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had increased about sufficiently to match the dropoff in domestic production.
Mr. Davis. On the basis of dollars, interpreted roughly here in terms of what the imports would be in dozens compared to domestic shipments that have declined.
Senator ANDERSON. I do not want to compare oranges to apples. Can't you do it on numbers? Can't you translate it from dollars and say that it looks as if the numbers imported have about replaced the slump in domestic production in numbers, in dozens?
Mr. Davis. I think that we could just make an estimate of that, Senator.
Senator ANDERSON. Would you do so?
AMERICAN GLASSWARE ASSOCIATION,
New York, N. Y., July 3, 1958. Senator ROBERT S. KERR, Committee on Finance,
United States Senate, Washington, D. C. MY DEAR SENATOR: Mr. Gustkey and I greatly appreciated the interest your good self and Senators Anderson and Martin showed in the plight of the handmade glassware industry at the hearings July 1.
As requested, I had our office develop the kind of statistical information we feel sure you and the other interested members of the Finance Committee would like to have.
Attached is a table giving a comparison of shipments, exports and imports, on handmade pressed and blown tumblers, stemware, and other table, kitchen, and art ware from 1950 (as requested) through 1956. Information was given on this same basis of presentation before the House Ways and Means Committee for the years 1954, 1955, and 1956. (See pt. 1 of the hearings before Ways and Means Committee, p. 1470.) All figures in the enclosed tabulation are based on statistics from the Department of Commerce.
As established at the Finance Committee hearing, figures are not available on imports, in dozens, of blown glassware. A clear indication, however, of the increasingly desperate circumstances of the handmade industry is portrayed in the attached table on a dollar-volume basis.
Note that in 1950 adding $29,176,766 (domestic shipments less exports) plus $3,089,399 in imports shows a total market consumption of $32,266,165 in that year as compared to $37,623,763 total consumption in 1956-this in answer to your question posed at the hearing as to whether or not the total market had or had not increased in view of increases in population.
- It is also important to note that, in every year since 1950, foreign interests have secured a disproportionate part of the total available market until, in 1956, foreign interests had invaded the market to the point of securing 25 percent of the total shipments for United States consumption.
When Secretary Weeks informed the committee that there had been an increase in volume of the domestic handmade-glassware industry, he was correct as far as the dollar volume was concerned. It went from $26,715,000 in 1955 to $30,094,000 in 1956. He failed, however, to tell the committee that the handmade industry's volume of $30,094,000 in 1956 is just about where the industry stood in 1952, when total shipments for consumption came to $29,800,000. Also, apparently, he did not point out that foreign handmade-glassware manufacturers, as indicated above, have taken an increasing percentage of the total available market away from the domestic industry until, in 1956, it reached 25 percent of shipments for consumption.
As indicated at the hearing, the industry is preparing an application for presentation to the Tariff Commission for the purpose of seeking relief under the escape clause. We have intended to bring this case on blown, handmade glassware, as was done at the time the 1952 case was instigated. However, there is definite indication that pressed ware has greatly increased in the country and our committee in charge of preparation of the proposed case now contemplates bringing a case both on blown and pressed handmade glassware. This brings
us to another important point which we feel sure will be of interest to you and the committee members. The handmade-glassware industry has had increases in wages each year for the past several years, thus making it necessary to pass these increases on to the consumer in the form of price rises. This has brought about an anomalous situation. Handmade blown tumblers, as reported by census, shows the domestic industry shipped $1,811,000 worth of such products in 1955, $1,763,000 worth in 1956, and $1,766,000 worth in 1957. The corresponding dozens shipped show 559,000 dozen shipped in 1955, 685.000 dozen in 1956, an 527,000 dozen in 1957. In like manner, hand-blown goblets and other stemware increased in dollar volume from $8,212,000 in 1955 to $9,324,000 in 1956 and then to $9,455,000 in 1957. The corresponding dozens shipped were 1,407,000 in 1955 to 1,315,000 dozen in 1956 and then to 1,277,000 dozen in 1957. Thus, while forced to sell the industries' production at increasing prices as compared to the low-priced imported ware, there has been a decline in the dozens shipped. It would seem to go without saying that, if the industry does not hare the pieces to make because it cannot compete with the low-cost, low-priced, imported handmade glassware, it is just a matter of time before companies will go out of business, and that is happening right now.
If, under the proposed extension of the act, the President is permitted to reject unanimous and majority opinions of the Tariff Commission, at the rate handmade-glassware companies are going out of business, it appears that, with any rejection of the case to be brought before the Commission, the doom of the industry would appear to be pretty well spelled out within a very few years. Also, as pointed out in Mr. Gustkey's testimony, any application of reductions in tariffs, as proposed, will speed the destruction of the industry at the hands of foreign interests.
I do hope that the above may be further enlightening. The whole handmade industry wishes the committee Godspeed in doing everything possible it can to help this distressed industry. Very truly yours,
R. L. Davis, Secretary.
Comparison of shipments, exports and imports, of handmade pressed and blown
tumblers, stemvoare, and other table, kitchen, and art ware
Senator ANDERSON. Again, I want to say I am just like Senator Kerr; I hope I am in your corner.
Mr. Davis. Well, I hope I have clarified that.
Senator KERR. I want to say the best you have done is to agree to try to clarify it, and I am going to encourage you to really try.
Anything else, Senator?
Mr. STRACKBEIN. Yes, but they have asked me to present their statement for them for the record, and I have done so in the inner office.
Senator KERR. All right. (The statement appears at p. 1195.) Mr. STRACKBEIN. Could I take advantage of this particular point of speaking to this question of dollars versus numbers?
Senator KERR. Sure. Mr. STRACKBEIN. Many of our imports have no quantities, really, to them at all. You take small hardware and things of that kind; what is a dozen pieces of hardware when you have a lot of different sizes and different qualities and even different kinds of tools? So, in the glassware industry, there is also a great mixture in imports, so that to say so many dozens may cover quite a multitude of different sizes, different qualities, and different prices. So, the only real check that you have is on the dollar value of the imports.
Senator KERR. Will you wait right there?
Senator KERR. I am trying as best I could; I could not get the dollars out of either one of these witnesses.
Senator BENNETT. You mean the dollars of domestic production. Senator KERR. No; of imports or domestic.
Senator BENNETT. The dollars of imports are on their statement. It is the dollars of domestic production.
Senator ANDERSON. Here is my problem.
We have an automobile dealer in my hometown who sells both Cadillacs and Chevrolets. I know that they can build a Cadillac up to over $8,000 now in our country, including all the air conditioning and other extras you have-as you know, if you have any Texas friends—and Chevrolets for $3,500. If he sells 100 of each, he would have a total volume of sales. If, the next year, he sells 200 Cadillacs and only 50 Chevrolets, hasn't he got a larger volume of sales than he had before, but the numbers are off?
Mr. STRACKBEIN. Yes.
Senator ANDERSON. That is all we tried to say. In order to understand the problem we have got to know something about numbers.
Mr. STRACKBEIN. Yes.
Senator ANDERSON. And if you can take the total value of imports and translate that back into numbers, into dozens, so we can match it with domestic production, we can begin to find out whether something has moved into the local market, domestic market, and replaced domestic production.
Mr. STRACKBEIN. Yes, sir.
Mr. STRACKBEIN. Well, in the absence of that, you will have to fall back on the values
Senator ANDERSON. You cannot fall back on the values.
They might start to import some very high-priced ware that does not mean a thing.
So, as Senator Bennett pointed out, there may be a change in this business. There was a time when I used to go out to a swimming pool and people would bring glassware out to serve you afternoon tea. But I have plastic ware out there now because I have grandchildren and I do not want the glass to fall and cut their feet. That is a change, is it not?
Mr. STRACKBEIN. But, Senator, the point I am making is that in all the different classifications of our imports there are many, many classifications where quantities are not stated.
Senator KERR. That being true, let me ask you this, Mr. Strackbein. Let's say that is true; if I have been in a business for 50 years, and I knew that the imports were a million dollars' worth
Mr. STRACKBEIN. Yes.
Senator KERR. I believe I could have a pretty fair mental picture of the quantity; wouldn't you?
Mr. STRACKBEIN. I would think so, and I think they—probably the glass industry could supply it. I still question how meaningful it is, for the very reason you mentioned.
Senator KERR. Let's say it is not meaningful at all, sir, but here are a bunch of friends on the committee that want it.
Would you supply it to them or not?
If I had a bunch of fellows trying to help me I would try to give
I appreciate fully the difficulty in getting the numbers because of the different types and different classes and different prices, but it does seem to me that you can give us, a man like yourself, with the access to the different organizations, both the manufacturers and the workers, that you could give us a pretty definite estimate of the number of pieces, I think you will be amazed at the number of the piecesI want to say I am most appreciative of the attitude of the distinguished Senator from Oklahoma and the distinguished Senator from New Mexico, I do not know whether you folks have any glass industry down in your country or not.
Senator KERR. It just happens we do in Oklahoma and we have got a glass factory shut down.
Senator MARTIN. I was not sure whether you did or not.
But I from personal experience know what the importations have done in my hometown where we had a hand-blown factory in existence for 75 years put clear out of business by reason of importations, but it would be awfully hard to just give a definite number of pieces that this Duncan Miller Glass Co. would produce each year but I do believe you could give us a pretty good estimate on it which I believe will be very helpful when we are making up our conclusions.
Mr. STRACKBEIN. I am sure that the industry will do that, endeavor their best to give you their best judgment on the information that they can get.
Senator ANDERSOX. Here is the difficulty: It may not be meaningful to anybody else, but we all have our own habits by which we work.
We have our own yardsticks by which we calculate these things. Mr. STRACKBEIN. That is true.
Senator ANDERSON. I happen to have a little casualty-insurance company, and I know that not every time a man breaks his leg is the cost the same.
One time it is $30, the next time it is $600, and the next time it is $20. But we put them all in our statistical accounts by numbers even though they do not cost the same.
Mr. STRACKBEIN. But, Senator, the ideal statistic is where you have the quantity and the value and you have
Senator ANDERSON. Yes; but in the absence of that, people who have been in the business a long time can make a much more intelligent guess as to what the numbers mean in dozens than those of us who are on the committee and just look at the dollars. Mr. STRACKBEIN. That is quite so.
Senator ANDERSON. The last witness supplied us, and I have gotten them to supply this much, that domestic production was 2,419,000 dozen. It has gone down to as low as 1,782,000 dozen, and up again to about 2 million dozen. That is a significant drop in numbers.
Then he gives us dollars in the importation, and it does not mean a thing unless you relate that to numbers somehow, to know that they are taking your market.
Mr. STRACKBEIN. You are right; there should be a dollar value on these, on the American production.
Senator ANDERSON. Yes. Mr. STRACKBEIN. Then at least you would have a dollar comparison.
Senator ANDERSON. Then we would have the same things to compare. That is right, and that is all I am trying to say.
Mr. STRACKBEIN. I am sure they will get that to you, sir.
Senator ANDERSON. Thank you. If they can do that it will be helpful to us. This is one industry that has been hurt and I think it is too bad it has been hurt and many of us would like to help them.
Senator BENNETT. Senator, may I make an observation.
Senator BENNETT. If foreign importations of hand-blown glass are really replacing domestic production, the price per thousand dozen must be somewhere related or there would be no replacement.
Senator KERR. The Senator is right.
STATEMENT OF MELVILLE STEIN, PRESIDENT, LEEDS &
NORTHRUP CO., PRESENTED BY GEORGE E. BEGGS Mr. BEGGs. Gentlemen, in Mr. Stein's absence due to illness he has asked me to speak for him.
My name is George E. Beggs. I am assistant to the president of the Leeds & Northrup Co.
Senator KERR. Then you are an assistant to Mr. Stein?
Mr. Stein greatly regrets he cannot be here but he has requested that I present his statement.
Senator KERR. Go right ahead.
Mr. STEIN. Our company manufactures scientific instruments for industrial-measurement and automatic-control applications and also for research, teaching, and testing applications.