whose products were marketed chiefly through jobbers. The average
selling expense of the selected hats was $1.64 per dozen, or 10.8 per
cent of the average manufacturing cost. In selling expense is included
the charge for cases and other packing material.

(_b_) _Foreign._--Costs of selling hats to importers in the United
States are included in the general overhead expenses reported by
foreign companies, but are an inconsiderable item when compared with
manufacturing costs. No expenses of the offices maintained in this
country by foreign manufacturers have been included.

TABLES SHOWING COST COMPARISONS

In Table 8 are shown the costs of domestic and Italian men's sewed straw
hats, irrespective of the type of braid used in their manufacture. In
Table 9 are shown similar cost data for domestic and English hats. In
both tables costs are shown with and without transportation charges on
foreign hats, and ad valorem rates of duty necessary to equalize
differences in foreign and domestic costs have been computed.

TABLE 8.--_Rates of duty necessary to equalize differences in costs of
production of men's sewed straw hats in the United States and in Italy,
the principal competing country_

-------------------------------------------+-------------+------------
Item | Domestic[1] | Italian[2]
-------------------------------------------+-------------+------------
(_a_) Cost (transportation not included): | _Per dozen_ | _Per dozen_
Material cost | $6.44 | $4.35
Labor | 4.60 | .87
Overhead | 1.70 | .76
+-------------+------------
Total manufacturing cost | 12.74 | 5.98
+=============+============
Difference | | 6.76
Foreign valuation[3] | | 6.42
American selling price[4] | 13.28 |
| |
Ad valorem duty necessary to equalize | |
on basis of-- | | _Per cent_
Foreign valuation | | 105
American selling price |