LEATHER INDUSTRY The leather industry of Massachusetts accounts for about 25 percent of the total output of leather in the United States. In 1948, the number of workers engaged in the production of leather in Massachusetts was considerably smaller than the number employed in 1947. Comparable data on employment are available only for the last 5 months of 1947 and 1948. The indexes of employment in the leather industry of Massachusetts in these months are given in the following table: Index of employment in the leather industry of Massachusetts, August-September 1947 and August-September 1948 The value of United States imports of leather increased only slightly in 1948 compared with imports in 1947, indicating that factors other than increased imports were the principal causes of unemployment in the leather industry in 1948. The two most important factors contributing to the decline in employment were the marked decrease in United States exports of leather and the smaller United States production of leather products in 1948 than in 1947. The volume of exports of sole and belting leather showed a decline in 1948 compared with 1947 of about 70 percent; the volume of exports of all other classes of leather combined declined by about 27 percent. Exports of upper leather, especially important to the leather industry of Massachusetts, decreased in the same period by about 30 percent. The table below gives the foreign value of United States imports of leather in 1947 and 1948. Leather: United States imports for consumption, by months, 1947 and 1948 A substantial part of the United States jewelry industry is concentrated in Massachusetts. Although more costume jewelry than precious-metal jewelry is produced there, both categories are important in the total output of jewelry in that State. Output of jewelry was high in the United States immediately after the war, when jewelry was especially favored by style trends and by availability of the product. By 1947, however, output of jewelry had declined to a much lower level. United States imports of jewelry and related articles in the years 1945 throughr 1948 were as follows: Year: 19451946__ Foreign value | Year: 147. Foreign value $1,926, 000 3, 103, 000 The increase in imports from 1947 to 1948 occurred in jewelry and related articles other than those made from precious metals, i. e., in the lower value brackets. In the manufacture of such jewelry and related articles a decrease in employment has recently occurred; but official statistics on the extent of the decrease are not available, either for Massachusetts or for the United States as a whole. Employment data are available for the industries making precious-metal jewelery and jewlery's findings. For this category of jewelry, however, employment has been fairly constant and imports have shown a decline in 1948 as compared with 1947. The following table shows United States imports of precious-metal jewelry and parts and the number of employees engaged in the making of such jewelry, by months, for 1947 and 1948. United States imports of precious-metal jewelry and parts, and estimated number of production workers in the United States engaged in making precious-metal jewelry and jewelers' findings by months, 1947 and 19481 Source: Imports, official statistics of the U. S. Department of Commerce; employment, official statistics of the U. S. Bureau of Labor Statistics. WOOL COMBING Wool tops is the principal product of the wool-combing industry. In the United States wool tops which are used in making worsted yarns are combed by integrated mills for their own use or for sale and by commission combers who sell their output to worsted yarn spinning mills. Massachusetts has about 43 percent of the combs used in producing wool tops in this country and is the principal producing State. United States production of wool tops amounted to 203,000,000 pounds in 1939. Of this amount 56 percent was produced by integrated mills and 44 percent was processed by commission combers. In the first 10 months of 1948 domestic production amounted to 263,000,000 pounds, an amount which was probably somewhat larger than the production for the corresponding period of 1947. Until 1948, United States imports of wool tops were negligible and this country was on an export basis. In 1947 United States exports amounted to 7.1 million pounds, valued at 9.3 million dollars, while imports into the United States amounted to only 264,000 pounds, valued at $283,000. In 1948, however, the situation was reversed; exports declined to only 262,000 pounds, valued at $334,000, and imports rose to more than 3.9 million pounds, valued at 5.7 million dollars. The following table shows imports of wool tops into the United States, by months, for 1947 and 1948. Data on employment in the domestic wool-top industry are not available, but data on employment in the woolen and worsted industry as a whole indicate that there has been an increasing number of persons laid off, especially in the last 4 months of the year. In the latter months of 1948 production of wool tops also declined; in the first 6 months of the year production was fairly constant, about 6.6 million pounds per week, but by September and October it had dropped to 5.6 and 5.1 million pounds per week, respectively. The decrease in exports and the increase in imports of wool tops have also been factors which have contributed to the unemployment situation in this industry. Tops of wool and other hair: United States imports for consumption, by months, The most important textiles produced in Massachusetts are woolens and worsteds, and cotton cloth. About 30 percent of the total spindles and looms in the United States woolen and worsted industry and 11 percent of the spindles and looms in the cotton goods industry are located in Massachusetts. The following two tables show the imports and employment in the woolens and worsted industry of the United States by months for 1947 and 1948, and data on employment, imports, and exports of cotton cloth for the same periods. United States imports of woolen and worsted fabrics increased from 2,489,000 pounds in 1947 to 4,708,000 pounds in 1948 while exports of such fabrics decreased from 17,297,000 pounds in 1947 to 5,391,000 pounds in 1948. Imports of cotton cloth increased from 15,950,000 square yards in 1947 to 31,755,000 square yards in 1948 while exports of cotton cloth declined from 1,470,462,000 square yards in 1947 to 939,622,000 square yards in 1948. The decline in exports of woolen and worsted fabrics and of cotton fabrics together with the increase in imports contributed to the increased unemployment reported by that industry in the last few months of 1948; but other factors, such as the decline in consumption, also contributed. Woolens and worsteds: Imports for consumption and employment in the United States, by months, 1947 and 1948 NOTE.-Exports of woolens and worsteds were valued at $39,353,000 in 1947 and at $12,799,000 in 1948. Source: Employment, Bureau of Labor; imports, U. S. Department of Commerce. Cotton cloth: Employment in cotton manufacturing, except small wares, and imports and exports of cotton cloth, by months, 1947 and 19481 Source: Employment, U. S. Department of Labor. Imports and exports, U. S. Department of Commerce. WOOL-FELT HATS Wool-felt hat bodies, from which wool-felt hats are made, are produced in the United States in factories located principally in Massachusetts and Pennsylvania. Massachusetts produces approximately 25 percent of the total United States production. Average annual production of wool-felt hat bodies in this country in the 8-year period 1940–47 amounted to 3,477,000 dozen of which 80 percent were for women and 20 percent for men. Mainly because of the "hatless" habit, total production in the first 9 months of 1948 fell to 1,719,000 dozen compared with 2,220,000 dozen in the corresponding period of 1947, a decline of 23 percent. The total number of wage earners employed in the wool-felt hat industry in this country was 4,421 in 1939; 4,600 in 1941; 3,600 in 1945; and 1,850 in 1948. United States imports of wool-felt hat bodies are virtually all for use in making hats for women and children. Prior to World War II imports were substantial. Italy and Japan were the principal suppliers. Imports since 1939 have been negligible and therefore could not have significantly affected employment. Of the total United States consumption since 1939, about 98 percent was supplied by the domestic industry. WALTHAM WATCH CO. In the last decade the Waltham Watch Co., located in Waltham, Mass., has been the third largest producer of jeweled watches in the United States and has stood fourth in the value of sales. There are three other jeweled-watch producers in this country, Elgin, Bulova, and Hamilton. The Waltham company's secondary product has been speedometers which accounted for about 20 percent of the company's total sales in 1947. The city of Waltham has a population of about 40,000; the Waltham Watch Co. is believed to be the largest single industry in that city and in 1947 employed about 2,500 persons. From the 1920's through 1948 the Waltham Co. has frequently reported annual deficits and has repeatedly waived dividends. No dividends have been paid by the company since 1937. With net sales of $11,200,000 in 1947 the company had outstanding debts of $3,900,000. The company is now in the hands of receivers and reorganization and refinancing calls for loans totaling $9,000,000; $5,500,000 from the Reconstruction Finance Corporation, $3,000,000 from stockholders, employees, and Waltham merchants, and $500,000 from Boston banks. The CHAIRMAN. I believe Mr. Swingle is to precede Mr. Ogg, by mutual agreement. Mr. Swingle, you may proceed with your statement. STATEMENT OF WILLIAM S. SWINGLE, EXECUTIVE VICE PRESIDENT, NATIONAL FOREIGN TRADE COUNCIL, INC., NEW YORK, N. Y. Mr. SWINGLE. Mr. Chairman and gentlemen of the committee, my name is William S. Swingle. I am executive vice president of the National Foreign Trade Council, Inc. The council comprises in its membership manufacturers, merchants, exporters and importers, rail, sea, and air transportation interests, bankers, insurance underwriters, and others concerned in the promotion and expansion of the Nation's foreign commerce. The council wishes to place itself on record in support of the bill passed by the House of Representatives, H. R. 1211, for revision and extension of the Trade Agreements Act. Since its inception in 1914, the council has supported the principle of an expanded world trade through reciprocal reductions of tariffs and other barriers to trade. It vigorously championed the Trade Agreements Act of 1934 and strongly supported each successive renewal of the act. At the time of renewal in June 1948, the council advocated a 3-year extension of the act substantially in the form in which it had been originally enacted in 1934. On that occasion I personally appeared and presented a statement before your committee. The council wishes briefly to reiterate the position which it has taken on many occasions in the past; namely, that the trade-agreements program is vital to the economic well-being both of the United States and of the world as a whole. In the opinion of the council, the approach of the United States to the problem of world trade must be guided by two overriding considerations. The first is that the world economy requires the expansion and maintenance of interna |