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FILE NAME Newspaper & Magazine Articles NMA DATE 1948 Nov 13 DOC NMA114 DOCUMENT DESCRIPTION Business Week - Full Issue | i | BOWER BEARINGS ARE There's no better way to measure real bearing value than by the mile the extra miles of trouble performance you receive from Bower bearings There's no better explanation of this greater dependability than improved honed design For example ends and flange surfaces are spherical before the bearing is installed This greatly reduces initial wear and completely eliminates running and costly final adjustment Only Bower bearings offer you the many important advantages of honed design Consequently only Bower bearings offer you precision smoothness dependability and economy in such high degree That's why from every standpoint they're your best bearing buy BOWER ROLLER BEARING COMPANY Detroit 14 Michigan ROLLER BEARINGS Mr ers ete fh eydenfrost Vision is IndispensablteoProgress A growing river of Steel brings you this flood of useful durable products From steelmakers furnaces pour the molten metals for thousands of the things Americans enjoy today bridges to bicycles from ships to scissors from rail- roads to razors from tunnels to tin cans For steel is not just one metal There are 500 different kinds of steel supplied in 100,000 sizes shapes finishes and com- positions Because of the vision and skill with which steelmakers have adapted their products to new uses steel has truly become the backbone of our civilization One important phase of steel's multi- million dollar research program is the use of oxygen in blast and hearth furnaces which promises material in- creases in production Steelmen are also working to find ways of using lower- grade ores New means of casting steel direct from melt into finished passing the ingot stage and blooming millsis another research development which together with other improvements may lead to still greater production efficiency in new and existing steel manufacturing facilities From raw made tougher or more pliable in new and old forms with new properties and qualities come the products of tomorrow Research men in steel companies are working alone working together and working with manufac- turers to develop the specialized metals which these new products require Where else but in America are men as free to work out new ideas . to create new products to participate in the ownership and management of business Where else are so many people so profitably employed Where else is the standard of living for the average man so high Vision is indispensable to progress -and progress in turn demands freedom BANKERS TRUST COMPANY NEW YORK MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION EEE New ships for ocean highways ... powered by C The first Victory Ship came home the other day under a new flag - carrying Egyptian cargo to the shores from which it had sailed a few short years ago with fighting men and supplies Its return marked the peacetime fulfillment of a distinguished war record - a record shared by much of the huge E powered armada of war days which now sails the water highways of the world in peaceful trade That this record was impressive to shipowners and builders is attested by the importance and variety of new con- struction that has gone down the ways equipped with E Marine Boilers new ships that range from luxury liners to going dredges from ore carriers T with the highest pressure marine boilers ever applied commercially - to various types of cargo vessels the latter including the largest order ever placed in an American shipyard by a foreign government To service this vast E equipped fleet Combustion Engineering maintains experienced engineers and stocks of spare parts strategically located to serve the Atlantic and Pacific seaboards the Gulf ports and the Great Lakes region You perhaps associate Combustion Engineering mainly with steam generation for industrial needs ashore yet wherever ships ply the seas you will find E Boilers setting high standards of reliability and economy standards symbolized by the familiar C Flame 268 COMBUSTION ENGINEERING 200 MADISON AVE NEW YORK 16 N. Y. C Products include all types of Boilers Furnaces Pulverized Fuel Systems Stokers Superheaters Economizers Air Heaters Also Pressure Vessels Sewage Chemical Recovery Equipment Incineration Flash Drying Systems Domestic Water Heaters rd Calculator Remembers Remembers SPEEDS AND SIMPLIFIES FIGURING . Almost all calculating consists of obtaining a series of intermediate answers sums products results that are added or sub- tracted in succession until the final answer is reached These exclusive remembering dials of the new Burroughs store these intermediate answers automatically and show the accumulated results Thus the intermediate answers and the final answer are arrived at directly the usual wasting rehandling of figures See this Burroughs Calculator in action Find out how it is saving saving 15 to 40 in calculating time for thousands of con- cerns Call your nearest Burroughs office for a demonstration BURROUGHS ADDING MACHINE COMPANY DETROIT 32 MICHIGAN These dials show the results of indi- vidual computations addition subtraction multiplication division As intermediate answers are obtained they can be added to or subtracted from the amount in the rear dials instantly by depressing a single key The two sets of dials work together simplify to a new degree to calculating to make it easier and faster and less costly BURROUGHS CALCULATORS _ aa fi, BUSINESS WEEK FOOTBALL is more than a sport It is big business and the accuracy -control and speed of a good halfback result in profits as well as touchdowns In your business photography can provide the accuracy control and speed which result in profitable operations It guarantees accuracy in creating and copying your business recordIst gives you more exact control over your billing and accounting procedures It provides a fast and simple way to help you build your sales Only Remington Rand offers you all three methods of business photography photocopying microfilming and contact printing plus more than 70 years experience in business systems Our representative therefore can best help you select the photographic method which will do the most effective job for you Call him for an unbiased survey of your records without obligation Or we will be glad to send you case histories showing how other companies stepped up their efficiency by using records Write to Room 195 Photo Records Division 315 Fourth Avenue New York 10 N. EDITOR Ralph Smith CUTIVE EDITOR Kenneth Kramer MANAGING EDITOR Ecgar A Grunwald ASST MANAGING EDITOR Harry Lee Waddell ASSOCIATE MANAGING EDITOR hobert B. Colborn News Editors Cora Carter Richard M. Machol , Carl Rieser Guy Shipler J. illustration JacquJaeclqyunelyn Judge C. Peter Day DEPARTMENT EDITORS Business Outlook Clark R. Pace Business Policy John L Cubbs mance William McKee Gillingham S. * Foreign Howard Whidden Labor Merlyn . Pitzele Jos Gerardi J. Cogan Arthur L. Law Prodition Moore ph A. Prodition John " Marketing Frank Sasso * AgricAulgturreiculture EDITORIAL ASSISTANTS J. P. Chamberlain Jane E Clark Jean Drummond Mary Flaherty Frank J. Logarty John Hartshorne John Hoff- man Nathaniel McKitterick James C. Nelson Jr. Asst Marketing Editor Arthur Richter Edward T. Townsend Asst Labor Edito Doris I White Statistician , Gertrude Charloff Librarian Mildred L. Washburn ECONOMICS STAFF Dexter M Keezer Sanford S Parker Butler Peter French Robert P. Ulin William F.F. DOMESTIC NEWS SERVICE Chicago Bureau James M. Sutherland Mary B. Stephenson Cleveland Bureau Robert E. Cochran Detroit Bureau Stanley H. Biams San Francisco Bu- 1ean Richard Lamb Mardell Burns Washington Bureau George Doving Glen Bayless Thomas A. Falco Carter Field Josepa Gambatese Seabrook Hull Louise Jacobson Sam Justice Paul Leach J. Donald O. Loomis Gladys Montgomery Seymour Nagan Caroline Robertson Vincent Smith William B. Whichard Jr. . Conrespondents Akron Albuquerque Atlanta Baltimore Bangor Birmingham Boston Buffalo Charlotte Cincinnati Dallas Denver Des Moines Evansville Houston Indianapolis Kansas City Knoxville Los An- geles Louisville Madison Memphis Miami Minneapo lis New Orleans Oklahoma City Omaha Philadelphia Pittsburgh Providence Richmond Rochester Salt Lake City Seattle St Louis Topeka Tucson Wichita Wil- mington Fairbanks Alaska San Juan Honolulu FOREIGN NEWS SERVICE Director Brewster John F. Chapman Paris London Frederick Randle Elliott Paris Boyd France Melbourne BogoLtaa Johannesburg Berlin John Christie Moscow Andrew Steiger Tokyo Alpheus Jessup Bombay Joseph Van Denburg Mel bourne Herbert Leopold Rio de Janeiro Henry Bagley Buenos Anes John Wilhelm 6 Cor- respondents Amsterdam Bangkok Batavia Cairo Caracas Copenhagen Geneva Milan Paz Lima Manili Mexico City Montevideo Ottawa Prague Santiago Shanghai FOR GREATER BUSINESS EFFICIENCY PHOTOGRAPHY Remington Rand Morticians Supply Co. Dallas Tex uses Portagraph photo prints for fast preparation of its own catalogs for use by its salesmen Banner Laundry AlexandriVaa uses record microfilm to assure more exact control over its billing and accounting procedures Marsh Steel Co. Kansas City Mo. makes weekly Dexigraph photocopies of Kardex stock record slides to keep salesmen date on inventory and help them build sales PUBLISHER Paul Montgomery ADVERTISING MANAGER H. Sturm a BUSINESS WEEK . NOVEMBER 13 + NUMBER 1002 Magazine of Magazine Publishing with which are co obined The Annalist and the Business Published Published weekly by McGraw Founder 1860-1198640-81948 Company In Janes It McGraw publisher publisher * Publication Office 99-129 North Broadway Albany N on Form publisher President Eugene Postmaster If undeliverable notify President 3578 ' New York Editora and Executive Offices 1 nes President McGraw Treasurer Eugene McGraw President and Treasurer Bond Nelson Executive Assistant for Publications President Bond 42nd St Curtis W. Duffield Duector , of Advertising Joseph A Gerardi Secretary subscriptions to J. I. subscriptions Address correspondence regarding West Blackburn ' Di ecer of Cuculation Business Week 99- 42nd St. 129 N Broadway address New York 18 Alloy Subscriptions to Albany 1 change 01 ten days for change of address address solicited only only Business Week aindustryre solicitedPosition fro industry orders and management In business subscription subscription and company connection must be indicated on United States Subscription United countries Single copies 27 Subscription rates600 a year Canada 7.00 a possessions countries Printed countries 10 a cal All other American 20 a year Post at the Printed Entered as second class matter Dec. 3 1879 , Office at Albany NY, under Act of Hill Publishing McGrHailwl 111 K I Copyright Copyright 1918 by IncA. ll Rights Rescised BUSINESS WEEK Nov.Nov. 13 1948 Good Service Depends on Good Earnings There is still much to be done to the Bell System encourages them can only result in the long run in : : make the Bell System big enough ; to invest their savings in the deterioration of a vital service for the nation's needs a lot of money It will take business Reasonable earnings will con- The Bell System does not ask tha itt allowed to earn one penny This money cannot come out of tinue to attract the additional more than is required to do the job the rates you pay for service It capital needed And that in turn It asks only what most people - must come from investors will provide the new and improved and most regulatory bodies agree _ They are the hundreds of thou- facilities that will benefit every- is fair and just . . . a reasonable re- Sent = sands of everyday people in all body who uses the telephone turn to the many men and women . walks of life whose confidence in Earnings that are too low are not all over America whose savings s_. the integrity and earning of in the best interests of anybody and have built the telephone business BELL TELEPHONE SYSTEM TAKES A DEEP DRAW TO SAVE YOU MONEY When you need a tough drawing material for limited quantities Micarta Deep inch draws like the jobs Micarta one illustrated below are everyday no ordinary plastic ... is to- day's tough versatile industrial laminate It has proved itself in thousands of industrial applications Besides formability Micarta has other character- istics which make it the No. 1 industrial laminate HIGH COMPRESSIVE STRENGTH is half the weight of aluminum for the same comprehensive strength HIGH DIELECTRIC equivalent to mica one of the best insulators HIGH HEAT RESISTANCE withstands heat up to 230 Below zero it gains in strength without brittleness HIGH RESISTANCE TO ACIDS ALKALIES % solution HIGH WORKABILITY can drill tap mill die punch saw like a metal Micarta is available molded formed or completely fabricated mass production quantities Remember Micarta for a tough call your Westinghouse office for a Micarta Specialist Westinghouse Electric Corporation P. O. Box 868 Pittsburgh 30 Penna 06402 Data Send for this new Micarta Book today Ask for 3184 BUSINESS OUTLOOK _ BUSINESS WEEK NOVEMBER 13 1948 PAGE 9 That goods recession everybody is talking about just doesn't exist on an over basis at least To be sure there are lines that are down from their postwar peak manufacturers of most nondurables are doing all right But Their sales hit a summer low of billion in July But even that was a billion dollars above the same 1947 month They rose to billion in August only to be eclipsed by billion in September That September figure by the way tops all previous records This is the more remarkable because the month has only 30 days with one holiday e . Nobody is surprised of course when durable goods industries set new records Sales of goods manufacturers in September despite the short month topped the earlier peacetime high of 7,364,000,000 set in March Dept. of Commerce preliminary figures put September at 7,400 000,000 October is a cinch to beat that e Records are falling right and left in the steel industry ... -. . This week we will produce more steel than in any other week in our _ history or postwar Operations are at 99.4 means an estimated 1,791,70 1,791,700 1,791,700 tons The highest previous tonnage was 1,791,300 It in April 1944 the wartime peak of capacity : : came the last ane : That week - October as expected 16'48 set a peacetime mark Its tonnage was 7,973,416 according to the American Iron & Steel Institute But it did more than exceed the postwar high of 7,571,652 May it beat the biggest wartime month by nearly 150,000 tons . e tons set - -. last peak Electric power output now is moving up toward its seasonal always comes just before Christmas which ' This Output now is more than billion kwh weekly gain year totals of about million kwh is a over e Construction remains at a very high level There's little indication of that drop so many people are predicting for home building next year Value of all construction work put in place during October is estimated by the Bureau of Labor Statistics at 1,704,000,000 That's down from 1,790,000,000 in August and 1,783,000,000 in September Nevertheless October ran a good million ahead of last year And the decline this year is hardly as great as the normal seasonal dip For the 10 months ended Oct. 31 value of all construction adds up to billion against billion last year That's a 30 gain Employment continues to reflect the general vigor of the economy Total employment declined only seasonally between September and October remaining above million Nonagricultural jobs were 51- million Unemployment shrank to less than 1,650,000 That is close to an irreducible minimum about matching last November and December e More women have to be lured into the labor force if there is to be BUSINESS OUTLOOK Continued BUSINESS WEEK NOVEMBER 13 1948 any slack Company after company is coming to this point of view and trying to do something about it Yet the number of women employed in nonagricultural lines has hung right around million for a whole year Apparently the need for multiple incomes if families are to meet the rising cost of living hasn't yet become a compelling force * You hear about a lot of lines that are slumping yet most look bad only by comparison with postwar peaks Take jewelry for example Volume is down to be sure sale dollar volume so far this year is about % ahead of last But wholeRetail trade was running about even with inventories % higher But note this Dollar turnover still is about three times prewar e Seasonal expansion in cotton consumption hasn't been as robust as in 1946 and 1947. In fact use of the fiber in August September and October was equivalent to an annual rate of only about million bales Consumption in the cotton year ended last July was 9,350,000 bales This week's estimate of the 1948 cotton harvest is 15,166,000 bales The carryover of old cotton adds million bales to the supply Thus the 1948-49 supply situation will be very comfortable even if - the rate of domestic use picks up to million bales or so Exports probably : won't total more than million to million bales for the season PAGE 10 -~ --- Lower operating rates and higher wages are squeezing those lush profits cotton mills were posting last year and early in 1948 The Cotton Textile Institute this week pointed out that direct -- payments in the first half of 1948 took 23.4 out of the sales dollar Dis up from 20.4 for the full year 1947 and highest since 1939 wage That -: And whether typical or not here are quarterly earnings figures of one cotton textile company before special reserves in all cases M. Lowenstein & Sons Inc. earned 6.02 a share for the first 1948 ' quarter net was 4.36 a share in the second for the third 2.02 The third quarter in fact was down about 30 from a year earlier e Synthetic glycerin seems pretty sure to pull down the price of the natural product Here at least is the experience of one company It got its first shipment of Shell's new synthetic not long ago price was substantially less than 30 a lb. in tank cars At the same this company was paying in the neighborhood of 40 for natural Warning to purchasing agents Watch your glycerin inventories The time fi An interesting fight still goes on over the domestic price of crude oil But don't lose sight entirely of world petroleum economics At home the story still is this down from its buying price of 3 a as firmly refuse to move their posted Phillips Petroleum refuses to bbl Other major companies price up from 2.65 back quite Meanwhile an authority on international phases of the oil industry declares crude from the Middle East can be laid down at New York for 1.75 Output in the Middle East significantly Petroleum News notes that Aramco produced month keeps on rising 500,000 bbl one , National day last Contents copyrighted under the general copyright on the Nov. 13 1948 Business Week 330 W. 42nd St New York N. Y. we MANY TESTS BEYOND CODE REQUIREMENTS are a regular part of A. O. Smith vessel production control procedures Here Bill Poehlman a year veteran in charge of spectroscopy and Ray research checks the deposited weld metal composition in a vessel test plate by means of an A. O. developed microspectrographic technique New York 17+ Philadelphia 5 Pittsburgh Atlant3a Chicago Tulsa 3 Houston 2 + Seattle T Los Angeles 14 International Division A. O. SMITH TAKES THE GUESS WORK OUT OF FIELD ASSEMBLY Railroad shipping restrictions made it necessary to field semble this 11ft dia x 116 ft long SMITHlined Fractionating Tower To insure ease of assembly in the field it was first manufactured and completely assembled in the A. O. Smith Milwaukee Plant then hydrostatically tested cut in two at the center girth seam rescarfed for welding in the field and shipped assembly costs were cut to a minimum with only one girth seam to be welded LEFT tower ready for the hydrostatic test BELOW- of the vessel ready for shipment 4 IN STOCKHOLM SWEDEN they know about the famous SMITHway welded Layer vessel construction Here is one of two SMITHway Inconel Layer Autoclaves for fatty acid service with a shell thickness of 5 inches and an operating pressure of over 5,000 psi This vessel was shipped direct by going ship from Mil- waukee to Stockholm NEW BULLETINS Write the nearest A. O. Smith office listed above for these new Bulletins Field Assembly of Pressure Vessels 46 -SMITHway Vessels Alloy Lined Clad and Lined hs Barat ence ST tr NEG US US PAT OFF THE NAME TO WATCH IN CHEMICALS & ag CHEMISTRY PUTS IN WHAT NATURE LEFT OUT eo Natural gas provides an abundance of efficient economic fuel to the nation but a synthetic gassy odor makes its widespread use safe for cooking heating and processing j Oronite research in cooperation with the Natural Gas industry developed Calodorant to supply this odor which gives the warning of escaping gas With such protection natural gas is safely used by millions of people A typical example of how Oronite research is helping industry solve difficult and important problems CORONITE CHEMICAL COMPANY 38 Sansome St. San Francisco 4 California 30 Rockefeller Plaza New York 20 N. Standard Oil Bldg Los Angeles 15 California 600 S. Michigan Chicago 5 Illinois REG.UP. ATSOF.F FIGURES OF THE WEEK 1923-25 1923-25 1923-25 100 oe ees / / / / 1923-25-100- 1200 190 140 Et tia br 1945 d eripilypri -1946 -1946 and SEE WEEKLY : N Leteibipnry 1947 Leerrl ype y 1948 180 | 170 pithiibirtib tibia t 160 , MAMf A 1948 Latest Week Preceding Week Business Week Index above . . . . . 198.7 +198.7 PRODUCTION Steel ingot operations % of capacity 0.0.0... ccc ce cece ee enecee se ceeee Production of automobiles and tru00c .cc ccck cece ces rsccees - Engineering const awards Eng News week daily av in thousands Electric power output million kilowatt Crude oil daily average 1,000 bbls 2.2... ee cee ences cece - tees Bituminous coal daily average 1,000 tons cecetees eneeeee 99.4 117,225 24,136 5,564 - 5,627 2,042 98.9 116,968 25,546 .. 5,555 5,604 +2,007 Month Ago 195.4 Year Ago 189.8 98.5 96.9 119,398 106,651 23,701 20,895 5,482 - -5,535 5,057 5,240 1,941 2,156 1941 Average 162.2 97.3 98,236- 19,433 - 3,130 3,842 1,685 TRADE Miscellaneous and L.C.L. carloadings daily average 1,000 cars All other carloadings daily average 1,000 cars sevcene Money in circulation millions 0.0.00... 000 ccc cece ee tree e ee eeeeees Department store sales change from same week of preceding year Business failures Dun & Bradstreet number .- 90 - 66 28,254 + 104 - 90 65 .. 88 63 -.92 65 - 28,091 12 * 104 28,202 ~ None 107 28,635 13 -- - 72 9,613 17 228- _ PRICES Average for the week . 9 Cost of Living U. S. Bureau of Labor Statistics 1935-39 ===== 100 174.5 Spot commodity index Moody's Dec. 31 1931 ... 174.5 Industrial raw materials U. S. Bureau of Labor Statistics Aug. 1939 100 ..... 401.3 277.9 + ~ seven 174.5 400.7 406.1 276.5 275.0 163.8 447.0 290.6 1939 100 Domestic farm products U. S. Bureau of Labor Statistics Aug. oe Finished steel composite Steel ton Le waee 320.4 95.05 322.3 95.05 323.9 95.05 392.4 76.09 Scrap steel composite Iron Age ton 2... 0. cece cee rece teen een eens 43.00 43.16 43.16 41.50 Copper electrolytic Connecticut Valley lb. Wheat Kansas City bu 2.0.2.0... cece cee c cece cence cen eueee sees 23.500 2.24 23.500 . 23.500 2.25 2.20 21.500 2.93 Sugar raw delivered New York lb. 0.00. 0ccccescecenveeaccvcecs Cotton middling ten designated markets lb. seonee oe Wool tops New York lb 0.0.0 c ccc cece cere nce eececeaceeectenens Rubber ribbed smoked sheets New York lb. 5.68 31.23 1.667 20.72 5.68 30.93 = 1.609 21.35 5.61 31.25 = 1.546 22.44 6.32 32.75 = 1.863 23.88 FINANCE 90 stocks price index Standard & Poor's Corp. Medium grade corporate bond yield 30 Baa issues Moody's High grade corporate bond yield 30 Aaa issues Moody's " - Call loans renewal rate N. Y. Stock Exchange daily average . Prime commercial paper to months N. Y. City prevailing rate 122.6 3.53 2.86 1-13 1-13 130.4 3.53 2.87 1-11 13 126.6 3.49 2.83 1-11 11-13 121.7 3.42 2.74 11-11 1-11 105.2198.1 138.5 146.6- 56.73 19.48 12.022 0.99 3.38 13.94 $ 1.281 22.16 78.0 4.33 2.77 1.00 1- BANKING Millions of dollars Demand deposits adjusted reporting member banks .. 00000 Total loans and investments reporting member banks Commercial and agricultural loans reporting member banks Securities loans reporting member banks .. mem. ber member b. anks .. U. gov't and gov't guaranteed obligations held reporting member banks .. 0.0 s eee Other securities held reporting member banks eeceenes Excess reserves all member banks Total federal reserve credit outstanding Preliminary * Preliminary week ended November 6th ... 0... eee eee cece weer e ener Revised Estimate 46,607 62,229 15,415 1,357 33,268 4,234 880 23,729 +47,422 +62,441 +15,410 1,346 +33,526 +4,280 880 23,797 46,441 62,174 15,311 1,393 33,235 4,408 510 23,707 47,452 64,910 13,971 1,821 37,982 4,234 952 22,640 1127,777 32,309 +16,963 1,038 15,999 4,303 5,290 2,265 Date for Latest Week on each series on request BW Jul.12'47 p16 * BUSINESS WEEK Nov. 13 1948 13 FABRICATION In the picture to the right you see one of the plate girder sections being fabricated weight 30 tons in the Clinton Bridge Works Division of Allied Fabricating crews there are using the accumulated experience of years in bridge building They build extra strength into critical areas rivet or weld each member with precision And in true Allied fashion ship the entire bridge to the erection site on the scheduled date ERECTION In the lower picture Allied erecting crews the other half of the good team are at the site to carry the ball when fabricated sections arrive Theirs is no temporary con- tribution to bridge growth Training in modern techniques enables them to button up structurals quickly for life Now the great bridge in Pendleton County Kentucky is about to reach full growth Allied fabricating and erecting crews have brought up this handsome structure with their usual patient skill Here again they have erected the structure from the water level using floating equipment to place structural members in position over the river Loaded barges convey parts quickly from place to place saving precious building hours If you have a bridge of any length to build we'd like to estimate on your plans and specifications Send all inquiries to CLINTON BRIDGE WORKS ' Clinton Iowa GAGE STRUCTURAL STEEL CO - Chicago 8 Illinois . @ MIDLAND STRUCTURAL STEEL CO ; ye, Cicero 50 Illinois WASHINGTON OUTLOOK FIRST MEASURE of Truman's influence over the next Congress What brand of Democrat is appointed to the House rules committee This committee is the traffic cop for all House legislation It determines what bills are voted on by the House what bills are sidetracked Five Democratic vacancies will be filled on this man committee next January than any time since 1931 Unless all five are good Truman men Truman's new New Deal will be stymied before it gets started You'll recall that Truman had his troubles when he had a Democratic Congress before then the rules committee was run by unfriendly southern Democrats with Republican help The 77 new Democrats who came in with Truman will demand that the committee next year be a friendly traffic that the new members _ be picked from the northern liberal bloc But southern old guarders like Gene Cox and . Howard Smith ran the committee before and will still be members be jockeying for at least one minded committeeman then they .,. and the Republican members could check Truman when they wanted to As speaker again New Dealer Sam Rayburn 7 - will be the man who has most to say about who - goes on the committee He'll try of course to name five Democrats who see things Truman's way Final decision rests with the Democratic House caucus s BUSINESS rather than government will become the target of congressional investigations next year _ Particularly the Ferguson Senate committee investigating government contracts will shift its sights Under Democrat O'Conor this descendant of the wartime Truman committee will again ride herd on defense contractors heretofor Ferguson spent his time sniping at government bureaus Also Democrats won't be spying on Demo- crats That means that you won't be seeing any more of the watchdog committees the Republi- _ cans set up to check on Democratic administrators The Hartley watchdog - dide ie with the Taft Hartley act committee will BUSINESS WEEK Nov. 13 1948 Bridges ECA committee explicitly set up because of the White House party division will fall to McKellar who will keep it going for the patronage it provides e Capehart's project for legalizing basing pricing will fail His committee's hearings will run their course Capehart will turn in a report to the new Democratic majority And that will be the end of that Democrats like O'Mahoney of course be tempted to turn the committee into a big inquiry into concentration of industry TNEC of the 30s will new the e NEXT YEAR'S LABOR LAW will be the Wag- ner plus The technique will be to add provisions onto the 1935 law rather than subtract from Hart- fulfills leyleter It's easier that besides it the letter of the Democraticplatform Here is how you do it Writea new law which 1 flatly repeals Hartley but 2 re- enacts those restrictionisn Taft Hartleywhich Tru- man himself thinks are all right a e - C.1.0 and A.F.L. are working up separate drafts of what they would be willing to take They'll thrash out any differences with their friend Labor draft of Secretary Tobin He will write the final the bill for Truman : You can depend on this Truman isn't going to give up the president's right to enjoin national emergency strikes coal transportation utilities That means Lewis next July So Tobin's bill will contain something like the present Hartley injunction power for such cases e Other injunctions aimed at unions are out But there will be some curbs on jurisdictional strikes and secondary boycotts The new bill won't ban the closed shop that will be back on the bargaining table So will hiring halls The printers win their fight Elections The Wagner act has only one kind -to choose a bargaining agent And that's all there will be in the new law On Communist affidavits there won't be anything at all else management will have to sign up too Odds are there won't be any affi- 15 FLYING PLANES DEPEND ON G SILICONES Silicones SSiliicolnesicones can help help you you Are you facing a production or improvement problem Can it be solved by the use of chemically inert high- and temperature materials Then we suggest you discover how General Electric silicones can help you Not long ago G silicones began playing important parts in airplane manufacturing G silicone rubber is proving to be an excellent gasket material for new jet engines These silicone rubber gaskets retain their resiliency and sealing power under the extremes of heat and cold encountered in stratospheric flying insulated wiring furnishes exceptional resistance to heat for Uncle Sam's fighting planes And several promising new uses are being investigated for G silicones in the aircraft industry Watch for G Silicone Resin Finishes Have you heard about General Electric silicone resins When available for synthetic enamels for application on kitchen ranges refrigerators automobiles and other products silicone resins will make possible a finish with characteristics of durability and sunfastness never before achieved WANT TO KNOW MORE ABOUT G SILICONES Sorry we haven't space for the complete G silicone story here But we'll be glad to go into greater detail if you'll just contact us Chemical Department General Electric Company Pittsfield Massachusetts Please address inquiries about E silicones to Chemicals Division Chemical Department General Electric Company Schenectady 5 N. GENERA&L ELECTRIC CD48 BUSINESS WEEK NUMBER 1002 NOVEMBER 13 1948 Chapman Brannan Backed by Labor New Dealers Truman went to the people for his mandate That you ~ _ The Meaning of Truman's New Deal Businessmen can brace themselves for at least four years of a revived New Deal What kind of New Deal will it be Since 1933 there have been many kinds of New Deals to serve as patterns After the NRA came the Wagner Social Security New Deal and the busting New Deal The 1949 New Deal won't be a copy of any of these But its underlying char- acteristics are fairly clear It assumes that government should keep its fingers in the running of the economy It bases itself on the people's desire for security against economic hazards It expects to give labor a bigger voice in its actions This New Deal will develop slowly The President isn't planning to start any dramatic 100 Days next January So at first his New Deal will sound like ay warm of old Truman messages That's because right now there isn't body Washington else in draw on For months noWashington has been doing doing thinking much fresh This week Truman sent a memo to all branches of the Administration asking them to come up with their ideas for 7 legislation You can expect the answers to be showing up in bills all through the first session of Congress It would be a mis- take to assume that the new New Deal will look like Truman's past perform- ance It's a New President The U.S. is getting a new President Truman No longer can the man in the White House be regarded as a nonentity put there by fate this time the voters elected him That means that for the first time Harry Truman has a ahead signal Harry Truman is in a stronger position today politically than almost any Presi dent in history Never has one Presi- dent owed so little to so many To almost everyone in the Democratic Party Truman looked like a dead duck from the start of his campaign Because what support they gave him was small and grudging the political debts which Truman must pay can be counted al- most one hand a What does that mean in terms of the new Administration It's a New Group of Advisers A lot of New Deal fices are sure to show up among Truman's advisers Many New Dealers have already got their heads under the tent more may crowd in later For example Roosevelt's longtime close friend Jonathan Daniels is at Key West with Truman This is significant because Key West is not all vacation important issues like tax policy may be settled there Other New Dealers al- most sure to buy way tickets for Washington include Housing administrator Wilson Wyatt Ed Pritchard of Kentucky OPA Boss Paul Porter Although Truman's Battery D boys are the only ones who really stuck close by the boss the New Dealers aren't likely to bow to their wishes In fact key men in the New Deal Sam Rayburn and Alben Barkley in a 19 NEW CABINET Truman's New Deal will bring a reshuffle Some cabinet members will leave because they wanted to retire others because they did not campaign Into the places of all will go strong New Dealers Main jobs to be filled seem likely to be the posts of Defense Secretary Interior Secretary and Secretary of State But at this stage of the game only one man seems assured of a job He is Mon Wallgren defeated governor of Washington OUT Forrestal Marshall IN Johnson Wallgren Harriman Douglas good spotto put the pressure on Tru- man members in the old 80th Congress 130 won't be back The net Democratic gain makes this division of the House 263 It's a New Cabinet - Democrats1 American Labor Party 171 Republicans Moreover every new --- Truman will do some reshuffling Senator is New Dealish replacing in his official family Three members of the old cabinet seem sure to go the start Secretary State George Marshall Defense Secretary James ForrestIanl- terior Secretary Julius A. Krug Who will fill these posts The list of potential Secretaries of State is long Chief Justice Vinson and William A. Harriman are the best bets now but the field is still wide open For Defense Secretary the leader right now is former Undersecretary of War Louis Johnson Nearest to him in the race is the President's old crony Gov. Mon C. Wallgren of Washington Oscar Chapman seems pretty well on the way to succeeding his boss as Interior Secretary Lurking in the back- ground here too is Wallgren He'll get Interior if no other job can be found Otherwise it goes to Chapman Cabinet members sure to stay Treasury Secretary John W. Snyder but he may have less influence Labor Secre- tary Maurice J. Tobin Commerce Secretary Sawyer Agricultural Secretary Brannan Attorney General Tom Clark It's a New Congress At the other end of Pennsylvania Ave. will be the most New Dealish Congress since 1936-38 Of the 435 " G.O.P. old guarders - Friendly people will be running the 81st Congress and MacCormack in the House Barkley and Scott Lucas in the Senate Yet the 81st won't be completely ~ obedient the President must be skillful if he is to get all he can out of it He made a solid first step in inviting Sam Rayburn to join him and Barkley at Key West Rayburn in a sense is the key to the success of the new New Deal For one thing he can gain thumb control over the House rules committee by out- For Business Prosperity How good can business be under this kind of government In the perspective of this week it looks as if it could be about this good A continued high level of business activity e A lower level of profits Business taxes can't go anywhere but up and heavy industries particularly are likely to find their costs rising faster than their prices Even so profits under the New Deal may easily be at a level which would look good any year but this one That's about the conclusion the busi- ness community has to come to The 20 flanking southerners like Gene Cox and Howard J. Smith page 15 For another Rayburn can build a big solid Ad- ministration following by developing the freshmen bloc of laborites and New Dealers elected by Truman The Republicans can no longer count on much help from the southern Bourbons in Congress Since they failed to beat Truman they are now ready to scramble back home to the party Tru- man is ready to clinch their loyalty by laying off his civil rights program for a while This and broader worker coverage under Wage are the only really important conflicts between North and South Truman's strategy will be to get things like aid to education soil conser- vation power development through first These are things that the South is New Dealish about Profits stock market though sags under the ex- pected blow to profits via taxes controls or both Plenty of Business Truman's Just about every part of Truman's domestic program is calculated to in- or con- crease government spending educa- sumer buying power alone- The social welfare programs social security health insurance add several billions tion housing year to the federal budget over the next about or so There's more uncertainty BUSINESS WEEK Nov. 13 1948 foreignforeign and military spending it surely won't get smaller A labor slant in the government points to ever rising wages and fatter with pocketbooks It starts a now tain fourth round of pay increases and will be stopped by higher mini- wages Add that a guarantee that farm income will not be allowed to drop too far below its present high level Biggest question WhatWhat will business- men decide to do about buying more plant and equipment There's been a psychological shock But most expansion decisions have been enforced despite high and rising costs by imperative de- of mand Despite this torrent . busi- money busi- nessmen may not get to keep as much of it as they are accustomed to Rising wages mean rising costs And one way or another most welfare pro- grams increase business costs Prices meanwhile will get stickier Basic industries like steel are likely to find their prices controlled directly And all major businesses will have to bear in mind the reactions of a sus- picious government when they fiddle with their prices Even at the con- sumer level any upsurge of prices would bring the threat of price controls Early election talk of an excess profits tax is dying away But there's a good chance of an increase in corporation tax rates and maybe in upperlevel personal income taxes These Are the Great Issues Like any government coming to power today the new Truman New Deal will have to be built around the central problems of foreign relations and inHation To this the Democratic administration adds another government regulation and guidance of industry A Freer Swing Abroad In its formal objectives the Truman foreign policy will be more of the same -strengthened by riddance of many Congressional isolationists It will still be based on maintenance of moderate military strength containment of Russia economic upbuilding of Europe But you can expect a difference in tone a more swinging dramatic approach Truman has chafed under the professional rigidity of U.S. for- eign policy Now he will revive the am- ateur touch both its virtues and defects At the workaday level these are the things Truman will be asking get- : from Congress next year W hatever money ECA feels it needs Approval of a North Atlantic security pact joining U.S. and Canada with Britain France and the Benelux coun- tries Something like billion for military lease to Europe > > More aid for China not much more Add one big change resulting from the election revival of the cutting reciprocal trade O. which was withering away Caution on Inflation Truman was a hellraiser on inflation in the days when he was for all practical purposes in the opposition He wanted to throw the book at the high cost of living Now he'll be more cau- tious The economic team in Washington still sees upward pressure in the economy -but less of it than in the past initially at Truman will rely more on moderate fiscal measures than on the direct controls he liked to talk about earlier As the Washington planners shaped their election ideas this is what emerged Extension of consumer credit controls beyond next July S ome sort of special reserve plan to sterilize bank holdings of government bonds and enable the Federal Reserve to keep more control over bank credit e Another % increase in regular bank . reserves eo No excess profits tax looks likely Until recently this was a darling of the Washington inflation Now they doubt that really want it It might prove too deflationary And anyway what would you use for a base year Higher taxes to put a little -_ NEW CONGRESS ~ . The 81st Congress will be solidly ~~ in the hands of the New Dealers Its key figures are Lucas in the Senate and Rayburn in the House --both strong Truman men Sen- iority will keep New Dealers out of some committee chairmanships But on nearly every committee they will have enough members to offset the shenanigans of Republicans and conservative Democrats Thus the new Congress is essentially a _ New Deal Congress Lucas Rayburn Sabath George BUSINESS WEEK Nov. 13 1948 Doughton Thomas Lesinski 21 NEW FACES like these freshman Senators will be pulled together into a strong bloc to support New Deal legislation proposed by Truman Kefauver Tenn Kerr Okla Humphrey Minn Johnson Texas Douglas III spending the would be wel- nomic choke shaping up it won't effects of a revival of confidence and en- squeeze on Democratic economists hesitate to do something about it For thusiasm among the line regulatory comed by many realize tax boost would be early next year this approach to the commissions and agencies But they a unless needed to situation means The Federal Trade Commission at shadows politically impossible prevent an actual budget deficit And Allocations of scarce industrial comother which has been shivering since it saw Congress reaction to the way tax collections are going now modities certainly some ever is * it looks as if even a budget beefed up a metals very likely perhaps some indus- the basing decision now raring couple billions by the Truman welfare trial and utility equipment back for a vigorous policing job on would balance out at present e Housing controls Priorities on build- business program . ing materials will be aimed as in the The Civil Aeronautics Board can tax rates Any real set in military spending Wyatt days at encouraging cheap expensive construc- move ahead freely with its plans to revamp the route and corporate structure next year could upset this balance Tru- houses discouraging of the airlines man won't boost war far unless tion ~ - relations with Russia get a lot worse If A possibility Some form of subsidy It's in this sort of spirit seeping down into bureau and office that you he does you will see first an increase or rapid amortization for expanded ca- every feel the effects of Truman's in corporate income tax rates Then if pacity in critical industries like steel will really that's not enough an increase in per- Add to these special measures the election victory aod sonal income tax rates this will be coupled with an increase in exemptions The New Deals Special Interests to throw the extra load into the upper : .brackets : : A military set would also bring direct price controls They would come - in the basic heavy industries The Hand of Government No price controls doesn't mean no controls The biggest change that the businessman will notice living under the new New Deal is this When the government sees an eco- It is already clear what groups will get the most out of the New Deal The two most outstanding are labor and the farmers Both take credit for putting Truman and the Democrats in power A Strong Labor Voice The 1949 New Deal will mean the end of the Hartley act That will be labor's payoff for playing a leading role in the Democratic victory The new Congress is the first which labor can claim to have given a mighty heave into office page 102 A few of the Hartley provisions will stay but only as changes in the Wagner act There will be no more injunctions perhaps for grave na- tional emergencies particularly John L. Lewis The closed shop will come back Unfair labor practice rules for unions will be wiped out or drastically softened Other changes will be made NEW POWER like these who have been running some of the important agencies under Truman in the past will have their authority increased of losing their jobs Lilienthal AEC 22 Coy FCC McCabe FRB Smith FPC O'Connell CAB BUSINESS WEEK Nov. 13 13 1948 protectprotect unions when strikes do occur labor won't get off scot to However The new law will probably have a freecurb against jurisdictional disputes and unjustifiable secondary boycotts A Strong Farm Voice The switch of the Midwest states to the Democrats means a boost to the farmer's influence in the government That's especially true of the meat wheat and dairy farmers By the same token the fact that the southern Democrats sat on their hands means a drop in their influence for cotton and tobacco will Biggest plum that will fall to the farmers as a result of their vote will be continued support prices But the battle that's been going on within the farm bloc will continue in this Congress + . What kind of price supports shall they be 1 mandatory supports at 90 or more of parity plus mandatory acreage i i and marketing controls or 2 flexible | price supports ; _ Two other plums will fall to the farm- : ers First Congress is sure to give the Commodity Credit Corp. the power to build more government storage facilities | for grain under loan Second there's no : chance that Congress will end the tax * exemption on farmers cooperatives More Social Welfare *} A third special interest of the new _ New Deal has also been a pet of all previous New Deals social welfare log i Under this Truman Administration 3 social security will be broadened and ex- Be: panded You can count on some kind of health insurance bill going through 1- fairly unscathed The a- Unfinished Business in Unfinished Business | 1s or The election pulled the rug from under a lot of unfinished business in lly Congress Much of it seemed solid ; enough to roll on forever unchallenged ; But now all of it is either on the way u ; out or rerouted The most important j changes ; The Capehart Committee investi- gating basing points will submit its report in January But it won't mean much because the Democrats will be back in control With O'Mahoney as chairman the committee will soon swing into investigation of monopoly The Ferguson Committee will turn instead guns to aim them at war contractors instead of at the government The Hoover Commission aimed at streamlining the government is as good dead It will write and file its report originally planned But the Demofratic victory has taken all the punch put of it The victors won't go for a pro- ram that loses them jobs and prestige 19USINESS WEEK Nov. 13 1948 Peace Treaty for Alcoa Aluminum company buys WAA plant at Massena N. Y. frees its patents to the industry Question Is Justice Dept. relenting in its antitrust campaign campaign Aluminum Co. of America last week sena sale might foreshadow a softening buried the hatchet with one govern- toward Alcoa on Justice's part It's ment agency But whether it was to get rumored that the White House put its the ax or the olive branch from another O.K. on the deal If that is so Justice wasn't quite so clear probably knew about it Two What Alcoa did was 1 Sign an agreement with War As- Whether or not the release of patents will mollify Justice what Alcoa gets- sets Administrator Jess Larson This and gives the two transactions is will make many of its patents available fairly clear -royalty the rest of the alu- Massena Under the Massena minum industry agreement Alcoa will 2 Arrange to buy the governmentowned aluminum plant at Massena N. Y. Price million The Aluminum Co. of America is also get- CLOSE DOWN thirds of its old plant at Massena and operate thirds of the WAA plant ting production equipment from the government's Burlington N. J. INCREASE its over pig output about -4 of % Production at Massena - got plant for 175,000 will be upped % to % Before this Alcoa the brush when it came to buying any of the sur- KEEP UP unused part of the old and new plus plants WAA was peddling Alcoa plants as standbys in case 7 7 of war- did buy the surplus fabricating plant... or threat war at Cressona Pa in February 1947 Patent Under the patent agree- But the Massena plant is pig proment proment Alcoa will <2 cot li. 0 ducer That makes and that makes the nificant B ackground all tice Dept.'s year The courts ruled in all the difference sale to Alcoa sig- goes back to Jusfeud with Alcoa 1945 that prewar *~ GIVE WAA a royalty license to use . Alcoa's fluoride patenatt the govern- ment's alumina plant at Hurricane Creek Ark WAA will have the right _ -plant to license any operatoorf the - Alcoa was a monopoly But the govern- _, -plant | ment didn't make any further move MAKE AVAILABLE also royalty all against the aluminum giant at that- time It was waiting to see whether it was still a monopoly when the war sur- plus plants were distributed About a - patents governing the process of . extracting alumina from bauxite ore at government alumina plants again WAA will have rights to sub- month ago Justice finally asked for a license court order to break Alcoa up BW- GRANT TO WAA for 115,000 a license Oct.2'48 Crux of Justice's charges was that Alcoa controlled the aluminum indus- try by controlling pig production Now WAA has relented and sold Alcoa a pig plant Larson was glad to get rid of it To him Massena was a white elephant The plant had been standing idle and was going downhill No one else would have it under all Alcoa's machine patents the license would apply to all aluproducing and fabricating fa- cilities that Alcoa built for the gov- - ernment during World War II R esults a result of these commit- ments both Reynolds Metals Co. and Permanente Metals Corp. will have access to all of Alcoa's alloy patents they Change of -Justice Dept. op- posed the sale of the Massena plant to Alcoa but not very hard So the indus- try is asking What does this deal the release of the patents to the antimonopoly suit Some sources say not much These dopesters think that there'll probably be a break in the antitrust suit in the next will also be able to use its basic patent on the called direct process of casting aluminum plus a variety of other patents in the fabricating field From now on the aluminum indus- try will operate on a royalty basis The only exception will be in the fabricating field where moderate industry royalties have been established couple of months Justice has filed its findings in the monopoly case Alcoa's answer is due in January That answer should either result in a settlement or In winding up its issues with Alcoa WAA points out that aluminum ing facilities will now be divided in about a 50-30-20 ratio among three bring the case to trial Feeling in Pittsburgh is that the Mas- companies Alcoa Reynolds and Permanente respectively 23 What Ford and Nash Held Estate filings show that both auto men kept large sums in cash Their heirs can use these liquid assets to pay inheritance taxes to government A few people in the United States have a problem that doesn't bother the rank and file where their money should be when they are alive and when they are dead In a way it's many a man's worry But it looms bigger when there are millions of dollars involved That's the problem that faced two massive figures in the auto industry Ford Motor Co.'s Henry Ford and Kelvinator Corp.'s Charles W. Nash Two recent items in the financial news throw some light on how they handled it T hrifty estate of Nash has just come up for appraisal in probate court Nash died last June at the age of 84 Preliminary figures put his estate at 43,183,624 The two biggest items in the page listing of his assets hit financial dopesters with a bang Nearly million of the estate was in savings accounts Farmers & Merchants National Bank of Los Angeles had over million Security National Bank also Los Angeles had a cool million By any standards those are fat figures for the account book The next largest asset item was 62,900 shares of NashKelvinator Corp. The value of these was estimated at over million Other investments included public and traction bonds Among other matters still to be handled in winding up the Nash estate is the payment of taxes This is usually a problem calling for much negotiation with tax authorities to get agreement on estate asset values Fo rd's When the Ford will was filed a year and a half ago BW Apr 26'47 one big question was how much money the government could col- lect on it in taxes The estate and the government didn't agree on the value of the taxable Ford shares The argument went back to the time of Edsel Ford's death in 1943 even earlier Now that Mrs. Henry Ford has filed the first annual accounting for the estate there is an answer to the ques- tion of the government's take The accounting showed payment of 21.6 lion in federal taxes million for Michigan inheritance tax account The million wipes the federal liability off the provided the estimate of the stock's value isn't chal- lenged The Estate-- Apr. 8 1947 the estate had a cash balance of over 26.4million There were also property and real estate holdings of million in Michigan 963,695 in Georgia Then there were holdings in British and French Ford Add to that roughly 38- million in Class A and Class B Ford stock worth 100 a share You get a total of some million not counting the foreign holdings The Ford Foundation gets 286,099 shares in A nonvoting free stock The Ford family gets 95,321 shares of B voting stock Dividends of $ a share have swelled the cash account by some mill between April 1947 and April 1948 Taxes almost swallowed up the cash balance By July of this year after claims and taxes had been paid the estate's cash had shrunk to a little over million A -That is a big bite to take from any estate Its size may help explain what Charles Nash may have had on his mind when he salted away 13- million in savings accounts That big splash of liquid assets may be just the thing when the Nash estate has to settle up taxes Maybe the heirs won't have to sell stocks a time when stock values are declining Maybe all they'll have to do will be to draw on those sav- ings accounts NationalZcilung NationalZcilung NationalZcilungNationalZcilung NationalZcilung gy Berliners Had Two Winners to Pick From Newspaper readers in Berlin had a slight case of confusion for a short time after last week's election Like Col McCormick's Chicago Tribune the licensed National Zeitung left went to bed a bit prematurely with the wrong man on top On the other hand the licensed Telegraf right had the word correct but until later returns came in Berliners had to wonder who won 24 NATURAL GAS WHEN When will natural gas reach the metropolitan New York area You could get some idea this week Six utilities in and around New York and one in Philadelphia signed contracts to buy million cu ft of gas a when Continental Gas Pipeline Co. can - deliver it But that hardly means tomorrow Continental hopes to start delivery by late 1950 or in 1951. It is building an 1.840 pipeline from Texas and Louisiana to New York City And there's still a shortage of steel pipe Another pipeline company is in a York area position to reach the New Texas Eastern Transmission Corp.'s Corp.'s Big Inch lines Nov.6'48 now terminate at Linden N. J. not far from New York Texas Eastern is delivering some natural gas to Philadelphia to hopes to expand its capacity enough metropoli- deler gas in the New York metropolitan area by 1951 or 1952 BUSINESS WEEK Nov. 13 19481948 GEORGE GALLUP and ARCHIBALD CROSSLEY and ELMO ROPER are trying to explain How the Election Polls Went Wrong ; The pollsters couldn't read their own figures and their sampling method may have been wrong You could have knocked them over with a punch card last week public opinion pollers and most editors and politicians For the first time the sci- ence of feeling had really gone Limb haywire Why . Crowded off the disaster stemmed from a basic human error The researchers didn't read their own figures like mathematicians Once one of the major pollers had himself out on a limb with a prediction the other two got on behind him Sure that takers are the type who wear a belt and suspenders too the editors and politicians crawled out with them The limb broke Strictly speaking neither Crossley nor Gallup nor Roper had proved that either of the major candidates was a winner Crossley gave Truman 44.8 of the- vote Gallup 44.5 Roper 37.1 Truman actually got 49.9 But these figures had miles of stretch in them fiThat % Error one thing all samples are subject to possible error The pollers say this stretch was about % for each candidate In other words With completely bad luck the margin of victory could have been sour by 8 percentage points one way or another Next the don't know vote ran as high as 15 in Roper's case The pollers assumed the don't knows would split about even between the major candidates on election day Whether they did is still anybody's guess All in all Roper's own figures at face value such a stretch that Truman could have had as low as 28 of the vote or as high as % N o Hedge didn't the pollers frankly say that The New York Herald Tribune's Ralph Chapman probably put BUSINESS WEEK Nov. 13 1948 25 his finger on it After an interview with Gallup he wrote Asked whether he had warned that his prognostication of the presidential election could be in error because of the anticipated small vote he Gallup replied that he had not because the newspapers would have accused him of hedging For businessmen the first big lesson from the debacle of the polls thus is evident Beware how you read figures In research as in contracts it's often the footnotes hedging makes all the difference in the world Wrong Methods from plain pollers human errors in judgment the may have committed some errors in method If nothing else it's obvious that a poll which has a stretch of 23 or even more percentage points in it leaves something to be desired And therein lies a second big lesson for businessmen If you want tighter research you will have to push for it The techniques are there But they haven't been used to their fullest One reason Businessmen won't spend the money ; From its beginnings research has been bedeviled by this pinching on the part of its customers That led to the widespread use of the quota sample The public opinion pollers incidentally all used quota samples Probability vs. Critics samples for some time now have been touting another method original probability sample Variations on it are called precision or area methods The Census Bureau is a strong plug- ger for this type so is the Advertising Research Foundation Suppose you want to find out some- thing about the million citizens of the U. You put everybody's name on a slip of paper throw the slips into a big bowl spin it then draw out a handful of slips You now have an ab- solutely random sample every name a in the bowl had fair impersonal chance to get into the game to regis- ter a vote or opinion You have a true probability sample What's more you can use a mathe- matical yardstick to find out how much stretch range of error there is in your findings Suppose you have a big hand and grab up 1,000 names on the first try You interview these But your mathematical yardstick shows there is still a lot of room for error So you grab another handful of names another With each handful the possible error gets smaller All probability samples are based on this bowl- system The attraction is the completely random selection Every name has a mathematical chance of coming up Quota Samples quota sample is a shortcut method to save time and money You know in advance that people's opinions are affected by various things race creed income occupation You also have certain basic data on these factors from Census and elsewhere So you try to set up a sample with enough factors in the right proportions Basically that's sound But suppose your data is shaky Or suppose that your definitions of the various factors are vague For example Just where is the dividing line between different income groups That's where serious trouble can creep in Human judgment weakens the mathematical guides Interviewing the difference between the probability and quota methods is especially wide in the interviewing work Let's say you are using the probability method and have grabbed 5,000 names from the one big bowl Now your interviewers must buttonhole ex- actly those people They can't substitute They have to play Dick Tracy on that 5,000 until they have nailed every last one In actual practice you could never reach all 5,000 but you would have to come mighty close The ex- 2s One Correct Poll Staley Milling Co. Kansas City no connection with A. E. Staley Mfg Co. page 6 is blushing this one not because its poll was wrong but because it was right Just before the election the company held an informal poll in which farmers cast their votes by calling for a chicken sack with a donkey or an elephant on it After three weeks the result stood 54 for Truman 46 for Dewev Unable to believe what it saw Staley called the thing off Quipped one executive at the time with more foresight than he realized If pullets were ballots President Truman would be a shoo for election pense of calling back again and again can be enormous Here agam the quota system takes a shortcut You can substitute Mr. Smith for Mr. Green You can you are sloppy about interview only ground families save your wind by not climbing to garrets The interviewer has some leeway for human judgment under the quota system as the sample did And that judgment can introduce a systematic error in the results At first glance it looks as if the elcction gave probability polling a big boost quota polling a black eye But for many jobs the probability system is fancier than you need too expensive for what it shows Suppose you want to find out if any adults in New York's Hell's Kitchen drink whis- ky You could get every last adult's name and address put it in a bowl draw out a sample then interview each and every name in the sample with no lee- way for substitution But you could probably get an answer cheaper sooner and good enough for practical purposes by a crude quota sample Right Questions from sam- pling and interviewing methods the clection has put the spotlight on the questions that are asked of the guinea pigs Are they scarching enough Did they allow the subject to lie or fake What about the don't knows Would deeper probing of them have revealed something No definite schools revolve around this point as they do around sampling But there's common agreement that more psychology would produce more valid answers The research fraternity hopefully says this searching is all to the good And indeed it providing it teaches businessmen they have to pay an honest price to get honest goods When a competent research firm advises an ex- pensive sample the client would do well to take it or drop the job End of Polling all this mean that commercial rescarch is crippled or doomed Prcbably not The clection polls dealt with future intentions That's tricky stuff Most commercial surveys deal with facts and actions the subject actually use Lifebuoy or Camay did he actually listen to Stop the Music or Fred Allen No does the average commercial work need the absolute certainty of an clection poll You may find out via research that say % of the people favor your product Actually 45 only buy it But you probably won't go un- der because of the difference some- With Truman and Dewey it's some- thing else again 26 BUSINESS WEEK Nov 13 19481948 Howard Allen Inspector Howard Allen Lab Man Howard Allen on Order Desk Howard Allen Sales Representative Howard Allen Machine Operator Outside Man | | ; with an Inside Story Do you know the inside story behind your '- Ryerson sales representative It's a story of years spent within a Ryerson plant A story of the steel inspection department the operating or threaded And can put to best use all the coordinated functions that make up this steel service because he knows about them first hand . department the service department and others -inside jobs through which a Ryerson salesman builds up the experience he applies . side your steel problems That's why you can be sure you're dealing with an experienced steel man when a Ryerson representative calls He offers a complete steel carbon alloy and stainless sheared sawed or slit burned or bent punched Of course he can't work miracles Right now there simply isn't enough steel to meet current demand But you can depend on your Ryerson salesman to cooperate closely and intelligently with you From long experience he can often suggest practical alternates when the steel you need is not available So to make the most of available steel talk it over with your Ryerson representative or phone our nearest plant * Joseph T. Ryerson & Son Inc. Plants at New York Boston Philadelphia Detroit Cincinnati Cleveland Pittsburgh Buffalo Chicago Milwaukee St. Louis Los Angeles San Francisco oaetane he YA RYERSON STEEL ithe seal spatane Here is General Mills latest achieve- ment in cutting packaging machinery The Tray Machine produces type trays and cartons from flat unglued blanks Operation of the machine is entirely automatic the expensive glueing operation is eliminated completely The machine delivers a wide variety of tray and carton sizes and styles to the filling station at speeds to synchronize with the filling operation up to 90 units per minute All are turned out with sturdy straight sides that have no diagonal scores to weaken them 13 in length Change from one carton size to another is a simple 10- minute job Cut your packaging costs out stronger cartons at a faster rate with the General Mills Lock Machine Further information on this or other General Mills packaging machines finished carton formers ice cream carton set and closing machines Vacuflow powder fillers is yours for the asking Address Dept. B118 Carton sizes range from " to 1 in height 2 to 6 in width and 4 to General Mills Tray Machine Co Reeessasieres Made by one of the world's largest 28 BUSINESS BRIEFS moeomy THE RUBBER PICTURE continues bright September output of natural hit a new high 145,000 tons while consumption hung up a postwar record 122,500 tons ~ ON THE BLOCK are North American Ray- Apr on and American Bemberg BW 3'48 The Office of Alien Property will open bids on Dec. 13. Last barriers to the sale went down with stockhold- ers approval of a new series of stocks Successful bidders must get an O. K. from the Justice Dept.'s antitrusters BRITISH AUTO MAKERS expect to export million worth of 1949 models U.S. buyers will account for a big chunk They bought 16,000 British cars worth 148 million during the first nine months of 1948 are now second- best overseas automotive customers ANTITRUST HEARINGS against the Giannini's Transamerica Corp. are slated to begin Dec. 7 BW Oct.16'48 The Federal Reserve Board is speeding things up now that a Federal district court has refused Transamerica's de- mand that the board clarify its com- plaint TOP POSTS have been filled in the gov- ernment's billion program to develop electronic weather airways BW-BW- May6'48 American Airlines president Ralph S. Damon will be chairman of the Air Navigation Development Board R.C A.'s Dr. Douglas H. Ewing will head up development EMPIRE TRACTOR is in bankruptcy Two weeks ago a federal district court ap- pointed receivers for the companyknown mainly for its sales to Argentina BW Aug.` 6'47 Now creditors have joined in a new petition to withdraw the iginal one for bankruptcy THE HUDSON RIVER DAY LINE has fol- lowed the famed Night Line into senti- mental limbo It has taken its four steamboats off the New Albany run put them other property for sale HAWAIIAN PINEAPPLE CO is inching ever closer to its market First it Aparc.2q4u'i4r8ed California cannery BW p103 now it has bought a piece new cannery going up in Cerro a Apr.24'48 of the Colo- rado Mexico PORISMOUTH VA has oversubscribed the 250,000 fund being raised by the May13'48 the Industrial Foundation Foundation May13'48 , in- p48 Money will go to house new dustrics cnd Portsmouth's boom dependence on naval shipyards j BUSINESS WEEK Nov. 13 19481948 =T|HE STRANGULATION CORPORATION x9 a oe CORPORATIOONN AE) EY i aN vl i 31s Time Gentlemen Time ... high time to end this Uncivil War T a legend that in one part of the South a pack of Johnny Rebs and a bunch of the Boys in Blue - are still shooting at each other - be- cause no one has been able to get close . enough to tell them it's all over makes And that just as much sense as the actual feuding and fighting that goes on among some grown in the world of business today One side defending an outworn set ofprinciples prejudices and pompous protocol The other side assaulting bitterly oe with plenty of lavender and old lace In its own knapsacks Who could guess that this is a seller rela- tionship Well it is and how often you see it You can buy my product . . . but you'll have to fight to get it Now these Brass mills were operating at the time of the Civil War But even then Bristol never operated in the stifling stuffiness that consti- tuted the code Almost 100 years old Bristol has always been a young man's outfit in which shirtsleeves are no crime and a laugh during business hours doesn't dock a week's pay You'll find we serve up our service plain without tape bows tied in hard knots And if that's the way you like it then here's the place you can get it good Brass sheet rod and wire made exactly as you want it Glad to see you or to come to see you any time you say Write THE BRISTOL BRASS CORPORATION Makers of Brass since 1850 Bristol Conn 15 Park Row New York City 418 Frick Building Pittsburgh Pennsylvania 1607 South Broadway Dayton Ohio 616 Temple Building Rochester New York 827 Hospital Trust Bldg Providence Rhode Island YOUR LISTENING POSTS IN the New York State market Without leaving your desk you can get an accurate picture of local conditions in the World's Richest Market Marine Midland bank officers in 47 New York State communities can serve as spot reporters Tell us in New York City what you want to know we'll have reliable hand infor- mation for you quickly Marine Midland Banks serve ... - Buffalo - Jamestown New York City - ce ee Johnson City Lackawanna Adams Albion _ Alexandria Bay Antwerp - Attica .- - - Avon Lockport Malone Medina Middleport Niagara Falls North Tonawanda Batavia Binghamton Copenhagen Corinth Cortland Nyack Oswego Palmyra Phoenix Rochester Depew East Aurora East Rochester Snyder Sodus Tonawanda Elmira Elmira Heights Endicott Evans Mills Fulton Holley Horseheads Troy Watertown Watkins Glen Webster Westfield | Williamsville j Wilson Energy Key to the Future Oil researcher sees present fuels and atom power ex- hausted in a few centuries Answer direct utilization of sunlight water power vegetation ~ Industry is energy Put it another way Energy is the one thing industry simply could not do without for energy means heat energy means power en- ergy means transportation Changing Energy Picture days more and more people are thinking and talking about the problems of energy supply It's being forced on people's attention by 1 The changes that are taking place in our energy sources For instance the rapid emergence of petroleum in the last few decades only to drop back to a minor place in a comparatively short time as world development is measured 2 The probability of a big increase soon in our energy needs Supplies of easy quality raw materials are rapidly being used up In their place we are being forced to turn to lowerquality resources or to substitute materials As our supplies of grade iron ore give out steel men are experimenting with beneficiation of grade ores That takes energy Aluminum and mag- nesium are being used more and more in place of other metals titanium is coming up BW Nov.6'48 These new metals use more energy in the re- fining process aluminum is practically stockpiled electricity Key question Where will we be get- ting our energy in the future or 100 or 200 years in the future Report . week a session of the 28th annual meeting of the American Petroleum Institute in Chicago heard a carefully thought paper on the range aspects of this problem The author Eugene Ayres of Gulf Research & Development Co. a Gulf Oil Corp. subsidiary His conclusion We will eventually have to shift away from sources of energy that get used up turn to continuous inexhaustible sources -and we had better start following this policy soon In his report Ayres predicts that the direct use of solar energy is likely to displace an appreciable portion of our fuel consumption within the next few decades Ayres estimates that total annual energy consumption in the United States today is a bit more than trillion horsepower ( trillion is thousandbillion a horsepower is about quarters of a kilowatt Big Users largest single use of energy is for heating it takes up 28.4 of that trillion hph Second largest use is for transportation with 27.7 third comes manufacturing and COMPANY YorYorkk COMPANY New York York Member Federal Deposit Insurance Corporation 30 Punctured Tread for Winter Driving Goodyear dealers are being provided with a new winter line of business ing tires Goodyear Tire & Rubber Co. is now furnishing its dealers with a device above left which punches thousands of treatment holes tire tread to a depth of tiny into in- eliminates to #& in Goodyear says the creases traction on snow and ice need for chains lasts all winter charge for the service is 2.50 Standard tire per BUSINESS WEEK Nov. 13 19481948 PRODUCTION TRIPLED UNIT COST CUT 60 with TOCCO Induction Heating Even if your products are entirely different in size and shape TOCCO can probably provide similar cost reductions and production increases for you @ Nash Motors Kenosha Wisconsin reports the following benefits from TOCCO Induction brazing of drain flanges to automobile oil pans 1. PRODUCTION TRIPLEDT-RIPLED- Using a hand torch production was only 21 brazed assemblies per hour TOCCO brazes 75 per hour of former output 2. COSTS CUT At the same time TOCCO Induc- tion brazing cuts labor and material costs from 12.75 to 4.90 per hundred reduction of 60 representing a saving of 6.00 every hour 3. OTHER ADVANTA - iG ncE luS de a neater bet- ter looking brazed joint and a complete elimination of leakers and subsequent repair costs TOCCO Engineers are glad to help you find applications in your plant where TOCCO Induction Heating would increase your production cut your costs and improve your products THE OHIO CRANKSHAFT COMPANY 'Mai meel Mail Coupon Today - I | FREE BULLETIN Mail THE OHIO CRANKSHAFT CO Dept. W Cleveland 1 Ohio ~ ] | I Please send free copy of 60 page book | Induction Heating | | Name | Position ! | Company | Address | | | ve oF Eres Lowest Priced ... Most Productive ... Fastest Moving Propelled 5 Ton Mobile Crane on the Market HYSTER You won't believe it until you see a Karry Krane performing your loading and unloading jobs under your own conditions That's why we welcome an opportunity to demonstrate this selfpropelled mobile crane with adjustable boom pneumatic tires and the ability to hoist and move heavy or bulky loads up to 10,000 pounds quickly efficiently See your Hyster distributor for a Karry Krane demonstration Write us for literature HYSTER COMPANYCOMPANYCOMPANY COMPANYCOMPANY COMPANY THREE FACTORIES 2907 E. Clackamas St. Portland 8 Oregon 1807 North Adams Stree.t. Peoria 1 Illinois 1010-07 Meyers Street SOO Danville Illinois 32 mining with 25.7 The rest is mostly wasted Practically all energy is of atomic origin Most of it comes came atomic processes in the sun Some of the solar energy that reached the carth many millenniums ago still exists today in the form of stored sunlight petroleum natural gas shale oil These undergound resources make up most of the unrenewable sources that Ayres talked about From these un- renewable sources we obtain more than 90 of our energy requirements today The other important unrenewable source of energy is fissionable material uranium and thorium How Estimates of ultimate re- serves of these sources vary tremen- dously Avres tock the highest and lowest estimates for each fuel stated them in terms of the number of years they alone would satisfy the present annual energy requirement trillion hph maximum 1,700 years mini- mum 170 years petroleum 16 years minimum 5 years natural gas -maximum 12 years minimum 5 years shale maximum and minimum both 13 years maximum 1,741 years minimum 193 years Rising Demand figures of course are based on a constant energy requirement at the present level Ayres estimates that demand will increase about 50 every 50 years On that basis demand would be trillion hph 100 years from now instead of the pres- ent trillion But there's another big factor A lot of energy is lost when one form of energy is converted into another Over the long term this will make itself felt in two chief ways 1 Electricity From Coal big part of the increase in demand for energy will consist of electric power Most of this in the future will be made from coal leaving hydropower out of consideration for the moment And there is a big loss of energy in this process Ayres estimates that at present the efficiency is only 14.4 im- This efficiency figure will be im- proved some of our production today runs around % But Ayres estimates the conversion loss 100 years from now as million hph a year 2 Liquid Fuel From Many uses of fuel are much better adapted to liquid than to solid fuel Automobiles and airplanes are only two examples But oil is a short resource effi- The term answer is conversion conversion of coal into liquid fucl The present ciency of such processes today is only about 40 Even assuming technolog- ical advances Ayres estimates the annual conversion loss 100 years from now at trillion hph re- In 2048 the total U. energy di- quirement in 2048 is trillion hph BUSINESS WEEK Nov. 13 1948 See what it can do for your business For mechanization is the one sound answer to today's high cost of hand figure of every kind Businesses large and small all over the country report savings ranging up to 30 after mechanizing their accounting with Nationals Savings which often pay for the whole National installation in the first year Today's high costs of delays and overtime make mechanization as essential in the office as it has long been in the plant Ask your local National representative to study your setup and report the savings you may expect from the use of correct modern accounting tools THE NATIONAL CASHh registeR COMPANY DAYTON 9 OHIO THE AMAZING NEW ELMES petuator rect plus trillion hph in conversion losses total of trillion hph For the years beyond this Ayres assumes a con- stant increase of 50 every 50 years On this basis our total reserves of fossil fuel would last 92 years at the minimum something under 300 years at the maximum Other sources of energy must be de- veloped Atomic power is not the answer Ayres says the world's reserves of uranium and thorum are too small They will probably be exhausted be- fore the fossil fuels this is even more certain if consumption of uranium for bomb manufacture continues at the present rate The only answer then is to sources of energy that can't turn to be ex- hausted Ayres thinks three are poten- tially important They are Direct Solar Energy This could be used in two ways for heating and for power The maximum potentially available is somewhere around quintillion hph per year In practice of course only a very tiny fraction of this could Cost ELMES HYDROLAIRS Now be realized Ayres estimate for 100 years from now trillion hph for power trillion hph for heating than Deliver a Continuous Power Stroke half his assumed power load Several ways of converting solar energy into usable power are theoretically possible Experiments on direct conver- = Here's the biggest improvement in small hydrau- lic presses since Elmes Hydrolairs were introcontinuous power stroke that maintains the pressure you select even on compressible materials BIGGEST SMALL PRESSES EVER Add to this the many other Hydrolair advantages sion of sunlight to electrical energy are now going on at Massachusetts Institute Te of Technology Concentration of sun- light by lenses to produce heat is an old dream that may yet prove practical TON BENCH Opening 0 to 13 Platen 10 x 10 Stroke " Dimen- sions 30 x 29 x 47 high heat can be changed to electricity Once electricity is obtained it would be possible to synthesize fuel from nothing but air and water -small size light weight effortless quiet opera- Water Power A tremendous amount tion with your regular shop air line furnishing the power These little marvels are the biggest of solar energy is used to evaporate water from the surface of the earth small presses you ever saw and to lift it to form clouds whence NO OTHER PRESS LIKE HYDROLAIR Hydrolairs have neither pumps nor motors The amazing new Elmes petuator automati- cally transforms air line pressure into positive hydraulic force Packless construction assures freedom from maintenance Service applications are virtually limitless Hundreds already in use CUT YOUR PRESSING COSTS THIS EASY WAY Built to Elmes press standards in sizes to 50 tons Bench- and types Furnished with or without hot plates and other accessories If you want to cut your pressing costs write for new Bulletin No. 1036A Distributors from coast to coast Elmes Engineering Works of American Steel Foundries 214 N. Morgan St. Chicago 7 Ill TON FLOOR Opening 0 to 13 10 x 10 Stroke " Platen Dimen- sions 36x 19 x 65 high TON FLOOR Opening 14 Platen 18 x 18 Stroke " Dimensions 40 x 27 x 65 high Push- button control optional it returns as rain About 99.67 of the total is used for evaporation and is in no way recoverable the other 0.33 is used to raise the water vapor above the earth and part of that is recover- able in the form of the water power of streams our the avail- Avres estimated the maximum avail- able from this source at about 360- trillion hph a year some billion hph are being recovered today the maximum likely to be recovered ycars from now is trillion hph Vegetation Sunlight is used by plants in their growth And some of the thus stored is recoverable We eusneerigtytoday when we burn wood But it con- could be realized in other ways version of vegetation into alcohol for Good Hydraulic Production Equipment Since 1851 gasoline instance or even into Ayres estimates of energy from veg- available etation maximum potentially trillion trillion trillion hph now used hph possible within 100 years 10 lion hph BUSINESS WEEK Nov. 13 1948 : os . a ; Even if you have no more hair than a grapefruit you probably know something about home permanent waves ... particularly if your wife daughter sister or mother them Millions of women do In 1947 they bought 50,000,000 kits This year the figure's still higher What turned this clever idea into a booming industry almost overnight Paper helped tremendously Often the hair curl- er itself is made of paper .. . twisted and sometimes reinforced to give the exact stiffness and pliability needed And in packaging labeling instruction sheets advertising and merchandising paper continues to aid this fabulous industry as _ its sales graph curls steadily upward and upward To meet the growing demand from industries | new and old Paper Makers to America is rapidly increasing production Each month sees more Mead Papers of consistently finer quality In the Mead Dill & Collins and Wheelwright lines industries _ as well as individuals find the best buy in paper today colors Mead offers a completely diversified line of papers in printed in- substances and surfaces for every printed use in- cluding such famous grades as Mead Bond Moistrite Bond and Offset Process Plate Wheelwright Bristols and Indexes D & C Black & White and Printflex Coated Papers o t ESTABLISHED 1846 nat Marvin E. Allesee Vice President and Director of Sales of DORMEYER CORPORATION Model 7-83-54 Also keyboard Add subtract multiply or compute credit balance a versatile Victor for every busi- ness . large or small Choice of key or keyboard hand or electric models Workers like efficiency speed and accuracy Anyone can operate Compact . . . easily carried Fully guaranteed Nationwide service points Call your Victor dealer for a demonstration Consult your classified phone directory or write for address VICTOR ADDING MACHINE CO World's Largest Exclusive Manufacturer of Adding Machines ett ed ot | cealaaleahen att etaahestehlle eta elelleatettee t et H } Victor Adding Machine Co. Dept. 11-13 Chicago 18 III 1 1 (J Send free Secret of Speed booklet H H I would like a demonstration H i i Name___ } ' I H Address i[ ' City_ L State ' 36 _.. Puts Firestone in Kickless Artillery Business At Firestone Tire & Rubber Co. where designers grapple with bounce in motoring production lines are humming with orders for rifles designed to take the bounce out of firing These recoilless weapons developed by ordnance late the war give the infantryman the figfig Dower of an artillery battery They're pitterned in general after bazookBuat they have rifled barrels use bigger charges thus get far greater distance and accuracy Recoil is cut out by allowing a controlled amount of the gases that propel the shell to escape through open- ings in the breech of the rifle These escaping gases exactly counterbalance the force that drives the shell out of the muzzle Thus a kickless mm rifle which weighs 45 lb. can be fired from the shoulder a 110 mm piece can be manned from a machine tripod The mm job fires a lb high explosive shell for two miles the 75- fires mm piece over four miles with a lb shell Firestone is not new in th",, game during the war it redesigned the Bofors antiaircraft gun turned out thou- sands of the weapons BUSINESS WEEK Nov. 13 1948 ST REGIS COMPANY smokestack for Panelyte _ Let smokestacks tell the story Every factory in America makes some product or has some moving part or some piece of working equipment that can be made better or cheaper or witwih th Industrial Panelyte impregnated This pressed laminated plastic goes down to the parts sea in ships travels the highways in over a score of automotive from . soars through the skies in airplanes . . is in all sizes of transformers Boulder Dam to a toy electric train Every one of more than 50 grades of Industrial Panelyte is a special combination of properties with varying characteristics And there are also decorative grades Division of St. Regis Paper Company manufactures most of its Panelyte for the used as own resins and draws heavily on the parent company papers base Like all St. Regis papers they are made in St. Regis mills from pulp which which in large measure is manufactured in St. Regis plants and supplied by St. Regis woodlands ST REGIS PAPER 230 PARK AVENUE NEW YORK 17 Y. 1,800,000 ACRES OF TIMBERLAND MILLS & PLANTS 30 LOCATIONS ASSETS OVER 145 MILLION DOLLARS Mail Order Magazines- Catalogs *. Telephone directories - Books 13,200 EMPLOYEES OVER 17,000 STOCKHOLDERS Fertilizer Limestone Chem , FertilzerSugar Potatoes laminated plastic Electrical and Decorative Pon for sale to converting mills ; .. PACKAGING PACKAGINGSYSTEMS and Bag Filling Machines MASS PRODUCTION OF SHEETS RODS TUBES MOLDED FORMS FABRICATED PARTS FOOD MACHINERY | AND CHEMICAL CORPORATION Well planned for well acres Like other FMC division products Peerless Pumps are described in an interesting booklet Know Your FMC's available on request Water with its essential life giving qualities is the essence of all human existence Its cool draughts refresh the thirsty earth turning arid acres into fertile fields But nature does not always provide ample moisture when and where it is most needed Thus man must tap nature's vast underground reservoirs lifting and moving a tapful or a torrent by highly efficient mechanical pumps In serving these needs of farmers growers food processors homeowners industrial plants and even entire Peerless Pump Division of Food Machinery and Chemical Corporation supplies the right unit for every pumping job Like other FMC divisionbuilt products Peerless Pumps are described in a booklet Know Your FMC's available on request FMC AGRICULTURAL EQUIPMENT DIVERSIFIED INDUSTRIAL & AGRICULTURAL CHEMICALS PEERLESS PUMPS & WATER SYSTEMS FMC CANNING FREEZING & PACKAGING EQUIPMENT FMC PACKING HOUSE & PROCESSING EQUIPMENT AUTOMOTIVE JOHN BEAN MAINTENANCE MAINTENANCE EQUIPMENT 2 AGRICULTURAL EQUIPMENT JOHN BEAN DIVISION Lansing Michigan JOHN BEAN WESTERN DIVISION San Jose California BOLENS PRODUCTS DIVISION Port Washington Wisconsin AUTOMOTIVE SERVICE EQUIPMENT JOHN BEAN DIVISION Lansing Michigan FOOD a a MACHINERY ae eee FOOD MACHINERY AND CHEMICAL CORPORATION EXECUTIVE OFFICES SAN JOSE 5 CALIFORNIA AGRICULTURAL INSECTICIDES & FUNGICIDES NIAGARA CHEMICAL DIV Middleport NY Jacksonville Fla ; Richmond Calif INDUSTRIAL CHEMICALS WESI Chemical DIVISION New York New York CANNING & FREEZING EQUIPMENT Barngrover DIVISION San Jose California SPRAGUL DIVISION Hoopeston Illinois PUMPS & WATER SYSTEMS PEERLESS PUMP DIVISION Los Angeles California Indianapolis Indiana PACKAGING EQUIPMENT STOKLS AND SMITH COMPANY wholly owned subsidiary Philadelphia Pa PACKING HOUSE PROCESSING EQUIPMENT EQUIPMENT PACKING EQUIPMENT DIVISION Riverside California Harlingen Texas FLORIDA DIVISION Lakeland Florida EQUIPMENT FIRE FIGHTING JOHN BEAN WESTERN DIVISION San Jose California JOHN BEAN DIVISION Lansing Michigan e RESEARCH ee cp TEL LL ERIIE ay or yet, ype. yee, ee byeernos pe poet Pe age a ~ SURVEYING the field Dr. Leonard Greenburg New York State Dept. of Labor and Dr. May R. Mayers chairman Occupational Cancer Committee join up with ... .. Industry Against Cancer New group representing industry and medical and govern- | ment authorities maps fight on country's No. 2 killer First step : survey that will help determine industrial danger spots DAYS SOONER DELIVERY AT LOW COST " by routing all your eastbound freight via Science and industry are joining forces to take on a powerful antagonist occupational cancer The size of the job can be gaged by the fact that cancer now rates as the second biggest killer in this country This week the growing hazards of occupational cancer were the theme of a paper by cancer authority Dr. W. C. Hueper of the National Cancer Insti- tute The occasion was a meeting of the American Public Health Assn in Bos- ton Dr. Hueper's point The more modern industry develops the more vital is a study of potential industrial danger spots fiStarter such a study is the goal of New York State's brand Occupational Cancer Committee an unoffi cial agency Members have been working on a year program They have a special fund from National Cancer Institute of the U.S. Public Health Service of 32,694 a year to go on Ohio and New Jersey are getting similar grants Industry has representatives on the committee G. H. Gehrmann for Manufacturing Chemists Assn and Dr. Arthur E. Hoag for American Petro- leum Institute Other members include Bblerwrwenn wien as ae wae representatives from the U.S. Public Health Service from New York State Depts of Labor and Health well as from the medical and scientific centers Chairman of the new group is Dr. May R. Mayers chief Medical Unit Div of Industrial Hygiene N. Y. State Dept. of Health ; The committee knows very well that its job will be tough For one thing nobody really knows how big the problem is As Dr. John R. Heller Jr. director of the National Cancer Institute reported last week to the American Cancer So- ciety there are no figures to show how many people are dying today from en- vironmental or industrial cancer No one knows even how many people are exposed to it or where the precise danger lies e Program with this nebulous start the committee has lined up its im- mediate plans 1 A pilot study at the Roswell Park Memorial Hospital Buffalo This the first large survey of its kind will cover 5,000 male cancer patients 1,000 male cancer patients will serve as a control 2 The distribution of a leaflet on Occupational Cancer to hospitals Save time and money the dependable E way Fastest between San Francisco or Los Angeles and Chicago or St. .with comparable speed to all intermediate and points beyond P.I E We handle all details with the shipper in any and every California point pick up the freight and where destination is beyond P interline with the carrier of your choice at the P.I.E West Ter- minal most practical to you Shippers agree E! PACIFIC INTERMOUNTAIN EXPRES=S Chicago St. Louis - Kansas City - Denver - Ogden Elko . Ely - Pocatello - Reno - Salt Lake City San Francisco - Los Angeles - Sacramento - Oakland General Offices Salt Lake City Utah 20 B & O National Limited crossing a pressure grouted track near St. Louis clinics and all physicians in the state who are interested in cancer The pilot survey is out to track down what chemicals or other occupational factors may be considered among the possible causes of cancer Dr. Mayers re- ports that industrial chemicals can m general be used with perfect safety if adequate control measures are instituted But in order to get the best control measures you first have to know what chemicals offer the threat Specially trained personnel will take detailed occupational histories of all cancer patients who enter the Roswell Park Memorial Hospital The interviewer will try to pin down just what the patient's occupational exposure was what chemical substances he came in contact with what other environmental factors were present in the workroom Since cancer will usually develop only after a great many years of exposure- and even many years after exposure- PORTLAND CEMENT now helps the Iron Horse run smoother TRAIN -- PASSENGERS are enjoying new standards of comfort ~ because of portland cement grout a mixture of portland cement sand and water which when pumped into soft spots and - water pockets under tracks hardens and stabilizes the roadbed More than 45 major railroads are now pressure grouting with portland cement to obtain a smoother riding track and to reduce maintenance and operating costs This is another example of the thousand ways that portland cement and concrete serve and save Concrete is the favored material for streets and highways because it is smooth and lasts longer lower cost to taxpayers Concrete also provides strength beauty firesafety and lowannual service for school buildings hospitals apartments factories and municipal structures Concrete is a wise investment for homes and farm buildings because it is firesafe stormproof ratproof proof termiteproof easy to heat inexpensive to maintain Yes you can depend on concrete for better service and better living be money ahead in the long run too PORTLAND CEMENT ASSOCIATION 33 W. Grand Ave. Chicago 10 III A national organization to improve and extend the uses of portland cement and concrete ... through scientific research and engineering field work CANCER AUTHORITY Dr. W. C. Hueper has ideas on how to tackle the problem of occupational cancer this means tracing the patient's history all the way back to his first job Sleuthing a however elusive- turns up at any point a chemist will be called in His job will be to unearth any positive proofs that a chemical suspect may have been the source of the disease The data will be entered on punch cards These will be used as the base for a complete statistical study to be carried out by the Division of Cancer Control of the N. Y. State Dept. of Health un- Gerhardt der the direction of Dr. Paul The committee is ready to follow any suspected case right into the workroom Its investigations will include chemical ... 10-- The Idea that became a Christmas tradition We don't mean hanging up mistletoe although that can be a very rewarding idea <p> > : ~~ We don't mean wreath although it wouldn't be Christ- .. mas without one = We don't even mean sending Christmas cards ... although that's a good way to let friends know you wish them well We DO mean THIS If you're wondering what's the best way to say Merry Christmas to your business associates customers potential customers and friends named Bill and Ed and Jim ... say it with a bottle or so of Four Roses So many people give Four Roses for Christmas nowadays that it's become sort of a holiday custom well it might be For you could search high and low with- out finding a gift that's half so welcome and sure to please and one that offers such a simple solution of your gift problems Four Roses softly mellow and distinctive in flavor a gift that not only reflects your thoughtfulness but is also a compliment to the good taste of the man who gets it Your favorite retailer will be glad to make special arrangements for gift pur- chases ; FINE BLENDED WHISK-90.5 -E90Y .5 proof 40 straight whiskies 60 grain neutral spirits Frankfort Distillers Corporation New York For the holiday season a special attractive gift carton FOUR ROSES GIVE WHAT YOU'D LIKE TO GET AMERICA'S FAVORITE GIFT WHISKEY In every kind business America does business on analysis of materials radiation measurements chemical analysis of air contam- mants gases fumes and the like That way it is hoped that occupational factors that are not now suspected of causing cancer may be brought to light Investigation Points Hueper's pa- per broke down the known and sus- pccted cancer causing agents into Physical Agents These include ultra- violet rays rays and other radioactive substances Chemical Agents Inorganic chemicals such as arsenicals chromates nickel carbonyl asbestos organic chemicals such as aromatic compounds and amines benzol and the undefined com- pounds responsible for the cancer ing action of tar pitch asphalt soot carbon black paraffin oil creosote and various crude and processed mineral oils shale oils and some products de- rived from them With this ist of suspects the med- ical authorities are particularly inter- ested in industries using these materials As Dr. Heller put it As far as we know the most dangerous areas are in the field of radioactive substances the areas of hydrocarbon research and development such as the temperature distillation and fractionation of petroleum and the wide field of organic chemistry which is developing new synthetic chemicals EDWARDS mo PAPER i s " wa Ea CO PORT EDWARDS WISCONSIN 42 Neutron Counter This tiny neutron counter is expected to ease one of the toughest jobs of the atomic researcher It was recently developed by Dr. Kuan Sun Chinese physicist at the Westinghouse Research Laboratories Neutrons are difficult to detect because they carry no electrical charge But neutrons will split uranium atoms So the detector includes a film of uranium A photosensitive plate responds to the radiation from electrons the atomic fission by emitting which are multiplied collected and counted BUSINESS WEEK Nov. 13 1948 - It really rains business in America's Biggest Market Are you following leaders the half of the nation's market where it literally rains sales There are no dull days for your better retailers in towns of under 25,000 Street towns- America When it rains the farmers come in to spend their record income When it shines town families enriched by seven straight years of farm prosperity and new town enterprise do their buying Saturday night everybody buys And that means over half our population million people Full shopping weeks make these better dealers your best dealers Are you sure you are distributing your selling messages among their customers and Main Street families both proportion to their number and buying power Join the hundreds of leading advertisers who are making sure through the pages of FARM JOURNAL and PATHFINDER 3,750,000 Families Who Buy On Main Street IN SEVEN YEARS the farm plant has increased in value from 54 to 11-1 billion dollars Farmers now have 22 billion in banks bonds and cash FARM JOURNAL - biggest in the country with 2,700,000 subscriber families hasincreased annual - advertising revenue from 2 to 8 millions during the same period For full effects look in the towns like this where farmers spend their money ed BIGGEST BUSINESS of Main Street America is retailing Your Main Street dealers today serve more than half the families in the country who live or shop on Main Street Can you tell the prosperous town customers from the prosperous farm customers in this modern store Both are important to you -and both can be reached through our two magazines FARM JOURNAL and PATHFINDER together influencing the buying half of today's America MAIN STREET INITIATIVE stimulated by seven years of farm prosperity is creating new and bigger payrolls new businesses and factories in Main Street towns There's more community spirit more individual enterprise in this economy Is it behind you Yes you're one of the foresighted advertisers who has realized the selective significance of America's 2nd Largest news magazine PATHFINDER'S 1,050,000 families make it 1st on Main Street Farm Journal Biggest the Country * Pathfinder First on Main Street Graham Patterson President Phenolic Resins by INTERLAKE CHEMICAL offer many industrial uses Here are typical examples where resins tailored to individual needs by Interlake's Technical Staff have produced a better PLYWOOD Top quality ply- wood is bonded with Interlake resins MINERAL WOOL This type of insulation is bonded into batts with Interlake resins LAMINATES Paper base lami- nates such as table tops and paneling are produced with Interlake resins BASIC APPLICATIONS OF INTERLAKE RESINS Bonding Surfacing Laminating Impregnating of such materials as cloth paper wood cellulose waste and fibrous materials INQUIRIES INVIT-EOuDr Technical Staff will endeavor to adapt Interlake Resins to your application Interlake Chemical Corporation Union Commerce Building Cleveland 14 Ohio INTERLAKE CHEMICAL Corporation PRODUCTS FROM COAL - Security Study Rand Corp. once an Air Force baby is now independent It tries to find ways to use new scientific advances militarily Out of the back room last week came an Air Force project that the boys in the bar have been whispering about for two years Project Rand the name stands for Research And Development shed some of its mystery officially became Rand Corp. an independent nonprofit research organization e What It In the broadest terms Rand's job has been the scientific study of ways to improve national security Fostered by General Hap Arnold it was set up in March 1946 as a separate de- partment at Douglas Aircraft Co. Its work since then has been done under a contract with the Air Force Top executives of Douglas and of three other aircraft companies Northrop and North American with USAF in setting policy and lending support to the project Rand does not develop new weapons or instruments as such Its job is to dig into the potentials created by mod- ern science to try to shorten the gap between scientific theory and military reality As such it paves the way for new engineering work Rand braintrusters will look at a new scientific principle decide whether it has any military possibilities then figure how much it will cost to develop the possibility and how good an end product can be expected They also try to decide what avenues of research will be the most economical Secret biggest part of Rand's _ work of course has been kept well blanketed behind a security fog The few glimpses that observers have caught however indicate that many of the projects make Buck Rogers look like a 19th century octogenarian Here's an example of the kind of stuff Rand might be called on to tackle Once we get a rocket to the moon what will be the chances of our setting up a lunar military base If it can be done what kind of equipment will we have to develop Economists Sociologists staff isn't confined to physical scientists alone Many of the researchers are grappling with projects that fall entirely in the fields of economics and sociology For instance Suppose New York were hit by an atom bomb How would you get Detroit workers to stay on their jobs when they know the auto city looms as No. 2 on the target list Or if our material sources were suddenly crippled what steps would we have to take to rebuild them On the other hand what supply sources would we have to knock out to upset an enemy's produc- tion Rand's success as a research experiment was one of the big reasons for setting it up as a completely independent organization Functioning that way it will be assured of the cooperation of industry without upsetting competitive relationships 'Working capital for the corporation has come entirely from private sources It will be run by an man board of trustecs Heading the organiza- tion as director will be F. R. Coll- bohm for many years one ranking engineers Rand will be paid for its dei a contract with USAF of Douglas research unBulk of the work will be handled by civilian scien- tists of the staff but plenty of projects will be farmed out to consultants from the universities and private research organizations Where government agen- cies other than the Air Force are con- cerned with the research the results will be made available to them Nonclassi fied material will go out to the universities and research centers for further : development Video Van If you've ever watched televisors try to move their cameras from one location to another in a hurry you know what kind of problem they're up against One man's solution is to equipment move all the heavy cumbersome on a single dolly Paul A. Raible of WAVE Louisville Ky dreamed up the device designed it to carry all the equipment needed for a telecast A portable transmitter in a truck goes along with the unit to send the program to the station for rebroadcast The dolly is designed to carry two cameras a switcher control two synchronizing units three power units and complete power hookup equipment BUSINESS WEEK Nov. 13 1948 How sweet music might help you solve problems in steel NATIONALSTANDARD Company DIVISIONS OF STANDARD CO HE picture above shows the mechanism of an antique music -~ box collector's item worth thousands of dollars The - finest of such music boxes were handmade by Swiss German and -.- Austrian craftsmen about 100 years ago This box is one of many owned by George A. Bidden of Barrington R. I. who like many . people today makes a hobby of collecting these beautiful instruments He has become expert in restoring them in recapturing their virtually perfect tone But Mr. Bidden encountered a problem He could no longer get from Switzerland the ordinary flat steel needed to dampen the tones in the comb teeth In desperation he turned to our Athenia Steel Division described his requirements and in short order got processed steel perfect for his needs This is a story of unusual application but is typical of Athenia service in the development and production of steel So if you are a user of purpose steel . . . if the solution to a problem in quality behavior uniformity control or application would be music to your ears it might pay you to see what Athenia special- ists can do about it ATHENIA STEEL Clifton N. J. Flat High Carbon Cold Rolled Spring Steel STANDARD Niles Mich . " Tire Wire Fabricated Braids and Tape WAGNER LITHO MACHINERY Jersey City N. J. Lithographing and Special Machinery WORCESTER WIRE WORKS Worcester Mass . . Round Steel Wire Small Sizes Office Worker Fatigue @ Air in offices air conditioned or not often gets stuffy and lifeless This taxes efficiency brings on fatigue - and causes 4 o'clock sag among workers @ Moore McCormack Lines use Airkem Chlorophyll Air Freshener to solve this problem They say The folks in our Freight Department complained of stale stuffy air Since using Airkem we have noticed a decided improvement @ Try Airkem Air Freshening Service at our expense Look for Airkem in your _ : an phone book or write us at oo >, 7 East A7th Street New York Y. That you may have light The wires carry the light and power for homes and industries and the seldom ing service is a modern miracle In the great power houses where steam water and air are held under exactly controlled pressures Ashcroft Gauges indicate these with enduring accuracy Quality comes from almost a century of fine making If you need pressure gauges specify Ashcroft Stocked and sold by leading Distributors everywhere MAXWELL MANNING & M M MANNING MOORE MANNING MOORE TRADE ASHCROFT Gauges ASHCROFT MANNING MAXWELL & MOORE INC STRATFORD CONNECTICUT Makers of Ashcroft Gauges Hancock Valves Consolidated Safety and Relief Valves and American Industrial Instruments Builders of Shaw Cranes Budgit and Load Lifter Hoists and other lifting specialties 46 READERS REPORT French Problems Sirs I was very much interested in Mr. McGraw's article France's Problems Today and Tomorrow Jul.24 p105 I know many Frenchmen who would have been proud to sign this study and I think it is remarkable that after a short visit a foreigner has been able to give such an exact synthesis of a situation which particularly in France is full of rather delicate shades of difference in public opinion With reference to your justified insist- ence on the political instability of France I think it is important to remember that the major cause lies in the unreconciled difference between the three major political parties in France on the subject of dirigisme government planning and interference - The recent numerous French coali- tion governments have been made up of three main parties 1 The Socialists on the left of the coalition towhom dirigisme is the essential basis of their governmental , concepts afilates 2 The Central party Radicals and positively dirigisme and <>The popular Republican partyless stable in its doctrines but supported by an electorate which fiercely dislikes dirigisme In any precariously balanced coalition it is often the minority that swings the lead The several recent elections have shown the Socialists as increasingly los- ing support from the electorate Seeing their dirigist partners in the coalition gaining in strength but knowing the coalition to be still in need of Social- 1st support the Socialists have provoked one ministerial crisis after another in a kind of losing rearguard battle The French individualism the fact that detailed government interference and planning had never been applied in France until the occupation by Germany and thirdly the fact that any directed economy in France is badly directed have made the French electorate as a whole detest government interference and bureaucratic red tape to a more violent extent than I have seen it anywhere else in Europe FRENCH INDUSTRIALIST PARIS FRANCE Animals in Industry Sirs Until he saw your article Animals Find Jobs in Industry BW Sep.4'48 Sep.4'48 p23 the writer thought he was the only one using animals for the purpose shown However he is rather proud of the fact that he has been using sheep to keep down the grass around lumber piles The ground is rather stony so that the grass cannot be cut easily by power Moreover the sheep reach grass around the lumber piles that would otherwise have to be cut with a scythe The fire insurance companies have given us credit for good housekeeping around our lumber piles the use of sheep eliminates the fire hazard of dead grass around the lumber in the spring THEO A. SPARKS PRESIDENT NAT'L TIMBER & FENCE CO LTD WINNIPEG CANADA Law on Mergers Sirs In the article Why the Urge to Merge BWSep.4'48 is the following statement So noticeable is the trend that Con- gress has been asked to prohibit mergers by the acquisition of assets mergers by acquisition of stock already are barred Do you mean by this that controlling stockholders cannot sell or merge their companies with another if the minority stockholders are given an opportunity to do likewise and on the same basis LEONARD A. WALES WASHINGTON D. C. * Section 7 of the Clayton act makes A illegal the acquisition by compaenfyfect of the stock of company B if the the merger thus consummated is 1 to lessen competition between the two companies 2 to restrain commerce or 3 to tend to create a monopoly on any line of commerce Federal Trade Commission has been after Congress almost since this ltahwatwaist passed to amend the law so would also bar mergers where company A just buys up the physical assets of company B. So far as we know any merger ; BUSINESS WEEK Nov. 13 1948 whether by stock acquisition or otherwise wise is perfectly legal as far as the anti- trust laws are concerned as long as it doesn't have the specified effects as to competition commerce or monopoly Transportation Pattern Sirs regarding transportation Your story regarding transportation Oct.30 pattern changes p19 p19 is very interesting It is true that this is a major problem unless the basing decision is modified or changed it will become an increasingly serious problem for railroads Railroads are now getting no more freight revenue per ton mile than they did in 1921. Unfortunately the public is of the opinion there have been many increases because the Interstate Com- merce Commission made three bites of their last decision This has had an ef- fect on the shipping public possibly similar to cutting off the dog's tail an inch at a time so it won't hurt so much It is true that traffic is being lost to the trucks It is also true that much of the shorthaul traffic really should go to the trucks because they can handle it cheaper and better than can a railroad But it is also true that steel companies and others have diverted considerable traffic to trucks not because they wanted to but because there are insuf- ficient cars to meet the demands The total available car supply has been pretty busy this year and every car has been utilized it was out of necessity to move their products that trucks were used Every car that it has been possible to build in the past two years has been built . The whole situation has been made worse by the fact that industry in gen- eral now working on a day week only unloads 40 of a normal day's unload- ing on Saturday and unloads practically nothing at all on Sunday This has made worse the countrywide shortage of equipment To some extent it gets down to this Good service depends on good earnings The railroads must be permitted to earn sufficient money now to enable them to modernize to buy modern machinery locomotives and cars to cheapen the cost of service which will keep rates down It is impossible now for railroads to acquire capital through the issuance of stock earnings must be sufficient gradually to interest investors in buying railroad securities It is necessary to bor- row part of the money for these im- provements they cannot all be paid out of earnings In either case however good earnings are necessary in the interest of holding down freight rates .... R. E. Woodruff PRESIDENT ERIE RAILROAD CO CLEVELAND OHIO - BUSINESS WEEK Nov. 13 1948 FOR SAFETY FEATURE -The hazarodf falling lamps is virtually eliminated when fix- _ tures are equipped with G^'neralElectric Turret lampholders Each backed plate contains two holders into which the fluorescent lamp pins are inserted Snug tension fit and uniform spring tension hold the 0 I" lamps securely in place ECONOMY . - Turret lampholders have the ability to withstand rough handling without being damaged which means that there is no costly replacement problem Elimination of safety gadgets means another saving In addition the availability - of three sizes of Turrets simplifies fixture design and permits a wide selection of lamp arrangements oo CONVENIENCE -Lamps can installed from either end of the Turret Either ,, face of the Turret is depresseonde end of the lamp and the other end is then slipped into place The lamps are automatically held in firm contact Re- moval of dead lamps is equally easy The starter socket is built and is : . readily accessible SERVICE -The sturdy metal construction of General Electric Turret lampholders is designed to stand hard usage Alf working parts are made to give long service long as the fixture itself lasts This durability helps to provide topnotch fixture performance .. maximum lighting efficiency To simplify your lighting maintenance and to get the utmost in fluorescent lighting efficiency it pays to insist on General Electric Turret lampholders in every industrial and commercial fixture you buy Lamps are not staggered but are mounted in a straight line thus giving maximum efficient . shadowless lighting Just check the advantages of having these durable lampholders Compare General Electric Turret lampholders with any other type of lampholder on the market You'll find that they offer economy in upkeep great safety and long service General Electric Turret lampholders have made an outstanding record of dependable operation in thousands of fixtures now in use They can contribute a great deal to your better lighting too A new General Electric Turret lampholder will accommodate three lamps lamp lampholders are also available with receptacles spaced on 3inch or inch centers For information on E Turret lampholders write to Section Q9-1110 General Electric Company Bridgeport 2 Connecticut TRADE REG U.S. PAT OFF GENERAL 47 PRODUCTION Selecting a Chemical Plant Site _. Labor Type Supply Rates Strike history , | w N44 . Fuels Oil Producer gas Natural gas Coal Coke - Power | Cost Service . Location Factors 4 an na CB ca Market Type of distribution Nearness Transportation Living Conditions Housing Cost of living Sanitation and health Climate Average temperature Average snowfall Average rainfall Water Supply ~~ Taxes Laws - Raw Materials Service | State Nearnes Nearness to supply Cost Local . Available transportation : Quality 'BUSINESS WEEK Site Conditions Construction Costs Rail connections Ground for foundations Drainage Facilities for slag disposal Expandability Labor Materials Supplies Vulnerability Nearness to other Important facilities CHEMISTS have consider everything from materials supplies to the security problem of vulnerability to atomic attacks in Finding Safe Economical Plant Sites ~ location symposium hears that dispersal for safety in cities of over 100,000 population On the other hand about 30 of all plants warfare can also be cheaper more efficient than centralization established are in towns of 10,000 or less This compares with only 20 of You don't have to sacrifice economic advantages of plant location in order to get security against wartime bombing attacks That's what experts from the National Security Resources Board this week told the American Institute of Chemical Engineers holding a plant- location symposium in New York Al- though aimed specifically at the chemical boys the idea applies pretty well to most basic industries Simple And the idea is simple enough According to R. F. Dimmitt speaking for NSRB it boils down to proper application of the old adage Don't put all your eggs in one basket Here's how it works Draw a three radius around the proposed site That is the area which NSRB figures an improved atomic bomb would damage List every facility within the area which might be of interest to an enemy planner Such facilities might range from plants making highly strategic materials to canals rail yards dams or air bases After this assess the probable role your own plant would play in war production Dimmitt points out that the known amounts of fissionable material are small Thus it is certain that only targets of the highest strategic importance will be subject to atomic attack Areas of less than five sq mi or under 50,000 population would be in danger of such an attack only if they contained highly strategic war plants Four Factors experts are happy about four major factors in plant tion trends today 1 Recent surveys show that more plants are being located in smaller communities Only third of the plants built since 1940 have been located in the plants built before 1940. 2 Management today realizes that often greater efficiency can be obtamed by dispersing operations rather than by expanding indefinitely existing facil ities 3 The increase in mechanization of processes leads to simplification of op- erations This decreases the dependency of manufacturers on local supples of highly skilled labor 4 Another factor favong disper- sion which is just beginning to be noticed is the interest which lending in- stitutions are taking in the strategic safety of plants Other Factors are other more prosaic location factors which have to be taken into account chart above One of these is labor Any industry sup- locating a plant must have a good ply of labor at hand To the chemical 13 1948 48 BUSINESS WEEK Nov Hustling Hustling Hoovers BY THE MILLIONS ro MOVE TRUCKS TRAILERS FACTORY OUTPUT To MOVE the entire output of one of the world's largest electric cleaner factories 6 miles to a railhead might seem like a difficult problem not to The Hoover Company With a fleet of 9 Fruehaufs and 3 Mack truck- tractors to pull them the Canton Ohio has literally the main line factory at North been moved onto Shuttle System Answer Each truck does triple the nine Trailers are duty While some of being loaded at the factory others are unloading at the railhead while the three trucks and remaining Trailers are in transit A further saving results from the fact that each Trailer returning from the railhead is loaded with raw materials for the production lines There's no waste motion in either direction Hear Harrison Wood Interpreter of World Events Sundays 3:00 P.M. S.T. over ABC . The savings in initial equipment and operat- ing cost are really worthwhile The first Fruehauf bought in 1929 in demonstrated ~~~ it so well that more and more units were added - as the company grew Trailers Save Money for Industry ! Trailers are doing a splendid job for industry They link plants put stockpiles on wheels and handle direct deliveries more economically than by any other method Surely it's worth investigating in your case so why not let a Fruehauf man show you how much more productive your trucks can be by coupling them to Trailers World's Largest Builders of Trailers FRUEHAUF TRAILER COMPANY DETROIT 32 LOS ANGELES 11 In Canada Weston Ontario 79 Factory Service Branches Fruehauf Fruehauf Fruehauf Fruehauf ENGINEERED TRANSPORTATION YOU CAN PULL FAR MORE THAN YOU CAN CARRY 5 - aM mae Se 2D Bey, f a te industry however the supply must not only be adequate in numbers It must also be highly intelligent because men will have to be med to operate com- plicated technical equipment fi Water 1 dustry has to take the availability of fuel and power into consideration m loca ing a plant But the chemists have to hunk of another vit factor- water upply For example the Southwest may took like a natural for plant It has chcap fuel available raw materials from potro- potro- leum histone alt and sulphur But then comes the itch for the choke plant Its operatin operatin may need fantastic amounts of cooling water And the water table m ma parts of the South South dangerously west is al~-cady means that even if he low That dug wells the chemical manufacturer night cut .0 deeply into the natural water reserve that he endangers domestic supplies Thus lack of water could tul cit much of the Southwest for certam kinds of chemical plants The most practical alternative which more and more chem ical concerns are taking is to move to the coasts use sea watei for coolmg It's an expensive alternative It means that the chemical manufacturci arust naxe his coolers out of costly metals and alloys that will resist the corrosivcorreosive effects of salt water Pollution problem of natur supply is disposal of waste materials Chemical plants have one of char char which toughest jobs in Finding methods whichwhich are adequate to prevent polluto ^ ItIt takes only small a nounts of such chemcals as phenol to make amazing quan- hitics of water tas e foul Even the at around a plant present a pollution problem Chemical Chemical wastes m the an can be acidic enough to mum Bylon stockings or turn lead based house paint black But what people dislac most is the smell W Faith of Com Products Rcfimr warned the assoon- bled engineers that the public often may be apathetic apathetic to the effects of cor. siv gases from a power plant or ever ca vegetation gases slightly tox to vegtaion vegetation mat become so ughly vegtaion ButBut at fensive odors as to induce legal Taxes and Climate ocal bound to be an important tom 1 x lecting a plant site But perhaps perhaps note apportant is the local political political ame phere Taxes are an m icit m icit on of th"t atmospherc Manx ] ardasta bs found haven bec se the town warts t have moncy making midestis A second grown ^f plant location hts tors are more -thin-thgingss like like ephemeral having in their mipace conditions conditioa ns nd having effect mate These ich sy have ad scal effect profits plant costs and the but the but chat is PardPard to measure Like Like climate for example warn courtruction chinate tends to hold courtruction dova because because pripriant on on cst by by an 50 BUSINESS WEEK ' Nov 13 1948 Laboratory CMS First Vacuum Molecular Still with Centrifugal Evaporator Built as Inexpensive Bench Unit ESEARCH men in universities and in all industries who work with natural and synthetic substances will welcome this new tool CMS 5 It provides the lowest thermal hazard for the distillation of sensitive materials which are fluid above 100 C and whose molecular weights are greater than 200 DPI makes this fine precision unit available at low cost expressly to enable the student and research worker to use the process of molecular distillation in his study of oils resins plasticizers drugs perfumes vitamins sterols fatty acids etc. DISTILLATION PRODUCTS INC eae 739 Ridge Road West Rochester 13 N. Y. Manufacturers of Molecular Stills and Vacuum Equipment Distillers of Soluble Vitamins and Other Concentrates for Science and Industry Send for Free Leaflet ... which gives full description of this complete compact 3 sq ft by 32 high unit and shows how this still can be a useful addition to your present laboratory facilities r at | Distillation Products Inc. | ! 739 Ridge Road West Rochester N. Y. ! | Please send the CMS 5 Bulletin to J i | Name Title | | Company- i | Address City- Lo Zone State | THE MOST USABLE One Man Can Carry It Hang ... Operate It These man hoists are known in factories foundries shops and shipping rooms as lightweight hoists for heavy- duty jobs They weigh only 30 pounds in the ton ton and 300 capacities and 75 pounds in the ton capacity Speed is variable With the hand control bar you can lift lower loads without effort at any speed you re- a quire up to 17 feet per minute Send for - ~ illustrated bulletin KELLER Air Hoists KELLER TOOL COMPANY . 4811 HARBOR STREET Screw Drivers Air Motors & 1 Special Tools Air Hammers GRAND HAVEN MICHIGAN A CONTAINED PNEUMATIC FORGING HAMMER contained motor compressor and hammer in one unit Anti- friction bearings clean gravity construction improved long ram guides are valuable features Its greater forging output is due to heavier anvil construction higher impact speeds and greater rapidity of blows Further details in Bulletin No. 16 CHAMBERSBURG ENGINEERING CO CHAMBERSBURG PA 52 stalled outdoors But if the climate is too hot labor efficiency drops Final Question final big tion Should plants locate near sources of raw materials or near questheir then markets The answer depends on the particular segment of the chemical industry involved Here's how individual chemical indus- trics have answered this particular question according to the experts at the meeting Tough Shipping petrochemicals chemical products derived from natural gas or petroleum have probably grown faster than any other part of the U.S. chemical industry The pattern of re- cent installations highlights the fact that such plants go to the raw materials rather than to the markets The reason is that it is hard to ship such raw materials as natural gas any great distance and have a reliable supply Too often natural gas that has been shipped into an area is cut off from industrial users during cold snaps to satisfy household demands Because of this petrochemical plants have been mushrooming in the South- west That area has a big enough supply of gas to meet demand e Easy Shipping form of petro- leum raw material for chemicals can be shipped readily That is LPG the socalled liquefied petroleum gas which consists mostly of propane and butane It is familiar to most people as a fuel used for years by farmers and other in- habitants in isolated areas Produced mainly in the Southwest LPG 1S shipped all over the country for use as a raw material One of the chemicals that can come from LPG is ethylene glycol The con- sumer knows this as the permanent antifreeze he uses in his car As an il- lustration of the use of LPG in various areas the experts made estimates of manufacturing costs for three locations -Philadelphia Houston and Kansas City The resul indicates that plants could economically supply their own areas but that Houston was best if a national coverage was wanted Drawback is one disadvantage to locating petrochemical plants in the Southwest That is the recent outlawing of basing pricing systems which has raised the cost of building plants far from the steel mills that start the con- struction process That change may increase construction costs in the Southwest by as much as % Hence it may be more econom- ical to build a plant nearer the market and ship the raw materials chem- Unique Chemurgy ical processes which use agricultural mate- products as a basis for their raw lo- rials faces unique problems in plant cation Mainly these are 1 the scasonal nature of agriculture and 2 the fact BUSINESS WEEK Nov. 13 1948 Me BHM rE ney ... with the greatest of ease Jons upon tons of cottonseed fly through the air for distances up to 700 feet in a unique beltless conveyor used in cottonseed oil mills does all the work The seed is moved by a high pressure fan which is gravity fed from a hopper The powerful fan is driven by a hp Wagner Motor . chosen for this application because of its ability to deliver plenty of dependable cost power In industry in stores in homes wherever an electric motor is used a Wagner Motor offers maximum service at minimum cost Wagner Motors have been known for efficiency and dependability for over 55 years Should you need motors for any of thousands of applications or should you need any of the other products made by Wagner . consult the nearest of our 29 branch offices or write to Wagner Electric Corporation 6460 Plymouth Ave. St. Louis 14 Mo. A. ' +5. 2 -o HOW TO SAY / AND MEAN IT 4 A the A sturdy Anchor Chain Link Fence is the only language most trespassers understand It's the surest way to keep your plant safe from all snoopers agitators and troublemakers In addition it enables you to use outdoor space for storage controls traffic in and out of your plant For in- _ formation on exclusive features like DeepDriven Anchors which hold the fence erect in line write today for our illus- -. . trated catalog ANCHOR POST FENCE DIV Anchor Post Products Inc. 6670 _ Eastern Ave. Baltimore 24 Maryland Anchor Fence t that such materials are often perishable Other problems include the high ratio of weight of raw material to weight of finished product and the fact that agricultural products are bulky expensive to ship have large amounts of waste material to dispose of These problems have all pointed in one direction Chemurgy plants should be near the raw material rather than near the market -Meanwhile the Dept. of Agriculture is working hard to overcome the problems themselves It is aiming to cut down the perishability of the agricultural raw materials by either ) im- proving the storage life or 2 cheaply converting the commodity into a stable form for subsequent round processing Either of these methods may give enough weight to other factors so that plant locations could spread out of the farm belt One thing might prevent it Said Faith If everything else were equal whether or not a plant would be lo- cated near the raw material source or near the product market would depend on the ratio of pounds of raw material per pound of product If the ratio were greater than unity the plant would be located near sources of raw material and vice versa . .. .. Practically all ratios in the agricultural process industries are greater than 1.0 and the great majority are over 3.0 It is to be expected then that location of a plant near the source of raw material is usually a must in this industry fiPlastics Near Markets plants will follow the molder according to C. O. Hoyer of Monsanto Chemical Co. The reasons to keep inventories of finished products low to give better customer service to avoid high transportation costs which are increasing because of rising freight rates All this is not without its pains Raw materials costs are 60 to 90 of the finished cost of plastics molding powders and other resin forms Since the raw materials are seldom in the same location as the molding powder consumer there is a high freight bill either way Perhaps the biggest reason for locat- ing near the consumer is the range of products that a plastics resin manufacturer has to put out For instance polystyrene is available today in more than 1,000 colors Monsanto's color labora- tory can match quintillion yes that's quintillion colors shades and hues That means small individual orders small lot manufacturing and it requires small inventories According to Hover plastics customers are usually small organizations sands of them Most of them live on a relatively small inventory basis and depend on the large manufacturer to make quick delivery in limited amounts Therefore nearness to the market and good transportation facilities are vitally important PARK LANE CARBON PAPER TURNS OUT SWELL COPIES ! OF COURSE- COURSE- IT'S MADE BY ROYTYPE ! Non Non smudge That's Park Lane the carbon paper that is specially treated to give better copies cleaner copies Get in a supply today See the differ- ence in the quality of the work turned out in your office Madbey Roytype division of Royal Typewriter Company world's largest manufacturer of typewriters THERE'S A ROYTYPE PRODUCT FOR EVERY BUSINESS MACHINE NEED 54 Minute Camera Set for Market Last week conventioneers at the Photo- graphic Society of America got their first good look at production models of Polaroid's new Land Camera Mar.1'47 Priced at under 100 it's expected to be in dealer's hands within a The camera takes only couple of weeks a minute after the shutter clicks to deliver a finished print It uses a special double film one part of the film looks like an ordinary negative the other like a roll of plain paper Tiny pods of chemicals are concealed in the paper one for each of the eight pictures the When you pull a tab out of the camera film and paper pass between two small roljleellrys which squash the pods The chemical in 10,000 spreads to form a picture / thick This jelly develops the negative and is a makes the positive The finished print sepia that measures 34 by 3 in BUSINESS WEEK Nov 13 19481948 YOU CAN BE SURE wep that Westinghouse Lamps are of the highest quality ee pment YOU CAN BE SURE that you can buy Westinghouse Lamps everywhere and get them promptly AND YOU'LL NEVER DO BUSINESS WITH NICER PEOPLE That's our distributors we're talking about not ourselves Yessir it'd be hard to find a finer group of businessmen In our book they're A for the kind of personal service they give customers And remember they handle a complete line of the best lamps money can buy If you don't know who your distributor is write the nearest Westinghouse Lamp District Office Or Lamp Division Westinghouse Electric Corp. Bloomfield N. J. YOU CAN BE SURE IT'S Westinghouse THE NAME YOU KNOW IN Westinghouse USED AIR RAFT ENGINE OIL - FOR REFINING oe Be I HAVE A U.S. ELECTRIC PLANT 1500 to 7500 WATTS Storms can't shut off your oil burner frozen food won't thaw and you need never be in darkness with a U.S. stand Electric Plant It's cheap insurancel 1500 to 15,000 WATTS In case of high failure a U.S. unit can keep your farm going It operates pumps furnace locker refrigerator milker separator radio etc. 1500 to 140,000 WATTS In many industries the damage caused by just one power failure would justify U.S. and unit pay for a These units prevent spoilage lost production lost profits You'll find U.S. units in vital spots throughout the world For over 30 years United States Motors has been building the World's most complete line of generator units They're noted for their dependability Write or wire stating type of plant in which interested UNITED STATES MOTORS CORP 575 Nebraska St. Oshkosh Wis 56 REFINING PLANT like this one of Worthington Oil Refiners which produces Cost Laundered Lubricants refining of oil is a big business now Air Force points to savings in stocks and operating costs as young industry zooms An old petroleum cliche oil never wears out has become the stock in trade of a growing business icfining of used oil Tried and proved as early as World War I proccssing of crankcase drainings has by now blossomed into a multimillion lar industry Estimates put this year's production at almost million bbl of grade lubricating oil e Saving Measure week at Oklahoma City Air Force engineers from nearby Tinker Field staged their first oil reclamation conference One of its principal aims to talk up conservation and cost advantages of retreaded oil The Air Force explamed how use of the refined product had shaved its operating costs Cost of the laundcied lu- bricants runs around 20 a compared with 75 a gal for new oil Through refining USAF has saved about 23,800 bbl of aviation oil a month 25 of its monthly oil issues in the U. are from refined stock refining means cheaper oil for oil- lubc users The catch is to convince them that retreaded oil is as good as the original Pros and Cons a known fact that oil doesn't deteriorate it just gets contaminated with carbon acids metal particles water and dirt A lot of people maintain that if the oil can be clcaned of all foreign the residue is as good Or users as new -There are even who go all out to say ooff plenty that the BUSINESS WEEK Nov. 13 1948 laundered lubricants are better than new oil They argue that oil in an en- gine gets a secondary refining that is more rigorous than anything commer- practicable cially Wear and engine hicat they think break down mjurious chem- icals that won't come out in normal refining Products of this breakdown areare readily separated in the refining To make sure of quality many fleet operators have their dramings processed on a custom basis Then their oils are treated by the refiner as a separate batch Yields from controlled waste like this often run as high as 90 From mis- cellaneous pickups the average is closer to 70 Some fleet operators have been able to cut the amount of new oil pur- chased by 80 And retreaded oil has cost them about a quarter of what they would have planked down for new lubricants Many petroleum industry spokesmen doubt that reclanned oil is as good as new They point out that most highgrade oils today are additive oils They say that a mixture of crankcase drain- ings is a chemical pourri that the refiner doesn't know what is in the waste he collects thus he can't clean it thoroughly e New Industry experts have been arguing the question a whole new industry has been built up around the refining process It wasn't until the depression that commercial refiners appeared to supply the demand for cheap oil In the last three years the industry has really come into its own Capacity has doubled and new manufacturers are springing up all over the country Installations range from small 750 pot stills which process five gallons in three hours to million plants complete with fractionating towers to handle hundreds of barrels a day refiners get their oil mainly from filling stations They pay anywhere from 1 to a depending on quality and quantity and whether they make their own pickups These waste oils are a mixture of kerosene gasoline and dirt Even so they are less contaminated than the crude oil from which new oil is made That's because the used oil has already been dewaxed in the initial refining process The Process refining today is done in atmospheric today stills- either pots or fractionating towers Once the oil has been collected the process breaks down into six basic steps 1 Removal of solid particles by set- tling whirling filtering or all three 2 Neutralization of acid compounds by treatment with alkalines 3 Washing the oil with water to remove soaps formed in neutralizing 4 Distillation The oil is processed under heat and pressure in a fractionating tower or pot still This drives BUSINESS WEEK Nov. 13 1948 ; z -4 rg eri Allfrom ONE postage meter: For every kind of mail first class airmail special delivery registered postcards ... ... ... booklets publications catalogs post insurance and , special handling charges the exact postage , is provided as needed by the same postage meter The postage meter prints postage plus dated postmark and your own advertisement if you ~ directly on the envelope seals the flap at the same prints on gummed tape for parcel post The meter displaces the adhesive stamp and stamp sticking ... makes postage always available inany .. -value protects postage loss theft misuse . . records postage available and used on _ visible registers speeds mailing saves time effort and usually postage Today virtually every office large or small can afford a postage meter If yours doesn't have one call or write for illustrated booklet You Have ; No Mailing Problems - PITNEY Postage Meter PITNEY Inc. lp 1470 Pacific Street Stamford Conn Originators of the postage meter largest makers of mailing machines Offices in 93 cities in U.S and Canada a"re MOLNJ GUZTOEN 57 off water and produces gasoline fuel oil and lube oils of various weights AT A COST OF ONLY 5 Decolorizing with bleaching clay usually fuller's earth which is immedi- O= TWO CENTS PER atcly removed by filtering 6 Blending the oils to get specified viscosity e New Recently another proc- ADDRESS we will eliminate ... ess came into the picture It employs a new temperature vacuum fractionating tower picture page 56 One of the first refiners to go over to this method was Worthington Oil Refiners 23 of the Bulk of card index metal address plates 10 of the Weight of card index metal address plates 12 of the Cost of card index metal address plates 10 of the Noise in your Addressing Machine Department Inc. Roslyn Va Worthoil starts off we with a dehydration and settling step Then it treats the oil with sulphuric acid to precipitate gums grease and other foreign matter After this the acid com- pounds are neutralized and fuller's earth is mixed in The mixture next goes through a number of passes in the frac- tionating tower Then the temperature And we will double or triple your addressing speed and in- is raised in stages Gasoline kerosene No. 2 fuel oil No. 10 and No. 20 lubri- crease even more than that your speed of preparing address plates And we can bring many other advantages to your addressing department which advantages are described in a little booklet | we would like to send to you Because we are delivering these amazing results six Elliott Factories are very busy ... . cating oil and up are driven off as vapor free of particles The residue a mixture of clay and No. 40 or No. 50 oil is then pressurized through heavy filters to remove clay and other par- ticles This final step accounts for the primary yield No. 40- or No. 50grade oil Who Uses Biggest source of customers for refined oil are the jobbers who peddle it through retailers to the motorist and farmers When it is marked as reclaimed oil it retails at be- tween 10 and 15 a gal Pan American Airways and American Airlines refine a major part of their aircraft crankcase drainings They both use Refinoil units of the pot still type The Air Force has no refining cquipment of its own Their work is done on a contract basis by specified reicfiners The Air Force has put refin- on a nationwide basis The Army is ing getting set to test collection methods over an entire army area e Eyes Meanwhile refiners are keeping one eye open for new mareven to checking the export pic- ture The other eve they've got glued on the 11 million bbl of used oil that annually go down the drain Elliott Factory at Whitman Mass Elliott Factory at Manchester England THE ELLIOTT ADDRESSING MACHINE COMPANY 151 Albany Street Dept. 11 Cambridge 39 Mass 47 Branch Offices in the larger cities 2000 Agents in the smaller cities Esso Distills Fuel From Fluidized Shale a government taking When the U. oil supply finally dries there will be three major sources of u sypnthetic liquid fuels to tap natural gas coal oil shale For some time both pri have vate industry and the been close look at all three very BW Mar 27'48 public- Publicized of the public- conversion ty however has played up of coal and natural gas BW Jan.24'48 , BUSINESS WEEK Nov. 13 1948 ee Se S- Bea Toe a ad Chicken and rice rice pudding shashlik eee or just plain -which is the basic aS food for most of the world's people MUA make rice dish will be improved because of eSPanitf ! Malekizing 5 Malekizing scientifically modifies rice so S that it retains most of its natural nutrients Malekized rice has more than twice the ", " vitamin content of ordinary white rice Malekizing enhances the delicate flavor of rice great to eat all by itself and it's wonderful in place of bread or potatoes Best of all for housewives ae rice is easy to cook kernel is firm Tn and separate It never becomes sticky or gummy like ordinary rice colored in the package Malekized rice turns snowy white and fluffy during cooking The Malekizing Process was perfected by ke General American scientists and food tech- nologists Malekizing equipment fits into sep standard milling operations and can be ore installed in rice mills anywhere It sub- eget stantially increases the whole grain mill Y. yield The first cost of the plant is sur- prisingly low its operation is economical Inquiries are invited Now Available Walton's Malekized WondeRice : produced under license by t Walton Rice Mill Inc. Stuttgart Ark MALEKIZED RICE PROCESS Y GENERAL AMERICAN TRANSPORTATION CORPORATION 135 South LaSalle Street Chicago 90 Magnet fiery tackles | | | | | | || | task eee 7 e e e e OO p21 Despite the work done by the Bu- reau of Mines in its new laboratories and pilot plants distillation of gasoline fuel oil and lubricants from oil shale has gone almost unnoticed Last week Standard Oil Co. New Jersey building a fire under shale research It began applying to shale the fluidized solid technique that it used to get the most out of cat- alysts in cracking Work got under way at Esso Laboratories Baton Rouge pilot plant where the process was ongmally developed for cracking oil shale was furnished by the Bureau of Mines deposit at Rifle Col. Experimental Stage first of all pulverizes the shale blows steam or gas through it In this fluidized state shale particles ciculate easily The proc- ess requires two vessels In No. 1 the shale is heated to 900 F which knocks out oil molecules in the form of vapors these can be distilled into gasoline fuel oil lubricants Some of the decomposed shale is transferred by air stream to No 2 vessel where the carbon is burned out This supplies the heat needed for breaking down the shale in No. 1 But don't get your hopes up too high cautions Standard Oil Development Corp. which has charge of the research There's a long way to go before oil from shale can compete economically with crude oil PRODUCTION BRIEFS ATSUP vinegar soft drinks - bottles by the mil- ~ lion are made in iron molds But handling these molds while they are 1000 degrees hot is a major foundry problem After pouring they must be moved quickly because cooling off ties up floor space In the past two men maneuvered tongs around hot castings to load them into wheelbarrows - slow costly work Today an Ohio lifting magnet does the entire job faster in one operation Suspended from a small overhead crane the magnet travels above the line of castings Its powerful magnetic field pulls hot castings out of the sand quickly grips and transports them to cooling off areas 60 ' Another job completed in magnetminutes instead of costly hours And another example of why you should investigate Ohio lifting and separation magnets today Write to Ohio - 25 years a leader in magnet- ic materials handling and separation The Ohio Electric Mfg Co. 5920 Maurice Avenue Cleveland Ohio Ohio is also leading name in the small motor industry ohio MAGNETS TWO FERROXCUBE magnetic ferrite materials mixed crystals of metallic oxides and iron oxide have been patented by Phillips Laboratories Will mean a re- duction in the size of inductors transformers and other electrical equipment says Phillips GERMAN OXYGEN PRODUCTION 1S Sur- veyed in a new Commerce Dept. report PB 88840 Covers equipment and processes WARTIME RESEARCH has had a peace- time payoff for International Nickel International can now turn scamless tubes and pipes which are more twice as large as prewar sizes than G.E. RESEARCH GRANTS College gradu- ates who want to go on with scientific and industrial studies can apply now for 1949-50 awards up to 1,500 a year Money comes from G.E.'s million education fund MECHANICAL ENGINEERS will pitch camp m New York 28 to Dec. 3 foi their 69th annual conclave The Ame~-- ican Society of Mechanical Engineers has scheduled 72 technical sessions BUSINESS WEEK Nov. 13 1948 Sitting Pretty Your factory would be too if it were located in the Southland For if there was ever a place formed and fashioned for sound industrial growth it is the South Wherever you ... wherever you look ... your imagination will be stirred by evidences of great natural resources of pro- gressiveness of confidence in the future No wonder new factories are arriving almost daily and old ones are expanding all along the 8,000 Southern Railway System And they're all sitting pretty in this amazing industrial opportunity Look Ahead Look South President SOUTHERN RAILWAY SYSTEM The Southern Serves the South The Douglas Fir How much plywood is being ; manufactured today os In 1948 outpuotf the Douglas fir plywood industry will exceed 2,000,000,000 square feet -an time record Here's a comparison with recent years ; 1938 .. 650,000,000 sq ft 1945 0... 1,175,000,000 " 1946 1,390,000,000 . 1947 a 1,620,000,000 " 1948 2,000,000,000 " Where plywood Where plywood going Almost To every state in the nation Almost all fir plywoodis used in the United States WWhhaat t is is tthhee distribution distributidon istrdistriibutionbution ? pattern ~7 54 { Plywood Manufacturers 100 . | a I at a: fF Army Direct 5.0 Wholesale Distributors 68.8 | Export 0.8 _ Industrials Etc. 15.7 Unidentified 3.3 - 6.4 46.7 ~~ se | Retail Lumber Dealers 53.1 |_ Industr& iOtahelr 22.1 ae Builders Cabinet Shops | Home Hobbyists T Craftsmen T |Remodeling| FarmersStores Signs Displays Cut Uses Miscelanous Miscellaneous Why wholesale distributors Fir plywood is manufactured in one corner of the nation marketed throughout the 48 states { Distributors perform many functions tain stocks assume credit risks supply the nation's 25,000 lumber dealers and thousands of industrial users who find this modern miracle wood vital in the manufacture of their products Why lumber dealers Lumber dealers supply contractors carpenters cabinet shops owners builders farmers sign and display shops amateur crafts- men and many other users In 1948 lumber ' dealers are handling 1,062,000,000 ft of plywood with a large percentage of this going into new and remodeled homes industrial What about industrialindustrial users? Historically important plywood customers- largely using grades thicknesses and sizes not ordinarily handled by retail industrials about 15 of fir plywood production direct from manufacturers and additional quantities from distributors and dealers Included in this group of users are railroad car shops truck builders door factories furniture manufac- turers prefabricators boat builders etc. Why is plywood demand so great Wood Plywood is literally The of 1000 Uses It is used in houses garages industrial build- in ings gs in barns , silos , rowboats yachtsyachts, tuna clippers for signs tables concrete forms track shims The list is long constantly growing For Plywood's many unique advantages make it - one of the most versatile of all building ma- terials Plywood is engineered woord eal wood in large rigid laminated panels ... light strong puncture proof ... durable easily worked either with hand tools or power The complete allocation allocation ofplywood for war- for use in PT boats aircraft engine crates barracks pontons and thousands of other items - created a tremendous back Today's high economic tempo plus that back puts total demand at an unprecedented level Is productive capacity being expanded Yes Here's the picture 1938. 1938. 21 factories 1941 31 1945 " 31 37 1947 . 35 " 1948 42 " - 11 factories being built about 1 Plywood DOUGLAS FIR PLYWOOD Large Light Strong Real Wood Panels Is plywood as good today as prewar " It is better Performance requirements set forth - the new U.S. Commercial Standard CS45-48 effective Nov. 1 are the most rigid ever specified This applies both to Exterior waterproof bond and Interior Are plywood grades the same as prewar Yes res manp y ree spec cts t Furts her addi- tional appearance grades of both Exterior and Interior types have been developed to meet specific needs and for highest utilization of Praw material For efficient production and use _ several sizes are offered new simplifiedA . grade identification hasbeen adopted The most versatile of all plywood grades is the one side having one face suitable for fine finishing Manufacturers are turning out 66 of production in this material ~ Why are prices higher than prewar _ Prices for plywood at the factory are set the individual manufacturer reflecting individual operations determined his costs - - Raw material logs and labor account for some 80 of production costs Wage rates I have more than doubled since 1941. Log costs have about tripled Did the war disrupt distribution Greatly Through 100 WPB allocation for many years through changes in population ratios business activity ratios plywood use ratios What has happened postwar After wartime allocation plywood was allocated to veterans housing in 1946 and 1947. Allocation in many instances upset historical patterns of plywood distribution The results of abrupt changes under allocation are not immediately neutralized During the war too many individuals and firms became fully acquainted with plywood's outstanding advantages and are now using plywood in greater and greater quantities This created new customers new demands What's ahead in fir plywood Continued increased production with a higher proportion of Exterior waterproof -the purpose material for siding farm uses marine uses and countless other outdoor applications Continued conservation of the natural re- through higher raw material utilization the production of grades for specific uses the manufacture of several standard panel sizes tailored to economical use and production Further development of new products such as overlaid plywood extra panels and the manufacture ofplywood from woods other than Douglas fir Continued sale of a high proportion of production through distributors and dealand continued supplying ofindustrials time important plywood users Constant betterment of product through research and testing higher performance standards for both Exterior and pointing to greater . plywood usefulness FACTS NEW 1. PLYWOOD BOOKLETBSOOKLETS FOR YOU ABOUT DOUGLAS DOUGLASDOUGLAS FIR PLYcoWvOerOedD detailed discussion ofof points above 2. THE WOOD OF of plywood's Pictorial review Covering types grades CS45-48 Covering 3. Covering USES versatility versatility COMMERCIAL STANCDSAR4D5-4pe8 rform- sizes and perform- | DOUGLAS WASHINGTON anceance requirements PLYWOODPLYWOOD ASSOCIATION | Write to FIRFIR WASHINGTON WHAT DOES IT COST YOU TO MOVE MATERIALS OVER 200 FEET NEW PRODUCTS Trackless Train *s hauls equivalent of 8-10 truck loads Mercury Trackless Train * | Speeds MORE Tonnage at LOWER Cost @ Hauls every ton wherever material for .... travels movement dictates Works as a cost reduction team with your fork relieving them of LONG HAUL transporting them to handle and stack Ask Mercury Sales Engineer to call Or request Catalog No. 7-11 Tractor hauls Trailers to des- tination tination Construction Cannon Powder Tool Corp. has put some light artillery into a device to drive studs into concrete or steel By using a caliber cartridge in the tool the com- pany says it can pack a ton wallop into the driving action That means you can blast the studs through 3 in of concrete or through in of steel When you want to anchor conduits to walls or to attach metal roofing and siding here's what you do 1 Insert the stud and powder cartridge in the barrel of the tool 2 screw the barrel 3 . into place 3 set the tool against the . surface where you want the stud and 4 turn a safety ring The tool fires when it's forced against the face of the work designed Powder has designed special studs to go along with the tool They have a thin flange at the top of the head which 1 holds the stud in the barrel 2 confines the explosion until enough pressure is built up to shear the flange off the head This gives added driving power The tool can't fire accidentally when it does go off it has almost no recoil The caliber model weighs around 8 lb a junior edition a caliber job 3 lb. The manufacturer's address S. W. Wood St. Portland Ore Availability immediate 4146 S. Halsted Street Chicago 9 Illinois TRACTORS TRAILERS LIFT TRUCKS Foam Rubber Piecer A special cutter tool for the foamand sponge industries come off the lines at Stanley Electric Tools New Britain Conn The portable electric cutter oper- ates on either a.c or d.c. You can use it to cut rubber that's up to 4 in thick following either a curved pattern or a straight line Depending on thickness you can slice the stuff at speeds up to 30 ft a min Motor housing of the tool is a lightweight aluminum casting The notched blades that do the cutting are made of alloy steel 'Availability unmediate Lead Detective In the manufacture of lead com- pounds production men have to keep a constant check on the amount of the stuff that escapes into the air much gets loose it's bound to toxic effect on workers If too have a Engineers at E. I. du Pont de Nemmours & Co. have been working on the problem Now they say they have found a device that will detect lead in the air in amounts as low as one part in 20 million That's about as much as you'd get if you ground up a BB shot and dispersed it in about 500,000 cu ft of air The instrument is a mobile job that can be wheeled around the plant to make regular air inspections Air is drawn into it through a tube passes over an electrical spark in such a way that it gives off light This light is then broken up in a quartz spectrograph Each of the metals that are present in the air produces a different color of light Lead gives off an violet light it shows up as a narrow band in one particular spot the spectrum Light from this part of the spectrum is then passed through a photoelectric Geiger counter where it produces a pulsating 64 BUSINESS WEEK Nov. 13 1948 R EGARDLESS of size your plant equipment is an important investment It's an investment that deserves special care and feeding For example it's not unusual for operators of the big babies like this mammoth diesel above to put them on special formula diets for protection When this happens the services of a seasoned lubrica- tion engineer are helpful Cities Service lubrication engineers are thoroughly grounded in min- ute lubrication techniques on diesel engines They know what proper types and grades of oils greases and fuels will best meet your individual requirements At absolutely no obligation to you a Cities Service lubrication engineer will make a thorough spot analysis of your lu- brication requirements His recommenda- tions may substantially reduce your opera- tion and maintenance costs Write Cities Service Oil Company Room 256 Sixty Wall Tower New York N. : We have a new 66 page booklet entitled Diesel Engine Lubrication This complete lubrication manual is yours for the asking CITIES A SERVICE QUALITY PETROLEUM PRODUCTS current of electricity By measuring the strength of this current you're able to find the intensity of the light and turn the amount of lead in the air Although the device has been tried only for lead du Pont expects it can be adapted to detect other toxic metals North American Phillips Co. Inc. 100 E. 42nd St. New manufacture York is handling the fiAvailability on order from Phillips A50 A50 cotton fiber paper Resolute Ledger is rugged It withstands heavy use has good writing and erasing qualities and is an excellent moderately priced paper for machine bookkeeping and other permanent records of moderate importance as inventory payroll production and social security These famous names identify the papers manufactured by the Neenah Paper Company The name Neenah appears in each watermark to identify the genuine for your protection OLD COUNCIL TREE BOND SUCCESS BOND CHIEFTAIN BOND NEENAH BOND NEENAH THIN PAPERS TUDOR LEDGER STONEWALL LEDGER RESOLUTE LEDGER NEENAH LEDGER NEENAH INDEX BRISTOL COMPANY NEENAH PAPER erenggantian ERR SL ini a Ro me 66 WIS NEENAH Auto Operating Table The bigger and broader models that carmakers are putting out these days haven't made the handling problem in repair shops any easier Everytime a body section is removed for roughing - or finishing workers get set for atleast a mild wrestling act Blackhawk Mfg Co. Milwaukee 1 thinks it's found a device that may be of some help The Reck will take any body section up to about 6 ft wide and 9 ft long hold it tightly in place while the roughing or finishing is done Four adjustable bars with clamps are designed to grip parts of any shape Height of the rack can be varied froin 30 in to 41 in immediate to suit the particular job you have to do Availability immediate to 30 days Round Dictator If you're bothered by having to change records in the muddle of a dictation session Miles Reproducer Co. Inc. can sell you a couple of recorders that should keep pace with your longest talkfest One model the HM will run continuously for an hour the other the CMT goes on for 24 hours without a rewind Both machines cut her sound tracks on film The sound of your voice con- trols their stopping and starting Automatic volume control on the speaker pickup makes it possible for you to move around the room while you're dic- BUSINESS WEEK Nov. 13 1948 That's my traveling secretary new a Electronic MASTER YOU CAN FLIP OPEN the traveling case turn a hotel room into an office All you have to do is take out the trim com- pact sturdy MASTER revolutionary new office oo dictating machine With this versatile machine by your side and the small electronic mike your hand you can dictate as usual wherever you go And you can mail your recordings back to the office at once That's because the electronic MASTER records on a small flexible plastic just the right size for your business envelope Five of these handy Memobelts- hour and a quarter recording be mailed in a standard small envelope under a 3 stamp MASTER gives better recordings uniform tonal quality and uniform backspacing first word to last Your secretary will agrefe or around convenience plus perfect voice there's no dictating machine to compare with the Dictaphone MASTER It's completely new completely different completely satisfying FOR A DEMONSTRATION of the new MASTER Model simply call your local Dictaphone representative or fill in the coupon below Dictation done Twelve of these small Memobelts will nest into your billfold Five of them will tuck into your regular business envelope And these superior Memobelt recordings can be mailed in a regulation mail chute DICTAPHONE Electronic Dictation ae ae aed 7 7 I Dictaphone Corporation I Department 12 420 Lexington Ave. V. Y. C. L] Please show me the new MASTER I LI Please send MASTER literature 1 | Your Name | Company | Street Address I 1 City & Zone State Fiche tating it picks up your voice even when you're 25 ft away On the HM model you can rewind to any part of the film in a matter of a few seconds The CMT the 24 job works on a continuous loop twisted so that recording is done on both sides of the film Depending on the width of your film 8 mm o 16 mm you can record 35 or 100 tracks on each side Miles also has a group system_that system_that lets several men use the same machine The desk unit for this network hookup looks like a name sign It holds a micro- phone an off switch and an induction telephone pickup It's connected to recorders in a central battery Miles is at 812 Broadway New York 3 @ Availability immediate t boo -.. Gets out order along about three or four o'clock every afternoon Doesn't stop running entirely just slows down ane . Fatigue they call ... fatigue brought on by eyestrain ma sane brought on by bad lighting Wakefield ALL Lighting is the one essential business tool you can't afford to be without if you want top efficiency from all your other business tools - Wakefield ALL Lighting is a basic business tool that cuts errors speeds production reduces absenteeism lowers employee turnover raises employee morale Piece Goods Handler Wakefield Over Lighting is engineered to fit the task no matter what that task is in office drafting room store and school Bad lighting is bad business For enlightenment on what good lighting will do for you write to The F. W. Wakefield Brass Company Vermilion Ohio Maybe you've watched someone try to get a particular roll of piece goods out of a bin Then you know how much pulling lifting and tugging it takes to get the roll out when it's in the middle 01 on the bottom of the stack Cutting Room Appliances Corp. 45 W. 25th St. New York 10 thinks it has found a device that will take most of the grunt and groan out of the job Its Out is a lightweight handling tool that can be slipped into the end ten Wakefield Over ALL Lighting of the tube of the roll of goods When ne you start pulling with the spring- WAKEFIELD equipped handle notched chrome For Office Drafting Room + Store and School A BASIC BUSINESS TOOL grippers bite into the inside of the tube ne Thus you have a solid grip that makes nt the job of sliding the roll out of the np stack a fairly simple one cecum WN C. R. A. feels the device will be a rs ~ BUSINESS WEEK @ sctowinrs BAI pe cuk as entdr where ag ete a Firestone Tires are made The reason for Worthington air conditioningin many of the buildings of Firestone Tire and Rubber Company is for employee effi- ciency . . . in your case it may be the same more sales low- cost maintenance In any case Worthington's complete including all the vital components of an air conditioning system gives you your best opportunity for an application exactly suiting your needs Each machine is built to the same standard of quality and to oper- ate in balance with interrelated machines Result smoother quieter lower operation and longer life Further Worthington's overyear experience in manufacturing air conditioning equipment is balanced by the engineering experience of selected distributors Locate the one nearest you in Classified Telephone Book and find out why there's more worth in Worthington Worthington Pump and Machinery Corporation Air Conditioning and Refrigeration Division Harrison N. J. Worthington makes more of the vital innards -compressors condensers engines turbines pumps any other one manufacturer WORTHINGTON =D(e A == big timesaver for mills converters jobbers and retail and department stores Availability immediate * - . 4 . a i 2 eel A white wool rope oil wick A is wrapped around the spool bearing hub several times The oil is held in suspension and fed to the shaft through the oil pick window in the heavy bronze bushing Oil in the oversize reservoir C thoroughly saturates the circular wick surrounding the bearing and reduces the amount of free inactive oil No more failures due to the wick not making shaft contact LINE's around wick is always in contact with the rotating shaft A liquid steel cover D allows greater capacity in less space and keeps the bearing free from dust and abrasives Operating efficiency of LINE sleevebearing motors is greatly increased by this new design LINE is far in front with many such motor improvements When selecting a motor for your application don't just buy a motor buy LINE and get the very best ACCESSIBLE OILER 50 MORE OIL CAPACITY ~ CONSTANT 1 LUBRICATION { f MEASURED QUANTITY SMOOTHER OPERATION ss application industry ... the farm and in the home Write for Descriptive Bulletin 5000A on Repulsion Capacitor Squirrel Cage D. C. and Gear- motors Call your local LINE representative for further information | 70 DAYTON , OHIO District Offices in Principal Cities Radiant Glass Drier Glass heating panels have cropped up in a new appliance at Continental Radiant Glass Heating Corp. The panels which have been getting a promotional ide as house heaters have been built into a plug electric clothes drier The drier has two 16 x 24 glass panels mounted on its bottom The radiant heat is generated in aluminumalloy ribbons which are fused into the glass There are no moving parts The wash hangs on stainless steel rods in the top of the unit you have about as much drying space as you get on a 60 clothes line The drier works on 110-220 v a.c. or d.c. It draws about 11 amp at the start cuts this to 7 or 8 amp after it reaches correct drying temperature Continental says it dries a 10 wash in roughly the time it would take you to iron it The manufacturer's address 521 5th Ave. New York 17 e Availability 30 days S. - A folding glass for convertible automobile tops is being turned out at Pittsburgh Plate Glass Co. The glass used in the rear window sandwiches like an accordion when you put the top down Bookkeeping system marketed by Thomas Pearce Co. does away with the ledger substitutes a combined ledger statement You post from an purpose cash and general journal sheet The ledger statement gives you 1 a per- manent ledger record 2 a trial balance 3 a statement of profit and loss and a balance sheet both monthly and cu mulative Pearce's address 833 Tatnall St. Wilmington 43 Del BUSINESS WEEK Nov. 13 1948 nee Beene eal TO THE SIX MEN INTERESTED IN CUTTING COSTS AND INCREASING PROFITS MR PRESIDENT MR SALES MANAGER MR COST ACCOUNTANT MR TRAFFIC MGR MR EXPORT MGR You can meet the challenge of a Buyers Market with aN From the speed and dependability of The speed of air travel permits your The speed of air mail will increase the operation American's Airfreight stem specific ad- salesmen and other traveling personnel tempo of your entire business faster turnover and increased to go more places more cover The complete routine of receiving orders vantages expediting Me volume wider distribution with lower more ground in less make more deliveries sending out bill- distribution smaller inventories calls more sales tremendous sav- ings and receiving payments is speeded si -with less loss through spoilage and ings in man hours American's lowest- up All bookkeeping is kept the- with a minimum of warehousing re- fare policy makes air travel costs re- travel minute And you can get out detailed field instructions more quickly and com- quirements Get merchandise to market markably low Time saved in pletely than ever before when it's wanted Airfreight means money savings too YOU CAN'T AFFORD AN EARTHBOUND BUSINESS Check what American's Airconomy Plan does Quickens turnover smaller inventories Averts disastrous reduces seasonal risks Makes orders keeps field stocks fresh HelHelps ps open new markets expand old ones Cuts warehouse reduces losses in transit Speeds up distribution frees more capital Permits productive personnel to cover more ground Increases personal contacts Saves precious hours Shortens pa to yme to nt periperiodod Gets field instructions out faster Streamlines month bookkeeping AMERICAN AIRLINES | American Airlines Inc. | American Airlines Department M | i 100 East 42nd Street New York 17 N. Y. | GENTLEMEN We are interested in your | | AIRCONOMY PLAN and would like to find | l out how it applies to our business j - ] j NAME OF FIRM ! - j H NAME OF INDIVIDUAL i ADDRESS TYPE OF BUSINESS Re Ce rt ce ee ee ee ee ee re ee ee me ome ee 2 Freight sorting depot in Manhattan is one of New York Port Shippers have a central distribution point for incoming and Authority's important expediting projects In it . . tee outgoing shipments Here parcels are weighed sorted then ee pte ea Le ane6,0 nT A ters Re 3 4 _ Tractor trains haul parcels to outgoing shipping platforms where they are picked up by Railroader's trucks All platforms are recessed into building to avoid blocking street traffic Public Authority Guides New York Traffic A government agency that pays its own way Authority rates high as a private business It's pushing public works private trade like the huge International Airport on Long Island private This blend of the private and public Last week some Cleveland business- men were puzzled The Port of New York Authority had just set up a trade promotion office there Clevelanders wondered why a government body like the Port Authority which builds and operates tunnels bridges and freight terminals should be interested in promoting New York's commerce as well H alf fact is that the Port Authority is more than a government institution It is partly a private business corporation too It gets no Instead it charges tolls for the use of its facilities like any private business Through its union railroad terminal pictures above last year passed some 112,000 tons of rail freight all in lesscarload lots That's not a very large figure But it's just one part of the sprawling job that the Port Authority as a public private corporation does So the more business the Authority can bring to New York the more money it makes Of course this money doesn't go into private hands it helps stamps everything the Port Authority does It is a sort of Chamber of Commerce for the port region acting as a moderator in local disputes and serving as the New York area's outside representative This week for instance it was lobbying at the federal Budget Bureau for more federal money to deep- en New York's waterways How It When the Authority was established in 1921 it was the first such institution in the U. S. The fed- eral Tennessee Valley Authority and many local port and housing authorities all owe much to this one This does not government money can't tax anybody to strengthen the Port's other projects mean all authorities are identical or geese 72 BUSINESS WEEK Nov. 13 1948 even similar Problems and objectives differ widely The Port of New York Authority was started because the communities served by New York harbor finally realized that it was better busmess to work together than try to cut each other's throat What convinced them raphy of the case was the geog- The states of New York and New Jersey meet along a huge harbor area Along eight bays four rivers and four straits are 650 mi of waterfront New York City and the cities on the New Jersey shore had been having trouble with each other for a century D issension railroad freight for New York City was unloaded in New Jersey rail terminals on the New Jersey shore then it was carried across the harbor by lighter to railroad piers in New York City This service was in- cluded in the freight rates from western points to New York And these rates City were the same for northern New Jersey cities as they were for New York New Jersey businessmen felt that this gave their New York competitors an unfair advantage So they tried to get their own freight rates lowered Their attempt finally led to the New York Harbor case of 1917. This proved an expensive lawsuit that put both parties in the mood to compromise on a port treaty of peace Peace states of New York and New Jersey made such a treaty They promised each other that they would act in harbor matters through a joint agency In future this agency would handle planning and development of public terminal and transportation facil- ities The agency that developed out of the Port Treaty of 1921 is nonpolitical For that reason it is able to take a regional approach Its commissioners are appointed by the two state governors they serve without pay Salaries of its permanent staff are higher than for most public agencies The Authority soon worked out a comprehensive plan for unifying the railfreight facilities of the port But that very plan has never progressed son It concerns interstate far Reacommerce and the Authority has never been able to get the Interstate Commerce Com- mission and the railroads to see things its way Nor has New York City ac- cepted a much more recent proposal to operate and modernize its aging munic- p40 ipal docks May29'48 e Setup the same the has become essential to the Authority economic health of the world's largest metro- politan area Besides that its bonds en- joy a Moody's A rating The reasons 1 The high caliber of the businessmen who have served as Authority commis- sioners and 2 the automobile Most of the Authority commissioners BUSINESS WEEK Nov. 13 1948 us ff ba, FORT WAYNE TEAMWORK CREATES CREATES CREATES CREATES CREATES QUALITY QUALITY QUALITY QUALITY QUALITY For each shipper's product a corrugated container right This that's exactly right This goal Fort Wayne Corrugated Paper Company has ever had in sight for its customers through 40 years of container making It's a goal attained through experienced heads t 1 teamw teamwork- o conr sik ste- nt teamwork that ordinates the Moe aan , specialized skills of Fort Wayne experts and integrates the operations te _} of four modern fabricating plants and two productive teamwork oo paperboard mills This teamwork creates quality Through every ' manufacturing step from raw material selection to final container fabrication Fort Wayne controls quality ; and uniformity of productiofonr individualized service ne errnnninnnrens to the shippers of America aL CORRUGATED FIBRE BOXES i . CORRUGATED PAPER PRODUCTS iy Ep . . 4 Wayne Wayne CORRUGATED PAPER COMPANY General Offices Fort Wayne 1 Indiana Plants . Rochester New York Chicago Illinois Pen sylvania Pittsburgh Pennsylvania Hartford City Indiana Mill Vincennes Indiana Affiliate Southern Paperboard Corporation Port Wentworth Georgia Sales Offices Chicago Ill Detroit Mich Buffalo N. Y. Jamestown N. Y. New York N. Y. Rochester N. Y. Syracuse N. Y. Cincinnati Ohio Cleveland Ohio Dayton Ohio Lima Ohio Newark Ohio Indianapolis Ind Muncie Ind Pittsburgh Penna York Penna 73 3 a HERE ... the industrial weather vane -. always pointisn a favorable direction oO Industrial trade winds blow steadily toward Connecticut Here is a strategic location for a manufacturHeerre is a vast transportation web which reaches out to huge nearby markets and sources of finished materials Here are skilled workmen who assure high productivity and get along well with management In compact versatile Connecticut is to be found 75 of all types of American industry Write to Connecticut Development Commission Department WB6 State Office Building Hartford 15 Connecticut for information on the special advantages Connecticut offers your type of industry This service is free! have been businessmen They have taken a broad view of the needs of the port The fact that commissioners don't get any money for their work has douc a lot to keep the Authority out of politics Present Port Authority chairman is Howard S. Cullman a tobacco man who has served as commissioner for more than twenty years Other com- missioners S. Sloan Colt president Bankers Trust Co. of New York Bay- ard F. Pope chairman Marine Midland Corp. Land Traffic bridges and tun- nels built and run by the Authority have done a good deal to join the states of New York and New Jersey into one huge business area The Authority began by building bridges between Staten Island and New Jerscy it went on to build George Washington Bridge and the Lincoln Tunnel took over operation of the Holland Tunnel It has built a grain terminal in Brooklyn and the union railroad terminal It is operating thru large airports in the New York area Problems this activity problem has brought with it a hefty traffic problem The Authority is now on the way to solving this one It is putting up two motortruck term nals in Newark and one in Manhattan Their setup will be much like that of the Manhattan union freight terminal These will act as post offices for road freight Daily capacity of the two terminals will be 4,500 tons In addition the Authority has a union bus terminal under way on the west side of midtown Manhattan This terminal will keep intercity buses off New York streets All three terminals are expected to cut traffic congestion save time and freight costs Airports Authority has also launched a range program of airport development It is operating La Guardia Field and New York Inter- national Airport on Long Island on 50year leases from New York City International Airport will be nine times as big as La Guardia when completed The Authority operates Newark Airport on a similar arrangement with the city of Newark It has contracted to buy the privately owned Teterboro Air Ter- minal in New Jersey 'Outlay its start the Port Auth- ority has built or has started about 300- million worth of supporting public works In the early days it had a little trouble explaining to investors just what it was and why they should loan it money Since then it has sold about million in revenue bonds on its own credit including refunding of its original issues Besides all this the Authority spent about 435,000 last year in port plan- ning and development This included 1 Studies of airports waterways dock BUSINESS WEEK Nov. 13 1948 How Battery Maker conditions and problems of mass trans- pern portation 2 appearances on behalf of ee the New York region before ICC Mari- a OES time Commission and other federal ge A Cut Lumber Handling antea agencies 3 establishment of an office in Chicago for promoting business in the port of New York Now it has tatoee 8 Costs 65 Acme Steelstrap and Load Band enable Exide firm to save 7.40 per 1,000 board offices in Cleveland and Washington * Port Payoff oceo New Orleans stays under -- business management as voters beat amendment giving gover- nor complete control of port In the past few years the Port of New Orleans has built up its business that so? faster than almost any other port in the country 28'47 Rc- eyes sponsible for it was a hitting sales + campaign put on by the area's business- a TR jerk men They felt that this record proved TATE it was better to have businessmen do the Eee A fork truck operator at the job than politicians Exide plant stacks bundles of Threat Gov. Earl K. Long aoe lumber firmly held together with 11/4 bands of Acme Steelstrap Bundles can be easily and came to power in Louisiana He sponsored a constitutional amendment quickly moved from here to production lines which would have put complete control of the bustling port into his hands this Securely bound with Acme Unit- < . Bands a car of lumber . arrives at the Exide plant The load consists of 27 easy Businessmen were horrified to them this was a power grab which would ruin the port by making it a political handle bundles football The port now produces 70 of bea every income dollar in New Orleans er a: makers ul pany of Philadelphia famous Exide Battery - feet handled and was achieved de- ~ of the spite additional loading charges at decided that _ the mills Company now specifies ~ With politicians in control they figured it could never keep up such a performance So the businessmen put on another campaign to convince the the process of unloading lumber from - boxcars board by board was too slow shipment by Load methods on every purchase order people they shouldn't vote for the amendment in the November election and too costly __- - After a survey by an Acme Ship- _ ping Specialist they asked their sup- pliers to ship them crating lumber strapped in bundles Bound to get there with Acme Steelstrap Then the bundles were loaded onto flat- cars and held firmly together with Acme Load Band The result was a reduction in costs of fully % Two men and a fork truck took only 8 minutes per 1,000 boardfeet to unload the lumber and move it to storage Moving bundles out of storage proved to be just as fast The saving amounted to 7.40 for every 1,000 board- ... Why not find out what Acme Steel- strap and Load methods can do for your business An Acme Shipping Specialist will gladly make an analy- sis for you without cost or obligation For further information mail the coupon below STRAPPING DIVISION ACME STEEL COMPANY SP OSHHOHHOHHOHEHOOEOHOHOOHOEOOOE e e Acme Steel Company Dept. BW e 2838 Archer Avenue Chicago 8 Illinois e Please send me a free copy of your booklet D4 SAVINGS IN SHIPPING e 26 Name e b Company_ e bd Address e @ City e Zone_ State_ ym any ACME STEEL CO CHICAGO NEW YORK 17 ATLANTA CHICAGO 8 LOS ANGELES 11 Long Defeated campaign paid off Last week the amendment was beaten by just under 20,000 votes New Orleans itself rolled up a big 40,000 plurality against it Baton Rouge and the other big cities added up a majority too big for the rural vote to overcome The spadework for this victory was done by a Committee to Save the Port of New Orleans It was organized last summer largely through the efforts of Charles Nutter managing director of International House Its roster included thirty business and civic organizations Among them International House the Louisiana Junior Chamber of Commerce Assn New Orleans Steamship Assn New Orleans Clearing House Young Men's Business Club New Or- leans Assn of Commerce constitu- Difference a 1940 constitu- tional amendment the Board of Com- missioners of the Port of New Orleans has five members serving year terms They are picked from three nominations submitted by each of five board business groups in the city The pulls these down to three sends their 76 BUSINESS WEEK Nov. 13 1948 names to the governor He of them to fill a vacancy picks one Amendment No. 3 which was de- feated last week would have wound up the terms of the present board and set up a new board of seven Three of these seven would have been picked the old way the other four majority the governor e Immediately after the leg- islature put this measure on the ballot last July Nutter began forming his Committee to Save the Port of New Orleans Its work was thorough and effective It ran advertisements in every Louisiana paper including the weeklies The ads pointed out that much of the state's income comes from the Port of New Orleans They showed relative ton- figures under nage and dollar a political setup prevailing before 1940 and under management since Speaking engagements for committee members were lined up before groups in every town in the state The com- mittee followed through with radio time when speakers drummed home the ad- vantages of business management of one of the state's prime assets H eading the committee was Lloyd Cobb New Orleans attorney and head of an upstate potato packing firm He was picked to lead the fight because having no direct tie with the Port he was recognized statewide a a disinterested citizen The reciprocating principle of the PALMER GENERAL PURPOSE Continuous Motion CAR- _ squarer cartons sealed with sealing time with greater higher speeds smoothly x your packaging i waste and change change ie of stronger nine times the efficiency can no longer to ignore the sa1 les aadvadntagve antage that this lutionary PALMER equipment economi- cally available to you in higher quality pack- and low cost production 3 i . eM Lamplighter's Dream This streetlamp a new product of General Electric practically thinks for itself Its brain is an electronic eye the cover of which is being removed by Art Bjontegaard G.E. engineer The eye flicks the circuit switch at the first touch of dusk snaps it off at the first break of dawn The units are mounted on individual lights which can come on one at a time as needed BUSINESS WEEK Nov. 13 1948 528 N. WESTERN CH 3-3344 ~ 210 MISSISSIPPI FRANK D. PALMER Inc. AVE CHICAGO 12 ; 60 E. 42ND ST NEW YORK 17 -. Western Representatives PETER D. STREET e BOWLEY HE mlock & ASSOCIATES 1-8162 Cd VA 6-4185 6 SAN FRANCISCO 10 PACKAGING MACHINERY MANUFACTURERS 77 OF INDUSTRIAL OPPORTUNITY Along the Mississippi Gulf Coast's 80 miles of shoreline exist unusual industrial opportunities Your plant can be side - with direct transportation facilities to anywhere in the nation or the world Labor is intelligent trained and friendly Present industries include shipbuilding seafood processing small boat construction tung oil processing chemicals and a wide variety of other types of manufacturing Investigate the industrial dispersion advantages of the Mississippi Gulf Coast Write the Chambers of Commerce in . . . Cash Discounts Edging Back There's still some way to go before this war casualty returns to full operation but the fabric market is loosening enough to permit agitation Outraged converters call it chiseling It's axiomatic that a war brings casualties During World War and its sellers market casualty was the cash discount Sometimes it was only maimed Sometimes it was killed out- right But the seller's market didn't end with the war Cash discounts often re- mained only a faint memory In a few lines indeed the discount became a postwar casualty when price control and rationing ended Last week the fabric market began to show signs of the agitation that could come to markets where discounts are . still crippled or dead P rewar the situation Before the war rayon converters who dye and finish gray goods bought from the mills sold their merchandise EOM - This meant that the buyer got % off if he paid his bill on or before the 10th day of the month following billing These discounts disappeared with the rest during the war But the extra mar- gin which it represented found its way into the converter's pocket The dress cutters and department stores could do nothing about -- they wanted to keep on getting merchandise There was no letup at war's end The fabric market stayed tight So rayon con- verters continued to offer the same shortened or invisible discounts to the buyers L oosening Now however the situation is loosening up Although highly styled ray fabrics must still be bought on order the more basic staple rayons are in better supply Silks are in the picture again compete with rayon Cottons which are selling at lower prices now than they were a year ago have been styled up considerably adding another competitive factor To the cutters and department stores the slight easing in the market means more than just a better supply of the Business Week is read by men who make buying decisions management That is why advertising in Business Week achieves maximum effectiveness for companies whose products and services are sold to business and industry 78 Television Service Takes to the Air Passengers on Capital Airlines Chicago- sets in two of its airliners The President Be ne Washington nonstop flights are getting an extra thrill for their money It's television- airborne With the cooperation of TV set- and The Constitution Airline officials say that passengers like the teleflights Capital plans to broaden video service later to all maker Philco Corp. Capital has installed its air travel BUSINESS WEEK Nov. 13 1948 oe aa goods they want It also means a chance to plump for a return of the prewar cash discounts Therefore dress cutters began to press informally for higher dis- counts several weeks ago Department stores followed suit e Chiseling converters were outraged and adamant The move said Herman Chopak president of Textile Distributors Institute Inc. is just another way of chiseling on prices He advised members of the institute to maintain voluntarily the terms they had been mostly % off if you pay within 70 days after the date of the bill The converters maintained a united front on the discount question on the flanks the cutters to make inroads They bought in smaller quantities made up fewer dresses at a time And they continued to agitate Here and there the converters ranks wavered they decided it would be better to shade prices a little than to let the fabric house next door do the shading and make the sale The discounts haven't come back into the picture But the stores and cutters figure they'll get them back when the rayon market eases up a lot more e Basic Questions cash discount problem which many manufacturers will have to face sooner or later raises a lot of basic marketing questions From the seller's point of view cash discounts don't always have too close a relationship to cash Manufacturers have found that the big merchants will pay up promptly anyway And the smaller ones often don't take advantage of the discount But the importance of the cash discount to the big retailer and wholesaler is evident For example Background 1947 according to Harvard University's annual study of department store operating results cash discounts accounted for anywhere from 2.4 to 2.9 of net sales Store heads see this item as a big part of the cushion that kept profits for that year at levels between 4.3 and 5.5 of sales Furthermore the cash discount has become an integral factor in book- keeping A department store buys an item for 50 the store adds its standard margin for that item % That makes it cost the consumer 75 If the store gets a % cash discount on the merchandise it chalks up $ as a cash discount received When the store sells the item its books show a 25 margin plus the 3 cushion provided by the discount No Cushion suppose the manu- facturer instead of giving a cash dis- count sells the merchandise at a flat 47 That is the price of the goods after deducting not as a discount but as a price concession The department BUSINESS WEEK Nov. 13 1948 Not all - dangerous - waters flash a warning Beware of the unseen dangers in your water supply corrosion . boiler scale dirty water that will ruin the quality of your product slow down production and push up costs Permutit Water Conditioning Equipment will protect you against these harmful effects You can rely on Permutit's long experience and equipment to provide chemically water for your plants For full information write to The Permutit Company Dept. BW 330 West 42nd Street New York 18 N. Y. or to the Permutit Company of Canada Ltd. Montreal FOR OVER 35 YEARS WATER CONDITIONING HEADQUARTERS 79 Acid Lines and Air Lines Counter and ' Table Edging Packages and Protective > Coverings _ Bus and Motor Coach Moldings Refrigerator Thermal Breaker Strips Card Holders and Channels - Presstite Extruded Plastics from cellulose acetate cellulose acetate butyrate = ethyl cellulose -poly- ~~ styrene vinyl and polyethylene meet rigid functional protective in a and decorative specifications lL wide variety of industries Our Engineers Our Our Engineers will work with = in developingspecial extruded you - plastic shapes to meet your requirements Write for prices and recommenda-recommenda- tions today Corner Molding store adds its 50 markup and the item sells for 70.50 When the sale is completed the retailer has markup money of only 23.50 in his pocket and no 3 cushion The store could of course through its bookkeeping enter the 47 item on its books at 50 and give itself a % discount But the cash discount system is so deeply intrenched in retailing that it would require making special cases out of certain types of merchandise which carry no cash discount This would be costly from an accounting point of view Other Ramifications there are other ramifications which will make the subject of discounts as well as cash sore one in the coming months For example Some economists in the government that discounts have no relation to fact May25'46 p76 They say the discount has grown into a manufacturers bribe for big merchants But the cost of the bribery tends to keep prices high and sticky S ome manufacturers agree in part with this point of view But few can withstand the pressure of the bigger distributors when competition gets tough Other manufacturers just don't pay much attention to the subject handle it by guess and by gob tradition R.K.O. Consents Antitrust suit ends in agree- ment to split company Move may crack defense of other motion picture firms Since 1938 when the Dept. of Justice sued eight major motion picture companies the defendants have had a united front Last week the defense broke Orpheum Corp. reached an agreement on a consent de- cree The charges against the companies were 1 monopoly of the three as branches of the production distribution and exhibition and 2 restrictive trade practices P attern pattern of R.K.O.'s set- tlement is one that Justice has sketched as a goal for all five owning companies named in the 1938 suit Besides R.K.O. these include Paramount Pic- tures Inc Twentieth Century Film Corp Warner Bros. Pictures Inc and Loew's Inc. The three other companies Universal Pictures Co. Inc United Artists Theatre Circuit Inc wane Columbia Pictures Corp. didn't oper- ate both production and exhibition hence Justice tackled them separately * iy Under the consent decree R.K.O. will divorce its theater holdings core BUSINESS WEEK Nov. 13 1948 sqpesrnoimne l Trucks that fit your job save you money They save in many ways They save on gas oil and tires They save on upkeep and repairs They stay on the job They last longer For such a truck see your Dodge dealer Tell him what you haul the weight of your load . . . and your operating conditions He will then recommend a Dodge Rated truck that has been engineered and built to fit your job Your new truck will have Rated power for per- formance with economy Every other unit . . . clutch transmission brakes rear axle springs and tires will be Rated for long life and dependable operation PLUS these important NEW features CONVENTIONAL LEFT TURN CONVENTIONAL RIGHT TURN SHORTER TURNING DIAMETERS New Dodge Rated trucks provide an entirely new ease of steering and handling You can turn in much smaller circles right and left because of a new type of steering plus shorter wheelbases and wider tread front axles MORE COMFORT AND SAFETY 1. Plenty of headroom 2 Steering wheel right where you want it 3. Natural back sup- port adjustable for maximum comfort 4. Proper leg support 5. height seats 6. inch seat adjustment with con- venient hand control 7. Air- Ride cushions adjustable to weight of driver and road conditions BETTER WEIGHT DISTRIBUTION- New Dodge Rated trucks have much better weight dis- tribution You can haul more payload This has been achieved by moving the front axle back under the frame and moving the engine forward More of the load is carried on the front axle Wheelbases are shorter ... but rear dimen- sions are unchanged For the location of the Dodge dealer in your community consult the yellow pages of your telephone book Rated TRUCKS DODGE - FIT THE LAST LONGER ! Got materials \, handling problems * Get the Right Answer the First Time days production .. .. In these of high costs manufacturers can't afford not to solve their handling problems right the first time Trial and error methods are costly in time and money - ._ Whatever the equipment might be - gravity or power -, conveyers _ or special conveying machinery - it should be designed specifically to meet your requirements It is real economy to get sound engineering help with your handling problems - help from people whose business is the development of efficient handling methods and the manufacture of fine conveying machinery The Mathews organization makes such service available to American and Canadian industries - service which is com- plete from preliminary planning to erection in the field and which is backed up by the facilities of three very modern plants e : MATHEWS CONVEYER COMPANY ELLWOOD CITY PENNSYLVANIA COCO Oe meen ocee eee rem eees ere seee rece rere EOE ONOnesee, e MATHEWS CONVEYER COMPANY WEST COAST SAN CARLOS CALIFORNIA Seovcrsfi MATHEWS CONVEYER COMPANY LTD PORT HOPE ONTARIO Engineering Offices or Sales Agencies in Principal American and Canadian Cities e * CO ene ecesccceseenercccssvereunveseeursecvoeeosesser Stoseoseseosenefi 82 from its distribution setup To do this R.K.O. will split into two separate companies Present stockholders will get stock in both companies on a pro rata basis Exception Howard Hughes who owns a controlling interest 24 in R.K.O. Hughes will have to get out of one or the other unit within a year selling his stock There is no question that he will unload his holdings in the theater company stay in the producing end of the business partnership liqui- The exhibition date its interests that R.K.O. now company must in the 241 theaters owns in with other exhibitors The exhibition company may dissolve 30 of these part- nerships by buying out its partners These theaters plus the 80 wholly owned houses R.K.O. now has and with minor exceptions may keep will make a chain of 110 theaters e Exhibition Company future of the exhibition company once the split has been made seems assured finan- cially The company will have big theaters in 20 cities as well as a profita- ble neighborhood theater circuit in New York In 1947 the theater chain brought in profits of million while the produc- distribution unit went into the red for million This year R.K.O.'s theater wing has been off some 15 20 from last year's showing But it is still expected to come up with a sub- stantial net at the end of the year Distribution Setup distribution company will not be allowed to keep any theaters Its outlook is more uncertain than that of the exhibition unit Mostly it depends on how Hughes operates the concern Although the company was consistently in the red last year it posted a 500 000 profit during the first quarter of 1948. But last year it had to write off several millions in unprofitable films Weakened R.K.O.'s settle- ment is regarded as weakening the defense of the other companies under Justice's fire These companies have mamtained all along that a producer- distributor must have theaters in order to merchandise and test its pictures properly According to trade rumors some of the other defendants notably Para- mount are trying for separate consent decrecs to fit their own problems But no agreement has come out of negotia- tions yet Rehearings before the threejudge Federal Statutory Court are still slated to take place this month Hughes reason for beating the rest in reaching a settlement is generally believed to be his anxiety to get rid of the costly suit Also the sale of his in- terest in the theaters is a way of recoup- ing at least part of the million he is said to have paid for his block of R K.O. stock BUSINESS WEEK Nov. 13 1948 FIBERGLAS makes a better dust trap for air that must be clean Today in automobile refinishing booths men make old cars look like quickly inexpensively thanks to new drying finishes efficient spraying modern ventilating and air filtration equipment Adequate ventilation plays an important role carrying off undesirable mist and paint fumes But air drawn into the booth must be clean for borne dust and dirt can ruin a slick wet surface That's why DUST Air Filters are used Wherever high standards are set for clean air and where economy too is important DUST Replacement Air Filters are widely used The pack of Fiberglas fibers forms an exceptionally efficient filter medium Being glass and inorganic- they will not rot nor will they absorb the evaporating adhesive with which they are coated As a result each trapped particle of dust is quickly saturated maintaining high catching effectiveness When the filters become loaded with dust have done their job they are easily and economically replaced For your heating ventilating or conditioning equipment get the facts about STOP Filters . their ease and economy of maintenance Standard DUST metal frames are adaptable to build filter panels for any air volume requirement Owens- Corning Fiberglas Corp. Dept. 803 Toledo 1 Ohio In Canada Fiberglas Canada Ltd. Toronto Ontario Paint shop at Bob Reese Motors Toledo Ohio Spray booth by The DeVilbiss Company Toledo Ohio Maintenance of filters for this type of booth is simplified because of the ready availability of STOP Air Filters coast to coast CORNING FIBERGLAS FIBERGLAS FIBERGLAS FIBERGLAS FIBERGLAS FIBERGLAS AIR FILTERS FIBERGLAS is the mark Reg U. S. Pat Off of Corning Fiberglas Corporation for a variety of products made of or with glass fibers STOP is the mark of Corning Fiberglas Corporation for impingement air filters made of glass fibers SS ee seaere Bo electrical slick trick 5 Daily Upsets Evening newspapers in Los Angeles fight back as the new Mirror eats into their circulation and advertising 7+ Rivals a Experformance Experformance 7 7 - It's done with electric current and deposits a uniform satin zinc coating on cold rolled strip steel This electro- _ - zinc ... coat on CMP Thinsteel makes a corrosion resistant strip steel product that can take the y.2.-"7 punishment of severe fabrication| - - without flaking or injury to the . coating even under deep drawing or sharp bending operations If the fabricated item is to be painted the coated strip receives a phosphate treatment to provide the base on which . 1. paint will best adhere So where the andcharacteristics of uniformity and accuracy to gauge common to all CMP Thinsteel strip products are de- sired in combination with the protective edges of an electrozinc coat check with us for recommendations for application to your particular production problems THINSTEEL TRADE MARK LOW CARBON SPRING STEEL ALLOY GRADES STAINLESS the ColdMetal Products co YOUNGSTOWN O. NEW YORK CHICAGO DETROIT LOUIS BUFFALO INDIANAPOLIS LOS ANGELES SAN FRANCISCO An fashioned newspaper war is making Los Angeles a lively town Serious Threat week the brand- new evening Mirror after skyrocketing to almost million circulation for its first few issues seems to have settled down at about 150,000 Even at that level it poses a serious threat to the cir- culation advertising and profits of its evening competitors Hearst's Herald- Express and Manchester around Daily News Boddy's The Mirror is the offspring of the heeled morning Times It is a tabloid in size not in character Its conservative owners have kept it clear of the sensationalism and earthy editorial touch that made the New York Daily News so fabulously successful Instead the Mirror's initial gains have : been mainly to these three potent factors ..,. TIMING The nickel Mirror hit the __ streets just after the opposition dailies hiked their prices to 7 FORMAT Though it may as yet be weak on syndicated features particularly comics the Mirror has a lavish pic- .. . splashed PROMOTION The Mirror was ushered in with a hitting 150,000 adver- tising campaign This implies of course that plenty of money sunk into the new venture But just how much no one knows except the Chandler family which owns the Mirror Co. Estimates hover between million and million The paper is housed in five stories of its own story building BW 4'48 It also has eight color presses a 500,000 photo laboratory the privilege it is said of losing up to 1.5- million its first year Pinkley Mirror was conceived during the war years when Norman Chandler president of the TimesMirror and his brothers decided that Los Angeles could use another after- noon newspaper So when the time came they built an million home for their project and tapped Virgil Pinkley former European president of United Press as publisher and editor Pinkley had just nine weeks to pro- duce a paper from scratch To do it he built his staff mainly with aides from the U.P. overseas staff And he also hired away a few men from other local dailies practice frowned upon by the 84 PUBLISHER Pinkley's unorthodox tactics have started an time newspaper war Los Angeles Newspaper Publishers Assn Maverick characterizes the Mir- ror's maverick behavior Another ex- ample For 10 years Los Angeles papers have ignored radio as a source of news now Pinkley has decreed two pages daily of radio gossip and logs With a circulation guarantee of 100 000 the Mirror has lured all but two of the city's largest retailers a con- siderable number of national advertisers -into contracts Retaliation course the competi- tion hasn't taken the Mirror's inroads lying down The Express hit back first Across page one it splashed a candid picture story of a Mirror reporter 1 sneaking damp copies of the Express out of the latter's mailing room 2 phoning the headlines to his own city desk Last week the Daily News also struck with bus carcards e Another Threat their preoccupa- tion with the Mirror Los Angeles other dailies momentarily took their eyes off another potential threat the West Los Angeles Independent This is one of a string of seven weekly distribution papers pur- chased early this year It's the caliber of the buyers Time executives movie people Los Angeles department- store which is the chief cause for worry Publisher James Parton who headed Time's overseas editions has explained that his backers are intent on learning salt before the weekly newspaper field branching out But he admits that no one will believe me The grain of results from 1 the powered staff 2 the list of wealthy stockholders BUSINESS WEEK Nov. 13 1948 3 expansion of Pacific Press the West's largest printing plant owned partly by Time Oleo Truce Offer Dairymen would agree to end of taxes on margarine if sale of colored oleo were banned But oleo men won't compromise Wary margarine makers warned each other this week to beware of butter mak- ers bearing gifts The gift a sudden compromise proposal by the American Butter Insti- tute and other dairy interests that all taxes on margarine be dropped The catch that Congress enact a law banning the sale of colored margarine Reasons and Reasons men's announced reason for wanting colored margarine barred is to prevent deception They say restaurants serve colored margarine to the public as butter But margarine makers figured that there were a couple of other reasons not announced 1 Housewives dislike coloring their own oleo so a good deal more of the product would sell if it were colored 2 restaurants would curb their use of margarine if they had to serve it white N o Compromise the oleo group will accept no compromises from the butter interests that it has fought since back in the 1880's Oleo men had an aroused public behind them last spring when they were able to force through the House a bill to repeal margarine control BW 1'48 The repeal bill died in the Senate Finance Committee in the last- minute legislative rush at the close of the 80th Congress But a similar bill will be offered next year And margarine men feel that the new Congress will be even more sympathetic to their appeal than was the 80th Butter interests of course will press their compromise solution too And both sides are wondering how much public interest can be whipped up in the coming battle The answer will depend at least in part on the altitude of butter prices C olored Butter- are glad that the butter interests publicly admit that they have been wrong on margarine twitted Paul T. Truitt president of the National Assn of Margarine Manufacturers He and other margarine people asked an embarrassing question too Why do butter mcn want to ban the sale of colored margarine and not of colored butter Margarine men know that large quantities of colored butter are sold particularly in the winter months BUSINESS WEEK Nov. 13. 1948 Yes 16mm sound projection reaches perfection with the RCA and superb tone quality sound You change from sound to silent Your films black or full color reproduced with crisp sharply detailed screen images and life- by merely turning a knob EasEiaesrier Operation Operation an + ~ like range sound Your showings The RCA 400 is the easiest of all have professional quality performance when you use the RCA 400 _ projectors to thread It is exceptionally simple to operate Theatrical framing Brighter Brighter Pictures Pictures! From the first frame right through to the end you'll realize that here is steady brighter flicker screening watt illumination Pic- tures are at their best in brilliance contrast and definition Finger tilt control Smartly designed projector is compact and easily carried Ideal for use in business industrial training churches schools and colleges homes SEE IT HEAR IT Before de- ciding to buy any projector and hear the RCA 400 Your RCA Theatre Sound ! Voices music and sound effects are reproduced with the dramatic realism Visual Equipment dealer will gladly arrange for a demonstration For illustrated brochure and name of nearest dealer write Dept. 16K first in sound finest in projection SOUND AND VISUAL PRODUCTS RADIO CORPORATION of AMERICA ENGINEERING PRODUCTS DEPARTMENT CAMDEN N.J. In Canada RCA VICTOR Company Limited Montreat 25 earth course trains your personnel to apply them in your plant To get the most out of electronic equipment your personnel must thoroughly understand its fundamentals advantages and limitations To help you with this training problem General Electric has prepared a complete easy- take visual course in indus- trial electronics Here's what the G electronics |. training course offers- 1. A page instructor's manual designed to give your employees a - practical understanding of the fun- . damentals of electronics them they're applied in modern in- of - dustry It enables a member your organization to conduct the les- _ son course . . . ; - 2. Twelve Slidefilm Lessons each with ~*% own record The lessons are phrased in technical language devoted to specific applications Booklets 3. Twelve Review illustrated ---. reference home study - Free inspection offero-ffer- Once you've seen the scope of this packed course we know you'll be convinced it will pay off for you . --++ So examine the instructor's manual | without obligation After you've seen it you will want to order complete > 7H course which offered at cost only 120.00 Tr t t to your } business q letterhead TO BUSINESS MANAGEMENT \ General Electric Co. Section A684-5 3 1 Schenectady 5 N. Y. H Please send me a sample copy of the G Industrial Electronics Training Course Man1 val 3330 without cost or obligation i] 4 t Name Title 1 Company1 Street $ 1 * City| ELECTRIC THE MARKETING PATTERN T NIGHT after the election producer Walter Wanger appeared on a panel broadcast over New York City's radio station WQXR The subject under dis- cussion was Is the movie audi- ence getting what it wants The interlocutor asked Wanger Can you tell us if the film industry has any guide to popular favor other than box office receipts Until last night Wanger replied we always had the advantage of Dr. Gallup's Audience Re- search Institute I don't know what the substitute will be Of course the answer was good for a laugh But it's no laughing matter for the political pollsters who came a cropper page 25 Their main business is the market attitudes toward yourself or your product Why pay the pollsters to get opinions or indexes of buying expectations It's all phony anyhow Get yourself a public relations expert who will mould public opinion for you measure it wrong CHILE CHILE THE PUBLIC as a whole may cast a sardonic eye at polls for awhile the really important buyers of research probably won't change their programs much They have been working closely with the vox poppers for some time therefore they have been aware of the error possibilities inherent in any sampling method But some of the smaller fringe buyers of research services may decide that research is still too inexact a sci- research they conduct between elec- tions . The most ironic point about the -pollsters unfortunate calculations is the fact that they conduct the political polls more or less as ad- vertisements for their services In previous elections the payoff has been the comparison of election results with the pollsters predictions Until this year's elections the comparisons have been very favorable THE RESEARCH TRADE is wondering what effect the elec- tion fiasco will have on its busi- lea Atslet ast one small researcher has greeted the pollsters downfall with glee He says that previous election polls by the big outfits won customers for the pollsters But this time he expects the polls miscalculations to drive customers into the little fellows offices not publicized by election polls Among executives of other re- search firms not involved in the election blowup there is some feeling that in the long run market research will learn some lessons ence for them to risk an invest- ment in And some top management men better acquainted with the results of research than with the techniques may keep their own research departments under the gun for awhile Most consumer market research however shouldn't suffer too much The job of consumer quizzing is usually to find out what people have how much they make what magazines they read This is quite a different thing from asking people what they expect to buy earn or read in the future And this in effect is what the election polls attempted find out how people expected to vote at some time hence Management men have never put too much faith in the prospecpurchase surveys anyhow say the researchers But refrigerator makers have relied heavily on studies which tell them how many refrigerators there are in Des Moines or how many farm homes wired for electricity have quick- freeze units from the experience Researchers they say will have to tighten up CHAT CHAT IT ALL may add up to is this Most intelligent mar- their procedures They will have to keting executives will continue to choose their samples more care- channel dollars into research studies fully And they'll have to be plenty that tell them what people are cautious in interpreting the results doing or what they have done of their question And they will want to be surer than Meantime the research fraternity ever that the techniques used are can expect a competitive barrage the best that can be devised But from the public relations people they will keep on being skeptics This group is sure to approach man- when it comes to determining what i agement something like this Why people are going to do tomorrow put your money into research on next week or next year | 13 1948 --- ... SIZE go NA Removing molds stripping from hot Open Hearth ingots at the Lowellville Ohio Works of the Sharon Steel Corporation For almost 50 years the Sharon Steel Corpora- tion has produced America's finest steels for America's finest customers One reason why Sharon is today one of the nation's ten largest steel makers ae SHARON STEEL CORPORATION mane BRAINARD STRAPPING SYSTEM ca Aare e, A Day Filled with Music on a Snap and Wish .. pioneered with the aid of Mallory switches and capacitors The Ice Cubes That Were Ready ~ When You Needed Em Quick . pioneered with the aid of Mallory capacitors ey The Appliances That Knocked Blue Monday Out of the Calendar pioneered with the aid of the Mallory interval timer switch J The Stadium That Comes To Your * Home pioneered with the aid * of the Mallory Inductuner tuning device and electronic parts ..until Electrical Brains Helped Make It so The American home is the world's best home today for two important reasons homemaker's devo- tion and the electrical brains that are her ever- present accessories These work for saving her time and providing new relaxation permitting her to do a better homemaking job than ever before Electric refrigerators completely automatic washers controlled dryers television receivers and now a new device that automatically selects plays and replaces records for hours on end These and many like them quickly become commonplace largely because they are so completely trouble often provide the electrica power responsible for their completely automatic operation and in every case Mallory precision has played an important part in their record of dependable performance Behind this precision stands the skill acquired in thirty years of pioneering development and manufacturing in the fields of electronics electrochemistry and metallurgy If your problem of design or production falls within this area let Mallory assist you in reaching a higher degree of perfection for your your produpct roduct Many of these contributions to better living have been developed by the use of Mallory parts and materials Mallory components * Registered Trademark of P. R. Mallory & Co. Inc. for Inductance tuning devices covered by Mallory patents Gearing for Christmas oe pare ran ere Mera SNIAS AT is See Acne ESAS = Ee ee oe aie Cos aees paanR e, ST a8 Ea SEERNS 8 oes ae eesarene see an Uoelve e Agu Seetrie e Se otea atc a zs see 3 anes te SESS SR US A erent tcteethrcesea rar aiie ote a tate Kae SNaS tKes eenSoe ou Ssae Steer a tens FS gen EURsae enn %y HELP FOR SANTA of expert type will come from New Orleans salespeoplesalespeople of them graduated last week from a course on how to wrap gifts for stores Reason 30 of ire ! Legeeintecngnglantigennd SCHOOL FOR SANTA is held in Albion N. Y. how the North Pole variety acts Tuition is 50 It teaches the department variety Xmas expert is Charles W. Howard in Commerce People buy more and work better in cool clean air conditioned buildings That is why progressive commercial institutions are interested in clean air and are stand- ardizing on Air Filters The herringcrimp design assures dependable higher performance larger dirt holding capacity lower pressure loss easier cleanability reduced maintenance costs Among the users of Far Filters are Bank of America F. W. Woolworth Co. Fred Harvey Restaurants I. Magnin Co. National Broadcasting Company Rexall Drug Company Savoy Plaza Hotel U. Armed Forces A equipped testing and development laboratory is maintained for research in all types of filtration problems Farr engineers are available in your territory to serve you Write Farr Company Los Angeles 43 Calif FAR FILTERS Trade Mark Reg . PSYCHOLOGY FOR SANTA was discussed at Parents Magazine's one training school Santa said psychologists should be mannered spoken not scare childen Fy i. BUSINESS WEEK Nov. 13 1948 FARR COMPANY Manufacturing Engineers Los Angeles + Chicago New York 89 ~ Advertisement MARKETING BRIEFS BUSINESS IN MOTION LIQUOR SALES this August beat August 1947 by 1.8 Even so the eightmonth total for 1948 still lags 2.4 behind last ycar EXCLUSIVE CONTRACTS between National Pressure Cooker and wholesale distributors got the ax from FTC last week The company will not appeal CANDY MAKERS also felt FTC's hot facilities The part shown here certainly does not of its applications rather special such breath last week Charges against 24 i seem complicated in either design or as in electron tubes and in electrical companies discrimination 11 pricc manufacture Yet actually it proved to equipment operated at high temperatures allowances services and facilities bedifficult to make as economically as in the presence of reducing gases In the gH was desired The piece is called a poten- case of this potential tap such chemical CIGAR SMOKERS bought % more tial tap and is a small stamped channel characteristics were unimportant The stogies during September 1948 than ce section used in certain types of electric reason the Revere Technical Adviser they did during that month last year But tax figures show cigarette sales for meters Since it has to current nat- recommended the metal was that it has the same period gained only % urally it is made of copper excellent forming characteristics even at Originally this was made of electrolytic copper with sufficient hardness to . - provide the strength required to with... stand the operation of tightening the I wires it by means of a nut and washer ~. The metal however proved troublesome . because cracks developed at the bends during the forming opera- a Rockwell hardness of B50 For that reason it can be drawn and the 90degree bend required in this part is easy to produce without fracture The General Man- ager of the company > expressed it this way We paid a premium for OFHC Copper But that premium is much more than offset WESTWARD is the name of Kaiser Co.'s new pocket magazine for customers Photographs art and color point up Pacific Coast industrial ex- pansion AMATEUR PHOTOGRAPHERS buy 33million worth of equipment yearly according to an Eastman Kodak study Commercial photography accounts for an additional million otion As result 100 . inspection was re. quired and rejections were numerous Even though rejects had . a high salvage value Pewe by our saving in scrap and the around re- SEARS ROEBUC--"had the best October duction in costs Our potential taps now have no more cracks ever Sales hit million 7.8 higher than last October Sales from February through October are 20 ahead of last vear in the bends there are as the case with anything made of - copper the cost of the part was much - no rejections whatever and expensive inspection has been eliminated COAXIAL CABLE linking A.T. Bos- Richmond and St. Milwau- higher than had been expected At this point a Revere Technical Ad- viser entered the picture He studied both the requirements of the metal and the fab- Thus another manufacturer has learned that it not the price per pound that determines the economy of a material but the cost of the finished part made of it kee television hookups will open Janu- arv 12. The presidential inauguration will probably be the first major event telecast over the entire network rication methods and made two suggestions One was that a somewhat harder temper be used The other was that the metal be OFHC Copper Oxygen High Conductivity Test runs on this In this instance Revere collaborated with the company in the investigation However there are other informed suppliers of materials whether they be metals or chemicals plastics glass or LUGGAGE RETAILING by catalog has been adopted by U. S. Luggage & Leather Products Hopes to sell through 50,000 stores ship directly to customers Revere Metal proved so satisfactory that a large production order was placed OFHC Copper carries a premium over regular electrolytic due to the extra processing necessary to produce it Most wood Revere suggests that you take them into your confidence and work closely with them After all every order entitles you to their knowledge as well as to their shipments Why not get both C. B. S. relaxed its ban on recorded programs last week to permit rebroadcast of live programs Gives sponsors a chance to keep name programs going summer REVERE COPPER AND BRASS INCORPORATED Founded by Paul Revere in 1801 wow Executive Offices 230 Park Avenue New York 17 N. Y. DEPARTMENT SALES are % ahead of 1947 for the year up to Oct 30 Big- gest regional gain 12 Dallas_d~-s- Dallas_d~-strict smallest % Boston San Fran- CISCO HALVING WAREHOUSE RATES Unitized loads could do it in many cases says handling expert Albert mechanical Drake Readying loads for mechanical handling will cut time and pilferage 90 BUSINESS WEEK Nov. 13 1948 FINANCE _ r- Corporate 1.0 New Financing billions of dollars Data Commercial & Financial Chronicle 'BUSINESS WEEK Put Good Management on your desk Refunding ~ Just Talk E:<25 for Action with 1947 1948 NEW ISSUES have stayed high but they have been yielding . . . - AMPLICALL Intercommunication Less Profit for Underwriters 3 Industry may have more trouble raising new money in the future Underwriters income has been hit by private placements overbidding and corporations tendency to sell bonds * > Results of the election throw a cloud over business plans for capital expan- sion and the demand for new money Hopes to election day Wall a Street thought it had fairly good idea of what lay ahead in the capital markets On the demand side it anticipated a steady stream of new issues to raise money for expansion programs On the supply side it looked for a pair of contradictory trends 1 a gradual tightening of credit under a moderately conservative Republican administration 2 a series of measures designed to offer more incentives to investors for in- stance corporate tax reform This combination the Street con- cluded spelled slowly raising money rates a high volume of activity more public participation and something better than the profitless prosperity that the securities business has experienced for the past couple of years Now nobody knows what's ahead Less Expansion there's the question of what the Truman victory > will do to the expansion plans of business in general The immediate impulse of many businessmen has been to pull in their horns They fear that an profits tax or a government ported fourth round of wage . increases will take the profit out of new facilities They are afraid that allocations of materials will cut their production and that price controls will narrow their margins But this mood may pass If Truman takes a fairly going attitude toward business the chances are that few ex- pansion plans will be shelved And while business is waiting to see which way the Democratic cat will jump the tremendous volume of expansion projects already under way will keep total corporate spending at a high level Supply Problem if business still wants new money for expansion will Wall Street be able to supply it The Democrats probably will be more inclined to easy money than the Repub- licans would have been But there is no use hoping for any special incentives for investors And the stock market's frantic dive for the cellar page 100 is a bad omen for finance in general At this point nobody in Wall Street can tell how these problems will work everywhere in your busi ness use AMPLICALthLe Electronic Communication ..,, "System that simplifies man- ' agement problems Speedy dependable AMPLICALL ~ keeps all key men within second speaking reach your _ desk and of each relieves switch- board congestion costly wandering and wasteful waiting __ Whether your business occupies a room office or a acre plant there is an AMPLICALL System avail able to fit your needs Learn how AM- PLICALL helps put Good Management on your desk the details today n Systems cont'd UNICATION SYSTEMS ronic RAULAND AMPLICALL nica I SYS- - ries genral business institutionsinstitutions general in daily use Engi- . installations . Expert Expert survey and and requirements ERE TO BUY IT SMURATIONS a SMURATIONS See Your Phone Book For your nearest AMPLI- CALL specialist look in the Intercommunication section of your classified directory or write direct to the Rauland Corp. Chicago Illinois 4d . THE RAULAND CORPORATION| 07 8 4249 N. Knox Ave. Chicago 41 Illinois Send complete details on the New AMPLICALL uO , ni . 1 Send your representative No obligation t q 1 Name cece certs oe Company BUSINESS WEEK Nov. 13 1948 91 a ey a . y ey Four customers were a crowd back in 1911 when Benjamin Gertz opened his tiny stationery store in Ja- maica Long Island fhe Here he cheerfully sold - newspapers magazines and writing materials abustling growing community business grew and he added toys sport- ing goods and musical instruments.- Jamaica kept on growing And so did an idea in the minds of Benjamin Gertz and his two sons who had joined the business Why not they asked themselves establish Long Island's first completely stocked thrift department store This would require financing larger quarters for store equipment for a line of men's and women's clothing Could the Bank of the Manhattan Com- pany help It could did In 1925 the Gertz family came to the Bank with a still longer merchan- dising program to offer a wider and wider variety of the finest merchandise with a Triple Guarantee of satisfaction service and prices as low as any in New ~ York City In this undertaking the Bank again lent hand - Expansion was rapid as the Gertz bus- iness went ahead the assistance of the Bank Even during the depression minded customers thronged to the Gertz store in such numbers that still more space was added as well as a 1200- car parking lot , Today Gertz is the fifth largest department store in New York City expects to do a 30,000,000 business this year The Gertz business in its modern story conditioned building is a far cry from the tiny shop of 37 years ago And it is built on a firm foundation of vision hard work and creative finance CHARTERED 1799 Bank of the Manhattan Company NEW YORK MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION themselves out For the present all a securities man can do is keep his fingers crossed and wait for more news on Tru- man's plans and industry's appraisal of them Gloom isn't as though the corpo- issues market had been bloom- ing even before the election In recent weeks when their hopes were highest underwriting houses still were having their troubles It wasn't the amount of business that was bothering them Offerings of new corporate securities in the first nine months of 1948 added up to almost billion That's % higher than the same period last year and only 8.7 less than the first nine months of 1946 -biggest issue year since 1929 But despite this high level of business a Wall Street's underwriters have rarely been so gloomy as they are today Rea- son For all the volume they haven't been able to earn respectable profits Several factors are responsible for this state of affairs Most important among them private placements more bonds and fewer stocks overbidding Private Placements of the new issues that are sold privately to insurance companies or other institutional inves- tors never pass through underwriters hands at all So from the standpoint of eae underwriters profits they might just as Le well never have been sold at all In the . first nine months of 1948 some 1.7billion of new corporate securities bypassed Wall Street this way That's almost 40 of the total of issues flotations Only once before in 1942 when the war was restricting issues marketing has this percentage ever been surpassed And dollarwise private placements in 1948's first nine months have already topped the total for all of 1947 Occasionally of course an under- writer will midwife a placement deal A case in point the recent sale of million of bonds by Shell Carib- bean Petroleum Co. to a group of institutional investors the details were han- dled by Morgan Stanley & Co. BW 30'48 such examples are comparatively rare by and large the trend to private placements has definitely hurt the earning potential of the underwriters and distributors of new issues Fewer Stock Commissions re- ceived by underwriters for handling new stock issues are almost always higher than those on bonds Reason The risk is greater And with the supply of risk capital drying in BW- capital drying up in recent years Jan.24'48 corporations have been relying more and more on bonds for their new money Last year for example new issues amounted to only about stock 1.2- billion That was a drop of some million from 1946. And it represented Se BUSINESS WEEK Nov. 13. 1948 fete rl COLUMBUS : i + CINCINNATI the human ingredient = = . . . in the unbeatable combination On the Norfolk and Western Railway's Roanoke Va shop assembly ava line men like these build a ton steel coal car in 48 minutes.` ~~ But | The building of these sturdy cars is only one of thousands ofjobs which go on ceaselessly behind the scenes The workers who build them are only Western employees these a few of many thousands of Norfolk and men typify the human ingredient which helps to make Norfolk and Western Precision Transportation make Good railroad transportation requires modern and efficient facilities ' from the roadbed up It requires sound progressive operating methods and the teamwork of the thousands of Norfolk and Western employees ... with trained minds and skilled hands . . with the sense of responsibility which creates the human desire to see the job well done . . and with the that assures the railway's shippers that the job of providing experience - dependable rail service will be well done This is the vital human ingredient in the unbeatable combination A J terme be / HAGERSTOWN Ky MD \ y VIRGINIA j . VIRGINIA ROANOKE BLUEFIELD LYNCHBURG RICHMRICOHMNORNICHDDMOND RICHMOND IS HOPEWELLY HOPEWELLY NORFOLK The N. & W. has more than 52,000 coal cars of various capacities to serve the coal mines along its lines dealers and consumers The cars are designed and built to fit the needs of the coal operators and coal users Norfolk 5 BRISTOL o or WINSTON SALEM DURHAM oat NORTH | | j CAROLINACAROLINA CAROLINACAROLINA N 3 N NORTH , Western NORTHNN anR dA WI eL sWtAeYrn TRANSPORTATION recently The Norfolk and Western Railway recently was awarded the i Harriman Memorial Gold Medal for making the outstanding L t safety record among the large Class I railroads of the nation in 1947. This marks the fourth time the N. & W. and its .- safety L. employees have won the highest honor in railroad PRECISION 3 i. Leach Silo Unloaders manufactured by the Leach Company of Oshkosh Wis- consinarboeoan to farmers eliminating an unpleasant chore and conserving ensilage But packing the 1200 pound oddly shaped units in such way that they could be handled and installed conveniently presenteda difficult problem Some meth- od for shipping the machine as a group of assemblies that would pass through small silo doors was essential 161 pound motor for the Leach Silo Unloader is mounted on a crate base which is engaged by the bottom cleats of the Wirebound Wirebounds solved the problem Wirebound engineers tailored eleven different boxes and crates to package and pro- tect the various parts of the unloader for safe convenient shipping and handling At the receiving end assembly was easier because contents could be seen and identified through the sides of the Wirebounds unpacking proper sequence The door fourth side is folded shut and the wires are twisted closed with an electric toggle twister Light weight Wirebounds meant real shipping economy for Leach too Less than seven minutes were required for packaging any one of the unloader_ units and packed crates could be stacked 10 high to conserve valuable -: . floor space Wirebounds can provide efficient economical solution to your shipping problems Mail the coupon below _ wy at Unpacking the 11 Wirebounds the erection site is no problem since the twisted wire closures need only be cut to open another ODD SHAPE shipping problem solved by only 26 of the year's total issues business This year the showing has been even worse According to the Federal Reserve Bank of New York stock is- sues made up only 20 of the total in the first six months only about % in the October period O verbidding in 1946 under- writers took a lot of heavy losses because they bid too high on new issues For quite awhile after that unpleasant ex- perience they were careful to keep their bids below going prices Today how- ever there are signs that they are forget- ting that costly lesson Back in September an underwriting syndicate bid 100.14 of par for 75 million of Pacific Telephone & Telegraph Co. % bonds It promptly reoffered them to the public at 100.53 The issue received a lukewarm recep- tion from the start That might almost have been expected because of the big volume of Bell System paper that has been absorbed by investors in the past year or two Bell obligations accounted for over 50 of all utility flotations in 1947 for 32 so far this year A month later a large portion of the Pacific Tel & Tel bonds still remained unsold Nevertheless another big syn- dicate bid 101.77 of par for mil- lion of new Michigan Bell Telephone % bonds These bonds were reoffered at 102.4 And they didn't sell either Coup de Crowning blow to the hopes of both syndicates was the an- nouncement by American Tel & Tel itself that it planned to sell million WIREBOUNDS The unusual shipping problem encountered by the Leach Company is readily apparent in the above view of the assembled Silo Unloader ST A T_T AAS SAA ARN een Mth MAIL THIS COUPON TODAY WIREBOUND BOX MFG ASS'N Room 1837 Borland Building Chicago Illinois SEND COMPLETE LITERATURE SEND A SALES ENGINEER NAME FIRM NAME ADDRESS CITY PRODUCT POSITION ZONE STATE SIXTY WIREBOUND PLANTS THROUGHOUT THE UNITED STATES Wirebound BOXES & CRATES 94 adh ~ Lesson in Finance druggist Basil B. Chesley Lansing Mich believes in teaching them the ABC's of finance while they are young He has in- stalled this service cash register in his store where young and old too can ring honor up their own purchases on the ' system So far Chesley reports that honesty , has been holding its own and the register te oe is a big drawing card abl te BUSINESS WEEK Nov. 13 19481948 jon of new bonds soon When that news was received the two syndicates gave up hope of selling their bonds at the offering price and decided to let the issues seek their own levels in the open market market Pacific Tel & Tel bonds promptly dropped to 98 of par the Michigan issue almost to par Wall Street hears that the syndicate handling the Michigan bonds took a loss of about million Overbidding Another Overbidding has by no means been confined to telephone bonds Just a couple of weeks ago an underwriter bought million of New Orleans Public Service Corp. 34 bonds at 101.565 of par reoffered them at 102 Before 1 could get out from under it had to drop the selling - price to 100.95 That represents a net loss of about 6.15 on each 1,000 bond sold And instead of earning the ex- pected 56,000 on the deal the underwriter took an pocket loss that's estimated at 61,000 Obviously not all recent new offerings have gone sour On most issues particularly earlier in the year underwriters held their bids down to a point where they could reoffer the securities to yield more than comparable outstanding issues still make a profit But even in most of these cases underwrit- ers were forced to slice profit margins pretty thin Impact on Business would be the worst sort of shortsightedness for busi- nessmen to kiss this whole situation off as merely Wall Street's worry Underwriters are like anybody else They can't and won't continue to take losses lying down To relieve their present plight they are likely either to hold down their bids on new issues or to insist on higher coupons Either way it will cost busi- ness more to raise money DEARBORN SAYS NO Boston's John Hancock Mutual Life Insurance Co. planned to build a 10million rental housing project at Dearborn Mich Oct.9'48 But now it's not going to do it The reason Dearborn residents have indicated they don't want it On election day the voters turned thumbs down on the project by a thumping margin to 10,562 Only 8 of Dearborn's 55 voting pre- cincts in fact voted in favor of it The vote was on an advisory referendum for thecil guidance of the Dearborn city coun- The outcome was a victory for Mayor Orville Hubbard He had long fought erection of the proposed rental project on the grounds that it would bring into his residential community an undesirable element The insurance company has made no BUSINESS WEEK Nov. 13 1948 Dept. The Mosler Safe Co. 211 320 Fifth Ave. New York 1 N. Y. Please send me The new free booklet What Should Know About Safes The Name of my nearest Mosler Dealer You THIS . is sure protection . |, for your funds _ everywhere you travel On trip or evenat home a thief or a a moment of forgetfulness . '. and ~ TRAGEDY ... ... your cash is GONE If however you follow the practice of experienced travelers and carry your money in National City Bank Travelers Cheyoc ur k tras vel funds will be safe and spendable everywhere Your signature and countersignature on each check is your unique protection If your checks are lost or stolen The National City Bank of New York gives you a prompt refund Good until used You buy them in convenient denominations of 10 20 50 and 100 Cost 75 per 100 Ask for them at your bank NCB TRAVELERS CHECKS ** THE BACKED NATIONAL OF NEW BY CITY YORK . BANK First World Wide Banking in Member Federal Deposit Insurance Corporation 96 official statement since the election re- the Akron story in person to corpora- turns were announced Earlier however John Hancock spokesmen hinted tions that are considering expansion The roving ambassadors will carry e that the proposed project would be taken to some other community if the along with them a personalized bro- chure that stresses these Akron advan- vote showed that Dearborn wasn't in- tages 1 a freight run of 24 hours or terested less to 70 of the U. market 2 an area scrved by 6+ common and contract AKRON TO DIVERSIFY trucking companies 3 a favorable tax rate of 34.64 per thousand Put Akron on the growing list of one- To clinch the deals the salesmen have industry cities that want to diversify another strong argument First National made. Sparkplug behind the drive for new industry is the rubber capital's biggest bank First National It has turned its officials into a sales force that will carry will put up the capital to erect any type of building for the new industry or business The only condition is a long- term lease ow ce Bam Working Capital Hits Another New High Corporate working capital is still climbing That's the word from the Securitics & Exchange Commission this week At midyear SEC reported cur- rent assets of all U. corporations excluding banks and insurance companies topped current debts - by billion That's a spread 2.1 larger than the earlier recordbreaking total of last March and it's 5.4 greater than at the start of Cash and government bond holdings continued their postwar downtrend Inventories meantime were at a new high in June But current liabilities took a drop too So all in all you get this picture The current ratio current assets divided by current debts for example worked out to 2.17 vs. 2.14 at the 1947 year Quick assets current assets excluding inventories also covered current debts 1.35 times compared with only 1.33 times six months earlier Normally for current and for quickasset ratios are considered good by fiscal authorities Here is SEC's latest working capital report in billions of dollars in detail ts : | 1939 - 1940 - 1941 oan 1942 1943 2. cee, 1944 Teese 1945 ~ 1946 1947 1948 March 31 a June 30 ... Cash 10 8 13 1 13.9 17.6 21.6 21 6 21 21 22 6 22 22 4 CURRENT ASSETS Government Securities $ 22 2.0 0 10 1 16 4 20 9 21.1 Receivables 22.1 24.0 28 0 27 3 26.9 26 5 26 3 Inventories 18 0 19.8 25.6 27.3 27 6 26 8 26 3 14.9 13.4 32 3 38 2 34 8 40 6 Other Current Assels $4 5 4 3 3 4 2.4 7 6 13 2 12 6 38 8 38 7 42 3 43 0 1.5 6 Total 545 545 60 3 72.9 83 6 93.8 97 2 97 8 105.1 116.6 117 9 118.4 CURRENT LIABILITIES 1939 2k ee ee cee eee eee eee 1940 1941 1942 ee eee cec eee e tere so eee ran oe bene e 1943 1944 Pe we eee eee eee eee ene ee eee ke eee 1945 wee be eee bee eee aes 1946 2.6, .e. een. oan : 1947 . tees 1948 boven : one Payables 21 9 23.2 26 4 26 0 26 3 26 8 26 1 31 3 35 3 Taxes 12 5 7.1 12 6 16 6 15 10.4 79 10 0 Other Current Liabilities 6.96.9 71 72 87 87 4 97 97 10 8 Total 300300 328 407 47.3 51 6 51.7 46.2 48 9 560 = meanti March 31 sot - 34 10 0 11 55 3 June 30 33 8 10 2 10 54.5 ne NET WORKING CAPITAL ae wek 1939 1940 nee ee - oe : . we 24 27 5 1945 . . we 51.6 1946 . . 56 2 1941 cone : woe ae 32 3 1947 60.6 teas a wen 1942 1943 toe ran wee ee eee 36 3 42.1 March 31 1948 , Loe 62.6 1944 ce cc ee cee ce eee 45.6 June 30 . BUSINESS 63.9 . Looe WEEK ve EEE ii Nov. 13 1948 1948 Airport Income Up Municipal fields show operating profit for the first thanks to rentals from flying concessions For the first time in history city- owned airports as a group have been able to show an operating profit A Record the report of the 1948 Municipal Yearbook which In- ternational City Managers Assn has just put out In 1947 says the Yearbook gross revenues of 173 municipal airports added up to over million This set a new high Operating costs for the same period came to million That 700,000 in the black repre- sents quite a jump from the 1946 showing In that year substantially the same group of airports were in the red with a total operating deficit of over million To the Rescue wasn't the flying business itself that pulled the rabbit out of the hat The association gives credit for last year's breaking revenues to banks beauty shops and other businesses renting space at air terminals Those rentals gave the airports a sub- stantial increase in income in 1947 Topping the list as an income pro- ducer was Miami's International Air- port Its revenues of 764,000 came close to doubling running expenses of 384,000 Dallas Love Field and St. Louis Lambert Airport can make the same claim The Newark N. J. airport wasn't far behind Its 1947 income was some 500,000 its running expenses only 300,000 . Tops in Revenue sheer size of revenues New York's La Guardia Field takes the national blue ribbon That field now operated by the Port of New York Authority took in 832,000 in 1947 in the six months ended Nov. 30 1947 its take counted up to over 636 000 In aviation concessions the Yearbook points out La Guardia Field has reached the highest development so far To travelers using its facilities it offers a score of flying services These include an automobile park newsstands barber and photography shops taxi and bus services an observation deck a postoffice drug stores even clothing stores La Guardia gets thirds of its total income now from fees from such concessions the association reports income from actual flying activities supplies only a third But not in Profits so La Guar- dia Field has yet to show a profit al- though its revenues have risen sharply since Port Authority took over from BUSINESS WEEK Nov. 13 1948 with oye love ! a Poe ' : a It's really a dream I go for its rugged streamlined beauty I'm mad for the quick and easy way it helps me get things done IfI were a kitten I'd be purring right now because that wonderful Corona typewriter has made my job happier ever since I got it Typewriter of the experts THE real professionals stenographers and letter shops for instance ago recognized the outstanding speed and stamina of Corona It does a world of work with a minimum of effort ... stands ... it has every typing feature you need Particularly you'll enjoy its different touch so easy and free from jar and shock When you graduate to Corona you'll use the typewriter of ; the experts andyou'll love it - Corona Office Typewriters ae oy LC SMITH & CORONA TYPEWRITERS INC SYRACUSE NY NY Canadian factory and offices Toronto Ontario -_ . Makers offamous Corona Portable Typewriters Adding Machines Duplicators Vivid Duplicators Ribbons Ribbons and Carbons , : 97 Who Insures America's Great 3 Cigarette Manufacturers? NOSTLY stocks of leaf in Warehouse giant manufacturing plants with their equipment and a challenging diversity of fire casualty ma- rine and other risks make the tobacco industry a large and exacting buyer of insurance protection Some of America's foremost tobacco companies - and many leading organizations in other fields of industry as well - retain Schiff Terhune & Co. to handle all their insurance _ requirements Consult us with- out obligatifoonr an insurance program designed to give you greater immunity against loss at lower cost Third of a series of advertisements showing how Schiff Terhune & Company serves American industry . Schiff Terhune & Company 99 John Street New York 7 N. Y.- ; NEW YORK CHICAGO SAN FRANCISCO 'LOS ANGELES MILWAUKEE 1 ERRORS + in your business _ Errors in copying records figures agreeme-notthesr important papers can cause embarrassment and cost you money Now make proof photocopieat satless cost than typing before they happen Right in your own photo anything on paper x 22 newspaper page size or smaller Make one or many copies quickly APECO machine copies things stencil duplicators can't saves sending out for stats Cuts typing drafting copying costs to 80 Eliminates checking Easily operated by any one in subdued office light Get details 67506750 STANDARD ACCESSORIES ADDITIONAL AP~ CO PHOTOEXACT i imo AMERICAN ee PHOTOCOPY EQUIPMENT CO SYSTEMS SYSTEMS 2849 N. Clark St. Dept. Chicago 14 III how Please send me your free illustrated booklet Short Cuts that tells I can eliminate errors with APECO Photo copying in my A business i H Name and Title .. eect e ence eae ras eneces une teoneeees sooo 1 Company .. cence crew r ene een e ee ne reer as ee tere seas oe eee soreceese Company Address . ears eet ese ene ee red bee 1 City and Zone . .State . mance ema nenes r City City 0 ft Sy me SO S00 OS ft YN st tt oom os om os wat mt 98 the city The sideline businesses brought in the cash But building them up was what put the Field in the red last year receipts were poured into further ex- pansion of extracurricular activities In the case of 83 separate airports fces from terminal concessions ac- counted for over million of reve- nues in 1947. Several airports the association notes actually were saved from going in the red by the added income they derived from such sources M akers the automatic insurance machines installed at their airports proved particularly profit- able to the cities of Baltimore and Knox- ville Hatbox Field owned by the city of Muskogee Okla is similarly reported to have done well with an airport hotel Cliff Manus Field the property of Corpus Christi Texas is also said to have picked up satisfactory extra income with an airport hotel and an airport theater FINANCE BRIEFS LIFE COMPANIES have recently bought new securities from Fibreboard Prod- ucts million Minneapolis Gas million St. Regis Paper 10million Russell Milling mil- lion Portland General Electric million Gerber Products million CHRISTMAS CLUBS of mutual savings banks will disburse million to members million more than in 1947 LARGEST BANK in Mississippi will come out of merger now planned by Jackson's Capital National and Jackson State National banks New unit will have resources of about million BOOK PUBLISHERS are still finding the going tough BW Sep.11'48 One small New York publisher M. McBride & Co. asking for relief under the Federal Bankruptcy Act EDGEWATER BEACH HOTEL in Chicago went for some million to a Boston group that operates eight residential and resort hotels in the East TRANSFER OF SURPLUS will increase capi- tal of New York City's National City Bank from million to mil- lion if stockholders approve Bank would up par value of present stock from 12.50 to 20 issue no new shares half FRAZER'S earnings have slipped They were million before taxes in the third quarter of about what they were in the same months Probable cause K.-F. had BUSINESS WEEK Nov. 13 1948 a ob. Pein ne _ pean oe a aa site | higher costs but didn't jack prices as high as some other car makers high EMIL SCHRAM has signed another threeyear contract as president of the New York Stock Exchange Salary is sup- posedly the 100,000 a year TO FINANCE a proposed 1949 outlay of some million for new construction Cleveland Electric Illuminating will try to sell million to million of new securities DAYTON may soon slap on a municipal income tax following the lead of sistercities Toledo Columbus Springfield OREGON VOTErs forgot all about financ- ing last week when they approved 50- month pensions allowances for medical and dental care Bill had no pro- visions for raising requisite sums bond houses are ignoring offering of Oregon's million veterans bonds MISSING SHAREHOLDERS will prevent the Pennsy from buying all outstanding stock of the Detroit Toledo & Ironton even if ICC OK's the deal BW Oct 23'48 For over 20 years no one has tracked down owners of seven shares WILL WALDORF GO to Hilton Hotels Unconfirmed rumor says the chain is negotiating for purchase of the famed New York City hotel How much will Embezzlements cost Employers in 1949 @ THE YEAR 1948 is not over but thus far it has revealed a rising trend in spectacular embezzlements not only in banks but in other businesses Some of these have exceeded half a million dollars During the past two years among banks alone there_ -~ were 37 losses of over 25,000 which averaged 144,000 each according to an article in Business Week These bank short- - - - ages were concealed for periods ranging from less than a year to 20 years The concealment factor is the reason that the losses don't show up in a " hurry says the same magazine -.. - ;- If he the embezzler is particularly adept he can keep all this hidden for years And our experience shows that in most cases it is easier to conceal a shortage in other- businesses than it is in banks a No employer need fear concealed shortages if he : has the protection of our modern DISCOVERY BOND which .- ' reimburses for losses discovered while the bond is in force __ regardless of when the bonded employee began to embezzle _ The trend constitutes a warning to you as an em- - ployer Ask our nearest agent or your broker to have our specialists review your Dishonesty Insurance Program Now And you will find that our Loss Prevention Service based . on more than 60 years experience can be a powerful aid in preventing shortages Fund Director Andrew N. Overby 39 has been appointed to the newly created post of deputy managing director of the International Monetary Fund Formerly a special assistant to Treasury secretary John Snyder Overby will act as chairman of the Fund's executive board in the absence of Camille Gutt Belgian chairman BUSINESS WEEK Nov. 13 1948 AMERICAN SURETY GROUP AMERICAN SURETY COMPANY Lek NEW YORK CASUALTY COMPANY >>? * | SURETY FIRE INSURANCE COMPANY Dependable as America 99 IN Sardines A CAN THE MARKETS a 110 rte Industrial Stocks ~ DAY _ | .~ SE 'BUSINESS WEEK ea AMERICA'S PLAN FOR INDUSTRIAL SAFETY -. Spot Commodities ELCTION MISSISSIPPI Offers Industry Room for PROFITABLE PEACETIME PRODUCTION MAXIMUM WARTIME PROTECTION America's future safety lies in _ ~ the security of its industrial ~ machinery For this and other ~ ~ reasons more and more indus- tries are seeking plant sites away from congested area -- targets Mississippi is the ideal state for dispersion because it offers industry pro- tection two major re- sources vital to peacetime industrial prosperity and war- time production Access to the world's largest fuel and energy reserves reservoir of intelligent rural labor willing and able to work For specific information concerning your requirements write MISSISSIPPI AGRICULTURAL & INDUSTRIAL BOARD New Capitol Bldg - Jackson Mississippi New York Office 1001 Two Rector Street 100 Fs Hy November November November November November November November November me wenent mnene oete Leteneaad Stocks Down Commodities Firm --::- Implications of Truman victory especially prospect of higher affects industrial and rail stocks Farm commodities strengthened by Democratic policy of vigorous price supports sto . sctok ck market seems to have made up its mind this week about the significance of the election For stock traders Truman's victory is pure poison chart above . Commodities Bonds markets don't take the same dismal view of what's ahead for them Commodities have firmed up significantly since election day Most of their strength has been in the farm group Industrial commodities have been steady imported commodities have turned a little shaky The government bond market also Security Price Averages Stocks This Week Industrial 148.0 Railroad Utility 43.3 67.3 Bonds Industrial 94.5 Railroad 85 Utility 93.5 W'eck Month Ago Ago 164.8 49.8 73.0 156.6 48.0 70 946 856 937 95.7 858 94.6 Year Ago 151.6 40.7 71.4 1009 85.1 99.5 Data Standard & Poor's Corp. has perked up considerably in the past week The Democrats are traditionally an easy money party And with Truman in the White House and John Snyder in the Treasury the market assumes that support of government bond prices at par will go on indefinitely Institutional buyers who had been holding back on the chance that the peg would be pulled started picking up terms immediately after election day Stocks Depressed Street isn't taking much comfort from the bullish signs in commodities and government bonds though The stock market is what most financial men watch And the stock market has been having a rotten time The first wave of panic selling spent itself quickly on the morning after election day But it was followed by a steady flow of scale liquidation This isn't freight selling in the ordi- nary sense It is carefully considered de- termined liquidation by big and little investors alike It is hitting the top quality investment chem- icals motors steels oils well as the cats and dogs In general heavy industry is suffering more from it than the BUSINESS WEEK Nov. 13 1948 consumer goods lines And that's a bad sign It was the heavy goods that put life into the market before the election Bearish Signs still a little early to sound taps for the bull market that was supposed to have started moving last spring But the pattern shaping up looks more and more bearish every day In the rally just before clection day the averages refused to go through their June tops 193.16 for the Jones industrials In the election slump they slid quickly through one resistance point after another And on Tuesday of this week the industrials dropped under their summer low point 175.99 There isn't another resistance point worth mentioning on the downside short of the old bear market lows around 163-165 The rails on the whole have turned in an even worse performance than the industrials On a strict reading of the Dow Theory you would have to say that a new bear market is already under way That would mean that the 1948 bull market ended last June e Tax Spectre the Dow Theory hasn't exactly distinguished itself lately And there's also at least one hopeful possibility Probably the biggest single thing that frightens the market now is the prospect of an excess profits tax The latest word from Washington is that Truman will go slow about asking for a levy on excess profits page 19 If that's true traders begin to believe the market may be able to pull itself together in coming weeks Election Prices Election Returns Early Effect on Stock Prices Industrial Common Stocks Jones Averages.. American Can : American Car & Foundry Amer Smelting & Refining American Tobacco.. : Anaconda Copper ....... Armstrong Cork . - oe Bethlehem Steel ... 2 1... 1948 High 193 16 92.75 49 12 68 00 69 75 41.25 56 75 39 75 Election Eve 189 76 81 75 37 37 6187 6187 64.75 38 12 53 00 39 25 Nov. 9 1948 173 94 79 25 31 50 52.75 59 00 33 50 45 50 33 62 Post Election Loss 8.4 3.1 15.7 14.7 8.8 12.1 14 14.3 Loss From 1948 High % 14.6 35 9 22.4 . 15.4 18.8 - 19.8 - 15 3 Chrysler Corp Du Pont General Electric General Foods General Motors 2 2... eee ........ Seon eee ......... 65.75 188 87 43.00 43.00 41 00 66 00 6100 6100 181 75 42 50 40.25 66 00 54 00 170 00 37 62 38 62 59.87 11.4 6.4 11.5 4.0 9.3 17.9 10.0 12.5 5.8 -- 9.3 - Gimbel Brothers te eee B. Goodrich . . Gulf Oil bene ke ee Int'l Harvester 1 ...... International Tel & Tel Manville 2 2 0... Kennecott Copper ... . National Steel ' ........ 25.00 64 50 81.00 34.25 16.50 42.25 60 87 114 50 21.37 64.00 64.00 75 12 30.25 12.50 41.00 60.87 111.00 19.12 56 37 65.87 27 25 10 00 35.75 53.00 97.75 10.5 11 12.3 9.9 20.0 12.8 12.1 11 23.5 12.6 18.7 20.6 39.4 15 12.1 14 Sears Roebuck ...... R. Squibb 2 ......., : Standard Oil N. J. .-. Studebaker Corp. Corp. Swift & Co eee eee 4287 4287 29 25 92 87 29 25 36 87 Union Carbide 1 . United Fruit . oe U. Rubber oe eee U. Steel gs, : Westinghouse Electric .. 43 25 58 50 49 62 87.62 33 25 Railroad Common Stocks Jones Average ... oe Atch Topeka & Santa Fe Atlantic Coast Line : Chesapeake & Ohio 68 31 120 62 62 00 45 25 Great Northern Pfd . Illinois Central 2... Louisville & Nashville . Y. Chic & St. Louis . 50 87 42 37 50 00 92 00 Norfolk & Western .. . Pennsylvania 0... Southern Pacific . ... Southern Ry .... Union Pacific 1 ... sone . 62 87 22 12 62 37 50 25 96 25 42.87 25 87 81.00 27 25 32.00 43.25 54 50 46 75 85.12 28 50 61 97 113 75 59 00 39.00 49 00 38 00 44 86 00 6287 6287 19 75 59 87 48 75 92 50 37 87 23 00 72.62 22.00 30 00 38 12 50 50 40 00 73.75 24 62 53.83 99 37 51 00 35 50 40 25 29 50 39 75 76 50 58.37 17 25 50 25 42 25 82.50 11.7 11 1 10 3 19 3 16.2 11 7.3 14.4 13 13.6 13.1 12.7 13 6 8.9 17 22 4 11 2 11.0 1 12.7 16.1 13.3 10.8 11.7 21 4 21 24.8 18.6 11.9 13.7 19.4 15 8 25 9 21 % 17.6 17.7 21.6 20 8 30 4 20.5 16.8 7 22.0 19.4 15.9 14.3 1 Adjusted for stock split ae BUSINESS WEEK Nov. 13 1948 NO It's TINY 7/ ~ but It's RUGGED a ee ~ MODEL Reset MODEL Y Reset COUNTER for STROKE and ROTARY APPLICATION This new Model Y Productimeter is easily adaptable as an integral part of office machines laboratory equipment meters voting machines electronic devices and various types of production machinery It's tiny . . . but it's rugged - small compact reset counter Designed particu- larly for application where high speed counting is involved . and precision built to give you years of service Send for Catalog Section No. 31 DURANT MANUFACTURING COMPANY 1906 N. Buffum Street Milwaukee 1 Wisconsin 106 Orange Street Providence 3 R. I. Representatives in Principal Cities- PRODUCTIMETERS SINCE 1879 - I< ee Prove profits yourself Install one Budgit electric hoist in your production assembly or inspection line or on your loading platform See how many valuable minutes an hour you save -how many dollars Note how the worker likes his Budgit for it makes the job so much easier Gone are his fears of rupture and sprains from lifting There are no installation costs Insignificant current consumption The hoist pays for itself over and over again for indefinite years Send for Bulletin No. 371 MAXWELL MANNING & MANNING MOORE MANNING MOORE MANNING INC TRADE MARK | BUDGIT Hoists MANNING MAXWELL & MOORE INC MUSKEGON MICHIGAN Builders of Shaw Cranes Budgit and load Lifter Hoists and other lifting specialties Makers of Ashcroft Gauges Hancock Valves Consolidated Safety and Relief Valves and American Industrial Instruments 101 LABOR How Labor Campaigned Unions spent nearly million find they can work best inside the Democratic organization Labor party is now a dead issue its advocates were too successful in electing Democrats Was the Democratic victory last week and perhaps taking it over a first short step toward a labor govern- been C.I.^ .'sobjective ever since it got ment in this country into political action A.F.L. has a similar This question came up inevitably goal But both C.I.O. and A.F.L. have when labor's role in winning the elec- strong advocates for a new party READ THIS tion became - evident Union leaders claimed got lot of the credit for Third Party -W'alter Reuther president of C.I.O.'s United Auto Workers American Layouts for . cutting ~~ profits Industriys using dimensional every type of industrial planning reducing increasing - a THINK a the greatest political upset in three decades Labor manpower and money had pulled the Democratic Party out of po_ litical bankruptcy As a result labor may be in a position have a commanding has been the most outspoken Reuther proposed three months ago that unions get together after the 1948 elections to form a genuine progressive political party The proposal has been discussed . _ HOW IS YOUR PLANNING - position for least two years quietly in union conferences since that + BEING DONE - -@ Political rewards for labor are time It got unexpected support when an the perhaps excessive cost of layouts a hidden certain Complete overhauling of the A.F.L. president William Green was Is one . Hartley law may be only a small quoted as favoring a new labor party ~ . Visual Planning models cost far less than paper 7 ~~ templets no translation part of what labor ultimately will get Green subsequently denied that he had aa For brochure catalog & price list page 19 Broad social controls and come out so flatly for a new party or wire reforms economic planning and gov- The labor party advocates worked write ; ernment regulation of the economy are hard this fall campaigning for labor- VISUAL PLANNING EQUIPMENT CO INC of labor's > endorsed Democrats They didn't ex- OAKMONT PENNA part program er Test Case week's election was a pect a sweeping victory Their own goal Memtenr one - crucial the wing labor bod- was election of as many good congress- | ies It was a test of 1 whether labor men and senators as possible in the > could rally housewives farmers liberals 1948 elections as a base from which ae and other behind a common pro- to work Their big fight which might AGuAtoSmatic REZNOR FIRED UNIT HEATERS gram and 2 whether labor could carry on its political efforts within the frame- work the Democratic Party lead to an actual government by labor was on the schedule for 1950 and 1952 Dead Issue labor third party is WHERE SPACE Working with one of the major par- now a dead issue The election results IS VALUABLE Why burden working space with monstrous heating equipment Keep floor areas open for work space by installing an attractive Reznor sus- pended automatic unit- heating system Without fuss or muss the Reznor heat- ing system can be quickly installed Features such as the special heat exchanger and the big quiet fan efficiently maintain even temperature where you want it Write for catalog SUSPENDED pee OR FLOOR MODEL 23 NO BOILERS NO STEAM LINES NO FUEL STORAGE NO FIRE TENDING REZNOR MANUFACTURING COMPANY MERCER 3 PENNA Gas Heaters Since 1888 102 a my wean C.I.O. CAMPAIGN HEADS Jack Kroll left and Philip Murray got out votes ie BUSINESS WEEK Nov. 13. 1948 Laeitwait A.F.L. POLITICAL GUIDE George Meany was just as effective in labor victory strengthened the hand of those who have argued all along that a new party would be too risky As long as the Dem- ocrats let labor have an influential role in the government though not a controlling unions will be satisfied Labor's gains are emphasized by comparison with accomplishments in earlier elections In 1946 for instance unions tested their political strength in 14 election contests They lost 13 and the other was only a partial victory labor was divided on the winning candidate This year unions endorsed 19 candidates for the Senate alone All were Democrats including four incumbents Sixteen of the candidates won The only setbacks were in Kansas Michigan and New Jersey Unions also endorsed 217 candidates for the House of Representatives Fa- vored candidates won in 167 of the con- tests almost 80 N o Unions gave belated and comparatively lukewarm support to President Truman He wasn't the man they wanted as a candidate labor has always suspected that Truman is inherently conservative What they accomplished in his behalf therefore is far more significant politically than votes garnered by laborites while riding the late President Roosevelt's tails This time the showmanship and hoopla of Political Action Committee campaigning was missing This undoubtedly led vote experts to underestimate labor's activities its potential ballot strength Instead unions used triedtrue political campaign techniques C.I.O. worked with farm groups par- ticularly ticularly in Iowa It got together with A.F.L. Railroad Brotherhood and other union political committees for unified BUSINESS WEEK Nov. 13 1948 WIL the Ohio Market Hogs are important Ohio farmers they're not everything No sir in the Buckeye State farmers believe in a variety of products Thus they avoid the ups and downs of a single product and have money coming in the year around : a Now that's one reason for Ohio's STABILITY . a stability inciden- tally that's rarely found in other upper third farm states Another reason for this stability is the proximity of Ohio farmers to their markets Because they're only minutes away spend less money in selling - save money for buying i - Then there's age mighty important indication of stability And Ohio's been a great farming market for more than one hundred years Indeed THE OHIO FARMER has been bringing the latest farm news _ - to farm families for all those many decades Today THE OHIO FARMERFARMER still the favorite with two out of every three Ohio farm families > -. ~ .- Golden Crescent Stability your best profit hedge in the farm market No farm area of equal size and wealth can match the stability of The Golden Crescent It has greater age more market cen- ... a larger variety of products Served by MICHIGAN FARMER THE OHIO FARMER and PENNSYLVANIA FARMER TheGolden Crescent safeguards your profits through the ups and downs of the farm market For further information write 1013 Rockwell Avenue Cleveland 14 Ohio THE OHIO FARMER Cleveland MICHIGAN FARMER East Lansing PENNSYLVANIA FARMER Harrisburg 103 wo TOLEDO SPRINGS WEIGH WEIGHT a c = ca Chemical laboratories depend - on Printweigh accuracy ot Costly materials : eliminated by Printweigh | Printweigh keeps stock room records RIGHT Prints BIG ACCURATE weights -with second speed @ Control your costs with Toledo PRINTWEIGHPRINTWEIGH Scales modern answer for bookkeeping problems of industry No human mistakes in reading remembering and recording can slip in Get set now with PRINTWEIGH speed and accuracy . keep weight records righitn receiving shipping batching Write Toledo Scale New illustrated bulletin No. 2021 shows Better Company Toledo 12 Ohio Ways to control costs = TOLEDO HEADQUARTERS FOR SCALES 104 house campaigning Duplica- tion of effort was cut way down And C.I.O. and the other labor politicians followed through from registration to political education of the voter to the poll itself They rented automobiles on election day to get voters to the polls They furnished sitters for families on labor's vote list including idle bartenders who agreed to handle different kinds of bottles just for the day They used the telephone to remind the right people to vote or rang doorbells in doubtful pre- cincts The effort paid off In Illinois A.F.L. and C.I.O. had 17,000 members pushing doorbells 13 000 of them worked in Chicago Result In Cook County 82 of all registered voters went to the polls compared with 72 in downstate Illinois It's political tradition that a small vote is a Republican vote This time BUSINESS WEEK respondents in most of the country made the same comment about the election in their territory The voters who showed up were Dem- ocratic voters drummed up by labor the Republicans stayed away Money The unions also kicked in heavily when the bankrupt Demo- cratic National committee needed funds Typically P.A.C. turned down an advertising firm proposal for a C.I.O. pub- licity program to cost 650,000 It was the sort of thing the old P.A.C. would have bought The new version directed by Jack Kroll and Philip Murray de- cided the money could be used to a better advantage m precinct work The expenditure didn't show up spectacu- larly but it was more effective In all C.I.O.-P.A.C. spent about 500,000 nationally plus 1,200,000 in the field A.F.L's newly organized Labor's League for Political Education headed by George Meany spent about 1,000,000 These weren't the only union political expenditures A.F.L. and C.I.O. affiliates and other major unions also spent liberally it would be of real help to the Democrats In addition C.I.O. took about 4,800 of its field employees off regular jobs and put them to work in the campaign They worked in Democratic offices in many places took over important committee jobs in some spots Where they did they are hanging on to them A.FL. and ~ I.O. are firmly en- tienched in the Cleveland Democratic organization for example The Wayne County Mich Democratic committee is strongly influenced by Reuther and U.A W. and in Minnesota the Democratic Labor Party is in the hands of union men and labor representatives of Americans for Demo- cratic Action Key Importance of the Taft- fight Hartley law in labor's election can't be minimized It was a made BUSINESS WEEK Nov. 13 1948 order issue for getting P.A.C. dollars precinct workers and the labor vote ^ n many instances the H law was the only important issue at stake The basis for indorsements in Illinois for instance was Do you favor repeal of the H act The election might have been another story H hadn't been on the statute books So the test of how strongly labor will remain in politics may come in when H probably will be an- cient history on cutting fuel bills in Half LABOR BRIEFS CASES PENDING before NLRB dropped % in September to 9,348 The Board disposed of 4,054 cases got only 3,082 new ones 2,521 petitions for elections 453 unfair labor practice charges against bosses and 108 against unions COMMUNIST AFFIDAVITS have been filed by 98,256 union leaders a 9,234 increase since Sept. 30. H requirements now have been met by all but 11 of A.F.L.'s 105 unions six of C.I.O.'s 37 REMINGTON RAND employees in Syra- cuse voted to let U.A.W. represent them They turned down 1 Interna- tional Assn of Machinists and 2 a plea for no union votes by U.E. the former bargaining agent EIGHT BREWERIES in New York City seek 8,275,000 in damages from C.I.O. Brewery Workers and five locals Grounds a wildcat strike Nov p106 International union is a defendant although it repudiated strike SUGGESTIONS have netted Rand employees 100,000 More than 5,000 ideas Remington since 1945 have been During New England's severe winter inadequate and employees spent valu- of 1947-8 the J. C. Corrigan Com- able production time huddling around pany Inc. of Dorchester Mass cut the stoves its fuel bill nearly 50 by installing a DRAVO Counterflo Heater Coal for the previous winter season had cost this company between 1100.00 and 1200.00 whereas only 652.00 was spent for oil to fuel the DRAVO Heater during a similar period Besides fuel savings the maintenance expense for the old heating system was practically eliminated be- cause the DRAVO Heater operates automatically by thermostatic control Even more important says J. C. Corrigan President part of our substantial increase in production this winter was due to the improved : heating system Employees in the Corrigan plant manufacture custom conveying systems and need adequate warmth for efficient fitting and assembling" Previously the plant heated by a coal burning furnace using blowers and ductwork to distribute the warm air Excessive roof heat losses in this . 165 70 27 building preventeidt from being comfortable To heat cold spots that developed eight bellied stoves were installed | Maintenance of this old heating meth- In November 1947 one DRAVO Counterflo Heater with an output ca- pacity of 2,000,000 Btu was installed No ductwork was needed Only fuel and power lines had to be connected and a vent stack installed Now the entire factory area is maintained at the proper degree ofwarmth for workers ~ comfort and efficient production During zero weather last winter -- the single DRAVO Heater delivered .. enough heat within 20 minutes after it was turned on to satisfy the ther- ~~ mostat's Moreover the DRAVO Heater is shut down to con- serve fuel during working hours whereas the coal furnace had to be fed ~~ over week while the plant not in operation to maintain some ~ warmth for the Monday morning shift ~ ~~~ _ DRAVO Counterflo Heaters burn 2. oil gas or coal Units burning non- . solid fuels can be converted from one fuel to another very readily Coal- fired heaters can be converted for - burning gas or oil DRAVO CORPORATIHOeaNt- ing Section Dravo Bldg Fifth and - Liberty Avenues Pittsburgh 22 Pa od required three hours labor every adopted Top awards 1,500 AN EMPLOYER can urge his employees in private talks to vote against a union in an NLRB election he doesn't make any threats The board said so in the Mallinckrodt Chemical Works case day Coal and ashes had to be hauled through the heart of the busy plant Even with the eight stoves to supplement the fired furnace heat was * DRAVO| CORPORATION Pittsburgh Cleveland Philadelphia Detroit Cie WAGE INCREASES ) American Potash New York * Chicago Atlanta Boston i & Chemical gave 11^'an hour to C.I.O. Sales Representatives in Principal Cities employees 2 a Newark N. J. arbi- tration award raised Public Service Co- ordinated Transport employees A.F.L. 13 an hour now 15 after next Apr. 1 i ; 5 | | I Function d | ; DRAVO CORPORATION Heating Section Room 812-11 ! Dravo Bldg Fifth and Liberty Avenues Pittsburgh 22 Pa I We would like to consider DRAVO Counterflo Heaters for Heating Heating 1 Name 20.02.0500 wee nee Comfort SOLOMON BARKIN C.I.O. textile union 16 with Title . ce. ce cere eee eee Year round Ventilating research director is latest union official borrowed to help make ECA work He will study the British textile industry serve as consultant to ECA administra- tor in Great Britain I just ONE | UNIT UNIT i ee A A ce RR A SE Ez Company 000200 wees ............,. Process Drying | a 22 i Address 0... 00.0. c cee eee eee . Tempering Make Air City | and State 2.6... cece eee Heat Curing 6374 | I AS GS ce MOE NI GRE SY Sey RE LS Re OE ote me ani BUSINESS WEEK Nov. 13 1948 : 105 FOR MAXIMUM PROTECTION PITTSBURGH CHAIN LINK FENCE Your property your equipment are protected against thieves meddlers and the curious when Pittsburgh Chain Link Fence is on the job Also the coming and going of your own employes is regulated which in itself can save you money both in time and ma- * terial We have been planning and erecting good fence for many years experts will be glad to give you advice and a cost estimate Write to Pittsburgh Steel Co. 3249 Grant Building Pittsburgh 30 Pa ShrGaip n Shrkins ks Skilled workers percent untutored that there are fewer untutored laborers And the starting worker is worth more to the boss * Regional Differences can see gains haven't kept pace with those for unskilled skilled these factors at work in the labor mai- ket by looking at regional variations The biggest average spread between do better too skilled and unskilled wage rates is found m the South as compared with Before the war a skilled employee in a manufacturing plant pulled down 65 more pay than an unskilled worker Now he only gets 55 more which means that he has made a smaller per- the national average of 55 The rea- son There is a large pool of unskilled labor while highly skilled workers are hard to get The smallest spread 45 is in the Far West It is harder there to find un- centage gain in wages than his unskilled skilled workers Industry can attract aN worker them only with a higher starting wage oe This in turn creates a new problem rate e for employers It accounts for much of S killed Workers on the me the discontent and lagging morale of narrowing maigin between skilled and ee highly skilled workers whom em- unskilled workers leave out the we ployers rely the most for steady high- occupational group largest skilled level production Their wages have gone up almost as Narrowing Gap narrowing of much as those of unskilled labor in most ne . the wage spread isn't anything new industries Statistics for only 3 years Before World War I the gap between are available October 1943 to April merin in unskilled and skilled pay was 105 1947 but thev tell the story Increases It narrowed to 80 in the 1931-1932 during the period amounted to 35 Ke depression years And it has been be- for skilled workers as compared coming less almost every year since then with 28 for skilled and 36 for un- This doesn't mean of course that skilled labor | differentials have shrunk on a cents skilled workers gained more than hour basis skill pay has gone up any other group in the textile and about 100 since prewar days un- ap- parel industries because there skilled rates 115 But these percent- ' are so many incentive plans which cover ewe age raises added more actual cash to the only skilled operations we skilled worker's pay envelope than to T he Future Bureau of Labor the unskilled worker's as compared Statistics has estimated that the long- in e t with 60 hourly increases term trend has been a shrinkage of % Buying Power Here's what really a year in occupational differentials The the - bothers skilled worker today short trend is determined in large The unskilled worker's pay has risen | part by the pattern followed in annual SPRINKLERS third faster than the cost of living wage settlements f FIRE calls 4 . THE AUTOMATIC FIREMEN ... while his own rate of increase has barely A flat percentage increase as 1 ' The the firemen -An`automatic -An`automatic _ kept abreast of the of And he is that given this year in the steel industry i FIRE ALARM is a feature of the being tapped more for federal taxes -maintains the percentage differential t GLOBE than before i Sprinkler System It operates while the in rates Highly skilled workers favor sprinklers are extinguishing the FIRE As a result many skilled workers this kind of settlement It off best Safeguard your property with this device have suffered real losses in living stand- for them pays Why depend on a passerby for a midnight FIRE alarm GLOBE AUTOMATIC SPRINKLER CO New York Chicago Philadelphia - Offices in nearly all principal cities ards since prewar days Some blame it on their unions Most blame it on the employer No matter which they do their discontent shows up in morale and productivity Why the Trend narrowing wage gap is due to a combination of factors Unions have pressed and won- sizable increases in minimum wage rates Competition by employers for un- Unions generally prefer a uniform cents raise for all job classifications Such a settlement agreed on this year by almost all industries except steel appeals most to the large number of union members who are paid less than top rates It means a bigger gain for them It also squeezes the differ- ential between pay extremes still further When You Have skilled labor in a tight labor market always narrows the wage spread The gap Industrial or commercial real estate for sale or lease you can advertise it for national or local attention in the REAL ESTATE SECTION of widens again when the labor pinch ends but it is never as great as before Mechanization of factory work has cut into the demand for highly skilled workers It usually requires less skill to run a machine than to do the same job by hand And workers can be trained more easily and quickly to run the ma- The Pictures Harris & Ewing Int News Wide World -19-22 Acme 25 84 British Information Services mid bot European ~ 117 Fabian Bachrach Harris & Ewing102 103 Int News 89 mid 94 108 Keystone BUSINESS WEEK chine than to do a craftsmanlike hand operation 120 Y. State Dept. Labor- 39 Wide World bot More education general and _ 106 BUSINESS WEEK Nov. 13 1948 wien : G. N. ALEXANDER will be the Fifth G. M. Umpire In Eight Years Gabriel N. Alexander newcomer to the big league of labor arbitrationwill step into one of arbitration's toughest jobs next week He will succeed Saul Wallen as impartial umpire for Gen- eral Motors and the United Auto Work- ers C.I.O. Wallen was ousted recently after a decision against the union BW -Sep.25'48 Alexander will be the fifth man in the job in eight years Alexander is a Detroit attorney he has done occasional arbitration work since his graduation from the University of Michigan law school in 1933 He handled a number of special unionshop cases for G.M. and U.A.W. while Ralph Seward Wallen's predecessor was umpire He has also arbitrated cases involving a number of other C.I.O. unions A.F.L.'s Teamsters and the In- ternational Assn of Machinists TO RULE ON ANTI OATH The Supreme Court this week agreed to rule on the legality of the Com- munist affidavit clause in the Hart- ley one provision which may sur- vive congressional overhauling The affidavit clause bars unions from using the National Labor Relations Board unless officers swear they aren't Communists The leftist American Communications Assn C.I.O. has challenged this requirement Earlier this year in a hearing before a special judge federal district court the union alleged that it was barred illegally from an NLRB election NLRB said A.C.A. wasn't eligible for the ballot at Press Wireless Inc. because union officers hadn't signed affidavits The lower court upheld NLRB the H law A.C.A. appealed BUSINESS WEEK Nov. 13 1948 Commercial Controls Model 970 Scale 70 \ lb. capacity with New 1949 Rate Chart ALL scales with postage computed at present rates become obsolete January 1 1949 That's when numerous changes made by the Government become effective New Commercial Controls Scales embody- ing the necessary changes are designed to handle your requirements for all types of mailing Get your order in NOW for delivery in December The -- : same accuracy precision and convenience is built into these new scales that has characterized Commercial Controls Scales for many years You - can depend on these distinctive features to save you time and money The new Model 970 Parcel Post Scale 70 lb. illustrated above in addi- tion to showing changes in parcel post rates includes third class book rate and the new air parcel post computations The new All Purpose Postal Scale 30 lb. capacity same model design as illustration includes com- putations on first class air mail third class surface and air parcel post NEW 1949 LETTER SCALES Model 10010--20 21000 -20 ozs or 3 lbs Capacities Shows new postage computations on first class air mail third class also air and surface parcel post For further information call Commercial Controls . . listed in your local telephone directory For NEW POSTAL RATE WALL CHART send 25c in coin to Commercial Controls Dept. BW Rochester 2 New York ontrols ' CORPORATION . Metered Mail Systems Letter and Parcel Post Scales Letter Openers . Envelope Sealers Multipost Stamp Affixers Mailroom Equipment Endorsographs # Ticketograph Systems Automatic Stamp Vending Machines Mail Bags T yers = cf >. 1.4 Automatic Typewriters Sales and Service Offices in Principal Cities a _ Rochester 2 New York - Commercial Controls Canada Ltd. Toronto 1 Ontario > 107 PLYMOUTH DODGE Chrysler SOTO CHRYSLER Easy on Overtime Auto Workers don't want YOU GET THE GOOD THINGS FIRST FROM CHRYSLER CORPORATION to stir up Congress on overtime -DIVIDEND ON COMMON STOCK The Directors of Chrysler Corporation have declared a quarterly dividend of one dollar 1.00 per share on the oustanding common stock payable December 14 1948 to stockholders of record at the close of * business November 15 1948 . B. E. HUTCHINSON Chairman Finance Committee when the Capitol is in a mood to forget about it The United Auto Workers C.I.O. won't push suits against employers for pyramided overtime U.A.W. has told regional and local union officers to preserve contract arrangements where they have proved fair and equitable Thus its formal position on overtime time Oct.16'48 is to go easy Reason attitude is highly sig- Do Heavy Lifting Easily with a HYDRO Truck and Shop Crane - A fast lifting 2000 hydraulic crane for in- dustrial plants shops - garages delivery trucks etc. Boom folds out of way when use ) L Assures quick V^asy lifting of heavy loads with complete safety No danger of strains or her Inia - \f <-> May be used as truck or shop crane Provides utility of two cranefsor _ pricoef one Low priced Immediate delivery _ Write for FREE Bulletin CARDINAL CORPORATION 1835 University Ave. ST PAUL MINN nificant Management wants Congress to amend the Fair Labor Standards Wage Act early next year That would wipe out management liability for back overtime under recent Su- preme Court decisions by redefining overtime Now Congress may not act on the issue at all U.A.W.'s legal staff has made a broad study of the Supreme Court decision As a result the union executive board says that U.A.W. does not intend to stretch the Supreme Court decision in an effort to pyramid overtime rates or to repudiate legal contractual provisions for computing overtime pay At the same time it does not intend to permit any employer to use the Supreme Court decisions as an excuse for doing away with premium pay for work on holidays Saturdays Sundays and shift differentials It is entirely possible within the A.F.L. LONGSHOREMEN final offer prior to NLRB check vote bosses Longshoremen Strike Hits East Coast Docks law to preserve contract arrangements where they have proved fair and equit- A.F.L. longshoremen on East Coast able , docks quit jobs this week as an day clues Turning the Searchlight on Opportunities Published as space is approximately once a month Rate 400 words for box number per line minimum 3 lines Address replies o Business Weck '.Holiday U.A.W.'s legal staff has at the same time a new opinion on holiday pay It's a friendly interpreta- tion of contracts says in effect strike injunction expired National emergency provisions in the Hartley act had failed for the second time to avert a potentially serious tieup The South Africa e INDUSTRIAL OPPORTUNITIES Engineer business background good organizer intimate 1 Regular pay for holidays not worked IS not payment for hours first failure involved C.I.O. longshore- men on the Pacific Coast employers knowledge S A. desires join company planning worked It can't be included in figuring Members of the International Long- overseas expansion there to conduct groundwork from conception thru planning construction the regular rate of pay for the week- shoremen's Assn A.F.L. formally ey operation Box 7017 European Editorial Position on which overtime is paid for more than voted to reject final offer @ YOUNG WOMAN with engineering rela- 40 hours work a week of contract terms picture above They journalistic education and experience is seeking a responsible editorial position with an American 7019 organization in Western Europe Box 2 If work is done on a holiday the extra and only the extra pay- later turned down an even better set- tlement which Joseph Ryan I.L.A. Truck Fleet Executive should be included in figuring the reg- president described as satisfactory a fi TRUCK FLEET Operators An executive with over 20 years experience in truck fleet operation desires to change positions Knows procedures from shop through ofbce Experienced in single shop or scattered fleet Exceptionally good on organizing and setting up iontimes to reduce costs Box 6956 ular rate of pay Straight time pay for the day would be idle pay worker would get it even if he didn't work So if he worked and got double Opposition was led by a wing minority in New York City but rankfilers all along the coast joined in The East Coast flarcup came at a pay only the second half of it would be figured into the base rate Since it would be the same as straight time for one time when there were signs of possible labor peace on Pacific Coast docks Negotiations were resumed this week Longshore- tee day it wouldn't change the base rate between the International See AVAILABLE EXECUTIVE PRESIDENT 3 Some contracts specify straight men's & Warehousemen's Union cde bargaining WORKS MANAGER OR COMPTROLLER time for holidays not worked and pro- C.I.O. and employer rep- agreed EAS Soundly balanced management ordinator Able to add skill as top know vide an additional double pre- resentatives Bosses to resume Peteke strength and execution where needed for in- mium if work is done In such a case talks when assured C.IO. C.IO. would guar- ie eee creasing profits Now on Pacific Coast used in com- antce that I.L.W U. will live up to P. W. 7027 Business Week the double time would be > 621 S Hope St. Los Angeles Calif ae SRE 108 puting the base rate Bla terms of any contract it signs BUSINESS WEEK Nov. 13 1948 Rail Pay Puzzle Should employees of mine road get mine scale or railroad scale That's the basic issue in the Kennecott Copper strike Sometimes railroad men on mine mill railroads belong to the same union as the mill workers This is particularly true in the steel industry In other Industries employees on mine or minemill roads often belong to the big railroad brotherhoods P roblem such cases should wages follow railroad pay rates or industrial pay rates This question has caused trouble for a good many companies in recent years And it's the key issue today in a labor dispute at Kennecott Copper Corp.'s mine in Bingham Can- p36 yon Utah 30'48 Kennecott operates two rail lines at the mine One goes down into Bingham Canyon to haul ore The other carries ore from the terminus of the mine road to mills and crushing plants in Magna and Arthur Utah Employees on both lines are mem- bers of the Brotherhood of Locomotive Firemen & Enginemen The company agrees that the second line is a bona fide short railroad and pays its engine crews prevailing railroad wages But it insists that employees of the mine road are actually production work- ers so it pays them the mine scale- considerably less than their fellow unionists on the other line Demand month the Brother- hood demanded that Kennecott pay the same scale on both lines 4.08 The union first asked a increase increase for the mine railroaders Later the demand was cut to 2.71 The com- pany offered 96 a day same 12 hourly increase accepted by Kennecott mine and mill employees S trike workers struck three weeks ago when wage talks collapsed The company protested that the stop- page was an attempt to force a new round of increases It warned it would not contribute to a new inflationary spiral by raising its offer The strike tied up the nation's big- gest supplier of copper about 30 of the country's output than 18,000 tons a month been coming out of Bingham Canyon Federal mediators sought a settlement as the walkout en- tering its third week threatened to halt the government's stockpile purchases of 10,000 tons a month But by midweek posi- mediation dented the firm mediation hahda nd 'tn't tiotn ion of either party The rail posi- union was willing to let the dispute go to a federal finding board the proposal Kennecott refused BUSINESS WEEK ; Nov. 13 1948 se sort HEN these criminals sighted a Cyclone Fence they had to re- to subterfuge Unfortunately for- them they've just discovered that the best laid schemes o mice m",,gnang _ aft gley Burns em up too Thugs and trespassers don't like a Cyclone Fence property owners do Plant executives have long known depended upon entrance and exit control a Cyclone Chain Link Fence provides And Cyclone's - popularity didn't just happen Its special features of design construction and installation stem from over 50 years experience in making fence No wonder a Cyclone Fence stays taut and true under the stress and strain of long service Why not send for our free book- Your Fence It's fulolf interesting facts about the world's most widelyused property protection fence It contains specifications and illustrations If you want help in planning fence have a Cyclone sales engineer assist you There's no obligation incurred And don't forget No job is too largeno job is too small for Cyclone CYCLONE FENCE DIVISION AMERICAN STEEL & WIRE COMPANY WAUKEGAN ILLINOIS BRANCHES IN PRINCIPAL CITIES UNITED STATES STEEL EXPORT COMPANY NEW YORK U.S.S CYCLONE FENCE Cyclone Fence Waukegan Ill Dept. 4118 We'll send you our free page book on fence It's full of facts specifications illustrations Shows 14 types of fence Before you choose any fence for your property get the facts about Cyclone Name 2... 2. eee ee ce ee ce ee nee ee eee ene Address 0. ee ec eee ce eee een ee nee ene eee een er nee cere ents City bee edet eee eecee ceeetee teen seeees SSttaatete ... . Interested in fencing Industrial School Playground Resi- dence Approximately ..... 0.00 cccccceeeececeeceeeeeeereeeues feet } . - 109 an FRANCHISE AVAILABLE For Territorial Distributors Our engineers have just developed the most bulhant window electric sign ever produced Yes more brilliant than neon by light meter test It's new different and sells at d pice that assures quick sales . . an outstanding value and big earnings for you Endless hist of prospects Prefer firms and men who have an organi- zation or staft of salesinen m the field and will be responsible for certain tenitores sectional or state Quotas will be required but no financial investing or stocking of merchandise Write or wire for full particulars OHIO ADVERTISING DISPLAY Bldg B OADCO PLANT CINCINNATI 2 OHIO CO : 203 a em aoe . Mane ta, 4 oe mee be ee 32 aA COMPANY STORE in Jacksonville Fla offsets high food cost wage demands | Company Store Keeps Wage Demands Low ~+ No one would be likely to guess that men He found that their biggest worry worry HANSEN TACKERS a company store might prevent labor from asking for a big wage raise No - one that is but the Jacksonville Fla was high food costs The company put up a 12,000 store building in theJacksonville Coach yards IT'S no trick with the Hansen Tacker with its Balanced Drive to do all those tacking fastening and assembling jobs_ faster easier better Learn why Specify . your tacking needs Request details . Coach Co. Ca ' F ood Expense spring the comfigured that the biggest single ex' pense item that 549 employees faced food decided to set up a com- It put in 6,000 worth of modern equipment spent 10,000 at the start for a wide stock of brand groceries and grade meats To operate it the company hired an experienced store man- HANSEN L. HANSEN MFG CO HANSEN 5130 RAVENSWOOD AVE CHICAGO 40 ILL pany store which would sell them gro- ceries meat on a nonprofit basis ager and four clerks Name tags entitle employees to make The food savings were so big that the purchases at the trading post for employees loved this company store either cash or credit The tag also may ".. INVITATION to BUSINESS GROUPS During the quieter months of December January and February THE HOMESTEAD at Hot Springs Virginia invites small business groups up to 100 wishing to meet in surroundings of dignity comfort and restful beauty Ideal from opened What the company hoped was that they would love it well enough to keep their round " wage demands down They did The union asked and got hike that could be granted with- out a fare increase Problem Solved Jacksonville be used by members of the family and is a pass for a free ride on company buses to and from the store Good Business store got big business from the start Employees found that they could save up to onethird The markup on items costing up to 12 at wholesale is ; on items cost- for concentrating on the work at hand away from urban distractions Every facility for making your meeting successful No lost overnight from all Eastern Coach this outcome solved a problem that loomed last spring Bus passenger traffic was down sharply costs were at ing more than 12e wholesale the markup is 1. The markup is intended to cover day operating costs the and Midwestern cities For information a record high and still trying to push company meets overhead write Harold P. Bock General Manager The Homestead Hot Springs Virginia higher The company was in a andtuck fight to break even Savings on food are roughly equal to a 15 to 20 raise Possibly as a re- The A.F.L. Street Electric Railway sult of it union demands weren't heavy employees local at Jacksonville was ready Negotiations brought a quick and to come up with round wage de- friendly contract agreement The com- mands Other companies already were pany store wasn't brought into the dis- a negotiating on 30 to 40 demands cussions or made a part of the contract The Jacksonville company couldn't give Thus it remains wholly a voluntary more than an hour without asking offering by the company for employees is sold only by subscription to for a fare increase It didn't want to e Sales Currently the store's sales management who are iden- do that Biggest Worry company and are well over 18,000 a month the trend is upward Revenue from the Ss le tified by their titles and business union have always been on friendly markup so far has been enough to meet a connection the who make terms The company's labor record is running costs and to have little left OS men considered a good one by A.F.L. and over The company recently built an EEE or influence buying decisions employec morale is high So Jackson- addition to the original building so that ville Coach's general manager J. M. it can buy in carload lots at cheaper Moore could talk informally to union prices 110 BUSINESS WEEK Nov. 13 1948 es Nye ae ***** | What Is a Strike Mass quitting can be NLRB finds in nailing down H definition But unions aren't necessarily responsible If a lot of your men quit at once is that a strike It or at least it's per- suasive evidence of one Concerted Stoppage course may- be your workers can give a sound reason for quitting their jobs Then it's a different story But if they can't their action is to be construed as a concerted move for a common cause And con- certed stoppage of work is a strike by Hartley law definition But the union isn't responsible unless you can prove that it initiated promoted or sponsored the walkout First Time is the meat of a de- cision just handed down by a National Labor Relations Board trial examiner For the first time NLRB has had to interpret the Hartley definition of a strike The decision conforms with the view expressed recently by the Federal District Court at Knoxville Tenn Sep.25'48 But it looks as though the full man NLRB would review it at the request of the union International Brotherhood of Electrical Workers A.F.L. T he Case company in the case is Anderson Co. which maintains and operates the electrical distri- bution system at Oak Ridge Tenn All but one of the company's 115 maintenance electricians and linemen quit their jobs on July 29 and 30. About the same time the Kaiser Electric Co. Knoxville nonunion subcontractor be- gan installing fluorescent light fixtures in a school Anderson's union men had demanded that a company using union electricians get the job Most of the I.B.E.W. workers stayed away until Sept. 2 when an injunction was issued against the stoppage On Their Own week NLRB Examiner Arthur Leff turned down the statements of 13 employees who said they had quit their jobs on their own The workers made their statements to support a union claim that there was no strike The H law provides that nothing in it shall be construed to make the quitting of his labor by an individual employee an illegal act give Leff said none of the employees could give a specific reason for quitting Most of them left after reporting for work or in shift But they couldn't cite anything that had happened at the mo ment to make them quit as individuals R esponsibility trial examiner said that I.B.E.W. did not formally call a strike or hold a strike vote He said BUSINESS WEEK Nov. 13 1948 DISAPPEARING TRICK We love the sight of modern motors We should because we build them But nothing pleases us more than does the trend to built drives There's a real trick to devising compact designs which work dependably though hidden from view That's why sight means mind to manufacturers using R & M power .. NOT MAGIC GOOD DESIGNING are not jobs for regular motorbs ut Robbins & Myers Matched Motor rotors stators and other elements that meet size and shape limitations Home appliances and portable tools are typical product examples yet the uses of R & M motor parts are surprisingly and varied BUILT POWER PAYS OFF the Maginniss Electric Concrete Vibrator below R. & M motor parts are so skillfully concealed you'd scarcely believe them there A vibrator head only % outside diameter contains the rotor stator bearings and an eccentric weight that turns 10,000 r.p.m. You can see how simple it how convenient and easy to use FOR YOU TOO you are interested in electric powering that means smaller lighter products we'll be glad to mail you our timely page booklet Matched Motor Parts experienced and truly cooperative engineering aid also is yours for the asking Please address Robbins & Myers Inc. Motor Division Department A118 See the motor It's Here ROBBINS & MYERS INC SPRINGFIELD 99 OHIO BRANTFORD ONTARIO MOTORS +s HOISTS . CRANES . FANS . MOYNO PUMPS a ae however that the union's responsibility eel was proved In ten instances the evi- dence showed that union officials had induced directed or encouraged the Ne walkout ipa Dying Issue definition is- SOM 14 sue will almost certainly be a dead duck soon after the new Congress meets It grew out of section 501 2 of the H law That's where one definition of a strike as any strike or other concerted stoppage of work by employees occurs The earlier Wagner act did not define a strike Unions considered concerted For 77 years M. & St. L. has been the nickname of the Minneapolis & St. Louis Railway an important road which networks rich agricultural and industrial areas of the Great Midwest Today M. & St. L. symbolizes also the Modern and Stream trans- ~ portation which that railroad provides in Minnesota South Dakota Iowa and Illinois- + nn stoppage of work a dangerous wording It makes unions liable for a walkout by any group of its members whether the a union was forewarned or not Congress men is sure to rub out the definition cpm clause when it overhauls the present federal labor law me ce Textile Workers For Agriculture and Industry For Shippers and Receivers of Freight For Connecting Lines via Major Traffic Gateways With fleets of Diesel locomotives newest which is the No. picture and of new freight cars the M. & St. L. is truly'a road : and Stream Service 348 in the of Modern Read how SCIENCE SCIENCE SCIENC SCIENCE SCIENCE ; 0os is modernizing American Industry To Keep Pace with the Latest Advances of Science - read Science Illustrated No one group of men are quickening the pulse of industry more than the scientists Think of the revolutionary changes they bringing with atomic jet with bringing power are bringing propulsion new atomic with atomic mining and jet processing methods new transportation synthetics etc. You can learn about the new develop- ments of science - and what they mean to you through the new monthly magazine Science Illustrated Science Illustrated is so factual it brings you new ideas for your own industry so broad in scope it keeps you date on fields outside your own skillfully written and richly illustrated it's enter- taining as well Covers Over 30 Fields Including Minerals Photography Architecture Aviation Television Television * AuRtaoilmroobadisles Electricity Electricity Electronics Petroleum Optics Machine Industry photgraphs Timely articles over 30 a month Detailed photographs - over 140 a month Large pages over 100 a month Mail the Order Form Below - It Saves You 4.00 Imagine You can order 36 big issues of Science Illustrated 3 full years for ONLY 5 This special rate saves you 4 over the one year price We'll start your subscription with the big new issue now on the press YOU MAIL YOUR ORDER WITHIN 10 DAYS MAIL YOUR ORDER NOW Science Illustrated 330 West 42nd Street N. Y. 18 N. Y. YES I accept your special offer Start my subscription to Science Illustrated with the new issue now on press prefer 2 yrs at 4 Saves me 2 compared with the yr rate I prefer 3 yrs at 5 Saves me 4 prefer 1 yr at 3 Bill me later Payment enclosed Name_ Address City_ Zone ALSO ON SALE AT ALL NEWSSTANDS .25 State_ _ B.W 11-13-48 Ask 10 Boost in 1949 What will your workers be shooting for as a 1949 wage now that the election has gone their way The C.I.O. textile workers may have given a clew to the answer In New England and the Atlantic states they are trying for a hour increase It would take effect early in 1949 for more than 200 000 workers Election is the first im- portant union goal announced since the election And it's the smallest figure that the Textile Workers Union of America C.I.O has asked since the war That's rather curious Other un- ions may be tougher in their fourth- round wage demands The union will ask the 10 raise for 90,000 woolen and worsted workers and 120,000 employees in cotton and rayon mills Here's what the 10 would mean Woolen and Worsted Mills The increase would raise the minimum to 15 in 160 mills under contract with T.W.U.A. It would raise average straight hourly earnings to 1.41 Cotton and Rayon Mills A 10 increase would bring the average straighttime hourly earnings to about 1.28 The minimum wage would go up to 1.07 an hour Resistance New demands are expected to meet some employer resist- ance Employers aren't as optimistic as the union about continuing high profits for the industry But if negotia- tions should deadlock there would be no strike setting would be sent to arbitration proceedings under terms of textile contracts Textile raises so far have not been tangled up in industry pattern settlements Hence what T.W.U.A. gets won't necessarily influence other management decisions 112 BUSINESS WEEK Nov. 13 1948 Behind the magic of Recordak microfilming you have all the advantages of Kodak's photographic experience It means a lot you'll agree to have Eastman behind every phase of Recordak microfilming . Kodak Company It means that Recordak equipment and film are right photograph- ically For they're made by Kodak And as the foremost manufac- turer in the photographic field Kodak knows cameras lenses film ... ... knows how they must be integrated for their exacting job The job of recording documents as only photography with accuracy and completeness at tremendous reduction high speed and low cost It also means that the film processing is right for perfected technics and equipment control every step Uniformly sharp images assure maximum reading comfort when viewing original - largements on the screen of the Recordak Film Reader Significant backing and Kodak has been behind - Recordak wo throughout its 20 years of specialization in microfilming To see what this specialization can mean to your business write for 50 Billion ~ Records Can't Be Wrong It's free Recordak Corporation Subsidiary of Eastman Kodak Co. 350 Madison Ave. New York 17 N. RECORDAK Subsidiary of Eastman Kodak Company originator of modern microfilming and its application to business systems " Recordak is a mark YESTERDAY YESTERDAY 112345112345 112345 1 2345 112345 112345 | \vo\s7\18\19 To find out exactly what this fast pay time on Air Power equipment means to you ask your Ingersoll engineer to make a job study in your plant He will help you make actual Air Tool performance tests right on your own operations help you determine how much money you can save and how quickly Air Power equipment will pay for itself IngersollIngersoll 329-8 Il Broadway New York 4 N. Y. INTERNATIONAL OUTLOOK moor BUSINESS WEEK NOVEMBER 13 1948 You can just about write off the Nationalist government in China Chiang shek's military forces are crumbling fast much from mutinies and desertions as from Communist victories His new gold Yuan currency has been reduced to just about nothing Rice riots have thrown Shanghai Nanking and other Yangtze valley cities into turmoil soldiers hungry students angry workers Communists Chiang down Unpaid bringing Chiang's one hope seems to be this to President Li Tsung let T. V. the field himself to pep things up Turn over rule in the Yangtze area Soong control South China go into GE 115 Don't expect the U. S. to prevent further disasters in China True U. S. Marines may be flown into Shanghai and Nanking to protect American personnel and property But this won't make a new China policy The fact is Washington doesn't know what to do The Chinese experts are divided One group argues that billion worth of military equipment ~~ - could still save Chiang The idea thus is to get a military to the problem first Economic problems would be tackled later -: - military The other group says that Chiang's forces need more than sup- plies They need the will to fight And they won't have this unless Chiang cleans up his corrupt bureaucracy and checks inflation ~ ~~ - - ~~ 0 } * fi Don't read too much into de Gaulle's success in this week's elections The voting was for the Council of the Republic French senaTht e Thee <7 General won the same sort of victory in last year's municipal elections ~ But since the electorate for France's upper house consists mainly of representa- ~ tives from the municipal councils Sunday's vote is no new yardstick The licking the Communists took probably means more They are just ~ about isolated politically crs oe General elections in Britain may not come until started to prepare for the fight already 1950. But Labor has ~~ ne ce Last week the government dropped controls on a lot of produced goods plus some raw material imports British industry will be spared filling out about 200,000 licenses a year Next week the reins on steel will be loosened Dozens of other controls could easily go any time now But they will be abolished piecemeal Reason to give the impression that the government is making steady progress despite its vast problems OS - In 1949 the housewife will get a hot wooing clothes will ease off Rationing on food and - - Tactics such as these will make it tough for the opposition You can be sure though that the Conservatives will make hay with the steel nation- alization issue page 117 ne e Work has started in London on an international control authority for the Ruhr ce This is the body that's supposed to take over the job of allocating Ruhr coal coke and steel from the U. British military governments The problem is how to divide these products between western Germany and the other Marshall Plan countries The U. S. Britain France Belgium Holland and Luxembourg are | iss a wentsieno INTERNATIONAL OUTLOOK Continued > BUSINESS WEEK NOVEMBER 13 1948 taking part in the London talks The delegates expect to reach an agreement by the end of this month President Peron is getting set to ditch his Argentine Trade Promotion Institute IAPI This is the outfit that has squandered Argentina's gold and dollar reserves Peron just about junked it in September At that time Foreign Minister Bramuglia convinced him that IAPI was ruining the country But IAPI is the pet of Miguel Miranda the economic boss When he heard about Peron's plan he decided to get Bramuglia out of the way for a while So the foreign minister was sent off to the United Nations meeting in Paris But Miranda's move may have boomeranged Bramuglia has gained _ world prestige chairman of the Security Council He has been the prime mover in the attempt of the neutrals to settle the Berlin blockade It shouldn't take Bramuglia long to topple Miranda when he gets back to Buenos Aires e Brazilian now talk of spending billion on railway improvements This hike on the million President Dutra recommended - in his year Salte plan And Brazilians say they will have to borrow in the U. S. to finance the difference .. Here's the money would be spent on locomotives and rolling _ stock million roadbeds and rails million electrification shops . etc. million overall construction plans million - - Brazilian S. Technical Commission is taking a look at this new plan - You can sure the U. S. group Jul.17'48 will turn thumbs down of the Brazilian proposals to sell special bonds in the U. S. These wouldn't pay interest in an orthodox they would offer freight discounts to the American holders The U. S. group will also want an explanation of things such as this The government Central do Brasil Railway has the same mileage and carries the same number of ton miles a year as the privately Leopoldina Railway But the Central has about 42,000 employees and the Leopoldina about 7,000 PAGE 116 The Itabira iron mine in Brazil is getting out of the red - U. S. steel men are paying down at the port of Victoria 9.00 a ton for Itabira's 68.41 ore laid The price six months ago was only 4.80 they can more than break even at 6.00 Company officials figure Despite transport problems tons of ore this year as against million tons Itabira expects to 174,000 in 1947. e ship The at least 300,000 goal for 1950 is Washington looks for an early end to the Israeli war The hard facts of the military situation make this almost certain The Arabs are beaten and they know it The Israelis want quit too The fighting has been a heavy drain on their infant economy The big job is to devise a way of saving face for the Arabs really what the United Nations is trying to do now That is Contents copyrighted under the general copyright on the Nov. 13 1948 Business Week 330 W. 42nd St. New York N. Y. BUSINESS ABROAD British steel industry's record output doesn't check Labor's plans for . .-. Steel Political Nationalization Would remove a political foe give planners control over 50 of Britain's capital investment Also would increase capacity LONDON steel industry has never been a model of efficiency- at least not since the 19th century And there's little chance that it will become one under the nationalization legislation introduced two weeks ago by the Labor government Iron & Steel Corp. Iron & Steel Bill does no more than turn a privately owned monopoly into a publicly owned monopoly Ownership of some 107 companies passes from private hands to a public holding company Iron & Steel Corp. of Great Britain Over direction of the industry passes from the British Iron & Steel Federation to the new corporation The bill calls for no reorganization of steel production as such or of the industry's uniform delivered price system The fact is that in nationalizing the steel industry now the Labor government isn't thinking primarily about making the industry more efficient as it was in the case of coal nationalization Political Objective government's immediate objective is political It claims that public ownership of steel is essential building a socialist democracy Private monopolies such as the present steel industry wield too much power Moreover the government says it has a mandate to carry out steel nationalization since it was a big plank in Labor's 1945 election platform The government also has a broad eco- nomic objective into which steel fits very nicely stabilize the whole econ- cmy through control of the flow of m vestment When steel is added to the other nationalized industries plus hous- ing roads etc. the government will control better than 50 of the invest- ment potential of the country More Capacity one thing the country may gain from steel nationaliza- tion terms of steel alone more capacity The government has set its target for steel a lot higher than the British Iron & Steel Federation has It wants at least million net tons of capacity before 1960. The industry has refused to set its sights higher than about million tons capacity When it comes to these objectives the government can probably get what it wants by means of its steel billassuming Labor wins the next general election What the Bill Does bill sets up the Iron & Steel Corp. of Great Britain as the sole shareholder of the 107 larg- est British iron and steel firms and their subsidiaries The private companies remain intact They keep their names management directors and marks Individual accounts will still be pub- lished But instead of paving dividends to their present shareholders they will pay them to the new corporation Nationalization of steel differs radically from coal transport and electricity In these industries private companies were dissolved and welded into an entirely new organization The Iron & Steel Corp. has vast pow- ers and will undoubtedly supervise the units of the industry much more closely than the British Iron & Steel Federa- tion ever has The corporation is subject to general direction from the Minister of Supply and is responsible through him to Parliament But in practice it will determine the quantities " prices and types of virtually all iron and steel produced It can acquire or form additional companies Its five to 11 members will be in effect controlling shareholders in all of the nationalized concerns * Big Slice government takes over firms that produce 97 of Britain's iron ore production 97.6 of pig iron capacity 99.3 of steel ingot output and 93.6 of rerolling sheet plate and tinplate output From the subsidiaries of the 107 ear- marked companies the government also gets 45.5 of Britain's total output of heavy forgings 15.8 of drop forgings 23 of steel castings 94.3 of steel BUSINESS WEEK Nov. 13 1948 117 Pamir steel men complain that they are be- be the job of George R. Strauss Minis- ing even more unfairly dealt with than ter of Supply to defend the bill tactics private railway and electricity share- Delaying Delaying tactics pe ne holders On the London stock exchange will be used by the Tories in the House = it is estimated that the total assets of of Lords to hold up passage as long as the 107 companies are worth at least possible Aims of Industry will launch a billion And steel shareholders argue 400,000 steel defense campaign that stock exchange quotations do not yet reflect the capital investment by private steel owners during the past three years since June 1945 almost 400million has gone into new steel plant and equipment Investors who hold on to their new BW Oct.2'48 Apart from the private investors the British Iron & Steel Federation has the biggest stake in the fight The B.I.S.F. has run Britain's steel industry with a pretty tight rein since the 1930's and is responsible for 1 a moderniza- British Iron & Steel stock which is ne- tion program which got under way gotiable will certainly take a heavy cut in income The ordinary shares of most British iron and steel companies are yielding about % The comparable government stock will pay about % . Opposition forces are getting set for a finish fight against the steel about 1935 2 the monopolistic character of the industry Under the leadership of Sir Andrew Duncan the B.I.S.F. blocked a Labor attempt at nationaliza- tion in May 1946 e Retarding Investment there is no basis for the charge that has been made by some Labor spokesmen that steel men would sabotage production LABOR'S STRAUSS will spearhead the steel bill in Commons On the other side . . It is probable however that some of the newer capital investment pro- grams will be retarded Any new invest- wheels and axles 67.2 of wrought iron and steel tubes pipes and fittings 60 of hard and mild steel wire 72.4 ~ of rolled strip and 40.7 of bright steel bars ment next year would be just so much more private money poured down the drain unless the government makes special provision for such investment Today British steel production is run- Competition government in taking over about 160 subsidiaries of the big firms will compete with private- en-' terprise in a wide variety of goods They range from hand tools nuts and bolts ballbearings and fertilizers um- * brellas tennis rackets and safety pins The new corporation will also build bridges quarry limestone make concrete and produce sulphuric acid It is impossible to calculate exactly what percentage of national output such goods the corporation will con-- ning at record about million tons a year But between now and the 1950 elections some slight fall in production effort and output may result from uncertainties about the future But the big impact will be felt after the general election if Labor is returned to power and the act is put into effect No sure way has been sug- gested for training new top management men technically competent to run the complex steel industry if the present management refuses to play along trol But on the basis of the number of workers involved in each the cor- poration will be producing 32 of Britain's nuts and bolts % of CONSERVATIVE LYTTELTON while will fight nationalization on the floor while bridges only % of hand tools and cutlery chemicals and cement bill Conservative Party the Brit- New Compensation for the ish Iron & Steel Federation and Aims private owners will be paid with British of Industry Ltd. largest British public- hk Iron and Steel stock guaranteed by relations outfit the treasury as to both principal and Since Labor has a big majority in dividends Each existing shareholder Parliament these groups can't keep the will receive stock equal in value to the measure from being passed So they will stock exchange quotation for the securi- stake their whole effort on keeping it ties he is giving up This will be either the Oct. 1-25 1948 average or that from being put into effect This means they will carry steel to the British of the six months just before the 1945 whichever is higher This option is intended to wash out the depressing effect on stock values ) people as a main election issue in 1950 when they hope to put the Conservative party back into power and repeal the steel bill mee Total issued capital of the 107 pri- The Conservatives begin their battle Senin vate companies is about million in Parliament in another ten days or so But on the basis of exchange val- Winston Churchill will undoubtedly ues some billion of the new stock will have to be issued relish this opportunity to blast Socialism However Oliver Lyttelton a war- Complaints terms for compen- sation follow the pattern used in nation- alizing electricity and railways But time Minister of Production will probably carry the burden of the opposition case in the House of Commons It will the STEEL CHIEF DUNCAN carries British steel industry's case to the nation 118 BUSINESS WEEK Nov. 13 1948 for your overseas messamgesesage senidt Via RCA ..it's faster CLASS OF SERVICE FULL CLASS DEFERRED PRESS PRESS UNLESS FULL RATE ( TIME FILED eo SENDER'S SENDER'S nl RCA SERVICE SERVICE RADIO CORPORATION OF AMERICA BENEFIT RCA SENDER'S (SEND SEND write write BY SENDER TO DIRECT SERVICE THE SENDER | MUST INSERTED SENDER . MUST BE VIA_RCA BY THE SENDER. f WASHINGTON WASHINGTON MESSAGES MESSAGES MAY BE SENT JUST THE THE ROUTING SURE VIA JUST BE SURE TO MUST WRITE IN VIA RCA THE WRITE IN "VIA RCA" ON THE RCA BE MODERN your MESSAGE! Vig RCA | ap E Serensa V"OaR. y ae a hnce wre of (> poe rer vont PRACTICAL BUSINESS MANUALS for today's executive NY Examine them 10 days free Business Executive's Guide By J. K. Lasser A unique approach to the problems of the business executive the necessary steps in fundamental matters of organizing financing and managing a business 3.00 Effective Letters in Business PROMISED LAND This Italian hopes for a better life in the New World now that .. By R. L. Shurter How to write letters that get attention arouse interest and win the answer you want Covers all types claim adjustment collection application inquiry credit etc. 2.75 Blueprint for Public Relations By H. Plackard and C. Blackmon Tips for maintam- ing good press relations piactical knowledge of newspaper 7 procedures pointers for using research surveys and psy- chology how to develop an effective campaign 3.50 ~ aan chology Se develop Argentina Seeks Immigrants -- = President Peron is trying to attract both new industry and - new workers principally from Europe Purpose to build Manual Practical Office Short ~ of ~ Argentina's production Cuts Compiled byNational Office Management Associa tion A treasury of 626 ideas kinks short to lessen and ingenious methods for improving office routine tical devices that save money time or labor 3.50 BUENOS AIRES week a 20th- What Makes People Buy _ By D. A. Laird Scores of illustrations and every sales situations show what the few basic human wants really and how they manifest themselves in buying _ Tells how they are related to successful salesmanship 3.50 century Mayflower disgorged its pas- sengers and cargo on the barren shores of Tierra del Fuego the extreme southern tip of Argentina The passen- _ Standard Costs for Manufacturing . By S. B. Henrici Covers all expenses and indirect labor maintenance labor and materials operating supplies general head fuel power etc -shows you how to control them and simplify cost accounting pro- cedures 3.50 Credit and Collection Principles Practice and Practice ing collections By A. F. Chapin Effective methods of appraising credit risks and mak- Covers financial statement analysis bank retail and installment credit new legislature etc. 5.00 gers were odd Italian immigrants they were fleeing overcrowded Italy in search of a place to work and enough to eat . They were far better equipped than most pioneers They brought with them prefabricated houses brick kilns and the machinery for a paper factory made in Italy They brought their own How to Run a Sales Meeting By E. J. and how meeting Hegarty Tells how to be the meeting chairman to get out the attendance general conduct of a how to arrange the 100m how to handle visual aids how to take notes etc 2.25 managers and technicians their own doctor dentist and teachers They had all the basic needs to build a fairly modern community in their bleak new land Invited Europeans came at the MAIL COUPON TODAY express invitation of the Argentine gov- ernment It has hung out help wanted McGraw Book Co. Inc. 330 W. 42nd St N.Y.C. 18 Send me books coresponding to numbers encircled below for ten days examination on approval In ten days I will emit cost of the books I keep plus a few cents postage * and return unwanted books postpaid 1 2 3 4 5 6 7 8 signs all over Europe in an bring whole industries as well and semiskilled labor to the Purpose to put Argentina on to sufficiency in industry effort to as skilled country the road to elimi- Name .. .cseeeeeeee eee Seren eeee eee tere eeccereceaae . nate as much as possible the need for dollar imports Address 6c cee cae ee ete eee ett e esate etn eca eter ees President Peron doesn't think he can City ce eee eee eee . 6 Zone ease ....... . Company .... ce. e e- et. eaec ee decor tenes ligscouceeceeas Position oo vee ee eee ee eee eee eteee 11-13-48 * SAVE,, We pay mailing costs if you send cash with order Same return privilege make much of a show of power with only million Argentinians And he can't wait for the normal increase in population to fill the gap Industry Argentina has offered European businesses duty entry for all machinery and material It has of- its dependence on dollar imports fered land grants on which to build new factories It has deluged the European businessman with publicity him how profits or 100 in Argentina are more common than not how his wage problems would pale into insignificance in a land where there is plenty to eat So far 109 small manufacturing and construction firms have taken the bait They have brought in about million worth of capital goods and some 25,000 technicians and other skilled workers Mostly Small few of the immigrant industries are any great shakes Most are marginal organizations Included are 27 construction firms 31 working plants 12 textile mills 11 sawmills and woodworking plants 3 paper mills 5 chemical manufacturing plants More than half of the concerns are Italian But over almost every west- ern European country and some South American countries are represented Examples Italian firm Cotosan of Milan is shipping its factory_for factory_for Another washing and processing wool Luis Mendez machinery Alberto Riccioti is ship- ping heavy machinery for the manufac- ture of nails and wire A shipbuilding of outfit Cantice Navale A. Costagna Genoa is sending its entire yard to be set up on the Parana River near Buenos Aires A Belgian firm SILCA is moving to the Argentine city of Mar del Plata 120 BUSINESS WEEK WEEK Nov. 13 1948 A % tele Le it will manufacture fire where A Brazilian outfitoutfit is setting seting up up oe plete silk business worm bricks aa com- culture culture the = through spinning the spinninsgpinning process building A Swedish building building ae a paper concern is already millmill which promises to cut Argentina's im- ports of kraft paper Some critics say that many of these industries are not only small but also equipped with date machinery But Argentinians answer that in the situation they find themselves any machinery is better than Peron's e Immigrants Peron's drive to bring individual skilled and semiskilled workers to Argentina has also months been paying off In the first eight of 1948 more than 83,000 immigrant workers entered the country almost all of them were Italians Next year the government hopes to bring in close to 200,000 A new immigration treaty was recently signed with Spain so many Spaniards will be included in this 200 000 figure Most of the Italians were lured with watering tales of cheap beef- steaks 30 a lb. for bone and plenti- ful supplies of the indispensable Italian And it will save you money by releasing men machines for productive work macaroni and wines But there are more concrete lures The Argentine government promises to supply shipping space for the immigrants and shelter on their arrival And when a worker has settled down he is allowed to send back for his relatives Workers like the new Whiting Electric Hoist because it makes thehandling of breaking~ loads a simple job You'll like it because it cuts materials costs way down ... ... by minimizing the time highly paid skilled workers must spend in unproductive lifting ... by re- Productivity Problem President Peron thinks these immigrant workers ducing the amount time expensive machines must stand idle Plant managers report that the are going to solve all his economic head- Whiting Hoist handles loads up to` aches he may be in for a disappoint- two tons 13 times fast as a hand hoist- ment In addition to Argentina's labor shortage there's the problem that Argentine workers don't seem particularly interested in working Peron has showed pays for itself in a very few months It can be installed by one man yet so rugged it will , stand up under heavy duty Find out how the Whiting Electric Hoist can save money for you great solicitude for the Argentine workers but his attitude has not paid off in more production The Argentine worker is making just about twice as much in wages as he did in 1943. But hours worked have actually decreased Reasons 1 an unbelievable amount of absenteeism 2 a ridiculous number of political and religious holidays fiWorkers Loaf of Argentina's leading business magazines points with regret to the fact that the workers don't seem to have any great desire to improve their standard of living President Peron has doubled their wages so they only work half time and get the same in- come P ressure is some indication however that the government realizes that its policy of protectionism for the workers isn't all it might be It may not be long before Peron takes official steps to bring an end to absenteeism and gencral malingering In that case the new workers and the new industries will be 1 real boon to Argentina 23000 COSTS SIZE 23000 COSTS ONLY 23000 ONLY 23000 23000 2300 23000 ILLINOIS If it Saves One Man Only 12 Minutes a Day IT PAYS A PROFit ELECTRIC HOISTS ... and Ton Sizes Write for Bulletin 100 |; Pe es ee ee ee ' t t WHITING CORPORATION ' i ONE } 15661 Lathrop Avenue Harvey Illinois ' COSTS Send me a copy of your Bulletin 100A 4 ONLY describing the new Whiting Electric Hoist 4 23000 Please send me the name of the Whiting distributor in terri- 23000 23000r my tory who can give me immediate delivery on a Whiting Hoist i ia F. O. B. Harvey III ' NAME H . NOON Ta i]a STREET ADDRESS 4 a ] a i CITY STATE : = BUSINESS WEEK Nov. 13 1948 121 Product customer built up with flame hardening THE THEW SHOVEL COMPANY Lorain Ohio wanted to improve the wearability of the sheave throats on Lorain power shovels and cranes which are located at the upper end of the boom By so doing the company felt it would reach the acme of benefit in its finished product - the value of a longer lasting part subjected to severe wear A. Neiman Airco Technical Sales , ously hardened to a predetermined . Representative recommended oxyacet- degree that insures maximum wear- ylene flame hardening With this mod- resistant qualities ern process hardening could be local- Since flame hardening was intro- ized to the sheave throat without duced the company still has gone affecting the balance of the sheave's further in its efforts to increase the cus- ductility This was highly important for finished machining Using a up of tomer of its products by expanding this modern localized hardening three Airco No. 4383 torches with process to include gears jaw clutches hardening tips especially designed for and other parts requiring longer in- this job three sheaves are simultane- service life TECHNICAL SALES SERVICE - ANOTHER AIRCO VALUE FOR CUSTOMERS To assure its customers of high efficiency in all applications of the oxyacetylene flame or electric arc Air Reduction makes available the broad practical experience of its nationwide Technical Sales Division personnel The collective experience and knowledge of these specialists has helped thousands to a more effective use of Airco processes and products Ask about this Airco Plus Value service today Write your nearest Airco office In Texas Magnolia Airco Gas Products Company ... West Coast Air Reduction Pacific Company AIR REDUCTION Offices in All Principal Cities Headquarters for Oxygen Acetylene and other Gases Carbide . Gas Welding and Cutting Machines Apparatus and Supplies . Arc Welders Electrodes and Accessories 122 ECA'S LEDGER Reports From Washington The Netherlands ban on all U. im- ports that can't be bought with ECA dollars may stir up a tempest here BW -Nov.6'48 If other Marshall Plan countries follow suit Congress could have a bunch of angry exporters on its hands the next time the subject of ECA comes up ECA has been telling western Euro- pean nations to trade as much as possible among themselves It has not allowed them to use ECA dollars for some traditional imports from the U. S.automobiles fountain pens and countless brand consumer goods ECA be accused of wasting the taxpayers money But U. manufacturers stand to lose their standing European markets If a manufacturer wants to market non- recovery goods in Western Europe chances are he won't find many countries with the dollars than ECA's -to pay for them Top industrialists touring Europe lately have been speaking bluntly on this score An executive of the Stude- baker Corp. boss Paul Hoffman's own company warned the Dutch Ministry of Economic Affairs U.S. industry might shift its influence against the Marshall Plan if U. markets abroad are hurt And other top industrialists are squaring off for a battle with Congress over additional appro- priations ECA's answer If it weren't for the Marshall Plan there wouldn't be any western European markets at just economic collapse Other Developments Procurement Authorizations For the week ended Nov. 6 ECA authorized almost million worth of purchases Primary iron and steel mill products came in for million machinery million Included under machinery were million for metalworking ma- chinery and machine tools million for engines turbines and electrical equipment and million for con- struction and mining equipment More than 75 of this week's spend- ing was for commodities to be delivered in the future The rest was reimburse- ments for purchases made earlier But the day of reimbursement financing un- der ECA is almost over Deadline for amen, 300- all requests was last week 300- et Investment Guarantees The OS million that ECA tentatively set aside OL petncoambir to cover new U. investments in west- ene ern Europe hasn't had many takers One reason Under ECA law the D giy ne guarantee was to be deducted from the 1- stim money BUSINESS WEEK Nov. 13 1948 big billion earmarked for ECA loans each country in which there's backed investment loses that much from its Westernallocation loan European nations don't think that most of the proposed investments would give them as much for their dollars as a straight loan They offered might buy the guarantee idea if it were in addition to a given country's total allocation of dollars Reports From Abroad Allied military authorities in Germany have approved several small investments by U.S. publishers to be covered by ECA's guarantee fund MacFadden Publications International Corp. and Fawcett Publications were guaran- teed conversion of earnings in German currency up to 87,000 for the coming year This is what the Germans get 10 000 assorted comic books a month plus copies of True Confessions Start- ling Detective True Police Cases and Movie Story Moreover MacFaddenin- tends to publish a German edition of True Story Occupation Clay and Robertson approved They did so because they could find nothing Nazi or un- suitable from a security point of view Proof Licenses This printing press at Todd Co. Inc. Roch- _ ester N. Y. is turning out export license forms designed to foil the cleverest forger Itis part of Commerce Dept.'s drive against export racketeers BW Jul.17'48 The Todd process makes export licenses as safe as banknotes A surface pattern of dots arranged in a complex mathematical for- mula is printed on each form The formula destroyed was for secrecy after the printing plates were made BUSINESS WEEK Nov. 13 1948 ADVERTISERS IN THIS ISSUE Business November 13 1948 cece cence ACME STEEL CO Lek 76 Agency Burnett Co. Inc. AIRKEM INC ..,...... . 46 Agency AIR REDUCTION Smith French SALES & Doirance Inc. Agency M Basford Co. ALLIED STRUCTURAL STEEL COMPANIES ..... : ee 14 Agency Fensholt Co. AMERICAN AIRLINES INC cess e eeee 71 Ruthiauff & Ryan Inc. AMERI~ AN PHOTOCOPY EQUIPMENT CO 98 Arthur AMERICAN Agency Meyerhoff & Co. AMERICAN SURETY CO 99 AMERICAN Agency Albeit Frank Guenther AMERICAN TELEPHONE Law Inc & TELEGRAPH CO 5 Agency W Ayer & Son Inc ANCHOR POST PRODUCTS INC ose 54 Dugdale & Inc. Agency Sant BANK OF THE MANHATTAN Co. CO + 92 Kenyon & MANHATTAN Inc. BANKERS TRUST CO wee oe I Agency & Dengler Inc BOWER ROLLER BEARING CO 2nd Cover MacManus John & Adams Inc. BRISTOL BRASS CORP . 29 Abbott Agency Sutherland THE BROCKMEYER . nae . 70 CO BROCKMEYER Agency B. Deady MACHINE BURROUGHS ADDING CO 3 AgenA cy gency Ewald Co. Campbell HARMON The Buchen Co. INC Agency CARDINAL CORP Agency H FabeFarber CHAMBERSBURG Faber ENGINEERING - os .103 .103 .... 52 Agency Willard CORP CHRYSLER Doremus Agency CORP G. Myers Adv & Co Agency .108 COLD CHA Rg YSeLn ERcy CORRoPy DODGE Inc. DIV PRODUCTS CO AgenMcEvTALM. Co. COMBUSTION ENEGNIGINNEEEERRIINNGG CO -.. ... 81- . _ INC . 84 - . 2 Agencv M. Basford Co COMMERCIAL CORP CONTROLS oe . Hutchins Adv Co. DEVELOPMENT COMM CONNECTICUT Albert Co CONTINENTAL CWAoNodlCeO y INC ~+. 3rd Agency Durstine & Osborn DICTAPHOBNaEtteCnORP Barton . Agency Young CORP RubicamRubicam Inc. PRODUCTS INC DISTILLATION DOUGLASThe Eshleman Co. FIR PLYWOOD ASSOC 107 ~ 74 Cover Inc 1 67 -. 51 62-63 Agency Condon Co. Inc DRAVO CORP - 105 Ketchum MacLeod & Grove Grove Inc Agency duPONT E. I. de NEMOURS & CO Agency & Osborn Inc MANUFAMACNUTFACUTURRINGIDNuGrstine .101 DURF ANr T anke MANUFACTURING Agency Adv ELLIOTT ADDRESSING MACHINE ...... 58 Agency & Richards Co Richards ENGINEERING WORKS ELMESErwin Wasey & , FARM Co Ltd. JOURNAL INC so ..... . 34 seeeenee @ 43 AFAgReRncC y O Lewis & Gilman 89 Willa ..rd G.G. Gregory Gregory Gregory &CoCo cette eens CORP FOOD MACHINERY : Agency McCartyCo - . 38 PAPER CO FORT AgeWn Ac YNyECORR&UCGo.ATED FRANKFORT INC : DISTILLERS Agency & Inc. Rubicani FRUEHAUF TRAILER deen eee 73 41 . 49 Kudner CO Agency AMERICAN TRANSPORTATION GENERAL CORP AgencyWeiss & Geller COCONSTRUCTION GENERALELECTRIC AgencyMATERIALS MATERIALS Basford Co GENERAL ELECTRIC CO ... 86 Agency M. Basford Co GENERAL ELECTRIC CO CHEMICAL DEPT . ar 18 Agencv Bowles Inc. GENERAL MILLS INC SPRINKLER Agency Barton Durstine GLOBE AUTOMATIC & CO OsboIrNCn Marschalk & Pratt MANUFACTURING A. HANSEN Agency Agency HINDE M. THE Haggard Adv DAUCH PAPER CO ... were eee Inc. 106 110 50 Howard Swink Adv Agency HYSTER CO cc Adv Agency & Smith cette eee 32 Beaumont IIeller INGERSOLL CO INAgTeEncRy LAKE CHEMICAL & & ue see cues 14 Speiling Inc. . nee 44 CHEMICAL CORP NICKEL Agency Kerr THE INTERNATIONAL CO INC 17 KELLER Marschalk & Pratt Co TOOL COMPANY . .....-.------ 52 The Fensholt Co. Agency P. MALLORY & CO INC ...... pe oe eeee 88 Agency The MAXWELLKynett MANNING MAXWELL Varley MOORE Agency & & Varley Inc. INC.46 MARINE | THE MIDLAND TRUST CO 30 Agency Barton Duistine & Osborn Inc MATHEWS CONVEYER CO eee INC MCGRAW BOOK CO THE MEAD CORP 120 JD I . 35 Agency & Rogers MERCURY MANUFACTURING CO Agency Andersen THE MINNEAPOLIS & ST LOUIS Fadell RAILWAY Co. Agency Fadell Co. cece eee sesees wreee 64 112 AGRICULTURAL MISSISSIPPI INDUSTRIAL Agency Advertisers INDUSTRIAL & fete eee eneeee oe 100 MISSISSIPPI COAST COUNCIL 78 MORSE Agency Advertisers CHAIN CO 75 Agency Smith French & Doirance Inc. MOSLER SAFE CO 95 Agency Guenther Law Inc. REGISTER CO NATIONMAc L CCa ASnHn Inc REGISTER CITY BANK OF N. NATIONAL NAATg IOeNnAc L y STAAlNbDerAtRDWoodley Co wae 33 ..... ... 96 Agency PAPER GrC isO wold Eshleman Co. NEEAgNeAncHy Diew NEKOOKSikgAasser EEDDWWAARRDSDS PAPER CO .. EDWARDS The Agency Klasselt Co RAILWAY NORFOLK & WESTERN CO 93 Agency & Co. Adv OHIO ADVERT DISPLAY te CRANKSHAFT CO THE OHIO Agency Liggett Adr Inc. OHIO Carr ELECTRIC & MFG CO tener see ceee 110 weer 31 .. ......... 60 Agency & Patterson Inc. ORONITE CO ve tees 12 CHEMICAL Agency LC Cole FIBERGLAS CORNING Adv CORP 83 OWENS Agency & Smith & Ross Inc. PACIFIC INTERMOUNTAIN EXPRESS ..... 39 Staff Brisacher Van Norden & FRANK D. PALMER INC . vena 77 Agency Hitchcock Assoc PERMUTIT CO 2. 0. Assoc Emmett Co PETROLEUM ADVISERS INC Agency Agency & Co Inc. eee e eee 79 cose ..... eeeee 65 Ellington PIATgNeEn YcBy OBWOWEES S INC & Inc. , Inc. vee 57 McGivena Co. STEEL PITTSBURGH Starr Agency & CO Inc. an PORTLAND CEMENT ASSOC 22.. PRA ESgSTeITnEcEyNGIWNiElElRiaImNsGENGINE RING Clear. y 80 OF AMERICA Oakleigh R French & Assoc RADIO CORPORATION . . 85 CORPORATION Agency COMMUNICATIONS RCA Thompson Walter Co. COMMUNICATIONS INC . 2... - eee 119 Guenther Agency Frank THE RAULAND CORP Law Inc. Pls Inc. 91 Agency REAgMencIy NGTON Walter RAND . REVERE Georges Agency Agency Agency Adv Inc. Leeford COPPER & BRASS INC 90 Agency & Inc Keyes REZNOR MFG CO ne ene, 102 Agency & Thomas Inc. *! 7s & MYERS ROBBINS Erwin Wasey ROYAL C&O TYPEWRITER Co. cs Ltd Ltd + INC wee eee If 54 & Rubicam Inc. > + JOS RYERSON JOS JOS T. RYERSON & SON INC .. 127 127 Agency Aubrey Moore & Wallace Inc. JOS PAPER CO ST Robert F RR EGoIbSert Branch Inc Fi TERHUNE & CO INC Agency Agency Angus Adv Agency 37 a 98 SHARON STEEL CORP oe a 87 McClure & Inc Wilder - A. O. SMITH CORP McDonald + " 44 Agency Hurst & McDonald Inc. _- L. C. SMITH & CORONA * TYPEWRITERS INC . Emmett Co 97 et eee SOUTHERN RAILWAY SYSTEM TIMKEN Agency Emmett Co ROLLER BEARING CO ..... 61 4th Cover Agency Barton Durstine & Osborn Inc. TOLEDO SCALE CO Reichert Inc ..104 THE TORRINGTON CO an Agency Adv Co. UNITED STATES MOTORS CORP ceee ee 56 Agency Co U. STEEL CORP CYCLONE FENCE DIV 109 Agency Barton & Dursti Osn boren Inc. VICTOR ADDING MACHINE CO . . 36 Agency W Shaw Adv Inc. VIRGINIA HOT SPRINGS INC .110 Edward Howard & Co. VISUAL PLANNING EQUIP . seaeeene 122 e WAGNER ELECTRIC CORP . tob de e es 53 Agency R Mogge Inc. THE F. W. WAKEFIELD BRASS CO 68 Agency Advertising Agency WESTINGHOUSE ELECTRIC CORP B ' Agency & Smith & Ross Inc. WESTINGHOUSE ELECTRIC CORP LAMP Smith ks es eee 55 Agency & Smith & Ro Inc. WHITING CORP . ... 121 Agency Fensholt Co. WIREBOUND BOX MFG ASSOC sees 94 Agency & Waldie & Briggs Inc : PUMP & WORTCHOIRNPGTON PUMP MACHINERY 69 . Agency Thomas Chirurg Co 123 THE TREND Congress Can Reinforce U. S. Industrial Strength _ The U. came out of World War II holding clear title to the industrial championship of the world As the champ this nation so far has not gone soft on the con- trary it has added to its industrial strength But we must not adopt a hum attitude America's industrial might is not invincible it can be weakened or hobbled in many ways And anything that hinders plant maintenance replacement or expansion should be suspect Our No. 1 candidate for investigation on that basis is the depreciation tax policy of the Federal government This policy was written into law for the same purpose most tax provisions are drafted to increase revenues The law as now phrased limits the amount of tax exemption for depreciation reserves to the amount of cash necessary to replace the equipment at original cost That provision was designed to prevent companies from making exces- sive deduction for depreciation to avoid paying heavier taxes - SOR an a number of companies today U. S. Steel Corp. is a prime example It has been setting aside extra funds which it would otherwise consider as net earnings But it is not getting relief in the way of taxes because the government still considers those funds as net earnings the corporation still is only entitled to credit for depreciation on the basis of original cost At the same time companies following this method are drawing criticism from several directions Stockholders for example do not like to see dividends cut or withheld to build up depreciation funds We plan to discuss that point in a later Trend What Can be Done Neither of these alternatives are satisfactory So the wisest course would seem to be a change in the tax statutes But what kind of change That theory appeartso be satisfactory desirable -on the surface It is hard to argue against any law which One proposal is to provide that the depreciation tax exemption is to be based on replacement costs not on produces revenues and puts a stop to tax evasion But a study of that policy at this time and in light existing conditions does not sustain the opinion that the policy is sound - 7s- 7! original costs It would permit a company to step up the amount for depreciation when costs are rising As an offsetting factor the company would be required to reduce the depreciation fund when costs are falling Another proposal is to provide for more rapid deprecia- Sh Higher Costs Cause Trouble "os tion of the cost of new facilities Instead of being required to write off original cost over the useful life of the project - Inflation of prices began during the war and con- tinued since It the manufacturer as well as the individual consume,, r- we os as determined by the government let the company amortize the cost for tax purposes over a much shorter period That is the plan followed during the war in order But the sooc n tk he dealt by inflation is not all that the manufacturer feels He is also hit depreci- ation tax policy This is what happens * ~*~ to get more private investment in war facilities No proposal for changing the depreciation tax policy has won full favor in Washington But there is recog- "" He has writing off old equipment on the basis nition among New Dealers the impact depreci- of original cost as the law requires He follows the gen- ation policy has on plant expansion The new Demo- eral practice of figuring depreciation for tax purposes by the straight line method This means getting tax exemp- cratic Congress should look upon a change in depreciation policy not as a sop to business but as a boon to tion for equal amounts annually to make up the original national welfare cost of the equipment However he now finds that today's replacement costs Some resistance to the change has been shown by taxpolicy framers because revenue will be lost We admit are so much higher that the money earmarked is not that the present high cost of government and the huge nearly enough to pay for the new equipment public burden must be seriously considered before bs What will happen if the present law stays on the books unchanged Probably one of two things 1 A company can take off for depreciation only the amount allowed for tax purposes But then it will not have enough money put by to replace existing equipment In fact if prices have doubled it can replace only half any proposal involving sizable revenue losses are contem- plated But there are other things to take into consideration What will be the effect if industry cannot maintain its physical plant and thus provide employment for workers at high wage levels What will be the effect on world affairs if the U. begins to lose its position as the indus- of its equipment as it wears out Multiply that single trial leader Those are serious questions too example by all the companies of the nation What do They point up the reason why the Joint Congressional you get The ability to maintain all of our productive capacity at present levels is cut in half Committee on Tax Policy should explore this subject carefully as soon as possible That committee should 2 A company can step up depreciation funds beyond urge Congress next January to put this vexing problem those allowable for tax purposes That is being done by high on its agenda for consideration and positive action 124 BUSINESS WEEK Nov. 13 1948 | | Memo Memo to WHO TO FOOD PACKER WHO WHO THINKING ABOUT HIS SUPPLY THINKING ABOUT CANS forward memo that many A looking looking businessman (A find worth forward will will fighting difficult difficult war You Uncle Sam fighting the cold both and he is Uncle the market market materials and finished goods needed to finished up defenses the needed to to up Today's Today's i check continue i supply sound business sources of supply See they should So it suplemented supplemented now Company Company as source source Continental Can as a dependable dependable dependable We have capacity manufacturing manufacturing research research staff manufacturing to serve customer sales organization willingness largest customer willingness " on toes have give any processor takes finest service processor possible possible welcome opportunity opportunity to sit with you see what can to supply down you the cans need do where when want them them we sit down where you cans you need, to with the food to supply you them. u want and where Y when CONTINENTAL Decoware Paper Containers Containers D. MAKE RS OF: 5 : 7 Tin Ca Ns x uthograpihed Metal be Con QEners ' Fibre rum $ . Equipment Equipment Equipment Containe:rs Plastic P.roducts C;rown C apsand Cork Product.3s + Decoware - Steel inery and Eqquuiipment- :N.Y - . i , : : pe : A way for fat men to beat the heat COMPANY that distills animal fats for soap manufacturers was having trouble with its superheater coil winding section of steel tubing in which steam is superheated to a blistering 1200 Continuous opera- tion at this red hot temperature weakened the steel frequent replacements were necessary and valuable hours of production time were being lost Learning of the problem metallurgists of The Timken Roller Bearing Company suggested that the coil be made out of Sicromo 5 - special analysis Timken high tem- perature steel So while the manufacturer was having a new furnace installed he decided to put in a new Sicromo coil too The results were amazing Where the steel formerly used had to be replaced every year the Sicromo tubing stood up under the terrific heat for seven years before replacement was necessary Valuable production time was saved And less money was spent for tubing to Timken's ability to specify the high temperature steel that delivers the best cost ratio for each particular application As specialists in fine alloy steels the Timken Company offers a combination of research and experience that is unique in the industry That's why you'll find so many tough steel problems stamped Solved by Timken Alloy Steel It's a record no other . alloy steel producer has equalled We'd like a chance to consult with you - on your steel problems too Write The Tunken Roller Bearing Company Steel and Tube Division Canton 6 Ohio Cable address TIMROSCO Tapered Roller Bearings Alloy Steels and Seamless Tubing Removable Rock Bits : eo YEARS THROUGH EXPERIENCE AND RESEARCH TRADE REG D.S PAT OFF Fine Alloy COPR 1948 THE TIMKEN ROLLER BEARING COMPANY Sme ae t cane } i { 4 ot