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The famous vintage large sized business magazine -- with in-depth features and many pages of vintage ads -- Exclusive MORE MAGAZINES detailed content description, below! *
MAY 1961; Vol. LXIII, No. 5
IN THIS ISSUE:-
[Detailed contents description written EXCLUSIVELY for this listing by MORE MAGAZINES! Use 'Control F' to search this page.] * This description copyright MOREMAGAZINES. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
COVER: "Beginning a HISTORY of AMERICAN BUSINESS".
The frieze on the cover, which is from an old letterhead, shows the works of the Delaware Iron Co., of New Castle, in the nineteenth century. The portraits are of great representative American businessmen. Clockwise from top: Thomas Hancock, merchandising; Henry Ford, mass production; Stephen Girard, finance; Philip D. Armour, food products; Cyrus Hall McCormick, machinery; John Davison Rockefeller, oil; Isaac Merrit Singer, consumer products; John Jacob Astor, real estate; Edward H. Harriman, railroads; Amos Lawrence, manufacturing.
FEATURE ARTICLES: SUBJECT Titles and authors:
[For more detail of what is in each article, read summaries below].
How to Unchoke Our Cities by Gilbert Burck. (Third of a series on the Public Business).
Coca-Cola vs. Pepsi-Cola: The Competition That Refreshes by Alvin Toffler. Illustrated by Jerome Snyder.
A History of American Business by John Chamberlain . Part I: Free Enterprisers Before the Revolution.
Arizona Fundamentalist by Robert Sheehan.
Industry's Well-Dressed Workers (A Portfolio).
The Record Business "It's Murder" by Katharine Hamill.
The Master Fuel of a New Age by Lawrence Lessing.
The Mailbox (A Portfolio). [Photographs of mailboxes from around the world!]
The Incredible Electrical Conspiracy, (Second of two articles) by Richard Austin Smith.
Short, Regular features:
Letters to Fortune.
Businessmen in the News (Tillinggast of T.W.A-and others).
The Business Globe.
Editorials: The Enduring Structure; Which Dragon?.
Products & Processes.
Short Stories of Enterprise.
HOW TO UNCHOKE OUR CITIES: The connection between growing urban traffic congestion and declining commuter railroads is widely recognized. But the means usually suggested for dealing with this joint problem-- massive doses of federal subsidy for the railroads--would not really solve anything. A far more constructive approach is to wipe out the subsidies now going to the private automobile. Despite high gas and other taxes, most car owners do not pay their way. The vast acreage of prime land being taken for expressways, for instance, goes off the tax rolls (while the railroads pay taxes on their rights-of-way). The costs of parking and safety are seldom fairly assessed to drivers. The only way to confront the driver with the true cost of his trip is to make him pay a toll. The wider use of tolls in financing roads, at least in metropolitan areas, could do much to restore an Unrigged market to transportation. FORTUNE has examined what major U.S. cities are doing about their public-transportation problems. San Francisco is pushing a billion-dollar rapid-transit system; Philadelphia has tried first aid for its commuter lines; Baltimore is setting aside special highway lanes for buses. None of these plans face the central issue: putting transport in the free market and giving the consumer an unbiased choice between rail and road. This is the third article in FORTUNE'S series on the Public Business. It follows a discussion in March of the plight of the nation's distressed citizens, and an April report on the revolution in U.S. education.
THE COMPETITION THAT REFRESHES: "The men are taught to go out there and hate!" So a Pepsi-Cola executive describes the way Pepsi's salesmen train for their competition with Coca-Coca. Selling, advertising, promotion--the full arsenal of marketing carries the Coke-Pepsi war to most parts of the world. In Central Africa, Coke pays tribal storytellers to sing the praises of its product. In Nigeria and Ghana, Pepsi recently sponsored concerts by Louis Armstrong. Coke advertising is part of the scenery in 105 lands, and Pepsi touts its product in eighty-six. In the U.S. meanwhile, the two companies between them accounted for some 17.3 billion bottles of cola drinks last year. "Our imitator," as Coke calls Pepsi, once seemed a negligible threat. But since 1950, while Coke sales edged up by 67 per cent, Pepsi has fizzed up its sales 315 per cent. Pepsi's effervescent ten-year record was largely the making of one forceful man, the late Alfred N. Steele, a flamboyant merchandiser who once worked for Coca-Cola. To meet Steele's challenges, Coke has now dropped its proud aloofness. Its ads discreetly suggest that Coke is a better refreshment than any other, and it is offered in a variety of containers. The rivalry seems healthy: after a desultory decade, Coke ended last year with its best profit since 1949--about $35 million.
A HISTORY OF AMERICAN BUSINESS: In this issue FORTUNE introduces the story of American business enterprise from colonial times to the present day, written by John Chamberlain. The first chapter presents a gallery of pre-Revolutionary entrepreneurs. Among them: William Pepperrell, who built a thriving trade in lumber, fish, rum, sugar, naval stores, and ships and won the first baronetcy to go to a native New Englander; John Hancock, who dealt heavily in whale oil, flouted the British laws of mercantilism, and put a flourishing hand to the Declaration of Independence; George Washington, who tried and abandoned the tobacco business, produced flour, developed land, and was planning a canal to the Ohio when the Revolution intervened. Few men are as well equipped as John Chamberlain to distill the record of free enterprise in the U.S. Author of the much-praised study of economic thought and theory, The Roots of Capitalism (Van Nostrand, 1960), Chamberlain has been engaged in economic journalism ever since he graduated from Yale in 1925. He has contributed to the Yale Review and other journals, and has served on the editorial staffs of FORTUNE, Life, Barron's, and the Wall Street Journal. As a book re- viewer for the Journal and the New York Times, Chamberlain has probably read as extensively in recent economic literature as any man in America. He is currently engaged in a resurvey of the work of William Graham Sumner, who studied the New England community in its most inventive phase. The editors of FORTUNE are proud to present what they consider the most definitive short history of American enterprise ever to be published.
ARIZONA FUNDAMENTALIST: Can he bend the Republican party to his views? Can he provide leadership in Congress to thwart Kennedy's program? Has he a good chance for the presidential nomination in 1964? These are the questions everyone is asking about Barry M. Goldwater, the handsome, jet-piloting Senator from Arizona. A successful businessman, Goldwater is self-educated in the classics of political economy--the Federalist Papers and the works of Thomas Jefferson, John Locke, and Edmund Burke. 'lie has had brief exposure to practical politics and does not have the politician's eye for the trade; matters of principle attract him more than specific measures. Goldwater's major political appeal is his ability to articulate his conservative beliefs. As a result, the Senator is in great demand by college groups. He's the best fund-raising speaker his party has ever known. But he's seldom called on for advice by Senate Republicans; Senator Javits of New York, among others, would like to run in 1962 without Goldwater's colorful intrusion. But Goldwater's party influence is growing. A recent poli indicates that he is now more popular than Rockefeller among delegates who attended the 1960 Republican convention.
THE RECORD BUSINESS---"ITS MURDER": "No one with good business sense is in the record business," says one of the men who helped build the U.S. industry to its current output of a quarter-billion disks a year. "Our sales are ten times what they were in 1947. We wind up with the same net profit." Says another record man: "If we were selling soap, the more soap we sold the more money we'd make. But we are selling recordings of songs and each title is a different product." Nearly 11,000 new titles a year come into the market, and no one really knows what makes one title a big seller, another a "bomb"--i.e., a flop. A lot depends on hitting the "juve market" --the fickle, fad-prone, mostly female, teenage record buyers--exactly right. The big companies, Columbia and Victor, struggle along on a profit of around 5 per cent after taxes, while an independent producer can come up out of nowhere, sell a million copies of a disk, and make $75,000 after taxes on sk, and make $75,000 after taxes on a $1,000 investment.
THE MASTER FUEL OF A NEW AGE: Hydrogen, the lightest of elements, gives the weightiest promise of new usefulness to mankind in the Space Age. Through the technology now developing, it will improve man's food and fuel, refine and work his metals, provide him limitless electrical energy, and power his voyages to the stars. Security has previously cloaked many advances that science has wrought in the production and handling of hydrogen, particularly in its liquid form, which.was once considered impossibly dangerous. In the past five years a new liquid-hydrogen industry has sprung up, with about $40 million worth of plant. It now produces $13 million worth of the liquid annually. But this may be only a faint hint of what's ahead. The key to the new industry was the discovery of how to speed up the conversion of unstable orthohydrogen to a more stable form, parahydrogen. National Bureau of Standards workers accomplished this on a practical scale less than a decade ago. The conversion changes the spin of the planetary electrons of the intractable ortho molecules. Now liquid hydrogen may be carted about the country almost as casually as gasoline. Air Products, Inc., has been one of the pioneers in liquid hydrogen, but bigger firms such as the Linde Co. division of Union Carbide are active. The gaseous hydrogen industry has likewise benefited from new discoveries. Texaco and Royal Dutch/Shell are both widely licensing novel production processes.
THE INCREDIBLE ELECTRICAL CONSPIRACY, PART II: An embittered executive, a perplexed cryptographer, a government attorney's helpful college friend, a conscientious conspirator who kept the records in his cellar--all these are dramatis personae in this astonishing story of how the great electrical cartel was broken. This article, following last month's incisive report on the origins, motivations, and operations of the conspiracies, recounts the painstaking detective work that built the government's case and eventually sent seven executives to jail. It also illuminates defensive strategy at General Electric, from the day in 1959 when word came that a Philadelphia grand jury was about to hear some damning testimony, to the firing a few weeks ago of the last of the indicted employees. "One thing I've learned out of all this is to talk to only one other person, not to go to meetings where there are lots of other people," one of the conspirators said recently. Does his cynical and unrepentant observation represent a widespread reaction among U.S. businessmen? Or will the case encourage meaningful compliance with the antitrust laws? And can the industry solve the economic problems that gave rise to the cartel? In a concluding discussion, FORTUNE spells out some of the morals the case points for the whole business community.
TWO PICTURE PORTFOLIOS: "Industry's Well-Dressed Workers" (page 141) is a seven- page report, illustrated in color, on the exotic costumes that protect workers from the heat, cold, shock, radiation, poison, and corrosion that are hazards of modern production. The business of supplying these far-out habiliments has blossomed in the past decade, and now runs to about $20 million every year. "The Mailbox" (page 157) around the world is nearly as diverse as the human species. But, like human beings, mailboxes have common qualities determined by their function. Eighteen examples from nearly as many lands are shown here in color.
FROM THE DEPARTMENTS:
Business Roundup (page 49): FORTUNE'S quarterly survey of
businessmen's inventory plans.. . The welcome improvement
in the U.S. balance of payments.
The Business Globe (page 87): Kennedy's plan for Latin-
American aid . . . A three-page picture portfolio on Acera,
Ghana's colorful port.
Labor (page 231): Reuther's strategy for the next auto contract negotiations.. . Union problems of U.S. firms in Britain.
FULL PAGE vintage ADS include:
"Good are not bought. They are sold." For Young & Rubicam, Ltd. -- PLUS MORE FULL PAGE, and MANY smaller ads!
* NOTE: OUR content description is GUARANTEED accurate for THIS magazine. Editions are not always the same, even with the same title, cover and issue date.
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