Hatchet Man Axed

Montgomery Ward's terrible-tempered Chairman Sewell L. Avery has had plenty of practice severing high-level employees from his payroll, including 32 vice presidents since 1931 (TIME, May 6, 1940 et seq.). Last week it was Sewell A very that was axed--as president of Cadillac-Soo Lumber Co., of Sault Sainte Marie, Mich. Cadillac-Soo Lumber was formed in 1923 out of three small companies, one owned by Avery and his brother. In 1946 Avery became president of the closely held corporation (with annual sales of about $1,500,000).

Sewell Avery, now 80, had his eye on the future--and set company policy accordingly. By filling up the treasury until the company's present timber reserves ran out--about 1960--he could then cash in his chips as low-taxed capital gains. Other shareholders not in Avery's 91% income-tax bracket wanted hefty dividends declared along the way. Avery had enough support to sack company men who opposed him, including Treasurer Waldo G. Murphy.

At the last directors' meeting, in Grand Rapids, the scales tipped against Sewell Avery. By a 5-to-4 vote, directors jacked up the dividend rate and ousted the fuming octogenarian. The man who lined up the opposition and became the new president: W. R. Murphy, 30, son of Waldo Murphy.

But at Montgomery Ward, things were still the same. During the week "resignations" were turned in by three appliance-division managers, all old company hands, and duly accepted by Sewell Avery.

Into the presidency of Philco Corp. last week stepped James H. Carmine, 52. Carmine, who has sold for Philco all his business life, started in 1923 as a Pittsburgh salesman, climbed to executive vice president in 1949. He was responsible for building the vast Philco distributor chain. As successor to William Balderston, 57, who becomes board chairman, Salesman Carmine has a top-priority job: tuning Philco's merchandising to a buyers' market.

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