An adverse
factor was the strict adherence to Pittsburgh designs and American
standards, which did not always appeal to consulting engineers and
other customers. The Americans' attempt to impose their ideas on British
buyers naturally failed, though in some directions it was found afterwards
to have forced the pace of development. One of the first major problems
was the use of American screw threads: any change was opposed as unnecessary
and expensive, but the British engineers led by Tom Smith persisted
and eventually had their way.
The
efficient operation of the works under such conditions was naturally
difficult, though accounts are somewhat conflicting. In spite of
strenuous efforts to increase output, long recalled as the Great
Push, orders were late on completion and unprofitable when completed.
On top of the very heavy initial outlay there had been too lavish
expenditure in many directions, and it became necessary to seek
financial assistance from America. There was no sign of dividends
for the ordinary shareholders of the Company, who were growing restive.
In February 1904—his last appearance at an annual general
meeting—George Westinghouse was congratulated on "the
excellent way in which he had ignored the most ugly facts".
American interests were thenceforward represented by the deputy
chairman and managing director, the Hon. W. I. Buchanan, who was
an ex-Ambassador to Panama, and at the next meeting (December 1904)
all his diplomatic experience was needed. The bland statement that
"the works was evidently built... for the work that would one
day come to it, be that day near or far" met with a shareholder's
rejoinder that "if we had known we were to build the works
for posterity they would probably never have been built at all".
A call
for "a little more common sense and economical management"
with other good advice was partly met by cutting down expenses,
but it was only constant support from the American Company that
enabled work to be carried on. The preference dividend was passed
for two years in succession, and at the meeting of December 1905
comment was outspoken: "a huge shed at Manchester . . . . ,
not there to face the music . . . , a sinking ship . . . , they
had been trifled with".
The
time had come for quick action, and a month earlier Westinghouse
had sent his immediate assistant, Newcomb Carlton, a vice-president
of the American Company, to join the Board—one of four managing
directors. (Buchanan returned to America in 1907.) Carlton set to
with energy and after a preliminary investigation decided that radical
changes were necessary both in men and methods. He therefore asked
for the assistance of Philip A. Lange, at that time manager of all
the American Company's works in East Pittsburgh, Allegheny, Cleveland,
and Newark. Accordingly Lange was sent over to spend six weeks at
Trafford Park reviewing the position. As a result of his recommendations,
he remained at the works in an acting capacity, and in July 1906
he was appointed general manager of works in succession to Loud,
who had gone back to America. From this point, though there was
yet one further crisis to surmount, the fortunes of the Company
began to turn.
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