Indianapolis Times, Indianapolis, Marion County, 19 December 1948 — Page 54

i PAGE 54 E The Week in Business— Businessmen Watching ‘How Things Develop’

Over-Expanded Plant Officials Take Hard Look at Future

By HAROLD HARTLEY, Times Business Editor - MANY A YOUNG MAN, when he has gone to the boss

for a raise, has been told, “Wait until we see how things 1

-. develop in the next few months,” After the young man| had been told this seven or eight times, he began to suspect] his boss was kidding him, - But the ‘boss wasn't. He was absolutely serious about! his uncertainty. And before RE Ticrc ore oot = whe will . : ) re no any he raised his payroll one cent admit it but the picture is as he wanted a better look at the{plain as the sun in the sky. After » the war business had a field day. future, All the young man It couldn't get enough of any-| had to do was to ask for theithing, raw materials, help, plant

raise and the boss either said facilities or anything else.

But finally it began to catch yes or no, usually no. But the on raw materials, and boss, seasoned to the uncer-/strangely help became more tain winds of business never plentiful. Plants expanded to take ) care of the usual demand plus

sat easily in his deep cush-|tne backlog of wartime demand. ioned chair. Money moved fast. Wages and Just now all business men aré salaries rose. The big companies holding off on all spending, in-|didn’t mind raising wages so long cluding raises for bright young|as the public would pay the higher | men to “see how things develop|Prices for their products. But in’ the next few months.” The/how the public is rebelling against bosses, and company owners, are high prices. starting. to worry about their| In the trade they say the public bank accounts, mot thelr surplusiis. “getting more selective.” The money, piled up during and after truthsis that buyers are tired o& the war, but their actual working|getting so little for their money.

capital. They've slowed up. * * Over-expanded and over-pro-Production Pile-Up duced A are finding then. selves looking at the “next few months” with an all-out case of | jitters, They know what's coming. They aren't selling so much of their production. It is piling up in warehouses with a heavy investment in inven-| tory. And the more they make, —

the more money is tied up until,| produced businesses with Jouns/elthen.

Bn dhe instance of many smallithey are calling in the heads of ‘businesses, they are having 1o0|the businesses and. telling th scratch to get the payroll to-| ualneases and.lelling Shem | gether. oad. The banks refuse to get caught If businesses have to unload | in the over-production picture./and the public won't pay the going They ‘aren't lending much on|price, they have to take a loss. overstocked inventories. Indeed| And losses are what put business when banks are involved in over-'six feet under the ground. !

‘Seasonal’ or Real? 80 look for price-cutting In|

hes January. Don’t put too much] stock in the term “seasonal layoff.” One observer commented last | week that the term "seasonal layoff” was for public consumption; only. Business men know better but they do not want to start a

psychological recession or worse, so they continue to wear smiles, western Electric pilot plant at talk optimistically and tell thei ———————=—" “| Speedway.

world they are looking for a bet. bered that it was abnormally ter year in 1949. © 'high a: year ago and that some

“The age-old rule apples to decline . should be” expected as of the General

business as well as individuals|the backlog of war-accumulated Buy what you need, if you can demand melts away. “Tafford it. —you-want-it{ As one quick-witted business or not has little to do with it. Indiana employment was down last week, “The business man 11,000 over the e month a/will have to learn to play close

ii sie

3 CRE _ 10-Year Pin . . . John Shimmer (left) last week received. his ~~~ H0iyeer service award certificate from A, M, Bowers, works manager at the International Harvester plant on Brookville Road here. Mr. Shimmer's great-uncle, Corydon Shimmer, once operated a farm where the plant now stands. The plant is awarding 117 other

service pins this month. ml - 2.» - - ac a _- Sixty-five per cent of the Reports to Workers workers want to receive the annual statements of their companies, but 72.8 pér cent of them do not get the reports, thie Wage Earner Forum, directed by Everett) R. Smith, reports after a worker poll. . : | In instances where the company does supply annual reports to|

rr Wige earners; 19 per-cent-road: them. Tun A

There are two. sides to this | accustomed to budgeting his own

“question. The .very large com-igg) a week. Some companies vote “panies distribute annual” state-iaguinst-the idea for. fear of im-, ments liberally, They know labor plantfng the idea that the comleaders will get them and per- pany is rich—and- can stand a) bas hape Jnisinteroret. 1 union | few more rounds of wage in-| meeting. So they ei AT POI Ee Ns Har a A statements directly to the workers, - *. {There aren't any business secrets Thé other side days, and employees might

is that the an-|these

1 w ct headquarters.

man put it at a luncheon table plant

ytar ago, but it should be remem-!to his vest, if he still has a vest.” mashed potatoes and gravy.

{sumed daily.

| -iof the employees are young woms

leafeterias,

iment of the Fred B. Prophet Co.!

turkey dinner OH ETE

Generally, it is a good idea.._The American Telephone and Telegraph Co. said today the.

ts- deal in dazzlingias well. get their information earnings #0 investors will -con« vi 8 | tinue to put their money- into. the

Industries Here Run Cafeterias

Employees Reveal

Taste for Salads

Factory workers like muscle in their meals. But they won't pass up chilled, - leafy salads

Most large Indianapolis industries have cafeterias in their plants with foods prepared to the average employee's taste. The cafeterias are seldom a business venture on the part of the industry, but there are other benefits which show up in the

balance sheet in production, imorale and the temperment of workers, Two typical cafeterias are

operated at the RCA Record Division of the Radio Corporation of America and in the new

Both are sub-con-tracted to the Fred B. Prophet Co, of Detroit which serves most | Motors plants and dozens of other industries. |

{ ” o » AT THE WESTERN Electric 740 employees - show a strong preference for food .that sticks’ to the ribs, roast beef,

The Western Electric cafeteria averages 1500 food and beverage sales a day and is open from 8 a--m—throughout-the workday, covering rest periods as well as| lunch hours, Fifty gallons of coffee, three] bushels of potatoes, 40 pies and 35 dozen breakfast rolls are con-

At the RCA plant it is a slightly different story. Eight per cent

en. They lean toward lighter meals, pies, salads and Tancy| dishes. Sixty people operate two jointly serving 4500]

daily, also under the manage-|

= ” ” - COMPANIES welcome sugges tions from employees. They figure there is no reason to operate.a foed business which displeases Workers. So committees are set up and suggestion boxes are kept handy. For most of the plants the company-sponsored restaurant is a necessity. There are not enough| eating places in “the neighbor. hood to-do the job. Inside eat-| ing places cut down traffic in and! out of the plant and control refuse which might accumulate from carried lunches. Some companies even run their cafeterias at:a slight loss to keep their patronage up. In seasons such as the Thanksgiving - Christmas “holidays, the companies serve at least one full at prices which

thrifty housewife.

Must Earn More,

Phone Co. Asserts : ELVEN

telephone industry needs higher

The company issued its state-

Workers of America. | Mr. Beirne said yesterday that; telephone companies are trying to| gouge the public for unwarranted | rate Increases, He sald union] studies show that wages and other costs can be absorbed by

-rourrent rates or through “much

New IREB Officers . . . This new board will set the course for the Indianapolis real estate business next year. On the Real Estate Board are (from left) Jack C, Carr, treasurer; Howard W. ... Fieber, president; John B. Lookabill, vice president, and Paul Star“rett, secretary. ; : . = = ® & ; | WHR, What is believed to. be the first Two ; Front Doors drug store in America with two . front entrances, front and back, has been designed by J. W. Snow- - den of Rockville, Ind., and built for Winder & Roberts in Atlanta, |

The store has one front door for pedestrians and another in the rear for automobile CUS! rr ——— omers. The idea gives the store two fronts and two opportunities] v for displays windows. Electrified farms have doubled since 1040 at a cost of nearly $1.5 _ billion including more than $1 bil- ~ Mon for utility installations, $300 “million for farm wiring and mil- Ea hl , more. for. appliances. and| RQ ammasimn ane: § |

t. wei » AEE Ane ¥ ok a 0 states have from 80 ato 95 per cent of the farms elecw.fled, Melvin H. Baker of the

\_/

{more modest” increases than |those now sought. ° The AT&T said Mr. Beirne's| {statenrent- does not recognize the “simple "fact that in connection | with the type of business for] {which rate increases are being] sought, the Bell System operating |

companies are earning an = | | | f

age of less than 4% per cent on invested capital,”

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Permanent pdsition for top | notch automobile man as Dis- }| tribution Manager for old-line, fast - selling, medium - priced || cars, Fine opportunity for man || with initiative and ambition |! who can establish good new | dealers and develop established || dealers. Should have at least || five years automobile experience, Write giving automobile and other experience, personal facts and salary expected. Send photo if posiib Replies will be kept strictly confidential, Write Box No. A 343, The Times.

THE INDIANAPOLIS TIMES

|[Factory Workers Eat Well And Cheaply

.-—

Meat-cutter James Berry starts an RCA cafeteria dinner.

|soon -will bé higher: |

ment. in reply to charges by | President Joseph A. Beirre of the Independent Communications

| ml RR 3 oe ‘ .» 1 z o 9 > » ols - UNCK , 1

Fifty Cents... That's about average at Western Electric.

On the Farm—

Lower Grain Prices Spur Cattle Feeders To Buy and Thereby Boost Steak Supply

cows stand on a platform 30

‘Rural Electric Co-operatives Expected

To Hike Rates for Retail Power-in Indiana By HARRY MARTIN, Times Farm Writer Steaks should be more plentiful next yedr with Indiana cattle feeders buying 39 per cent more feeding cattle in November than last year. The reason is lower feed prices. - Farmers also are happy over increased productionof eggs but not so happy OVer the prices they are getting. They find it takes more eggs to buy next week's groceries. Laying flocks stepped up production this fall and the abun-|— TT { Jance of eggs brought a setback creasing load is the need, says| in prices. - {Mr. Abbett. : “Ngnh-graded or “current re ofr ceipts” in the Indianapolis area Plenty of Fertilizer brought 55%¢ a ~ dozen ‘last Full fertilizer bags, stacked: to month. Now they're down tothe warehouse ceilings, lead the 43c. ifarmers to look for ample supA h plies next season. Hig er Power . But there may not be an overFarmers'in about one-third: of SUPPly. Manufacturers explain the “country will write bigger;the finished. product, backlogging| checks to pay for electric power In factories, is hampering. full and light next year. |peogction. Dy Operation j etween now an e first o Rural electric co-operatives, |, will be needed if farmers paying higher rates for whole- t t h fertilt sale power, will be forced to hike °c '0 8€t enough fertilizer. retail charges. Cows in the Parlor To date, rate increases in In-| You may never see the tradiana have been few, but Hugh ditional bull in the china shop Abbett, director of State-wide but you won't have to go far to Rural Electrification, says bills see cows in the “parler.” : David Mills of Mooresville is Farms use power nowadays one of several Indiana dalrymen to milk cows, grind feed, pump adopting. the “milking parlor” water and do many other jobs for more efficient milking. electrically. His 21 Holsteins take their “Bigger wire to carry the in-'turns at the 3-stall “parlor.” The

made the installation, says the

Capacity operation}

inches high while the operator applies the milking machine, standing comfortably beside the platform. : No squat, no stoop, and the milk disposal room is only four steps away. Glen Benner, Southport, who “parlor” is so clean a man could milk with his dress suit on.

Snow-Covered Meat Grandpa always knew cold would keep his meat from spoiling. : With today’s home-freezing ervation of meat have gaken on a new look.- But the ofd axiom is still. good, “the co¥i® the better.” T. E. Sullivan, director of the Food and Drug Division, State Board of Health, warns owners

‘snow” on their meat when they take it from a storage compartment. Snow-like crystals indicate the

from freezing at too high a temperature. He advises freezing meat as soon as possible after killing, at as cold a temperature

~The Notional Outlook Sa American Hard Goods Makers Join Cutbacks

SUNDAY, DEC. 19, 1048

Thor, National Carbon, Western Electric and Clock Industry Affected

By J. A. LIVINGSTON i " PUNCH, British humor magazine, indicates that Brit. ish merchants are having Christmas troubles, too. It quotes a British housewife, “There was a knock on the back door

land to my amazement I found four tradesmen canvassing

for orders.” Then comes the Punch line: . “The first order she gave was to form a queue.”

Apparently Britain's Fath-

Till now, we've been able to

‘ler Christmas ‘and America’s/sum up the American economy

Santa Claus have brought js oie vols; ad Svods hard, foi : re, soft goods soft.” But even the housewives identical gifts— hard-goods manufacturers are a buyer's market: Perhaps the|going in for retrenchment. BeBritish housewife, tired of queques,|cause of increased efficiency and rationing and terribly short sup-ja catching up to demand, Westiply will welcome the change with|ern Electric has cut employment

"|Co. ‘indicated that the supply of

equipment, butchering re pres-

can counterpart.

Layoffs Spread

tool manufacturer; Westinghouse National Carbon, a Union Carbi

offs, have reduced the work week. In the same temper, -JohnsManville Corp. warned dealers that a period of stiff competition lies ahead, The Armstrong Cork

linoleum will catch up to demand by spring. And automobile production reached 125,000 a week a rate of better than six million cats and trucks a year and equal to the 1929 high. : Ward's Automobile Reports promptly pronounced a buyer's market “unquestionably is here in all categories of trucks except for light models.” That's understandable. Since the end of the war nearly 13 million motor vehicles have been produced, or 42 per cent of the 30.6 million cars and trucks registered at-the end

less apprehension than her Ameri- |

from 133,000 at.the end of 1947 to about 108,000.

Other companies to announce layoffs include Foote-Burt, Cleveland machine

Electric's small motors division

at Lima,. O.; General Time Instruments (Seth-Thomas: clocks);

de and Carbon subsidiary. And

numerous shoe, téxtile and clothing manufacturers, instead of lay-

ply-demand shift is oil. A year ago, consumption of gasoline, kerosene, fuel oil; and heavy residual oils were exceeding supply by about five million barrels a week. The cry was: More oil Today supply and “consumption balance and the Texas Raliroad Commission has ordered a cut in production. Explanation: “Too much oil—crude and refined produéts—in storage and above the ground.” Here are the statistics:

. itlions of Yr.-to-¥r, Week s, on Hand® Increase Ended 5 1947 In Stocks Nov, 27.... 292 226 ‘Dec. 4.... 292 220 72 Dee. 11..,. 291 214 ki

of 1945.

* Gasoline, kerosene, fuel off, and residuals, :

. PHANTOM WAGE BOOSTS Postwar pay is up almost 35%.Ditto the cost of living. So real income stays put.

INDEX. SEPT. 1945-100

g 8

Pata: Bureau of Labor Statistics

economic gain. ment.

tion—won’t permit it. In the recognize that employers will be

readier to stand strikes if the mails are not brimming over with

temperate in their demands. By {he same token, future wage increases will be more meaningful. The first three rounds of wage increases since the end of ‘the -war -went- poof—into higher lprices. Goods were scarce, Demand was insistent. So producers

. of home freezers to beware of Last-Minute Rush mas rush will be an important clue to sentiment. the week ended Dec. 11 are encouraging—off only 1 per cent from a year ago as against a 5.per cent decline in the weeks ended Dec. 4 and Nov. 27, and 6 per cent in the week ended Nov. 20. The loss of nutritive juices, resulting|New York Federal Reserve dis- PR TT.

trict, off 6 per cent, was a major factor in the drop. Apparently, sales are gather. ing more than seasohal mo-

as possible. If it’s cold enough, there will be no “snow.”

W/E your new house is to be built of concrete masonry, brick or frame, it will be a better house if it has strong, firesafe concrete subfloors. Rigid and shakeproof, they sway firm and level—thus preventing sagging walls and doors, creaking floors and gaping baseboards. Remember, half of all home fires start in the basement. Concrete subfloors retard the upward spread of flames. Think what added safety this gives your loved ones. a With concrete subfloors you can choose any floor finish you want—say hardwood or carpeting for the living room and bedrooms, linoleum for the kitchen, tile for the bathroom, terrazzo for the reception hall. Concrete subfloors make a perfect base for them all. "Be safe! Be sure! Get the b==+, Insist on concrete subfloors.

"When Building Your Home, insist on the Best Subfloot possible. Insure safety with a Concrete Subfloor.”

PORTLAND CEMENT ASSOCIATION

611 Merchants Bank Bidg., Indianapolis 4, Ind.

A national organization fo improve and exiend the Uses of portland cement and concrete : i ; through scientific research and engineering fleld work

ANON

pri self. : Have yo

lose?

Agree

CONCRETE SUBFLOORS CAN'T SAG, CREAK OR BURN

s . pita WN

~A'40-OR ‘41 AUTO?

A New Car. :. No Cash Down... If

. If you drive a good 1940 or an aver- | age iM cornaw...the chancesare. very good that your old car will cover - | the full down payment on anew 1949 Kaiser or Frazer. Isn't that-good news? It means that you can start. + driving a brand new 1949 Kaiser-or- —4 Frazer WITHOUT additional cash outlay. Why can we do this? Because we just take a new car profit. You get full market value allowance ‘ for ‘your old car and if you don’t agree, you can go and sell it your-

mentum as we approach Dec. 25. And this must be borne in mind.

”»

u ever driven a 1949 Kaiser or Frazer? Would you like to drive . one yourself? With your family along? If you're from Missouri and have to be shown, we especially like you. Come in and see what the deal = is... talking is free . . . what can you

- -

3209 EAST WASHINGTON STREET « MARKET 8535

The emergence of a

Management and Labor yuyers market ts net It imposes restarint on both labor and manjgeIn the first place, management won't be able to pass along wage boosts in the form of higher prices.

The market—competi= second place, union leaders will

all along the line could raise prices as the pay envelope fat-

[tened. Result: - Real income of new orders. 'Su:they’ll be ‘moretworkers did not increase,

But the buyer's market introduces doubts: Will inflation turn into deflation? Will the increase lin layoffs, will the decrease in employment in cer‘ain industries, land the resultant decline in payirolls cumulate into a major readjustment?

The behavior of people at the department stores in the final Christ The returns for

{We're comparing the week of the [11th this year with the ‘week of {the 13th last year. Last year's isales had a statistical advantage:

{They were two days closer to

{Christmas.

A dramatic example of the sup-

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332

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