New Avco Chief

One month after its first birthday, pow erful Aviation Corp., $40,000,000 holding company, last week acquired a new president. Lean, sharp-witted Graham Bethune Grosvenor stepped down to vice-chairman of the directorate while gaunt, eye-glassed, solemn-looking but humorous Frederic Gallup Coburn stepped up from the directorate and assumed the No. 1 title. Avco published no reasons for the change but well-informed observers knew the following:

Pulling together 43 manufacturing and transport companies and a large investment concern into a cohesive, economical whole to the satisfaction of all concerned -- bankers, stockholders, experts, personnel -- was a superhuman task for any man to accomplish in one year, in a new industry. Graham Grosvenor, able graduate of Otis Elevator Co., had done the groundwork, defined the problems. Four months ago James Franklin Hamilton, a railroad man, was called in to head all Avco's transport operations which constitute one-third of the industry's total in miles flown (TIME, Dec. 30). Now Mr. Coburn is called in to tune up the manufacturing aspect of the business, to align the personnel throughout. That is the work he specializes in -- "Management Engineering." He belongs to the firm of Sanderson & Porter, whose clients include Federal Light & Traction Co., Na tional Distillers Products Corp., American Sumatra Tobacco Corp., American Water Works & Electric Co. Mr. Coburn's special ability has been enlisted before now by the directorates of R. Hoe & Co. (printing presses), Savage Arms Corp., International Gear Co. During the War he ran the Navy's aircraft factory in Philadelphia. After that he was with Bethlehem Ship building Corp. Born in Duluth 55 years ago, he was schooled at Annapolis and M. I. T.

Avco's stockholders, when they meet next week at Wilmington, will understand that the commissioning of Engineer Coburn does not signify sickness but progress in the corporation. He is not only to adjust but to amplify Avco's manufacturing. Plans include new giant seaplanes, a new line of motors.

Financially the company is in such shape, after taking $1,443,822 loss last year and squeezing out a lot of stock water, that Standard Statistics said of Avco stock last week: Selling considerably under its current breakup value at around 8 and possess possibilities of the more speculative type for slow and gradual appreciation over an extended period. (The 1929 High was 20. 1929 low: 4 1/2. High this year: 9 7/8; low: 4 3/4).

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