on both war and normal production a total of 434,177 man-hours per week. Of this total, 118,019 man-hours per week were concentrated on war production. If, as we believe to be the case, this group of concerns is a typical cross section of the industry, this would indicate that the industry was 27.18 percent converted to war production. We believe that there has been a steady increase of this percentage since this survey. We agree that as far as the war effort is concerned this industry's products may be classed in the nonessential category. We shall attempt to prove, however, that the production of some of its normal products during this transition period is essential to preserve the war work in which the industry is now engaged. War Production Board orders, now in existence and under consideration, point to the fact that the time in which the industry can manufacture its normal products is strictly limited by virtue of the existing restrictions in the use of practically the only material available to the industry at this time; namely, silver. Silver conservation order M-199 of the War Production Board completely shuts off the use of foreign silver by the industry on November 15. Regulations of the Office, of Price Administration have the effect of generally preventing the use of domestic silver by the industry by disallowing the industry to adjust the prices of its finished product, when, because of War Production Board orders, it has been forced to switch from the use of foreign silver costing 35% cents an ounce to the use of domestic silver costing 71.11 cents per ounce. Senator CLARK of Idaho. Do you mind being interrupted? Mr. INGLEBY. No, sir. Senator CLARK of Idaho. Some people prefer to complete their statements before being interrupted. Mr. INGLEBY. That is perfectly all right. Senator CLARK of Idaho. Now, that is exactly the point. They have got you right smack between the pincers, haven't they? Mr. INGLEBY. Except I would like to go a little further, Senator, that we do not believe that that would correct the situation, because we have been advised by our suppliers that this newly mined domestic silver which is available today will very shortly be used entirely in the war effort and not be available to us much longer. Senator CLARK of Idaho. Why would the O. P. A. say or what reason could they possibly give for putting a ceiling on sterling silverware? Mr. INGLEBY. Well, I don't think I know enough about the O. P. A. regulations to answer that. That was the ceiling they put on it. Senator CLARK of Idaho. I am very curious. It occurs to me that silverware, sterling silverware, although a very highly desirable and fine thing, is certainly in the luxury class, and a very desirable luxury class, and one that has had an honored name throughout our history. But, why O. P. A. would want to put a ceiling on the price that the comparatively well-to-do people would have to pay for sterling silver is just beyond me. However, your further point is that even if this silver price were raised, that you would soon be out of the silver market, the domestic silver market, because of the need for war purposes. Mr. INGLEBY. That is the information I have from our source of supply. Senator CLARK of Idaho. Go ahead. I am sorry to have interrupted you. Mr. INGLEBY. It can readily be seen that after November 15 the number of man-hours now being worked by the industry will be reduced by approximately 70 percent, since only 27.18 percent of its present man-hours can be worked. This volume cannot maintain an industry on a self-sustaining level. To achieve a self-sustaining level for the industry after November 15, or even to reach a point of diminishing losses, it would be necessary for the industry to work an additional number of man-hours beyond the amount now worked on war production. The amount of additional volume necessary must be sufficient to either place the industry on a self-sustaining basis or at least to diminish the losses to the point at which such losses could be absorbed by the industry. If action is not taken to correct this situation, most members of the industry will face a shut-down and the Government will suffer the loss of the industry's present war effort. The proper answer to the above is, of course, the raising of the degree of conversion from 27.18 percent to a point where the industry is on a self-sustaining level. Every effort is being made and will continue to be made to do this. We would be happy to outline these efforts to you but for the sake of brevity we will refrain from doing so unless requested. If this gap between a 27.18-percent conversion and even a percentage necessary to put the industry on a self-sustaining level is to be bridged, the industry must have, while it strives to obtain a sufficient volume of war production, needed quantities of silver. We believe that it would be against the best interests of the war program, if we did not come here to favor a bill, which, to preserve vital war production, would make available to the industry a metal not wholly required for war production and in the use of which, for the purposes herein outlined, the war program would not be jeopardized. Previous testimony on the silver supply situation, with which we completely concur, has covered our reasons for so believing and therefore we will not discuss this point at this time. We realize the need for the War Production Board to issue a restrictive order on foreign silver and we believe that the requirements of silver for war production will eventually consume all the silver, both foreign and domestic, currently being imported and domestically produced. If this be the case, and this industry can solve its problems as outlined above with a sufficient quantity of Treasury silver, then, gentlemen, we seek the approval of this bill which we believe would authorize the Treasury to sell silver held by it for this purpose. We feel it only sound for the Government to make every effort to protect the war production now in the industry and, in addition, protect those manufacturers who have invested well over a million dollars in their conversion program by giving the industry additional time to convert. This can be done only by allowing them the use of sufficient quantities of silver which we believe to be a truly noncritical metal. In the problem of conversion to war work, most manufacturers find it necessary to convert both machines and workers and are confronted with the problem of obtaining war orders which, in most instances, are nonrecurring and which require "fill in" production during waiting periods for new orders and tooling or material deliveries. We have carefully examined this bill and are convinced that if enacted it would make possible the preservation of the vital war work in this and other sections of the silver-using industry. For these reasons, we desire this legislation; we ask your support of it and a favorable report on it by this committee. Senator CLARK of Idaho. Let me ask just one more question, please. I am not at all certain but what this bill as originally drafted, with some slight modifications, might not be all right. Suppose this bill with the words "in connection" on line 10 remained in and not taken out, and the words "not inconsistent" not substituted for it, in other words, the bill as originally drawn and the W. P. B. recommendation for modification enacted, and then suppose after that enactment, and after the Treasury had power then to use this silver directly in the war work and W. P. B. would rescind its order on the purchase of foreign silver, let you have the foreign silver and they used the domestic directly in the war effort, do you think that would take care of you; that that would be enough? Mr. INGLEBY. I assume that that would accomplish the purpose. Senator GREEN. May I interpose a suggestion? It does not necessarily follow that the foreign silver would be sufficient, because the production of foreign silver is falling off. Senator CLARK of Idaho. Well, that is what I asked, whether in the opinion of the witness it might not be sufficient. Senator GREEN. I think the witness means if it continued at the present rate. Mr. INGLEBY. Yes. Senator GREEN. Well, there is no such assumption possible. Senator CLARK of Idaho. That would allow all of the free domestic silver to go directly into the war effort and still allow you to go into the market. Senator GREEN. There is the possible contingency of the falling off of foreign silver, however. Senator CLARK of Idaho. How much of your industry do you estimate would be converted to war work in another year, say? Mr. INGLEBY. That is very difficult to state, Senator. There are many of us that have a fair percentage of war conversion, but with some of the smaller industries-and we have some very small ones with 6, 8 to 10 to 12 people-it has been very difficult, and we have been trying to work out a program where some of the larger manufacturers would take contracts and spread them out among the smaller industries. We have just reached the point where we are now starting to work with the Small War Plants Corporation, and they have just about begun to function. However, it is very difficult to answer your question. I could not answer that, striving to reach a percentage where we will be on a self-sustaining basis. Senator CLARK of Idaho. Let me ask you this: Of course, if silver gets as tight as all of your collective testimony indicates it might, you are not going to get any relief under this bill either. Mr. INGLEBY. That is right. Senator CLARK of Idaho. So as long as there is available silver, it seems to me if you could be permitted to come into the market, you could sustain yourself, and when silver becomes unavailable, whether this bill becomes law or does not, you would be out anyway. Mr. INGLEBY. Yes. 78102-42-5 Senator CLARK of Idaho. Reverting back to a previous question on selling price, now, suppose, in addition to that, at least, raising its selling price to allow you to take care of that spread by increasing the price to the consumer-suppose we pass a short little bill giving the Secretary of the Treasury power to use this free silver for strictly war purposes, wouldn't that solve your problem? Mr. INGLEBY. I would like to answer that question this way: I would like to inject, Senator, that I represent the manufacturing jewelry industry and not silversmiths. Those points are well taken, but we have been continually spending sizeable amounts of money for small industry in the conversion program, and we have reached the point whether it is advisable to continue that process by breathing spells of 30 days or more; in other words, if we were going to see a period during which we could continue some normal production, even to a limited extent, that would help us in this conversion program, and that is entirely satisfactory, but a bill that would only tide us over 30 days or 60, would be just another expenditure by the industry, which perhaps they would be better off not making. Senator CLARK of Idaho. Well, I had in mind a bill which would last for the duration of the war which would give the Secretary of the Treasury and the W. P. B. authority to use all of the free silver in the Treasury for war purposes. Then that would release to the silver trade all domestic silver, newly mined domestic silver that they could get in, unless the Government used all of the silver in the Treasury and all of the newly mined domestic silver. Then I had in mind taking off those ceilings to such an extent that you could buy your silver at 71 cents an ounce and sell your product at a profit. Then we would preserve our principal and take care of you people. Of course, you know, and it is no secret, the Secretary of the Treasury has very decided views on this matter and has so expressed himself. He is not only entitled to that, but I imagine that 90 percent of the people here would agree with me. But, nevertheless, wouldn't that solve your problem? 1 Mr. INGLEBY. Well, I am not a specialist trying to handle a bill, Senator. You may be right. But I would assume that such a b'll that might release that silver would not necessarily mean that the War Production Board would have to use it. Senator CLARK of Idaho. It would be turned over, though, directly for war purposes rather than turning it over for commercial purposes. Mr. INGLEBY. Yes, but we base a condition to it where the war effort is using 35-cent silver and we are attempting to use 71-cent silver. Senator CLARK of Idaho. But I am suggesting either that they give you permission to use that 35-cent silver and they use the 71-cent silver that they have in the Treasury, or that they make you buy the 71-cent silver and raise your ceilings and let you make a profit with the 71-cent silver. Then we can pass a bill authorizing them to use the free silver in the Treasury for the war effort. Now, as I say, whether this bill becomes law or does not, you would be out anyway. I frankly think with the O. P. A., acting that way, and the W. P. B., acting that way, that you have got a very just cause for redress right there, but I do not know anything about that. Thank you very much. Senator MALONEY. Thank you very much, Mr. Ingleby. Senator Green, representatives of the Navy and the War Production Board are here, and while I am ever so anxious-and I assume that the committee members are, to complete the hearing on this bill this morning and it is always morning in the Senate until it gets dark-I would like very much now to hear Rear Admiral T. J. Keleher, who represents the Secretary of the Navy, and thereafter the representative of the War Production Board. EXHIBIT NO. 1. Members of the New England Manufacturing Jewelers' and Silversmiths' Association Number of employees August 1941 Associated Attleboro Manufacturers, Inc., Attleboro, Mass_ Attleboro Refining Co., Attleboro, Mass L. G. Balfour Co., Attleboro, Mass H. F. Barrows Co., North Attleboro, Mass_ Bates & Klinke, Attleboro, Mass. Geo. F. Berkander, Inc., 891 Broad St., Providence, R. I_ Monroe Block Co., 45 Richmond St., Providence, R. I.. Brier Manufacturing Co., 222 Richmond St., Providence, R. I.... Brown & Mills, Inc., 100 Stewart St., Providence, R. I_ Bugbee & Niles Co., North Attleboro, Mass Bullard & Pickering, 40 Clifford St., Providence, R. I C. & G. Manufacturing Co., 61 Peck St., Providence, R. I. Carl-Art, Inc., 95 Chestnut St., Providence, R. I___ A. & Z. Chain Co., 116 Chestnut St., Providence, R. I.. American Jewelry Chain Co., 75 Eagle St., Providence, R. I_ American Standard Watch Chain Co., 85 Sprague St., Providence, R. I.. Armbrust Chain Co., 95 Chestnut St., Providence, R. I. E. H. Ashley Co., Inc., 509 Westminster St., Profidence, R. I.. Augat Bros, Attleboro, Mass. B. A. Ballou & Co., Inc., 61 Peck St., Providence, R. I. Beacon Jewelry & Novelty Co., 7 Beverly St., Providence, R. I. S. O. Bigney Co., Attleboro, Mass_ 18 110 4 15 47 34 70 400 128 18 155 21 15 722 170 51 25 8 441 66 30 45 Bliss Bros Co., Attleboro, Mass.. Bridgeport Brass Co. (branch office), 70 Clifford St., Providence, R. I.. 148 42 7 800 5 25 15 25 31 50 125 Chase Brass & Copper (branch office), 301 West Exchange St., Providence, R. I.__ 14 Cheever Tweedy Co., North Attleboro, Mass. 46 Clark & Coombs Co., 162 Clifford St., Providence, R. I.. 70 Clayton Manufacturing Co., 226 Eddy St., Providence, R. I Cook, Dunbar, Smith Co.. 85 Sprague St., Providence, R. I. 35 E. N. Cook Plate Co., 70 Ship Street, Providence, R. I. 41 Dieges & Clust, Abbott Park Pl., Providence, R. I.. 70 Calvin Dean, Inc., 222 Richmond St., Providence, R. I.. 100 Dickson Manufacturing Co., 150 Chestnut St., Providence, R. I.. |