PARAGRAPHS 92-94-POTTERY. the employees, and the wage scale which prevailed prior to the 12 per cent reduction was restored. No attempt has since been made on the part of the United States Potters Association to reduce wages. On the contrary, in many branches of the industry material wage increases have been conceded to the workmen, which, in effect, have enabled them to surround themselves with more of the necessaries and comforts of life. In view of the expressed declarations of the United States Potters Association as to what the workmen may expect should the present tariff schedules be lowered, and in view of what actually did happen between the years 1894 and 1897, when the schedules were lowered, we say to you frankly, gentlemen of the committee, and with the utmost sincerity, that if the present schedules are reduced and the growth of the pottery industry is impaired or retarded, or if the wages of our men are jeopardized or lowered, we should consider it an act of retrogression-a step backward. As prosperous as the country now is, and as considerate as our employers have been on questions affecting wages, our men to-day, with all of these things in their favor, have an exceedingly difficult mathematical problem on their hands to meet the everyday obligations of life. They assuredly do not want to take a step backward, and believing, as they do, that if the present schedules are lowered it unquestionably means a step backward, we, as their representatives, do urge upon you, Mr, Chairman and gentlemen of the committee, that the present schedules on pottery be not disturbed. FRANK H. HUTCHINS, MICHAEL KENNEDY' EDWIN JAMES WHITEHEAD, Representatives of National Brotherhood of Óperative Potters. STATEMENT OF W. E. WELLS, EAST LIVERPOOL, OHIO. Mr. WELLS. Mr. Chairman, in order to avoid any misunderstanding as to precisely the class of goods that Mr. Burgess and I represent, I want to say, in the first place, that we know nothing of the goods covered by paragraph 92. Our people do not make that class of goods. We know nothing officially of them, as to the home consumption, as to the importations, or as to the exportations. Those goods are the old milk crocks that are gray. The yellow wares, old brown or Rockingham teapots, a very few Rockingham teapots, and things of that sort, and yellow dishes are made by some of the potteries that also make our class of goods, but they are very unimportant. The thing we are talking about here, and the thing we are representing, is the white tableware, either plain or plain white, overlaid with a decoration like that [indicating], the dishes that everybody uses every day on the table. In that line we manufacture in this country somewhere between $15,000,000 and $16,000,000 per year. The importations, I believe, are in the neighborhood of $10,000,000, foreign value. To get the competing value it is obviously correct that you should designate the laid-down price of those foreign goods at the American ports. That means the addition to the foreign value of the duty and the freight laid down to our ports. We can not say precisely what that competing value is, but I do not think that Mr. Burgess's estimate is far wrong; that, in competing values, we make from fifteen to sixteen million dollars' worth of dishes-earthenware and china-in this country a year, and the competing value is in the neighborhood of twenty-two million; so that the foreigner has now, as he always has had, the better part, the larger part, of the American market. The subject is so complicated and there are so many technicalities in it that it is almost impossible in the time allotted to anyone to explain all those things to the committee so that the committee. PARAGRAPHS 92-94-POTTERY. might grasp all of these things and the significance of all the details. However, if the facts are wanted, there is only one way to get them, and that is to have some one authorized by this committee to make a thorough investigation right at first sources, and it is in connection with such an investigation that I have drawn this brief that I desire to read. The CHAIRMAN. Mr. Wells, do you cover the same subject matter as Mr. Burgess did? We allowed Mr. Burgess to run considerably over his time. Although the committee wants to get a full statement, we think we understand that very well. I do not want to cut you off, but if that brief covers the same subject, I would be glad to have you file it, and the committee will give it careful consideration. Mr. WELLS. No, Mr. Chairman; it is not exactly the same, and with your permission I would like to read it, abbreviating it as much as possible. The CHAIRMAN. All right; proceed. Mr. WELLS. Almost 80 per cent of all the earthenware dishes produced in the United States are made in the eighteenth congressional district of Ohio and the territory immediately surrounding it. Hon. J. J. Whitacre, Representative in Congress from that district, recently addressed a circular letter to many of his manufacturing constituents, including the potters, a complete copy of which is attached to this brief but which will not be read by me. After calling attention to the fact that the Ways and Means Committee will grant hearings to those desiring to be heard, he says, in the second paragraph: Personally I do not know whether the present rates on your products are too high or not. I would favor a proposition from you to the Ways and Means Committee to throw open your books and factories to the experts selected by the committee to ascertain the exact conditions that obtain in your industry as regards all matters which enter into your cost. The Pottery, Glass, and Brass Salesman, a journal of the pottery and glass trades, published in New York, in commenting upon this letter in the issue of December 26, 1912, says: Representative Whitacre consulted with members of the Ways and Means Committee before framing his address to the manufacturers, then laid it before a caucus of the Democratic members of the Ohio delegation. Now, I do not know whether that newspaper story was correct, and I asked Representative Whitacre this morning. He said he did lay this letter and his proposition before the members of the Ohio delegation, but he did not submit it to the members of the Ways and Means Committee. I will now continue with my statement. Obviously, I have no means of knowing whether this newspaper statement is correct that some members of your committee were cognizant of the proposition made by Mr. Whitacre, nor do I know whether it has your approval, but believing we all agree that whatever action you may take in adjusting the rate of duty upon pottery should be based upon an intimate knowledge of the exact facts, I desire now to extend to you an urgent invitation, upon behalf of the American potters, to do the precise thing suggested by Mr. Whitacre. We will cheerfully throw our factories and our books open to examination by any expert or any commission that you may designate PARAGRAPHS 92-94-POTTERY. for that purpose, and we will dilligently and without reservation assist in developing every fact and all statistics that may have any bearing upon the question at issue. As the result of having sent an expert representative abroad frequently during recent years to study competitive conditions in Europe, and from systematic work in gathering together the essential facts concerning home production, we have an accumulation of accurate data covering every phase of the industry, more complete perhaps than the information available concerning any other industry that will come before you for consideration. Everything we have will be cheerfully submitted to your representatives. Should you determine to make this investigation and the results should not convince any impartial individual or commission of the following facts, then we will surrender our case and willingly accept any rate of duty the wisdom of Congress may impose upon pottery. 1. That there is more money spent every year by the American "ultimate consumer" for pottery made abroad than for pottery made at home. 2. That the full equivalent of all the protection American pottery has ever enjoyed has gone into the pay envelope of the workmen and has not stuck in the office. 3. That the average wages paid to American pottery workpeople is more than 100 per cent greater than the average wages paid in competing factories abroad. 4. That the average wages paid American pottery workpeople are at least as good as those paid in any other industry of equal importance in this or any other country. 5. That the profits of the American pottery industry at large for the last three years did not exceed 63 per cent upon the actual capital invested. 6. That the profits to the manufacturer, of the importer, of the wholesaler, and the retailer are greater upon imported than upon domestic pottery. 7. That any reduction in selling price of American pottery resulting from a tariff reduction must be followed by a corresponding reduction of wages if our potteries are to continue in business. 8. That the quality has steadily improved and the cost to the ultimate consumer has steadily decreased during the growth of the American industry, retail prices being now materially lower than under the Wilson bill. 9. That the American pottery manufacturer holds no monopoly upon any part of the trade, but through difference in labor cost the foreign manufacturer holds a practical monopoly upon the market for high-class china. Obviously, I can not prove all these assertions within the time. allotted, but, acting upon another suggestion embodied in the letter of Mr. Whitacre, which extract I quote below, I desire to submit a sworn statement covering certain vital facts. The following is the extract from Mr. Whitacre's letter: If you are coming to Washington to ask any rate as necessary to your industry you should at least now come to a showing of exact facts, free from general denunciation and claptrap statements. This is a time when sound horse sense should be applied and wild statement discarded. PARAGRAPHS 92-94-POTTERY. Following that suggestion within the past week sworn statements have been given to me by 21 pottery firms, with the exception of 1 small concern, which include every firm in actual operation in the Ohio Valley, between East Liverpool, Ohio, and Wheeling, W. Va. These represent more than 50 per cent of the total production of this country in earthenware. The sworn statements set forth: First. The actual capital invested. Second. The actual sales, separately, for each of the three years, 1909, 1910, 1911. Third. The actual profits or losses, in dollars and cents, for each of these three years. Now, while I shall not expose for publication the intimate facts shown by these individual statements, I have attached to this brief a sworn statement of my own, showing the aggregate facts for these 21 factories; and, further, I stand ready to submit and have here the individual statements to any person the chairman of this committee might care to designate for that purpose. I showed a part of them to Mr. Whitacre this morning, but it would not be fair to publish these individual things, unless you gentlemen care to make that suggestion. I have a list in the brief of the 21 pottery firms, from which I have these figures, but which I will not read. This tabulation shows the following facts: That the total capital invested was $6,521,000. The total profits of 17 firms in 1909 were $461,452.62. Four of the firms lost money that year amounting to $33,883, leaving the net profits that year $427,569. In 1910 the net profit was $523,107.41. In 1911 the net profit was $356,977.48. I did not get the figures for 1912, because a lot of these people had not completed their inventories for 1912 yet last week. In percentage these profits show as follows: In 1909, 6.5 per cent; in 1910, 8 per cent; and in 1911, 5.5 per cent; a total for the three years of 20 per cent almost precisely, an average per year of 63 per cent. Now, I respectfully submit, Mr. Chairman, that these figures should be taken into account in considering a pottery tariff, and should any doubt exist as to their fairly representing conditions in the pottery trade, then the facts should be investigated at first sources by your own representative. The CHAIRMAN. I will say to you, Mr. Wells, that the Treasury statistics as to these paragraphs that we are talking about seem to sustain your position, that your industry is a highly competitive one. Mr. WELLS. Yes. The CHAIRMAN. That is the main point that we want to know. I do not care to speak for anyone but myself; but if the other members of the committee desire to accept your offer or if there is anything in the minds of the committee that they may want to bring out we will take advantage of your offer. Mr. WELLS. Thank you, sir. The CHAIRMAN. As far as the chairman is concerned the Treasury reports seem to sustain what your statements show in reference to that. We are most anxious that you should get the truth about our industry in all its details. PARAGRAPHS 92-94-POTTERY. Mr. KITCHIN. With reference to this $6,521,000 capital invested in your business, is that represented by your stock, or does that represent more than the stock issued by your companies? Mr. WELLS. That sum represents the actual cost value in dollars and cents. Mr. KITCHIN. How much stock is outstanding for that $6,521,000? Mr. WELLS. I have not the least idea, because I did not ask these people to give me the amount of their capital stock. I asked them only for the capital invested in dollars and cents. Mr. KITCHIN. I wish you would find that out and let us have it, if you can. I would like to know how much stock is out to represent that $6,521,000. Mr. WELLS. I think I am perfectly safe in saying that it is less than $6,500,000, because I do not know of a single pottery concern in the Ohio Valley, not one, that is capitalized at more than its actual investment. I do not know of a single penny of water in any pottery firm in the Ohio Valley. Mr. HILL. Mr. Wells, I am greatly interested in the expression you have made in regard to an examination of your industry. Do you know of any other industry in the United States that is not willing to submit the facts under the same conditions, and to base the duty which they have asked for on the actual facts in the case? Mr. WELLS. The representatives of many industries, Mr. Hill, have told me they would be glad to do it that way. Mr. HILL. And it is your judgment that every industry in the United States would be willing to have the same treatment? Mr. WELLS. There may be a few exceptions, but they ought to be forced to accept those conditions. Mr. HILL. I agree with you most heartily. This duty was about 60 per cent under the Dingley law and under the Payne law, and you would ask for its continuance? Mr. WELLS. Yes, sir. Mr. HILL. I understand the gentleman who represents the district in which these factories are located also asks for a continuance. Mr. WELLS. He suggested to the potters that we invite the Ways and Means Committee to make an examination. Mr. HILL. Very well. Every industry in the United States asks the same treatment at the hands of the American Congress? Mr. WELLS. Yes. Mr. HILL. And he asks for that treatment, does he not? Mr. WELLS. Yes, sir; he does not, but he indorsed what I stated Mr. HILL. Did he vote for that policy in this Congress? Mr. WELLS. Mr. Whitaker, I think, is here, and he had better answer that question. Mr. HILL. Very well. It is an important matter, Mr. Chairman, and I have the right to ask for this information. Did he not vote for the Democratic free-list bill, putting five billions of other manufactured products on the free list? Mr. SHACKLEFORD. I Would like to ask the witness here if he knows. Mr. HILL. I want to know Mr. WELLS. The records of Congress will show that. |