Radiator & Snowball

As heavy a corporate name as any in the list of heavy industries is American Radiator & Standard Sanitary Corp. At the end of last year this $150,000,000 heating & plumbing company was operating at 88% of normal (1926). A $20,000,000 annual profit in 1929 had turned to a string of deficits. Last week, however, in a voice which could certainly be heard as far as Washington. Board Chairman Clarence Mott Woolley roared to a reporter in his great black & gilt Manhattan headquarters:

"We are filled with gratitude to the Government. Men in the building industry carry in their hearts a genuine and profound appreciation. I have always been a rank Republican, but I take my hat off to President Roosevelt!"

What excited this oldtime salesman, who got his start lugging a sample 50-lb. radiator section around the Midwest, was the first upturn in his business in six years. And Mr. Woolley credited it entirely to the Federal Housing Act which provided, among other things, for partial Government guarantees on repair and remodeling loans up to $2,000 (TIME, Aug. 27).

In the first two months of the Federal Housing Administration's drive American Radiator business had jumped 40% ahead of the same months of 1933, said Mr. Woolley. In the first two weeks of October sales were up 75%. "And remember." said he. "that only the home repair loan section of the Act is effective as yet. When Title II, providing for financing of new homes and apartments, goes into effect in November, the building trades will get another sharp step forward.''

Even F. W. Dodge's building figures, which do not include all of the small repair work which FHA is promoting, showed a clean 100% gain for alterations and additions in the first nine months of 1934. FHAdministrator James Andrew Moffett's desk was high-piled with such messages as: ''Sacramento reports 1,000 increased employment in the building trades this month over last. Material dealers extremely busy and painters not to be had.''* Companies like Johns-Manville, National Radiator. U. S. Radiator, Sears Roebuck, were all cashing in on the great drive for home renovation.

The actual figures were not impressive. Mr. Moffett estimated that $50,000,000 worth of work had been launched. The important thing was that the drive was snowballing month by month, week by week, day by day.

* Last week Mr. Moffett's estranged wife, Adelaide, died in Manhattan (see p. 62)

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