For many years we have been manufacturing toilet brushes, and for a number of years we have tried to make some popular-priced toothbrushes, but find with our costs we are unable to compete with the European and Asiatic manufacturers, where most of this class of merchandise is made, because they are able to bring these goods into the United States for even less money than our actual bare manufacturing costs. Consequently we employ less labor than we would if brushes were protected; certainly the brush industry has never been protected under a protective tariff. A few facts bearing on the Japanese labor conditions furnish positive evidence that an equitable tariff for revenue duty should be on a higher ad valorem basis.

In Japan children are more or less employed at about 1 cent per hour (we employ no children). Women in the United States earn from 10 to 20 cents per hour; in Japan women earn from 1 to 2 cents per hour. Male labor in the United States is paid from 15 to 35 cents per hour; in Japan male labor is paid 5 cents per hour. Workers in Japan work from 7 a. m. to 6 p. m. seven days a week, generally 312 days a year-one large factory works 330 days in a year.

When modern brush machinery is introduced in Japan, such as is in general use in Europe, especially in Germany and Austria, coupled with the Japanese low-priced labor, the brush industry in the United States would be practically ruined.

As a further proof of labor costs in Japan, a few years ago an importer of Japanese products sent us some toothbrush handles made of bone ready to have the bristles drawn in. The price he quoted, duty paid to New York, in comparison with similar handles made in our own factory, showed an advantage in favor of the Japanese maker of 25 per cent, in spite of the very fact that most of the bone used in the manufacture of toothbrush handles is bought in the United States and shipped to Japan. While it is improbable that handles for toothbrushes will be made in Japan and sent to this country (United States), we simply give these facts to show that labor costs in the brush industry, especially tooth and toilet brushes, are lower in Japan than anywhere in the world, and in view of the rapidly increasing importation of brushes from Japan, our industry is not sufficiently protected. Although the United States Government does not permit Japanese labor to enter, it seems inconsistent that it does permit one of Japan's products in the form of brushes to come in in increasingly large quantities. In Austria and Germany many of the operations in the making of brushes are performed by women, where we are obliged to employ men, consequently creating a much wider difference in labor costs than is apparent in an actual comparison of wages paid. In Japan this condition is much worse, as women are paid a great deal less than in Germany and Austria. In Belgium and Germany women dress bristles and do classes of work which are not and can not be performed by wonen under United States conditions.

The foregoing statistics from the United States customs department records show conclusively that with this continued increase in importation of brushes, surely an ad valorem duty of 40 per cent is not fair to the brush industry. With a duty of 50 per cent ad valorem this importation would become smaller, and we could probably in a short time give employment to more people making brushes here. The United States census for 1909 gives the following details regarding brush manufacturing on percentage basis:

The items of expenses do not include interest on capital, depreciation of plants, or losses from bad accounts.

The item of wages, you will observe, in Massachusetts is 22 per cent among all brush manufacturers in this Commonwealth. In our own factory, Florence Manufacturing Co., one of the largest in the United States, this one item of wages alone on toothbrushes is between 30 and 40 per cent.

No very large profit is shown by these statistics to the brush industry of the United States. Furthermore, these profits would in all probability be somewhat decreased by omissions on the part of individuals who omitted to include their own salaries.

Of the various items that enter into the cost of making brushes, materials are in every country where brushes are manufactured of the same value, so that labor in the United States would be the only item which could be reduced, and that should not be on any lower basis than it is now.

Not only does labor cost less in foreign countries, but such items as rent, incidental expenses, and interest are less than in the United States.

To further show why the importation of brushes from Japan and Europe are increasing so rapidly, we ask you to kindly examine the table of statistics attached regarding wages paid in foreign countries in the manufacture of brushes. Please note the difference in wages paid between the United States and Germany and the marked difference between the United States and Japan. This statement will prove that the brush industry is not protected, and has a hard struggle with this foreign competition. Any reduction of duty would seem unreasonable, and certainly mean fewer brushes made, and the number of people employed in the brush industry in the United States would be greatly reduced.

A comparison of American and foreign wages in brush manufacturing.

Austria.-Blind skilled workers earn, per day, $0.60. Seeing skilled workers earn, per day, $1.20. Brush workers are very largely blind. perhaps 50 per cent are blind, and much of the work is done in homes. Germany.-Average male employed, per week, $6.66: average female employed, per week, $3.33: skilled males earn average of $7.14 to $9.76: skilled females earn average of $4.65 to $5.47; in small villages all minors, males. $2.14 to $4.28: females, $0.95 to $1.67.

Japan.-Males, per day, 28 to 38 cents, females, per day, 13 to 18 cents: children, per day, 8 to 11 cents; drawing hands, females, up to 22 cents per day. These rates are for all departments of brush making. Employees work in Japan 7 a. m. to 6 p. m., seven days a week, generally 312 days a year; one large factory 330 days a year.

Our company, the Florence Manufacturing Co., have our factory here at Florence, Mass. We have a cash capital invested of $200,000 in the manufacture of brushes. We employ over 500 persons making toilet brushes from the raw materials to the finished goods; that is, all the wood and bone work, handles, etc. Our pay roll is between $200,000 and $212,000 yearly. We are also using in very large quantities lumber, bone, aluminum, steel, leather, lacquers, varnishes, and many other supplies that are produced in the United States.

There are very few large brush manufacturers in the United States; most of the brushes made come from small factories. There is no brush trust or combination in the United States. Competition between American brush manufacturers is very keen, and profits are not at all large. We export a very few of our brushes, and what we do export we sell at the same prices as we do to the United States market. We'do not solicit export business; it comes to us in most cases direct, due to the fact that our brushes are trade-marked and have a national reputation created through advertising, and in this way we get inquiries in a small way from foreign countries. Respectfully submitted.

FLORENCE MANUFACTURING CO.,
WILLIAM CORDES,

Treasurer and General Manager.

STATEMENT BY FLORENCE MANUFACTURING Co., FLORENCE, MASS.-SCHEDULE N, PARAGRAPH 424, BRISTLES.

Hon. OSCAR W. Underwood,

FLORENCE, MASS., January 20, 1913.

Chairman Ways and Means Committee, Washington, D. C.

We are further handicapped in the manufacture of brushes by being obliged to pay 71 cents per pound duty on bristles, which are not produced to any extent in the United States. We petition that this duty be either reduced or removed entirely. If it is required for revenue purposes, we would be willing to have it remain as it is, provided the duty on brushes is made 50 per cent ad valorem. Respectfully submitted.

FLORENCE MANUFACTURING CO.,
WILLIAM CORDES,

Treasurer and General Manager.

The CHAIRMAN. Mr. Reynolds, I believe, has substituted Mr. Hugo Bondy in his place. Is Mr. Bondy here? [No response.] Mr. Bondy does not appear to be here.

The next witness i Mr. John Glossinger. [No response.] Mr. Glossinger does not appear to be here.

Mr. Peter A. Shanahan. appear to be here.

Mr. Norman H. Parke. Mr. Parke. [No response.] Mr. W. A. Porter.

[No response.] Mr. Shanahan does not

Is Mr. Shanahan here?

Is Mr. Shanahan here? [No response.]

Mr. NOYES. Mr. Chairman, I am Mr. Noyes. My name appears immediately after Mr. Porter, and I would ask the privilege of changing places with Mr. Porter.

The CHAIRMAN. If Mr. Porter is agreeable.

Mr. NOYES. Mr. Porter is here in the room.

The CHAIRMAN. Is that satisfactory to you, Mr. Porter?

Mr. PORTER. I relinquish my time to Mr. Noyes.

The CHAIRMAN. You do not care to appear at all?

Mr. PORTER. No, sir.

The CHAIRMAN. Very well, Mr. Noyes.

Mr. NOYES. Mr. Chairman, I ask permission to leave with your committee some little exhibits which perhaps will make our industry a little more clear to the various members of the committee. I appear, Mr. Chairman, for the German-American Button Co., of Rochester. At the same time I wish to state to you that I find here in Washington 14 other manufacturers of vegetable-ivory buttons who, unknown to me, have come here and who are on your list for hearing. In order to save the time of your honorable body, these gentlemen have waived their rights of appearing, and I will try to deal with the subject, if you will permit me to do so.

STATEMENT OF MR. HENRY T. NOYES.

The witness was duly sworn by the chairman of the committee. The CHAIRMAN. Let me call over the names of these other gentleDo you appear for all the button manufacturers?

men.

Mr. NOYES. I am appearing just for the German-American Button Co., Mr. Underwood.

The CHAIRMAN. I see.

Mr. NOYES. But I shall try to cover the situation.

The CHAIRMAN. Very well, proceed.

Mr. NOYES. I want to make clear to you, first, Mr. Chairman, that there are a good many branches to the button business. There are some 20 or 30 kinds of buttons made in the United States. The output of vegetable ivory buttons is a small output as related to the whole. Nevertheless, it is our industry and, of course, it is important to us. Vegetable ivory buttons are made from a nut found in the northern part of South America and in Africa. It is the seed of a palm tree. It is a good deal analogous to our horse-chestnut, but when grown in tropical climates, it is harder and more durable. Vegetable ivory buttons are used largely on men's clothing-on men's high grade clothing. They are novelties and are sold by reason of the fact that they are novelties, and for the styles and effects which we produce in vegetable ivory buttons. Vegetable ivory buttons, thus, in one sense, are a luxury, because the cheap buttons on cheaper clothing are made of composition, bone, rubber, metal, and other materials.

I can

Most people, I believe, think of the buttons on their clothes as either bone or rubber; but if you take a high-grade suit or a merchant-tailored suit, you will find they are made of vegetable ivory and that bone and rubber buttons are used on the cheaper grades of clothing. make the distinction rather clear, if you will permit me to file this exhibit with you. These are composition buttons [exhibiting]. The prices are stated at the side. These buttons of the German-American Button Co. are vegetable-ivory buttons, with the prices stated at the side [exhibiting]. I think it will be evident to you from these samples that ivory buttons are, to a large extent, ornamental and novel. Thus, the first point I want to make is this: That it is not a question of cheap buttons in any measure when you speak of ivory buttons. All of the manufacturers of vegetable-ivory buttons are trying to create styles and novelties. All of us have to make entirely new lines of goods every season; every six months. A button may be worth a dollar to-day and only 40 or 50 cents to-morrow. We have to make entirely new lines. That is the nature of our business. We are trying to get business from those people who want novelties and effects in buttons and who, for novelty woolens and novelty clothing, are willing to pay the price that they have to pay for buttons made of vegetableivory nuts. I want to submit to you some arguments, if you will per

mit me, and the first one would be this: That if in drafting a tariff for revenue it is justifiable to consider American labor, we have a very strong case to present to you. Our ivory nut grows, to a large extent, wild. The cost is largely in the cost of gathering and transportation. The labor, on the other hand, is the one important element in connection with the making of vegetable-ivory buttons. Speaking of our concern, I want to state that on 84 per cent of our business the labor averages 80 per cent as against 194 per cent for raw material. I further wish to state to you, and I will elaborate on it later, that wages paid in this country are three times those paid in Europe. Therefore, if you do consider labor, we have a strong case to present to you. My second point would be this: That if in drafting a tariff for revenue it is justifiable to consider the protection accorded the consumer, by reason of domestic and foreign competition, that we have a strong case to present to you.

Mr. PALMER. Is there any duty on these nuts?

Mr. NOYES. No, sir; the nuts are brought in free, as they are in all countries of Europe. Your committee has received to-day, I believe. from Price, Waterhouse & Co., of New York, accountants, a statement as to the profits of this industry for the past three years, or rather, for the years 1909, 1910, and 1911. Briefly those figures, covering 90 per cent of the industry, show that on the actual capital invested in this industry for three years of time the industry averaged 4.13 per cent per annum; that the industry for three years averaged on its sales per annum-its average sales-3.59 per cent. The figures for two years are not as good as they are for three. For the last two years we have averaged on our actual capital invested in the business 2.57 per cent profit. I wish to correct that figure. It is 2.73 per cent. Now, this does not tell all the story, gentlemen, because during those three years three or four concerns have failed, and if we were to add their losses the percentage would be less than I have given you. I ask you then, gentlemen, do you wonder at the fact that the manufacturers of buttons have come here of their own accord to ask of you a hearing? The situation with them is vital, as appears from the figures I have given to you. We have never had in the industry any agreements, pools, or things of that kind. We have not even an association, and I meet for the first time here in four or five years some of my principal competitors. When I left and came here Monday I did not expect to see over four of my competitors in business, but the others are here-some 14 or 15 of them are here to-night.

Mr. KITCHIN. What is the annual output of the whole industry in America?

Mr. NOYES. I can not give you that, only to say this: That according to the census of 1900, on the importation of nuts to the extent of 8,000 tons, the business amounted to a million one hundred thousand dollars. According to the census figures of 1905, on nuts imported to the extent of 9,800 tons, the business was $1,300,000. The importations in 1912 amounted to 11,000 tons. The census of 1910 did not distinguish this industry as apart from the others in the business. It is a small industry, as I stated in the beginning, but to those of us who are engaged in it, it is an important one. I have emphasized to you that we have no combinations of any kind in restraint of trade in the industry, and I think the figures of profit in it abundantly emphasize that fact. I also want to state to you that foreign competition has been constantly increasing under this tariff, which was adopted in 1897. It is to-day, comparatively speaking, very substantial and there is never a time when we have felt it more than we have in the last year or two.

The third point I wish to make to you is this: That if ever a combination specific and ad valorem duty has justified itself, and is justifiable to-day, it is the present combination duty on vegetable ivory buttons. This business has struggled through the past 30 years to get a foothold in America. It was utterly ruined from 1883 to 1884 utterly wiped out by the tariff of that time. It got a precarious footing under the McKinley tariff only to be utterly ruined again under the Wilson tariff when the rate of duty was 35 per cent. Since 1897 we have become, to a certain extent, established in this country.

Mr. PALMER. Who are your principal competitors?