davidaulloa/AmericanStories huggingface dataset:
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10

cannot shut down; a manufac-
turer like Nesco must suspend oc-
casionally for retooling. There
was no lack Of business.
@. VIII you reveal the profits
made by you or your family In the
past two years by business trans
actions with the publicly owned
companies controlled by you?
A. Certainly. Total sales to Mer-
ritt-C Chapman 81 Scott in l953-54
by private companies in which my
family and I held an interest
amounted to $571,127. or Sc of !
per cent of all M-C&S purchases
in 1858. and 81 Of per cent In
1854. To New York Ship in the
two years, $754,700, or 1853 per
cent. To Nesco, $3.50. or OFT of
! per cent. To Newport Steel in
1854, $42.351. or sos Of / per cent.
Those were total sales. Profits to
me and my family averaged 5 to
10 per cent Of those sales.
q. II you won q majority Of
Ward stockholder votes, would mot
the Board Of Directors be conn
posed Of your personal cr0nies IL
respective Of their experience In
. great merchandising organizs-
ton?
A. The names Of my nine nomi-
nees were long ago made public.
One is my brother. Some of the
others I have known and done
business with for several years.
Two I met only few weeks ago.
None of my directors on any cor
poration are yes-men. Even my
brothers disagree with me at di-
rectors' meetings. Not long ago
one brother abstained rather than
vote for one OF my proposals.
Wards viii be run by top mer-
chandisers, and the directors viii
always act In their best Judgment.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10

most solvent big businesses In Amer.
lea, the sprawling mail order and
retail house Of Montgomery Ward
g. Co.
This corporate struggle will be
significant not only because Of the
company's size, but also because Of
the contenders In the fight.
One-the man now in the saddle
lis Sewell L. Avery. for "A years un-
disputed head Of Montgomery Ward,
who will be 80 years old in November.
The other-waging the FIRST major
battle against management in Mont
gomery Wards 83-year corporate
history-is Louis z, Wolfson, As
year-old Toridian whose flrst big
fiscal splash was the acquisition Of
the rich, sleepy Capital Transit Co.
Mr.. Wolfson thinks Montgomery
Ward Is just as sleepy as Capital
Transit-and about so times richer.
Mr.. Avery thinks Mr.. Wolfson Is a
pirate and an upstart.
To bring the issues between the
two men better into focus, The Star
asked each man the same nine
questions. Their tape-recorded
answers make the framework on
which this article Is built.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
Mr.. WoIfson Asks Wards

$50 a share. That is what the
stockholders actually paid in for
their investment. Last years divi-
dend Of 81 was equal to 8 per cent
Of the amount they paid the COM
pany for their stock. And the "a
dividend Is equal to about s per
cent Of the $50 the stock sells on
the market for now.
Wards, in other words, is an
investment stock, and has varied
In price more in terms Of its In
terest income than on the specu-
lative ups and downs.
@. Why were Wards earnings
last year the lowest in eight years?
A. The way I read the balance
sheet. they were the lowest in nine
years. And the answer 10 that
while it's the lowest in nine years.
It's still substantially higher than
before the postwar boom. Another
question would be just the re-
verse: How did the earnings get
from $22 million to 474 million
without our opening any more
stores?
Q. ID II mot true that the only
way Wards can climb hack into
. healthy competitive position, in
crease profits, increase dividends
and increase the value Of its stock
is to put its cash to work I'm the
business?
, A. Wards is in q healthy and
very competitive condition, and
the corporations strong financial
condition cannot be separated
from its competitive position. The
problem isn't putting the money
to work in the business. The main
problem is putting it to work in q
way that will be productive. mot
wssteful, and viii not jeopardize
the opportunity for profitable op-
Grafton over the long term.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10

Of lesser corporations, which he is
now molding into one organization
under Merritt Chapman q Scott.
But it is too early to say how he
will do over the long haul.
WoIfson, the Challenger
To most observers there are two
contradictory Wolfsons. One is the
shrewd financial manipulation. The
other is the crusading evangelist for
corporate democracy and stock
holders rights.
His fiscal. skill is unquestioned,
even though he has shown more dill
gence and aggressiveness than origi-
nality. He may or may not be
genius. as his associates claim, but
he is largely self-taught in his COM
pick field. and has the good sense
to delegate responsibility in areas
where he has no knowledge.
Wolfson, the crusader, has two
major pitches: First. directors and
company officers are just hired
hands, and should be treated ac-
cordingly. If they make the COM
pany lot Of money, they should be
paid big wages. If they let dividends.
lag. their pay should be cut. Second,
q corporations business should be
conducted in fish bowl.
Personally. Mr.. Wolfson is quiet
and earnest-and ambitious. He
says his ambition lies not in the
pursuit Of money. but in proving
himself "a champion in business"
Finally. as he has proved in the
Wards fight, he is quietly friendly
and possessed of great charm. !.
Avery, the Champion
Mr.. Avery, too. is charming man
but he has done his best to conceal
this fact from stockholders and
public, at least until very recently
He has not made single personal
pitch to rank-and-file stockholders
in the current battle.
Like Mr.. Wolfson. Mr.. Avery once
was boy wonder. but he has out
grown it. He was only 80 when he
took over United States Gypsum
Corp. and made it a thriving
operation. When he went to
Wards in 1881. at the age
of So, Mr.. Avery found q cor
porate mess. Over the years, he has
Strengthened out the mess, but at
considerable cost to organizational
harmony.
His iron-handed rule of Wards
has been one characteristic of Mr..
Avery. Another has been his ruth
less refusal to be Influenced by what
he regards as stakeholder whims.
Still another is his stern business
morality. ,-,H St
The fact Of Mr.. Averyis business
puritanism has been taken as gospel
for "a years. Faith in this gospel,
however. was shaken slightly by two
events in the last six months:
. Wards boosted its regular divi-
dend basis from so cents to IS cents
quarter last November-after MIR.
Wolfson declared himself. (There is
evidence that the dividend rise was
discussed seriously the year before,
but the fact remains that it was
approved only last year, and in a
time Of declining profits, at that
Mr.: Avery was carried out of his
Office in 1914 by soldiers after re-
fusing-"in the interests of en-
ployes"-to sign a union contract
containing a maintenance of mem
bership provision. He commended
over the years that his refusal was
a matter of principle. "A few days
ago, he signed a contract with Dave
Beck's teamsters containing a
maintenance of membership clause
and received Mr.. Beck's promise
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
Background and Comment

Actually, Wards prices are COM
petitive with other large chains.
1t is not price that has made Wards
fall behind, 1t Is the deliberate
decision not to go after business
beyond the point of diminishing
returns-in other words, not to
'over- expand."
II MIR. Wolfson wins. he has
promised, Wards will start at least
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
]. Vote Appeal

Whot is the one big reason why
stockholders should vote for your
management?
AVERY SAYS: u would soy the one best
reason would be- in the interest Of preserv-
ing the security Of their investment. hove
this in mind: The business morols followed
BY Wards management do not permit use
Of Word stock to buy for themselves other
companies OF Iorse gains and thus to
liquidote the present shareholders equity
in the business. Wards directors likewise
never would permit the use Of company
funds to further their own personol ombi-
tons for the control Of other businesses"
WolFSoN SAYS: II believe it is to the
stockholders interest because | sincerely
believe we con increase the earnings and
dividends Of this corporation. Ny beck
ground and my record in other publicly
owned corporations show how hove eeted
es trustee and empIoye Of the stockholders"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
9. The Surplus

In general, how should the $780,
million Ward Gosh surplus DO
used?
AVERY SAYS: "Thot should be used 10 bring
obout future growth through tokins 3D.
vontoee Of expansion opportunities and 70
protect the equity Of the stockholders.
solveney is essential to successful and
growing business"
WoLFSoN SAYS: well, the first year ws
have the following proerom in mind for
Words. An expenditure not in excess Of
SIS million covering the following items:
RemodeIins some OF the good Iocotions, re-
locating some Of the poor Locations in pros
porous communities, improving the moii order
operations, which is smoIl port Of this
program; buying department stores in PROS
porous. profitobIe communities where Mont
eomey Word does NOT operate at present;
building new stores during the first year"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
Background and Comment

An essential difference between
Mr.. Avery in 1881 and Mr.. Wolfson
in 1855 is that the incumbent took
over sick company. Wards
today-with more than $500 million
in cash and Government bonds and
no debts far from sick, even
though its position relative to Sears
Roebuck Is deteriorating yearly.
A point in Mr.. Wolfson's favor.
however, is age. Now that Sir
Winston Churchill Is in retirement.
Mr.. Avery. at 81. stands almost
alone with Korea's Syngman Rheel
as an octogenarian top executive in
any major activity. But on Wards
side, 1t should be said that the Sec
ond-echelon leadership Is more Of
Mr.. Wolfson's age.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
6. Personal Stock

How much Words stock is owned
personally by you and your family?
AVERY SAYS: About 100000 shares"
WoLFSoN SAYS: n have, with my wife and
children. 1900 shares at present. ! would
soy my brothers ond sisters and the closed
competitions we own personally hold another
so to 10 thousand shares"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10

@. Why did Montgomery Ward
sales fall of Sill million last
year?
A. The reason our sales fell
of Sill million was the tncreas-
ing competition for business in
the retailing field.
@. Why il Montgomery Ward
earning less than SIS per cent
ON its net worth lowest return
since depression year 1935) when
the major competitor earned
1856 per cent?
A. The answer to that ques-
ton is almost self evident from
Wards balance sheet. Set aside
the Government bonds and cash,
and the ratio Of earnings to in
vested capital would Immediately
adjust itself to q very favorable
position with our competitors.
There Is no debt at all ct Mont
gomery Wards. and our Govern
ment bonds earn interest. The
amount invested In them. we feel,
10 a. secure a. the Government
itself.
@. Why d Wards stock selling
ut . discount from book value
when its competitors stocks are
double and more than book val
ne?
A. Montgomery Ward stock,
historically, with its value both
in terms Of dividends and Sc
curity Of investment, has adjusted
itself on the market more in
accordance with the amount of
income it brings. When the divi-
dend was So, the stock was usu-
ally somewhere around $50 on
the market; in other words, the
dividend usually was equal to 8
or 8 per cent Of the stocks value.
The last stock sold by Mont
gomery Ward, in 1916. brought
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
4. ThePubHc
How will your management benefit
the buying public?


the buying public?
AVERY SAYS: "By continuing to serve
merchandise Of excellent quality ct the
lowest possible prices. Verbs management
prohibits offieiols and employees from
eoereins ony Of its buyers into making pur-
ehosss from suppliers in which they hove a
personal investment. And Words moness-
rseat oIways hos violently opposed oil efforts
on The Part Of enyone to siphon off for them
selves any Of the economies properly due
the eompony and its customers by meons
OF official pressures in fovor Of suppIiey in
which they hove personal investments. Ia
other words. price for quality IN the open
morksf will remoin the guiding policy Of
all buying ond selling at Wards" .
WolFSoN SAYS: Once We hove control
Of the operotion Of Montgomery Ward we
believe thot we'll be more competitive with
Seors Roebuek and others. We think the
prices will have to be more competitive, and
the buying public eertoinIy will hove more
odventose ct lower prices"
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
Proxy Contenders Have Few Questions Of Their 0,

Both sides the Ward hght said after questioning The
they questions ask matter Of
fact the conenders have been publishing expensive
ads asking many questions but getting few answers.
The Star agreed public service to act boy
in running the questions back forth As expected the
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
9Questions, Answered by Both Men,
Probe to Core of Control Dispute
BY WILLIAM HINES AND RICHAl

By WILLIAM HINES RICHARD FRYKLUND
Twelve according schedule
grand
In Chicago
April a. will take place the biggest pubczed
financial battle since last proxy
Central Railroad.
The richest most conservative and
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
Background and Comment

The difference between the Avery
and Wolfson concepts is the differ
ence, in politics, between Dictator
ship and a politburo government.
In "a years at Wards, there has
never been any doubt about who
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10

questions turned loaded-obvousy designed make
the respondent squirm.
Each side limited I'VE questions and the
recorded magnetic Here the questions transcript
ons the president
Edmund A. Krder.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
2. Experience
What in your business experience
makes you the better man to con-
troll Words?

AVERY SAYS: THE easwer Is that HE
record spsaks for itself. Wards present
operators ore experienced in merchandising.
ond HE company continues to have most
satisfactory record. as il hos had for the
post q years"
WoLFSoN SAYS: age Il eerteiab On my
side. In 1881, Mr.. Avery had absolutely no
merchandising experience, based On his own
settlement. believe the diversified com
ponies ! hove deoIt with in the lost seven
or eight years give me . better background
Of building men ond organizations. We hove
proven over the past several yeon that we
hove on organization TO toks over Mont
somery Word ond improve It and make
II work."
Evening star. [volume] (Washington, D.C.) 1854-1972, 1955-04-10
3. Control

1t your slate IS elected, what lndl-
viduoI will be actively in control
Of Montgomery Ward?
AVERY SAYS: "Montsomsy Words BY
lows ore public and veY eIsor on thot point.
The top executive officer will be the choir
mon Of the board elected by the directors.
ond the chief operating officer will be the
president"
WoLFSoN SAYS: THE board Of directors
will have to set the policies. As for as the
merchandising operotion Is concerned, We
have in mind o president and five top
executive vice presidents who will be in
ehorss Of various phoses Of this business"
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10

As per cent of their incomes fol
Ifes neces Stiles. leaving about
S. per cent for whatever took
Their fancy Since 1916 hxec
charges such as rent. food and
installment commitments hayt
been taking a larger share Of he
income Last year So per cent Of
the average consume IS income
was spent for fixed charges leav-
ing Il per cent for discretionary
buying 8 per cent less than In
ls45 As long as business bo0ms.
there IS little need to WORRY But
should strikes this summer OF
overproduction or layofs. catch
up with us. the heavy load If
fixed charges which many con-
summers are carrying could be SER
!ous. When labor leaders realize
this situation. they may not call
strikes this summer
savings Account Good Insurance
I am concerned about this be-
cause know that major cycles
OF prosperity and depression vail
always be with US as Il result Of
the unforeSeeabie and inevitable
vagag.es Of human judgment.
am concerned about the present
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10
Hamersley Elected
Chairman Charlotte
Board of Supervisors

" l. Hamerslev has been
elected chairman Of the Charlotte
county board Of supervisors re-
placing The late OTIS o Tucker
IN its last monthly session. the
board adopted resolutions ex-
pressing its sense OF loss IN the
death of the former chairman.
In his passing the board Of
supervisors has suffered the loss
OF an afable and congcnial com
panion a wise and able counsel
Tor, whose empty chair We behold
with sadness, and whose CHEEKY
smile and sunny presence wc
sorely miss" the resolution stat
ID in part
IN its business session. the
board voted to raise the number
Of assessors for the 1855 reas-
sessment Of real property from
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10
Babson Discusses Planning For Tomorrow

Babson Park May IL II you
should lose your lob tomorrow
loW much OF n financial hard
ship would you and your family
suffer Are you up 10 your neck
lnstallment payments? Have you
borrowed too heavily on your in
surance? What If serious illness
should strike your family?
Many Getting Ovtrextended
A thirty-year- old workers OF "a
small New England machine tool
producer was laid of the other
day He had been making 500 90
week. That is SAG d month be-
fore taxes He has fixed monthly
nstallment commitments 500 90
interest and mortgage on his
new house, SCI Is on "a 1853 au-
tomobile. $1,000 on set OF en-
cyclopedias. sls75 ON ~.
$32 90 on trip to Bermuda for
his wife. $40 80 on ii food freezer
that know about In addition.
he has several hundred dollars
outstanding with department
stores. He owes Il winter fuel bill
Of sl35 90 He Is behind IN his
telephone and light payments.
The local grocer. dry cleaner,
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10

G ? 10 bring the cause Of alte-
grafton before the Supreme Court
The Court dec sion Of Mag nth
HAS awakened people forme. lg
lulled INTO laXI;y in respect t0 ya-
clal issues II There be- any good
To come Of this movement II viii
pr the determination Of thf races
In this county to remain strictly
separate as far as practlsabla
thus avoiding I'LL feelina ARD guar
anteeHng the integrity Of the
races The n A A & = has sim
red race consciousness TO a point
where racial preservation Decom s
most important So in the tnal
analysis. racial integrity viii be
preserved because Of the resist
ance Of both races 70 this at
tempt at forcing upon them In-
tegratlon which fosters irteg1a-
clal biological mixing
No progress II racial deseafeea
ton has been made in Prince Ell
ward County up To the ptrseut
time and ii is doubtful that any
appreciate progress toward ra-
clal indignation will ever be made
in this county Tie idea of tac.a
lutegrat!on whether IN schools
churches or elsewhere always has
been. is now. and always wt.l b.
unpopular in this county Tht
great majority Of The people Ut
Prince Edward County are do
termlned that the races will re-
main separate
j GUY LANCASTER
FaIme.lle Va
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10
Temporal Life
Does Not Satisfy

Why are the religious writings
the best sellers Why are the
multitudes going to see the NOV
ing picture OF The Man Called
Peter? Is it not because people
are growing as almost never be-
fore to find the clues Of Ates
meaning
The goal Of Happiness is itself
an elusive thing. not to be reach
ed BY methods Of the engineer.
and many seek it all their lives
without finding it
And when d person pauses to
view his life in the light Of tile
eternal he begins to feel thai
life is more than meat. and tile
body more than ralment' ana the
spirit more than mortal
Since it is impossible to 1--we 2
Christian life alone, let alone to
worship God by ones self, }heu
We should Join a corporate body
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10

mllkman. and other merchants
whom he owes have put him
on cash basis He has borrowed
$3.50 90 on an insurance policy
and now finds he cannot pay the
quarterly premium due
Perhaps this young man Is an
exception and not typical Of most
young workers. He could get along
and might even work himself out
of his financial difficulties, II he
could keep fully employed and not
get involved In strikes. But he
has seriously overextended him
self What II he could not quickly
get back to work?
Wageworkers' Debts May Prevent
Strikes
This man is a product OF our
postwar wave OF prosperity In
way ! cannot blame hun He has
been encouraged yes even bullied
by ardio, magazine. and T'V sales
men. TO overload. This young man
had more money to spend than
ever before. What has happened
to him might happen 10 you Here
is why.
Right after the war, IN 1916.
people were spending only about
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10

of Tehyan Iran who N sponsor
ed 8s tae Ford Foundation III
Club and Is trying To learn from
ua Here what MY III and haw VIZ
do il thanks OF Mr. " p San
de9s0n with whom tae splendid
lad is makinz his stay ! could
understand about an much N This
Language as he could Of mne
bnt I most thoroughly enjoyed
TIE WISH amt nobody takin
anything serious these DAYS
Thanks f0r reading
Yours ] MARVIN BROWN
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10
Offense or Defense

HANSON w BALDWIN. military writer
for the New York Times. recently out
lined what l.. $. intelligence has reported
IN the way OF Red Chinese buld-up OPP
posite Formosa. The outline is not anything
sensational which would indicate a threat
To Formosa in the next month or So
While we are not attempting to be pro-
phets and while we realize that an attack
on Formosa may come tomorrow, we think
the New York Times military writer's an
alYsis is significant.
The Reds are said to be concentrating
ON airheld construction and using mass
coolie labor They are reported to have 4
new strip in operation, opposite the Tachen
Islands and ii is estimated that forty
MlG-l5 fighters have been based there
since the first of April
They have not yet finished another strip
opposite the Matsu Islands but this strip
in not expected to be ready until June.
Another is being expanded south of Que
moy but as far as is known at this time,
no Jets are based there
The Farmville herald and farmer-leader. (Farmville, Va.) 1934-1957, 1955-05-10
Polio Vaccine

IAtCINATION for polio by the SaIk
method has been halted temporarily for
complete study by I. $. Public Health
Service From hll indications there il no
reason for alarm following the first mass
vaccination begun April ~. Basic data on
trial tests prove the vaccine safe ana sue
cessiul, which would indicate that the SaIk
method IS practical and safe. Research was
exhaustive IN Development Of the method:
Results would indicate that the prepare
tion If the vaccine may have caused an I'M
due increase in polio cases in the West In
California, Of the IT'S 900 children / per
J.2lO yaccnated developed polio in some
degree; while among 100000 unvaccin-
ated children under age 20 a rate Of in
$4,000. In Idaho, $4,000 children were
Vaccinatcd with Il rate Of incidence Of ! in
1920 In these two States, vaccine produc-
ed Nv the Cutter Laboratories Of Berkley,
California was used In the nation AZ
whole 80 million children were vaccinated
and up to May > the rate Of polio was ten
cases or ! out Of every $50 900 in this
group. BY comparison the indicated rate