Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-16
BY Nj. S. RUKEYSER.

Europe is sending missions to
America to discover the secret of the
nations business success. A reputa-
ton for efficiency in manufacturing
has been spread throughout the world.
And vet the average American knows
little about the actual technique of
production, which has brought his
country into leadership.
! discussed these questions recently
with Otto Herbert Falk, one of the
leading machine and power equipment
builders of the country, who has
studied questions of manufacturing
efficiency from behind the lines. Mr..
Falk has modern ideas, but in APP.
pearance and manner he is a business
man of the old school. He probably
feels more at home in the factory of
the Allis Chalmers Manufacturing Co.,
in Milwaukee, of which he is presi-
dent, than in the central offices in
New York. And he has good reason
for this preference, for Milwaukee, his
native city, recently presented him
with a loving cup as Milwaukee,
foremost citizen" Mr.. Falk, who is
in his SD year, has friendly blue eyes,
gravish hair and a rudy complexion.
His company does not come in
direct contact with the public except
in the investment field. Commercially,
the chief customers are other cor
porations-4manufac and public
utility panies-and to lesser
extent public authorities who operate
nublic works. The Alls Chalmers
makes instruments of the new indus.
trial efficiency, including mining ma
chinery, saw mill and -four mill equip
ment, turbines, miscellaneous, elec-
tric4l equipment, cement mixers, air
compressors, steam, gas and oil
engines, and pumping machinery.
Not Universally Case.
After the war, it was widely as
suned that American industry: was
over-equipped. If that were true, it
would seemingly shut off the market
for placing new machinery.
1t Is true" said Mr.. Falk, in throw
ing light on this subject, that some
American industries, which expanded
greatly during the. war, like the flour
mills, have an excessive capacity, but
this is not universally the case in all
industries. Nevertheless, the country S
industries as whole. have a capacity
which will readily take care of any
business which is likely to be offered.
Our current sales of machinery are
further plant expansion, as OF the new
impulse for efficiency in business
In this frightening of efficiency
machine tools, which are outside of
oun line, play an important part. We
sell machinery primarily because the
new product Is so much better than
the one which was sold five or ten
years ago that the old machine is con.
sidered obsolete. The new machine
will save enough money to pay its own
way, and the purchase price is a CAPT
talization of the expected savings.
Business With Utilities.
: "Of course, large part of our bust
ness is with public utility companies
which have been expanding their
plants and equipment in accordance
with the growing demand for cleo
trical service"
Mr.. Falk said that keen competition
is faced in the machinery business
The real basis for new sales is in the
work of research engineers in the
company laboratories, who are always
dissatisfied with the current line. and
who are perpetually seeking improve
ments.
'"This incessant experimentation and
change" said Mr.. Falk. make this
an expensive business. We never set
tie. on a product. but are always trying
to improve it. In this business, every
individual job is engineered to meet
specifications and peculiar needs OF
the buyer. The main urge. among buy.
ers is to purchase devices which will
heighten their own efficiency. In de,
gliding which machine maker to pa