Automatic Age

Issue: 1927 April

T he A
u t o m a t ic
piking at the cause o f the real
trouble, which is outside competition.
When business men realized that
,W e were many constructive activ-
in which their associations could
^gage that were approved by the
Government, the association move-
^ n t took a jump forward that has
|taced it in a position when it has
“ecome the means by which most of
the ills of business can be overcome.
a result, trade association has
°ecome one of the greatest construc­
tive instrumentalities for business
®etterment that there is.
Be assured that there is nothing in
Statutes of the United States, or
'n the decisions of its courts, that
Prohibits business men from getting
^gether for mutual
betterment.
?hat people have the right to com­
bine for mutual aid has been recog­
nized throughout the centuries. In
^ct, it may be said that practically
€Very step that the human race has
taken forward has been the result of
^-operation of one form or another,
^he individual is weak. He attains
l e n g t h when he unites with his
fellows.
What are some of these legitimate
Activities in which an association
may engage? Perhaps this question
^an best be answered by a statement
^hich a great citizen of this country,
Secretary of Commerce, Herbert
hoover, once made:
“ Where the objectives of co-opera­
tion are to eliminate waste in pro­
duction and distribution, to increase
education as to better methods of
business to expand research in pro­
cesses of production, to take collec­
tive action in policing business eth-
*Cs> to maintain standards of quality,
to secure adequate representation of
Problems before the Government and
°ther economic groups and to im­
prove conditions of labor, to nego­
tiate collectively with highly organ­
ized groups of labor, to prevent un­
employment, to supply information
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69
equally to members and to the pub­
lic, upon which better judgment may
be formulated in the conduct of bus­
iness; then these activities are work­
ing in public interest.”
On another occasion, Secretary
Hoover’s
Department made this
statement:
t
“ The trade, association as a facility
for the promotion and self-regulation
of industry and commerce has be­
come by reason of its scope and ac­
tivity, an important business institu­
tion.”
Better even then Mr. Hoover’s
words, however, is the encourage­
ment and the active assistance which
he has given trade associations ever
since he entered the President’s Cab­
inet. He has done more by far, than
any one man, to make the trade as­
sociation movement the force for
good that it is today.
No better illustration o f the use­
fulness of an association can be
offered than its leadership in pro­
tecting an industry against any prac­
tice that might impair public confi­
dence in its product.
The importation of foreign steel,
simply to save a few dollars in the
first or initial cost, is a point in ques­
tion. It is not because of its foreign
origin that the use of imported steel
should be opposed. There are con­
ditions which surround its use that
are well worth considering.
American structural steel is made
to conform to certain specifications
that are universally used in this
country. They prescribe its chemical
composition and mechanical proper­
ties which are determined by stand­
ard physical tests.
The uniform
quality and dependability of the Am­
erican product is an important factor
in the building industry.
Foreign steel is made to conform
to foreign standards that are not ac-
sceptable to us. When manufactur­
ers abroad do attempt to produce a
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70
T he A
u t o m a t ic
steel conforming to our standards it
is a special and unusual undertaking
which naturally results in a certain
lack of uniformity -in quality, and re­
sultant undependability in service.
When this condition confronts us,
the source o f supply is too distant to
rectify quickly the errors.
It is admitted that a lower price
certain apparent inducements for the
use of foreign steel. These induce­
ments, however, are not valid or
sound for several reasons other than
the element of quality. The use of
foreign steel in considerable volume
will naturally affect American pro­
duction in the form of a restricted
output. A disorganized and dis­
turbed market will follow. The in­
evitable result will be an undepend­
able supply of domestic steel as to
quantity.
The speed with which the Ameri­
can building industry operates is
based upon a dependable service of
supply. The foreign sources cannot-,
for obvious reasons, render this ser­
vice either as to quality or delivery.
If the building industry, having be­
come dependent on foreign steel,
should be confronted with a restrict­
ed supply insufficient for its needs, the
industry would have to turn to the
American mills. The price o f Amer­
ican steel would then immediately
advance and deliveries become uncer­
tain. This condition would entail
loss to every bi'anch of the building
industry.
The unprecedented volume of
building construction during the past
few years has been the result of two
things; the shoi'tage of buildings of
every kind and the stability of the
material and labor market. To fool­
ishly disturb these ' conditions, espe­
cially as regards a basic material
such as steel, would immediately re­
act as stated, on the entire building
industry. This would entail much
larger losses to all producers o f ma­
terials of construction, and to labor,
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than the present really paltry differ'
ence between the cost of foreign and
domestic steel.
The fabricators, who are distrib'
utors or users of steel, should care­
fully consider all of the conditions
imposed by the use of foreign mate­
rial and should promote the use of
the product of the American mills?
thereby maintaining the present
stabilized conditions.
The American Institute of Steel
Construction was organized
f° r
much the same reason that these
other associations were organized —
that is to combat outside competi­
tion. Our problem is that of the
'market. The use of steel has not
increased as might have been the
case. The public have been educated
to use substitutes that neither pos­
sess the merit nor the permanency
that steel affords. There are many
instances where steel could be used
profitably yet these uses will never
just happen. Plans must be de­
veloped that will create interest and
win acceptance.
Efficiency
in production
and
finance are the result of painstaking
effort, calling for investment of time
and money. The market requires
just as much attention and it re­
sponds with greater returns and as­
surances of better business condi­
tions. But the steel industry, partic­
ularly the branch of it with which I
have the honor to be associated—-the
structural steel industry—has been
making great progress since we rec­
ognized our problems four years a g °
and organized the American Insti­
tute of Steel Construction.
Six American, two Canadian, three
Spanish, two French, six Italian, five1
Belgian coins, one German mark and
a street car pass between Philadel­
phia and Wilmington, Delaware,
were found in a collection taken at
St. Patrick'sCatholic Church in Lon­
don.
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