The Owosso times. (Owosso, Mich.) 1897-1926, 1918-11-15
Washington Letter.

Washington, Nov. 12.-(Specia
correspondence)-The United State:
Tariff Commission has just issued 9
bulletin on Surgical Instrument In.
dustry in the United States" One
of the principal features of the bulle-
tin is the information that in the ear
ly days of this Republic we secured
most of our surgical instruments
from England, but about 1926 Ameri-
can manufacture began to develop
and became the principal source Of
supply until about 1880, when Ger
man competition took the ascendancy,
since which time "the demand was
supplied more largely by importation
from Germany than by American
manufactures. Consequently the
American industry suffered decline,
in 1900 there were only four firms of
any Importance remaining, and their
business was either stationary or di-
minishing.
The Tariff Commission report does
not specifically call attention to the
coincidence, but it is fact that the
German invasion of the American
market began Immediately after Ger
many, at the instance of Bismarck,
adopted a protective tariff policy.
The German surgeons had been buy
ing part of their instruments from
German makers and importing part
Of them from England. The shutting
off of imports gave the German man.
ufacturers an opportunity to build up
large industry at home, and, as the
Tariff Commissions bulletin says
"The expansion of the industry in
Germany was rapid and continuous up
to the outbreak of the European War.
After supplying practically the entire
consumption, worldwide export
trade was built up"
There you have one of the strong
est arguments for a protective tariff.
The protective tariff enables the
home manufacturer to build up his
production to such an extent that both
by quality and price he can invade
foreign markets with his surplus
German manufacturers could hire the
most expert craftsman, turn out a
superior quality of instrument, and
most prices wherever necessary in
order to drive out competitors in any
market they chose to invade. Their
success in America was indicated by
the replies made by American retail
ers to inquiries from the Tariff Conn
mission, showing that 95 per cent of
the instruments sold by them before
the war were made in Germany.
The Commissions bulletin further
says that "the predominant position
of the German instruments in the
American market up to 1914 is evid-
ence of the inability of the domestic
manufacturers to turn out instru-
ments of comparative quality at COM
petitive prices" German instruments
were cheaper by rs to so per cent.
The Commission finds that wages paid
to American workmen in the produc-
ton of surgical instruments are rs
to 100 per cent higher than paid in
Germany, while the import tariff has
been but as per cent ad valorem.
Because the German manufacture
ers produced on large scale, they
could produce at a cost even lower
than the difference in wages would in
dictate. Their factories were we'll or
ganized, they could employ the most
highly trained workmen at low wages,
maintain the best of selling agencies,
and engage in unfair price cutting if
encessary to destroy competitor.
Comparatively few Americans feel
any direct personal interest in the
price or price of manufacture Of surg
ical instruments. Few people buy
them. The man who has tooth pull
ed or an appendix removed does not
care whether it is done with an instru-
ment made in America or in Germany.
But he ought to have enough sound
business judgment to realize that what
applies to the production of surgical
instruments applies to a multitude of
other industries that are of. large i'm
portance individually and still larger
in the aggregate. When
we import SO per cent of our surgi-
cal instruments from Germany, we are
helping to build up not only that but
every other German enterprise.