Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1877-01-17
MATCHMAKING in AMERICA.

NAlCHMAhkNtT In AHALnICAs
Testimony of the Swiss Commissioner
American Superior to Foreign Watches.
M. Edouard Favre Ferret, Swiss
Com missioner to the Centennial Exhibition,
and member of the International Jury on
Watches has given the results of his obser-
vations on American matchmaking in pub
lie address at Chaux-de- Fonds Locle and
Neuchatel. Being himself large watch
manufacturer his statements made pro-
found impression in Switzerland, and will
be read with the liveliest interest in this
country. After sketching the growth Of
Matchmaking in Besanqon, by which the
French market for watches was lost to Swift
zerland, he spoke substantially as follows:
For long time America has been the
principal market for our watches. To-day
we must earnestly prepare to struggle with
the Americans, on the fields where hitherto
we have been the masters. Mr.. Dennison,
the father of American matchmaking, tray
eled through the canton of Neuchatel,
studying our mode of manufacturing, seek
ing to inform himself of everything, and
carefully noting the weak points of our
industry. After his return to the United
States, in 1854, he founded factory at Bos-
ton-"The Boston Watch Company" The
capital scarcely 800, 900, was subscribed By
capitalists more than by practical business
men. In the beginning, the company turn
ed out only the rough skeleton movement
and attended to the finishing; all other
parts, such as trains, balances, jewels, &c,
were imported from Switzerland Little by
E, InI stc
operations and produced other parts. But
as the profits were small, the capitalists
abandoned it and it failed in 1856.
Another American, Mr.. Robbins scented
good speculation and bought the factory
and tools for $75 600. A new company,
1.-The American Watch Company" was
formed, with a capital of 5000, 1000. which
was increased to 100000 before the war
which put on foot million of soldiers, and
as every one wanted watch, there was
great animation in the watch business. AT
this junctCre, which might have been q
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. 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 the American watch enjoyed a good
reputation, while ours were discTedited ev-
erywhere. In 1865, the capital was in
creased to $3.50 COO, and the operations of
the company grew to immense proportions
The Waltham company give employment to
900 workmen and make about 425 move
ments per day. They have again increased
their capital, till it amounts to 81 800 900, be-
side $500, 600 as q reserve fund. This watch
factory is a real power; there is none Ike it IN
Europe. We have seen it 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, however, dealt US a mortal blow.
The Waitham Company announced re-
duction of from 40 to SO per cent. on prices
already lower than their rivals, the reduc-
ton to date back to January 1, 1876. 1t is
unnecessary to tell you, gentlemen, 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
SO regularly, that all parts of the watch
may be interchanged, by simple order on
a postal card, without necessitating the for
warding of the adjoining piece.
The question has often been asked, can
the Americans sufficiently supply the de-
mand of their markets? Yes they can: we
are driven out of the American market In
1850 the American Companies produced
only Is, 900 watches. To-day, they produce
250, 900, which can be easily doubled. We
sent to tae United States in 1872 366, 900
watches. In 1876 we shall barely send them
rs 600 watches. The Americans have already
begun to send their manufacture to Europe
In England they sell annually from 10000
to $4,000 watches. The American watch
commences to drive from the English
market the Swiss watch and even the Eng
lish watch. The Americans began by
creating a demand for their goods in the
Indies and in Australia, and then-thanks
to some powerful importing houses-they
invaded England. At Moscow and st.
Petersburgh they have already established
important branch Offices. Their aim is to
drive US first out of their own country, and
then to compete with Us on our own soil.
I sincerely confess that I personally have
doubted that competition. But now I have
seen-I have felt it-and [ am terrified by
the danger to which our industry is exposed.
Besides, am not the only one to think 80:
The Societe IntercantonaIe have sent dele
gate to make inquiries, and his report per-
fectly agrees with mine. Up to this very
day we have believed America to be Deepen
dent upon Europe. We have been mistaken.
The Americans will send US their products
since we cannot send them our own. Their
alone. Already America has commenced
TO send cotton goods to England, which
hitherto monopolized that article in the
markets of the world.
Can the Americans maintain their prices?
Yes, they can, for if they obtain a good
profit on their superior quality goods, they
can afford to be satisfied with a smaller
profit on the lower grades OF watches. In
America everything is made by machinery;
here We make everything by hand. In
Switzerland about 40, 900 workmen make, on
an average each 40 watches per annum. In
the United States, the average is about $50
watches. Therefore, the machinery pro-
duces three and q half to four times more
than the workmen.
Had the Philadelphia Exhibition taken
place five years later, we should have been
totally annihilated without knowing whence
nor bow we received the terrible blow. We
have believed ourselves masters of the stu
alton, when We really have been on vol
cano. And, to-day, we must actually strug-
GLE if we do not want to encounter, in all
the markets, that rival manufacture. For
long time we have hoped that the customs
duties, amounting to Is per cent, might be
reduced We cannot count upon it.
America needs all her resources, and