Business: 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¢-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 1½% 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.