Armstrongs of Elswick: Growth In Engineering And Armaments To The Merger With Vickers

315 Pages·1989·29.63 MB·English

by  Kenneth Warren (auth.)

ARMSTRONGS OF ELSWICK
STUDIES IN BUSINESS HISTORY
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Houndmills, Basingstoke, Hampshire, RG21 2XS, England.
Armstrongs of Elswick
Growth in Engineering and Armaments to
the Merger with Vickers
Kenneth Warren
Fellow and Tutor
Jesus College, Oxford
pal grave
macmillan
© Kenneth Warren 1989
Softcover reprint of the hardcover 1st edition 1989 978-0-333-49759-3
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First published 1989
Published by
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and London
Companies and representatives
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British Library Cataloguing in Publication Data
Warren, Kenneth, 1931-
Armstrongs of Elswick: growth in engineering and
armaments to the merger with Yickers.-(Studies in
business history).
I. Tyne and Wear (Metropolitan County). Newcastle
upon Tyne. Elswick. Engineering industries. Armstrong
Whitworth (Firm), to 1927
I. Title II. Series
338.7'62'000942876
ISBN 978-1-349-10996-8 ISBN 978-1-349-10994-4 (eBook)
DOI 10.1007/978-1-349-10994-4
For my father in appreciation
Contents
List of Maps and Figures ix
List of Tables X
List of Plates xi
Preface xii
1 Introduction: British Industrial Decline and the
Armament Trade 1
PART I THE ESTABLISHMENT, EXPANSION
AND DIVERSIFICATION OF ARMSTRONGS,
1847-85
2 The Foundation of Elswick Works and its Entry to
the Armament Business 9
3 A Managerial Team 18
4 Beginnings in Shipbuilding 21
5 Integration to the Mid-1880s 26
6 The Organisation of the Armstrong Company:
the Role of Andrew Noble 32
PART II INTEGRATION, ORGANISATIONAL
PROBLEMS AND NEW COMPETITORS, 1885-1905
7 The Emergence of Vickers 45
8 Acquisition and Integration: The Transformation of
the Armament Trade, 1896-1904 54
9 Elswick Leadership, 1895-1903 64
10 Problems of an Early Multinational: the Origins of
Armstrong's Italian Venture 69
11 Pozzuoli, 1890-1905 81
PART III DIFFICULTIES AND ADJUSTMENTS, 1905-14
12 Organisation and Efficiency in Complex and
Multiplant Operations 89
13 Managerial Skills: Armstrongs and Vickers 96
14 A New 'Complete' Armament Firm: Beardmores
of Parkhead 102
15 Armstrongs and Beardmores 109
16 Italian Business, 1905-14 122
17 Accommodating Increases in the Scale of Naval
Shipbuilding: The Question of a New Yard 128
vii
Vlll Contents
18 The Completion of Integration: Marine Engine
Manufacture 138
19 Company and Regional Diversification: The Case of
Automobile Manufacture 144
20 New Blood and the 'Succession' to 1909 159
21 The Salaries Crisis and the 'Concordat' of 1910-12 171
PART IV THE FIRST WORLD WAR AND THE
TRANSFORMATION OF THE FIRM, 1914-28
22 Armstrong Whitworth in the First World War 187
23 Early Stages of Reconstruction and Diversification
~~~-M~ 1~
24 The Problems of Diversifying into Commercial
Lines: The Instance of Scotswood Locomotives 205
25 Italian Business in the Twenties 210
26 The Newfoundland Project 214
27 The Crisis at Armstrongs to Late 1925 222
28 Into the Depths: The Threat of Collapse 233
29 The Reconstruction of Armstrongs and the
Rationalisation of the Heavy Armament Business in
1927 and 1928 242
30 Armstrong Whitworth and Vickers Armstrong
after the Merger 248
Epilogue 252
Appendix A: W. G. Armstrong and Co. and successor
companies, 1847 to 1928: a commercial and financial record 256
Appendix B: Members of the Board of Directors of
Armstrong Mitchell and successor companies, 1883-1929 261
Appendix C: Warships and other armed vessels built by
Armstrong Whitworth and its predecessor companies to 1912 263
Notes and References 264
Bibliography 281
Index 283
List of Maps and Figures
2.1 Elswick and Benwell, 1846 10
5.1 Elswick Works, 1887 30
16.1 The armaments industry in Italy, early twentieth century 124
17.1 Sites or works offered to Armstrong Whitworth,
1898-1912 131
17.2 The new Walker naval construction yard as planned, 1910 135
17.3 The layout of the Walker naval yard 137
19.1 Scotswood, 1894 and 1913 151
22.1 Armstrong Whitworth operations during the First
World War 193
26.1 Newfoundland and the pulp and paper industry in
the 1920s 216
28.1 Armstrong profits, 1883-1927 235
List of Tables
7.1 Share values of Armstrong Mitchell and Sheffield
firms, Autumn 1883 45
8.1 The dividend record of Armstrongs and other
armament/engineering companies, 1883-1903 55
12.1 Armstrong Whitworth gross profits and
employment by departments, 1900/1 90
15.1 Admiralty orders for hulls and machinery for war
vessels already ordered placed with Beardmores and
Sheffield firms, 1904-8 113
15.2 Capital expenditure of William Beardmore & Co., 1902-9 116
15.3 Dividends declared by Armstrong Whitworth and
Beardmores, 1902-9 117
17.1 Ships built by the Armstrong company at Walker
and Elswick, 1852-1907 129
17.2 Dimensions of selected British capital ships, 1906--18 130
18.1 Sources of engines for the 246 611 tons of warships
built by Armstrong Whitworth, 1897-1910 139
20.1 Armstrong Mitchell and Armstrong Whitworth
financial record, 1883-1907 160
20.2 Dividends of British armament firms, 1902-13 161
21.1 The great private builders of warships, 1911-12 182
22.1 War vessels built at the Armstrong (later Walker)
naval yard, 1914-20 191
23.1 Holdings by Sir W. G. Armstrong Whitworth &
Co. Ltd, 1926 203
25.1 Pozzuoliprofits, 1921-5 210
26.1 Capitalisation and earnings of Canadian pulp and
paper companies, 1924-6 220
27.1 British basic trades output, 1913 and 1920-5 222
27.2 British armament firms: dividend paid on ordinary
shares, 1913and 1920-8 223
27.3 Armstrong Whitworth departmental net profit, 1920-5 231
28.1 Armstrong Whitworth earnings account for
half-yearto30June 1926 238
28.2 Armstrong Whitworth assets, 30June 1926 239
28.3 Market price of Armstrong Whitworth £1 ordinary
shares, 1924-9 240
X