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Con Gression \ L Record-Ho 8976 CON GRESSION \_L RECORD-HO"GSE. the prices that produce the profit . Some of them may success­ Go\ernment mone!. I~ ii' e:-timnt~ll that the industry was ex­ fully compete with tlle Germans in South America. Some no panded to t?ree times its former size. To-day, in its readjust­ doubt have great organizations. Some may do just as they ment, th~ mdus~ry ~ace a. corresponding contraction to the plea e. But why should the machine-tool industry be joined in peace basis.. Besides, it foreign market is gone, and that market a scathing denunciation of such people? was absorb~g probably between 20 and 30 per cent of the If Senator SIMMOKs had grounds for these statements, in so to~l P:?duction before the war. This expanded capacity is now far as some automobile and firearms producers were concerned, a Iiab1li~y, not an asset, and is far in excess of reasonable the statements were all erroneous as applied to the machine-tool expectation of u e. industry, which was lumped with these others in the di ·cus­ . C~rtai~ly the bes~ justification for a protecti\e tariff is the sion. ~ustifican.on of n3:t10nal defense. The machine-tool industry Machine tools are not small tools, as some Senators have be­ IS ~ ~ey ~dustry_ m national defense. If it is ruined by com­ lieved, and as some may still believe. The term " machine petition with foreign enemies this country would be in a terrible tools" would be clearnr to the nontechnical if they knew that it state when it came to defen e in any future war. applied to the great mass of metal working machinery used in ~ar. from being a monopoly that charge· what it pleases, at the forming or working into finished shape of all metal part . this tI~e these manufacturers are fighting tooth and nail for This class of machinery is the most important of all the indus­ every httle order. A large excess of war-made machines is trial machinery group, using the term " industrial " as distin­ on the seco1Hl~and market; all costs are still exceedingly high guished from ''agricultural" and "transportation." The output and demand is very small. All these circumstances make it of machine tools is about 25 per cent of the output of all in­ impo sible for this industry to get any profit at all, and there dustrial machinery. On the high quality and productivity of have been numerous failure . the machine tool depends the quality and amount of production The German machine-tool industry was also expanded to per man of all the industries making metal goods and machin­ take care of the war needs of the Central Powers, and it is in ery of every other class. On this industry the other metal in­ the ha.nu o~ strong concerns. A 15 per cent rate on foreign dustries ,must depend for low costs with high American wages. v:iluation wil~ help the Germans to kill off their American ~ivals; and this. by the action of a Republican Senate establish­ It is the genius of the machine-tool builder that makes possible mg a Democratic rate at the instigation of Democratic Senators cheap automobiles, sewing mac;hines, washing machines, phono­ from Arkansas and North Carolina-States that have no metal­ graphs, and radiophones. The accurate instruments, close­ working industries of any consequence. shooting weapons, huge quantities of war material so necessary You_r own State of Ohio is the largest producer of machine in the late war, all depended on the genius of the American tool~ m al~ the United States. and we appeal to you as repre­ machine-tool builder for their production. e~tin~ this State to call the attention of the Renate to the Therefore this industry deserves something better than a mere ~nJU t1~e that has b~en done to this inclu try, not only in the fling of vituperation at the hands of the misinformed. If this ill ·considered reduction, without any reflection or information industry is throttled, all others must suffer. · ~s to the rate.. but in unju ~ t, unfair slurs directed against an In refutation of Senator SnrMoNs's statement as to exorbitant mdustry that In-es by the "Weat of its brow. profits, the experience of this industry was that the 1914 prices · Thi industry has to bid for its material and labor against were so low that the manufacturers faced ruin. Testimony had all other mechanical indush-ies. Being put in a lower rate been submitted to the Underwood committee showing that the ~lass a~ 15 per .cent, w~en all of its cu tomers and competing machine-tool industry had ea.med only 8.95_ per cent on its mdustries are gIYen a higher rate, was an injustice of the Un­ invested capital for the 10 years prior to 1913. Prices in 1914 derwood law that the House bill sought to correct with a rnte were extremely low because of prospective German competition of 35 per cent. To continue to w-ork such an injustice on that was just coming in under the Underwood Tarifl\ that had an important industry, with 53,000 wage earners, an indu - made the rate 15 per cent. try o essential to the national defen e and progre , is beronu If the industry before the war could not earn oYer 8.95 per rea on. cent with the lower wages paid at that time, it will be strange It is hoped that the Senate will rescind the action in makin"' if it earns anything with "Wages and material and all other this amendment, and will. at lea ·t, resto.re the machine-tool ite~ cost more than double the 1914 rate and machine-tool prices to a rate coyered by the o-called "basket clause" where it only 40 per cent more than 1914. was some years ago, with all other· mechanical intl~stries with The export market formerly enjoyed by the machine-tool whom it competes for labor and material, and who in turn must industry has now been almost annihilated. The large German depend on the machine-tool indu. trr for their vital improve­ steel combinations, engineered by the German ti·ust organizers­ ments in methods of production. Krupp, Hugo Stinness, and others-control large machine-tool Very truly your , works and are now taking steps to enter the American market. E. F. D"GBRUL, General Manager. They certainly can and will do so if the rate of 15 per cent ls RECE ' • maintained, since German copies of American machine now ~ell for only one-third of the present price of American · .Mr. CURTIS. I mo\e that the Senate tnke a reces the re­ originals. ce being under the unanimou -consent agreement, ~ntil 11 Senator KING on the same day said that the prices were more o'clock to-morrow. than 100 per cent over the 1914 price, that the manufacturers The motion was agreed to, and (at 6 o'clock and 7 minutes were taking advantage of a monopoly, and that they charged p. m.) the_ Senate, under the order previou ly entered, took a practically what they desired. The following figures, taken from recess until to-morrow, Tuesday, June 20, 1922, at 11 o'clock the 1919 census, are sufficient proof that Senator KING'S re­ a. m. mark could not apply to the machine-tool industry. According to the census figures of 1919 the machine-tool industry's invested HOUSE OF REPRESENTATIVES. capital was $213,000,000. The total value of its product in that year was $212,000,000. We are told that the sale of repair :MONDAY, June 19, 19~~. parts of the lowest-priced automobile, built by a prominent Democrat, amount to more than that in one year for that one The Hou ·e met at 12 o'clock noon, and was called to order concern. So when it comes to volume this industry can not be by the Speaker. so damnable a monopoly as Senator KING intimated. • The Chaplain, Rev. Jame Shera Montgomery, D. D., offered The machine-tool industry in 1919 had 403 establishments the follo'\\i.ng prayer : employing 53,111 wage earners. The average of wage earner~ Heavenly Father, again our eyes are open to the wide reaches per shop was therefore 132. Where is that monopoly that of the impartial love of a divine Pro'Vidence. We rejoice in Senator KING says wa taken advantage of by the manufacturers the glad outlook of the day and week. l\lay we bring buoyant to charge the public what they desired? The actual facts are hearts and minds to our duties. Impres u that it is always ju t the opposite. This indu try of scattered, small establish­ best to believe the best and do the best. Faithfulne s to prin­ ment is to-day struggling for existence, and has been doing so ciple is essential to Thy favor and to the e teem of our fellow . for over 18 months, as a reaction from the war conditions. Direct u by Thy wisdom, girn courage to conquer every temp· -This inuustry was absolutely es ential to the successful con­ tation, and strength to ari e from e\ery failure. Thus enable duct of the war. Without metal-working machines, machine us to strive for the victorie that count and tell for God and tools, as technically known, war munitions could not have been man. Amen. made. The enormous demands of the war for such· machines were patriotically supplied by the expansion of the machine­ The Journal of the proceedings of Saturday, June 17.
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