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NE , THE OSHAWA DAILY REFORMER, THURSDAY, APRIL 22, 1926 i 8. C. Plant + ~ Situation Is ia, pT Bhare Avie of City De vent, If Possible, Oshawa"s dustry From Practically Closing' Its: Doors Never in the history of mahy of the old' timers of 'this ci y any crowded into the Armories for'a 'public meeting night for the purpose of hearing speeches on the it: uation which how faces Oshawa as a result of 'the changes in the ' tariff. A large numbér of women Were also present from Toronto have so on Ta and Leaside as well as this city, with the delegation which represented Dodge Brothers, the Durant Motor 'Car Company and the Willys-Overland industry, e delegation assured the large audience they were with Oshawa and would be sending a large number of representatives to om the dutsid Ottawa on Friday, . Mayor Robert D. Preston who acted as chairman,' repeatedly warned 'the audience of difficulty to transport such a large dele: gation from Oshawa to Ottawa and return in the course of a few hours and urged them all to sign the petition in order that the Transportation Cominittee 'would be able s required. Citing the Provincial-wide in- yor Preston referred fo a wire he had re- ayor Foster of Toronto announcing that he and his Controllers 'were going to the Capital, Hamilton' where the Mayor, Controllers and a large number of workingmen will go on special trains, It was to be an orderly gather- ing, Mayor, Preston warned, and upon arriving in Ottawa they would hold a meeting at 10 o'clock in the morning in the Keith Theatre. "We are not going to present any # train scppmmodation. was w terest in the program, ceived from great solution but will only ask the Government to take the matter in hand and give it their carnest consideration. We feel this case has not been pro- perly presented and when it is, it will have an altogether differant face," Mayor Preston declared. "Fellow e¢itigens and fellow work- ers I was asked to come here to make a hrief address regarding the present situation," stated 'R. 8, Me- Laughlin, president of General Mo- tors of Canada in opening his ad- dress. 4 1 that of people out to me number has been there pointed are a here who think the action of the Company in closing. was a gesture or only a bluff, but in an. article I prepared for The Reformer I stated emphati- cally our pesition. Those who know our organigation intimately know that without billing prices we could net possibly continue to manufac- ture and have the motor cars pile up. It was necessary to take quick action to see what policy we would pursue. We do not know positively where we are at and we are a long long way from a solution. After examining the changes in the tar- iff, and I believe it is a fair state- ment to make, that the tariff is poorly constructed. The details have not been worked out. Even today the Government is at sea and are ignorant of many of the important rulings. I suppose you all noticed Saturday." Mr. Mclaughlin then read from a copy of'the ruling which was pub- lished in The Reformer on Monday. "We had a representative ask tor a new. ruling on Saturday morning and this is the result," he stated, holding up the copy of the ruling. "I will refer to it so it will open up a vista of the other rulings se 1 won't have to refer to it again. This ruling allows tops, chassis and complete bodies to come in under the 20 per cent. clause on cars cost- ing less than $1,200 and 27% per cent. on oars costing more than that. I am looking into the faces of many of the workers of General Motors and I want to say how it affects you. 'When I cite this one instance you will see how long it will take to get three, four or five thousand rulings before the tariff really becomes operative, They pro- pose to allow us to bring in chassis, tops and wheels at 20 per cent. and we can bripg in the complete cars at 20 per cent. Before the ruling went into effect 'the duty was 35 per cent. 1 say to them we don't want any finished bodies. We want to bring them in the white... We want lo give you mien work. "I have not seen any ground to _ change what I said in The Reformer other day. Unless the tariff is changed that it will' be more workable ere 18 no option left for us but to liquidate our stocks and import om the United States almost all of At this juncture Mr. McLaughlin was interrupted by the arrival of a delegation from Toronto repres- enting the employees of Dodge Brothers, the Durant Motor Car Company and the Willys-Overland. in resuming his speech Mr. Mu- Laughlin said one peint on which great stress had been laid is the proposed rebate of 25 per cent. on parts of cars of which 50 per cent. is manufactured in Capada. Our export business has developed rap- Jy and is 45 per cent. of our busi- ness. There fis a drawback on duty paid of 99 per cent. and this 99 per cent. runs into a great deal of money. It took a long time to get the custom: organization to fume- tin smoothly and while getting the organization perfected the Govern- meant held of our money 2% millions of the rebate and mever have mow Jess than a million even with a smooth organization. The practice is to set the schedules at the beginnin« of the season,' for instance, August 1, and the basis of the drawback the | "out of business. , Armories to Packs ¢ uge nadia In- e women from Toronto arrived Speakers to, 'determine what Another 'wire was read from is worked out, At the end of 80 days they remit 75 per cent, of what we are entitled to and hold 26 per cent. each month until the season closed, "Our controller and his assist- ants gat busy on this clause when the details were available and re- ported to me they considered it un- workable, They told me it would take from 1% to 2% years to get a new: ruling handed down by the Customs department about noon on oa competent organization at the Customs and a terrific staff of clerks in our own office to work on an almost hopeless job." Mr. McLaughlin then told how it was worked and cited the Me- Kinnon manufacturers at St, Cathar- ines who make parts for the rear axles of the Chevrolets. A repre- sentative would be sent to the Mc- Kinnon people to find where they obtained their forgings he would be told Welland. The representative would then find from the Welland concern where they obtained the steel and then it would be necessary to learn from the Hamilton concern where they obtained the ore. "Ast. this has to be done with each item and there are 278 parts in the axle you can see what a job it is," Mr. McLaughlin stated. The statements are to the office here, he said, where the claim is compiled and then the Gevernment begins to check it. It would cost 50 per cent. of what they would get out of their claim to get the claim prepared. "Unless something is done cannot carry on reiterated Mr, Laughlin, "We don't want our suppliers put They have helped Tus and we have helped them and we don't want to see the duties so low that they can't supply us and we must have suppliers or become a mere assembling plant. We have heen trying to buy all our parts in Canada and have been successful and have had wonderful co-operation from our suppliers. We don't be- lieve there is any reason to hurt anyone. I am not making a poli- tical speech or eriticizing the gov- ernment but am only making a few remarks on the tariff which 1 be- lieve is not fair and just to anybody. Some think the motor car industry is on the defensive. It is not on the defensive, There are wild state- ments made in Hansard. One mem- ber from the West in. referring to motor cars, quoted a lady who made a wild speech at Toromto that Can- adian cars are sold cheaper in Aus- tralia and England than they are in Canada. That is mot correct. There is no country in the world that is enjoying so low a protection as Canada. [1 believe that through the Tariff Beard it is possible to work out a scheme satisfactory to everybody and give employment to the finest men God ever produced. We want to see them increase in opportunity and mot go across the line., All we want is a chance and that jis British fair play." Mr. McLaughlin then cited various statistics outlining the different duties in various countries. In his closing remarks, he said, he did mot believe what had been done had been done for spite and hoped the Go id see the error of their ways before it was too late," stated Mr. McLaughlin. "A government that will stand up for the goods of its country will see that its own goods are manufactured in that country," stated Joba Stacey. "There 15 not any reason for sending untold millions of dollars across the line. As far as protection is concerned 1 would probably go too far, but in the interest of all concerned it would be better to double the qanff on goods entering Canada" a Air. Stacey in the course of his ad- dress declared that a man would have wo hesitation in buying a home af he was assured of protection by the Gov- crament and there was no reason why 1 nan should come up' 10 the last day | then taken we Mec- f « BIG PLANT THAT MAKES OSHA WA A HIVE OF INDUSTRY General Motors of Canada Limi ted which employs over 8,000 men, cloged if present budget is finally adopted resulting in enormous loss awa and those of many other com munities which would be divectly This plant is in danger of being and hardship to the people of Osh. affected, without a home over his head. "We can b¢ wiped out by an carth quake or a voleano, but it is a different thing to be wiped out by legislation," opined Alderman Ernie Marks. The speaker said he was like other citizens he had come to the city, purchased his home, built up a ligitimate business and now he stood ready to sce it all wiped cut of existence before his eyes. "If Oshawa 'is so situated a week from today as West Toronto is to night, then God help Oshawa," stated KR, 15. Trimble, purchasing agent foi Dodge Brothers Motor Car Company. There are a lot of people walkin around the streets in West Foronte tonight without work and wond: how they are going to feed their ed ones, but every man possible should en- deavoreto get to Ottawa on Friday and if we cannot do something, then there is something radically wrong with the men of industry," concluded Mr. Trim- ble, T. 43. Mitchell stated he never saw the citizens so uhited in their efforts and behind the Council and the General Motors as they arc now, The tariff as it now stands places an impossible position upon the motor industry, he said, and if the Motors Plant closes every insti tution will have to with it, My Mitchell was satisfied the Government woulgl he forced to Qo something if the deputation was larg ene oth. PART MAKERS SAME AS CAR PRODUCERS Declares T.. A. Russell Discussing the Tariff on Motor Cars close Toronto, Apr. 22 Tet me as sure yon from the beginning that there has been no bluff, no politics and no stage play in the plans of the motor manufacturers as they have heen announced up to today." This vigorous assertion formed part of a statement by T. A. Russell, resident of the Automotive Indus ies Association, which opened dis- cussion of the new moror rariff at 2 nreeting of 200 parts manufae- turers from Ontario and Quebec yesterday. His main additional point lay in an assurance that the motor manufacturers had made no overtures nor entered into any dis cussion with Ottawa on the guestion of reducing the tariff on their ma- terials. "I hope to discuss dispassionately, critically, and with am appreciation of the diffi culties confronting the men who carry on the government of the country," he remarked as hoe com menced with a review of the events leading up to the present situation. The manufacturers, he said, had known that a general discussion of the motor - tariff was in progress preparatory 'to announcement of the budget, and had sent out guestion- naires to obtain data regarding the industry. Feeling that the pressure on the government was great, they had approached Ottawa, making one appeal: that if the tariff hoard were to be appointed they he allow- ed to submit their case to it before any change in the duty was made "staggering Blow" Announcement of the budget changes had come as a staggering blow. The reduction in the motor tariff was probably the greatest single cut in the history of the coun- this question not "There have since been sugg tions made to us from various quar- ~ - LO. CLAFFORD, Ex-M.P. Former member of Parliament for South Ontario whe has spent much time in Ottana helping to preseat Oshawa's case to the Government. He will be with the big delega- tion on Friday. ~ ~ "rhe Canada for domestic sales alone will | ys THE LATE Who from very company of his two sons, ated ino the immense Canada Limited, © mploying over throughout the years was, "one Messrs, RB who said, 'If this hurts too much, if you feel that you cannot carry on under it, to us and we will talk about the duties on your raw But we have made only one reply: that, while it mizht be all right fd; others outside our own industry to fix the tariff upon it, we wee prepared to discuss the duties on industries other than our own." He pointed out that 83 articles in the Canadian tariff went into the production of motor cars, azd thal the new changes jwposed a higher duty on the raw material than on the finished product, and that it would be easy for American motor firms to withdraw their Canadian branches if that proved the more profitable course, ters by people come "You are confronted with two questions," he said: What zood will it do you to have per cent. duty on an have nowhere to sell it? Or on the other hand, are we zoing 0 bring the duty on 83 articles down to 20 per cent?" Motors," said Mr. Rus sell, "had come to the conclusion that under the tariff reductions they would have to import Chevrolet cars and would not make them in Can- ada." 2 35 if you "General Fine Export Trade "With the manufacture of Chey rolets there goes out of this country the fine export business built up in the export of these cars. making of automobiles in never be successful without a cor- elated big export trade. Our ex- port trade is mostly within the Bri- tish Empire, on which we get tha benefit of the preference. To gel this we must meet in an increasingly high qualification percentage of Canadian manufacture. To get this we need you, men who make parts, supplies and materials in Canada. Our interests are one. 1 hope that surely some way will be found to save both branches of the industry for Canada." IT WOULD BE GRAXD --If we could think of the things at the time that we think of the next day. --If the other driver always did the thing we expect him to do. --If we were willing to estimate our wealth in terms of the things money cannot buy. --if our bheys would only thinking we were heroes. --if someone would discover how to finish' a house inside the or- iginal estimates. --4f working clothes could make a man feel as important as lodge regalia does. --f the bridal couple showing each other the sideration '0 om could go on same, con- modest beginnings over in Oshawa, which later, under automobil reducing | materials." | not | article | PIONEER IN ONTARIO INDUSTRIAL LIFE - fa MeAUGHLIN fifty years ago, built up the big his direction and and G. W, Mel, industry of Gom 3,000 men. Me. Me poral Ma s motto grade only and that the best," {CENTRAL SPRING COMPANY SUFFERS Lo» epee ff W. T. Sampson, Ontario Steel Products, Ganaoque, Issues Statement THREE FACTORIES Two-thirds of Products Are Sold to Automobile Manufacturers vice-president, of the Ontario T. Sampson, general manager, Products Company, Limited, wanoque, of which the Central Spring Co., Oshawa, is a subsidiary, has issued the following statement on the tariff changes: "1 have been asked to make a statement in regard to recent bud- get as applying to the Ontario Steel 1 Products Company. "The proposed changes in duties on Motors cars must be viewed di- rectly and indirectly. "1. As applying to our business "on the basis of present »ro luction. As applying to our customers. [ '3. As applying to those to whom our customers sell their products. "In regard to the first, it is sim- ply a statistical calculation. Two- thirds of our products (springs) are sold to the motor car manufactur- ers. The tariff on springs is 35 p.c. Now, under the clause. permitting the automobile maker to obtain a rebate of 25 p.c. on imported pacts, our protection automatically de- clines to 26% p.c. Our profits om motor car springs has always been small, so if we still continue the same saving as formerly to our eus- tomers this margin of profit will be- come almost negligible. At the same time if our volume of buSimess con- tinues as large as formerly, or tak- ing the optimistic view, increases, we could still earry on. "We have three factories, ome im Gananoque, one in Oshawa, and one in Caatham practically entirely eom- fined to the manufacture of and truck springs. Our invest in this industry amounts to ap of one million doliars with app mately 500 emplovees. "As lo our cusiomers -- T must speak for themselves. Their infentory losses will be enormous, and I view their position with graye alarm und vith rather a superticidl knowledge of their, profits jn wer- | ious instances, am inclined to think -jaey will dind it difficult, jf not im » a Worling Men[of City Organize To Prevent es Being Wrecked Authorize Mayor to Arrange Mass Meeting for Tuesday Night to Appoint Committee to Se- "lect Six Delegates Labor at the to Wait on Minister of apital -Mayor Horsfall, Len- side, Says Leaside Will Join Delegation Following action by the City Council Saturday when more than #00 telegrams were sent to towns, cities and manufacturers throughout Ontario, asking them to join a mass delegation to goto Ottawa in an effort to hring ab Sunday afternoon calle change in the tariff, Mayor R. D. Preston on a meeting of working men to decide what action should be taken in Oshawa which is so seriously affected by the drastic cut in tariff on imported cars, About five htindred attended although practically no publieity had been given to the meeting and it was unanimous that there be no delay in appointing a delegation from this eity to wait upon the Minister of Labor and present Oshawa's case. Mayor Priston was instructed night to be held in the armories LJ to call a mass meeting for Tuesday at which the working men of the city will appoint a committee of twelve to select a delegation of six able representatives to go 10 Ottawa, There was no hiding the general feeling that unless something were 'done immediately Oshawa would suffer greatly and the result such that every home in the city would be affected. Mayor Preston in addressing working men, "It is beyond any the meeting urged action by the human being in Oshawa to realize what would be the result if the tariif# were not changed, It is an assured fact that the heads of industries are not joking or bluffing. I would sug- gest that you get facts and figures and go before the Minister of Labor, he- cause he is the one who represents you and handles the labor problems. "1 have received inside information on the situation and personally 1 pro- pose to do everything | can. | went to Ottawa on one occasion and was as- sured that nothing would be done to interrupt industry, but if has been done. The mecting this afternoon is for the purpose of conveying to yon this situation . It is not cleared up by any means and everything shonld be done," Mayor Preston stata: The Mayor asserted that it was un fair for any goverment to let any industry grow up and then chop it off, "It is not a political question," he said He felt that a real effort should be made to give the working men of On- tario a square deal. "We don't want any raising a shot gun or rovolution but 1 believe if we press the case and then something is not done we have 10 devise some other plan, "I would like the workingmen to go back to work tomorrow morning feel ing that the situation is still critical and that a mass meéting be held as soon as possible," Leaside will do everything possible to al in bringing the seriousness of the situation to the attention of the | Governine nt, stated H. Horsfall, mayor of Leaside and general manager of the Canada Wire and Cable Company who came to the meeting after learning what action Oshawa was taking. M ayor Horsfall i, wi Mayor Pres- ton's telegram last night while the Lea- side Council was in session. Leaside is in the same position as Oshawa although not I to such a great extent approximately 75 per cent of the employees being in the mo- tor industry, Mayor Horsfall remark- ed, adding that the Durant Motor Car Company was in the same position as General Motors amd they were willing to send a deputation along with a de- putation from the city, In concluding his remarks the Mayor of Leaside said. "We will agree to whatever you de- cide to do." The Mayor advised the gathering to be careful in the selection of men and to have all facts and figures preparcd, Several members of the audience took part in the discussion all of who declared it was a severe blow to the manufacturer and working men, In closing the meeting Mayor Pres- ton said that the citizens of the city should take no notice or rumors that the situation has been cleared up. As soon as he made such a statement they Jeol accept it as authentic, FROM NEW BUDGET OVER 200 MEN re THIS PLANT WORK ON MOTOR CAR PARTS These men employed by the Pedlar People, another of Oshawa's old established industries will be thrown out of work if General Motors plant closés its doors. The Pedlar People have an enormous. invest- ment in special machinery for stamping fenders and other sheet metal parts for motor cars. possible, to continue on a profitable basis, if at all. Certainly the estab- lishment of any new companies or expansion of any of the existing ones on a 20 per cent. tariff is in- conceivable. "Lastly, and perhaps most im- portant of all is the dealer's posi- tion. At the peak of the season they find themselves loaded with cars--new and "used" that have de- preciated, as it were, over night 15 per cent. or more, A few motor car dealgrs are prosperous -- some having making a fair living, but many of them are on the point of insolvency. Their loss on new cars can be figured in 3 moment-- being simply the difference between the old and new duty. The loss on "used" cars is not so easy to deter- mine, but will be larger in pronor- tion. For instance, a used car t was worth $500 a week ago would not likely bring over $350 today as depreciation on a used car under de- clining prices is always greater than on new cars. These losses on new and used cars will bear most heavily upon the small dealer in the rural sections--due to the backwardness of season this year and comseguent inabiliy to deliver cars actually to the ultimate consumer. Unless the Government plan to compensate the dealers in some way many, will be forced into insolvency many of the sources for the op but think that this proposed legislation will have a most disas- trous effect upon the whole trade. and that if the budget is passed 'in its present form a body blow will be dealt to an industry that has for 50 many years heen the bright spot in Canadian wanufacturing and mercantile activity. "From above you will see it would be impossible to forecast what proposed tariff changes would ultimately mean to my company. W. T. SAMPSON, Vice-President and General Man- ager, Ontario Steel Products Com- pany, Limited. Gananoque, 17th April. FORESTS AND BEVEAUE The direct revenue received by the Federal and Provincial Govern- ments from their forests in the form of rentals, royalties, stumpage charges, ete., amounts to $14.000.- 000 anually. In addition, the wood- using industries contribute through property, i and other taxes a large proportion of municipal, provincial, and federal revenues, The standing timber in Canada is estimated to be worth over three billion dollars, mearly one-half of which will be paid over to the Gov- ernments if the asset is preserved. For generations past, the forests of Canada have borme more than their just burden in supporting pub- lic expenditures. As a result, they have been severely depleted. They cannot longer stand the exorbitant drain camsed by extravagant use and entirely inadequate protection. IN THE KEY OF "DOUGH" Ben--Was there a wedding at Smithson's last might? I heard the strains of "0 Promise Me)" Eben--""Nope; Baurtkins was just borrowing five from Smithson." Ps BETTER FIT - V"Phat's a fine dress suit, Harold "Yes, I don't rent from the same people mow."