The daily Argus. (Rock Island, Ill.) 1873-1877, 1877-01-10

milk-cow, so to speak. Today 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.. Dennison, who was, we
may say, the father of American watch
making. Mr.. Dcnnison travelled through
the Canton of Neuchatel, studying our
mode of manufacturing, seeking to inform
himself of everything, and carefully noting
the weak parts III our industry. After
bis return to the United States, he
founded factory at BOst0n-The Boston
Watch Company This was 10 1854,
The scarcely 100000 = was
subscribed by capitalists more than by
practical business men, ln 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, how
eyer, the factory extended It's operations.
| and produced other parts, Notwithstand
ing all this progress, this mode of doing
things not suiting the American character,
| 50 little inclined to let capital remain al
most unproductive, the capitalists
abandoned the factory, and it failed in
1856.
Another American, Mr.. Robbins, whom
you have also known, gentlemen, when he
had business relations with US. scented a
good speculation, anl bought in the en-
tire factory, tools included, for $75, 900.
A new company-"The American Watch
Company was afterwards formed, with
capital of 100000. Soon this capital
| became insufficient, and it was increased
to 100000 before the war of secession.
| The war. which seemed calculated to de
stroy such an enterprise, was, on the con
trary, the cause Of its prosperity,
America put on foot million of soldiers,
and, as every one wanted his watch, there
was great animation in the watch business.
At this juncture, which might have Teen a
lucky one for our industry, we failed tC
comprehend our real interests Instead OF
sending good watches to tie Americans,
the worst trash was sent Had mere
skeleton movements been sent il
cases they would have been thought good
enough! The Americans, however, went
to work on an entire 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
La 1865 the capital was increased t
$75O,O00 and the operations of the new
company grew to intense proportions
During the following years business wen
on so well that everywhere new watcf
factories sprung up, Everyone wanted tt
make watches. To-day you can coun
about eleven factories. The most i'm
portant, after the Waltham Company, i
the one at Elgin, which turns out abou
300 movements a day. The Wathan
Company gives employment to abou
900 workmen, and make about 425 move
ments per day. The company again 10
: creased their capital in 1872: it amount
to day to Sl,500,000, besides 100000 a
reserve fund, or a capital of 9,0O0,OOC
francs. This watch factory is a rea
power; there is none like it in Europe
We have seen it in all its details, and wt
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 morta
blow. Be it through the effect of the
crisis, or from any other motive, tn
Elgin Company made, all of sudden.
reduction on the price of their move
ments of 40 to so per cent. so that al
stocks of Swiss watches were seriousl
, affected. Lever movements. with yisibl
pallets, were sold at l9 francs, How cal
we meet this? Under such circum
stances, how can we maintain competi
ton? 1t will be necessary to turn out on
: movements at 1907 IA francs to pay tn
y custom duties ana to leave little margi
of profit. The Waltham Company
> however would not be outdoue by tn
Eigin Company; they even proposed to
better, They announced a reduction G
: price from 40 to so per cent, on price
already lower than their rivals. but at tn
. same time they made known that this re
duction would go back as far as Jauuar
/, 1916, So that dealer 10 watches ha
u simply to indicate the stock Of his Wa
l than goods on hand to secure the rebat
= OF 40 to SO per cent. This coup de con-
S naerce has cost the company $4,000
e 1T is necessary, gentlemen, to tell 70
l. how very DETRIMENTAL this was to tn
Swiss watch. Still another ard more i'm
= portant reason explains the CROWN
y prosperity Of the American Compan!
Their tools work so regularly that a
, parts of the watch may be interchange
by simple order on postal card, withou
: necessitatiug the forwarding Of the az
:, joining piece. The question has cite
y been asked whether the Americans ca
sufficiently supply the demands Of the
markets. Yes, they can; We are drive
out of the American market! | herei
exclude, however, complicated watches,
which we are now, and [ hope we sha
always remain, masters.
In 1860 the American Companies pr
duced only $4,000 watches; in 1856
100000. To-day they produce 25O,0O
and this figure can be easily doubled
i case the crisis, which so severely prevail
= there as we'll as here, should come to a
I end. For we must not forget that,
i several factories have been closed durin
the crisis, the tools as we'll as the workmt
are still there, all ready to;resume VOL
again, Nor must we leave out of sigl
the exorbitant customs duties and freigh
which amount to about Is or 80 per cent
which take away from US every posibili
of being able to stand the fight. Al
,r now that we know the figures OF produ