South Bend news-times., 1922-11-22
ErSkine and DR.. Lippincott
Tell Of Studebdker Policy
And A ttitude TOWdrd Aides
president and Cooperative Di-
rector Address Niles
Rotary Club.

a r. ErsEine. president OF the
studebaker Corp. and Or. C.. a. L p
pincott. director OF the cooperative
department ~ the Studebaker plant
here. were honor cues OF the Niles
Rotary club az a banquet held Mon
day even ng the Presbyterian church
a. Niles. r. J. Plym presided as
toastmaSter.
Mr. Erskine, IN a br ef address be-
fore the cIubmcn. G scussed his com
pany's policy relative 20 labor. He
pointed out tha, transient labor
the greatest economic loss 20 indus
try. that it IS up 20 capital first %
cons der labor. thcn capitah Mr.
Erskine sad. The cordaIty with
Which 1 am met would indicate tha
you expect more than you are 10
rece We. bring no message 20 Niles
/ came here Ga response TO an invi-
tGtion from Mr. PIym. whom I asked
what he wanted me 20 talk about.
lie said he didn't know / don
know. Probably you don't know.
However. ] am here az your guest
and YOU must stand for whatever /
zee ht 20 talk about. and, N an ef-
fort 20 hll in the 10 or Is minutes
] am TO talk I shall endeavor to give
you a br ~ slle,ch OF the Studebaker
organization and The automobile n
dustry in general The automobile
nndustry occupies rather a unique sit
#iation. Its product everyone wants.
j OF never have TO persuade a man
that he wants an automobile. He
knows 70, and 10 is nothing unusual
today for men 20 order cars on the
telephone. i shall confine my talk
10 pleasure cars. for, while 1 feel that
there .s 4 wonderful opportun ty in
the manufacture Of trucks. which
are rapidly gaining popularity, feel
this is separate field. for W tn the
truck saiesmanslip is confined strict
Iy to service. And. aga n. there are
10000 pleasure cars manufactured
20 one truck"
lIr. Erskine proceeded to touch
upon the character Of automobile
salesmcu. which. he sa o. had not
heretofore been as p gh as that o.
salesmen IN other lines. However, he
said. automobile salesmen have made
a great deal Of money.
The speaker preceded TO refer 10
an instance. where an automobile
salesman. % years old, with no parti-
cular business train rs. and who
had no college education, and was
was making S1C.O00 year. had
come TO him complaining because ne
was not max ng more. What j told
that youn man was plenty said Mr..
Erskine.
In referring to operating expenses
in ne Studebakls plant. Mr.. Ersk ne
stated that he wages per man-hour
today are II percent higher than
1914, but lhas the men are turn ng
out three times as many cars, WhIch
keeps costs down He said that he be-
Heves In Intensive merChand sing
that every territory is intensely de-
Aveloped by tne S,udebaker Corp;
that they have what s known as the
bIocN system. and that an invest ga
tor keeps IN close tCucn with each
block even going so far as TO
photograph the agents place OF bust
ness. and Is surroundings; also that
the investigator makes his business
20 learn If the Studebaker agent is
the oest agent in the territory, and
if ne s. not. who g.
American dealers in foreign coun-
tries are more successful than the
native dealers. said Mr. Erskine,
because the Americans work more
intensively. We are commercial
nation" the speaker continued, and
when we work. we work hard
Briefly referring TO the cooper
ative department Of the Studebaker
Corporation. Mr.. Erskine stated that
this department rewards continuous
labor with anniversary checks
amounting 90 FIVE percent Of the en-
ploye's wages for the year, this ar
rangement gpplyins each year for
the first five years Of service. after
which the anniversary h C K
amounts to 10 percent of the en-
ploye's annual wage.
The speaker stated that another
reward for faithful service consists
OF a weeks vacation once a year,
with pay: that still other rewards
consist OF selling employees stock in
the corporation on a basis OF 10
percent down. and the balance in
four years. the employees receiving
dividends on the stock meanwhile,
\ whereas another benefit the en-
#ploycs receive consists OF nfe-in-
insurance plan. whereby the en-
ploye's estate receives $500 In case
or his death Nor are the old. re-
tired employees forgotten. Mr.. Er-
skine stated that any employe hav-
ing reached the age OF 60. who has
been I'm the employ OF the cOrpor-
at!on for a certain period may re
tire on q pension equivalent 10 25
percent or his annual wages.
Transient labor is the greatest
econowlc loss 90 Industry" said AR
Ersk.ne. "aEd we find it pays to re
ward continuous service Capita
has been a hog in the past The
policy has been % hire a man fol
Just as uttle as YOU could get him
for. II IS the duty Of capital 90 take
care Of labor first. and capital after
ward. III IS because of failure 20 dc
this that VIC have much trouble
Labor and management should have
a share IN the profits OF industry The
workers are entitled 20 far more oi
the profits o. industry"