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| THE INTERPRETER OF BUSINESS Vere /, Ve,
WY Bea
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APRIL 1, 1942 3
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LINE EDITORIALS
Watch war production soar!
For waging all-out U. S. offensive, the 40-hour week is indefensible.
A sales tax seems likely. A turn for the better in the war will bring a turn for the better in the stock
market.
This may come sooner than generally expected.
Prediction: Inflation won’t run wild.
Many third-grade bonds possess profit possibilities. Strikers are slackers.
Taxes have been paid without a whim- per.
Washington bureaus galore need thor- oughgoing Spring housecleaning.
Sacrifices are being accepted by all classes except labor union and “farm bloc” leaders.
Gasoline rationing has now been “sold” —but not by Ickes.
Our most urgent war needs rank: Air- craft, ships, tanks.
Included also is co-ordination of army, navy, air command at Washington.
“We Will Win War With Winged Weapons.”—R.N.C.
“Hitler’s Suicide Foreseen by Mgr. Sheen.” "Twas said here on December 15: “Will suicide be Hitler’s way out?”
We used to have too many sit-downers in plants. Now too many slow-downers.
Washington’s No. 1 enigma: Harry Hopkins. No. 2: Madame Perkins.
To cheer you up, read “Mission to Moscow” by ex-Ambassador Davies.
FORBES
—mwroeeme-8+222:36 b> FZ _w
~~ Cri l(C lel!
WHAT'S AHEAD
ATCH the next issue of ForBEs
for announcement of a new con- test—one as vital and timely as “Wuy ApverTIsE Durinc Scarcity?” which piled us up with comments and re- quests for reprints. This time ForBEs will tie its contest in with a phase of the war effort which will help in achieving the common goal. Every business man and every worker will be interested in the subject of the contest and everyone, except employees of Forses of course, will be eligible to compete for the Defense Bond prizes and the national recognition which will come to the winners.
"2 @
We're trying, too, to bring you in the next issue a first-hand, on-the-ground report of the total conversion of the automobile industry to war production in Detroit by Marc A. Rose, a look ahead into the future on rationing by John F. Knapp, and a survey of econ- omist opinion by Thomas N. Young. There are four or five other timely sub- jects a-brewing and it may be that one of these will crowd out some of the aforementioned articles. But if it does, it will be even more timely, more im- portant to business and businessmen everywhere.
&2® &*®
ForBEs readers can pat themselves on the back, it seems. The research depart- ment has just compiled a _ten-page, single-spaced report listing subjects on which ForBes correctly predicted trends in business and economics, told what was ahead in war and war econ- omy and led the headlines on what was to happen in Washington last year. The list is imposing and shows that Forses subscribers had information and interpretation well ahead of usual sources throughout the shifting, chang- ing twelve-month period. (Copies of this report are available to readers upon request.) This year we hope to do an even better job. Incidentally, keep your eye on Gene Robb’s WasH- INGTON OuTLOOK. The survey shows it usually is filled with predictions which reach fulfillment.
_—Tue Epirors
APRIL 1, 1942
FORBES
VOL, 49 Aprit 1, 1942 NO. 7
Special Articles War on Main Street............... ....Fred B. Barton 8-
Management and Union Join to Build Morale E.C. Morse 10
SM WEIDNER DONOR. 6 wo ce cc eie cent es Len White 12
Wartime Creed For Business Men........ Norman Lewis 13
If You Want to Make a Speech... ....Charles B. Roth 14 Departments
PIN SS ovis ca sceccsecdvupes B. C. Forbes 7
The Washington Outlook.................. Gene Robb 18
B. C. Forbes Reveals: Willkie for Investors’ Union;
Upturn Before Mid-year? .................eseccees 20 ee EE TN iain 08 nn cteadnapetbeannep 22 Ry aa wtle bon sod vid wat te Kae e eS cee ad POO RS 24 NEES HEONONTIOUNEN S. 0 cls bys 6:0 os ong ae oe rdeeley ox 28 NN IN 6 i ic oo see'es haSike-ves ke mean 29 Sh tr Deke sod ccc donneucaeeaee’ 31 Thoughts on the Business of Life..................... 34
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5
Old Hands at new Jobs
FJ NHERE is a new look of grim satisfaction on the faces of many a veteran Buick worker these days.
There is the look of the seasoned infantry- man who, having patiently waited while advance forces engaged in all the early skir- mishing, at last gets the marching orders that let him move up front.
You didn’t have to tell these old Buick hands why the whole Buick factory hadn’t been called to action before.
They knew with the practical experience of men who work with their hands that, even if you had the orders, you can’t stamp tanks out of automobile sheet metal, or machine rapid-fire cannon with the same tools and methods that make car assembly lines tick.
They knew that new methods had to be established, tried and tested —that new machines and fixtures had to be designed and built — that even such fine skills as their own had to be refreshed, redirected, reapplied.
They knew that normally this would take years — it took more than a year, didn’t it, to “make ready” even a new car model?
4
So they noted with appreciative approval as new plants went up, new techniques were established and new skills developed in a matter of weeks.
They were assured that their chance would come months ago, when fellow workers in the same plants began to take on first one wartime job, then another.
Their chance did come, and now they’re making the most of it.
The job of change-over was handled, and like reservists called up, these quality-wise veterans went into action.
Old hands at the fine, precise, on-the-button work modern war equipment calls for, they relish their opportunity to prove that when Uncle Sam needs better war goods, Buick
men can build them.
So there’s new buoyance in their stride as these veteran craftsmen march to work.
There’s grim purpose in their intentness as they guide their planers and lathes.
For these old hands and Buick are all-out on new jobs to help win total victory.
BUICK WILL BUILD THEM
—— WHEN BETTER A ES ARE ma)
““‘WITH ALL THY GETTING, GET UNDERSTANDING’
Fact and Comment
By THE EDITOR
Union Chickens Roosting
The chickens hatched by self-seeking, high-handed labor leaders and by their followers who perpetrated sit-down strikes and other forms of lawlessness, are coming home to roost. The people have become aroused. Members of Congress are learning this, to their alarm. They are being inundated with protests from constituents against permitting continuance of strikes, with demands that legislation outlawing stop- pages of work by war workers be enacted forthwith.
Labor leaders reveal that they have become con- scious of the public’s indignation. The three AFL and three CIO officials who constitute the top labor body which President Roosevelt has felt compelled to head, and which absorbs time he can ill spare, are persuad- ing the President to head off threatened legislation curbing the license heretofore flagrantly indulged in by unioneers. Their plea to him is: “Don’t bring us under any new law. We promise to behave hereafter.”
Franklin D. Roosevelt is perhaps the most astute politician America has produced in modern times. He has notoriously kowtowed to the labor vote—as well as to the vote of those whom he has described as the “ill-fed, ill-clad, ill-housed third” of our entire popu- lation. Lawmakers also are politicians. What will be the outcome now that the latter find their constituents overwhelmingly demanding remedial labor legislation? Since the terms of all our Representatives and one- third of our Senators expire in November, they can hardly be expected, even under Administrative pres- sure, to flout the will of their folks back home.
__This writer has urged, ever since the nation became menaced by dire emergency, that the law prescribing a 40-hour week and 50 per cent. penalty for every additional work hour (with double time for holidays and Sundays) be amended, at least to the extent of legalizing 48 hours’ work at normal hourly rates. Since we became actively embroiled in the war, and in view of how urgent maximum war production has become, it is entirely natural that the people are insisting upon such reasonable labor legislation, it is entirely natural that they are insisting that irresponsible strikes be prohibited. All recent Gallup polls disclose that the great majority of American citizens have lost patience with grasping union demands, with selfish interference with war output vital for equipping our young man-
hood on fighting fronts sufficiently to give them a fair chance against enemies, a fair chance for their lives.
Read this sentence in a private letter from a British business man: “The feeling among our people is such that if they were asked to-do anything but munitions work they would refuse.”
Could this statement be brought to the attention of labor leaders and their followers here, would it not cause them to alter their attitude? Would it not cause them to accept gratefully all the privileges already ac- corded them and to throw themselves wholeheartedly into exerting every effort to win the war?
Organized labor had better “Stop! Look! Listen!”
* Success is less often won by spirits and inspiration than by steady, studious application. -
Get—And Spread—Understanding
“With all thy getting, get understanding” has been used as a slogan in every issue of this publication since its inception a quarter-of-a-century ago. It has been addressed, primarily, to employers and others occu- pying high positions. It has been supplemented fre- quently during these years with exhortations to dis- seminate understanding. Some—considerable—prog- ress has been made. But not enough, else industry, finance, railroads, utilities and other businesses would not have been subjected to all the pummeling inflicted upon. them: by Washington during the last decade.
Men of affairs have, through painful experience, im- bibed some measure of understanding. But all have not yet learned the infinite importance of spreading understanding. Too many have followed the principle enunciated to his partners by the present J. P. Morgan when he succeeded his father: “Let us do the right thing; let our actions speak for themselves.” J. P. then had a haughty attitude towards the press, towards the public. He has become wiser since.
Never was there more urgent need for industry, which, by and large, is doing the right thing, to pro- mulgate enlightenment calculated to gain public ap- proval, to spread, win understanding. To remain silent may prove suicidal. It should utilize every legitimate means to inform the people of what it is contributing to winning the war.
{Continued on page 26)
APRIL 1, 1942
er PPP DID ID ID ID I ID DD DP
By FRED B. BARTON
E needed a Lexington and Con-
cord. We needed a shot-heard-
round-the-word to impress us that this is our war, and that the battle- front is not millions of miles away, but right on our Main Street.
Something like this may now have happened. It happened, of all places, at Mt. Gilead, Ohio. Here is a town with a rustic name, faintly reminiscent of balm-of-Gilead. But it is a live manu- facturing spot and a busy agricultural community. Mt. Gilead now takes its place as the typical American small city; as an emblem of how everyday Americans can work together to keep the war from their doorstep.
Civilian defense in this country got off to a multiplicity of bad starts, you recall. It was all froth and no beer. It did most all the wrong things and stu- diously avoided doing many of the right things.
A VOLUNTEER PROGRAM
So of necessity the civilian defense problem has come back, as it should come, to the individual communities. And Morrow county, Ohio—located far from the jittery coast-lines and with only one large defense industry, but with 16,000 patriotic and home-loving citizens—has taken the bit in its teeth. This little county is building a civilian war program that promises to go places. The program may not be ideal; few volunteer programs ever are. It may not yet merit the excessive praise bestowed upon it by Dorothy Thomp- son and General Hugh S. Johnson. That publicity indeed was almost un- welcome to the little community. But Morrow county accepts the good wish- es sent to it from the White House, where the President mentioned it in a morning press conference and wished it well. Morrow county is plugging along at its own home job.
Let’s see what an inland farm com-
Frep B. Barton is a free-lance writer who draws on broad business background for his articles. He is a frequent contributor to Forses, and has five books to his credit.
War On Main Street
munity in these United States can prop- erly do to help win the war.
Morrow county’s program starts with food. An army marches on its stomach, as Napoleon said so briefly and so con- vincingly. Food is a weapon of mod- ern war, but right now, with both the Army and industry calling for all pos- sible young males, labor on the farm is a terrific problem.
So a list is being made up of all available farm power in Morrow coun- ty. This will show the combines, thresh- ers, pickers, tractors, and other heavy farm implements, and determine which machines are for hire. An attempt will
Dr. B. G. Robinson, local physician and business man, directs the war program
be made to fix a uniform and resonable price. This same search will explore reserve labor that may be brought into use to plow and cultivate and gather the crops: People who carry old-age pensions but are still able to work a few hours a day; unemployables and others on WPA; people who are re- tired but still able to work; factory help glad to do a couple of hours ex- ercise in the open air after hours; and retired female labor that can take over the work of the farm wife and let her take a production job in industry. Transportation was the next subject given consideration. When tires were available and cheap it was wholesome and reasonable for the employees of the Hydraulic Press Manufacturing
Company to live on farms and in small towns and drive to and from work. But with Hydraulic grown to 500 war. time employees and tires becoming scarce, transportation becomes a prob- lem. So plans are being made to have the county school-buses pick up the factory workers early in the morning and drive them to work, and then go after the school children. In the eve- ning the factory hands will be called for and taken home after the school children have been returned to their homes.
Morrow county understands the im- portance of salvage. In lush times it wasn’t always important to pick up broken iron, but in wartime things are different. So the local county highway chief is gathering up scrap rubber and paper, and especially scrap iron of all kinds. Shafts and iron wheels and spare parts that are salvageable will be paid for in defense stamps and kept on hand to help some farmer in a pinch. Scrap metal will be sold and the pro- ceeds turned over to the Red Cross.
NO BOMBS, BUT—
Then comes the matter of refugees. Morrow county doesn’t itself expect to be bombed, but it anticipates that evac- uees may be sent inland from destroyed cities on our eastern coast. So the home defense program is completing a sur- vey of all available rooms in the coun- ty, just in case this type of war emer- gency has to be met later on in a hurry.
Out of Morrow county’s 16 town- ships a new six-man Labor committee has been set up. These six -men are appointing five men in each township, each to report on five consecutive farms, including his own, and bring in a fresh picture of labor to be needed and other timely farm matters. An ef- fort is being made to persuade more farmers to produce sorghum molasses and maple syrup and honey as substi- tutes for sugar.
Morrow county intends to raise more food for fighters. But it would like to see the farm problem simplified. A stag- gering number of agencies, official and
ing “f tiv loc
-_ a De ee ele oe ae ae
ynofficial, now dabble with farm mat- ters. Why not bring them together and unify them and get intelligent and con- certed action, ask Morrow county’s home defenders. As a start, representa- tives of each agency are already meet- ing, twice a month, to discuss methods. “When people get together, construc- tive action is bound to follow,” says a local spokesman.
Maybe the war will eliminste some of this duplication of effort and of ne- cessity settle down to doing the urgent job each day instead of vaunting them-
selves on paper. SMALL-TOWN ENMITIES
Perhaps too the growing imminence of war will heal small-town enmities— and every American village has some— and bring Republican and Democrat, New Dealer and conservative, and all other classes together in a common war effort. Herein lies our national problem, and our only hope for na- tional salvation.
Morrow county is making a big step in this direction. It has its own prob- lems—the county even has two weekly
newspapers and some feuds of long.
standing. Cardington and Edison are ambitious communities of the county and jealous of Mt. Gilead. You have to be tactful to get things done in a small community where every man knows every other man and where each is as good as his neighbor. But the pipe of peace was smoked in a joint meeting held in the basement of the new court house annex on a Monday evening when nearly two score leading men and women who represented all local coun- ty activities met and pooled their prob- lems.
Out of that meeting and similar meetings to follow, Morrow county has drawn a realization that the country looks to it to do a defense job that lives up to the blueprints. Morrow county asks nothing of the folks at Washington. It makes no comments or criticisms. Morrow county is content to handle its home defense job itself. Its Legionnaires are drilling each week, under the leadership of an Ohio state trooper. It doesn’t especially fear spies and saboteurs, because everybody knows everybody else, but it is listen- ing and thinking and organizing. And if it needs any legal authority, Morrow county will rely, not on OCD at far-off Washington, D. C., but on the Ohio State Council of Defense act of May 19, 1941.
It’s worth a minute to tell how Mor-
_ APRIL 1, 1942
row county sprang into the limelight and how this quiet inland village of Mt. Gilead ever merited the attention of photographers and writers and even a spot on NBC’s Sunday afternoon program, “Listen, America!”
In a way Mt. Gilead had greatness thrust upon it. A former citizen—citi- zen for two years—and ex-newspaper editor named Fred Sweet had gone quietly from Mt. Gilead to the Office of Price Administration, the OPA, last Fall. He was young, 32, and had a wife and two children. The blood of zealots burned in his .veins. And he was frankly ambitious; he wanted a larger job.
So Fred Sweet came home on Febru- ary 22nd for a rally. Being on the pub- licity staff of Leon Henderson’s outfit, he happened to mention the matter to a few friends. Quite by accident, one assumes, a special correspondent from the New York Times and a photogra- pher from Columbus, Ohio, were on hand for that Sunday mass-meeting.
"GR SLE MEME ME MM ME
Citizens of Mt. Gilead, Ohio, have a war production pro- gram that really works. It’s called “Production Now,” and the idea behind it may soon spread to other commu- nities. Author Barton made a visit to Mt. Gilead to get the “inside story,” which we present here on these pages.
VOM LE EMM MME
The meeting had been preceded with a pep-up affair on the preceding Wednes- day. Sweet had not been idle. Most of those who made any speech were able to read what they needed to say from typewritten scripts. Incidentally, for the benefit of future historians, I un- derstand that a 45-minute transcription of the meeting was made by Station MRN at Marion, Ohio.
Fred Sweet reminded the townsfolk that Morrow county has a brilliant his- tory. In the Civil War Morrow county had sent more soldiers to the Union Army than any other county anywhere. In the World War Morrow county had sold more war savings stamps, per cap- ita, than any other U. S. county. And in this war, he added, here was an op- portunity for Morrow county to write its name in bright colors on the pages just now being written.
Fred Sweet spoke briefly and well. According to the Times’ special report- er, he said:
“I got to thinking the men in Wash- ington can’t win this war by them- selves. The President can’t win it by himself. The Army and Navy can’t do it alone. They’re all bent down with the greatest load on their shoulders since Christ started up the slope of Calvary. Then I got the idea that the common people back home could win this war. I thought if I got this move- ment started back home, perhaps every little town and village might take up ‘Production Now.’ We can show them how.”
And so a new setup was started, call- ing itself “Production Now.” The idea was for every man to produce all he could—food, guns, and so on-—and help win the war here and now; not in far-off 1943 or 1945.
Fred Sweet’s personal memorandum of “Production Now,” typed at Wash. ington on February 2 and aired 26 days later, called for as many good things to happen at the wave of a wand as any New Dealer could have written into any new alphabetical charter. His own hope was that the enthusiasm for “Production Now” would be nation- wide by March 15. Like a modern Paul Revere he knocked on the villagers’ doors and announced that the enemy was coming. Then he climbed aboard the Pullman and went back to Wash- ington, D. C., leaving Frank O. Van- Sickle, a retired farmer and successful salesman of poultry supplies, as the local chairman, and Elwood Davis, lo- cal county agent, a second dynamo to help build this scheme into maturity and permanence.
PROGRAM CATCHES ON
Things began to happen. Someone wrote to one of the local weeklies, sign- ing himself “Fair Play” and challeng- ing Mr. Sweet’s right to step in and organize anything. In other ways Mt. Gilead rather resented the spotlight. But some things definitely began to happen. The Morrow County Defense Council called a meeting, presided over by Common Pleas Judge P. H. Wie- land, head of that council, and added a labor representative, from the coun- ty’s one labor union (an AFL organi- zation at Hydraulic) to its members. Representatives were added also from agriculture and the schools; there al- ready was a representative there from industry.
{Continued on page 32)
By E. C. MORSE
66 ORALE building” is a loosely- M used term. Often it cloaks something entirely different from the exact meaning. Webster states that “morale is a state of mind with reference to confidence, courage, etc.” It is really more than that. What | mean can best be shown by the actual experience of my company along this uncharted pathway to happiness and beat-the-promise production.
Six years ago the RCAM plant at Camden was seething with labor un- rest. There were two unions in opera- tion, one CIO, the other an indepen- dent, which many called a “company” union. What one union wanted the other opposed, and vice versa. Labor relations in this “house divided against itself” were obviously bad.
In 1936, the CIO demanded what we, at that time, thought was equiva- lent to a lease on the fourth, fifth and sixth floors of one of our factory build- ings. The result was a strike of four weeks, This one was a whopper, and it was settled on the basis of a vote con- ducted by the National Labor Relations
Board. The union receiving a majority
E. C. Morse is manager of the personnel relations department, RCA Manufacturing Co., Ine.
Management and Union Jo
The result: A program that boosts war output and “beats the promise”
of the majority eligible to vote was to be certified by the NLRB and recog- nized by the company as the sole col- lective bargaining agency. The Board declared approximately 9,800 em- ployees eligible to vote.
On election day the independent, or so-called “company,” union boycotted the election, with the result that ap- proximately 3,000 employees voted. Since the independent union was un- der the impression that a majority of those eligible had not voted, it inter- preted the result as a victory for them and celebrated accordingly. But so did the CIO! Wasn’t that a picture of se- renity? After months of delay, the NLRB rendered its decision in favor of the CIO and certified it accord- ingly.
BEHIND THE EIGHT BALL
And where did the company stand? Right behind the well-known eight ball, or a reasonably exact facsimile. By law we were compelled to recognize the certification, but if we did, the in- dependent union (the “company” union, remember?) threatened to call a strike. As a matter of fact we did
10,000 employees
have at least 20 sit-downs after peace apparently was declared. Once again distress and antagonism reigned over members of both groups. Morale was as low as the watery grave of the Bis. marck.
The situation improved gradually, after much of the legal brush and weeds were cleared away. Certification of the CIO was officially recognized and contracts were soon negotiated be- tween the union and the company. With -ontract interpretations purchas- able at a dime a dozen (with 90% dis- count cash), we soon found ourselves dealing in a give and take policy. The union believed it gave more than it took, and of course we felt the same way. But soon the picture changed. Before long we found we weren't pounding the table as hard as before, we weren’t talking as “loud” as before, and our emotions, too, were simmer- ing down. We “listened out” the other fellow and debated the logic and rea- soning behind his opinions, his argu- ments and grievances.
We began to lay our cards on the table, face up, and we took the rap or consequences when and if our decisions
Navy man decorates one of the many merit-award workers
le ee ee Oe ee a > a
wo Build Morale
turned into boomerangs. With sincere open-mindedness we accepted and ana- lyzed union demands and requests. We recognized the union’s problems and offered practical solutions. We recog- nized its faults as well, and brought up these faults with sincere frankness. The union and the company became “part- ners” in one business.
We realized that we were on the same road, and headed in one direc- tion. This “partnership,” and it was just that, developed and gained for us the confidence and trust of the union officials. To be frank, it was a long, hard pull, but today the local union is really appreciative of the problems of management. Consequently, when man- agement now makes demands and re- quests, as it sometimes does, the union carefully analyzes these from the stand- point of mutual benefit.
CO-OPERATIVE PROGRAMS
From the conference room the re- sults of discussions are disseminated throughout the organization, through foremen, union shop stewards, and printed literature. Our employees know continually what’s going on and how policies and decisions are arrived at. We find employee morale constantly on the upgrade, the chief reason being that the union and the management of the company discuss employee matters together and are in agreement when policies and programs are instituted.
It is my belief that we have educated the union and, conversely, the union has educated the company. Both have had a measurable effect on employee morale. One instance, still fresh in my mind, occurred before the war. We were confronted with a situation in our punch press section, wherein certain punched parts could be purchased from an outside manufacturer at 15% lower cost than they cost us. A con- tinuance of this situation was impos- sible, because competition was ex- tremely keen.
We advised the union that the job security of several hundred employees was threatened and asked for sugges-
APRIL 1, 1942
tions. We explained the whole situa- tion to them. After several days the union representatives submitted a plan which suggested a reduction of rates, an increase in productivity, and a de- crease in cost of the parts of more than 15%. Moreover, under the suggested plan employees would be able to in- crease their earnings. We accepted the proposition, and, together with the union, instituted the suggested plan. I don’t have to tell you what effect this plan had on the morale of the em- ployees in the punch press section.
Another instance. I believe a large percentage of complaints and griev- ances arise in the establishment of in- centive rates. Though we still have this problem to a degree, it used to be the most irksome, irritating and contro- versial factor of all complaints. The operators and shop stewards could not understand how a scientific rate engi- neer could sit in his office and accu- rately measure productivity, efficient performance, compute and establish a rate accordingly. What a job we had explaining that!
Without reflecting upon the intelli- gence of any worker or shop steward, the situation parallels the plight of one of our eminent scientists at RCAM, who was explaining to a group of non- technical visitors the functions and uses of the electron microscope. After a half hour’s explanation, one of the visitors said, “What you say sounds logical, sir, but can you tell me how it works?”
And so it was when we discussed micro-motion study and _ scientific measurement and computation of pro- duction rates with union shop stewards
_and officials. During the course of these
discussions, we discovered that many of our own foremen had only a vague idea as to applied time and motion study principles.
We still have this problem, but it has been greatly minimized. In fact, the results of long discussions have borne fruit. I say this because recently some 40 or 50 shop stewards person- ally requested enrollment in a training program in which they could learn
President Throckmorton with Uncle Sam cutout, prize for record-high division
the methods by which we measure productivity and compute rates, so they would be on an “equal footing” when rate problems arise. This kind of in- formation and dissemination of knowl- edge has aided our work simplification program, suggestion plan and other operations so essential to the progress of the company and the building of morale.
TRAINING COURSES
The dissemination of knowledge is an unwritten clause in RCAM’s labor relations program. Executives, oper- ators, foremen, supervisors and the en- tire union organization are learning new things every day. Problems of economics, production and security are being brought out into the open. We have learned that the inculcation of the fundamentals on which a suc- cessful business enterprise is built makes for unity of thought and keeps the whole organization in the middle of the road.
The union, on its part, has sold us the idea of preferential treatment for their shop stewards. It has convinced us that a provision should be incor- porated in our contract that any em- ployee, reporting for work in the ab- sence of notice not to report, should be guaranteed a minimum of four hours’ pay. Prior to this provision it used to be a standing joke among em- ployees when one would ask the other, “Are you working tomorrow?” and the individual would shrug.
{Continued on page 30)
1
———————————————
ET,
OWI OT
ee TAGS PP RMS OE IEEE
=a ae + — Sp MRE FO NGTIS URGE PET ROE BEI
Selling Without
OW are sales managers meeting
the tire situation? How much of
an effect has the rubber short- age already had on sales? How do they plan to get their salesmen around in the future?
A survey, just finished, was made of 1,028 sales managers in 17 states. One hundred thirty-nine sell to wholesale jobbers only; 672 are big jobbers whose salesmen normally cover the en- tire state; 217 distribute in a metro- politan area. What applies to one group is peculiar to it. There is little over- lapping in the problems confronting
the sales managers of the three classi- fications.
NEW SALES METHODS
All face a gradual diminishing of their sales forces as manpower is turned to defense production or active participation in the armed forces. All realize curtailment of transportation facilities is inevitable. None tries to plan ahead very far, but meets each new development as realistically and practically as possible. They foresee an entirely new handling of all sales prob- lems before six months have elapsed.
The metropolitan areas get their salesmen around on subways, buses, street cars and by walking in the city proper. In covering the areas sur- rounding the cities, salesmen are al- ready having to give up their cars for lack of tires. Waiting for buses to the next town may eat up two or three hours. The salesman’s number of pos- sible calls are sharply curtailed. His commissions are reduced. Customers, used to regularly-spaced calls of good- will, now are put out at receiving less attention.
Some companies plan to put sales- men on the trucks making deliveries. The salesman will then have but a short time to look over displays, cor- rect difficulties and take the order for future delivery.
Len Wurre, a well-known writer on indus- trial subjects, is on the staff of The Indus- trial Reporting Service.
12
Tires 5, usw
As tires for trucks wear out, even this method will prove impractical. Dealers will be asked to phone in or- ders. Solicitation by mail and phone may be substituted. Deliveries of all types may have to be pooled; this would mean a sharp reduction in busi- ness, for all trucks now moving have full loads.
The lot of the small business man will be increasingly difficult. Few pos- ters for counter display are being made. Few cut-outs are offered. As the Government urges less and less dis- play to cut unnecessary consumer con- sumption, the small man finds his meager business dwindling. Training these men for other fields of work is imperative.
The medium-sized selling outfit has two kinds of salesmen as a rule. Those who cover a number of stops in a small area and those who make big jumps. The latter have thought nothing of driving 500 miles a day. Reduced now to trains, they are wondering how long before train travel will be denied them. Travel by train is more expensive than car; the waits between trains longer. Here, too, the salesmen are feeling the pinch of reduced incomes, while the companies are worrying over the ex- pense of getting them around in pro- portion to the amount of sales made.
Ve hk kaked dal
It's a big problem—-selling without tires. But Len White offers some practical an- swers, based on a survey of salesman-transportation prac- tices now gaining favor all over the country. Of one thing, he seems certain: Tire rationing will bring drastic change to selling techniques.
BR ESM MaaM eae,
The trade papers and newspapers can turn a helping hand if they will sell these middle groups the advan. tages of small, consistent ads. These sales managers despondently look for. ward to a future total lack of map. power. Trade marks must be main. tained, however; goodwill of the deal. ers must be kept even though supplies may be waning. Advertising must step in here or many in this group will never be able to regain business when the war effort is over. More serious still, if this group does not advertise to hold its dealer trade, it will shortly find all business forever departed.
MUST KEEP SALESMEN
The largest companies realize they must keep their salesmen, come what may. Beginning with the sale of good- will, the modern salesman adds knowl. edge of the latest research his labora- tories are doing. He offers an exten- sive service in finding substitutes for any given product his customers are finding difficulty locating. He asks the advice of company engineers when a customer finds a problem hard to crack. He knows that after the war the small jobber will again be his best cus- tomer. So he does everything within his power to keep that man in business.
Here, too, the telephone comes in- creasingly into play. As personal calls become more difficult, the customer is encouraged to discuss problems by phone. Many big companies are build- ing a fund of goodwill by the unremit- ting effort of their salesmen which will reap large profits 10 to 15 years from now. The salesmen work many over- time hours. One sales manager said his men were becoming the best-posted group on business problems he ever met. That organization never gives up a problem as hopeless, either. There’s always a solution, say these men, and they find it.
As good men are drafted or pressed into advisory government jobs, the large companies continue to train new forces. Some are wondering whether to experiment with women or not. But many feel that women not already in active selling, will shortly be drafted for active duty of one sort or another the same as the men.
Handbills, displays of all sorts, are being sharply curtailed. Increasing emphasis is therefore brought to bear on the remaining advertising—trade, radio and consumer magazines. The
sales managers of this group live from (Continued on page 32)
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—_—_ eS Ee
SS aS Fee ONS lULWDSlCO
Wartime Creed For
By NORMAN LEWIS
my primary business is to do every-
thing within my power to help America win the war. All else is secon- dary to that. America and her allies must win the war.
I will adopt as my slogan the inspir- ing words found in the diary of Martin Treptow, Iowa boy killed at Chateau- Thierry in 1918: “America must win this war. Therefore I will work; | will save; I will sacrifice; I will endure; | will fight cheerfully and do my utmost, as if the issue of the whole struggle depended on me alone.”
I will buy Victory Stamps and Bonds plentifully and encourage my employees to do the same.
NO POLITICS
I will ditch politics for the duration and loyally, wholeheartedly, support the government of the United States. For I realize that most of the rules and regulations now being made by this government, which affect my business or myself, would absolutely have to be made, regardless of what party was in power or what individual in the White House.
I will not say, “If only we had a Republican in the White House,” for I will remember that all through the four long years of the Civil War, Abra- ham Lincoln was the most hated man —by both parties—in Washington.
I will not listen to wild rumors or direful forebodings. “Who said it?” and “Does he know?” will be two good questions that I will ask all of the trouble-mongers.
I will not let pessimistic published statements or prognostications disturb my sanity, my determined optimism, or my peace of mind.
I will realize that many of the changes now being made in our na- tional way of doing business will be
| WILL try to realize first of all that
Norman Lewis is president of The Ridg- way Co., Inc., St. Louis, Mo. :
APRIL 1, 1942
permanent changes, and | will try to adjust my own business to meet these changes.
I will operate on the basis that a business which succeeds and prospers in times like these must constantly search for new ideas, new ways of do- ing things, new and better ways to serve.
I will realize that “as a man thinketh in his heart, so is he.” Usually, busi- ness conditions are bad because peo- ple first think they are going to be bad. I positively will not let fear gov- ern my thinking.
I will patriotically be willing to sub- mit to a curtailment or revision of my normal business activities. I will face the material shortage like a good sol- dier, and | will not put up the white flag of discouragement, apathy, frus- tration, despair. Somehow or other, | will manage to keep my present busi- ness or some business going—however drastically changed or handicapped it may be.
I will try to keep every one of my salesmen employed, whether at selling or any one of a dozen other construc- tive activities; for | know that good salesmanship has been vital to the suc- cess and growth of America, and that good salesmen, after this war, will be worth their weight in gold.
WON'T SPREAD GLOOM
I will try to find new lines, new products for my salesmen and my deal- ers to sell; products, possibly, that none of them has ever sold before. I will tell my salesmen not to unload my troubles nor their troubles onto the disturbed, discouraged, dealer’s shoul- ders, but to make all their contacts with the trade cheerful, confident, construc- tive.
I will, if necessary to remain in busi- ness, combine with one of my com- petitors or a group of competitors, for the duration, to. make necessary war
a
materials. Co-operation is constructive —life-saving.
I will endeavor to practice the Gold- en Rule in all my dealings with my employees, and I shall expect them to do the same with me. To win the war, 100% co-operation between us is abso- lutely vital. As Benjamin Franklin put it, “If we don’t all hang together, we'll all hang separately.”
I will offer awards of merit for out- standing workmanship and for usable ideas and suggestions.
EXTRA SERVICE
1 will show users of my products how to conserve and get the most out of their present equipment, thus re- ducing the possibility of necessary re- placements during the time new prod- ucts are unavailable.
I will continue to advertise, even though I am oversold or my produc- tion has been switched entirely to war materials, because advertising will serve as insurance of my trade-name, my goodwill and my products against the time when more normal conditions return. I believe firmly in the survival of free enterprise in a free world. I am going to devote every effort to assure that survival. I feel that continuous, consistent advertising is one of the most important steps I can take now to insure the future prosperity of not only my individual business, but of America as well.
I will be more patient, more friend- ly, more tolerant with my fellow man than ever before.
I will not “take out” on my family the irritations and problems of my working day. I will come home to them each night with the determination to be calm, considerate and kind.
Above all, regardless of my race or creed, I will trust in God. I will know that my country and myself, that civil- ization and democracy, are safe in His
hands.
SRST IRAE ROOD PFA LP IEC TE Ef ATE 4
i AS TT ST ATER, F TPT RR ME ES, Te tat
If You Want to Make
a Speech—
By CHARLES B. ROTH
certain number—it isn’t a large
number either — of meetings which are addressed by business men as main speakers, he’s quite likely to affect a cynical attitude toward busi- ness-man orators, and conclude that the speaking intelligence of the coun- try isn’t very high.
Recently I went to hear a famous New York advertising man deliver a key speech. This man has written many books and delivered many speeches, and | went with anticipation. Because I am a professional speaker, working at the hardest of all speaking jobs, that of training salesmen, I went with a slight feeling of inferiority.
M cet a man has had to attend a
DON'T READ IT
But the speaker let us all down. He read his speech in the first place, which is a violation of all rules of good speak- ing. He mumbled his words, talked in a monotone. Many of us slept. He’d flown 2,000 miles to make that speech and 800 men had paid $1,600 to hear him!
Because public speaking is such a simple, natural thing, it amazes me to hear a man get up and fail. Any man can become a good public speaker, not just the kind who can get up and give a creditable committee report, but a speaker who is capable enough to face a strange audience of 500 or 5,000 and hold it for five minutes, half an hour, two hours if need be.
There’s a new style of public speak- ing nowadays; a very much better style, a very much easier style to mas- ter. I have known many orators of the old school, the “spread eagle” school. The dramatic pause; the screaming voice at one moment, the purring, scarcely audible voice at the next; the flexible play of expression on the face; the genuflections and gesticulations—
Cuartes B. Rorn is a sales manager and frequent contributor to business magazines.
14
—here are some tips on how to go about it. Why be afraid?
all these were part and parcel of the ancient art of oratory.
Oratory in those days was an art, but public speaking today is artless; and the more artless it becomes the better, for both speaker and audience. The base rule which the modern school of public speaking follows is this: “Be conversational.” A good speaker uses a conversational tone of voice, selects conversational words; just acts friend- ly and gracious and natural in every- thing he does. And the result is an artless type of speech pleasant to hear.
When a man first starts to speak his chief enemy is nervousness. All of us go through that. Overcoming fright is one of the tricks a speaker has to learn. And it is such a simple trick. Usually, I advise men who come to me for ad- vice about how to overcome nervous- ness to use a psychological plan known as “displacement.”
THOSE LITTLE FEARS
The principle of displacement is to displace the fears with something else, some substitute, that distracts your at- tention from your fears. This little trick is known only to the initiates, but it always works. Slight discomfort is the best form of distraction. One man I know tightens his belt until he can scarcely breathe. This takes his atten- tion from the fact that he’s going to make a speech. Another man pinches his knee. But perhaps the best of all forms of attention is a series of deep breaths. Take these and you'll quickly get over it.
When you get up to speak, pause. Most speakers don’t. They go right in- to their dance. Professionals pause, leisurely look around, size up the audi- ence, take all the time in the world. Fully composed, they start to talk. A really good public speaker will not try to bowl his audience over right at the
start. He’ll get it acclimated to him. . self, to his tones, to his voice, by say ing something very banal or very trivial for the first minute or two, never anything important.
When you get up to talk arrange for the first hundred words or so to be extremely inconsequential, something you do not care whether the audience hears or not. Don’t say anything im-
portant, vital, until you condition your audience.
HANDLING NOTES
Many speakers a.: bashful or hesi- tant about using notes. They jot down notes on little cards, which they hold concealed in their hand, or they prop the cards up against their napkin, and steal surreptitious glances at them. The dodge is so obvious that everyone knows what’s going on.
After a good many experiments | have concluded that the best way to handle notes is to hold them boldly in the hand, use them without shame, flourish them in making gestures and not attempt in any way to conceal them. An audience doesn’t resent a speaker’s notes; it shows he has pre- pared his speech.
If you want to speak without notes, however, two courses are open to you. You can memorize. If you speak only occasionally, or if your speech is of extreme importance, write it down and commit it to memory. Some good speakers do. The other way you can work it is to memorize your notes and speak from them, which is easy.
It seems to be so universal a custom for a speaker to tell a funny story when he gets up to make a speech that any man who talks without his quota is committing oratorical sacrilege. But some men can’t tell stories, not even in private conversation; and a poorly-told
(Continued on page 32)
a TES alles llCUD
ae IGS leu lle
How persistent should a life insurance agent be?
| CAN HANOLE MY OWN AFFAIRS, THANK You!
‘*T JOW PERSISTENT should I be?” is a question that plagues every conscientious life insurance agent.
Years ago, it was much harder to an- swer that question than it is today, for the agent’s efforts to sell life insurance met with more resistance. Even now, however, it remains a problem.
> For example, perhaps an agent is try- ing to sell a policy to a man who has a wife and two children but little or no life insurance. He isn’t much interested. The agent visits him several times, but each time he says, “No!”
Should the agent cross this head of a family off his list? Should he give up try- ing to persuade him that his family needs some life insurance? Or should he call again?
P If the agent does try again, this man whose family really needs protection might say, “Tell that agent I don’t want to see him again. I’m not interested... he’s wasting his time!” On the other
IN 1942
APRIL 1, 1942
Nie
hand, the next call might be the time when he would say, “Yes.”
> Suppose the agent makes that next call —and receives the answer, “Yes.” Then suppose something happens. The family of this new policyholder will not be left without funds and the widow will not have to depend on relief or relatives, or go to work, or take the children out of school.
Many seasoned life insurance agents have had such an experience—and it is a lesson they never forget. It explains why
IN 1882
conscientious agents, like crusaders in every good cause, are loath to take “No” for an answer. It explains, too, why many Americans have the life insurance they now own; some agent, through repeated calls, helped them to buy the kind and amount of life insurance they should have.
> Every life insurance agent knows that there is one group of people who never criticize an agent for being too persistent. They are the beneficiaries of the men who finally said, “Yes.”
COPYRIGHT 1942——METROPOLITAN LIFE INSURANCE COMPANY
This is Number 48 in a series of advertisements designed to give the public a clearer understanding of how a life insurance company operates. Copies of preceding advertise- ments in this series will be mailed upon request.
Metropolitan Life Insurance Company (A MUTUAL COMPANY) Frederick H. Ecker, CHAIRMAN OF THE BOARD
1 MADISON AVENUE, NEw York, N. Y. .
ihe (
Leroy A. Lincoln, PRESIDENT
GLAD You DROPPED In! | NEED Some ADVICE!
RE
oti HT
Kh. 4 _wttbel
UNION CARBIDE AND CARBON CORPORATION
AND WHOLLY OWNED SUBSIDIARIES
EXCLUDING THOSE OPERATING OUTSIDE THE UNITED STATES AND CANADA
CONSOLIDATED BALANCE SHEET
December 31, 1941
* ASSETS CURRENT ASSETS
Cash United States Treasury Tax Notes and Accrued Interest... Marketable Securities (Cost or Market, whichever lower) RECEIVABLES ( After Reserve for Doubtful)
Trade Notes and Accounts... Se Ret Be
Other Notes and Accounts...............0..0..0000..... INVENTORIES (Cost or Market, whichever iis’
i
a . .. cossscntenvecnsees
Finished Goods .........................0.-
TOTAL CURRENT Aseuzs .
FIXED ASSETS (Cost or less )
Land, Buildings, Machinery, and Equipment Deduct—Reserves for Depreciation and Amortization.
INVESTMENTS in Wholly Owned —— Subsidiaries Excluded from ase cam deimnnnpansssnoitnbenidntoueeeelenenie
(After eliminating the amount esstofere included i in Consolidated Earned Surples for Wholly Owned Foreign Subsidiaries)
OTHER INVESTMENTS (Cost or less } Affiliated Companies not Wholly Owned— In United States and Canada .... Outside United States and Canada I II oo carisepeciersnssecesnscnsossctenisreses DEFERRED CHARGES
Prepaid Insurance, Taxes, etc....
PATENTS, TRADE-MARKS, AND GOODWILL TOTAL ASSETS...
CURRENT LIABILITIES Accounts Payable ........................ oe Dividend Payable January 1, 1942............ Installments due within one year on Sinking Fund Debentures ACCRUED LIABILITIES Taxes (Including Income and Excess Profits Taxes) eT ey TE Other Accrued Liabilities .. TOTAL CURRENT LIABILITIES |
DEFERRED LIABILITIES UNDER GOVERNMENT CONTRACTS...
FIFTEEN-YEAR, 244% SINKING FUND DEBENTURES OF UNION CARBIDE AND CARBON CORPORATION DUE SEPTEMBER 1, 1953 FS oe. Less—Sinking Fund Installments due within one year ( provided for above)... i
Nee noe scasvsnnsasvesnveianeenes CAPITAL STOCK OF UNION CARBIDE AND CARBON CORPORATION— 9,277,788 shares of no par value not including 136,649 shares held by the Corporation EARNED SuRPLUS—After elimination of $7,677,310.65 heretofore included in Consolidated Earned Surplus for Wholly Owned Foreign Subsidiaries not consolidated in 1941
NoTes RELATING TO FINANCIAL STATEMENTS
States and Canada. The investment in such subsidiaries, in- cluding advances, is stated in the Consolidated Balance Sheet at cost or less. Only that part of the income of such subsidiaries received during the year in dividends is in- cluded in Consolidated Income. Unaudited reports covering
1—In previous years all wholly owned subsidiaries were con- soli However, owing to inability to obtain audited ac- statements, it has been necessary to exclude from m in 194] the assets and liabilities of wholly vaned foreign subsidiaries operating outside the United
——
$ 32,581,433.85 3,546,031.93
$ 34,284,327.47 14,876,258.72 __ 12,326,593.62
$314,548,644.1] 111,425,405.51
$ 230,566.17 3,392,994.42 992,824.07
$ 55,469,516.32 10,020,050.40 2,565,058.41
36,127,465.78
_61,487,179.81 $165,669,270.72
203,123,238.60
21,593,292.81
4,616,384.66
2,759,836.07
2S a $397,762,023.86
$ 16,483,130.65
saa 6,958,341.00 sate tidciiacns 1,800,000.00 $ 49,171,340.51 235,000.00 __2,200,330.08 51,606,670.59 RRL i E $ 76,848,142.24 Paes ee 1,094,889.22 $ 28,200,000.00 __1,800,000.00 26,400.000.00 Be a ARs $104,343,031.46 $192,879,842.43 100,539,149.97 _ 293,418,992.40 $397,762,023.86
(Continued on following page)
UNION CARBIDE AND CARBON CORPORATION AND WHOLLY OWNED SUBSIDIARIES EXCLUDING THOSE OPERATING OUTSIDE THE UNITED STATES AND CANADA
CONSOLIDATED INCOME AND SURPLUS STATEMENTS Year Ended December 31, 1941
INCOME Maison cians sade Anish dod drag dedeasabres ovasaon tatebinesc bea saeas Reacts LU oe a dnb tid ide $106,759,419.67 Deduct— ESS AEE EN! SACLE BORED EAS WR $ 13,637,195.86 I Fe ee ee ee ee a ew 6,667,578.20 ee 771,136.26 nn NS TEE EPI ET I ADCP TEE Se es EF MS eee _ 43,641,884.66 64,717,794.98 LESS ERIE 6 2 ae a aL eee Seek “aig ity Ate Vea ee Er eek ee SWAN $ 42,041,624.69 SURPLUS
EARNED SURPLUS AT JANUARY 1, 1941 Add—
Net Income for year (as above)
Deduct— Dividends Declared
Cancellation of Valuation Reserve applicable to Marketable Securities sold in 1941
$ 95,648,684.98
$ 42,041,624.69
Elimination of amount heretofore included in Consolidated Earned Surplus for Wholly
Owned Foreign Subsidiaries not consolidated in 1941
Payments on Past-Service Annuities relating to prior years under Employees’
Retirement Plan
Decrease in Market Value of Marketable Securities at December 31, 1941
EARNED SURPLUS AT DECEMBER 31, 1941
(Notes continued from preceding page)
less than a full year indicate that the income of companies paying such dividends will exceed the amount of dividends paid.
With respect to Wholly Owned Foreign Subsidiaries heretofore consolidated, the amount of $7,677,310.65 pre- viously included in Consolidated Earned Surplus is now eliminated.
2—Current assets, liabilities, and earnings of Canadian sub- sidiaries consolidated have been converted at the official rate of exchange.
3—Certain raw materials were charged into production on the “last in—first out” method rather than the “average cost” method previously employed. The effect of this change has not been material.
4—Between January 1, 1938, (or date of acquisition, whichever is later) and date of latest reports, which are unaudited, the equity in the net worth of certain affiliated companies car- ried in Other Investments at $2,627,877.73 increased $666,- 044.29, of which $332,230.50 is applicable to the current period. No reports are available for 1941 on the remaining affiliated companies carried in Other Investments at $995.- 682.86.
Unton CarBIpE AND Carson CorPoraTION :
We have examined the balance sheet of Union Carbide and Carbon Corporation and its wholly owned subsidiaries, excluding those oper- ating outside the United States and Canada, as of December 381, 1941, and the statements of income and surplus for the year then ended, have reviewed the system of internal control and accounting proce- dures of the companies (except as noted below) and, without making a detailed audit of the transactions, have examined or tested account- ing records of the companies and other supporting evidence by meth-
s and to the extent we deemed appropriate. Our examination was made in accordance with generally a ted auditing standards ap- plicable in the circumstances and included all procedures which we considered necessary.
We have reviewed the statements of one subsidiary audited by
AUDITORS’
Bat, __1,284,447.50 43,326,072.19 $138,974,757.17 ie Ne ea aie ial 7,677,310.65 (8c Giai2s me AP 2,893,633.73 es ae 31,298.82 _38,435,607.20 Seb Sh SEO Ne ROR $100,539,149.97
The Consolidated Net Income does not include any part of the undistributed net income of affiliated ccmpanies.
5—The Trustee of the Savings Plan for Employees holds Col- lateral Debentures of Carbide and Carbon Management Cor- poration secured ‘by 180,025 shares of stock of Union Car- bide and Carbon Corporation under plans for employees. As of December 31, 1941, the assets held by the Trustee amounted to $11,071,121.42 and the unpaid balance of amount borrowed by the Trustee in connection with the purchase of debentures was $4,600,000.00. Union Carbide and Carbon Corporation has agreed to maintain the assets in the Trust Estate at an amount sufficient to repay the indebtedness and permit the distribution of the Trust Es- tate to the persons entitled thereto.
6—Additional payments (in the maximum amounts acceptable to the Insurance Companies) relating to years prior to July 1, 1937, were made to Metropolitan Life Insurance Company, The Prudential Insurance Company of America, and other insurance companies to apply toward the purchase of Past- Service Annuities under the Employees’ Retirement Plan. These payments were charged to surplus. Payments for the purchase of Future-Service Annuities were charged against income.
REPORT
other independent accountants and have accepted these statements for the purpose of consolidation.
In our opinion, the accompanying balance sheet and related state- ments of income and surplus present fairly the position of Union Carbide and Carbon Corporation and its subsidiaries consolidated at
mber 81, 1941, and the results of consolidated operations for the year, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year except as to the change in the basis of consolidation as explained in Note 1 and as to the method of charging certain raw materials into produc- tion as explained in Note 3 of notes —— to financial statements. In our opinion, these changes are in accordance with generally ac-
cepted accounting principles. RD MAN AND CRANSTOUN Certified Public Accountants
New York, N. Y., March 21, 1942
APRIL 1,
1942
17
i wy
a ee
t.
As oS) ~~
By GENE ROBB
ECISION to convert all industry except a minimum fringe for civilian necessities and the “in-
ventory” registration of 90% of all men in the U. S. labor force spell out repercussions which extend beyond winning this war. As war comes to form the backbone of all the jobs in America, a new era of military domi- nance is in prospect. An armed force of 10,000,000 men is the end-of-1943 goal. Its adequate support will require more than twice that number of work- ers behind the lines. Occupational de- ferments for farmers and production men will increase in direct proportion to the growing size of the Army and Navy. If present plans are carried out, there will be few men under 50 who are not working for the war within 20 months or so. . . . Until greater con- trol over labor is crystallized and throughout the “tooling up” period be- fore U. S. can launch an offensive, al- most constant shifting in key Govern- ment positions will be inevitable. . . . Most defense agencies are coming un- der fire which currently centers around WPB, its bark that is sharper than its bite, and dollar-a-year men. . . . Such non-defense bureaus as NYA and CCC will be spanked and drastically cur- tailed. .. . There are recurring reports of at least three cabinet switches to be made before November elections.
WAR LEADERS
Henderson is credited on all sides with making a splendid start in OPA setup, but tough days lie hard ahead when rationing begins. . . . Thurman Arnold’s fresh outburst against union excesses is reviving rumors of his im- pending resignation—still unlikely. . . . Ickes is becoming the New Deal’s “for- gotten man.” . . . WPB powers, second to Nelson, are two Sidneys—Weinberg and Hillman.
MILITARY DRAFT
All 1-A registrants and most men with working wives will be called up by end of 1942. . . . Drain on family
men now is expected to start early next Spring; dependencies won’t be effec- tive grounds for deferment thereafter. . . « Legislation will be passed to pro- vide $20-$30 a month per dependent, plus some arrangement for Government to take over and freeze equities on small homes that draftees are buying.
LABOR DRAFT
Full-scale mobilization of manpower is coming. . . . War factories now under construction will make it neces- sary to “invite” at least 2,000,000 men to move to new jobs. . . . Labor at bases outside the country already is a critical problem. . . . White collar men, office help and other workers in non- defense lines will be offered war train- ing courses by mid-Summer.
PROFITS DRAFT
Any curb on labor’s spiraling wages will be matched by profit limitations around 6% on war contracts, but “mu- tual sacrifice” formula is not yet jelled. Out of conflicting efforts to raise and lower taxes on capital gains, a com- promise leaving terms about as they are now seems likely. Supporters of re- tail sales tax are making headway against Treasury’s proposal to double income levies. One strong argument: Number in upper-income brackets will
be much smaller in 1943.
CONVERSION IN INDUSTRY
Excepting food, clothing and com- munications lines, the only conversion questions now are “how” and “how fast.” Drastic changes also will be forced upon essential consumer indus- tries via simplification and standards— defrilling and textile adulteration in apparel, a “revolution” in packages and containers for foods. Worker-man- agement councils in war plants, with the Labor Division of WPB dominat- ing their organization, are among the bitterest pills for some employers to swallow, Nelson’s wage-incentive idea is running into union sniping.
THE WASHINGTON OUTLOOK
TRANSPORTATION
General priority system on move- ment of everything is not far distant. With tire problem destined to become acute by late Summer, railroads will almost completely replace trucks for distant hauling. Passenger travel will be restricted before the vacation sea- son and freight shipments will be lim- ited to military and necessary civilian items by Fall. While U-boat sinkings (faster than launchings) create pres- sure for speedup of shipbuilding, good progress is reported in “assembly line” type of ship construction.
CRACKDOWNS
Carelessness and inexperience are blamed for as much sabotage as enemy agents: Even stiffer inspections by Army and Navy will be ordered. In- ventory hoarders, despite earlier com- mandeering threats, are suffering no more than polite reprimands thus far; requisitioning to date is limited to companies whose stocks have been frozen by conversion orders. Congres- sional inquiries foreshadow a much tougher policy by WPB in the very near future.
CONVERSION AT HOME
Oil-burning furnaces that can be re- converted to coal will be changed over this Summer. Housewives with a bit of sugar ahead are avoiding the “hoarding” stigma by converting it now, rather than later, into jellies and preserves. Curtailment of home use of electric power will be ordered within three months. Present plans on gas ra- tioning are to start easy, tighten up later—allow five gallons weekly to all, more upon evidence of need.
PROPAGANDA
There still is much talk, less action, about coordination of government press, censorship, and propaganda activities. An over-all top man may eventually be slid in over the separate OFF, Donovan, and Nelson Rockefeller press set-ups.
Truck Operators, Large and Small, Will Heartily Welcome
CHEVROLETS
‘TRUCK CONSERVATION PLAN
CONSERVE Oil
CONSERVE ENGINE
CONSERVE BRAKES
pomet = Wows
|
WW
monn
CONSERVE
CONSERVE COOLING SYSTEM
CONSERVE EVERY VITAL PART
A MOBILE NATION IS A STRONG NATION
Always SEE YOUR LOCAL CHEVROLET DEALER FOR SERVICE
APRIL 1, 1942
on any car or truck
B. C. FORBES REVEALS:
Willkie For Investors’ Union: Upturn Before Mid-Year?
HE stock market acts as if it is en to drag along in the
doldrums, near the bottom, until stimulated by more cheerful war news. This writer is hopeful that such news will come by mid-year if not sooner.
Receipt of huge war orders no long- er stirs enthusiasm among stockholders. This is understandable. Some of our foremost corporations awarded colossal Government contracts report mediocre net earnings available for distribution in the form of dividends. Taxes even for last year show terrific increases, and all indications are that rates will be stiffer this year.
General Motors, for example, paid three times as much in taxes per com- mon share as it paid in dividends, an extraordinary showing. Its tax bill ag- gregated $424,854,000, more than dou- ble its 1940 levy, and equal to $1,428 for every one of its employees in this country.
It is becoming common for other companies to hand over to tax collec- tors more than remains for those fur- nishing the capital to create them. Not only so, but several leading industrial enterprises, swamped with war busi- ness, have already reduced their divi- dends.
Moreover, some high-ups at Wash- ington favor still harsher treatment of industry and business, of stockholders. Indeed, the disposition at Washington palpably is to regard investors as worthy of no consideration whatsoever, whereas labor unioneers and farmers receive highly preferential treatment.
Politics rule Washington. Both labor and farmers maintain influential lob- bies. Investors, wholly unorganized, don’t.
In a recent speech this writer urged the organization of an Investors’ Union, for the purpose of striving to obtain for them some measure of fair play. The suggestion has created nationwide interest.Many of the letters received
have named Wendell Willkie as the ideal man to head such a movement. The writer, an old friend, sounded him out. Here is his response:
“I have your letter calling my atten- tion to your suggestion that I organ- ize the small securityholders of Amer- ica and the response which you have received as a result of its publication.
“Other tasks that I have undertaken make it impossible for me to assume such an obligation.
“It is not strange to me that the small securityholders of America feel that they are without representation and that their small savings are being destroyed. In these conclusions they are correct. This is not a phenomenon of war times. It is a condition that has been existent for the last 10 years and which will continue as long as certain political powers remain in power. To this result three things have contrib- uted:
“1. The errors of business and fi- nance in the decade prior to the de- pression.
THat DirFeReENcE In U. S. DEFENSE TOOLS
Courtesy N. Y. Tribune, Ine.
“2. The failure of business leader. ship individually, instead of through trade associations, to fight for the just protection of securityholders.
“3. The capitalization by certain political forces of discontent and the advancement of policies inimical to the welfare of securityholders without such policies adding beneficially to human and progressive social conditions.”
The whole future of our private en- terprise system is at stake. It is essen- tial to the preservation of democracy that employment-giving enterprises not be utterly ruined by taxation and by labor domination, that they be enabled to maintain some measure of reward for the capital enabling them to func- tion—even that it also be made pos- sible for them to lay up reasonable re- serves to meet post-war conditions, in- cluding financial aid for the millions of their workers who will have to be dropped when war contracts are can-
celled.
Is industry nearing the end of its labor troubles?
Sentiment answers “Yes.”
Whether Congressmen will be swayed more by their constituents than by the stand taken by the Administration re- mains to be seen.
Transition from peace to war opera- tions is gaining notable momentum, will shortly become still more acceler- ated. Industry is making an astounding record in this direction. But, tempo- rarily, at least, unemployment has ex- panded. ;
Nevertheless, retail trade continues to run better than 20% ahead of a year ago. This, too, despite widespread in- stitution of systematic deductions from pay envelopes for the purchase of war obligations.
In face of everything, including Ja- pan’s alarming successes in the Pacific, the writer believes that the turn will come within the next two-three months.
FORBES
IMAGINEERING
IS A KIND OF SKY-HOOK
All the tools America has, all we can contrive, are pre-empted for the job at hand.
While every hand is busy with production, our vision may properly be lifted beyond the horizon to meet the challenge of the future.
Imagineering is a word for it, a sky-hook to lift our thinking, a formula for helping to decide where we go from here.
Imagineering is looking at the things you used to make, and deciding that if you don’t make a prime job of finding out how to make them im- measurably better, you may never be asked by your customers to make them again.
Let your imagination soar, then engineer it down to earth. Forget your old assumptions. Bury your old prejudices. Look at all the developments that are coming out of a thousand research laboratories. Invite suggestions.
For there are millions of new jobs to be made when this war is over. They are your responsi- bility, and ours.
Now is the time to do the Imagineering which will make those jobs. Perhaps you would like to have us help you explore the possibilities of Alcoa Aluminum.
Atuminum: Company oF America, 1981 Gulf Building, Pittsburgh, Pennsylvania.
APRIL 1, 1942
ALCOA ALUMINUM GY
Ren. T.M.
es Peres es 5 st sp sins
Or THE 5,000,000 workers now en- gaged in war production, only half a million are women. At the end of the last war, we had 9,000,000 workers in war plants, of which at least 2,250,000 were of the fair sex. Before the year is out, however, women should make big gains in the industrial world. Off- cials predict a war-plant force of 15,- 000,000, including 3,500,000 women. *
If the Japs get control of the Indian Ocean, there will be little chance of getting any more jute, from which we make burlap (the wrapping paper of the wholesale trade). What’s worse, no suitable substitute has yet been de- veloped.
*
Though the sales convention has — just about disappeared, all but the so- called “luxury” hotels are enjoying a good business. But those little “extra” services are going. Fewer towels are
being handed out, also less stationery. In many cases, soap is not wrapped. Even menu cards in some hotels show the impact of war: They’re smaller in size, and short on luxury items such as squab, caviar.
*
The evacuation of. aliens from the West Coast has created a labor short- age on some truck farms, in many fisheries and laundries. Of course, thousands of homes are losing their domestic servants.
*
Starting this month, manufacturers in all fields will be obliged to make a monthly report to Donald Nelson on their progress in conversion to war work. Report forms (three pages) are being furnished for the purpose.
*
Near-drought conditions in Texas may mean many grassless ranges, blast hopes of a record wool clip this year.
Already, Jap feints at Australia make the supply picture black. *
Even the Treasury is conserving ma- terials and labor these days, with the result that new money will soon be. come scarce. Hard hit will be banks, hotels, other institutions that have made a practice of handing out crisp new bills.
*
Rubber footwear, even heels of re- claimed rubber, may soon be scarce, There’s talk of rubber “lifts” for heels, of retreading old galoshes and over- shoes. One farmer recently wrote to Uncle Sam: “Why not encourage peo- ple to shift heels, like tires.”
*
A ban on the manufacture of farm tractors requiring rubber tires goes into effect May 1. Production of this type of equipment has already been cut 60%, and makers are being pressed
HOW CONDITIONS COMPARE WITH A YEAR AGO A / f, et { Uf 14), SS LAAs 1 Ay] / LIAL TLS LIVIA \ / / f/f ‘/ / SS . y Cc Y, 4 Hi Uy, Wf), , La ft) LL ely \ ; 4) L SULETTA NEES / f; / LLG 1 I}; Hh, HLL, /; ST NY / Vig HL / 4fTf, fj f / Ui), Uf / YN) /B//7, 4 / YOM VU IMITI LLL 4 Mir / / Vill fff / / WELT Uf Vij ei e.. ; UY Ys ij yy Hy WH; SEU, oly; yy WRU AUNT, NAIL ANY; j / UN) Y, if, 1 bets / “// iy : VF, cS 4 Vfl fj i}, iff} ‘ 4 WEI, / oA if, HE, LL Lf i Yh /, 44, Y Z, eas , / /, g ; i; ff WY iy / Wi y 7; / Ae! fy LMM 1) iff, iL j VEE 4) VL, Yi fi 11 be Sf} ts; HNL L/L Hit ALLIEN AY) 1 VTS 'B ALY, yy MM, Wii) {1 C BY, LATEST CONDITIONS / 4/// / D A Vfi4/ i / cai yh 3, Mj 7 i "7 Cc Geet “ APRIL 1, 1942 VAL f / 1/ “4 Second-best / Wik), YIN, / if Mf i Sel WOW CONDITIONS ARE CHANGING © AREAS FOR SPECIAL CONSIDERATION MI] GI) Dey b Numbers in circles locate the largest cities which heve recently a Little or no change in ‘The poorest territories compared more favorably with the same time # year earlier than a ene -onth or more —<— at previous time since December, 1941. oor - . apse 4. New Bediord, Mass. 6. Mobile, Als. A 149% and higher A, SN eeeeaain emer ay mag alee. ; sion arses (may be temporery) oa © B.C. Forbes Publishing Co. ‘ 7 €. St. Louis, m. D 80% to 104%
FORBES
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to switch to steel-wheel equipment as soon as possible. *
Watch for more retail price-fixing, also rationing, first in the food and clothing fields. The rising cost of liv- ing is slowly shifting emphasis of con- trol to the retail front.
*
More and more banks are giving up their national charters to operate un- der State laws. Two reasons for the trend: State laws have smaller capital requirements; (2) they allow exchange charges not allowed national banks.
*
So far, there are no signs of a ceiling for amusement prices, although most are climbing. According to OPA, “oth- er things are more important.”
*
Jewelry makers have been ordered to get war work, since they will get no more tin, lead, copper, etc., which go into mass-produced items. Of course, there are plenty of so-called “precious metals,” but demand for this class of merchandise is not enough to support the industry. Besides, jewelry makers (as a whole) have skilled hands. Few can read blueprints, but most can be trained to do precision work. Jewelry makers’ biggest worry: Will they be allowed to go ahead on semi-processed goods? Recovery of metals, at this stage, would mean a big loss.
*
From now on, only two types of bi- cycles—one for men, the other for wo- men—will be made. Furthermore, over-
all production will be held down to 42% of last year’s monthly average. *
Art and antique dealers are lowering prices to offset the effects of higher taxes on wealthy clients. . . . Several cities are building bicycle racks in business sections, so that cycling shop- pers will have a place to park... . Wall maps, designed for quick reference, fig- ure into new home-decoration schemes. ...A study of prison labor, just com- pleted, shows (1) that less than 1% of prisoners work for private contractors; (2) that 88% of them work on public improvement projects. . . . Some after- the-war predictions of Norman Bel Geddes, industrial designer extraordi- nary: (1) Pre-fabricated, air-condi- tioned houses will be sold for $1,600; (2) autos that sold for $700 before the war will be priced at $350; (3) flivver
planes, with wings that fold up to save
garage space, will be common.
APRIL 1, 1942
Sales High-Spots
To assist sales managers, collection managers and others in similar positions in directing the energies of their staffs to the most promising territories, Forses presents in each issue five lists of cities which should give the best results. Each group of cities, or territory, covers an area having an urban population of at least one million. The stars and numbers indicate the number of successive times cities have been high-spotted.
BEST Dallas, Tex. * Fort Smith, Ark. 2* Fort Worth, Tex. ® Enid, Okla. * Tulsa, Okla. * Vicksburg, Miss. 3*
Wichita, Kan. * Pine Bluff, Ark. 4* Little Rock, Ark. _ Pittsburg, Kan. 2* Shreveport, La. Okmulgee, Okla. Jackson, Miss. Texarkana, Tex. 4* Joplin, Mo. 2* Greenville, Miss. 12*
Muskogee, Okla. 2® Texarkana, Ark. 11*
SEconD BEsT Birmingham, Ala.4* Augusta, Ga. Memphis, Tenn.2* Pensacola, Fla. * Chattanooga, Tenn. 2% Greenville, S. C. Savannah, Ga. Dothan, Ala.* Mobile, Ala. * Albany, Ga. * Montgomery, Ala.* Valdosta, Ga. * Charleston, S. C. Newnan, Ga. 4*
Tuirp Best Baltimore, Md. Lancaster, Pa. Washington, D.C. Chester, Pa. Wilmington, Del. Hagerstown, Md.
St. Louis; Mo. Sioux Falls, S. D. 3% Kansas City, Mo. Mason City, Ia. 3* Omaha, Neb.3% Sedalia, Mo.
St. Joseph, Mo.3% Aberdeen, S. D.
Sioux City, Ia.3% Lawrence, Kan.
E. St. Louis, II. Atchison, Kan. 3*
Waterloo, Ia. * Fremont, Neb. FirtH Best
Cincinnati, Ohio* Hamilton, Ohio 1l* Indianapolis, Ind. 2* Middletown, Ohio 5* Fort Wayne, Ind. 2*
FourtTH BEst
Automobile Outlook
By NORMAN G. SHIDLE
MPLOYMENT is on the upgrade
again in Detroit and other auto- motive defense areas. That doesn’t mean that the war production lines are all in operation yet—far from it. It does mean that the changeover is being accomplished quicker than most execu- tives thought possible. But employment will not equal the 1941 civilian pro- duction peak until mid-Summer. By the end of 1942, the 1941 peak will be doubled.
Meantime, a good many automotive companies already have more men on war work than the average employed in automobile production in the 4,470,- 000-vehicle year of 1940.
*
Helpful in speeding the most efficient use of automotive facilities on war out- put are five newly-functioning product committees of the Automotive Council for War Production. Automotive men building aircraft engines are pooling their experience in one of these com- mittees; men building airframes are co-operating on another; those engaged
in ammunition manufacture, on tank production, and artillery production on still others. Top-flight production exec- utives are making these ACWP com- mittees practical working tools in the war effort, with plant visits supplement- ing production clinics in practically every branch. *
Automotive engineers, who last year so effectively reduced the use of criti- cal materials in automobiles, have turned their attention to military prod- ucts. They are moving rapidly to assist in the job already well started by the armed services of bringing critical ma- terial to a minimum.
Shortage of replacement parts for passenger automobiles seems certain within the year, unless lack of rubber reduces car use so that parts aren’t worn out—which probably is what will happen. In any case, critical materials simply are not available to permit the building of the one-and-a-half times 1941 production of parts “permitted” by government order.
ae ee Se
—
RAID COAT
It is now possible to make shatter- proof glass out of the ordinary variety. You simply apply a transparent resin liquid, developed by Roxalin Flexible Finishes. This prevents the glass from splintering if struck. Plain soap and water removes the coating.
DOWN TO EARTH
International Harvester is teaching women to drive, repair and service tractors, other farm machinery. The training program designed to help customers combat the growing farm- labor shortage, is conducted through the company’s dealer organization.
WHISPER DETECTOR
That’s the last word in equipment to guard plants against sabotage. It’s a system of several super-sensitive mi- crophones and a replay station, devel- oped by Stromberg-Carlson. The mikes, installed at concealed positions along the plant fence or yard, pick up the slightest sound made by an intruder. So sensitive are the microphones that a snipped wire sounds like a clap of thunder to guards.
LETTER
In some States, attendants at Shell service stations are handing customers a letter signed by the company’s vice- president, L. C. McLaren. The letter (boiled down): Because of the war, quality of gasoline is not what it used to be.
TIRE TALK
Search for a good rubber tire sub- stitute is on, with both professional and amateur inventors in the race. Rubber companies are deluged with ideas from customers, and the National Inventors Council reports that 1,500 tire ideas have been received since the emergency arose. Some of the ideas under consideration (if they have not
already been discarded) : Helium-filled
balloons; the use of springs instead of inner tubes; tires of leather and tar; tires of processed soy-beans, sun flow- ers, fig trees.
SALESMEN FOR RENT
In Cincinnati, there’s a new com- pany that rents out salesmen by the day, week, month, year. According to the company, which pays the men sal- aries, they are “ideal for sales drives,” especially the door-to-door type.
BIG ORDER
General Motors has taken on a new, vital war assignment beyond the scope of its huge production effort. The as- signment: (1) The company will help train Army mechanics needed to ser- vice GM fighting equipment. (2) The company will put its own engineers in the field to study operating perform- ance, in the hope of making mechani- cal improvements. (3) The company
will assist the fighting forces by having replacement parts on the spot when needed.
PREMIUM PLUS
Pig-bank premiums are nothing new. But now Centennial Flouring Mills, Seattle, is offering the banks with coins inside. The banks are packed in the flour bags.
SKY WAY
Idaho mountain slopes are now be- ing grass-seeded from airplanes. The new technique is designed to increase areas for cattle range, provide a habitat for game, remove threats of erosion.
GERMLESS FACTORY
Ultraviolet lamps have been installed in the air-conditioning system of the Hillside, N. J., plant of Bristol-Myers. Since the lamps are effectively bacteri- cidal, the combination of lamps and air
Blackout Awning
THE LATEST in equipment for blackout protection is this metal awning, made in segments of “galvannealed” steel that nest to- gether in a telescopic manner. For
sunlight protection, the awning is lowered half way; for complete blackout, all the way down. Ac- cording to the maker, Acklin Stamping Co., Toledo, the device operates as easily as a roll-top
desk. There’s a lock on the inside.
5 oe
om FX
ed he rs. ri-
air
conditioning provides an atmosphere that is not only free of dust, but almost 100% sterile as well. Absenteeism rec- ords will test the value of the idea.
IDEAS IN MINIATURE
Strathmore Paper Co., West Spring- field, Mass., has issued a-noteworthy promotion piece: “How to Build To- morrow’s Business.” A portfolio type of booklet, it contains actual minia- tures of 15 ideas for institutional pamphlets, statements, house organs, that war-active companies can use to keep their old customer contacts.
"GET IN THE SCRAP"
So advertises Atlaatic Refining, cam- paigning to salvage the steel in old license plates. Atlantic dealers change plates free of charge, hold the old ones for collection and sale, as scrap, through the usual channels. The money realized goes to United Service Organ- izations. ‘
SERVICE FLAGS
The First National Bank, Palm Beach, Fla., is giving service flags to all resident families with sons in the fighting forces. The flags have a red border, a white field on which is cen- tered a blue star (or stars, depending on the number of sons in the service).
HELIUM “WELD”
It is now possible to weld magne- sium, other inflammable metals, impor- tant in aircraft production. Helium, the non-inflammable gas used in blimps, does the trick. Through use of a special welding torch, the gas is projected on the point to be welded; this “blankets” the welding operation, does away with danger of ignition.
"FROM LITTLE ACORNS .. .”
Pratt Institute, Brooklyn, has devel- oped a process of making plastics and soap from acorns. The plastics are not quite water-proof and are limited to dark colors, but these are considered to be “minor defects” that will be cor- rected with further experimentation.
TWO IN ONE
Remington Rand has just issued a combination “buyer’s guide and price book,” which is designed to do an in- formative selling job in these days of curtailed (civilian) production, de- pleted sales staffs. Incidentally, the book marks an about-face in the com- pany’s long-standing policy of not list- ing prices in catalogs.
APRIL 1, 1942
HE War Production Drive is
a voluntary effort. Its success is up to the men and women, labor and management in the plants.
The plan provides for joint com- mittees representing labor and management in each plant to stim- ulate war production.
This drive is designed to in- crease the production of weapons now and not to further the special interests of any group. It is not a plan to promote company unions. It is not a device to add to or tear down the power or position of any union. It does not interfere with bargaining machinery where it ex- ists. It is not designed to conform to any plan that contemplates a measure of control of management by labor.
It does not put management in
Our Objectives
By DONALD M. NELSON
labor or labor in management. It is not a management plan, a labor plan, or any other plan. It is the War Production Drive plan. It is a perfectly simple, straightforward, effort to increase production.
The plan calls for greater plant efficiency through co-operation. That means if anyone has a sug- gestion as to how we can do our job faster and smoother, that sug- gestion must be passed along to where it will do the most good— the most good for our country and for free men and women every- where.
* (This statement by Donald M. Nelson was sent to us “for what- ever use you choose to make of it.” We print it here in the interests of “greater production now.” )
COPY THEME
Mennen (shave products) has a clev- er advertising theme. Instead of plug- ging products, copy promotes sugges- tions on how civilians can co-operate in the war effort—i.e., give neighbors a lift, rent spare rooms to war workers, carry small parcels, save scrap.
WAR ORDER DIRECTORY
A directory of war work to be sub- contracted will soon be tried on a lim- ited scale in the Chicago area. Selected prime contractors will list the work they have to do, classifying each job by the machines and labor required to do the work.
BOTTLENECK
So far, there’s no shortage of glass. But the shortage of machines and labor will be reflected in new glass contain- ers. They will be plain, simple cylin- ders, requiring little cork, metal or plastics for closures. Gone will be fancy, eye-catching flasks.
KID CONTEST
Piper Aircraft Corp., big producer of flivver planes, will shortly sponsor a model airplane building contest, with aeronautical scholarships as_ prizes. Open to boys and girls from 12 to 19
inclusive, the contest will be a patri- otic measure to get more youngsters interested in aviation. (Already, the model airplane industry has priorities on materials “because its activities build morale.” )
WATER COLORS
British submarines are now painted to match the color of the waters in which they operate—a camouflage tech- nique that deceives low-flying enemy patrol planes. In the Atlantic, the subs are blue; in the Mediterranean, gray;
in the China Sea, black.
PATENT NO. 2,274,718
Something new for milady is a “budgeting pocketbook,” which has a compartment for each of the many items she usually carries. “No fum- bling now,” say the inventors (two women).
GRATITUDE GIFTS
Gimbel’s New York department store, has set up an “express your grati- tude” department offering 75 packages designed for men and women in the armed service. All of the packages contain articles that have been selected and approved by the Army, Navy and Red Cross.
25
Se
Fact and Comment (Continued from page 7) An Admirable Example
Industry has exhibited intelligence during recent years in issuing easily-understandable annual reports. Not so long ago only statements to stockholders were published. An increasing number of corporations now prepare annual reports for their employees. Excellent.
America’s first billion-dollar corporation, United States Steel, has just issued, its 194] report, in lan- guage readily understood by its workers, by every- body. It contrasts what happened in 1929 with what happened last year. Briefly, it reveals that of each dollar of gross income, there was an increase of over 130 per cent. in taxes paid, a large increase in what was paid in wages, a drastic reduction in dividends
distributed to stockholders. Ponder this table:
1929 1941 Percent. Per cent. Products & Services Sold...............+.: 100 100 Disposep oF as Fo.Liows: Bought from Others....................05- 32.2 375 ME Sea cleat oeineetescekhicvecs 5.0 11.8 Wear & Usage of Facilities................. 5.8 5.9 Interest on Borrowed Money............... 14 A Belencs Remalatns ......ccevcccccccesvees 55.6 48 PERCENTAGE DIsPosirTION : Wages, Salaries, Pensions.................. 67.5 83.9 Dividends for Use of Facilities............. 14.6 8.3 Retained for Future Needs................. 17.9 7.8
The trend manifestly has been towards notably larger disbursements for payrolls and for taxes. Mean- while, incidentally, the Government has seized an enormously larger share of salaries paid executives.
“Give light and the people will find their own way.”
Utility Body Pilloried
The responsible head of a responsible company, President Edward M. Borger of Peoples Natural Gas, Pittsburgh, makes these damaging charges against Pennsylvania’s Utility Commission, anent a recent ruling:
The decision was furnished the newspapers five days before the company officially received the news.
The Commission’s findings “are full of errors of both law and fact—even of simple arithmetic.”
The Commission “in its findings has totally ignored most of the record.”
In its verdict “the Commission has completely ignored the uniform decisions of the courts of Pennsylvania and of the United States.”
The Commission has decreed that “rates of domestic con- sumers should be changed each year, dependent on the com- pany’s revenue from industrial consumers—a theory which would lead to a continuous rate proceeding at great cost and with no visible benefit to anybody.” “If adopted, this theory would require domestic consumers to pay gas rates at least twice as high in periods of depression as during more normal
tet al
times. On such a basis, domestic consumers, instead of getting the $2,000,000 refund the Commission suggests for 1940, would be required to pay several times that much to the company.”
“While the Commission rules that the company should be permitted to make an annual profit of $1,375,000 it rules that the company should make refunds to its customers of amounts which would reduce earnings far below that figure.”
’ “
The Commission’s “opinion is an utter denial of justice.”
That is strong, clearcut, challenging language. It puts the utility regulators squarely on the defensive. Perhaps Pennsylvania’s utility overlords, have imbibed Washington’s notion that utility enterprises, including holding companies, deserve nothing but the harshest treatment, the “death sentence.” Thoughtful citizens cannot but ask how would our gigantic war-production program have fared but for the outstanding efficiency of our utility managements?
Washington has discovered that main reliance for national defense and offense depends mainly upon big, not little companies, upon strong, not weak, enter- prises. Is prosecution of essential industries at this critical time reconcilable with patriotism, with all-out concentration on defeating our powerful, menacing, thus far victorious enemies?
* To get on, give of yourself. *
What Do You Read?
“What do you read?” That was the first question fired at me by the general manager of the Hearst organization when I went to see him, by invitation, about a job. My reply apparently satisfied him, be- cause the upshot was that I was engaged as business editor, at a salary of $60 a week above what I was earning and an agreement that another $50 a week would be added at the end of a year provided I filled the bill. (Incidentally, I found William Randolph Hearst a most tolerant, generous, kindly employer.)
We grow on what we feed. Never was it more im- portant for ambitious employees. junior executives, as well as directing heads of businesses, to select their reading discriminatingly. They must, to function with maximum efficacy, keep posted on the kaleidoscopic changes in our economic conditions, they must keep their eyes wide open for suggestions adaptable to their own activities, they must seek inspiration, en- couragement, stimulation from publications providing such material rather than confine their reading to frothy and pessimistic publications. |
Would we lay ourselves open to the charge of undue immodesty if we suggested that FORBES is such a publication ?
AUGHT in the midst of total war while on a
commercial flight in the Far East, the stout- hearted crew of Pan American Airways’ Pacific Clipper thrilled the civilized world by bringing the 42-ton craft safely to New York. They rounded the globe to do it, and won themselves a niche in the aerial Hall of Fame. Pan American's clippers, and many other U. S. planes of war and peace, are equipped with copper and copper-alloy products made by our fabricating subsidiaries.
Among the copper-alloys being used by the aviation industry are The American Brass: Com- pany’s aluminum-bronzes—known individually as Ambraloy and Avialite*. Strong and corro- sion-resistant, they are used for gears, valve seats, propeller hub cones, many other parts. Everdur*, a copper-silicon alloy of great strength and high endurance limit is widely used for fuel, oil and high-pressure hydraulic lines.
A metal with unusual qualities, Anaconda Beryllium Copper is used
Above: Pacific Clipper over starting point of its world flight,
Below: Mechanic checking union of an Everdur Metal line in de-icer mechanism on Clipper engine.
for aviation instrument parts, gears and other items. In the fully annealed (soft) state, this alloy is ductile . . . may be readily formed and machined. Final heat treatment of the finished part develops exceptional hardness, tensile strength and resistance to fatigue.
All told, many tons of Anaconda copper- alloys and mile upon mile of Anaconda Wire and Cable are being supplied for planes of the U. S. Air Services. Copper thus plays an important part in the task of making our air fleets the mightiest on earth.
42272
ANACONDA COPPER MINING COMPANY
25 Broadway, New York THE AMERICAN BRASS COMPANY, WATERBURY, CONNECTICUT
ANACONDA WIRE & CABLE COMPANY, 25 BROADWAY, NEW YORK
*** Avialite’’ and ‘‘Everdur’’ are trade-marks of The American Brass Company, registered in the U. S. Patent Office.
re
APRIL 1, 1942
“STEEN PR SORE CPOE
CONTINENTAL MOTORS CORPORATION
a Mricmican;: March 2, 1942 Directors of CONTINENTAL MOTORS CORPORATION have declared a dividend of ten pe per on the outstan common tal stock, peeuule April 2nd, to stock- lers of record at the close of business March
1
ane i holders of the old No- po Wg and the 1935 .
mires to exchange their certificates, share for
for the present $1.00 Par value before re- pm this dividend.
THE WESTERN UNION TELEGRAPH CO. New York, March 10, 1042
DIVIDEND NO. 260 A dividend of 50 cents a share on the capital stock of
oe com, bes | been declared, payable April 15, 1042, " scttbelde record at the close of business on March 20, 1942
G, K. HUNTINGTON, Treasurer,
UNDERWOOD ELLIOTT FISHER COMPANY
The Board of Directors at a meeting held March 12, 1942, declared a dividend for the first quarter of the year 1942 of 50c a share on the es Stock of Underwood Elliott Fisher Company, able March 31, 1942, to epueieneldare of recor a the close of business ‘March 23 2.
Transfer books wi . on be he
C. S. DUNCAN, Treasurer.
PACIFIC GAS AND ELECTRIC CO. DIVIDEND NOTICE
Common Stock Dividend No, 105
A cash dividend declared by the Board of Directors on March 18, 1942, for the quarter ending March 31, 1942, equal to 2% of its par value, will be paid upon the Common Capital emg of this Company by check on il 15, 1942, to shareholders of oS at the close of business on March 31, 1942. The Transfer Books will not be closed.
D. H. Foore, Secretary-T reasurer
San Francisco, California.
STOCK MARKET OUTLOOK
160 160
AHHH
|
140 |}
7 z Ze = :
/ TREEEEEL EL LU l
=
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1939 1940 1941
DOWJONES AVERAGES —— INDUSTRIALS
Market has now had a full correction of the May-July, 1941, upswing which proved to have been misguided. So rarely does the market go through a complete reversal that the present buying opportunity is an unusual one—perhaps the best
since 1932.
Getting down to 98.32 on March 12, the D-J industrial came close to the lower limits of long-anticipated 98-102 area. In effect, that wipes out all the “war boom” of late 1939 and early 1940, and puts the average back to the bottom
of 1937-38 bear market.
Purged by thorough liquidation, the market's improved health should before long become apparent. First proof should be ability to rally above 108. Second hurdle will be the 110-112 area. If and when the market meets both tests suc- cessfully, would look for eventual extension of upswing to 121-124.
—J. G. Doniey.
Your dividend notice in Fores directs nationwide attention of influential investors in finance and industry to your company.
CONGRATULATIONS
B. W. Ciark Bast. Harris
Basil Harris, executive vice-presi- dent of the United States Lines, has been named president of the company, succeeding John M. Franklin who has been commissioned a colonel in the Army Transport Service.
B. W. Clark, vice-president in charge of Westinghouse Electric and Manu- facturing Co.’s merchandise division, has been appointed vice-president in charge of company sales. He succeeds Ralph Kelly, who has been elected ex-
ecutive vice-president of Baldwin Loco- motive Works.
C. L. Austin, vice-president and a director of Mellon Securities Corp., has been elected treasurer of Jones & Laughlin Steel Corp. He succeeds J. C. Watson who has retired after 48 years with the company.
George L. Burr has been elected a director of Canada Dry Ginger Ale, Inc.
T. A. Lynch has been elected a vice- president of Reynolds Metals Co., where he was formerly sales manager of the aeronautical division.
Charles C. Small, chairman of the American Ice Machinery Co., and Clar- ence W. Nutt have been elected direc- tors of the Coca-Cola Bottling Co. of New York.
Sayre M. Ramsdell, who has been Phileo Radio Co.’s advertising man- ager since 1922, will head a new ad- vertising / agency: Sayre M. Ramsdell Associates, Inc.
Some Predictions By JOSEPH D. GOODMAN
T seems timely to present some data
which previously appeared here. On June 15, 1938, this table, covering the Dow-Jones industrial averages since their inception, was given:
Bottom Price High Price a 40 Eb tes 0: 77 1900 ...... 52 Be sicdes 78 ED oe vcvve 42 Ee 103 MT secede 53 , eee 100 Fe 72 Sn ktass 94 MK canes 06 53 ae 110 Me veces 65 ME as.snes 119 ME secs s 63 ae 381 ES Sei000% 41 | er 194
These averages, in a downward trend since 1937, are now around 100. The average bottom was 53, the average high 139, which included the peak price in the great boom which culmi- nated in 1929.
If one should eliminate the 1929 top, he might conclude that the averages were high now. In my judgment, the one most impotrant item which has prevented the market from declining to the neighborhood of previous bear market lows, has been money rates. Previous extreme bear markets were generally the aftermath of high money, and as long as rates remain around 1%, one cannot expect the market to reach former bear bottoms. The infla- tionary implication of the government’s financial policies is also a factor.
I have stated on various occasions that it was possible for the averages to go to 80 or below, before the finish of the decline. It is still possible.
Numerous readers are asking for predictions of the definite type made in 1937, and to see these predictions again. It is not possible to be too posi- tive as to predictions at this time; but it is practically certain that rising taxes and need for increased working capital will cause dividend reductions on many stocks which could very well put them 15-20% under prevailing prices,
Stocks in this group might be Union Carbide, Air Reduction, du Pont, Gen- eral Motors, Monsanto, Sears. Am. Cyanamid, Allied Chemical, General
APRIL 1, 1942
Electric, Westinghouse, Am. Telephone.
Many stocks have been declining since 1937, in many cases since 1933. In recommending stocks, an attempt has been made to select those which have appeared reasonable in price from all angles, and appeared to be in a buying range. I realize that many investors prefer scale-down buying to- ward the end of a declining market, rather than waiting for the final bot- tom which is only indicated some time after the fact.
The following is given for those who wish to see the 1937 predictions. That Fall this column definitely advised “the sale of all stocks . . . Based on what | see ahead, I would not be surprised to see the following stocks decline to the prices stated within the next fifteen months.” The predicted prices and the prices reached in the ensuing decline:
When dicted Low to
urged in 15 April
to Sell Months 1938 Dow-Jones ind, averages.. 175 90 97 RN aca tices beane 110 50 35 General Motors ......... 55 30 25 SE svn ccs dacs 94 35 29 Johns-Manville ......... 130 50 58 RS ate es! oy 155 90 90 Allis-Chalmers ......... 68 30 34 General Electric ........ 53 30 27 Westinghouse Electric ... 150 75 61 CRORE | weidn's cbsecewe 152 80 93 American Can .......... 94 50 69 BSN a Sivincenceess 64 30 36 St. Joseph Lead ........ 6 S Ss MR iiss BR BR s os 74 25 22 Bethlehem Steel ........ 94 40 40 OS eee 110 45 38 Philip Morris .......... 4 #$.9@ 64 I ME svn occ nce es 76 25 22 Libbey-Owens Glass ..... 66 30 23 Parke-Davis ............ 39 20 28 Baltimore & Ohio ...... 25 ] 4
The above table was printed on April 15, 1938.
This column will not hesitate to make predictions either on the upside or downside, whenever the writer feels enough factors exist to make the pre- dictions reasonably possible.
«
Advance release by air mail of this regular article will be sent to interested readers on the day of its writing. Rates on request.
foil the bubble-robbers
When ice melts in your high- ball, air bubbles creep out and sneak the sparkle-bub- bles right out of your drink ... then ice water dilutes what’s left.
Smart hosts use Sparkling Canada Dry Water. Its pin- point carbonation — millions of tinier bubbles—keeps spar- kle locked in. Taste and see!
P. 5 Drink a glass- ful any time. It’s good for you!
‘ Sh a vhling
CANADA DRY WATER
THE ANSWER TO YOUR TALL DRINKS’
~ ae Sh 4e Coe SS= SOF8S=
(SAVE) (OUR) (SPARKLE!)
i I '
MANAGEMENT AND UNION JOIN
(Continued from page 11)
The union convinced us that in the case of removals from the payroll, ac- companied by below average ratings, shop stewards should be notified in ad- vance of such removals, This elimi- nated the practice of removal slips be- ing marked “insubordination” or “in- efficiency” and the operator being told merely that he was laid off due to lack of work,
The union has sold us many ideas which have been incorporated in our contracts. I have attempted to illus- trate briefly the things that make a morale building program tick from the standpoint of union relations. Remem- ber, lip service without positive dem- onstration of action, destroys morale. Grandstand play stifles sincere co-oper- ation. Unnecessary flag-waving nur- tures selfishness of purpose. Of course, publicity and the proper type of propa- ganda are necessary, but be careful not to over-indulge in it.
I firmly believe that the workers within the RCA family are patriotic, as I believe are all American workers. But let us not be content or satisfied with this fact. We have a big job to do in making our employees understand that the hand that makes the rifle is as important as the finger that pulls the trigger.
DEFENSE COMES FIRST
We made no bones in stating our company’s wartime policy when we said that “With RCA, National De- fense comes first. By comparison we hold nothing else important.” On this policy we are basing every operation and activity of the company, and I say, without fear of contradiction, that the morale of the RCAM worker has been keyed to the wartime tempo be- cause better union relations, thorough dissemination of knowledge, and sound personnel policies and programs have built an understanding confidence among all employee groups.
And what evidence do we have of this? Where is the proof? Proof of the results that we have obtained by the united and co-ordinated efforts of all employee groups, including com- pany and union executives, is reflected by the usual success of our recent “Beat the Promise” campaign.
The main objective of the “Beat the
Promise” campaign was to beat the promise on all war orders and to ac- complish this with the maximum con- servation of materials, time, floor space and man power. The campaign actu- ally began in September, 1941—more than three months before war was de- clared—but the groundwork was laid in October, 1940, when 22,000 RCAM workers voluntarily signed a solemn pledge which stated:
“To Uncle Sam: | pledge myself to put forth my best efforts not only to fulfill the obligations which we have undertaken to meet the requirements of our National Defense program, but to ‘Beat the Promise’.”
EDUCATIONAL PROGRAM
Following this pledge we embarked on a further educational program de- signed to bring our workers face to face with the daily events that were affecting their lives. Through union conferences, employee publications and foremen’s discussion meetings, we dis- cussed the plight of the nation and pro- jected it onto the organizational pic- ture. Orders for defense equipment were given the right of way, and when President Roosevelt urged the speeding up of production we launched our “Beat the Promise” campaign.
The objectives of this campaign:
1. To do our jobs to the best of our ability.
2. To make every second count.
3. To take care of our tools and machinery.
4. To make every part count.
5. To submit suggestions that saved time, reduced waste and increased effi- ciency.
With these objectives clearly defined we lined up our division managers as “Campaign Generals,” while foremen and shop stewards became “Captains.” Our Radio Manufacturing department became known as the “Fighting 69th,” our Tube Plant became known as the “Yankee Division,” while other divi- sions adopted such famous war names as “Hell Divers” and “Rough Riders.”
Each division conducted and planned its own maneuvers. The progress of each division was measured on per- formance against production schedule, reduction of waste, improvement of quality, value of suggestions and other items.
Merit decorations for production soldiers were awarded for individual effort. Life-sized cutouts of Uncle Sam were awarded each week to outstand-
ing departments. Dinners, citations and various other forms of recognition were given to all employees in those departments that excelled in produc. tive effort. The “piece de resistance” came in the form of week-long, all. expense trips to Miami Beach, for su. pervisors and operators.
We selected as the symbol for the “Beat the Promise” campaign the let. ter “B” which signified “Beat the Promise.” Oddly enough, the interna. tional code symbol for “B” (a dash and three dots) was almost identical to the code symbol for “V” (three dots and a dash).
The campaign was outlined at a din. ner attended by more than 400 key men and shop stewards of the com. pany. The following day the letter
. “B,” with the dash and three dots,
appeared on sidewalks, streets, trucks, newspapers and inter-office correspon- dence; the “B” code signal was sound- ed over plant sound systems and on the radio. It became the talk of the plant and also the talk of the town.
MYSTERY EXPLODED
When the mystery had reached its full height, the campaign to “Beat the Promise” was announced. The first “announcement” issue of the Beat the Promise News, which cleared up the “B” mystery, was distributed to all employees. “B” buttons were handed out for all employees to wear. Posters appeared on all plant bulletin boards. And thanks to some terrific follow-up man, factory whistles within a radius of 10 miles were heard sending out the dash and three dots code symbol. In the meantime, plant sound systems were announcing a big noontime rally in the park outside the plant grounds.
The efforts our employees put be- hind the campaign were handsomely rewarded when we were awarded the Navy “E” Pennant for excellence of production effort.
Now that we are at war the impor: tance of new “Beat the Promise” cam- paigns cannot be stressed too strongly. Even in the light of such problems as priorities, unemployment, material shortages, total conversion of commer: cial facilities to war work, temporary layoffs during the conversion period, etc., the need for well-planned produc: tion programs takes on increasingly greater importance. For such programs provide the stimulants that will spur our workers on to greater heights of productive accomplishment.
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AXIS AXE
Though you can use it for ordinary purposes, a new axe is designed espe- cially for rescue and clean-up work after air raids. The axe head is broad (ideal for demolition work) while the bit, or cutting edge, is claimed to be “just right” for chopping through de- bris. The axe is hefty enough for severe work, says the maker, yet light enough to be handled by women and children. (“Defensax.” Maker: Fayette R. Plumb, Inc., 4837 James St., Philadelphia, Pa.)
BLACKOUT VENTILATORS
A new line of ventilators is made especially for blackout (windowless) factories. Light-proof, as well as weath- er-proof, the ventilators come in three models: (1) A Summer supply unit, which produces large volumes of out- side air with perceptible motion at all times. (2) A Winter supply unit, de- signed for application in conjunction with the existing heating system. (3) An exhaust unit, which resembles the Summer model but is merely an ex- haust fan arrangement (the air in oc- cupied areas is exhausted from the building). All three models are in- stalled and serviced from the rooftop. (“Blackout Ventilators.” Maker: The Trane Co., La Crosse, Wis.)
SHOWER CABINET
One man with a screw driver can quickly assemble and install a new, “knocked down” shower cabinet for factory, shop and office use. Made of galvanized steel, with a white, baked-on enamel finish, the unit requires no spe- cial wall or floor preparations. It takes up only three square feet of space, and comes with all fixtures including drain, soap dish and curtain. (“Bath-Rite.” Maker: Milwaukee Stamping Co., Mil- waukee, Wis.)
TELEGRAPHICS
A new blackout lamp has a red-tone lens—red, you will remember, was re- cently approved by the Army as the safest color for use during blackouts. The lamp uses either a 15- or 25-watt bulb. (Maker: The Globe Lighting Fix- ture Manufacturing Co., Brooklyn, New York.)
APRIL 1, 1942
Previews of Newest Products
A new cement for repairing concrete comes in a powdered form. Mixed with water, it forms a putty-like consistency that expands when setting. (“Fixtite.” Maker: The Lemore Corp., Jackson, Miss.)
A new fountain-stencil brush is de- signed for shipping room use. It does away with dipping and dripping, says the maker, which result in smudged-up, finger-printed papers. A twist of the wrist starts the flow of ink, which stays set. (Maker: The Universal Fountain Brush Co., St. Petersburg, Fla.)
A new floor finish comes in red, green, brown and grey. It’s a dye-like coloring, can be applied overnight and, according to the maker, prevents wood floors from splintering, concrete floors from disintegrating. (Maker: The Flexrock Co., 2300 Manning St., Phila- delphia, Pa.)
A new insulating board is made of pure glass fibers, enclosed in a sheath of durable asphalt. The manufacturer claims the material has all the insulat- ing properties of cork (now a war- scarce item). (“AE Board.” Maker: Owens-Corning Fiberglas Corp., Tole- do, Ohio.)
A new gadget, or device, is designed for use in repairing gas and water mains where a gap has been blown out by explosion. A sort of clamp, it is said to insure a tight, lasting connection be- tween the ends of the broken main and a random piece of steel pipe, cut to appropriate length. (“Crater Clamp.” Maker: The M. B. Skinner Co., South Bend. Ind.)
A new light-duty, small capacity hy- draulic press is entirely self-contained, and is free from projections (no small safety factor). The press is claimed to be adapted to a wide range of straight- ening, assembling and pressing jobs, in either small-lot or production work. (“Model DLOS2.” Maker: The Deni- son Engineering Co., Columbus, Ohio.)
—Don Samson.
Please mention ForBEs when writing to manufacturers about these items.
Deg IN 1586 Don Angelo Pietra contributed to business pro- gress by describing the Trial Balance (Bilancio del libro), as used by Venetian merchants toassureaccurate balancing of
their books.
speed and accuracy vith:
SUPERIORI
TRUE-FIGURE DIALS FOR ALL 3 FACTORS
MARCHANT is the on/y American calculator that provides straight- line figure proof in plain sight for all 3 factors of every multi- plication,
Thus MARCHANT gives an auto- matic audit proof of the correct- ness of each multiplication... completely eliminating the in- efficient, eye-straining zig-za
hunt over the keyboard to chec
which keys have been depressed.
Ask the Marchant Man to explain the advantages of the other 19 points.
SHLENT SPEED
: (aleadalor
ETHIRTY-SECOND YEAR =—
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WAR ON MAIN STREET
{Continued from page 9!
A farmers’ meeting was held on a Saturday, and in keeping with a farm- er’s daily schedule, the meeting started at 10 a.m., paused for a pot-luck lunch made up of one covered dish brought from each home and served cafeteria style, and ended at 3:30, so the farm- ers could get home for their chores.
The county Defense Council meets every two weeks now. And in Mt. Gilead there is soon to be a mass meet- ing called by the local defense council. It will be held at Levering Hall, a room above the town furniture store, sometimes called the opera house. Plans for a county registration were to be explained. Similar local meetings are arranged for other communities of Morrow county.
PEOPLE'S MOVEMENT
Undeniably Mt. Gilead and Morrow county are moving faster in their home defense program now than they were before the hand of fate reached out and touched them. But Fred Sweet seems definitely out of the picture. In fact, “Production Now” which he conceived as a new volunteer agency may never come into being in any other commu- nity; may even merge into joint civil- ian defense in Morrow county.
As Elwood Davis, the county agent explains it, people were anxious to help but didn’t have anything to grasp on. OCD had started at the top, and action had stopped there. But this is a people’s movement, he says.
Was Fred Sweet “inspired” and en- couraged to come to Mt. Gilead and stage his little act? A few local vil- lagers wonder if perhaps “Production Now” was not an effort from Leon Henderson’s office to branch out into new and bigger things. These villagers question if some under-cover struggle is not going on between federal agen- cies at Washington as to whether James M. Landis of OCD or Henderson shall dominate civilian defense. It seems un- likely and yet possible. In Ohio, at least, the State Rationing Administra- tor’s office, which is part of OPA, shares quarters with the Ohio State Council of Defense.
Another suggestion, not too fantas- tic, is that Democratic chieftains in the federal government are seeking to dis- credit the success of Governor John W.
Bricker in organizing Ohio’s civilian defense. Bricker may be a Republican candidate for President in 1944, It would encourage many New Dealers if some means could be found to embar- rass Ohio’s Governor at the polls next Fall.
Meanwhile, the slow daily job of en- listing the active help of thousands of scattered farmers toward winning the war goes on in Morrow county. Here is no job for glamour-boys. Here is little that can be done at the touch of a button, or completed merely by writing a letter or making a speech. The job of home defense, in Morrow county and elsewhere, settles down to individ- ual homes and individual communities. Once again, as in 1776, the embattled farmers are organizing to finish off the enemy. Therein lies hope for the na- tion. As to whether the credit goes to Dr. G. B. Robinson, the thoroughly able head of the Mt. Gilead Defense Council, and his aides and the Morrow County Defense Council, or to some other person or group, Morrow county has no great concern. It is our war, these villagers say, and let’s find out what our jobs are and each man pitch in to help win.
SELLING WITHOUT TIRES
(Continued from page 12)
day to day, not week to week. They are certain the business pattern will be very different as each month goes by. Each problem is met as they come to it.
The war will develop new selling techniques, they are sure. The country will be far different after the war. Sell- ing will always go on. More emphasis may temporarily be laid on letter-writ- ing, but personal contacts will have to be reestablished just as soon as there is enough manpower to make the calls.
All are resigned to the lack of tires, the necessity of changing their entire selling procedures. They feel that even though the processes for making sub- stitute rubber are available, present plant equipments can’t possibly take care of anything but the armed forces. Civilians will have to go back to old- time selling methods. They hope the phones won't be banned for their use. Goods will be delivered somehow, just as England has done under worse con- ditions.
IF YOU WANT TO MAKE A SPEECH
(Continued from page 14)
story is ten times worse than no story at all. If you don’t tell stories naturally forget them. They really aren’t neces. sary.
The organization of the speech is something which no rules can cover, save one rule—the rule of common. sense. I like to think of speaking as a matter of straightline thinking—you start with one idea, carry it logically on to the next, then to the next, and so on. Ordinary intelligence will write any man’s speech for him if he will let it.
One thing most business men who speak do not recognize is that they do not speak to a crowd, but to a collec. tion of individuals. When you get the individuals out in front of you nodding in agreement you have them where you really want them. But how to do that?
FEW SIMPLE RULES
I can give you a few simple rules. The first is to engage every one in the audience, or at least every section of the audience, with your eyes. Glance around. Try to see every pair of eyes in the audience at least once during the talk.
Second rule: Put the audience into the picture by considering your speech, not as a speech, but as a conversation —and give it a part. In a small audi- ence you can single out certain mem- bers, put questions to them: “I think you will agree with this, Mr. Tarbell, won't you?”
A wise speaker always asks the audi- ence to do something. He will call for a vote. Or he will call for volunteers. He will ask the audience to raise their hands. He will make them go on rec- ord by doing something. Few speakers realize the importance of this step.
Let any man standing in front of an audience regard that audience as an understanding friend to whom he has a few things of interest and impor- tance to say. And then let him talk man to man to that friend, using the same words exactly he’d use in every- day conversation, the same tones, the same gestures. And let him “put that friend in the picture,” by asking him a question now and then.
If a speaker does these things he will be in the process of making a perfect public speech.
It’s just as simple as that!
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THE PENNSYLVANIA RAILROAD
SUMMARY OF ANNUAL REPORT FOR 1941
HE 95th Annual Report of the Pennsylvania Railroad Company
covering operations for 1941 will be presented to the stockholders at the annual meeting om April 14, 1942. Operating revenues: increased $136,447,755 or 28.6% over 1940. Operating expenses increased $104,- 222,597 or 30.8%. Taxes increased $22,274,360 or 50.8%. Net income was $52,383,958 an increase of $11,608,128. Surplus was $48,414,588, equal to 7.4% ($3.68 per share) upon the outstanding Capital Stock (par $50) as compared with 5.6% ($2.80 per share) in 1940.
OPERATING RESULTS INCREASES OR Decreases OvER 1941 1940 ToraL OperaTING REVENUES WERE.................. $614,041,163 1 $136,447,755 Torat Operatinc Expenses WERE.................. 442,677,275 1 104,222,597 Leavinc Net Revenve From Raitway Operations oF. 171,363,888 I 32,225,158 Tanks GIT So oeicass 66,159,548 I. 22,274,360 Hire or EQuipMENT AND Joint Facitity Rents Were. . 8,101,852 D 652,204 Leavinc Net Raitway OperaTinG INCOME OF........ 97,102,488 I 10,603,002 Income From INVESTMENTS AND OTHER Sources Was.. _*41,663,095_ I 365,787 Baxiwo Gnoss INCOME OF... . ... 065.26 Uiw esl ebecdeeis 138,765,583 I 10,968,789 Fixep CuHarces, Curer.y Rentaits Pain to LEASED Roaps, AND INTEREST ON THE CompaNny’s DeEBT.... 86,381,625 D 639,339 Leaving ear Wconb 000... oo 52,383,958 I 11,608,128 APPROPRIATIONS TO SINKING AND OTHER Funps, ETC... 3,969,370 I 90,205 NIG ASS Bacto dente co endgtes aoe $ 48,414,588 I $ 11,517,923
*Includes dividend of $5,000,000 (par value) in securities received from Pennsylvania Co.
Dividends aggregating 4% ($2.00 per share) were paid during 1941, compared with 3% ($1.50 per share) in 1940.
The Board takes pleasure in acknowledging the continued efficiency and loyalty of all the employes during this period of great national stress. We know that they will continue to do their full share in meeting the additional heavy responsibilities that have now been placed upon them.
M. W. CLemeEnt, President
THE PENNSYLVANIA RAILROAD
SHIP AND TRAVEL VIA PENNSYLVANIA
Stockholders can obtain copies of the Annual Report from J. Taney Willcox, Secretary, Broad Street Station Building, Philadelphia, Pa.
1942
ee ee
PPR ITI OT OAR LI OL RIEL IT DANI LL ATID. AT id PRT SE Ae
Parr
Thavg ht
ON THE BUSINESS
OF
ISTAKES are costly and some: M body must pay. The time to cor- rect a mistake is before it is made. The causes of mistakes are, first, “IT didn’t know”; second, “I didn’t
think”; third, “I didn’t care.” Henry H, BuckLey.
We must have an unshaken confi- dence in the triumphant hour of right- eousness. We must remember that out of the black and costly disaster of the Cross, there once came light that the world never before dreamed of. You and I have got to quit waiting around for miracles to happen, They don’t. We must grip the judgment that has fallen on vs and shape it into something good, —Paut Scuerer, D.D.
Some morning it is likely that the headlines of the world will scream forth the news that New York has been bombed. As tragic as this will be, it will nevertheless accomplish the deep unity that Christians should have. It is a sad commentary that our broth- erhood, which exists by Christian love, is only truly cemented by Christian suffering.—James P. De Wotre, D.D.
Surrender of our will to God is the most important thing in prayer, be- cause our will is the only thing that is absolutely our own. The one thing God will never deprive us of is our will. That is why it is the perfect gift. And our surrender of it cannot involve our destruction because it is a surrender to perfection. To serve God is to reign.
—Mer. Futton J. SHEEN,
Your morning thoughts may deter- mine your conduct for the day. Opti- mistic thoughts will make your day bright and productive, while pessimis- tie thinking will make it dull and wasteful. Face each day. cheerfully,
smilingly and courageously, and it will naturally follow that your work will be
LIFE
a real pleasure and progress will be a delightful accomplishment. WILLIAM M. Peck.
One should take good care not to grow too wise for so great a pleasure of life as laughter. —AppDIsoNn.
The sum of behavior is to retain a man’s own dignity, without intruding upon the liberty of others.
-FRANCIS Bacon,
The greatest good a man can do is to cultivate himself, develop his pow- ers, in order that he may be of greater service to humanity.
—MARSHALL FIExp.
We do not yet trust the unknown powers of thought. Whence came all these tools, inventions, book laws, par- ties, kingdoms? Out of the invisible world, through a few brains. The arts and institutions of men are created out of thought. The powers that make the capitalist are metaphysical, the force of method and force of will makes trade, and builds towns. -—-EMERSON.
Ba EEL ae
A Text
The wicked have drawn out the sword, and have bent their bow, to cast down the poor and needy, and to slay such as be of upright conver- sation . . . Their sword shall enter into their own heart, and their bows shall be bro- ken. —Psaums 37:14, 15.
Sent in by Norman Lewis, St. Louis, Mo. What is your favorite text? A Forbes book is presented to senders of texts used.
Curses are like processions; return to the place from which they came. —Rurrin,
Even in the meanest sorts of labor, the whole soul of a man is composed into a kind of real harmony the in. stant he sets himself to work.
—THOMAS CARLYLeg,
The world is a looking-glass and gives back to every man the reflection of his own face. Frown at it, and it in turn will look sourly upon you; laugh at it and with it, and it is a jolly, kind companion.—WILLIAM M. THACKERAY,
Necessity is the plea for every in. fringement of human freedom. It is the argument of tyrants; it is the creed of slaves. —WILLIAM Prrt,
And he gave it for his opinion, that whoever could make two ears of corn, or two blades of grass, to grow upon a spot of ground where only one grew before, would deserve better of man- kind, and do more essential service to his country, than the whole race of politicians put together. —SwIFt,
It is a fine thing to have ability, but the ability to discover ability in others is the true test. —ELBert Husparp.
Responsibility for the creation of the good world in which the good life may be realized, which the frustrated ages of the past loaded upon the gods, is now being assumed by man. The ideal of this modern drift is the realization of the full joy in living.
—A. Eustace Haypon.
The old Quaker was right: “I expect to pass through life but once. If there is any kindness, or any good thing | can do to my fellow beings, let me do it now. I shall pass this way but once.”
—W. C. Gannett.
The trouble with most people is that they think with their hopes or fears or wishes rather than with their minds.
—Watter DuranTy.
The supreme fall of falls is this, the first doubt of one’s self. —Countess De GASPARIN.
In response to many requests from readers, 638 “Thoughts” which have appeared here have been published in book form. Price $2.
RHODE ISLAND ; PENNSYLVANIA
1 A UNITED NATION
or @ The nation is united — and Long Distance telephone calls to build fighting planes, telephone lines help to tie it together for freighters or factories — to move men and war's work. . . . You can keep materials machines around the map... . If the rush moving, wheels turning, men working — if of war interferes here and there with the RIN. you can reach any one, anywhere in the accustomed smoothness of regular Long Dis-
land, in a hurry. . .. It takes a lot of tance traffic, we hope you will understand.
Jers,
SERVICE TO THE NATION IN PEACE AND IN WAR
51 ARSHEE. hp SALE LAS OLLIE LEE IIS
a ¥ a . ¥ § $
—+-— cere eRe OES LATTE ET WARIS ee eS I dU
ee
THIS REMARKABLE leap above was first worked out in ballet slippers — in the same way Miss Lewis works out all her routines. Many’s the Camel she smokes as she relaxes. Miss Lewis says: “I’ve found Camels milder by far.”
“NOT ONLY are Camels milder,” says Miss Lewis, “but they always taste so good. No matter how much I smoke, Camels never wear out their welcome. Smoking wouldn't be half the fun without Camel’s full, rich flavor.”
BY BURNING 25%
OF A SECOND!
It takes high-speed photography to “stop” Dorothy Lewis's flashing blades, but it’s easy to see her preference for Camels
FASTER than the blink of any human eye, the amazing stroboscopic camera catches film star Dorothy Lewis in one of her brilliant routines on the ice of the Iridium Room in New York’s Hotel St. Regis.
DOROTHY LEWIS studied ballet from the age of 4, and almost all her routines combine the deft artistry of the toe- dancer with the fluid speed of the skater. Her cigarette combines extra mildness and flavor in a costlier tobacco blend that has never been duplicated. She smokes Camels exclusively.
“THE MORE I SMOKE, the more I appreciate Camels,” says Miss Lewis at a late supper with friends at the St. Regis. “Their cool, rich flavor is all the more enjoyable because Camels are so mild—with less nicotine in the smoke.” You, yourself, try Camels. You'll like that grand flavor—and you'll like knowing that there’s less nicotine in the
smoke (see below). R. J. Reynolds Tobacco Co., Winston-Salem, N. C.
The smoke of slower-burning Camels contains
28” LESS NICOTINE
than the average of the 4 other largest-selling cigarettes tested—less than any of them—according to independent scientific tests of the smoke itself !
THE CIGARETTE OF ame COSTLIER TOBACCOS