 Metropolitan-Vickers
began the new phase in its career with its existing works at Trafford
Park and Sheffield, with its staff and organization intact, and with
five of its former directors—Nash as chairman, Bailey, Cradock,
McKinstry and Peck. Financial control was now vested in A.E.I., and
the Group companies were encouraged to cooperate on all matters
of production, development, and research, an important asset being
a new arrangement for the exchange of patent rights and manufacturing
information with the General Electric Company of America. Nevertheless,
they retained their own identities and management and continued to
compete in the commercial field. The same broad lines of policy hold
good today.
Overseas,
the possibility of merging the commercial organizations of the Group
Problems of companies was considered, and in India and Australia
subsidiary companies were rationalization established to represent
A.E.I.; in Australia the joint company took over the local factories
that M-V and others had operated for many years.
Another
aspect of rationalization was that the Company gave up most of its
supplies business and also its special interest in the Cosmos and
Harcourts works. A new lamp sales department was set up to deal
with lighting work.
HOME AND OVERSEAS TRADE
The
stability of the A.E.I. group was soon to be put to a severe test.
Soon after its formation there were signs of a slump in trade: unemployment
increased, eventually approaching the three million mark, world
trade became disorganized and Britain was forced off the gold standard.
As a result there was not enough business to keep the works going
efficiently.
However
in 1933 trade began to revive. More orders came in, employment increased, and the works output rose to a record value in 1934. Two
years later came the first Government contracts in connection with
the rearmament programme, and by 1938 the Company was employing
nearly 16,000 people, twice as many as in the worst days of the
slump.
The
worldwide extent of the depression had a considerable effect on
export business. Another difficulty was the growth of economic nationalism,
which led the Company to start or extend the manufacture of light
products in some overseas territories. Nevertheless, much important
work was done, particularly for South Africa, South America, and
Australia. A comprehensive traction contract was obtained in 1935
for a 3000-V electrification scheme on the suburban lines of the
Central Railway of Brazil: it included multiple-unit trains, substations,
overhead line and transmission equipment, electric signalling and
point setting, repair workshop and car sheds. Sixty three-coach
train units were originally required and were increased by later
orders to a total of over a hundred equipments. The signalling installation
included power interlocking equipment, all-electric point machines,
searchlight automatic signals, and impedance bond track circuits.
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