Rustless Victory

One of the first things that tall Charles Shipman Payson did after he graduated from Yale in 1921 was to marry Joan Whitney, daughter of the late Sportsman-Tycoon Payne Whitney and niece of the late Sportsman-Tycoon Harry Payne Whitney. One of the next things he did was to become interested in taking sugar syrups from Cuba to the U. S. Refined Syrups, Inc. made no money, claimed two engineers, until they suggested to Charlie Payson that he ship syrup sufficiently low in sugar content to dodge the $40-a-ton duty, pay 83-c- instead. Because this solution fermented within ten days, the engineers told him to ship a heavy solution, halt the tankers at the three-mile limit and dilute with water. This Charlie Payson did, but the engineers later sued for $500,000 as their pay for the plan. Charlie Payson stoutly maintained that the scheme was developed in their own laboratories. The suit was settled out of court. Meantime the tariff was changed to spike just such smart ideas.

Last week Charlie Payson made news with another suit. This time it was for Rustless Iron Corp. of America of which he is chairman and chief backer, and this time he won a clear victory. Rustless Iron was launched in 1926 to exploit the U. S. rights to a simple process for making stainless steel, developed by a fat, genial Briton from Sheffield named Ronald Wild. The Wild process combines chromium and steel in one step where other processes take three steps. Shortly before Metallurgist Wild retired because of poor health in 1931, Charlie Payson became visible in the light of fireworks in Rustless Iron stock.

American Stainless Steel, licensing concern jointly owned by several big independent steel companies, and an alloy-making subsidiary of Union Carbide & Carbon promptly filed suit for patent infringement. The suit dragged out until last week, cost Rustless Iron nearly $500,000 and considerable business from buyers fearful thatthe company would lose the suit and make them liable for damages. So simple is the Wild process that Rustless Iron can make stainless steel at a substantially lower cost than other patent steels. Bulk of its $1,000,000 sales go to Ford, General Motors, American Rolling Mills, Superior Steel, U. S. Steel.

Chairman Payson handsomely fits the role of heading an up & coming steel company. His broad thorax bent at an oar on three Yale varsity crews. He is a member of the Foreign Policy Association, a trustee of several hospitals. Plump Joan Whitney Payson has borne him four children, is a partner in a smart book shop. Last month she registered her colors with the American Jockey Club, thus officially taking to horse racing like all the other Whitneys. Husband Payson travels much, drives an imposing Rolls-Royce, likes to cruise north in his yacht to Portland, Me. where his family have long been leading bankers. With a clear course for his Rustless Iron, he is now in a fair way to becoming dominant power in the sturdy young stainless steel business. His chief Rustless lieutenant on the technical side is Dr. John Otho Downey, a bright-eyed gentleman who until the War was a physician, then turned geologist, later economist, and now at 50 is studying law.

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