Springfield Weekly Republican

FAVORS PLACING

CONTROL OF STOCK

WITH DIRECTORS

N. E. Council Head Says Lyman Mills Liquidation Common Danger

THINKS TRUSTEES

WANT PROFITS ONLY

New England Body and Virginia Organization Aroused by Speech of Brother of Governor of Connecticut

Poland Spring, Me., Sept. 16—(AP)—President John S. Lawrence of Boston discussed several subjects in addressing the eighth quarterly meeting of the New England council today, but the one which, perhaps, attracted most attention was the recommendation that the holding of controlling stock by trustees in corporations engaged in active manufacturing operations should be transferred to active directors in such corporations.

President Lawrence said that in the general opinion of the businessmen of New England such transfer of operations to active directors would operate to amend conditions that now are rather acute. He referred to the Lyman mills at Holyoke, Mass., whose trustee-directors have recently discussed liquidation, because the prospects of future profits, if any, are not very assuring, adding that similar conditions exist rather widely in the textile industry in New England.

Would Transfer Control

He recommended that the transfer of operating control from trustees of the stock to active directors of a company would tend to improve such conditions by placing control in the hands of those highly interested in the success of the operations of the business as such, as against the conservation of assets merely as an investment.

A. Lincoln Filene of Boston, chairman of the council's research committee, announced that the industrial research agents of New England have formed an organization which is ready to appoint a special committee of its members to make investigation of the possibilities in New England of manufacturing supplies for aviation.

Chairman Filene said this had been done so that New England may not by neglect at this time lose an opportunity to participate in a manufacturing field of the future which promises to be very large. It should be remembered, he said, that by such neglect in the early days of automobile manufacturing these states lost an opportunity to largely participate in that vast field.

Virginia-New England Exchanges

At the session tonight of the New England-Virginia conference and the New England council, Mayor J. Gordon Bohannan of Petersburg, Va., said the products of New England farms, forests, fisheries and factories should be exchanged in greater volume for the raw materials from Virginia's farms, her power-producing fuel and the products from her manufacturing plants.

He spoke in behalf of the Virginia delegation in response to an address by W. S. Rossiter of Concord, N. H., chairman of the New England-Virginia conference, who said these two sections are facing the common problems of "civic maturity" and should establish a mutual interchange of ideas and experiences in the solving of those problems.

"Virginia and New England are practically of the same colonial and state age," said Mr. Rossiter, who also pointed out that these older states are in direct competition with younger states for a "favorable state balance of trade." "To continue effective," he said, states must maintain virility—that is, creative power, new youth and keep their people alert and progressive. It is a colossal task anywhere to combat the effects of age. Yet that is your task in Virginia and ours in New England."

Poland Spring, Me., Sept. 17—(AP)—The eighth quarterly conference of the New England council and the joint session of the New England-Virginia conference with the council were adjourned today.

Much discussion was aroused by a statement by Henry Trumbull of Plainville, Ct., brother of Gov. John H. Trumbull, that it was the view of Connecticut that the council should progress fully to the organization and consolidation of its objects in New England before it sought to extend its activities beyond the boundaries of New England.

Finally a resolution was adopted authorizing President John S. Lawrence of Boston to appoint a permanent committee, to be known as the "committee of external relations," to further the cordial relations already established with Virginia by the council, and to consider the possibility of advantageous relationships within this country or elsewhere, as they may arise.

Large Increase in Number of New Industries Seen

Poland Spring, Me., Sept. 16—New England is booming industrially and as a summer and winter playground the eighth quarterly meeting of the New England council was told today.

Preliminary reports of the first study ever made of the migration of industry in New England show that this section gained heavily in the number of industrial establishments started in 1926, and also in number of employees, the council's committee on public relations and community organization reported.

Col. Frank Knox, chairman, said the report was incomplete as not all industrial cities of New England had made returns. Cities and towns to the number of 135, representing a total population of 3,169,851, nearly half the population of the six New England states, had reported and the remaining cities and towns were expected to send in returns before the third New England conference in November.

The committee report showed that "in the 135 communities reporting to date, 194 industries were gained as against 70 lost." The report continued: "Of the 70 that left, 45 were business failures and 25 removed from the community. Of these 25, only six went to points outside New England, the others moving to points within New England.

Of the new industries reported, the majority were started with local capital and most of them small ones, capable of expansion. Of the removals from other points, 22 were reported as coming from other New England communities, 13 from New York, one from New Jersey and one from Ohio. Nineteen of these 194 new industries were reported as branch plants.

"The total number of employees in the industries reported gained is greater than in those reported lost. There is a total of 5871 employees in the 194 industries gained, as against 4507 in the 70 industries lost."

The committee stated that the figures proved New England gaining in her period of economic readjustment. Community organizations were urged to "keep books" on their economic status.

John S. Lawrence, president of the council, warned that New England industries must "seek out and develop new products and new methods best adopted to present production and sales organizations" if they are to meet the rapidly-changing conditions that are now taking place.