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Innovation, Monopoly, and the Supply of Vehicle Components in Britain, 1880–1930: The Growth of Joseph Lucas Ltd.*

Published online by Cambridge University Press:  11 June 2012

Roy A. Church
Roy A. Church
Affiliation:
School of Economic and Social Studies, University of East Anglia
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Abstract

From its beginnings as a supplier of lamps for bicycles in the last quarter of the nineteenth century, Professor Church follows Joseph Lucas Ltd., through three generations of management and several revolutions in the character of its trade, to its emergence as the largest supplier of components to British automobile manufacturers. Shrewd but rigidly upstanding business policies, a clear-headed view to the future, and conservative financing methods gave Lucas's the strength and flexibility to survive and eventually dominate a field that was constantly changing, and in which both domestic and foreign competition was an important factor. Lucas's management, watching the rise and fall of firms that were, as Professor Church says, “young, inventive, and financially weak,” might have agreed with Andrew Carnegie that “pioneering don't pay.” But Lucas's, like Carnegie, pioneered with great success where increased productivity, lower prices, and growth were the rewards.

Type
Research Article
Information
Business History Review , Volume 52 , Issue 2 , Summer 1978 , pp. 226 - 249
Copyright
Copyright © The President and Fellows of Harvard College 1978

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References

1 The recent origin of this debate is to be found in Richardson, H. W., “The New Industries Between the Wars,” Oxford Economic Papers XIII (1961)Google Scholar, and “Overcommitment in Britain before 1930,” Oxford Economic Papers XVII (1965)Google Scholar.

2 Automobile Engineering, January 1911, 2. For the relationship between growth of the British motor industry before 1914 and the emergence of specialist producers see, Saul, S. B. “The Motor Industry in Britain to 1914,” Business History, 5 (1963)Google Scholar.

3 The early history of the electrical components industry is described in the Monopolies Commission's Report on the Supply of Electrical Equipment for Mechanically Propelled Land Vehicles, P. P. XVI, 1963-4 (hereafter, Monopolies Commission), 14-19.

4 Monopolies Commission, 62-63.

5 Monopolies Commission, 17.

6 Peter, Percy and Rutter, Thornton, eds., Who's Who in the Motor Trade (London, 1934), 647.Google Scholar

7 St. John C. Nixon, The Simms Story (1955) 7-10.

8 F. R. Simms, The History of the Magneto (1940), 7-17.

9 Monopolies Commission, 14.

10 Lord Bennett, “Electricity on the Car” (typescript, 1956), Motor Trader, December 11, 1918.

11 Ibid. See also Monopolies Commission, 24-25.

12 D. Coles, “History of Rotax” (typescript, 1961).

13 Ibid, and J. Masterlin, “C. A. V. History” (typescript, 1949).

14 Monopolies Commission, 88-90.

15 Newspaper Cuttings on Birmingham Biography, Vol. 4, pp. 21-22; The Ironmonger, January 3, 1903, p. 7, June 27, 1903, p. 523.

16 Monopolies Commission, 23.

17 Harry Lucas's letter book, f. 51, July 28, October 2, 1880.

18 Letter book, f. 51, July 28, 1880.

19 Letter book, f. 126, October 5, 1880.

20 Letter book, f. 129, June 6, 1880; f. 131, July 7, 1880.

21 Letter book, f. 135, October 9, 1880, f. 150, October 16, 1880.

22 Letter book, f. 347, May 25, 1883, f. 511, July 28, 1884.

28 This ‘creed’ is contained in a letter from Harry Lucas to a traveller C. Hall, f. 794, August 27, 1885.

24 Letter book, f. 732, May 31, 1885. Time spent on prosecuting other people represented a misallocation of partners’ time, effort, and resources; f. 403, October 20, 1883, September 17, 1883.

25 Letter book, f. 128, October 6, 1880; f. 131, October 7, 1880.

26 Letter book, f. 112, September 29, 1880.

27 Letter book, f. 163, December 6, 1880.

28 Letter book, J. L. f. 747, June 22, 1885; f. 473, May 2, 1885; f. 886, February 10, 1886; f. 170, January 8, 1881; f. 240, May 11, 1881; f. 311, September 8, 1882; f. 323, November 9, 1882.

29 Letter book, H. L. to J. L. f. 500, July 11, 1884; H. L. to Mrs. Sexton, f. 929, November 8, 1883; H. L. to J. L. f. 698, May 7, 1885.

30 Letter book, H. L. to J. L. f. 698, May 7, 1885.

31 Letter book, H. L. to J. L. f. 732, May 31, 1885.

32 Letter book, f. 929, November 8, 1883; f. 407, October 23, 1883; f. 698, May 7, 1885.

33 Letter book, H. L. to J. L. f. 732, May 31, 1885.

34 The same number were employed by Miller and Company, Lucas's major competitor. Ironmonger, April 11, 1891, British Sport, January 7, 1891.

35 A. E. Harrison, “The Competitiveness of the British Cycle Industry 1890-1914,” Economic History Review, Second Series, XXII, 2, p. 288.

36 Prospectus X, Joseph Lucas Ltd., 1897.

37 The purchase price of the business was £170,000. Prospectus 1897.

38 D. A. Shadwell, Times Engineering Supplement, January 8, 1908.

39 The Cyclist, January 28, 1891, The Ironmonger, December 5, 1891.

40 The Ironmonger, November 8, 1903, p. 252; The Carriage Builders’ Journal, June 1901, p. 145.

41 For example, Abingdon Acetylane Illuminating Company, 1897; Acetylane Beacon Light Company Ltd., 1898 (capital £20,000); Acetylane Lamp Co. Ltd., 1898 (capital £5,000); Acetylane Lighting Co. Ltd., 1899 (capital £3,000); Acetylane Ltd., 1898 (capital £10,000). For details see Barbara M. D. Smith, “Bibliography of Birmingham Industrial History” (typescript).

42 Joseph Lucas Ltd., Directors’ Minutes, May 18, 1903; July 14, 1904; October 15, 1906; April 15, 1907; October 18, 1909; December 4, 1911.

43 The Times Engineering Supplement, January 8, 1908.

44 Investor's Guardian, December 11, 1915.

45 For example, see the business commentary on Lucas's affairs in The Economist CXIX, 4757, p. 788, CXXIII, 4838, p. 375-376. See also Monopolies Commission.

46 Joseph Lucas Ltd., Directors’ Minutes, March 2, 1908; May 6, 1912.

47 Joseph Lucas Ltd., Directors’ Minutes, May 6, 1912; July 14, 1913.

48 The other British firms manufacturing electric starters were Rotax, C.A.V., the Electric Ignition Co. Ltd., and the Chloride Electrical Storage Co. Ltd., and the Simms Magneto Co. whose managing director, F. R. Simms, had a connection with Bosch and was the only one of these companies, Thomson and Bennett excepted, inc. 1913. Lord Bennett, “Electricity on the Car” (typescript, 1956).

49 Joseph Lucas Directors’ Minutes, September 14, 1914.

50 Lord Bennett, “Electricity on the Car” (typescript, 1956); Motor Trader, December 11, 1918.

51 Monopolies Commission, 17-18. Joseph Lucas Ltd.'s balance sheets reveal the almost uninterrupted growth of sales and profits.

52 The Ryland Metal Trades Directories record an increase in the number of ignition equipment suppliers from 13 to 60 between 1902/5 and 1922.

53 Monopolies Commission, 24-26; Lord Bennett, “Electricity on the Car” (typescript, 1956).

54 Lord Bennett, “Electricity on the Car” (typescript, 1956).

55 Ibid. Harry Lucas acted as “consulting director” henceforward until his death in 1939, Joseph Lucas Ltd., Directors’ Minutes, March 15, 1920; August 16, 1920; November 6, 1922. Harry was 67 on retirement.

56 Lord Bennett, “Electricity on the Car” (typescript, 1956).

57 Joseph Lucas Ltd., Directors’ Minutes, March 16, 1921.

58 Joseph Lucas Ltd., Directors’ Minutes, June 29, 1921, February 21, 1923.

59 Special Reports from Joint Managing Directors on Future Development, January 17, 1922, February 1923.

60 J. Masterlin, “C.A.V. History” (typescript, 1949).

61 Joseph Lucas Ltd., Directors’ Minutes, July 19, 1922.

62 Lord Bennett, “Reconstruction and Expansion” (typescript, 1956).

63 Ibid.

64 Joseph Lucas Ltd., Directors’ Minutes, January 23, 1924.

65 Joseph Lucas Ltd., Directors’ Minutes, January 23, 1924.

66 Joseph Lucas Ltd., Directors’ Minutes, July 19, 1922.

67 Managing Director's Special Report, November 8, 1925.

68 Ibid.

69 Lord Bennett, “Reconstruction and Expansion” (typescript, 1956).

70 In 1932 Morris incorporated the Bendix automatic starter in his “Oxford” cars, as did Wolesly and Rover. Ibid.

71 H. W. Richardson, “The New Industries Between the Wars.” The original thesis is in A. E. Kahn, Great Britain and the World Economy (1946), 81. Oxford Economic Papers XIII (1961), 279.

72 Loc. cit. The original thesis is in Lucas, A. F., Industrial Reconstruction and the Control of Competition (1937), 40.Google Scholar

73 The Economist, CXIX, 4757, 788; CXXIII, 4838, 375-376.

74 Joseph Lucas Ltd., Report of 1927 A.G.M.

75 Joseph Lucas Ltd., Report of 1930 A.G.M.

76 Lord Bennett, “Reconstruction and Expansion” (typescript, 1956).

77 Joseph Lucas Ltd., Directors’ Minutes, June 20, 1933.

78 Joseph Lucas Ltd., Directors’ Minutes, June 20, 1933.

79 Monopolies Commission, 18.

80 Monopolies Commission, 18-19.

81 Monopolies Commission, 17.

82 Thompson, George V., “Intercompany Technical Standardization in the Early American Automobile Industry,’ Journal of Economic History, XIV, 1, 1954CrossRefGoogle Scholar.

83 Legros, L.A., “Standardization,” I.A.E. XXV, 1930-1931, pp. 351–353.Google Scholar

84 One manufacturer listed 27 types of dynamos and 7 types of dynamo combined with ignition distributor, even offering to design special patterns upon demand. Ibid.

85 A.C. Burgoine, “Electric Starting and Lighting Equipment for Automobile and Motor Cyles,” Institute of Automobile Engineers, XIII, pt. II, 1923-4, p. 336-337.

86 Monopolies Commission.

87 Automobile Engineer, XIX 259, October 1929, p. 355. But nearly twenty years later Oliver Lucas declared that his efforts to achieve further progress towards larger scale, low cost production was seriously hampered by the continuing reluctance of motor assemblers to standardize component parts. Motor Vehicles: A Report on the Industry. Political and Economic Planning (London, 1950), 134.

88 L. Rostas, Comparative Productivity in British and American Industry, National Institute of Economic and Social Research Occasional Paper, No. 13 (1948), 63.

89 The P.E.P. Report gave two examples of the costs of production of typical cars made by different firms in 1938. For one, purchased components (including 74 per cent of materials) were responsible for 58 per cent. For the other, these items absorbed 63 per cent of production costs. Table 35, 132.

90 Ibid., 131.