STATEMENT OF GEORGE DOUGHERTY, REPRESENTING NATIONAL ASSOCIATION OF MANUFACTURERS OF PRESSED AND BLOWN GLASSWARE, PITTSBURGH, PA.

Mr. DOUGHERTY. I hope I will be able to contribute some brevity to this hearing insofar as my own statement is concerned.

My name is George Doughterty. I represent the National Association of Manufacturers of Pressed and Blown Glassware with headquarters in Pittsburgh, Pa. Our manufacturers give employment to the great majority of the members of the American Flint Glass Workers' Union of North America, an organization with a membership of 22,000 or more. Our agreements with the skilled workmen have been maintained since 1887 and with the semi-skilled employees since 1936 and 1937.

I might explain that some of our members are members of Mr. Dillingham's American Glassware Association, but our association comprises the employers of the union glass workers. That is the difference. So they appear here chiefly on subjects affecting the labor angle of this question.

We wish to record our request that no extension be made of the Trade Agreement Act and that the plan under which it is now administered be discontinued.

The experience of our industry with the trade-agreement program up to now is that under it only reductions have taken place in the rates of duty on imported glassware. We are therefore here to express the opposition of our employers and their employees to the extension of the Trade Agreements Act for another period.

We are not opposed to the reciprocal theory in our commercial relationships with other countries, but we hold that all agreements we make should be on a sounder basis and provide fairer treatment to our American industries and workers than those now in effect. We believe that a nonpartisan board or committee should confine its efforts to developing all the scientific, economic facts, with liberal consideration for the welfare of American workers involved; and the recommendations of such a board should be the basis of the agreements; which, in turn, should be bilateral and subject to Senate approval.

Since the record of the trade agreement policy to date reveals it as a general plan for reducing rates of duty with few, if any, increases being made, the employers and employees in the glassware industry are justified in the fear they have for the survival of certain branches glassware manufacture. We refer, chiefly, to those plants making glassware by hand.

In these factories the cost of labor alone has risen to the point where it is now 65 to 70 percent of the total cost. This unusually high cost factor has been built up by the cooperation of our industry in following the theories and laws on wages and hour as promoted

by the present administration since 1933. The changes in hours and wages since that year have been as follows:

In enumerating the foregoing increases in wages we do not mention the increased cost involved in paying 50 percent premium on regular rates for time worked in excess of 42 hours in a week, and in some cases the hours worked over 40 in a week.

In connection with this matter of 50 percent for overtime, we would point out the loss sustained by the employer who, for overtime, pays 50 cents premium on labor costs which already constitute 70 percent of his total cost. When paying the increase for overtime, he has raised the percentage to 105 percent or normal cost.

Our industry does not come here to complain about its wages and hours, but we are here to oppose the continuation of a foreign trade policy which ignores the importance of those wages and hours in relation to domestic cost and the importation of foreign glassware made under inferior wage and living standards. A policy which on one hand, and then on the other, deliberately aids and assist foreign producers to supply a large part of our American market (by failure to provide adequate protection for those improved wage and hour standards) is already causing distress by unemployment, disruption of the hand-blown branch of the industry and destruction of the very standards it seeks to improve.

Employees who have expected to realize better living conditions through higher standards of employment have been unable to continue in regular and steady work. Factories failing to compete with the prices quoted in the American market by foreign producers have closed; others have reduced wages; some workers have left their union and others have raised funds by using their savings, mortgaging their homes and pledging the credit they could command to join in cooperative enterprises which contribute further to the general demoralization of industrial and commercial conditions.

In connection with these cooperative 'efforts in glassware manufacturing on the part of the workmen, we call your attention to the illustrated article appearing on page 51 of the February 1940 issue of the trade journal, the Glass Industry, which gives its report of the conditions responsible for the cooperative factories and the struggle they have made to eke out an existence in competition with foreignmade glassware.

To illustrate the extent of the sacrifices made by these cooperatives under the pressure of foreign competition, we submit exhibit labeled Sample No. 1, which is a staple shape of hand-blown glass goblet used in hotels, clubs, restaurants, and so forth. The cost of union labor in this goblet is 87 cents per dozen pieces, nothing being included for the many other items which go to make up the total factory cost of $1.25.

This goblet, and similar ones, are reported as being sold in the market by the cooperatives for 75 cents per dozen pieces complete, including the shipping container, the value of which is 10 cents per dozen pieces (including packing material and the cost of packing labor).

Hand-made glassware has been imported for many years preceding the advent of the Trade Agreements Act, and American producers have always had difficulty in competing with it. Today, these difficulties have been increased by higher wages, and the reduction of working hours we have mentioned in this statement, and the failure of the negotiators of the trade agreements to recognize

(a) That the accurate comparison of imports with domestic production should be dozens or pieces brought in, which would show the number of American productive man-hours displaced. Foreign factory values in terms of dollars do not make for accurate comparison when foreign wages are but a fraction of the rates of those paid in America.

(b) That in the effort to maintain American wage and living standards, our employers and employees are entitled to a greater measure of protection than now applies to imported hand-made glassware under the prevailing schedule.

We are interested in changing the present plan of formulating trade agreements to one that will be more responsive to the important interests of American production and employment, and to this end. we are petitioning the Senate of the United States to vote unfavorably on the bill proposed to extend the Trade Agreements Act for another period.

The CHAIRMAN. Thank you very much, Mr. Dougherty.

In connection with the testimony of those representing the glass industry, I desire to insert in the record a telegram addressed to the clerk of the committee by Mr. Harry H. Cook, international first vice president, American Flint Glass Workers' Union of North America, Toledo, Ohio.

Mr. F. M. JOHNSON,

TOLEDO, OHIO, March 1, 1940.

Clerk, Committee on Finance, Senate Office Building, Washington, D. C. It being utterly impossible for us to appear before the honorable committee now conducting hearings on the extension of the Reciprocal Trade Agreement Act to orally present for the American Flint Glass Workers' Union of North America, speaking for the more than 35,000 workers in the flint-glass industry, the serious effects of glassware manufactured in foreign countries under cheap labor conditions, being imported to our shores before and since the negotiation of trade treaties, we feel compelled to vigorously protest against the continuation of the Reciprocal Trade Agreement Act beyond its expiration date, June 12, 1940. The serious effects of importation have been repeatedly stated in brief filed and otherwise in the past by the American Flint Glass Workers' Union, hopeful, always of securing adequate protection for our industry and the employment opportunities of the workers.

We are now confronted seriously with a 10 to 25 percent wage reduction, demanded by one of our large factories because of conditions created largely by importation of glassware in competitive lines under reciprocal trade agreements. To submit to this reduction means the complete disruption of this particular branch of the glass industry, namely, the thin-blown hand-made glassware branch. To resist it means a serious strike with loss of employment and tremendous financial loss. There are other similar aspects.

What this glass industry, one of the oldest in the country needs, is more security and encouragement and not to be constantly harassed by the prospect of downward revision in tariff rates under trade agreements with foreign countries that have already demoralized the glassware markets and destroyed the employment

opportunities of workmen who have lived and hoped to gain a livelihood in the flint-glass industry.

The administering of the Trade Agreement Act has already been marked by a series of reductions in import rates. The direct effect of this policy is to take from the American worker a greater part of his home market and turn it over to foreign producers who are working under lower wage and living standards. The workers look forward to better wages and living standards and any improvement in wages and hours for the American glass workers is of no avail if the doors of his home market are opened widely to foreigners by means of lower tariff rates. It represents virtually a reduction in wages.

We speak with regard to the hand-made glassware industry and if tariff rates are not raised to a higher level, then it naturally must follow that our present standards are lowered.

For the foregoing reasons, which are only a few of the many and with the hope of protecting our industry and our employment, we most emphatically oppose and protest the extension of the trade-agreements program in its present form and ask that all of the trade agreements be ratified by the Senate before they are put into actual operation. HARRY H. Cook,

International First Vice President, American Flint Glass Workers' Union of North America, Toledo, Ohio. The CHAIRMAN. Is Mr. A. H. W. Stimson of Northampton, Mass., in the audience?

(No response.)

(Subsequently Mr. Stimson submitted the following statement, which was ordered printed in the record.)

CHAIRMAN, Committee on FINANCE,

United States Senate, Washington, D. C.

MARCH 2, 1940.

SIR: In compliance with your wish to avoid as much as possible duplications of previous testimony, I will submit only a few additional figures and statements that seem important.

As most important, I wish to be allowed to correct the transcribed version of my answer to Mr. McCormick's first question on page 1032 of the House hearings. In this answer, as transcribed, they have hog-tied the wrong party. I have never yet been hog-tied, not even to the Republican regime. With reference to Mr. McCormick's question, "What is Mr. Cullman's object in appearing down here?", evidently I did not get the question, as the answer should have been, "He is not here to my knowledge." Apparently I thought he asked me "What 'was' his object?", for I answered that in 1935 he was opposed to any reduction in tariff on the Sumatra Wrapper from the Netherlands. The Cullman Bros., Inc., were affiliated with the Shade Growers Association. These growers produced the nearest as a substitute to the Sumatra grown in this country. A delegation of 16 farmers appeared in Washington and testified to the effect that I was in Washington unauthorized, and in my own personal interests. These men were the ones who were so hog-tied financially that they could not speak their own minds. The office where they appeared had a copy of a resolution passed by a unanimous vote of the board of directors of the Connecticut Valley Broadleaf and Havana Seed Tobacco Growers, Inc., granting me the authority; therefore, their testimony had little effect on the final results.

Again, on page 1006, Mr. Robertson asked, "But you mean you are gaining on all fronts?" My answer, "Yes, sir; and we also know through the facilities of present communication, in spite of the propaganda in the farm magazines and in the press, that this program has greatly benefited, not only your section, but Kentucky as well, through an agreement with France, whereby she agreed to take over $3,000,000 worth of that type of tobacco, and that has very much strengthened the prices of Kentucky tobacco." It says in the transcript that "Wallace" agreed; "France" and "Wallace" do not sound very much alike to me. There must be something radically wrong with me as a witness and I hardly agreed that there should be no future duplications.

Again, on page 1013, at the top, J. W. Alsop was elected president and Fred B. Griffin was elected manager at salaries of $30,000 each and if their salaries had been $100,000 each, instead of $30,000, the additional cost to me on each 100 pounds of tobacco would have been about one-tenth of 1 cent, due to the enormous amount of tobacco handled in our association. Fred Griffin and J. W. Alsop were in no way responsible for the destruction of our association. Imme

diately after the collapse, 18 farmers went to Alsop's office. I was one of them and we formed a new marketing combine with J. W. Alsop at the head. Each of them were given 10 contracts to be signed by other farmers and Alsop is still packing and selling tobacco for a sizeable number of farmers. As late as 1936, he paid my hail insurance and furnished me with some fertilizer, $1,000 at 6 percent interest and in 1937, $3,300 at 5 percent, both times with no note or mortgage. J. W. Alsop is very highly esteemed by all farmers and as far as I have any knowledge, he has never been active in any movement detrimental to our best interests. Fred B. Griffin, up to 1933, held our respect. Sometime previous to that date, he became affiliated with the Shade people and other interests. The people who wrecked our association were many combined forces, manufacturers, dealers, and packers, and all of those interested in destroying cooperative-marketing associations so that they can keep the farmer at their mercy. These same forces who are now active in trying to destroy the Trade Agreements Act, are the same who are trying to destroy the confidence of the American farmer in Henry A. Wallace, the best and ablest Secretary of Agriculture that this Nation has ever had. They are the same people who are trying to discredit the State Department, the Tariff Commission, Committee on Reciprocity Information and all who are working for and have succeeded in consummating trade agreements, which have in every instance given us the best of the bargain. We, the rank and file of the people of New England, are more at the mercy of this element, than any section of equal importance in the United States. As the record now stands, 22 Republicans, and 1 Democrat out of 29 Congressmen, and a possible 2 Democrats out of 12 Senators, or a total of 8 out of 41, are recorded in favor of this resolution.

May I be permitted to enter in the records part of a news item, dated January 22, 1940, "The remarks of A. H. W. Stimson of Pine Grove concerning the opposition of the National Grange leader to the reciprocal-trade-agreement program made last week before the House Ways and Means Committee in connection with tobacco agreements, met with criticism of local Grangers * In the Easthampton Grange 30 of the 250 members are farmers or live on farms. Mr. Stimson was at one time a member of Easthampton Grange," So you can see this could mean 30 to 220 in favor of Tabor and against the farmer. I would like at this time to enter into the records a call by the Franklin County Farm Bureau, for a meeting to be held in Whately Town Hall. This meeting was held last Monday night. The hall was packed with farmers from 5 or 6 counties, mostly tobacco men. Five county agents were heard, as well as six county Farm Bureau presidents and State President Jordan, also Howard Russell, secretary of the State Farm Bureau. All of the speakers from the president down had only the kindest of words and expressions of praise for the great ability and zeal of their national president, Mr. O'Neal, and toward the end of the meeting, I gave them a splendid opportunity to voice disapproval of my stand on this resolution. I received only applause; not one voice was raised even in mild criticism and again before the meeting closed, I advised them to pay their 1940 dues, and they were still paying dues 20 minutes after the meeting closed. I had 2 men try to count Congressman Treadway's constituents and they figured there were at least 100 farmers from his district.

May I enter this individual income record of 1939?

In the House Hearing I was questioned about the cream coming into the United States from Canada. I found after going home that milk producers whom I was able to contact, feel as I do and were somewhat better informed relative to the imports of cream. Under the second trade agreement with Canada, the duty was reduced from 56.6 cents per gallon to 28.3 cents. In 1939 there were imports of 2,967,000 gallons and in 1938, 5,000 gallons; and in 1939, 2,000; while Boston alone consumed about 6,000,000 gallons in 1939. There was more cream wasted in removing milk and cream caps in Massachusetts alone than was shipped in from Canada.

[From the Springfield Union, January 28, 1940]

INDIVIDUAL INCOME UP $3,412,000,000--SECRETARY HOPKINS REPORTS 1939 TOTAL AS $69,683,000,000, MUCH OF THE GAIN COMING AT YEAR END WASHINGTON, January 27-(A. P.).—Secretary Hopkins announced today that income payments to individuals last year totaled $69,683,000,000, a gain of $3,412,000,000 over 1938.

This gain was accounted for largely by a 5-percent boost in salaries and wages to a total of $43,783,000,000, the commerce chief reported. Dividends and in