Evening star., 1937-01-03
BYR. H. HIPPELHEUSER.

BY r. H. HIPPELHEUSER.
NEW YORK, January P).-The
entrance of Rexford G. Tugwell into
the business world next week, his
associates believe, will not mean an
abandonment Of his beliefs IN pro-
pressiye economic and social change,
nor will it curtail his advocacy OF
them.
Instead, the change from Washing
ton to Wall Street offers him a new
field Of opportunity, the third phase
of a three-fold career as an econo-
mist-in theory as q professor at Co.
lumbia, in practice as one Of the de-
velopers of the Roosevelt New Deal
and now a continuation Of this prac-
tice in business.
It would be difficult for Tugwell to
find a more harmonious associate IN
business than his new boss" 40-year-
old Charles w. Taussig, president and
chairman of the board of the Amer
lean Molasses Co.
Theirs is a relationship founded
upon a similarity of views, friendship
which had its inception in Franklin
D. Roosevelt's 1882 pre-conventlon
campaign.
Broad Views Needed.
What prompted Taussig to offer the
economist a position as executive vice
president of the molasses company?
N11nctinY1 tnH9v
In these changing times. every
business needs the services OF men
trained in economics, with a broad
objective social viewpoint. If business
is to survive and prosper, 1t must
change as social and economis condi-
tions change, and become lntegrateo
with all phases of our national life.
Il have long regarded Tugwell not
only as an outstanding economist bul
as a capable administrator and have
long wanted him to come to work fol
us if and when he left the Govern
ment."
There undoubtedly will be much
"extra- -curricular" activity for both
Tugwell and Taussig, for their inter-
ests are not alone in the business oi
the molasses company. Both are in.
terested in the furthering Of the CO.
operative movement in the United
States, in the regulation of busines:
and industry. in the achievement OF
what President Roosevelt has called
"the more abundant life"
Fortunately for them, the Set-ur
OF their company gives them consid-
cradle freedom. 1t is almost entirely a
family concern, founded rs years age
by Taussig's grandfather, the late
William Taussig, one of the many
emigres who followed Franz Sigel to
the United States after the 184s
democratic uprising in Germany.
The founder left the business to his
son, the late Noah M. Taussig. and
the grandson took over the presi-
dency when he was only "a years old,
in 1920.
Only AZ Stockholders.
In the realm Of big business" the
company Is small. The stock is pri-
vately held and there are only ~
stockholders. Dun & Bradstreet gives
1t a credit rating Of $3,500,000. In
''the street" it is known as one OF
the most successful smaller companies
In the country, a money-maker.
The company has no properties out
side of the United States. except a
small plant in Montreal and a few
sirup tanks in the West Indies. In
the sugar field it operates a refinery
in Brooklyn.
1t purchases its sugar and molasses
IN the open markets in Cuba, Puerto
Rico and other places.
Long a student of Cuban affairs,
Taussig has participated in an ad-
visory capacity in the formulation Of
this Governments Cuban policy. This
has led to the frequent statement that
he held a financial interest in Cuba.
In response to an inquiry in this
regard, he replied:
Contrary to the general impress
sion, neither myself nor the molasses
company has any property interest in
Cuba outside of a few small sirup
tanks. Neither have we any personal
stake in tariffs or quotas on sugar
and black-strap molasses."
Another member of the original
brain trust" associated with Taussig
and Tugwell is A. A. Berle, who Is a
director in the company.