Bloodless Abdication

Last Friday 18 directors of General Electric Co. marched solemnly into the green Directors' Room on the 48th floor of G.E.'s pink Manhattan skyscraper. They sat through the reading of the minutes. Then, white-haired, sparky G.E. President Gerard Swope rose to his full five feet four inches, read to the assembled directors a letter, while Board Chairman Owen D. Young puffed a pipe. Nobody was taken by surprise. The previous evening they had all had a quiet evening talking about it at the Metropolitan Club: after serving 17 years together, and reaching G.E.'s retirement age of 65, Swope and Young wished to retire on Jan. 1. The directors then elected a new president and chairman (both of whom had, the evening before, been congratulated on their forthcoming election), voted a 65-c- dividend, and adjourned.

Thus, two of the land's biggest tycoons handed over one of the land's biggest corporations to their successors. It was a fine thing for G.E. to have as board chairman one who forced down the throats of European politicos a 70% reduction in German reparations, and who was now & then mentioned for the U. S. Presidency as a public-minded businessman. Likewise it was a fine thing for G.E. to have Gerard Swope for president, because though he concentrated on operations, he went about a good deal, was on any number of boards and committees in Washington. To become such public figures G.E.'s new heads, unknown to the public, will have a long way to go.

To replace Swope, G.E. chose big, 53-year-old Charles E. Wilson, who went to work for G.E. at 12 (wage, $3 per week), never left it, worked as office boy, shipping clerk, factory accountant, production manager, sales manager.

To replace Young, G.E. chose a handsome engineer-lawyer (B.S. in engineering from the University of Wisconsin, LL.B. from Fordham) named Philip D. Reed, who went to G.E. in 1926, worked mostly in the lamp department. Today Philip Reed is only 40.

Biggest thing on either man's public record is, by all odds, being chosen by Young and Swope. In 1937, when Wilson was vice president in charge of merchandise and appliances, and Reed general counsel to the lamp department, they were plucked and made respectively executive vice president and assistant to the president, there to ripen in the hands of Young and Swope. Last week's news was formal recognition of their coming of age.

This file is automatically generated by a robot program, so reader's discretion is required.