Evening star., 1927-11-28
.GARY'S SUCCESSOR
SOON TO Be NAMED
U. S. Steel Corporation Ex'
pected to Announce Farrell
as Board Chairman.
BY j. C. ROYLE.
speciaI Dispatch to Tho Star.

NEW YORK, November ga
momentous decision for business will
be made Tuesday, when one Of the
chief industrial concerns Of the world
announces the successor to Judge E.
n. Gary as chairman Of the board OF
the United States Steel Corporation.
1t is not anticipated that the ap'
pointment, no matter who Is chosen
will change the selling policy of the
corporation. But the announcement
will emphasize this policy at a time
when other industrial and distributing
concerns are struggling desperately to
formulate, a successful sales policy.
In scores of corporations, especially
in the automobile and machinery
fields, small profits are being blamed
on sales forces. The salesmen are
passing the buck right back to the
tives.
Situation Outlined.
On the one side, the executives say
that statesmen are taking orders at
prices which show little or no profit.
just to pile up sales. They declare
they are looking for salesmen who
will sell customers on the advantages
Of their products instead of coming
back to the Office and selling the
executives on the arguments of their
competitors and the difficulties which
surmount the consummation of sales
The sales forces, on the other hand
declare that the factory heads and
executives cannot or will not stick
to a sales policy and that they will
sacrifice any such program to pro
duction. The front office mon, they
add, are always yelling for increased
production and come to the sales
force to get 1t no matter what con.
cession is given to get business.
Farrell Probable Choice.
It seems likely from present indica.
tions that President James A. Farrell
will become chairman Of the board of
the Steel Corporation. Mr.. Farrell for
years has been the dominating figure
in the sales end of the corporation,
and his new position will bring his
policies vividly to the front. He has
never been a supporter Of the policy
of slashing prices to the bone to get
volume Of business, and 1t is probable
many corporations will adopt his
stand.
Heads Of the larger automobile con.
Germs have. repeatedly said that the
competition which all know is coming
in 1928 will not mean slashing price
cuts. In this connection it is notable
that the truck company which has
made the most outstanding success
this year not only did not make price
cuts, but steadily maintained a price
level somewhat higher than many of
its competitors.
Volume Production Chief Aim.
Volume production is fetish to
many manufacturers. They feel that
in volume lies cutting of costs and
widening of profit margins. All agree
with this to a certain point, but many
producers think volume can cost too
much to get. One of the largest dis
tributors Of machinery and supplies
in New York City said today that his
firm could do three times the volume
of business it was doing provided it
took some business at or very close to
cost.
But we are in business for profit, !"
he said. 1--WE will not take a nickel's
worth of business which does not show
a profit. whether the plants are at
capacity or not"
There are many opponents of this
attitude. The department store men,
for example, say that by selling one
article at cost they attract customers
for other articles at a profit.
Safe Course Indicated.
But at any rate there is a decided
tendency today not to accept business
merely for the sake of turnover. Au-
tomobiles will not be given away. No
amazing trade.ins are going to be al.
lowed on old cars. No easier terms on
part.payment purchases are in sight.
Statesmen who can get the business
and get 1t without making concessions
are in more demand than ever, and 50
are executives who can formulate g.
sales policy and stick to 1t despite
temptation offered by volume produc.
ton.