Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-02-27
WOOLLEY, RADIATOR KING, RUNS
BUSINESS ON ECONOMIC STUDY
Says Outlook Is for Continued
Good Trade-Scoffs at
"CycIes" Now.
Sees No Danger Signs on
Horizon of Industry-Cau-
ton Advocated.
BY Nj. S.. .RUKEYSER.

Clarence Mott Woolley. president
and chairman of the American Radia-
tor Company, has long run his COM
pany on the basis of applied economic
scholarship.
Until recently, he modified sales and
credit policies of his company, with its
far-f1ung worldwide organization, in
accordance with his reading of
changes in the business cycle.
Mr.. Woolley is mo longer doing
that.
/ asked him why as I caught him
on the run in the tower of the Radia-
tor Building on West b'ortieth street,
New York Mr.. WooAley will talk
freely to serious students of the bust
ness situation, but avoids personal
publicity and is interview shy. He
talked with the understanding that he
would not be quoted, but later con-
WINGED the kindly blue-eyed executive,
who has iron gray hair and friendly
smile, that his views, if published.
would help other business men to
think out their own problems.
1.-THE business cycle" Mr. WOolley
said, ''has been Abandoned or ad-
journed We are no longer much
concerned about it because of the ef-
feet of the Federal Reserve system in
introducing scientific banking Prior
to the establishment of the Federal
Reserve system, whenever we reached
a period of normal business prosperity
it was brought to an abrupt end by a
panic because Of the inadequacy OF
currency and credit. That in brief
was the business cycle. In the old
days. when business got good. we be-
gan to pull in our horns in the bel1et
+1,ot a oh coming
Says Outlook is Good.
THAT is no longer the case. In my
opinion, the outlook is for continued
good business. l see no reason why
we should not have prolonged
period of good times with occasional
moderate setbacks which other coun-
tries with scientific banking, like
England. enjoyed before the war. In
England, hard times used to consist
mainly of a spell of per cent
money!
Oueried concerning prospects in his
own line. Mr.. Woolley said that the
sale of heating apparatus was not en-
tirely depending on continuance OF
the building BOOM Besides equipping
new buildings" he explained, "we
have a big field in installing modern
heating facilities in old buildings.
Many homes. in spite of the rising
standard of living. have no adequate
heating arrangements, so there is still
a large undeveloped field for cultiva-
ton
Mr.. Woolley asserted that he saw
no danger signs on the business hori-
zon. The prevalence of caution, ne
thought, was a restraining influence,
which would tend to prevent excess.
With factories in foreign countries,
Mr.. Woolley has facilities for keeping
in touch with world developments. He
sees signs of improvement in Europe,
particularly in Germany and England.
"In Germany" he said, average
earnings in our industry, expressed
in terms of gold. have risen from $1.40
a day to $240, and in England from
S13O a day to $2.75. Unemployment
is decreasing in Germany. Wages in
France, Italy and Belgium. however,
are still below those prevailing in
countries on the gold standard.
Magnificent Spendthrifts.
"In Lord Roseberry's phrase. the
countries with deprecated currencies
are magnificent spendthrifts, export