7 .
2 g THURSDAY, NOVEMBER 14, 190a MEDFORD MAIL TRIBUNE, MEDFORD, OREGON
Chrysler Makes Rapid Industrial Comeback Under Lynn Townsend
"The Chrysler Corporation,
a heavy money loser only
four years ago, underscored
its comeback yesterday on
several fronts.
"Directors reported a 550
per cent jump in profits.
They also proposed to split
the common stock 2-for-l for
the second time in less than
nine months. In addition,
they advocated doubling the
cash dividend for the second
time this year.
"Earnings jumped to $100,
700,000 for the first nine
months of 1963." New York
Times, Oct. 25.
By JAMES STICKFORD
UPI Automotive Editor
The sleek, bronze-colored car
zipped with a high-pitched whine
through tne busy Chicago trat
tic tne most recent exampn
of an auto company on the
move.
It was the first domestically
DENNIS THE MENACE
' r if"" ti
I
built turbine car ever delivered
to an average American motor
ist. And the man who marked
the occasion was Chrysler Corp.
President Lynn A. Townsend,
architect of the industrial come
back of the hour.
Townsend, a 44-ycar-old ac
countant with a cost-cutting ap
proach to business, took the
reins of Chrysler in July, 1961,
after a series of setbacks that
included poorly styled cars, con
flict of interest suits against
top officials and legal action ini
tiated by disgruntled stockhold
ers.
Since Townsend has had con
trol, the fortunes of the com
pany have steadily risen and
Chrysler has been the talk of
Wall Street.
The corporation was founded
in the 1920's by a self-educated
railroad master mechanic, Wal
ter P. Chrysler, and the finely
engineered cars were an im
mediate success. Chrysler en
joyed steady growth and by the
post World War II era enjoyed
a solid 25 per cent share of the
U. S. car market.
Organization Faulty
Neither Chrysler nor his suc
cessor, K. T. Keller, developed
an administrative organization
necessary for a large corpor
ation and by the 1950's Chrysler
was in trouble.
In 1957, the company showed
' Hey, Maw ! What oo ya t wwem we
rVAT(? SETS TOO BIG TOR TUB TUB '
i Special Selling!
Trim, tailored '8.99 stacks
profits of $120 million but by
the following year snowed
loss of $34 million on sales of
$2.6 billion. In 1959, Chrysler
had only an 11.3 per cent share
of the new car market.
Townsend came to the corpor
ation as controller in 1957 from
the accounting firm of Touche,
Ross, Bailey & Smart, where
he had worked on the Chrysler
account.
His first assignment was to
shore up the firm's overseas'
operations and he rapidly ex
panded them and talked Chrys
ler into buying 25 per cent of
France's Simca Company.
Trims Expenditures
He became a director when
he was 39 and was named ad
ministrative vice president two
years later. He unlimbered his
economy ax and trimmed near
ly $100 million fro.-n expendi
tures. The results . were seen im
mediately. In 1959 the loss was
cut to $5 million on sales of 2.6
million and in 1961 the corpora
tion earned $11 million on small
er sales of $2.13 billion.
Townsend 's manage
ment theory calls for tight or
ganization and the right man
for the right job.
Whenever a soft spot ap
peared in the Chrysler picture,
Townsend has had an answer.
During the pell-mell rush to-
Blowdown From '62
Storm Twice What
First Estimate Was
FRI. & SAT. ONLY
Smart tapered stacked
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or black doeskin.
Fashionable
stitches and fringed
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your casual clothes,
Save today on styles
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$S97
The 133 million board feet of
blowdown timber from the 1962
Columbus Day storm was about
twice the amount estimated
originally, Dave Kaiser, of the
Rogue River National f orest,
stated at the meeting of the
Timber Committee of the South
ern Oregon Conservation and
Tree Farm Association this
week.
The regular meeting of the
Association will be Friday, Nov.
15, at Rogue Valley Country
Club.
Paul M. Sanger of the Med
ford District of the Bureau of
Land Management joined Kaiser
on reporting on the year s ac
tivities concerning the blow
down timber and the projected
timber sales for the coming season.
Sanger said 21 million board
fect of the timber has been sold
and salvaged and that of the
balance of 4 million board feet
2Mi million has been sold and
l..e other l'i million sale
dependent upon access roads.
Future Looks Good
Sanger said the general con
dition and outlook for the fu
ture looked good for continued
timber availability.
Kaiser said the last quarter
was the most active on record
in the Rogue River National
Forest. He explained that be
cause of the new 10-year pro
gram of the Forest Service, the
excessive cut resulting from the
storm would be spread over a
10-year period. This wul allow
continued supply of timber
for local sawmills and plywood
plants, Kaiser said.
The Jackson-Josephine county
area naa relatively little dam
age from the storm compared
to other areas to the north, it
was pointed out at the meeting
Other areas were plagued with
strike conditions, also, which
did not weaken the lumber in
dustry here, both agencies and
industry representatives noted
Welded Steel Rails
Reduce Train Noise
CAMDEN, N.J. (UPI) -The
Delaware River Port Author
ity's new rapid transit line link
ing Philadelphia with Kirkwood,
N.J., will use welded steel rail
to reduce noise.
James H. J. Tate, authority
chairman, estimated the noise
level inside trains would be
about the same as that exper
ienced by a motorist in a new
car traveling 50 miles an hour
over a new highway with the
car windows closed.
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OCT. 23
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SAGITTARIUS
NOV.
DEC
26-32-35-470
P3-38-74 SrJ
LIBRA
EPT. 23
CAPRICORN
DEC 23 x
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07-62.68 V-i
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PISCIS
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30. 39-42-49 fT
160-78.81-06-1
Village Variety and Garden Shop
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Plan
ward peak production in the
late 'SO's, Chrysler's reputation
tor quality control slipped disas
terously. In some cases, deal
ers reported the car cVors would
not close.
Makes Better Car
Chrysler intensified its efforts
to make a better car and as
a result was able to announce
last year a 50,000 mile-five year
warranty on power train com
ponents, the longest in the industry.
And the automotive future
has not been overlooked. Al
though Townsend approaches
costs in a calculated manner,
he admits that "million of dol
lars were spent in developing
the turbine car."
The presentation of the first
HEADS CHRYSLER - Lynn
Townsend, architect of the in
dustrial comeback of the Chrys
ler corporation, is shown in a
1960 photo. (UPI)
of the turbines to Richard E. ler Inn at Chicago with its jet-1 will drive the cars for three
viana, Broadview, III., was just engine whine, it marked tne De- montn periods.
the start. When the car pulled ginning of the test evaluation If the turbine car catches on,
in front of the plush Watertow- program whereby 200 motorists Chrysler will have the jump on
the rest of the industry.
And that's what Townsend has
been aiming for since he took
over.
SNOWDRIFT
SlWWirl3l
3-lb.
Can
I k J r-i I Limit
I rVy One
U V y Please
Always Lots of
Good Food Buys At .
WHITE CITY
A "ie " "" Z-4i!l 'v,0-'" -r
Sign your own declaration of independence
You can do a lot for your independence
financially and personally just by signing a
slip of paper, like the one above, in your
employer's office.
The paper is an application for the Payroll
Savings Plan. It authorizes your employer to
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purchase of U.S. Savings Bonds.
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Why not tell your employer you want to join
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And see if you don't feel pretty good about it
when you sign your name.
Quick facts about U.S. Savings Bonds
You gel $4 for every $3 at msUurity
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stolen
You can buy Bonds on the Payroll Savings Plan
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f2it
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