Mr. PALMER. All that is bound to constitute some protection to you so you can stand foreign competition better or easier?

Mr. NOYES. Only this. I will state that the foreigners of course have this very decided advantage of us. Cloths and styles originate to a large extent in Europe, and they get the styles over there before we do, and sometimes before they come to this country. They have a real advantage in that against us, and I must confess that I think they have a great deal of ability in designing as well, so that I have no real advantage. They can operate under the same conditions as we do, and to the same extent in their favor, because they get the cloths and colors before we do.

The CHAIRMAN. That will be all.

The briefs submitted by Mr. Noyes are as follows:

BRIEF OF UNITED BUTTON Co.-VEGETABLE-IVORY BUTTONS.

COMMITTEE ON WAYS AND MEANS,

House of Representatives, Washington, D. C.

We respectfully request your honorable committee to maintain the present tariff on vegetable-ivory buttons (par. 427, tariff of 1909, Schedule N), which is three-fourths of a cent per line specific and 15 per cent ad valorem, for the following reasons:

PROFIT ON ACTUAL CAPITAL INVESTED.

During the three years of 1909, 1910, and 1911 in manufacturing and marketing vegetable-ivory buttons in this country the manufacturers made a profit on actual capital invested of less than 5 per cent.

COMPETITION..

Domestic competition, which has been very keen, is responsible for this unfortunate condition. The present tariff gave us a fair share of the American market, but competition here prevented the getting of the full benefits the tariff could have conferred upon the manufacturers.

WAGES IN EUROPE AND HERE.

Following is a comparison of wages paid in the vegetable-ivory button-producing countries of Europe, namely, England, Germany, Austria, and Italy, with the wages paid in this country:

1 Six-tenths cent per gross.

Three-eighths cent per gross.

European wages average 32 per cent of American wages.

In the above table foreign money is converted: £1-$5, 1 mark-25 cents, 1 krone- 20 cents, 1 lira- 20 cents.

72318-No. 24—13—4

From Mr. Thomas H. Norton, American consul at Chemitz, under date of July 12, 1911, we have the following as to labor paid in Germany. This differs slightly from the figures we have obtained, but does not affect the general result materially, except that it makes the difference between foreign wages and wages paid here slightly greater than our calculation:

"The female operatives upon shaping machines earn, by piecework, according to their intelligence and deftness, from 10 to 15 marks ($2.30 to $3.62 per week).

"Other females operatives attending the automatic machines are paid weekly wages of 10 to 12 marks ($2.30 to $2.86). Each one tends usually eight machines, and sometimes more. Overseers attend to the changing of the cutting tools.

"Shaders, almost invariably women, are paid sometimes by the piece, sometimes by the day. The weekly wages range from $2.38 to $3.62.

"Most of the other operations are performed by male operatives. In most cases their weekly wages range from 20 to 25 marks ($4.76 to $5.95).

"Nut sawyers, who simply saw each nut into two halves, are paid by the weight of the nuts sawed. Their wages average from 20 to 25 marks per week ($4.76 to $5.95). "Sawyers, who cut out blanks for the shaping machines, earn weekly from 25 to 30 marks ($5.95 to $7.14). Some earn as much as 35 marks ($8.33).

"Turners earn from $4.76 to $5.95, some reaching $7.14.

"Colorers earn $5.95 to $7.14. The more skilled earn $9.52.

"Color sprayers are paid by piecework. The weekly wage is usually $4.76 to $5.95, occasionally $7.14.

"General help is paid by the week. Males earn $3.57 to $4.76; females, $2.38 to $3.59."

HIGHER COST OF LABOR, RAW MATERIAL, AND EXPENSE.

Our best information is that in addition to the cost of labor in Europe (averaging but 324 per cent of what we pay), raw material there costs them approximately 10 per cent less, and their expense of doing business is about one-half of our expense.

PROTECTION needed.

Our experience for the three years 1909, 1910, and 1911 shows that our cost of production, made up of labor, raw materials, and expense exceeds the average of Europe by 67 per cent, and this is without considering any profit to the American manufacturer.

ITALY THE GREATEST MENACE.

Inasmuch as Italian wages are the lowest paid in Europe, much below the average above referred to, notwithstanding the German protective tariff vegetable-ivory buttons manufactured in Italy find a ready sale in Germany. Mr. Robert P. Skinner, consul general at Hamburg, Germany, writes May 1, 1911:

"The Italian industry is understood to be more important than the one in this country, and on account of the lower rate of wages prevailing in Italy is in a position to pay the German duty (45 marks per 100 kilograms-$10.71 per 220 pounds) and still undersell the German manufacturers in many lines."

SELLING PRICES HERE AND EUROPE.

[Information from Church Howe, consul, Manchester, England, May 31, 1911.]

Best quality coat, vest, and overcoat vegetable ivory buttons-English make.

SELLING PRICES HERE AND EUROPE-Continued.

Best quality coat, vest, and overcoat vegetable ivory buttons-English make—Continued.

[Information from Robert P. Skinner, consul general, Hamburg, Germany, May 1, 1911.]

SELLING PRICES HERE AND EUROPE-continued.

[Information from Augustus E. Ingram, consul, Bradford, England, Mar. 16, 1911.]

[Information from John L. Griffiths, Consul General, London, England, Apr. 28, 1911.]

Our selling prices average 84 per cent over European, with but a profit to us of less than 5 per cent on the capital invested.

CAN NOT LIVE WITHOUT ADEQUATE PROTECTION.

It is quite evident that with any reduction below the present tariff rate the manufacturers can not continue in business but will be forced out as they were in the two periods 1884 to 1889 and in 1893 to 1897 under the Wilson tariff of 35 per cent ad valorem, unless they reduce wages low enough to compete with the cheap labor of Europe-taking into account the tariff rate finally decided upon.

A SPECIFIC DUTY IMPERATIVE.

The opinion among the manufacturers that a specific tariff is absolutely imperative and should be maintained on this class of merchandise is unanimous; otherwise undervaluations can not be prevented-and this difficulty has presented itself with every ad valorem tariff we have ever had, as far as it related to vegetable ivory buttons. The present duty obviously can not be translated into an equivalent of ad valorem and is not equal to any given ad valorem percentage.

INCREASED COST SINCE 1897.

Since 1897 when the present tariff went into effect the cost of ivory nuts has increased from 2 cents to 6 cents per pound, and labor has nearly doubled, yet the selling price to the consumer has not been increased.

VEGETABLE IVORY BUTTONS NOT ON CHEAPEST CLOTHING AND THEREFORE IN A MEASURE A LUXURY.

Vegetable ivory buttons are not used upon the cheapest grades of clothing, but only upon the better grades. Upon the cheapest grades are used mostly horn, bone, composition, and metal, which are used in very large quantities.

EUROPE HAS ADVANTAGE ON RAW MATERIAL.

While it is true that ivory nuts come into the country free of duty as they also go into Europe free (and we earnestly hope they will continue to be permitted to come here free as long as they go into Europe free), yet Hamburg is the ivory nut market of the world and largely controls the gathering and shipping of nuts in South America to our disadvantage, and furthermore the Italian colony of Eritrea supplies the Italian manufacturers with about 5,000 to 6,000 tons yearly of nuts at about one-third the prices we have to pay for South American nuts, thus giving the Italian manufacturer a tremendous advantage.