OF MANUFACTURERS

TESTIMONY

AND WORKMEN ON THE RESULT OF

CONVICT CONTRACT LABOR IN THE NEW YORK STATE PRISONS,

1883.

TESTIMONY OF MANUFACTURERS.

The following questions were asked by circular letter of the leading manufacturers of the State engaged in the industries carried on under contract in the prisons of the State:

First. Please state opinion as to the effect of the contract system upon your trade.

Second. Have you been able to compete with the prices for which the same class of goods were offered by prison contractors?

Third. Do the manufacturers in the State generally agree among themselves as to a fair price for their goods, and is this standard underbid in the market by the contractors?

Fourth. Have you been able to compete with the prices for which the same class of goods are offered by prison contractors?

Boot and Shoe Manufacturers.

The testimony of the manufacturers of boots and shoes who have responded to those questions discloses the fact that the competition of prison contractors does not materially affect the finer make of goods, but that upon the quality made in prison the effect is positively injurious.

To the above questions one firm, employing three hundred and eighty mechanics, and representing a capital of $250,000, answer as follows:

First question. "Prison competition is the factor that reduces our profits often below four per cent on capital invested.”

Second question. "We have not."

Third question. "It is."

Fourth question. "We have been and are paying men wages which hardly support their families, and even then make very little profit."

A firm employing one hundred and fifty men, with $162,000 capital, answer:

First question. "In lively times the effect is unnoticeable. In depressed times, it is ruinous."

no.

Second question. "In favorable times, yes; when trade is dull, The contractors do not appear to undersell the market except when they find stock accumulating, and trade dull; then they sell at less than free goods cost."

Third question. "In 1877-78-79, they spoiled the trade."
Fourth question. Yes, and after reductions aggregating thirty

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per cent, could not then compete except at a loss, but since recovery of trade in 1879, we are not bothered materially."

A firm employing two hundred and thirty-one mechanics, with $150,000 capital, answer:

First question. "We cannot compete in price with prison goods. of the same grade as ours."

Second question. "We can't compete.'

Third question. "There is no agreement as to price. Every "Cannot say that we have.”

one does the best he can."

Fourth question.

A firm employing one hundred and fifty men, with $125,000 capital, answer :

First question. "The effect is certainly bad to the manufacturer as well as to the employees. It makes the State a competitor with its free citizens, which in our opinion is a shame."

Second question. "We have not been able and are not able to meet prison competition."

Third question. "Certain grades bring nearly same prices, but prison contractors can and do sell ten to fifteen per cent less."

Fourth question. "Yes; prison competition has forced manufacturers to either drop on wages or stop work, the laborers suffering the reduction in preference to remaining idle."

A firm employing two hundred and seven men, with $55,000 capital, answer:

First question. "With the improved machinery of the present time, contractors are improving in quality of the work produced in prison, and bid fair to drive manufacturers out of best goods, as we were forced some years ago to give up common goods to them, not being able to compete."

Second question. "We cannot compete with the prices of same class of goods; they can bottom sixty pairs of shoes for $1.50, which will cost outside $15.00."

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Third question. They do generally agree as to fair prices or necessary advance over production, and they are undersold."

Fourth question. "I have found it necessary to reduce or try it, and finally forced to give up the line we were manufacturing on three different occasions."

A firm employing 63 mechanics, with a capital of $31,000,

answer:

First question. "Every pair of shoes costs us from fifteen to twenty per cent more than contractors."

Second question. "We cannot do it."

Third question. "Shoe men don't agree on equal price, as contractors have underbid us on equal work."

Fourth question. "We have tried it, but with no success in getting good men."

A firm employing one hundred and ten mechanics, with a capital of $30,000, answer:

First question. "Our goods are a finer grade, and we are not obliged to compete with them."

Fourth question. "No."

A firm employing fifty mechanics, with $18,000 capital, answer: First question. We cannot make goods as cheap as prison labor. It must necessarily hurt our business, as they undersell us.” Second question. "No."

Third question.

"Never heard of such agreement." Fourth question. "Never have. Don't try to compete with prison goods.'

A firm employing one hundred and forty-five mechanics, with a capital of $40,000, answer:

First question..

Second question. "No."

Third question.

"The contractor makes a better shoe for less money, and same quality of shoe for much less than can be made by free labor."

Fourth question. "Prices have been borne down by this prison competition, that neither capital or labor take interest in it." Other shoe manufacturers testify:

First question. "We cannot compete," etc.

Second question. "No, we cannot make any profits," etc.
Third question. "Yes."

Fourth question. "We shall be obliged next year to reduce them largely in order to sell the goods we make, and to carry over a large stock, because we cannot afford to sell at prison prices.

"If we were to reduce wages so our men could not live and support their families, we could not compete against prison-made boots."

One of the leading manufacturers in the boot and shoe industry in the State writes as follows:

"When boots and shoes were made by hand, before the advent of so much improved machinery, prison labor made common and cheap grades of goods, of inferior styles and finish, and manufacturers outside of prison were able to get an advance of price in goods over those on the inside, by reason of their workmanship and style. The introduction of machinery enabled prison contractors not only to improve their quality, but also to use patterns and dies, originated and perfected outside the prison, often at great expense and loss of time in study, to make goods equal in style and finish, thus coming in direct competition with the advantage of prison labor at a nominal cost, and generally factory rent, heat, power and light free thus making it impossible to produce goods outside of the prisons, and put on the market at prices asked by prison contractors, forcing manufacturers outside to reduce wages, and to economize in every possible point in course of manufacture, so closely, that the fraction of a penny is often the cause of losing orders that could be taken at a fair margin if it were not for the competition caused by convict labor.

[Sen. Doc. No. 13.]

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