In 1886 the life of finished steel produced in the United States was fifteen years. In 1936 the average life of steel products is estimated at thirty-three and a half years.

A Tennessee plant of a leading industrial company established a new industrial safety record recently when employees there completed 11,361,846 hours of work without a lost-time injury.

EXHIBIT 5485-I

SERVICE FOR PLANT PUBLICATIONS

Released by PUBLIC RELATIONS DEPARTMENT, NATIONAL ASSOCIATION OF MANU

September

FACTURERS

11 West 42nd Street, New York City

KNOW YOUR CONSTITUTION

No. 13

[Excerpts from the "Story of the Constitution" by permission of John W. Mace and Irving T. Gumb]

Strangely enough, the part relating to the federal judiciary met with the least disagreement in the Convention. Yet this feature of the Constitution is its most unique and far-sighted action. The judiciary was charged with interpreting the Constitution in accordance with the principles of common law.

The judicial responsibility was to be vested in a Supreme Court and such courts as Congress might create. With the growth of the country the judicial machinery has necessarily multiplied, and numerous federal claims, commerce and district courts are necessary for the nation.

The Supreme Court, whose judges are appointed for life, is a tribunal aloof from politics, and maintaining a degree of permanence to which acts may be brought for review and, if found at variance with the fundamental law, declared unconstitutional. It is a needful check, an indispensable balance wheel. The United States Supreme Court stands as the guarantee of human rights— and the humble citizen's rights.

The United States Constitution is the supreme law of the land only as there is a Supreme Court in fact as well as name to decide what is and what is not constitutional. The Court is its "interpreter" and in a real sense the guarantee of liberty. From the days of John Marshall, the first great Chief Justice, to the present, it has given the Constitution vitality.

In a historic case which came before the Supreme Court in the Jefferson Administration and known as Marbury versus Madison, John Marshall, the Chief Justice, boldly and decisively dealt with the supremacy of the written Constitution over legislative acts. In the decision he asked the question: "Can the Supreme Court of the United States invalidate an act which Congress has passed and the President has approved?" He then declared that the Court can and must do so.

There is, according to Marshall, no escape from the conclusion that a law repugnant to the Constitution is void and that the judicial as well as other departments are bound by the Constitution.

THE STATES

The Constitution provides an extremely successful basis of relationship between the several states of the Union. All states must give full faith and credit to the public acts, records and judicial proceedings in each individual state. Furthermore, the citizens of each state are entitled to all the privileges and safeguards to their liberties which are enjoyed by the citizens in the several states. No tariffs were to be allowed between states. Another very wise provision was made in the Constitution whereby the United States shall_guarantee to every state in this Union a representative form of government, and shall

protect each state against invasion. We are in every sense of the word a group of "United" States. Without the Constitution we might well have forty-eight, or for that matter, any number of separate little countries, each unrelated to the others and each in a consant struggle to survive. How true it is when we say, "In union there is strength."

THE MAN AND THE DOLLAR

"Capital," says the dictionary, "is that part of wealth which is devoted to the production of more wealth." In other words, all capital is tools, whether the tool is a screwdriver or a die that stamps out automobile bodies. It is as useless to talk about the workman and the dollar, as though they stood in opposition to each other, as it is to argue whether lungs are more important than air. Each needs the other. Capital needs labor and labor needs capital. Without the dollar, man cannot live. How many productive jobs can you think of that can be done without tools? Particularly is man's dependence on the dollar evident as industry becomes more and more mechanical. As tools become more complex and capable of producing more, they become more costly, and more dollars are required to set a man to work.

A leading automobile manufacturing company recently pointed out that they had to provide $2,008 of land and plants, $2,670 of machinery and $665 of raw materials in order to put one average workman to work. Add that up. It makes more than $5,000 for each worker's tools, using the word in the broadest sense. This same company had also to provide a large amount of working capital for each employee in order to carry the materials over from the raw state until the time the finished car was sold. That working capital is as much a tool and as necessary to production as any machine.

This same story can be repeated in any industry.

Railroads, in tracks, locomotives, roundhouses, terminals, and the like, provide more than $5,000 worth of tools for each worker.

The steel industry requires still more to finance and maintain the average job. Here the figure required to put a man to work stands at $11,500. Of this amount, $8,990 is needed for the necessary real estate, buildings and other equipment.

Here is the secret of America's high living standard. We have more tools, more machines. The average American workman has more than the workman in other countries because he can produce more with the help of the tools supplied by capital.

To talk of capital being on one side of the fence and labor on the other is nothing more or less than nonsense.

WHAT OF LIBERTY?

Freedom-living Americans will find ample food for thought in the riots, revolutions and civil wars that are an invariable part of the struggle of the "Isms" now going on in many parts of the world.

When the bloodshed and turmoil is over; when the strife and agony that always usher in these new doctrines subsides, what happens? Americans, along with the people of all other nations where "Isms" are reaching for a foothold, are entitled to ask themselves this question.

Fortunately, there is plenty of evidence at hand to furnish an answer. From any of the dictatorships which are common to all "Isms" one can find all the evidence he needs to prove what the future holds under any such system. Let us take but one example.

There, the people work when and where they are told for whatever pay the state wants to give them; they turn their children over to the state and they worship what and where the state dictates. Freedom of speech, freedom of religion, freedom of press, freedom of assembly, right of trial by jury-all basic rights which Americans accept as their common heritage-vanish under a dictatorship because dictatorships cannot exist among a free people.

Americans who cherish these privileges as a birthright doubtless are considered poor, benighted serfs by the "Ism" exponents in this country who shout at us from soap boxes whenever they can get a crowd to listen. But Americans know that in a battle of the "Isms," the first victim in the struggle is human liberty.

[Extract from an article by Channing Pollock in the August issue of The American Mercury]

When you tell the people who have achieved what we have achieved that we mustn't go on achieving it-when we tell Babe Ruth that he mustn't bat any

harder than the bush leaguers, and Jim Braddock that he mustn't hit any harder than I can, and both of them that they must proceed under rules designed to regulate athletics in a home for cripples, then-whoever does it, however, wherever the pennant is lost and the count is up.

You can and should tell Jim Braddock not to hit in the clinches. You can and should enact laws to restrain the dishonest and predatory. You can and should urge and educate the backward to effect better ethics and greater efficiency. But when a labor union or a legislature, for whatever reason, orders that no more than so many bricks shall be laid in a day, that employers shall choose not the best typesetter but the one who has been longest out of a job, that no one shall work more than so many hours a week and all at the same wages, and that no man shall cultivate more than so many acres, or raise more than so many hogs or potatoes, and that you and I shall pay him, not for what he does do but for what he does not do, then that union or legislature is reducing us to our lowest common denominator of laziness, thriftlessness and incompetence.

EXHIBIT 5485-J

[Cover page]

THE AMERICAN WAY

YOU AND INDUSTRY SERIES. BOOKLET NUMBER 1

[Back of cover]

Copyright, 1937, National Association of Manufacturers of the United States of America

Permission to reprint may be had by writing to N. A. M., 14 West 49th Street, New York, N. Y.

[Title page]

THE AMERICAN WAY

To you, personally, nothing is more important than your own life, your happiness, your family, your future and theirs. The facts here presented deal with these things-show how you fare in America. In short, they explain the why and wherefore of our American way of living.

BOOKLET NUMBER 1

[First page of text]

THE AMERICAN WAY

Man cannot live alone. He must associate and deal with other men. He needs a central authority to protect him in those dealings. Even in the Dark Ages there were such things as chiefs and councils empowered to defend the tribe and regulate some of its affairs. That was modern government in the beginning.

Since then, two kinds of government have developed-one in which the citizen is supreme and the government obeys his will; the other in which the state is supreme and controls the citizen. The first is individualistic, the second collectivistic. In the first, man creates machinery to look after him as a separate, individual entity, and retains the power to run the machinery. In the second, the man is but a small cog in the machinery; his desires and will are sacrificed to the state.

The American system is individualistic. All powers of government are granted, voluntarily, by the citizen. The citizen is supreme. He merely agrees to set up a central state for purposes of convenience and protection. He

reserves the right to withdraw government powers if he sees fit, or to grant

more.

This is a simple way to determine whether a particular kind of government is successful. See what material benefits each individual may obtain under it: what he eats, wears, enjoys. See how the whole group of individuals fares materially. Then see whether the individual and the group may win and retain mental, spiritual contentment-individual liberties-for man cannot live by bread alone.

Before looking into those things, it is essential to understand clearly the basic structural framework of the American form of government.

The American system is one under which the individual remains a director of his government rather than its slave. It has, therefore, preserved, subject to essential regulations only:

1. The right of the individual to seek the kind of gainful employment he chooses;

2. The free exchange of goods and services. including the right of the individual to sell the products of his services or any of his possessions to any one at any time;

3. The right of the individual to use the proceeds of such a sale as he may see fit-to invest, to save, to spend, or to give away, in accordance with the law and his own conscience;

4. The right of the individual to own private property and to enjoy its use so long as such use does not interfere with the rights of another to a like use of his own property.

Socially, this system preserves freedom of opportunity for the individual to strive, to accumulate, and to enjoy the fruits of his accomplishments. Politically, it results in what we call a "democracy" but what really is a rule of limited powers granted by individuals, through written constitutions. to state and federal governments.

HUMAN RIGHTS

Many material advantages have come to individuals under this system. But fundamental in the American system are the human rights which the individual retains while his material advantages are being improved. Only under a system of individualism can such human rights exist. Under any form of collectivism, whether Communism, Socialism or Fascism, coercion is substituted for individual enterprise, force for voluntary cooperation.

It is no accident that democracy flourishes in individualistic countries. The principal democratic lands are the United States, Great Britain, France, Holland, Switzerland, the Scandinavian countries, and Czecho-Slovakia. In them individualism to a varying degree continues to flourish. China and India are feudal, Italy and Germany are Fascist, Russia is Communist, Japan is a mixture of feudalism, Fascism and immature Democracy. In those countries, individualism does not thrive.

In the individualist lands, the human rights are usually protected by definite constitutional provisions. In the others, constitutionalism is either weak or non-existent. In the individualist countries, the individual protects himself against administrative whimsicalities by judicial procedure. In the others, administrative prerogatives are supreme, and the government becomes one of men rather than one of law, for the men in power can change the laws to suit their needs or desires.

What rights does a United States citizen enjoy under individualism? Besides the four essential rights already stated, he has:

The right to grant or to withhold from government specific powers as stated in the Constitution and to alter that Constitution by a peaceful process agreed upon in the original document;

The right to choose and get rid of the personnel of government by orderly elections in accordance with the law of the land;

The right to a voice through his ballot in the making of the laws. Then he enjoys the following personal protections which are elsewhere withheld from men or granted as mere privileges, not as rights: