Ebbw Vale Again

About five years ago Sir William Firth, handsome kinetic chairman of Richard Thomas & Co., Ltd., -L-23,000,000 British steel firm, decided that Britain should have at least one modern continuous strip rolling mill, U. S. type. He got his mill (at Ebbw Vale, South Wales), but in financing it he lost control of Richard Thomas & Co. First his own bank, Lloyds, refused a loan, called in an overdraft, nearly strangled Thomas & Co. with a working-capital shortage. The Bank of England agreed to make the loan, but extracted an issue of prior-rights stock and put some of Sir William's chief competitors of the steel cartel (whose mills are oldfashioned, high-cost) on his board. Sir William soon ran afoul of them, was ousted (TIME, May 27).

Next, Britons heard an ugly rumor (still unconfirmed because of defense regulations) that the Ebbw Vale mill, most efficient sheet mill in the British Isles, was lying one-third idle because the Steel Control Committee, a semi-official front for the Iron & Steel Federation, was giving preference in Government orders to cartel-owned mills.

Last week it was the turn of Thomas & Co. stockholders to grouse at the Federation-controlled Management. Gathering in the River Plate House in Finsbury Circus, London, they wanted to know why, since Firth was ousted, their once profitable stock had paid no dividend. Chairman the Earl of Dudley did his best to explain. "It's imperative that a strong liquid position should be maintained. . . . Your directors regret that in spite of the substantial increase in profits it has not been possible for a dividend to be paid. ..." He spoke foggily of the dealings between the Steel Control Committee and Sir William, ended with: "In this time of national emergency it would be inadvisable to enlarge publicly upon the nature of the differences within the board."

Shouted the stockholders: "Rot," "Nonsense," "I protest."

Up rose Sir William. Said he: "About two years ago, in very dirty weather, some pirates pushed us on the rocks and boarded us, disguised as 'national interest men.'" The need for state control of industry he could see, he said, but "It's going altogether too far when . . . this company has earned -L-3,170,000, to withhold the whole of its earnings."

One stockholder moved that the meeting be adjourned for a month so that the Board of Trade could investigate. All stockholders but one voted in favor. But the Earl of Dudley exercised the Steel Committee's controlling vote. Demanded Sir William: "Do you intend to outvote every resolution which is contrary to your wishes?"

"Yes, sir," said the Earl.

Furious Sir William once wrote to a friend in the U. S.: "The man isn't born yet who can fight me." Last week he told newsmen: "I shall give the whole facts to the public. . . . The public should know what can happen in this free country."

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