(from the Tool & Die Institute’s Golden Anniversary Commemorative Booklet published in 1975)
1925–1935
“…a capricious yet colorful era”
The twenties were fervid times in our country’s history. They represented a period of change, confusion and excitement. While the whispers from the “Speak-Easies” could be heard clearly and the “Talkies” had just been released from Hollywood, men were preparing transatlantic flights and rocket testing was beginning to appear.
Like the people and the events of this capricious yet colorful era, the tooling industry reflected disquieted times as well. The Chicago area tooling trade in 1925 was suffering from a rash of overzealous companies trying to secure a footing in this young business. Many firms found it necessary to carry to extremes the practice of slashing prices to attract customers and remain competitive. Although it was a legal and commonly used method, left unattended would create a never ending spiral and ultimately result in the demise of the tooling industry in Chicago. A few foresighted individuals realized that price wars were not the answers in stabilizing this trade and therefore, began channeling their efforts to improve the situation. What was needed, was a means of educating the members of the industry on how to build a cohesive and health business environment based on sound estimating practices.
Sam Swenson of Midwestern Tool Company and Ben Irmis of Superior Tool Works discussed this matter with a business agent of the local metalworking union. He encouraged that immediate action be taken because, not only were tooling firms “cutting each other’s throats,” but they were destroying the possibility of Chicago ever becoming a great metalworking center. It was decided to organize a meeting of as many competitive firms as possible. At that meeting emphasis would be placed on the severity of the business climate in this industry and what was needed to correct it. Several meetings between Irmis and Swenson were held in preparation for this major assembly. The program they planned had to show merit if they hoped to convince tooling companies to coordinate their efforts in solving the problems that were plaguing their trade. Finally, 20 companies were persuaded to attend a meeting at the Morrison Hotel in August of 1925. At that meeting the sum and substance of weeks of planning would be unveiled.
Alderman Oscar Nelson, a labor man, was the guest speaker that evening. He spoke on the “Value of Associations’ and their importance in all aspects of the business world. His speech initiated a welcome response from the audience. Many companies expressed an interest however, at the end of the meeting only eight firms came to the same conclusion, … that an association for the Chicago tooling industry was needed. These eight men were aware of unprotected situation in their industry and that an association could provide the needed education and offer leadership and strength.
This mutual agreement laid the foundation for the Die, Tool, Special Machinery and Manufacturers Association, later to be named the Tool & Die Institute. S. Swenson, Midwestern Tool Company, C. Danielson, Service Tool Die & Mfg. Co; J.A. McLeod, J.A. McLeod; R. Groetchen, Groetchen Tool & Mfg. Co.; E. J. Gorman, Utility Tool Works; H. Radler, Surety Tool & Die Works; E.F. Bachner, Plymouth Mfg. Co.; and B. Irmis, Superior Tool Works; provided the catalyst and the manpower in establishing an organization that would one day become the voice of the tooling industry throughout the seven county Chicago Metropolitan area. On August 27, 1925, at the Swedish Engineer Society the first recorded meeting of this forthcoming association was held. The anxiety was high among those in attendance, and they wasted little time in the construction of this organization. At the meeting Sam Swenson was nominated temporary Chairman and Ben Irmis temporary Secretary. It was suggested that a name for the association should be the first item of business. The Chairman appointed E. J. Gorman, E. F. Bachner and R. Groetchen to function as a committee and develop some ideas for a name. The evening continued with serious discussion and the scheduling of the next meeting.
The news traveled quickly that an association had been started for the tooling trade. By the second meeting, which was only fourteen days later at the Morrison Hotel, more companies were in line to join the original eight. A vote was taken at that meeting and a unanimous “Yes” gave all those in attendance rights and privileges derived from this newly-founded association. A committee of three was then formed to prepare a draft of the rules, By-Laws and aims of the association. Another committee comprised of all the members was to function as a Membership Committee and generate interest in this association among other companies.
By the end of September, the reality of this association was no longer in the stars. The ground work had begun , the membership was growing, By-Laws had been established and goals were being set. The election of formal officers was the next stage of development. There was little question in anyone’s mind who should be the first regular President of the Die, Tool, Special Machinery and Manufacturers Association (DTSMMA). Max P. Heize, a most able man, was unanimously elected. Max’s sincere desire for achievement would be seen throughout his leadership from 1925 to 1931.
For the next three years the work of the association centered around two objectives: “first to promote the business interests of the members, and, Second, to improve the social and industrial relationships of the members and to foster the exchange of courtesies.” *
It was in the area of promoting members’ services that the first major undertaking of this association began. To show the range of possible services available in Chicago, a written composite of all the association’s members, their services and their representatives was made. This booklet was the forerunner.
Of our present day “Purchasing Guide & Directory” which has remained a valuable tool in promoting the members over the years. In addition to this means of advertising, DTSMMA began a monthly publication called “The Round Table,” later renamed “The National Die Builder.” This magazine was sponsored by the association and had a circulation of about 10,000. These two publications however, proved to be more than just a vehicle for drumming up business. They were credited with helping the association soar in membership size. So rapid was the growth, that within three years the association had grown from a meager eight companies to over 100 members.
This increase in membership necessitated some changes and additions to the organization. One addition was the hiring of George R. Tuthill to assume the role as full-time secretary. DTSMMA had reached that size when complete attention to the organization was needed. It was too difficult for the members to handle all areas of association management and control their personal businesses as well. Therefore, working closely with the officers, Tuthill began to tackle the management responsibilities of the organization.
The tooling situation in Chicago was not unique to the United States. Other metalworking areas were experiencing similar problems with competition and poor business ethics. As DRSMMA continued to grow, its story traveled to other regions and a deep interest in membership from firms outside the Chicago area development. This outside interest inspired the members to study the possibility of extending its boundaries.
With the year 1929 just around the corner, DRSMMA voted to broaden its scope and encompass members from other regions. The By-Laws were changed to incorporate this new expansion and the association’s name was even altered. This organization was now known as the National Die & Special Tool Builders Association (NDSTBA).
Although 1929 brought national stature to this association, it also delivered a crushing blow to our nation’s economy. On October 29, the worst stock-market crash in the history of our country occurred hurling the United States into a severe depression. Now more than ever, the strength and guidance of NDSTBA was put to a test.
Even though the Depression imposed difficult times, it did not stop this organization form continuing its services or halt its growth. This was evident why George Tuthill returned from a trip to Cleveland, Ohio with a petition from eleven companies requesting permission to establish a Cleveland branch. By the end of July, 1930, nineteen applications from Cleveland had been received.
The dark shadow of the Depression continued to hover over the country during the early thirties. Although work was scarce, most companies retained their membership with NDSTBA because, it was for many, their only means of keep abreast with the prevailing conditions of their industry.
To try and ensure that the association remained strong during these hard times, efforts were made to spawn continued interest in NDSTBA. Two programs were started that united the enthusiasm of the members. An evening course in estimating and cost accounting was started and a credit bureau for the use of the members was established. Although the credit bureau drew little attention and soon dissolved, the evening estimating classes proved to be successful and were destined to develop into our present-day apprentice program.
Probably one of the most remembered out-growths of the early thirties was the enactment of the National Recovery Act (NRA) in 1933. This Act created a great deal of anxiety within the industry and within the structure of this association. This Act was “… to encourage national industrial recovery, to foster fair competition, and to provide for the construction of certain useful public works, and for other purposes.” The NRA “… provided for the federal control of the entire industrial structure of the country through the mechanism of codes drawn up by government administration and special industries..”
Restrictions were placed upon trade and industrial associations in relation to receiving government assistance. The major ruling was that organizations must be representative of the entire nation. Although NDSTBA had members in Cleveland, Ohio it did not reflect the required national scope. Therefore, in Cleveland a group of concerned business individuals expeditiously formed a national association known as the Special Tool, Die and Machine Shop Institute (STDMSI).
NDSTBA involvement with this new organization followed quickly. Our name once again was changed to Special Tool, Die and Machine Shop Institute, Chicago District. This switch in association structure and in filing of a Fair Competition code enabled our industry to receive the support of the NRA.
STDMSI had weathered many turbulent and spirited times during that first decade. Those early years (1925-1935) saw the “St. Valentines’ Day Massacre”; the untimely death of Knute Rockne, the end of Prohibition, the passage of the Social Security Act, and the rise and fall of the NRA. The Association however, did not just sit by viewing the change and metamorphosis of the surrounding world. Inside the organization there was expansion, in both programs and membership size, By-Law changes and the interest shown in establishing local branches. The activity that was displayed by STDMSI insiders was just a small showing of its potential yet to be tapped.
The Story of TMA: 1936-1945 Part 2