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SIR RAYMOND DENNIS ON HIS TRIP.

27th September 1921
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Page 12, 27th September 1921 — SIR RAYMOND DENNIS ON HIS TRIP.
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An Interview with the Joint Managing, Director of Dennis Bros., Ltd., After His World Tour. His Impressions of Conditions at Home and Overseas.

By the Editor of "The Commercial Motor."

SIR RAYMOND DENNIS, K.B.E., started off,for his world tour, acconapanied by his friend Mr. W. E. Hobbs, 0.B.E., on Christmas Eve, 1919, when, despite difficulties, hepes.ran high for a busy year of trade and when the labour horizon was merely misty. He returned a couple of' weeks ago, as find the industry with which he has been so-closely connected for, probably, a quarter of a century, in a state of. acute depression with problems that must be faced and solved before there can be any brightening of the horizon.

He has the satisfaction of knowing that he has set the Dennis flag flying everywhere at right angles to the mast and that wherever business is possible it is being done by the company's agents, on the very best lines. There were many pm-war connections to be examined and re-established, and it was eminently desirable that there should be available round the board-room table a close personal knowledge of the local transport conditions and needs in various overseas markets. Sir Raymond and his companion set to work to investigate the conditions and to record their findings, and it is interesting to note that ho is the first managing director of a British motor manufacturing concern thus' to go and visit the overseas markets.

The courtesy of a special interview was granted to us by Sir Raymond Dennis upon his return, and we were emboldened to ask him if he had not gone farther than to pursue investigations into these local conditions, and had seized the opportunity for propaganda work on behalf of mechanical transport. For we could recall the record of Some very impressive arguments that appeared in an Antipodean Journal. "Yes," replied Sir Raymond, "my efforts were directed to securing a full recognition of the important part that will be played by mechanical transport in the development of the countries, in encouraging the building of roads where suitable materials can be obtained and thus of opening up • new country."

"Did you find a great absence of road metal in many parts?"

" That, of course, is a chief difficulty. In the Argentine, for instance, there are no local sources within hundreds of miles of Buenos Aires. In many of the countries I have visited, the roads outside of the chief towns consistaonly of ;earth tracks, which for the greater part of the year are a desert of dust or a sea of mud, according to the season. But the authorities are alive to the importance of road improvement and development, ?'and there is steady advance that will be greatly accelerated by a return to normal trading-conditions.v

The tour occupied a year and eight months, and covered India, Ceylon, Burma, Federated Malay States, Dutch East Indies, China, Japan, Australia., New Zealand, Peru, Chile, the Argentine Republic, and Brazil. Altogether, the distance travelled was over 00,000 miles.

"And what was your general impression of the attitude towards British productions? " we asked.

"I was much struck by the' evident desire to obtain goods of British manufacture. I knew the prefeience existed, of course, but had not thought it could be so teal and so solid."

"The: break made by the war; which denied our goods to overseas markets and gave foreigners such an opportunity: how has that affected relations?" " I found that, in the Dominionsiand other counc22

tries, where exchange conditions, are more or less normal, British goods still stood high in the appreciation of everybody, and that, but for one obstacle, our export trade would go right ahead."

"And that obstacle? "

'The high cost of British productions compared with those of other exporting countries is the one great obstacle to the re-establishment of British overseas trade. Everywhere, you find recognition of the superior quality of British goods, and they will command better prices, than similar goods of other nations, but the difference in price has altogether outstripped the superiority in quality. Hence the tremendous falling off in our exports. The prices we are asking are beyond the means of buyers, and we must quickly recognize this fact or lose the position we have always held in the world's markets."

"From what you have so recently seen, you could give a useful message to labour, could you not?

"Yes; this slump in the export trade, brought about by the excessive cost of our production, is cer tainly the direct cause of unemployment, and the high cost of manufactured goods_ is largely the result of certain aspects of Trade Union policy and of con tinuous labour unrest. All those strikes you have had whilst I have been away—owing to their frequency and magnitude, they gamed for Great Britain

a most unenviable reputation throughout the• world." "And what as been the general effect of those strikes? "

"The chief and most disastrous effect of these has been to make it impossible for British manufacturing firms either to quote a fixed price or to give a definite date for delivery." "Fearing a rise in wmes during the execution of the contract or delay in completion through a strike? "

"Exactly ! Is it surprising that orders go elsewhere when other .countries will give the necessary guarantees, as we were able to do in pre-war days? Then see how all this uncertainty and the effect it has upon industrial undertakings ia reflected in the depreciated value, of industrial securities. Without exception, I believe they all stand at less than half their value when I left England."

"Did you, abroad, observe the effect of the moulders' strike and coal strike?"

" Yes; they were our two severest blows, and I should say, from what came under my immediate notice, that this country lost orders for manynrilliOns sterling, and, of course, that meant that labour was by far the biggest loser."

Going back to the matter of your representation abroad, did you make many improvements upon the pre-war arrangements of your company?". "Oh, yes ; I am satisfied that, good as was our pre-war position in overseas markets, it is infinitely better as the direct.result of ,iny trip. I took my time,' arid, as it was a business trip and not devoted to pleasure, I was able to deal thoroughly with every problem and make the most of my opportunities. I had considerable support from the Press, for instance, and I found the editors of the technical papers most knowledgeable men. Really, I had not anticipated being able to make such extensive and such eminently s ati s Factory arrangements."

" What is your impression of the relative importance of the world's markets to the commercial vehicle trade? " "There is a good trade to be done, of course, with the right kind of vehicle for the particular. district, but I would not put myself among the group of people who contend that it is a vast and wonderful trade. It calls for careful study, personal knowledge of local requirements and circumstances, the most careful arrangements for financing, competitive prices, and British square dealing." "Of course, the knowledge you have obtained at such cost will be retained exclusively for your directors?"

"No don't say that. As a matter of fact, I am perfectly willing to give considerable information to heads of concerns who like to come and see me. I don't want to write a lot of letters on the subject, however. Dissemination of some of my knowledge is going to be better for the trade as a whole, and, therefore, to us as part and parcel of the trade."

"Well, that would be most generous of you, and, obviously, to the good of the industry. How do we stand in competition with foreign makers?" "In the overseas markets, you mean? Quite well, really, if labour costs on raw and finished materials are brought to an economical level. Our factories are ample in area, and well equipped, and our methods up to date. No foreign maker—not even the American—has any advantage in those respects. We must set to work to recover our overseas general trade. Without it we cease to exist, and its recovery can only be secured by increased production and decreased cost.

• "Mr. Frank Hodges spoke very courageously and very honestly in addressing a meeting of workpeople during last week-end, when be said I hope the ruinous gospel once preached in Wales of getting the maximum wages for the 'minimum of effort will cease.' The policy of the payment of wages for time spent in. the works and not in proportion to the work done is," continued Sir Raymond, "at the root of many of our difficulties, and it is a healthy and welcome sign that the 'ca' canny' attitude prevalent amongst a large number of the working classes is now being condemned by responsible labour leaders."

"How do you think we should he able to cut the cost of production so that we may compete with the rest of the world'?"

Only by a readjustment of wages. This will affect not only goods for export, but also the cost of goods and produce for home consumption. High wages do not necessarily mean extra comfort or a higher standard of living. These are governed by the purchasing power of money, and the working man was better off with lower wages because of the lower price of commodities which ruled when wages were low."

"Do you say that the present condition of trade proves the fallacy of the policy that restriction of output means more work for more ,hands?" " Without hesitation. It is a policy that raises ccsts till they reach a level that drives orders elsewhere. Increased output can so reduce cost as to ensure prices that will secure the world's orders which now go past us, and only by this method can the 'problem of unemployment be solved." 'So you say that the demand for our goods exists abroad, the makers can give what is wanted, and they could, by supplying that demand, increase employment " Yes ; and to a Britisher it was very gratifying to be told 'We want your goods.' It was always accompanied by 'But your prices are too high ! ' The markets are there," concluded Sir Raymond, "and it is up to us—employers and employees working together—to see that the goods are produced at such a cost as to assure a stream of orders that will keep our factories busy and our workpeople fully employed."


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