ATWOOD AUSTIN - EARLY HEC

 

November '86 - Dear Woody: Thank you for your memories. They shall be added to the material which the children have relative to this family. A copy will be sent to Emmett Eagan; he has been the company and family lawyer through all of these years. His memories will be added to what we already have.

 

One's point of view depends upon where one stands; one's memories depend upon one's self.

 

The brackets are my observations on whatever the material is in the line. 8-22-86

 

Ivabell:

 

Congratulations on your 75th, only regret that Allen will not be there to share with you and your family. [Allen had worn out early his numbered days; he always lived at double pace.]

 

Though our paths divided years ago, I have not forgotten the happy and interesting association with the Harlans in the late 30's and early 40's - I feel blest for the experience. As your children were young in those days, you and I and, perhaps, Emmett Eagan maybe the only ones remembering that interesting and exciting period. If you would be patient with me I would like to reminisce a bit on those days and correct me where my memory is faulty. [Because you, Emmett, and I are the ones who lived the years and their experiences, the children asked that I write what I recalled; Joyce asked, especially for the fun things which we did, the fun times which we shared.] The times, C. Allen's drive and this city which accepts those who come bringing their competencies have made it possible for this family to enjoy a great many benefits.

 

I first met Allen in the late 30's when he came to our investment banking office, Van Grant & Co., No.1 Penobscot Bldg. wanting to start an electrical contracting company in industrial work. Though we were financing only growth companies, rather than a new venture with no history of earnings, Allen sold us. [There, you see, I did not know how you and Van became involved in this project. The early meetings with Gudum and McNeil took place in the parlor at 284 Pilgrim, Birmingham; they were offered shares - how many, Emmett may know - if they would leave Turner's and come with Allen.] Harlan Electric was capitalized for $25,000. My interest was 25% (about $6,000 cash - all I had,) [Equalized topresent-day figures, $6,000 was a king's ransom!] Van Grant 40%, also cash, and Allen's was mostly promissory notes. [His only asset was himself; we were expecting Joyce, had a mortgage on the Birmingham house. I do not know if the cottage was mortgaged or no. You two were daring.] Gudum and McNeil may have had a small minority interest, probably nothing more than what Allen could give them, promises mostly. Allen was successful from the start. The timing was right. [Timing is such an important factor; today's children are faced with different problems and different opportunities which makes decisions difficult.] The major auto companies were retooling every year, which required electrical work beyond that of their normal electrical maintenance men. Shortly prewar the country began the development of major defense plants. Two incidents stick in my memory. [There was one time that Allen spent 48 hours installing a machine that had never been used before at the Dodge plant in the city.]

 

(1) The day shortly after the start when Allen said "Woody, we don't have enough to meet our payroll tomorrow" I was treasurer, "Woody, I think that I can phone Saginaw and get the GM people to give us a check on a partial billing". So I took the bus to Saginaw and the controller, routed out of his home after hours, met me at his office and gave me a check. The payroll was met, a thorny point with the unions if you failed to meet a payroll. [Response over and beyond the call of duty for you and for Chevrolet; would anyone today go to such lengths? He 'took the bus' to Saginaw; today he would have driven. How times change our responsesg and our means.]

 

(2) Early in the 40's Allen secured a several million dollars contract on a Chrysler [I always thought it was Hughes; the plan was to manufacture planes of wood to serve the war as freight carriers; the building never functioned as planned. The Spruce Goose was probably a member of that proposed family.] defense plant in New Orleans. I was shocked, "Allen, we can't finance such a large contract." At that time we had not done any bank borrowing. However with urgent persuasive needling I approached the Manufacturers Bank one Saturday afternoon with quaking knees. I talked with Mr. Verhelle, executive vice president, he was most courteous and friendly when I told him my problem. He said "First we must have your 'cash flow'-- what was that? Namely your estimate of income and expenditures by month for the life of the contract, "that will tell you how much you need to borrow." With the help of Ozzie Knopf and Allen I worked all day Sunday on a presentation. Monday morning I phoned Mr. Verhelle, a secretary answered "Mr. Verhelle is no longer with the bank". What a mental abyss but it did not worry Allen. We did approach the bank with another officer and obtained our $400,000 V loan, and it turned out to fit our needs. In spite of murderous humid heat [There was a strike by the garbage collectors that summer!] and our Cajun bookkeeper embezzling some payroll checks, and the fact we had to work with a local contractor to get union electricians, it was a successful job thanks to Allen's resourcefulness. Just the opposite the freezing winter job on the Soo locks zero cold, fortunately the U.S. Engineers recognized the working conditions and allowed the necessary extras to finish the job so the iron ore from Minnesota could keep the steel mills operating for the war effort. Their letter attached. [Allen had a great head for finances but no head for the details of cash - he had another light-fingered operator in Morgantown W. Va. I recall Allen's tales of the men on the Soo job watching one another for the tell-tale sign of a white spot on the face - sign of freezing. I wonder what had happened to Verhelle; it was his daughter who was son's - Joe - fourth grade teacher.]

 

I neglected to mention that Allen found an old livery stable near downtown Detroit on Hamilton Avenue for his first office and warehouse. It required some real labor to clean it up. [I never knew that it was a livery stable; that probably explains the presence of a steel central beam, about which Allen was very enthusedand which carried over-head materials so well.]

 

Once 15 or 20 years later [1960], as you may remember Ivabell, you and your family came on the way to San Francisco on your way to Hawaii. Allen said "What is your son, John, doing now?", when we all had dinner together. I told him, "John is going against my advice; he is selling "pots and pans" primarily to secretaries after office hours, how he gets their names I do not know." Allen said: "Woody, I'd like to hear his story". "Allen" I said "that's hardly possible as you're leaving for Hawaii tomorrow at noon." [C. Allen was always on time - some one else had the worry and the work - me. Just as Ozzie was his hatchet man, Allen was a total administrator - some one else did the work. He painted with a wide brush; details were for the little people.]

 

"Woody, you tell him to be at my hotel tomorrow morning at 8 o'clock, I'll find the time."

 

Later the next day, John called me at my office, so excited that he could hardly talk, "Dad, I've just sold the biggest order, full line of our pots and pans, and also china, and you know I did not even have the right order forms for a cash sale, almost all orders had been installment sales over many months. Mr. Harlan paid me in cash." This was all for Joyce's hope chest.

 

Allen and I about 1943 went down to the Navy Yard to enlist, Allen was accepted. I, with one eye only, was rejected. I never felt that the Navy made full use of Allen's talent, when I saw him later at the Bremerton Washington Navy Yard. [ You are right; the Navy never did use all of his talents. That is part of the political master plan: numerous people were sent from the Yard after the war to learn 'then' all that the Reserves had in their heads during their time of service. Bah! Politicians!]

 

I can take very little credit for helping Harlan Electric get started, for Allen's enthusiasm would have managed somehow without us. Allen was a unique and extraordinary man, so beauti- fully expressed in Dr. Gresham's eloquent eulogy. His wife and his children were fortunate to have him as a husband and father and I as a friend was likewise blest. [Allen was the fire; it took your help to ignite that flame. Money was hard to come by in those days as you are well aware.]

 

Perry Gresham is presently in a hospital with terminal cancer. So for every beginning there is an end but we, knowing, are never prepared.

 

Now to hear from Emmett for I shall send a copy of this material to him and a copy to John and another to Allen's youngest brother, Leon, who is interested in all of the details.

 

Take care and thank you.