• U.S.

CORPORATIONS: Joining the Enemy

2 minute read
TIME

In the U.S. watchmakers’ long fight for a high protective tariff on Swiss watches, none fought harder than Elgin National Watch Co.’s President James G. Shennan. But when Harry Truman vetoed boosts of as much as 50% recommended by the U.S. Tariff Commission last summer (TIME, July 14), Shennan knew he was whipped. Last week, in a statesmanlike manner, he conceded it. He still did not agree with the President’s decision, said Shennan, but “we are aware that [it] reflects a widespread belief that a reduction of tariff barriers will further the interests of world peace. However much it may distress him personally, no responsible American can deny the general wisdom of such a policy . . .”

Shennan had an equally statesmanlike answer to his company’s problem of foreign competition. If he could not compete with cheaper Swiss watches and movements, Shennan reasoned, then he would have to diversify his company’s production, make additional products which he could sell profitably, develop research to make others. For two years Shennan has been preparing his course by acquiring other companies, such as Kentucky’s Wadsworth Watch Case Co. and Rhode Island’s watchband-making Hadley Co., which also makes cuff links, tie clasps, etc. Elgin itself is importing Swiss movements for Wadsworth cases, and making compacts, emblems, and product name plates—plus $23 million of defense orders. Result: Elgin’s 1952 sales are estimated at $50 million, v. 1950’s $30.2 million.

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