Looking At Argus

At the last Employee Meetings we had a good opportunity to discuss the status of our business and the future prospects for Argus. One of the points that I briefly reviewed was the concern that we have shown over the tariff laws of our country. On a number of occasions during recent years we have been confronted with a desire by our government people to reduce tariff s and thus, supposedly, increase world trade. During these discussions both Bob Lewis and myself have testified in Washington against possible reductions in the existing tariffs on photographic products. I doubt whether I have to go into very much detail to express the reasons for our concern in this matter. The table shown on this page will give you some idea of the problem. Of course it is expected that reduced tariffs might increase sales for American businesses as well as foreign companies. The theory is that by reducing our tariffs we can get other countries to reduce theirs. The theory may be good, but it doesn't work in this industry. We are not allowed to export into East Germany which is under Soviet control. We also are aware that in Japan the government gives favorable tax treatment to photographic manufacturers who are exporting their products. Most Japanese products exported are sold in the United States. We do not receive similar treatment by our government in respect to our exports . I do not believe that a high tariff

structure is always sound. As consumers, we all like to buy as much as we can for our hard-earned dollars. On the other hand, we do not believe it is fair for all photographic trade to go in one direction. There have already been substantial reductions in photographic tariffs during the last thirty years. For example, in 1930, cameras of which the lens is the component of chief value had a tariff rate of 45%. They now have a rate of 25%. Still cameras valued at $10 or more had a tariff rate of 20% in 1930, and now have a rate of 15%. Lenses had a rate in 1930 of 45% against a current rate of 25%. Further reductions in the tariff rates seem to be uncalled for under the existing conditions of the photographic market. The reasons for this discussion is to emphasize once again the importance of maintaining an efficiënt oper ation here. Our government cannot

and will not protect us if our costs are higher than our foreign competitors even though Japanese wage rates are only 10% of ours. The volume of photographic products imported emphasizes the importance for us to be constantly improving our operation, and I cali on e ach person at Argus to contribute new ideas and cost-saving methods as frequently as possible. We have the Suggestion Plan and Profit Improvement Plan available for submitting such ideas, lt ís important that we use these plans to strengthen our business position. In the long run the only one who can guar antee our security is our customer.

We extend our deepest sympathy to the family of Edward Girvan who died unexpectedly July 20 while visiting his parents in his native Scotland. At the time of his death Ed held the position of Chief Inspector of Final Product Control, and was completing his 19 years of service as an Argus employee.

Importation Of Still Cameras Valued At More Than $10 Each

1954 1955 1956 1957 Source - East Germany $1,672,000 $1,842,000 $2,014,000 $1,094,000 WestGermany 6,456,000 8,165,000 8,848,000 9,250,000 Japan 210,000 1,021,000 2,788,000 6,037,000 Others 406,000 632,000 1,250,000 1,265,000 Total $8,744,000 $11,660,000 $14,900,000 $17,646,000 Compare the above with the approximate value of Argus Sales of 35mm cameras 1954 1955 1956 1957 Argus $10,044,000 $9,654,000 $8,537,000 $7,747,000

Abaut The Cover

Robert Camburn (Customer Service) took this month's cover photo while visiting the Brussels World Fair with five other Argus employees (see story, page 6). Using a C44 camera with an fl.9 lens, Bob shot this picture on Kodachrome film, from which we made the black and white print.

You Asked Andy

While almost everyone is busily involved in getting the heavy dealer orders filled, all of us are still wondering why there were layoffs and , the realignment of certain job responsibilities only a few weeks ago. The answers to these questions are both simple and complex. Simple, in that four or five major factors can explain what happened, and complex because of the varied conditions that contributed to the problems . Our sales for the year of 1958 are running at approximately the same rate as 1957. The latter certainly wasn't our best year, but plenty good enough in view of the general economie slowdown. It would seem to follow then, that with this year 's sales equal to last we should be without problems, relatively speaking. liis is just where the problem exists. For us to have even a moderately successful year (possibly equal to that of 1957) our sales must be substantially more than they were last year. Why? Well, it is just a simple matter of costs. Increased costs to be exact. What are these increased costs? The answer is that they are many in number and varied in amount, but they all are costs that we previously did not have. NewProducts There is probably no better example of added costs than our new products program. We know that the development and introduction of new models is the ver y life blood of our business. However, today they are not earning a di me for us and instead are requiring a tremendous investment in design, tooiing, and production facilities. Bef ore the f irst production models of any new product reach the hands of our customers we may have between $20,000 and $500,000 tied up in the development of the product. Öbviously, these new products will soon be returning their investment and providing funds for the development of future new products, but today they are a cost. Consider that we will have up to twenty new products introduced this year and you can understand the heavy outlay in working capital required to support such an under taking.

Wages Wage increases are another added cost that cuts into the working capital provided by each sales dollar. In looking back just a little over one year we find annual improvement increases and cost of living adjustments have added over $400,000 to our payroll costs. This figure does not include the increase in material and parts costs which reflect the wage increases paid by our suppliers to their employees. Inventories It has been our practice to build inventories during the slow sales period (early spring) each year in an effort to maintain a fairly steady employment level. However, each camera andor projector placed into inventory represente an investment in materials, labor, and potential profit on which no return can be expected until the unit is sold, which may be two, three, or maybe even f our months later. By the time June or July rolls around our warehouses are getting pretty full and our capital investment is extremely high. When sales f all short of our forecast for a given period these unsold inventories become a cost instead of earnings. What To Do Earlier this year Joe Detweiller explained to all of us, through the Argus Eyes and employee meetings, about the need to cut operating cost

wherever possible. Fm happy to report that much has been accomplished along these lines through efforts and cooperation of everyone. A particular example of a cost reduction idea put into operation this year was our leasing of trucks for long distance hauling of finished goods. This system replaces the use of common carrier truck lines, with a resulting annual savings of $20,000. Many other ideas submitted through the Profit Improvement Program, the Employee Suggestion System, and general cost reduction channels have resulted in cutting our general operating costssubstantially. Another way to increase profits is to increase the selling price of our products. Here, however, is the classical "easier said than done" situation. We simply cannnot set our prices without regard to what our competition is doing. The customer demands and gets value for the dollars he spends which, after all, is the same attitude you and I have when we are in a buying mood. The photographic equipment market is so highly competitive that a general price increase on our products seems to be out of the question at this time. The Future One of the real bright lights we can see ahead is continuing increase in the field of amateur photography. Over the past few years there has been a steady increase in the consumption of cameras, projectors, and related items. While the surge has been less than sensational, it has been steady. A continued growth is readily assured by the ever-increasing leisure time available tothe American public. The portion of the photographic market showing the most promise is amateur movie camera equipment, and it is our intention to make our presence known in this field, as evidenced by our new M500 projector. In summing up the situation, it is safe to say that the customers are ready to buy and it is up to each of us to make sure that Argus is there with the best products and prices when they put their money down on the counter.

Service ...with An Argus Smile!

Service ...with An Argus Smile!

"Service" as defined by Mr. Webster (in his 17th version of the word) is, "Accommodation to a dealer or consumer to promote the sale and use of a product." This certainly applies to the Argus Customer Service Department, but it hardly tells the whole story of the multitude of activities taking place on the upper floor of Plant III. Under the experienced guidance of Department Head, Jim Rohrbaugh, our Service group is constantly ready to stand behind our Lifetime Guarantee against imperfections in materials or workmanship. This unique Argus policy naturally creates enthusiastic boosters for Argus. But the really amazing thing is that since the beginning of our Life time Guarantee offer, the percentage of cameras returned for service has actually declined due to the success of Argus quality control efforts. Our service percentage is considered to be f ar lower than the industry average.

The group of skilled repair personnel also make friends by regularly performing near miracles on Argus products which have been dropped from high windows, doused in lakes, dusted with sand or otherwise abused. These "wrecks" are returned usually in less than one week, in good working order, looking years younger, and with an extremely reasonable invoice. Repair service is available for all Argus products including those which have not been manufactured for many years. Another extremely important Service activity is the handling of all technical correspondence with consumers and the publication of all technical, repair and product instruction mater ials. This, of cour se, requires some real "answer men" plus art talent and expert ability to put informatibn across to the public . Our Customer Service Department is one of the Argus "faces" seen by the public . . . .it is a face with a smile and a readiness to help.

Touring Europe

SNATCHES OF Already we are referring to it as last summer and for all practical purposes it is gone. It hardly seems possible that a season can pass so rapidly. The pictures on these pages certainly indicate the Argus employees mads the most of the warm weather and xtra daylight hours. A real high-spot among the varied summer activities enjoyed by Argus employees was a European tour which took six of them to London, Amsterdam, Brussels (World's Fair), and Paris. Participants were Bev Martin (Accounting), Gert North (Machine Shop), Viola Curtis (Optical

Snatches Of Summer

Already we are referring to it as last summer and for all practical purposes it is gone. It hardly seems possible that a season can pass so rapidly. The pictures on these pages certainly indicate the Argus employees mad the most of the warm weather and fxtra daylight hours. A real higti-spot among the varied summer activities enjoyed by Argus employees was a European tour which took six of them to London, Amsterdam, Brussels (World's Fair), and Paris. Participants were Bev Martin (Accounting), Gert North (Machine Shop), Viola Curtis (Optical

Assembly), Rachel Rodriquez (Personnel), Bob Camburn (Service), and Cal Foster (Shipping). The tour group members were not the only ones who spent a lot of the summer air-borne. Dick Guarino (shown with a Novion) is only one of several dozen employees active in light aircraft flying locally. Camping is another of the favorite summer pastimes, and Paul Haines does it in style with his compact 14 ft. unit shown pictured on this page.

Congratulations! Argus Anniversaries

Not Pictured: Joseph Majewski - Toolroom - 15 yrs. Milton Campbell - Service - 5 yrs. Donald Hochgreve - Tool Engineering - 5 yrs. Patrick Donahue - Plant Security - 5 yrs. Charles Thomas - Distribution Service - 5 yrs. Virginia Adams - Camera Assembly - 5 yrs. Lydia Karn - Optical Assembly - 5 yrs. Richard Weber - Grinding - 5 yrs, Billy Baker - Camera Assembly - 5 yrs.

Herb Pfabe (Customer Service Dept.) has won the Argus Hole-in-one Contest by placing the best of 3 iron shots just 2 ft. 8 in. f rom the pin on the 155 yard fifth hole at Huron Hills Golf Cour se. In doing so, he earned himself a table model radio as first prize (see photo). His shot was enetered in the Corporation's Hole-in-one Contest, but at this writing we do not know how well his effort compares with the top entries f rom the other Company divisions. Herb's golfing prowess is one of long standing in the Argus Men's Golf League and in local golfing eire les. He has played among the leaders in the Ann Arbor city tournaments for many years and has finished first in the Argus League severa! times.

Family Circle

Edward H. Kuehn, Shipping, was recently installed as Worthy President of the Fraternal Order of Eagles. Ed has served as Trustee of the Ann Arbor Aerie for the past year and has been a member of the organization since 1943. Congratulations, Ed! WINS ESSAY CONTEST

Dianna Cooper, daughter of Lorene in Camera Assembly and Floyd, Machine Shop, won first place in an essay contest sponsored by the Women's Auxiliary to the Erwin Prieskown Post of the American Legion. Topic of the essays was "Citizenship, An Honor ed Privilege."

Presented to Norm Symons

A gold projector case, the 100,000th, was presented to Norm Symons, Purchasing, by Mr. Stonecifer, Vice President of Arvin Industries, manufacturers of our projector case. MISS FRASER GRADUATES Patricia Fraser, daughter of William Fraser, Toolroom, andWinifred Fraser, f ormer Argus employee, graduated July 17 from the Grace Downs Modeling and Air Hostess School. We extend our congratulations and best wishes to Patricia.

Wedding Bells

Nanette Lavon Rusha, daughter of Fred, Maintenance, was married on August 16 to Orien Nelson Collom. The ceremony took place at the First Baptist Church in Howell, Michigan. The wedding was a candlelight service with eight attendants. A reception was held following the service at the Knights of Columbus Hall. The couple will honeymoon through the south for two weeks. On their return they will make their home at Sunrise Park, Howell, Michigan. The bride was given away by her father. Congratulations to you, Nanette and Orien! WENZEL-ALT UNITED IN YPSI Barbara Wenzel, daughter of Mr. and Mrs. Floyd Wenzel, and Glenn Alt, Maintenance, were united in marriage on July 26 at Ypsilanti. A reception was held at the VFW Hall in Carelton, Michigan. We offer our congratulations and best wishes to the happy couple. TREPP-GILLIGAN UNITED JUNE 28 George J. R. Gilligan, son of George Gilligan, Toolroom, was married to Mary Trepp, daughter of Alice Trepp and the late Dr. Samuel Trepp, on June 28 at the Douglas Memorial Chapel of the Congregational Church. A reception was held in the Mayflower Room of the church following the ceremony. Congratulations and best wishes to the bride and gr oom! WEDDING CELEBRATED

Mary Ann Uban and Henry N. Smith, Jr., son of Henry Smith of Engineering and Rosetta Smith of Movie Projector Assembly, were married at the Smith home, 1523 Kirtland Drive, on July 18 at 7:00 p.m. A reception was held immediately following the ceremony. Congratulations Mary and Henry!

Carraige Trade

DOUGLAS ANDREW CAMERON Born July 1 - Weight 7 lbs. 2-12 oz, Mother, Silvey Sue, formerly of Sales. CHARLES EDWIN "CHIP" ROSS Bom July 24, Weight 7 lbs. Father - Pat Ross, Wholesale Sales. This is Pat's second son. CURTÍS B. HILL, JR. Born in May, the first child of Curt HUI, Sales. SUSAN MARIE DEVROY Born July 15 - Weight 7 lbs. Father is Floyd Devroy, Sales. Susan Marie has a brother, Michael. THEODORE ROBERT INGLING Born July 21 - Weight 7 lbs. 13 oz. Father is Bob Ingling, Purchasing. IHOR ALEXANDER HUMECKY Born July 15 - Weight 8 lbs. 12 oz. Father, Eugene Humecky, Engineering.

JAMES L. HAARER at five months Born November 14, 1957 - 5 lbs. Mother - Dorothy Haarer, Personnel.

SHELIA ALAINE RAYMOND Born June 15 - weighing 7 Ibs. Father is William Raymond, Toolroom. Shelia was born on Fathers' Day. SUSAN MARIE METZGER Born August 10. Father - Martin Metzger, Accounting. Susan has an older sister, Diane Lynn.

GWEN ANN GRAHAM Daughter of Brice Graham, Plant Protection, was born June 16. Weight 6 lbs. 8 oz.

MICHAEL LEE STAPLETON Born March 18. Weighed in at 6 lbs. 8 oz. Father, Leo J. Stapleton of Final Product Control.

Sports Review

After an absence from softball competí tion last year, Argus fielded a team in the American División of the City Recreation League. Manager Joe O'Donnell has BillStephens, Gary Dresselhouse and Dick Butcher as his moundmen. In Max Robinson, Argus has the outstanding receiver in the league, and his hustling type of play has given the rest of the team the intense desire so necessary for a winning combination. Clint Etienne and Don Hinz have been alternating at first and right field with each turning in very good play. George Bock has held down the keystone sack, with heavy hitting Jack Townsley at third and the fleetfooted Jim Yates at short. This infield compared favorably with the outstanding Argus teams ofpastyears. The outer gardens are being well taken care of by Johnnie Kokinakes in left, the reliable strong-throwing Bob Shankland in center, and either Clint or Don in right. When occasion arises, O'Donnell can go to the bench for help. Don Zemke, Larry LaVoie, Leo Stapleton, and Norm Bowerman have all played their part in the success of the ball club. Although the team did not end up in the top spot, the entire squad has earned congratulations for their fine sportsmanship in competition. Golf MEN'S GOLF LEAGUE In the Tuesday League (Red División), Tower - Swanson and Spitier - Rossbach were tied for first place at the completion of regular league play. A play-off was arranged, with the team of Tower and Swanson winning the match and becoming the Champs of that league. All leagues went to the last night before the winners were established, with the exception of the Wednesday 3:30 league. With the completion of the Golf Leagues, the champs of each league have been established.

Tuesday Red División

Final Standings: Team Points 1. Tower - Swanson 81 2. Spitler - Rossbach 80 3. Borger son - Isaacson 76 4. M. Geiger - K. Geiger 72 5. Sealscott - Kerns 72 6. Brinkerhoff - Detweiller 64 7. Etienne - Stevens 60 8. Fraser - Moore 52 9. Cor ley - Pelton 44 10. Bye Tuesday Blue División

Final Standings: Team Points 1. Leggett - Navarre 88 2. Van Dyke - Donaldson 86 3. Thomas - Chapman 74 4. Haas - Ambrazevich 71 5. McClune - Thompson 69 6. Bullís - Selent 60 7. Miatech - Wescott 54 8. Parker, Jr. - Keeny 50 9. Arnst - Green 49 10. R. J. Wilson - Hamilton 48 11. Barsantee, Sr. - Smith 40 12. Hale - Chadwick 32

Wednesday 3130 League

Final Standings: Team Points 1. Betke - Peterson 102 2. Deyo - Towner 74 3. Crump - Soderholm 71 4. Shattuck - Stoner 60 5. Howe - Conn 57 6. Cope - Mitchell 56 7. Conley - Stotts 50 8. Flick - Otts 45 Wednesday 5100 League

Final Standings: Team Points 1. Wellman - Zill 79 2. Ripple - Hall 76 3. Nickels - Heermans 70 4. Dempsey - R. Ross 67 5. K. Kaufman - R. Kaufman 67 6. O'Neill - Rogers 62 7. Bradley - Cuny 55 8. Carpenter - P. Ross 52 9. Solí - Gramprie 44 10. Mayer - Cooper 39 NOTICE: The Argus Two Ball Mixed Foursome Tournament will be held on Saturday, September 20 at Inverness Golf Cour se. See the bulletin boards for further information, or contact John Borger son or Don Crump.

Argus Eyes

Published every other month for the employees of Argus Cameras and their families. Coördinator - Arthur Parker, Jr. REPORTERS: Machine Shop - DOROTHY LKEY, Purchasing - BETTY FORSYTH, Lens Processing - BETTY SHATTUCK, Maintenance - JOHN KOKINAKES, Engineering - HÉCTOR HAAS and JUNE FAIRCHILD, Standards and Production Planning - VIRGINIA BIRNEY, Toolroom - BILL FIKE, Accounting - CAROL WHITE, Service - TOM KENTES, Suggestion Office - PAUL McCOY, C4 and C44 Assembly - THRESSEL CONLEY, Sales - LOIS ELKINS, Paint Shop - ETHYL HUFFMAN, Night Shift - CONRAD GANZHORN. Feature writers: Joe Detweiler Andy Argus: Don Crump Photoprinting: Jan Gala Photography: Wilma Simmons Jan Gala MATERIAL MAY BE REPRINTED WITH CREDIT TO ARGUS EYES

Argus Cameras

División of Sylvania Electric Products, Inc. ANN ARBOR MICHIGAN Return Postage Guaranteed

Sc 56, P. L. R. U. S. POSTAGE P A I D Aun Arfeor, MicKifn PfmH No. 59f

Three Win Argus Scholarships

Our three scholarship winners this year are Charlotte Graf, daughter of Al Graf (Engineering), lillian Rutledge, daughter of Mary Jane Rutledge (Accounting), and James Eubank, son of Cecille Lally (Movie Projector Assembly). The scholarships carry a stipend of $250.00 per year and are renewable for an additional three years. They may be used at either the University of Michigan or Eastern Michigan College. A total of 18 Argus scholarships have been awarded to Argus employees or members of employee's families since the fund was established in 1953.

Mike Quinton Appointed To A.f. Academy

One of our seholarship winners last year has been appointed to the United States Air Force Academy. Michael Quinton, sone of Gr ace Quinton (Projector Assembly), was appointed to the academy through the efforts of Congressman George Meader (2nd Congressional District). This appointment fuif ills a lif e-long ambition of Mike!s to become a flyer. His mother and we at Argus are justly proud of his achievement.

Argus Sales Program Goes Into High Gear For Christmas Season

From now until Christmas Argus will appear on 107,000,000 printed pages in national magazines, and 121,000 televisión screens on national net-works to pre-sell our products during this most important sales season.

Virginia Brumley, Advertising department secretary, displays the three piece "Real McCoys" display which is currently making its appearance in photography stores and departments across the country. The displays feature photos of Walter Brennan as Grampa McCoy, and the headlines are "comments" from Grampa about the merits of our new slide projectors. This is only one of many Argus preChristmas merchandising activities.

OUR TV AD SCHEDULE "THE EEAL McCOYS" Channel 7 8:30 p,m. Thursdays Oct. 23 Dec. 4 Not. 6 Dec. 11 Nov, 13 Dec. 18 Not. 20 Dec. 25 Not. 27