General of Industry

LUCIUS DUBIGNON CLAY

AMONG U. S.

professional soldiers who have won star-studded reputations in the postwar business world, the out standing example is General Lucius DuBignon Clay, the compact (5 ft. 9 in., 170 tbs.), hard-driving chairman and chief executive of Continental Can Co. West Pointer ('18) Clay, 62, carried out one of the biggest logistical jobs in history as director of materiel in the Army Service Forces in World War II. After war's end, as commander in chief of U.S. forces in Europe and Military Governor of the U.S. Zone, he directed the reordering and rebuilding of a major segment of Germany, and fought the Russian blockade of Berlin. Since he joined Continental in 1950, he has used the lessons of his military engineer's career to triple Continental's sales (to $1.1 billion) and earnings (to $41 million), drive it from second place, well behind American Can, into position as the big gest U.S. container company. Last week General Clay pulled off an important maneuver: he settled with the Steelworkers Union for a threeyear, 28.2-c--an-hour package, thus averting a possible strike.

As the price of settlement, Continental Can-- and rival American Can-- will raise prices. But for Old Strategist Clay, that is only withdrawing to a well-prepared position. Continental has made two price cuts, totaling 3%, in the last year, will have to restore only 1 1/2% to meet the price hikes. "On the whole," says Clay, "prices will still be below the level of early 1958."

LUCIUS CLAY does not rest on his fame or his contacts (Continental has little Government business) to earn his $150,000 yearly salary. "Does he run the company?" asks a Continental executive. "I'll say he does. Not just 100% -- about 106%." Clay has a photographic memory that enables him to keep track of minute details, often confounds others with his knowledge. He is a relentlessly driving executive who needs little sleep, maintains iron discipline, is never wholly satisfied with the performance of his subordinates (all of whom address him as "general"). Says an old friend: "He is still the same old impossible so-and-so that he was in the Army -- and he still produces results." Clay got most of his results by applying military-organization methods to the vast complexities of Continental Can. He decentralized Continental's muscle-bound operations, gave wide responsibilities to men in the field. He mapped out staff duties clearly, set up a system of written reports and regular executive meetings (with prepared agenda to save time). Shortly after he took over, he decided that packaging was undergoing a major shift from cans to other materials, acquired more than a dozen firms in glass, plastic and paper products to protect Continental's flank. He spent heavily on research to develop new products, e.g., plastic bottles. The Government has not always approved, filed an antitrust suit to force him to get rid of a glass-jar company.

AS a result of his Army training, Clay likes to visit the troops. He tours all of Continental's 150 plants at least once a year, flying in one of the company's fleet of six planes. He gives exactly 24 hr. notice, has the plant manager meet him at the airport, gets a briefing on the way to the plant. He can cover an entire plant in from 20 min. to an hour. "It's a fascinating business," says Clay. "You get to the point where you walk into one of these plants, and when you hear the clang of tin plate it sounds like organ music."

Clay leads a busy personal life, occasionally entertaining old Army buddies in the ten-room Fifth Avenue apartment where he and his wife Marjorie live (two sons are in the service). He is a close friend of President Eisenhower, helped persuade him to run for the presidency. Clay has often been called to the White House to give advice, served in the Office of Defense Mobilization during the Korean war and wrote a report on U.S. highways at the President's request. When Clay, only a fair golfer, once shot a hole in one, the event was of such magnitude that the President first sent a telegram, then called on the telephone to congratulate him.

Despite his long working day, Clay believes that businessmen also have an obligation to give their time to public service, sits on many charitable and fund-raising boards. He is also an active member of the boards of General Motors, Metropolitan Life Insurance, American Express and the Chase Manhattan Bank. He has kept so busy in the business world that he has won a distinction of sorts: he is one of the few important World War II generals who has never written his memoirs--and does not intend to. "Who'd care?" asks Clay. "Once a job is over, it's over."

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