_Reference to files._--The basic documents in connection with the
investigation on men's sewed straw hats are in the files of the Tariff
Commission and are available to the President. They include the
transcripts of the public hearings and the original cost schedules and
other data. These include confidential data, the disclosure of which is
forbidden by section 708 of the revenue act of 1916:
SEC. 708. It shall be unlawful for any member of the United
States Tariff Commission, or for any employee, agent, or clerk of
said commission, or any other officer or employee of the United
States, to divulge, or to make known in any manner whatever not
provided for by law, to any person, the trade secrets or processes
of any person, firm, copartnership, corporation, or association
embraced in any examination or investigation conducted by said
commission, or by order of said commission, or by order of any
member thereof. * * *
_Rates of duty:_
Act of 1922--Not blocked or trimmed } 60 per cent. } Par. 1406.
Blocked or trimmed } }
Act of 1913--Not blocked or trimmed } 25 per cent. } Par. 335.
Blocked or trimmed } 40 per cent. }
Act of 1909--Not trimmed } 35 per cent. } Par. 422.
Trimmed } 50 per cent. }
_History of the investigation._--On May 29, 1924, the commission ordered
an investigation of men's sewed straw hats for the purposes of section
315 of Title III of the tariff act of 1922, and on the same date ordered
a preliminary hearing for June 12, 1924.
An application was received from the National Association of Men's Straw
Hat Manufacturers of America requesting an investigation looking toward
an increase in the rate of duty on men's sewed straw hats, now dutiable
at 60 per cent ad valorem under paragraph 1406 of the tariff act of 1922.
The domestic field work was carried on during the period August to
October, 1924, and the foreign work in Italy and England during the
period October, 1924, to February, 1925. After due notice, as prescribed
by law, public hearings were held in the offices of the commission on
June 12, 1924, and on May 4, 1925. The latter hearing was continued on
May 14, 15, and 16, 1925. Oral argument was waived and the date for
filing briefs was set for June 6, 1925.
_Scope of the investigation._--Costs of production were obtained for
hats sold in the straw hat season of 1924 by companies whose fiscal
years ended at or about June 30, 1924. This period was the latest for
which cost data could be obtained at the time the investigation was
made.
Domestic costs were obtained from 19 concerns in Maryland, New York,
Connecticut, and Massachusetts. The total production of these concerns
amounted to 718,265 dozen hats. Of this number, 553,253 dozen were men's
sewed straw hats. The 19 concerns produce approximately 85 per cent of
the men's sewed straw hats in the United States and include makers of
cheap, medium, and high-priced hats. They include nonmembers as well as
members of the national association.
Costs were obtained in Italy from five concerns and in England from
three concerns exporting men's sewed straw hats to the United States.
Both domestic and foreign straw hat factories are characterized by lack
of standardization in production. Variations exist in the quality of
the hats manufactured by different establishments, because of variations
in the type and quality of the braid, in the quality of the trimming
materials, such as leather sweat and silk bands, and in the amount
of hand labor employed in the finishing processes. Because of these
variations, it was considered inadvisable to compare the average costs
of production of all hats of the domestic concerns with the average of
all foreign hats. Evidence submitted at the preliminary hearing and data
in the possession of the commission indicated that competition between
domestic and foreign straw hats centered chiefly on three types, split
sennits of 13/15 millimeter braid, improved sennits of 16/18 millimeter
braid, and flatfoot sennits of 16/18 millimeter braid. The commission's
cost comparisons were therefore confined to hats of these
specifications.