Document 10OZ0OXGmXkazbgaw7gexvzQq

FILE NAME: JP Morgan (JPM) DATE: 1934 DOC#: JPM002 DOCUMENT DESCRIPTION: Fortune Magazine Article - Management by Morgan ; zi fo c h i* ^ 3 (14 3^ } " Management by Morgan" So they said o f Johns-ManviUe in ' 27 and so they say in '34. But Morgan manage ment carries on with Manville men and all that insulates is not asbestos. Th e depression vs. diatoms, woolly rock, Sanacoustic Tile, prefabricated houses, and Lewis Herold Brown. IF YO U were looking for a company with which to compare the Johns-Manville Corp., yoiiT best analogy might 1>c the U.S. Steel Corp. True, Steel makes aijout thirty times as much money as Manville when times are good (also loses thirty times as much when times are had). But both com panies are engaged in die production and fabrication of a basic raw material, asbestos being to Johns-ManviUe much what steel is to If.5. Steel. Both are excellent examples of vertical integration, Steel with its coal mines and ore deposits and Johns-ManviUe with its asbestos quarries. Each is the largest unit in its industry, Steel with nlxnu 40 per cent of the national ingot capacity and Johns-ManviUe with about 40 per cent of the Canadian asbestos production from which practically all the asbestos used in die U.S. is derived. Both rate the building, the automobile, and the railroad companies as their best customers, although Jolms-Man- viUe is more top-heavy dian Steel on die building end. Both sell most of their prod ucts according to buyers* specifications and t>|>enitc pretty much on the principle that the law of averages will give them a good volume. And both have one tremendously important common denominator in the form of J . P. Morgan fc Co. T h e Morgan-Steel relationship is so his torical that it needs no comment. Th e Morgan-Manville relationship is also familiar although the extent of the Morgan interest in Johns-ManviUe is not commonly real ized. In 19x7 J . P. Morgan & Co., with Thomas W . Lament its active agent, Ijottglit 400.000 shares of Johns-ManviUe common at bcLwccu $50 and $55. There arc only 750.000 common shares outstanding and so (assuming that the banking house has re tained its holdings) Manville is a Morgan company to the extent that the bankers actually hold a majority of its voting stock. In which position it is almost certainly unique among manufacturing companies. But the generalization remains. Both U.S. Steel and Johns-ManviUe are in the basic raw-material business, each is the biggest frog in its particular puddle, and both have at *3 Wall Street a great and good friend. r>J T H E year the House oE Morgan took it over, Johns-Manville's prospects were very bright prospects indeed. Its 19*6 sales were $45,000,000 out of which a $5,000,000 profit had been taken.The death of Thomas Franklyn Manville in 19*5 had created a se rious problem of ownership and manage ment. But this problem had apparently been solved by the sale of the company to J. 1*. Morgan Ik Co. Tor the hankers had signalized their arrival by installing genuine Morgan management, making Theodore Frelinghuysen Mcrseles President of JohnsManviUe. Mr. Merseles was a high-pressure executive who had made a brilliant success with Montgomery Ward, another Morgan company. With Morgan and Merseles, Johns-ManviUe was going to do big things. It was--this was the plan--to become the General Motors of the building industry, with a surface for every purpose. Stock went from 55 early in the year to a 1927 top of 126. Morgan and Mcrseles spent the next two years rapidly realizing their prospectus for Johns-Manville. The company bought, for cash, a group of new companies. Most of them made insulation for temperatures to which asbestos was not applicable. Their acquisition was a step toward horizontal integration which would give Johm-Manville an insulation for every tcmjicraturc from 40* below to 2,500 above zero. Sound insulation, not a new thing with JohnsManviUe, was promoted on n more ambi tious scale, and a sound-insulation company was among the new purchases. There were rumors of a merger with American Radi ator, U.S. Gypsum, Certain-Teed Products, with nearly any comjxuty that manufac tured a building or a covering material. Sates for 1929 went to $62,000,000; prof its to 50,600,000. Th e stock went to 242. Motgnn money and Morgan men were working out as advertised. Then things went wrong. Mr. Merseles died in March, 1929. T h e building boom was already over. In the fall of 1929 the stock-market crash ushered in the depres sion. JohnvManviUc had a new. young manager in the person of Lewis Herold Brown, a Mcrseles man brought along from Montgomery Ward. He was able, but young --aged thirty-five. His youth accented the disparity between the new managers and die old group of Manville men who still Held die key operating positions. Nor did die House of Morgan import another na tionally known executive. Perhaps it had no more big shots in its arsenal, perhaps it thought that Johns-Manville, with depres sion coming on, was not worth the ammuni tion. At any rate, sales and piolitsand public enthusiasm dwindled. Th e 1940 salts were $12,500,000 less dun the 1929 sales, flu 1931 snlcswci'c$iG.ooo,o(x) lesslhanthc 1930 sales. The 1932 sales were $13,000,000 leu than the 1931 sales. So 193 sales amoumed to only $20,400,000--less than one-thud the volume of 1929. And iu 1932 there was a deficit of $2,700,000 of which about $ i,000,000 was an operating loss. Mr. Brown was still President but the company seemed to be the forgotten man. Forgoucn apparently by its fimiucial sjxmsor and iorgoMcii icr tainly by the general public. Th e sunk dropped to io. Th e General Motors of the building industry was making no progress X T 'E T Johns-Manville slock is again a bhw X chip in the present bull market. It weir, from 12 in the spring of 1933 to 65 in Feb ruary of 1934. It was bat k over the ligm e at which the Morgans had bought u--and ven few of the big deals <>l 1927 could *ht>w a profit in 1933- And the public was buying it again. T h e stock moves vapidly because so little is left outstanding alter figurine the Morgan interest and the sitxk still held by the Manville family and by Joluw-Manville employees. Even so. its rise wab notable. T h e building industry was still depressed and the first quarter of 1933 had been so had that even a great second- and third-quarter improvement left sales for the twelve months at about their 932 level But in 1933 there was no defied. The man ngement had determined that it could get along on sales of $20.000.000, had cut oper ating expenses until it made the detemnm tion a (act. Old expansion stories were reviving. There was a rumor that the com pany was going to bring out a prefabricated house. (A well founded rumor--sec page 144). Investors remembered their 1927-39 enthusiasm about Morgan companies. Mur gan management. So up went the stock, and up and up. Th e 1927 buying of Jolms-Manvillc had been founded iaigciy on the theory iii.u what was good enough lor Mr. Morgan ua< good enough for you and me. The 1*>33 buying was probably no better informed Mr. Brown was still little known--his most expansive gesture was to serve on one oi Mr. Hoover's unemployment committees T h e ie was ev<?a le appreciation of the jolm s-M anvilic business. People ulio knew that Johm-Manville was in the asbestos business thought oi asbestos as a mysterious liieproof material good for ilu.iiie <ui tatm. -Stuli Ju h n v M a m illc p io d u m as lock wool and diatom; cons c.nih neve (ami ate) totally uiuompreliended. T h e .ihilkiy ol ilu* tompjmy to gel along on its t<}^^ imume was the best uason lor a bullish outlook. On the stm igdi <>f a the u m ip m y was tinmm.iUst as a recovery sum k. as one ol the cot porate Moses' show ing the u.iy mu ol the land ol lioitdage. But who wete the men and what wetc the tau.scs piodut m g these icsidts? A nd a<;<opting Mau- u llc as a icio vcty tompany, wliai would be its recovery sales? Few buyers ok Johtis-Maiivdle in 19 33 could have discussed these ques tions inicUtgeiuly any move than could their ancestors of 1927. T h e answers split logically into two divisions--management ami materials. Manville to Morgan to Merseles . . . T HOMAS FRANKLYN MANVILLE was president of Johns* M anville itom iqtn until his dead in the tail ol 1925. In its p tcscn i loim the company is a consolidation ol the 1 1 . \V . Jo h n s M.tmihu luring <In ol New Y oik and the M anville Covering Co. of Milwaukee, I h e Johns Co. (rooting, also paint) had stalled in i8?,8. By the end ot the century, Founder Johns had died and the (oinpany was heavily in debt. T h e Manville Co. started in M ilwau kee 111 1880. It was an insulation company. l>egan when Charles ft. Manville. Tallin of T . l`\, put m iic n l on his iiciglilmts' Imnaces. In 19 0 1 the MaitviUes bought the Johns C o . am! for die next iwem y-hxir Yeats T . F. M anville was the boss ol the combined woiks. Me t.tu the sales up to neatly $.jo,ooo,oi>o a year. In 1922. when the postAVar building boom helped pull the country out ol die posi-W ar panic, he roofed so many houses and insulated so i many pipes that he was able to declare an extra cash dividend of i $ jo a share (there were then only 30.000 shares outstanding). H e ran the com pany as a one-man show. l i e took no advice, he bor rowed no money, he dickered with no competitor. T h e company 1 was almost as much a M anville family company as Ford M otor is IN T H E ST R EET TH EY CALL J-M A MANAGEMENT COMPANY: HERE A RE TH REE OF TH E MANAGERS BE F O R E Manville or Mm gnu were oldiimcrs William Rob bins Scigle, now Chairman of the Board, and Louis Roy Hoff, pres ent Vice President and Sales Man ager. Both came to the old H. \V. Johns Co. in ujoo. Ix'loie the Johns-ManviUc cmtMiUdatum. Mr. Seigle arrived from the Fouuh Na tional Bank, to which the Johns Co. owed money. His fust act was to sell the old company's paint business. Under T . F. Manville. johns-MartviUe P re sid e n t for twenty-four years, Mr. Seigle be came Production Manager. Paine got Louis Roy Hoff into the Johns Co. Walking down Manhattan's William Succt, slioidy after hts dischatgc from the Spanish War. Mr. Hoff saw seveial rails of paint on die sidewalk in fiom ol die Johns budding, lie walked m. asked why an asbestos tompany handled paint, discoveied the ex istence of the paint division. He walked out with a J i j- a wpek job as stenographer. Later he went into sales, became Sales Manage in 1912. Messrs. Seigle ami Hoff have seen four Manville Presi dents come; three Presidents go. 1 j * * I Johns-Manvilte employees. Young T . F. Manviilc had already acquired two divorces and much publicity, was not in line for the presidency. lnt the split up of the older Manvtllcs stock had left no one in unclispitted control of the company. Th e em ployees, with the sUxk T . f*. Manville had just left them (and with another block dis tributed in owned nearly one-third ol thciomjMiiy. 1 1. hklwaui was worried lest someone buy up enough of the employees' stock to get control. So. feeling the com pany requited a centralized ownership, he il'<idrd to do the rnli.di/iiij* liimsrlL lie bought T . I*. Manville |r.`s holdings, shopped around and picked up most of the employees' slock, and--with his own large inleiest--lx*< .line the m.ijoi tty owner. Then he and Thomas W Limoni oi fhe lhm.se of Moig.ui got into a dickei and the House HIRAM EDWARD MANVILLE . . . Whose reign (ig*5-*7) 9$ an interregnum. He collected the Johns-Manvitle controlling in tertta u crcd by tltc d n ili of T . F. Manville--tlicn sold his majority holdings to J . P. Morgan & Co. of Morgan emerged with the 400,000 shares already mentioned. H. Edward, feeling that the company was now unquestionably in good and strong hands, went into scmirclirciucnt as Chairman of the ExecutivcCom- n Ford family company and Mr. Bumkw-Wbtt* Manville had some ol lire usual Toiblcs of the owner and pro prietor. He built a big hotel down at Manville, New Jersey. There is not much at Manville except die Johns-Manville fac tory, but anybody visiting the works had fine quarters during his stay. He considered research not worth a damn, boasted that he never spent a nickel on lab oratories or chemists. Me Was a lute salesman and confident ot his ability to sell anything. He sold automobile horns, lire ex tinguishers, spark plugs, hun dreds of products not directly re lated to asbestos or asphalt; ran the list of company products up lo more than 2.000 items. I lc was a fine specimen of n Grand Old Man in the days ol die (band Old Party, Hut he went home to die Plaza Hotel one night in October of 1<>25 and dropped dead--bad heart. Hiram Edw ard M an ville. younger brother of T . F., suc ceeded to the Manville presiden cy. Me was (and is) a pleasant, well liked, capable gentleman hut he was also past his prime and had no illusions alxntt duplicating the driving energy of his elder brother. He was not eager to remain as Manville President, but he was concerned not only about the question of management but also about the question of control. T . F. Manville had left a block of stock to his son, T . F. Manville Jr., an other to his daughter. Lorraine Manville Gould, and a third to Boarkt- 'Vbtit SAMUEL ARTHUR WILLIAMS . . . in chargeof mining and pnxUictkm. Uc belong* lo MunviUc old and Man* vtllc new. To OW, lK*C5iir he has J>m? a Manville man for twenty-five yean. To New. because his piesciu amlmnty dales fmtn (he Merseles regime. ENDERS McCLUMPHA VOOKHEES Ills upjitatsal was pt.-med by Mr Merscles, who brought bun uuo Johw-M:m\itU' ;k Secretary. Treat urcr, Vice President. milter, a post that he still re tains He also kept a laige block oi Manville slock, is the huge;* individual suxhholder, and 1w\ added to his holdings since 102; T h e sale o f control to die hankers p ro v o k e d an outerfrom many of the employees. T h ey s,iid that they would nesa have sold their stock had they thought that conliol would he trattslcneri t> any outside intei* cm ami w c ic o \ c ib liauk i i i .mCdMiig H Lduaid f selling them down the n \rt What ilu-v said and thought. howesei did not iimili tulluciuv the4*imise of events Piui neither did it make Morgan-man Merselcs' new rou any casici to line. TH EO D O R E F R F LING H U Y S F N M F R S L l.K S had (he same initials as had T . V Manville, sullercd .dsn 1com the same heaiL weakness. Pul into Motttgomcrv W aid in i i js i . an other old laniih company into which the Morgans had bought, he made a splendid rccotd with the mail-order house despite* the fact that he liked Chit ago so little that he commuted twice a month between his Chicago job and his N ew York home. 1le went to work rapidly on Man villc. H e turned the hotel into an office building. He threw out 84 KaMimontt'FalTy. Cbje*$o ___ H ER E IS A S H E E T O F ASBESTO S AN D C E M E N T R O LLIN G IT S E T IN T O A T R A N S IT E PIPE Transite is a mixture of asbestos and cement--a "reenforced concrete" effect with the asbestos fibers supplying the rcenforceraent. Here is a Johns- Manvillc trick; rolling it around a steel core to make a pipe superior to the ravages of time and rust, resistant to heat and acid. 85 he had no officer's standing. So he said never mimi alnnit being a lieutenant, he would start in as a privale. By the time that the training period was over, he was an acting captain, and did not Ixither to look up Ins commission which never has been found. At twenty-three he* was bossing lieu tenants who were Spanish War veterans, which was good training for his later career. Returning from France, and not mudi interested in further dealings with cor rugated papet, lie found himself in Chicago with half a day between trains, fie decided to take a walk through flu* Montgomery Ward premise*.. When he arrived the guide had just started oil with a thick of tourists, amt no more trips were to be made until the next morning. Mr. Brown explained that lie would not be in Chicago the next morning and got himself t omlurtcd through the plant as a special one-man visiting party. Th e trip concluded, he stopped to thank the man who had arranged it for him, discovered that the gentleman in rb*{fiw ffn ty & *re-ir& tre SYMBOL OF T H E PRESENT REGIME . . . arc these galvanometer wires in Jobra-Manville's laboratories. New because T. F. Manville spent no nickel on science: symbolical of the pres ent management's interest in research. the automobile horns :mcl ftre extinguishers and such, cut the catalogue from alwut 2.200 10 t, joo items. Then he started his own ex pansion program, getting Johiis-ManvUIc into nonasbestos products such as rock wool and diatomaccous earth (of which more be low). H e was always brimming over with ideas--used to come down in the morning with a sheaf of shorthand notes (he was once a stenographer for die Pennsylvania Rail road) embodying his overnight thoughts on what to do with Johns M anville. But he did not live long enough to leave his per sonality permanently imprinted on the or ganisation. In March. 1929. he took a trip to the Pacific Coast, inspecting new pro|> erties, and died suddenly at the Del Monte Hotel. And the boom period of Johns-Manville vanished with him. `T H E FUNERAL DRESS OF KINGS'* . . . Okl Roman Pliny called asbestos. Like a textile, it was woven and used for royal shrouds. Woven asbestos is still important--especially in brake linings--and here are strands that the carding machine has sorted and wound up on spools. . . . to B row n LEW IS H E R O I.D B R O W N had been Mr. JM crselcs assistant at Montgomery Ward, was Mr. Mcrsclcs* assistant at Johns-Manvillc. Me is large, square shouldered, dark, well poised immaculately attired a model of what the contemporary executive should wear and look like. Bom in Iowa, he studied law at the University of Iowa, but during one o f his college vacations he got a tempo rary job with a comigated-papcr company and did $0 well at it that the job became per manent. Th en came the War. and Mr. Brown went to the first officers' training camp with a lieutenant's commission in the mails. Unfortunately the commission stayed in the mails and when Mr. Brown arrived ASBESTOS IS HARD T O W EAVE BECAUSE I T IS SO SLIPPERY Though doth is made of it, asbestos remains a mineral and hard to wcavc-it is so smooth and slippery that the threads are not easily combined with one another. Here is an asbestos weaver engaged in knot ting broken threads on a warping machine. 86 1 [ H ll j BRAKE U N t N C S UV J-M The automotive industry rcraairii the last gieut toimiicrau) result <f woven asbestos. brake imfrtgt ben1 ; <<>io!/tn.uio*i I iitwHit Ho |u'i ( m l .isli\\tu\ an d 20 |>cr cent d(iou. 'i'he dto*'* the weaving o! he.uvy-tluiy brake lining which will eventu ally absorb the Iriction heat uused by Ur* Mopping <>1 trucks and busses. B ui in recent yean, molded and MMnimolcled brake linings ) t s w c u t in to the woven brake lining to such an extent that each o f the three varieties is &otv free and equal in the sight of the industry. i Ilf- 87 question belonged to the personnel depart ment, which was a nice way of saying that he hired people. So he and Mr. Brown talked, and by and by be hired Mr. Brown, whose first job w;is also with the personnel department. Hiring other Moiugomciy Warders did not long engage Mr. Brown's attention. He had a capacity for looking over various de partments of die business, discovering what was the matter with them, and suggesting remedies. He also had a capacity for getting his reforms adopted. So he rose to the posi tion of what used to l>c o iled an efficiency expert (nutrii .is Mr. Brown has always nl>hoircd the expression). But his liesi idea, which dcalL with an improved way of han dling the stencils for the millions of Mont gomery Ward catalogues, languished until the arrival of ]. P. Morgan it Co. (and Mr. V. .k 'V * J ufi: l ' t ^ 't.'iW1 : ,J C :- - T O BLOW ROCK INTO WOOL USE JE T S OP STEAM ANB AIR Rock wool is an insulator for cold and medium temperatures, also for sound To make it. you pour molten silicon rock from a furnace through jets of steam and air. Tltc blown rock tools off into a mass of porous, fluffy, wool-like fibers. After you have changed rock to fiber, you . . . JO f INS-MAN VI 1.1 .E'S NO I I' RODIU:? . . . is this fiosi-t vveo'd-lonkm i insulation M .uir nl *5 per <vni am i H-, j*r 1 1 nt nut*nt"u.i I h.w been fur tlnrty-f\c years the st.uul.inl o n n m g ior p ip es a m i furnnivH u p tv <*o` Fatm -nhcii Mcrselcs). M. Merschs minicdialely pm Mr. Brown's stem ling idea into eiltet and soon M i. Brown was M i. Mnscles* as.siM.mt So Mi. Blown was used to being a voting mau tu an old company and also a young man in a responsible position. And when Mr* Merseles moved out of Montgomery Ward and into Johns-Manville, Mr. Brown was the only Montgomery Ward man that he took with him, Photgrafbt My ftctrtkt'V'bttc MOVE T H E FIBERS ALONG A REVO LVIN G B EL T ANO \VI I II A SAW TO O IIIKO . . . edge lift them off and keep them from piling up into a tangled mass. The rock wool contains mil lions of cells of dead air that supply its insulating property. Mixed with asphalt and pressed into sheets, it becomes rock cork, used in Frigiuairc and other low-temperature insulation. SO M U CH iot the four Mamille presidents and the tinee Mamille m.m.me inem changes sin< e 1925 Meanwhile. wli.it of the old Mativille men who 1cm.lined through all these adntmiMtaiions, like old U.S. Senators watching various (.'hid K etulives tme and go? Most important nt ihc.sc men wcic (and aic'l William Kolduns Soiglc. now (lhaiiman of the B and and Louis Roy 11off, now Vue Push lent and Sales Managet Mr. Scigle is :igray-haired, mellow, rndflv gentleman who was with Manhattan s Fourth National Bank in iipm viIkmi 11mold Johns (in. owed (In' bank .tint nl mom v M i. Single went over to see what (ouid Ik done about this and what he did was sell the Johns paint business to James V. Patron Jr . (who later sold tn\ business to Bill- burgh Plate (lass, as told in Fon ih m . J.mu ary, 1934).Then he stayed with the com pans and became Production Manager mulct T . F. ManviHe. He was largely rtsjuimihlr lot Mamille o|K*tanon\ in igdWat<l .1 vn\ good year the company had}. Inn--hki H. Edward Manville--lie did not want to be permanently burdened with the manage 88 mciu problem. " W e 'd made pretty good immey." says Mr. Seigle, referring to the filiation following the dead of T . F. Manvillc, " and we were more or less thinking that we might sell out ami retire/' But Mr. Seiglc--who was the only large ncm-Maiv ville siucUioldei duiing T . F. Manville's lifetime--did not jxirticiputc in die selling nut Hi die extent o f surrendering his own uitcust. and instead of retiring moved up in ilu* hoard <haiunatishtp. Mr. Setgle is in i(urge ol M .im ille icveaich and developiiii hi, h.i.-> a house in Italy, and sends bis io e ib ild ie n to school in Europe. Atn\< bead *>l mines anil produriion is now C.anadian-lMjm Sauuie! Arthur W il liams. (metour h< key player Mr. Williams is in a way a link Ireiween Mum ble old and Mam die new. for although he has been with the company over twemydive years lie h.i.s risen to his vice presidency during the M riselevUiown adnunisUaiioiis. lie is the big mine and bcio ry superimeudeiH, has tu*\er worked lot anybody but (ohns-Man- sille. Mi. l outs R. Moll is a i ontcmjxirary ul Ah -Seiglr in the john.vMunviHe org-aniya- tiou. inilli date limn 19110. take Mr. Brown a! Montgomery W aul, he joined the old |t>hiis ta>. on Ids way hack horn war, hut it was the .Spanish not the W orld W ar that Mr. Hoff saw action in. Back from Cuba, lie was strolling along Manhattan's W il liam Street (whcie the old Johns offices were diuatcd) when he noticed in fiont of the (ottos building a huge number of etuis ol jttttn. Mi JJoli had a vague idea that die Johns company w n s in the asbestos and Voiding business and he was puzzled to ac count for the paint. So he walked in and asked why an asbestos company had paint on its sidewalk. After the existence of die |oilus paint division was explained, he stayed and talked a while and emerged with a |if,-a \vcck job as a Johns stenographer. It is an (Kid social note that in the days when stenography was a male vocation many an oidci U S. executive (like Mr. Mcrseles) got himself a stenographic start in life which he probably could not or would not duplicate in these days oi Irmale shortiiuiui. Strange also is the casual man ner in which jobs apparently were handed out. Hut whoever lured Mr. Hull made no error. From sicnogtuphy he got into the sales department, worked up, and in 19 12 became Sales Manager, a position which he lias held ever since. Mr. Hoff is short, wiry, quick, serious, earnest--a No. I sales man ager with all the No. I sides manager's devo tion to his s;des. Even today he will get into sales confcm ices that run m il one or two tit lock in the morning, and lie lias the .same thorough ciilliiisMstu f<u ]ohnvMunYiIlo\s still nnhnin labiuatrd house as he has lot the " 85 per cent magnesia" insulation that was a standard product buck in 1898. What Mr. Setglc does not know about asbestos is very little and what Mr. Hoff does not know about selling it is even less, and both come very rlnac lo refining the ancient organiza tion principle dial moIxhIv is mdtspcnsuhU- Other old timers in ]ohn*i*Manville's many divisions include I*. A. Andrews, head ol building niaicnafs; T . K. M ul, head ot insulation and power products: J- S Gairolk petroleum-industry specialist; John H. Tren t, who looks after the big business of railroad insulation; E. S. Crosby, of the foreign-sales division; and five additional operating vice presidents. A ll aTe veteran M aim tle men mostly working under the direction ol Mr. Hoff. Ixine executive contemporary of Mr. Brown is M r. Enders McClumpha Voorhccs. Secretary and Treasurer. M r. Voorhees wa*i with Sanderson & Porter, consulting and industrial engineers. Prior to the fContinued on page /a<?] y ^ CUTTING ASPHALT SHINGLES OUT OF ASPHALT SHEET Asphalt shingles aTe taps expensive than asbestos but more expensive than wood. Here a sheet ol asphalt, already scored with knives, is being separated imo individual luuglct, ready (or laying. Rela tive prices per square fix:., too square feet) of shingles: asbestos, $7.50; asphalt, $6; wood, $5. 89 for yourself " Management by Morgan" I<.n u fim t r / l ft n n i So J ' . . . IF -OFFICE STRAIN- IS AFFECTING YOUR EMPLOYES " O f f i c e Strain" is caused by inadequate office lighting. It results in errors in typing in copying, in filing, and the hundred and one other duties connected with office w ork. Up to this time you have had to depend on someone else to tell you whether your office lighting caused " eye strain" . N ow ^-through a new scientific development you can check your office lighting --and see for yourself whether your employes are getting the right kind of light for fast, efficient work. A sk your local utility to test your light . . . ALWAYS LOOK FOR ing fo r y o u w ith this n ew d e v ice , or THIS MAKKOF QUALITY better still, w rite to the General Electric Company, which maintains a corps of experts trained to make this test. General Electric Co.. Nela Park. Cleveland. Ohio. GENERAL ELECTRIC MAZDA LAMPS M organ ptm hasc lie made an ap p inzai <>i jolins-M am iUc. sug gested various im pim etnenis in is him a u o u n n n g and orini ilrm s nl imam t.ri opri at ton A l tri the Morgan dr.il M i. Met- st'lt'S .isLrd limi to (nine o v o to {nlm.s M am Hi .md c a m mi (In li.in g rs b< had m o m mi 11It'd. ' So M i . \ in lu t \< aim m i l and lias lio n diete m i sim c Mi li.nl also unit him M i. |anu*\ S. \dams, who ram e as assistant ad veu n m g ! man.igei in Kj*j" and lost-in be M i. burnii s assistant and \ e PcMt 1 ut ol tlx loinp.m y. Ibu ill jailn.li \. M i. Ad.tins li-li |ulins M ain lit went lu uotk Ini liin in iiK Uow !es 11m. M an li.m.m .nlvritisiiig avtncv. MR IiR O W N has imh\ been I' trsirirnt ol joints Man\ Ho lot In c \ - S . il lie u rte a , mme might demonstrative mail he easily la\e lendeted hnu- ! .st'il a ditm ri on New Vrin's bve ol might apjiopt lately h avetalled tl h is" <orniti oi age" p;ni>. I'm although lie has been known to remai k, " H ow long." plaintively, "do i slay here and Mill be die new m anager", the days when he and his little band ol Meiselcs survivors were rc- in ie d to in the M anville othccs as "d ie jm noi Leagueis" aie not long gone. And New Y ears hve * would have liceii as good a dale ! adsieaneymtlnoilc dIoInni tleoln, ghi)t eiatrms oarfkdeed! piession W hen M r. Merseles died Lewis blown was ihirty- hve ycat.s o f age. T h e corpora tion ol w lm li he iotmd lutmcli bead was, we have noted, en ionie to a glmiou.s uitcgrarion imip.nable to (.en eial M ulcts. Tilt question winch neve ran be answ rird is 'had the load te- maiited ojkmi, would he have u iiia im d at lilt* u b i c T " for in O un bci the mnikei landslide blocked the way to tim b er ex pansion and whatever plans re- nianutl in the pigeonholes oi :?* W a ifs io li-top desks began to .itlicr hist- And sorte there was to he no m oie expansion, diete O n ! ttf su n ti") Stn itln xtin J F t n lr r " u t n i r y m iti t 't ( tin in r n tlt iiio ii" ta n te St In n I 't n le i ft* Urtiti Ih r u t u n n A't u m id D isiti! >- (I'oR II s i ,Vni M i/ifl, was no mole need lo se.iith bn .molimi Mei seles io e\]> un| So drown remamid die Mmg.m ninn.igrineni .n |obns-M.im dir bill timriitiix il i ubri hi do - i <M. ni riicM oigan managt oit ni di n M oigau b i >i. 1il' *\\ li s lljsl ih JsMHls \u iiiOaojiMr pollina! I l Mm ville <ni i i)!>n-> st ili bi//i d uni* du lev ri Ih tal mus nt du <ni plov c< s' sml I in lu t lilt u u i Im gal um this lumi luiun ht n he kimu n i ii H iu u w noi mi 1 1 , slfd IO U IH It.KI itorli iIH Ss 11 H suit, i h uns sm o m o d td in litici rxri n iiu s ss li* oh li i pt< pulii i s u n ii du ..( anodin gitieiniinii, I Ir took l<" bis phiosopln an '>li M iis ih - 11 lir !. il in a boss's |t<i> (n gt mi u tl li a good in in 11lie 11st m< r Ik il'g pai m m izi tl bt in vi sbourt| h Ih st min h as nm\ mg a m stic ol bis tate i h r patii ua.s nailon*. ,md it will alwavs he donhdtil d. in die beginning be liad die .m ilioniv to ha t e .m issue. Uni w h rih n du Tot m i would ni would wot lias H u t ko I bim up, be n evo i.iisol tin que.sinm. With in h n u e ta u and m hniie im u * h r sal down to the lu id ami disagieeable job ol commotion management the job in which diete is endless wot k and h id e gh>i\. In the end die depression helped him with his organization pi obietti. 1 In men who staved on at joints Mainili, to bridge n o tin management change kepi stav ing on to budge uvei lite dpits sum. And h id e bv h id e dun came in respeil then new pustdoni-in-hiu T h e longo the depression lasted, tlie moi e udii edi\ dtev l.ihoied lo hai! oui lite Ihu l . Voi all its p iospcrin . d ir mm pain had n c u i goni ni bu pii mg up big sm pluses and b rau ash n*sei\<s Ml tin K)`.*S am! Ji- purchases wete (.hit b u a and the exjiemt in es had let i lhe entnpam w nb a none-ioo lohnst cash jxisttion. I h eir was never am piesion ol am dm ig a p p io .ie h r it g htM*hen< v~riu ompain ou<d no m*m\ ano li.ul n| (o n isr an ampli lui.on ut hacking, fmt an opetattug los. <d Si.ono.ooo was nothing .u whu It to siting a tat eh v slmtd ( t u i l n i i i f t l m i futr /:/; 28 Il . . a n d these figures cc Management by Morgan fCtHiftHurd Jiom pugr /2V] give us the true picture9 k.Rr. fig u re s presented to you in und erstan d able and usable form? Statements, reports, summaries, irrespective o f what you call them, should picture all your business ac tivities with proper comparisons and analyses. They should show current events, not irredeemable past. Management is entitled to figures that are up-to-theminute and do not require further interpretation. An interesting book just off the press, " Management Reports in the Modern M anner" tells what punched card accounting is and what it does; how you can reduce the cost o f accounting w ithout a cent o f capital in vestment for machines. It's tlie story o f understandable figures, produced with Powers Punched Card Accounting. W e w ill send a com plimentary copy to every major and departmental executive. Y o u ow e it to yourself to read this book. W rite for it now. Banks. Chain Stores, Public Utilities, Federal, State and Muni cipal Governments. Railroads and Insurance Companies, industrial and Commercial Enterprise* use Powers Methods. Listen to "March o f Time" every Friday 8:30 P M. East ern Standard Time, Columbia Network POWERS i (PiimmecmaStDn eCxAiRmD) ACCOUNTING M ACHINES BUFFALO, NEW YORK ANOTHER pr o d u c t o f r em in g t o n r a n d tier. Ami the Mativillc organizaiion. new and old. adjusted itself to a Icalisitr conception <>l ] { seih insithtm tL Tcinpcia tures imulnted rauge from JO hehnv /eio 10 2.500'' aliovc. The jahnvManvillc not as a Sfto,- low-tempeuime busincss is 01 noo.ooo hoc a $.(0,000,000 but \evy large.asork is still thehtg as a $to,oon.ooo company. Salaries weir <hi io per tent gest rringeiatum insulatoi Hut Johns-M.mv die domih.iies die .inti iIiuii ir, p n m i l with bras ici inis tit [hr liighri Inafkets \ shingle pi.ml m < inn.ti i Ucld ol Iligh-ieinjKMatme mwilatiotl pioh.ibh dnrs innie dl.in lwo dmds I du toi d hiisims'. was timed. Ah asphalt plant in IhtMun binned dnuii. wa.s mn ululili Sales managers am! so p rvisors went hai k oil the nud " (<mI salesmen cmeied l.ngei \M klllds ui illMlIattun slmnld au mim loi al least a thud ol die Main ille hmtn*ss~sav Sy noo 4HIU OUl ol Vju uiKi.lM'l) li \t i/\ inefiii^ miw'/i*' /nu< lenilmies and medio* xe sales- mm wenl lw>kuig lor new ]nhs I he <<>inpaii\ <lung Me.ulilv io tnfthiill h u u \ maki v* pe 1 ein ol die asln sins siniigh \ uw in die l S. Unt aspliali is die big Ms tew.mh depamtient (a itoiahh |MstM.itiu< dewlopinrnl g(M lonlilig III Uei I.d and liieit II) ,11c ni.im i ninpi 1 lim s Uid' Imi mill an old legumi. Mi. Seiglr, :H ils head) and sunk doggedly with its new products. Ihn it whittled down itsojxMUl- mg expenses so consistently that when the sales tide turned m the spi mg ol it was alile to showquarterly pi olits that would ptiit uitittg and small |>i*)*H m.ngnis ihr inle Rouling iua\ auimmi Io a ipiatiei ol die Julius Mamille bti.siness --sa\ $5.000.000 out ol S20.000.01*> 1\ w7/\ f/mhe //mge Heic Hi ompetes \n`Uh (nttu11 spe iah\ tompauies, mie ol uhirii (Ra luxe been lussi s on the same s;des in if} 2 periods And suite die HHa upturn just du s die (omluMoit that and I<j;;*: heslos ManhaiiaiH is a gootl deal kngci -in luake Innngs--dum johmM.im ille Ihake luimgs iua\ ainotml m 7 0 18 pri 1 cm <! sales leprcsented ] ohns-Mans ilie's deepest depression die inanagemeiit lias gone into 1934 wiih the leeling that il ran hold its m\n no mailer ivliar hapjK'Us. Johns-Mam die hiisincss--s.n $1.500.000 out. ol S20.000.000 // sW/s.wiMr j,,ftn> nthn >><,1! tul\ VI(Mnng waloipionimg piuking. gaskets. Idtei-auU u II also has gone into i<r;| with li.Kiotx cem em s. p a itm o i)' a moie untied manageimni gitiu|) (han il has Itati al am lime siiti e the diati) ni I . I\ s(o\e linutgs--,n .dmosi endn-. Iisi down In Inrpionl uln skn hu Santa ( `Jam es. l ioin tln au M.mville. So nutrii lor the mi n gi egale ol iliis muU nud e <mm who managed johns-Mamdie die leui.mniig Mi yM mm ol ri* Now let us look at the things S so.ooo.imio managed--al lite materials and T h e x a r i e i x ol J n h n v M a m d ! du piodiut.s dial carry the pnxluei um an d ( 0111 p e 1 11 1n (oluivMam die name. ront io naJlvarreiiK managemei la p .u in . Im die manageimi J U ST ns the general imestor had little idea ol who was m anaging (ohuvMaiivillc. so must he in loueii witii m',m evety haw< U S indusns .um selling eseivthing' Horn mul also lie had a dim underManding (hm th.it x\as sia ndald m i'K ol ufiat die management man (o su< h an item as a w dl mdmi aged T h e tom pam handles ptelahruateil house some 1. jon pioditt is (had 2.200 in T I'. Mam ille's tune)--a mid* mude ot dungs to sell u h u lt M a t c n n l s oi J - M pulsa jimniuni on inanagemem ahditx. And it touches so main lines of business dial in the leient uide-lmmulaimg undei NR V it uas aliened by so 'en T IM J o h n s M a n s rite *at logne lias lew mininon < nouiinalois Hm ma i l s n i d iin g lh a t johns Manx dh mak tren (tide's, li n e in tmightm is madt (o *\ei somi'thu undine, is tin kind ol business Joints Mam lie does: Stiim.1 iint-s Ih r l o u 'i m g R < I(Inninnu <! n)i ' ' I3O " Management by Morgan" I (. HI/ l l t W i i l 1111 I I I 1 >* j \ <)1>.\Y ;td \et Using lost* must stand tip mulet hr m uni. . c \ c i \ lau* d illcieiu ial must lu* lull) jiKiihed . . . c \ m advantage hike. In boom times a H uit nmnrv nm be burned witlmut doing on n u u h hat m . hi h ), | it's vasllv d tllc icm ____Five wom en's magazines, whose puces art* idem m a i --whose tira ila tio n methods ate highlv sitm U i--whose d istn h m m ii<n \eis the same cities. towns, neigh hot hoods.md sheets--whose audienc es an* tlikv--whose cditoi t:d aims a tr iiuuli the same--shate. iattl) n m l \ , .1 in.ukei ol nic 11.0* eleven m illion A humi(.'in homes. . . Itu ih rtr ate live dilleieitl costs lot teaching the h>e di/leirn i .See fois ol ilns magazine-tending m.ukel of eleven million lam ihes- smii* l:n inig;i/mes hui divsimihn ta le s .. . T h e cost <i u n th in g m t.tovi v i.R t v i i w s mot el hail * 1\\om d h oii homes is Hie low est. late loi 1.ite, in ns iit*l<l. 1 1 ansia ted to sales quotas. this .'khauia^e means mm It on the advet Using balance sheet. To )u.s(ifv (licer higher achcru.ditg rale*. "ml tlicir ct>imi|ucm lilitlicr sale* c*sl, the other tour ten-cent mnfrt/.inc't w rniuirrd n sell their re*|ect>\c Sti<M of llic winnnn market '* I the Tuh'crtwer's project in eSfCKN of i|k* uinmtcit rei)uirccl of m-\n; . Assuming u uc-eent gross margin tttutluhle for tubertsing. n compatita of 12 pages--and nil circulations cqn;ilt/.cd on a basis of 2.090.000 faaniftes - M AGAZINE " B " must sell tfMUHH) mote w its than PICTORIAL R fV fF W M AGAZIN E "CT must sell 40K.000 more H u it than PICTORIAL REVIEW M AGAZIN E *'L>" must sell liU.lHHI more tlH tiS than PICTORIAL REVIEW M A G AZIN E TU mmt seti VrnCMH m o t t omis (Ikui PICTORIAL REVIEW T lu ` ntlvrtliu'Y who rgnotrx ' C T O R f U, R E V I E W S cost atIvrintngr. WH't fat h eve Unit any o n e o f flu ' oth er Set lot \ w ill h a y utnfi n* \ottf> m tigotrlicK 01 ttfH iiviits w hivi.sh ( Mi s s of I 'H lT W t l i f . R E i ' f f . D S Set lt>>. H r nni,\i h eh eve ih nt~ ot rf\t h r n fn n u iu m oney. A n ti he's h n tn h tg it /it a hnte w h en ittl utlet m e iw u l In gel 'A RrCORP. P ie t n tt a l Koic' is ihc o u l t nm.tn * nt.tmniw vyhich. m every vmccutnc rwauh since October 1922. ius te thered in c m n of 2.00U.WW net p u 4 ciK u lu H m .it!i montiM PICTORIAL REVIEW OFFERS THE OPPORTUNITY TO RE SM ARt-ANO C /O SG signed in keep things m . some turns to k n p things out. A k eep in g-in e x a m p le i.s p ip e iiisttl.ilioH. w in ch h a p s in heat. V keeping-out exam p le is a tool, w h ich keep: out th e w in d and d ie ta in . W k -sin s is the most mi|*i-t:mi uit <*<heitt in folltKM a m tile in su latio n .m<l about lu o -lh it d s (1 Jo h n s M n m d lr 's 1 . |o o puxliM i.s h a v e som e a s fK v los in them , ho although the (oiupaitv also lists Lu ge quanti ties <l asp h alt, lo m e iii, luagnesi.i and o lliei w e ig h ty Iwwlies, aslx.sias vcniaiu.s its: No. I raw material ASUI S T O S . in ease you d on l . k n o w , im a in in e ia l (o u t post <1 ol ah ou t 15 p e r ((MM silita. If, pet (U K m agn esia, and in pti t t iii u a te i. Unlike most m in e ta ls ii e \ is is in lie lo n n ol es.ltem ely Im eiih ets i/d>.uooto iyi5awMn| an m th iliitk .. T h e s e lilteis ate em bedded in \et|Ktitine fo rk , look like (Insects ol th m , w h i l e h a iis Iro /cii in to :i liloi k ot i ic ' I lie on k lies anv w lteie horn a lew leet lo se se i.ti Intndied leei lu nealh die eatlli's stn h u e . It is ip i.m ie d eitiiet h u m o p en p its m h u m 1111 detgtokind ttiines u lu d i m .n go doviii to a depth ol i.ouo leet. I'fte ashesfos-h cai'in g mm k i.s d yinitniied <11(0 sm all p ieces anil (he asbestos Idiets a ic p u k ed out ol 1lie debris. U n til a ln m i iHtfo asbestos itim c is d id th e n p u k in g l>\ hand and salvaged on ly die t out. p .u aiK t ly lo n g b lieis--" lonn * m ean in g horn ihvee-funrilt.s of an n ub to se'C tal im bes. T h e m erit-ol die lon g libers was dial they could be u<neu like a tex tile. ftni ve ry little a\lu*s(os is found in long enough JiUa.s 10 tep .ty fi.m d p ic k in g .So th e asIx'slos m an was th row in g awns a b o u t tjR p e v e e n t of Isis ashesttK and gel 1 mi; la m y p in e s loi the tem aiu d ei as a ra il' mid ItiM uio m jn od iiU . T lien it was found dial esen shun asbestos libers louid he lom buted with w o t u l p u lp to n u k e asbestos pajK'i. will (etnent to m ak e asbestos shingles, and u ttli m agnesia to m ake asbestos instil;inn. N one ol these pint esses le q u iie d u e a \- uig a n d .sboii ftbets u<'t< adt <jn;nr h u i l x n i St Irli h.iil pu*\ itutslv Ikvii lu g la d i o u U.is n o n usi Ini. imi m u l u m .il i m k ( i i i s b e t s inoNul in (<> t.ik< th piace ol die old b an d pnk- ets. lite long filnts a u ''tdl bigldy pi i m i . ( tn ie m lx .sellini; n p i o ^ 1 5 0 .1 lini. Xml s o m e o| lite VHIsIh i I 1 oi k ( l i n i , long enuugh loi sptnnitig. sells lumi bqo tu S t u o u (ou. thit Irom un to qr, pei cen t ol u m U 'm p o i.u y asbestos ts p io d u ie d ni lite lo n n <l s h o il . u 11 w e.i v a i le liheis w lti h seiI all du* w.ty lu m i .`stu io Syf, .1 to n . u t i l i a lon a Lti 1 .iv et ago. Asluvslos is (u in u tilv ( an i dian p to d u n . ('au.id.i soppb ng alum t *J'.' 5,0 0 0 io iis m .1 noi m al u o t h i p io d u tiio n >[ allotti `r,n%non totis R u ssia , with sonuk50 non ioiis k su oud l.ng est p io d iic r i. M osi o! tlu u mantdei lom vs lum i K hoth su and Ih iits b S o n d i M i n a . Imi \e r\ little Kuvn.m or Vincati asfiestos ju m p s h v ig h t iato hai u e ts an d e tn e is th U S Vini u n i1 ol d ie lai gest ( n 11.ubau pi d u ie is is thi C an .id i.m |uiuis M a m i lle ( . 0 . old I `. I* M.m \ di h a\ m g Ioni ag o assiiu ` I bis u m ip a ii) ol an anqtlc" stippv ol 11 s li n i I i.iw tn .iU tiii johiix M .in vilir ip ta m e s b o n i 50.000 lo n s in liad ve.u s to 1 1 *,.ooo imis in go od \ <a is an d i u pi odvu non has 1 un as lugli as pi p n i n n ol d ie total ( lati a lia n p io d m itoti li t e m in e in a p p u r a t a l e ! ) stlu a l a i al A shestos, i hieht i\ a c<tu J('rm /nnnd ou m g e r s ] * tie\nt 1 \ Jithl/'" ,\hn../flr fnut itlhii l \ \ 1 tulijt/tHti \ A* n\hi \ . \hill/\iui '/ h n h lr > /* H m yl.'tnihi. un/ l'iith fi (.m i \* uf ( 'm i attuti 1 lui, 1 ( ttinulitnt il\he\hi\ iiiltlt l\ * 4i\l>4 v ^ n*(M fot utility v o ro tfam ituifetl hy e D o tto r M ttH oou, n o ir uni i^iity uu,l fi JitfWi t r ir\hrslo\ ttiait h i lummiy, / t i f j i t irti'* lul;>'tt a; 41 h x /uniti . \ t . e t i l i il l o g /*i h \ h 1 i m i f i t n i \ m u li n i li m ti H e\ m m ii y inni ih I f i 11 n t t t i n t i f i / n u l i Ktitti i n n i i \ f i l t e m l y n i r i i l t i t i i i il f ' h i h f t I hkv n I t l f t ti t tg f i l />y l ll ' ll (<11^ < I.f/x/jv l>ui i h 1 C . i i i i y h i t s n i i w /, a l m t i l Iij j u : tr iti lo tt/n t'' tutti tni l u i m i f tisfUuut U n n i n \ b r \ { < n . l M i t > , \ i m i e , i \ i u 'Cr' f n o i f i i i r t t\ \ / i t `\ ( o \ ( . t u f i t t l 'ln itig ft i/v '{/"e a n r n s 'M i t t m i f h i \ r i >\ wmll n i n i n n r v h i t v r tiiltit>efftr> tin uftftrtnetl tin tim i th rlrfitt uniti h fu s illi ( t u f i i\ u n u t r i i uj \i; /u i! (1i l t u i t f n o i m u l t o t u n 'h o ^1/ n i <m th Ih it t i < t f n ( t i n t i l i h i 11 m h i \ l n \ n i i h t . t t y '1i l t m i l /'''ni i;{2 I p an y tow n w ill) som e 5,0 0 0 im p u tatio n . It is .tu iih ia m o d e u i c p ia n y w n h ele ctiic Icxit- inntiw.s and .1 live-m i !< |iij\"ki(' railro ad ituim itg i<> 1 Ik. 1 1 ;m ks *>l d ie ( l.m adum N a tio n a l. .\s ljc s io s t.in Ik * p in d m e d lot ic v *ih a n 1011 am i )ohn-M au\ d ie ha* seldom lust m o n o on its m in in g u peiaiiim s. Jo h n s-M a n \illt* m in es all ilie asbestos it uses (e M c p l hn IK.IMOII.iI |*UI(lj.lSLS ill lo ilg hbei.s) a n d luis 1 lin k left m e t io sell 10 its co m p e iito is. I'iicH a n only k \ c iu tu patucs in (Im a d a u lit so p lot Uu t u*n aim units to a m tilin g an d .is l ,, m - \ k e a s b iy .V* M a iliso n . an d |ohnsM a m die .11c pioclin in mostly lot theit o u n i nnsim ipf m u . tin .isIk s Io s b u yer is ptiirhas10 in a v e iy n a iio u m a ik e t w ith 1 d a tiv e ly stable p in is. W in ch is one icason why, al though there a ie vm ie lilty asroslos m am i la lin e rs. leu* ol them a rc o f tm u ii in d ivid - Morgan Management ICouhnurti tom Mtgv / 52J ual importance. T h e only large U .S. com panies besides Joh n vM aiivillc, C aicy, and K r a s in ) K:M.i! (1*011 ;u c 1 h u e.sp ecially oil llies that iiianiitaiin rc Inake linings, d u llli lut ings. and o th er au io n io lise aceevsoi ics. Vet in 1lien tm u helil they do a scry limn slung business; one ol them --fcaylrcsHrs-Manhatlun--m aking at least tw ite as m any btake linings as johus-M anvifle itself, hut JolnisM .n n ille rem ains the big, scll-t untam ed asbesios in a m d a ilu ic i-a s well im egiaied with its siip c n u n e km k as IJ.S . S le d is with its coal mines and iron ores. Magnesia phis H A V I N G h tn t ig lu its asbestos down hum (au atla to M anvilte, N ew let'sey. o r W aukegan, Illinois (u h iih ate die two hugest ot M;m\ille `s ten planish what dues |olmsM a m illc do with it? T h e re a ic sev eral bundled answers to this cpicaion htti tu- h ate ahendy seen that the most im pm taitl an su ei is iti.\(daiim. l oi th irl)-h ie ) c.ijs the standard in* Nidation lor the l\ S . pipe and the U.S. boiler lias been a ptodtK 1 known as 'Sr, pel cent m agnesia," and Mip- plying this piodtiet is ]o !m s-M :im tile's biggest single job. ' l,'igiiiY*hu` pel cciu magnesia* consists, as die name implies ol Xr, percent magnesia, also 15 per cent asbestos. M agnesia is a Mibstancc detised Iron a type ol limestone. It contains masses ol m inute air <elU which make it a very poor conductor of heat. .Vs lai as insulating \ a ) u c goes, k k * j k i icm magnesia would be c m client, but magnesia dot's not possess any .siiuetuial strength, does not hold iisill togi'lher well enough to be (alnieated. Imi in a m ix tn .c ol mag nesia and asbestos theaslrestos fillers supply Ike necessary lceidorccm cnt 01 binding, and die Mmihinaiitm ran i>c shaped into m i ips for covering pipes or blocks for co\ eiing biiilers Cotum 01 silk libels would piovide the same binding elicit but ol (o io sc could not sl.md high tempctaiures. T h e pioportious ol magnesia and ol as bestos have been u o iked out m et many yeaiso l trial and et 101 and ate now M.mdard all m t die world l i n e i.\ a good esam ple ol a point cla.it 4nines up concerning man) other John.s-M anvillepiodiuis--ttteidentity Wtwcou " 85 per cent magnesia" made by jolnis-M.invillc and "8 5 per icn i magnesia" made by anylwKly else. Keasbey .V. Matuson and the Kbret Magnesia M lg. Go also make *'#5 pet cem in.rgncsia" w lm li is indiMin- gut-sluble b o m |i 1u k M am tile' s Vet Johns- M .n n d ic dens ttu H h h d s ol the 101.il I ' S " Xr, pel cent magnesia" business because 11 is older and biggei aiui has the widest |C o n i i t t u r d o ti fit t e r 1 ?fl] l'ttO IH 'C T \N!> SOPKC.K l , I*.flllN \t 11;n.-s <|U.Ull il 1. 1 sill-. 1 .lll.ui t It U.Is , hilt u In 11 III* \ Mllll nmkm;; * il Imh linw 1: 1' holt - ,t 11 t 1 It,,, t(tint s lilt 1 I" u hull "k , Hill! .llioill lllil 1111111, ..1 1'iluis M ins illt s pi 1llllU 1> !' . . IN 1 <1itmk <*l St 1|H'll 11IH I<*t k 1mil nmi ; is! n|i*\ lit*. Is uhtbi an iltim 1 ilium )u i _ ,11110 i)l .Hi null i1[c, I I in hlit i is t si 1 it 1tl in. tiiish Hi-., Iin uuk i tt Ihi t /hi i'. ,1 gi ix nil . u u ot tin p l u m nlmti tu ki i i ri units 11.is pitMltunl .is mmii as 1 1 5.- um lolls 4l usiicstos li Spy* V T O \ t o M l- V IO N . Is ill- Splt-.il) III .IsImslts |MI< C* Urluren tin long Itliri nil ilir n<zhi .mtl iltt sliori hint oil liu l* fi. ` tin It**11; I*Ihi is limit \alu :i)*U txi.tiist ii .in I** ivowii min .islitsins Itiiii .mil .list* lus.inst lilt It is hill I il C)|||\ t |m1 tul tit ,slt sUis is long I'lMMlgli pillt-t tomilis ni .ill liicit <U IIHtlt) (01 (lilt Itstllis }4 tinIS M.UIS ill<* ||.,S st m lilltt long lilifi ill C..ttt.nl.i bill lias some in an ArtAHi.i tjturry svhidi w curicntty bliui down. J35 sheets as dun as ", tonno (1 an inch. A M en hauls Despan h ictn g cia n n car was rc- u i i ih put nun operaiicm will) s8 jxm mls ol alum inum doing an nsul.ititi job which would uiIk i wise have m p u u 'd ap jn o sb man I' a.oun |ounds of <<* or h air loll. A Ih I,u .1 u* N. Hudson locom otive wont into ommission t a m i n g i ;j jHmnds ol ulmui- num in siu ii ni pounds ol magnesia (links I he l ` S \ ,i v v . huge use <>l <oik. m.igiit si.*. .mil asbestos insulation, is patlit- uhul\ iim iiM n l m alum inum insulation, naval .in h in t tin e having litconic so con- in itia te d tin tin* p iohlem ol b uildin g ships unitili spettim i weight limita. T h e II nisei .\V-,e Oih'iUtN lias r,tm pounds ol almutiHiin insulation compaied tu mire liiaii jiMiijim pounds ol tm h anti magnesia pJOillH is < lue! anioni; the companies selling alu- iiiiiuiiu insulation in the l 1 S an Aitol lusiilaiion < '.o,. vs hit h holds llie l I.S. patents on IIn oiiginaf ( i n ut.in altnnmuHi-nisula iwhi devi-lopiueiii anti the R rstiok ls Metals ( o.. whose Ibrsident R u h a td S. Reynolds is a tu p lifu ol ilu* late R . |. Reynolds ol ( aim ) t tg a in ics. Anti tin* A lum inum ('.o. ol \iiim iM though noi mai kctitig alum inum insalai ion. is w ill pleased wild [h r line new m.nkri loi aium uum i in thin and shiny Imiiii Minniiiiiiu insulation has no pos- sihihu ol making asbestos (or eorkt insula imit ait halt likt ah new piodurts il has doubles ol is o u n and Us intk ol potimi,tgc is no la< lot in st.it m o a n insulation uh eio die piohlem ol u.iiisjionnu; die insulator does utt an se Ihu its invasion ol vail- toad .md also ol ii.m leship insulation is p .o tu u la il\ .m n o uii;; to johns-M.tnv lilt , which had die I '.S ia ilio ;u K a n d die I '.S \ : i w titilli p u H\ well sewed up. ( ho m titit lux is the mstiialioit (itisi- Morgan Management | C o n t i n u a l f r o m t e i g i ' i ?V] m ss which wo have already described as (a inking to .*l leasl out* lliu d ol |olm vM an- \ Re doihus. (hi msulat ton and insulation of u n ip c i atm cs highei than i.ouo*' are Mill a small (.k iio ii ol die ioi.il insulating busi ness, the hulk of which i.s ill in hoi (bill not Mipeihoi) pipes and fablers. Rest mdtvidu.it custom er is (he raib o ad , w hich may atrm uu lor a (juaiiei of the whole business; most unpoiiant single p io d m t is " Hr, per cent m agnesia,'' the bat flu m e oi the industria) insifkuiou trade So we have.seen wheie possibly Sy.non 000 ol |o!m s-M an\ilte opili salesol Suo.ooo.ooo came horn, b tu d iiiu d ly tins ligm e and all sm ulai ligm cs an* Mti< fly moilui.il .is |ohns-M aitville has still ,t hue old iatnil) Iccltng ioi t(.licence about Iho n a tm e a m i p a u se d its business, bs balance .sbcct and can tin g m.u c n ic iii. lu ll oi huge hguics, could hardly he *ailed personally conducted lu im ih io n gh M auvtU c'* busi ness. Four walls and a roof above NO T rveiylxw ly insulates n pipe hut c v c i y IumS) is lainiliav w ith a 100I and nearly e ve n one who has heard ol JohnsM a n vilk knows (hat h makes ashcsios shin gles but M a m it(c'sashesuis .shingles are am a large portion of ns total business or even ol us total moling business. M shingles w n e drsciifa'd like uiMiialton, (hcv could In* t.ilicd "(~ pit ((ail teiucin. lot the ashes Ins shmgie is afumi lu o d iiid s tement and o n e-th u d n.sbcsUto 1'he asbestos shingle is a \e ty line shingle, but it u r n s one a n d one* (|u a n e r times as m uch as an asphalt, ami one and one-hali times as much as a wood shin gle So. 1mm a residenual sumdpoint, the usual hom e cm n o is noi going to pm on a.vbesios shingle.s unless he is p .m iaih u lv inlrigtted with asbestos* tne-icsisnng plop- e tiu s . I'inilierm uie. il lie is d u uiuisual home cnvnei who does not u u e how n u u h he spemls lot* ins tool, he will pwibably gel house)I a slate tool, so asbestos b espensne lather than exclusive. Johtis-MauviUe has .1 stu m g }X)Miion in d ie a.sijcsios shingle in dustry (Carey, Kcasbey 3k- M auison, and Rulievoitl are the eomjsetuion). may make r,<j pei <*ciu ol total jwoduction. Hite it is donhdtd u'liedur it sold mote ihau a mil lion doihus' woiih t>l asliesios shingles (*, pei teni ol total sales) in itpp;. Asph.di is the 1 cully hig looJmg malt 1 ial. espet ially loi l.Kioiies. Am ! jo h iiv M a m d ie is a big asphalt um lcr. .Vspludt ts derived mostiy liom peiroletmi. being the thick s u b s u m e temiuning when die lelmei has eM vaued all the n un c volatile con.sUUieitls. )olus-Mam die buys its asphalt, iiitegi.it ton not being necessary because asphalt is so cheap ami plentiful. Kroiu the same reason ing, ficmevet, it fufhu.\ lbat Ihere ait plnU\ ol asphalt m oleis and aspbali e<mi jKMtiioit is so seven; dial (be pioiit m aigm is probably tinder |k t tern. T o many a lug pel 1 oleum 01 <hemic.a! cdiupuiv aspli.ill is a bypioduct :mcl sold at the p i u e of such 'Huts in asphah |oims-Nfauviile runs into .1 whole new line ol c o m p e u to iv including R im ko ic Cnrp. (Royal I>mch-Sbcllh \niet- ic.m T a r IhcKlmts (Kopj>ers Gas & ( 'ohch and l k u u l i <`.n (Allied Gheimeal k- Dvr) Not tn ineiuioii uich'pendeni moling <om- paines sin h as K n d X. Sou ami ( a ii.tuc f tvd thodmls However Mauvilie mn.ims a huge aspbali m o l u and .isph.ih mas nn< i< ii< p<`i 4u i i o! Us iiiiai tloll.n s.des. Vddiug ihe asbestos tooling bnsines-wh.i h im Imh s not nnlv shingles hut also mil mois ol condmi.u urn .spluli and :Kbeics--nuhtig m genet.il should u m u m ah*mi .< pt.un. ol s ii.idr. So loolutg should have hionglii in ilioui Synnii ihmi in n j , ; winch wi th > 7 .imio.oto lonn insulation amounts m S i _* 000.000 oi tin* `S'io ooi 000 lotal. (tin die UMiltng doihus wu haidei lo gel. w rtc noi mote (ban one tilth as pmhi aide as the insulation doihus i;our-v\ heeled lxm.nr/a - p t l i ' most iiiipttil.im M auvdh u<m ilm X lUMtl.thoit and tools is hi.ike Ituiugv 1It K asbestos ag ill) 1 1lilt's IIIIt 1 Us ou U lot ill lout win 1 1 In,iked atiioiMohdr Middetdv slotting down I m m w mv units an honi iu no miles an horn g u ieiaics v i uuuh ho trc>n that stu n k heal ICsislel is MVUNglv incbciUtd W oven iuake linings au* made ol about d n p e rtc tu asbesio.s, and btakc lin ings, with their large asbestos com eni. aie [Continued <jh w g t 1 /-| 14 ( " Management by Morgan" [(.ontinued from page /,//] SiHNiNr: FVFs o|*en wider Gnmdpael!* o f the great prairie fire ami of Grandma's heroic ride for life. T hat w:u lu rk in *74. How clearly he sees Iter-- ` ` rulin' like the wind," chased by thefearful, roaring flames. T h e y lived happily 10 celebrate their Golden W edding -- sweethearts always. Now he is "rid in g out the rate" alone-- living in beautiful memories -- patient, serene. A nd no little part o f his comfort comes from the fact that a C U R K Vault was bis last earthly tribute to her. The N ew C l a r k Custodian T h e new C ia r k Custodian, first and only one-piece metal grave vault, typifies the modern trem in burial equipment. Its rich design is Grecian, with classic Ionic pillars. Softly flowing curves give added beauty ami strength. W e form each C la r k Custodian, by an exclusive process, from a t e single piece o f specially processed, rust-resisting metal. Generations o f service w ill not cause it to c-r-w-ro-M-e. W c use the tune-tested, A ir-Seal con struction wlch was pioneered by C la rk. It is bused upon the Mine natural km that guards the men in a diving hell on (lie bottom o f the ocean. Kuril C lark Custodian is criltnilly tr^rtl undo .?<>>> potttt.is e f av/rftr. Even a pinhole leak is ctiscoveml l y this test. T ie Name " C l a r k " T h e name " C l a r k " on a metal vault is your assurance that the vital air-seal lias been tewed -- that the scientifically proc essed metal u as specified-- that the work manship is without fimlt o r blemish. Insist on the C lark, N ohonorable funeral direct or will attempt substitution. T h e new C la rk Custodian is offered by leading funeral directors everywhere. A lso, C l a r k Standnul nmt C l ar k Solid Copper Vaults. Prices nrc nhvays resonable. A rboioe o fappropriate rolnrx is su ail able to any funeral director vitlmut delay. Every C lark Vault is warranted for 50 years or more. F r e e ! "Mj DM)1" --*Some day a friend may need your help and counsel in the hour o f great need. Do you know wbat 10 do > O u rb o o k le f'M y D ty" tells-- simply and dearly. W rite forir now. It' s free. The Clark Grave Vault Company, Columbus, d u o . Western Offirc and W arehouse: Kansas City, Missouri. turn o f the tvheel since its 1927 change of ownership. A t the earlier dale everyone was assum ing that business was going to be good and for two years the assumption was certainly coricrt. T o d a y no me is making dclm hc pmpbcrre.s and (itc 1in - 1her ahead one gazes the more obscure becomes the prospect. But with this important qualifi cation much of the <127 pro spertus is again emerging, and oiiasotindct if a less sjnxianilar liasis. T h e Moigan ownership still remains. T h e management is not as Morgan-molded as pop ular imagination pictures it, but it is a better and more consoli dated management for having been left to work its own way out of the depression. As to the G encral-M oiors-of-tbc-h utldingindm try idea, no new merger rumors have arisen ami here some o f llu* jximi 011 (he old ( auvas seems to have jjennancni- ly faded. B tu the company Jins a much more complete line, nt least oS insulation, than it sold in M r. M anville's day and Is position in the older forms of asliestos insulation has, if any thing, im p<?vcd. Meanwhile lim e tcm.tin the possibilities nl the future--a ir -c o n d itio n in g . w ith its demand for better insu lation; sound-proofing, which should generate more dollar vol ume when m oic office ownets again have money jingling in thcii |xwkc.s. die picfahtuatcd houses, which put Jolm s-M anville am ong the pioneers of .i business tiiai is subject 10 almost unlimited expansion. T h e (with apologies to M r. Blown) new management has come success fully through one o f the most trying experiences that a new matiageincui <no!d writ have encoiiiiteic<l. Pci Imps it tan now pick u p u lie te Mr. Mciseles and Prospcwty left olf. Not to Eat, Not for Love \ C o tiiin n rtl fia m p a g e ;>] ernchy laws to an Id. honor able, and ]n n d an pastime. It is the timid, weak-spirited bour geoisie, they say, who take away corkfighiing from both their in let iors and their tatters. "'W h at happens to the dung hill chicken?" a cocker will ex claim. " A t best, his neck is wrung to lit him for the family dinner. A t the worst, he is m u tilated and in Honed, then sent iff to a poultry house where pickers with sharp knives slash die roof of his month, so that he may bleed to death slowly while he is stripped of his feath ers." T o the sportsman a game cock's death is triumphant and exalted. Fa en cockers grant that the bird is stupid. Probably he feels no pain--only ait irresistible urge to annihilate the enemy who stands for an abstract challenge tf>his supremacy. O ut o f the pit, he is well fed and boused, pa rades at bis ease in a small uni verse of his own. Perhaps three limes in a season he fights, and if he is powerful enough to sur* vivc his taste for battle is onlv whetted, li e may live foiirycais (some cocks h a v e l\cd and fought to be eight) liefore age and boredom make a victim of him T h e n he dies, still in such fury of hatred that no spectator can pity turn. A n d a score or so of gamblers and poor farmers, a sprinkling of fine gentlemen, arc happy. T o all this the A S. P. G. A. makes no answer. But faithfully, each yrai. 1 gathers up ils unrepentant houlc oi blue-blooded bhds. Sometimes (in the great cities) it puts them to die in lethal chambers. M ore often it turns them over to the jx>bcc. who w ring then* necks to feed prisoners or the poor. M any a sergeant who knew no hellci has locked his sullen flock of criminals in a <ell o\cinight, ictum ed in the morning to find them lead. For game cocks love nothing better than to light: like sailors ashore, they can imagine no happier paradise than one in whirl rages an end less frec-foi-all, e n d in g tonstantly in death. 146