Numerous divisions are now divided into four major groups, each with its own vice president as boss. Executive Vice President Latham Edgar Osborne, who has spent 42 of his 57 years at Westinghouse, runs the vital defense group, which includes atomic energy. The most profitable group, apparatus (heavy generators, transformers, etc.), is under John Koga Hodnette, 50, another Westinghouse veteran and a brilliant mechanical engineer (Alabama Polytechnic, '22) with a long string of patents. Virginia-born William White Sproul Jr., 45, an electrical engineer, bosses the general industrial-products group, which includes elevators, airconditioning, plastics, small motors, etc. Appliances are under consumer products, run by ex-Adman John Meek McKibben, 51. Price is the overseer who keeps the top echelon pulling together, holds it responsible for meeting goals. All of them sit in on the overall management committee, which determines how high Westinghouse should set its sights for expansion.
Imagitron & Goositron. Price himself keeps raising the sights. He has to. "This country's use of electricity," he points out, "has been doubling every decade since 1900, and is now doubling again." To keep Westinghouse doubling with it, Price has already spent $230 million on expansion, has earmarked $200 million more for the next three years. "We had the electron," says Appliance Boss McKibben, and Price supplies "the imagitron and the goositron."
Price also went to work on the production workers at the bottom. He sought to give them more identity with the company. He wrote letters inviting them to buy Westinghouse stock, offering it at $5 under the market (44⅜ last week). In five years, 28,000 workers have bought $29 million worth of stock—a total of 660,000 shares —and some of the worker-owners show up at the annual meeting and don't hesitate to offer their ideas. Price encouraged the unions to join him in looking for ways both could work together for their mutual good. In 1952 he spoke to the C.I.O.'s electrical-workers' union at its national convention, saying: "We respect union leaders, and we think the union should respect management . . . Our program . . . is neither a 'get tough' policy nor is it a 'pushover' policy. It is primarily an offer of cooperation . . . Understanding and unity, like charity, begin at home . . ."
Demand Meter. Gwilym Price is one of his own best customers. His home has so many appliances that he has been forced to have a "demand meter" (made by Westinghouse) installed, and pay a premium for the extra current, because it is an added load during the utility company's peak period. The ten-room house, tucked away in ten acres of woodland just eight miles west of Pittsburgh, was built by the Prices 16 years ago. Price always arrives with a bulging briefcase, but his wife tries to keep him from opening it and usually succeeds.
Wednesday, February 25, 2009
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