Document D7kY2q0oEGOj3rg9aE545xwo

FORTUNE MAY 1949 Ho u s e Th a t Jo y c e Bu il t From varnishes to paints and lead and zinc and rosin and margarine and Durkee's mayonnaise and weed killers and cattle feed and sex hormones, the Glidden Co. grew--but not like crazy. Raprifitcd throvgh lh toirrloty ( th Edllon FOKTUNf for ih# Employ*** *f tfc# Qtld4n Company. Copyright, 1949, TIME Inc. and the criminal bar, and othera too. And there ia a muttiplicity of bar problems aj well. Legal periodicala reflect a good deal of >oul Marching on auch topics as lowness of income, intensified competition, overapedaliaation, lota of status, fail ure to meet public responsibilities, diaorganiaation, inade quacy of training. What ia this profaaaion like, and where, since Shakeapeaie will not be heeded, ia it going? That the bar is one of the most conservative of all institu tions is made dear by answers to key questions put in Fo bt u n s 's questionnaire. Asked to classify themselves politically, the lawyer* divided up as follows by their own statements: Itight Canter niHHnnill% u b b l ac k s t u n o Tin ia way out of date, of course, but The "right" bar, moreover, ia--again by its own statement Twhen the laat one ia reverently untied it will drop from the con riderably more extreme in orientation than the "left." proud neck of some lawyer, no doubt a Dixie Senator known . The answers given to several other political questions are as "the Judge." For this ia par excellence a conservative east*. the more striking when compered to replies given by a sam Mr. Justice Holmes once said that historic continuity with pling of tho general population. For example, on the question the past ia not so much a duty as a necessity. And history of whether the government has carried regulation of business holds the key to all that is legal. The lawyer who defends the too far, to about tho rightpoint, or not far enough, tho lawyer* right of some enterpriser to be free of federal control speaks tike the mote conservative view. Among them, 83 per cent in tradition's name, and so does the one who defends the right think that thing* have gone too ter, a* against 37 per cent of of some political heretic to set up bis soapbox and sound oil. the general population holding that view. If thinking that There are Communist lawyers (who cite tradition on occasion regulation has been brought to about the right point means with tongue in cheek) and there are reforming lawyers who New Deelism, 33 per cent of the lawyers are New Dealers, cry for innovations, but the bar as such tends to stand pat. which is 4 per cent less than among the general population. Ctmtmvtd pegs lit GERHARD VAN ARKKL Mr. Van Arkel of Washington entered labor fraction via Print*font Harvard Law, the NLRB, and tbs 088. Bn spent three war time years mobUimng underground labor union forces io assist the invasion of Europe. Hn resigned as gnnnral counsel of thn NLRB m criticism of the Toft-Hartley Act. Hit present (Rents include the International Typographical Union. Some unionn note employ a staff of full-time legal counsel "in tfo house" ADRIAN 8. FISHER General cowl to the US. Atomic Energy Commission, he sym bolises the able poung lawyen who of. late have made eOners ft* public administration Tennessee bom "Butch* Fisher studied at Princeton and Harvard Law, clerked for Justices Brendeis and Frankfurter, and has worked jor the SEC, the Bonneville Pouter Administration, the State and Commerce departments, the AA JF. (at a B-n navigator), and ths Number? tribunal. ' GLD 040273  if . ... .:--i'v:Vi*': GLD 040274 88K !KR*B*sSr; "Funetional diver*lfication"-it sound* like economic gobbledegook. But hardheoded luialiiresinaii need it u J hue for an in tensely practical and profitable entcrpriie. THAT JOYCE BUILT From varnishes to paints and lead and zinc ad rosin and margarine and Durkee's mayonnaise and weed killers and cattle feed and sex hormones, the Glidden Co. grew--but not like crazy. Apanw D. j o t c b of Cleveland, Ohio, Chairman of the Board l\ of the prosperous and prolific Glidden Co, and at seventy-six yean of age still its active firat executive officer, might heat be desoribed aa a businessmen's buinneaainan. Aa in the case of a "writer'* writer," or e "ballplayer's ball player,'' the label implies a competence of the kind that it,-almoatoonceals itself in action, and the exertion of a technique ftcsi sound to be spectacular. Mr. Joyce ia not a plunger or ,<iolorful prompter,north* greatest American salesman rince Twhimply a superb businessman of some sixty noe--the land of U.S. businessman in the Bash JoJm Chihiheriain protests you never meet in the fiction *of modem Aroirfean noveHttt (see "The Businessman in Fio$on,''FosTt^iiffvember,lM8) .But after aH,intheaver*ge novel it utbCmSn of indecision--or of bad decisions--that makes for engrossing reading, and Adrian Joyce is an engrbsaing real-life f&^ractar for juat the oppositereason. He always seemed to linow where he wanted to go and never hesitated, after prudent investigation, to make a great many important decision, that time has proved were very largely right. When you first look at Mr. Joyce's big company (the IMS gross exceeded $200 million), you feel you want to brush the film from your eye*. The Glidden Co., to choose at random from its hundreds of products, makes paints, poisons, salad dressing, cattle cakes, type metal, oleomargarine, and aex hormones. It operates thirty-four plants, and again to pluck at random at the Glidden gamut, they include a apioe mill at Elmhurst, Long Island, a chemical plant at Baltimore, a paint factory in Cleveland, a soybean plant in Chicago, a barium mine in Nevada, a eooonut-oil refinery in Berkeley, California, and a fishery in Pascagoula, Mississippi. The mdlange may suggest the morning-after accumulation of a multimillionaire on an acquisitive, cross-country binge, but it is nothing of the sort. The Glidden Co. is a house in exquisite order, and it was put together beam by beam and wing on wing by a remarkably clear-sighted builder, Builder is certainly the word, rather than architect, and he worked not so much from a blueprint in his hand as from a few basic concepts fixed firmly in his head. An instinctive ability to proceed from A to B, to C, etc., accomplished the rest. The rationale of this apparently complex corporation is strikingly simple as Adrian Joyce explains it (he has a talent for crisp, clinical exposition of a business problem). But it is neessiary first to catalogue briefly the Glidden Co. si of today before taking up the tale of bow and why itgotthat way. For orientation one can divide the organisation into five main divisions: (1) Faint and Varnish, (t) Durkee Famous Foods, ($) Soya Product* and Stock Feeds, (1) Chemicals, Metals and Mining, and {() Naval Stores. Besides, paints and varnish**, the first-named division manufactures DDT compounds, weed killers, and various insecticides; also lacquers, emulsions, finishes, polishes, waxes, etc. The food division turns out great quantities of edible oil . product* in bulk, which it sells to other food manufacturers, as well as its packaged goods, liks salad dressing, mayonnaise, and Worcestershire sauce, which it sells to retailors under the Durkee label. The soybean division make* the livestock feeds, lecithin, also flour for human consumption, and the sterol chemicals and aex hormone*. The chemical and mining di vision make* the pigments--cadmium red and yellow, tita nium dioxide, hthopone, the ground-bleached barytes, red and white lead, etc.--and the powdered metals, type metals, and metal alloy* for the graphic arts. The nsvsl-stores division furnishes rosin, turpentine, tar; etc, and all their various de rivatives. Profit margins cm these respective divisions vary, but in reoeot years the net on total operations has avenged UOmiliioo a year after taxes. Roughly, production in dollar volume rune to U per cent foods, *4 per cent chemicals and naval stores, and (0 per cent paints. Don't throw it sway The first key to this mysterious mixture ia found in the first important job that Adrian Joyce ever had. At the turn of the century, the ex-Iowa farm boy was working for Swift k Co, in Chicago, where he was appalled at the sinful waste in the meat-packing methods of the period. He it was who proposed the nowbasicscheme forconvertingtheresidues into fertiliser, and he ns thereupon assigned to organise a department to carry on such work. It's a cardAdrian Joyce has played many times since. Full utilisation of materials (xnd of equipment 95 GLD 040275 and personnel) is a cardinal Glidden principle, and accounts muster, after mortgaging everything he owned, was $138,000. in large measure for the company's lateral expansion. To A syndicate was organised, however, with Joyce at its head, hark back to the businessman in fiction, hoe is another and a purchase effected by placing the stock in escrow until reason ior Ur. Joyce's disqualification. Far from being a subsequent .payments could bo made out of earnings. plunderer or despoiler oi national resources, he is eminently a Though he was up to his ears in paint, Adrian Joyce had a salvager and conservationist. Half of Glidden's fortune seems poor opinion of the way the paint business was generally to have been made from fashioning useful products out of operated tip to 14)17. "There wen plenty of paint mixers," he residues that other manufacturers have historically thrown says with just a slight inflection of disdain, "but I wanted to away. Repeatedly, Glidden hes turned the sherds end stinks be a paint memu/ooturer, with all the term implies." To Joyce of industrial processes to profitable account. it implied a fearless foray into the chemical business, the con trol of raw materials, the discovery of new materials, and the Fnou Swift's, Joyce moved over to the paint-end-varnish business, and with Sherwin-Williams Co. rose to be a gumption to manufacture out of those materials any land of products that might seem sensible and profitable. He at once director and general manager of sales and distribution. But rewrote the Glidden charter in such a way as to give the com life really began at forty-five for him when, in 1017, he picked pany freedom to experiment with anything that remotely in up the ancient (established 187$) Glidden Varnish Co. of volved the materials or equipment employed in making paint. Cleveland, the eomentone of his now notable creation. Mr. But being an operator who goes to B before C, Joyce first Joyce approached Mr. Glidden on the reasonable assumption set out to make his varnish company into a top-flight paint that the Utter, then nearing his ninetieth birthday, was in a company. In the next three years, the new Glidden's pur mood for retirement. Both men agreed that,$1,600,000 was a chased eleven paint concerns throughout the oountry. They fair price for the varnish company and its vanarabU Jap-a- were bought on a highly selective bant, however. Geographi Lac trademark, but the most that Joyce personally could cally, the aim was to spot a plant at each breaking point in 96 GLD 040276 OwrtMlnf THE SCIENTIST AND THE SOYBEAN i The soybean division is just one segment of the Glidden Ce, but its proliferation is typical of the entire outfit. Gliddeta first ought in the soybean only a substitute for the expensive casein it required in making paint. But in the process Glidden found it convenient and profitable to produce at least a doaen other soy bean derivatives, ranging from foods to drugs, developed in the Chicago laboratory by Dr. Julian (opposite) and his staff. the railroad freight-rate structure. Financially, Glidden pre ferred to effect the transfer by an exchange of stock and a minimum cash outlay. Mostly they were small, family-held firms where the owner was happy to make the deal, particu larly if he could carry on as manager. After possession, Joyce would send a man in to train the personnel in uniform methods and in making paints that met Glidden standards. His company waa soon one of the front runners in the field. Now it was time to make Glidden aeli-sustiining in raw materials. And in so doing, Joyce knew he would take higfirst steps toward diversification. He couldn't have told you, in 191V, exactly what direction the diversification would take; he couldn't spell out the precise products. But he knew he was dealing with fecund materials that held many hidden properties, and that the possibilities of their combinations, refinements, and extractions were infinite. He wee neither a chemist nor metallurgist by profession but he had the feel of the new technologies then coming along fast in the labora tories of the world. He visited Europe frequently and studied what the Germans were doing, not only in chemical science but in the structural adaptation of their corporations to the proliferating chemical industry. He didn't lust after power and monopoly like the L G. Fsiixn proprietors, but he did envision what could ha done in his own bailiwick with a "ver tical combination" practicing "fnnctional diversification." How the old woman got home The time basic raw materials used for making paint are lin seed oil, lead, and sine. In chasing after them, the Glidden Co. met adventure at every turn. The supply of linseed oil didn't present any problem of moment, and here Glidden was content to buy one plant, at St. Louis, and let it go at that. However, it wasn't economical for Glidden to ship oil from this single pUnt to its national network of paint factories, so the company arranged a deal: Glidden would supply competing paint companies in the St. Louis area, and in turn Glidden bought oil for its distant plants from neighboring paint companies that either owned linseed-oil plants or bought enough oil to supply Glidden as well as themselves. This was a quite ordinary deal, and it would stand at the most prosaic chapter in the Glidden story except for one thing: it was the linseed-oil plant thet popped Glidden into the food business' but that comet later. Lead was something else egain. Since there were only two major sources ot supply--Eegle-Pkher and the National Lead Cor-cMr. Joyce was afraid of a equeeae. Searching elsewhere, Joyce came upon a far superior proposition. He found a man named Edwin Eustcn who owned a patent on a proeess that revolutionised the old Dutch method of making white lead. 97 GLD 040277 HERE PAINTS AND PIGMENTS Titanium dioxide, a white pifment employed in mixing paint, ia produced by Glidden in ita Baltimore plant. 8howu above ia a "digetter" tower aunounded by iron scrap, which ia mixed with ilmenite and sulfuric acid to produce the pigment. In the old Dutch proceaa, it took 110 daya to turn p$g lead into white lead. What's more, it waa performed in a single veaae) and the resultant white lead waa uaually contaminated with pig-lead impuritiee. The Button proceaa firat dissolved the lead, thua eliminating the other metallic elements, and produced pure white lead in only twenty-four hourt. Joyoe promptly bought the patenta, and the Button plant in Scran ton, Pennsylvania. It gave him better and cheaper lead, com plete independence in one of hie baaic raw materials, and a profitable new product to tell to other companies, ae wall. They smelled something Glidden't experience with tine haa a typical Joycean twist. Zinc ia one of the two materiala used in wiring one of the moat important pigments in paint manufacture--lithopone. The other material, barium sulfate, is cheap and abundant. At the outset Glidden did what anyone could do: it bought a rinc mine (in California), aoquited barytes depositt in Nevada, and purchased and revamped lithopone plant in Baltimore. But ahortly Glidden needed more lino, and it waa desirable, also, to get it from a soum nearer Baltimore. Just then Phelps Dodge Co. was having an unholy time with the disposal of fumes from ita copper refinery on Dong Island. The company had installed the tallest chimney feasible but the devastating fumes persisted in annoying the person and THERE DURKEE FAMOUS FOODS Tbs factory abova is the original Durkas plant at Elmhurst, long Island, acquired by the Giiddan Co. is IMS when it wanted to expand its food business. Now, most of Glidden'* retail food product* are marketed under the Durkee label. property of indignant Long Island eitisens for miles around. When the Glidden people heard of this, they captured a sample of the fumes, and found something much to their liking. So a deal was made whereby Phelps Dodge bottled up the fumes and turned them .over to Glidden, which converted them into a dust from which large quantities of sins sulfate and also copper, lead, and tin were recovered. Glidden kept the sine, returned the other residues to Phelps Dodge, and all concerned, including the Long Islanders, breathed easier. In chronology, we are now about ten years along in the life of the reorganised Glidden Co. and it it apparent that either by purchase, adaptation, or discovery Mr. Joyoe has securedimpregnable and economical sources for the basic raw materials needed in manufacturing paint, There are additional materials that figure in his business, of course, but toward them his sole criterion is: can we make it ourselves for lets then the market prioeF Turpentine end toein came in this category. After a look Mr. Joyoe moved in on that field. Naval stores ia an ancient business, and until Glidden came along, ita methods were ae old as the business. Many small arid scattered owners, tome of them only a step or two above indigence, employed Negro families to winder through the pine woods tapping the gum thus into wooden buckets, after which it was carted to one of the hundreds of small, primitive still* that dotted the area about every five miles or so. It was 98 GLD 040278 a highly uneconomical way of making highly impure turpen ing the yean while it was experimenting with the manufacture tine and rosin. In I960, when Glidden went in, H built a stain of T^*Jgflrin*l shortening, hard butter, etc^ Glidden had only less-steel vacuum.distillator, the finest and biggest the South one major food factory--a Chicago brewery, picked up had ever seen, installed mechanised collection methods* and cheaply, when prohibition was enacted, but peculiarly well was easily able to get, at much lower cost, s product of su adapted for food processing. Then in 1H9, Glidden stepped perior and uniform quality. Glidden still does some tapping, opt and purchased in swift succession seven good-sised food but for much of its supply it merely buys up acres of aban companies. It bought margarine outfits in Ohio, minois* Wis doned pine stumpage and draws the rosin out of the stumps consin, and California; H bought the long-established Dunham by destructive distillation. Mfg. Co. of New York, maker of shred coconut and, for a The residue of the residue of the residue topper, paid $1,600,000 for the plant and facilities of E. R. Durkee k Co, of Elmhurst, Long Island, which had a won With linseed oil, sine, lead, lithopone, turpentine, and rosin derful old name in such packaged products as mayonnaise, in the bag, Glidden had an almost completely integrated paint salad dressing, Worcestershire, and spices. Thereupon the company except for dry colors. "Maybe we're throwing away Glidden food division was blanketed under the trade name of something that would serve," suggested Mr. Joyce and he put Durkee Famous Foods. In six months Mr. Joyce bad a com his technicians to work analysing Glidden waste materials for plete line of producta, a national distribution system, both evidence of color components. Soon the Baltimore laboratory wholesale and retail, and a household name in foods. reported that when it made lithopone (out of the stinking Phelps Dodge fumes, remember) a miserable scum rose to the top of the solution, which had to be scooped off and discarded; upon analysis, this scum was found to contain cadmium, a substance used extensively for plating metal. Further research proved that cadmium would produce something previously Using the old been Meantime* largely as a result of his European excursions, Joyce had become interested in the soybean. It was in con nection with the paint business that soya first attracted him. In Germany he spotted a process that extracted from the unattainable--a true yellow and a true red. Cadmium yellow om 184 and cadmium red, brilliant, firm, non-fading, are now the most prominent and profitable dry colors in the Glidden line. So much for Mr. Joyce's paint company--one of the three biggest in the world today. Now to leaf back to the year 1M0 and the linseed-oil plant in Bt. T^ttU that led Glidden into food. The plant was well located for Hs job of crushing flax seed into oil, for all this flax was dripped up the Mississippi by barge et the very cheapest rates, right to the plant's door. But the crushing season lasted only six months* and the plant stood idle for the balance of the year. Mr. Joyce characteristi cally ordered an inquiry into the JuB utilisation of that ma chinery, and, presently learned that copra, which yields cooo- nut oil, could be crushed by the same equipment He imme diately made a deal with Philippine growers to ship in enough V copra to run the St Louis plant on a year-round basis. ), Mr. Joyoe's first ides was merely to take up the slack in the shop, and sell the crude coconut oil to anyone who wanted to buy it. But he found that the only customers who could take his output of crude were the soapmakers with whom he would have had to compete for the purchase of Philippine copra. \ That didn't look like smart business to Joyce, so he decided to refine and deodorise the coconut oil and oonvert it into shortening and margarine. But once be vaa in the margarine business, he found himself in competition with firms like Gen eral Foods, against which he could get nowhere without a complete line of products and a national distribution system.. That being the challenge, Joyce accepted it. After all* he was searching for diversification, and what better choice could Glidden make than food, which, m>Kk paint, it something people have to buy in bad times as well as good? And it was functional diversification, too, because of the complementary use of certain oils in both foods and paints, and the inter changeability of much of the equipment. This Adrian Joyce operates with a kind of swift serenity. He takes his time gathering and trusting all the facta of a situation, but the decision itself comes lightning fast. Dur PXKIXDSNT DWJCHT F. JOTCI H. mw had a Wi ton compier. School watlou vm apeat " > laborer at GUddeo'e; later, ha became a atar aalctman. By 1*47, at the age of fort,-wren, he had full, earned the prwidency. 99 GLD 040279 GLD 040280 28th CENTVBY TEEiSDRE-TEOYE Instead of digging (or |fild on faraway itkndi, industrial executives of the 20th Century can find fabulous hidden wealth right in their own production lines. For many a manufacturer throughout the modem world, Clearing presses have uncovered a buried treasure of reduced production costa. Precision and rigidity of Clearing construction assure maximum productivity. Let us show you how Clearing presses can help you to greater manufacturing profits. CLEARING MACHINE CORPORATION MW West 66tfc SbMt * CMugo 36. lUinoU i JPUlSigS THI WAY TO IFMCIINT MASS PRODUCTION 165 : GLD 040281 House That Joyce Built soybean a material which could be suitably substituted one) and the female (progesterone)--from the soy-oil for casein; and casein, which had become mighty expen sterols. It is scarcely more than a decade since the sex sive in the U.S., was used extensively by Glidden as a hormones were first isolated, and for most of their history constituent of its fine paints and in the preparation of synthetic production of testosterone and progesterone special coatings for paper manufacturers, Joyce bought has been dependent on cholesterol, a sterol of animal not only the process but also parts of the plant and equip origin. Some successful experimentation with vegetable ment, and shipped them to Chicago. sources had been reported from Sweden, and valuable Nobody in the U.$-, not even Glidden, knew much theory developed at Harvard, but Glidden's Dr. Julian, about soybeans at that time. And while Glidden was with his soybeans and his back-room lab, was the first learning, its plant blew to smithereens one fine day in 1935, leveling a city block, killing eleven, and injuring in the U.S. to make a crashing success of vegetablebased hormones and to mass-produce them. (The first forty-five persons. (In processing the soybean, hexane, pound of progesterone Dr. Julian so made was sent off for not far below gasoline in explosive potential, is used as shipment in an armored car; it was valued at $03,500.) the solvent.) But Glidden finally got soya under control, For this work, and for his contribution to the develop built a plant embodying the last word in safety, and suc ment, out of the alpha protein, of a fire-fighting loom to ceeded in extracting a material dubbed "alpha protein," mother gasoline fires on Navy combat ships. Dr. Julian which could do everything casein could do, and a lot more. was awarded the Spingarn Medal in 1947. About this time Mr. Joyce reached into the faculty of De Pauw University and plucked from relative obscu rity a brilliant chemist named Percy Julian. Dr. Julian, a Negro, was so astonished by an offer to head Glidden in a l l y ---and a far cry it is from the manufacture of F hormones--the Glidden Co. is in the metals business. This is another offshoot of the |Munt business. Along with Co.'s soya research that he did not at onoe respond to white lead, a |udnt company needs red lead for protec Joyce's 14,000-a-year proposition. The legend is that tive metal coatings, so, in 1999, Glidden taught the while the young scientist was preparing his acceptance Metals Refining Co. of Hammond, Indians, to cover speech Glidden raised the ante. At any rate, Dr. Julian is well tayond that bracket today, and what he has itself on this requirement. One byproduct of red lead is litharge, an oxide used by rubtar manufacturers and var brought to the Glidden Co. is one of those things you don't try to figure out on a calculating machine. nish makers. Glidden makes, uses, and sells large quanti ties of it. As a proosssor of load, the Hammond plant As expected, the soya operation soon began to sprout naturally became engaged in making type metal and a variety of products in addition to synthetic casein. In Babbitt. In all these operations a lot was learned about isolating the protein, the bean was broken down to oil on the one hand, fiour and meal on the other. Prom the for mer, Glidden was able to draw both edible substances for reducing metals to powder form. Such powdered iron as was used in the U.S. taforc the war came chiefly from Sweden, end when that supply was blocked Glidden look its food business and a variety of useful oils for its paint up production in a serious way. Today jxiwder metallurgy products; soya flour proved to be highly nutritious com is one of the mast tslkcd-ataut developments in CS. in ponent of human food, and the soybean meal was eagerly dustry. As more and more fabricators get the hang of it, sought after hy animal-feed manufacturers. Dr. Julian Glidden is beautifully situated to ride with the rising de gathered a small group of able young scientists around mand for powdered iron, copjicr, and lead. him in his poky little laboratory, and this group developed Such Is the tale--or rather the bald synopsis of the many important improve Ule--that tall, dignified ments in soybean products. One of them, Dr. Gabby, Adrian Joyce |>aliently re counts in explaining the as demonstrated the value of tonishingbreadth and ubiq an animal-growth factor uity of his comjwny. He that the Glidden folk found they could get from "fishstick" water, another odor tells it without faltering for a fact or a figure, without a palpable flicker of emo iferous waste material that fisheries commonly dump tion, and certainly with no intenttoaggrandizehis own out by thethousandsof gal lons every day* When the achievement. There are no dramatic crescendos to the fisheries began to learn its value, Glidden bought in to a fishery in Pascagoula to be assured of supplies. yam, only the day-in, dayoutexcitement of discovery and development, and the fascination of fitting the The most spectacular de pieces together just so, and velopment, certainly, to getting the desired and an come from the Chicago lab oratory was the successful production ofsex hormones --both the male (testoster OPERATION AT .THE CHICAGO SOYBEAN PLANT Tb processing of the soybean is montitlly a sbsmieal operation and at Glidden's Chicago plant comparatively few men are required to watch over the vast network of granaries, VU, pipes, and storage tanks. ticipated results. Glidden's financial o|>or- ations have been orthodox: it's a company built largely ConHnwd jmge 108 166 i GLD 040282 Here to is... America's Greatest Area af inAustriat Opportunity ! let 01 help find iht right tpot hr four pfnnf...riHMVf cberge er UigoflM t You can search the entire United States and you will find no more desirable site for industry than this great section. It is called the Erie Area--6 states that lead in industry and population . . . proof that here it the zone that has everything! You have Coal, Oil, Iron and Steel, Sand, Lime, Salt, Rubber, Gal, Chemicals and other basic materials along with machine tools and parts, and a great annual crop of agricultural products. Serving you, the dependable Erie Railroad covers the area, connects with other railroads north, south and west, and with the famous harbor of New York for export business. Let us help find the right spot for your plant la the Erie Area with its high poten tial for present markets and future growth. Han's how to got action I Send a lift of your requirements in detail end preferred location to Mr. A. B. Johnson, Vice President, Erie Railroad, Room 507, Midland Bldg., Cleveland 15, Ohio. Your letter will be held ia strict confidence. Erie Railroad SERVING THE HEART OF INDUSTRIAL AMERICA 167 GLD 040283 THIS RARE DIAMOND... BitnvUm, pmfaipmimm Cmw v . PU* tiu. No other gem of thU size, quality and perfection it available In America today. Can be porchated at Investment price far below market value. Aidrm hfutria It RICHTER'S MIAMI, FLORIDA SpKisiish in Dirnmnd BtUUt shut lags Picturesque and beautiful are the many touts you can make in historic Quebec--around the romantic Gupl Peninsula-- down the ragged north shots of the St. Lawrence to the Saguenay and Lake Sc. John--up through Mont real to the Laureotians--south to the storied Eastern Townships. And everywhere you will be welcomed with truly Freoch-Canadian hospitality in comfort able inns and hotels. Quebec Ptr Mp pU*ahnpt*r **t*im, trfu entcmmg lit mtutrp^md baduirUl ipptrtmhkt h tm pntimt, writ tk Pn~ vmtmi PwbBtkj Bur***, Psr&mmt BmUhp, QmOw Chjt Csnsd*, tf 49 JbctyMhr Pisu, Nut Ytrk CM} 90. 168 House That Joyce Built out of plowed-back earnings, and though in tight times it has resorted to debentures and other borrowings it has long been free of funded debt and is unencumbered by bank loans. Glidden's earnings are excellent rather than flamboyant: since IPSO it has never known an unprofit* able year, and dividend payments have been continuous since 1038. It was during the depression years, indeed, that Glidden effected much of its expansion in plant and personnel (the soya enterprise was launched in the black est of times), therefore the company was in good condi-' tion to capitalise on national recovery when it came. Since 1040 Glidden has quadrupled sales and advanced its net income from $1,700,000 to $9,000,000 in 1948. Father and son Is it a one-man company? It would pain Adrian Joyce to hear that question answered in the affirmative. After all, he built his own stout corporation on the shells of one-man oompanles, so he knows what happens to them, and he has heirs and associates of whom he is very proud. But It is a one-man company in the sense that, fast as the younger executives of Glidden Co. have run, none has quite caught up with the founder. It is a deep, wide salient he has carved out on the paint-food-chcmicaU front, and, like General Georgie Patton, lie is jiossibly several furlongs ahead of his ground troojis and gasoline supplies. The most that could be immediately asked of any understudy would be to consolidate the elder Joyce's gains, and that's exactly what his ablest and best-trained lieutenant--his forty-nine-year-old son Dwight, the President of Glidden Co.--plans to do. When Adrian Joyce took on the Glidden venture, he brought along the comptroller of Sherwin-Williams, Robert H. Horaburgh, who was ten years Joyce's junior. As Glidden's Vice-President and Treasurer he had the task of putting the company on a sound accounting And budgetary basis. Ultimately, he became Vice Chairman of the Board and to the extent of his considerable jlow ers, Joyce's alter ego. But last year, at sixty-five, Mr. Horsburgh was ready for retirement. In February of this year he died suddenly on his return from a vacation in California. Two other men in the company, besides the younger Joyce, have had an opportunity at least to stand on tbe bridge with Joyce Sr., and view the operation as a whole. One is Vice President William J. O'Brien who, in 1900, was the first research chemist of any account to be hired by Glidden's. He accompanied Adrian Joyce on European jaunts, in the role of technical adviser, a job, as it turned out, which was largely to prove that Joyce's instincts were correct in the first place. At aixty-one he is still panting at the effort to keep pace with his seventyfix-yearold superior. The other jack-of-all-lines execu tive is Vioe President Paul E. Sprague, who was the brightest young man in the old Glidden Varnish Co.'s employ when Joyce took it over in 1917. He has served as general assistant to the Chairman, understands the Joycean principles, and knows his way around the maze better than most Now fifty-seven, he is Vice President in charge of the feed and naval-stores divisions, and is chairman of the research and manufacturing committees. President Dwight P. Joyoe can congratulate himself ConHnmd pope 171 I GLD 040284 House That Joyce Built not only on his choice of a parent but on the fortuitous* know, as rapeh about the customer's problems in chem ness of his birth date: he graduated from the University of Michigan and reported for work precisely at the time istry as the customer does. And so it goes. Glidden met this problem by decentralising to a much Glidden's had completed reorganisation and waa starting its expansion. So he knows the score. He began with the greater degree than most corporations of its size. It has nine regional directors responsible for the Glidden show traditional menial tasks and came up through the paint- in their respective areas. They are, in effect, miniature iin.l-vnrnisli business as laborer, foreman, and production K{H*cmlit before graduating into sales. His father neither comjiany presidents. They have to go to Cleveland for money and for policy decisions involving the expendi Iumpired nor hectored him along the way, and he would ture of important money, and for decisions on labor probably be the choice of any disinterested party for attitudes, national advertising, etc., but they are at President of Glidden. Right now he is concentrating on what might appear, at Brat blush, to have had the least liberty to pursue their own methods in respect to sales, production, organization and research. So long as they are attention up to this point-- the problem of organisation. successful, the details of the operation are their own re Once again, it would seem that the elder Joyce was act sponsibility; they are ac countable to Cleveland only ing with his customary sound sense when he decided to strive for decentralisation and in* flict as little organisation as possible on his growing, vi brant, many-sided company. For all his faithfulness to the principle of functional diversi fication, what he actually had in hand was a collection of > V. J. O'BRIEN r. E. SPRAGUE Od m a chemist with the UA Department of Agriculture, Mr. O'Brien joined Glidden'i in 1M0. Mr. Sprague, also a dwmiit, came to Glidden in ISIS. Both are Vioe Presidents and directors. for their failures. With Adrian Joyce at the helm, this system has worked very well. As the man who t Glidden together, he ows the strength and weak ness of every division, and the dry, factual monthly re ports on the sales, profits, and inventories of each unit com smull businesses of quite dif pose a most sensitive barom ferent design, and he thought it better to organise them eter of the fortunes of the business when regarded with into Glidden divisions o]>erating according to their own his extrasensory perception* But no one man will ever style and initiative rather than require them to goose- again know to much about the Glidden Co. as he now step to the commands of a general staff in Cleveland. knows, and in tacit recognition of this fact the company Every man a president created, a few years ago, a team of executives to oversee the operations of the regional directors. So each of the A quick swing around the Glidden divisions confirms the Glidden divisions now has a Vice President in central wisdom of this policy. There is no "general sales man charge. They are Paul Sprague, naval-stores division; ager" for the Glidden Co., because of the plainly unre John P. Ruth, metals and pigments; Alexander Duncan, lated problems and variegated techniques involved in paint and varnish; Ralph S. Golaeth, soybean products; selling the totally different products. The Glidden paint and L. Y. Pulliam, food division. In addition, Newell salesman, for instance, is a fellow who is out talking and Beatty, who heads the Pacific Coast food division, has wiling color and protection; he is primed on the decor been invested with a vice presidency. ative arts and the science of illumination, and he carries These men are all responsible to President Dwight an elaborate kit to help him explain to the custom Joyce. It is no stiff-necked, military chain of command er what is hidden inside those Glidden paint cans. Hie --Dwight's door is open to them all, and to those below sova-products salesman, of whom there are barely A them-- it is simply a recognition that Glidden has be dozen, is scarcely a salesman at all--he's a trader and come too intricate an instrument to be played by ear. technician. The fortunes of the soybean division depend This delegation and tighter definition of authority and on liow smartly it carries out its hedging operations in responsibility waa largely Dwight Joyce's idea, though the commodity markets, and on the skill of its trader has the enthusiastic approval of the Board Chairman. salesmen, whose problem is not so much finding a market It fits in with Dwight's conception of Glidden's future as it is closing deals by supplying the right product at role. As he sees it, his father's dream of a functionally tlie right price. In the food division, it depends upon diversified company is now an accomplished fact--there whether you are selling edible oils, shortening, marga is no need for further lateral expansion. Glidden's aim rine, biscuit mix, etc., to manufacturers by the hundreds henceforth is fully to exploit its beautifully balanced And thousands of tons, and aretherefore a seriousspecialist business and, by emphasising sales, merchandising, and in food/ormulas.orwhetheryouarehandlingahne of retail advertising, go forward to new highs in volume and spices,sauces, and saladdressing, in which case you haveto profits. So it isn't a one-man company after all. Adrian be hep to all the razzle-dazzle merchandising techniques. Joyce never made anything--including the Glidden Co. The chemicaU-and-pigtnents salesman, contrariwise, is itself--that wasn't capable of developing into some hitting top executives whom slogans won't sell; he has to thing bigger and better, ad infinitum. sku 171 GLD 040285