SCHEDULE 12.-SILK MANUFACTURES

REPORT BY THE SUBCOMMITTEE

CARL R. CHINDBLOM, Chairman
FREDERICK M. DAVENPORT

ALLEN T. TREADWAY

Raw silk is the largest single item of imports into the United States. In the pending bill it is retained on the free list under paragraph 1760 as "Silk cocoons and silk waste," and paragraph 1761 as "Silk, raw, in skeins reeled from the cocoon, or rereeled, but not wound, doubled, twisted, or advanced in manufacture in any way." The total importations of these raw materials in 1928 amounted in value to $373,249,371. In the same year the average values per pound of these imports were as follows: Silk cocoons $0.662, silk waste $0.416, raw silk, in skeins reeled from the cocoon, or rereeled, $4.875. This vast importation of raw material is used by the silk industry which had an output in manufactures in 1927 of approximately $686,000,000. As against this domestic production there were importations in 1927 amounting in value, including duties paid, to about $44,000,000. The raw silk and silk yarns and threads also supplied the basic raw material for the silk knit goods industry, which in 1927 showed a domestic production of nearly $301,000,000, as against foreign imports of silk knit goods amounting in value, duty paid, to $608,320. These facts are shown in some detail in the following table, compiled from official

sources:

Comparison of imports and domestic production of silk manufactures and of silk knit goods, 1927

Includes silk laces valued at $168,087 made in lace mills whose products are reported in the Census of Cotton Manufactures.

Trimmings and braids are dutiable under par. 1430 (Sundries schedule).

Total is composed of all-silk knit goods valued at $56,162,114 and silk-mixed knit goods valued at $244,669,570.

In our opinion, the silk industry in the United States has suffered more in recent years from domestic overproduction and from overcapacity for domestic production and from constant changes in styles and fashions than from competition from imports on account of inadequacy of tariff duties. The modern styles of dress for women require goods of less weight and larger varieties of colors and decorations than formerly, as is evidenced by the demand for light silk

fabrics and transparent velvets instead of the satins, heavy velvets and other stable silk fabrics of other days. Even the modern headgear has eliminated the demand for millinery velvets and other materials formerly in large use. Rayon has also played havoc with the silk industry and is now an established competitor with natural silk. In fact, all the textile industries have been profoundly affected by what might almost be called a fetish for new and unique creations of wearing apparel. Obviously these conditions can not be met by tariff legislation.

In a few specific cases, increased duties appear necessary, as shown by the detailed "Summary" on the various paragraphs occurring hereafter. Wherever practicable, ad valorem rates have been substituted for specific rates in the tariff act of 1922, which during the experience of the present law have not been operative because the ad valorem rates have yielded the higher duty payments.

SUMMARY OF RATE ADJUSTMENTS IN SCHEDULE 12

The changes in actual rates of duty in Schedule 12 involve six increases and one decrease. An upward readjustment, amounting to 10 per cent ad valorem, is made on velvets in paragraph 1206. An additional increase of 5 per cent ad valorem is given on all pile fabrics, if the pile is partly cut. An increase of 10 per cent ad valorem is also given such broad silks and narrow fabrics under paragraphs 1205 and 1207 as are woven with Jacquard patterns. In paragraph 1204 sewing silk in the gum gets an increase of 5 per cent ad valorem over the present minimum rate. In paragraph 1203 thrown silk is reduced from 25 to 20 per cent ad valorem.

Alteration in the basis of assessment occurs in paragraphs 1202 and 1204 covering spun silk yarns and sewing silk, respectively. In these paragraphs the form of duty is changed from specific rates with a minimum ad valorem proviso to a flat ad valorem basis. The adoption of the new system involves no change in the height of duties for spun silk; in the case of sewing silk it furnishes a 5 per cent ad valorem increase over the present minimum rate on imports in the gum, but does not change the minimum ad valorem rate effective on ungummed sewing thread which in 1927 comprised 95 per cent of the total value of the imports under the paragraph.

Paragraph 1201: No change is made except to delete the words "silk and artificial silk," which when qualified by the clause "not twisted or spun" denote a combination of the two types of fiber without twisting. There have been no imports of any such commodity. Moreover, as the commercial identity of this article is a matter of doubt, the continuance of this designation in the paragraph is deemed unnecessary.

Paragraph 1202: The progression of specific rates on spun silk by gradation in yarn counts is omitted in this paragraph in favor of an ad valorem system applicable to all yarns irrespective of count. Simplification of this paragraph is believed advisable as the elaborate system of specific rates was not operative under the Act of 1922 on the bulk of the imports. In 1927, for instance, only 3.3 per cent of the total quantity of imports of spun silk yarn were entered under the specific rates. The proposed ad valorem rates are identical with those applied on the single and on the plied yarns under the minimum ad valorem provisos of the 1922 law. In phrasing, the word "rayon"

is substituted for "artificial silk" in the first line of the paragraph, in accordance with the definition of "rayon" appearing in Schedule 13. Paragraph 1203: The ad valorem rate on thrown silk is decreased 5 per cent ad valorem for the reason that imports are virtually negligible, amounting in 1927 to only 122 pounds, valued at $657.

Paragraph 1204: This paragraph is also simplified by the elimination of the specific rates as specially applied to two categories of sewing silk in the gum and ungummed. As the bulk of the imports of sewing silk are ungummed there is no special object in providing a distinctive rate of duty for such thread and floss in the gum. The minimum ad valorem rate under the 1922 Act for ungummed silk thread is adopted as a basic rate. This raises the rate on thread in

the gum 5 per cent ad valorem.

Paragraph 1205: An increase of duty is made in this paragraph amounting to 10 per cent ad valorem on Jacquard-figured broad silks. As imports of tie silks with Jacquard patterns have been competing with domestic tie silks in increasing volume in recent years, this provision aims to protect domestic manufacturers of this line of fancy fabrics, the production of which involves higher labor costs than is the case in the weaving of plain goods of the same grades.

Paragraph 1206: As competition from abroad is largely confined in the silk pile-goods industry to velvets, and as imports have been increasing in volume under the Act of 1922 the rate of duty on velvets is advanced 10 per cent ad valorem under the present proposal. An additional duty of 5 per cent ad valorem is provided on all pile fabrics, if the pile is partly cut. Such "partly cut" pile is sometimes described as "cut and uncut" pile. This agrees with similar increases in other textile schedules. It is believed that these increases in duties will compensate domestic pile-fabric manufacturers for the duties they are required to pay on the foreign spun-silk yarns consumed by them in the production of certain types of chiffon dress velvets.

There is also added to this paragraph a provision for articles finished or unfinished, made or cut from pile fabrics. This is designed to include specifically such manufactures as portières, table runners, etc. Paragraph 1207: This paragraph is not changed except to incorporate an increase of 10 per cent ad valorem for Jacquard-figured goods. Mention of ribbons is omitted from the paragraph on the ground of surplusage; however, there is no intention by this omission to exclude ribbons from the provisions of the paragraph.

Paragraph 1208: The item "mittens" has been specifically mentioned in this paragraph and the phrase "articles of all kinds" substituted for the words "other goods."

Paragraph 1209: No change.

Paragraph 1210: The words "not knit or crocheted" are deleted as surplusage.

Paragraph 1211: A slight change in phrasing is made to make this paragraph conform with the wording of the basket paragraphs of the other textile schedules.

Paragraph 1212: This paragraph is eliminated as it is unnecessary; it is a carry-over from the 1909 Act and is applicable only when specific rates are applied on the basis of cloth weight and construction, which is not done in the pending bill.

The changes made by this bill over the Tariff Act of 1922 are as follows:

[Matter stricken is inclosed in black brackets; new matter is in italic]

SCHEDULE 12.-SILK [AND SILK GOODS] MANUfactures

PAR. 1201. Silk partially manufactured, including total or partial degumming other than in the reeling process, from raw silk, waste silk, or cocoons, [or silk and artificial silk,] and silk noils exceeding two inches in length; all the foregoing, if not twisted or spun, 35 per centum ad valorem.

PAR. 1202. Spun silk or schappe silk yarn, or yarn of silk and [artificial silk] rayon, and roving, [in skeins, cops or warps, if not bleached, dyed, colored, or [advanced beyond the condition of singles by grouping or twisting two or more yarns together, on all numbers up to and including number 205, 45 cents per pound, and in addition thereto ten one-hundredths of 1 cent per number per pound; exceeding number 205, 45 cents per pound, and in addition thereto fifteen onehundredths of 1 cent per number per pound; if advanced beyond the condition of singles by grouping or twisting two or more yarns together, the specific rate on the single yarn and in addition thereto 5 cents per pound cumulative; if bleached, dyed, or colored, the specific rate on unbleached yarn and in addition thereto 10 cents per pound cumulative: Provided, That any of the foregoing on bobbins, spools, or beams, shall pay the foregoing specific rates, according to the character of the yarn or roving, and in addition thereto 10 cents per pound: Provided further, That none of the foregoing single yarn or roving shall pay a less rate of duty than] plied, 40 per centum ad valorem; [And provided further, That none of the foregoing two or more ply yarn shall pay a less rate of duty than] bleached, dyed, colored, or plied, 45 per centum ad valorem. [In assessing duty on all spun silk or schappe silk yarn, or yarn of silk and artificial silk, and roving, the number indicating the size of the yarn or roving shall be determined by the number of kilometers that weigh one kilogram, and shall, in all cases, refer to the size of the singles: And provided further, That in no case shall the duty be assessed on a less number of yards than is marked on the skeins, bobbins, cops, spools, or beams.]

PAR. 1203. Thrown silk not more advanced than singles, tram, or organzine, [25] 20 per centum ad valorem.

PAR. 1204. Sewing silk, twist, floss, and silk threads or yarns of any description, made from raw silk, not specially provided for, [if in the gum, $1 per pound, but not less than 35 per centum ad valorem; if ungummed, wholly or in part, or if further advanced by any process of manufacture, $1.50 per pound, but not less than] 40 per centum ad valorem. [In no case shall the duty be assessed on a less number of yards than is marked on the goods as imported.]

PAR. 1205. Woven fabrics in the piece, [composed] wholly or in chief value of silk, not specially provided for, 55 per centum ad valorem; if Jacquard-figured, 65 per centum ad valorem.

PAR. 1206. [Plushes, including such as are commercially known as hatter's plush, velvets, chenilles, velvet or plush ribbons, and all other pile fabrics, cut or uncut, composed wholly or in chief value of silk, 60 per centum ad valorem.] Pile fabrics (including pile ribbons), whether or not the pile covers the entire surface, wholly or in chief value of silk, and all articles, finished or unfinished, made or cut from such pile fabrics:

(1) If the pile is wholly cut or wholly uncut, if velvets, 70 per centum ad valorem; if other than velvets, 60 per centum ad valorem;

(2) if the pile is partly cut, if velvets, 75 per centum ad valorem; if other than velvets, 65 per centum ad valorem.

PAR. 1207. [Fabrics with fast edges, wholly or in chief value of silk,] Fabrics, with fast edges, not exceeding twelve inches in width, [including ribbons,] and articles made [therefrom,] therefrom; tubings, garters, suspenders, braces, cords, tassels, and cords and tassels; all the foregoing [composed] wholly or in chief value of silk or of silk and india rubber, [not embroidered in any manner by hand or machinery,] and not specially provided for, 55 per centum ad valorem; if Jacquard-figured, 65 per centum ad valorem.

PAR. 1208. Knit [fabrics] fabric, in the piece, [composed] wholly or in chief value of silk, 55 per centum ad valorem; [knit underwear,] gloves, mittens, hose, half-hose, [and gloves,] underwear, outerwear, and articles of all kinds, knit or crocheted, finished or unfinished, [composed] wholly or in chief value of silk, 60

per centum ad valorem [; outerwear and other goods, knit or crocheted, finished or unfinished, composed wholly or in chief value of silk, 60 per centum ad valorem].

PAR. 1209. Handkerchiefs, and woven mufflers, [composed] wholly or in chief value of silk, finished or unfinished, not hemmed, 55 per centum ad valorem; hemmed or hemstitched, 60 per centum ad valorem.

PAR. 1210. Clothing[,] and articles of wearing apparel of every description, [not knit or crocheted, manufactured wholly or in part, [composed] wholly or in chief value of silk, and not specially provided for, 60 per centum ad valorem. PAR. 1211. All manufactures [of silk, or of which silk is the component material of chief value], wholly or in chief value of silk, not specially provided for, 60 per centum ad valorem.

[PAR. 1212. In ascertaining the weight or number of silk under the provisions of this schedule, either in the threads, yarns, or fabrics, the weight or number shall be taken in the condition in which found in the goods, without deduction therefrom for any dye, coloring matter, or moisture, or other foreign substance or material. The number of single threads to the inch in the warp provided for in this title shall be determined by the number of spun or reeled singles of which such single or two or more ply threads are composed.]