Alarms and Excursions

Ian Lloyd

Chapter 4 in Rolls-Royce, 1978, pp 45-72 from Palgrave Macmillan

Abstract: Abstract Though it would be absurd to say that the outbreak of war in 1914 was completely unexpected, the extent to which expectation had led to action of any description is well illustrated by what happened at Derby during the first few days and weeks following the declaration of war. The board met immediately and authorised Johnson to ‘reduce the works wages to about one fourth by discharging about half the hands and allowing the remainder to work only half time’. He was otherwise ‘to effect such economies as he thought desirable’ and at the same meeting it was decided that the company ‘would not avail itself of the opportunity now possibly arising of making or assembling aero-engines for the British Government’. The possibility had obviously occurred previously but although Royce had been pressed to convert his car engines for aero work he consistently refused to do so on the grounds that they were unsuitable. The argument that other engines were even more unsuitable was not the type of argument which convinced Royce. Though Royce and Johnson had developed at Derby one of the most advanced engineering organisations in the country, the above statements bear eloquent testimony to the fact that the entire organisation was staggered by the outbreak of war and that the management had no idea whatever of the important contribution which a plant such as theirs was likely to make to the war effort, or of the consequent financial significance to the firm.

Keywords: Board Meeting; Government Contract; Supply Organisation; Main Contractor; Accounting Profit (search for similar items in EconPapers)
Date: 1978
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DOI: 10.1007/978-1-349-03911-1_4

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