When Lever Brothers revealed last month that it was pulling its headquarters out of Cambridge in favor of a $6,000,000 Lever House on New York's Park Avenue, many people around Cambridge-thinking of the nation's "slight economic recession"-feared that the city's industrial position had suffered its worst blow in years.
But most Cambridge businessmen aren't especially alarmed. There are a number of factors which seemingly discount the Lever action. And if there is any pronounced economic slump in Cambridge, only small retail merchants, whose sales have been dropping, will admit it.
Cambridge is of course sorry to lose the big Lever executive offices and research laboratories which, together, furnished 1300 jobs. But the firm's manufacturing plant of 1500 workers will stay right on in Cambridge and even expand itself somewhat. Moreover, it looks as if the Lever offices and Laboratories won't be idle for long.
New Occupant
Fourteen prospective buyers, including a big insurance firm and MIT, are already bidding for the old headquarters. Announcement of the sale will come as soon as appraisers can assess the value. Once the new owner moves in, there's a good chance he will be able to hire back some of the help Lever will soon be dismissing.
Cambridge businessmen feel that Lever Brothers' decision was a move not to escape from Cambridge but simply to get to New York where the firm can gather all of its offices under one roof and keep close watch over its Manhattan advertising agencies. The Chamber of Commerce can supply several convincing arguments that Cambridge's industrial position is still strong.
Construction Booms
Not only has 1949 been a record year for construction in Cambridge, but there are a number of businessmen who would like to build here but can't for lack of space; Plan E's low tax rate has proved quite an attraction in this respect. Finally, Cambridge-unlike such one industry cities as Fall River, Lynn, and Gloucester-is somewhat depression-resistant in that it boasts diversification of trades. Candy, soap, chemicals, metals, and printing companies-as well as colleges-continue to flourish here.
In the smaller retail businesses, it is easier to find evidence of recession in Cambridge. During the past year, total sales volume dropped six per cent, and many a small merchant is feeling the pinch for the first time since the war. New out-of-town highway stores have joined with buyer resistance in cutting down business.
Nevertheless, the local businessmen's associations are still clinging to their traditional optimism: they hope that improved traffic and road conditions, as well as the opening of Corcorans in Harvard Square this Friday, will help bring back the customers.
