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DECEMBER, 1963 Copied from an Original at the History Center Copied from an original at The History Center. www.TheHistoryCenterOnline.com 2013:023 DECEMBER, 1963 Copied from an original at The History Center. www.TheHistoryCenterOnline.com 2013:023 ~ ~ Annual Christmas (EDITOR'S NOTE: The follow i ng Taxation is the greate t. F i ft y -t wo~ imp oss ibl e to calculate and are not in­ sp eech was delivered by E. P. Trout, percent of all profits must be sent to el ud ed in the above fi gures are such vice president, at the annual Christmas Party held in the Trailer Van Depart· Washington to help pay fo r all the item as call out pay, shift premiums, ment, December 13, 1963). services, good and bad, that the poli- th e 10% Memorial Hospita l disco unt ticians think the people need or want. for employee , parking lot facilities, E are meeting here today for a Also there are city, county and state etc. twofold purpose as we have each taxes, as well as chool taxes which we The 72.6¢ per hour in fringe bene­ Wyear for a very long time. pay gladly in order that our area fits compares, fo r example, with 63llz¢ First, it gives your Management an might have the best schools available per hour in th e transportation equip­ opportunity to bring you up to date on and the best city and county services ment industry; 6lllz¢ per hour in the the condition of the Company, what such as Police and Fire departments. fabricated metal products industries, .• the possible business prospects are for Another sizeable amount which must and less than 40¢ per hour in the the future, and any other information be taken from this fund is for plant wood-working industries which include that we think might be of interest to maintenance a nd expansion . Obsolete pulp, paper, lumber, and furniture. you. machinery must be replaced by newer The a verage fo r all manufacturing in The other purpose-which we hope and more modern equipment. In no the United States is 55.9¢ per hour, to be able to continue from year to other way can we maintain our posi- which is substantially under our own year- is to announce a Christmas tion in the industry. When we lose that fi gure. bonus. We of Management have tried position, it is a foregone conclusion Another amount which must be throughout the year to build a reserve some of us will lose our jobs. taken from this fund is that distributed fund to be distributed to our em­ A very large slice of this fund is in the form of dividends to our stock­ ployees on this occasion. It is my fer­ paid to you employees in the form of holders. They are the people who have vent hope that Management will not wages. Wages represent a large portion invested their money in our Company be forced to abandon thi s policy by a of our product cost. The labor expen e and they have the right to expect a few unthinking people in organized is in excess of 40 percent of our sales reasonable return on their investment. labor. price of pumping units. You all know This year our stockholders received a what our wage scale is. Iow, the Com- 4°% dividend based upon the value of You are all grown, intelligent men pany has offered five, six and even their stock. Any investor can get 4·% and women, so let's face some of the cents per hour added to it. or more through building and loan hard facts of life. But there is another item which companies with their investment guar­ The Lufkin Foundry and Machine must be added to the wage scale but anteed up to $10,000 by the govern­ Company, like any other business or­ which some employees seem to forget ment. If our stockholders did not or ganization, has only o much money at or show little interest in. These are the could not get this return on their in­ its disposal. There are many demands fringe benefits which you enjoy as an vestment, they surely would be justified upon this money. employee of this Company. in taking their money out of Lufkin I think you will be surprised to h ear Foundry a nd Machine Company and what the cost is for fringe benefits. investing it else where. Last year, the Company spent more After all our expenses and other set than $2,170,000 for fringe benefits. costs are taken from this fund, then That amounted to more than $14.00 for Management can determine what your each employee. This amounted to 72.6¢ Christmas gift will be. Of course, it per hour for ever y employee for th e will vary from year to year. In a good entire year. year, it will be high. In slack years, J ncluded in these fringe benefits are it must necessarily be lower. pensions, insurance, workmen's com - When corporations are dominated pensation insurance, social security, and ruled by labor organizers under Christmas gift, medical, vaca tion s, jury the constant threat of th e on ly fo rce service, and unemployment insurance. that they know which is to strike yo ur Additional benefits which are almost plant and to thoroughly disrupt yo ur CHARLES (COWBOY) STARRETT, right, receives a present from R. E. (MUTT) BARR. left, while E. P. TROUT enjoys the joke tremendously Right: EMPLOYEES gathered in the Van Shop for the annual Christmas program and speech Copied from an original at The History Center. www.TheHistoryCenterOnline.com 2013:023 Party, 1963 • • • business, many firms are forced into I want to stress again the point that bankruptcy or liquidation. We all know we do not feel it is wise to pay the about the Bethlehem Supply at Tulsa gift and th e paid holidays. I wo uld like which was reported to you two years to feel that I wo uld be back at Christ­ ago. mas, 1964, to make an announ cement Cu rrently, Bethlehem Shipyards at of a Christmas bonus. This is some­ Quincy, Massachusetts, and Studebaker thing for you to decide. Corporation in India na are quitting Perhaps the most important part of business because, in their words quoted a Christmas message to you is Man­ in th e newspapers this week, " We are agement's appraisal of your present being bl ed to death by competition work status and to forecast our pros­ from cheap foreign labor and th e spi­ pects for the coming year. It is not so ralin g cost of doing business in th e difficult to make immediate or short­ range predictions ... but it is very United States." As a result of these E. P. TROUT . a Merry Christmas to ail two firms going out of business, thou­ difficult to predict the long-range fu­ sands wi ll be unemployed. Many with ture. There are many intangibles and 20 and 30 years seniority will find it unexpected events which · affect our ing year. difficult to obtain jobs. economy. Your security in the form of Our industrial gear business reached Your Company must, if we are to hours available to work are of vital an a ll time high in 1963. The biggest exist, remain competitive in both wa ges interest to the Company, and accurate advance came in the rubber industry. and fringe benefits, and it is equally forecastin g enables you to plan your We wi ll enter 1964 with a good back­ important to every employee of this expenditures with a greater feeling of log of orders. However, there is evi­ Company that we remain competitive. confidence and peace of mind. dence that the tremendous expansion Fortunately, we have had a good that has taken place in the rubber in­ U nfortunately, our labor agreement year despite the fact that the oi l indus­ dustry in th e last 18 months is over, has not been signed. This is very dis­ try in general has been off about 18% and our industrial salesmen are not as turbing to the operation of your Com­ during 1963. Our success is ti ed to the optimistic now as they were a year ago. pany. Our sales promises and our fu­ fact t'hat our products have achieved Our Trailer Division is faced with ture deliveries are complicated wh en increased acceptance and the manufac­ increased competition from containers we are forced to work from one de­ turing of Bethlehem products has also which are in reality trailers without layed meeting to another. This affects been responsible for our good year. running gear. This is a tremendous each of us. We trust these delaying Our domestic business has fallen off field and enormous quantity orders are tactics will soon end. over 30% in the last six weeks. Shorter placed for th ese containers. Our facili­ The U nion has presented the Com­ work weeks were avoided by some nice ti es are not particularly adaptable for pany wi th some 17 demands. I shall foreign business and Management's de­ quantity orders. We are having diffi­ discuss on ly one. The organizers, in sire to increase inventory to enable culty obtaining piggyback trailer busi­ particular, and the committee want you to have a larger income for the ness from the railroads. Competition seven paid holidays. The Company has holiday season. is so keen and prices so low that it is made a co unter-proposal to give six Our Sales Department fee ls that the extremely difficult to compete and paid holidays provided it is understood downward trend of the petroleum in­ make a profit.
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