTHENWARE Co., By CHARLES L. CASEY, President. STATEMENT OF WILLIAM BURGESS, OF TRENTON, N. J., REPRESENTING THE UNITED STATES POTTERS' ASSOCIATION. Mr. BURGESS. Mr. Chairman and gentlemen of the committee, within the few minutes allotted to me I can not do more than mention a few facts in connection with the pottery industry, the one in which we are so vitally interested, and about which we are so anxious at this time. Mr. JAMES. What paragraph do you have reference to? Mr. BURGESS. Paragraphs 92, 93, 94, and 95. In considering the pottery schedule, you are confronted with the following summary of facts: The pottery industry is one which requires more capital invested in proportion to the amount and value of its annual production than any industry in this country. It is one which employs more labor, in proportion to the capital invested, than almost any other. On account of the character of the materials and the processes of manufacture, machinery can be used to only a very limited extent— hand labor is indispensable. Fully 90 per cent of the total cost of pottery ware represents labor, 663 per cent actually going out in our pay envelopes. Wages to the pottery employees are among the highest paid in any industry in this country and far exceed, in difference of wages at home and abroad, the present rate of duty imposed on pottery ware. It is an industry in which capital and labor are in friendliest relations, having learned that arbitration is better than war and friendly converse than strike. All disputed questions are settled biannually. There has been no strike in 20 years. Since the establishment of the industry in the United States competition has reduced the cost almost two-thirds to the consumer, at the same time greatly improving the quality of the ware. Through all the recent history of high and advancing prices American pottery has not advanced and is sold to-day cheaper than ever in the history of potting. We are to-day supplying less than two-fifths of the total consumption of pottery ware in the United States. PARAGRAPHS 92-94-POTTERY. The average net profits of the business are less than 6 per cent on the actual cash invested. There is no trust or combination in restraint of trade in any form whatsoever; competition is free and extremely keen. The business is absolutely dependent upon some measure of protection. We have proof to substantiate every statement we make and will welcome a thorough and complete investigation of our claims on your part. Our factories and books are at your command and will be gladly opened to your authorized representative. We will also be glad to render any further assistance within our power. I beg the opportunity of submitting more at length and in detail the facts concerning our industry in the form of a brief. In what I have to say to-day and in the brief it will be my purpose to give you a conservative statement of the facts and conditions surrounding our industry without exaggeration or embellishment, for I am satisfied that a mere statement of the truth is the most potent argument I can use for the preservation of our industry. The purposes publicly expressed by your chairman and the statement of President-elect Wilson, to the effect that honest and legitimate business need fear nothing from the new administration, gave us great encouragement and put new heart into our endeavors. We class ourselves among the honest and legitimate businesses of the country, and have a right to continue to live. We have taken you at your word. The business has developed under a policy of protection, but has never made a fortune for anyone. Those who have made a competency have been extremely fortunate. Every penny of such protection has gone to the wage earner, who now stands forth as one of the best paid artisans in the United States; at the same time we have reduced the value of pottery ware to the consumer; for example, a given assorted crate of English tableware was sold at wholesale in this country in 1852, when there was no domestic competition, for $95.30; in 1864, on account of the high gold premiums, the same crate was sold for $210.75, and incidentally enabled the industry to get a start. The same assortment of ware, of vastly superior quality, now made in America, is sold for $37.59. While this has been accomplished, it has not in any way seriously interfered with competition from abroad. Statistics show that importations of 1884 were $4,945,813, and in 1912 they were $10,062,203. By comparison of the importations of 1885 and of 1912 we find as follows: I have here some little charts, which I passed to the gentlemen of the committee, prepared by us, which bring this scale down to date, showing in the first place, on chart 1, the importations from the various countries, showing how England practically had the market of this country in 1884. Germany, with very little importation, about six million. To-day Germany has far outstripped England. England is less than she was 25 years ago. Japan has become a very serious factor, and Austria has also increased very largely. On the other chart, No. 2, you will see the relative growth of the industry as compared with the importations, the upper line indicating the American value of the imported ware, giving it only 100 per cent advance over the foreign value, which is extremely low and conservative. So that the importation value in 1890 was about $14,000,000, say; that is, the American selling value of the imported stuff. To-day that is up in the neighborhood of $28,000,000. The American importations in 1890 were about $8,800,000; to-day they run up above the chart figures, near to the fifteen million mark. The CHAIRMAN. You are speaking of china there, are you notearthenware? Mr. BURGESs. Earthenware and china combined. The CHAIRMAN. You have not them separated? Mr. BURGESS. No; there is no way of separating them. Omitted. |