Trading results improved steadily on the basis of economical administration and efficient manufacture. By the end of 1910 the profit and loss account showed a credit balance once more, in spite of trade depressions and severe competition. Nevertheless, though profits were continuing to rise they were still far from providing for any distribution to the shareholders.

In 1910 the Company lost its managing director, Newcomb Carlton, who was appointed vice-president of the Western Union Telegraph Company. He had filled his position with great distinction, showing energy and foresight through a critical period. Although departing for a highly valued post in his own country, he felt the break acutely, and when P. A. Lange broke the news to a gathering in his office Carlton, under the stress of the occasion, could only respond and tender his farewells with difficulty. He was left in no doubt that all present were conscious of the loss they were to suffer and of the end of a phase that had meant much to them personally and to the Company.

Fortunately Lange was still at the helm at the works, where his reforms were now bearing fruit. He had joined the Board of the Company in September 1909, and in August 1913 (after a period of rule by C. A. Park, previously superintendent of the carriage department of the London and North Western Railway) he was appointed managing director.

Despite the railway and coal strikes of 1911 and 1912 output had continued to mount slowly, and prospects became more favourable. During 1913 the capital was reduced by £725,000, and a preference dividend was paid for the first time since 1903. The gilding of the lightning symbol on top of the water tower, at Miles Walker's suggestion and expense, was a sign of growing optimism. The teamwork that had been inspired and developed by Lange had produced an efficient and well organized undertaking ready to meet any demands.

CHANGES AT THE WORKS
The engineering and manufacturing organization grew up haphazard and was at first in a somewhat misty state. This was clarified in October 1910, when Lange set up three main departments—electrical machine with M. A. McLean as superintendent, engine (including turbines) under H. Mensforth, and detail under A. M. Randolph, who now covered