ACKNOWLEDGEMENT.

Acknowledgement is appreciatively made of the assistance rendered by customs officials in the detailed investigation as to the character and uses of imported cotton yarns. Special compilations were made by the appraisers of the port at Philadelphia, Chicago, Boston, Hartford, Bridgeport, and Providence. New York was the main center of the investigation and we are especially indebted to Special Deputy Appraiser George W. Wolf and to Examiners Otto Fix and Robert Hughes of that port for their cordial cooperation with our working force. Acknowledgement should also be made of the assistance rendered by importers, spinners, and consumers of cotton yarn in furnishing information which was invaluable in rounding out a complete and accurate study.

The Commission wishes to make acknowledgement of the services of Mr. W. A. Graham Clark, special expert, of the staff of the Commission, in the preparation of this report. Mr. Clark was assisted by Mr. Henry Chalmers, special expert, also of the staff of the Commission. The statistical tables were compiled by Miss Blanche C. Howlett.

TARIFF ACT OF OCTOBER 3, 1913.

TEXT OF SCHEDULE I PROVIDING FOR COTTON YARNS AND COTTON THREADS.

250. Cotton thread and carded yarn, warps, or warp yarn, whether on beams or in bundles, skeins, or cops, or in any other form, not combed, bleached, dyed, mercerized, or colored, except spool thread of cotton, crochet, darning and embroidery cottons, hereinafter provided for, shall be subject to the following rates of duty:

Numbers up to and including number nine, 5 per centum ad valorem; exceeding number nine and not exceeding number nineteen, 74 per centum ad valorem; exceeding number nineteen and not exceeding number thirty-nine, 10 per centum ad valorem; exceeding number thirty-nine and not exceeding number forty-nine, 15 per centum ad valorem; exceeding number forty-nine and not exceeding number fiftynine, 17 per centum ad valorem; exceeding number fifty-nine and not exceeding number seventy-nine, 20 per centum ad valorem; exceeding number seventy-nine and not exceeding number ninety-nine, 224 per centum ad valorem; exceeding number ninety-nine, 25 per centum ad valorem. When combed, bleached, dyed, mercerized, or colored, they shall be subject to the following rates of duty: Numbers up to and including number nine, 7 per centum ad valorem; exceeding number nine and not exceeding number nineteen, 10 per centum ad valorem; exceeding number nineteen and not exceeding number thirty-nine, 12 per centum ad valorem; exceeding number thirty-nine and not exceeding number forty-nine, 17 per centum ad valorem; exceeding number forty-nine and not exceeding number fifty-nine, 20 per centum ad valorem; exceeding number fifty-nine and not exceeding number seventynine, 221 per centum ad valorem; exceeding number seventy-nine and not exceeding number ninety-nine, 25 per centum ad valorem; exceeding number ninety-nine, 27 per centum ad valorem. Cotton waste and flocks, manufactured or otherwise advanced in value, cotton card laps, roping, sliver, or roving, 5 per centum ad valorem.

251. Spool thread of cotton, crochet, darning, and embroidery cottons, on spools, reels, or balls, or in skeins, cones, or tubes, or in any other form, 15 per centum ad valorem.

8

INTRODUCTION, SUMMARY, AND CONCLUSIONS.

INTRODUCTION.

The purpose of this report is to set forth the conditions affecting the import of cotton yarns into the United States and to bring together, in a form available for ready reference, such data as are needed in a consideration of the tariff. Cotton sewing thread and yarn put up for retail sale are treated only incidentally to the main subject of cotton yarn for further use in manufacturing.

An important feature of the report is a study of the cotton yarn imports during the fiscal year 1918 as compared with 1914, the last normal prewar year. In view of the lack of precise knowledge in the past as to the character of our cotton yarn imports and the needs which they supply, it was found necessary to make a special investigation of all cotton yarn shipments entered at the various ports of the United States during the two periods mentioned. Much of the information thus obtained has hitherto not been generally known and it affords data directly pertinent for tariff purposes. These crosssections of the import trade, taken in typical years, are set forth in Chapters III and IV. They supplement and furnish a new basis for interpreting the published statistics, presented in Chapter II, in which are discussed the general character and the trend of the import trade over a period of years.

The American export trade in cotton yarn and its rapid expansion during the war, are made the subject of a close analysis, in Chapter V, in order to ascertain the nature of the domestic yarns that are able to meet competition abroad, and the relation of the export to the import trade.

The significant material of the earlier chapters is used in Chapter VI as a foundation for a discussion of the most harmonious and scientific method of adjusting tariff rates when levied on cotton yarn and sewing thread. There are included recommendations as to the form of wording and as to differentials on advanced yarns, such as seem to be advisable and applicable under any general policy that Congress may see fit to adopt.

As an appendix there are added data and discussions that appear necessary to a complete picture of the import trade in the correct perspective.

After a brief discussion of the international trade in cotton yarn and the possible sources of imports there is a comparison of American and foreign import duties on cotton yarn. This comparison is illustrated graphically and an analysis is presented of the various foreign tariff provisions, including differentials on advanced yarns and special treatment of sewing thread and of yarns for retail trade, for their suggestive value in any readjustment that may be undertaken of the American schedules.

Under the heading of "Yarn price data' the main feature is the inclusion of the invoice prices of all imports of 78s cotton yarns during 1914 and 1918.

The report closes with a digest of the leading decisions relating to cotton yarn and sewing thread.

SUMMARY.

The United States consumes more pounds of raw cotton and spins more pounds of cotton yarn than any other country. It produces over 99 per cent of the cotton yarns required for domestic industry, in fact, the import and export trade together do not amount to 1 per cent of the domestic production.

Of the cotton yarns imported into this country, the United Kingdom supplies not only the greater part, about 85 per cent, but also the greater part in each line with the exception of three. Polished yarns and Turkey-red yarns are normally most largely from Germany, and embroidery yarns from Switzerland.

The largest import is of lace yarns for the lace curtain and Levers lace industries. The second largest import is of soft-spun yarns for mercerization and for combination with silk; this includes yarns for knitting, for embroidering, and for interweaving with silk in ribbons, hatbands, and broad silks.

Cotton yarns are used for a great variety of purposes and in tariff discussions this fact is sometimes apparently overlooked and attention centered on weaving yarns, whereas imports are mainly other than weaving yarns. Of the yarns that are imported for weavingthe largest portion is for weaving with silk; some is for weaving with wool and mohair, and only a comparatively small amount enters into the manufacture of cotton cloths, the most of which are specialties such as voile, crêpe, and towels.

Very few yarn imports are directly competitive and most of them are supplemental only, either because of no domestic supply (this applies to prepared yarns for lace and labels, to Turkey-red yarns for towels and labels, and to fine counts in general) or because there is a demand for a kind of yarn not readily obtainable in the United States-this applies particularly to mulespun Egyptian yarns in special counts or plies.

Imports of cotton yarn range from 11s two-ply up to 260s two-ply. A large number of counts and plies are imported but most of them in small quantities. Those imported in appreciable quantities are limited. and may be listed in numerical order as 16s, 30s, 36s, 38s, 39s, 40s, 58s, 59s, 60s, 68s, 70s, 76s, 78s, 97s, 98s, 100s, 120s, and 140s. The main count imported prior to 1914 was 60s. In 1914 the main count was 78s, but considering 59s and 60s as variations of 58s, the last named may be stated to have been the main point of contact. In 1918 the importation of 78s far exceeded all others.

The range from 60s to 79s has always offered the most competition. Before the war the import of yarns coarser than this chief competitive range was larger than the imports of counts finer, but during the war this condition was reversed. The trend toward a larger relative import of fine yarns became very noticeable in 1914 and the war apparently only accentuated this tendency.

In regard to the yarn ranges fixed by the act of 1913, the substitution of 48s for 50s, and of 58s for 60s, has been noticeable in the import trade. But, as 3Ss, 78s, and 98s are normal and usual counts, fixing the tariff divisions at 39s, 79s, and 99s, has had little effect. According to the commercial practice prevailing here and in England a two to three per cent variation is allowable in the yarn count so it has been necessary for foreign spinners to make but few adjustments to heavy up their counts, as 80s for instance would normally pass as 79s and 100s as 99s.

Normally about 60 per cent of the imports were carded and only 40 per cent combed. The war reversed this condition. The change was due not only to the larger proportion of fine counts, but also to special requirements.

Imported yarns are for the most part two-ply unbleached yarns. mulespun in England of Egyptian cotton. The import of yarns made of American upland or other cottons is relatively small. The import of single yarns is relatively small and confined mainly to those of special quality or finish. The import of multiple-ply yarns is negligible. Harness twine is apparently the only cabled yarn imported, and that in small amounts.

The import of yarns other than in the gray (unbleached) state is small. Dyed yarn is imported to a small extent for the towel and the label industries because fast yarns of the required color are, or have been, unobtainable locally; and some dyed yarns are imported for the polished yarn industry, for hosiery, for embroidery, and for weaving with silk. Imports of bleached yarns are very small; these are normally for use in the embroidery, hosiery, or polished yarn industries.

About 60 per cent of the yarns imported have normally been subjected to special finishing processes, such as gassing, preparing,