TIMKEN-DETROIT AXLE PRODUCTS FOR TRANSPORTATION, FARM, AND INDUSTRY

Rear driving axles for rucks.-Everything travels all or part way to market by motortruck. America's economy is dependent on the trucks which carry approximately 60 percent of the total tonnage moved in the Nation s commerce.

Front driving axles for off-highway trucks.-Developed originally for military vehicles and later adapted for commercial trucks, front driving axles provide the additional tractive effort required for off-highway operation.

Transmissions and final drives for self-propelled combines.-Self-propelled harvesters and other types of self-powered farm equipment are coming into widespread use in agricultural areas since they can be operated by one man and release tractors for other farm duties.

Two-speed axles for trucks.-Trucks are a vital transportation service, but they are more than that. The trucking industry gives direct employment to more than 5,000,000 workers-more than all other forms of transportation combined. Lift truck transmissions and final drives.-Work savers in every phase of manufacturing are the lift trucks and fork trucks which speed the handling of materials and assist in the flow of production throughout our modern factories.

"DP" series brakes for trucks. Safe, efficient, profitable operation of motortrucks demands maximum braking effectiveness-smooth, safe stops under all conditions regardless of road, load, grade, or weather. Timken-Detroit brakes

for motortrucks insure maximum safety on our highways. Rear driving axles for busses and trolley coaches.-Bus and trolley coach routes are the arteries of urban transportation. Millions of riders in towns and cities depend on these vehicles for fast, safe, economical transportation to and from their jobs and their shopping centers. Intercity bus routes carry millions of riders annually too.

Forgings. Greater density and higher tensile strength of forgings has created an increasing demand for steel forgings in all industries. By special processes, the grain structure in Timken-Detroit forgings is controlled to assure better quality in the finished product.

Tandem drive units for trucks. Six-wheel trucks and truck-tractors with two rear driving axles in tandem are increasingly popular with motortruck operators. Greater load-carrying ability within legal limits and maximum pulling ability are big advantages of six-wheelers.

Front axles (nondriving) for trucks. The trucking industry serves more than 25,000 American communities that have no other form of freight service. In one generation the trucking industry has grown from 250,000 trucks to more than 8,000,000 today.

Axles (tubular) for trailers.-Modern trailers are especially designed for the loads they are to haul. Special livestock trailers carry animals to market, tank trailers haul milk and petroleum products and refrigerator trailers carry perishables to distribution centers.

Clutch brakes for industrial applications. Heavy-duty truck brakes have proved ideally suited for use as clutches in traveling cranes, hoists, and winches and other heavy-duty industrial applications because of their high braking capacity and rapid cooling ability.

Transmissions and differentials for earth-moving equipment.-Mammoth, heavyduty vehicles and machines are at work on the Nation's big construction sites, moving tons of earth and rock at every bite. Specialized equipment handles filling, leveling, scraping, and compacting.

Front axles (nondriving) for busses and trolley coaches. The easier steering, shorter turning radius and greater over-all ruggedness of Timken-Detroit front axles have played a major role in compiling the magnificent safety record established by transit systems and bus lines.

All-wheel-drive units for military_trucks.-"They go where you point them." Rugged, brute strength, high speed and ability to go anywhere are features of modern military trucks.

Transmissions and final drives for tractors.-A team of horses is a rare sight on farms today. Powerful tractors pull the plows and do the innumerable chores that fell to horses not too many years ago. In industry, too, tractors have proved their worth in handling materials.

Duo-grip brakes for industry.—Specialized, automotive-type braking devices have replaced other control methods on many types of moving and stationary industrial machinery. Moderate original cost, positive operation, and economical maintenance are fundamental requirements of such brake designs.

Stampings.-Metal stampings are used in the manufacture of everything from automobiles to zithers. Stampings, large and small, are made from steel, copper, brass, aluminum, and other metals.

Transfer cases and torque dividers for trucks.-With the advent of 4 by 4, 6 by 4, and 6 by 6 trucks came the introduction of transfer cases and torque dividers to distribute power to the driving axles. Today they are made in several models in both single-speed and two-speed types.

"P" series brakes for trucks and busses.—Swift, efficient hauling of materials and commodities by motor truck and safe, rapid transport of passengers by motorbus is dependent, to a great degree, on the unfailing efficiency of vehicle brakes. Smooth positive stopping is all-important.

Senator MARTIN. You have competitors in your line of business? Colonel ROCKWELL. To show you what competitors we have, every big automobile company is one of our competitors. The Ford Motor Co., for example, in 1929 let us make one of their axles. We made it. for a certain length of time, and then they thought they could make it cheaper, and they made it themselves for awhile. Then they gave us another set, and we made that, and then they took that away from us. They are now asking us to make the axles again.

So when you are competing with Ford, you have real competition. In addition to that, we have two very strong competitors in the axle business. It might interest you to know that we have offered them our patents, the same as we did in World War II.

You know there is a story around, Senator, that the Army officers: like this renegotiation and that the War Department gets the moneythat is renegotiated. As a matter of fact, that money goes back to the Treasury Department and the Army does not get the benefit of it.. Under redetermination, the Army does get the benefit of the savings. We have found Army officers very competent and very experienced. General Quinton, who is in charge in Detroit, was in charge then, and he will stand up with any purchasing agent of anybody up there.

Furthermore, Colonel Duffy, known around in the business as Judge Duffy, is now the chief purchasing agent of the Ford Motor Co. So when some people try to tell you that you have Army officers. who are not competent to handle contracts, the evidence that you have some pretty good ones is right there.

The CHAIRMAN. Are there any questions by any member of the committee?

Senator CONNALLY. You represent the Timken Boller Rearing? Colonel ROCKWELL. No; I do not represent Timken Roller Bearing.. They frequently say I am connected with it, but I am not.

Senator CONNALLY. Who is your company?

Colonel ROCKWELL. The Timken-Detroit Axle Co.
Senator CONNALLY. It is not the same concern?

Colonel ROCKWELL. No, sir. Originally, the Timken Roller Bearing Co. made axles. In 1914 they put the axle business intoDetroit, and since that time there has been no connection between the two companies, except that the Timken family ownership is in both of them. Two of the Timken brothers are directors in the Detroit company, the Timken-Detroit Axle Co., but there is no corporate connection between the two componies.

The CHAIRMAN. Are there any further questions? Thank you very much.

Colonel ROCKWELL. Thank you.

The CHAIRMAN. We will next hear from Mr. W. D. Lawson, vice president of the American Cotton Shippers Association.

Will you please step forward and be seated. Please identify yourself for the record.

STATEMENT OF W. D. LAWSON, VICE PRESIDENT, AMERICAN SHIPPERS ASSOCIATION, GASTONIA, N. C.

Mr. LAWSON. My name is W. D. Lawson. I am appearing in my capacity as vice president of the American Cotton Shippers Association, and as a representative of the National Cotton Council, to ask that the exemption for cotton be restored to the same form as in the previous Renegotiation Act.

That means elimination from section 106 (2), on page 24, lines 22 and 23, of the language:

but only if such contract or subcontract is with the producer of such agricultural commodity.

The members of the American Cotton Shippers Association are cotton merchants handling raw cotton in bales. They have no direct governmental contracts but sell cotton to textile mills, which do. Cotton a week ago was worth some $225 a bale.

Nobody now knows what it is worth.

The CHAIRMAN. The exchanges are closed?

Mr. LAWSON. Yes; and all of the cotton merchants are stymied. They cannot move.

Senator CONNALLY. Have they not put a governmental regulation -on cotton?

Mr. LAWSON. You mean, a ceiling?

Senator CONNALLY. Yes; some sort of an order?

Mr. LAWSON. That is right. They have put an order out, but it is so confused, and from my understanding of it, there is a roll-back on cotton in price, and no one is able to operate under it. For instance, you are a cotton merchant, and I am one. If you sold cotton at 50 cents a pound, and I sold cotton at 45 cents a pound, why, I can never sell any cotton higher than 45 cents a pound, but you can sell cotton at 50 cents a pound. But if I am a cotton merchant, and you are a producer, and you want some cotton, you can ask me any price you want for it. There is no ceiling on what you can ask. Senator CONNALLY. I agree that it is confused.

The CHAIRMAN. They have been making an effort for the last 2 or 3 days to straighten the matter out; have they?

Mr. LAWSON. Yes, sir; we have gotten nowhere.

The CHAIRMAN. And you have gotten nowhere on it?

Mr. LAWSON. Yes. We maintain that the export allocation, and with sufficient cotton in this country to run the mills, and with a ceiling on manufactured goods, that there is no reason for any ceiling on cotton that will automatically be taken care of, as I understand it. The reason for the order is to protect the public from high prices. Well, the public does not buy raw cotton. The public buys cotton in shorts or underwear, in articles after it has been processed. There is a ceiling on that. The public cannot be hurt.

The CHAIRMAN. There is a ceiling on the manufactured product? Mr. LAWSON. Yes, sir.

The CHAIRMAN. But, under this House bill, the raw product is not exempted from the renegotiation until it leaves the hands of the producer?

Mr. LAWSON. Yes, sir; you mean, it is not under a price ceiling until it leaves the producer?

The CHAIRMAN. Yes; that is what I mean.

Mr. LAWSON. Yes, sir.

Senator BUTLER. What you have to say about raw cotton applies also to other raw agricultural products; does it not?

Mr. LAWSON. Well, being only a cotton man, I could not say, but I should think it would; yes, sir.

The CHAIRMAN. Certainly it does. What cotton months are involved in these orders, these exports, and these controls that have been put on, that are so confusing-are not about the only 2 months July and August? I mean, of this last cotton year?

Mr. LAWSON. It would be from now until the new crop begins to

move.

The CHAIRMAN. That is exactly what I am talking about. They expect us to raise some 15,000,000 bales of cotton. There is nothing that has been done up to now that will more certainly interfere with the production of cotton than the present confused orders that are outstanding.

Mr. LAWSON. They have rolled back the price.

The CHAIRMAN. It is a roll-back proposition?

Mr. LAWSON. Yes. As I see it, Senator-excuse me for this, but I see no reason; if the shirts and socks and underwear, and everything that the public buys, already have a ceiling on it, if we could take cotton out from under a ceiling and let the farmer get all he can, the public will not have to pay the price. It is the mill that will have to pay the price to get the cotton. I do not think that will go too high, anyway.

The CHAIRMAN. I know it is in a very confused condition now. Mr. LAWSON. It is very discouraging.

Senator BUTLER. It is not only confused, but it is very critical. Mr. LAWSON. It is serious.

Senator BUTLER. And you being a cotton merchant understand the seriousness of it with respect to cotton, which ultimately becomes wearing apparel, but in a pinch we can patch our old clothes, we could get along in a pinch, but the same kind of a policy applied to food products-say, meat-is an entirely different thing and a lot more serious even than it is with reference to cotton.

Mr. LAWSON. Yes, sir. You do not have to wear clothes, but you have to eat.

The CHAIRMAN. You said that you have no direct contracts with the Government as a cotton man?

Mr. LAWSON. No.

The CHAIRMAN. You merely sell to the mills, and the mill products are all, of course, regulated, and their cotton contracts are negotiated? Mr. LAWSON. That is right.

The CHAIRMAN. But, as a subcontractor, that is, as a supplier of the mills, you are renegotiated?

Mr. LAWSON. That is right.

The CHAIRMAN. Under the bill as it comes from the House?

Mr. LAWSON. That is true.

The CHAIRMAN. What you are asking is that we go back to the original bill's provisions?

Mr. LAWSON. That is right.

The CHAIRMAN. How do you buy your cotton-how would you be able to know?

Mr. LAWSON. It would take an army of auditors to go back. Suppose we handle 50,000 or 100,000 bales of cotton a year; you would have to go back to each individual bale, find the price and the weight. That would have to be converted into the future that you sold against at the time, and the loss you might have in them. I do not believe it would ever be operative. I think it would be a waste of time and money for the Government and for the shippers.

Senator CONNALLY. The consumer is the one they are trying to protect, and he is already protected in the finished goods, is he not? Mr. LAWSON. That is right.

Senator CONNALLY. It would not matter to him, if he buys a shirt, and it has been regulated, what the cotton cost that went into it; is that right?

Mr. LAWSON. That is correct, sir.

Senator CONNALLY. Thank you.

Senator MARTIN. Mr. Chairman, not being in the cotton-raising section of the United States, what percentage of the cost of the shirt is the cotton in it?

Mr. LAWSON. Well, now, I am not a manufacturer.

Senator MARTIN. I thought maybe you could give us that information.

Mr. LAWSON. It is very little.

Senator MARTIN. It must be very small.

Mr. LAWSON. It is very small.

Senator MARTIN. Mr. Chairman, you know the same principle that the witness is talking about applies to many things. It applies to pig iron, and certain things in the lumber industry, and demonstrates the difficulty of carrying the law into effect.

Mr. LAWSON. Another trouble we would have would be this, that if a mill was on a 50 percent Government contract and 50 percent civilian goods, they would buy their cotton to go into that, and it is all mixed in the mill, and we would have no way of telling our cotton that went into civilian goods, or that which went into the Army goods. It would be almost impossible to work the thing out.

Senator HOEY. In the purchase of cotton, you buy from the farmers?

Mr. LAWSON. Yes.

Senator HOEY. Then you sell to the mills?

Mr. LAWSON. That is right.

Senator HOEY. Of course, I imagine you protect yourself by buying futures against it until you make sales?

Mr. LAWSON. Sometimes you have to sell them, too.

Senator HOEY. That is right; you have to sell the same way. And you run along regularly, not only during the cotton season, but all around the year, buying and selling?

Mr. LAWSON. That is right.

Senator HOEY. And as you suggest, the idea of undertaking to be renegotiated, there would be no basis upon which you could tell how much of your cotton went into Government contracts in the mills and how much was used for private orders?

Mr. LAWSON. That is right.