Signing Off

Lewis leaves the Cabinet

In a Cabinet more Early American in look and feel than Danish modern, Transportation Secretary Drew Lewis, 51, was a polished piece of work. An able and politically adroit administrator, Lewis scored points for his decisive handling of the Professional Air Traffic Controllers Organization strike a year and a half ago and his successful push for the federal gasoline-tax bill passed by Congress last month. But when Lewis outgrew his job, no other seemed soon in the offing. Admitted one top White House staffer: “He’s felt underused.”

Lewis is unlikely to feel underused in the future. Last week he resigned his $69,630-a-year post as Transportation Secretary, making him the third official to leave the President’s original Cabinet (the other two: Secretary of State Alexander Haig and Energy Secretary James Edwards). On Feb. 1, Lewis will take over as chairman and chief executive officer of Warner Amex Cable Communications, Inc., one of the country’s largest cable companies, which has 147 cable systems in 27 states. It is jointly owned by Warner Communications, Inc., and American Express Co. Said Lewis: “It is an appropriate time for me to return to the private sector. I have no political ambitions.” Lewis’ new job is likely to challenge all his administrative skills. Analysts believe that the company’s prospects remain good, but the unexpectedly high cost of installing cable systems in its urban franchises have cut into revenues. Losses totaled nearly $20 million last year, and are expected to be around $40 million, or more, for 1982. Warner Amex is seeking an additional $100 million from banks.

Industry analysts consider Lewis an excellent choice to turn the company’s fortunes around. He founded his own consulting firm, Lewis & Associates, in 1975 and helped guide the reorganization of the ailing Reading Railroad into the Consolidated Rail Corp. (Conrail). In addition to his experience in capital ways, Lewis’ value lies in his background as a corporate troubleshooter. Says Anthony Hoffman, a vice president of the New York City brokerage firm A.G. Becker: “His political reputation and skills will be an added asset when it comes to the hunt for new cable franchises, but what is really being relied on here is his business ability in what constitutes a turnaround situation.”

By leaving now, Lewis avoids having to take sides in the bitter Washington debate likely to be fought over the President’s troubled economic program. The White House wants to announce a successor before Lewis cleans out his desk, and is giving serious thought to nominating Elizabeth Dole, assistant to the President for public liaison and the wife of Kansas Republican Senator Robert Dole.