Mr. PITKIN. No. PARAGRAPHS 92-94-POTTERY. Mr. HILL. It is simply a revenue proposition? Mr. PITKIN. Why should the Government want to put all the revenue onto a little industry and compel the people to pay a much larger price than they need to pay, or shut the entire product out of the country? Mr. HILL. They do not pay any more than if there was no duty, and the industry is carried on in this country, and it is simply the fad of having the English product, and let those who have the fad and want to cultivate it, to educate it, pay the 26 cents. Mr. PITKIN. I think they do Mr. Hill, and if the duty was lower they would not have to pay so much. Mr. HILL. Has the Englishman raised his price because of the duty here or lowered it? Mr. PITKIN. There has been very little change in the English price. Mr. HILL. Then they do not pay any more? Mr. PITKIN. For some time, but they have recently, within 60 days, raised their price on account of the increase of the price of material over there. I do not always believe what a manufacturer told me about raising the price of materials. I like to judge that myself. I am pretty well acquainted with the firm of Johnson Bros., and there is not a better firm on earth. They assured me, and I am sure they told the truth, that the increase in gold and in all kinds of materíal had obliged them to raise the price. Do you suppose they would have raised the price in the face of American competition if they had not had to? They are not such idiots as that? The CHAIRMAN. Is that all? Mr. PITKIN. May I just say one word on French china? There was a little talk about French china here this afternoon. I am an importer of French china. I buy direct. I buy of one firm from 50,000 to 100,000 francs, my total purchase of French china. I buy it as cheap as I can land it in New York. If I can say one more word, I think that the French manufacturers are being persecuted. I know them personally. I have not the slightest doubt but what they are honest men. Mr. PAYNE. Would you not feel a little better if you knew they were paying duty on fair valuation-all of them? Mr. PITKIN. I do not believe that 1 per cent of the French china coming into the United States does not pay a proper duty, and the United States Government has not got a single case against a French manufacturer-not one. Mr. PAYNE. They have had many cases. Mr. PITKIN. And got beat. Mr. PAYNE. They were running away from indictment, you know. Mr. PITKIN. Only one man ran away from indictment, and if he had stayed here his lawyer said he would have cleared him, and that was not French china; it was German china or Austrian china. They are all in the same boat. PARAGRAPHS 92-94-POTTERY. STATEMENT OF JEROME JONES, OF BOSTON, MASS. The CHAIRMAN. What paragraph do you refer to, Mr. Jones & The committee, of which I am one, consisting of Mr. Pitkin, of Chicago, and Mr. Kinney, of Cleveland, Ohio, represents the wholesalers of earthenware, china, and glass in this country, representing about $25,000,000 invested, and embracing every trade center from the Atlantic Coast to the Pacific and the Gulf. They sell imported ware and American-made ware, and they come in contact through their commercial travelers with every retail and wholesale center in the United States. Therefore they feel the pulse of the consumer, without exception, in all of these trade centers, and therefore we feel that what we have to say and have go on record is worthy of consideration of any one in authority who has the interest of the consumer at heart. Within the last few weeks there has been a decided advance in the selling value of American pottery and also of English pottery. Sea freights have nearly doubled since I testified before your committee previously, and we feel that the revenue of the country is an important matter and without considering the revenue, what would be a fair protection? They go hand in hand. We think with a reasonable protection the revenue will be increased and the American consumer will have the benefit of competition. We think the retail dealer and the consumer have a right to fair competition, and without taking up further time I will simply read the brief we have prepared and signed, and will hold myself subject to answer any question that may solve any doubt, upon which we are able to throw light. A committee of three of us have been authorized by a convention of delegates to represent those experienced in importing, wholesaling, and retailing earthenware, china, and glass in all the States of the Union. Their experience, however, is not confined entirely to imported wares, as all of us deal largely in American wares for the same use, which gives us the experience as to the comparative value and desirability of both products. Our committee have appeared before the Ways and Means Committee at hearings four years ago and prior to that, all of which are on record. None of those we represent are biased because of any ownership in either foreign or American potteries. We feel that the measures of protection provided for in the act of August 28, 1894, known as the Wilson Act, to wit, 30 and 35 per cent, were ample for the purpose of securing that measure of protection which is demanded by reason of the difference in the cost of labor and materials with a reasonable profit added. Crockery is a necessity to every family in the land. None so poor that it can do without it; the farmer, the artisan; in brief, everybody. We feel that relief by means of a substantial reduction of tariff duties should be seriously considered on behalf of the American consumer. The high cost of living will be reduced by giving the consumer the benefit of competition. As dealers we continually feel the pulse of the consuming public, and we believe that unnecessary tariff burdens are being imposed. PARAGRAPHS 92-94-POTTERY. The manufacture of American wares in our line has ceased to be an infant industry. It is now able to compete even without any protective tariff on the common lines of earthenware. In fact, more than two-thirds of the product used in this country is American made. On some of the higher grades they are not yet able to compete with the more skillful makers abroad, who have had longer experience. English earthenware is now dutiable at 55 per cent on white and 60 per cent on decorated, but adding the costly outside packages necessary to the conveyance of fragile wares, and dutiable at the same rate as contents, together with the inland freight to the foreign port and sea freight to the American port, marine insurance, etc., brings what appears to be 55 and 60 per cent duty to 75 and 95 per cent. If the tariff were reduced to 30 per cent instead of 55 and 60 per cent, the consumer would enjoy the benefit and a substantial revenue be produced for the Government. The pottery industry in the United States is growing rapidly; new kilns are being added in several of the pottery centers, notwithstanding the prospect of a reduction in the tariff tax. We have the evidence of the American potters themselves that their business is growing rapidly, and they expect to meet the competition of Europe. will quote the words of Mr. W. E. Wells on the occasion of the annual session of the United States Potters' Association, convened at the Raleigh Hotel, Washington, in December, 1905, to wit: It should be a source of much satisfaction to the officers and members of this association that we are just about to close a business year in which the volume of production of the general ware potteries has considerably exceeded that of any previous year. In view of the low prices prevailing, especially during the first few months, this showing should be considered remarkable. Again he said: We can hardly determine at this time just how much of this increase may be the result of stimulation from low prices, and how much may be due to the greatly improved business conditions of the country as compared with 1904. While there are some who still express dissatisfaction at prevailing conditions, there is unquestionably a much better feeling throughout the industry than there was a year ago and a considerably increased number of firms will close the business of this year with a showing on the right side. He also said: The British importation in total of $3,800,000 is 33 per cent less than the importation from that country for the year 1895, 10 years ago and it would seem from these statistics that the American potter is in a fair way to win the home market for W. G. wares and P. G. wares, plain and decorated. Then he said: The French china will doubtless continue to hold its place in the affections of the American people for many years to come, but the domestic pottery is rapidly becoming a competitor of the German on the fancy goods. The improved facilities for decorating introduced in recent years have revolutionized the product and the possibilities in commercial pottery and our people are beginning to realize that they are able to produce fancy goods in a style and at a price Mind you to fairly compete with anything from Europe. PARAGRAPHS 92-94-POTTERY. These were the words of the president of the United States Potters' Association, Mr. W. E. Wells, again president of the association in 1906, who made the following remarks: If volume of business alone means prosperity to the American potter, the members of this association have abundant reason for feeling satisfied with the results of the year just closing. While these quotations from Mr. Wells at the annual convention was several years ago, no one can doubt but what the volume of business has largely increased, and many new kilns are being built. Mr. H. D. Wintringer, of Steubenville, Ohio, president of the United States Potters' Association, at their annual meeting at Pittsburgh in November last, said: As an organization we have grown steadily and safely over a period of more than a third of a century until now we are producing in our own lines probably seventeen millions worth of finished product. A study of the Government's statistics for the past three years reveals some satisfactory information, chief of which is the authentic report of the total importations for the last Government fiscal year, which were $9,997,689 as compared with $11,411,665 for the previous period. An attempt was made some years ago, when the Dingley bill was pending, to ingraft an absurd provision in the form of a compound duty. The effect would have proved confusing and prohibitive, but it failed when scrutinized in the Senate. At that time telegrams were rushed in upon Senators and Members of the House from the various potteries in Ohio and New Jersey, saying that unless compound duty were provided, raising the tariff above the rates finally adopted "the pottery industry in this country would be paralyzed and the smoke from the tall chimneys would cease to rise." The crusade to ingraft specific or compound duties so much per hundred pounds, avoirdupois, and also an ad valorem attached, would have been impracticable and absurd. The compound duty was eliminated, and what happened? No paralysis of the pottery industry, the smoke continued to rise from the tall chimneys, many new kilns have been built and the industry has progressed. We believe in a simple ad valorem duty, understood by all, that will be fully and fairly collected. The rate of duty has been increased 10 per cent in 1784-1794, 20 per cent in 1816-1842, 24 per cent in 1857-1861, 40 per cent in 18641883, 55 per cent to 60 per cent under present law, plus the duty on the cost of outside packages and the geographical protection given by bringing goods from such distant points justifies our making for a substantial reduction in the tariff tax. Let me mention the fact of the steady diminution in the importation from Liverpool for the last 10 years and more, for example: In 1895, 121,374 crates and casks; 10 years later, in 1905, 45,896 crates and casks; 1911, 35,620 crates and casks. During the last 10 years the importations of French, German, and Austrian china have, on the whole, remained about stationary, in some years showing a slight increase, in others a decrease. It is from the fact that they make a class of translucent china in tableware that satisfies the pride of the farmer's wife and daughter. A plate held up to the light shows its translucency, and, while it is really china, it is made in such quantities and so attractively that it has its place in the pride of those who want something better than the ordinary opaque ware. PARAGRAPHS 92-94-POTTERY. In reference to the sale and use of English pottery, it is observed that the importations in 1911 were practically the same volume in Canada as to the United States, $2,000,000 to each country in value. In the United States these $2,000,000 paid a duty of 60 per cent plus freights and expenses, while into Canada the duty was only 15 per cent, thus saving the Canadian consumer more than a million dollars. We have formulated with great care a reclassification of what should be assessed at the low rate and that which should be assessed at the higher rate, recommending duty on the commonest, of which there is very little imported, as follows: Paragraph 92. Common yellow, brown, red, or gray earthenware, brown stoneware; plain, embossed, or salt glazed. Stoneware and crucibles, all the foregoing, not decorated in any manner, 10 per cent ad valorem. Page 93: China, porcelain, bisque, and Parian ware composed of a nonabsorbent and translucent body, not specially provided for, including clock cases with or without movements, and all other articles composed wholly or in chief value of such ware, all of the foregoing plain, embossed, or decorated in any manner, 35 per centum ad valorem. Page 94: Earthenware, stoneware, crockery, white granite, and semiporcelain, Rockingham, jet, and Samian ware, whether or not vitrified in whole or in part, or whether or not composed of a hard opaque but porous body, capable of absorbing moisture, including plates, cups, saucers and other articles or pieces, such as are commonly used in breakfast, dinner, tea, and similar table sets, toilet sets, hotel ware; pill tiles, clock cases, with or without movements, plaques, ornaments, toys, vases, statues, statuettes, mugs, steins, and lamps, together with all other articles composed wholly or in chief value of such ware, all of the foregoing, plain, embossed or decorated in any manner, 30 per cent ad valorem. We recommend a somewhat higher duty on translucent china, believing that, in adhering to the ad valorem duty, it is a fair tax, readily understood by all. For example, a cheap china dinner set of 130 pieces, if it cost $10, at 35 per cent the duty would be $3.50. If it is a richly decorated service, costing $100, the duty would be $35, as against $3.50 for the cheaper one, which figures out the ad valorem method logically. This reclassification between china and earthenware would eliminate ambiguities which often lead to litigation and long delays in liquidating an entry. We have talked with those who are familiar with the appraiser's work, and it is agreed that this would be a reasonable and desirable change in assessing duties. We can give you any necessary statistics on the comparative cost between products of earthenware and china in this country, and also of foreign wares which compete, and will supply them, if you desire it, over our signature. This is signed by Mr. E. H. Pitkin of Chicago, Mr. George W. Kinney of Cleveland, and myself. We have all been in the wholesaling of ware, both American and foreign, for our lifetime. The CHAIRMAN. Are there any questions, gentlemen? What is the import price of dinner sets of 100 pieces that retail here for $25? Mr. JONES. Well, there are so many different kinds and different makes. I should say that a dinner set that would wholesale for $15 would retail for $25. Mr. KITCHIN. On that $15 wholesale price dinner set what is the import price? |