BICYCLES.
AMERICAN MANUFACTURERS OF BICYCLES PETITION FOR RETENTION OF PRESENT DUTIES.
Washington, D. C., December 15,1908. Hon. Sereno E. Payne,
Chairman Committee on Ways and Means,
House of Representatives.
Sir: We represent the following bicycle manufacturers of the United States: Consolidated Manufacturing Company, Toledo, Ohio; Emblemn Manufacturing Company, Angola, N. Y.; Great Western Manufacturing Company. Laporte, Ind.; Pierce Cycle Company, Buffalo, N. Y.; Pope Manufacturing Company, Hartford, Conn.; also the signers to this brief and by authority given in telegrams and letters herewith attached from Arnold Schwinn & Co., Chicago, 111.; Snyder Manufacturing Company, Little Falls, N. Y.; National Cycle Company, Bay City, Mich.; Tver Johnson Arms and Cycle Company, Fitchburg, Mass.; Miami Cycle Manufacturing Company, Middletown, Ohio; Toledo Metal AVheel Company, Toledo, Ohio; Gendron Wheel Company. Toledo, Ohio; Excelsior Motor and Manufacturing Company, Chicago, 111.
These corporations produce more than 90 per cent of the bicycles manufactured in the United States.
We beg leave to present to your notice the decline in the industry of the manufacturing of foot-propelled bicycles and tricycles and parts thereof in the United States, as shown m Bulletin No. 66, Census of Manufacturers, 1905.
Automobiles and bicycles and tricycles.
While there are no statistics available since, the census of 1905, it is a fact that the number of bicycles manufactured has not increased, nor has there been any advance in the selling prices since that time. ,We beg leave to call your attention to the great decrease in the value of bicycles and bicycle parts exported from the United States since 1897 and to the great increase in exports from England and Germany in the same period.
Practically during these years no bicycles of foreign manufacture have been imported into the United States.
It will be seen, therefore, that the export trade in bicycles and bicycle parts has diminished to an extent that nearly takes it from the list of exports, while during the same periods the export trade of European countries, notably England and Germany, has increased.
Until about 1802 the United States could fairly compete in the sale of bicycles in all the markets of the world with England and Germany, the advantage of improved and labor-saving machinery largely offsetting the extremely low wages paid in European countries as compared with those paid in the United States. But English and German shops are now equipped with the most modern machinery— much of it of American makes—and the competition between Europe and the United States to-day as affecting costs of production is in wages, and this competition in wages applies not only to the labor expended directly on the bicycle but to the costs of materials used and to the expenses in the marketing of the bicycles.
The American manufacturers have tried to meet these conditions and maintain a fair competition, but they have apparently gone as far as they can. Even moderate reduction in the tariff would without question invite shipments from England and Germany to this country, with the result of a further if not total decline in our industry or the other alternative of forcing European wages upon American workmen.
Now, shall we open the doors to the foreign manufacturers or reduce the wages of American workmen to meet this competition?
There are engaged in the manufacture of bicycles and bicycle part5,000 men, and in the retail sale of same about 8.400 more, all of whom are dependent on the bicycle industry for the livelihood of themselves and their families.
The estimated wages paid are 2,500 bicycle factory employees. 2,500 bicycle-parts factory employees, 8,400 bicycle dealers and repair men, total 13,400, at a conservative average of $2 per diem for two hundred and fifty days per annum, makes a distribution in payrolls amounting to $o",700.bOO.
Bicycle manufacturers have no desire for special treatment or unfair rate of tariff, but with the prices on most material and lower wages paid in Europe, as compared with said cost of labor and material in the United States, the present rate of 45 per cent is only fair protection.
We further petition that the present rate of tariff be maintained and that bicycles and tricycles and parts of same be classified as such. Great Western Manufacturing Company. Julius Lrmn, president: The Consolidated Manufacturing Company, W. F. McGuire, manager; Pope Manufacturing Company, George Pope; Pierce Cycle Company.
Exhibit A.
•
Chicago, Ill., December IS, 1008. Pope Manufacturing Company,
Hartford, Conn.
Gentlemen: We just prepared a letter to the Ways and Means Committee at the House of Representatives when your telegram reached us. We have decided to have you represent us at the meeting, and we will telegraph your Col. George Pope, care New Willard Hotel. Washington, I). C., as follows:
"We, Arnold Schwinn & Co., manufacturers of bicycles at Chicago, 111., herewith authorize you to represent us at the meeting of the Committee on Ways and Means at the National House of Representatives at Washington, I). C., on the subject of reduction of duty on bicycles. Please use all your effort to have the interest of the bicycle manufacturer protected. No change in bicycle tariff. We need protection. European manufacturers produce bicycles for less than half; that is my experience while manufacturing bicycles in Germany. From 700 bicycle manufacturers in United States in 1896 12 only are left. We can not compete in foreign countries." Yours, very truly,
Arnold Schwinn & Co.,
Iagnscz Schwinn, President.
Exhibit B.
Little Falls, N. Y., December 1J,, 1.908. George Pope,
New Willard Hotel, Washington, D. C.
Regret our inability to be with you, and authorize you to appear for us and urge that the duties on bicycles and all other manufactured articles ba left as they are or made higher. Competition between American manufacturers keeps the price so low that there is not to-day a living profit. There is practically no foreign market on these goods, ana we must have the American market or go out of business.
H. P. Snyder Manufacturing Co.,
II. P. Snyder, Treasurer.
Exhibit C.
Bay City, Mich., December 12, 1908.
Col. George Pope,
New Willard Hotel, Washington, D. C.
Dear Sir: We regret very much that it will be impossible for u> to be with you Tuesday next, but are glad to know that you are to appear before theWays and Means Committee and will be glad to have you represent us.
Tlii' history of the bicycle business is an open book, and shows conclusively that even under the present tariff American manufacturers have not prospered. There are but few of us left—19 only, we beJieve—and few of those would still be in the business if they could find other lines which would keep their factories busy. Nearly every one of the 19 is now devoting part of his manufacturing capacity to other lines on account of there not being a market for all of the bicycles which he can produce. The world's markets are practically closed to us by either cheaper production abroad on account of cheaper labor or preferential tariffs, as in the case of the English colonies. Reduction in the tariff would be simply an aid to the foreign manufacturer in reaching part of our home markets, would not reduce price to the consumers, as bicycles in America are as cheap as anywhere in the world, and would ultimately force the American manufacturer out of business by compelling him to reduce production below the point where he can live. To-day the productive capacity of American bicycle factories is probably double the actual output. The desire of each manufacturer to increase his output has resulted in the closest kind of competition in the restricted market. If the tariff were reduced, it would without doubt let in additional foreign competition, which would ultimately, necessarily, reduce the number of workers and also their wages in this country.
We have no doubt that your thorough acquaintance with the bicycle trade during the last thirty years will enable you to present the matter to thecommittee in such a manner as to make them understand the conditions as we know them. Yours, truly
National Cycle Manufacturing Co.,
F. C. Finkenstaedt, Secretary.
Exhibit D.
FrrrHBURG. Mass., December 1%, 1908. Col. George Pope.
Pope Manufacturing Company, Hartford, Conn.
Dear Sir: The writer understands that it is your intention to appear before the Ways and Means Committee at Washington in protest against any reduction in the tariff on bicycles, and, if you will, we would like to have you represent us at this hearing.
We believe that the bicycle business can not stand any reduction in tariff. We have been driven out of the Japanese market, where vre had a good trade, and practically from the European market by the Belgian, German, and English machines, on account of the difference in cost of manufacture, the item of labor entering into bicycles to such a great extent that it gives foreign products a great advantage over those of American make.
In continental Europe the people even take pome of the labor to their homes, where the wives and children perform some of it. This saves for themanufacturer much space that would otherwise be required for help, besides heating, lighting, taxes, etc. In Japan the difference in cost is even greater, as Japanese labor is cat still further than that of continental Europe.
In fact, labor and other items place this competition in such shape that if foreign bicycles were to enter the American field to-day such little business as now exists in this line would be swept away by foreign competition.
I hope you will use every effort to impress upon the Ways and Means Committee the fact that any reduction in the tariff on bicycles would be disastrous to the bicycle industry of this country, and also to that of bicycle parts and accessories. Very truly, yours,
Iver Johnson's Arms And Cycle Works.
Fred I. Johnson.
Exhibit E.
Middle-town, Ohio, December 14,1908. George Poi-e.
New Wiflftrd Hotel, Washington, D. C.:
Please represent us at meet'ng. We earnestly hope your effort to prevent reduction of duties on bicycles will be successful. The bicycle business is only now slowly getting on its feet after depression caused by fad passing out. The present profits are very small, and if obliged to meet prices of foreign competitors, with cheap labor, would practically kill the bicycle business in this country.
The Miami Cycle And Manufacturing Company.
Exhibit F.
Toledo, Ohio, December 1£, 1908. Georcje Pope.
WiJlard Hotel, Washington, D. C.:
Enter our most vigorous protest against reducing duties on bicycle*.
The Toledo Metal Wheel Co.
Exhibit G.
Toledo, Ohio, December 12,1908. Geo. Pope,
New Willard Hotel, Washington, D. C.
Dear Sir: We are in receipt of your telegram advising us that the Committee on Ways and Means will hold a hearing on the question of reducing the duty on bicycles next Tuesday.
61318—Tariw—No. 41—08 3
We regret exceedingly that it will not be possible for us to have a representative there at that time, so we authorize you (o speak for us in earnestly protesting against lowering the duty on bicycles. It is a well-known fact that makers of bicycles in this country have not been getting fat at the business of late years, owing to the fact that prices are brought down so uncomfortably close to cost, and it is a wellknown fact that our labor cost is very much greater than in England. Franco, or Germany. Should foreign manufacturers be allowed to bring their bicycles into this country in competition with us, it would simply drive American-made bicycles off the market Foreign makers have of late years been using our improved machinery, and. in addition to this, with their cheap labor, they have been able to take all the export business that American makers formerly enjoj?ed. That is evidence enough that we can not compete with them under our labor cost.
Yours, very truly. Gendron Wheel Co.
Exhibit II.
Ciih'aoo, Iii., December 14, 1908. George Pope.
New WUlard Hotel, Washington, D. (■'.: Unavoidably delayed; can not be with you in person. As our interests are parallel with yours, believe you can present our mutual interests in most able manner. We are absolutely for no reduction in tariff, particularly as this would affect the baby industry of motor cycles in the already heavily involved bicycle business.
Excelsior Motor And Manitactiring Co.,
Fred. C. Bowk.
THE GREAT WESTERN MANUFACTURING COMPANY, LA PORTE, IND., ASKS RETENTION OF DUTY ON BICYCLES.
La Porte, Ind.. December 12, 1908. Hon. Sereno E. Payne,
Chairman Ways and Mean* domniHtee, Washington, D. C.
Mr Dear Sir: Referring to the duty on bicycles, as a manufacturer 1 wish to urge upon you not to remove the duty on finished bicycles. 1 ask that on behalf of ourselves and'the industry of the bicycle manufacturers in the United States.
I speak with knowledge of the prices of English, German, and Belgium bicycles. The price that they are now naming and would name if the duty were removed on finished bicycles would kill the bicycle business and close the manufacturers' doors of bicycles in the United States.
We are manufacturers of Fauber patent one-piece crank hangers that go into bicycles. We sell them throughout the world, but are shut out from selling them in England. Germany, and Belgium on account of the low price there on bicycles. They are selling bicycles to-day for less than our cost of production.
It would be impossible to pay the wages and prices of materials and cost of conducting the business in the United States and compete with the low prices of the German, English, and Belgium bicycles to-day.
Therefore I pray your committee do not remove the duty on bicycles.
The present selling price of bicycles in the United States is very low. There is no combination, no restriction of the trade, or pooling arrangement, but entirely open competition, and that has been strong enough to make the price of bicycles so low that it is only a small profit to the manufacturers at best. The price is so low on bicycles that anyone who wishes one has no objection to the price he can buy a machine for.
Removal of or even reducing the present duty on bicycles can only do more harm than possible good.
Thanking you for your consideration, I am.
Yours, truly,
E. J. Lonn, Pi-exident.
