IlLINOiS HISTORICAL SURVEY 'v. An Old Alan Looks Back An Old Man Looks Back Reminiscences OF FORTY-SEVEN YEARS IN THE GENERAL OFFICES OF CRANE CO. BY JOHN B. BERRYMAN CHAIRMAN OF THE BOARD CHICAGO PRIVATELY PRINTED 1943 COPYRIGHT, 1943, BY CRANE CO., CHICAGO ' '10) I FOREWOR I) LK^ o LD MEN like to rcniiniscc. And naturally so. For them there is no future, so they live with their memories and look back on the road they have traveled, because the road ahead ends abruptly in the unknown and im- penetrable valley of the shadows. This little book is not an autobiography, although I have included many personal incidents, interesting to me as markers on the road over which I came, but the main object is to give the men in our organization an idea of what happened in the formative years of the Company, the kind of men w ho did the work while the structure was building, the background of ability and industry which made Crane Co. what it is. Of necessity, I cannot cover the whole field as it takes all manner of men to create and operate a manufacturing and merchandising company; administrators, salesmen, technologists, mechanics, clerks, accountants, and run of mine labor; the producers and distributors; and one is of no value without the other. If it seems, in these memories, that I have confined my- self unduly to the men in the general office and shops, it is because I rubbed elbows with them, lived and worked with them, not that I do not recognize ability outside of my immediate environment. We had on the distribution side in the branches many outstanding merchants and vi Foreword organizers who were powerful factors in building the Com- pany; among them, L. P. Ordway, St. Paul, one of the best merchants who ever lived; Fred N itchy, Portland; Lew Peeples, Los Angeles; Mort Robinson, Philadelphia; and Fred Lally, New York — five outstanding men capa- ble of filling any position in the Company. Two of them have passed on; the others have retired from active busi- ness. Crane Co. has been fortunate, over the years, in hav- ing an organization exceptionally high class and high minded. If it strikes the reader that I have put down some very trivial things, please remember that life is made up of small happenings and not many large ones, and many minor incidents linger in memory after the important ones are forgotten. You may not remember how many fish you caught three years ago, but you have a distinct recollection of a member of your party in a row boat, growling and swearing to himself over a snarled line, or the day when some one slid into the water off a smooth rock and sat in the shallows looking perplexed and sur- prised. I remember, over forty years ago, a fat man with a white vest standing on the deck of Fred Morgan's yacht "Pathfinder", the white vest very prominent over his fat tummy; a small boy on the dock yelled, "Hey! you, take in your Spinaker." Did you ever see a Spinaker belly out before the wind? If you have, you know how "pat" that was. John B. Berryman Chicago, 1943 CONTENTS FIRST PERIOD I UNDER RICHARD T. CRANE Page I SECOND PERIOD : CHARLES R. CRANE, PRESIDENT Page 45 THIRD PERIOD : R. T. CRANE, JR., PRESIDENT Page 50 FOURTH PERIOD : JOHN B. BERRYMAN, PRESIDENT Page 73 FIFTH PERIOD ! CHAS. B. NOLTE, PRESIDENT Page 77 SIXTH PERIOD : JOHN H. COLLIER, PRESIDENT Page 80 vu Richard T. Crane FOUNDER AND PRESIDENT UNTIL I9I I FIRST PERIOD UNDER RICHARD T. CRANE 1895-igii o N February ist, 1895, 1 left the more or less elegant apartment in the old Tremont House for which I had agreed to pay $ i .00, or perhaps it was $1 .50 per day, and walked a little less than a mile to 10 N. Jefferson Street. To me, it was something of an adventure. I had been en- gaged to head a newly created department to handle high pressure piping, valves, and such accessories as would naturally go with the job. With the ordinary run of fit- tings, valves, pipe, heating and plumbing supplies, which make up the inventory of a jobbing house, I was familiar. But high pressure power house piping was practically un- known in the Minneapolis and St. Paul market from which I came, and there was just a shadow of doubt in my mind whether I could make good. However, youth is always buoyed up with what a poet called, the "Divine Afflatus of Hope," and I entered the dingy hall of 10 North with- out any particular mental worry. I had known Joim Murphy, the sales manager, for several years; had bought supplies from him when I was with Rugg Fuller & Co., and having managed a branch house, and so was a part I 2 An Old Man Looks Back of the organization, I had no feeUng of being a stranger, but rather that I was coming home to what I hoped would be my last job. Reporting upstairs to John Murphy, I was introduced to A. M. Gilbert, vice-president; A. F. Gartz, treasurer; Frank Mulcahy, purchasing agent; A. D. MacGill, cost accountant; Frank Winne, railroad sales; E. H. Raymond and Billy Wentworth. John Mueller, manager of branches, I knew already, as I had been under his unpleasant direction in the Minneapolis branch. Mr. Crane had not yet come in, but I was introduced to him later in the morning. The "Old Man" as everybody called Mr. Crane — a term of respect and regard none of his successors fell heir to — ^was a large handsome man of dominating personality. He dressed well, the only incongruous feature being high boots tucked inside his trousers, a relic of early days in Chicago. What struck you most was his piercing eyes, the terror of evil doers. I passed inspection and was glad to get it over. I was assigned a room on the first floor to the right of the main entrance. The city sales office was opposite, with the sales counter a little further down. Beyond the counter were stock bins. These offices had glass partitions so that you could see and be seen. It is possible to imagine a better office than the engi- neering department then had. We were directly under the brass finishing shop and at frequent intervals some- body would dump a barrel full of castings on the floor above and bring down a cloud of dust which had been Under Richard T. Crane 3 accumulating since 1865. There was constant traffic through the entrance hall and a lot of noise. We became accustomed to dirt and noise after a while and paid no attention to it. The assistant assigned me was a bright fellow named Harvey W'illard who was intelligent and active, but a bit careless at times. The city desk was held down by Billy Webster, who left shortly after to enter business for himself, with, I am sorry to say, an unfortunate result. He was backed up by May- nard Miller, a star salesman, and three or four others not so good. Looking back at the lot, I should say that, except Miller, none of them could make the grade today. The city counter was in charge of fat George Seeley, a Civil War veteran, with the able assistance of thin Jim Mul- heran. In that early day the plumbers and steamfitters called for their goods far more than now, and in the morning there would be a line of contractors' wagons waiting for supplies. Leading from the city sales office to the upper offices was a narrow stairway used by everybody, although there was a second entrance from Randolph Street which was usually closed. At a desk near the Jefferson Street entrance stood Wm. Twohig, an old employee, whose job it was to record in a large book the time the employees entered in the morning. Who checked the record is uncertain, prob- ably A. F. Gartz. At that time the office hours were from 8:00 A.M. to 6:00 P.M., with one hour for lunch, and if it were necessary for any one to work over time, that was 4 An Old Man Looks Back just his bad luck. We had not then heard of a 40-hour week, or time and a half, or social security, or any other kind of security. When the "Old Man" drove up to 10 N. Jefferson Street, usually about 9 a.m., it was his custom to stop for a moment at the city desk, to see if anything of interest was going on and then climb the stairs to the second floor. He never came in from Randolph Street. On the second floor were two large and one small room, one for the sales and cost divisions and the others for the treasurer, credit manager, purchasing agent, cashier, bookkeepers and files. Entering the room to the left was Billy Wentworth, order clerk, who afterwards became sales manager for the Pitts- burgh Valve & Fitting Co. He broke down on that job and had to retire from business altogether. Wentworth was a nice fellow to work with and well liked. The next desk was occupied by a man imported from the outside, who formerly sold ploughs. I never found out what his duties were, but he left during the year. Next to him was John Mueller, branch house manager, who loaded the Minneapolis branch, when I was manager, with a lot of windmills we could not sell, and following him was rotund Frank Winne, head of the railroad sales. Directing Minds At the head of the office on the Randolph Street side were the directing minds — ^R. T. Crane, A, M. Gilbert, vice-president, and John Murphy, secretary and sales manager — a brilliant salesman in his own right. Near Under Richard T. Crane 5 Murphy on the right side was Eddie Raymond (after- wards vice-president), who acted for Murphy in various capacities, and next — the handsomest man in the com- pany except the "Old Man'' — ^A. D. MacGill, in charge of costs and catalogues. Assisting him was C. A. G. Way- man (afterwards vice-president), and one or two others. In the other room were Adolph F. Gartz, treasurer; Dickinson, credit manager; Harry Gilbert on statistics; Henry Fuller, chief accountant; A. F. Bennett, auditor; Frank Mulcahy, purchasing agent; bill clerks, bookkeep- ers, and the future vice-president of finance, P. T. Kelly. In the shops, all brass goods were made at 10 N. Jeffer- son Street under Jas. Hayden, superintendent; iron body valves and cast iron fittings at Judd Street under \V. W. Doolittle, superintendent; and malleable fittings across the street under J. C. Kilgore. The pipe mill on Fulton Street was under Henry Koester. The flanged fittings and heavy castings were made in a small foundry at 10 N. Jefferson under Peter Botham — a large, rugged Englishman with a heavy fist, who knew his business. To hear him tell it, Pete was more than a foundry man, he was a Don Juan. The offices of vice- president in charge of manufacturing, general superin- tendent, and general works manager were acceptably filled by Mr. Crane. Compared with the elaborate organ- ization we have to-day, the layout may be considered rather primitive, but it was a small compact body of men who worked hard and accomplished much, and neces- sarily so. 6 An Old Man Looks Back • In 1895 the country had not yet recovered from the de- pression of 1892-3 and times were hard. Competition was keen, and if corners were not cut and expenses kept to the minimum it was impossible to show a profit, and profit was one thing which the "Old Man" kept in mind. At that time "production for use and not for profit" had not been enunciated by the dreamers, who, having nothing, want to take away the fruits of efficiency and industry from those who have. Any business concern must make a profit to survive and, conducted honestly, full value is rendered and the people benefited. The strongest motive in business is anticipated profit. It inspires inventors, capitalists and industrialists, and has made this country great. Socialism is a flabby thing. What is everybody's business is nobody's business and it cannot work, because the driving force in our lives is the hope as the years go on, we can, by our own intelligence and labor, better our condition, or the condition of our descendants. In 1895 Crane Co. had the plant in Chicago and ten branches. The total sales were about $6,000,000.00, which equals, probably, $12,000,000 or $15,000,000 today, as costs and selling prices were based on common labor at 183^ to 20 cents per hour, and pig iron at about $1 i.oo per ton. A good machinist could be hired for 25 cents. Labor cost, of course, is the foundation of all costs but no accurate comparison can be made of dollar values from one period to another. The difficulty lies, not, in labor rates only, but in evaluating the advance in machinery. Under Richard T. Crane 7 tool steels, technique, and shop management. The bare labor cost today is more than four times that of 1895, but the production, per man hours, is so much greater that a direct comparison of rates gives a very erroneous result. Before going further let us see what manner of men laid the strong foundation of the company. Naturally, we start with the Founder R.T. Crane, the sun around which the inferior planets revolved. The'' Old Man'' He was contemporary with and a part of that genera- tion of active, driving, business men who made Chicago — ^Armour, Swift, Palmer, Field, and others, who, dif- fering one from another in temperament and methods, were all endowed with force, vision, and determination. In his own home, what little I saw of him there, he was a genial host; in the office, an autocrat whose word was law. The lesser lights had a good deal of latitude in the conduct of the business, so long as they did not violate any order which he might issue. Once given instructions to do anything, you did it, or got out. I recall the case of a metal buyer. When the "Old Man" went to California he left instructions that no more iron was to be bought with- out his approval. The metal market during the winter was stifTening, and the first vice-president instructed the buyer to take on additional tonnage. When Mr. Crane re- turned in the Spring, he saw the pile of iron and imme- diately called for an explanation. The buyer said the market was advancing and in his judgment it was a good 8 An Old Man Looks Back time to lay in a stock. This was a great mistake. He lost his job. In temper, Mr. Crane was inclined to be choleric. He played golf and was pestered by a severe slice which he could not overcome. To correct this fault, he designed a head for his driver and tried to explain what he wanted to Larry Pilkington, head of the pattern shop, who had never seen a golf club. On Monday morning when Mr. Crane came in from Lake Geneva, Larry placed the new head, nicely polished, on his desk and backed away. The "Old Man" took one glance at the head and yelled, "Hey! This is not what I wanted," and threw the head across the office missing Larry by a slim margin. Larry kept on going. The slice was never rectified. He had piercing eyes, which could bore through you, and a fac- ulty for immediately detecting any stalling, or equivoca- tion, and he came down on the delinquent like a ton of bricks. But straightforward frankness and clear thinking he understood, and those who met him that way got along well. The "Old Man" liked visual evidence of shop activity. If things were evidently out of place he raised "hell," but normal work in process, or piled up waiting for machin- ing, was soothing to his eyes. One spring, in anticipation of his return from California, I had the pipe shop cleaned up until it was as neat as a good housekeeper's pantry. My error. He walked around the place without comment, evidently disappointed with something. As he was going away he growled, "You don't seem to be doing any busi- Under Richa rd T. Crane g ness." I said, "On the contrary we were never so busy." He said, "Well, it does not look like it." The following Spring he had to walk over piles of pipe and weave his way between flanged fittings, which pleased him greatly. It is foolish to make the same error twice. He was brusque and hard-boiled like many others who came up the hard way, from poverty to riches, but under- neath he had a warm spot for the men in the shops. Late in life he began to distribute some of the profits in yearly gifts of five to ten per cent of an employe's earnings, and before he died he had given away $3,500,000. It might be inferred that such a stiflf disciplinarian would be unpopular; the reverse was true. The men had an extraordinary regard for him, and institutional morale was high. A. M. Gilbert This gentleman left no impress on the company. He was brought in by Mr. Crane from Fairbanks Morse & Co., under a contract. He brought with him John Muel- ler, superintendent of branches, and his son Harry. When his contract expired in 1896, the three went out together. Mr. Gilbert had a cold and austere temperament and was as popular as a bull at a picnic. John Murphy Mr. Murphy had an Irish father and an English mother. He had some of the steadiness of the English and the charm and bon hommie which seems inherent in many I o An Old Man Looks Back of the Irish. He was a brilHant salesman and had as many friends in the trade as Boots Little had later. He was per- haps not a detail organizer, but as far as that goes he had not much opportunity with the "Old Man" doing what he thought was necessary along that line, but he did build up the sales, and in a period of severe competition man- aged to turn in a profit. Among the men in the office he stood ace high. A. F. Bennett A. F. Bennett was general auditor, later succeeding John Murphy as secretary and sales manager. He was a big man, inclined to be austere. He was an accountant and a very good one. The accounting system in Chicago and branches was developed by him and operated suc- cessfully for many years. However, as a sales manager, Bennett was out of his element. He had no liking for the job, and the general sales development had to get along as best it could while he gave most of his time to estab- lishing and manning some 25 branch houses. He lacked the approachability and aflfability of his predecessor, but when you knew him you found a man of solid character. He did much for the company. A. D. MacGill In 1 895 Mr. MacGill was a solid and rather stolid Scots- man of some 50 years. He also had come up the hard way. He was in a Glasgow cotton mill when about 10 years old, so his early education was not extensive, but he had Under RicharclT. Crane 1 1 managed to acquire a good deal of "book learning" in after years. His job in 1895 was the compilation of costs on a system laid down by Mr. Crane. Our modern cost accountants lift an eyebrow at the system, but Hke a Model T Ford car, it worked. "Mac" was a fine character with a definite sense of humor, and was popular. He was convinced that Mr. Crane was the Alpha and Omega of all wisdom, but there was a limit to what he would stand. One day Mr. Crane had been riding him too hard and "Mac" wrote out his resignation and put it on the "Old Man's" desk. Mr. Crane read it and called him over. "What in the devil is this, Mac? You can't resign, damn it, you are going to die here." A great joy filled the Scotsman's heart, for re- signing was the last thing he really wanted. He was elected treasurer in 1905; 2nd vice-president in 19 14; and vice- president in charge of finance in 191 9. He died in 1925. He was not enthusiastic about such a new fangled con- traption as an automobile and especially disliked the gas- oline cars, but for the pleasure of his wife he bought an electric brougham which had the advantage of not being able to go very far, or very fast. One morning when he dropped in for a chat he said, "I was driving up Sheridan Road yesterday and there was a lot of trafiic. The daft loons in their gas cars kept honking at me and whuzzing by about 50 miles per hour, Mrs. MacGill was talking her head off, as usual, and between keeping one eye on the road, the other on the cars going by, and trying to hear what she was saying, I got quite nairvous and finally 1 1 2 An Old Man Looks Back said 'Wumman, stop yer clackin'. This is no time for con- versation!' " There was a hidden side to his character. Remember- ing his joyless childhood, he wanted his son Bob to have advantages denied to him, and especially he wanted him financially independent of a job. Labor in his eyes was necessary and proper, but the labor should be voluntary and not forced by necessity. This condition to his mind made for a free man. One day he said to me, "In my long life I have saved a little money — quite a bit of money — which will go to Bob (his son, manager at Indianapolis) when I die. All my life I have been a white slave and worn a slave's collar, but, thank God, Bob will be a free man." Shortly after, Bob married a Jewess, an estimable young lady, no doubt, but "Mac" was heart broken. It seemed a terrible thing to an old, hard shell, Scotch Presbyterian. In due time Bob inherited the money which his father had laid up, dollar upon dollar, through thrift and self sacrifice, but he did not live long to enjoy it and Mac's savings passed into what he would have considered alien channels. There is a moral in this somewhere. Charles R. Crane This estimable and cultured gentleman had, I was in- formed, an active part in the company affairs in previous years, but in 1895 he must have been away on some of his many visits to foreign points. Under Richard T. Crane 3 R. T. Crane, Jr. In ilic latter part of 1895, or early in 189G, ihc Junior came in, just out of Yale. He held the city desk for about a year, and considering that he knew nothing about busi- ness did quite well. Until his father's death, he was w ilh us now and then, but never active. Wm. W. Doolittle As Mr. Crane w as the general manager of all depart- ments, no one man had been developed to take general charge, but in Bill Doolittle, superintendent of Dept. 2 (iron valve and fitting department), Mr. Crane had an outstanding man of great force, inventive mind and me- chanical ability. Of all the superintendents, he was the only one who would stand up and give the "Old Man" as good as he got, and enjoy it. Bill invented the system of continuous moulding which we now use. The system then was to make moulds until two or three o'clock in the afternoon, stack them all over the floor, melt the iron and pour them. They were still doing this in the malleable shop for ten years afterwards. Under the Doolittle system, the moulders worked all day. The iron came down at 7:00 a.m. and the moulds were poured continuously; it was a definite advance in method. All production men expect that in any new way of do- ing things, bugs w ill develop and bugs did. Doolittle and Gene Smith, the foundry foreman, were worried but not 1 4 An Old Man Looks Back discouraged. However, in the eyes of the cost depart- ment, the scheme was a failure because the cost of the product was not lowered, but increased. Mr. MacGill reported this to the "Old Man" in California, and he sent back orders to throw the contraption out. Bill paid no attention to the order and when Mr. Crane returned the system was working so well and profitably, that in- stead of getting fired, as expected, he was commended. To Bill's credit, among many others, stand the mould- ing system, the cupola charging machine, the swiper, the multiple spindle tapping machine, and the automa- tic nipple machines. Bill is now over 90, but hale and hearty and enjoying life in Pasadena. Engineering Department Gets Started For the first year business was very slow in the newly established engineering and specialty department. We had to do a lot of spade work in developing possible sources of business. The new line of high pressure gate valves, 6E, 7E, 9E, which we were to market, was not ready and the specialties, so-called, were Crane's cement (which John Murphy called "Berry's Butter"), pop valves and No. 7 union bonnet brass valves just put on the market. We were busy, but not getting anywhere very fast and I was beginning to wonder whether the powers upstairs were satisfied when I got a break. A jobber in Terre Haute, whom we afterwards bought out, sent in a large and very attractive list of staple material required for an Under Richard T. Crane 1 5 addition to a local distillery. Business was very slow and that possible order looked like an angle worm to a hun- gry bass. Later on Herman Prox, the jobber, advised us that the head of the distillery would not buy Crane product at any price and he was out of it. I suppose John Murphy must have been out of town for the letter came to A. M. Gilbert. He sent for me and in his normal, glacial epoch manner, handed me the letter from Prox, and a list of material priced. He said, "Read the letter." I did. "Now I want you to be in Terre Haute on Monday and bring back the order." "I will do my best," I said, "but may fail," "That," said A. M., looking at me with the genial eye of a frozen fish, "is up to you." It had a sinister sound. I look back on the week I spent in Terre Haute with much satisfaction. It appeared that the head of the dis- tillery had had a run in at some time with our Omaha branch and he was still spitting fire when Crane was mentioned. We had an interesting week, but his engineer lined up on my side and on Saturday night I took the train to Chicago with the signed order. Monday morning I handed the order to A. M. and thought that I detected something like a faint smile. It was probably an illusion. He said, "Very good. Leave it with me." Incidentally, the order would run about $20-25,000 today. Not a big thing in these times, but it loomed large then. This lucky incident benefited my personal future considerably. The next year the engineering department did much better. We took on quite a little fabricated work, flanged 1 6 An Old Man Looks Back fittings, large iron valves, and made a small dent in the pop valve market. Mr. Crane asked me one day why the pops did not move better and I told him we were usually about 20 to 25 per cent high. He said to cut the price in two, which was done, although Mr. MacGill objected bitterly.. It had some effect and later on we were able to get prices on a more profitable basis. In this year fate handed us our toughest assignment. We went into the water works field with a new hydrant and wedge pattern gate valves, in face of the fact that nearly every water works engineer favored the double disc type. It was hard sledding. We attended all the water works lettings within a reasonable distance from Chicago. Tom Tigan took some and I took in the others. Of the smaller jobs, about one in four was honest and we got them, but after spreading the expense of those we lost against those gained, it was an unprofitable operation. In that day, this was a field in which a company operat- ing under Mr. Crane's ideas had no business whatever. In the majority of the lettings, some one of the opposi- tion managed to fix one or more councilmen. One repre- sentative of a Detroit concern carried with him a roll of bills, which, to use an old saying, would choke a cow. His company blew up after a while, however. One particular incident sticks in my memory. A muni- cipality in the suburbs of Chicago was in the market for hydrants and valves to the amount of $10,000 (about $20,000 today). I went out there and met the "boys" and had dinner at the house of the man who seemed to be Under Richa rd T. Crane 1 7 most influential. He made no proposition then, but asked me to meet him at the Grace Hotel at 2:00 o'clock the next day. I had an idea then that all was not well for Crane Co. His proposition was that I pay him Si 000 in cash, which he would place in the proper hands, and the Council would accept the Crane bid. As far as I was concerned there was nothing doing, but I knew where he could catch the fish and so did he. At the Council meeting that night the order went to the Detroit Company and my competing friend with the large bank roll took the whole Council to Chicago for a round of pleasure, at his company's expense. Later on I told Mr. Crane of our troubles and experi- ences and we retired from the field. McKinley Presidential Campaign Some Old Timer may remember the hot political cam- paign of 1896, when \\m. Jennings Bryan, the golden tongued orator of Nebraska, was running for President against \Vm. McKinley. The issue was the free coinage of silver at a ratio of 16 ounces of silver to i ounce gold, in place of a single gold standard. The Democrats were for free silver, or anything else which would keep them in power, and the Republicans for sound money, or per- haps anything else, which would put them in the seats of the mighty. Mr. Bryan made his elaborate speech at the Democratic Convention, against the gold standard, in which he refused to place a crown of thorns on the brow of labor, or crucify mankind on a cross of gold, and Coin 1 8 An Old Man Looks Back Harvey flooded the country with his pamphlets on the beauty of the ratio of 1 6 to i. The business men of the country were solidly behind sound money and Mr. Crane was no exception. The poli- tical leaders in Chicago decided upon a great parade to demonstrate to the voters the strength of the feeling against free silver. I think it was pulled off in September and it was a real parade. The "Old Man" passed out the word that all of his hired hands would be expected to march. They did. Of course, he had some hundreds, or maybe thousands, of Poles who could not read nor write the English language and had not the foggiest idea of what it was all about. We formed ranks at the corner of Lake and Jefferson Streets and marched up Lake Street to Michigan Avenue and South to the Congress Hotel, close to two miles, in company with many thousands from other plants. It was my unhappy lot to be chosen for a mounted Marshall. I had not been on the deck of a horse for so many years that I had forgotten how to ride. My station was directly behind one of the bands and whenever they tooted and the drums rolled, my steed danced all over the place, giving me a few anxious moments. Behind the reviewing stand on Michigan they had some artillery firing twenty-one guns. At each discharge, my plug went up about three feet and I went up with him and sat down hard — twenty-one bumps, and each one I expected to be my last. Watta day! Chicago streets were then paved with cobble stones, diabolical things to walk on, and the Under Rich a rd T. Crane 1 9 men on foot, especially tliosc from the office, were as un- happy as I was. From my reserved seat on the horse I saw many of them fall out about Monroe Street and make for a haven called "Joe's" where they could rest their feet. The next day the whole office was foot sore. I was sore, too, but my feet were in i^ood shape. Mr. McKinlcy was elected. / Call on Sargent & Lundy I think it was in this year, 1896, that I went over town to see Fred Sargent, head of Sargent & Lundy, consul- ting engineers for the Commonwealth Edison Co., with the idea of getting our new high pressure gates into his specifications. Sargent, who later became one of our strong supporters, told me to go out and get a reputation before talking to him. I said, "You may be right, but re- member the case of the skeptic who went to church to scoff and remained to pray." This tickled Fred and he said, "Maybe I'll pray in your church some day, when you get a reputation." Not long after this a little incident occurred which enabled me to rib Sargent about valves with a reputa- tion. The Commonwealth Edison Company had a tem- peramental chief engineer, C. G. Y. King, who did a little business with us. He came in one morning and started in by damning Crane valves and all connected with them. An 8-inch high pressure gate at the Washing- ton Street power house would not hold solidified mud. 20 An Old Man Looks Back Was it a Crane valve? Of course it was. We could not recall a sale of a high pressure gate for that job; in fact, we were just getting into production. However, as alpha- betical King was a definite prospect, Harvey Willard, King and myself went over to the plant. The valve was high overhead, reached by a steel runway. Harvey climbed up and looked at the wheel, the only visible spot, as the rest of the valve was covered with asbestos. Harvey called for a knife and I tossed him mine. He cut into the covering and brought Chapman's trade mark to light. King would not believe it until he had climbed up and satisfied himself. The old boy had been shown up and he just about exploded. The outcome was the sale of a high pressure gate, the first to the Commonwealth Edison Co. Our facilities for power plant work were, at that time, very inadequate and primitive. Peter Botham made the castings and the machining was done in a small room next the foundry on Star feed lathes. The work was good enough, but the operation extremely slow. In fact, all shop operations were slow, because high speed steels had not yet been made and the cutting time was determined by the ability of the old carbon steels to stand up. The pattern shop was under another Englishman, Larry Pilkington. Larry was ingenious and a good man for the job. We had not yet reached the age of standardi- zation and nearly every job was special. Each engineer had his own ideas about flanges and drilling and when they were in the mood they would send drawings of ex- traordinary special fittings. It was all right, because we Under Richard T. Crane 2 1 had no standards ourselves and really operated a job shop. Larry was quite a genius at coopering up fitting patterns from odds and ends, which saved money at a time when competition was murderous and we had to cut corners. The large pipe was cut and threaded in Dept. 2 at Judd Street, which necessitated frequent trips between the office and the shop. There was no transportation, so we walked the two miles there and back. Infrequently we needed a pipe bend, which I think was made by Tom Bethune at the Crane elevator shop. The walk to Judd Street did not bother us much; in fact, it was a relief from the dirt of the office and noise of the pop valves being tested a short step away, just beyond the doctor's office, by the way. What a spot for a doctor! It may be well to note at this point that A. M. Gilbert's contract expired and he retired, taking with him Harry Gilbert and John Mueller, manager of branches. If any one grieved over this, he bore it in silence. A. M. returned to Fairbanks Morse; Harry Gilbert entered the Buda Foundry Co., and John Mueller made a connection in Baltimore. Mueller's place was filled by bringing in Al Fowles from Rundle Spence Co., Milwaukee. Al was a good scout per- sonally, but someway or other, he did not make a ten strike with the "Old Man," or perhaps the "Old Man" did not make a hit with him. Anyway, his term in office was limited. After a time Wm. Donovan was brought in. I think his line was manufacturing bolts. He was a large 22 An Old Man Looks Back man with impressive personality and genial manner. Also he was a good business man when he felt like working at it. The engineering department was indebted to him for contacting an English engineer who was building a large power plant in Dublin, if my memory is correct. I went to New York with Donovan, and we closed for the whole job and shipped the material to Dublin ready for erection. His term in ofBce was longer than Fowles', but after a while he bowed himself out. A modest, but much appreciated windfall, dropped into my lap in 1896 or 1897. John Murphy wanted a telegraph code and asked me if I could compile one after hours for a little extra money. It was an easy job and the extra money was welcome. Pocket Size Catalogue In 1898 I noticed that no city salesman carried a catalogue because it was too large and heavy. The brief case for catalogues, lunches and perhaps a small beer, was not current then. Now, a catalogue is, or should be, as necessary to a salesman as a palette to a painter, or a drill to a dentist. The thought struck me that if we could get out a miniature edition of the large catalogue at a low price, every salesman would put one in his pocket and we could also distribute them freely to friend or foe, our own people, our jobber customers and jobbers who stocked opposition goods. The latter were included, be- cause, if an opposition salesman pulls out a Crane cata- logue, he was automatically advertising us. Under Richard T. Crane 23 Dan Boyle, a printer's salesman, who handled a part of our staple work, undertook to put the job through. He had the large book photographed down, made zinc etch- ings, printed and bound the book, all for 10 cents a copy. John Murphy liked the idea and it worked out so well that we distributed 100,000 copies — probably ten times as many copies as any fitting catalogue ever had. The jobbers' salesmen liked the book. One concern ordered 75; one 50, and others in proportion. Times and methods have changed and we cannot do it now, perhaps, but it was good advertising. For the remainder of the term ending in 1900 the en- gineering department made definite, if somewhat slow progress. The high pressure valves were meeting with a good reception and we took in enough fabricated work to keep our rather limited facilities quite well employed. It is a funny thing, but I cannot recall who took the city desk, just across the hall, after R. T. Junior threw up the job, unless it was Eddie Raymond. Upstairs the develop- ment of the Branch House system was progressing. In 1897, Sioux City; in 1898, Oakland; in 1899, Cincinnati; and in 1899, St. Louis. I9OO-I905 About the turn of the century, Mr. Crane sold the Crane Elevator Co. to the Otis Elevator Co. This left vacant the machine shop and foundry at 219 South Jef- ferson Street. As power plant piping and other lines 24 A^ Old Man Looks Back assigned to the engineering department, had developed and outgrown our faciUties, Mr. Crane decided to move the pipe cutting and bending, the flanged fittings and large pop valves into the vacant buildings as a unit, to be called Dept. i. Charley Olson (later general superin- tendent) was made superintendent, with Sam Richard- son as assistant. Peter Botham and Pete Larson were given charge of the foundry, and Jim Smith put in charge of the pipe shop. The engineering department was moved from the general office about 1901 and installed in a large office on the second floor of the main building. At first we rattled around a bit in a lot of vacant floor space, but as we added steam traps, separators, and vari- ous items, we soon filled up. As an aside, I will note here an incident which brought in a lot of grist to our mill. Frank Howell, who had been a salesman for Crane Ele- vator Co., was sent by John Murphy on an exploring ex- pedition to Africa to see what business, if any, could be had there. Frank did not sell anything, but he made contact with H. Ainsworth, a dealer in Johannesburg. Later on Mr. Ainsworth turned up in Chicago, and John Murphy made a deal with him. This resulted in large orders for mine columns, flanged fittings and miscellaneous mate- rial for the Johannesburg mines. There was quite a demand for steam and oil separators at that time and it looked like a good item to add to our power house line. We wanted something that was not an exact copy of the separators on the market, and I had an idea that better scrubbing action could be had by put- Under Richard T. Crane 25 ting the baffle plate fins on an angle instead of vertical. Consulting Sam Richardson, who had succeeded Charley Olson as superintendent, we decided to build a separator with removable baffle plates — one with vertical fins and one with angular fins, and check performance. In this separator we put windows of heavy glass to see what happened inside. The turbulence and dehydrating action in the separator was extremely interesting. As the theory of inclined fins seemed to be born out by the ex- periment, I applied for and received a patent on the machine. Pipe Bend Studies Among our other activities in Dept. i, we started in a crude way to study the expansion of pipe and bends. The elaborate tables on bends, now in our printed matter, grew out of that early work. This came about through some trouble at the W'estern Electric Co. Hawthorne plant. The piping contractor had placed in service a very long line of pipe in which, as he thought, the expansion had been fully compensated. He came in one day and in- sisted that we were making rotten flanges because he had a place on the line where the flanges broke as fast as they could put them on. We gave him an extra-heavy flange to try. It did not stand up. Then we told him to send in to us the piece of pipe bearing the cracked flange and we would put a flange on which would hold. This was done. A few days later we called him to see if the flange held. He said, "Hell, yes, but the valve next to it was destroyed." 26 An Old Man Looks Back The pursuit of knowledge went on in 1 905 as it does today, and while we never expect to know all we should about the behavior of metals under stress, yet we have compiled a lot of informative data not to be found in the text books, and the investigations go on constantly. In the engineering department one of our important lines was cast iron flanged fittings. We did not know, how- ever, the strength of these fittings compared with tubing and proceeded to find out. Over a period of four years, we burst a large number of tees and ells from 6 to 24-inch in which the tensile strength of the metal was definitely known. From these tests we deduced rules for our own use which were reasonably accurate. Rule i — ^Thickness and tensile strength of body metal being known, to determine the bursting point: Divide the thickness of the wall by the inside diameter and multiply by 65 per cent of the tensile strength of the metal up to 1 2-inch and 60 per cent on larger sizes. Rule 2 — ^Bursting point being given, to determine the thickness of metal: Multiply the bursting point by the inside diam- eter and divide by 65 or 60 per cent of the ten- sile strength of the metal. Checking rule No. i against a 12-inch extra heavy flanged tee, having metal i inch thick, the tests showed an average bursting point of 1,380 p.s.i., and a minimum of 1,100 p.s.i. The rule gives 1,238 p.s.i., which is as close as may be expected. Under Richard T. Crane 27 I mention this simply to show that in our work we took nothing for granted that could be proved, and our de- signing department still carries on the good work. These reminiscences are but jottings from memory and are not in many cases in chronological order, so let us digress for a moment and cast an eye on Barney Little, foreman of the core room, Dept. i. Barney was but a humble worker in his Lord's Vineyard and does not rate posthumous fame, were it not that in 1903 he guided the stumbling feet of a young man just out of college, destined to be a future president, to a scoop shovel and pile of core sand. To paraphrase Longfellow's poem about the brown- eyed maiden, the young man stood " * * *, with reluctant feet Where sweat and sand and shovel meet." What Mr. Collier knows about sand and shovels he learned from Barney. And give a nod towards Nordburg, the engineer, who dragged the same future great out at 6:30 a.m. to bull a temperamental engine off center, while he turned on steam. I should like to think Mr. Collier got extra pay for this, but anyway he was drawing down $1.25 per day, quite sufficient for his simple needs. Experiments in High Pressure Piping As we developed a market for high pressure piping, it became apparent that much future business would re- quire steel fittings and valves instead of the traditional cast iron. Chas. R. Crane came in contact with a German 28 An Old Man Looks Back named Zenzes who held patents on a small converter. He sent Bregowsky, our chief metallurgist, to Germany, to investigate. Bregowsky brought Zenzes back with him, and from his drawings we built the converter. I remember it was quite a red letter day when the first blow was made and the initial fitting cast. After the men got the hang of the thing the converter turned out a good tough steel, which could not be held to the exacting limits now de- manded, but we never had a failure in service. Later on this method of making steel was abandoned in favor of the electric furnaces we are now using. An incident came up about this time which had a far reaching effect. Our Omaha branch reported that the Electric Light Co. in that city was having trouble with their piping and asked us to send some one to suggest a remedy. I took the train that night, and in company with one of our local men, called on the chief engineer. It de- veloped that they were carrying a pressure of 175-200 pounds with a high degree of superheat. The engineer rolled up some paper into a cone and placing the end on the main lead asked me to look through. The piping showed a dull red. All fittings and valves in the station were cast iron, not, however, made by Crane Co. and they were going to pieces rapidly. The engineer was worried, naturally, as he had to keep going with a plant obviously unsafe. Two fittings which had been taken out were sent to Chicago for analysis. The laboratory made tests and found that the tensile strength of the metal was about 13,000 p.s.i. Under Richa rd T. Crane 29 Now it was plain that this iiiclal, wliicli analyzed quite normal in carbon, silicon, etc., must have had an original strength of 20 to 22,000 pounds, and the difference had to be laid to the effect of heat. At that time we had no data on the effect of heal on metals and there was quite an argument about it. The upshot of this particular investigation was a recom- mendation to the Electric Co. to replace the cast iron with steel and they sent the order. Following the Omaha experience, we had additional food for thought when the Commonwealth Edison Co. sent in a 14-inch high pressure cast iron gate valve, series E, for repairs. The valve had been on the lead to one of the turbines at Fisk Street, subjected to superheated steam, and both disc and body rings were loose. On the face of it, it looked like another Omaha case with ex- panded metal and reduction in strength. The valve was measured and found to be yi or ^^^-inch longer than it should be. Now, our boys did not go around with microm- eter instruments in those days, but they never made an error of >^-inch in 22>^ inches. I reported the matter to the engineer of the Commonwealth Edison Co. and sug- gested that a steel valve be substituted as the iron valve was dangerous. We received the order and eventually re- placed the remaining iron gates with steel. It struck ever^'body after these experiences that we had better find out something about the effect of high heat on cast iron. Did cast iron "grow" and, with permanent ex- pansion, lose strength? Our first effort was crude and not 30 An Old Man Looks Back scientific, but it told us something. We took some cast iron flanges and turned them to a definite diameter, measuring them very carefully. These we placed in the large core ovens at Dept. 2 where the heat varied some- what, but was in the vicinity of 400 degrees. At the end of 30 days the flanges were taken out and measured. There was a definite increase in diameter, and test bars cut from them indicated a decrease in strength. Our metallurgical department became very much in- terested and hunted through the literature on the subject without much success. In fact, very little information was available so Ivan Bregowsky and L. W. Spring began a series of experiments to determine the effect of heat on metals. It was ground work and laid the foundation for the many investigations of other metallurgists on the same subject. In 191 2, Bregowsky and Spring presented a paper on the subject, before a scientific society and in 19 13 we wrote it up in the Valve World. Since that time our metallurgists have accumulated an enormous amount of information on the eflfect of heat on all metals, ferrous and non-ferrous, and also the effect of extreme cold, perhaps the most extensive file in the coun- try. The work has been tremendously valuable to engi- neers and to the company. It may be truly said, that while many other investiga- tors had made tests to determine the eflfect of heat on some metals, principally bronzes, none had done so ac- cording to a definite plan. The work had been done more or less at random and the range was limited. As this in- Under Richard T. Crane 3 1 vestigation has been such an important contribution to the science of metallurgy, it is interesting to note how Ivan Bregowsky and L. W. Spring went about the job. The apparatus and method had to be easily and quickly applied, for a busy commercial laboratory with a daily routine of physical and analytical tests has very little time for research, so they adopted a simple method, not absolutely correct, but practically so. A test bar was cast of the metal to be investigated, 16 inches long with 2 inches in the middle turned down to an exact size. The ends were left rough to take the grips of the testing machine. The apparatus consisted of a 6- inch sleeve of sheet iron, wrapped with a layer of j/^e-inch sheet asbestos for insulation and then wound 16 turns to the inch with one layer of nickel resistance wire about ,028 diameter. An outside layer of sheet asbestos, shrunk on, kept the wire from excessive corrosion at the temper- atures employed. The top of the test bar was drilled out along the central axis to within half an inch of the turned part. In testing, the coil was slipped over the smaller end of the bar down to the shoulder, which brought the turned, smaller part of the bar, where fracture was to occur, exactly midway between the ends of the coil. The ends of the bar were gripped in the jaws of the testing machine, the bar being so placed that the coil was equidistant from the upper and lower jaws and a iio-v current turned on until the resistance wire showed the color desired through a piece of mica placed in the outer layer of asbestos. In the hole in the top end of the bar was 32 An Old Man Looks Back inserted a thermometer or pyrometer couple, which indi- cated the temperature at any time on the inside of the bar, where the fracture was forced to occur. The investigators had an idea that electrical induction might have an effect on the metals tested and ran a num- ber of experimental tests with the current on but no heat. The effect of induction proved negligible. Now let us see what bearing these tests have on the valves and fittings we manufacture, which have to be made to meet all man- ner of conditions of heat, cold and pressure. Example I — Crane Hard Metal Average tensile strength at 70° 33-735 lb. Average tensile strength at 600° 23.150 lb. Average tensile strength at 950° 10.825 lt>. Obviously, a metal not suitable for very high tem- perature. Example II — Aluminum Bronze Average tensile strength at 70° 35-205 lb. Average tensile strength at 750° 6.425 lb. Also not suitable for high temperatures. Example III — Crane Regular Steam Metal Average tensile strength at 70° 31.780 lb. Average tensile strength at 500° 20.260 lb. Average tensile strength at 750"^ 10.280 lb. Average tensile strength at 950° 6.650 lb. Example IV — Crane Manganese Bronze Average tensile strength at 70° 56.250 lb. Average tensile strength at 500° 37.200 lb. Average tensile strength at 750° 7-35© lb. Average tensile strength at 950° 2.365 lb. A very strong bronze at 70° but very poor at 750°. Under Richard T. Crane 33 Example V — Soft Cast Iron Average tensile strength at 70° 22.060 lb. Average tensile strength at 600° 21.240 lb. Average tensile strength at 860° 21.590 lb. Average tensile strength at 1000* ig.820 lb. Up to 1 ,000° cast iron holds up well, for a time but de- teriorates under long exposure. Example VI — Ferrosteel Average tensile strength at 70° 32.692 lb. Average tensile strength at 1000° 27.310 lb. This metal also holds well up to i ,000°. Example VII — Cast Carbon Steel Average tensile strength at 70° 73.325 lb. Average tensile strength at 600° 67.366 lb. Average tensile strength at 720° 58.713 lb. Average tensile strength at 750° 41.388 lb. Average tensile strength at 1000° 17.568 lb. We learn from this that carbon steel up to 750° is a strong metal, but for higher temperatures, an alloy steel is indicated. From the hundreds of tests made by our laboratory over the years we are able to determine what metal is suitable for any possible purpose, from pressures running into thousands of pounds per square inch, to temperatures from minus 60° to plus 2,000°. Without such data en- gineers would be all at sea. These two metallurgical chemists were highly regarded in their profession. L. \V. Spring graduated in this coun- try and reached us via the Illinois Steel Co. Ivan Bre- gowsky studied in Russia, and, while a student at the University, was suspected by the Czar's men of subver- sive activities. He was arrested and sent to Siberia and 34 ^^ Old Man Looks Back for the next five years cooled his heels near the Arctic Circle, where a nice winter day had a temperature of 60° below zero. Many opportunities for observation came up in the engineering department which sometimes turned to good account. One day we received a complaint from the C.&N.W.Ry. that a high pressure valve in their shop line would not hold up. I went out there and found one of our high pressure (8oo-lb. test) brass valves on a water line connected to a hydraulic press, which carried the usual accumulator. The pressure was only 300 or 400 p.s.i. nor- mally, but after watching the gauge I noted that when the accumulator dropped the pressure ran up to 2000 p.s.i. It was this water ram that was knocking a hole in the valves they were using. Brass is a good metal, but continued shocks will belly out the walls of a valve and eventually thin the metal to the breaking point. We gave the railroad another valve of different type and it may be there yet. This experience led us to decline an opportunity to bid on a water line for the Standard Steel Car Co., Hammond, Ind. The speci- fications called for cast iron throughout and not very heavy at that. We told the engineer in charge that the line would blow up in time and we would rather not be responsible. He said that a Pittsburgh company of much experience had already made them a proposition and if we did not want the business it was all right with him. About six months later the line was out of commission and I think we replaced the cast iron material with steel. Under Richard T. Crane 35 More Branches Opened So far I have been rambling along about the engineer- ing department — perhaps, because it was my baby and I have a vivid recollection of what took place in that small comer of a large business, but the other departments were not idle. Crane Co. was growing. Fifteen branch houses were opened; in 1901, Bakersfield (since closed); 1902, Seattle and Salt Lake; 1903, Chanute (since closed); 1903, Watertown (since closed); 1904, Independence (since closed); 1904, Dallas, Baltimore, Fargo, Spokane, Memphis; 1905, Bartlesville (since closed); Butte (since closed); Savannah, Oklahoma City and Birmingham. Some of these were small subsidiary warehouses of no importance. In December, 1902, John Murphy left, ostensibly to take a trip around the world on a year's furlough. How- ever, Chas. R. Crane intercepted him at London, pur- chased his stock and took his resignation. We suspected that all was not well when he left. John was the most popular man in the office and when he did not return it was a matter of general regret. He was followed by A. F. Bennett. In 1905, A. F. Gartz, treasurer, retired, and A. D. MacGill took his place. At the Annual Meeting in December 1905, I was hon- ored by being elected a director. This elevation meant neither an increase in responsibility, nor emolument, but it did indicate some degree of recognition from the "Old 36 An Old Man Looks Back Man." A roll call of the directors at that meeting covered the following: R. T. Crane, Chas. R. Crane, R. T. Crane, Jr., A. F. Bennett, A. D. MacGill, C. A. Olson {general superintendent), J. C. Kilgore {building department), J. T. Hayden {superintendent brass shop), W. W. Doolittle {ma- chine design), J. B. Berryman {engineering department). A compact Board, not given to dissension, nor idle dis- cussion. The directors met once a year to hear the president read off the estimate of profit for the year (it was an esti- mate only, as the books were not closed) , and to declare whatever dividend the president had decided upon. One meeting sticks in my memory. The president stated that the company had made so much money he was ashamed — and then he laughed. The hired hands laughed and a good time was had by all. The "Old Man" was not one who despised profit — his idea of money as an end was stated in one of his articles in the Valve World, "money is not the whole thing, but it is 75 per cent of it." During this period Bill Doolittle was moved from su- perintendent of Dept. 2 to the newly created "depart- ment of machine design" to take advantage of his mechan- ical and inventive ability. One Caldwell was brought in from the outside to take over Dept. 2. He was a very par- ticular man, strong for detail and impatient over sloppy work — ^not at all popular in the shop. His outstanding contribution to the production of valves was a thorough overhauling of shop drawings. It is a lamentable fact that these were in a chaotic state. Changes would be made in Under Richard T. Crane 3 7 the shop for various reasons and not noted on the draw- ings and, in consequence, no one could say whether the drawings represented the valve as actually made. With the aid of A. M. Houser (who is still with us), Caldwell restored order and started the system we now follow. He held his position for a few years and then moved to Bridgeport to superintend the new plant Chas. R. Crane was building. His successor was C. A. Olson from Dept. i . I think it was in Caldwell's time that a man named Prince was brought in as foundry superintendent. He had been with the Worthington Pump Co. and was unfamiliar with our line of work. Thirty days was enough for him. He told John Wrath that we did not have a foun- dry, it was a sausage factory. It is worth noting here that while the "Old Man" brought in men from the outside who were already de- veloped, such as Gilbert, Mueller, Fowles, Donovan, and Caldwell, none of them stayed, but after a comparatively short term, resigned either voluntarily or by request. The underlying organization then took over and carried on. 1905-I9II There were many changes in this period. The engineer- ing department and Dept. i were getting along quite well. Sam Richardson had succeeded Charley Olson as superintendent and turned out to be a very efTicient man on the job. We added to our line the Crane tilt traps, and until the bugs were out of it, this apparatus was a head- 38 An Old Man Looks Back ache. The valves would stick in a short time, until Sam designed the one now in use and got over that hurdle. The receptacle was originally made of pressed steel, but that was a dismal failure and we changed to cast iron. These traps had a large sale for many years and are still going. The site of the old butt weld pipe mill on Fulton Street was sold to Sears Roebuck & Co. in 1905 and the mill moved in 1906 to a large piece of property then owned by Mr. Crane, on Ogden Avenue, near i6th Street. The skelp furnaces were heated by producer gas and keeping them going added a few white hairs to Henry Koester's head. The mill was not operated very long, as in 1909 a contract was made with the National Tube Co. and the mill shut down. In a hindsight view, this was probably a mistake. Henry Koester was an efficient man and it was difficult to stump him when it came to pipe. The engi- neering department had a large time contract which re- quired a length of 20-inch o.d. 5/i6 pipe to complete. We could not get it from the mill for months. Koester said if we would get him the plate he would make the pipe. We found the plate and he turned out as smooth a piece of hammer welded pipe as any one would want and at a price closely approximating what the piece would have cost had it come from the mill. J^ew Building Program The old and obsolete building housing the malleable fitting department was showing signs of senility. The base- Under Richard T. Crane 39 ment was a forest of timbers holding up the first floor and the construction in general such that no modernization was possible. It was decided to build a modern structure at 15th Street and Canal. The design and mechanical equipment was entrusted to Bill Doolittle who, in the erection of the equipment, had the able assistance of Vic- tor Flodin, afterwards general superintendent of all Crane plants. Vic was a big man in the organization in after years and he was proud to say that he started at 30 cents per hour. This new plant was a great success. Another old time building housing the general office at 10 N. Jefferson also became a little shaky and time worn, besides being quite inadequate for the expanding business, so Mr. Crane engaged Louis Sullivan, a bril- liant but unfortunate architect, to put up an office build- ing at Canal and Judd Streets, and also a new brass shop opposite on Judd Street. This brass shop was in addition to the original shop at 10 North Jefferson Street and a new shop which had been erected on DesPlaines Street on the site of the iron foundry moved to 219 South Jef- ferson Street. At one time we had in operation three brass finishing shops and four brass foundries. Into the new offices moved the general office force and the engineering department, leaving the city sales in the old building. This broke up our happy family at 219 South Jefferson, which I regretted at the time, but became reconciled afterwards. One feature of the new office I liked was the restaurant 40 An Old Man Looks Back we installed in an old building on Judd Street next to the office. As there were no eating facilities within a radius of nearly a mile, the top men from the shops and office patronized the place nearly every day. It was a place for the interchange of gossip and information, and the close contact between the production and selling departments was very beneficial. Next to the restaurant building the company built a garage. To clear the site two old frame buildings were torn down. Believe it or not, those two dilapidated old buildings had bathrooms with enameled iron tubs, but the late occupants had used the tubs for coal bins. The Crane property on the East side of Canal Street ran from 12th Street to below 15th Street, and while we are talking about buildings let us glance for a moment at a small red brick building which jutted into the Crane property. Before this building was bought by the com- pany it was occupied by a Semitic gentleman who dealt in old rags and bottles. After the purchase, nipple ma- chinery was moved in and the young man, John Collier, previously mentioned as the guy who bulled the steam engine off center at Dept. i , was promoted and placed in charge. He was more or less humorously referred to as the head of the rag shop. In view of his present position, may we say that he rose from rags to riches? In this shop was installed the first Doolittle nipple ma- chine, an automatic machine which revolutionized the method of making close and short nipples. That machine is still in use, with a production record of many millions. Under Richard T. Crane 4 1 In the latter part of 1907 there was a panic. It was called a "Bankers' Panic," and it ran through most of 1 908. For a time, trading in Chicago and other cities as well, was done with clearing house certificates as the banks would not release cash. Crane Co., however, was an excep- tion, as James B. Forgan, president of the First National Bank, and the leading banker in the city, assured Mr. Crane that the cash would be forthcoming for his payrolls, and we paid in currency all through the depression. This brings to mind a story told to me by A. D. MacGill, then treasurer: About two weeks before the trouble came to a head, Mr. Crane who was at Lake Geneva called "Mac" on the telephone and asked him if he had any paper in the banks. "Mac" replied that one note was out for quite a sum. Mr. Crane said, "Pay it off today. We are headed for trouble and I do not want to owe any bank anything." Now "Mac" was a Scot who liked to see money coming in and hated to see it go out, and he started to remonstrate, but Mr. Crane said "Do as I tell you and do it today," and rang off. \Vhen the panic came on Crane Co. was in fine position, with no debts except the usual current accounts. / Become Assistant Secretary In 1 9 10 good fortune tapped me on the shoulder and I was appointed assistant secretary to aid A. F. Bennett. My old job went to C. S. Pitkin who, after graduating from Bill Doolittle's hard school of machine design, had worked in the engineering department for many years. 42 An Old Man Looks Back The way we got Pitkin was this: The "Old Man" was opposed to education higher than the 8th grade and the engineering department needed men who could draw and interpret drawings. I had to get them through the drafting rooms. Pitkin had had his knuckles banged up by Doolittle's ruler and was glad to change into a more civilized environment, and Doolittle was, perhaps, glad to see him go. A. F. Bennett, secretary and general manager of sales, was a first class accountant whose life had been spent among figures. In his own line he did much for the com- pany, but he was not a sales manager and, in fact, hated the job. As his assistant, I took over the details and I think aided him in a small measure. At this time he made an experiment in human nature. He selected three men, one from the engineering department (the most likely), one from the office staff and one from the country sales. These he sent out on the road. The engineering boy could not stand prosperity and went wrong with women and drink; the office man tried it for two months and then quit cold. He said that he could not sell stoves in Alaska and he was right. The third man was the smallest and least likely looking of the lot, but he made good from the start and later on became manager of a branch house. The lesson here (if there is one) is don't bet on a horse because he is good looking; the homely nag may be faster. During the summer of 1910 good old Bennett was very unhappy. The "Old Man" was putting strong pressure on him and on Harry Haldeman, then superintendent of Under Richard T. Crane 43 branches. Haldeman resigned first and Bennett cracked a little later. When he was cleaning out his desk he said, "John, I think you will be offered my job. Don't take it. Keep your present position and enjoy a peaceful life. The 'Old Man' will break your nerve as he did mine." My reaction to this was that if the job came my way I would take it and risk my nerves. Elected Secretary The next day Mr. Crane called me over by crooking the first finger of his right hand, a favorite gesture of his, and said "Berryman, have you had a vacation this year?" "No sir." "Can you stand another year?" "Yes sir." "Take Bennett's desk." That was all. Short and sweet like a donkey's trot. At the Annual Meeting I was formally elected secretary. It was no surprise. A nomina- tion by the "Old Man" was as good as a Democratic nomination in Georgia. Bennett's doleful prediction about my future unhappy lot as secretary did not come true. My relations w ith the "Old Man" were pleasant and peaceful all through the year. He gave me a little good advice now and then. Once, referring to an early article of his in the Valve World, he said "Now on organization, as I said before, there are no men 100 per cent. All have their weak spots. The thing to do is to try to keep the average as close to 100 per cent as you can. If you average 75 to 80 per cent you will do well." And at another time he said — and this was the foundation of his business philosophy — "Never 44 ^^ Old Man Looks Back spend a dollar unless you can see a dollar and ten cents coming back." The ''Old Man'' Dies In January 191 2 Mr. Crane died, thus closing the first cycle of Crane history. The period between 1905 and 1 91 2 was marked by the following rapid expansion of the Branch House system. 1 906 — Boston, Tacoma and Winnipeg. . . 1 908 — DesMoines, Wichita, Newark, Little Rock, Atlanta and Vancouver . . . 1 909 — Washington, Muskogee, Terre Haute, Muncie, Indianapolis . . . 1910 — Sacra- mento, Aberdeen . . . 1 9 1 1 — Texas City (closed) , Great Falls, Detroit, Knoxville. All this was done without issuing stock or creating a funded debt. The profits of the business, except a little drawn out by Mr. Crane and his family, were ploughed back, as they had been since the business started. There was some work involved in opening twenty houses in five years, but it was the type of work for which A. F. Bennett was well fitted. The outside work fell on the able shoulders of P. T. Kelly and his assistant, who had the job well systematized. The growth of the company during Mr. Crane's lifetime is shown by this table: Capital Surplus Sales Employees 1855 None Unknown 1865 S 200,000 Unknown 200 1875 798,200 S 982,000 1885 1,031,900 2,013,700 1895 3,282,500 6,037,200 1905 9^708,900 20,831,600 191 1 18,281,000 36,391,000 7300 Charles R. Crane PRESIDENT, 191 2-1 91 4 SECOND PERIOD CHARLES R. CRANE, PRESIDENT 1912-1914 A .T THE Annual Meeting in January 191 2, the follow- ing directors were elected: Charles R. Crane, R. T. Crane, Jr., R. T. Crane, III, A. D. MacGill, VV. W. Doo- little, J. C. Kilgore, R. W. Leatherbee, R. B. Stiles, J. B. Berryman. Chas. R. Crane became president; R. T. Crane, Jr. ist vice-president; R. T. Crane, III, 2nd vice- president; and this writer 3rd vice-president and secre- tary; A. D. MacGill, treasurer. Chas. R. Crane, the new president, had a tempera- ment quite unlike his father. He was a student, a travel- ler, an observer of world's movements, but at heart not a manufacturer or merchant. Kindly by nature, consider- ate and lovable, he lacked the force and dominating per- sonality of his predecessor. In his term of office the com- pany reached its then peak in sales, about $40,000,000. In 1 91 3, sales slipped a little to $39,000,000. The demand throughout the country was slackening and in the latter part of the year, 1914, when World War No. i was de- clared, we struck a very sharp depression. We opened branches at Ogden and Davenport in 191 2, 45 46 An Old Man Looks Back and Springfield, Mass. in 1913, but the business outlook was cloudy and did not invite expansion. We marked time. However, several very important matters had to be settled and the two brothers worked together on them. An agreement was reached with the Chicago, Burlington & Quincy Ry. for the sale of all Crane properties on Ca- nal Street between 12th and 15th Streets. The general office, brass shop and garage on Judd Street passed later to the C.M.St.P.&S.S.M.Ry., and the terminal of that road now covers the site. I recall going to the office of the C.B.&Q,. with the contracts and returning with a check for over $1,000,000 as first payment. To my unsophisti- cated eyes it looked like a whale of a lot of money. And in that primitive time it was. This forced the selection of a new site for the plant. The two brothers and myself scoured the town and had under consideration three sites. However, the Miller tract of 160 acres on Kedzie Avenue was so much better than the oth- ers that it was unanimously selected in spite of the fact that the neighborhood was sparsely settled and an ade- quate labor supply not immediately in sight. This latter defect was soon remedied when we got going. Labor goes where the work is. I was instructed by Charles R. to see Mr. Miller and buy the land. He told me that he had heard that $640,000 would get it, but not to hesitate on a little more if necessary. Mr. Miller and I spent part of a pleasant afternoon discussing the matter. Miller said he did not care whether he sold or not, but eventually we got together for $600,000 cash. A little high for the time, but Charles R . Cranes Pre side n t 47 it was a good sale Tor Miller and a gcuxl buy for Clrane Co. Following the sale of the general ollice, brass shop and garage on Judd Street to the C.M.St. P.«&:S.S.M.Ry., the Crane brothers decided to locate the general office on Michigan Avenue, and leased the40xi6o'corner of Mich- igan Ave. and 9th Street from the University of Chicago. On this leased property we erected the building which we now occupy. This building is on concrete piers extending 95 feet below the surface, to bed rock. As the excavation for the piers went down, old man trouble came up. At some time in the past a creek had run through the prop- erty. The sub-soil was full of water and quicksand and w hen the water was pumped out the Y.W.C.A. next door began to sink, the roadway on our side of the street dropped 12 inches or so and stones began to fall off the church on 9th Street and Wabash Avenue. On the foun- dation of the Young Woman's building was carved *T was a stranger and ye took me in." The building settled enough to obliterate the "ye took me in" and left visible "I was a stranger." Probably the Young Women did not like to have their slogan eliminated as they sold the build- ing some years later. The builders put jack screws under the Woman's build- ing and had men go over them every half hour until the caissons were completed. This kept the ladies from sink- ing into the quicksand and becoming angels before their time. Chas. R. ordered payment of all damage to them and put back the stones on the church. The office building is too narrow for a perfect layout 48 An Old Man Looks Back and, at times, has been too small, but we have gone along quite welf for forty years. THE CHICAGO WORKS W. W. (Bill) Doolittle having shown by his work at the malleable building on Canal and 15th Street, that his genius was not confined to machine design, was entrusted with the layout, the spacing, the designed movement from the raw material to the loading platform, and the interior equipment. He selected some able assistants, in- cluding John Collier, Vic Flodin, Frank McCreary, Fors- berg, and others, and went to work as soon as the future site was selected. The first step was to measure the floor space in the company's scattered buildings, analyze the output, and calculate the probable rate of increase for ten years; next, to determine the movement of product from raw to finished, the space required for brass and iron foun- dries, machine shops and railroad tracks. These areas were then laid down on a plat of the property, leaving vacancies here and there for future buildings. Naturally, there was a good deal of rubbing out and marking in, for, as Bill Doolittle used to say, "It is easier to change a line on the drawing board than in a finished building." Infinite pains were taken to insure a plant which would not only be mechanically correct, but be good for several generations, and the men employed on the job travelled far and wide to study the most modern plants already built or under construction. The architects were Graham, Anderson, Probst & Charles R. Crane, President 49 White (all dead now). To them goes the credit for the pleasing and harmonious treatment of the buildings, but outside of that, the piciiii stands as a monument to Bill Doolittle's vision, genius and infinite capacity for taking pains. Many additions have been made in 28 years, l)ut the new buildings occupy the spaces originally laid out and no material alterations have been made to disturb the symmetry of the original plan. The first building was erected in 19 14 and the last in 1942. It was a tremendous task to move all the machinery and stock from Canal Street, 10 N. Jefferson Street and 219 S.Jefferson Street, into the new buildings, but fortu- nately it did not have to be done all at once, but was car- ried out as each section was completed. The manufac- turing division handled the job so successfully, that we experienced no noticeable delay in filling orders. .\s the new plant was laid out for future expansion, we rattled around in acres of unused space for a while, but the uplift from World War No. i and the tremendous de- mand in 1920 soon took care of that. In the summer of 1 914, Chas. R. and his brother, for reasons known only to themselves, agreed to disagree and it came down to a question of buy or sell. The Junior was much the larger stockholder in Crane Co., but Chas R. owned the big plant at Bridgeport in his own right. Both plants were included in the deal; the Junior was high bid- der and took control. Chas. R. was paid by issuing to him about $15,000,000 bonds of Crane Co., bearing 53 2%- He dien retired permanently from the business. THIRD PERIOD R. T. CRANE, JR., PRESIDENT 1914-1931 Xn August 19 14, a new Board of Directors was elected, made up of: R. T. Crane, Jr., A. D. MacGill, W. W. Doo- little, R. B. Stiles, H. P. Crane, E. H. Raymond, A. F. Bennett, J. H. Wrath, C. A. G. Wayman, C. H. Penny, J. B. Berryman. R. T. Crane, Jr. was elected president; I became ist vice-president; A. D. MacGill, treasurer, and E. H. Raymond, secretary. A few months afterwards C. H. Penny died and W. S. Beville was elected a director in his place. A new name, E. H. Raymond, appears on the board. A great many men, still active in the company's affairs, remember Eddie. He was an assistant to John Murphy in 1895, and after filling various minor jobs was promoted to a branch house. He made a great record in Philadel- phia by pulling that branch out of the red and putting it on a very profitable basis within two years. After I went up to first vice-president, we called him in to take charge of sales.When nature was making the little man there was material enough for a large head with brains in it and a normal body, but not quite enough for legs. Sitting down 50 R. T. Crane, Jr. PRESIDENT, 1914-1931 R . T. Crane, Jr. _, Pre side n I 5 1 he was a good size — standing up, very short. As a sales manager, he functioned well, but would have done bet- ter if he had had a less abrupt and snappy disposition. Once Eddie made a trip to Europe and "Boots" Little said, "Eddie has now been at sea three days. Last night his cabin steward jumped overboard and tonight the head waiter will follow suit," but joshing aside, we all knew that Eddie was an able man who understood the business. His end came suddenly some years later. He was on a business trip through the South with Boots Little; he complained of feeling tired, but seemed to be in normal health. They left Houston for New Orleans on the night train and Ed was found dead in his berth next morning. Another new name, or rather an old name reinstated, was A. F. Bennett who resigned in 1910. He was elected because Chas. R. had made him general manager of Bridgeport, and when that plant was taken over by Crane Co. he was placed on the board to represent it. At this time Crane Co. was an out and out family affair under totalitarian rule. The board was made up of em- ployees who had nothing to say until they found out what the president wanted. No free speech, practically no dis- cussion, except when the Junior was absent and I was in the Chair, tlicn the lid was off as far as speech went, but no action was taken other than routine work. Great Period of Expansion After the reorganization in August 1914, the Company started on what was to be the most active period of ex- 52 An Old Man Looks Back pansion in its history. The new president was, we knew, a democratic, approachable gentleman, without any busi- ness training, who was taking on a very stiff job. We did not know whether he could handle it, but the underlying organization was sound and we expected to get along. The time was unpropitious. After the declaration of war between England and Germany, business stopped in the United States and our sales began to slide down, like a ship on greased ways. The new plant in Chicago was un- der construction at a cost far exceeding the money re- ceived for the old one; the newly acquired plant at Bridge- port had to be kept running and financed, and on top of all we faced a debt of $15,000,000 with an interest charge of $825,000 per year. If the Junior had not been the world's greatest opti- mist, with faith in his lucky star, he might have been dis- turbed, but it did not seem to affect him much. One day, after he had signed 2500 bonds and I had signed 13500, we were driving to lunch, and he said with his character- istic chuckle, "John, that job is done. Charley gets the bonds and I suppose they will be paid some day, but how and when?" I suggested that wars meant business in our line and we would feel the effect before long. As a matter of fact, business with us did not pick up in any great meas- ure until 1916. However, this is what happened in the next eight years. We started with a bonded debt of $15,000,000, carrying an interest charge of $825,000, and very poor business. The great plant on Kedzie Avenue was built and R, T. Cram', Jr. , President 53 equipped at a cost of, at least, tliicc times llie amount wc received from the C.B.&Q^. for the old property. A manufacturinc; i^laiii was built and e(|uii)ped in Canada. Tlie Mutual Pottery at Trenton to which (Iranc Co. contributed Si, 000, 000 was built and equipped. Twenty branch houses were opened and 8 or 10 of them had new buildings. The Atlantic City show room was built. The New York show room remodeled and equijjj)ed. Cash dividends aggregating Si 2,298,000 were paid and the bonds paid off as follows: Prior to 191 7 S 135,000 1918 7,723,000 i9'9 37M00 1920 2,424,000 1 92 1 96,000 1922 4,904,000 $15,658,000 In addition to these large outlays, the Junior contin- ued his father's policy of paying extra compensation to the men at Christmas. The rate was 10 per cent of a man's earnings in 1 914 to 1920 inclusive, and 5 per cent in 192 1 and 1922, and the aggregate amount so dis- bursed was Si 1,51 1,000. It is an extraordinary rectjid. The Junior's optimism was justified and the selling di- vision had done an outstanding job. They were, fortu- nately, not hampered by a lot of alphabetical bureaus, but could operate on the law of supply and demand. The demand was greater than the supply and within reason- able limits, wc got what the traflic would bear. 54 ^^ Old Man Looks Back In May 1919 Jack Houlihan, superintendent of Dept. 3 (malleable fittings), reported that his stock bins were fiiU and he wanted to put up a temporary building across the street to store the surplus. This, of course, did not appeal to us, because we could not see anything but a normal de- mand in the near future. The obvious course was to slow down, something superintendents hate to do when things are running smoothly and they are making good costs. However, through a strange surge in demand, which oc- curs once in a while, orders for malleable began to pile in and in thirty days we had sold all the fittings in stock and were working on a shortage. Then came the great strike. Before Crane Co. bought the land between 12th and 1 6th Streets on Canal Street, I was told a cluster of Irish men's shanties covered the property around 15th Street. The place was known as "Hell's half acre." Jack Houli- han was born on the site of the large malleable fittings plant, of which he was afterward superintendent. A rise in the world, possible, probably, only in America. He was an exceptionally good man, industrious and intelligent. The business manager of the department was another Irishman named Wm. (Bill) Twohig, son of the old door- keeper at 10 N. Jefferson Street, as keen as the superin- tendent. The Junior liked to drop in on this department to hear Houlihan and Twohig pass the ball to one an- other. When Houlihan was describing some of the activi- ties of the plant, he always said, "Aint that so. Bill?" and Twohig would answer solemnly, "You're right. Jack." The formula never varied. R. T. Crane, Jr. , President 55 The Strike War has a bad psychological effect on young men. They come back out of tune with civilian life, uneasy and reck- less. Every war has had an aftermath of crime, committed by the mentally, or nervously, unstable men, lately in the forces. Fortunately, they are not in great numbers, or the authorities could not handle the situation. Our strike had its inception in the reckless desire of some ex-servicemen to start something. Prior to the strike, the directors had under discussion the necessity for raising wages, as the cost of living was going up very fast. The concensus was an increase of 8 per cent, which we expected to announce in a few days. We were a little slow on the trigger. The next day, about 50 ex-soldiers scattered through the plant, threw down their tools and yelled, "Strike! Strike!" stampeding the men like a herd of cattle. The foremen were caught flat footed and could not restore order. So we were in for it. We decided that our best policy was to shut down and not try to open with strikebreakers. We could do this because Bridgeport was unaflfected and our branches were fairly well stocked. As far as that goes, we got along quite well for six weeks. Anticipating more vio- lence than actually occurred, we engaged a regiment of guards to stay inside the plant which was quite as well, because a gang came over the 39th Street fence one night, bent on destruction. As fast as they came over, the guards tossed them back. The battle did not last long. One, or more, of the strikers 56 An Old Man Looks Back got a room across Kedzie Avenue and began shooting through our windows, without hitting anybody, to their regret no doubt. The pohce chased them out. They beat up an office boy and Dr. Harvey rescued him. They also tried to kill one of the guards who was on his way home. He shot one of them and was vindicated by a jury. The majority of the men, mostly veterans and the older employes, went home and stayed there until the trouble blew over. Some 1500 gathered at a beer garden a few blocks away and held meetings under the direction of a sweet scented labor leader named Kilkuski. This man signed them up as a Union and collected $5.00 each. Not bad picking for a little oratory. He and another labor leader, whose name slips me, split the swag. This Kilkuski was the head of one of the unions in the Stock Yards, and through his devotion to the pursuit of wine, women and song, he managed to get away with the Union funds. About six months after our strike, some person or persons unknown, put a few slugs in him and ended his career. Nobody seemed to care much. He never will be missed. A conciliator came from the Department of Labor, Washington, and after interviewing the men in the beer garden, came in to see me. He wanted a meeting between the officials and the men to adjust the grievances. I told him we would meet with them at any time, provided the committee selected was made up of Crane men only. He arranged matters and the meeting was held under his su- pervision. Flodin, general superintendent; Charley Han- sen, superintendent production; C. A. G. Wayman, and R. T. Crane, Jr. _, President 57 myself represented the company. There may liave been others, I have forgotten. We did not get very far. They had a list of demands drawn up by the labor leaders cov- ering, probably, three times more than they ever expected to get. One of the items we rejected was abolition of piece work and the other a Union shop. I explained to the men that we were paying higher rates than our competitors (which was a fact) and if we acceded to their demands we could not sell our product in competition. This meant shutting down eventually and we might as well do it now. One man did quite a little talking, and I asked him how much he made. He said 90 cents per hour. In what department? The galvanizing, but, he said, "I must get more money because the acid eats up my shoes." After that the committee retired to the beer garden to think things over. During the strike \'ic Flodin, Chas. Hansen, Geo, Lar- son and the department superintendents stayed in the plant every day. I went out there three or four times a week. The Junior was in the East. Flodin got a tip that they were going to lay for him as he went home. After that he carried a revolver on the dash board of his car and was accompanied by one of the guards. The tip was false, nobody disturbed him. After a while information filtered in that the beer gar- den was losing its charm and the labor leaders were grow- ing indifferent because there was no more money in sight. We decided to open and sent a letter to all employees asking them to return at an advance of 8 per cent and un- 58 An Old Man Looks Back changed conditions. On the day set about 700 or 800 came in, more the next day and by the end of the week the plant was in full production. Not many of the original trouble makers came back, although we offered to take back any one without discrimination. World War I When President Wilson declared war in the spring of 191 7, this country was about as ready for combat opera- tions as a choral society with a bank of sopranos. The War Department called into service many retired Colonels, Generals and other Officers, to organize sources of supply for Ordnance and military equipment. Among them was a Col. Seymour, I think that was his name, and we re- ceived a call from him to report in Washington. I went down. The Colonel had an office in an old residence which was equipped with a battered second hand desk and two kitchen chairs. He said it brought back memo- ries of his early campaign days when they had nothing but discomfort. The Colonel had an idea that we could make rifles. I disabused his mind and told him we had shops equipped for fittings and valves, only; that there was a great demand for our product and it was better to let us do an important job, which we could do well, rather than disorganize the plant with something we knew nothing about. He said perhaps I was right, but we had to take on something for him and he pointed to a Stokes mortar on the floor and said, "Can you make it?" I said, "Yes." We made some later. R . T. Crane, Jr. , Pre side }i t 59 The draft went iiUt) t-iU'ct shortly afterward. An army of great size was being mobilized, but there was no place to pill liu' men. No barracks, no training camps, no noth- ing. The Army decided to l)iiild a number of canton- ments with living quarters for four million men. Speed was the order of the day. Building contractors were found who could run up the wooden barracks in short order — and did — but the buildings had to be heated and supplied with sanitary conveniences. The Army had no men equal to laying out and gathering the necessary material and Crane Co. was called in. At that time we had in our Gov- ernment department in Washington a man named Frank- lin, who was not only an expert on plumbing, but under- stood the installation of it. He had the confidence of the Department and the Army was only too glad to throw the w hole work of obtaining material into our office. The sales division, therefore, entered into a contract to supply pipe, valves and fittings of our make and to buy for the Government all other equipment. Crane goods was sold at our established prices and on purchased goods we were given a commission of 5 per cent. This 5 per cent did not reimburse us for the trouble and time expended, but we considered it as a contribution to- ward the conduct of the war. The operation turned out well. The cantonments were built and wc kept the equip- ment flowing in as fast as the contractors could install it. I do not recall any serious complaint in that year. A nod of appreciation is indicated at this point toward Franklin, Eddie Raymond, Bert Seymour, Charley Moran and 6o An Old Man Looks Back Wm. Beville, purchasing agent. There was also great ac- tivity in the Navy Department. New naval units had to be built and the older vessels remodeled. This brought in a flood of orders for brass valves. Our new brass foundry was a large building, containing 80,000 sq. ft. of floor space, but we soon reached the limit there and had to build a smaller foundry adjoining. Even then we barely kept our heads above water. To add to our troubles there was great activity in com- mercial shipbuilding. Ships and more ships were called for to take men and materials over seas. Unlike the pres- ent war, where everything has to be steel, these commer- cial ships were fitted with iron body valves. This demand taxed our facilities to the limit. The Commercial Ship Division in Chicago was headed by an engineer named Ed Sessions. He was on our necks most of the time and finally convinced us that we must erect another finishing shop. We had no idea then, that the war would end the following year, so we went ahead and erected one of our standard steel and concrete buildings in the C line. It cost about $500,000 and never a wheel turned in it. For a while it looked like a white elephant, half a million of frozen capital, but later on became very useful. Today it is more than useful; it is indispensable. Session was a consulting electrical engineer with a fine staff* of young men. Our bill for current was very large and in the hope that a saving might be made by some change in the wiring or otherwise, we engaged him to look over the installation. His experts made a thorough R. T. Crane, Jr. , President 6 1 study, bill could noi IhkI any place where an alteration would be beneficial. This was a feather in the caps of Harry Stewart, cliief electrician and his assistant. Hob Dussman, who had laid out the work. One day tlie late Charles Piez, then president of the Link Belt Co., dropped in and asked me if I knew Ses- sions. Finding that I did, he said, "Tell me, frankly, is Ed. a genius or a nut?" I told him that the line between the two was sometimes faint and perhaps Ed. was strad- dling it. A little incident came up in the early part of 1 9 1 8 which gave me some satisfaction. I was on the committee con- trolling the distribution of coal in this area. The chair- man was Fred Pease, an arbitrary individual, who was inclined to carry things with a high hand. Our brass foundry was running short of anthracite. At that time we melted in pit furnaces and had just begun to experiment with electric melting. This was not very promising as the electric furnace had not been fully developed, and our technique not as good as today. Pease refused to let us have coal so I went over to see him. He said we could use gas and brought in his so-called combustion engineer to prove it. We had explored that angle already and had found that the Gas Company did not have a main on Kedzie Avenue large enough to carry the load. The combustion man suggested coke. We had tried that and failed. Then Pease said we should use electricity. I asked him what the Navy Department would do while we were changing over the plant. He said tlial was our 62 An Old Man Looks Back trouble and flatly refused coal. We wired the Admiral in charge of construction at Washington, setting out the facts. He came back with a message to tell Mr. Pease to deliver what coal we required and if he did not do so, he would divert enough cars at the mine. Two cars of an- thracite were on our track in the morning, but Fred Pease was mad through and through. Before I forget it, W. W. Doolittle resigned in 191 6 after some misunderstanding with the president. We, of the working force, regretted this for "Bill" was rough and tough, but square. You knew where he stood all the time; he was a friend or an enemy and did not care who knew it. The department of machine design went to Carl New- house, an able draughtsman. We did not build many ma- chines after that, but Vic Flodin and Newhouse designed a machine for making unions, far superior to anything we had used before. The new plant on Kedzie Avenue was fairly well along and in production by 191 6- 17. Vic Flodin was general superintendent (the same man who was making 30 cents per hour not many years before) and Chas. Hansen, su- perintendent of production. These two men were pillars of strength. Flodin was a superb judge of machinery and master of shop layout. Hansen was cool and collected un- der any and all circumstances, and he took the brunt of the pounding from the order department. They worked well together. Crane Co. was fortunate in having in the production end, strong men who understood their busi- ness. This was true in the Founder's time and it is true to- R. T. Crane, Jr. , President 63 day. As the years pass, nu-n pass, but the baton is liandcd on to their successors and tradition and ideals aic ( arried on without a break. CANADA In 191 7 the president announced that he intended to open a phint in Canada. It was an unpropitious time. That small country had gone all out for four years in a great war and was bled white in men and money. To operating men it looked like the worst possible time to establish a business there, and as a matter of fact it was. To the mind of the Junior, however, it seemed the best possible time. He said that the people of Canada would welcome us more, if we started when everything was blue, than if we went in after prosperity had set in. This may have been good psychology (I am not a judge), but we did not find our established competitors meeting us with a band and floral offerings. Quite the contrary, they ganged up on us and gave us a stiffbattle for several years. In 1 919 the plant on St. Patrick Street, Montreal, was completed. In 1920 we bought the Dominion Pottery in St. Johns, Quebec. In 1922 we erected an office building on Beaver Hall Square. In 1926 we purchased the plant and good will of Warden King & Co. (boilers and radia- tors) and in 1930 we purchased the Port Hope Sanitary Mfg. Co. at Port Hope, Ont. (enameled ware) and at va- rious times established 13 branches throughout Canada. The other branches were originally established by Crane Co. of Illinois. This Company is now a strong, well estab- 64 An Old Man Looks Back lished concern, but we had our troubles when it was in the making. ENGLAND In 19 1 9 I was in San Francisco and received a wire from the Junior saying he had a chance to acquire Ben- nett's jobbing business in London and did I think it bet- ter to buy, or go in independently. I replied that if he had made up his mind to open in England, it was much bet- ter to buy out Bennett and have a nucleus to start with. Before I got back the deal was closed. The Junior then went to England and selected a site for a new plant at Ipswich, about 60 miles from London. James E. Bennett was elected managing director, a position he still holds. We had the usual troubles inherent in a new venture and some ups and downs, but on a whole the business has done quite well, and has justified the investment. FRANCE This venture grew out of a desire on the part of the Junior to help the Crane men in the overseas forces. He sent Austin Murphy to Paris to open a meeting room on the Place deL'Opera, to distribute cigarettes, etc., give the boys a place to write letters, receive mail when they were in Paris, and give them advice and assistance. His next step was to open an expensive show room exhibiting plumbing fixtures. We did not make plumbing goods in Europe and could not sell those made in America on ac- count of the tariff, but the Junior said the idea was not to R . T. Crane, Jr. , Preside n ( 65 sell ill France, but to advertise our product to the Amer- ican travelling public. Later on it cost us a lot of money to get out of that lease. Following this a small shop was opened in Rue Le- courbe for pipe fabricating and we put in a small stock of fittings and valves. Came the time when the French tariff' on valves was raised so high that importation was out of the question. The Junior then decided to build a plant and manufacture in France. A very good site w as selected and a small but well equipped plant laid out. The prod- uct is excellent in quality and was finding a market when the war broke out. We have heard nothing from them for two years, except indirectly. The buildings, at last ac- count, were still there. BRIDGEPORT This large plant was owned outright by Chas. R. Crane. The output was taken by three large customers and Crane Co. In August 1 9 14, when Crane Co. took over, the prin- cipal outside customer was Jenkins Bros, for whom they manufactured, under contract, the Jenkins valves. This work was done in the Main Street plant and the iron valves and fittings were made at the new West End plant. Nearly all the output of this plant was marketed by Crane. Later on we sold the Main Street plant to Jenkins Bros, as our Chicago plant could make all the brass goods we could sell and the Bridgeport capacity was superfluous. In the earlier years Chas. R. engaged our ex-purchas- ing agent, Frank Mulcahy, as general manager and upon 66 An Old Man Looks Back his death appointed A. F. Bennett, our ex-secretary, in his place. Not long after Crane Co, took over, Mr. Ben- nett resigned and John H. Collier slipped into his shoes. Mr. Collier, with the able assistance of Wm. Noone, the superintendent, overhauled the Bridgeport plant and modernized it. (I remember Billy Noone as a black haired kid chasing orders in Dept. 2) After they were through the rehabilitation job, the plant produced the same ton- nage with 1000 less men. Mr. Collier operated the plant for nine years until his transfer to Europe to oversee the English and French plants. In 1922 we were reaching the bottom of the financial barrel and if the great expansion which the Junior had in mind, was to be carried out, additional capital was neces- sary. The Junior did not like the idea of issuing bonds; an issue of Common stock was undesirable for several rea- sons, so it was decided to sell $15,000,000 of 7 per cent Preferred stock. The employees subscribed for a large amount and the balance was sold to underwriters. The Junior greatly desired a large stockholding by employees and to make the issue more attractive, the employees were guaranteed i per cent additional, making the issue worth 8 per cent to them, a rate of return which looks fabulous today. He, later on, to further carry out his idea of employee ownership of stock, gave to the employees out of his personal holdings, a great many shares divided among them, principally on length of service. I recall vividly the great surprise I had in Del Monte. We were in a zone meeting of Pacific Coast managers at R. T. Crane, Jr. , President 67 the Del Monte Hotel. The Junior passed me a slip of pa- per on which he had written, "Can you draw a trust deed?" I penciled on the bottom, "Yes" and returned it. Back came another paper, "I want to give 80,000 shares of my stock to the employees, on this basis (terms set out). Draw up a trust deed to Tom Kelly and yourself and get it back here in half an hour." The stock was worth at that time about $4,000,000 and the transaction surprised me not a little. I w ent down to the writing room and drew up, on a sheet of hotel paper, what was intended to pass as a trust deed and he signed it. When we got back to Chicago he signed a single certificate and Kelly and I split it up according to instructions and distributed the shares among the beneficiaries. This generous act was the high light of that meeting and one of the high lights in the Junior's life. Still Greater Expansion The years from 1922 to 1930, inclusive, were active and profitable. We paid 7 per cent on the Preferred stock and an equal amount on the Common and opened about 90 branches or warehouses. Of these the O'Fallon business in Denver and the Columbus Supply Co., in Ohio, were acquired by purchase. Most of the others were put in from the ground up and some 35 buildings were erected to house them, the others were in rented property. One year, coming back from the Coast on Mr. Crane's private car, we were discussing the business and the Jun- ior turned to me and said, "I wint you to establish 50 68 An Old Man Looks Back branches in the next year." I explained that it was impos- sible. There were not 50 good places left and, anyway, we had not sufficient capital nor men available: "Neverthe- less," he said, "I want it done." Bert Seymour chimed in, "Mr. Crane, you are not talking of branches, you mean filling stations." The Junior laughed and said, "That is the idea, Bert." We did put in 20 houses next year and it strained us to do that much. We were also spreading out in other direc- tions. We had a half interest in Mutual Pottery Co. at Trenton, the other half was held by the Trenton Potteries Co. The output of the Mutual was not sufficient, so it was decided to buy the Trenton Potteries Co. outright. This was done by buying nearly all of the outstanding stock by private sales engineered by a New York stock broker named Coe. Following this purchase, but several years later, it was decided to manufacture boilers and radiators. The boilers were designed and patterns made in Chicago. Inasmuch as we had had no experience in the manufacture of radia- tors, we bought the Landon plant in North Tonawanda, to get the advice and knowledge of Archie Landon who owned it. The idea was unsound. We paid too much for the outfit and had to rebuild the plant before we could get economical production. Following the Trenton purchase the Junior wanted an enamel plant for bath tubs, lavatories, etc. The only available plant was the Cahill Iron Works in Chatta- nooga. We bought it. It did not take long to find out that, R . T. Crane J Jr. , President 69 so far as the production of iron enameled ware at a com- petitive price, was concerned, the plant was impossible. We then built a brand new plant at Alton Park, just out- side Chattanooga. After a world of trouble with incom- petent management, we finally sent Arthur Nelson who had been trained in Dept. 2, to take charge. He. had quite a few headaches, but finally got things going and the plant did well. Hindsight is better than foresight by a damnsite, and looking back it is evident that except in the case of the Trenton Potteries, where we fell heir to a highly efficient going concern, the other plant purchases were mistakes. We could have done better by hiring the necessary talent and going ahead on our own hook. We did eventually. I am going to detour here to place on record the direc- tors who, theoretically, were moulding the destinies of the Company: 1925 1930 J. B. Berryman J. B. Berryman VV. J. Clark W. J. Clark H. P. Crane H. P. Crane R. T. Crane, Jr. R. T. Crane, Jr. J. A. Murphy J. A. Murphy E. H. Raymond R. B. Stiles R. B. Stiles C. A. G. Wayman C. A. G. Wayman C. R. Crane, II C. R. Crane, II V. E. Flodin V. E. Flodin A. F. Gartz, Jr. A. F. Gartz, Jr. P. T. Kelly P. T. Kelly D. G. Park D. G. Park W. Evensen J. H. Collier C. D. Little L. P. Ordway H. VV. Seymour 70 An Old Man Looks Back Now, we made a great deal of money in the years 1 9 1 5- 1930. The capital of the Company had been increased, in addition to the earnings, by $15,000,000 of Preferred stock, $2,000,000 by liquidation of the Main Street plant in Bridgeport, and some minor additions. As an offset to this, we paid Chas. R. Crane $15,000,000 so practically the Company had been expanding on earnings. Out of these earnings were paid dividends on the Preferred stock ($1,000,000 per year) and $1.75 (7%) on the Common stock (about $4,000,000 per year). What was left was in- vested in Canada, England and France, in branch houses and branch buildings; in plants for enamelware, pottery, boilers and radiators, and to increase the capacity of the Chicago Works. In 1930 we had a nominal surplus of some $20,000,000, in bricks, machinery, inventories and accounts receiv- able, but not much cash. The company was sound as a bullet, but so far as further expansion was concerned had to wait future earnings. This did not suit the Junior; he had ideas which he wanted to put into effect at once, so we saw Eugene Stevens, president of the Continental Illi- nois Bank, and made arrangements with him to issue $12,000,000 Debentures. This large transaction did not take over half an hour as we were not hampered by an exacting S.E.C. in those days. Looking back, it seems extraordinary that this transaction could have been handled at all. The stock market crash came in 1929 and business in 1930 was slowing up and the general outlook was bad. However, R. T. Crane, Jr. , President 7 1 the company's credit standing was so high that the issue was taken up almost immediately. During the latter part of 1930 and the early part of 1931, the Junior reversed himself on immediate investment and we simply com- pleted what buildings were under way and carried out other commitments. When he passed on we had a large part of the bond money left and in light of what happened in 1 93 1 -2-3 it was most fortunate. In 1930 the operating men sensed that all was not well in the business world. Sales were slipping and competi- tion was becoming sharper. We wanted to take some can- vas off the ship, but the Junior said it was a diamond jubi- lee year, 75 years since the Founder had run the first mould, and he wanted it marked by good feeling. We had the good feeling right enough, but very little profit. In 1 93 1 the operating men knew that we were in for serious trouble and put pressure on the Junior for permission to do what had to be done. He either would not, or could not see that the conditions in the country were very bad. He thought the selling division was laying down on the job. This was an illusion. The selling division was doing all it could, but no one can sell anything unless there are buyers. We did something towards reducing expenses in 1 93 1 but, unfortunately, not nearly enough. In Novem- ber, the Junior had a stroke and passed on. No finer man ever headed a company. His integrity and honesty were so firmly fixed that he leaned backwards and he insisted that all transactions should be based on his own high standard. His faith in the honesty of the force was so 72 An Old Man Looks Back great that he gave orders to cancel all fidelity bonds on men handling money, with the proviso that should any one prove crooked he was to be prosecuted to the limit. In his term of office and after his death by Will he made outright gifts to the employees of 366,000 shares of Crane Co. from his personal holdings. His heart was in the com- pany and he was governed by a strong desire to make the company outstanding; to make it a household word. Per- haps there was some personal egotism in this but, if so, he did not recognize it as such. He was a plain democratic man, easily approachable, kindly and considerate, with a vision, but too optimistic. He had not come up the hard way like his father. The axiom "never spend a dollar un- til you can see a dollar and ten cents coming back" was not in his lexicon. He would spend freely, sure that to- morrow would fill up the chest again. Perhaps he was not the best business man in the world, but he was one of the finest men I ever met. One of his conceptions was the Veterans' League, made up of employees who had been with the company 25 years or more. To each member he gave a gold medal with a bar for every 5 years. Once a year he gave the vet- erans a banquet at his own expense. At the last one, held in the Grand Ball Room of the Stevens Hotel, I think about 1 100 sat down which gave him extraordinary satis- faction. John B. Berry man PRESIDENT, 1 932-1 935 FOUR in I'l RIOD JOHN B.BERRYMAN, PRESIDENT XoLLOWiNG Mr. Crane's death the directors elected me president. It was a stop gap, because I was considered too old to cany the load for any great length of time. The di- rectors were right, of course. As far as I was concerned, it was a change of title, but not a change in job as I had been operating head of the company (with some inter- ference) since 19 14. I do not look back on this period with pleasure. When I took over, we were losing some- thing like Si, 000,000 per month and that leak had to be plugged or we were sunk. There was only one way to do it. Trim down the force and cut the salaries and wages of those remaining. Not a pleasant way, but the only way if the company was to survive. In this I had able support from Bert Seymour, D. G. Park, P. T. Kelly and most of the branch managers. Some of the managers complained, but eventually they saw the light. Our sales kept shrinking about as fast as our retrench- ments for a while and it was a tough proposition. To illus- trate: In the years 193 1-3 we received very few industrial orders; the steel mills, the great barometer, were running 73 74 ^^ Old Man Looks Back about 20 per cent of capacity. The public utilities were not expanding as they had excess capacity and residen- tial building had almost ceased. The decline in residential building, taking 1928 as a base, was 1929 — off 32 percent; 1930 off 60 per cent; 1931 off 70 per cent; 1932 off 90 per cent. The oil companies were doing rather better than other industrials, but the competition in that field was so sharp that there was no profit in the orders we did get. A trip through the Chicago Works in those bleak days was a depressing experience. The flow of material through the shops had fallen from a river to a trickle and in the acres of idle space, the black machines stood silent and waiting. It recalled to my mind the well known lines: "I feel like one who treads, alone, A banquet hall, deserted, The guests have fled, the flowers dead And all, but he, departed" In 1932 the majority of the banks in the country folded up. We had as usual a large amount on deposit in banks all over the country. Tom Kelly, in the financial depart- ment, was worried and I want to take off my hat to him for his extraordinary diligence and acumen in a very try- ing time. He would get a tip on one of our banks, pull out the money and deposit in another. The second bank would be groggy and Tom would get out at once and hunt for another haven. He kept on top of the job day and night, and we came through with practically no loss. When there is but little business, manufacturers and dealers try to keep up enough volume to pay expenses. John B. Benyman , President 75 This brings about ruinous prices. At one time our sales showed a net loss of 25 per cent, but a new sun arose to warm us when wc were decidedly chilly. General Hugh Johnson, w ilh his Blue Kaglc and his codes. Every one in our industry could see the possibility in a code and under legal guidance the valve and htting industry got very busy. I think I made nine trips to Washington and New York while we had the Blue Eagle cooking. Good old Al Jupp of Lunkenheimer worked so hard tliat lit- had a stroke and passed out. The upshot was that the industry got together and we eliminated some of the cut-throat competition, always keeping well within the law as it was then. During the depression, we sought for something to make which would keep the shop busier than it was. The magazines and newspapers were exploiting the possibilities of air conditioning in their usual dramatic way; many well chosen words and little real knowledge. One of our directors became quite interested and sug- gested that we enter the field. I could not see it, because conditioning as done by Carrier, was entirely out of our line and the small units contributed practically nothing to shop employment; the line promised to cost a lot of money we could not spare, with a problematical return. The American Radiator Co. plunged in and lost so heav- ily that when Harry Reed became president he closed out the line as quickly as possible. Undoubtedly, quite a good deal can be done to make homes more livable in hot weather in a simple and inex- 76 An Old Man Looks Back pensive way and we shall, probably, develop something salable one of these days. In 1934 there was some improvement in business and we turned the corner with a net profit of $ i ,02 1 ,000. Dur- ing my term we, of course, did not expand nor, in fact, do much except sit steady in the boat and bail. Certain re- forms in the organization were desirable, but they could wait. When a ship is sinking, it is better to put the crew at work plugging the leaks rather than painting the super- structure. We had, however, an eye on the future and called in John Collier from Europe to take the position of vice-president (manufacturing) vacated by C. A. G. Wayman who, after serving the company intelligently and well for fifty years, had reached an age when he felt like getting out of the harness. We also called in P. R. Mork to take the position of vice-president (sales divi- sion) formerly held by C. D. Litde and H. W. Seymour. Mr. Seymour had died and Mr. Little was retiring to take his ease on the Magnolia River where the fish bite once in a while. Under Jules Stark, a committee worked on a new gen- eral catalogue which was badly needed. The old cata- logue was out of date and the committee did a fine job checking the sales of every item, eliminating all the dead wood and adding new material. Under D. G. Park a committee revised our General Rules, cutting out those which were obsolete, but the basic rules as written by the Founder were retained intact. Chas. B. Nolle PRESIDENT, 1 935-1941 FIFTH PKRIOD CHAS. B. NOLTE, PRESIDENT I N March 1935 my active, operating days came to an end and the directors elected a new president. It is with a good deal of satisfaction that I record that we of the oper- ating force, having gone through the fires of adversity, turned over to the new management a business well manned, sound and making money. A new board of directors was elected, with the number reduced to nine instead of seventeen. The members were: J. B. Berryman, Cornelius Crane, A. F. Gartz, Jr., P. T. Kelly, F. R. Lillie, Mark \V. Lowell, C. B. Nolte, E. A. Russell, C. A. G. Wayman. The board elected the following officers: J. B. Berry- man, chairman; C. B. Nolte, president; P. R. Mork, W. J. Clark, J. H. Collier, C. R. Crane, II, P. T. Kelly, C. D. Little, D. G. Park, L. B. Peeples, H. W. Seymour, C. A. G. Wayman, vice-presidents; H. P. Bishop, secretary; Walter Evensen, treasurer. This is a formidable list of vice-presidents, most of them holding over from the administration of R. T. Crane, Jr., who liked to spread the title around. Some years ago, the 77 78 An Old Man Looks Back jokers of the Press related that two Americans met in Eu- rope and one said to the other, "What is your occupation when at home?" "I am vice-president of the Guaranty Trust." "Shake, brother, so am I." The company was most fortunate in having on the board an available man of C. B. Nolte's caliber and the directors' choice of him for president was a happy one. Mr. Nolte was a man of abounding energy and a bril- liant mind, trained to read from cause to effect, or from effect to cause. Without any experience in our line of work, he grasped the essential features within a short time and settled down to carry on successfully the con- duct of the business. Some changes in office and shop or- ganization were made under his direction to the com- pany's betterment and he did it without friction. During his term the 7 per cent Preferred stock was refinanced at 5 per cent and the Debentures finally refinanced at 2^ per cent, the lowest interest rate on Debentures so far as I know, obtained by any manufacturing company. This brings to mind a small incident which happened when our fortunes were at their lowest ebb in 1932-3. Mr. Sloane of the General Motors gave a dinner at the World's Fair. Among others at my table was the head of a Trust Company in St. Louis, whose name I have forgotten. He said, "You may not know it, or realize it, but the credit of your company rates with the first ten in the United States." I said, "I am glad to hear that, but as we are not making money, in fact losing, it may lower our standing." He said, "Not at all. Everybody, nearly, is in the same Chas. B. Noltt\ President yg boat and depressions never last forever. You will come back." Which cheered me up like a gallon of oats to a tired horse. And he was rii^ht. It is regrettable that a splendid IcUow likt- Clharley Nolte, through a surplus of energy, which drove him all the time, had to burn out at a comparatively early age. He w as a good man for Crane Co. In 1938 my old friend, Bert Seymour, vice-president, passed on after a lingering illness full of suffering, which he bore with great fortitude. He was a fine man and one of the best sales managers we ever had. I was traveling with Mr. Crane in his private car from Chattanooga to Trenton and got ready to leave at Baltimore. He said, "What's the idea" and I told him we were thin at the top and I hoped to get Seymour to help Ed Raymond. After- ward, Bert said I took him out of a comfortable position and threw him into a tough job. SIXTH PERIOD JOHN H. COLLIER, PRESIDENT 1941- A ,.T THE Annual Meeting in March 1941 the following directors were elected: J. B. Berryman; A. O. Choate, capitalist, New York; J. H. Colher; A. F. Gartz, Jr.; F. R. Lillie, scientist; Mark W. Lowell, vice-president, Conti- nental Illinois National Bank and Trust Company; Syd- ney G. McAllister, president, International Harvester Co. ; P. R. Mork; Chas. B. Nolte; Wm. R. Odell, lawyer and capitalist; E. A. Russell, vice-president, Otis Elevator Co. The make-up of the board indicates a definite change in Company ownership. It is no longer a vest pocket cor- poration, but a national organization with some 11,000 stockholders scattered all over the country. The officers elected were: J. B. Berryman, chairman; Chas. B. Nolte, president; J. H. Collier, vice-president; P. R. Mork, vice-president; C. R. Crane, II, vice-presi- dent; D. G. Park, vice-president; J. L. HoUoway, secre- tary and assistant to president; Walter Evensen, treasurer; F. H. Kaiser, comptroller. Mr. Nolte died in April and at a meeting of the board May 5th J. H. Collier was elected to succeed him. It was 80 John H. Collier PRESIDENT, I 94 1- John H. Collier, President 8 1 a good selection as Mr. Collier is a trained production man, and production is our great problem at this time, hut \\c is also a man of liii^h character, even tempera- ment and ^ood judgment. As I have, in earlier pages, fol- lowed his career from the sand \)'\\q to xice-president, it is not necessary to go over it again, but 1 was curious to know how he got in in the first place. As many of you know, the "Old Man" was opposed to liigher education for men in business life. He wrote a book on the futility of it, so I asked Mr. Collier to tell me how he crashed the gate. It came about in this way. Wanting to earn some money during the college vacation period, he braced the "Old Man" for a temporary job. Mr. Crane said, "Why tem- porary?" So Collier told him that he needed money to enable him to continue his studies at Purdue University. The "Old Man" brightened up at the prospect of saving another brand from the burning and said, "You are wast- ing your time. We can teach you more here in one year than a college can in a lifetime. I want you to read my book and not waste your life." Collier said, "Mr. Crane, do I understand you are offering me a steady job?" "Per- haps I am. Look over the place and see how you like it." He called Wayman over and told him to take the boy through the shop. He got a job, but the "Old Man" dropped him in a tough spot to see if he could stand ihe gaff. He did and you will notice that before long he com- menced to move up. At the Annual Meeting in Marcii 1942 Mr. George 82 An Old Man Looks Back Eastwood, president of Armour & Co., was elected a di- rector to fill the vacancy caused by Mr. Nolte's death. CONCLUSION Crane Co. has a background covering 88 years since the founding and 78 years since incorporation by a spe- cial Act of the Illinois Legislature. It is one of the older companies of the country and has successfully weathered the depressions of 1873, 1886, 1892, 1907, 1921 and 1930- 2-3. My information is, that, with the exception of the worldwide crash of the thirties, the company has always come out on the right side of the ledger. Today it is stronger in personnel and material assets than ever be- fore. During my lifetime, I have seen a great many com- panies rise, shine and fizzle out; some old well established concerns like Mott & Wolff dry up and die. The sands of time are strewn with the wrecks of brass manufacturers who knew how to undersell their competitors, but Crane Co. has prospered. There must be reasons for this, prob- ably to be found in customers relations, competitors rela- tions, and our policy of distribution. Customers The buyer pays the freight, cost and profit (if any) . He is our No. I man — the most important factor we have to deal with. We have been serving him for many years and, probably, have made a pretty fair job of it. We have es- tablished a reputation for square dealing, in so far as we have delivered to him honest merchandise at a price fair John H. Collier, President 83 to him and ourselves. He comes back again and again. He is the outward symbol of that intangible, but enormously valuable thing, called "Good will," which we possess in greater measure than our competitors. In business the cultivation and retention of good will is the keystone of success. Now this good will may be lost through bad manage- ment and imperfect product. It is not a finished mirror which we can hang up and admire our reflection. If we get too smug and self satisfied good will cannot be held; only hard work and horse sense will do the job. The con- tact with the customer lies in the field of the distributing force. To them the customer looks for courtesy, prompt service and rapid adjustment of complaints. The distrib- utors look to the manufacturing division for products which they can offer with confidence. Between the two we have all the elements which go to make a successful business. Failure on either side is disastrous. And touching on the quality of product, in this we do not take off our hats to anybody. In any of our lines, valves, fittings, boilers, radiators, enamelware and pot- tery we can stand the most critical comparison. If I were a manager and a salesman told me that he could not sell anything we make at an even price with a competitor, I should consider that man's usefulness at an end. Of course, I understand, that there are cases where the buyer is unfriendly, or possibly wants to turn the business over to a friend for various reasons. I know of two of such cases, where we got over the hurdle by selling the friend. 84 ^n Old Man Looks Back but by and large we always stand a good chance at an even break. Now let us consider our relations with com- petitors. It is not necessary to treat our competitors as arch ene- mies in order to avoid violation of the sacred Sherman Act. Certainly, we cannot make any agreements in restraint of trade or agreements of any kind and do not wish to. On the other hand, there is no reason why we cannot deal with our competitors as honorable business men. Com- mon sense tells us that there must be a market level of some kind and that senseless cut throat competition will not get anybody anywhere except the bankruptcy Court. Therefore, we believe in a spirit of live and let live in the secondary markets, not as philanthropists but because we make more money that way and sell just as much. Of course, it is never going to be all sweetness and light in this business, because that destructive trio — greed, envy and malice — are always with us. A very poor way of bringing about local good feeling was shown at one of our zone meetings in the central district. The chairman had asked the managers about competitive conditions and it came the turn of a manager of an important house. He said "I have little to do with my competitors because they are a lot of bastards." Now what bearing on the question, had his assumption that the male ancestors of his com- petitors were bachelors? The sales manager of a large company, who has since passed on to whatever reward he is entitled, once said, "Crane has a bunch of self-righteous guys who consider John H. Colliery President 85 themselves better than the rest of us." We got quite a kick out of that, for, as a fact, we did consider our opera- tions a Httle more ethical than his. I do not think we are overly righteous. Since Boots Little retired there may be some other one in Ralph Mork\s division entitled to wear a halo, but I have never seen him. In all seriousness we do try to be square, but we are very realistic and quite un- derstand that our manufacturing competitors are out to do us if they can and we have no intention whatever of being done. Distribution What success we may have had, is not entirely attrib- utable to good relations with customers and competitors. A great factor is the control of the facilities for distribu- tion. Any one with money enough can build a plant, staff it and produce, but the money is wasted unless there is a market for the product. By taking the product to the buyer we find our market. Through branch houses or dis- tributing warehouses, we reach the secondary market, where instead of a few large buyers, we find thousands of smaller ones buying something every day. And don't think that the small buyer can be ignored. I wish we had two hundred thousand of them; they stay with you and turn in a good profit. Unfortunately we do not control all the channels of dis- tribution. The task is impossible for one thing and the Government would not permit it even if u c could, but our method of selling does bring us in contact with a 86 An Old Man Looks Back great many buyers and is the best system I know of. If we have done fairly well for a long time that success is due to coordinated effort starting with production and ending at the final sale. To my mind we are just beginning to find ourselves. The possibilities in this business are very great and we shall no doubt, exploit them to the full in the years to come, and take it from an old man who has been through the mill, if we stick to our present methods and ideals, the waves of opposition will beat ineffectively against the granite structure that many hands and many minds have built well over the years. With age, we have acquired something intangible, but real. The company is more than a manufacturing and merchandising company; it is an institution, with tradi- tions and ideals. I am proud to have had a small share in the upbuilding. THE RECORD Capital and Surplus Sales 1865 S200,ooo Unknown 191 1 18,281,000 S36,ooo,ooo 1942 98,000,000 190,000,000 PRINTED BY R. R. DONNELLEY & SONS COMPANY THE LAKESIDE PRESS, CHICAGO, U. S. A. .