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STATEMENT OF MR. W. A. McCLEARY, REPRESENTING LINEN IMPORTERS AND TRADERS; LAMB, FINLEY & CO., BROOKLYN, N. Y.

Senator McCUMBER. What paragraph are you interested in? Mr. McCLEARY. I am interested in paragraphs 1009, 1010, 1012, 1013, and 1015, of Schedule 10, covering manufactures of flax.

We have had a meeting of those interests, and I represent 46 importers and traders. I have their suggestions embodied in a 2-page brief here, but the main contention is that if you allow the present rates of 30 per cent on plain woven manufactures of flax, 60 per cent on embroidered linens, 40 per cent on plain hemstitched handkerchiefs, and 35 per cent on all other linen goods to stand under the present method of classification.

Senator Smoot. You mean under the American valuation? Mr. McCLEARY. No, sir; the present method. Senator CALDER. Is that the language? Mr. McCLEARY. Well, I am going to make a suggestion that in the place of your schedules that you allow for Schedule J, with its rates and classifications to stand, and to be omitted in Schedule 10.

You ask our suggestions and that is our suggestion, and it is our opinion in connection with that that if you do that you will secure the maximum of revenue. You will give ample protection to the very small American manufacturers of flax goods. It is a strange thing in our business that if prices are advanced, whether caused by duty or by the abnormal stress of the war that proportionately the business

goes down. It is not an expanding business at all, but just seems to have remained stationary. I have been in it 34 years and in that time it has not advanced anything to speak of, and, as I say, if we have to land a towel at $8 instead of $7, that towel will fall off in proportion.

Senator Smoot. Are you an importer? Mr. McCleary. Yes, sir. I have had a good deal of experience in customs work and in other capacities, and I am now a partner in the

We are very much afraid of the American valuation. I do not know whether it is real fear, but we have to sell an awful lot of goods in advance, and until we can see just exactly how it will work we do not know how to go about our quotations.

Senator MCLEAN. The old classifications?
Mr. McCLEARY. The old rates. That is our suggestion.
Senator McCUMBER. You will file your brief, Mr. McCleary?
Mr. McCLEARY. Yes, sir.
(The brief filed by Mr. McCleary is here printed in full, as follows:)

house I represent.

BRIEF ON SCHEDULE 10.

MANUFACTURES OF FLAX.

New York, December 10, 1921. Hon. Boise PENROSE,

Chairman Senate Finance Committee, Washington, D. C. DEAR Str: The importers and dealers in flax manufactures, whose names are attached understanding that it is your desire that wherever possible merchants dealing in the same general class of goods should present a joint brief, desire to present for your consideration the iollowing suggestions regarding schedule 10. 00713_-21-PT 10

-6

1. Inasmuch as plain linen cloth, whether unbleached or bleached, is not manufactured in the United States, with the exception of a very few coarse fabrics usually mingled with cotton, it may be said that practically the entire consumption is imported from abroad, and to a very large extent such materials may justly be considered as raw materials, a very considerable yardage being processed in some way or another before sale for retail consumption.

For your information, the imported linen fabrics are made into such articles as suits, dresses, waists, shirts, collars, cuffs, handkerchiefs, embroideries, window shades, furniture covering, linings for men's clothing, men's summer wash suits, and a great many other purposes.

2. The recent experience of dealers in linen goods during the era of high prices has conclusively proved that the turn over in dollars and cents did not diller materially from years of lower prices, owing to the tremendously decreased quantity importei. Any change that would tend to increase the price to the consumer would obviously, therefore, not increase the revenue from duties. The linen manufacturers abroad would be restricted in their exports of linen to this country, the importers and the United States Government would be no better off than under the lower duty rates, and the lessened number of consumers would just be paying more for the fewer linins they must have.

3. Tra litionally, owing to keen competition, the profits in the linen trade are small and any increase, whether of market price or of duty, must immediately be passend on to the consumer. A change of schedule, therefore, would be quickly noticed throughout the land by all users of handkerchiefs, table cloths, wearing apparel, etc.

4. With few exceptions, the classiíications of the present schedule have been main tained through many tariif acts, and the methods of arriving at the just values on which to pay duty are thoroughly understood through long experience and appraisal decisions extending over a number of years. The American valuation plan is considered unworkable as found by tests applied to importations oi llax goods, and if adopted would do real damage to the linen importing industry before it would be possible for ('ongress to remedy the many deferts, or even again return to present methods.

The undernoted members of the linen trade, therefore, suggest that Schedule J be reenacted into schedule 10 exactly as it stands at the present time, both as to wording and classification, in order to avoid dislocation of trade, maintain the revenue, amply protect American manufacturers of linen and part linen merchandise, avoid unneces. sary litigation and prevent protests from consumers generally over the advance in prices that would be necessitated if there were any increases in the duty exacted.

RATES WE DESIRE TO SEE MAINTAINED.

Thirty per cent on plain woven manufactures of flax, 60 per cent on embroidered linens, 10 per cent on plain hemstitched handkerchiefs; 35 per cent on all other linen goods. Respectfully,

W. A. McC'LEARY.

LAMB, FINLEY & Co. (For Linen Importers and Traders.)

LIST OF LINEN IMPORTERS AND TRADERS REPRESENTED.

Ballin & Tavlor, New York, N. Y.; The Belfast Linen Handkerchief Co., New York, N. Y.; Brookfield Linen Co. (Ltd.), New York, N. Y.; Derryvale Linen Corporation (Ltd.), New York, N. Y.; Brown Durrell Co., Boston, Mass. ; Brown's Shamrock Linen's (Ltd.), New York, N. Y.; Carleton D. G. Co., St. Louis, Mo.; Dezell & Cunningham, New York, N. Y.; M. Doob Sons & Co., New York, N. Y.; Elms & Sellon, New York, N. Y.; William Ewart & Son (Ltd.), New York, N. Y.; Fenton & Dotter, New York, N. Y.; Freund, Freund & Co., New York, N. Y.; F. Frisch, New York, N. Y.; Glendinning, McLeish & Co. (Inc.), New York, N. Y.; John Grabam & Co., New York, N. Y.; Eugene A. IIellman & Co. (Inc.), New York, N. Y.; Helwig & Moore, New York, N. Y.; A. S. Herrmann, New York, N. Y.; Ireland Bros. (Inc.i, New York, N. Y.; Kean, Watson & Meder (Ltd.), New York, N. Y.; Laird Linen Corporation, New York, N. Y.; Lamb, Finlay & Co., New York, N. Y.; William Liddell & Co., New York, N. Y.; Linen Fabrics Importing Corporation, New York, NY.; Locke & Clarke ('o., New York, N. Y.; J. B. Locke & Potts, New York, N. Y.; Robert McBratney Co. (Inc.), New York, N. Y.; John McCann & Co., New York, NY, W. C. McClure, New York, N. Y; McCrum, Watson & Mercer, New York, N. Y.; James McCutcheon & Co., New York, N. Y.; Robert McDade (Inc.), New York,

N. Y.; W. A. McLaughlin, New York, N. Y.; Donald W. MacLeod & Co., New York,
N. Y.; Henry Matier & Co. (Ltd.), New York, N. Y.; T. K. Milliken & Son, New
York, N. Y.; Montague & Co. (Inc.), New York, N. Y.; John Ritzenthaler, New York,
N. Y.; The Old Bleach Linen Co. (Ltd.), New York, N. Y.; Perlman, Schal & Stern,
New York, N. Y.; Turtle Bros., New York, N. Y.; James F. White & Co. (Inc.), New
York, N. Y.; York Street Flax Spinning Co., New York, N. Y.; Wilmerding & Bissett,
New York, N. Y.; Thomas Young (Inc.), New York, N. Y.

Senator McCUMBER. The next witness is Mr. Goldman.
You speak on paragraph 1010 ?

STATEMENT OF MAURICE GOLDMAN, MILFORD, N. H.

Mr. GOLDMAX. Yes, sir.
Senator VCCUMBER. Where is your residence ?
Mr. GOLDMAX. Milford, N. H.
Senator MCCUMBER. You may proceed.

Mr. Goldman. We manufacture plain woven fabrics made of flax, hemp, or jute yarns, used for padding or interlining in clothing, and we are directly affected by paragraph 1010. The rate now in 1010 is straight 33} per cent ad valorem. The yarn which we have to buy-we do not spin our yarns of either flax, jute, and not much of hemp-under the paragraphs of schedule 10 have a specific rate of duty. The 33} per cent ad valorem does not overcome the specific rates which we will have to pay in buying our yarns. Therefore we can only ask that you do make our paragraph 1010 read so that it will compensate us for the manufacture of our cloths.

Senator Smoot. What rate do you want ?

Mr. GOLDMAN. I suggest that paragraph 1010 be made to read (reading:

Woven fabrics, composed wholly or in chief value of flax, hemp, or jute, exceeding thirty and not exceeding one hundred threads to the square inch, counting the warp and filling, and weighing not less than four and one-half and not more than twelve ounce per square yard, such as are commonly used as padding or interlinings in clothing, shall pay the same duty per pound as the highest rate imposed in this act upon any of the yarn of which the fabric is made, and in addition thereto 25 per centum ad valorem.

In other words, I am asking for only 25 per cent reduction as a duty for manufacturing cloth and to be compensated with the other half of the paragraph for the amount of duty which we have to pay for the yarn which we buy.

Senator McCUMBER. The committee will now adjourn, so far as the tariff hearing is concerned, until 10.30 o'clock to-morrow morning.

(The committee thereupon, at 4.20 o'clock p. m., adjourned to meet to-morrow, Tuesday, December 13, 1921, at 10.30 o'clock a. m.)

Note.—This print is for the immediate use of the Committee

and is subject to correction before the final print

TARIFF

SCHEDULE 7-AGRICULTURAL PRODUCTS AND PROVISIONS

HEARING

BEFORE THE

COMMITTEE ON FINANCE
UNITED STATES SENATE

SIXTY-SEVENTH CONGRESS

SECOND SESSION

ON

H. R. 7456

AN ACT TO PROVIDE REVENUE, TO REGULATE COMMERCE WITH FOREIGN COUNTRIES, TO ENCOURAGE THE INDUSTRIES OF THE UNITED STATES,

AND FOR OTHER PURPOSES

DECEMBER 13, 1921

PART 41

Printed for the use of the Committee on Finance

WASHINGTON
GOVERNMENT I'RINTING OFFICE

1021

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