Chapter 6 REINVIGORATING MANAGEMENT 101 increasing profitability. Consequently, a small geology section organized in 1952, gradually expanding under the leadership of Vice President Weston Bourret. Its primary mission was to search for, acquire, and develop mineral deposits that would create new wealth and establish profitable long-term mining operations— largely producing iron ore and coking coal for the steel industry and steam coal for electric power generation. Giving truth to the old saying that old habits die hard, Corey determined to keep the company in heavy construction, regardless of continuing losses. He remained convinced that “this field should not be deserted, that we should still keep in touch with it, and hope the present low bidding cycle will pass over before long, and then we can obtain some worthwhile business of this class.” To cut operating expenses, improve efficiency, and realign its organiza- tion, Utah’s management discontinued the operations of the West Coast District headquarters, merged its bidding and accounting functions with the San Francisco office, and placed them under the control of Vice President Davis. Additional organizational changes brought Guy Sperry, previously manager of the West Coast District, into headquarters as chief engineer. A. H. Ayers, who had served as vice president and chief engineer, continued to work for the company as a consultant on special engineering problems. During the fourth quarter of 1952, the financial condition of the company improved rapidly. Its net worth and working capital climbed to all-time highs of more than $16 million and nearly $7 million, while the long-term debt was reduced to just below $4 million. Despite this news, company officials did not foresee a respectable net income in 1953 and feared that Utah would merely endure in a world of increased competition. Littlefield broached the subject bluntly in the 1952 Annual Report, over the signatures of Marriner Eccles and Les Corey: “Unless we are unusually successful in our effort to obtain new work, we cannot sustain the rate of construction activity and the earnings experienced during the last two years.” Additionally, a pending steel strike could sharply cut demand for the output of the Ozark-Philpott, Iron Mountain, and Iron Springs mines. Littlefield commented on the value of Iron Springs: