MANAGEMENT: Open the Books

Labor relations had become so bad at the Niles-Bement-Pond Co. machine-tool plant in Hartford, Conn. that they could only change for the better. The company’s president, Harvardman Charles Walton Deeds, 44, was good at making money (he ran a $40 stake in Pratt & Whitney Aircraft Co. into a $1,600,000 profit). But he was stiff-necked in his dealings with employees. The C.I.O. United Electrical, Radio and Machine Workers Union, which was heavily sprinkled with Communist leaders, was just as tough as President Deeds. Last year their mutual toughness resulted in a bitter 20½-week strike which bled both sides white. The bitterness lingered.

Since then, both company and union have changed leadership. When Deeds resigned in March, the directors replaced him with Frederick Underwood Conard.* In 30 years as executive vice president of the Underwood Corp., Conard had made a reputation as an exacting but fair boss. Hardly had he settled his 6 ft. 5 in. and 230 lbs. in his new job than his reputation was put to the test.

The union, inspecting the company’s annual report, saw that it had a $10,000,000 surplus. It jumped to the conclusion that this was money in the bank and demanded a 15¢-an-hour raise. Conard, remembering C.I.O.’s war cry in 1945 of “Open the Books” asked the union if it would like to look at his books.

Surprised, the union men agreed. After poring over the books, they found last week that the millions they had thought were available for raises were somewhere else. Said Union President William Lawlor: “The books proved that a major portion of this surplus was invested in inventory. They also showed that the company, since V-J day, has invested hundreds of thousands of dollars in designing and tooling new model machine tools. Both these points, to us, spell job security. A general wage increase at this time would put an undue strain on the company’s resources.” The union withdrew its 15¢-an-hour demand, settled for six paid holidays (equivalent to a 3¢-an-hour raise). In September, when the present contract expires, the union will decide whether to renew its wage demands. Said Conard: “The union was very cooperative.”

* Nephew of John T. Underwood, first president of the typewriter company.