The Iron Age 1936-06-11: Vol 137 Iss 24

Make When Roll Neck Bearings have been manufacturing and applying mill operators. The Timken The Experience the Bearing Manufacturer: Timken Bearings are used impo successfully for more than years- ing was the first tapered roller bearing ever applied mill roll necks. and still good ends the type service and half tons stee this tonnage life. bearing naturally dep have rolled upwards the Bearing: The lif necks has even approache where Timken Bearings bearing used mill rol Life Expectancy There are known cases condition. other type ufactured with load capacities high bove its normal oll Neck Bearings have been man siderable reserve load capacity aring cost per Load Capacity the Bearing: Timken Neck Bearing has con Every Timken pounds. the Bearing: The initial cost bearing not true indication its value. rolled the only real test. Timken Roll Neck Bearings have reduced this cost the lowest point ever recorded the industry. Roll Neck Bearings over pply these compari your decision. They will help you needless expense and dissatisfaction avoi THE TIMKEN ROLLER BEARING Power Saving: Operating tests Timken period years have definitely proved that rolling mil Timken Bearings require from less power RES. g > INSURE UNIFORMLY HIGH QUALITY, ALL THE STEELS USED HEADED AND THREADED PRODUCTS MUST RUN THIS GAUNTLET TESTS Bolts and nuts all standard and special shapes, sizes, alloys and finishes. Standard and special rivets all kinds. Wire rope clips. Turnbuckles. Automotive and railroad special items. Headed and threaded products for every use. Your specialties are our specialty. 2—THE IRON AGE, June 1936 THE IRON AGE, published every Thursday the CHILTON CO., (INC.), Chestnut 56th Sts., Philadelphia, Pa. Entered second 1932. the Post Office Philadelphia under Act March 1879. $6.00 S., Canada $8.50, Foreign $12.00. Vol. 137, No. 24. 2 rs ¥ q q th 4 re FRITZ FRANK, President VAN DEVENTER Editor Managing Editor Editor Emeritus Machinery Editor Washington Chicago Cleveland Pittsburgh FRANK OLIVER GERARD FRAZAR Detroit Boston Cincinnati CHESTNUT AND STREETS, PHILADELPHIA, PA. Sales Offices 239 WEST 39TH STREET NEW YORK, Contents June 11, 1936 Assembly Control Machine Tools Mass Production Parts for Refrigerator Cabinets Profits Machinery Builders Since 1928 Machine Tool Selling. Time Grinding Carbide Tools Reduced Foresees Brighter Future for Steel Industry The New Rotary Melting Furnace Automotive Industry Statistics Metal-Working Activity Rate Activity Capital Goods Washington News Index Advertisers. 148 CHILTON COMPANY (Incorporated) BAUR, General Advertising Manager Executive and Publication Offices, DIX, Manager Reader Service Chestnut and Sts., Philadelphia, Pa. Member, Audit Bureau Circulations STAFP MUSSELMAN, President Member, Associated Business Papers Emerson Findley, 621 Union Cleveland Indexed in the Industrial Arts Index. B. L. Herman, 675 Delaware Ave.. Buffalo. FRITZ FRANK. Executive Vice-President Published every Thursday. Subscrip- sessions, Mexico, Cuba, $6.00; Can Charles Lundberg. Chilton Bldg... Chestnut & GEORGE GRIFFITHS, ada, $8.50, including duty; Foreign 56th Sts.. Philadelphia. Pa. $12.00 year. Single copy, cents. Ober. 239 39th St.. New York Robinson, 428 Park Pittsburgh ERNEST C. HASTINGS, bg W. C. Sweetser, 239 West 39th St., New York JOHN BLAIR Secretary matter No. 24. | 3 4 Pat «3 4 | ai ‘ 3. 4 > and will here the Hot Rolled Alloys 2315, 2320, 2330, 2335, 2340, 2345, 2350, 3115, 3120, 3130, 3135, 3140, 3250, 4140, etc., etc. Rycase machine straightened). Rytense A.A. (hot rolled, ma- chine straightened). Cold Drawn Alloys 2315, 2320, 2330, 3115, 3120, 3135, etc. Heat Treated Alloys Ryco machine straightened). Nikrome (hot rolled, cold drawn, machine Stainless and Heat Resisting Alloys Allegheny Metal (Sheets, Bars, Welding Rod, etc.). Cold Finished Steels Std. Shafting, Turned, Ground and Polished, Special Accuracy Stock, Rycase High Manganese Screw Stock, S.A.E. 1020, 1035, 1112, 1120, etc. Tool Steels Ryerson B.F.D. Die Steel. Ryerson Steel. Ryerson V.D. Steel. Ryerson High Speed Tool Steel. Ryerson Special High Speed Tool Holder Bits. General Steel Products All steel products such Bars, Structurals, Plates, Sheets, Strip Steel, Welding Rod, Tubes, etc., are carried stock for imme- diate shipment. When steel must hand certain time maintain uninterruped schedule and you can't afford take chances delivery—when some- thing breaks specifications wire write the nearest Ryerson plant. The steel stock—every shape, size and Shipment assured. There are ten Ryerson plants ready serve you. Each plant strategically located for quick, eco- nomical distribution steel throughout its own in- dustrial area. every plant there strong expe- rienced organization and complete facilities for cutting, bending forming the material your specifications. Draw the Plant Nearest You. Ryerson Son, Inc., Chicago, Milwaukee, Cleveland, Detroit, Cincinnati, St. Louis, Boston, Buffalo, Philadelphia, Jersey City 3 ] ay. ‘ | Ry re My 28—THE IRON AGE, June 1936 THE IRON AGE ... JUNE 1936 ESTABLISHED 1855 Vol. 136, No. More About Mechanization advocates the philosophy scarcity starting from the false that high prices produce wealth inevitably arrive com- mon point. Traveling down their road reasoning they come the place where further improvements mechanization are taboo. their thinking this subject they are considering the supposed plight the man who produces, not the man who consumes. would indeed show how the consumer harmed lowered costs which enlarge his power possession. The solicitude for the wage earner expressed anti-mechaniza- tionists lies their belief that lowered costs mean less employment and lowered wages, hourly weekly. Those who believe that all increases real wages and em- ployment come eventually from improvements efficiency take exactly opposite viewpoint. The the pudding the eating. Theory and reasoning economic subjects are not convincing performance, therefore consider this: The maximum wages and greatest employment American industry today are those lines which have been efficiently mechanized and where restrictions output not apply. The automobile industry The lowest annual earnings labor and the greatest unempioyment lies those industries which are least mechanized where labor policies produce the same scarcity through artificial restrictions. The building trades furnish graphic case point. The same thing applies nations trades. Those which make use mechanization have higher standards living than those which not. Not many American workmen would care migrate China compete with coolie labor. Machines are makers wages and wealth. 2 = ty pss a i Sat 2 re a j <a 4 29 THE Machine Co. makes several dif- ferent types ma- chines naturally tools this type, with many auto- matic features, comprise great many parts. Some parts are inter- changeable among two more types sizes and others are suit- able for only one. That takes careful organization and control assemble, build, machine and 18 get out time goes without saying and elaborate means have had developed this end. However, these can outlined give idea how manage this end production bly give some helpful suggestions others who have more less complicated assemblies building some entirely dif- ferent line. Many the principles store room for finished parts. Upon receipt the proper credentials various parts are placed skid platforms and delivered the sub-assembly department with instructions for further procedure. 30—THE IRON AGE, June 1936 ARIETY machines con- stituting manufacturing line introduces complicated problem control parts for assembly. This ticularly true the machine tool building plant, where various sizes machines are built the same type and —— | achine where part interchangeability between unlike sizes not always attainable. The Heald Machine Co., has developed yet effective system control such situations and the experience that com- panyis set forth this article. ools involved are not necessarily de- pendent the product being machine tool. the first place the production department supplied the en- gineering department with main schedule for each type machine tool. This includes number sub-schedules units which form part the product, such the base, elec- trical control boxes, cylinder and machine tool assembly line does not utilize con- veyor, but moves, theless gresses. trucks provides the mobility. never- ° ° BRODUER Assistant Superintendent Heald Machine Co. reverse valves for the hydraulic transmission, the wheel head, and forth. Each unit has number and each part the unit also has number. Thus the main schedule has complete list every item that goes make given prod- uct, and these items are grouped that they show what part the machine they into. One the important duties the production department see 4 parts, distinguished from manufactured parts, are kept the department. material from either raw finished stores given out without the presentation ticket. THE IRON AGE, June 1936—31 | that supply parts and sub-assembled units hand for the filling orders. this end maintains perpetual inventory and the main schedules are posted with the stock hand. parts are needed order sent the skid platforms and sends them the sub-assembly department, with the unit traveler, which gives full directions for the assembly. Fin- ished stores mark the issues that the parts have been delivered and return them the production de- assembly facilitated having the required unit assemblies and individual parts brought the machine base means skid benches and lift trucks. shop the form “parts eler.” This merely the part which gives the opera- tions, material and routing. When the part finished sent with the traveler finished stores. Then the traveler returned the production department, thus serving notice that the work has been done, and that the material now stock. The sub-assembly units also made order from the pro- duction department when its rec- ords show that they are needed. The procedure follows: The production department places blueprint the unit, blueprinted sheets listing the parts which the unit made and the ished stores give them out envelope called the unit traveler. This envelope sent finished stores. The latter gathers together all the parts and places them 32—THE IRON AGE, June 1936 partment. When the units have been assembled they into finished stores with the unit traveler. The latter returned the production department fin- ished stores, thus completing the transaction. Purchased parts, such bolts, springs, are kept either store room ever given out for any purpose without issue being exchanged for it. Now let consider what hap- pens from the standpoint as- sembling machine tool. When machine has been sold the engi- neering department sends the production department traveler sheets covering all the units going into the machine question, and parts which are not part unit, attachments, such guards and forth. The wheel- heads, workheads, drive equipment, fixtures, etc., which are needed for the particular requirements the customer, are also given. tional parts with the machine but not assembled are speci- fied well. These include such items wrenches, blueprints, lu- bricants, grease guns, etc. These sheets are all placed envelope the production depart- ment. The latter also makes out the issues, separate one for every item the sheets, and places them the same envelope. This traveler sent the assembly department. The foreman this department then turns the issues into finished stores, raw stores, the case may be. The latter gather together the sub-assembled units and parts and place them double-deck triple-deck racks, with skid bases, which are moved the assembly floor means lift trucks. Ac- tually they are delivered the machine base which | r e if | while been brought the end the assembly line for scraping. This base has the same serial num- traveler envelope, and the issues. order comprises more than one machine there sepa- rate envelope for each one. This envelope tied the base soon comes the floor and stays there until the completed machine ready ship. the materials are delivered from the store rooms they are checked the traveler sheets that there can con- flict between records. the back each envelope given the time allowed for scraping and the time for line assembly. These are sub- ject change will noted later. should stated that the remain stationary its original position the line, for assem- bly work progresses moved the direction the run-off. There are several reasons for moving the machines this way. the first place the production department holds meetings twice week (Mondays and Thursdays) when puts dates the “build- ing which the equivalent machine assembling schedule. Dates are fixed for starting the assembly new orders, for tests, for fixture tests and for shipment. these dates may changed. For instance, standard machine which being made for stock may held back give preference some other machine which for NIT assemblies are made department contiguous the assembly lines. Here the various self contained mechanical hydraulic units are prepared for the final bases are skid platforms that they may readily moved. The assembly floor, store rooms, and the run-off space are con- veniently located with respect each other and ample means are provided the way overhead traveling cranes for moving heavy fact the heavy units, such heads and motors, are usually put place with the help these cranes. this plant the term “assem- bly line” does not, course, mean moving conveyor. only means machines which are being built. However, machine does not assembly the machine base. = early delivery. course there may any number reasons for changing dates. Every Wednesday and Saturday the machines which are being as- sembled are rearranged the lines that those which are fin- ished first are placed the head the line, and those with later dates other positions. That is, each assembly line divided into sections and each section num- section according when should shipped and the length time needed for building it, that the position machine the line automatically shows how much should pushed. Work always concentrated the head the line. Sectionalizing the lines this way also keeps the men from jumping around much. The machines are always moved means lift trucks. However where “battery” several simi- lar machines being built they are not moved progressively this way. This hardly needed large order this kind there risk its being neglected. Also the large and very heavy machines are built section themselves from which they are not moved progressively. This arrangement has been de- veloped experience and has been found practical and efficient. twenty-five different types machines are made here and all them are elaborate, very necessary have the organization and instructions full and complete. Greenfield Company Opens Detroit Plant plant and facilities the Carpenter Tap Die Co., 2102 West Fort Street, Detroit, were recently acquired the Greenfield Tap Die Corp., Greenfield, Mass., for operation branch concern. The Greenfield company, which one world’s largest makers screw cutting tools, felt the need hav- ing plant the center oper- ations the motor industry enable keep pace with the constantly demands that business. The new plant will managed Alfred LaPierre, former super- intendent the gage department Greenfield. Other officers are follows: Versil Annis, office and merchandise manager; Glenn Stim- son, charge engineering; Roy Peterson, metallurgist; Kiehne, chief inspector; and John Penny, district sales manager. The plant will completely modernized and equipped fur- nish special taps delivery schedule one two days after receipt orders. THE IRON AGE, June 1936—33 ci- | CONTRACT for parts for electrical re- frigerator cabinets placed with the pressed steel plant the Truscon Steel Co., Cleveland few months ago the Crosley Radio Corporation was sufficient size warrant considerable expenditure for new equipment and the creation production department used exclusively for the manufacture parts for Crosley refrigerator cab- inets. New equipment the very latest type was installed including Toledo and Consolidated presses and Cincinnati brakes, and num- ber new polishing porta- ble sanders and other tools which were supplemented presses and various other equipment pre- viously used other parts the pressed steel plant. This pressed steel unit for mass production refrigerator cabinet parts laid out across one end the company’s large plant and oc- cupies floor space approximate- 20,000 sq. ft. Material kept moving through progressive operations 34—THE IRON AGE, June 1936 time reaches the press depart- ment until fabricated into finished parts, carefully inspected and delivered cars the ship- ping dock continuous mechan- conveyor. Stocking parts the floor between press opera- tions entirely eliminated, han- NGENIOUS stamping and forming operations characterizes the production lines established Truscon Steel Co., Cleve- land, for the manufacture, contract, erator cabinets. Large double crank draw- ing presses head each the four production lines and are set permanent foundations. The smaller presses which fol- low production sequence are arranged moveable position suit condi- tions. PRODUCTION line for forming door panels for Crosley refrigerator cabinets the pressed plant the Truscon Steel Co. Press and other equipment conveniently ar. ranged for tive operations. The door drawn the large double crank press shown the right. dling labor reduced minimum, floor space conserved and other economies are effected that tend curtail production costs. After the last press operation the operator places the piece long bench equipped upon which moves straight line course through metal finishing operations. The lay-out line production from the time the sheet given the first operation until the finished part hung the conveyor the shipping dock. the 20,000 sq. ft. floor space sets parts for 2500 re- frigerator cabinets are completed eight-hour day with the ex- ception that the line making the side panels operates two shifts be- cause there are two these panels for each refrigerator necessitating the making twice many panels other parts for each re- frigerator unit. The parts, seven number, in- clude addition the side panels, the door, lower front panel, top and two interior parts, which are line door cabinets Truscon ress and tly ar- The non the crank the lides the ation ping floor leted the be- re- in- nels, top are metal finishing the top and bottom plates. This requires output 17,500 finished stampings per day. Assembly Distance The parts are shipped the Crosley plant Cincinnati where the cabinets are assembled. Manu- facture parts for refrigerator cabinets one plant and assembly another rather new depar- ture the refrigerator industry, but practice that quite com- monly followed the automotive end the door panel line along which the doors pass after completion the various forming Mass Parts roduction Crosley rigerator FRED PRENTISS Cleveland Editor, The Iron Age industry the manufacture parts for bodies one plant and assembling them far distant point. However, the economies effected from this practice are readily recognized when con- sidered that the parts are manu- factured large plant whose equipment especially suitable and whose entire efforts and facili- ties are devoted the manufac- ture and development products this class. The Crosley production unit this plant arranged with four production lines 160 ft. long ex- tending the distance across the plant, each for separate part and each having its own metal finish- ing line which straight line continuation the line fabricat- ing equipment. the end the finishing line the parts are hung overhead which carries them through spray booth where they are sprayed with coat light oil protect the surface during | | = uy ° ° ° aye | the time they are route the assembly point. Continuing their movement the conveyor the parts pass out the shipping plat- form where they are removed from the conveyor and placed cars the adjoining shipping track. The conveyor 750 ft. long and ex- tends approximately 350 ft. along the shipping platform before turn- ing back into the fabricating build- ing, permitting the loading many seven cars spotted along the shipping platform. Press Production Lines the head each production line large drawing press which performs the major drawing opera- tion. The other equipment for sub- sequent progressive operations closely grouped the side and beyond this press, the machines being close enough together per- mit pieces passed the press operator from one machine the next without being piled the floor. These drawing presses, which might termed the key machines the four production lines are two large double crank straight side presses equipped with pneu- matic cushion beds used for draw- ing the side panels and doors, one single crank straight side press 36—THE IRON AGE, June 1936 equipped with pneumatic cushion bed for drawing the front lower panel and one large single crank straight side press equipped with hydro-pneumatic cushion bed for drawing the cabinet top. The four larger presses are set permanent foundations. The smaller presses, however, not have permanent that their positions changed desired. The speeds the lines are reg- production lines, ulated the drawing which make strokes per min. great deal study was given the type equipment for the various operations, the set-up the machines and the proper positioning presses order provide lay-out that would assure high-speed and low-cost production. The stock, all No. gage cold rolled sheets, passed through roller leveller located immediately adjacent the department and de- ABINET tops drawn the large single crank shown the fore. ground, which the head the line equip. ment conveniently nearby Progressive tions. The presses that appear background right are the head the other three ~ i | tops NOTHER view the the top line showing the group- ing smaller presses veniently distance that work arby for has to be handled Opera. from one press the Presses next reduced minimum. the head or three ‘ ° ° ° NOTHER view the door panel line, some the panels being stacked the livered the production lines lifts overhead crane. The first operation the side panel line notching the bottom blank sheet small press after which the first operation form- ing the offset the bottom the legs made another small press. The piece then passed the large press for drawing the panel which requires draw about 4-in. depth. Progressive operations follow including trimming the flash, trimming corners proper height for return flanging, trim- ming and perforating two sides and top brake, forming the leg flanges and forming the return flanges side and top sections the panel another brake which there are three progressive flanging operations. Three pieces are set the brake one time and with each stroke the ma- chine the equivalent complete panel flanged. This completes operations the panel and the last operator taking the panel from the machine places the finish- ing bench. Operations Doors and Panels The first operations fabricat- ing the door are notching one side the blank and trimming off the four corners small press. The door then drawn large double crank press after which the four corners are trimmed the proper height for flanging. The next operations are trimming and forming flanges the four sides which done brake one stroke the machine. The four corners are then flanged small press and two perforating opera- tions follow two punch presses. This completes the press operations and the door placed the metal finishing bench. The first operation performed the lower panel the notching the bottom and trimming the upper corners which done three strokes small rapid punch press. This panel then drawn large single crank press. The panel then has the corners trimmed and notched proper height for flanging two small presses and then goes brake which set with series tools for trim- ming the top and sides the THE IRON AGE, June 1936—37 es | er ip to re e- for the progressive fabrication the lower front member cross panel. This panel drawn the large single crank press shown the foreground. proper height for flanging, notch- ing the lower corners and flanging the two sides. After these opera- tions the top flange and two cor- ners are formed small presses and the panel placed the metal finish bench. The sheet that formed into the top blanked, notch cut near the center and the four corners are trimmed. The blank then broken down approximately right angle fixture and placed the die large single crank drawing press and drawn deg. angle and depth about 4-in. This one-operation draw, which because the shape the finished top rather difficult form the piece must drawn without breaking tearing the stock pulling the stock out the apex the angular bend. After drawing, the rear are trimmed two small presses, the bottom corners are formed two other small presses, after which the piece goes large trimming 38—THE IRON AGE, June 1936 press for trimming the two sides and the front and back, these being four progressive operations with four pieces the press one time, the equivalent one top completely trimmed each stroke the press. Flanging and Notching Then similar press the flanges are formed the cabinet top, these also being four progres- sive operations, the equivalent top completely flanged each stroke the press. Operations that follow are, making angular notches the two lower front corners, forming these corners and perforating key slots, these being done progressively three punch presses. The part then moves the metal finishing line. The top plate that located the cabinet above the food compart- ment and the bottom plate that goes the bottom the cabinet require only two operations each complete, one for trimming, per- forating and notching and the sec- ond for forming. This work done presses located the side the four production lines. these are interior parts and require metal finishing they are taken di- rect from the machines the cars for shipping. Each metal finishing line long bench which the various ES j finishing operations are performed. The top these benches consist two longitudinal structural mem- bers and where necessary cov- ered with smooth, hard, com- pressed fabric material protect the parts from scratching mark- ing. The metal finishing opera- tions are also carried progres- sively, each finisher performs his portion the work the part moves along the bench the next finisher who performs subsequent finishing operation. The stampings reaching the conveyor line which the cabinet parts are suspended after finish- ing. This conveyor carries the parts through spray booth for protective coat- ing oil and through the side wall the building onto the shipping dock from which they are carried di- rectly into box cars. finishing benches cleaned, the oil and drawing com- pound being removed and are in- spected for dings, die marks and scratches. These imperfections are removed metal finishing, consist- ing dinging, necessary, buffing and sanding. Highly polished dies are used assure stampings that are smooth and free from scratches. The buffing done end polishing lathes with rag wheels impregnated with very emery and the sanding formed with portable disc wheel sanders. High frequency sanders are used assure high production and uniform speed under load. frequency changer has stalled this department change the current the current re- quired for the high frequency motors. Slushing and Shipping The parts after metal finishing operations are performed are in- spected and hung the conveyor which carries them through the spray booth for the protecting coat oil and the shipping dock. The conveyor which the parts flow steady stream the cars the shipping platform has spe- ao & cially designed hangers, placed in. centers, upon each which two parts are suspended. This con- veyor, built the Jervis Webb Co., Detroit, has variable speed ft. per min. Considerable care exercised the loading the refrigerator cabinet parts cars that they will not damaged transit. Due the expense involved crat- ing impractical. The panels are stacked the cars face face with corrugated board between the faces and the stacks are held rigid- place cleating and block- ing prevent shifting. The tops are all wrapped paper before stacking. The parts are all tightly packed and almost every inch floor space the car utilized. finishing line for the cabinet top. THE IRON AGE, June 1936—39 2 ii = Profits Mach SOMETIMES news torted. And sometimes this can operate the serious disadvantage certain business interests. Here item that misrepresents the situation the machinery building industry. Late March one America’s leading newspapers, over the first column the first page, carried the Business Recovery Since ’21 Now Evi- dence; Heavy Industries Are Van.” the text heavy industries have the largest improvement has been called ‘capital goods’ industries. Among these are the makers 40—THE IRON AGE, June 1936 ERE common- sense article, based upon facts and dealing with the called the heavy in- dustries steel, electrical equipment, machine tools and the building industry.” What are the facts? Like many other commentators the business situetion, the au- thor the above quotation under- stands clearly that the continuing twelve million wage-earners has re- sulted from the stagnation the lem attaining recovery large- the problem reviving activity these lines. Some months ago the Durable Goods Committee re- ported President Roosevelt that this had not then occurred. The reporter seems anxious catch the signal that demonstrates that happy days are here again. can test the progress recovery measuring the increase the activities these capital goods in- dustries. The American people are fur- ther deeply interested the pro- ducers machinery because, spite all that has been said inery Builders | | Division, Department Since ° ° ° thinking because the inclusion “makers steel, electrical equip- ment,” draws too wide group products. Our test progress will more precise exclude from our definition about technologic unemployment, the inventiveness these ma- chinery builders that has endowed our nation with its mass produc- tion and its low-cost production, spite high wage rates, and RASTALL Formerly Chief, Industrial Machinery Commerce cans, cash registers, typewriters; household sewing machines, vac- uum cleaners, fans and refriger- ator; pianos and billard tables; automobiles, tractors and locomo- tives. prefer here consider, Capital Goods” pots, pans and tin has given very high standard living. The reporter seems awake the fact that, not only are deeply interested the abundant life with abundant work, but are even more interested having machines that give the abundant life with little work possible. want more and better inventions. Hurrah for the machine! Unfortunately, written, the above quotation, like similar com- ment from others, leads confused THE IRON AGE, June | | Hd ine F Tf not “Durable Goods” but only fac- tory, mining and construction ma- chinery—capital goods used for production. Because the methods sale and purchase and the cir- cumstances use consumers durable goods are different from those applying industrial ma- chinery the facts regarding this latter group are much more im- mediate significance and this area have had unique experi- ence stress, courage and re- Going Down! Between 1929 and 1933 employ- ment all American manufactur- ing industry declined 31.3 per cent. Many industries fared much better than this average. Makers steel barrels during these years in- creased the number their em- ployees 58.9 per cent; makers malt increased employment 43.7 per cent. Beer had arrived! Many food and clothing producing indus- tries reported increases declines that were very slight indeed. Those were privileged industries. for the under-privileged—the machine tool group reported decline 73.2 per cent; engine builders decline 63.6 per cent; pumps decline 52.4 per cent. This shows spread from plus 43.7 per cent minus 73.2 per cent! What unbalance! Not the Whole Picture But these measures unem- ployment are most inadequate be- management exhausted every opportunity keep their organ- izations intact and did show con- sideration for their men. Such work could found was spread widely possible. Men were with plant rehabilitation, with research and with the devel- opment new designs—even with contrast these unemployment figures the index machine tool orders dropped from its peak 186.3 February, 1929, low 7.4 March, 1933, decline 95.7 per cent. industrial pumps peak was April, 1929, 151.9, and the low was Janu- ary, 1933, 19.3, decline 87.2 per cent. Woodworking machinery had its peak January, 1929, 125.1, and its low March, 1933, 3.2, decline 97.4 per cent. When was collapse more complete? not have complete sta- tistics describing the situation the industrial machinery group 42—THE IRON AGE, June 1936 whole. The picture must filled from fragments such the above. Similarly, residential construc- tion, mentioned the above quo- tation, had parellel catastrophic collapse. From its peak 142 February 19, 1928, fell 8.88 January, 1933 (Federal Reserve Board Adjusted Index), decline 93.7 per cent. Only those positions responsibility those industries fully the ties; worse than drought grass- hoppers and with way plow under the excess capacity. The above newspaper article was developed from the annual reports various corporations. Such data are fragmentary, commonly these statements are made public only those concerns whose se- curities are listed one the recognized stock exchanges. This, for the industrial machinery group works out about firms out several thousand. These few firms include the best names the in- dustry and can found the market pages your daily paper. considering the following com- ment regarding what pened and what happening the cream this group that pro- duces the basic wealth American industry also reed lines note what happened the other thousands these produc- ers, especially the brackets that may classed skimmed milk whey. Twelve Seventy Had Profits these firms only were able through the period 1928- 1935, inclusive, without deficit any year. Six these enjoy pat- ent monopolies that enable them business royalty basis, with the result that their profit was not from building machinery, but from the making cigars glassware shoes what have you. Further “inspired bookkeep- may also explain some these favorable reports. There least one instance where the redesign the product secured the orders that made the profits conspicuous example excellent management. Another these firms produces equipment for the steel industry which has equip- ment policy much superior the absence policy followed the machinery using industries gener- ally. This steel industry policy —do not expand during boom, but rehabilitate during result, producers steel mill equipment have comfortable during these difficult years. This leaves very few firms that succeeded deriving profit from the making machin- ery between 1928 and 1935. Subtracting deficits from profits, these best names have gone through this entire period loss—not one cent profit for \ ‘ | > | eight years, which two were very active and six very, very dull talent working with Probably even larger number firms should included group losers, for there have been reorganizations and composi- tions and other adjustments that have not been advertised. If, instead including the boom years 1928 and 1929 consider only the period since Jan. 1930, find these leading firms have operated six years loss, and six years very long time the number would substantially increased these statements were subjected analysis. Words fail when think the whey. true that 1932 was the poor- est year; there has been some sub- sequent improvement, but even 1935 there were least these firms still the red and, typ- ically, those instances where profits were reported, they were but very small fraction those accumulated 1929. Even this late date some the most impor- tant firms have not published their statements for 1935. Some these though still “best names,” probably will not able issue statements because receiverships, etc. The Building Boom! Lately other items have been ap- pearing the press that may pos- sibly leave false impression. Sev- eral times statements have been published indicating that residen- tial building has say, double last year. true the re- cent high was November, also December, 1935, with the Federal Reserve Board Index (adjusted) 26, compared with the low 8.88 January, 1933, increase over 200 per cent. made look like news. But these item have not mentioned that 1928 the average was 126, operations are still less than per cent that prosperous year. Such sordid facts are not news. But the publi- cation such items can easily lead the public expect too much the machinery and construction in- dustries the way employment, profits and public relations gen- erally. Similarly, the recent high woodworking machinery December, 1935, 23.5, compared with the January, 1929, peak 125.1; industrial pumps March, 1935, 62.5, contrasted the April, 1929, peak 151.9; foundry equipment October, 1935, 140, compared with the peak May, 1928, 336. Machine tools are the class most frequently men- tioned the press and have made unusually good showing—the recent high August, was 125.8, compared with the February, 1929, peak 186.3. This the degree which the heavy indus- tries are the van recovery. here the position the automotive, the beverage, the ray- and similar industries, and also the position the consumers’ goods industries generally. the above poor statistical method has been employed deliber- ately. Comparisons been made with the historical peak. Or- dinarily that would ex- cusable. But these other commen- tators have made their compari- sons with the historical lows. merely seek balance. Further, much argument would result agreement was sought for some other base, such 1926 1922- 23-24, other. Our object has been merely test the quoted statement, “The heavy industries have revived.” Instead, clear that while the situation not bad was, still far from right and this not the time for Pollyanna statements the ex- pense the capital goods indus- tries. Deferred Demands There constructive side this discussion. Depending upon the classifications used, this coun- try produced about three six billion dollars worth machinery 1929. the subsequent years America has accumulated untold billions deferred maintainance, deferred equipment, deferred prog- ress. enormous potential de- mand for industrial machinery exists and will crystallize into orders can but overcome the forces that have throttled busi- ness the equipment and con- struction fields since 1929. This not the place attempt state the cause causes the depres- sion, but perhaps can agreed tary-credit phenomenon. least industrial have heretofore either “new capital issues” “profits plowed back.” Since 1930 capital flotations have been very low level. Excepting brewery, distillery and gold mine projects and refunding operations, few is- sues have been floated, while re- serves have been held tenaciously cover deficits and business un- certainty and have not been plowed into plant expansion rehabilita- tion. course there are indus- tries, like automobiles and steel, individual plants where this not THE IRON AGE, June 1936—43 1- e eC , = | 7 true, but broad way the rule applies. all this conceded can then agree that because monetary-credit ineptitude have reduced the producers industrial machinery the extremely low state described above, with all that this implies cluttering our fac- tories with obsolete equipment and denying our people the abundant life. Economic Knowledge Lags Our knowledge economics has not progressed rapidly our technical knowledge. have not yet learned how adjust our mon- etary and credit systems and the distribution the national income our rapidly improving mechan- ism for production. Instead adequate, definite and constructive equipment policy for industry, have confusion, drifting and ob- struction. For example, note the in- consistencies their effect the industrial machinery producers the proposed taxation undistrib- uted surplus; the depreciation policies used the Income Tax Unit; the rulings W.P.A. and P.W.A.; the attitude the Gov- ernment toward the ties; the various policies em- ployed the Interstate Commerce Commission. What will the ef- fect the demand for labor-sav- ing machinery when payrolls are taxed per cent under the Social Security Act? May call these the unconsidered by-products Government action? Employment will return the capital goods in- dustries when new capital issues are sold finance new plants, when management can see its way plow profits back into improved machinery and when mortgages are negotiated cover new resi- dential and other construction. Export Conditions Too often this depression American depression; instead worldwide and the forces work abroad are startlingly like those felt home. Compared with the pre-depression peak the decline machinery exports, expressed monthly returns, has been much the same the decline domes- tic orders. Domestic Export Machine Tools ........ Woodworking Machinery Industrial Pumps ...... Foundry Equipment ... 97.0% 98.2% Air Conditioning Equip- 44—THE IRON AGE, June 1936 Recently, however, the export trade shows signs marked im- provement. Here machine tools are most conspicuous, for the recent peak little below the 1931 peak. June, $3,288,302 November, 1935 2,875,361 December, 1935 January, 1936 3,146,588 February, 1936 2,751,825 Exports industrial machinery the peak 1929 approximated million dollars per working day— huge business the greatest so- cial significance, precious both buyer and seller. The experience has been: Peak—March, 1929 Low—May, 1933 Recent High—November, $12,222,239 These export markets again de- serve careful attention. $25,645,339 3,400,060 creating false impressions, Polyanna statements can ment for the splendid men who have managed these industrial chinery producing shops. Perhaps the above description their ex. perience since 1930 and the prog- ress they are making will such aberrations. The turn has come the extent described. The skimmed milk bracket begins see the way out improvement con- tinues. The pumping machinery, air conditioning equipment and certain other classes have good prospects. Also the export tion improves. With certain de. fects removed from the credit mechanism can as. sured that these important machin- ery builders will again able their part. the meantime they should treated sympathet- ically. They have experienced the extreme depression. They are far from the van recovery. oF THe Laer PACKER | ISING out the Arizona desert this monument perpetuates the name the man Greek, the man's name But the American soldier was just who drove the only camel caravan ever trek this land. was Phillip Tedro; Arabic, Hadji plain was magic the way handled his majestic charges. And had been alive the time, would have seen magic the which, with hiss and eerie bluishwhite light, wrote his epitaph with molten, steel. The used letter the steel tablet was the electric arc. J } | 3 3 ; | vho og- has see on- ry, ind de. ry- in- et- ire Machine Selling Should Coincide ith High Plane A\ccuracies machine tool industry, openly admitted, needs raise methods the plane its equip- ment performances. Such purpose merits constructive thought within its own industry and cooperation from other industries which buy machine tools. Reliable sources corrective information should sought and considered top ex- ecutives. With this thought mind views are herein presented direct sales representatives who quiries, selling and supervise sales work, and who arrange and are responsible for buyer-shop dem- onstrations specified territories. These men have served the indus- try for long periods, are shop trained and are highly regarded among those whom they contact. have frequently expressed their views for, obviously, they are qualified speak. group discussion was recently held with respect time-study de- partments shops which employ large numbers machine tools. not understood that the discussion was critical these de- partments such; was not. was, however, critical high cost sales friction resulting from buyer technique involving delayed announcement speeds which new equipments will operated after installation and demonstra- tion buyer plants, particularly so-called line production. The point was stressed that present in- stallation procedure does not pro- tect the continuing interest which maker has his equipment after installation. Machine Speeds Guaranteed Machines, under present condi- tions, are sold maker-suggested, competitive, and guaranteed speeds production, Waite which speeds are frequently excess those finally set time study departments. The sys- tem has been fostered sellers, each overly anxious out-rate his competitor sales proposals sub- mitted. Under such system selling, which primarily one esti- mated production under ideal con- ditions, guaranteed speed figures given competitive bids become quite general knowledge among competitors involved. After machines installed, demonstrated, and put work buyers’ time study speeds, guar- anteed speeds become the object word mouth advertising, often exaggerated, other pro- spective buyers. Veracity Both Hard-Loser and Successful Bidder Challenged and when guaranteed speeds study speeds, which are later nom- inated operating speeds for normal production, prospects are often taken buyers’ plants, there witness with their own eyes and record their own stop-watches the claimed fact that successful bidder machine has fallen down guaranteed speeds. The visit generally hasty one with little opportunity for development facts. The hurling this competi- tive challenge quickly disclosed and the representative the suc- cessful bidder, with blood his eye, takes the burden disproving. Again the prospect taken the buyer’s plant, there have confirmed, through shop personnel and possibly demon- stration, that the machine was demonstrated guaranteed speeds, but that for shop production rea- sons, demonstrated speed was re- duced orders from the time study department, fact quite naturally not disclosed the time the first visit under “all’s fair” rules such competitive methods. successful bidder, under this sales policy, compelled accept any and all challenges from competition obsessed with hard-loser peculiarities. Most decidedly, held, the plane sales effort not lifted this somewhat regular routine, and, moreover, contended that cooperation the buyer neces- sary any headway correction the evil. Buyers Ready Cooperate was pointed the sion that many buyers are ready cooperate, particularly those who have been protecting them- selves refusing operating de- partments admission tive buyers. This admission fusal has serious drawbacks be- cause prospects may have made long trips taken valuable time convinced that competitive competitor guarantees speeds to. get crders. Contacts with higher- ups are resorted order gain admission and they are gen- erally effective. this manner, under much present cedure, the buyer shop personnel becomes court last resort both substantiating and disproving- rival claims stated machine speed failures. This complained serious annoyance and reduces machine tool selling matter mere veracity. proves nothing other than the system THE IRON AGE, June art ‘on- | } | = 4 \ | ° ° ° “f ~ e 2 n far below the dignity the prod- ucts distributed. Remedy Suggested conclusion reached sales people who have faced these con- ditions many times that buyer time study speeds, determined and should supersede maker-estimated speeds the basis orders and buyer shop demonstrations. held that maker guaranteed speeds, demanded excess normal strated maker plants and there given written acceptance sales record for controversial presenta- tion event competitive chal- lenge. contended that all demonstrations, when speed dem- onstrations are necessary, should conducted makers’ plants. contended that operating heads, after full presentation time study departments, should assume speed dictation the full responsibility operating personnel. This, itself, would eliminate much “buck-passing” and resultant friction. Acceptance cedure, felt, would offer protection whatever maker selling equipment not qualified meet required shop service. the other hand, would protect any maker against time study de- partment action provisions excess maker guarantees and not preconsidered from equipment design viewpoints. Such excesses, held, crop from time time, with effects detrimental Distribution Ore 1935 A\nalyzed Lake NTERESTING the distribution Lake Superior ore 1935 are presented an- nual charts issued the Lake Superior Iron Total shipments water and all- rail during the year were 28,503,- 501 tons. Included are figures giv- ing the production ranges and shipments from upper lake ports previously published, the consump- tion receiving ports and the re- distribution from these ports in- terior furnaces. Distribution foreign and eastern ore also shown. Figures given represent units 100,000 tons. Shipments Lake Erie ports last year were 197 units com- pared with 153 units during the previous year. this units were consumed receiving ports and 146 units were reshipped interior furnaces. Lake Michigan, Detroit, and other consuming ports received 93.9 units. Lake Michigan ports received units, going South Chicago, Gary and Indiana Harbor. These ports received units 1934. Detroit received units last year com- 46—THE IRON AGE, June 1936 Superior pared with the previous year. Receipts other consuming points were Hamilton, Ont., units, Sault Ste. Marie un