TUESDAY, APRIL 21, 1953 THE MICHIGAN DAILY PAGE THREE -U BUSINESS DEVELOPMENT: University, City Expand Together City Attracts Varied Industry * * Several Manufacturers Sell on World Markets By ARLENE BELL A side of Ann Arbor which Uni- versity students seldom see is the industrial activity going on in and around the town. There are some 64 industrial concerns, large and small, making everything from ice cream and ball bearings to traffic lights and cameras. They do their business, for the most part, in Michigan and out-states, but many have foreign markets also. * * * A FEW of the businesses with national reputations had their origin in Ann Arbor, with the University playing a part in some instances. One of these is the King- Seeley Corporation. In 1919 Prof. Horace King, a hydraulics expert in the engineering col- lege, conducted an experiment in one of his classes demon- stating the factors in the rise and fall of liquids in a curved tube. He began wondering if the prin- ciple might haveaspractical ap- plication in industry. At this time, there was the problem in the infant automotive industry of how to tell when a car's gas tank If was empty. Usually, one had to insert a stick in the gas tank to gauge the amount. Prof. King conceived the idea of using a curved tube to in- dicate the gas level in the tank. He told his friend, Halstead Seeley of the plan, and the two of them went into business in a second story room on Maynard St. making fuel gauge indica- tors. Now the company makes not only fuel gauges, but speedometers and governors for some of the major automotive companes. At the Ypsilanti plant, power and wood-working tools are made, and motors are produced at another branch in Menominee. During World War II, the com- Local Labor Force Studied Because of the prominance of the University in town life, Ann Arbor has more professional people than any other catagory in the labor force. Clerical and sales people come next in numbers and are followed by workers in service industries, semi-skilled, skilled and then un- skilled. The above groups make up more than a third of the work- ers in the county. Employment in the county is not affected by the Detroit situa- tion, and has remained rather static for the past two years. Some seasonal unemployment exists but in general there are job openings in most fields, with the greatest demand for stenographers and typists. Most of the county's 50,000 workers come from within its boundaries although the Kaiser- Frazer plant at Willow Run draws a considerable number from out- side the county. pany made proximity fuses for atomic weapons under a govern- ment contract. . * * ANOTHER Ann Arbor industry for which the University can claim partial credit is the Micro- metrical Manufacturing Co. In 1932, Ernest J. Abbott, who received his doctorate in physics at the University and was em- ployed in its research depart- ment, decided to set out on his own. He started a research organiza- tion which grew into the present company. The company no longer does research, but manufactures in- struments for measuring the sur- face roughness of steel. The in- struments are used wherever metal machining is done. Now, with world-wide markets, the business still operates from its Ann Arbor headquarters. * * * ONE OF THE largest manufac- turing firms in the city is Argus Cameras Inc., which employs more than 1300 persons. It was found- ed in 1931 by a group of Ann Ar- bor businessmen to manufacture radios, and was the first grm to design and develop an AC-DC table model radio. Radio sales are almost entire- ly seasonal, however, and in 1936 the company began the manufacture of cameras for the slack season. At that time, can- did cameras were just beginning to catch the nation's fancy, but now the company is the largest manufacturer of 35mm cameras in the world. Three Banks Hold Student, Town Funds Three banks handle Ann Arbor's financial dealings and provide services for numerous students as well. The city's major financial pic- ture is completed by one brokerage house, Watling, Lercen and Co. and the Ann Arbor Trust Co., which is one of the 50 strictly trust institutions in the entire country. * * A SECTION OF THE HOOVER BALL BEARING PLANT. Detroit Decentralization Af fecsAnn A rbor A rea WITH ASSETS of $44 million, the Ann Arbor Bank, organized in 1936, is the city's largest commer- cial bank. It founded a campus branch on S. University three years ago and serves many other students through its State St. of- fice. Second in the field is the 60- year-old State Savings bank with assets of 32 million dollars, and many student accounts. Now building a new $270,000 home for their business, the Fed- eral Savings and Loan Association is continuing its expansion which has quadrupled assets since 1941 to the 18 million dollar figure they stand at today. The bank concentrates mainly on savings accounts and mort- gages. A BRANCH of a Detroit firm, Watling-Lerchen is located in the Ann Arbor Trust Bldg.. and does much business for townspeople. The Ann Arbor Trust Co., cur- rently in its twenty-seventh year of business, has as33-member staff handling $20,000,000 in personal trust accounts and $28,- 000 in corporate accounts. It also serves as trustee and manager of Trust "A" Fund which is valued at approximately $3,500,- 000 and has 700 individual inves- tors. The company provides a frater- nity management service which is used by more than 201 campus fraternities and sororities. (Continued from Page 1) Ann Arbor's Athens Opera House, chief city amusement cen- ter, began a steady decline with the opening of University Hall's spacious auditorium in 1873 and continued with the introduction of the Choral Union and especially the May Festivals in 1894. * * * IN SPITE OF conflicts, the edi- tor of the Ann Arbor Argus in 1863 was prompted to write: "The University has done and is doing much for Ann Arbor and Ann Ar- bor can afford to do -liberally for the University . . . We reap its local benefits." That year, citizens donated $10,000 for a new Medical Bldg. and subscribed the same amount the next year for the Observa- tory. After the turn of the century, the University came to be realized as both a commercial and cultural asset to a generally non-industrial town located in the center of Mi- chigan's growing automobile pro- ducing area. Historian Noah W. Cheever saw the town as "an exceedingly liberal and democratic commun- ity. Most citizens are devoted largely to making money, but Ann Arbor is devoted mainly to making worthy and successful men and women." And in 1913, the Chamber of Commerce offered the other side. "(Ann Arbor has) a steady, sub- stantial business which not only provides for the needs of such a community but takes advantage of the stimulus afforded by pre- sence of the student body." Glaciers Fix Area Geology Ann Arbor's rolling, glaciated topography is a geologist's dream. Formed as the last great ice sheet-the Wisconsin Glacier-re- ceded from the continent, the landscape abounds with eskers, moraines and other glacial depos- its. Frequently when excavating for a new building, engineers come on a new geological find, as the time when a steamshovel uncovered an interesting deltaic formation. But the predominantly gravel glacial soil must be watched care- fully when erecting buildings, for in the past sinking has developed and caused huge losses. longer relies on the city for on- the-spot donations, relations be- tween Main St. and State St. are no less close today than in the past. A two-year-old University Relations Committee smooths out mutual traffic and land jurisdiction problems, the most recent example being city an- nexation of North Campus ter- ritory and University agree- the site. According to Mayor William E. Brown, Jr., .present relations are "gpod" and University faculty members contribute substantially to the running of local government affairs. "A quiet spot in touch with the world' may no longer apply to what is now a semi-industrialized city, but the theory that the University provides cultural advantages along with a non-industrial basis for income-is still strong. ANGELL ANNEX--Symbolic of the new University development is the Angell Hall addition from which students are hurrying back and forth at class change. THOUGH THE University not ments to build a fire station of By BECKY CONRAD "Ann Arbor is in the path of the decentralization of industry out of Detroit," according to Robert Gage, manager of the Ann Arbor Chamber of Commerce. Due to the subcontracting of automotive parts, employment in the city's 89 manufacturing and processing industries has jumped The company no longer makes from 4,100 to 7,100 since 1950. radios, but concentrates on the .* still camera and equipment field. ALTHOUGH the University, of Lately, however, it has been en- course, has no effect on the local gaged in making optical instru- manufacturing scene it does have ments for directing gunfire on a profound effect on local retail- inc Thi qAA lpnio An Arhn Army weapons. One such instrument is used on a 75mm anti-aircraft artillery gun named the "skysweeper." The parts Argus makes for this elec- tronically controlled gun are two direct fire telescopes and a sight- ing telescope fo rthe radar screen. These are but a few of the ex- amples which show that Ann Ar- bor is not only a university town, but a thriving industrial commun- ity, serving the nation. * * * BEGUN IN 1916 as a company which made balls for roller skates, electric motors and wheels, the Hoover Ball and Bearing Co. is another world famous firm with its home in Ann Arbor. A decade after its founding it added the manufacturing of bearings to its production list and now has announced sales in the seven million dollar range. Only four years old, but already involved in markets all over the world is the Economy Baler Co., which started production in town. Specializing in the manufacture of baling machines for cloth, paper and waste materials the company has a three million dollar annual volumne on its products, which weigh up to 25 tons apiece. ing.t ne u eaang AnnArbor retail businesses, depend to a large extent on campus trade. During the summer school break from August 15 to Sep- tember 15, many retailers, such as dry cleaning establishments, bookstores, and restaurants in the S. University-State St. area close up shop for remodeling or vacations. The mass student exodus from Ann Arbor has a snowball effect because the loss of vacationing businessmen and their families slows down the Main St. retail patronage. City Budget Set At $1,775,000 With a budget of $1,771,555, Ann Arbor operates dozens of special services for the city's residents. Besides providing more than $500,000 worth of protective police, fire and health services, the city expends $400,000 on public works, $150,000 on park department acti- vities and $500,000 in special pro- jects. The remainder of the budget funds goes for administrative dnd miscellaneous expenses. Retail sales in the highly com- petitive Ann Arbor market last year hit between 75 and 80 million dollars, Gage commented, a rapid increase from the 20 to 30 mil- lion dollar gross before the war. Sales in local retail businesses vary from $5,000 to two million dollars yearly. SMALLER manufacturing and service industries include the pro- duction of machine tools, food, novelties and other specialized pro- ducts and public utilities. Seven of the 89 local firms process food, five are laundries, seven printing and publishing houses and three public utilities. Forty-one companies are involv- ed in the production of machines, instruments and other prevision parts. One of the chief factors for Ann Arbor's emphasis on precision manufacturing is the primarily German background of its citi- zens, lending itself to toolmaking and other types of metal crafts- manship. The remaining 27 Ann Arbor industries are scattered over a wide variety of manufacturing interests. "As to the future, Ann Arbor, with its location near centers of education is the ideal spot for research industries," Gage said. "Chamber of Commerce industrial development activities will con- centrate on the research phase of industry." 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