 Lange,
who was born at Rostock on the Baltic Sea and had been with the American
Company since 1886, started with the advantage of having been in charge
for several years of a works almost identical with that at Trafford
Park in construction, equipment and products. In fact, he often said
in later years that no problem, manufacturing or human, ever arose
at Trafford Park that he had not dealt with at Pittsburgh. Be that
as it may, he infused a new spirit into the organization. He came
to work with the men at 7 a.m. and on most mornings would make a round
of the shops, tightening up efficiency and production.
He
was accessible to all and won the respect of staff and workpeople
alike by his absolute fairness, a feature of his administration
that is still remembered. In the shops his early morning rounds
resulted in everyone getting off to a quick start, and he would
meet staff members arriving late and solicitously enquire which
department maintained them—from him an unfailing corrective.
Matters
began to improve slowly. By the end of 1906 production had increased,
and factory expenses were down; the payroll had been materially
reduced, and all the engineering and sales management staffs had
been transferred to Trafford Park, which became the Company's head
office. The American Company took up more debenture stock, making
a total of £1,125,000 in five years, and in January 1907 the
capital was drastically reduced—by 40 per cent on the preference
shares and 50 per cent on the ordinary. This proposal J. Annan Bryce,
tweed-suited but reputed a wealthy banker, had to put before the
annual general meeting, and in the ensuing discussion the shareholder
previously quoted was at his best: "a pistol at their heads...,
obsolete machinery and old iron. .., useless experiments ..., a
tale of woe ..., reputation ruined ..., they had lost their money,
their credit and their good name".
It
was strong medicine to swallow, and it ought to have been effective
in clearing the Company completely of financial embarrassment. But
this was reckoning without America and George Westinghouse. The
latter had early acquired the habit of relying on personal friends
and stockbrokers rather than on banks and syndicates for financing
his enterprises, and he had invested his own money liberally. This
process often involved heavy borrowing and brought periods of embarrassment,
and, when in 1907 a sudden financial crisis paralysed the commercial
and industrial activity of the United States, it brought disaster.
With his loans called in and no powerful banking interests to protect
him, Westinghouse was unable to prevent three of his largest concerns,
including the Electric and the Machine Companies, from falling temporarily
into the hands of the receivers. Thus, just when Lange's reforms
had encouraged the British Company to hope for better things, it
lost its main source of financial support. Output was still increasing,
but an immediate loan of £250,000 was necessary if the Company
was to discharge its obligations and carry on clear of debt.
In
this crisis Carlton, by now sole managing director, rendered yeoman
service. Immaculately dressed with shining top hat and carnation
or camelia from Dinah the Norfolk Street flower girl, he backed
himself to face the City with equanimity,
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