Monday, Feb. 11, 1929

Childs' War

Shiny, sanitary and serene are Childs' restaurants, home of white table tops, of gleaming nickel, of starched waitresses. In the windows, immaculate young ladies flip purest batter-cakes to the attraction, the invitation, of passersby. Old or new Childs' restaurants are superficially models of efficiency, of smoothness, of business divorced from friction.

But in Childs' executive office is war, with hard feeling, recrimination and bitter, bitter words. Last week came upheaval, with casualties of one president, one secretary, one legal counsel, one Executive Committee. In their places came a new president, new secretary, two new vice presidents, no new Executive Committee. Victorious, at least temporarily, was Founder William Childs, who last December was deposed as President and installed in theoretical passivity as Chairman of the Board. Mr. Childs regarded his Chairmanship as no honorary position. Securing a 6 to 2 control of the directors, he last week bodily removed the "usurping" executives and replaced them with members of his own family. For the time being at least, the Childs' restaurants (125 units, $37,000,000 capital) returned to the Childses.

The Cast. Principal characters in the conflict may be listed as follows:

WILLIAM Hero, Chairman of the board

LUTHER Brother of William, President

ELLSWORTH Brother of William, Treasurer

VICTORIA CHILDS Wife of William, Secretary

E. ELLSWORTH Nephew of William, 1st Vice President

W. S. Nephew of William, 2nd Vice President

S. WILLARD SMITH Ousted from presidency

A. BARBER Ousted as counsel

L. E. BUSWELL Ousted from secretariat

ELIHU ZWILLING Villain, leader of anti-Childs stockholders.

Mrs. Victoria Childs is a onetime secretary of Mr. William Childs. They were but recently married (TIME, Feb. 6, 1928). In the background looms the corporate figure of E. I. du Pont de Nemours & Co., which is rumored to be the rod and staff of the anti-Childs faction.

Vegetables. Mr. Childs' alleged devotion to vegetarianism and resultant consumer dissatisfaction with the Childs' menus furnished the chief indictment of his management. Last spring (TIME, March 19) and last summer (TIME, Aug. 13) stockholders led by Mr. Zwilling protested against the Childs' food policies, secured the insertion of Childs' advertisements which announced "New Bill of Fare," and offered "Meats for the Meat Eater" and "Fruits, Cereals, Fresh Vegetables, Dairy Products for Health and Economy." In spite of this concession, Childs' customers continued to diminish. During the first three quarters of 1928, Childs' profits decreased $277,099. Much even of the diminished profit resulted not from restaurant operation but from sales of real estate. Actual operating income dropped from $1,936,906 for the first nine months of 1927 to $695,414 for the first nine months of 1928 -- a decrease of almost 65%. So last December Mr. Childs was removed from the presidency, and S. Willard Smith put in. It was at this time that rumors (still widely believed but never officially verified) became current that the du Ponts had bought control of Childs, that Mr. Smith represented a new and pro-meat management. Then, last week, Mr. Childs returned from his Elba and executed his coup d'etat. His tenure of office depends upon his securing a majority of 411,536 votes & proxies at the March 7 stockholders' meeting.

Recent Childs' advertising has announced that Mr. Childs believes in giving the public what it wants, that the "meatless menu" argument is a fiction "insidiously" fostered by the anti-Childs faction. Persons familiar with Childs' restaurants, however, will recall such menu items as "Savita" seasoning and "Meatless Turkey," will also remember the menu-sermonettes which cited ancient Greeks and various famed vegetarians, urged all to get "vegetable-wise."