Mr. Avery's Ex-Men

Akin to Hollywood's picture business is the business of retailing. Glossy, high-priced executives move from store to store, accompanied by troops of favorite underlings. Terms like "genius," "snake," "megalomaniac," are indiscriminately applied. Last week, in the gossipy lianas of the trade, the No. 2 U. S. retailer of general merchandise was getting more than his share of epithets. His name: Sewell Lee Avery, chairman of Montgomery Ward.

When Sewell Avery (then and still head of U. S. Gypsum) was put in charge of Montgomery Ward in 1931, it was almost two-thirds as big as Sears, Roebuck (in sales), but losing money. Last year Montgomery Ward was over three-fourths as big as Sears, had a record gross of $474,900,000, a record net of $27,000,000. To help Montgomery Ward in this famous comeback, Sewell Avery hired top merchandising talent from other jobs : Walter Hoving from R. H. Macy, Frank M. Folsom from Hale Bros. in California, Raymond H. Fogler from W. T. Grant, many another. At Montgomery Ward, they were known as Avery Men. Now they are anything but.

Early to quit was Walter Hoving, who went to Manhattan's Lord & Taylor (as president) in January 1937. Five months ago Frank Folsom quit, became chief executive officer of Goldblatt Bros. (Chicago department-store chain). Next resigned George W. Vaught, Montgomery Ward's treasurer, after 23 years with the firm. Last week came the turn of Montgomery Ward's $103,350-a-year president, Ray Fogler. Said he. "It was not because I have another position." Next day Chairman Avery assumed the presidency himself.

An apathetic stockholders' meeting queried Chairman Avery on differences of opinion. He said there were none, then smiled. "If anybody ventures to differ with me, of course, I throw them out of the window." To ex-Avery Men this remark did not seem funny. From trade talk and the facts available it appeared that the disagreements probably had two bases:

1) Avery's determination to step up the class of Ward's stock in trade--sell high-priced Oriental rugs, guns, etc. Last week Avery told reporters: "We no longer depend on hicks and yokels. We sell more than overalls and manureproof shoes."

2) Avery's preference for running a one-man show, keeping all the controls himself, playing and discarding favorites.

So far stockholders have had no reason to complain of either Avery policy. But ex-Ward executives, who call themselves the "Has-Been Club." predicted last week that their swelling membership (around a dozen) had not yet reached its limit.

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