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It took the new directors only six weeks to learn that Inventor Zerk's accusations against the management were substantially correct. They promptly ousted President Charles B. Smith, and before the year end they also ousted his two senior vice presidents. Mr. Otis was made active head of the parent company. Suits were hastily brought against the old officers to recover salaries and bonuses. Unprofitable lines including cinema equipment were dropped. Alemite's operations were consolidated with the Stewart-Warner Chicago plant. Superfluous subsidiaries were dissolved. A new accounting system was installed and assets were written down. Stewart-Warner reported a $1,791,000 loss for 1933 but in February sales were running 150% ahead of last year. In last week's annual report, a model of frankness, the new management asked the stockholders at the annual meeting in April to authorize a reduction in par value of the stock so that another write-off of $2,400,000 could be taken. Stockholders were also asked to sanction a new name for their company—Stewart-Warner-Alemite Corp.