Evening star., 1932-10-19
RAG RUG INDUSTRY
HELD WIPED OUT
Japan Charged With Dumping
Into U. S. as Hearings
Open.

Testimony that the rag rug industry
grass and fiber rug industry seriously
given today before Commissioner of
Customs F. X. A. Eble.
Manufacturers said Japan was dump
ing its products into this country. The
hearing was confined to showing the
American industry had been injured
Under the anti-dumping law it is neces-
sary to show that products dumped are
sold at less than cost, or less than in
home market, and that industry here
has Suffered.
william H. Redmond, president OF
the Crex Carpet Co. of st. Paul, testi-
fed grass rugs which cost his company
$500 were sold by the japanese to the
trade in this country for $3.50. He
said the American workers received SO
to $3.50 a day while the japanese were
paid Is cents to 26 cents day.
Employees Cut.
o. r. Arneson Of the Bigelow Sanford
Garrett CO. Of New York, testified the
companys employees had been cut rs
per cent In number through the i'm
portAtions Of cheap rugs from Japan,
France, Belgium and Italy.
All the witnesses testified that large
numbers of American workmen had
lost employment through importation
Of the cheaper rugs.
Roy Cleeland of Philadelphia, repre-
senting Robert Cleeland & Sons, man
ufacturers of rag rugs, testified that
where there had been lat such facto-
ries, there were now only four or five
and that the industry had almost been
wiped out by japanese competition.
The hearing was the opening of q
series which will be conducted by Com
missioner Eble. Tomorrow steel inter
estS, headed by Robert P. Lamont, for
mer Secretary of Commerce, will COM
plain of dumping of steel. while the next
day the hearings will be on incandes-
cent lamps, and on Saturday on manga
neSe ore.
Next week complaints of leather man.
ufacturers, porcelain and china and
canned seafood and matches. will be
heard.
Most of the 60 complaints against
dumping have been filed in the past six
months. This Is a greater number
than has ever been filed in so short a
period in the history of the Treasury
Department
The annual average number OF COM
plants filed during the five-year period
from 1925 to 1929. inclusive was les;
than Is. and in few instances did the
Treasury during that period make any
findings of dumping Most Of the in
vestigations showed finding Of dump
ing under the present tariff law was not
justified.
Complain About Rugs.
Todays first hearing concerned al.
legged dumping of grass and rag rugs
principally from Japan.
The rag rug industry here u year!
ago employed $4,000 men and women
according to Commissioner of Customs
F. X. A. Eble Today it has less thar
1000 actually working, while the Jap
anese have increased their importation!
| Of rag rugs into this country to the ex'
clusion of all other importing countries
Mr.. Eble added Many local factorie!
here have been closed for a year o.
more on account of importations from
Japan, he said.
The other hearings, scheduled II
order, are as follows: Thursday. October
20, 10 am, dumping of STEEL Friday
ll:l5 am, dumping of incandescen
lamps from Japan; Saturday, 10 am.
| dumping Of manganese ore; Monday, II
am, dumping OF call leaLner uppeIS
Monday. q pm. dumping Of porcelain
china; Tuesday. 10 am, dumping O
canned sea food; Tuesday, 2:30 pm.
dumping of matches.
Dumping Defined.
Dumping. as defined in the act o
May, 1921, is the selling Of foreign
| merchandise in the markets of th'
United States for less than the foreign
value. The foreign value is PRACTICAL!
the equivalent of the freely Offered
wholesale selling price in the countr.
of origin of the foreign merchandise
The American law is based on th'
theory dumping is an 'uneconomica
and predatory practice not to be coun.
tenanced in American markets an.
more than Is vicious price cutting or
the part of an American producer whit
may seek thereby to secure monopol!
of the domestic market"
In order to find dumping" undel
the existing law two pertinent fact:
must be determined by the Treasury De-
partment. First, that the merchandise
has been sold at less than its foreign
market value, or, in the absence Of such
at less than the cost of production; Sec
ond, that an American industry ha:
been injured thereby, or is likely to bt
injured, or is prevented from being es.
tablished. Both factors must be present