1. A visit was paid to the Coffield Washer Co., Ltd., Hamilton, and whilst their washing machine and drier had few very outstanding features, the new ironer certainly had advantages over competition. However, the impression I gained from Mr. Bloom, Junior, in the absence of Mr. Bloom Senior, was that they were stalling for time to complete negotiations with Messrs. Falk Stadelmann. Mr. Bloom promised to write the Company within the next 10/14 days.
2. I followed up Mr. Willcocks' visit to Robert Simpson, Toronto, in connection with the A33. Mr. Travers, the Buyer, stated that after consideration, it had been decided that they were not interested in pursuing the matter any further, and he had written Mr. Willcocks accordingly.
However, Mr. Travers put me in touch with a Mr. Duggan of Brand & Millen Ltd., as a company who might be interested in the manufacture and sale of these sets. Mr. Duggan stated that whilst he had the capacity to produce these on our behalf, it would be necessary for us to have the set approved by the CSA who would, of course, at the present time not allow us to use English wire, and certain other parts, so that it would virtually mean complete re-design.
On this question of importing radios to Canada it appears that there are two possible methods.
(a) Become a member of the Canadian Radio Patents Ltd., (General Manager: S.C. Brownlee, at 159, Bay Street, Toronto) who claim to control the whole of the major radio patents, including use of valves, as far as Canada is concerned. Apparently this group was formed in 1923 by Canadian GEC, Canadian Marconi, Canadian Westinghouse, and the Northern Electric, pooling their various patents, thus restricting the import of sets. Membership of this organisation entails a deposit of $1000 to cover royalties: the royalties being 3½% of the selling price, less certain permitted expenses.
I understand that Council's opinion has been sought on the legality of their activities and the opinion given was that if a manufacturer challenged this matter in Court, he would win the case. In fact, I met a Mr. W.D. Hamer who claims that he has given considerable attention to this matter, and provided he can obtain from a British Manufacturer parts to build up a radiogram suitable for 115v, 25 or 60 cycles, he is prepared to take the matter further.
(b) The activities of the Canadian Radio Patents does not appear to affect the import of components to Canada, and I understand that some British companies, at the moment, are investigating the possibility of shipping radio sets in a fairly advanced stage of assembly, for completion in Canada. One company, I am informed, propose supplying almost complete chassis assemblies to a wooden cabinet-maker who is assembling these parts into a Canadian manufactured cabinet and speakers, thereby overcoming the C.R.P.
Other companies are investigating the position with a view to forming companies in Canada on one of three bases. Firstly, by applying to the Treasury for permission to transfer the necessary funds to Canada.
Secondly, by tying up with an organisation in Canada who supply 50% of the capital is supplied by the British company by way of technical knowledge, etc. One instance which was actually quoted was the British Electrical Resistance Co. Initially, BERCO will export parts at the lowest possible Works Cost so that a maximum profit may be made in Canada with a view to ploughing back into business.
The other alternative appears to be by obtaining a loan from one of the Canadian Banks who, at the present time, are very anxious to lend money.
I noticed that Messrs. A.C. Wickman, The British Drug Houses, and J. Lyons, have already completed factories in Toronto. It is understood that in addition to the British Electrical Resistance Co. mentioned above, a company has been formed under the name "B.E.P.C.O. (Canada)" which is a pool concern for sales representation of Compton Parkinson, Lancashire Dynamo, Harland Engineering Co., and Bruce Peoples.
There is one point that we would have to watch in Canada or the U.S. and that is the use of the name "EKCO". As far as Thermovent and Thermotubes are concerned, no difficulties are likely to arise, but there is a company, which has been operating since 1908, marketing all types of domestic articles from fruit knives to electric washing machines. This company is the Ekco Products Co., of 1949, N. Cicero, Chicago.
Brief details have already been given to Mr. Pritchard of a sound and vision record-player which is being developed by a company in California. As far as it can be ascertained, the distribution rights in the U.K. have not been settled. It was not possible to make contact with the company for further information: the details given were passed to me in semi-confidence.
3. Whilst investigating the "Whittie" heater in Chicago.
They mentioned they were interested in the manufacture of a solution which they claimed would dye Bakelite without any heat processing. A small sample was obtained and passed to Mr. Pritchard.
4. Messrs. Brand & Millen, Long Branch, Ontario, are producing a portable fluorescent lighting unit and offer these to us in quantities at $5.50: details passed to Mr. J.E. Clark.
5. These people also requested us to quote for parts for plastalite lamps in one-thousand sets. If the price is favourable, they would like to assemble in their own plant, have it approved by the CSA and sell it through their own sales organisation. In addition, they would be interested to know if we could supply them with approximately 12" x 6" x 6".
6. One or two enquiries were made in connection with toilet seats but the only person who expressed any real interest was Mr. Dunne of Robert Simpson Co., Toronto, who wishes us to forward a sample of the seat and a sample of the seat complete with cover (via Thomas Meadows for shipment in the next consignment) and forward a quotation direct to him for these in one-thousand lots.
Apparently Mr. Dunne is buying fair quantities of these from manufacturer in Birmingham at a considerably lower figure than ours, but as it was pointed out to Mr. Dunne, there was no comparison in the quality and it is suggested that in our quotation we stress this quality factor.
It was noted that the average selling price of these commodities were: seat only, in wood, $5: plastic, $8: seat complete with lid, plastic, $21. The most popular plastic finish appeared to be one with a pearl effect.
Reactions in Canada and the U.S.A.
In the main the reception was very cordial and I had no difficulty in securing interviews with people I wished to meet. In fact, the majority of people appeared to go out of their way to help, and I think this is mainly due to the fact that I was from the "old country".
Generally speaking, the Canadians feel that they have been to a large extent neglected by the British manufacturer, who, from a Canadian point of view, appears to have given much more attention to the Australian and South African Market, leaving Canada to the mercy of U.S.A.
When looked at from this background it is much easier to realise why the specifications have been drawn up around U.S. practises, and in this connection, if the Cable Makers' Association of Great Britain would only tackle this problem with the Canadian background firm in their mind, there should not be any difficulty whatsoever in overcoming what is almost a trade barrier. The Standards Association personnel I met were pro-British in their personal outlook and I am sure that they will be most receptive if approached in the right manner. Quite a number of Canadians are becoming somewhat concerned at the U.S. domination of their commercial life, and consequently are anxious to do everything possible to encourage and assist the British manufacturer to take a greater share in Canadian commerce. Other Canadians are very anxious to do everything they can to help the "old country" for sentimental reasons, so that, with a combination of the two, there is a greater opportunity for a British manufacturer to become established in the Canadian Market, not necessarily by opening up a manufacturing unit – an office would be sufficient to indicate a real determined interest in securing business in the Dominions – and provided the office was staffed with someone from this country, the distributor in Canada would secure increased business due to the fact that a British concern had a direct link in the Dominion.
We have now secured a foothold in the Canadian heating market, and whilst at first this is likely to result in a turnover of some four hundred to five hundred heaters per year, this figure should be increased –
(1) Because of the difficulties which have arisen in Canada due to shortage of fuel-oil there is a virtual ban on the sale of oil burning equipment for new installations.
(2) It is anticipated that by 1949 the power supply position will have eased and the ban on installations exceeding 4 k.w. Lifted.
(3) In 1949 it is anticipated that the irrigation scheme in Alberta and Saskatchewan will have started: this scheme is based on the T.V.A. and will take approximately ten years to complete at a cost of £25,000,000. One outcome will be the supply of cheap electrical power to the farmsteads in these provinces. It is anticipated that when power is available, the majority of farms will be electrified and at this stage when they come to the question of heating, they will find that the most economical way will be the use of single thermostat controlled electric heaters. Due to the scattered nature of the buildings, it would not be a sound proposition to install more orthodox type of central heating.
(4) Development in the ship building referred to in report on the marine position.
The above remarks apply to Thermovent, and as there would not appear to be any profitable Thermovent business to be obtained from the United States, with the possible exception of marine, there is very little we can do in this market to secure orders. The whole of the activity in the marine market centres in New York and one or two batches of marine architects on the West coast. It would be necessary for us to check up on our patent position, otherwise if we did manage to develop the marine market to any appreciable extent, we should be copied by other manufacturers unless protected by patent.
