Evening star., 1924-08-20
BIC FIRMS MOVE
TO SMALL TOWNS
Closer Contact Being Sought
Between Producing and
Distributing Ends.
BY j. G. ROYLE.
Special Dispatch to The Star.

NEW YORK. August 20. White
collar workers as well as soft shirt
men who come to the large cities to
work nowadays are likely to be COM
PEELED to turn around and go back
to the smaller towns. There is a
distinct movement under way toward
closer contact between the produc-
ing and administrative and distribut-
ing ends of many basic industries. as
well as IL desire to concentrate ac-
tivitieS OF each close to the center
of its markets.
This trend in policy has been
strengthened by number of factors.
One of these has been the rapid in
crease of property values and rents
in the larger cities. a concern which
moved it's executive and sales depart
mcnts recently from New York to the
Middle West was able to buy prop
erty and build its Offices there at a
cost equal to about one years rent
for it's former quarters in this city.
Cost of living for employees also has
been taken into deep consideration,
in an effort to avoid a higher scale
of wages without lowering personal
efficiency or standards of living
among the workers.
Labor Also Changes.
Moves of Industrial plants and fac
tories to smaller centers has been in
spired by similar motives and by the
search for cheap and dependable
power facilities. Many sites have
been changed also by the transforma
tion in the foreign born population
engaged in certain industries.
Tho piano industry for many years
was almost entirely in the hands of
German workmen. The piano work
ers, wood carvers, picture frame
makers and pipe makers formerly
were of German origin. Their places
now have been taken to a large ex-
tent by Russians, Poles and Italians.
The manufacture of canes and UNI
brellas, formerly in the hands of the
Irish, has now passed to Jews of for
eign birth. Many of these industries
have moved in order to get closer to
a suitable supply of labor.
Truck transportation also has
enabled manufacturers to utilize sites
where land values are cheaper and
where the cost of storage facilities
for raw materials and finished stocks
are not so high.
Employees Oppose Moves.
These moves to smaller towns have
been vigorously opposed by many OF
the employees. The chief disadvan-
tace is the difficulty of attracting
skilled labor" says a finding of the
committee on the regional plan OF
New York and environs. 'Workers
and their families do not want to
leave behind them the shopping and
amusement advantages of Manhattan
and the foreign colonies. where many
find their chief social life
Many who have moved from Broad
way to Main street, however. are
thoroughly satisfied with the change.
Officials of the Indian Refining Com
pany, which moved it's executive and
sales force of 900 people from New
York TO LawrenceTille, Ill, where its
refineries are located, declare the
policy marks new movement for the
redistribution of the working popu-
lation. as well as an improvement in
efficiency in selling and manufacture
ing, a cut in overhead and a saving
of time in communication.
The experiment is proving sue
cessful." said J. II. Graham. presiden mt
of the company we asked our
white collar workers to make six
months trial of living in the small
community in Illinois, and guaran-
teed return expenses for themselves,
their families and goods If they
found their urban instincts too strong.
Only 10 have returned-11 in the
accounting department and mem
bers of the sales force.
Personal Touch Helps.
The personal element in industry
may be restored through removal to
smaller centers. Closer association
brings better business and more busi-
ness. High executives become aware
of the human qualities of those un-
der them and are able to base ad-
yancement of their men on broader
understanding of their abilities. A
return to truer industrial democracy
is evident as further development
through the breaking down of arti-
fetal barriers between the ranks OF
the workers"
Among other organizations who
are taking similar steps is the Amer
lean Wooden Company, which is
gradually transferring its executive
departments from Boston and other
cities to SbaWsheen Village.