Ottumwa weekly courier. (Ottumwa, Wapello County, Iowa) 1872-1899, 1877-01-03
MATCHMAKING IN AMER
ICA.
A Forelgner's Testimony.

o. Nocemoe,, 6y NJ. Ed0uard Fac
e-PerYet, Member Of the Interna-
ton Jury on Watches Of the Eahi-
bition at Philadelphia, and one Of
the Srtss Commissioners to the
Uutted States.
Mr.. Arnold Grosjean, President of
the Board of Commerce, announced
that M. Edouard Favre- Perret, Mem
Der of the International Jury on
Watches of the Exhibition at Phila-
delphia, had kindly consented to re-
peat, at Ia Chaux-de- Fonds, the
speech already delivered by him al
Locle and Neuchatel, on the situation
of the Industry Of Matchmaking in
the United States:
THE ADDRESS.
GENTLEMEN / must, to start
with, announce to you that you have
not an orator before you, but a man.
ufacturer, and as such l ask your in
diligence. shall give you informa-
ton which, unluckily, is not cheerful,
on the condition of Swiss watchma-
king compared with the American
competition. / shall tell you of facts
simply, such as have seen them, such
as have understood them. Frank
ness is here more necessary than any
thing else, for it is not by palliating
the bad sides of difficult situation
that we can succeed in improving it.
"For long time we have heard
here of an American competition,
without believing it. The skeptics-
and there were many of them-denicd
the possibility of o competition at
once SO rapid and so important. To-
day we are forced to believe the
proofs of it, and to acknowledge the
existence of a formidable manufac-
turc.
eve have had the proofs of it I'M
der our own eyes; we have seen the
American factories, and we have
been able to satisfy ourselves exactly
as to their power. We have treated
the American manufacture as we
have treated the neighboring manu-
factures-in the future of which we
did not wish to believe at first, and
which form to-day most serious
competition. refer to Besancon,
Bienne, st. Imier, Morat and Schaff-
hansen.
"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 haze known
Mr.. Dennison, who was, we may say,
the father of American matchmaking.
Mr.. Dennison travelled through the
Canton of Neuchatcl, studying 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 factory
at Boston-sThe Boston Watch Com.
pany,' This was in 1854. The capt.
tal-scarcely $780, O0O-was subscribed
by capitalists 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, ETC., ETC.,
were imported from Switzerland
Little by little, however, the factory
extended its operations, and produced
other parts. Notwithstanding all this
progress, this mode Of doing things
not suiting the American character
so little inclined to let capital remain
almost unproductive, the capitalists
abandoned the factory, and it failed
in 1856.
"Another American, Mr.. Robbins
whom you have also known, gentle
men, when he had business relations
with us, scented good speculation
and bought in the entire factory
tools, included, for $4,000. A new
company - The American Watcl
Company'-was afterwards formed
with capital of 100000. Soon this
capital became insufficient, and it wa
increased to 100000 before the wal
of secession. This war, which seem
ed calculated to destroy such an en-
terprise, was, on the contrary, thu
cause of its prosperity. America pu
on foot million of soldiers, and, al
EVERY one wanted his watch, Their,
was great animation in the watcl
business. At this juncture, which
might have been lucky one for ou
industry, we failed to comprehend
our real interests. Instead o
sending good watches to the Amer
leans, the worst trash was SEM
Had mere skeleton movement
been sent in cases they would hav
been thought good enough! TIL
Americans, however, went to worl
on an entirely different plan. TIL
company increased their plant, ant
turned out better ordinary watcl
than the Swiss watch. AT the en-,
of several years, and with the aid o
patriotism, the American watch ell
ljoyed q good reputation, while on
own was discreditcd everywhere
In 1866 the capital was increased t
$4,000, and the operations of tn
new company grew to immense pro
portions. During the followin,
years business went on so well tbs
everywhere new watch factorie
sprung up. Every one wanted
make watches. To-day you ca
count about eleven factories. TIL
most important, after the Walthar
Company, is the one at Elgin, whic
turns out about 300 movements day
The Waltham Company give en-
ployment to 900 workmen, and max
about 425 movements per day. Tn
company again increased their cap
tai in 1872 it amounts to-day to 81
: 100000, besides 100000 as reserv
D fund, or capital of 100000, franc
This watch factory is real power
, there is none like it in Europe W
have seen it in all its details, and W
have admired its splendid organizs
Z ton. Last May on the eve of the e.
/ hibition, we still seemed masters {
the situation. One event, howeve
=. dealt us mortal blow. Be
through the effect of the crisis, &
3 from any other motive, til
I Elgin Company made, all
q sudden, a reduction on til
price of their movements {
40per cent. to so per cent, so that a
stocks Of Swiss watches were serious
a ~ affected. Lever movements, wit
: visible pallets, were sold at 10 franc
4 How can we meet this? Under sue
circumstances, how can we maintai
: competition? It will be necessary I
! turn out our movements at ID or ]
francs to pay the custom duties an
! to leave little margin of profit
! The Waltham Company, howeve
I would not be outdone by the Elgi
Company; they even proposed to d
, better. They announced a reductio
, of price from 40 to so per cent. O
prices already lower than their rival
, buta the same time they made know
, that this reduction would go back a
| far as January l, 1876. So that
!, dealer in watches had simply to ind
cate the stock of his Waltham good
, on hand to secure the rebate of 40 t
so per cent. This coup de commerc
has cost the company $4,000.
. ut is unnecessary, gentlemen, t
tell you how very detrimental this wa
to the Swiss watch. Still another an
more important reason explains tn
growing prosperity of the America
Company. Their tools work SO reg
ularly that all parts of the watch ma
be interchangcd, by simple order O
a postal card, without necessitatin
the forwarding of the adjoining piece
The question has often been aske
whether the Americans can sufficient