Evening star., 1901-04-09
THE TARIFFS EFFECT
Causes Foreign Factories to Be
Brought Here. .-.-
TESTIMONY OF LYMAN R. HOPKINS
Views Given Before the Industrial
Commission.
THREADMAKING INDUSTRY

Lyman r. Hopkins, president of the
American Thread Company. was today be-
fore the Industrial commission. A paper
had been prepared by the witness and was
read before he was questioned. He declared
himself firm believer In combination and
said that low prices were necessary to keep
down competition. High prices were sure to
bring about competition. He did not antici-
pate any unfair treatment of workmen by
big combinations. for labor had learned to
combine and to enforce good treatment. The
American Thread Company had had no
difficulty with its employees. He was not
opposed to strikes. but he doubted whether
strikes are beneficial. He considered pro-
Ionged strike as always disadvantage to
labor. 1t was little likely that an increased
wage when obtained would offset the great
loss to the men of long strike. He did not
believe in compulsory arbitration. In a way
the social condition of labor in his company
had improved in the last Sfty years so far
as general material comfort was concerned.
Although improved machinery had been in
trOduced in their mills, yet the number of
employees had constantly been increasing.
The immediate cause of the combination
forming the American Thread Company
was the ruinous competitor among the
separate mills which had wiped out profit
in the running of many of them. They
had saved enough by economies of the
combination to bring them on a paying
basis, They had saved rent by bringing
the separate establishments together For
merly each concern had to carry samples
of hundreds of different kinds of stock,
but under the combination each mill pro-
duces a speciality, so that the stock they
all have to carry is greatly reduced. The
output of thread by the combination, he
said, was greatly increased after it was
formed three years ago, though now it is
just about what it averaged previously.
Two or three small mills in out of the
way places had been closed down, but the
capacity of the combination now is about
what it was previously. When the price
of raw cotton went up the price of thread
had been increased in about the same
proportion Previous to this Increase in
the price of raw material no increase in
the price of thread was made, though in a
few grades the prices were lowered.
The American Thread Company now sup
plies about one-third of the sewing thread
used in this country, so that there is
plenty of competition. 1t was this COM
petition that caused the reduction of the
combinations price on low grade goods.
Advance in Wages.
Since the organization of the American
Thread Company. he testified. the wages
of day labor had gone up. There had been
reductions In any kinds of wages. The
Colts. foreign firm. manufactured their
been forced to do this because of the tariff
Wages were lower abroad and had 1t not
been for the tariff, there would have been
an advantage in manufacturing abroad for
the American market.
Tariff on Thread.
Mr.. Hopkins thought the tariff is just
about right on thread, and if 1t We're re-
moved he satisfied the thread used In
this country would be made in England.
because the wages are about one-half there
that they are here, and the English firms
can get the cotton just as cheapiy as in
this country. In his mills the female work.
ers and paid from 81 to $50 a day, while
the young men get from S1.50 to 81 a day.
A great many of the hands IN the thread
mills own their own homes.
The Company's Tenements.
The company has tenement houses where
their chief mills are, but these tenements
were built fifty years ago. when the COM
panies had to provide tenements and they
would be glad to sell them. They had
been trying to sell the tenements for five
years, but they could not do 1t. These six
or eight-room tenements rent for s. a
month. and the company supplies the ten
ants with coal free Of charge.
The witness said that a reduction Of the
tarin would first be felt by the employees I'm
the thread mills All the European thread
concerns that have any considerable bus
iness in this country make their thread
here.
stock Held in England.
Mr.. Hopkins said the American Thread
Company had been consolidated by Mr.
Dos Passos. the New York lawyer and the
stock of the combination was held in Eng
land. the common stock being largely In
the hands Of the owners of the English
Sewing Cotton Company. The bonds are
held in this country. The consolidation was
made by Mr.. Dos Passos, who got options
Wl,a1
these owners were paid money or bonds or
both. He didn't know how Mr.. Dos Passos
had been paid for his work. but he presum-
ed It was from the English Sewing Cotton
Company. The Colts were interested as
owners in the stock Of the combination. but
competition between the companies had
continued, though they did not fight as
hard as they had done before the change
Of stock ownership into English hands. The
American Thread Company and the Colts
Company. the latter including the Clarks.
produce about two-thirds of the thread sold
in this country While these companies
are controlled under common ownership
they ali compete, and they undersell one
another. He did not think there could be
monopoly to increase prices for the rea-
son that a man could set up as a man;'fac-
turer Of thread with capital of $4,000.
Mr.. Hopkins said one dividend Of 10 per
cent on the common stock Of the American
Thread Company had been declared for the
first year. besides per cent on the pre-
ferred and per cent on the bonds
In concluding his testimony he said that
great many persons think they pay as
much for their thread now as In former
years While Ii was true the price of the
thread ordinarily used had remained at 5
cents, yet the thread formerly sold for
cents was three-cord thread which could
now be bought for cents.
Lieut.. Smiths Sentence DisappFoved.
The War Department Is informed that
First Lieut. Jacob c. Smith. 4Sth YoIun-