Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1877-01-09

| THE PRIMARY COLLEGE OF LA cHAUx-DE-
FoNps, TUESDAY, THE l4TH OF NOVEMBER,
| BY NJ. EDoUARD FAvRE- -PERRET, MEMBER OF
| THE INTERNATIONAL JURY ON WATCHES OF
| THE EXHIBITION AT PHILADELPHIA, AND
| ONE OF THE SWISS COMMISSIONERS TO THE
UNITED STATES.
Mr. Arnold Grosjean, President of the Board
OF Commerce, announced that NJ. EDoUARD
FAvRE-PERREr, Member of the Intern ational
Jury on Watches of the Exhibition at Phila-
dclphia, had kindly consented to repeat, at la
Chaux- FOnds. the speech already delivered
by him at Locle and Neuchstel, on the situa.
ton of the Industry of Matchmaking in the
United States
THE ADDRESS
"GESrLEMEN: | must, to start with. an
nounce to you that you have not an orator
before you, but a manufacturer. and as such
| ask your Indulgence. | shall give you III
formation which, unluckily, is not cheerful
IN the couduion of Swiss Matchmaking com
pared with the American competition /
shall tell you OF facts simply, such as have
seen them, such as have understood them.
Frankness is here more necessary than any
thing else, for it is not by paliating the BAD
sides of a difficult situation that we can sue
ceed 10 improving it. t
"For n long time We have heard here OF an
American competition, without believing 1t.
| The skeptics-and there were many of them
denied the possibility of competition at once
50 rapid and so important. To-day we are
forced to believe the proofs of it, and to sc-
knowledge the existance of formidable man
| ufacture.
"We have had the proofs of it under our
own eyes; we have seen the American fac
tories, and We have been able to satisfy our
selves exactly as TO their power, We have
treated the American manufacture as we have
treated the neighboring manufactures-in the
future of which we did not wish to believe at
first, and which form to-day a most serions
competition. l refer to Besancon, Benne.
St. Imier, Morat and Schaff hausen.
"For long time America has been the
principal market for our watches-our milk
COW, so to speak. To-day we must earnestly
prepare to struggle with the Americans ON
the fields where hitherto we have been the
masters. Some Of you have known Mr.. Den
nison. who was, we may say, the father of
American Matchmaking. Mr.. Dennison trav-
elled through the Canton of NeuchateI, study
ing our mode of manufacturing, seeking TO
inform himself of everything and carefully
noting the weak parts in our industry. After
his return to the United States, he founded
a factory at Boston-'The Boston Watch
Company This was in 1854. The capital
scarcely 500, ,000-was subscribed by cap
italists more than by practical business men.
In the beginning the company turned out only
the rough skeleton movement, and attended
to the finishing: all other parts, such as trains
balances, jewels, &c.. &C., were imported from
Switzerland. Little by little, however, the
factory extended its operations, and pro-
duced other parts. Notwithstanding all this
progress, this mode of doing things not suit
ing the American character, so little inclined
to let capital remain almost unproductive,
the capitalists abandoned the factory, and il
failed in 1856.
"Another American, Mr.. Robbins. whom
you have also known, gentlemen, when he had
business relations with us, scented good
speculation, and bought in the entire factory,
tools included, tor $4,000. new company
The American W atch Company'-was af-
terwards formed, with capital Of $500, 900.
Soon this capital became Insufficient, and II
was increased to $500 900 before the war of
secession. This war, which seemed caIcu-
lated to destroy such an enterprise, was, on
the contrary, the cause of its prosperity.
America put on foot III liou of soldiers. and.
as every one wanted his watch, there was
great animation iu the watch business. AT
this juncture, which might have been a lucky
one for our industry, we failed to comprehend
our real interests. Instead of sending good
watches to the Americans, the worst trash
was sent. Had mere skeleton movements
been sent in cases they would have been
thought good enough The Americans, how
ever, went to work on an entirely different
plan. The company increased their plant,
and turned out better ordinary watch than
the Swiss watch At the end of several years,
and with the aid of patriotism, the American
watch enjoyed a good reputation, while our
own was discredited everywhere. In 1866
the capital was increased to $3.50, 900, and the
operations of the new company grew to i'm.
mense proportions. During the following
years business went on so well that every-
where new watch factories sprung up. Every
one wanted to make watches. To-day you
can count about eleven factories The most
important, after the Wsltham Company, is
the one at Elgin, which turns out about 300
movements day. The Waltham Company
give employment to 900 workmen, and make
about 425 movements per day. The COM
pany again increased their capital in 1872;
1t amounts to-day to $1,000, 900, besides
$500, 200 as reserve fund, or a capital of g.
900, 900 francs. This watch factory is a real
power; there is none like IL in Europe. We
have seen 1t In all its details, and we have
admired its splendid organization. Last May,
on the eve OF the Exhibition, we still seemed
masters of the situation. One event, how
ever dealt US a mortal blow. Be it through
the effect OF the crisis, or from any other mo-
1--WE, tue Elgln company made all OF sud
dep, reduction on the price of their move
ments of 40 per cent to 80 per cent, so that
all stocks of Swiss watches were seriously
affected. Lever movements, with visible pal
lets, were sold at 10 francs. How can we
meet this? Under such circumstances, how
can we maintain competitionf 1t will be
necessary to turn out our movements at 10 or
ii francs to pay the custom duties and to
leave little margin of profit. The Waltham
Company, however, would not be outdone by
the Elgin Company; they even proposed to
do better. They announced reduction of
price from 40 to so per cent. on prices already
lower than their rivals, but at the same time
they made known that this reduction would
go back as far as January l, 1876. So that
a dealer in watches had simply to indicate the
stock Of his Waltham goods on hand to secure
the rebate of 40 to so per cent. This coup
de commerce has cost the company $40, 600.
1T is unnecessary, gentlemen, to tell you
how very detrimental this was to the Swiss
watch. Still another and more important
reason explains the growing prosperity Of the
American Company. Their tools work 90