Moving Metal

next February, Gimbel placed an order for a Dahlstrom feeding and straightening machine and a Dahlstrom cold roll forming machine at a cost of $22,240. At the same time, Reliance pur- chased a second heavy-duty truck, a Ford F-8, which could be used on a stand-by basis, fully loaded and waiting for the driver to return from previous deliveries, thereby eliminating a nagging gap in the company’s delivery service. Neilan still wanted to obtain a complete slitting set-up, with roller-leveler equipment, which was required to give the company a com- petitive advantage. The solution to that problem soon presented itself. In early June 1952, a representative from Carthage Strip Steel, Inc., located in South Gate, California, asked if Reliance was interested in buying all of its assets. Neilan directed Gimbel and Littell to negotiate the purchase as quickly as possible, for a price near $20,000 and not to exceed $25,000. The trans- action went off smoothly, and the South Gate facility became Reliance’s “Plant #2.” The purchase provided Reliance not only with one of the few slitting machines in the Los Angeles area but also with the skilled staff required to operate it. Moreover, the buyout established an early precedent for expansion in which Reliance would not necessarily grow from within, but through external acquisitions. As Reliance’s operations grew, so did its leadership bench. Robert S. Hughes became Plant Manager in charge of both the existing Plant #1 (at 26th Street) and the new Plant #2. Effective June 1, 1952, Neilan formally made Bill Gimbel Vice President in charge of internal affairs and gave him control of all internal company operations including office and warehouse management and inventory control. “All depart- ments will be instructed to discuss internal problems with Mr. Gimbel,” Neilan ordered, “and in all instances his decision is

Bill Gimbel, about the time that he became Executive Vice President of Reliance.

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