HD UC-NRLF U *- c S vi *S M H 111 U bflO) $ IQI 6 10 $7 86 21 S 72 $8 2^ III 2 \ T T Q A 216 ! 5 fO*4 5-75 192 \ I J II.O4 217..., Q i TO 64 101 II 12 75 218 8 * 9AO 1 04 1 a i^./i 6 04 2IQ A 1 4v 4 80 IQ5... I i O Q7 220 ' 7 4-y 8 o? 196 . .. . 7 7 y-y/ 8 72 !22I Q I IO 45 197 A 7 4 60 i 222 7 O 1M*K> 8 91 198 2 SO4 22 ? 8 I O 7O 199 g 8 9O7 224 7 y-o u 8 oc 200 6 u i 7 oO "** / 225 7 8O5 201 g g II 12 226 7 8 O e 202 10 9OI .Ul 227 6 6 7 48 201... ' 6 6 11 228 : 4 ii 5 65 204 .. 2 7 oo 8 72 22O A 8 5 >U 3 c 77 205... II 12 *?y 230 ' 8 5 9*68 206 I IO 45 271 1 II 4 en 207 II iu.^3 e 6? 212 . 4 II 4O U c 65 208 7 II 910 , *?* 27^ ..88 9O7 209 7 8 o^ 274... I 1 TTC 210 10 ii 08 *W" 27C T -I I 44 211 S 1 8 ai 276 A 1 A 80 212 10 ^^ *o' J 4 J 277... ? 4-y 57C 213 IO 11.88 278... ^ 1 07 214... IO ii 88 Total wages for each week, $382.94. Average for week, $7.94. Total number of makers, 48. Total number gloves made, 332 dozen, 10 pairs. Average, 7 dozen. These averages are slightly below those given in state reports quoted on pages 27-28. 1 A representative week for workers in regular shops on grade of men's gloves that compete with imported gloves. (Week ending August 3, 1911.) 3 2 THE LEATHER GLOVE INDUSTRY On page 27 we quoted the amount of women's pay from the State report. In table B we give the actual pay for makers working under factory conditions. From these tables it may be seen that wages for full- time workers are from $10 to $12 per week. It is not at all uncommon to hear of an individual maker who for a short period may maintain an average of three dollars per day. These periods of high production, however, are usually followed by corresponding times of low pro- duction or even by an entire cessation of work. Hence it is not the object of the manager to encourage these sporadic efforts at speed, since a steady average will produce better results in the long run. A large marginal labor element is found in the making branch of the industry, for many women make gloves for " pin money." There is scarcely a family of the middle or lower class of which some woman member does not make gloves. In a large number of cases, particularly where the head of the family is a cutter, this is made necessary by the smallness or uncertainty of the bread- winner's wages. Thus an increase in the cutter s pay would automatically cut down the supply of makers, and this artificial influence added to the natural economic influence has much to do with the disparity between the pay of men and women in the glove industry and the corresponding ratio in other industries* In making at home mothers are often assisted by a small child, who can do some of the simpler tasks, such as matching the smaller pieces with their corresponding 1 The condition of the laboring class is further complicated by the fact that 80 per cent, of the heads of families in Gloversville have equities in the houses they occupy, thus greatly affecting their freedom of move- ment. So long as the whole family can earn a living total they will remain. INDUSTRIAL ASPECTS 33 backs and palms from which they have been separated during the process of silking. The matching is done by means of the numbers put on by the cutters. Children could not thus assist in factories under the Labor Law. The extent to which the wage-earners of Gloversville and Johnstown depend upon glove-making for employ- ment makes the welfare of the community depend to an unusual degree upon the prosperity of this one industry. If we leave out of account made-to-order cities like Gary, the industrial situation in Fulton County may well be said to be unique. The New York Slate Department of Labor Report for 1902 shows that in 1900 67.2 per cent, of the value of manufactured products in Glovers- ville was gloves ; 47 per cent, of the manufactured products of Johnstown was gloves ; 82 per cent, of wage earners of Fulton County were employed in gloves and allied trades ; 87.6 per cent, of wage earners in Gloversville were thus employed. In 1900 also the value of the gloves produced in Fulton County was $9,458,603 or 57.1 per cent, of the total for the United States. 1 From the foregoing facts it appears that the labor problems of Fulton County are almost entirely those of the glove industry. In the summer of 1910 one manufacturer was reported to have on hand 420,000 dozen of gloves cut and not made. Another large manufacturer discharged half of his cutting force and limited the remaining half to twelve dozen per week. The supply of makers, on the other hand, is never equal to the demand. For this reason many efforts have been made by individual manufacturers and the Manufacturers' l The value of gloves produced in New York City was $586,061; Buffalo, $106,000; Syracuse, $56,434; Binghamton, $36,263. 34 THE LEATHER GLOVE INDUSTRY Association to increase the supply of makers. The Gloversville Board of Trade, controlled by glove manu- facturers, constantly seeks to increase the number of families in the city, but by a strange contrast they are said to oppose the existence of any other industry than glove making and skin dressing. It is alleged that efforts are made to keep out other lines of employment to avoid the possible competition for men's labor. Gloversville is situated upon a branch railroad. The unfavorable freight facilities have much to do with this situation. The materials for glove making are so light as not to be seriously affected by high carriage charges. One of the interesting efforts to increase the making force was the establishment in November, 1909, of an industrial department in the Gloversville High School to teach glove making. No official report has yet been issued. In the absence of such a report the writer made a personal inspection of the plant. A well-lighted base- ment room was fitted with a power table and sixteen machines of standard type. The class that was working was composed of thirteen boys and two girls in all stages of progress. The director is a woman who had had practical experience as a teacher of beginners in the shops. It was interest- ing to watch the development of the pupils in various stages. Practically all classes of the population were repre- sented. German, Italian, American and among the rest the son of a leading politician. One of the most notable facts in connection with this school-shop is the fact that boys are engaged in making. They are being trained with a view to developing more careful businessmen for the industry. Many attempts have been made in the past to train boys at a later age and also to train men INDUSTRIAL ASPECTS 35 to take up making, but the nimbleness of fingers seems to be lacking and there is a general feeling on the part of boys that making is "women's work." Some of the far-sighted men in the industry realize that to maintain a normal and balanced community the superiority of men's earning power must be established or, at least, ways must be found to enable a man in the industry to earn wages sufficient to maintain a family without the necessity for the assistance of his wife or children of school age. These men look forward with hope to the educating influence of the industrial department of the public school. Changes are going on slowly in the methods of manu- facture and factory organization. The complaint was constantly made in the older days that the manufacture was all guesswork. A fine scorn was shown for accu- rate cost accounting. The manufacturer then was his own foreman, and if the shop were not in his own back- yard he sat down on the block with his dinner-pail and visited with the men as they all ate together. A study of the census figures shows that in 1905 the number of factories was less than in 1900. This is largely due to the introduction of machinery in some of the less skilled branches. For example, a machine has been in- vented for shaving or grinding the skins. This machine reduces the cost of the process from $i per dozen skins to $0.083^. Again, the cutting of linings for some of the cheaper grades of children's gloves cost the smaller manufacturer in earlier times about $0.06 per dozen pairs of gloves. The modern manufacturer uses a machine which reduces the cost to $o.oi^i per dozen pairs. Each of the large manufacturers employs a statistical expert to check cost accounting. The closeness of the computa- tion is shown by the bids for some of the army contracts, 36 THE LEATHER GLOVE INDUSTRY where the prices of the various competitors sometimes differ as little as two cents per pair. There yet remain factories that produce at a disadvantage. Their presence is on the whole detrimental to the industry because they must cover inefficient methods largely by reducing wages below the rate established by the Manufacturers' Associ- ation. Efficiency and organization throughout the whole industry is not so high as we have a right to expect it to be in a protected industry. LABOR ORGANIZATION Records of union organization in Fulton County, New York, are very hard to obtain. In the Manufacturers 1 Brief submitted to the Ways and Means Committee (p. 12) the statement is made that there exists no union in the industry or any combination of manufacturers to control the price of the product. The New York State Department of Labor Reports, however, contain returns from the Table Cutters' Union. ' This fact will be ex- plained later in the present chapter. It is true that the Manufacturers Association does not approve of the existence of a labor union. It is their fiat that there shall not be one, and as a conse- quence the men will not admit membership in the union or talk about labor conditions. Hence most of the in- formation must be got from outside sources. But in a city as small as Gloversville, where the welfare of all business is so intimately connected with a single indus- try, information as to the conditions of that industry is pretty generally distributed. And by comparison it is found that the various reports agree in substance. The earliest record is that as a part of the Knights of 1 M Y. State Department of Labor Report, 1908, p. 116. INDUSTRIAL ASPECTS 37 Labor movement a strike was declared in 1881 for cash payments. The strike was won by the men and no further activity was, shown until 1893 when, in anticipa- tion of the Wilson Tariff, the manufacturers announced a cut in wages from $0.90 per dozen pairs to $0.80 per dozen pairs for cutting standard grades of gloves. In the face of the explanation that the reduced Tariff made the cut necessary, the men accepted the new rate, but began to organize their union on a fighting basis. No further change occurred until September, 1897, when after the passage of the Dingley Tariff, a demand was made by the cutters for the restoration of the rate of $0.90 per dozen, in existence before the cut of 1893. At this time the rate for cutting was agreed upon by an annual conference between the representatives of the Manufacturers and the International Glove Table Cutters' Union. The Manufacturers refused to make the advance and a strike was declared, which lasted eleven weeks. A compromise was finally reached at an advance of 10 per cent, or $0.88. Here we see a saving of two cents per dozen resulting to the manufacturers as the net result of the two changes extending over a period of four years. The annual conference agreement remained in force whereby the manufacturers continued to treat with the cutters as a unit until the fall of 1903. Then a demand was made that the men individually sign an agreement to work with any one who might be put into the shops. Of course this meant the ultimate overthrow of the union and the establishment of the open shop. The practical success of the strike of 1897 and the final effect of the terms of the proposed agreement, persuaded the cutters to resist. Moreover, it was generally thought that the real purpose of the manufacturers was to abro- 38 THE LEATHER GLOVE INDUSTRY gate the existing agreement so far as to enable them to employ Russian cutters who were being driven out of Warsaw about that time. The importance of this demand further illustrated by the fact that in 1901 an action had been brought at the instigation of the International Glove Cutters, to recover a penalty from a firm of glove manufacturers in Grinnell, Iowa, 1 under the contract labor law. So important is this case in its effect upon the relation of laborers and manufacturers in the industry that an extract from the opinion in the case is worthy of attention. United States v. Morrison, 109 Fed. Reporter 891, (Dist. Court, S. D., Iowa C. D. May 14, 1901.) On demurrer to Information. The information filed is in two counts. The first count in substance charges that defendant a resident of Grinnell, Iowa, did in June 1900 aid in bringing- from Prague, Austria one Adolph Zuza, a cutter of ladies kid gloves, who was then a native, resident and citizen of Prague, Austria, and then a subject to the Emperor of Austria. The information further charges that while Zuza was to perform labor in this country, and under which agreement Zuza came to the U. S. with money furnished him by the defendant for his transportation, that the agreement preceded furnishing the aid and preceeded Zuza's coming to America pursuant to the agreement, and after having received the aid in transportation from the defendant to perform in the U. S. the services and labor of cutting ladies' kid gloves and the information then changes. " And the said Adolph Zuza was not . . . then and there a skilled workman under any contract and agreement to per- form labor and services in the United States in or upon any 'U. S. v. D. S. Morrison, U. S. Dist. Court, Des Moines, unre- ported case. INDUSTRIAL ASPECTS 39 industry not then established in the United States, and not established in the U. S., February 26, A. D., 1885." The grounds for the demurrer are that a ladies' kid glove cutter is an expert mechanic ; that he is not a person engaged in common or ordinary labor ; that the business requires skill, that Feb. 26, 1885, the business of making ladies' kid gloves was not an established industry in the U. S.; that the trade of a ladies' kid glove cutter requires skill and intelli- gence and is an art or profession known to but very few persons in the world. The count then recites the history of the Contract Labor Law and continues. But the truth is that the protective Tariff laws and the laws against importing an alien laborer are upon the same subject and have the same purpose in view, which is that of protecting the laboring man of our country from the competition of the laboring man of foreign lands. And the subject of " kid gloves " as it is found in the schedules of the last formed tariff laws of the United States, will show the ever-increasing concern of congress to not simply raise a revenue, but to bring about the manu- facture of such gloves in this country. The practical effect of all this and especially the result of the tariff act of 1897 is of great interest. But so far as this case is concerned the difficulty is not to get the information but to get information of which a court will take judicial notice, ... I have made the most diligent and tireless search in the reports of the departments for data and facts germane to the imports of ladies' gloves, and the manufacturer thereof in this country and received practically no information. It is plain to me that the tariff laws, and especially the one now in force had for one of its objects either the creation of the industry, if not already established, or its maintenance if already established. And this perhaps is the one question in this case ; Is the manufacture of ladies' kid gloves an estab- lished business in the U. S.? If established, when was it established? But the U. S. Attorney charges in the information and charges it most specifically that February 26, 1885, as well as 4 THE LEATHER GLOVE INDUSTRY in the year 1890, the manufacture of ladies' kid gloves was an established industry in the United States. This allegation calls for proof and the government must furnish it. And it follows that the demurrer must be overruled because of the allegations in the information. I have a belief touching them, but it may be that the government will furnish evidence, of which I know nothing ; at all events I cannot judicially notice the facts, and the material facts are practically all in dispute. What are the duties of a ladies' glove cutter ? Is it skilled labor ? Can it readily be procured in this country ? Is it an occupation or profession? Is it an established busi- ness in this country? If so, when was it established? Some of these questions, probably all, are involved. So I will sub- mit the facts to the jury to find the facts. We will then know the services of a ladies' glove cutter ; ... we will learn how extensively ladies' kid gloves were manufactured in the United States, February 26, 1885, and how extensively they were manufactured in 1890 ; we will ascertain whether it is true that there are but few such cutters in the United States, and possible but the one, or but few at most, of such west of the Mississippi river, and but few in the country; ... we will learn the truth of this and the statute will be construed so as to give aid to the American laborers and not such construction as to throw them out of employment. In the hearing upon the case for the determination of the facts referred to, part of the evidence submitted con- sisted of the files of the Gloversville newspapers, contain- ing advertisements for cutters. The decision held that these advertisements were sufficient to show a need for more men in the industry in the United States, and that the testimony tended to show that the International Glove Cutters' Union was a closed corporation, since by its rules the trade could only go from father to son. Therefore recovery could not be made, and importation of cutters under contract could not be stopped. The INDUSTRIAL ASPECTS 4 I cutters maintained that there never were any places open, that the advertisements had been run for the purpose of making ^prima facie case under just such circumstances. However this may be, the decision referred to, together with the coming of the Russian cutters, no doubt had much to do with the demand of the manufacturers at this time. On December 21, 1903, the men decided to strike. The struggle lasted until June 28, 1904. A few shops ran all through the strike, but the industry was prac- tically crippled. The Union was beaten and broken. Since that time all but a few small shops have been run on the open-shop basis. About 1907 the union referred to at the beginning of this chapter, and reported in the New York State Re- ports, was formed. It may more properly be called a philosophical union than anything else, so the statement of the manufacturers to the Ways and Means Committee may be said to be true in substance. The contrast between the apparent intent of the deci- sion quoted and its effect upon the industry is clearly evident from the consequences which have followed the decision. Curiously enough the majority of the men in the Cutters' Union in 1907 were those admitted to the United States as a result of this decision. They were used as instruments to break the earlier union and are now the nucleus of the existing union. Reference is here made only to the Glove Cutters' Union. There has never been a union among makers in Fulton County. This is undoubtedly due to the fact which we have already noted, that the supply of makers is far below the demand at all times. The natural result is a correspondingly favorable treatment of makers and relatively high pay. The rates are assumed to be uni- 4 2 THE LEATHER GLOVE INDUSTRY form, but undoubtedly even in the face of disapproval on the part of the Manufacturers' Association special rates may secretly be extended to specially skilled sewers. THE MANUFACTURERS' ASSOCIATION The existence of a strong organization in the labor field of any industry implies that sooner or later there must be an equally strong association of manufacturers, otherwise the labor force by piecemeal attack will event- ually drive out profits. This is the case in the glove industry. The early associations, both of cutters and manufacturers, were not strong, but following the strikes of 1897 the Interna- tional Glove Cutters' Union grew to such power that an association of manufacturers was formed to resist the demands of the cutters. This organization is in exist- ence to-day, and to it may be traced many of the real advances that have come to the industry. The present association was organized in 1902 under the voluntary associations law of New York State. 1 It is an unincor- porated body. The membership in the association while not restricted to, is in fact confined to, manufacturers in Gloversville and Johnstown who make chiefly fine dress gloves. Al- though its membership in point of volume of production of fine gloves represents about 50 per cent, in numbers of manufacturers it includes not more than 20 per cent, or about thirty members. Membership is by firms, not by individuals. The first real problem of the association was the strike of 1903, and it proved a severe test to the organization. We have pointed out that the Cutters' Union having 'Mr. James Warbasse, Secretary Glove Manufacturers' Association. INDUSTRIAL ASPECTS 43 won the strike of 1897 had grown in strength. The first point of attack by the union had been the suit previously mentioned, to prevent the importation or employment of any cutters not members of the union. Encouraged by the decision, in this case favorably to the manufacturers, the Association decided to force matters, with the result that they broke the union and have maintained an open- shop basis since that time. There is only one small union shop in Fulton County. The general trend of the efforts of the association has been for the improvement of the industry and the estab- lishment of a higher plane of efficiency. The uniform rate of pay has had a tendency to prevent constant shift- ing about of the cutters. It has not been quite so suc- cessful in the case of makers. Another point that must not be overlooked is that the association makes for standardization of output and reliability of goods. In this it reminds us of the strict regulations as to quality which were in force in the Scotish guilds of glove makers. So far as the association has assisted in keeping down the wages of men, and in this the open shop probably is the only definite step, the effect has been on the whole bad for the trade because the low average wages paid to cutters is already having its effect upon the supply of cutters which hitherto has equaled or exceeded the demand. Boys will not take up a trade with so little certainty and promise. During the summer of 1912 reports began to be current of an actual shortage of cutters. In time this must act to force up wages but only if some degree of certainty can be established in the industry. In matters outside of the manufacture proper the association has been active. In the legislative steps 44 THE LEATHER GLOVE INDUSTRY leading up to the Payne-Aldrich Tariff act the association played a prominent part as shown by the hearings of the Ways and Means Committee. 1 The real future of the industry is along the line of permanent settling of the Tariff and strengthening of the Manufacturers Associa- tion which will then be able to devote its attention to building up the industry from within. FACTORY DISTRIBUTION There is practically no such thing in the glove industry as a factory district in the usual sense of the term, and no necessity for the development of a sweat-shop district or plan of manufacture. Factories are located in widely- scattered parts of the cities and in the majority of cases have plenty of air and light. This scattered distribution has its influence upon the health and the whole life of the community. Little stores are situated at intervals along all the residence streets, and bakers' wagons go about announcing their coming by the ringing of a bell. So busy are most of the housekeepers that they will not take time to go to a common shopping or marketing center. The doorbell is often answered by a woman with an unfinished glove in her hand. A great amount of work is sent into the homes of the workers. This is easy because of the lightness of the goods and their small bulk. Occasionally one sees a small boy carrying a bundle of unfinished or finished gloves to or from the factory, but by far the greater part of the distributing is done by the agents of the manufacturer, who go about in a wagon or automobile. The distribution is really done at the expense of the makers, for a lower price is paid for some work done out of the factory than is paid 1 Tariff Hearings, Nov. 28, 1908. INDUSTRIAL ASPECTS 45 for the same grade of work done in the factory. 1 We must keep in mind also that in most cases factory makers are compelled to furnish their own machines and to pay for repairs upon them. Through the courtesy of one of the manufacturers the writer was permitted to accompany his agent in his rounds and covered in the course of a forenoon most of the streets of Gloversville. The driver, who has had six- teen years' experience in that particular business, states that practically every street in the city has some houses where glove making in some of its branches is done. The power wires running from poles in the street to the houses also corroborate this statement. The Fulton County Gas and Electric Company re- ported in 1910 that they had 1000 motors in private houses or small privately-owned buildings, for use in driving sewing machines. The number given includes both Gloversville and Johnstown. In 1911 the same company reported that the number had risen to 1300. Upon a rough estimate this number would represent an average of one motor in every four or five houses. Some families have more than one, so the actual number of dwellings wired for power would be a little below the average of one in five. A standing charge of fifty cents per month is made for installing the motors and the total cost is about $1.20 to $1.50 per month. The extended use of motors in this way is one of the most significant facts of the industry. Some home operators report that the use of the motor- driven machine increases their out- put by one dozen pairs per day. Judged by factory standards of production this estimate seems rather high, it may be explained by the fact that in home work 'See Appendix I. 46 THE LEATHER GLOVE INDUSTRY hours are not limited as in the factory. This industry, through the peculiar system of putting out gloves, forms an interesting link between industry and agriculture, enabling workers to live at great distances from the fac- tory, where they can have gardens and plenty of room. The increased use of electric power, although holding possibilities of increased nervous strain, yet offers great physical relief and makes possible the use of the many small water powers in which the foot-hills of the Adiron- dacks abound. The limits of the industry may also be greatly extended by the use of the automobile for col- lecting and distributing gloves, and the establishment of the parcel post may do much in this direction. CHAPTER VI TARIFFS. IN the preceding chapters we have made a brief study of the history, organization, wages and labor conditions, of the glove industry. It is the purpose of this chapter to ascertain the exact bearing of the tariff rate upon the industry. The vital questions are : First, who are the persons or classes effected by the tariff? Second, can the industry exist without the tariff? And third, what facts should determine the rate of tariff? In answer to the second question we may quote from the Argument of the Manufacturers' Association before the Ways and Means Committee. " Before the McKinley Act of 1890 there was no glove industry in the United States competing in our markets with foreign made gloves." 1 Previous to 1890 the rate of duty on men's fine gloves was 50 per cent, ad valorem. Much litigation resulted upon charges of undervaluation and from the adminis- trative point of view the ad valorem rate was not satis- factory. Hence in framing the McKinley law the rate was made 50 per cent, plus $1.00 per dozen pairs. This rate also proved unsatisfactory and in 1894 the rate was made entirely specific and fixed at $4 per dozen pairs. The Dingley law in 1897 left the rate on men's gloves unchanged. The rate as fixed on men's gloves in 1909 'See Appendix III. 47 4 8 THE LEATHER GLOVE INDUSTRY is also $4 per dozen pairs. Certain cumulative items may bring the total up to $4.80 per dozen pairs. 1 This means that for every pair of men's gloves made in the United States or imported to the United States the wearer may be forced to pay thirty to forty cents extra because of the tariff. In fact the testimony of the Manufacturers' representative before the Ways and Means Committee shows this to be true. 2 On women's gloves the duty under the present law is from $1.25 to $2.50 per dozen pairs. The explanation of this difference between the rates on men's and women's gloves brings out a curious state of affairs. According to Mr. Frederick Brooks, who appeared before the Ways and Means Committee, as counsel for the importers, the question of the tariff rate on gloves had been considered ever since 1890 as settled upon a basis of division of the field. By this actual or tacit agreement, the importers were given control of the market in ladies' gloves, while the men's glove business was left to the domestic producers. 3 The effect of the difference in rate is shown by a study of the percentage of production of the two kinds of gloves in the United States. About 95 per cent, of the men's fine gloves used in the United States are made here while only about 5 per cent, or 6 per cent, of the women's gloves used in the United States are made here. 4 Two factors are found here, however, one the larger profit on men's gloves and the other the smallness of the trained labor force. The latter fact was brought out in the preceding chapter. *See Tariff Law, Appendix IX. 1 Tariff Hearings, Nov. 28, 1908. 8 This statement does not appear in the Hearings, but was made to the writer by Mr. Brooks in an intervie^w. ^ 4 Tariff Hearings, Nov. 28, 1908, pp/-S5i3 seq. TARIFFS 49 Clearly, then, the admitted increase of selling price of men's gloves entitles the public to know the facts upon which are based the tariff rate making the increase possible. The manufacturer argues that he does not get the in- crease, that it is just sufficient to cover the difference in cost of production in American and European glove-pro- ducing centers. Our problem now is to trace this tax to its point of incidence. To answer our first question we must first lay down some principles by which to test the tax. Three groups must be considered: the laborers, the manufacturers, and the consuming public. The first two classes are to a degree identical with the third class, but the degree is so slight that we may say they are mutually exclusive. To the laborer the question of importance in a tariff rate is the question as to whether the rate is sufficient to enable him to collect wages to cover the cost of liv- ing according to the standard of his own country. To the manufacturer it is important to have tariff high enough to enable him to pay a rate of wages suffi- iently high to attract laborers from the competing trades of his own country and leave a margin for a reasonable profit. In considering the rate upon a single product the question of the equivalence between the wages of the workers in the foreign and domestic fields is of less immediate importance than the relative rates of pay in the given industry and in other domestic industries demanding labor of the same grade. The consumer appears to be the person upon whom the benefits are last conferred but upon whom the burden falls immediately in the form of an increased price. The weight of the burden in the glove industry has been indicated in paragraph 5 of this chapter. 5 THE LEATHER GLOVE INDUSTRY So long as the manufacturer conducts his business upon a purely individual basis and does not ask for help from the public in the form of tariff restriction, we may fairly say he is entitled to secrecy in his business and the profits which he may make from it; but as soon as he asks for a protective rate, the burden of which falls upon the consumer, the public is entitled to such information concerning his business as will enable its agents to place the rate at the lowest possible point. This investigation should always keep in mind the bearing of the determination upon the laborers in the industry as well as upon the general public. As stated in the introduction, the glove industry presents a striking example of the relation between economic theory and practical politics. Before the Ways and Means Committee on November 28, 1908,' there appeared representatives of the importers of gloves and also a representative of the Glove Manufacturers' As- sociation of the United States. Though the consuming public is frequently mentioned in the discussion, it is rather as an argument for one side or the other side than out of consideration for the consumer himself. To settle the third and most important question of this chapter we must examine the available data as to wages paid in the glove industry in the United States and Europe. For the purpose of determining the basis of a tariff rate the glove industry offers some advantages not found in many other industries. In the first place nearly all of the processes of manufacture are paid for at piece rates. Hence the labor cost per unit of product' can be found directly from the wages paid. In the sec- /^^J 1 Tariff Hearings, Ways and Means Com., Nov. 28, 1908. p.' ,2516, seq. 'The unit in the glove industry is one dozen pairs. TARIFFS -! ond place very little machinery is employed, nearly all the processes being carried on by hand. In the third place most of the machinery and tools used in the American system of manufacture, at least, is owned by the laborers, who at the time of the passage of the Payne-Aldrich law even paid charges for power used in driving such of them as are power-driven, thus relieving the manufacturer of part of his overhead charges. Hence we see that wages represent practically the whole manufacturing cost. The Bulletin of Information for the Committee, 1908, shows that the principal sources of supply for imported gloves are England, Germany and France. The fixing of labor cost of gloves made in these countries is a diffi- cult process as compared with the determination of sim- ilar costs in the United States. The wages paid in the United States are uniform, and are fixed by the Glove Manufacturers' Association. 1 Previous to 1903, while the Glove Cutters' Association was strong, the rates were fixed by conferences of representatives of the man- ufacturers and cutters, but at present there is, as we have shown, no effective organization of cutters with which the manufacturers can confer, and there never has been an organization of makers in Fulton County. Hence the rates cannot represent a united agreement. In foreign countries there is no organization similar to the Glove Manufacturers' Association of the United States. No general figures are obtainable for English costs nor for the earnings of English glove workers. Two affidavits of individual makers were submitted to the Ways and Means Committee, but no attempt is made to show that these rates are representative of costs all over England, and furthermore they cover only a single 'See Schedule, Appendix I. cj2 THE LEATHER GLOVE INDUSTRY part of fabrication cost. Many of the leading English firms maintain factories in the United States and conse- quently are in a position to furnish the complete facts if they chose to do so. While our tariff schedules are made upon the present bases they will simply shift the manufacture for their trade in the United States from one country to the other as the rate varies. In the case of German manufacturing costs we are somewhat better off from the fact that figures represent- ing cost of fabrication were submitted to the Ways and Means Committee l by representatives of the importers and also by representatives of the Glove Manufacturers' Association of the United States. The German Govern- ment also submitted certain statements which are, how- ever, merely assertions of isolated costs and are not shown to be representative. 2 Hence we are thrown back upon a comparison of costs as estimated by the importers and manufacturers. It is readily seen that the tendency of each advocate in a controversy of this sort will be to represent the facts in the light most favorable to his side. This does not imply bad faith, but comes from the fact that it is gen- erally understood that the final determination will in all probability be a compromise. The tendency of the do- mestic manufacturer will be to underestimate the foreign cost and overestimate his own, and thus secure the ben- efits of an overestimated difference in cost. In the same way the foreigner will overestimate his own cost to get the benefit of a rate fixed upon too low an estimated dif- ference. Consequently when we find an estimate of the 1 Tariff Hfarings, Nov. 28, 1908, p.'-2523> Sen. Doc. 68, 6ist Cong., p. 42; Sen. Doc. 74, 6ist Cong. 2 Senate Document 68, part 2, 6ist Cong., ist Session. TARIFFS 53 two sides in agreement we may fairly say that it repre- sents the actual cost. For a given sample of gloves the manufacturers' repre- sentative estimated the German fabrication cost at $2.14 per dozen pairs. 1 The cost of manufacturing a similar kind in Germany, as stated by the importers, varies from $1.51 to $1.91 per dozen pairs. The cost of manufacturing the same sample of gloves in the United States, as stated by the manufacturers' representative, is $5.49 per dozen pairs, and as stated by the importers it is $3.72. We note that there is substantial agreement in Ger- man cost of fabrication and a wide divergence in the estimated cost of fabrication in the United States. Hence we have made an attempt to reach the actual cost in the United States by adding together the cost of the various parts of the work as found in the Manufacturers' Schedule and adding an allowance for the parts of the work not covered by piece rates (general expenses). This allowance is determined by adding to higher general expenses, as stated in the importers' schedule, for Ger- man cost 30 per cent. This computation gives us $3.50, a sum even higher than the importers' estimate. It must be noted in connection with this estimate that we are using net labor costs, and that an added number of inspections would change the total. We are, however, including all costs as found in the average or ordinary factory. The following tables, I and III, present the facts sub- mitted to the committe as a basis for action. Table II (as indicated in the introductory notes) is our own com- bination of the various costs. We note in Table I the Tariff Hearings, p. 54 THE LEATHER GLOVE INDUSTRY tendency to which we have referred, namely, the attempt to overestimate costs to obtain a favorable difference. The item " Dyeing," included in Table I, is not a proper making charge, but is part of the process of finishing leather. To make the comparison a fair one, this item must be subtracted, as indicated in the table. TABLE I COST OF MANUFACTURING GLOVES IN GERMANY 1 Lamb and schmaschen, 3 inch, men's and ladies' Marks per Marks per dozen. dozen. Dyeing (not proper making charge) 1.50 2.00 Cutting 2.30 2.80 Trimming 10 .20 Sewing (including material) 2.30 2.80 Laying or dressing 30 .40 General expenses 1.50 2.00 8.00 10.20 Less item I (not proper making charge) 6.50 8.20 Equivalent in United States money 2 .................. $1.51 $1.91 General expenses include foremen, tacking, polishing, making press cutting, stamping, ridelling, and blacking. From these figures we must attempt to ascertain the real difference in labor cost in the United States and Germany. Combining these various estimates we get widely varying results, as may be seen from the tables following. If we accept the estimate of the American manufac- turers as to costs in both countries, we obtain a differ- ence of $3.25 per dozen. If we accept the figures of the importers as to costs in both countries, we have, re- spectively, $2.21 and $1.81, as we take the low or high estimate for German costs. 1 Tariff Hearings , 1908, p. 523. Statement submitted to Ways and Means Committee by Importers of Gloves. 1 Mark taken as equal to 24 cents. TARIFFS 55 TABLE II COST OF MANUFACTURING MEN'S GLOVES 1 IN THE UNITED STATES Column I, prices as found in Manufacturers' Schedule for 1910. (Same as for 1908). See Appendix I. Column 2, prices as found in Importers' Statement, Tariff Hearings, P- 2523. Price per Price per dozen. dozen. Shaving $0.30 Cutting 90 $1.20 Slitting 10 Trimming (included) 10 Needle sewing 18 Silking (included) 18 .35 Pulling 06 Making ^ i.io i.oo Hemming t,'- 12 .15 Laying off .15 Fastening Tacking .12 Examining .20 Sciling .55 Banding Boxing $3-04 $3.72 Add allowance for processes not paid for by piece . rates 467 $3.507 Now using our own estimates (Table II) of the United States' cost and the importers' estimate of German cost we have as the difference in labor cost $1.99 or $1.59 according to whether we take the low or high estimate for German cost. Using our estimate for United States' cost and the American manufacturers' estimate of German cost we have $1.36. 1 General expenses are computed as being slightly more than 307 per cent, higher in United States than in Germany. The total ad valorem equivalent of present tariff is 41 per cent. (Information for Committee, 1908). Cost of fabrication of women's gloves is the same as for men's gloves. 5 6 THE LEATHER GLOVE INDUSTRY TABLE III COST OF FABRICATION IN GRENOBLE, MEN'S AND LADIES ' ; 3-INCH OVER- SEAM. NO FASTENINGS Column i, low cost; column 2, high cost. Francs per dozen. Cutting (riddling) 3.150 3.25 Choosing 1.50 Stamping , 025 Press cutting OQO .09 Cutting glove to length 015 .05 Cutting thumbs and fourchettes 355 i row embroidery or point .300 .75 End pulling .150 Closing 1. 100 1.90 Matching fourchettes .090 .09 Thumbs i.ioo Tacking tapes (Col. 2 Rabbatur) 300 .25 Sewing welts and bandalettes 400 .40 Tacking welts and bandalettes 250 .30 Blacking no .10 Tacking together 035 .05 Dressing 300 .30 Polishing 100 Salaries 1.560 Dyeing 1.470 1.50 Silk .314 .15 Thread 077 T>Pe 155 General 1.335 3.50 12.481 14.18 Less dyeing, not a proper making charge 1-470 1.50 ii.oii 12.68 Equivalent in United States money $2.20 $ 2 53 To summarize these facts, the American manufacturer says the difference of labor cost in the manufacture of a dozen pairs of gloves in Germany and the United States is $3.25 ; the importer says it varies from $1.81 to $2. 21. Our computation puts the difference between $1.36 and $1.99. The tariff rate (which includes 20 per cent, duty on the raw material) is $4.80. In the following tables we present the computations from which these conclusions are drawn. Jc ?S 1 Tariff Hearings > Nov. 28, 1908, p.**5-23. Statement submitted to Ways and Means Committee by Importers of Gloves. TARIFFS 57 It must be observed that in Table I the first item has not been included in the total since it is not a proper charge upon making cost. If then we compare the results found with the statement of German cost as found in the estimate of the American Manufacturers, we have a fair working basis as follows : CASE A l Cost of fabrication (for sample shown) in Gloversville $5-49 Cost of fabrication (for sample shown) in Germany 2.14 Difference in labor cost $3-35 Add tariff on raw material (20 per cent, adval.} 1.25 Labor cost difference in Gloversville and Germany $4.60 Rate of present tariff $4.80 CASE B Cost of fabrication in United States $3-72 Cost of fabrication in Germany 1.51 Difference in cost in United States and Germany $2.21 Add tariff on raw material 1.25 $3^46 In Case B we have taken the American cost as stated by the importers a and deducted from it the low cost as found in Table I. Now let us take cost of manufacture in United States as determined in column i of Table II and we have the following : CASE C Cost of fabrication in United States $3-50 Cost of fabrication in Germany 1.51 Difference in labor cost in Germany and United States $i-99 Add tariff on raw material 1.25 Rate of tariff just equal to difference $3.24 If now we substitute in these computations a rate of cost in Germany equal to the higher set of corrected figures in Table I, we have : 1 Tariff Hearings, p.sj^3. f See Table II. 58 THE LEATHER GLOVE INDUSTRY CASE B' Cost of fabrication in United States $3.72 Cost of fabrication in Germany i.gi Difference in labor cost $1.81 Add tariff on raw material ... 1.25 Rate of tariff just equal to difference $3.06 CASE C Cost of fabrication in United States $3.50 Cost of fabrication in Germany 1.91 Difference in labor cost $1.50 Add tariff on raw material 1.25 Rate of tariff just equals difference $2.84 For further comparison let us turn to Table III for the costs of fabrication in France as reported in the im- porters' statements. There is no such method of check- ing these figure* as we found in the case of the German manufacture, because the manufacturers of the United States did not include in their evidence any statements as to cost in France. The rates of wages as given in Dr. Cote's 1 study of the French industry are so varied that it is impossible to reach a basis of comparison even for the part of the work covered. He gives only the fig- ures for cutting costs, which represent not more than one-quarter of the total fabrication cost. It must be noted that we have eliminated from the table certain items which are not properly included in the costs of fabrication, but are a part of the cost of raw material, which is assumed to be the same in all these compari- sons. Comparing costs from Tables II and III by the same methods which are used in comparing German and United States cost of fabrication, we see that using the American manufacturers' estimates of cost of fabrication in the United States and the importers' statement of 'Cote, U Industrie gantiere , etc. TARIFFS 59 cost of fabrication in France we get a difference in labor cost of $3.29, or $2.96, according to whether we are using the low or high estimate of cost in France. Using our own estimate of cost as found in the United States and the importers' estimates of cost in France, the only ones obtainable, we have $1.30, or $0.97 as the dif- ference. Or, in other words, the manufacturers' figures would show that it costs from $2.96 to $3.29 more to make a dozen pairs of gloves in the United States than it costs in France. The importers say that it costs from $1.19 to $1.52 more to make a dozen pairs of gloves in the United States than it costs in France. Our estimate shows that it costs from $0.97 to $1.30 more to make a dozen pairs of gloves in the United States than it costs in France. The computations upon which these facts are derived are placed here for convenience : Case D. Case E. Case F. Cost of fabrication in United States $3-72 $3-50 $S-4Q Cost of fabrication in France 2.20 2.20 2.20 Difference in labor cost $1.52 $1.30 $3.20 Add tariff on raw material 1.25 1.25 1.25 Tariff just equal to difference $2.77 $2.55 Present rate of tariff $4.80 $4,80 Case D'. Case E'. Case F'. Cost of fabrication in United States $3.72 $3-50 $5-40 Cost of fabrication in France 2.53 2.53 2.53 Difference in labor cost $1.19 $0.97 $2.96 Add tariff on raw material 1.25 1.25 1.25 Tariff just equal to difference $2.55 $2.22 $4.21 Present rate of tariff $4.80 $4.80 $4.80 These computations assume the accuracy of the costs as shown in the Tables I, II and III and make no allow- 60 THE LEATHER GLOVE INDUSTRY ance for a margin to cover "reasonable profit." We believe that what is wanted first of all is an exact deter- mination of the absolute difference in the fabrication cost of the product in question. When we have secured this net difference it will be a simple matter to add to it a percentage or general allowance which will be the same for all industries. All the computations further assume the use of a grade of leather suitable for making gloves to sell at $12.50 per dozen, wholesale. It is in this way that we derive the amount to be added for tariff on raw material. The testimony at the Tariff Hearings shows that 20 per cent, on raw material is equal to about 10 per cent, of the value of the finished goods. While leather suitable for making fine gloves is manu- factured in the United States, yet the percentage in proportion to the total consumption is small and if we eliminate "Mocha" in the production of which the Americans have a practical monopoly, we see that the benefit of the tariff on raw material is very little dis- tributed. On the other hand, the burden of this part of the tariff falls on all consumers. In the Hearings of 1908, the manufacturers asked to have this part of the tariff continued, on the ground that while asking for protection for themselves they could not consistently withhold their support from the allied branch of the industry. While we cannot overlook the generosity of the argument as between the manufacturers of gloves and leather, we must also remember that the contribu- tion to the leather manufacturer comes from the con- suming public and not from the makers of gloves. The feeling among the producers of leather is that if compelled to submit to a reduction of the tariff, the manufacturers of gloves will consent to the removal of the duty on the raw material first of all. TARIFFS 61 The only effect of the removal of the tariff on raw material upon the manufacturer of gloves will be to re- duce slightly the amount of capital required to carry on his business. The effect upon the maker of glove- leather may be more serious, but with that we cannot deal here. As we have shown in Chapters I and II, the raw material for the glove manufacturer is tanned leather, and we are necessarily concerned here with getting the cheapest possible supply of raw material. The saving to the consumer from the removal of the twenty-per-cent duty on glove-leather could not exceed ten per cent of the present price of the glove, and would be from ten to fifteen cents per pair. The question cannot be left here. We must consider whether the facts justify a further saving to the con- sumer. From the computations and tables in the earlier part of this chapter we see that while the tariff rate on men's gloves varies from $4 to $4.80 per dozen pairs (including the tariff on raw material), the actual differ- ence in labor cost varies according to the particular set of facts upon which it is based, from $3.25 to $0.97. Hence removing the tariff on raw material and taking the lowest estimate of difference in labor cost, viz., that in Case E', we see that the tariff on this basis may be brought from $4.80, the present total, to $0.97, thus re- sulting in a saving to the consuming public of $3.83 per dozen pairs of gloves, or, in terms of individual use, nearly $0.32 per pair. We must notice that the case taken here uses as a basis the lowest difference in labor cost between France and the United States. The lowest difference between Ger- many and the United States as shown in our tables is $1.36. If this be made the basis of the tariff, the saving to the consumer will be $3.44 per dozen pairs, or approximately $0.29 per pair. 62 THE LEATHER GLOVE INDUSTRY We have one further means of testing the rate. We pointed out that in 1890 an attempt was made to so fix the rate as to give the market in women's gloves to the importers. This principle remained in force until 1908, and the testimony of the domestic manufacturers showed at that time that they were making about five or six per cent of the total amount of women's gloves used in the United States, in competition with gloves imported under the rates lower than on men's gloves. 1 The rates then in force varied from $1.75 to $2.50 per dozen pairs. Let us assume that all the women's gloves made here are similar in material to those covered by our tables; then the part of the rate attributable to duty on raw material will be $1.25, and the remainder of the rate will represent the difference in labor cost. This remain- der will be $1.25, a sum so near $0.97 and $1.36 as to indicate the probability of accuracy in our estimate. There is a peculiar psychological consideration affect- ing the saving which we have indicated. In the argument of the American manufacturers, stress is laid upon the fact that prices in gloves usually run in even quarters of a dollar, and the inference is that no savings between these figures will be passed on to the consumer unless his psychology changes or keener competition arises among the retailers. But this ten- dency is already felt. It is not at all uncommon to see gloves displayed in furnishing stores at $1.10 and $1.15, and the department stores are acquainting their cus- tomers with such prices as $0.79 and $0.89. Further importance is given to the present discussion by the fact that at the time of the passage of the latest tariff law the House Bill carried a rate that was the same 1 Tariff Hearings. TARIFFS 63 both upon men's and women's gloves. Thus it may be seen that if the present rate is prohibitive with respect to men's gloves it would become so at once in the case of women's. This would have added at once to the pro- tected business of this country an amount of five million dollars annually. It is conceded that the cost of making men's and women's gloves of the shorter lengths is approximately the same. The decrease in the cost of the smaller amount of leather in a woman's glove is nearly equaled by the extra cost of the somewhat finer ornamentation. Thus the two kinds are about equally expensive, so far as ma- terial is concerned. Exactly the same rates are paid for cutting and sewing the two kinds. There is only one real point of difference, and that is a trade difficulty rather than one of manufacture. The element of style plays an important part in the market for women's gloves. 1 The change in the length of the sleeves of women's clothing may effect an entire change in the de- mand for gloves : calling now for one length in gloves and now for another. Since one of the great difficulties of the present situation is the occurrence of a succession of alternate rush and slack seasons, it is reasonable to suppose that the addition of a new element of uncer- tainty might prove to be so disadvantageous as to offset the gain coming from the enlargement of the field. This objection seems to be a minor one, and if we leave it out of consideration it is difficult to see why the logic of the situation does not demand the same tariff upon both men's and women's gloves. This very fact led to the bitter controversy that arose over the determination of the tariff rate for the Payne- 1 Cote, Chapter II, Sur la Mode. 64 THE LEATHER GLOVE INDUSTRY Aldrich bill. The Manufacturers' Association asked for a uniform rate ' upon men's and women's gloves, ignoring it is charged, the alleged agreement of 1890; which pro- vided for a division of the field. The house Bill carried the rate asked for by the manufacturers, while the Senate bill carried the rate of the present law. The report of these facts called forth a storm of pro- test from consumers of gloves all over the United States. Many newspapers took up the discussion, not uninflu- enced, it is charged, by the fact that the majority of the importers were closely allied with the large department stores which are extensive advertisers. The greater part of the product of the domestic maker is handled by small haberdashers, who do not make extensive use of the great city dailies. The final decision was made in the conference com- mittee on July 29, 1909. All other items of the schedule except lumber and gloves had been settled and it was expected that in the case of gloves the rate of the house bill would be approved. This rate would have made the duty on men's and women's gloves alike $4.00 with certain cumulative additions for grades receiving more work than the ordinary kinds. As the matter was being pressed to its conclusion a letter from the President was handed to the Chairman. Immediately an adjournment was taken, and in the re-con- vened session the rate upon gloves was fixed as found in the Senate bill. This was slightly lower than the rate of the Dingley law upon Ladies " Schmaschen " gloves and the same as the Dingley law on all other grades. 8 The natural inference would be that the change of 1 See Appendix for proposed rate. 'See Appendix IX. TARIFFS 65 attitude in the Conference was traceable to the Presi- dent's letter. That such is the fact is borne out by the interview published in the Outlook of Dec. 2, 1911. " But I could not get free lumber either. The only way I procured the substantial reduction from $1.50 was by sending the Conference Committee an intimation that I should veto the bill if it carried a lumber duty higher than $1.25. / took a similar and equally successful stand regarding gloves, on some classes of which an increase had been proposed for the benefit of an " infant industry." Some of my critics will ask " If you could do so much in these instances by swinging your veto club* why did you not use the same weapon all along the line?" Here at once we have both the difficulty of the tariff situation and the remedy. We have shown that the Committee did not have in its possession facts sufficiently authenticated to permit of a scientific determination of the rate of duty. But that such facts are obtainable we believe this study has shown. In fact some of them have been established to the satisfaction of a court of law. 2 That a proper use of the facts can be made, once they are known, seems clear from the effect of the President's action in the case of the Payne-Aldrich law. True, he was no doubt influenced by the newspaper campaign fos- tered by the importers. But if the facts were ascertained by a properly authorized government agent, canvassing the foreign fields as we have covered the domestic field, the publication of the facts themselves would be a suffi- cient answer to all misrepresentation. No room would remain for half statement or misstatement of costs, and 1 Italics are the writer's. *U. S. v. D. S. Morrison, 109 Fed. Reporter, 891. See p. 387. 66 THE LEATHER GLOVE INDUSTRY consequently the preliminary political skirmishing would be entirely removed. Only in the final enactment of the rate would political action be called for, and this would become largely a matter of form. The people would always have in the reports of the committee or commission a ready check for any attempt to give undue advantage to any interest. The action of the President could then be as definite as it was in 1909, and would rest beyond any question upon a fair basis of fact. In answering the questions outlined at the beginning of this chapter we have shown, first, that the burden of the tariff falls upon the consumer of gloves ; second, that some tariff is necessary to maintain the industry in the United States because of the labor cost here, which is higher than in European glove centers; third, that the present rate of tariff on men's gloves is higher than is necessary to meet the difference in labor cost. In assert- ing this we must remember that no manufacturer can be expected to invest capital in the building of a plant the utility of which may be destroyed by a legislative act. Hence before attempting to fix the fair rate of tariff we must find a better method of fixing it, one depending upon economic fact and not on political change. CHAPTER VII SUMMARY AND CONCLUSION IN our summary of the leather-glove industry of the United States we have shown that it furnishes one of the best examples obtainable of the working of the tariff sys- tem of the United States. We have shown that it pre- sents a favorable opportunity for the application of the principles of scientific tariff-making. To do this we have traced the development of the in- dustry through all the stages of industrial evolution from the simplest kind of domestic production to the stage in which factory organization and methods have been brought to a fairly good state of perfection. We have pointed out the fact that in the earlier stages of the in- dustry, when the conditions of supply for raw materials were much more favorable than they have been since 1890, growth was slow. On the other hand, it appears that with the adoption of the tariff of 1890, which was the first tariff to be fixed upon the basis of protection in the modern sense, there began a new period of remark- ably rapid growth. During this period, from 1890 to 1912, the glove industry has reached its maturity. The importance of this growth can only be appreciated after examining, as we have done, the nature of the industry. Glove making presents so curious a combination of art and industry that marked advances in Europe have been very slow. European glove-workers, particularly cutters, consider themselves artists rather than artisans. 67 68 THE LEATHER GLOVE INDUSTRY This attitude was shown by workers in the American glove industry up to 1901. The effect of the decision of the courts handed down in that year, permitting the importation of foreign cutters, was to change this attitude. The resulting increase in the number of cutters made them more dependent upon the demands of the manufac- turers and hastened the organization of the factories upon a more modern industrial basis. We may say that in the United States the industry has been put upon a strictly modern basis for the first time in its history. This advance has been made with almost none of the disad- vantages usually accompanying factory growth. As we have shown in our discussion the absence of the usual factory district in the glove centers has prevented crowd- ing and congestion which generally occur in a highly centralized industry. The scattered location of the fac- tories in the cities of Gloversville and Johnstown gives plenty of opportunity for the erection of well-lighted, well-ventilated factories. In addition to the factory side of the industry there is a large amount of work done in the homes of the workers under conditions which seem strikingly free from the evils of home work as they exist in large cities. The housing conditions of the two glove cities are very favorable. By far the larger part of the population live in detached houses, rarely are there more than two families in one house. We have shown the great extent of this kind of production and its growth as indicated by the increased use of small motors installed in the homes of workers for the operation of sewing machines. There were in 1911, 1300 of these motors in private houses, an increase of nearly thirty per cent over the previous year. This increase is one of the most significant tendencies of the industry. It promises a much wider extension of SUMMARY AND CONCLUSION 69 the home working system than has existed up to the present time and a utilization of a greater number of the small power sites that abound in the foothills of the Adirondacks. The most serious limitation upon the ex- tension of home working has been the problem of trans- portation among the scattered houses of the outlying hamlets and farming sections. In the summer months the use of automobiles has done much to remedy this difficulty. But the summer months include the slack season, and in the winter months of the rush season the roads of Fulton county and the surrounding counties are not easily traveled by any vehicle. With the beginning of the year 1913 a very effective method of handling this problem will come into use in the form of the parcel post. Gloves made and unmade are light in weight and small in bulk, so they can easily be sent through the mails. This method will be particularly effective in reaching workers living upon rural free-delivery routes. From all these facts we see that the glove industry is in a promising condition from a manufacturing point of view. In the earlier chapters we showed the relation be- tween the tariff and the condition of the industry in the United States. We showed that there is an actual dif- ference in the labor cost of making a dozen pairs of gloves in the United States and either Germany or France, the countries from which most importations of gloves come. Without some tariff to offset this differ- ence in labor cost, the industry could not have advanced to its present state of development. The period of pro- tection in the glove industry needs to be somewhat longer than in other industries, because the training of a force of workers in a glove industry is a relatively slow process. Once trained, the force becomes more perma- nent than in many other lines of manufacture, because 70 THE LEATHER GLOVE INDUSTRY women who as girls learned the trade of sewing gloves are able to carry it on in their homes after marriage. We considered both the advantages and disadvantages of this form of work in the proper place. Our final consideration was the question as to the per- manency and amount of the tariff upon gloves. If we concede the principle of protection it must undoubtedly be at the minimum rate; but again the minimum rate implies permanency in the rate, for capital will not flow into an industry protected at the minimum rate for a short or indefinite period. That the rate of the Payne- Aldrich law was not at the minimum we believe we have shown. The reason for the high rate we have shown to lie in the method of determining the rate. This study shows that the facts for the scientific determination are obtainable and the proper method of handling these facts calls for the establishment of a permanent non-partisan body with power to obtain the facts in this as in every other industry, and power to fix the rate of tariff upon those facts when found. This power implies the right of the body to make changes in the rate for proved cause when necessary. From our study of the glove industry we conclude, first, that during the twenty-two years of its protected exist- ence since 1890 it has developed a trained labor force, so fortunately situated in living and working conditions and with such prospects of immediate growth as to entitle the industry to at least a temporary continuation of protection. Second, that the present method of fixing the rate of protection upon the industry is responsible for the exces- sive rate and the improper distribution of the benefit of the rate between manufacturer and laborer, the liability to change in rate enabling the manufacturer to resist the demand of the laborer for his share in the protection. SUMMARY AND CONCLUSION 7 ! And, finally, if the tariff be adjusted by a permanent nonpartisan body able to make adjustments for proved cause when needed, and empowered to demand the high efficiency necessitated by a close adjustment of the rate to actual difference in labor cost of production in the factories of the more efficient class, the future of the industry is assured and it will form a strong part in our diversified system of production. APPENDIX I SCHEDULE OF PRICES Of the Glove Manufacturers Association of the United States as adopted for the year 1910, for Table Cutting:, American Table Cutting:, Sewing: Fine Gloves. (Second column, table as agreed upon for year ending: December i, 1900, by repre- sentatives of the Glove Manufacturers Association and of the Fulton County International Glove Table Cutters Union.) Price per doz. pr. Kind of Work. 1910. 1900. Imported or domestic kid or suede $0.90 $0.88 Mocha castor or Mocha reindeer i.oo .93*4 Mocha castor for fur-lined gloves pr where two inches or more of extra leather is required i.io 1.05 Craven tan, napa or dipped lamb or sheep 95 .95 Same if for lamb or fur-lined gloves 1.05 1.05 Real kid or goat i.oo i.oo Oil or alum-dressed deerskins i.io Indian-tanned deerskins 95 .95 Little jacks 1.20 1.20 Cambretta and Mocha kid 99 .99 Coltskin i.io Calfskin 1.05 Chamois or fleshers, all colors 86 .84 Women's wide cuff gauntlets, flare included but not bound 1.20 Women's wide cuff gauntlets, flare included with bind- ing . 1.25 Women's gauntlets, with cuff up to 2# inches wide. including flare 1.05 1.05 Automobile gauntlets, not combination 1.50 For dowling the cuffs of women's gauntlets extra 10 .10 All mittens 18 cents per doz. less than corresponding gloves Boys' gloves not to exceed 8% inches of leather for lined or 8 inches for unlined and 2^ inches in top length, not cur on cadet patterns 80 .80 Cutting lamb linings 70 Cutting fur linings i.oo Tilburys with fourchettes and part thumbs 50 Backs.. 40 -40 Palms Kid palms incl. fourchettes and thumbs 70 Mocha palm incl. fourchettes and thumbs 75 Buck or cambretta incl. fourchettes and thumbs... .80 APPENDIX I 73 Extras. Spring pieces ........................................................ 03 .03 Laps ..................................................................... 05 .05 Ridelle ................................................................... n .11 Gores ..................................................................... 05 .05 Blue mark running length of glovr .......................... 05 Extra wrist binding ............................................. 05 Flat slit welt ......................... ................................. 03 ...... Band tops ........ .................................................... 15 .15 Quirks if not in pattern ............................................. 10 .10 Mocha or reindeer rags to be cut by day at ............... 3.00 ...... Deerskin rags, per dozen ......................................... 10 ...... Men's goods or women's lined gloves, cut with more than % inch flare on each side ............................... 10 Women's barritz and mousquetaire gloves, where flare is used, with more than % inch on each side... .10 Punching and trimming gloves ................................. 10 ...... Punching and trimming mittens ................................ 10 ..... Slitting gloves by hand .......................................... 40 Slitting mittens by hand .......................................... 15 ...... Slitting one-finger mittens by hand .......................... 20 Cutting single pairs ............................................... 15 Cutting single pairs and slitting by hand .................... 25 7^ cents per inch for every inch or part of an inch in length in excess of 3# inches on men's and 4# inches on women's gloves excepting on all chamois, which shall be 5 cents per inch. French chalk applied if wanted. Only two kinds of gloves and one throw-out (boys) shall be required from one batch of leather. Fourchettes shall be replaced only before the glove is made. Cutters will be allowed to draw up to $20 if they have earned same, on the second Saturday after regular pay-day. Any special extra work, not provided for in this schedule, may be adjusted between the manufacturer and the cutter. Dowling. * Dowling per dozen gloves up to 4/^ inch top ............. $0.30 $0.30 Dowling per dozen gloves 4^ to 8 inch top ............. 43# -43/4 Dowling per dozen gloves 8 to 12 inch top ............. 57> Dowling per dozen gloves 12 to 16 inch top ............ .75 Dowling per dozen gloves 16 to 20 inch top .......... 90 Imported or domestic suede ...................................... 5 Cambretta or Mocha ....................... ......................... 32^ Where the cutter dowls the skins and then cuts the gloves therefrom, he shall be credited for both the dowling and cut- ting per dozen gloves in accordance with the table-cutting schedule and not in any other way. Prices for cutting men's gloves up to 3/^ inch top and 74 APPENDIX I women's gloves up to 4/^ inch top with slit binding:, number- ing:, sizing, punching thumbs and fourchettes, including Eng- lish thumbs, when cut from the following stock: AMERICAN TABLE CUTTING SCHEDULE As adopted by the Glove Manufacturers Association of the United States tor the year 1910. CLASS A The following is required of "A" cutting: " Lined, un- lined and silk-lined/' Tranks accurately measured crossways, or lengthways if faults should make it necessary, and spudded. Thumb tranks accurately measured, and spudded, numbered, sized, and punched or not, as required. CLASS B Class " B " consists of lined gloves or mittens. Tranks measured and spudded. Thumbs not measured but so worked out that they will be in due proportion to the size of the glove, sized, and punched or not, as required. CLASS C Class "C" calls for same trank measurements, but not as careful workmanship as class " B," numbered, sized, or not, as required. Tranks not spudded. Thumbs not measured, but num- bered, sized, and punched or not, as required. Prices for cutting men's and women's gloves and mittens with slit binding, numbering, sizing, punching thumbs and fourchettes, including English thumbs, when cut from the following stock: Class Kind of Work. A. B. C. Imported or domestic kid or suede, or flesher $0.40 $0.65 $0.55 Mocha castor or Mocha reindeer 80 Friezed lamb 80 .75 Mocha castor, or Mocha reindeer, or friezed lamb or sheep if for lamb or fur-lined gloves, or where two inches or more of extra leather is required... .85 Cravan tan, napa, or dipped lamb or sheep 75 .65 .55 Oil-dressed deerskin gloves, colored or smoked, punched or not, as required i.oo APPENDIX I 75 Deerskin mittens, all kinds, punched or not, as re- Suired 78 ian-tanned deerskin gloves, punched or not. as required 95 Little jacks, gloves, punched or not, as required.... 1.05 .95 Cambretta and Mocha kid gloves 80 Coltskin gloves i.oo Calfskin gloves 95 Chamois 70 .65 Women's wide-cuff gauntlets, flare included but not bound .95 .85 .75 Women's wide-cuff gauntlets, flare included, in- cluding binding i.oo .90 .80 Women's gauntlets, with cuff up to 2)4 inches wide, including flare 80 .76 .60 Automobile gauntlets i.oo Automobile gauntlets, combination .90 Automobile gauntlets, cuff and gores cut by hand.. 1.25 Boys' gloves, lined or unlined, not to exceed nine inc hes of leather, not cut on cadet patterns 60 .52^ .40 Boys' deerskin gloves 80 Boys' Mocha gloves 75 .65 Gloves and mittens of German deer, 15 cents per dozen above price paid for cutting Mocha. Childrens mitts, kid or suede 42^ -35 -20 Childrens mitts, Mocha or buck 55 .40 .30 Cutting lamb linings from skins, long wool 70 Cutting lamb linings from skins, short wool 60 Cutting lamb linings from plates 60 Cutting fur linings from skins 90 Cutting fur linings from plates 80 Tilburys with fourchettes and part thumbs 50 Backs, kid or suede 30 Backs, buckskin 35 Palms, kid or suede, including fourchettes and thumbs 50 .45 .30 Palms, Mocha, including fourchettes and thumbs... .60 Palms, buck, including fourchettes and thumbs 75 Men's or women's mittens, when not otherwise provided for, 15 cents less than corresponding gloves. Extras. Button stays $0.05 Laps, 24 to the dozen 05 Gores, where split bindings are also required 05 Extra wrist binding 05 Quirks, if not in pattern 10 Mocha or reindeer rags, per dozen 15 Men's and women's gloves cut with more than % inch flare on each side 10 Deerskin rags, per dozen extra 15 Punching and trimming gloves 10 Punching and trimming mittens 05 Cutting single pairs, per pair 10 76 APPENDIX I Cutting single pairs and slitting by hand 25 Punching silk-lined thumbs 05 Gloves or mitts, for fur or lamb-lined, where two cr more inches of leather is required 05 No more than three kinds of gloves shall be required from one batch of leather. The expense of mistakes is to be borne by those who make them. This applies to working over of tranks and all other mistakes. (Last two notes same as last two in Table Cutting Schedule.) SCHEDULE OF MAXIMUM PRICES FOR SEWING FINE GLOVES AS ADOPTED BY THE GLOVE MANUFACTURERS* ASSOCIATION OF THE UNITED STATES FOR THE YEAR IQIO In Out of Kind of work. factory, factory. Silking (two, three or four-needle machines). Two-needle completely around center row $0.18 $0.18 Single, double or triple drawn or plain four-needle .... 8 to 10 8 to 10 Two-needle around center row, one end open i2> .12% Two-needle around center row, one end open, ends picked Two-needle reverse around center row, one end open. .15 .15 Three or four-needle around center row, one end open .18 .18 Single needle machine. Making draw on single needle machine n .11 Brosser machine. One row brosser 10 .10 Baker or Union Special Machine. One row embroidery 10 .10 Two rows embroidery 14 .14 Three rows embroidery 18 .18 Hand Work. Making full spear points 30 .30 Making drops for spear points 20 .20 Sewing on ordinary slit stay pieces 05 .05 Making button holes 12 .12 Buttons sewn on plain 07 .07 Buttons sewn on with tape 10 Sewing tape stays for one fastener up to 2% inches long .08 .08 Sewing tape stays for two fasteners, up to 4 inches long .10 .10 Sewing leather stays for one fastener, up to 2# inches long - 10 .10 Sewing leather stays for two fasteners, up to 4 inches long 12 .12 End pulling according to work required 2 to 6 2 to 6 APPENDIX I 77 Hemming, etc. Putting on white hem on overseam, sewing down on both sides 12 .12 Self hem on overseam 06 .06 Sewing slit binding on lockstitck 05 .05 Reinforcing slits on lockstitch 10 .10 Sewing continuous binding around slit and top on overstitch machine 09 .09 Sewing continuous binding around hem and slit, once around on lockstitch machine 10 .10 Sewing down and trimming slit binding 08 .08 Sewing on slit binding and stitching once around the slit and twice across the top 18 .18 Sewing on slit binding and stitching twice around the slit and twice across the top known as the " Horse- shoe'' hem 20 .20 Sewing on slit binding and stitching once around slit and twice across the top, where slit binding is trimmed by hemmer to leave part of slit binding to serve as button piece 20 .20 Sewing in slit binding, stitching once around slit and twice across top and fastening by a single row of stitching, the button piece part of the binding thus forming the ordinary box hem 22 .22 Same as next preceding item when operator is required to mark pattern for box 25 .25 Rubbering with six rows and in center gore 20 .20 Rubbering with six rows with side gore 15 .15 Rubbering with six rows if side gore is already in 10 .10 Double rubbering on extra long top and setting in gore .22 .22 Furring straight around 15 .15 Furring spring top 40 .40 Making fleece or plush glove lining .10 .10 Making fleece or plush mitten lining 08 .08 Sewing. Inseam. Making lined or silk-lined gloves, with or without quirks, without quirks, slit bindings tacked but not sewn on, fourchettes trimmed 70 .60 If made mock pique, side seam stitching on palm .85 .75 If made mock pique, side seam stitching on back 90 .80 Closing glove where fitting up has been done by an operator other than the closer 20 .20 Making hem-top mittens complete 45 .45 Making fur-top mittens complete 35 .35 Making fleece-lined gloves complete i.oo i.oo If made without laps or quirks 5 cents less for each. Overseam. Men's or women's gloves with quirks, not hemmed, but with binding sewn on 85 .75 Men's or women's gloves, without quirks, but with bindings sewn on 75 .65 7 8 APPENDIX I Men's or women's overseam mittens 30 .30 Misses' or children's overseam mittens 25 .25 Gloves made without bindings or welts, deduct 5 cents from schedule price for making such gloves. Pique. Fitting up for pique or inseam, slit welts sewn on, fourchettes trimmed and ends tied 55 .50 Same without slit welts 50 .45 Closing gloves on pique 85 .78 Making pique mittens.. 38 .36 Fitting up pique mittens ro .10 Closing pique thumbs 10 .10 Triple Stitch. Making gloves on triple-stitch machine, with quirks but not hemmed, all ends tied i .40 Prixseam. Making prixseam with quirks, but not hemmed, all ends tied 1.30 1.20 Gauge Outseam. When gauge is used. Making men's or women's all outseam, with or with- out quirks, all ends tied 1. 10 i. oo Making men's or women's half outseam, with or with- out quirks, all ends tied.. ....' 85 .80 Making men's or women's outseam mittens.. 30 .30 Above with thumbs sewn in flat 10 cents extra. Trimmer Outseam. Making full outseam with quirks, slit binding tacked. .90 .80 Making half outseam with quirks, slit binding tacked. .75 .65 Making outseam mittens, round thumb 30 .30 Making outseam mittens, English thumb . 30 .30 Above with thumbs sewn in flat in cents extra. The clause in the schedule " all ends tied " refers to all ends except quirk ends, and quirk ends should be fastened by back- stitching at least four stitches. Mousquetaires and Barritz. Musoquetaircs made overstitch, slit sewed on : 6-8 inches .80 10 inches 85 12 inches i.oo 16 inches i.io 20 inches 1.20 Barritz made overseam, no slit bindings : 6-8 inches 75 10 inches 80 12 inches 95 16 inches 1.05 20 inches 1.15 APPENDIX I Mousquetaire made gauge (when gauge is used) with- out slit bindings : 79 6 inches. 8 inches. 10 inches. 12 inches. 16 inches. ,10 IS .20 25 .40 Mousquetaires made pique Fitting : Fitting up 6 inches 55 8-12 inches 60 Above 12 inches 65 Closing 6 inches 85 8 inches 90 10 inches.. 95 12 inches. 14 inches. 16 inches. 18 inches. 20 inches. ,00 05 ,10 .20 Silking monsquetaires, drawn back : Above 8 inches 12 Two draw 12 Stitching around 15 FACTORY HOURS Making Department Factories shall be open from 7 to 12 o'clock in the forenoon and from I to 6 o'clock in the afternoon, Saturdays excepted, when the closing 1 hour shall be 5 o'clock, excepting: during the months of June, July and August, when the closing hour shall be 12 o'clock noon. Piece workers in the making department shall work not less than seven hours each working day, from 8 a. m. to n a. m.; i p. m. to 3 p. m., except on Saturdays during June, July and August, when they shall work four hours, from 8 a. m. to 12 m. APPENDIX II PROPOSED SCHEDULE* Submitted to the Ways and Means Committee by the Glove Manufacturers' Association of the United States. Paragraph 439. Act of 1897. Gloves : Gloves, made wholly or in part of leather whether wholly or partly manufactured, shall pay duty at the following- rates : The lengths stated in each case being the extreme length when stretched to their full extent, namely : Paragraph as amended or reconstructed. Gloves : Gloves, made wholly or in part of leather whether wholly or partly manufactured, shall pay duty at the following rates, namely : On gloves not exceeding eleven inches in length, four dollars per dozen pairs ; On gloves exceeding eleven inches in length, an additional duty of fifty cents per dozen pairs for each inch or major portion of an inch in excess of said eleven inches, the length in each case being the extreme length when stretched to its full extent. 80 Tariff Hearings, Nov. 28, 1908. APPENDIX II 8l Paragraph 440. Act of 1897. Paragraph as amended or reconstructed. Women's or children's "glace" finish, Schmaschen (of sheep origin), not over fourteen inches in length, one dollar and seventy-five cents per dozen pairs ; Over fourteen inches and not over seventeen inches in length, two dollars and twenty-five cents per dozen pairs ; Over seventeen inches in length, two dollars and seventy-five cents per dozen pairs ; Men's " glace " finish, Schmaschen (sheep), three dollars per dozen pairs. Paragraph 441. Act of 1897. Paragraph as amended or reconstructed. Women's or children's " glace " finish, lamb or sheep, not over fourteen inches in length, two dollars and fifty cents per dozen pairs ; Over fourteen and not over seventeen inches in length, three dollars and fifty cents per dozen pairs ; Over seventeen inches in length, four dollars and fifty cents per dozen pairs ; Men's "glace" finish, lamb or sheep, four dollars per dozen pairs. 82 APPENDIX II Paragraph 442. Act of 1897. Paragraph as amended or reconstructed. Women's or children's "glace" finish, goat, kid or other leather than of sheep origin, not over fourteen inches in length, three dollars per dozen pairs ; Over fourteen and not over seventeen inches in length, three dollars and seventy-five cents per dozen pairs ; Over seventeen inches in length, four dollars and seventy-five cents per dozen pairs ; Men's "glace" finish, kid, goat, or other leather than of sheep origin, four dollars per dozen pairs. Paragraph 443. Act of 1897. Paragraph as amended or reconstructed. Women's or children's, of sheep origin, with exterior grain surface removed, by whatever name known, not over seventeen inches in length, two dollars and fifty cents per dozen pairs ; Over seventeen inches in length, three dollars and fifty cents per dozen pairs ; Men's, of sheep origin, with exterior surface removed, by whatever name known, four dollars per dozen pairs. APPENDIX II 83 Paragraph 444. Act of 1897. Paragraph as amended or reconstructed. Women's or children's, kid, goat, or other leather than of sheep origin, with exterior grain surface removed, by whatever name known, not over fourteen inches in length, three dollars per dozen pairs ; Over fourteen inches and not over seventeen inches in length, three dollars and seventy-five cents per dozen pairs ; Over seventeen inches in length, four dollars and seventy-five cents per dozen pairs ; Men's goat, kid, or other leather than of sheep origin, with exterior grain surface removed, by whatever name known, four dollars per dozen pairs. Paragraph 445. Act of 1897. Paragraph as amended or reconstructed. In addition to the foregoing In addition to the foregoing rates there shall be paid the rates there shall be paid the following cumulative duties : following cumulative duties : On all leather gloves, when On all gloves, wholly or lined, one dollar per dozen in part of leather, when lined pairs ; with cotton, woolen or silk fabrics, one dollar per dozen pairs ; When lined with skin or fur, five dollars per dozen pairs ; On all pique or prixseam On all pique or prixseam gloves, forty cents per dozen gloves, forty cents per dozen pairs ; pairs ; On all hand-sewn gloves, one dollar per dozen pairs ; 8 4 APPENDIX II On all gloves, stitched or embroidered, with more than three single strands or cords, forty cents per dozen pairs. On all gloves having crows' feet stitched, sewn or silked on the backs thereof, or hav- ing stitched, sewn, embroid- ered or silked on the backs thereof points, each point con- sisting of more than a single row of stitching, sewing, em- broidery, or silking, whether the same be continuous or otherwise, forty cents per dozen pairs ; On all gloves having more than a single line of stitching, sewing, embroidery or silk- ing, on the cuffs or wrists thereof, twenty-five cents per dozen pairs. Paragraph 446. Act of 1897. Glove tranks, with or with- out the usual accompanying pieces, shall pay seventy-five per centum of the duty pro- vided for the gloves in the fabrication of which they are suitable. Paragraph as amended or reconstructed. Glove tranks, with or with- out the usual accompanying pieces, shall pay seventy-five per centum of the duty pro- vided for the gloves in the fabrication of which they are suitable. APPENDIX III ARGUMENT FOR PROPOSED SCHEDULE' "The Glove Manufacturers' Association of the United States desires to call your attention to the trade developments in connection with the tariff schedule on gloves contained in paragraphs 439 to 446, both inclusive, of the Dingley Act. We are confident that your Committee will discern that no in- dustry in the United States has made, or can make, a more satisfactory showing under protection than the glove industry, to demonstrate which we review the history of this industry. " Before the McKinley Act of 1890 there was no glove in- dustry in the United States competing in our markets with the foreign-made gloves. There has been, during 1 the previous fifty years, developed the manufacture of gloves for working- men, but such gloves were made in this country only, as we are the only people in the world paying a sufficiently high rate of wages to enable the working man to indulge in the luxury of protecting 1 his hands while at work. The working- men's gloves we manufacture are considered curiosities in other parts of the world, where no such articles are made or used, and to-day the manufacture of such workingmen's gloves still remains the largest part of the glove industry, the census of 1905 showing that 65.3 per cent, of American production was of the workingmen's gloves. " Prior to 1890 the tariff on gloves was 50 per cent, ad val- orem. It was clearly demonstrated that under an ad valorem tariff no legitimate trade could be developed or continued here because of undervaluations, the business going into the hands of agents of foreign manufacturers, against whom the Ameri- can importer could not successfully compete. The American dealer confined his purchases practically to the agents of im- porters, and the American manufacturers found no opportunity to compete with the enormous importation of men's and women's gloves. The ad valorem rate of 50 per cent, gave no 'Tariff Hearings before Ways and Means Committee, November 28, 1008. 85 86 APPENDIX HI consideration to the theory of protection, but simply repre- sented a tariff for revenue, and there was no glove industry in the United States making: fine gloves under that rate. " In the consideration of the McKinley bill the question of giving" protection, so as to build up an American industry, was thoroughly investigated, with the conclusion that such oppor- tunity was given on men's gloves, while leaving the women's gloves on a purely revenue basis. It was believed that the highly skilled labor necessary for the manufacture of women's gloves could not be found in the United States. In the fiscal year 1890 there were imported 127,000 dozen pairs of men's gloves, paying a revenue of $229,222.50. The McKinley bill imposed, in addition to the previous 50 per cent, ad valorem rate, one dollar per dozen extra on men's gloves. From the date of its enactment, the American fine- glove industry had its start, until to-day it has developed into an industry giving employment to twenty thousand working mem scattered over the United States in twenty-seven states, but mainly centered in Fulton County, in the State of New York. When, in the course of events, the consideration of a revised tariff, with the avowed purpose of enacting a tariff for revenue only, took place in 1893 under the chairmanship, in this com- mittee, of Mr. Wilson, the business of manufacturing men's gloves had already made its start. The importation of men's gloves during the fiscal year 1893 amounted to 103,808 dozen pairs, paying in duties $448,943.64, which was a reduc- tion of 24,000 dozens under the importations of 1890. The Democratic revision of the tariff showed clearly that proper appreciation had been given to the need and justice of a pro- tective tariff on men's gloves, and further, that a schedule to be just, and fairly complied with under the law, could not be based on ad valorem rates. The Wilson bill of 1893, for the first time, placed exclusively specific duties on gloves, and moreover, after the fullest and most careful study of the problem, gave increased rates of duty on men's gloves, while lowering the duty on women's gloves, in specific form to about one-half the rates which maintained under the McKinley bill. At this point attention should be directed to the fact that the Wilson bill duties on women's gloves, which were only about one-half of the rates of duty im- posed under the McKinley Act, did not increase the importa- tion of women's gloves, nor augment the government's reve- nues, but had quite the contrary effect. APPENDIX III 87 In 1893, under the McKinley Act, there were imported 1,314,862 dozen pairs, paying- a revenue of $3,252,653, while in 1896, under the Wilson Act, with its reduction of duties on women's and children's gloves, only 1,176,776 dozens of these gloves were imported, paying duties of $2,075,548. These fig- ures show that the lower Wilson bill rates did not increase the importation of this article of semi-luxury, but on the contrary fewer women's gloves were imported under these lower rates and the government revenue decreased nearly a million and a quarter of dollars. When the Dingley Act of 1897 was under consideration, these facts were clearly presented and a demand was made for the continuance of the duties on men's gloves, which was agreed to. So the rates of the Dingley bill, on men's gloves, were exactly those of the Wilson bill, with the addition of the extra cumulative provisions on the more elaborately and expen- sively sewn and embroidered gloves. We were not able, at that time, to persuade Congress to place a compensatory pro- tective duty on women's gloves such as had been given on men's gloves ; and, although the duties on women's gloves were increased to some extent under the Dingley bill, they still remained purely revenue duties, and inadequate to provide protection to our manufacturers." APPENDIX IV State. tn V O M oo oo Number of 2? $ establishments. i '2. C3 $10,705,599 9,004,427 6,348,407 6,219.647 Salaried offi- cials, clerks, Total, etc. 1 8 640 637 296 328 1 rt "rt ft $584,573 544,17 262,873 294*574 || ^ 1 United States -j New York .... -I 1905 1900 1905 1900 10,645 14,180 #3,840,253 4,151,126 2,131.053 2,723,702 Census of Manufactures, 1905, Bulletin 72. APPENDIX V VALUE OF GLOVES, OF KID OR OTHER LEATHER, IMPORTED : 1900 TO 1905 l Year. Value. 1 Year. l Value. f QOC &d 727 dSo Sc,^66,'?8i i 90 i ......... . . c t;^d 2^0 IOO3 5 W V3OJ/ C O2O 278 IOOO 6 IO7.76C Census of Manufactures, 1905, Bulletin 72. 1 Bureau of Statistics, Department of Commerce and Labor, Commerce and Navigation of the United States. APPENDIX VI 89 5-S.S -^lo- 85: in to oo ?, s N N 2 J & I- \o vo H 9 v o *T- * "P^ *J o o< t^.d rf * w o o ^. rf ovo i-" vd M in m t-x vn - moo oo t^ t^ moo * *I o I -s 111? ; I S "I I | 4 i J -a Si I .2 = -o 1 < 1 ! S I * "o I 5 !":-=: 8 I ^ 1 1 __w- M _?% ro vO O 10 10 t^ 00 ON **" ^*^-^^-^>-v^-*. "^ ^T IO *" fO *- "g , to t; ; - rt s ! l I 1 * s 2 ^"rt.SJ g.JJ i_5fe^^5^"5* * i.S g g S ofll < f > ' f ' { *J**' 3 S _^5 r, ** 1/5 (/; -^ r: llflJ illli Ti *^ * Hnftllll = S^S C -rt^,P Zuc/5 w>H APPENDIX VII PRODUCTS, BY KIND, QUANTITY AND VALUE: 1905 AND 1900 1905. 1900. It. I 7 fAQ 78 C t T A 72I 27A Gloves, mittens, and gauntlets: Total dozen pairs* f* 1 />/4 w ij;) 7 770 1.4.6 2 89 ^ 66 1 Si 7 I 22 772 & 1 6 o "?o 1 68 Men's Lined 1 317 083 OC2 82O Value 56. 3 3 3.081 *4.,QCQ.QO2 Unlined i CQ8 112 I ^14 5O7 58 182.680 7 /i c8 7c6 Women's Lined Dozen pairs ............ 70688 78 781 Value &1Q&32C C78 762 Unlined I 74, IO2 221 O?Q Value Si, 420, 807 5l. 772, 74.6 Gauntlets Dozen pairs ..... ...... (1) 24 OO4. Value (' Si ?o.6ij2 Children's Lined 161 673 1 88 366 Value 1U1,U/ J te-12 Cl8 $7OQ CCA Unlined fjj*t5 ltj 50.268 1 16,14.2 Value *I CC.-JC2 J44Q.CQ6 All other products, including custom work and C6t 7611 5682 066 ' Not reported separately. APPENDIX VIII DRESS AND WORKING GLOVES, MITTENS AND GAUNTLETS, BY QUANTITY, WITH PER CENT. EACH KIND is or TOTAL: 1905 Aggregate. Men's. Women's. Children's. C i- It Z^ ii r g.S &* -"3 r It Q il u ** r S2 gl Q i ? 3.370,146 977, { 594 43 ',897 545 6 97 2,392,552 1,126,547 1,266,005 1 00.0 29.0 71.0 ,.. 2,915.415 7 > 5, 949 3M,i5 401,799 2,199,466 1,002,933 1,196,533 100.0 24.6 75-4 253,790 183,333 49,364 133,969 70,457 30,324 40,133 1 00.0 72.2 27.8 200,941 78,312 68,383 9,929 122,629 93,290 29,339 1 00.0 39.0 Dress : Xotal Lined .... Unlined . Working : 61.0 Lined .... Unlined .. Census of Mtnufactures, 1905, Bulletin 72. Qi APPENDIX IX RATES OF DUTY Schedules 1890, 1894, 1897 and 1909 Men's. 1890. McKinley. 1894. Wilson. 1897. Dingley. 1909. Payne- Aldrich. co/fc and $i oo &1 OO *-? oo *-? oo 50 % and i.oo 4. OO 4..OO 4.OO Kid 50% and i.oo d OO 4..OO 4..OO co %> and I oo 4 OO 4 oo A no Suede kid co % and i .00 **** A OO A OO A OO Women's. Schmaschen : SI.7C I OO I.7C I.2C l Under 17 v '& CQ% I CO 2 2C 2 2C j v / c CO% l 'J^ 2 OO *^*3 2.7C **3 2.7 c Lamb: $2.2C I 7C **/D 2. CO 2.CO **:> CO% 2.7C 2. CO 0. en Over CO% 7.7C A. CO 4. co Kid: 13-25 2.2C 7.OO ^.OO Under 17... ........... J 2 CO% 7 CO 5.7C 3.7C * IS CQ% 4 OO 4..7C 4..7C Suede, etc., sheep : J v / s% I.7C 2. CO 2.CO Under 17 .. CO tfn 2 7C ? CQ 2 CO Over 5 2? co% *"IJ 3-5 *o v Suede, etc., kid : ri* CQ% 2.2C I roo ^.oo Under 17* y* /o co% 7.OO J.7C, 1.7 c * 2 CQ% 4..OO 4.7C 4.7 c Extra Cumulative Men's and Women's. $1 OO I.OO I.OO I.OO Pique or prixseam .50 CO 1 40 dO .40 .40 !> w \ 1 Reduction. APPENDIX X IMPORTATIONS OF GLOVES (MEN'S AND WOMEN'S AND CHILDREN'S) Total Gloves. Year ending June 30, 1907 , Year ending June 30, 1908. Year ending June 30, 1909 Year ending June 30, 1910, Year ending June 30, 1911 . Quantities, dozen pairs. Values. Duties. 1,186,569.68 902,541.20 1,159,221,78 1,309.107.79 1,196,871.12 $10,261,945.65 7,760,645.26 7,210,554.81 7.755.239.26 7.775.436.61 ^4,243,363.57 3,184,937.83 3,617,425.67 3,840,492.94 3.554.754.83 Department of Commerce and Labor, Bureau of Statistics. 93 APPENDIX XI LEATHER GLOVES' The Chamber of Commerce of Altenburg reports as follows regarding- pamphlet 20, page 2515 : Mr. Littauer has made statements regarding the conditions of production in Germany, which are to a great extent based on erroneous suppositions. It would take too long to ex- amine into all of the details of Littauer's statements, and only a few specially important points will be taken up here. Littauer alleges that the production of a dozen pairs of leather gloves, exclusive of the leather, costs $2.14 (8.98 marks) in Germany. This, however, is not in accordance with facts, for even though this price may be paid in certain regions, it cannot be taken as the average rate. Moreover, the prices for cutting out, as cited by him, are also incorrect. The minimum wages for cutting out gloves were cited at 2.30 to 2.80 marks, whereas, for instance, at Munich the minimum wages are 3.36 marks per dozen and at Altenburg 3.10 marks. Littauer further states that the leather for a dozen pairs of gloves costs $7 in America, including duty, a price which is by no means correct, as the cost is considerably lower. On page 2526 of the report, Littauer speaks of the wages for sewing, mentioning 24 to 30 cents a dozen (i to 1.30 marks) as the wages for ordinary sewing in Germany, as against 75 cents a dozen in America, and 50 to 60 cents a dozen (2.30 to 2. 55 marks) for whipped seam in Germany, as against $1.40 per dozen in America. The lowest wages for ordinary sewing in Germany amount, however, to 1.55 to 2.70 marks, and for whipped seem to 3. 30 to 4.20 marks. Littauer further states that a large number of German manufacturers send their gloves to Belgium to be sewed, because, as he supposes, the sewing wages are cheaper there. This statement is also wrong, for seam sewing is 25 pfennigs dearer in Belgium than in Germany. The real reason why the German manufacturers have their sewing done in Belgium is because a finer and Senate Document 68, Pt. 2, 6ist Congress ist Session. 94 APPENDIX XI 95 better seam is made in that country than in Germany. Lit- tauer's statement regarding: the dyers' wages in Germany are as incorrect as those regarding- the wages paid for cutting out and sewing seams. The hearings before the Committee on Ways and Means, which also related to the duties on leather gloves, show that erroneous ideas are entertained by American manufacturers regarding the cost of manufacture of gloves. Thus the expert, Mr. Littauer, who was examined on this matter, stated that the production of a dozen leather gloves in Germany cost $2.14, or 9 marks. However, even if ihis price (as we doubt) should be paid in individual districts, it cannot be taken as the average rate, but must be regarded as an exception, for in reality the cost of production of fine gloves in Germany comes to 13 or 16 marks. In view of this price, the present tariff seems amply sufficient to offset the difference in the cost of production in America and Germany. The prices for cut- ting are likewise quite wrongly given by the incorrectly informed importers. Thus, 2.30 to 2.80 marks are given as as the minimum wages for cutting, whereas, for instance, in Munich, the minimum wages per dozen are 3.36 marks. Equally incorrect are the statements with regard to dyeing. The assertion of Mr. Littauer that the leather for a dozen gloves costs $7 is also erroneous, the price being much less on an average. Furthermore, the statements concerning the wages paid for sewing seams (p. 2526 of the report) are also incorrect. Mr. Littauer mentions 24 to 30 cents (i to 1.30 marks) as the wages for ordinary seams, and 54 to 60 cents (2.30 to 2.55 marks) as the rate paid for whipped seams. It is unlikely that such wages are paid anywhere in Germany, as the lowest wages in Germany for ordinary seams are 1.55 to 2.70 marks, and the rate paid for whipped seams 3.30 to 4.20 marks. The reason why the German manufacturers send their gloves to Belgium to be sewed is by no means because the prices for sewing seams are cheaper there than in Germany, for as a matter of fact Belgium seams cost 20 to 25 pfennigs per dozen more than in Germany. Mr. Littauer therefore errs in this regard also. BIBLIOGRAPHY In the preparation of this monograph the following works have been read or consulted. Quotations from each are credited in the proper place. Hull, William. The History of the Glove Trade with the Customs Connected with the Gloves. London, 1834. Beck, S. W. Gloves , their Annals and Associations. London, 1883. Cote, Leon. L'industrie gantiere et Vouvrier gantier a Grenoble. Preface de Jean Jaures. Paris, 1903. Pfliiger, Rudolph. Die lederhandschuhindustrie Deutschlands , ihre Entwicklung und ihre Lage. Heidelberg, 1908. Belgium Section de la Statistique. Les salaire dans V Industrie gan- toise. Brussels, 1901. U. S. Department of Commerce and Labor. Census of 1905, Bulle- tin 72. Census of 1900, Part IIT, Manufactures. Glover 1 s Review. A Monthly Trade Journal published at Glovers- ville. New York State Department of Labor. Report of Bureau of Labor Statistics, 1900, Part I, Industrial Training. 96 VITA THE writer of this monograph, Daniel Walter Red- mond, was born at Oxford, N. Y., in 1876. He received his elementary training in the public schools of New York state and at the High School at Greene, N. Y. His college work was done at Hamilton College from which he received the degree of Ph. B. in 1901. In 1901-1904 he taught in the High School at Clinton, N. Y. In 1904-5 he taught in Jenner's Preparatory School at Syracuse, N. Y. From 1905-12 he has been a Special Instructor in the department of Public Speak- ing at the College of the City of New York. In economics and allied subjects the author has studied under Professor Delos DeWolf Smyth at Hamilton College and under Professors E. R. A. Seligman, H. R. Seager, J. B. Clark, H. L. Moore, F. H. Giddings, A. A. Tenney, Frank J. Goodnow and T. R. Powell at Columbia University. 97 FOURTEEN DAY USE RETURN TO DESK FROM WHICH BORROWED This book is due on the last date stamped below, or on the date to which renewed. Renewed books are subject to immediate recall. 5Jan'56MCZ * *Jfcu General Library LD 21-100m-2, 55 University of California (B139s22)476 Berkeley