Postby dognose » Mon Apr 07, 2014 4:14 pm
ALBERT FORD - FRANCIS HENRY STEVENS
Cape Town
Customs Tariff Commission 1907-08
Albert Ford and Francis Henry Stevens, Watchmakers and Jewellers, Representing the Society of Manufacturing Jewellers, examined:
15858. Chairman.] Will you state what you want to bring before the Commission [–Mr. Stevens.] I am speaking from an experience of twelve years in South Africa and ten years in Australia as a manufacturer. The manufacture in the Colony at the present time is practically at a standstill, and is likely to remain so under existing conditions, as the greater proportion of Colonial jewellery is made from the designs of the South African manufacturers. It does not matter what design is produced here : if there is any demand for it it is immediately sent Home and reproduced, and mostly of a hollow kind, which accounts for the trade being in such bad condition. If the maker here could register his design at a nominal cost it would be of great benefit to the manufacturers in this country, for the simple reason that he spends perhaps a week in getting out some small design which takes very well to the public and he has no protection for it. If he shows it to any one or submits it, the next thing he sees is the same article manufactured by his next-door neighbour. You can register a design, but it costs about £16, which no small manufacturer can pay. I am surprised to see the small amount of jewellery that is imported into this Colony, because from my experience there is a greater amount sold in this country that what is accounted for in the imports.
15859. Are you taking the bad times into consideration ?–I am taking the shopkeepers–the turnover they must have. I am positive Adderley Street alone can account for more than that in twelve months, because the jewellery is not manufactured here. It is all imported, or say 75 per cent, is imported. I would like to speak on the point of the protection which would be required to manufacture two-thirds of the jewellery which is at present imported. The manufacturer at the present time is able to manufacture all the solid articles that are imported under the existing tariff, but those goods would have to be marked with his initials and the Government stamp on, otherwise he would find no market. Taking the lighter class of goods, which contain very little gold and very much labour, the tariff necessary to protect them would be really just sufficient to cover the extra cost of production, because no man can employ labour here and pay high wages and expect to compete with the man in Birmingham. Naturally, the manufacturers have left here and gone to Birmingham and send their merchants here to sell their goods.
15860. What protection do you ask ?–Take a gold chain, containing say £15 worth of gold. That article may be produced with 10s. worth of labour. Naturally, getting our material on the spot, we would require no protection, the cost of production being so little on the gross amount; but taking another article, containing say Is. worth of gold and 2s. worth of labour, you would have to base your protection accordingly because to be of any advantage to the manufacturing jeweller you must have a high tariff. It must be sufficient to allow him to compete with the foreign makers.
15861. Are you prepared to say what you want?–We could not arrive at that very easily, because there are so many classes of jewellery and so many different kinds. Some jewellery would never be manufactured in any Colony, for the simple reason that these things are made in special factories in Paris, London or Birmingham, which supply the world. There is not room for two factories of the one description in the world. I have had considerable experience, and with the present high tariff in Australia I find the goods are cheaper than the imported article, so there is no fear of the public being charged more with the tariff put on. In regard to the other points of the oversea carriage and such things as medals, I think Mr. Ford can give you an idea of a few items which the trade looks upon as an injustice.
Mr. Ford.] Up to the present we have had the manufacture of medals, rings and ordinary solid articles of jewellery of catalogue prices here. Paying the wages we do in comparison with the wages paid at Home, we find it rather hard. Hut we should not count that so much it we could only get the quantities to do; but we are rather handicapped owing to the manufacturers disagreeing with us on the qualities of the metals supplied. We can give them our written guarantee, and they have their remedies if it does not prove to be as we state. But that is not satisfactory in the Colony. They want a mark of some description from the Government as a guarantee that the article is good.
15862. You are rather going beyond the scope of our inquiry, because we only deal with the Customs Tariff and Railway Rates. We are prepared to listen to any suggestions you may make about any alterations in the tariff?–Mr. Stevens.] It is a very small industry Id this country, but it is surprising what springs out of that one industry.
Mr. Ford.] Why I refer to the marking is that we, having to work on the imported price, are under a disadvantage, because as we can compete with it the want of a market prevents us from doing what we could. I was really meaning that if we should have a protective tariff put on any solids like that which could be manufactured, it may make some difference for us, and prevent the import of things which we can make at an equal price. The quantities they give us do not ensure really enough work, and as a matter of fact we have had to reduce our staff considerably through it.
15863. Have you any suggestion to make about the tariff ?–Mr. Stevens.] I would like to give you an instance of medals, cups, badges and trophies for sporting bodies in this Colony. At the present time you can import these articles free of duty, provided they are engraved abroad. That means if a shopkeeper imports his medals and pays the duty he has to pay the engraver here the extra cost and he cannot compete. All those goods could be manufactured here, in fact anything of a solid nature. The consequence of these medals alone has been, to my knowledge, that it has sent three engravers out of this town. Then there is another item. Any person can go round this town and buy diamond jewellery, send it home through the post, declare it here, and have it returned in a manufactured state by paying the duty on the cost of manufacture.
The Secretary.] That is not so now.
Mr. Stevens.] I know cases where it has been done, but it must have been altered.
15864. Chairman.] You have not suggested any alteration in the tariff– Mr. Stevens.] I should suggest if the tariff is to keep the manufacturing jeweller in South Africa, give him the same opportunity as, say, Canada or Australia, and you will have two-thirds of the jewellery which is at present imported, manufactured in this Colony. Of course the stamping of the jewellery would have to be arranged for ourselves, and give our guarantee through the Association, the same as they are doing in Australia at the present time. Each Association there has its own stamp and they mark the goods, having officers to see that the goods are of the proper quality. Of course it is much better to have a Government mark.
15865. Is that all you wish to bring before the Commission ?–That is all I can say in regard to the tariff at the present time.
15866. Mr. Tod.] Do you know the Canadian tariff?–It runs from 5 per cent. up to about 35 per cent, roughly speaking. I believe the Australian tariff is u little lower, but at the same time I would not advocate the same high tariff as in Australia, because you can buy goods in Melbourne cheaper than the imported, because the manufacturing jewellers are competing. Any manufacturing jeweller can buy the material and manufacture in a small way.
15867. That complicated classification you speak of would be difficult to operate? –It would not matter for the public. If you put 50 per cent, on the whole of the goods there would be no fear of the public being overcharged, because one manufacturer is as keen as another to get the trade, and has to keep his prices accordingly.
15868. What is the present duty on jewellery –I believe 12½ per cent, and 15 per cent, on foreign.
15869. You contend that that is not sufficient to make up for the difference in the wages paid ?–On the solids quite sufficient, but not on the hollow goods.
15870. As you pointed out, the more valuable the article the less percentage of protection you require ?–Not the more valuable. A manufacturer may charge 15 guineas to make a diamond brooch, and there may not be 10s. worth of material besides the diamond.
15871. At present if a diamond ring is imported the duty is assessed on the whole value ?–That is only fair, because you have to pay the duty on the diamonds. In Australia they work it differently. Cut stones are imported free. That is an enormous protection to the manufacturer, because the diamond setters in Sydney alone have ample work, for the simple reason that any one importing diamond goods has his mountings manufactured in Birmingham, London or Paris as the case may be, and they are sent to the Colonies, and when I was there they paid 15 per cent, duty on those articles in an unfinished state. The diamonds where naturally in another parcel, and came in free, and they put them together, which found work for a large number of setters.
15872. Is that the practice here ?–No. Here you pay the same duty on your cut diamonds as you do on your manufactured article. Of course if stones of all descriptions were free that would give a large amount of work for specialists in stone setting.
15873. Are there many men engaged in the industry ?–At the present time you will find 75 per cent, of the manufacturers in the country are working in the Transvaal. They were working in Cape Town.
15874. Where there many men employed in Cape Town when things were good: –I had eight men, and at present time I am standing still just keeping the shop open with a boy, waiting for things to improve. During the busy time my output was about £400 worth a month. There was no check on me. I could have manufactured a thousand pounds worth of gold goods in my shop and sold them round the country, and no one would have known how they were made.
15875. Your good faith about the gold would have to be taken ?–The shopkeeper? would but not the public. I can manufacture in Cape Town with the existing tariff, but I cannot compete on account of there being no hallmark or Government mark. That is the great stumbling-block of manufacturing jewellers here–on gold things particularly- -because unless the manufacturer marks his goods you have no protection against him.
15876. It appears to me you want that remedy rather than the tariff'–That would come about I think if the tariff was remedied.
15877. The present protection is 12½ per cent, from England. What recommendation do you make ?–If I made a recommendation I would leave the tariff on all solid goods the same as at present, and on hollow goods, which entail a large amount of labour, I would double that tariff.
15878. Is it a very easy matter to distinguish between solid and not solid.–Yes.
15879. The Customs would find no difficulty ?–None whatsoever: in fact the manufacturers at Home who manufacture the hollow goods do not manufacture solid ones.
15880. There is much more work in connection with the hollow goods?–Not such a great amount of extra work as there is in the intricate machinery you have to have. If you manufacture hollow goods in this Colony the output is not sufficient to warrant much machinery, and therefore you have to use one set of machinery to produce goods in gold and silver.
15881. Is there much machinery used in your business ?–A great amount of machinery–most of which can he manufactured in South Africa. I personally have sufficient machinery for fifty men for manufacturing, and some of the machines I have are quite sufficient for 200 men.
15882. You are not interested in other work, such as watches ?–I do not think those will ever be made in any of the Colonies. These are made in different departments of the Continent and all over the place in pieces, and they are really all assembled in the workshops in Europe and put together. You cannot call it an industry.
15883. You recommend the existing tariff on solid goods and double on the hollow goods ?–Yes.
15884. Mr. Scott.] Can you tell us why 75 per cent, of the jewellers have gone to the Transvaal ?–That is a question which I think requires a private Commission Inquiry. We all have theories, and there are things you let the Government inquire into. When you find one manufacturer can pay the same wages or more and can undersell you in the market you begin to think there is something radically wrong, and I always think that is for the Government to inquire into: 1 do not think it is a matter for this Commission.
15885. Do they pay higher wages in the Transvaal –Naturally I should say so, and I may say the labour required in the manufacture of jewellery is generally white labour.
15886. Is there much of the jewellery made in the Transvaal coming into the Cape Colony ?–A great amount.
15887. Then of course the gold is produced there, which makes a great difference ?–That we cannot say. There is a difference somewhere which we will leave to some one else to find out.
15888. Did you give the number of workshops ?–In Cape Town I do not suppose there are over 200 working jewellers, and there ought to be at least a thousand.
15889. Is it long since the number of workmen went to the Transvaal ?–No. It has always been so since my recollection–that most of the manufacturing jewellers after being here a certain time have found it did not pay them here and have gone to the Transvaal, and there they seem to stop.
15890. How long have you been in business in Cape Town ?–The last twelve years.
15891. Mr. Kayser] Is it not on account of the population in the Transvaal that the engravers go there ?–I cannot say that they go to the Transvaal. I speak of three engravers having left the country. The depression may have something to do with it, but I take it the engraving oversea has a lot to do with it.
15892. Has that occurred lately ?–I believe it was only at the time of the last tariff that most of the people found they could do so.
15893. Have they left during the last two months ?–Two years ago they left.
15894. What was the difference in the tariff ?–I think 7½ per cent.
15895. In the previous tariff, cups, etc., came in free ?–I know since the last tariff more of these goods have been imported free than before, because I think most of the association did not know about the former tariff.
15896. Is not that because the ad valorem tariff was increased and made the goods dearer? They would not bother about 7½ per cent. ?–Yes, that may be it.
15897. If you double the duty it makes people seek the cheaper market –Yes.
15898. Do you import any of these cups and medals?–We do not import anything; we are purely manufacturers.
15899. You made a remark that these cups were imported ?–I said if the retailer docs import them he has to pay his duty and pay his engraver for engraving them, and naturally he cannot compete.
15900. If you do not import you cannot speak about the import trade ?–No, but that is a point.
15901. What do you mean by manufacturing at catalogue prices?–Mr. Ford.] A certain number of catalogues are sent from the British firms to us, and if anything is wanted manufactured here in a hurry they send us the catalogue price and say they can import it for that, and we have to make it for that price. If they have time to wait they send home for the article and have it engraved and get it in practically free.
15902. Is there any discount on these catalogue prices ?–5 per cent, on some.
Minutes of Evidence, with Index: Presented to Both Houses of Parliament - Cape of Good Hope (South Africa) Customs Tariff Commission - 1908
Trev.