LIBRARY OF THE UNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGN 338.1 C412h I.H.S. THE HOUSE OF MORRELL THE HOUSE OF MORRELL BY LAWRENCE OAKLEY GHEEVER I, . nil JggL ^ With a Foreword by William J. Petersen and Illustrations by Elmer Jacobs CEDAR RAPIDS, IOWA: THE TORCH PRESS, 1948 COPVRIGIIT 1948 IIV John MoRRr.r.t, & Co. FOREWORD FOR MORE THAN A GENERATION MEAT PACKING HAS BEEN ONE OF THE largest industries in the United States. A close rival of the motor vehicle industry for first place during the days of Presidents Coo- lidge and Hoover, meat packing in 1939 ranked second to motor vehicles in the cost of materials, third in the value of its products, and eighth in the number of wage earners employed. Within the brief space of three score years from 1870 to 1930, American inven- tive genius, enterprise and capital substituted the modern assembly line for archaic handicraft methods, allowing meat packing to achieve a position of preeminence on the American economic scene. The westward expansion of the meat packing industry followed the trail of the pioneers across the Alleghenies and down the Ohio. As early as 1818 Cincinnati began packing hogs, the "Queen City" of Ohio being credited by contemporaries as the town which "orig- inated and perfected the system which packs fifteen bushels of corn into a pig and packs that pig into a barrel, and sends him over the mountains and over the ocean to feed mankind." In 1833, the same year the Black Hawk Purchase was first invaded by the Iowa pio- neers, De Bow's Review described Cincinnati as the "most hoggish place in all the world." Until 1850 Cincinnati bore the sobriquet, "Porkopolis," its strate- gic rail, river and canal connections, its banking facilities and ample labor supply, combining to make it an ideal meat packing center. In the meantime such towns as Louisville, Alton and Saint Louis took up the industry because of their nearness to the supply and their ad- mirablc transportation facilities. Thereafter, the completion of the Illinois-Lake Michigan Canal in 1848 and the facilities afforded by the Great Lakes caused Chicago to forge ahead as a packing center, especially of beef. By 1856 it was observed that "Iowa would bear the palm for hogs." The main roads and side roads of Iowa were alive with swine being driven to market, causing "one universal squeal" to arise in the meat packing Mississippi river towns. At McGregor, boys used to catch rides on farmers' bobsleds coming in from the country with freshly butchered frozen hogs. Those boys enjoyed more than the sleigh ride, for they carried sharp knives with which they cut off frozen pig tails, roasted them over a roaring fire, and ate them. Such incidents revealed that Iowa farmers were quick to discover that wheat to be profitable required mills, whereas corn needed only hogs. Shrewd lowans, like Cincinnatians a generation before, had learned that a hog was nothing more than "fifteen or twenty bushels of corn on four legs!" And since the Mississippi was the great north- south highway and Saint Louis the chief entrepot for Iowa goods, river towns of the Hawkeye State grew fat on meat packing. A sur- vey of the whole United States was said to show only three towns ahead of Keokuk as the new Porkopolis. But a significant form of transportation was developing — the railroad — a mode of conveyance which was destined to revolution- ize the meat packing industry. By the spring of 1852 Chicago was united with the Atlantic by two railroads; by 1854 the "Iron Horse" linked the "Windy City" with the Mississippi opposite Davenport. In another three years Chicago had extended her connections with the Mississippi at Prairie du Chien, Dubuque, Clinton and Burling- ton. The mid-fifties saw railroad construction proceed at a feverish pace in the Hawkeye State — Ottumwa, Iowa City, Cedar Rapids and Waterloo all enjoying railroad connections with the Mississippi by i860. The Civil War interrupted railroad building temporarily, but by 1867 the "Iron Horse" of the North Western had thundered across the lush prairies of Iowa, to win the race to Council Bluffs on the Missouri. Three other railroads (including the Burlington and Missouri) had tapped the Missouri at Council Bluffs by 1869. The invention of the refrigerator car was followed by the first ship- ment of meat from Chicago to New York in 1869 — the very year that Council Bluffs achieved its union with the Atlantic seaboard by four different railroads. The stage was now set for establishing flour- ishing meat packing plants in the inland towns of the Hawkeye State. Railroads and refrigeration, the presence of the Des Moines river and a struggling packing plant, coupled with Ottumwa's favorable position on the frontier, all combined to cause Thomas D. Foster to select the county seat of Wapello County as the site of the first great western packing plant of John Morrell & Co. in 1877. Foster in later years recalled that as a lad in Ireland he had seen a box of bacon packed by "Mitchell, Ladd & Co., Ottumwa, Iowa, U. S. A." He never forgot the name, and when he visited the town later on he found it located on the largest inland Iowa river with superior rail- road connections. These advantages, combined with a good supply of intelligent laborers and a progressive citizenry anxious to secure the Morrell plant, had swung the decision of Thomas D. Foster in favor of Ottumwa. Time proved the wisdom displayed in selecting Ottumwa. A glance into the Iowa Agricultural Report for 1878 reveals that in the three years beginning with 1874 the Burlington and Missouri rail- road transported an annual average of half a million live hogs east- ward over its lines, or almost one-third the total number of live hogs carried eastward by the twelve major Iowa railroads. The Keokuk and Des Moines (which likewise passed through Ottumwa) stood fourth among Iowa railroads in this period, transporting an average of 140,000 live hogs eastward each year. The strategic position of Ottumwa in the hog belt insured a healthy growth for pork packing. In 1877 Iowa led the states in hog production with 3,263,200 head; in 1942 Morrell plants at Ottumwa, Sioux Falls, S. D., and Topeka, Kans., packed 3,059,561 hogs. This was almost seven times as many as were packed by the fourteen lead- ing hog centers in Iowa in 1877, which with the smaller packing plants in the Hawkeye State, accounted for only 486,850 hogs that year. Furthermore, it represented almost 25% of the 13,360,839 hogs marketed in Iowa in 1942. The selection of Iowa as a primary hog packing center indicated sound judgment. By 1900 Iowa produced 6.2% of the nation's pigs; in 1930 the state raised 18.6% ! Swine production was the most im- portant enterprise in Iowa, fully 40% of the commonwealth's agri- cultural income coming from the hog industry. Nearly 86% of Iowa's farms were classified as hog-producing in 1930. The three Morrell plants packed almost three times as many pigs as they did sheep and cattle combined in 1942. Second in importance to hog production in Iowa is the raising of beef cattle. Although 70% of Iowa's farms produce beef cattle the industry accounted for only 15% of the state's agricultural in- come in 1930. In 1942 the three Morrell plants slaughtered 350,402 head of cattle and calves, or about one-ninth the number of hogs slaughtered that year. Sheep raising, once a leading pioneer industry, accounted for only 1% of Iowa's income in 1930. The bulk of those produced in Iowa were concentrated either in the Ottumwa area, or in readily accessible northern Missouri. Despite drought and depression the cash farm income in Iowa from hogs, cattle and calves, and sheep and lambs rose from $377,- 962,000 in 1940 to $935,275,000 in 1944, the latter figure forming a juicy per cent of the total agricultural income of $1,483,374,000 for Iowa farmers that year. The increase, of course, was due largely to price, rather than to the amount of livestock slaughtered. If livestock forms the hub of Iowa agriculture, meat packing has stood for years at the forefront of the state's industries. The value of meat products in 1929 was $244,725,726 out of $907,929,170 — the total value of all Iowa's industrial products that year. When one remembers that Iowa jumped from tenth in 1914 to fourth in 1929 as a meat packing state, it is not surprising to record that this great industry grew more rapidly in Iowa since 1914 than in any other state. The expansion of John Morrell & Co. during this period played an impressive part in establishing this record! The great Morrell plant at Sioux Falls played a vital role in achieving this record. Located in South Dakota a few miles from the Iowa-Minnesota boundary line, the Sioux Falls plant receives its tribute of livestock from northwestern Iowa, southwestern Minne- sota, and southeastern South Dakota. Since livestock production dominates South Dakota's extensive agricultural activity with meat packing following much the same pattern as in Iowa, it is not sur- prising that the Sioux Falls plant should actually equal and some- times surpass the Ottumwa plant in total output. The phenomenal growth of Sioux Falls in population — from 23,000 in 1930 to 40,000 in 1940 — can be attributed in large measure to the some 3,000 men and women employed by the Sioux Falls plant of John Morrell & Co. Although newer and much smaller than Ottumwa and Sioux Falls, the Topeka plant plays an important part in the story of John Morrell & Co. The history of John Morrell & Co. runs the gamut of the meat packing industry. From a relatively simple handicraft beginning in England in 1827, the company slowly pushed its tentacles to Ireland in 1855, to New York in 1864, to Canada in 1868, to Chicago in 1871, to Ottumwa in 1877, to Sioux Falls in 1909, and to Topeka in 1931. In 1947, exactly 120 years after the parent company was formed, the position of John Morrell & Co. was securely established among the great meat packers of the nation. The story of John Morrell & Co. is replete with drama. It is a story of international trade, of tariflf barriers and restrictive meas- ures, of foreign capital investing in the future of a raw and sparsely settled American frontier. It is the story of financial ventures, of panics and depressions, of fires, floods and labor disputes, of all the heartaches and successes that beset a youthful industry seeking a firm footing in an economic field which was fast developing into the largest industry in the nation. Aside from the normal competition it met from such companies as Armour and Swift, Hammond, Morris and Cudahy, the firm of John Morrell & Co. had problems to solve that taxed the mental, moral and financial resources of its leaders. Its strong financial position as the fifth largest privately-owned meat packing company in the United States in 1928 was a tribute to the vision and enterprise, the wisdom, faith and unremitting toil of the men who had steered the company through a century of time. For 101 years — from 1827 to 1928 — John Morrcll & Co. was a closed corporation. While the names Morrell and Foster have dominated the officers and directors of the company, a family tradi- tion has persisted that the fledglings should learn the business from the bottom — up! Although there were perhaps few finer family men than Thomas D. Foster, he was a rugged individualist when it came to rearing his sons. Each one was required to step lively, to pay board at home, and to go on any job where he was needed! Thus, T. Henry Foster started out at 5 cents an hour in 1889, when common laborers received 15 cents an hour, and skilled cutters 25 cents per hour. As a result of negotiations in December, 1946, the average wage of the hourly paid employee was $1.08 per hour — basic common laborers getting 96 cents per hour. There is a good reason for the slogan "Morrell Pride Meats." Quality has always been the watchword for any Morrell product. On one occasion George A. Morrell went to Washington to seek permission to use labels which would feature the three diet idea which John Morrell & Co. planned to break on the canned dog food world. When he met with Bureau of Animal Industry officials, they questioned whether dogs, or for that matter human beings, could distinguish between the three proposed Red Heart flavors — beef, fish or cheese. Morrell contended that they were quite dififerent and suggested that human beings could take the blindfold test and quickly tell what they were eating. Morrell actually took the blind- fold test to prove his point and the Bureau gave the company per- mission to use the designations of Diets A, B and C. Red Heart dog food came on the market in January, 1934; the faith of George Mor- rell in his company's product was a deciding factor. Historians owe the officers of John Morrell & Co. a vote of thanks for preparing this company history. The need for such historical records has long been recognized and the larger corporations of the United States are each year realizing the necessity for preserving company records and inviting historians to catalogue and prepare them for just such books as L. O. Cheever's The House of Morrell. The story of meat paclcing in Iowa and the nation is greatly enriched by this fine industrial history. William J. Petersen, Superintendent The State Historical Society of Iowa Iowa Citv, Iowa THE HISTORY OF JOHN MORRELL & CO, BY L . O . C H E E V E R Dedicated to all those whose efforts hai'c made the company's 120 years of progress possible 1 B 3t T 1 n 3 6 (^li^ter In the gloom of early morning Elizabeth watched her husband, George, and their older children depart =ir 311 ^r ior the mills. The younger members of the family would soon be up and working in the house. These were hard times in England and the times held no exception for the Morrells of Bradford, England. England was trying to recover from two wars with her former colonies in the new world as well as from a war on the continent. During the course of these wars higher and higher taxes had been imposed upon the people until the plight of the little fellow was a sorry one. George Morrell, a wool-comber by trade, had finally migrated from Ripon, Yorkshire, to Bradford, in the same county where op- portunity for employment was fairly certain. He entered the mills and was gradually joined by the older children of the family. Work was even taken home for the younger children, because it was pos- sible for the mills to parcel out a portion of their work for process- ing in the homes of the town. The continual strife on the continent and the wars with her colonies had resulted in a low production efficiency for England. In order to enjoy a bare subsistence every- one capable or old enough had to work — and work long hours. As Elizabeth Dove Morrell watched her family go off on this smoky, foggy morning there was nothing to indicate that it would be different from any other day. Although she didn't work in the mills her day was no less strenuous. It started around four a.m. when she arose to begin preparation of breakfast for those who must be on the job by five. It didn't end until five or later in the evening when Mary, the only daughter in the family of seven children, would come in usually so tired she couldn't wait to complete her evening meal before falling asleep. But on this October day of 1827 word came to Elizabeth Dove Morrell that her uncle, Robert Hubie of Barlby, had died and left her a bequest of £80, about $325 in present day funds. The bequest was paid in cash and represented more money than the Morrells had ever seen at one time or had even hoped to possess. Undoubtedly a family meeting was held to decide just what should be done with the money. The decision finally reached is of credit to the family of Morrell and to John Morrell & Co. of today. Surely the father and mother must have considered the needs of their family; but to George Mor- rell there was one thing more important. While the family was liv- ing in Hull, hard days had come to them and they were forced to borrow a sum of money from other members of the family. That money had not been repaid. That debt must be repaid before any of the bequest should be spent for the Morrell family of Bradford. To save money George walked to Selby and then took a steam- packet to cover the 50 miles to Hull. After the debt had been repaid a small sum remained. It was too precious to squander; thoughtful consideration must be given to a proper investment so that it would benefit the family to the greatest extent. George Morrell's actions in regard to his wife's bequest were not unusual. Even though life had not treated him or his family favora- bly he still retained his faith in God's way. To him, his actions rep- resented God's wishes. And if future events are accepted, they did. Up until the time of the bequest, George's life had been one of hard- ship, privation and economic insecurity of the worst kind. He was born in the village of Masham, Yorkshire, on June lo, 1778. George Morrell was born to poverty and apparently continued in that state until late in life when, as the result of the legacy, some measure of success came to him and life became a little easier. Very little is known of his early life, his occupation or his residence until his marriage to Elizabeth Dove of Barlby. To this union were born seven children: William, George, John, Mary, Thomas, Robert and Nicholas. During the early years of the nineteenth century George was liv- ing at Prestonpans, near Hull, and was keeper of the poorhouse there. Apparently this position failed to supply the funds necessary to keep the family living in any degree of comfort and the children were forced to go to work while young in years. John showed very early in life his natural bent for business. His acumen at the age of 10 years indicated clearly the qualities that were to hold him stead- fast while later leading the struggling provision firm of John Mor- rell & Co. to a sound national and international footing. Even at this age he could be found about the docks of Hull, gathering rags and iron which he sold to junk dealers. This occupation seems to have developed in the young lad an instinct for trading that was to stand him in good stead in later years. Sometime between 1821 and 1825 the family migrated to Ripon, in Yorkshire, and then later to Bradford. And so we find the Mor- rells in Bradford, working in the mills and eking out a meagre liv- ing in this October of 1827. Following George's return from Hull, after the payment of the debt, he went back to the mill. His way to work led past the canal which linked Bradford with the sea and along which were lined the mills. Smoke and fog combined to make the gloom of early morn- ing weigh heavily on George as he left home to grope his way to work. But as he walked along the canal he noticed barge loads of produce and other supplies brought from distant points to be sold 6 on the Bradford market. Particularly he noticed a barge load of oranges. All through the day, as he worked at his trade as a wool- comber, he thought of that boat load of oranges and wondered if that might not be the best method for expending the small sum re- maining from the bequest. That night, on his return home, he talked the matter over with his wife and it was decided to expend the money for the oranges. The next day George didn't go to his job in the mill; instead he stopped at the canal and bargained for and finally purchased the oranges. Father and sons sold the oranges on the streets of Bradford. A profit having been made in this first transaction, the money was reinvested in fruit and green groceries. This furnished stock for a stall in the Bradford Public Market. George Morrell indicated bus- iness foresight in the selection of this first stall; it was at the foot of a flight of stairs leading from the upper market to the lower. These stairs were traversed by many people in the course of a day. George Morrell was now a thriving fruit merchant and what is now John Morrell & Co. had come into existence. About 1830 Morrell decided to add provisions to his line of fruits and green groceries. Another stall, immediately opposite the orig- inal one, was rented and was devoted to the retail sale of hams, bacon, cheese, butter and eggs. George Morrell managed this market and his wife took over supervision of the first one. The curing of hams and bacon soon became the most important part of the business and Morreli's York Hams acquired an enviable reputation in England, a reputation that soon spread even to the continent. Business came easily to the firm with the addition of cured hams and bacon; further expansion was made necessary. Additional stalls in the market were rented from time to time. Finally, it was neces- sary that a building be leased to conduct the business. This building was on Market Street near the George Hotel. At this same time a partnership was formed under the name of George Morrell and Sons. While at the Market Street location the nature of the business changed again with the dropping of green groceries and the addition of flour and other articles. As far as the records show there is no definite information as to which sons were connected with the busi- ness, but it is quite likely they were John, Thomas, Robert and George. Future events were to prove that John, born April 23, 181 1, was to be the leader and the most important one. As we have said previously, to George and Elizabeth Dove Mor- rell seven children were born. All of them, as soon as they were old enough, went to work in the mills of Bradford. They continued in the mills until such time as they were able to take up trades of their own or were required at home. William continued in the mills until migrating to America. In America he undoubtedly continued in the same line of work because he took up his residence in Lowell, Mass., famous then as now for its mills. George became a shoemaker, while Mary left her work to become the wife of William Foster, head counter-man at the firm's Westgate shop. John became a bobbin maker and continued in that work until joining his father in the pro- vision business. Robert became a cabinet maker, while nothing is known of the trades taken up by Thomas and Nicholas. It is known that both mother and father were God-fearing peo- ple and of sterling character. They tried to instill in their children a love of God and a desire to live upright lives and to get ahead through earnest endeavor. It was their hope to bring up their chil- dren in a respectable manner, somewhat above their immediate sur- roundings. Of the children Mary and John seem to have been the most religiously inclined. Mary attended a class in Kirkgate Chapel from childhood. John, in his later years, made it a rule that all em- ployees, residing in his home, must be present at daily family wor- ship and attend chapel at least once on Sunday. 1837 4^ ia46 (^\i^ The partnership, formed at the end of the com- , ^.^ J. pany's first ten years, between George Morrell and his ^r ^ ^r son, John, did not last long. Records are not available covering the reasons for dissolving it, but John Morrell left the com- pany and set up in business for himself in Toad Lane, Bradford. George Morrell continued to carry on the earlier established con- cern. John Morrell married Margaret Ackroyd when he was 24 years old. It was probably at her instigation that John left his father and set up for himself. Margaret Ackroyd Morrell, although a valued helpmate to her husband in business matters, was not one in whom John found continuous bliss as far as household matters were con- cerned. She was said to have been a woman of imperious, exacting and a frequently petulant disposition. The house of John Morrell was not blessed with children, but it was often, shared with his nephews and nieces. Emily, daughter of his brother, George, came to his home in her youth and remained there until her death in 1872. JililL rvi O R R E. L. I_ He was deeply impressed by the kindness of his brothers and sister in sharing their children with him. In them John lavished the love and afifection he might have given to children of his own flesh and blood. The split between father and son didn't last very long. The part- nership was again resumed at a new location, 91 Westgate. The shop on Market Street was given up. Later another was opened on Sun- bridge Road. John managed one of the shops; his wife the other. Westgate is one of the more interesting streets in Bradford. Ris- ing from the bottom of a hill it makes a steep ascent for three or four blocks; following a stretch of several blocks of steady incline, it reaches into the residential district of the city. A few years ago the building at 92 Westgate still showed evidences of its former place in the provision trade at Bradford. On the casement of the window could be seen the skewers or hooks on which were hung beef, hams and bacon for display. But 91 Westgate, across the street, had giv- en way to a large modern building. A block or two further along Westgate is Silsbridge Lane, now known as Grattan Road. It was here that George and Elizabeth Morrell lived while conducting their business at 91 Westgate. It was here that William Foster, head counter-man of the shop, made his home with them. And it was here that William Foster met Mary Morrell, fourth child and only daughter of the Morrells. They saw a great deal of each other and in time developed a mutual interest and love for each other that finally led to their marriage. At 48 Westgate, Robert, brother of John Morrell, opened a provision bus- iness for himself. Here his shop looked out over a street filled with cattle which had been driven there from the surrounding country- side for sale to the provision merchants of the neighborhood. The name of Morrell looked down on this same section of Westgate until March 31, 1930. Robert had taken over the shop at 91 Westgate from John because he preferred the retail business to that of whole- saler. He continued there until moving into his own shop about 1857. In 1842 the firm passed through a most trying financial crisis. George Morrell had invested a considerable sum in an enterprise outside his own business. This business failed and, because of exist- ing English bankruptcy laws, efi'orts were made to tie up the funds of George Morrcll and Sons in the liquidation. The whole business of the company was in jeopardy and on the brink of ruin. It was at this point that John Morrcll stepped in and showed the astuteness, the skill that was to feature his business life. In a prompt and busi- ness-like manner John took over the business and saved it from threatened financial catastrophe. John Morrell now took control of the entire business and it was at this time that the firm name was changed to John Morrell & Co. There were no partners in the business; John was sole owner. He gave his mother and father an annuity which enabled them to re- tire. They went to Selby and took up their residence there. George Morrell was well along in years at this time, had lost his hearing and just did not have the ability to meet and combat the circumstances of the times. It v/as well that John was around to save the struggling firm from threatened bankruptcy. George Morrell lived out his span of years in Selby and at his death, in 1848, was buried in the parish churchyard just outside the wall of the Church where his daughter and William Foster had been married three years before. As time passed the headstone used to mark his last resting place was removed and later was discovered to be in use as one of the flagstones in the path used by sight-seers to the Abbey. Many years later, among the visitors, came George Mor- rell's grandson, Thomas D. Foster, and the latter's son, T. Henry Foster. They came to the Abbey seeking the exact place of George Morrell's burial. During their wanderings they located the head- stone in the path, had it removed and later arranged for it to be placed within the Abbey. It is now located in the north aisle near the entrance to the choir. With the death of George Morrell, Elizabeth was left alone in her sorrow and bereavement. Naturally she turned to her only daughter at such a time. At Mary's urging she left Selby to live in the Foster home at Bradford. Elizabeth's sister, Mary Dove, also found a welcome in the Foster home. In this household the two sis- ORGANIZER OF JOHN MORKliLL S: CO. tcrs enjoyed the comforts of a happy home arnl shared with a deeply religious group the joys of family life until the days of their deaths. Mary Dove died first, on June 20, 1855, at the age of 76 years. Elizabeth Dove Morrell followed less than two months later, on Au- gust 13, aged 80 years. Both sisters were buried in William Foster's plot in God's Acre in the parish churchyard at Bradford. A third death in 1855 took the youngest of William Foster's chil- dren, Heber. He died on January 9, aged seven months. In one year aunt, grandmother and grandson were taken from the household by death. It was during this period of the company's history that another family became connected with the firm, a family that was to be inti- mately connected with its history to the present day. William Foster, as we have already recorded, was head counter-man at the Westgate shop. An orphan, he had come to make his home with the Morrells after accepting employment with the company. It was in this man- ner that he became acquainted with and married Mary Morrell in .845. William Foster was the son of John Foster and Martha Gresham Jackson Foster of Wistow, a village about four miles from the town of Selby. He was born January 29, 1805. Little is known of John Foster and that little is far from being to his credit. His grandson, Thomas D. Foster, wrote after the turn of the century, "John Foster was a dissolute man given to free indulgence in liquor and made no provision for his family." William's mother, however, was an ad- mirable woman and did everything possible to make up the short- comings of her husband to their six children. The Foster name was well-known in Wistow, a record having been found of one, Robert Foster, as far back as 1420. The Jacksons had also lived in the region for generations. William Foster's mother died when he was six years old and he and the other children were left to make out for themselves. William was taken into the home of his mother's parents, but they died soon after and he was left an orphan, to make his own way in the world. In the years that followed he went from place to place, accepting 14 employment in whatever occupation might be available. He worked as a farm laborer, hostler and gardener. In this latter capacity he worked for one William Paven of Pickfield, and with him William Foster established a reputation for skill and fidelity. The friendship between the two lasted until Mr. Paven's death. In all of his positions, during the years between his sixth and nineteenth birthdays, he established an outstanding record of skill, diligence and faithfulness. The following story which is told about him gives clear indication of his character. He was employed by a family which expected him to do certain things which his conscience did not approve. Even though only lo years old at the time, he re- fused. William tied the few things he possessed in a handkerchief, threw them out his bedroom window; and going downstairs passed into the darkness, seeking a new position and home. He walked all night, finally coming to the home of friends. These friends treated him sternly but approved of his action. Ever afterwards their treat- ment of him was better and more cordial. His sister, Ann, had married Isaac Wright of Bradford. The Wrights established a grocery business in Bradford and it grew rap- idly. When William was about 19 years old he went to Bradford to assist his sister in the conduct of the business, her husband having died. He staj'ed with her until her death in 1840. Following Ann's death he went to work for George Morrell and Sons as head counter-man in the Sunbridge shop and later was con- nected with the Westgate shop. In both of these shops he proved to be a valuable as well as a reliable worker. In some historical notes written by Thomas D. Foster in the early 1900s, he comments as follows about his mother and father: ''Being in the b.ome of George and Elizabeth Morrell he met Mary Morrell, their daughter, and forming an attachment for each other, they were married in 1845. A short time before, my father had commenced business in the grocery line on his own account in Silsbridge Lane, Bradford, and furnished a house in connection with it which was the home my mother went to when married. My father and mother were married in Selby parish church, that is the Abbey, to which my I? grandparents, George Morrell and Elizabeth iMorrell, had retired a few years before, grandfather having become so deaf as to be unfit for business." The home which was established by William and Mary Foster was a completely happy one. And to make it even happier four chil- dren came to bless their union, Thomas Dove, born November 25, 1847; Martha Thomaison, Ann Elizabeth, and Heber. Martha and Heber died in infancy. Thomas Dove lived to become a major factor in the firm's growth and Ann Elizabeth married Alfred Illing- worth, another name to become important in the records of the com- pany. 16 1 8 t T I S /^JL/ltstQi' The third ten year period in the history of John \7\±^ Morrell & Co. seems to have been a period of picking "T ^ ^^ up the loose ends, picking up and knitting them into a fabric strong enough to stand the vicissitudes of time. It was a period when John Morrell began to expand his business; a period when he began to gather around him men loyal to him and his business ideals; and a period when movement toward an original source of supply became necessary. All of these factors must enter the history of any company at some time and it was the years between 1 847 and 1 856 that they appear in the story of John Morrell & Co. Following the retirement from the business of George Morrell, John Morrell continued to enlarge and carry on at the Sunbridge Shop. Sometime between 1845 and 1850 that shop was given up and premises at Tyrrel and Aldermanbury Streets were occupied. These premises were at the bottom of the hill from the first location in the stalls of the Bradford Public Market. Here the nature of the firm's business again changed. Sale of flour was discontinued and whole- sale groceries were added to the provision line. 17 With the enlargement of the business, traveling salesmen and an office force were added. At this time John Morrell began to gather around him a group of men who were to play a considerable part in the history of the company. We have already mentioned William Foster; others were Frederick Jackson, George Lees, Alfred Ack- royd, John Ackroyd, brother and half-brother of his wife; Thomas Atkinson, Humphrey Bell, and Alfred lUingworth, husband of his niece, Ann Elizabeth Foster. Members of the Morrell family were well represented in the business too. There were his brothers, Thomas and George; his nephews, John and Alfred Morrell. Alfred died in 1865, ^ youth of only 17 years. But in that short span he had shown considerable business foresight and had been counted on by his uncle for an important place in the business. George Lees inaugurated a system of bookkeeping that was used by the firm for some 40 years. Fred Jackson continued with the com- pany until his death in 1896. Jackson was one of the first directors of the company after it was incorporated and at one time was a full partner in the business with John Morrell. Because John Morrell was an able trader and merchant the busi- ness began to grow. Because he was aggressive in spirit and ambi- tious in his chosen line it was necessary that he seek an adequate source of supply for his expanding business. Because he was already showing success in his operations he was successful in surrounding himself with a group of qualified individuals. Because of John Mor- rell, John Morrell & Co. was ready to bring forth the fruits of his abilities. The first step in the movement of expansion occurred in the early fifties. At that time, John Morrell, anxious to get into the quality grocery business, formed a partnership with one, George Isitt, then engaged in such a business on Market Street in Bradford. Follow- ing the formation of this partnership the firm name was changed to Morrell & Isitt. This partnership lasted only a short time. A second move in expanding the firm's operations was initiated in 1846 when John Morrell was persuaded by Patrick Dennison to visit Ireland. Dennison was a dealer in Irish produce in Bradford and turned over a considerable portion of his import to John Morrell & Co. The two men made the trip to Ireland, visiting the towns of Bailey-Raggett and Castlccomer. This visit convinced John Morrell that Ireland was the logical source for the supplies necessary to carry on his ham and bacon business in England. Following thoroiigii consideration of all factors, Castlecomer was selected as the location for the firm's Irish operations. Premises were secured for a retail grocery shop, a slaughterhouse and a curing plant. Company records do not indicate a definite starting date for the op- erations in Ireland. It would seem, however, that they might have begun sometime before 1856 when Thomas Atkinson was placed in charge. Atkinson had been connected with the company for many years in Bradford prior to going to Ireland. 20 STORY OF MEAT — U. S. A. BACKGROUNDS The story of meat in the United States is full of glorious and romantic episodes. It is the story of an industry which has been a definite factor in the growth of this country. Cattle now in the United States are known to have come from two sources. One was the Mexican herd which had its basis in the cattle brought from Spain by Cortes. The other herd was brought together on the At- lantic coast by the piecemeal importation of cattle from Europe and by cattle brought into the region by new settlers. On March 4, 15 19, Hernando Cortes, famous Spanish conquistador, landed on the Mexican coast near Vera Cruz with his troops and a few Andalusian cattle. After the wars, Cortes' men settled down to peacetime pursuits, becoming settlers and going into the business of stock raising. The Andalusian cattle were withdrawn from their wartime uses to help the settlers become established. And it was from such cattle that our fa- mous Texas Longhorns came. While the Mexican herd's story is more romantic, the development of the cattle industry on the Atlantic coast was of greater importance. It was from this source the colonists were to see their beef needs satisfied, and it was in this section that the first packing plants were to come into existence. When explorers sailed from Europe for the new world they left behind them many kinds of domesticated animals. It is believed that Columbus had "packed" meat in his ship's stores when he set out seeking a western route to India. It is almost certain that he brought with him, on his second voyage to America in 1493, cattle and hogs. Likewise it is almost certain that settlers coming to this newly discovered land did not leave their homelands without some of the domesticated animals they had come to depend on for their meat needs. It was hazardous enough to colo- nize a new land without having to depend upon the unknown sources of meat available to those already inhabiting that land. Background observations would seem to indicate the Indians did not have any domesticated animals resembling our cattle, hogs or sheep. How- ever, it can be assumed that meat from native wild animals had always formed an important part of their diet. It Is known that the red man es- tccincd liiifhly meat from buffalo, elk, caribou and moose. We know they made pemmican from the lean Hcsh of the buftalo or venison, sun-dried and pounded. Perhaps the earliest settlers secured some of their ideas for handling meat from the Indians but it is also known they brought with them some of the practices common in Europe, curinjr, smoking and packing meats. The earliest authentic record of importation of swine into this country is dated 1538 and covers swine brought from Cuba to Florida by Ferdi- nand de Soto. Cattle and hogs were delivered to Newfoundland and Nova Scotia by Portuguese traders in 1^53. Although some cattle had reached Virginia before 1609, the first big shipment arrived in 1610. The first sheep came from England to Virginia in 1609. Each group of settlers brought in the domestic animals natural to their land. And as they pushed westward in search of a home, they took along with them their sheep, hogs and cattle. Meat as a food product was so vital, so important to those first settlers that, in order to protect valuable animals which had been so carefully transported across the sea, an edict was published which forbade the kill- ing of domestic animals of any kind. Of course there was reason behind this edict and it served its purpose admirably. Because of it farmers had to protect their domestic animals and use them for breeding stock, and in this manner herds increased rapidly. The penalties set up for infractions against the edict were so severe that no one willingly disobeyed them. The owner could be sentenced to death; an accessory stood the chance of having his hand burned or losing an ear, while anyone concealing product handled in direct violation of the law might find himself sentenced to a 24 hours' whipping. Harsh though these penalties may have been, even for the seventeenth century, they served to protect the meat needs of the colonists, and herds were built up in good measure. And the country was ready for the beginnings of the meat packing industry. Settlers in the New England states found their dairying, cattle feeding, and hog raising operations were becoming increasingly larger. In the val- ley of the Connecticut river an important cattle industry had developed. Market days came into existence as a means of disposing of surplus stock and providing stock for butchering purposes. Rudolf Alexander Clemens, in his American Live Stock and Meat Indus try, quotes a piece from the Country Gentleman of i860 which gives a pretty good idea of what one of these market days was like. He writes: "Thursday of every week which by common consent and custom is the market day, changes the generally quiet village of Brighton into a scene of bustle and excitement. At early morning the cattle, sheep, etc., are hur- ried in and soon the morning train from Boston, omnibuses, carriages and other 'vehicular mediums' bring in a throng of drovers, some from as far away as Maine, buyers, speculators and spectators; so that, by ten o'clock there are generally gathered as many as two or three hundred vehicles in the area fronting the Cattle Fair Hotel. The proprietors thereof throng the spacious barroom for the purpose of warming themselves in winter, and in summer 'cooling off' — the process for effecting both results being precisely the same. The portico of the hotel is occupied by hawkers and peddlers, who sell clothing, jewelry, soap, watches, knives, razors, etc. (to say nothing of their customers), at astonishingly low rates. An 'Eng- lish hunting lever eighteen carats fine,' is frequently sold for five or six dollars, and of course is a genuine article. In the region round about 'Mam- moth Steers," 'Living Skeletons,' 'Snakes,' etc., are on exhibition at reason- able prices. "All morning the butchers and the drovers are busily engaged in their traffic. The fattest and best of the cattle in the pens find a ready sale, and long before all the drovers are In, select lots begin to be driven from th; grounds. Men and boys hurry up and down the lanes and through the pens, each armed with a stick which is a sort of a shillalah, shouting to the half-crazed cattle, and with screams and blows directing them where they should go. Occasionally a drove of cows and calves come along, the latter muzzled, and the former lowing and bellowing in chorus to the shouts of their drivers. Farmers from the neighboring towns are selecting 'stores' from the large number of that class in the pens, and dairymen carefully examining the 'milk-mothers' that are so anxious, seeking their young from the midst of their companions. Working oxen are driven in by the farmers from the vicinity, who sell only after much banter, to buy again when prices are low. In the midst of these, dogs and goats and mules are offered for sale, and nearby are the hog pens containing at this season, only stores which are sold singly and in pairs to small farmers, mechanics and others who think they can afford to 'keep a pig.' "The forenoon is busy enough. At high noon the huge bell of the hotel announces dinner, and for a brief period there is a breathing spell for man and beast. After dinner, business again resumes its way. The voice of the hawker becomes hoarse, but it Is by no means silenced. Drovers who have not made many sales get nervous, and pens are cleared out without much regard to profit on the part of the seller. The butchers begin to turn then- faces homewards, and the drovers, generally with well-filled wallets, start for Boston. A few, not liking the prices and hoping for 'better times,' make arrangements to turn out their cattle to pasture, and hold over to another week. By five o'clock the business of the day is over, and Brighton subsides once more into a quiet, matter-of-fact Massachusetts village, till another Thursday brings round another market day." Just as the market day was one of festivity, so butchering day on the 23 farm was a festive occasion. Many of us are familiar with the methods of farm slaughter. The hog to be butchered is selected. The farmer, assisted by several neighbors, kills the hog, usually slitting the throat with a knife. Earlier in the day a big kettle has been placed over a fire and the water brought to a boil. After the hog has been killed, the carcass is rolled into a barrel and the hot water poured over it. The hot water loosens the hair and soon busy hands using knives have the carcass a shining white. The hog is then swung upon poles to remove the viscera. Then come the cutting operations, trimming of meat, rendering the fat into lard, making of sausage and the many other jobs necessary to get the meat properly prepared so that the family may have meat through the long winter months. Usually the wives of the farmers assisting in the killing have assembled in the home and prepare a tasty meal for their husbands. This method of farm slaughter has changed very little since the days of the Pilgrim fathers. However, there soon came a time when people began to congregate in the cities and farm slaughter was unable to take care of their meat needs. It was time for the meat packing industry to come on the scene. Industry historians have long debated the identity of the individual responsible for the meat industry in America. Some of them give credit to William Pynchon; others to his son, John. There seems to be no one else mentioned with any degree of regularity. William Pynchon was born in England and came to America with Gov- ernor John Winthrop, of the Massachusetts Bay Colony, in 1630. For a time he was treasurer of the colony. But because of religious difficulties he withdrew and moved to the Connecticut river valley where he helped found the town of Springfield, Mass. He became quite prosperous, built the first brick house in that region and engaged in various beef feeding and trading operations. Ele went to England in 1650 and while there pub- lished a religious volume that displeased the legislature of the Massa- chusetts Bay Colony. When he returned he was tried by the legislature, con- victed, his books burned in the public square of Boston, and banished from the colony. He returned to England in 1652 and died in that country ten years later. John Pynchon, son of William, was born in England and accompanied his father to America in 1630. He succeeded his father in the Springfield government in 1652. Through his father he gained much land and by pur- chase secured considerably more. He was a friend of the Indians and participated freely in the politics of the colonies. During the time William was living in Springfield his operations in the beef industry led him to a consideration of the problems of city dwellers who were not able to have a hog or a cow at their disposal for satisfying their meat needs. He decided, or possibly his son, John, did, that the Pyn- 24 chons should kill, cure and pack both beef and pork for the colonists living in the neighboring towns. This project ^^'e^t over so well tliat they were soon exporting to the Bahamas. The success of the Pynchons brought other colonists into the field and by 1640 a considerable export business was being done with the West In- dies. England's civil war of that period was primarily responsible for the growth of this business. The colonists took over the business of supplying the Islanders with their meat needs with livestock, barreled beef and pork, bacon and hams. These meats were "packed"'; that Is, "salted down" and packed in barrels. A fact w^hich, incidentally, gave to the meat packing industry Its name. The history of the meat industry in America can be logically broken into three periods. The first period covers the beginnings during the early days of the colonization of the eastern coast. At first the coast and the adjacent strip of land supported the incoming settlers, but as more and more came, more land was needed and the westward movement began. As the settlers moved west they took with them their domesticated animals and their knowledge of slaughtering as practiced on the coast. By the latter part of the eighteenth century the movement of settlers to the west had crossed through the Allegheny Mountain passes and along the river val- leys Into the middle western states. With the arrival of the whites In this great middle western empire the second period opened. But it took "The Whiskey Rebellion" of 1793 to open the faucets for stock raising. "The Whiskey Rebellion" took place in western Pennsylvania and after it was put down farmers turned their corn production to the feeding of livestock rather than hogsheads. And that was the thing needed to bring livestock into the middle western pic- ture. A further aid was the "Battle of Fallen Timbers" fought with the Indians in the northwestern part of Ohio in 1794. When the Indians lost this battle to "Mad Anthony" Wayne they v/ere forced to sign treaties which opened the territory to white settlers and guaranteed safer pas- turage. A look at the centers of hog production through the period gives good indication of the growth of the industry. In 1840 the center was near the junction of the states of Ohio, West Virginia and Kentucky. Ten years later it had moved farther west to a point near Paris, Ky. In i860, the center of hog production had reached to a point just south of Louisville, still in Kentucky. Then the center began to move north and west through southern Indiana to a point In southeastern Illinois by 1880. This north and west movement continued until 1890 when It turned back to a point directly east and a little south of the center of state. By 1910 It reached a point near Hannibal, Mo., and ten years later was at a point north of St. Louis. The movement of cattle production centers paralleled that of hog production, except that it stinted t;iitluT c;ist aiui fiuicci up hirther west, at St. Joseph, Mo. There is no need Id tell here the part that the development ot (lie live- stock industry played in tiie winning of the west. That story has been told many, many times, in fact and fiction, on the artist's canvas and on the silver screen. But it might be well to sum up the picture in the words of a writer on the western scene as he says: "The story of America's cattle trade is one of the most romantic tales of modern times. In its swing and its dignity, it truly is a saga. This story deals with more than mere meat, hides ami tallow; for its cogent, salient chapters have as much to do with men and their achievements as with animals and their products. It is con- cerned as much with the cowboy as it is with beefsteak. It begins by recit- ing the doings of a Spanish knight in armor. It continues with accounts of Indian conflicts, of range wars, of bravery and of cowardice, of heroic generosity, of sordid thievery, of gentleness, murder and sudden death, of the thousand and one things that happened upon America's frontier and in the lonely wastes beyond. It tells of men who, raising livestock, not only provided foodstuffs for a nation but also shaped materially that na- tion's social and political thought." It was during the second period in the story of meat that Cincinnati became known as "Porkopolis," a city that had "perfected the system which packs lifteen bushels of corn into a pig and packs that pig into a barrel and sends him over the mountains and over the ocean to feed man- kind." At that time Cincinnati was the center of the area west of the Alle- ghenies and east of the Mississippi river. This area produced great quan- tities of corn and feeding that corn to hogs became a major industry. Cin- cinnati was accessible to these interests and was easily in reach of markets to the east and to the south. Railroads came to Cincinnati at this time, too. And with the Ohio river giving her access to the Mississippi and the south, transportation no longer offered any difficulties. Cincinnati did its share in making meat packing the industry it is today ! But Cincinnati's place in the picture was to dim as the great corn pro- ducing areas of Illinois and Iowa were opened; as the railroads reached farther and farther west; and as the people inhabiting these areas began to demand a more convenient market. The factor clinching the meat pack- ing industry for Chicago was the Civil War. Chicago, far distant from the scenes of major battles, moved into the picture easily, eagerly. Every- one, producers, commission merchants and manufacturers, moved in and produced the huge quantities of meat desired by the Union army. They produced in such large quantity that Chicago took over the major share of the meat producing business, and still maintains a large portion of it today. Meat's third period may be saitl to have started in i860 when the war 26 between the states brought great demands on those in the meat packing business. This period was, however, one of internal changes in the industry. The first two periods covered migration of the people, improving and in- creasing the livestock population, and the development of the packing in- dustry. With the third period packers began to improve their methods of pro- duction in the plant, and at the same time began steps to improve their organization in financial, administrative, and merchandising operations. The big step, and one that cannot be overlooked because of its impor- tance to the packing industry, was the invention of refrigerating ma- chinery. This invention took meat packing out of the winter work only classification because it was possible only to chill carcasses properly during the cold weather In order to prevent spoilage. Even though early packers had learned to use ice in their operations, work was pretty well confined to the winter months until the invention of this machinery. The second was the Introduction of the refrigerator car, which the packers invented and built themselves. The first refrigerator cars were so top-heavy and bulky that it was only with the greatest difficulty that railroads were per- suaded to handle them. The railroads felt It was impossible for them to furnish such cars to the packers, so they had to continue building their own refrigerator cars, inaugurating the first private car lines in America. Both of these factors allowed the packer to locate In the field, at the source of supply. He didn't have to worry about his distance from the market. Now he could kill and ship without thought of the possible spoilage of his man- ufactured product. The packing Industry in America had advanced much more rapidly than the same Industry In England or Ireland. In fact, American produc- tion was such that foreign markets were being sought. And so it was that John Morrell & Co. found Itself In competition with American goods on the Irish market. Because American production methods were so advanced, products could be put on the Irish market cheaper than similar products made in Ireland. In time John Morrell & Co. found that its Irish opera- tions were unprofitable and their withdrawal from the Irish market was desirable. But these same conditions were found to hold true In Eiverpool, where John Morrell & Co. was now located, and the company found that to maintain Its place in the English market it would have to think about beginning operations in America. 27 IBS 7^ IU66 /^liiUllPi* Operations in Ireland during the late '50s and early S^^**^f^^'*^ '5os overshadowed activities in England. In Ireland, J|_ jm^ jj^ ° ir Tt "ir Thomas Atkinson, and later Humphrey Bell and Wil- liam Foster, expanded the Hrm's operations, making possible larger shipments of Irish produce to the English market. In England, John Morrell wound up his activities in Bradford, transferred his busi- ness to Liverpool, and at the close of the period entered the Ameri- can market by opening an office in New York. The necessity' for an original source of supply had brought about the opening of a branch in Ireland in the middle '50s. As already re- ported, John Morrell sent Thomas Atkinson to Ireland to open a branch at Castlecomer. Castlecomer, located about 90 miles south and west of Dublin, is in the County of Kilkenny. It proved to be a good starting point for Irish operations. Atkinson immediately started buying butter, eggs and poultry for shipment to England; he also carried on some pig slaughtering for export to England. As the Castlecomer business 29 continued to prosper, Atkinson gradually added to his operations the sale of American bacon, flour, meal and groceries to the Irish trade. By 1859 the company's Irish operations had reached such volume that is was necessary to open another branch. The town selected was Kilkenny, a castle town about fourteen miles from Castlecomer. The premises selected were at No. 3 Irishtown. Here a business similar to that of Castlecomer was carried on, except that groceries, flour and meal were omitted. Atkinson and Bell, the latter having arrived from England with the William Fosters in 1859, were sent to Kilkenny to manage the business there. Atkinson also acted as manager of purchases for the firm outside Kilkenny, making frequent trips to Waterford and Thurles. At Waterford he purchased singed long sides from Denny and Richardson for shipment to England. It was also at Waterford that he became acquainted with William S. Thompson, then a part- ner in the firm of Richardson & Company, who will enter our story again in a few years. This arrangement continued at Kilkenny until J 861 when Humphrey Bell resigned to go into the provision busi- ness for himself in London. To assist Atkinson, George Morrell II and Frank Ackroyd, a brother-in-law of John Morrell, were sent to Ireland. In 1862 Atkinson withdrew from Ireland to become associ- ated with John Morrell & Co. in Liverpool. Shortly after this Ack- royd resigned to enter the wool trade. Humphrey Bell, not succeed- ing in his London venture, returned to Ireland and joined with George II in the management of the Kilkenny operations. To handle the Castlecomer store, William Foster was prevailed upon to resume his former association with John Morrell & Co. Foster, following his marriage to Mary Morrell, severed his connec- tion with the company and started in the grocery business for him- self in Silsbridge Lane, Bradford. In 1851 the Fosters moved to Birksland Street, New Leeds, a part of Bradford, where the grocery business was continued until September of 1859. The Fosters arrived in Castlecomer on October i, 1859, and Wil- liam Foster took over the direction of the company's property there. Business at both locations continued to flourish for the next three 31 or four 3'ears. Then gradunlly it declined as American meat began to come on the Irish and Knglish markets in greater quantities and at a lower price. It was not possible for Foster at Castlecomer, or Atkinson and Bell at Kilkenny, to meet this competition with the livestock resources available in Ireland. The first break came in 1862 when William Foster purchased the Castlecomer premises from John Morrell & Co. and continued operations on his own account. The Kilkenny business was closed in 1864 and Atkinson and Bell were sent to New York to open an office there. Thomas Dove Foster, later to become head of the company, spent six years of his life in Castlecomer — the formative years from 1859 to 1865. Born November 25, 1847, he was only 12 years old when the family arrived in Ireland. He took a prominent part in the vari- ous sports of the neighborhood and was considered a leader of the town's youth. He continued with his school work until 1863. But his youthful days were short lived. It was necessary that he get into the business and assist his father in many ways. While he did some work in the store, most of his time was spent with the firm's buyer who traveled over the country buying pigs, some of which were shipped alive to England and others for slaughter and local sale as well as shipment to England as bacon. It was at Castlecomer that young Thomas learned the rudiments of the packing business. It was while he was working for his father in the Castlecomer shop that he noticed a box of bacon recently arrived from America. This box carried the notice that it had been packed by "Mitchell, Ladd & Co., Ottumwa, Iowa, U.S.A." As he looked at the Indian names, Ottumwa and Iowa, he visioned the exciting life of the west in America and resolved then and there that some day he would visit America and find that town. During his boyhood days in Ireland he was an avid reader of James Fenimore Cooper's "Leatherstocking Tales." The books of this series gave him an extraordinary interest in the noble redskin, hence the more than ordinary appeal of an In- dian name. Speaking of this incident in later years he said, ''I never forgot the name Ottumwa; somehow it stuck in the back of my brain, al- though I had only a hazy idea of where it was located." But little did he know then that in only a few years he would be starting a plant in Ottumwa, Iowa, that in time would become the headquarters of John Morrell & Co. Possibly it was good fortune looking after Morrell interests again. We have already mentioned the bequest which put George Morrell into the provision business, the beginning of what is now John Morrell & Co. And later on we shall see vi^hat came of young Foster's notice of the names, Ottumvva and Iowa, on a box of American bacon. Commenting on the use made of the bequest by George Morrell, George M. Foster, now president of John Morrell & Co., said: "Handling that legacy as George Morrell did, came out like win- ning the daily double. In 99 per cent of similar cases, the capital would be lost, and they would be back at work in the mills worse off than they were before." His statement is true but the facts cannot be altered. Divine guid- ance must be acknowledged. The success of George Morrell's han- dling of the bequest is still evident today — 120 years later. How, too, can the importance of a youngster's first notice of the Indian names, Ottumwa and Iowa, be overlooked in the company's history? Foster sold his business in Castlecomer and returned to England in May of 1865. While operations were being carried on in Ireland, John Morrell was still continuing his business in England. He had achieved a con- siderable measure of success and the business was growing. In fact, it had grown to such an extent that Bradford no longer served ade- quately as the company's headquarters. The first step in the move from Bradford came when John Morrell sold his residence and took up quarters in Southport, near Liverpool. For probably a year or 18 months he watched the operations of the Liverpool market, acclimat- 33 ing himself to business conditions of the larger market. There is no record indicating that he opened an office or place of business dur- ing this period. The Bradford business was disposed of in i860 and premises tak- en at No. I Temple Court, L^iverpool. Four employees of the Brad- ford business went to Liverpool with John Morrell — Frederick Jackson, John Lawrence, Henry Sagg and Alfred Tllingworth. Jack- son has already been mentioned in these pages. John Lawrence joined the Bradford firm in 1857, ultimately becoming head bookkeeper and cashier. He resigned in 1867 to accept a similar position with Robert Morrell & Co., Bradford. John Lawrence was kind to those under his direction and, in turn, was loved by them, but with it all commanded their respect. Alfred Illingworth had become appren- ticed to John Morrell as a boy of 12 years in 1857. When his appren- ticeship expired on November 20, 1865, he elected to continue with John Morrell & Co. and in the years that followed rose to positions of high responsibility. Henry Sagg had charge for a time of the Liverpool business at No. i Temple Court and afterwards traveled for the company. He resigned in the late '60s to accept a similar po- sition with another Liverpool provision house. At the close of the period, in September of 1865, Thomas Dove Foster entered the firm and was placed in charge of dock work, checking packages landed from steamers and sailing vessels. As at Bradford, development of the firm's business in Liverpool was steady and soon the No. i Temple Court quarters were too small. In 1862 the hrm was located in Button Street and in the next year quite extensive premises were taken in Sir Thomas' Building in Whitechapel. Before moving to the Whitechapel location, his asso- ciates have reported, John Morrell visited the Manchester Market each Tuesday and made sales of firkin butter, sometimes in 100 to 250 firkins quantities. These were shipped direct from Castlecomer and Kilkenny by Atkinson and possibly John Morrell's brother, George Morrell H, who was in Kilkenny at this time. During the first years in Liverpool, John Morrell found himself in a very satisfactory situation. His operations in Ireland were going 34 well, thus placing him on an equal footing with his competitors, as far as imports were concerned. He was receiving meat products and lard from the Irish branches, as well as butter; from commission houses, and later directly from dairies, came the cheese now so im- portant in the firm's business. These products John Morrell sold direct to distributors and large retailers. It didn't take long for the American bacon which had been ar- riving in Ireland to find its way to the English market, and John Morrell was one of the first importers to push that product in Eng- land. So to his cheese trade was added American bacon; and later the extensive drying of bacon and hams and the refining and manu- facturing of lard oil were begun. The Irish branches were unable to accommodate the demands of the English market for product and considerable purchasing through middlemen became necessary. All of these factors added up to the important decision of whether or not an office should be opened in America. Hodgson Bros., of Liverpool, had an office in New York and acted as the purchasing agent for John Morrell & Co. in that market. As the company's volume in- creased it became more and more apparent it would be impossible to build up business under the conditions then confronting the com- pany. It had to be New York. John Morrelfs decision to move to New York was a natural one for him to make. His vision was always forward. He had seen what American bacon had done to his Irish connections. He had become thoroughly acquainted with American meat products and liked them. Above all he realized that the new source for the best in meat prod- ucts was to be the land of English-speaking people on the other side of the Atlantic. Once having made up his mind that his next move was to establish an office in New York, he wasn't long in putting it in effect. He selected Thomas Atkinson and Humphrey Bell to be his New York agents and they arrived in New York in September of 1864 and opened an office at 61 Exchange Place. The Morrell firm was then almost 40 years old. Atkinson soon became acquainted with the New York market and his purchases of provisions, particularly of 3i cheese, were very extensive. He secured large shipments of this com- modity on consignment, which developed the cheese business to such an extent that John Morrell & Co. became known as the largest im- porter of cheese on the Liverpool market. With the contacts made by these two men in New York, and through connections made with one, Davies of Canada, for meat products the Liverpool organiza- tion flourished. 36 I a a 7 1 B T e dtiiplcr The success of Thomas Atkinson and Humphrey Bell in the New York market, especially in their pur- ir 5 ^r* chases of cheese, brought John Morrell to the conclu- sion that the company's Whitechapel premises were unsuitable, out of the way for buyers who personally visited the company's show rooms to make purchases of cheese. The decision made, the White- chapel quarters were disposed of and another location taken at 33 North John Street in the spring of 1867. The office was larger and in connection with it there was an ample display room for exhibiting cheese. Thomas Atkinson handled personally most of the purchases made on the New York market. A shrewd trader, he made himself felt in that market because of his abilities to judge the character of the product in which he was dealing. Many buyers, after they had learned the price Atkinson had bid for a piece of goods, were known to pay just a little more, resting secure in the fact they would re- ceive full value. During his New York days, Atkinson was a unique Ill Ul and forceful character, an indefatigable worker, and although a man of limited education, he had a wonderful grasp of figures and a re- tentive memory. Regularly he was contacted by the Liverpool steamship lines to fill out empty freight space in their boats before they must sail for England. In those days the freight rate on cheese was around 70 shillings a ton; because the boats had this empty space to fill, Atkin- son usually could get a rate of 10 to 20 shillings below the regular rate. Immediately he would take advantage of the opportunity. Re- membering different parcels of goods he had not bought previously, he would contact the dealers again, picking up at considerable re- duction goods which had missed the market and had to be sold so that the various commission men could remit to their clients the next day. In order to complete such transactions night work was necessary and often day was dawning when the last truck load had been re- ceipted for by the receiving clerks at the docks. But not only did the New York office handle cheese on a large scale, but butter, hams and bacon were dealt in extensively. Con- cerning this particular period in the company's history, Thomas D. Foster has written: "At that time the cheese trade was transacted almost exclusively in stores in Broad and Whitehall and those streets near the old Prod- uce Exchange, which was situated where the government warehouses now stand. The butter business, and a little cheese business, was transacted in the neighborhood of Chambers, Barclay, and Green- wich Streets, though a large quantity of cheese was shipped directly from the cars at Park Freight Depot and from Albany via the Peo- ple's Line Steamship Company. "The bacon business was carried on largely on the west side by wholesale butchers who bought dressed hogs and cured them in their cellars. Bacon was bought at only one place, where the hogs were slaughtered and that was by the North River near 33rd Street. The hogs were cut warm, and in the summer time, all boned — long clears, and bellies. The only chilling was a piece of ice on the shoul- der-end of the sides. The cellars were kept at a temperature of 45° to 39 5o°. I was the inspector and had great trouble with the curers on ac- count of the unsatisfactory flavor of the meat and the many tricks re- sorted to to work off the boxes of rejected pieces with the boxes of good. "Much of the cheese handled by the firm was on consignment, be- tween 1866-1870, but like all consignment business it became less and less satisfactory," until by the "summer of 1872 it entirely ceased and this branch of the business for which the firm had been famous for forty years, was given up." By 1868 butter exports from the United States had practically ceased, and from Canada by 1870. To make up for the business lost when it was no longer possible to export butter and cheese, Atkinson began to export grain, flour and linseed cake. This business at one time assumed liberal proportions. Atkinson chartered entire sailing vessels to freight his purchases of these commodities, but the business was given up in 1872 because no member of the firm in Liverpool sufficiently understood these products. But the main reason for giv- ing them up was that the firm's ventures in packing hams and bacon in the United States and Canada and refining lard in the Birkenhead works were proving more profitable. Atkinson resigned from the company on May i, 1872, after 17 years of service. His departure was made with bitter recrimination on the part of the firm and left a sting years could not heal. It had been discovered that he had been sending the Liverpool office fraud- ulent invoices covering cheese and bacon shipments for several years, and on departure he was some £800 short in his accounts. Even with the success of the company's operations in America the way wasn't smooth in England. From correspondence of the period it would seem that John Morrell was always overselling and usually strapped for money. There are many letters written to the manager of a bank at Bradford, all in the same vein, explaining why the firm had gone over its limits and promising "to pay next Tues- day." Even so these financial troubles must have been a source of worry to John Morrell. In fact, they were if this letter is any indication : 40 2 1 St. December, 1871 Messrs. Budgett & Co., Bristol Dear Sirs, As you appear to be doing more in the provision trade, and I am thinking of retiring from it, I thought perhaps my business and connections might be something in your way. If so, I shall be glad to hear from you, when I would either come over to Bristol or meet you here. It would be quite premature for me to say anything about the returns, profits or value of the business at present, but everything would be thrown open for your fullest investiga- tion when the time arrives. Your reply at your earliest con- venience will much oblige. Yours truly, (Signed) JOHN MORRELL P.S. The strictest confidence is required. Evidently this letter brought no reply from Budgetts because he had to write them again in January of 1872, reminding them of his letter and of the fact he had not had a reply. He ended by asking them to please make a decision. Apparently his offer was turned down because no further correspondence on this subject has been found. It is interesting to note that Budgett & Co. is still in business and is a customer of the Liverpool organization at the present time. We have already reported the company's move to 33 North John Street in Liverpool because of the increase in imports from the United States. Expanding business through the company's Amer- ican connections made several moves necessary in the next few years. In 1869 or 1870 quarters were taken at 5 North John Street and in 1 87 1 a warehouse was taken over at 3 Bankhall Street, Derby Road, Kirkdale. In 1873 a lard refinery was established at Dock "C," Dock Warehouses, Birkenhead, across the Mersey River from Liverpool. It is quite possible that lard refining on a minor scale had been started in Sir Thomas' Building in 1867. There are several vague 41 references to such an operation in notes and correspondence of some of the firm's individuals, but there arc no substantiating records. In 1874, the company moved to 5 York Buildings, 14 Dale Street. That was the last move of this period. But to go back to the lard refining business again. It is quite pos- sible that lard refining was started in 1867 because bacon and hams, exported from the United States and Canada, were packed in lard to preserve them in a fresh and mild condition for summer use. In fact hams and bacon packed in this manner became an important feature in the company's English business at this time. Sides were packed in hogsheads and the hams in tierces, surrounded by unre- fined lard. After the meats arrived in England they were unpacked as needed and dried or smoked, the lard was then refined at the Birkenhead works, or if earlier, at the refinery in Sir Thomas' Build- ing. The discovery of packing in lard was made too late to become a major factor in the shipment of meats from the States. By that time summer curing by the use of ice had reached such a state of perfection, that the lard process was rendered unnecessary. How- ever it is to the company's credit that John Morrell discovered the lard packing process and was granted a patent on it. The background to John Morrell's discovery of the lard packing process for meat is a strange story. A vessel, making the cargo run between New York and Liverpool, ran short of fuel before reaching her destination at Liverpool. This fact compelled the use of the cargo as fuel and as lard and bacon were the handiest and most inflammable, they were used. When the voyage was completed, the remainder of the bacon and lard was shoveled indiscriminately into boxes and tins and delivered to the company. Expecting the product to be worthless, the goods were allowed to lie for a considerable length of time in such condition. But when the boxes were opened and the bacon washed, it was still found in excellent condition. The result was lard packing, a process for which John Morrell was granted a patent. The process was used by the company for about six years and was a most important factor in developing the ham and bacon import branch of the business. 42 When the Birkenhead refinery was opened George Morrell was placed in charge and was later succeeded by Alfred Illingworth. Illingworth had become apprenticed to the firm as a boy of 12 years, this apprenticeship expiring November 20, 1865. He was a brother- in-law of Thomas D. Foster, having married the latter's sister, Ann Elizabeth Foster, in 1871. He takes an important place in the his- tory of the company and Foster, an associate as well as a contempor- ary, said of him: "During the following 22 years (1865-1887) of his identification with the business he filled every position of trust in the firm from stock clerk to cashier and general manager of the Birken- head works (lard refinery). He enjoyed the confidence of John Mor- rell to the fullest degree and it was to his watchfulness and faithful- ness that the business owes much of its success." After three years with the English firm, Thomas D. Foster was selected by John Morrell to go to New York to become associated with Atkinson and Bell in the company's office in that city. When he left Liverpool he was employed as intaking stock clerk. Arriving in New York on July 25, 1868, he started as a clerk and later became office manager. At the time of Foster's transfer to New York, the directing heads of the company were: John Morrell, the principal; Alfred Ackroyd, confidential bookkeeper and assistant to John Morrell; George Mor- rell II (fourth in direct succession) in charge of warehouses, re- finery and salesmen; Alfred Illingworth, cashier and office manager; Fred Jackson, principal traveling man at Bradford; and Thomas Atkinson, Humphrey Bell and Thomas D. Foster in New York. Alfred Ackroyd had returned to work for the company during the winter of 1866-7. He was advanced to manager of finances, buying and selling, and also given control over the American interests. In his capacity of manager of the American business he made several trips to America, his first in 1870 when he came across the ocean with Robert Morrell. His last visit as a member of the firm was made in 1875. There is some discussion as to whether John Morrell made one or two visits to America, or for that matter, if he ever landed on 43 North American shores. Foster, in his notes written in 1909, states definitely that "the principal made two visits to the States and Can- ada." He says the first visit was made in the spring of 1866 and that John Morrell was accompanied on this trip by his wife. They visited Cincinnati and Chicago but were forced to hasten home because of the failure of Averend Gurney & Co. of London, a failure which brought a serious monetary panic in England. According to Foster the second trip was made in the spring of 1868. It came about through a plan John Morrell had for setting up a separate firm in New York, consisting of Atkinson and Foster. The new firm was to be patterned after the style of W. P. Sinclair & Co., Liverpool, and John and Thomas Sinclair in New York. In spite of this direct reference to John Morrell's visits in Ameri- ca, there seems to be evidence to indicate that he never did make such visits, and nothing to corroborate Foster's statement. However plans for a separate New York firm fell through and de- cision to lease plant facilities in Canada was made. The quality of meat products coming to the English market during the association with Davies of Canada had created a demand for Canadian meats in England. The English trade felt that the quality was superior to that of meat coming from the United States. Consignments from Davies were discontinued after about a year, thus making it neces- sary that a move be made to Canada to meet the requirements of the English trade. Bell was transferred to London, Canada, in November of 1868 to take charge of the firm's packing house there. Foster now became manager of the New York office and continued in that position un- til December of 1870 when he also was transferred to Canada to assist Bell. The move to a Canadian source of supply in 1868 was another natural move for the company. The connection with Davies of Canada had proven profitable to the firm and the English trade had come to like Canadian products. Bell was transferred to London, Ontario, Canada in the fall of 1868 and started operations in a leased plant at 72 and 74 King Street. This plant was a small one, started 44 the year before by James Fergusson. Old records would seem to in- dicate that Fergusson did an annual business of about $50,000 and employed approximately 20 persons. Following the lease of this plant by John Morrell & Co., it is estimated that their business vol- ume and employment figures approximated those of Fergusson's for the first season. Hogs were slaughtered in the London plant and the meat cured and shipped to England during the cooler months. When warm weather arrived activities were confined to the purchase and export of butter and cheese, much of which was produced in that section of Canada. The Morrell business in London grew and late in 1870 Thomas D. Foster was transferred to assist in the management of the plant there. In the fall of 1871 he was sent to Chicago to open another plant. During the year that followed he divided his time between the London and Chicago plants, and occasionally went to New York to attend to the affairs of that office. In 1872 big plans for the expansion of the business were made. Already two plants, in London and Chicago, were being operated. It was planned to open two more in London, and a fifth in Toronto. But while these plans were developing, Humphrey Bell resigned to go into business for himself in Canton, 111. Foster, who was living in Chicago at the time, was forced to return to London with his wife and family and to take up residence there. Undoubtedly, the chief reason for giving up the plans for expansion was the resignation of Bell. Following Bell's resignation, Foster was made manager of the company's business and the chief representative in the United States. His selection illustrated the sagacity, as well as the sentiment, in the character of John Morrell. Foster was his nephew, the son of his dearly beloved sister, Mary. Foster had been brought up in a strictly religious family and had been trained in the business since boyhood. Those two factors meant a lot to John Morrell. Foster was ready to take over the management of the company's operations in the United States and Canada. He had worked with his father in the shop in 45 Castlecomcr; had worked in the curing and slaughtering plants in Ireland; had traveled with the pig buyer over the Irish countryside; there were the many years spent with Atkinson and Bell in Ireland and New York; and finally there was his experience in the Liverpool office and on the docks where he acted as shipping clerk. When Foster became manager of the company's operations in the United States and Canada it marked a new departure in the business. Foster knew bacon; he was not a specialist in butter, cheese, flour, grain or linseed. It was his policy to concentrate only on what he knew about and to make good on that. Therefore, it was only natural that bacon should receive the greatest attention and that other lines would be dropped. There is some question as to the various moves made by the com- pany while located in London, Canada. London directories for the years that John Morrell & Co. was located in that city would seem to indicate the first plant was at 72 and 74 King Street. However, in- terviews held several years ago with a former employee of the Lon- don plant and the wife of another, would indicate a possible ques- tion. James Treneman, who worked both in London and Ottumwa, said : "I started to work for Thomas D. Foster in London on October 14, 1872, at the English Packing plant on Talbot Street. The place was found inadequate to meet the needs of the growing business and in the spring of 1873, Robert Morrell (who had come over from England to assist Foster in the management of the London and Chi- cago plants) and Mr. Foster rented the Fergusson packing house on York Street. The business soon grew beyond its limits and they made arrangements to lease the Shaw packing house on King Street. "Hogs were killed at the English Packing plant until the city made complaint. Then Mr. Foster had some lots in East London fenced and built a slaughterhouse there and moved from the English Packing plant and killed there." Mrs. Fred Bullock, Sr., a resident of l,ondon at the time and wife of Fred Bullock, Sr., former superintendent at Ottumwa, says that while the company was in London three separate buildings were 46 leased, one for killing, one for curing, and one for shipping. She had no recollection of operations being carried on at any other point. At another time, Mrs. Bullock reported that the company had killed hogs in a building which was owned by her father-in-law, but that it did not have a King Street location. However, it is definitely certain that quarters were taken on King Street in 1873, at a site about eight blocks east of the first King Street location. This property was owned by Benjamin Shaw, a London commission man, who joined the company and assisted in its opera- tion. Foster's papers tell something of the busy life he led during his years in London. He bought many of the hogs, directed operations of the plants, went on scouting trips for ice, ran the engine when the engineer failed to show up, and trained the workmen so that the meats would be processed and handled according to Morrell stand- ards. Frequently, in hot weather, slaughtering would be started at midnight so as to avoid the heat of the day. Even with the use of ice, it was difficult to control temperatures accurately and the condition of the meat as it went into the cellars was a continual source of worry. At London, and later in Chicago, the company did some experi- menting with a singeing machine, designed to turn out meats for Ire- land, to compete with the singed Wiltshires cured there. But it seems this machine was far from being perfected and required the attention of an experienced mechanic much of the time. However, it was the first singeing machine in either London or Chicago. It was also from London that Morrell meats were shipped packed in lard. Foster had been sent to Chicago in September of 187 1, and was there when the great fire occurred, October 8 of that year. He was living temporarily at Briggs House on the corner of Randolph and Wells Streets. An office had been taken in a building at the south- west corner of Clark and Washington Streets and a small packing house on Archer Avenue and Quarry Street leased. Although the downtown offices of the firm were destroyed the packing house was not harmed and did not suffer a day's loss in its operations. One of the outstanding reports of the great Chicago fire was written by 47 Foster to his parents and it seems logical that it have a place in this history. The letter was written on Hallowe'en, three weeks later. It was a long letter and therefore several omissions will be noted, but the main story is given just as he penned it. He wrote: "To begin ... I took my usual Saturday evening (October 7, 1 871) stroll, 'round the city, just ready to look at anything interest- ing. Nothing happened; but just as I was going into the hotel at 10 o'clock iherc was a glare of a fire in the sky. I did not feel like going to bed so thought I might spend an hour looking at the flames. It was a big fire in my eyes then, a large wooden house near a row of splendid brick ones; the latter they were trying to save, and suc- ceeded. 1 was in a splendid position for seeing, without getting any of the water the firemen directed at the crowd every few minutes. It was nearly over and I was just going to leave, when someone shouted that there was a fire on the west side. I looked up and saw the sky all lurid and started off to see the new one. It looked very awful, sweep- ing houses before it like chaff, until it got to a lumber yard. Then the efforts of the firemen appeared useless, twenty acres of buildings and wood were all ablaze; the sight thrilled me through, as I thought there would be no stopping it. I assisted people to carry things out of their houses, and did what I could to help them, until the fire ap- peared to be so far under way that there was no further danger. I hung 'round until 2 o'clock then went home, got into bed satisfied I had seen a tremendous calamity. The biggest of any I had ever seen or hoped to see. But alas, how much was I disappointed! . . . "I had been reading about half an hour (this was Sunday evening, October 8) when the fire bell tolled 'three-forty-two' three times. I looked out and saw the sky red in the direction of the fire of the previous evening, but paying no attention to it, I turned 'round and read away. I looked again and saw it increasing . . . the fire was more than two miles away, still I felt very uneasy and could not go to bed. ... 1 concluded to go see it. . . . "I got up to the fire at 10:45, but could not get near it on account of the heat. How the firemen stood it, 1 don't know! A general alarm was sounded and thirty steam lire engines were on the spot 48 soon after I arrived. It was a grand sight, but hellish in the extreme; streets, houses, trees and everything in one grand furnace. It was not a bhize like the night before but a white melting heat; volumes of flames were cut off from the seat of the fire itself and carried over into other streets. In addition to this there was a perfect shower of sparks, all red and glowing. The fall of them was like golden snow, as far as the eye could reach upward, the air was filled with them; not only sparks, but burning brands of wood six inches to two feet long, and from one inch thick to six inches. This may seem incredi- ble but it is true. I saw them myself; saw them fall in the streets, and worse than that, on houses with wooden roofs, and on people's heads, almost knocking them down. The wind was blowing a fearful gale at this time and that accounts for it. "At II :i5 these brands set fire to the roof of a church 300 yards from the main fire. . . . The edifice was of wood and it went like a matchbox. . . . This is where the real trouble commenced. There were two immense fires now, and the fire brigade divided. This left the first fire almost to itself and in a few minutes it joined the second one; the sight was now dreadful. It swept along, burning wood, bricks, stone alike; I never saw the equal. The two latter materials gave out sooner than the wood; they melted down like wax, while the wood burned so long as a stick remained. It flew from house to house, almost as quick as one could walk, until it reached the river. . . . "The people were mostly looking at the fire, but as soon as they saw their homes in danger a general packing up could be observed in all the houses and soon after a regular exodus, everyone, old and young, carrying something. The men looked pale and callous as a rule; the women ran about in an excited manner, but none fainted. . . . Old women were carrying weights too heavy for men, and young women were dragging trunks, (enough for a donkey to pull), no doubt containing their best clothes, or sat on them and wept quietly when they could not pull any longer, and had to leave them for the fire to lick up, as a giant would swallow a midge. I was not an idle observer during all this. I carried boxes and bundles without number, placing them in nooks the owners considered safe. Vain 49 delusion. Everything I laid hands to save was eventually burnt. . . . r crossed (over the river) to what is called the south side. "It was thought it (the fire) could not cross eighty yards of water. The firemen made a hard fight here to prevent its going any further, and it looked somewhat as if they might succeed. At this point 1 left, a fire having broken out behind me about 400 yards away. . . . The old fire soon jumped the river, and joined the new one. ... I saw that it was within a few yards of the gas works so thought I had bet- ter quit and plant myself at a reasonable distance from it. In going away I took the liberty of hammering people up, as the fire was spreading so rapidly it might reach them before all of them could get out. ... I was busy enough assisting to put out little fires . . . until I got to the heart, and best part of the city where all buildings were built of brick, stone, iron, or marble, and many of them without any wood except the office desks and furniture. I felt sure the fire would never go through these buildings; still, to make my mind easy I went to the Brigg's House and commenced packing. This was i o'clock, the wind was still blowing a gale, the fire was within a quarter of a mile from my hotel and just beginning to cross the street to the good part of the city. Although I was packing I really did not believe the fire would reach the place where I was. ... I again walked out- side to see the progress of the fire. It had taken full possession of the fine buildings I before mentioned. It was surprising to see the way they tumbled; marble buildings cracked away for a time, then burst out in a volume of flame; the walls parted, and down came the whole fabrication a jumbled mass of smouldering ruins, other buildings were burning and tumbled the same way. I was watching in one place, when a cry was raised that the city hall was on fire. . . . ''I now thought it about time to move, and see after my things, so commenced lugging them downstairs. . . . When I had them down I went to look for a carriage or an expressman to take them away. They were asking fifty dollars for a carriage; as this would not do I went up the street a piece, met a man with a light wagon, asked what he would take me a mile away for. He said five dollars down. 'Done,' I said. ... Just as I was leaving the place took fire, and I SO heard people offering one hundred dollars then one hundred and fifty dollars for a carriage, but they could not get away. As I was going along people applied to the expressman offering him three or four dollars for the conveyance of a trunk, but ten dollars was now his charge. People refused to pay him that amount and I am sure they all lost their things, as we were the last to cross the bridge. We took up a young fellow with a similar lot of traps to mine and we stuck together. The expressman put us down at his own house, (in the north part of the city). We left our things inside and went to see how the fire was getting along. . . . The wind was blowing in the north-easterly direction and I thought the fire would wear out at the lake and not be able to cross the river to the north side. In this I was mistaken . . . for we found the bridge we had just crossed on fire, and that the north side was doomed unless the wind changed. . . . We hired a boy with a wagon who drove over to the west side. Here we considered ourselves safe, put down our luggage on the side-walk and sat on it 'till daylight. . . . This place was partly a prairie so had a splendid view of the fire although fully three miles from it. The smallest print could be read with ease, the light was so intense. As day dawned the light faded, but daylight revealed the volumes of smoke rolling up from the city, and the ruins of the previous night's destruction. The fire was now sweeping the north side entirely un- checked, the waterworks being burnt and no water in the town." Mr. Foster then describes how he and his friend moved their luggage on to a place the latter knew and left it there, returning to- wards the city afoot. The road was crowded with all sorts of vehicles carrying furniture and personal baggage of the refugees. Mr. Foster then sought out the home of a Mr. Small, to learn the whereabouts of a mutual friend, Mr. Kenny, whom he had not seen since Sunday evening, each supposing the other dead. Mr. Kenny did not appear until that evening. Mr. Foster was surprised to find the south side still burning, with the fire working against the wind at a rapid rate. He and Mr. Small went to inspect the extent of the fire; the letter continues : "The north side was swept clear out to the country, burning up 51 Lincoln Park and a Catholic cemetery. Seventy-five thousand peo- ple resided on the north side, and every house, with one exception, was burned to the ground, not even the walls standing. Altogether 100,000 people were rendered homeless and had to camp out on the prairie without any covering for two days and nights, having little to eat and scarcely any water to drink. This is something awful to think of. ... A great many died, and no wonder. "The fire lasted thirty-six hours, clearing everything before it for a distance of five and a half miles, commencing in a point, and finish- ing two miles in width. . . . "Next day the city was put under martial law, General Sheridan commanding. I was made a patrol between 12 and 4 o'clock at night; this was to prevent ruflians from firing other places. Several of them were caught and immediately shot or hung up to some lamp post. The city was without water ten days, and fourteen without gas, so it presented a miserable appearance. Mr. Kenny and myself went to the lake twice a day and brought as much water as supplied the Small family. . . . People a long way from the lake suffered fear- fully; all the water carts were put to hauling water, but all they could draw was only a speck of what was needed. . . . "I was greatly amused by the unlikely things that many people in their excitement tried to save. On the west side the rage appeared to be to save their stores and crockery. . . . The first thing brought out was a stove, then a lot of tins and glassware; in other places I saw people open their windows upstairs, and throw out looking glasses, chairs, wash pitchers and basins, all of which were broken the mo- ment they touched the ground. . . . When the fire got amongst the stores, cabmen, expressmen and roughs in general were dressed up in much better style than usual. A large number of silk hats being particularly observable on the gents, showing plainly that some stores had suffered. A lot of prisoners in the city jail were let loose; the first thing they did was to run over to the jewelry stores and plun- der them of all the valuables that were convenient. Many of the store owners saved what they could and then opened the doors and told the multitude to help themselves. One piano store owner commenced 52 pulling pianos out of a third story window. This was the worst piece of business that I saw, for they were smashed to splinters when they struck the ground and greatly endangered the lives of people around. Pistols were freely used, a great many ruffians were shot for trying to break into diflferent places, and in return, a few respectable men were shot by them. One expressman that we employed was going to drop our things out on the street after he got a few yards, when my newly-made acquaintance drew his revolver and told him he would blow his brains out if he did. He drove quietly on after that. "A great many lives were lost, more than will ever be known. A lot of people congregated in the tunnel under the river and most of them were smothered or burned. There were two things that helped the fire along wonderfully. They were the wooden pave- ments and the things thrown out of homes and left there." With Foster in Chicago prior to the time of the fire were Alfred Ackroyd and Patrick Kenny. Ackroyd had left Chicago for Mil- waukee just before the fire began. He had gone to consult with Fred- erick Layton, pork packer, merchant and personal friend of John Morrell, who was supplying the firm with Wisconsin and Minnesota flour. Kenny had just arrived from Waterford, Ireland, to begin the singeing of hogs for the new Chicago plant. Foster was continually impressed with the idea that the company should locate nearer the center of the hog producing area. His ac- tivities in Chicago gave him opportunity to observe the increase in population of the corn belt and to note its continually increasing producing acreage. He discussed his thoughts along this line with John Morrell, and the latter, forward looking as ever, instructed Foster to survey the field at the earliest possible moment. So on June i8, 1874, soon after his return from a trip to Ireland and England, he left London for his trip to the west. Foster kept a diary of this trip and recorded a brief, minute record of his observa- tions of each place visited; the packing houses already established; those for rent or sale; the number of hogs, cattle and sheep slaugh- tered; the existing freight rates to the large distributing centers as well as to distant markets; the prices demanded and the prices se- 53 cured for hogs and cattle delivered in these centers he visited; and the general characteristics of the social, religious and economic life of the communities. His journey took him through the following towns and cities in the order named: Detroit, Indianapolis, Chicago, Cedar Rapids, Burlington, Ottumwa, Dcs Moines, Council Bluffs, Omaha, St. Joseph, St. Louis, Vincennes, Terre Haute, Decatur, back to Chicago, and on to London. He arrived in Ottumwa in the evening of June 24, 1874, regis- tered, and spent the night in the Ballingall Hotel. At last he was in the town whose name had made such an impression on him as a lad in faraway Ireland. And at last, he would be able to keep a promise made on shipboard. On the morning of June 25 he called on Captain J. G. Hutchison, who drove him about the city. His account of the day was brief: "Looked through Ballingall's packing house situated on the Des Moines River. Country all wooded and hilly. Went to Mr. Moss' to tea and Mr. Palmer's croquet party." The next day he conferred with Messrs. Ballingall and Ladd, both of whom had packing houses in Ottumwa. He noted that the price of hogs was from "fifty to seventy-five cents below Chicago — can get moderate selection — sometimes send drovers out — but generally can get hogs brought in — - hogs are fed and watered here — freight over Chicago 10 cents to 20 cents average 15 through to Liverpool." He then left Ottumwa to continue his trip. Apparently his visit in Ouumwa didn't register with the news- papers or with the chamber of commerce, if there was such an or- ganization in that day. His visit was not recorded in either of Ot- tumwa's two papers. However, if he had time to look over either paper he might have noticed two items of interest. The item in The Daily Courier (June 24, 1874) read: "We are informed that $800 is still wanting, in the way of a loan for two years, to secure the rebuilding of Ladd & Co's. Pork House. When built it will be of brick and much more convenient than the old house was. Have we not men enough who have the magnanimity and public spirit to subscribe that $800? Let this be made up im- mediately and work will at once be commenced." 54 And this item came from the Spirit of the Titncs, a weekly of the same date: "LIVE STOCK. — One hundred and sixty-five car loads of cat- tle, hogs and sheep passed through here on the C. B. & Q. on Sunday morning." Though Foster's stay in Ottumwa was short it represented much to him. A dream of his youth had been realized. He had not only visited the town but also the actual factory from which had come that box of bacon. Likewise it is important to note that the first per- son he visited was Captain Hutchison, thus renewing an acquaintance that had grown aboard ship on a trip from England to America. Quite possibly it was the trip from which he had just landed when he started his western journey of exploration. He was indeed for- tunate in making friends with the Captain. Captain Hutchison was a "gentleman of the old school," courtly in manner, solid and depend- able in his citizenship, successful in merchandising, generally sincere and active in his religious duties. The two were of like minds and the visit in Ottumwa only confirmed the shipboard friendship. Hut- chison added to his previous propaganda about Ottumwa during Foster's visit, and acted as his personal escort during his stay. The Captain's courtesy and fellowship made a definite impression on Foster and sealed their friendship, a friendship that was to be broken only by the death of Captain Hutchison. However, the decision which was to bring John Morrell & Co. to Ottumwa was not made until some three years later. Operations in the Canadian plants were discontinued in 1874 and all slaughtering was concentrated in Chicago. In the last chapter mention was made of William S. Thompson, a resident of Waterford, Ireland. This gentleman and his family had left Ireland for the United States five years before Thomas D. Foster set sail from Liverpool to take up new duties for tlie company in New York. The Thompson family soon became settled and the only daughter, Eliza Matilda, completed her education in New York schools. When Foster arrived in New York this young lady was em- ployed as a governess in the family of Thomas Atkinson, principal 55 reprcsentatixc of John Morrell & Co. in the United States and the man with wliom he was to work. Soon after his arrival Foster met Miss Thompson and was very strongly attracted to her. He was quite in love with her before many months had gone by and soon let her know what was in his heart and mind and pleaded for her accep- tance. That her answer was nut delayed is indicated by this brief record which Foster wrote himself: "July 2, 1869 (lacking just a few days of one year since he landed in New York) 1 was engaged to Eliza Matilda Thompson, who was the only daughter of William Sparrow Thompson, a freeman of the city of VVaterford, Ireland, and Elizabeth Thompson, a daughter of Mr. ?vlichael Ardagh and sister of Robert Ardagh of Pouldrew, County Waterford, Ireland. In October, 1872, we were married at the Church of our Saviour, Clinton Street, Brooklyn, and took up our residence at London, Canada, and until November, 1874, resided alternately at London, Brooklyn and Chicago. At that time (1874) we rented and furnished our iirst house, corner of Prairie Avenue and Twenty-first Street." (Chicago) It was while the Fosters were living in Brooklyn that their first son. \Villiam Heber, was born, July 20, 1873. After Mrs. Foster's death in 1879, her family name was added to the eldest son's name. When William Heber was 16 months old the family moved to Chi- cago, to the location given previously. The second son, Thomas Henry, was born in Chicago, January 31, 1875. In that same year a residence was found at Cottage Grove Avenue and Thirty-first Street which seemed more desirable and the family moved into it. During their stay in this home a daughter was born. 56 I 8 f 7 1 a b 6 /^XiAtslo^ The period from 1877 to 1886 was one of great S^^'^*jr**^ change and considerable expansion for John Morrell ^r ^y ^f & Co., both in England and America. In England, quarters serving the company to this day were taken, and in Amer- ica, packing operations were started at Ottumwa, Iowa. This period saw the death of John Morrell and the passing of the business into the hands of his four nephews. The continued expansion of tlie packing business in America and greater receipts of meats from that country made it necessary for the company to seek more adequate quarters in Liverpool. In 1878 such quarters were found at 2 Victoria Street. And in 1886 the final move was made to 57 Victoria Street. That has been the address of the English headquarters ever since. The earliest minute book in the possession of the Liverpool office begins with the minutes of a meeting of the directors held in Liver- pool on May 14, 1880. A sheet pasted in the front of this book records the fact that George Morrell, John Morrell and Thomas D. Foster 57 were elected directors on October i, 1879. It would appear therefore that October i, 1879, should be accepted as the starting date for con- stituting the company as a corporation and the establishing of a board of directors. Inasmuch as John Morrell owned the business personally at this time, it was John Morrell, the younger, referred to above as having been elected a director. The minute book records a meeting on Au- gust 6, 1880, and the following directors attended: John Morrell, George Morrell, and John Morrell, the younger. Thomas D. Foster was in America and could not be present. The membership of the first board of directors of John Morrell & Co., Ltd., then was John Mor- rell, George Morrell, John Morrell, the younger, and Thomas D. Foster. In 1880, because of failing health, John Morrell decided that he no longer wished to be so actively engaged in the business and therefore took steps to have the business converted into a limited lia- bility company. He incorporated the company on April 21, 1880, and about a month later an agreement was drawn up and registered, and under its terms he parted with the company. The details of this agreement are given here inasmuch as they represent an important step in the history of the business. Under John Morrell the company was wholly his property. Under the terms of the agreement, while he was to remain as chairman until his death, others entered into the active management of the business. Alt Aor^^m^ttt made the Twenty-seventh day of May, 1880, between JOHN MORRELL the elder, of Liverpool, in the County of Lancaster, Provision Merchant, hereinafter referred to as the Vendor, of the First part: FREDERICK Haigh, of The Dock Warehouses, Birkenhead, in the County of Chester; GEORGE Morrell, of No. 2, Victoria Street, Liverpool aforesaid; John MORRELi> the younger, of No. 2, Victoria Street, Liverpool aforesaid; FREDERICK Jackson, of Bradford, in the County of 59 Yorkshire; ALFRED Illingworth, of The Dock Warehouses, Birkenhead aforesaid; TilOMAS DoVE FOSTER, of Ottumwa, in the United States of America; and THOMAS MORKELL, of The Dock Warehouses, Birkenhead aforesaid; all late in the em- ployment of the said John Morrell, and now of John Morrell and Company, Limited, of the Second part: and JOHN MOR- RELL & Co., Limited, hereinafter referred to as "The Com- pany," of the Third part. WHEREAS the vendor has heretofore carried on business at Liverpool aforesaid, and at Birkenhead, in the county of Chester, and at Ottumwa and Chicago, in the United States of America, and at Paris, in the Re- public of France, as a provision merchant and curer and importer of hams, bacon, and lard, and refiner of lard, and other businesses connected there- with, under the firm or style of John Morrell & Co. AND WHEREAS the vendor is entitled to a patent of the United Kingdom, granted to him by I,etters Patent, dated the 26th day of August, 1870, for improvement in the packing of bacon, hams and lard, and in the mode of preserving bacon and hams. AND WHEREAS the Company has been formed with the object of purchasing the business, stock-in-trade, book debts, and other property and assets of the vendor, embarked in the said business, includ- ing the said patent. AND WHEREAS a balance sheet of the stock-in-trade, assets, credits, debts, and liabilities of the said vendor in his said business, upon the 30th day of September, 1879, has been drawn up and agreed upon by all the parties hereto, and a copy thereof is contained in the first schedule to these presents. AND WHEREAS upon the treaty for the for- mation of the Company, it was agreed that the parties hereto of the sec- ond part should take shares in the Company, to the respective amounts set against their respective names in the third schedule to these presents, and that the respective amounts, due to the said Frederick Haigh, George Morrell, Thomas Morrell, Frederick Jackson, Alfred Illingworth, and Thomas Dove Foster, from the said vendor on deposit as appearing in the said balance sheet, should be applied, as far as the same may be re- spectively required and will extend in payment for such shares. AND WHEREAS the Company was incorporated under the Companies' Acts, 1862 to 1879, on the 21st day of April last. AND WHEREAS the nom- inal capital of the Company is £100,000, divided into One Thousand Shares of £100 each, of which 600 are ordinary or A shares, and 400 are deferred or B shares, the relative rights of the A and B shares being such as are provided by the Articles of Association of the Company. 60 Now It is hereby agreed as follows: — I. — The vendor shall sell and the Company shall purchase: — First the freehold hereditaments at Ottumwa, in the State of Iowa, in the United States of America, described In the second schedule to these pres- ents, together with all the erections and buildings thereon, with the appur- tenances thereto belonging. Secondly, the tenancies and interest of the vendor in the warehouse and premises now occupied by him in carrying on his said business in Birkenhead, in the county of Chester, and which he holds under the Mersey Docks and Harbour Board, and of the counting houses and premises in Victoria Street, Llv-erpool, and in Paris, and any other premises occupied or used by him or his agents in his said business, in England, France, or America. Thirdly, all that the invention of the said vendor, patented by the said Letters Patent, on the 26th day of August, 1870, and the said Letters Patent for the same, together with the full benefit of all extensions and prolongations of the term by the said letters patent granted, and also all improvements on the said invention which have been already, or may hereafter be discovered by the vendor in con- nection with the packing of bacon, hams, and lard, or with the mode of preserving bacon and hams, or which can be used for any purpose for which the said invention can be used, and all if any other patent rights of the vendor. In respect of the same Invention in the United Kingdom or elsewhere. Fourthly — the plant, machinery, furniture, tools, implements, stock of provisions and lard, and other stock-in-trade, chattels and effects what- soever of the vendor, now being in or about the said premises, described in the said second schedule, or in or about the said last mentioned ware- houses and premises at Birkenhead, or In or about the counting houses or other premises occupied or used by the vendor or his agents in Victoria Street, in Liverpool, Paris, and elsewhere, and all other provisions, lard, and other goods wheresoever situate and whether in transit or otherwise belonging to the vendor as part of the stock-in-trade of his said business, on the 30th day of September last. Fifthly — the good-will of the said business and all book and other debts due to the vendor in connection with the said business, comprised in the said balance sheet, and the full benefit of all securities for the said debts, and of all contracts, engagements, rights, and privileges to which the vendor was entitled In relation to the said business on the said 30th day of September last. 2. — The consideration for the said sale shall be the sum of £70,661 OS 8d, which shall be paid and satisfied as follows, namely, as to the sum of £30,661 OS 8d, part thereof in manner hereinafter specified, and as to 61 the sum of £40,000, the residue thereof by the allotment to the vendor of the four hundred deferred or B shares in the Company of £100 each, and the credit of the full sum of £100 upon each such share. 3. — The said business and the stock-in-trade, and book and other debts of the vendor as appearing in the books of the said vendor, and the aggre- gates of which are set forth in the said balance sheet, all of which said debts are guaranteed by the vendor as good debts, shall be taken over by the Company, as from the 30th day of September, 1879, up to which day, all rents, rates, taxes, and other outgoings of the freehold and other prem- ises occupied or used by the vendor hereinbefore mentioned, have been or shall be borne and paid by the vendor, and all the purchases, sales and other transactions of the vendor under his said firm of John Morrell & Co., subsequent to the said 30th day of September, 1879, and all debts and credits on account of the same, and all rents, rates, taxes, and other outgoings of the said freehold and other premises hereby agreed to be conveyed or transferred thereafter accruing, shall be deemed respectively as the case may require to have been entered into and made on account of and to be payable or receivable by the Company, and the Company shall duly pay all the debts of the vendor incurred in the business carried on under his said firm of John Morrell & Company, and appearing in the said books of the vendor and the aggregate of which appears in the said bal- ance sheet, but not the debt or claim (if any) of one Henry Lafone, which is disputed by the said John Morrell, and shall also pay all debts and liabilities of the vendor incurred in the said business, after the said 30th day of September, 1879, and duly entered in the books of the business, and shall be entitled to all profits made subsequently to the said 30th day of September, 1879, and shall indemnify the vendor, his executors and administrators and his and their estates and effects from all actions, pro- ceedings, costs, and expenses, claims and demands in respect thereof. 4. — The Company shall undertake and perform and have the benefit of all contracts and engagements of the vendor in his said business; which were current on the 30th day of September, 1879, and shall indemnify the vendor, his executors, administrators, and assigns, and his and their estates and effects from and against all actions, proceedings, costs and expenses, claims and demands in respect thereof. 5. — The title of the vendor to the said premises comprised in the said first schedule, and to the said letters patent, shall be accepted by the Company and the Company shall not make any objection or requisition in respect of the same. 6. — The purchase shall be completed as soon as conveniently may be, and at furthest within 30 days after the incorporation of the Company, 62 when the Company shall allot the said four hundred B shares to the ven- dor, and credit the same in manner aforesaid, and the vendor shall there- upon, or as soon as conveniently may be, transfer the possession of the said warehouses and premises at Birkenhead, and the said counting houses and premises in Victoria Street, Liverpool, and in Paris and America, and all the stock-in-trade, furniture, machinery, implements, utensils, and chat- tels, hereby agreed to be sold, and the books relating to the said business to the Company, and shall at any time thereafter, on the request and at the expense of the Company, execute a proper assignment to the Company, of the said letters patent, and also do any acts and execute any convey- ance, transfer, or other deeds or documents that may be requisite or nec- essary for conveying the said premises described in the said second sched- ule hereto to the said Company. The vendor shall not be required to enter into any covenant in the assignment of the said letters patent. 7. — The said sum of £30,661 os 8d, the balance of the said purchase money, shall bear interest at the several rates and shall be paid in manner following, that is to say: — £12,000 part thereof, together with interest at the rate of £5 per centum per annum, from the 30th day of September, 1879, shall be paid by the Company to the vendor, on the 31st day of March, 1880; the sum of £10,000 further part thereof, shall bear interest at the rate of £7 los per cent, per annum, from the 30th day of September, 1879, which interest shall be paid by the Company to the vendor half year- ly, on every 31st day of March and 30th day of September, until payment of the principal, and the said principal sum of £10,000 shall be paid by the Company to the vendor on the 30th day of September, 1882, and the sum of £8,661 OS 8d, the balance of the said sum of £30,661 os 8d, shall remain in the hands of the said Company at call, and shall bear interest after the rate of £5 per cent, per annum, which shall be paid on the half- yearly days hereinbefore mentioned, or at the option of the vendor, with each instalment of principal, provided always that the vendor, his execu- tors or administrators shall only be entitled to require payment of the said sum of £8,661 os 8d, in sums of not exceeding £3000 each, and shall give to the Company three calendar months previous notice in writing be- fore requiring any payment to be made and shall not require any payment to be made until after the expiration of at least six calendar months from the due date of any preceding payment, and also that the Company shall not require the vendor, his executors or administrators to accept payment of any part of the said sum of £8,661 os 8d in larger amounts than £3,000 each, and shall give to him or them three months previous notice in writ- ing of their intention to make any such payment, and shall not require pay- ment to be taken except at an interval of at least six calendar months from the due date of any preceding payment. 63 o o o o r> o moo •+V3 o to f^ ^ c-H, t. o -o bn Si "5 - c = (1, s t:-T3.j i c JOP« O.X 1,^ S 2 E ■5 MM OH « •+ (?\ "l- o in 0. c ^ 1 M : '? • • • U) ™ T3 M^ "g^ i < -- 1 i'SS "■^i :^° ^^1:5 enh bro vi r . rent dis o-s';;;g m S -2 -S u - ^''l^sSl' "u OJ ^ " "2 >i sill S«2.H S '-' T3 '-"-' ^M&-t. OmoS 64 8. — The said parties hereto of the second part shall subscribe for and take the number of £ioo A shares set after their respective names in the said third schedule to these presents, and the respective amounts due to them by the said vendor, on the 30th day of September, 1 879, as appearing in the said balance sheet (which said amounts are to be taken over and paid by the Company as a debt of the vendor incurred in the business), shall be applied as far as the same may respectively be necessary, and as the same respectively will extend in payment for the same shares, and the sums so applied shall cease to bear interest after the said 30th day of September, 1879, and where the amounts so due to any of the said parties hereto of the second part respectively, are less than the respective amounts payable upon the shares so to be taken by them respectively, the deficiency shall be paid by them respectively forthwith, together with interest at the rate of £73-4 per cent, per annum from the 30th September, 1879. 9. — The Company shall pay all the costs, charges and expenses of and incident to the preparation and registration of these presents and of the Memorandum and Articles of Association of the Company and of such other assurances and things as aforesaid, and generally all costs, charges and expenses in relation to the formation and establishment of the Company. 10. — Before any of the shares to be allotted to the several parties hereto, pursuant to these presents are issued, a proper agreement shall be filed pursuant to section 25 of the Companies' Act, 1867, and compli- ance with this Act is hereby expressly declared to be a condition precedent to any agreement to accept an allotment of any of the said shares. II. — If any doubt, question, difference or dispute shall arise between the parties to these presents, touching these presents or the construction thereof, or any clause or thing herein contained, or any matter in any way connected with these presents or the operation thereof, or the rights, duties or liabilities of any party in connection with the premises then, and in every or any such case the matter in difference shall be referred to two arbitrators or their umpire pursuant to and so as with regard to the mode and consequences of the reference and in all other respects to conform to the provisions in that behalf contained In the Common Law Procedure Act, 1854, or any then subsisting statutory modification thereof. And upon every or any such reference the costs of and incidental to the reference and award respectively shall be in the discretion of the arbitrators or um- pire respectively who may determine the amount thereof, or direct the same to be taxed as between solicitor and client or as between party and party or otherwise, and may award by whom and to whom and in what manner the same shall be borne and paid, and every or any such reference 65 shall be made a rule of Her Majesty's High Court of Justice upon the application of either party, and such party may instruct Counsel to consent thereto for the other parties. In Witness whereof the parties hereto of the first and second parts have hereunto set their hands and seals, and John Morrell & Co., Limited have caused their Common Seal to he hereto affixed. THE SECOND SCHEDULE ABOVE REFERRED TO First — All and singular the land, real estate and premises comprised in and conveyed to the vendor by Edward H. Stiles and Emma his wife, of the City of Ottumwa, County of Wapello and State of Iowa, by a Deed bearing date the 22nd day of July, 1878, duly filed for record on the 23rd July, 1878, by the description following, that is to say the fol- lowing described real estate, lying and being in the County and State afore- said, to wit: — All that part of the east half of the south east quarter of section thirty (30), Township seventy-two (72), north of range thirteen (13), west of the 5th P.M., south of the south line of the right of way of the Burlington and Missouri River Rail Road, subject to the right of way of the Des Moines Valley Rail Road, and except Lots numbered one ( i ), nineteen (19), Twenty (20), one hundred and thirty-one (131), one hun- dred and thirty-two (132), one hundred and thirty-three (133) and one hundred and thirty-four (134) of what M'as known as Stiles Addition (covering and embracing a portion of the premises herein conveyed) be- fore the vacation thereof this day executed and made, said Lots having been heretofore conveyed according to said description by said Stiles to purchasers thereof, said tract herein conveyed, containing sixty acres more or less, subject to whatever right the public may have in a lane now open along the west side of said premises; and Secondly, All and Singular the piece of land, real estate, hereditaments and premises comprised in and conveyed to the vendor by Joseph Hayne and Mary Hayne husband and wife, of Wapello County and State of Iowa, by a Deed bearing date the 23rd day of July, 1878, and duly filed for record on the same day by the description following, that is to say — The following described premises situated in the County of Wapello and State of Iowa, to wit: — A piece of land beginning at south east corner of the west ( J4 ) half of the south east, {}i) quarter of section — 30 Township, 72 range, 13 west — thence north 935 5/10 feet, thence west 1527 feet to low water mark on the Des Moines River, thence south along the Des Moines River 6 Vo, east 5304/10 feet to a point where low water mark on the east bank of the Des Moines River intersects the south line of said section 30, thence east on said south line of said section 30 to the place of beginning, containing 30 3/10 acres more or less. Together with the full right and privilege for 66 ever to take ice from the Des Moines River along said land, and to use the said River for the purpose of discharging sewerage therein and for all other purposes. THE THIRD SCHEDULE ABOVE REFERRED TO Frederick Haigh 30 A. Shar George Morrell 20 John Morrell, Junior .... 20 Frederick Jackson 20 " Alfred lUingworth 15 Thomas Dove Foster ..-. IS Thomas Morrell 10 " At a meeting of the board of directors on August 20, 1880, fol- lowing the incorporation, John Morrell was elected chairman. It appears his approval was necessary to all resolutions of the directors, as several times in the minutes of meetings at which he was not pres- ent there follows this note, "I agree to the above resolutions. John Morrell, Chairman." On June 16, 1881, John Morrell died at the age of 70 years. He left a going business to his heirs through the terms of his will, "I give to my four nephews, George Morrell and Thomas Morrell (the sons of my late brother, George) John Morrell, the younger (son of my brother, Robert) and Thomas Dove Foster (son of my late sister, Mary Foster) in equal shares the forty fully paid up B or deferred shares of the value of £100 each in John Morrell & Co., Ltd., which are allotted or to be allotted to me in part consideration of the pur- chase money of the business sold by me to the said company with all the advantages incidental thereto under the contract by which I agreed to sell the same and under the articles of Association of the said company and if any of the nephews shall die in my lifetime then I give the share whether original or accruing of any so dying unto my trustees in trust for such one or more of his children (if any) as being sons or son shall attain the age of 21 years or being daugh- ters or a daughter shall attain that age or marry under that age in equal shares if more than one with power for my trustees during 67 the infancy of any such child to apply the whole or any part of the income of such share in or towards the maintenance, education or advancement of all or any such children as they shall in their un- controlled discretion think fit . . ." In a meeting of the nephews after the provisions of the will were made known, George Morrell was named chairman (president) and Thomas D. Foster was renamed head of the company's American interests, duties which he had assumed in 1872. In 1882 the will of John Morrell was taken to court in a friendly suit to determine the correct interpretation of the wording in regard to the number of B or deferred shares in the company owned by the deceased. When the original agreement was drawn up John Morrell received 400 B shares, while his will called for 40 shares to be dis- tributed equally among the four surviving nephews as listed in that portion of the will already quoted. It seems that when the will was written in 1880 John Morrell was in very poor health and that the draft and final writing of the will had been read to him by the attorneys. He never actually read it himself. For some unknown reason the figure "forty" had been in- serted at four different places in the will between the words "my" and "B shares." The attorney could not explain how this came about, stating he knew definitely that it was the deceased's intention that the four nephews should receive the 400 shares in equal parts. Mrs. John Morrell also stated definitely that it was the intention of her husband that the nephews have the 400 shares, in equal parts. The court rendered a favorable decision for the nephews and the word "forty" was ordered stricken out wherever it might appear and re- placed by the figures "400." Following the death of John Morrell, Frederick Jackson was elected to the board of directors on December 16, 1881. This appears to have been the only change in the original board. In the years that followed the English company continued busi- ness primarily as an importing concern; however, the lard refining business was still carried on in Birkenhead. The closing act of the period in England was the approval in 1886 69 I838-I893 CHAIRMAN, 1881-1890 of certain resolutions for the amendment of the articles of incorpora- tion. Most important of these resolutions were: "That the capital of the company be increased to £250,000 by the creation of 1,500 new shares of £100 each. "That John Morrell, the Elder, having died on the i6th June, 1881, and there being no arrears within Article 108 on the A Shares, all distinction between the A and B Shares has and shall be treated as having ceased. "The present Directors of the Company are and shall be John Morrell, George Morrell, Thomas Dove Foster, and Frederick Jackson. "The said John Morrell, George Morrell, Thomas Dove Foster, Alfred Illingworth and Charles Edward Linaker Gregson, shall be the salaried officers, and shall so long as they remain such salaried officers be entitled to the following salaries to be computed from the 30th September, 1885, ^"d paid quarterly, that is to say: — the said John Morrell, £485 per annum, the said George Morrell, £430 per annum, the said Thomas Dove Foster, £485 per annum, the said Alfred Illingworth, £400 per annum, and the said Charles Edward Linaker Gregson, £200 per annum." Now the scene shifts to America where Thomas D. Foster was representing the company in the Chicago area. He had arrived in Chicago in 1871 and by dint of hard work, had succeeded in making John Morrell & Co. an important factor in the competition of the Chicago livestock and meat packing market. He worked diligently to establish the company on a sound basis, to ex- pand its production and the quality of its product. With his very thorough knowledge of the meat packing business he soon became known as one of the most competent of the men who were to become famous as packers in later years. The soundness of Foster's organiza- tion, the competency of his stafif, and his own enterprise compelled the respect and recognition of such men as Philip D. Armour, G. F. Swift, Nelson Morris and others. In June of 1877 there came from Liverpool the instructions Fos- ter had been looking for ever since his western visit some three years 71 before. He was told to make another trip to the west and hunt out a location that would be most advantageous to the firm for opening a new plant. Knowing where he wanted to locate, he went immediately to Ottumwa, Iowa. In Ottumwa he found the foundations for the new plant and business already laid in the old Mitchell, Ladd pack- ing plant, then standing idle on the north bank of the Des Moines river near Vine street. After a conference with the Ottumwans, Fos- ter's proposals were accepted and the plant was leased. Foster in later years wrote concerning his thoughts as he stepped ofif the train to begin negotiations for an Ottumwa location: "I had selected Ottumwa because of the railroad facilities, the abundant water supply, the proximity of the raw product, the nat- ural beauty of the city, and the friendliness of the people. Men like Captain J. G. Hutchison, Captain S. H. Harper, Colonel P. G. Bal- lingall. Major Samuel Mahon, Major T. P. Spilman, Major A. H. Hamilton, J. H. Merrill, W. B. Bonnifield, J. W. Garner, W. R. Daum, and many others made me feel at home at once. 'This is the place,' I said, 'and I never regretted the choice.' " As these words would indicate Foster had studied seriously the notes made during his visit in 1874. Ottumwa, to his thinking had the physical properties necessary for a packing plant; it had the ad- vantages of a fine livestock area; its shipping rates to Liverpool were favorable; it had suitable packing plants available for purchase or rent; to these factors were added the friendliness of the citizens and the cordial, sincere friendship of the church. Following completion of negotiations, Foster made arrangements for the killing season which would start as soon as cold weather set in during the late fall. Sent from the Chicago plant were C. E. L. Gregson, who was to be manager of the new plant, Thomas Swords, ham trimmer; Jack Kinsella, gutter; Jerry Drennan, hog scraper; Adam Urich, side trimmer, and R. N. Morrell, who was to work in the office. There may have been others but such mention is not made in company records. Undoubtedly many of those employed were for- mer workers in the Ladd plant. R. N. Morrell, mentioned here, was 72 the son of John Morrell's brother, Nicholas, who had emigrated to America in the '40s. The first kill at Ottumwa was made on November 13, 1877. And two months later the Ottiumva Daily Courier, issue of January 9, 1878, had this to say about Ottumwa's newest industry: "The J. D. Ladd packing house is now being operated by John Morrell & Co., of Chicago and Liverpool, England, and they are doing quite a large business. Notwithstanding the few weeks of un- favorable weather, they have killed about 9,000 hogs since the mid- dle of November (1877) to date. They came here with the intention of locating permanently, and cutting meats not only for England and European trade generally, but for the local, western, southern and eastern market. For their English trade they cut their meats dif- ferently for almost all the different counties or shires in England, besides they prepare special cuts for Paris, Scotland and Ireland; most of their meats are distributed from their Liverpool house. They have a residence agent in Paris and are engaged in putting up meats for exhibition next year, and do a large business in American prod- uct which goes in direct competition with the best French produc- tion. "They are now building an immense icehouse, capable of hold- ing several thousand tons of ice, and intend to prosecute their busi- ness the year round. If the necessary ice cannot be had here they will get it elsewhere and business will go on. "A capital of about $75,000 is required to run a house of this kind. "The house in this city is presided over by Chas. E. L. Gregson, who attends to the financial affairs of the concern. W. D. McCue is foreman, and under his management the house is running along smoothly. They work a large number of hands." When Foster moved to Ottumwa to take over active supervision of the plant, Gregson returned to Chicago to assist in the manage- ment of the business there. It was following Gregson's departure that Thomas Swords was named as first superintendent of the plant. Foster wrote a letter to his wife in Chicago on July 21, 1878, 73 which gives a good insight to the character of the man. Operations had been successfully inaugurated in Ottumwa and he was ready to move to the town permanently. This letter shows his faith in the guidance which had been extended to him from above. It reads: "I got here yesterday afternoon. The trip was pleasant, not too hot, though hot enough. I got through with part of my business, that part which decides upon our locating here. So tomorrow hope to be able to look for a house. Mr. Knight, the minister, is going to in- quire. He might hear of something. I was at church this morning. He preached a beautiful sermon as he always does. His text was from the 55th Chap. Isaiah, first part first verse. I was wishing you could hear it. This is a beautiful day. Quite a breeze blowing. Frank and I went for a walk in the woods. They are nice and quite near. From the edge of them there is a most beautiful view all over the country. I hope, darling, you will like the place. Would not like you to be disappointed or dissatisfied, and think you won't when you see it. I am sorry to leave Chicago for many reasons, but think I can be contented here and trust the change will be for the best. I have made it a matter of very earnest prayer and left it entirely to our Heavenly Father. I have not desired it against His wish, and from the way things have continually been occurring making it more favorable to our coming here, I cannot help but feel sure His hand is in it. As He has led me well before, I can firmly trust Him now . . ." A few days after Foster wrote this letter to his wife, the Courier reported the decision to locate in Ottumwa in the following words: "We, a short time since, alluded to the improvement that would count largely in the progress of our city, and which we then were not at liberty to give the details of. As the preliminaries for the im- provement are now definitely arranged, we feel at liberty to speak of it as one of the to be accomplished facts. We allude to the erec- tion of a mammoth pork packing house by Messrs. Morrell & Co., of Liverpool, England. This firm has been doing business in this city since last fall, and has become convinced that Ottumwa is one of the best points in the western country for a general packing business. 74 Their packing business has heretofore been conducted exclusively in Chicago, and the business here the past winter and spring was a mere experiment; but it has been successful, their meats already having acquired a favorable and extensive demand, that they have finally concluded that it was better to concentrate their entire packing busi- ness at this point. "With this object in view, Mr. Thomas D. Foster, their active and intelligent business manager in this country, recently visited England and has received full authority to carry out his views in the erection of a mammoth pork packing establishment, and all the necessary concomitants thereto. For this purpose he has purchased an extensive tract of land, some 6i acres of Hon. E. H. Stiles, and 25 to 30 acres of Jos. Hayne, on which to erect a packing house, ice house, cooper shop, cribs, pens, tenement houses, etc., all of which are necessary to the extensive business which they expect to carry on . . . The land . . . , lying as it does immediately adjoining the city is convenient to railroads, and borders on the river, by means of which they can obtain the large supplies of ice necessary in their summer packing. They propose to commence work building immediately . . ." The Ottumiva Daily Democrat for July 25, 1878, commented in part on the company's decision to locate in Ottumwa: "The firm of John Morrell & Co. of Liverpool, England, have at last concluded to make a permanent investment in this city and have purchased sixty-one acres of land from the Hon. E. H. Stiles and thirty acres from Mr. Joseph Hayne . . . They will go to work immediately in building, and have their plans and specifications already prepared. This will not only give immediate work to a large number of laborers and mechanics, but the work when completed will give permanent employment to about 200 men in the packing business . . ." The company's New York office had been closed in 1874 and American headquarters had been moved to Chicago, with Foster in charge of all operations of the company in America. When he and his family moved to Ottumwa in August of 1878, it became neces- sary to make some changes in the administration of the Chicago of- 75 fice. George Morrell, grandson of the founder of the company and now chairman, transferred from Liverpool to look after the business at Chicago. He was assisted by his eldest son, John H., who had joined the Liverpool office force in 1870. His second son, Alfred, went to Ottumwa to become connected with that organization. When Morrell came to Ottumwa in 1877, meat packing was still a winter business and so it wasn't surprising when readers of the Courier read the following item in their paper for November 12: "John Morrell & Co. will open the packing season at Ladd's Packing House to-morrow afternoon. We understand that the busi- ness will be prosecuted through the season probably to the full ca- pacity of the house whenever the weather is favorable. This will be a good thing for our farmer friends, as it will always prove a con- stant, reliable and usually a better market for hogs than could other- wise be obtained. Several hands have already been employed at good wages which is a good thing for them, and with our water works will furnish labor for all those who want to work." Mention of our "farmer friends" calls attention to a letter writ- ten by Foster to a farmer living near Ottumwa. This letter is repro- duced on the opposite page. It shows graphically Foster's intention of making his nev/ venture a success in Ottumwa by a mutually agree- able relationship between producer and supplier. As killing operations continued at a good scale during the last two months of 1877, the name of the plant was changed from Ladd's Packing House to Ladd's Pork House. In December a market was established uptown for retail, as well as wholesale selling of meats. This must have struck a responsive chord with Ottumwans because the December 31 issue of the Courier carried the following item: "A want that has been long felt in this city, is supplied. It has been the custom heretofore to cut and cure large amounts of hogs in this city and ship the product to eastern markets, leaving the markets here entirely unsupplied, unless hams, sides, lard, etc. were re- shipped from Chicago, and two wholesale profits, the retailer's profit and freight both ways added to the price. This now is done away with, since Messrs. Morrell & Co. have opened a shop for sale 76 '-**•*' — »- - *^ ^ •- » •-^^r -t^ ,v^**'*,*_. jt^ ^9 J^ "ir M. ^r oleo, while George Morrell, Frederick Jackson, C. E. L. Gregson and Thomas D. Foster took over the packing house and its business. It was following this division that the business structure of the concern was changed again. It became a company limited by shares under the following provisions as registered with the English government on March 28, 1887: I St. — The name of the Company is "JOHN MORRELL & COM- PANY, LIMITED." 2nd. — The Registered Office of the Company will be situate in Eng- land. 3rd. — The objects for which the Company is established are: — L — The purchasing and acquiring of tlie business carried on by John Morrell & Co., Limited, at Liverpool, England; and at Ottumwa and Chicago, in the United States of America, under the firm of John Morrell & Co., Limited; and the freehold, leasehold, and other property, credits, stock-in-trade, book 85 debts, and other assets occupied, used, or employed by or be- longing to the said John Morrell & Co., Limited, in connec- tion with their said business, and the discharging the debts and liabilities of the said business. II. — The carrying on at Liverpool, Ottumwa, and Chicago afore- said, and at any other place or places, of the business of ham, bacon, lard, and provision merchants, curers and packers, lard refiners, manufacturers of substitutes for butter and lard, and any other trades or businesses which can be conveniently car- ried on in connection with the said trades or businesses, or any of them. III. — The acquiring for an absolute or any less interests, any patent rights, and any other real or personal property in the United Kingdom of Great Britain and Ireland, the Dominion of Can- ada, the United States of America, or elsewhere, the acquisi- tion of which may be desirable for the purpose of the trades or businesses above mentioned or referred to, or any of them, or otherwise, in connection with the objects of the Company. IV. — The purchasing, holding, and re-issuing of the Shares and Stock of this Company. V. — The borrowing and raising money by the issue of or upon bonds, debentures payable to bearer or otherwise, bills of ex- change, promissory notes, or other obligations or securities of the Company, or by mortgage or charge of all or any part of the property of the Company, or of its uncalled capital, or in such other manner as the Company shall think fit. VI. — The selling, demising, or otherwise disposing of, altering, im- proving, or building upon any property acquired by the Com- pany, or any part thereof. VII. — The doing of all such other things as are incidental or con- ducive to the above objects or any of them. 4th. — The liability of the Shareholders is limited. 5th. — The nominal capital of the Company is £250,000, divided into 2,500 shares of £100 each. Any shares for the time being unissued, and any new shares from time to time to be created may from time to time be issued with any such guarantee or right of preference, whether in respect of dividend or of repayment of capital or both or with any such other special privileges or advantage over any shares previously issued or then about to be issued, or at such a premium or with such deferred rights as compared with any shares previously issued or then about to be issued or 87 subject to any such conditions and provisions and generally on such terms as the Company may from time to time by special resolution determine. Members of the English firm and others who participated in this action and who agreed to take shares in the limited company were: George Morrell, chairman; Charles E. L. Gregson, salesman; Al- fred Morrell, cashier; Frederick Jackson, salesman; M. A. H. Greg- son; Alfred Illingworth, provision merchant; John Morrell, lard refiner; and M. J. Jackson. C. E. L. Gregson had returned from America in 1883 to become a salesman for the English company. The first directors of the newly incorporated company were George Morrell, Foster, Frederick Jackson, and C. E. L. Gregson. The first break in this group came with the death of Morrell in 1893. His place on the board was taken by his son, Alfred, on May 16, 1894. Two years later Frederick Jackson died and was succeeded by John Jackson. John H. Morrell, brother of Alfred, was appointed to the board at the same time, after the articles of incorporation had been changed to raise the membership of the board to five. Following the reorganization of the company in 1887, Illing- worth resigned his position to become general manager of the Birk- enhead refinery, under the direction of John Morrell, the younger. The English concern continued under the direction of George Morrell until about 1890 when he gave up his business activities. John Morrell, the younger, was then elected chairman and contin- ued in that position until 1893, when he resigned and moved to Cape- town, South Africa, with his family. Thomas D. Foster, who had headed the company's activities in America since 1872, was then elected chairman and succeeded to the management of the company's entire business in England and the United States. George Morrell died in 1893. The firm's Chicago plant was closed in 1888 and all slaughter- ing operations were concentrated at Ottumwa. However, an office was maintained in Chicago as was a building called the Baldwin House. This building was used for storage, mostly of excess product shipped from Ottumwa. On receipt in Chicago this product was packed for shipment to England, a small portion reserved for the local market, and bellies were sold for shipment to the south. Prior to the close of the Chicago plant John H. Morrell was in charge of operations, assisted by Edward Coleman, Arthur St. Clair and Frederick Batty, all natives of England. Working in the Bald- win House were P. E. Henneberry, who was transferred to Ottum- wa in 1889; W. C. Thompson, who succeeded Henneberry; and Arthur Jackson, who worked until the building was closed. Batty, who started with the Liverpool office in 1886, came over from England in October of 1888 and was bookkeeper in Chicago until transferred to Ottumwa as office manager. He left Ottumwa in 1894, returning to England to be married. Following their marriage, Mr. and Mrs. Batty returned to Ottumwa for a two year stay. Mrs. Batty was unable to stand Iowa's hot summers and the Battys were forced to return to England where he became Morrell agent in the north of England. Coleman, who had been sent to the United States in 1882 as office manager for John Morrell & Co. in Chicago, went to Ottumwa in 1890 and returned to Chicago two years later to handle the Chicago office. John H. Morrell was transferred to Ot- tumwa in 1888 to become associated with Foster in the management of the American business. The Ottumwa plant was increasing its kill each year and ship- ping more and more product to England. It was making itself felt as an economic factor in the community. Possibly a contemporary ac- count of the plant in 1889 will give good indication of the progress made in the space of 12 years in Ottumwa. This account appeared in the Ottumwa Daily Courier in 1889 and gives a vivid picture of operations. It reads: "Ottumwa's greatest institution is the John Morrell & Co. pack- ing house. With financial interests up in the thousands, with an un- limited credit, with 500 employees finding steady and remunerative employment, with a migration of nearly a half million hogs annually in four thousand cars, a train over twenty-five miles in length, with a pay roll of $23,000 per month, it can claim without any effort the front rank in all of Ottumwa industries. This great institution was 89 founded in 1878 with T. D. Foster as resident manager who has been at the head of the institution ever since. Under his careful and pru- dent management, a management which has been marked with wise foresight, and a generous policy with the farmer, the employee, and the business interests of the city, it has steadily grown in magnitude and reputation till Ottumwa is now one of the leading packing points in the west and the 'Three Pig' brand meats, or 'Iowa's Pride' ham and bacon of Morrell & Co. are known in every city in the state and sought for in the great markets of England and Scotland. "As these train loads of hogs come into the city one wonders how they are all disposed of and when he actually ascertains that 2,500 of these porkers are assassinated and transformed within a few sec- onds into the food product which creates bone and sinew and muscle, it seems like a fairy tale. It is this romance in real life that we will now unfold. Let us follow briefly the various stages of the porker from the time his shrill and dying squeal rends the atmosphere till he comes forth anew in the sizzling bacon or the luscious ham with- out which any picnic would be a dull and prosy afifair. "The shackle pen is his first appointment after he has taken his excursion into the city. The employee in the shackle pen places a chain around the hog's hind leg and attaches the chain to a rope connected with a wheel, which revolving quickly draws the hog up by simply pressing a lever which throws the wheel in gear. The hog is then suspended from a greased inclined rail, and is carried by its own weight to the sticker who stands with knife in hand ready to do his gory work. His aim is unerring and in less than half a minute from the time the hog reaches him it has bled to death. The sticker can kill 2,500 hogs in a day. After the hog is dead it is shoved fur- ther down on the inclined rail over the scalding tub, where a man loosens the shackle from the hog's foot and drops him into the tub, which is about thirty feet in length. Around this vat are a number of men who continually watch the hogs during the process of scald- ing, who carefully test them, not allowing them to remain in too short, nor too long a time. Some of them require a more thorough bath than others, according to the age, etc. As fast as the hogs become 90 ready to scrape, they are raised from the vat on what is called the 'hog-out,' a sort of a fork, which is worked by touching a lever, throwing the wheel attached to the 'hog-out' in motion. "The bristle puller is the next to pay attention to his hog-ship. The bristles are very valuable for making brushes, and that in itself is a great industry. Ordinarily only the bristles from the back of the hog are taken, but frequently a hog is put through from which nearly all the hair is saved, being coarse enough for brushes. Then a hook is placed in the under jaw and the hog is quickly drawn into the scrap- ing machine head first through the entire length of the scraper, very little hair remaining. The scraping bench is the next place for the pork passenger. Four men on each side of the scraping bench quickly re- move what hair remains after passing through the scraping machine. The scraping machine, by the way, works automatically, taking the porker through and back and dropping him on the scraping bench without a touch of a hand either to hog or machine. Next he goes into the hands of the four shavers who are supplied with long knives and who shave the hog quickly, while cold water is running upon him, leaving him clean and ready to 'take another degree.' The gam- brel is then put into his two hind legs and he is quickly hoisted to another track upon an inclined rail. He is then gutted and thoroughly washed with hose, weighed, his head taken of¥, and started down the inclined rail that leads to the chill room. Two thousand five hundred hogs can be put through in this way in a day. From the time the hog is shackled and hoisted to the sticker until received at the chill room it is not over ten minutes. The temperature of the chill room is from 36 to 40 degrees, and it has a capacity of 6,000 hogs. On being received there the workmen proceed to split them. One man with a knife draws a line completely through the fat of the back, while others, with cleavers, cut them in two. "The pork is left hanging in the chill room forty-eight hours. It is then taken to the cutting room where a large number of men are employed. The halves of hogs are placed upon large cutting blocks, where before they are cut up, an inspector gives his orders as to the different kinds of meat the hog is to be made into. There are from 91 twenty to twenty-five different cuts into which a hog may be made. The feet are cut off and thrown into one pile, the ham is taken out with one cut of the knife, the tenderloins arc pulled, the leaf lard is taken out, and so on, in less time than it takes to tell it. The hams and sides are taken to tables, quickly and carefully trimmed and put into the admirable shape that we find them for sale in the market. Then they are put into the chutes and then to various parts of the curing room, according to their class, the finer hams being put by themselves to make the celebrated 'Iowa's Pride' brand that is so popular throughout the country. The hams are put into their re- spective places and salted or cured according to their quality and the market for which they are intended. There are several kinds of hams such as Manchester, Stafifords, Long Cut and the American put in salt or pickle as the case demands. "It is a magnificent sight, that of hundreds of thousands of pounds of choice hams and the various cuts of meats piled up in long tiers covering large areas of space in the vast cellars beneath the build- ings. Everything is in perfect order and works with great accuracy, neatness and dispatch. All the meat is weighed after being cut and sent down the chutes, and when distributed where it belongs, a card is placed upon each pile showing when the meat was placed there, how many pieces and how many pounds there are in it. The meats are kept from thirty to sixty days, when they are packed. The hams are weighed and packed in boxes, and each ham before being packed is placed upon a red hot brand which burns in circular form the 'Three Pig' brand. This is in order that other hams may not be palmed ofif for those of Morrell & Co. The boards for the covers are placed upon the boxes, the hams usually being higher than the boxes, and placed in a press that works with a screw, which presses the boards down on the box, when they are quickly nailed, the box marked with the net weight of the hams, number of pieces, etc., and it is then ready for shipment. "Refrigerator cars stand at the door only a few feet from the packing department, and it takes but a short time to fill a train load. The side meats, shoulders, mess pork and other meats that are packed 92 in boxes or barrels go through nearly a similar process. No piece of meat is allowed to leave the packing house until tested by an expert and found in first class order. The bulk of this vast product is sent to the British Isles and Germany. It is put on refrigerator cars at the packing house, shipped to New York and put on steamships for European markets. Considerable of the meats, however, are con- sumed in American or home markets, and neither at home nor abroad are there any more desirable or more popular meats. "The hogs are weighed four times, once when received alive, again after being dressed, but before the head is cut ofif. The various pieces are weighed again after leaving the cutting rooms previous to being distributed to their respective places, and the fourth and last time so far as the packing house is concerned, when they are put in boxes and barrels for shipment. "Returning to the cutting rooms, let us look at other parts of the hog. The tenderloins, of which of course there are thousands of pounds each day, are placed in the home market or shipped to the various parts of the country the same day they are taken out, and are in great demand. The feet are all quickly taken to the pig foot department where a large force is employed in cooking, cleaning and packing them for shipment. Then there is a large amount of clippings from the hams. The lean parts of the clippings are taken to the sausage room, and this is another quite important branch of the business. Several thousand pounds of sausage are made daily, including pork sausage, bologna, Frankfort, or what is by some called Vienna, and other kinds which find their way in vast quanti- ties to the pineries of Wisconsin and Michigan and elsewhere. The bologna is covered with beef casings; the pork sausage with pork casings, which are sent from the packing house to Chicago parties when first taken from the hog, and then purchased from them after having been properly prepared, that being a regular business and a very extensive one, too, in Chicago. The Frankfort or Vienna sausage is put in English sheep casings, which are very fine. "The fat parts of the clipping from the hams are placed on an 'elevated railroad' just outside the building from the cutting rooms, 93 ^^^^J^T^uuuIJ 1845-1905 CHAIRMAN, 1890-1893 and are taken to the lard vats a number of feet distant. The lard is put up in various ways, in tierces, barrels, and smaller packages to suit the trade. This is a department in which Morrell & Co. are pre- eminently leaders. This is a growing feature of the business, the firm making a specialty of pure old-fashioned lard which has leaped into popular favor by its superiority in comparison with recent combina- tions of fats, which while very pleasant to look at contain very little of the hog. The sediment from the lard, together with a vast amount of other parts and pieces and bones are sent to the fertilizing depart- ment, where they are made into fertilizer by being put through a hot oven process, and the fertilizer is shipped to various parts of the country; chiefly to the south. Nearly a carload of fertilizer is made each day. "Returning to the slaughter department we find that the heads, after the tongues have been taken out for pickling, are sent to the lard vats, and the sediment from them in turn finds its way to the fertilizing department. The lights or lungs also go to the fertilizing department, being entirely worthless for anything else. The blood, of which there is a vast amount each day, is also made into fertilizer. In fact everything that cannot be used for anything else is made into fertilizer, so that absolutely no part of the hog is lost. The intestines are cleaned the moment they are taken from the hog, and shipped to Chicago where parties are engaged in cleansing and preparing them for the purpose for which they are afterwards to be used — covering sausage. There is also another important branch of the busi- ness, that of packing boneless hams and pickled hocks, which have become so popular during the past few years. "All the boxes and barrels, and cooperage work of every descrip- tion is done in the company's own buildings. No description can con- vey even a fair idea of the vastness of the business, nor the extent of the buildings. "About 500 men are employed at present. An office force of six- teen is required to attend to the accounting department of the busi- ness. The Western Union Telegraph lines from every direction run into the office, and an operator is kept busily engaged in sending and 95 receiving messages. Contracts for hogs are made by wire. We would not forget to mention the power which runs this vast concern. There are six engines of 375 horsepower, used in the manufacture of 'Iowa's Pride.' The cooling plant is one of the most costly pieces of mechanism, but the Morrell & Co. institution early saw that this was one of the necessities, and six years ago equipped their institution with it, leading other Iowa packing institutions in this respect. This process preserves an even temperature the year round. "The packing house is supplied with a full set of pumps which will come in splendid play in case of a fire, for while the city water works are ample, Morrell & Co. have an independent system of their own which can be used promptly in case of an emergency. They also have a splendid fire department on watch day and night. "The 'Three Pig' brand of meats bear a reputation second to none in the land. All of Morrell & Co.'s meats are mild cured and sold on that feature. Their bacon is a world-beater anywhere, and their hams, mess pork, sausage, etc., are eagerly sought for in all markets. The plant has grown so steadily in popular favor that a new building costing $40,000 was a positive necessity and has been added this year, doubling the curing capacity. No one has more amply deserved this success than Morrell & Co., and all Ottumwa congratulates them on the prosperity of these twelve years of their existence, and every Ottumwan congratulates the city on the good wheel of fortune which turned Mr. T. D. Foster hither over a decade ago." Mention is made in this Courier article of "a splendid fire de- partment on watch day and night." The Morrell fire department had been organized just a short time before the appearance of the article. It was a purely voluntary organization, made up of men who lived in the immediate vicinity of the plant. Although volun- tary in nature, the department was well supplied with the necessary implements for fighting a fire. In event of fire the group was called together by the plant's whistle. The fire fighters were well trained and knew their indi- vidual jobs and assigned places in cases of emergency. That they were able to do well when the need arose is attested to by their 96 activities in connection with the Ottumwa plant's disastrous fire of 1893. The volunteer department continued in existence until about 1904 when a sprinkler system was installed. At that time a regular fire department was established. Six plant men were hired to sleep in the fire hall each night. For this each man received $3 a week extra. With this change the department was on duty 24 hours a day, ready at any time in case of a fire. Among the early Morrell fire fighters were Ed Vlasak, John Dawson, who was chief in 1906, John Nash, Andy Doggett, Fred Twedell, Arthur Bean and Thomas Vaughan, who later became chief. In 1889 the Chicago packers and stockyard men brought before the Interstate Commerce Commission the matter of rates for west- ern packers. Foster felt very strongly on this matter and believed that if the rates were changed western packers would find themselves in a serious condition and that a crisis would face them. Accordingly he wrote the Liverpool office on January 30, 1889: "The Chicago packers and stockyards men are going to bring the rates of hogs and product from the west to Chicago before the Inter- state Commerce Commission, asking for an equalization of rates on hogs and product. The rate on hogs is 25c, Ottumwa to Chicago. If product is given the same rates we may as well close Ottumwa at once except for local trade. The Iowa packers met at Des Moines last week to devise plans for defending our interests. We only employed an attorney and appointed a committee to gather material for de- fense." Apparently the crisis Foster feared did not develop because there is very little mention of this particular rate case in his later corre- spondence. The Ottumwa plant was not closed to all but local trade; in fact, shipments to Chicago and to the east coast for England stead- ily increased and the Ottumwa plant continued to grow. In 1890, because of a growing cry for help from meat packers and livestock producers, the government was forced to take steps to inaugurate a service that would inspect and certify to foreign gov- 97 ernments the healthfulness of American animals and the wholesome- ness of our meat. John Morrell & Co. in America was vitally inter- ested in this matter because its main business was shipping meat products to the English market. During this period of the firm's history in America there had been a widespread development of the livestock industry. For that reason there was need for access to foreign markets for distribution of the growing surplus of livestock and meat products. Of course, foreign producers looked with alarm at this growing American in- dustry, and for one reason or another brought about certain restric- tions in their own countries against imports from America. The first restriction came in England in 1879 when an order was put into efifect requiring that all cattle imported from America be slaughtered within 10 days on the dock where they were landed. This order was issued on the grounds that pleuropneumonia in cat- tle existed in the United States. In that same year, Italy and Hungary issued orders banning the import of American pork because of trich- inae. The next year similar orders were issued against pork by Ger- many and Spain; by France, Turkey and Roumania in 1881; by Greece in 1883, and by Denmark in 1888. The existence of pleuropneumonia and trichinae could not be denied by American authorities, but their prevalence was so exag- gerated in these foreign lands that a grave injustice was done Amer- ican meats. Exports began to fall ol¥. Action had to be taken by the American meat packers and live- stock producers to see that something was done on a national scale. The agitation came to a head in August of 1890 when the first legis- lation was passed, providing for federal meat inspection. This act was a feeble attempt on the part of the government to satisfy the packers and producers and its application soon showed that it could not be effective. On March 3, 1891, Congress passed another law. This law was of sufficient force and breadth to enable the establish- ment of a meat inspection service of real value and which could command the confidence of European governments. Although our present-day Meat Inspection Division offers primarily a service in 98 hygiene and sanitation, it came into existence solely as an economic factor. The suggestion for the change in the law was made by the Sec- retary of Agriculture. In the new law, he was given the powers of enforcing its provisions. Dr. U. G. Houck in his study of the Bureau of Animal Industry comments on the law of March 3, 1891, as fol- lows: "The inadequacy of the law soon became apparent, and the foreign governments refused to recognize the inspection certificates issued thereunder. The Secretary of Agriculture called the attention of Congress to the situation and suggested a more effective enactment. In accordance with that suggestion Congress passed the Act of March 3, 1891. That law provided that the Secretary of Agriculture should cause to be made a careful inspection of all cattle intended for ex- portation, the inspection to be made at such times, places and man- ner as the Secretary might deem proper; for this purpose he was authorized to appoint inspectors to make the necessary examina- tions and to give official certificates stating the condition of the ani- mals or of the meats. It was further provided that no clearance could be given any vessel having on board cattle or meats for exportation to a foreign country unless the owner or shipper thereof had an offi- cial certificate stating that the cattle or the meats were sound and free from disease. The law also provided that an inspection should be made prior to slaughter of the cattle, sheep and hogs which were the subjects of interstate commerce, and that in addition to an in- spection of the live animal the Secretary could, whenever he deemed it necessary or expedient, cause to be made a post-mortem examina- tion of the carcasses of cattle, sheep and hogs about to be prepared for human consumption and interstate commerce . . ." Under the provision of this law each packing plant was given a number and the first inspection was made in New York City on May 12, 1891. In June of that same year federal inspection was inaugu- rated in Chicago and other midwestern plants. John Morrell & Co. at Ottumwa, Iowa, was given the establishment number 17, a number still used to indicate our federal inspection to this date. 99 Agents of European countries which had set up restrictions on American imports watched the results as the new law began to op- erate fully. Germany was the first country to act, removing its re- strictions on pork on September 3, 1891, and within a short time sim- ilar actions were taken by Denmark, France, Italy and Hungary. Exports immediately picked up and American meat packers were the first to recognize the benefits of this worth-while legislation. As with all packers at that time, John Morrell & Co., Ltd., had to count on a good ice harvest each winter to carry regular killing operations through the next summer. Ice was cut from the Des Moines river by crews hired to do that work when ice on the river was thick enough to cut. As the ice was cut it was stored in the ice house to be brought out as necessary during the warmer months of the year. The ice harvest was not always sufficiently large enough to meet plant requirements and hence was a source of continual worry to Foster. A small ice machine had been bought but its capacity fell far short of the needs. The ice harvest during the winter of 1890-91 gave every indica- tion of falling off almost completely and so on January 30, 1891, Foster wrote as follows to Liverpool : "The cooling of our plant the coming summer is now an impor- tant problem. We have saved about 5,000 tons ice. It will take 10,- 000 to run us. There is no ice here and does not look like any (though any day conditions may change). If we have to go north it will mean that the ice will cost us equal to 23/^ or $3 per ton in our packing house next summer. "The decision to be made now is whether we should buy ice at this price or put in another machine. If we put the money into ice it is gone ; if into a machine it will be there. It is only a matter of time when we shall have to get one and we shall save 6 to $8,000 of its cost this summer. Believe we should put in a 100-ton machine. It will probably cost $25,000 to $30,000 with additional boiler capacity. But should recommend getting a good one. We have too many repairs on the Arctic and the cost of ammonia is very heavy. "We also desire to draw your attention to the condition of our 100 chill rooms which have fallen behind (in point of principle and work) to those now being built, especially the two old ones. Because of their location they cannot be rebuilt without more expense than the room warrants. They have done very well for light hogs, but have caused us considerable loss on heavy, every part of the hog having been affected. Besides we require the room absolutely for our re- finery . . . "We should remodel, modernize and enlarge our entire plant so that we can handle all the hogs we can kill, viz 2,500 per day winter and summer and do it up in good shape — not in the way we have often had to do . . . "Packing houses are built and run with more margin than they formerly were. Our idea is to raise our present main building one story, making our present chill rooms and the top floor all hanging; give the present old chill room part to the refinery. Then we should have a good place. Should do away with the old runs and use iron rails and travelers; they make quite a saving in labor. This plan will not disarrange the slaughter part; nothing need be enlarged there for the present. In the course of another year or so we may need an- other dryer and some more tanks but before doing that we can have the benefit of the enlarged plant for a year. "There is economy in high buildings, the more compact the easier to keep cool. It is not easy to calculate the cost of these improvements on account of there being so much tearing up but should say about $30,000." Foster felt so sure of the need for the improvements he was sug- gesting that he ofifered to take stock to the extent of his ability, or to the extent the company wanted to sell, to furnish the necessary capi- tal for the outlay. Needless to say, the expenditure was made, the new ice machine purchased and the suggested changes in the build- ing made. Foster visited England in the spring of 1892. Just before leaving he wrote Liverpool commenting on conditions in his trade area, ask- ing the Liverpool directors to give consideration to two suggestions for adding to the Ottumwa business. lOI First, he told about an Englishman who worked in the Ottumwa plant, who had developed an English Pork Pie product that might be manufactured and merchandised successfully in America. He suggested the English directors search for an expert pork pie maker and send him to America to handle the business in Ottumwa. His other suggestion concerned tankage and the possibility for feeding it to chickens. It was his idea that certain portions of the tankage would make excellent feed for chickens and that heat lost from the tanks and engines in the winter could be used to keep chick- ens warm. Apparently consideration was given to both of these matters on Foster's visit to England because a capable bakery man was secured but the company ran into trouble with him because of certain labor clauses. To get the man into the United States he must enter as a free man not as a "bonded pie maker" as the firm desired. When this snag was encountered the English Pork Pie product was given up. Records do not show that the chicken business in itself developed to any extent, but the manufacture of feed for chickens and livestock developed and today is an important factor in the company's busi- ness. By 1893 things had become rather difficult for Foster and the company in Ottumwa. Packing houses which had come into existence since the firm's arrival in Ottumwa in 1878, were located at Cedar Rapids, St. Paul, Sioux City and other points. These plants neces- sarily curtailed the Morrell trade area both as to livestock and meat products. Foster felt that his situation in Ottumwa was none too good and that he should check possibilities for locating the plant at a point where the market was not so competitive. Early in that year he took a southern trip that included as one of his stops, Memphis, Tenn. Apparently he found Memphis to his liking because the fol- lowing letter was written to the directors in Liverpool: "I have just returned from a trip south and lay before you the result of same as I feel it has an important bearing upon the future of our business, which I am sorry to say has seen its day in Iowa. Conditions have changed so much since we came here that it is no 102 longer a desirable place and must of necessity grow worse, as we are gradually becoming surrounded by packing houses possessing facili- ties that we cannot possibly possess situated as we are and we must recognize them if we are wise to our own interest. "Since we started here, St. Paul, Sioux City, Omaha, Nebraska City and St. Joseph have all sprung practically into existence and Kansas City has trebled if not quadrupled its capacity. We have always had St. Louis as an outlet as no packing house that ever amounted to anything has ever run there since we came here. But Swift & Co. has bought the old Whitaker place and is making a large and first class house out of it. This closes our last opening. We are now entirely surrounded with houses which in the very nature of this thing must ever reduce the size of the circle we are in for obtain- ing our supplies and the same for distributing our product. We are virtually infested by the enemy and we have not the resources they have so the end must come sometime and we may as well look mat- ters square in the face now while things are well with us as wait until we are discouraged and the likely places outside this circle are taken up. We have held our own so far by keeping our plant to the front in improvements and have always had something to work to ahead of us but now I know of nothing we can do to give us an ad- vantage so are on a level with every other competitor and below many and I cannot manage a business where I feel handicapped. I am willing to take my chances in a free fight where all is equal. "Look at the situation today fairly in the face, the points I have named tell their own tale. Now look at Keokuk, Des Moines, Cedar Rapids, Oskaloosa, Iowa City, gradually dr^-ing up or dried up. It is not all the result of a short hog crop. As of late, hogs have passed their doors that they could have gotten had they been willing to pay the price. Mr. Kent told me that he heard Sinclairs were thinking of closing the Cedar Rapids business and concentrating in Indianap- olis and Kansas City. I have known for some time there has been great dissatisfaction with the results of the Cedar Rapids business. If they do close it will help us but we cannot bank on that . . . "Look over the past five years; that shows the drift and we can 103 expect no better fate along our present lines. Now for the relief. I have felt for some time back that whenever a move was made it could not be in the regular packing centers. My ideas were for Philadel- phia but strange to say that field is now taken up and the opening seems to be in the south. When I started my trip I had no idea of Memphis in my route but was providentially thrown there for a day and its position and resources surprised me, on the Mississippi river at the throat of the southern trade. All freight for the great pork- eating south from a line west of the Mississippi largely passes through Memphis. It has ten railroads radiating in as many direc- tions. It has good water drainage. It has 70,000 population, handles in the height of summer 150 cars meat a week. It is in a section where hog food can be raised cheaper than in Iowa but has only been used for cotton that has gone back on them and the farmers are most anxious to get into something that will have a steady market and it will go into hogs if they can sell them. When hogs are cheap in the west they cannot compete because of freight rates which are 50 to 60c per 100 lbs. from Memphis to Chicago and 80c from Can- ton, Miss., and hogs were being shipped from both places to Chi- cago when I was there and paying those rates. The land yields two crops Irish potatoes per year; 250 bushel sweet potatoes and a planter offered me his entire crop in the field at i23^c for 60 lbs. The same ground raised one crop corn and one crop peas the same sum- mer. Hogs fatten and breed all the year round and the farmers are needing someone to start a place which will secure them a steady market. While the crop of hogs is being prepared Memphis can draw on an old settled hog territory for supplies and as I will show you later without much disadvantage. Memphis is from Kansas City same distance as Chicago is from Kansas City so can draw hogs from there or points between, also from Tennessee, Kentucky and south- ern Illinois. While these are not all classed as hog states they raise a great many and Memphis can draw naturally and easily from states which according to the last government census had a stock of 12,500,- 000 hogs out of which we surely in the course of two or three years ought to manage to secure at least 300,000 to 500,000, as in a good 104 deal of the territory there would not be a shadow of competition from any other house. We should be the farthest house south. "When in New Orleans I looked up shipping facilities and found cars run alongside steamers under covered docks. The West Indian Line averages six steamers a month. The Harrison Line about as many. The time from Memphis to New Orleans is 36 hours for freight and 13 hours for passengers. I called on the general freight agent of the Illinois Central Road who informed me the rate from Memphis to New Orleans is only I2>4c. This with 15% ocean makes under 30c, Memphis to Liverpool against 53c, Ottumwa to Liver- pool. Our rate on hogs to Chicago is 20c, rate from Memphis to Chi- cago, 50 or 60c. These figures speak volumes, no argument is neces- sary. Now suppose we buy hogs or green hams in Kansas City. Rate to Memphis, 25c, Memphis to Liverpool, 30c, 55c through. Same via Ottumwa. Kansas City to Ottumwa, 15c, Ottumwa to Liverpool, 53-68C. Kansas City to Liverpool direct without any break of freight — 50c inland, 9c ocean — 59c against 55c via Memphis. You can- not figure to beat Memphis any way you take it. Mr. Morey, the general freight agent, is most anxious to have us locate and in order to help us build told me he would make special rates on hogs in to any extent that would be reasonable. Freight rate on salt, New Or- leans to Memphis, about 5c per 100 lbs. by river. "Armour of Kansas City paid one Memphis firm $40,000 for boxes last year. It is a center for all kinds of boxes, barrels and build- ing lumber which is about $10 per 100 against $16, Ottumwa. Brick is also made there. Another feature is the fact that by degrees we can encourage potato and pea fed hogs which will equal Canadian. I saw some smoked bacon, the skin of which looked more like smoked Irish than any I ever saw on this side. "Pure lard is a dead trade. This bulge in lard has given Lardine & Co, such a hold that it will not go back for some time. We cannot make compound lard here. Should have both oil and stearine to buy from our competitors and ship here on local rate. There we can buy the oil right out of the mill and have it pumped to the packing house or we can press it ourselves. There is a possible beef business there, 105 cattle being very cheap but this T won't advocate at this stage. "I know this reads ahnost like a fairy tale but every word can be authenticated. Kvery figure was obtained myself from headquar- ters. There is no say so in it except in the salt freight. Fuel was about the only thing I did not go into. And that cannot be out of the way as St. Louis is decidedly cheaper than Chicago and Memphis has river rates from St. Louis, besides it is within 150 miles of Birming- ham, the coal and iron center of the south. "With this presentation you will, I am sure, admit it worth con- sidering. In my mind coming to Ottumwa was nothing to it, espe- cially with our 15 years experience on top of coming here. In my opinion if we miss this chance we shall forever regret it. This does not mean the abandonment of our Ottumwa plant. It will help us here as Ottumwa people have a kind of idea that we are coming and that it is Ottumwa that is doing it and not John Morrell & Co. and we shall never stand where we should in their eyes until they see we can do as well or better somewhere else. The people of these interior points are growing insulting. Des Moines people are just getting an awful raking through the papers for doing so little. I don't want to be in the box Des Moines is in. When they come to that on John Morrell & Co. I want to be ready to get out. "The people of the south will receive us with open arms. We will not only control a market of 70,000 people but also the New Orleans market too. There is scarcely any limit to the development of the south in the line of fresh meat and ofifal. Mr. J. H. Morrell is planning to sail as arranged and will visit Memphis on his way so that he can go into the matter from personal knowledge. I urge action in this matter and no time should be lost. We shall have to get the people to do all for us that we can. Several ways suggested themselves but this can wait. All I can say is it is the chance of a life. I cannot see anything against it, although in the course of working it out, the disadvantages will be revealed. Think however they can only be small compared with the advantages. Please look thoroughly into it and be ready to intelligently act while Mr. John is over." Correspondence available doesn't indicate what consideration 106 ^J/iar,^ti^^(hii^ 1847-1915 CHAIRMAN, 189J-1915 might have been given by the directors to Foster's recommendations as contained in this letter. However, conditions must have developed favorably in Ottumwa soon after this letter was written because a bigger and better plant began to arise immediately after the disas- trous fire of July, 1893. If the financial panic of 1893 wasn't enough to shake the faith of Foster, the fire which almost totally destroyed the Ottumwa plant in that year must have given him many doubtful moments. Foster always a vivid letter writer, tells about the fire in a letter to the di- rectors in better terms than we might today. He wrote them on July 14, as follows: "It is with great sorrow that I have to tell you of the destruction of the main portion of our packing house by fire Wednesday night. I was at the opposite end of the city at 8:10 p.m. when the whistle blew the fire signal and having a horse and buggy with me made a quick run to the plant only to see before reaching it that the entire top story was in flames apparently coming out of all parts of the roof and so fierce. What with my knowledge of the walls in many places being built in patches and carrying all they would bear with- out fire, felt it would not be prudent to order in any men to save any of the property. Quite a little lard might have been saved but for this feature. There was not the slightest chance of saving any part of the building as it was like a seething furnace. So turned all our attention to saving the other buildings. Warehouse D was never in much danger as the wind was due south and very gentle while that building lay to the west, but the slaughterhouse although to the south was close enough to have taken fire even in spite of the wind but by keeping it doused with water prevented the fire spreading that way, but the wooden bridge connecting Warehouse A and the slaugh- terhouse was threatened with destruction for a long time and there was where the main fight was and the men did well. Our own pump and hose really saved that building as the city hose could not reach the top of the bridge, but two little streams from our own mains held the flames in check where all else failed. The men never flinched but stood right to it. When I sent the first cable about 1 1 o'clock 108 or 12 the result hung in the balance. Had quite a job to save the Cooper Shop, cordwood and staves north of the packing house but that was also done. All the principal books were put in the vault but some minor books containing the shipments of that day were lost. Could not open the vault yesterday but got in this morning and found everything perfect so work goes right along. We are using one of the old cottages for an office and are getting into shape. "The fire burned fiercely all night but after 2 a.m. there was practically no danger to the other buildings. The walls inside and out kept falling with crashes but no one received a scratch that I know of. As soon as we could get near we played water on the vault, also on the beefhouse and the brine tanks of the Vilter ice machine, which is saved with the pumps. But the brine tanks of both Arctic machines are gone. The office is clear gone and so are the contents of the smokehouses, but the houses stand. Am afraid they are unsafe. We have ice in Warehouse D so we're in good shape there. My first idea was to get ready for slaughtering again but found after a little investigation yesterday forenoon that a great deal of meat might be saved in a damaged condition if attended to at once so stopped all preparation for slaughtering and have done nothing but save meat today using Warehouse D as far as it will go and making a cold storage room out of the north room of the big ice house which we hope will enable us to handle all that is fit to save. What is not fit we are putting in the tank and are skimming thousands of pounds of grease from our sewer system from the melting sides. "The city firemen worked hard and were very obliging. In fact, letters and telegrams have showered in upon us from all sides ex- pressing sympathy and ofifering aid. The C. B. & Q. people have done everything they can to help. We have had one of their big engines all the afternoon pulling the tangled coil pipes out of the ruins and have taken out more than we could take out in a week by hand. The C. B. & Q. at once took up the matter of freight on building material and all railroads coming in here make ^4 rate on all material used in our new building. This was unasked and certainly unexpected. I always knew railroad men were warm hearted to those who treated 109 them right but hardly looked for such treatment as they have given us. These evidences of interest in our business are very encouraging. "We have ascertained our insurance as cabled and are working on stock now. "Saturday, July 15. We are turning all our attention to saving the meat in the cellars. A fire insurance adjuster was here today and expressed himself well satisfied with what we are doing only we are not doing it fast enough so have given up all preparation for new work and are attending to the salvage." At the time of the fire the plant consisted of three large main buildings, commonly known as the killing building, the main build- ing, and Warehouse D. In addition there were several small build- ings, such as engine room, boiler room, cooper and carpenter shops. As Foster states the fire was confined to the main building. But its destruction seriously crippled the company's operations, as it had housed the entire chilling, cutting, curing, lard refinery and sausage departments, together with practically all the supplies used in proc- essing and shipping the product. It was particularly unfortunate that the office, which adjoined the main building on the north, was completely destroyed and many valuable records lost. The fire continued to burn during the night of July 12 but did not burn itself out completely for several days. However, on the fol- lowing morning plans were made to get the plant back into opera- tion. A temporary office was established in a cottage owned by the company and hundreds of men were employed to clear away the debris and to save what product the flames had not consumed. In a few days a runway was constructed between the killing building and Warehouse D and the dressed hogs were run over and chilled there in makeshift coolers. Later the carcasses were cut up in the same building. The smokehouses located in the burned build- ing, while still standing, were so badly damaged they had to be dynamited. Temporary smokehouses were erected and, all things considered, "business as usual" was the order of the day in less than a week's time. The total loss ranged between $500,000 and $600,000, a stagger- ing sum in those days. But because of the panic of 1893 the loss threatened to bankrupt the company, even though the loss was well covered by insurance. Although the records by which the loss could have been determined were lost in the fire, the insurance companies, with one exception, paid up promptly and in full. Out of the fire began to arise a bigger, a better packing plant for John Morrell & Co., Ltd., of Ottumwa. It could be considered a blessing in disguise, because never again were conditions permitted to exist which had made such destruction possible in 1893; and from the ruins of the fire came bigger and better buildings, with the latest in packing house equipment. R. Ames Montgomery in his book, Thomas D. Foster, a Biog- raphy, sums up the tried and tested Foster of 1893 in these words, "In this period of the business, the administrative resourcefulness of Foster was severely tested, the panic of 1893 proved to be the death of many business organizations in the United States, which were un- able to secure sufficient loans to tide them over the difficult shoals of falling markets and mounting expenditures. By this time, Foster had proved his ability as a financier as well as his expertness as a packer. He had formed connections with the best financial organizations in New York and Chicago. With them his credit was sufficiently well established to enable him to secure funds when the company's treas- ury needed ready cash. "But with the panic came a disaster that well-nigh forced John Morrell & Co., Ltd., into bankruptcy. On the evening of July 12, 1893, a devastating fire almost entirely destroyed the Ottumwa plant. Through the carelessness of a clerk, who failed to return the stock books to the company safe that night, these, too, were destroyed. Thus the very records on which the company's claim for insurance against loss could be based were lost. It was a dark morning. Many men, going about the smoking ruins, shook their heads and uttered gloomy prophecies: 'The company would not be able to recover.' "Not so Thomas D. Foster. 'It looks pretty bad,' he said, 'but we are not busted yet'- — the echo of the motto on the Foster coat of arms must have been running through his mind, as he walked amid the ruins of his phint — Si fracttts forlis, 'If broken be brave.'" The first refrigerator cars, 25 in number, to be owned and oper- ated by the company in Ottumwa were built in 1893. The first cars were nearly all of the brine tank or beef type, wherein the meat was supposed to be maintained at a constant temperature, low enough to avoid spoilage by the use of a brine mixture. These cars did not allow for circulation of air, a fact which ultimately made them un- suitable for carrying packing house products. Later on the cars were converted to the bunker type which is still in use today. In this car, ice was placed in bunkers at either end. Circulation of air was also provided for, thus overcoming the main objection to the older car. In 1895 the Morrell Refrigerator Car Co. was organized under the laws of the Commonwealth of Kentucky. It became the holding company for all rolling stock owned or leased by the firm. The first share of stock was issued on June 6, 1895, to Thomas D. Foster, who was also president of the new company. With all his trials and tribulations, the home of Thomas D. Foster was still a happy one and a growing one. Joining the two boys and three girls already in the family were three boys and two girls. George M., born May 16, 1887, and John Morrell, born November 25, 1894, were to become active in the company's business in later years. It was during the reconstruction period, when the firm's business was being carried on under severe handicaps anyhow, that company officials learned of the possibilities of domestic trade. Activities of cer- tain competitors during this period showed Morrell officials that domestic consumption could easily absorb all the product which had been sent to Liverpool in years past. Since that time domestic trade has received more and more attention, until today the export busi- ness is a very small portion of the total. Following Thomas Swords as superintendent at Ottumwa was William Logan. He was succeeded by P. E. Henneberry in 1889. Henneberry was well versed in Morrell operations, having been em- ployed by the company for several years in Chicago prior to his transfer to Ottumwa. He served as plant superintendent until 1893 when there was a short break in his service. John Breakey was then named superintendent and was serving in that capacity at the time of the disastrous 1893 fire. Henneberry was re-employed when Breakey left after serving only about six months. During this period many, who were to reach high positions in the company began their service. Among this group of men were T. Henry Foster, who spent the summer vacation of 1887 driving hogs in the stockyards under the direction of Major Spilman; W. H. T. Foster, who spent his first summer vacation as a mail boy in the of- fice; and M. T. McClelland, brother-in-law of T. D. Foster, who started in 1891 as a mail boy. Among others to hold responsible super- visory positions in the office or plant were : A. T. Gardner, J. C. Lor- ing, E. W. Stater, S. M. Birney, F. M. Cox, Lyle Mosher, Thomas Vaughan, A. B. Osier, C. H. Freeman, A. P. Murphy, C. C. Reed- quist, J. A. Anderson, Ernest Manns, J. L. O'Malley, P, R. Hollo- way and George Alford. Other men, known to many still working for the company today, who started at this time were: Conrad Altherr, B. F. Allender, John Lynch, Charles Huddleston, E. O. Cline, E. A. Rabens, J. W. Stiles, Sam Huddleston, Columbus Gooch, Edward Stiles, F. M. Brady, T. P. Coughlin, Isaac Richards, Isaac Waldo, August Frank, and many others. T. Henry Foster worked for three summers in different depart- ments before coming to the plant to work regularly. It was in 1890 that he started on a regular basis, working in the Smoked Meat de- partment as assistant to Fred Bullock, then foreman of the depart- ment. The entire force of the department at that time consisted of five men, including Jack Durkin, who claimed to be the champion ham sewer of the United States. Foster remembers in those days, especially during the summer time, that all smoked meats were sewed in canvas and yellow washed, or sewed in burlap. After a year Foster left the firm to attend college. However he returned in 1894 ^""^ applied for a job again. He was hired in the office as a bill clerk. When Foster began his period of continuous service with the com- pany in 1894, the entire office force consisted of 20 people. In 1895 he was made assistant bookkeeper and a year later was i'3 placed in complete charge of the books. He chose as his assistant A. P. Murphy, who was then serving as stock clerk. In those days there were no loose-leaf ledgers and much night work was necessary. It was not uncommon for both men to work on the books from 7:00 o'clock in the morning until 10:00 or 11 :oo at night. It was at this time that the first comptometer was placed on the market, a crude wooden afifair. The manufacturers requested the company to take one and give it a try. A trial was agreed to and the machine was turned over to Foster and Murphy to experiment with. In those days bookkeepers were quite expert at adding up long col- umns of figures and, after spending an hour hitting the keys on this newfangled machine, Foster and Murphy decided they could beat it with pencil and paper. So it was boxed up and returned to the manu- facturer with a letter stating that it was no good. In 1895 the first advertising piece, other than small ads in news- papers, appeared under the company imprint. Entitled "Corn Fed Hams & Bacon," it outlined the advantages of purchasing "Iowa's Pride" hams and bacon. Appropriately illustrated, it told the Mor- rell story and finished up with several tasty recipes for ham and bacon dishes. The copy was written by T. Henry Foster. The firm's first branch house was opened in Boston, Mass., in 1896 with Harry P. Hale as the manager. He was assisted by W. H. T. Foster, who had received his start several years before as a mail boy during a summer's vacation from school. After his schooling, Will Foster had been placed in charge of the lard refinery and the chemical laboratory. At his father's suggestion, however, he had be- come well versed in the packing business and was ready to take over the new position opened for him at Boston. In opening the Boston branch, it was Thomas D. Foster's hope that the firm could get better distribution for its products in the east. The branch was a small one and the equipment was not all that could be desired. However, Hale and Will Foster did a competent job and the name of Morrell gradually became better and better known in the Boston area for quality meats. Will Foster has the dis- tinction of being the first Morrell salesman in the east. 114 Several trade-marks came into existence during this period. The words, "Three Pig," were registered for use on lard, hams, bacon and shoulders in 1893. Another mark showing the word, "Wapello," used in connection with the bust of an Indian was first used on break- fast bacon in 1888. This mark honored Wapello County, of which Ottumwa is the county seat. Later on this mark was placed within the design of a heart and registered in that manner. "XXX" brand came into existence in 1894 for use on hams. In the early days of John Morrell & Co., Ltd., in Ottumwa there was no organization which gave financial aid to employees who be- came sick or disabled, or which provided benefits for the families of those employees who died while in the service of the company. This matter came to a head in 1891, when in the space of 10 days it was necessary to take up a voluntary collection three different times to provide for employees who had to be away from the job because of illness. When this happened a group of men got together and dis- cussed the possibilities of setting up an association which would automatically provide for such contingencies. W. B. Ramsell, W. H. O'Malley, William Biundell and Paul Gobat were in a group who developed an idea for more systematic relief and presented the matter to Thomas D. Foster. While Foster favored the plan, the matter was allowed to drift for two years. On February 22, 1893, ^ meeting of employees was called and the plan was presented in a more vigorous manner. With more than 80 persons present and giving enthusiastic support it was decided to go ahead and organize. Ramsell was elected temporary chair- man and instructed to draw up a draft for the constitution and by- laws of the Packing House Mutual Benefit Association. Both Ramsell and his wife worked hard at drawing up the con- stitution. It was solely due to their thought and foresight that the new association got off to such a good start. When the constitution and by-laws were finally adopted A. R. Brown was elected presi- dent, Ramsell, vice president, and H. McConkey, secretary. The association proved to be popular from the beginning, with Foster offering financial aid to put it on its feet at the start. It was '15 launched with a membership of 300. Names of some of the charter members are well-known to present day employees of the Ottumwa plant: B. F. Allender, Conrad Altherr, Frank C. Briggs, Edward O, Cline, William Dunning, John T. Foxx, Charles H. Freeman, Nevil W. Glew, Paul E. Gobat, Joe Hanrahan, Sam Huddleston, Jesse Kling, A. B. Osier, Heston Simmons, Edward Stiles, John W. Stiles, and Patrick Whalen. Years later the name of the organization was changed by an amendment to the constitution to the Packing House Mutual Aid Association. The P.H.M.A.A. has continued to progress in tune with the times and was an active factor in the relief needs of Ottumwa employees through 1946. 116 18 9 7 ^SiAf^DV "^^^ period from 1897 to 1906 was one of expansion y^^^^^Y^^ as well as one of trial and tribulation for John Morrell •^r %^ ^f & Co., Ltd. Correspondence between the directors in Liverpool and Ottumwa continually covered discussions on over- drafts, losses and occasionally profits, new equipment, buildings, competitors both in the English and American markets, product, livestock, and other matters. The condition of product on arrival in England was a source of continual worry to the English directors. Most of the trouble seems to have stemmed from meat in which joints had soured. Thomas D. Foster, in the Ottumwa plant, made many attempts to cure this trouble and would report on his efforts to Liverpool. Typical of let- ters on the subject is the following written by Foster on July 7, 1897: "We are very sorry that the case of Borax meat is up again. We were hoping the 'humidifiers' would solve our trouble. There is some- thing very peculiar about it. We seem to have reached a point where our joints won't take cure in the summertime except where the pickle 117 is forced by the pump, which is not a natural way for the meat to act. All the meat has plenty of salt on it when turned and makes pickle all right. Have thought, perhaps, there is some chemical action on the part of the sugar that closes the pores, so we are trying some with plain saltpetre. Bullock thinks there is too much circula- tion in the cellar (of air) but that scarcely seems likely as the square shoulders which are cured in cribs don't take salt anymore than the hams. There is some atmospheric or chemical condition at work which prevents the joints taking salt as there is an abundance of salt put on to cure the meat. We are, however, making some experiments by using salt about as we do on common meat." Later in the summer he wrote Liverpool again as follows, "We are sorry to have continued complaint of taints, but it looks now as if we are on the right track. Some meat shipped this week appears entirely different to what we have been shipping. Stopping the sugar has decidedly helped, but curing in the bins in place of the open cellar seems to have given the best results." Knowing meat as well as he did Foster and his staff ultimately overcame many of the objections raised by the English trade. How- ever, there were factors over which he had no control, factors of concern to the English market alone. Most important of these was the problem of weights. Most English buyers wanted their meat in lightweight pieces rather than heavy. Liverpool was continually appealing for lighter hams, sides, bellies, and other cuts. Weight was not a factor that Foster could control because of the firm's pledge to buy every hog brought to the plant. Quite often the hogs brought in were of the heavier weights or constituted a considerable portion of the purchases. Liverpool received a certain percentage of the slaughter and necessarily a part of the shipment consisted of the heavier cuts. Likewise Foster had no direct control over the product after it left Ottumwa for shipment to Liverpool. Transportation difficulties and time undoubtedly accounted for considerable soured or tainted meat. Even the elements played their part; the winter ice harvest was still important; meat packing was still a major winter business, although better and more efficient refrigeration equipment 119 was coming on the market, making summer operations possible. But refrigeration requirements, via rail and water, were a problem to all packers. Speaking of the elements, Alfred Morrell, one of the Liverpool directors, reported to Foster that a ship bound from America was sunk in a storm off the English coast and the cargo lost. In the cargo was a considerable shipment of Morrell meats. The letter went on to say that the insurance company had paid in full on the declared value of the meat, but that the company would lose money because the meat could have been sold on the Liverpool market for some £200 more than received from the insurance company. However, he concluded philosophically, "We are carrying a pretty heavy stock at the moment and the loss of this shipment from America will not seriously interfere with our operations." During these years the company figured its profit and loss state- ments on a half yearly basis, with Liverpool and Ottumwa each preparing separate statements. A combination of the two statements gave the directors the information covering the year's operation. The year of 1898 was an exceptionally bad one for the company, one-half year statement showing a deficit of some £14,100. The Ottumwa loss was £27,100, while Liverpool showed a profit of £13,000. On November 16, Foster wrote the English directors commenting on the loss sustained by his plant in the following words : "We expected a heavy loss but it exceeded the writer's expecta- tion by about $25,000. Can only hope that with the help of the October English business you will make a showing that will go quite a good way towards neutralizing the loss. After reviewing the opera- tions we cannot see that it could have been changed very much and still do the volume of business we have done. We are committed to a large business which we are bound to protect. "The only error we can discover is that we did not keep sold up on our contract and heavy stuflf and lard. We might have done this and saved a great deal of money, but there was the fear that if we sold entirely out other packers might get the market into their own hands. Then they could have made their own prices and controlled the jobbing trade when we were out. The season has been one of the hardest to work we ever remember. . . . "As already intimated in previous correspondence the whole problem resolves itself into one of the survival of the fittest. It is very plain to those who are in the midst of the contest. So far we have held out and are not afraid now if we all hang together and keep our plant to the front. We have been in the graveyard of four Iowa con- cerns, three of them with equal or better chances than our own — Iowa City, Des Moines, Keokuk and Oskaloosa. When these, with Cedar Rapids, were giants, we were pigmies. But this summer we passed them by 30%. Why? The answer is plain. We have never stopped at expense in keeping our plant modern, and side by side with that we have tried to keep our methods modern, just and in close touch with the requirements of the trade. This is the only way to hold our own and any other policy is suicidal. There never seems to be any actual stopping place and the packing house that makes one for itself falls by the wayside or is hopelessly left behind. This is the spirit of this country." It was not at all uncommon for one organization to show a profit while the other reported a loss, sometimes Liverpool, sometimes Ottumwa. In most of the years, except for 1898, the profit or loss was comparatively small. However the value of the company stock re- mained at a comparatively stable £168 per share, and stockholders received a 5 or 10% return on their investment. As in the days of John Morrell, the English company was con- tinually plagued with financial matters. It was not an unusual thing when Alfred Morrell would write to Foster in America that £60,000 was due the Bank of Liverpool and would have to be taken up in four installments of £15,000 each in a very short space of time. Usually Foster was able to cable necessary funds from America to keep the English firm's credit in good standing. In America, Foster had con- tinued his amicable relations with banks in Chicago, New York and Boston and was able, almost on demand, to get such funds as he needed for the successful operation of his meat packing business in Ottumwa. 121 The activities of the company's competitors in America and Eng- land were disquieting to both Foster and Morrell. In England, Alfred Morrell was continually worried about his competitors and reported fully to Foster as to type of meat they were selling to good advantage, the prices they were asking, and many times suggesting to Foster that certain cuts should be processed in line with a popular competitor's cut on their market. While Alfred Morrell was having his troubles with competitors in England, Thomas D. Foster was not finding everything to his liking in the United States. In a letter addressed to the directors at Liverpool, he wrote: ''There is unrest around generally amongst houses that have no specialties. Meantime Armour and Swift pound away; the former particularly and seems determined to do a larger share in the business than ever. It means survival of the fittest. There is no other result possible. Armour has made one of the boldest moves this week ever undertaken in the packing business and it only applies to Iowa. It is manifest on its face what the object is, viz. to hit Ottumwa and Cedar Rapids. These are the only interior western points cutting very much of a figure. To kill us ofif is the move, and the plan is: making a flat price delivered to any railroad station in Iowa. This is a master move as all the roads passing through Ottumwa and Cedar Rapids enter Omaha, so Armour can ship for one rate. While if we have to ship to points on the Chicago and Northwestern, Illinois Central and such as don't touch Ottumwa, we have to pay two local rates and be subject to unavoidable delays and transfers. Nearly all the roads in Iowa that don't come into Ottumwa or Cedar Rapids go to Omaha, so Omaha has one rate to nearly all points in Iowa. "We do not feel at all discouraged but it means, if we are to hold our place, that we must have every modern piece of equipment in connection with our plant and that we must be aggressive in the dis- position of our product and occupy every inch of territory we can reach in England and on this side. "We shall meet the situation here with a bold front and may adopt the same plan as Armour has, absorbing the extra freight and trusting to our quality to overcome it. We are watching results of the experiment and will follow it closely." In the latter part of 1902 and early 1903 a dissension arose be- tween the directors in England and America 'covering general policies of the company. This dissension was so serious that con- sideration was given to the idea of selling the business to the public. This came about when the English directors put forth the proposal that the company be changed to a public business, with a bond issue to be floated. This proposal was not acceptable to the American directors and they offered to sell their interests or buy out the English directors. Eventually, however, the difficulties between the directors in the two countries were ironed out, the old relationship re-established, and business went on as before. During February and March of 1903 the Articles of Agreement of John Morrell & Co., Ltd., adopted in 1887 were revised. Most important of the revisions were: Increase of capital from £250,000 to £500,000. Previously the company's capital had been divided into 2,500 shares of £100 each. In the new Agreement the capital was to be divided into 250,000 Preference Shares of £1 each, 225,000 being listed as A Ordinary Shares of £1 each and 25,000 B Ordinary Shares of £1 each. The B Ordinary Shares were intended to be appropriated and set apart for allotment to employees of the company. The Agreement reserved for the directors the right to determine from time to time which employees were to receive an allotment of the shares. Owner- ship of these shares did not confer upon the individual the right to vote at any of the general meetings of the company, to receive notices of such meetings, or to receive copies of the annual balance sheet. Holders would benefit from dividends, however. A further provision provided for the conversion of shares, whether A or B Ordinary, into stock of the company. By converting their shares, directors would be entitled to participate in the divi- dends and profits arising from the business. Four directors, Thomas Dove Foster and John H. Morrell of 123 Ottumwa, C. E. L. Gregson and Alfred Morrell of Liverpool, were listed. Foster was named as the first chairman. The balance of the Agreement covered pretty much the same details as that of 1887. The make up of the board of directors continued as shown in the new Agreement for only a short time when Gregson resigned. He was succeeded by John Morrell, the younger. Morrell, who had served as chairman of the company from 1900 to 1903, had returned to England following failure of his South African venture. He con- tinued on the board until his death on March 16, 1905. At the next annual meeting of the board, William H. T. Foster of Ottumwa was appointed succeeding Morrell. At this same meeting William A. Venables was appointed a junior director. The position of junior director was a new one for the firm. It came into being in 1905 when a special resolution was drawn up and adopted by the directors on September 22. This resolution reads in part: "The Company may from time to time in General Meeting ap- point Junior Directors and may determine the number of such Junior Directors and their remuneration and the period for which they are to hold, and the rotation in which they are to go out of office. "The qualification of each Junior Director shall be the holding of not less than 100 A Shares in the Company or an equivalent amount of Stock. "The Junior Directors may be selected from the Employees of the Company and shall be entitled to their remuneration as Junior Directors in addition to their remuneration as such employees. The Junior Directors shall also, notwithstanding the provisions of Article 26 of the Articles of Association, be entitled to hold B shares in the Company. "The Junior Directors shall have all the powers of Directors as fully as though the word 'Director' when used in the Articles of Association of the Company included the Junior Directors, and the Junior Directors shall be members of the Board and shall be entitled to attend and vote at the Board Meetings. Save and except that each 124 Junior Director shall only have one vote at a Board Meeting and each of the other Directors shall have two votes. "The Directors and the Junior Directors shall be entitled to charge and be paid in addition to their ordinary remuneration their travelling and other disbursements and expenses when travelling upon the business of the Company or for the purpose of attending Board Meetings." Both the American and English concerns took many steps during this period to increase their outlets by establishing branches, jobbing routes, erecting new buildings in America and acquiring others, securing new machinery and by many other steps. In England the company put its travelers on a y2% commission on spot lard sales. Previously these travelers had received i%, how- ever in making the reduction, the company gave assurances that increased quantities of lard would be made available. At the same time the Liverpool organization increased its sale of lard in France and Germany. In America, Foster decided to change his jobbing trade a little by pushing "Iowa's Pride" hams and breakfast bacon as a special article. It was his plan to have these products handled by the better groceries in the east. Boston was to be one center. New York another. A salesman, employed on a commission basis, began work- ing central New York state from Buffalo to Albany. This salesman received his product in bulk and delivered as he sold. He also carried small stocks in Bufifalo and Rochester. Much of the activity in connection with expansion took place in America, where Foster decided that if he was to hold his place in the field he must do it by making a superior product in the most up-to- date factory equipped with the most efficient of modern day equip- ment. In developing his program, Foster moved first into the field of branch house development. He had made his initial move in that direction in 1896 when the Boston branch was opened. It was a move that had been highly successful. Now he was ready to enter the New York market with a regular branch house. The company had been in the New York area pre- viously, from 1864 to 1874, but with a business office only. Foster's 125 reasons for moving into the New York area, as recorded in a letter to Liverpool, vs^ere: "There is a business to be built up in high grade goods and our 'Iowa's Pride' meats are gaining quite a reputation and are being widely talked about. So feel the time has come to strike out for a trade that we believe will pay better than working ourselves to death putting our meats in competition with common brands in this western country, as we are sure we don't get the difference in value. Again, New York is a great place for bellies at certain seasons of the year and we can buy them much cheaper there than we can in the west. By buying them green and curing them ourselves we can supply part of our finer grade of breakfast bacon. So taking all together we feel the time is opportune for making this experiment." New York was also the center for the West Indian trade. Large quantities of pork were shipped into the West Indian islands and Foster hoped in this manner to use up some of his oversupply of this product. In January of 1899, George W. Wellman was named manager of the New York branch. T. Henry Foster was sent from Boston to assist in establishing the new branch house on West 36th Street. Three men, Wellman, Foster, and a man of all work, comprised the original stafif. Foster was bookkeeper, cashier and shipping clerk. At other times he worked the east side, selling principally to German sausage makers in that district. The continuing growth of Ottumwa production capacities and increased receipts of hogs made further expansion in sales outlets necessary. A considerable portion of the firm's production still went to Liverpool, but the salesmen, who had been put out to sell products in the Ottumv\'a area, and the recently established branches in Boston and New York were unable to absorb the balance. The next branch established was nearer home, at Des Moines, Iowa. James Majors, who had started in the Ottumwa office as a mail boy in 1893, was selected to manage the new branch. He was working as a city sales- man when named for the Des Moines job. Majors knew selling and he knew his product. Almost immediately the branch became a 126 valuable outlet for the company's product. The first Des Moines branch was opened on Cherry Street, just a few doors from its present location. Thomas D. Foster never forgot his visit to Memphis, Tenn. While the company had not made the move to that city as recom- mended, he continued to believe that it would be a good outlet for Morrell. Accordingly, in 1904, he made arrangements to open a branch there. James Majors again was selected to open a new Morrell outlet. When he arrived in Memphis he found his new quarters were to be in the front part of a dilapidated, run down build- ing at the corner of Washington and Front Streets. The rear portion of this same building was occupied by the old S & S Packing Co. The branch had only one small cooler and in it was kept beef, fresh pork, and any other perishable product for which storage space was not available. Hams, slab bacon, canned meats and other items of the company's line were kept out in the open under no refrigeration. Such a condition made it necessary that the Memphis force dispose of its product rapidly. In 1904 E. P. Fearn, who operated a brokerage business in Mobile, Ala., became a commission agent for the company in that city. Product was shipped from Ottumwa to Mobile and then de- livered direct from the car, which had been placed on a railroad siding, to customers by horse and wagon. Mobile proved to be such a good market that a branch organization was set up there in 1905. Quarters were taken at 120 N. Water Street and Fearn was named the first manager. Distribution of Morrell products in England had been mainly restricted to northern England, particularly in the region of Brad- ford, the original home of the company. Travelers covered northern England and the Liverpool area pretty well. It wasn't until 1898 that an agent was sent into London market for the first time. It was also in this period that the firm bought the first of its ware- houses in Liverpool. Previously meat had been stored in rented properties. Negotiations for the purchase of this warehouse con- tinued for many months. The Liverpool organization, overdrawn 127 with the Bank of Liverpool, could not swing the deal without giving a mortgage on the property. Foster did not want to give such a mortgage inasmuch as it would have to be shown on the company's statement. He felt it would not look good when additional loans were needed, or an overdraft extended. However the deal was com- pleted early in 1899 with the Liverpool directors agreeing to use the deed for the property only when a special loan was necessary. Foster began a search for pigs that compared with the milk-fed pigs of the European market. He remembered there was a taste to pigs fed with milk far difTerent from the hogs coming into the Ottumwa market. In his investigation, Foster learned there were many creameries and milk buying stations around Ottumwa. Ulti- mately his path led to nearby Bloomfield, Iowa, where W. H. Davis was operating a successful creamery. Negotiations for the purchase of this creamery were begun. The deal was completed on September 29, 1902, when Foster and R. N. Morrell drove to Bloomfield and there drew up a memorandum of agreement for the sale of "the creamery located at Bloomfield, la., and 2 skimming stations in connection therewith, together with land, building, machinery, tools and all appliances located therein used in the operation of the Bloomfield creamery, also 4 horses and 3 wagons." The company paid to W. H. Davis, the owner of the Bloomfield creamery, the sum of $4,000. However Davis, by the terms of the agreement, was to purchase and hold the sum of $500 in stock in the new firm, and at the same time agreed to serve as manager at a salary of $75.00 a month. Watching the negotiations was H. W. Davis, son of W. H. Davis, who was to go to Ottumwa a few months later to enter the employ of John Morrell & Co., Ltd. The son was later to become a director of the company as well as traffic manager. The company took over operation of the Bloomfield creamery immediately. But it soon became evident that purchase of milk for feeding hogs would not work out as profitably as hoped. At that time the cream separator had not come onto the market. Therefore skimming stations had to be located at strategic places in the cream- ery's trade area. Farmers brought their raw milk to these stations and the cream was separated by hand. The skimmed milk was then turned back to the farmers who used it for livestock feeding purposes on their own farms. The cream was then assembled at the main creamery and used in the manufacture of butter. Butter making soon assumed major importance in Foster's plans for the business. Immediately after purchase of the Bloomfield creamery, plans were inaugurated for setting up the creamery portion of the com- pany's business as a separate organization. It was in this manner that the Yorkshire Creamery Company came into existence, set up for the following purposes "to acquire, purchase, feed, sell, market and deal in livestock of all kinds, including cattle, sheep, hogs, poultry and their products, and to purchase, manufacture, sell, and deal in dairy products of all kinds . . . , and to sell and market all of said kinds of property in any part of the world, and for the more successful conducting of the aforesaid kinds of business, this corporation shall also have and exercise the further power, to purchase, lease, mort- gage, and sell such real estate and buildings, including the construc- tion of buildings ... as may be useful, incidental or necessary for carrying on the business of farming and of raising, feeding and marketing livestock, and in conducting any of the lines of business aforesaid." The details of organization of the Yorkshire Creamery Company were completed and the new company was incorporated under the laws of Maine. The first meeting of the board of directors was held on January 15, 1903, and the company had its official beginning on that date. On the first board were: John Morrell & Co., Ltd., Thomas D. Foster, John H. Morrell, W. H. T. Foster, T. P. Spilman and W. H. Davis. The board, as a regular part of this first meeting, elected the following officers: Thomas D. Foster, president, John H. Morrell, vice president, W. H. T. Foster, treasurer, and R. N. Morrell, secretary. R. N. Morrell, while not a member of the board, was in active charge of the business of the creamery and main- tained his desk in the offices of John Morrell & Co., Ltd., Ottumwa. Davis continued to live in Bloomfield even though the butter making facilities were transferred to a new building constructed just 129 for that purpose in Ottumwa. After some time, however, the necessity for being away from home caused Davis to move his family to Ottumwa. He continued to manage the creamery until 1905, when he was forced to resign from the board of directors of the Yorkshire Creamery Company and to give up his duties in the plant because of ill health. Davis then moved to a farm, regained his health and passed away only a few years ago. At about the time the Yorkshire Creamery Company came into existence another separate corporation was set up, the Yorkshire Land and Cattle Company. This concern, too, was chartered under the laws of Maine, with John Morrell & Co., Ltd., Thomas D. Foster, John H. Morrell and W. H. T. Foster as directors. Thomas D. Foster was president, Morrell, vice president and W. H. T. Foster, treasurer. R. N. Morrell served as secretary of the company. The Yorkshire Land and Cattle Company came into being on January 15, 1903. It was organized solely as a cattle feeding opera- tion. At that time there was a starch manufacturing plant in Ot- tumwa. One of its by-products was a feed thought suitable for cattle. However, this by-product did not prove satisfactory and actual feeding operations on a scale satisfactory to the needs of John Morrell & Co., Ltd., were not possible. The corporate existence of the Yorkshire Land and Cattle Company continued until September 15, 1916. In 1902 a new pastor was being considered by the congregation of the Ottumwa East End Presbyterian church. On Thomas D. Foster, as senior elder in the church, fell the task of making the final decision. One of the men who filled the pulpit was the Rev. William H. Hormel. Foster heard Hormel preach and spent the day with him. In the course of the conversation, Hormel mentioned the fact that his brother, George A., ran a small packing house in Austin, Minn. This statement formed an immediate bond between the two men and possibly led in Hormel's call to come to the Ottumwa church as its regular pastor. Following Hormel's appearance in Ottumwa, Thomas D. Foster wrote George A. Hormel and suggested that he come to Ottumwa on 130 a visit. Hormel accepted the invitation, coming to Ottumwa and, as later events developed, probably devoted considerable time to a dis- cussion of conditions in the packing industry and in his own plant in particular. The Hormel concern came into existence in 1891 and at the time of George A. Hormel's Ottumwa visit was only eleven years old and struggling to make its mark in the field. The company had been incorporated and 1,250 shares of preferred stock sold, but still Hormel found himself continuously harassed by lack of sufficient funds to carry on his business. Following his discussions with Foster, Hormel made plans for selling part of his business to John Morrell & Co., Ltd., in 1903. In so doing Hormel secured needed money and Morrell needed the extra production represented by the Hormel concern. The articles of incorporation of George A. Hormel & Co. were amended to provide a capital stock of $500,000. The board of directors was increased from five to nine. John Morrell & Co., Ltd., paid $75,000 for 750 shares of the preferred stock and also received 750 shares of common stock as a bonus. At the same time Thomas D. Foster, John H. Morrell and W. H. T. Foster were elected to the Hormel board. Construction was considerable at the Ottumwa plant with two new smokehouses going up, remodeling and enlarging of the Lard Refinery, the building of a separate fertilizer house, and construction of a building for getting hogs to the level of the shackling pens. While not a costly job this latter project was an interesting one. The building was an open wooden structure and was used to get hogs to the level of the shackling pens on an easier gradient. In using this building, hogs were driven to the proper level without overheating in the summer and without causing bloodshot hams in the winter. A new 100 ton ice machine was purchased and this necessitated the drilling of another artesian well. The sources of water available at the time of this purchase were enough to keep the equipment already in operation going, but not enough to handle the additional water requirements of the new machine. 131 In 1900 preparations were made for the establishment of a Can- ning department in the Ottumwa plant. Equipment consisting of two retorts, two cast iron kettles and a hand capping machine were pur- chased. At the recommendation of the equipment manufacturer, William Archdeacon was employed as foreman with the primary task of instructing Morrell men in proper methods of canning pro- cedure. Archdeacon did not live up to his recommendation and lasted only about a year. Otto Schaub was the first regular Morrell employee to be assigned to the new department, having been trans- ferred from the Sausage room. The department itself occupied only a small portion of one floor and had as neighbors the Smoked Meat and Sausage departments. When it became evident that Archdeacon was not the man to head this new activity Foster instructed his son, T. Henry Foster, to return to Ottumwa from the New York branch. In 1901 the son joined the department and his first job was on the capping machine with Schaub. After Archdeacon left, T. Henry Foster was named foreman with Schaub as his assistant. At this time the department was manufacturing a straight line of ox tongue, lunch tongue, corned pork, Brawn in 6-lb cans, corned beef in 6- and 14-Ib. cans, and pork and beans. Brawn was a product manufactured from hogs' head meat. Practically unknown in the United States, Brawn was packed for shipment to Liverpool. Primarily responsible for the success of the Canning department was John Rohwedder. He followed Archdeacon and knew canning operations thoroughly. He had been employed in the Hammond Packing Company's Canning department prior to coming with John Morrell & Co., Ltd. During his first two year stay he got the Can- ning department into full operation and produced a quality product. He returned to Hammond's then, but came back to Morrell in a short time and continued until his health failed. At this time the largest percentage of the canned goods produced was exported to England. The canning of tomatoes was started later on and proved to be a very successful venture. The company contracted with farmers 132 around Ottumwa for thousands of acres of tomatoes. Space in the Canning department for this operation soon became inadequate and tomato canning was moved to a newly completed building. This building became inadequate in a few years and a move to the old cooperage building was made. After the establishment of the Boston branch the company found itself in opposition to Massachusetts laws in that it was operating as a limited company, chartered under the laws of England. Consider- able correspondence was carried on between company and Massa- chusetts officials and lavv^ers were engaged in an attempt to unravel the difficulties. Finally, because Boston was proving to be too good a market to leave, Foster suggested to the English directors that he and John H. Morrell be allowed to form a co-partnership and in that manner it would be possible for the American business to trade under the name of John Morrell & Co. The co-partnership, agreed to by the English directors, was formed in 1904. Proper documents were drawn up at once between Foster and Morrell and the deal completed. This co-partnership permitted the American business to omit the designation, "Ltd.", as necessary to comply with American laws. The Des Moines river has served as both friend and enemy of the Ottumwa plant. Ordinarily its annual spring overflow has not seriously hindered the operations of the business. However, the story in 1903 was dififerent. On May 30 of that year the flood struck just before dark of that Saturday evening. The first water came through the railroad gates near the ice house and refinery and had soon cov- ered all the ground of the main plant. The water rose rapidly and those men who had stayed in the plant had to use boats to make their departure on Sunday morning. Even though Foster had established the rule that there be no work at the packing house on Sunday, it became necessary that it be broken. Floods take no recognition of the day of the week, and so early on this Sunday morning the plant's whistle blew calling all men back to work. Firemen stayed at their posts in a vain attempt to 133 keep the boiler fires going. When they were extinguished and refrigeration no longer available, chill rooms were kept at a partially reduced temperature by ice rushed from the Ice House. The cellars began to fill with water and all stored meat was in danger of being damaged. It became absolutely necessary to move this meat to the higher floors. As the fires in the boilers were extin- guished by rising water, electricity was cut ofif and elevators put out of operation. So it became necessary that all meat be moved by hand. However, the men did their work well and competently and saved practically all the meat. Foster was in Liverpool at the time of the flood. Flood conditions lasted a week. W. H. T. Foster was called back to Ottumwa early in 1897 to assist his father in the operation of the plant. In time he was named manager of branch houses and southern brokers. Succeeding his brother in Boston was T. Henry Foster. T. Henry Foster turned his books over to A. P. Murphy, his assistant, in May of 1897 ^nd went to Boston as assistant to H. P. Hale, manager of the branch there. At the time Foster was connected with the Boston branch it was located at 36 Eastern Ave. Part of the time while in Boston he acted as a city salesman and when Hale was away, assumed the duties of manager. Foster was transferred to New York in January of 1899 and assisted George W. Wellman in opening a branch there. Late in 1900 he was instructed to return to Ottumwa and in January of 1901 was assigned to the newly established Canning department. Having served time in the practical end of the canning business, Foster was transferred to the general ofiice in 1902 and placed in charge of canned goods manufacturing and sales and advertising. He continued in that capacity until 1906 when he was transferred to the plant as assistant to Superintendent N. T. Sleight. G. M. Foster was the third of Thomas D. Foster's sons to start his career with the company. He began in the Canning department during a summer vacation from school in 1901. During the next several summers he worked in various departments. 134 M. T. McClelland had been placed in charge of the Jobbing Sales department in 1894, with a staff of only a few salesmen, mainly because the bulk of the company's business was export. When Mc- Clelland assumed his new position immediate expansion of the company's domestic sales territories was begun. It was due to his foresight and effort at this time that domestic sales began to play such an important part in the company's business. John H. Morrell continued his association with Thomas D. Foster in the management of the American business. In the plant P. E. Henneberry continued as superintendent until 1899. He was followed by F. J. Bullock in the same year. Mr. Bullock had worked for the company in Chicago, coming to Ot- tumwa when operations were begun. He left in 1906 and was fol- lowed by N. T. Sleight. Again in this period many names to bulk large in the company's history appeared for the first time. Among those who were to hold high supervisory positions were J. C. Stentz, H. W. Davis, R. D. Rogers, J. F. Denefe, A. J. Wind, Otto Johnson, T. G. McElroy, G. R. Hallgren, E. E. MofStt, J. H. Lockwood, Bert Horn, C. C. Ogborn, N. O. Spurgeon, C. G. Reeve, Walter Stapleford, John Tray, Ray Campbell, Ray Murphy and G. W. Martin. Among other names were W. E. Dawson, W. L. Hurd, Isaac Patton, H. L. Baker, O. W. Johnson, J. J. McKinney, N. W. Herber, S. R. Owings, R. C. Smith, S. J. Sandstrom, J. A. Walker, S. L. Robinson, S. M. Bowen, J. H. Huddleston, J. R. Spilman, C. A. Johnson, C. E. McVey, H. C. Moss and Nels Nelson. Several people started their service with the English organization at this time also. Among them were: J. R. Hughes, Arthur Okill, P. W. Walkinshaw, George Aikman, W. Dunlop, A. S. Dodman, W. J. Bird, A. Walker, A. Walton, D. McLean, L. J. Ely and D. Moss. In September of 1901 the firm's Chicago office advertised for an office boy. Answering the advertisement was George W. Martin who got the job. He was interviewed by Edward Coleman and M. P. Kelley. At that time Coleman was in charge of the office. He left soon afterward to return to England and was succeeded by Kelley. 13s Named as Kelley's assistant was Charles Farrell. Martin took an- other job in 1903 but returned in 1906 as Kelley's assistant when Farrell was transferred to Ottumwa. At this time the Chicago office was located in the Royal Insurance building. In England three men who were to become directors of the English company, began their service with the firm. Samuel Teller started March 8, 1897; J. VV. Willoughby was employed on September i, 1900; and A. G. Carey began on January 21, 1901. We have already recorded the firm's initial advertising efforts in America, consisting primarily of small advertisements in Ottumwa papers. In 1895 a small booklet had been issued covering "Iowa's Pride" Hams. Outside of these minor efiforts the company believed in word-of-mouth advertising. However in 1899, Foster had been pre- vailed upon to try a few insertions in the Ladies Home Journal. Results were watched carefully both in America and England. It was the first advertising program on a national scale tried in either country. Foster reported to the Liverpool directors on the results late in October of that year as follows: "You have asked about the success of our advertising in the Ladies Home Journal. We are pleased to say that the inquiries from the October issue are four times greater than we have had from any previous issue. Of course, inquiries do not necessarily mean orders. Yet we are getting some orders and through the parties ordering we are reaching others. We feel that our name is making an impression which will bear fruit." At this time the company began advertising in newspapers of the cities in which its branch houses were located. An attempt was made to help out the Rochester, N. Y., commission salesman by newspaper advertisements but this showed no visible result as far as the salesman was concerned. Through many avenues the firm's advertising program developed and as Foster says, "So taking all things together, we are satisfied we are on right lines in our advertising and confidently look for good results after a time." 136 While not strictly an advertising piece, a booklet, "American Pork for the Fancy English Trade," was published in 1901. In this book- let, addressed to his farmer friends, Foster pointed out its purpose in these words: "Desiring to co-operate with you in making the hog business more profitable for both of us, we have investigated the requirements of the best English trade which is not touched by the product of American raised hogs, with the result that it appears American pork is lacking in firmness and leanness, which properties are possessed by the hogs raised in England, Ireland and Denmark. The causes for these dififerences grow out of the breeds and the man- ner of feeding employed on the two sides of the Atlantic." The booklet then covers the best breeds to meet English require- ments, methods of feeding to secure the best bacon hogs, how to feed the young, how to fatten properly for sale to the packing house, oats and peas as food, and many other matters of prime importance to farmers of the Ottumwa area. This booklet could be considered as the first actual demonstration of an interest in public relations. Cer- tainly it was well received by the farmers and assisted the Ottumwa plant materially in securing the kind of hogs needed. Several Morrell brand names came into existence during this period. One, "Daisy Brand," was registered in England in 1897 for bacon. This mark was first used on 10 boxes, 13-18 lb. average, shipped from Ottumwa on March 8, 1897. This mark consisted of the stenciled words only. In the United States the now famous Morrell heart design came into existence in 1897 ^^'^ was registered for use on all first grade packing house products. The original registration was for the heart design alone. But through the years the company has registered this mark in as many different ways as possible in regards to design and word. The words, "Snow Cap," for use on lard were registered in 1897, and three years later the words, within a heart design, were registered. This mark, as were the words only, was for use on lard cartons and wrappers. In 1898 came "Eureka," a mark still in use today. The original 137 design was representative of a female figure carrying a flag and was used on hams, bacon and picnics. "Eureka" has been used in many different ways through the years, in the original design, within a heart design, and the word only. The word's first use in the heart design occurred in 1899 when it was established as a brand for some smoked meats. The words, "Red Letter," within a heart design, were registered for use on lard in 1899. "Frontier," word within a heart design, came into being in 1904 for use on bacon. "Allrite," word only, began to appear as a brand on smoked meats in 1905. "Yorkshire Farm" was registered in 1906 for sausage. The original registration covered the words only. The passage of the Meat Inspection Act of June 30, 1906, resulted from agitation brought forth by the publication of a novel, "The Jungle." This story was set in the stockyards district of Chicago and pictured the working conditions of the people employed as well as the sanitary conditions of the big packing plants. Enormously suc- cessful even though misleading in essential facts and conditions, this book aroused the public which in turn brought a clamor for stronger Federal control of packing house operations and conditions. The up- roar reached Washington as a demand for legislation. President Theodore Roosevelt lent his support to the public clamor and his support, more than anything else, finally resulted in the passage of the Beveridge Amendment on June 30, 1906. This enactment is now known generally as the Meat Inspection Act. By the terms of this Act the Secretary of Agriculture received increased authority, inspection was required, provided for reinspection and supervision of all processing, preparation and labeling of meats and products, and provided for rigid sanitary controls. At the same time, by other provisions, the Act made mandatory many things not con- templated in previous enactments. The Secretary of Agriculture designated the Bureau of Animal Industry to take over the increased duties and responsibilities. The law became effective July i, 1906. The new law brought under the scope of the Bureau a large number of small slaughtering and processing plants which had pre- 138 viously been outside the law. It put all packers, dealing in interstate business, on an equal footing. The Meat Inspection Act of 1906 was of great importance to the meat packing industry. Packers themselves were for the regulation and inspection it demanded. They welcomed the government inspec- tors into their plants and cooperated with them in every way possible to fulfill the provisions of the law. If for no other reason, this Act must be considered of prime importance to the industry because it aided the packers in clearing up a lot of misunderstanding on the part of the general public. Likewise, it assured this same public they need have no fear of meat products coming from federally inspected plants. 139 I 9 O 7 y^l "Tprtrtlr As the company began its eighty-first year there Ky^f^^^Y^*^ were few signs indicating the great changes to take -ir ^P ^f place in the next ten years. No one believed that Thomas D. Foster, vigorous in body and spirit, would have passed to his reward; that John H. Morrell, forced to retire in 1912 because of his health, would be called back to take over \ht presidency of the company after Foster's death. Division of the American and English businesses into separate but parallel organizations with interlocking directorates was not foreseen. Some signs indicated the formation of new companies; the possibility of leasing or building a new plant in the great northwest; the expansion of domestic sales territories and the opening of new branches; the conclusion of the Hormel relationship. And as the company's eighty-first year began few peo- ple believed that Europe would be in deadly struggle a few years later, a struggle that was to have some bearing on the business of John Morrell & Co., Ltd. No, 1907 did not indicate all of these things. 141 Following completion of negotiations begun in 1906, George A. Hormel was able to acquire the stock which John Morrell & Co., Ltd., held in his business. With the transfer of this stock early in 1907, an arrangement which had served both firms well was ended. The association had been mutually satisfactory. The additional funds which Morrell had put into the Hormel business allowed that firm to make needed improvements and develop plans for expansion. In turn Morrell received a considerable quantity of product which helped the company over some bad periods when its sales territories were expanding faster than the plant's ability to handle. During the winter of 1907-08, Thomas D. Foster saw the necessity of expanding his manufacturing facilities, if the business was to con- tinue the steady growth which had been its since 1827. For years he had felt that if the company's business was to expand to any extent, such expansion must be into the north and northwestern states. An- other reason for looking in this direction was the desire to get into a region which could supply the northern type of hog, a bacon type more suitable for the English market. After considerable corre- spondence with the Liverpool directors, it was agreed that an effort should be made to secure a location in the northwest. Foster took a trip through Minnesota and the Dakotas, surveying different sites as a possible location for the proposed new plant. He finally decided on Sioux Falls, S. D. At the moment there was little to indicate this would be good country in vi^hich to locate a meat packing concern. But, backing up Foster's judgment, the territory adjacent to Sioux Falls was to become one of the country's largest hog producing areas. Sioux Falls having been selected as the location for the company's new plant, a small building known as the Green plant was leased in 1909. T. Henry Foster was sent to Sioux Falls in May of 1909 to take charge of the plant and to get it ready for business. Far from being discouraged at the small and cramped quarters, Foster imme- diately made plans for its rearrangement and necessary repairs. J. C. Stentz was sent to Sioux Falls in June of that year to assist Foster in getting the new plant ready to operate. Another early arrival on the 143 scene was Jack Morris who became plant superintendent. Morris had been employed in the Ottumwa plant for many years and at the time of his transfer was working as foreman of the hog killing gang. The new plant was ready to operate by July. Because of inexperi- enced workers the hog kill was very low the first few months; the poor condition of the equipment likewise was not conducive to a high rate of slaughter. Improvements were noticed as those in supervisory capacities ironed out the difficulties and soon the plant's slaughtering capacity was from 200 to 500 hogs a day. Foster and Stentz have told many amusing stories of those first days at Sioux Falls. One of them concerns the day they had to stop killing hogs because the splitter didn't show up for work. A few of the men, thinking they knew some- thing about the job, tried it but the resulting workmanship left something hardly recognizable. The mangled carcasses had to be sent to the lard tank and all slaughtering operations were stopped. Too much credit cannot be given to these two young men for the industry and courage they showed in getting the plant into successful operation under the worst conditions imaginable. The eight hour day was unheard of then. The usual working day for Foster and his men was from daylight until dark and during the winter months it started considerably before daylight and lasted until sometime after dark. At the beginning of operations at Sioux Falls the dressed carcasses, after hanging in the chillroom for 48 hours, were taken to the loading dock and placed in refrigerator cars for shipment to Ottumwa. These carcasses were then cut and processed in the Ottumwa plant. Soon there came a call from the Sioux Falls trade area for the sale of fresh meat from the local plant. This call brought about the formation of a sales department with Stentz in charge. With the establishment of this department the manufacture of lard and sausage began in a small way in the Green plant. Smoked meats were sent from the Ottumwa plant to meet the demands of the market at Sioux Falls. There were only two salesmen in the original department; one of them, the late L. E. McQuillan, is still remembered by many in the Morrell organization today. At the end of the first year of operation, the figures showed 89,203 144 1873- MANAGER, SIOUX FALLS PLANT, 1912-1939 hogs and i,i86 cattle had been slaughtered. Also clearly indicated was the fact that the Green plant was not large enough for the com- pany's needs. Because of the success of the first year's operations, it was only natural that officials decide to carry on at Sioux Falls. After that decision had been made, land was purchased and in May of 1910 ground was broken for the first building. By April of 191 1 all build- ings thought necessary had been completed, the Green plant was abandoned and activities were centered in the new plant. George M. Foster went to Sioux Falls in December of 1910 to take charge of the installation of all mechanical equipment in the new buildings. He had been connected with the Ottumwa mechanical department since 1909 when he completed his schooling. In Janu- ary of 1910, Foster was made night engineer and during the spring was promoted to assistant to the chief engineer, C. A. Orr. He con- tinued in that position until December when he was transferred to Sioux Falls as chief engineer. At Sioux Falls, Foster had charge of installing all mechanical equipment and getting the plant into good running shape. He was named assistant superintendent in 191 1 and three years later was promoted to assistant manager of the Sioux Falls plant, serving under his brother, W. H, T. Foster. In 191 2, following the retirement of John H. Morrell from the business because of his health, T. Henry Foster was recalled to Ottumwa to become assistant manager, a position made vacant by Morrell's retirement. W. H. T. Foster was then sent to Sioux Falls to manage the business there. He continued in that position until his retirement in 1939. For the first six months of 1909 the firm had a healthy profit of £81,121. And at about the same time the English government decided it needed more money and that an ideal method for raising this money would be higher income taxes on business profits and salaries of in- dividuals. Thus was set in motion a chain of events which were to have far-reaching effect to John Morrell & Co., Ltd. The first link in this chain was forged by suggestions contained in a letter from Alfred Morrell, of Liverpool, to the directors in Ottumwa, when he wrote : 146 "With the growing demands of the party in power here in regard to Social Reform it may come to an income tax of i/6 to 2/ — in the £ and being a company registered in England, according to law wc must pay on all foreign profits. The profits must come into our balance sheet before distribution and it is our balance sheet profit that we are called upon to pay at the poundage fixed by parliament. "We know of no other packing company doing this . . . "All the large packers have separate registered companies here that have nothing to do with the American end of the business . . . "There are many points to consider on this question: "ist — Would need liquidation of present company and register- ing smaller one here and registering also on your side. "2nd — Question of how Bank of Liverpool would regard it and if it would affect our overdraft, but on this latter score could no doubt give some understanding and show them American balance sheet. With our new and intended arrangements with Victoria Cold Store can give them more security of goods here than in past. "3rd — How your banks would regard it. But as you give ware- house receipts for most of your loans don't expect this would make very much difference. "4th — If your government were to pass an income tax law it would be absolutely necessary that we separate the business. Question is — Ought we to be looking ahead, preparing for this feature? It would take us, no doubt, quite a year to settle all details and we might get caught one year with tax to pay in two countries. "5th — The death duties have again been advanced here. You no doubt are fully aware that a foreigner holding stock in an English company has to pay the English death duties." After considering the Liverpool letter the Ottumwa directors decided steps should be taken to set up the American and English businesses as separate concerns. Negotiations and correspondence followed between Liverpool and Ottumwa through the spring, sum- mer and early fall as details were worked out for separate organiza- tions and for the several companies to be organized in America. Attorney for the Ottumwa directors was William McNett, a veteran 147 Ottumwa lawyer, who served the company for many years as legal advisor. By November necessary details had been worked out, an agree- ment by the English company to sell its American properties had been secured, the American company had been incorporated under the laws of the States of Maine and Delaware, and the Kittery Realty Company, a holding company, which had purchased the American properties of John Morrell & Co., Ltd., had been organized and chartered under the laws of the State of Maine. At the same time a co-partnership agreement was drawn up between the directors in England and America, which was to continue temporarily the pre- vious relationship of the company in the two countries. On November 8, 1909, Articles of Agreement for the Kittery Realty Company were drawn up under the laws of the State of Maine. This company was organized as a holding company for real estate owned by John Morrell & Co., Ltd., in the United States. The Arti- cles of Agreement provided that the Kittery Realty Company could carry on the following lawful business : Purchase, acquire, sell, mortgage, lease, handle or deal in real estate, lands, machinery and fixtures located thereon in the United States and its territories or in the Dominion of Canada. The cor- poration could also improve or build such structures upon property which it might acquire as would be suitable for packing or mercantile purposes. The corporation could also accept and hold physical and personal property, including its corporate stock, in trust, providing proper steps should be taken to set up such a trust. The corporation could carry on the business of dealing in, selling, feeding, slaughtering and preparing for the market, cattle, hogs and sheep any place in the United States, the Dominion of Canada, or elsevi'here. Further it could dispose of the products thereof in the markets of the world at wholesale or retail. It could also participate in any of the side line businesses of the produce industry. The signers of the Articles of Agreement, Thomas D. Foster, John H. Morrell and William McNett, all of Ottumwa, and Elmer J. 148 Burnham of Kittery, Me., met at Kittery to complete the organiza- tion of the new company on November 8. Because the signers were the stockholders, the first meeting was held at that time. Business matters settled included adoption of the Articles of Agreement, fixed the capital stock of the company at two million dollars, to be divided into 200,000 shares of a par value of $10 each, and adopted a set of by-laws. Upon determination of the value of the stock, each of the signers took 10 shares. The board of directors of the Kittery Realty Company, limited to four persons by the by-laws, was then elected. The four original holders of the company's stock were advanced to the board. By action of the directors Thomas D. Foster was elected president, John H. Morrell, vice-president and treasurer, W. H. T. Foster, sec- retary, T. Henry Foster, assistant secretary, and Elmer J. Burnham, clerk. Burnham and McNett resigned from the board later in the year and W. H. T. Foster and T. Henry Foster were elected to succeed them. The company was to maintain a general oflice in Ottumwa, Iowa, and an office in Kittery for stockholders' meetings and to hold such books and records as required by the State of Maine. The Kittery office was maintained until May 15, 1916, when it was moved to Portland, Me., by action of the board of directors. After T. Henry Foster moved to Sioux Falls in 1909 he gave up his post as assistant secretary of the company, although continuing on the board. At the annual meeting of the board in 19 12 he was returned to the post of assistant secretary. Later on in that year, W. H. T. Foster was transferred to Sioux Falls to manage the plant there — and for that reason tendered his resignation as secretary, although continuing on the board. The resignation was accepted and T. Henry Foster was elevated to the position of secretary in 1913. At the next annual meeting of the board he was also given the addi- tional duties of treasurer. At the annual meeting of the stockholders held at Kittery on June I, 1916, the by-laws of the company were changed to provide foi three directors rather than four as previously required. This change 149 had been brought about by the death of Thomas D. Foster during the previous year. After approval of the change John H. Morrell, T. Henry Foster and W. H. T. Foster were elected to the board. It was at this same meeting that the Maine headquarters of the Kittery Realty Company were moved to Portland. At a meeting of the board of directors in Ottumwa following the annual meeting, John H. Morrell was elected president, T. Henry Foster, vice president, and W. H. T. Foster, secretary-treasurer. J. W. Mock was elected assistant secretary. One of the biggest changes in the company's corporate existence, since its beginning in 1827, occurred in 1909 when the American portion of the business was purchased by John H. Morrell, acting for the Kittery Realty Company and American interests, from the Eng- lish organization. Details of the transfer were covered in an agree- ment drawn up on November 15, reading: THIS AGREEMENT made the 15th day of November, 1909, BETWEEN JOHN MORRELL & COMPANY, LIMITED whose registered Office is situate at Liverpool, England (hereinafter called 'The English Company') of the one part and JOHN HOWARD MORRELL of Ottumwa, Iowa, U. S. A., on behalf of the Company below mentioned (which Company is hereinafter referred to as ('The American Com- pany') of the other part.) WHEREAS the English Company own cer- tain lands, buildings and other assets in the United States of America . . . AND WHEREAS the English Company intend in future to confine their trading operations to a great extent to the United Kingdom of Great Britain and Ireland and are therefore desirous of disposing of the lands, buildings and other property belonging to the English Company in the United States of America (hereinafter sometimes referred to as 'The American Property') AND WHEREAS the American Company to be called The Kittery Realty Company is about to be formed in the United States of America under the laws of the State of Maine, having for its objects among other things the acquisition and working of the American property of the English Company, AND WHEREAS It is intended that the American Company shall immediately after the incorporation thereof adopt the Agreement hereinafter agreed to being these presents, NOW IT IS AGREED AS FOLLOWS : — I. The English Company shall sell and the American Company shall purchase the American property of the English Company . . . 150 I864-I92I PRESIDENT, JOHN MORRELL & CO., 1915-1921 2. Part of the consideration for the said sale shall be the sum of £213,191-3-3, which shall he paid and satisfied in cash or by a bank or other satisfactory credit. 3. As the residue of consideration for the said sale the American Company shall undertake to pay, satisfy, discharge and fulfill all the debts, liabilities, contracts, and engagements of the English Company in relation to the American Property hereby contracted to be sold and shall indemnify the English Company against all proceedings, claims and demands in re- spect thereof. 4. The lands and buildings are sold free from all encumbrances but subject to all rents and obligations affecting the same. 5. The American Company shall without investigation, objection or requisition accept such title as the English Company have to the premises hereby contracted to be sold. 6. The purchase shall be completed on the thirtieth day of November, 1909, at Ottumwa, Iowa, U. S. A., when possession of the premises shall as far as practicable be given to the American Company and the consideration so far as the same consists of cash shall be paid and satisfied subject to the provisions of this Agreement and thereupon the English Company and all other necessary parties if any shall at the expense of the American Com- pany execute and do all assurances and things for vesting the said premises — in the American Company and giving to it the full benefit of this Agreement as shall be reasonably required. 7. If from any cause whatever other than the willful default of the English Company the purchase should not be completed on the said thirtieth day of November, 1909, the American Company shall pay interest on the said sum of £213,191-3-3, at the rate of five per cent per annum until the purchase shall be completed. 8. The possession of the said premises hereby contracted to be sold shall be retained by the English Company up to the said thirtieth day of November, 1909, and in the meantime they shall carry on the business in the same manner as heretofore so as to maintain the same as a going con- cern, and they shall from the thirtieth day of November, 1909, be deemed to have been and to be carrying on such business on behalf of the American Company and shall be entitled to account and be indemnified accordingly. 9. Upon the adoption of this Agreement by the American Company in such manner as to render the same binding on the American Company the said John Howard Morrell shall be discharged from all liability in respect thereof. 10. Unless before the thirtieth day of November, 1909, the American Company shall be entitled to commence business either of the parties hereto may by notice in writing to the other determine this Agreement, and after adopting this Agreement the American Company shall stand in the place of the said John Howard Morrell, for the purposes of this clause. 152 11. If this iVgreement shall not be adopted by the American Company in manner aforesaid before the thirtieth day of November, 1909, either of the parties hereto may by notice in writing to the other determine the same. 12. The termination of this Agreement under either of the last two preceding clauses herein shall not give rise to any claim for compensation, expenses or otherwise. Particulars of the assets included in the sale were: All the land and buildings situated at Ottumwa, now in the possession of John Morrell & Co., Ltd. Premises at Mobile, Ala. Equity in premises at Boston, Mass. Shares in Morrell Refrigerator Car Company. Shares in Yorkshire Land & Cattle Company. Shares in Yorkshire Creamery Company. Shares in Iowa Manufacturers Insurance Company. All Chicago Board of Trade memberships. All stocks of products, packages and supplies. All machinery, fire sprinklers, wells, water mains, railroad tracks, vehicles and utensils. All livestock including horses and mules. All debts owing to the company in America. Sale of American interests was completed as specified in the Agreement by November 30. These interests were in turn included in the assets of the Kittery Realty Company, from which the Amer- ican business made arrangements promptly to lease the real estate, machinerj^, equipment, etc., acquired in the sale. While the sale of the company's American properties did not exactly change the official setup of the firm, it represented a depar- ture in that the English organization would now confine itself to trading activities in England and to a slight extent on the continent. However, the English business still maintained a semblance of con- trol over its more lusty American youngster, a relationship which was to continue until 1915 when John Morrell & Co., Inc., a Maine Corporation, the Kittery Realty Company, and John Morrell & Co., Ltd., became separate but parallel organizations. In 1909 the co-partnership of Thomas D. Foster and John H. 153 Morrell, in America, was superseded by a temporary co-partnership which included Thomas D. Foster, John H. Morrell, W. H. T. Foster, all of Ottumwa, T. Henry Foster of Sioux Falls, and Alfred Morrell and George F. Morrell, of Liverpool. The first meeting of the new co-partnership was held on Novem- ber 24, 1909, and a Committee of the Management of the co-partner- ship was established with the first five partners as listed named to the committee. Thomas D. Foster was elected chairman and W. H. T. Foster, secretary. The main purpose of this meeting, however, was to arrange for the lease from the Kittery Realty Company of all its real estate, buildings, machinery, equipment, etc., which that com- pany had recently acquired from John Morrell & Co., Ltd. At the same time the committee made arrangements to negotiate with the Kittery Realty Company for all personal property, chattels, monies and credits now held by that company in the United States and like- wise acquired from John Morrell & Co., Ltd. These latter negotia- tions did not include the capital stock of the Yorkshire Land & Cattle Company, the Yorkshire Creamery Company, or the Morrell Refrig- erator Car Company trustee certificates which Kittery also owned. Stockholders of the Morrell Refrigerator Car Company had voted at their annual meeting in 1905 to dissolve the company. Following this action, physical property and assets of the company were sold to W. H. T. Foster as trustee for the stockholders. Following conclu- sion of the sale, Foster issued trustee certificates to each stockholder. It was these certificates which were not included in the Kittery nego- tiations. W. H. T. Foster continued as trustee until 1916 when he re- signed and was succeeded by his brother, T. Henry Foster. Membership of the Committee of the Management continued as originally established until the meeting of October 30, 191 2, when the following paragraph is entered in the minutes: "That the co-partners have received with regret the resignation of Mr. John H. Morrell as a member of the Committee of the Man- agement, but request Mr. John H. Morrell to continue on the Com- mittee as a non-active member in accordance with the amended Articles of Partnership; and that a committee be appointed to draft 154 suitable resolutions expressive of the high esteem in which Mr. John H. Morrell is held by his co-partners, and that same be presented at the next meeting of the Committee of the Management." Acting on the advice of his physician that he should give up ac- tive participation in the business, Morrell had tendered his resigna- tion. Following the committee's recommendation he continued on the Committee of the Management. Morrell arranged an office in his home, thereby being able to handle almost as much business as he would if he had been at his office in the plant. He also made it a point to get down to the plant as often as he could. The officers of the Committee remained as originally established until meeting of December 26, 191 2, when W. H. T. Foster resigned as secretary and was succeeded by T. Henry Foster. The temporary partnership continued until April of 1914, at which time Thomas D. Foster's health began to fail and the Commit- tee of the Management felt that it would be better to have the co- partnership and its terms of agreement put in more permanent form while he was available to assist in the drawing up of new articles of co-partnership. The new Articles of Co-partnership were drawn up and read in part: ARTICLES OF CO-PARTNERSHIP AND AGREEMENT made and entered into at the City of Ottumwa, Iowa, on this ist day of April, A.D., 1 9 14, by and between Thomas D. Foster, John H. Morrell, William H. T. Foster and Thomas Henry Foster, all of Ottumwa, Iowa, and Alfred Morrell, George F. Morrell and William A. Venables, of Liverpool, England, WITNESSETH: That the above named persons do hereby associate themselves together as partners, and do hereby form a co-partnership under the name and style of John Morrell & Company, composed of the foregoing persons as sole members thereof . . . The home office and principal place of business of the co-partnership, shall be located at the City of Ottumwa, Iowa, where the principal books, accounts and records of the firm shall be kept, and where the general meetings of the partners and of the Committee of the Management, shall be held, unless by common and general consent, they shall be held else- where . . . The affairs and business of the firm shall be managed and conducted by a Committee of Partners, to be known as the "Committee of the Management" hereinafter sometimes referred to as the "Committee," a majority of whom shall constitute a quorum, and have the right to act, except where these articles may require the unanimous action of the Committee. This Committee shall select from their number, a chairman and secre- tary, who shall be chosen annually at the annual meeting of the firm, and shall hold their positions for one year, or until their successors are chosen. For the first year of the partnership, this Committee shall consist of Thomas D. Foster, John H. Morrell, Alfred Morrell, William H. T. Foster and Thomas Henry Foster. Thomas D. Foster shall be chairman and Thomas Henry Foster secre- tary of the Committee. . . . Other articles in the agreement covered the regular procedures for conducting and handling the company's business. The co-partnership continued in existence until December 31, 191 5, when its property and assets of every kind were sold in part to John Morrell & Co., a Maine corporation, and in part to John Morrell & Co., a Delaware corporation. Slaughtering of beef had been a minor part of the company's business at Ottumwa prior to 1909. But in that year a new beef house was constructed and in time beef took its important place in the pro- duction figures of the company. Incidentally, it was this beef build- ing which almost brought about the closing of the Ottumwa plant. The new beef house, valued at $65,000, was under process of construction during 1909. When the 1910 assessment was made this building was put on the tax roll at full value and would have ma- terially increased the company's tax to the City of Ottumwa. Com- pany officials had made no objection the previous year when a substantial increase had been made in its valuation. But now the company got into an argument with city authorities over its tax assessment, claiming that taxes on the Ottumwa property were much higher than those on other packing plants in Iowa, which the company had to compete with for business. The company threatened to close down the plant unless taxes were put on a competitive basis with other Iowa plants. At one time 156 it looked as if the plant would actually close down, but eventually the matter was adjusted with the taxing authorities and the Ottumwa business continued uninterrupted. During this period major expansion moves of the American com- pany seem to have made the news, however, one project undertaken by the Liverpool office should be recorded here. In 1910, John Morrell & Co., Ltd., owned warehouses which were conveniently near the head office, but these buildings were not equipped with refrigeration. It was necessary therefore that product requiring re- frigeration be stored in several of the public cold stores of Liverpool. At this time almost all of the ham and bacon shipped into the United Kingdom by Ottumwa arrived at Liverpool and it was not unusual for Liverpool to be carrying a stock of 5,000 to 6,000 boxes, weighing 500 to 600 pounds apiece, of hams and bacon, disposed in several public cold stores in the Liverpool area. Inasmuch as some of these were five and six miles from the head office, storage was expensive, supervision diificult, and there was a considerable waste of labor. As volume of business from Ottumwa increased and with the anticipated receipt of additional product from the new Sioux Falls plant, it became clearly evident to the English directors that some- thing must be done to secure or build a cold store which would centralize the storage of product as near the head office as possible. It so happened that at this time a site adjoining the company's warehouse became available. After considerable negotiation it was purchased and a building erected. The total capacity of this cold store was 64,000 cubic feet; later additional space was taken from the warehouse. This space of 51,000 cubic feet gave Liverpool a total of 115,000 cubic feet for cold storage needs. The cold store was put into operation in 191 1. Shortly afterwards it seemed advisable that this business be constituted as a separate organization. As the Victoria Cold Storage Co., Ltd., it would be in position, as an independent concern, to transfer title to goods and issue warehouse receipts when the title passed from John Morrell & Co., Ltd., to a third party. For some reason or other the canning of tomatoes in Ottumwa which had been such a successful venture for several years began to fall off and was entirely discontinued in 1913. During the summer of that year, Foster wrote to the Liverpool directors that "tomato canning is no good." Two appointments to the board of John Morrell & Co., Ltd., were made during this period. T. Henry Foster was named on June 14, 1913, and George F. Morrell on July 14, 1914. Authorized increases in the membership of the board permitted both of these men to take the places so made. In 1913 the company was approached by an American competitor who offered to buy the business if terms could be mutually agreed upon. At that time there was quite a strong feeling amongst the stockholders of the business that the proposition should be con- sidered. However, after considerable negotiation with the com- petitor, the deal fell through. When Thomas D. Foster's health began to fail in the spring of 1914, he was forced to retire from the business. That he was aware of his condition is evidenced in a letter written to the Liverpool directors on August 2, 1913. Among other things he wrote: "The outlook for our business was never better than it is today. So feel like going slow in making changes. At the same time the writer realizes that it may not be his to manage very long and is desirous to leave it in the best possible shape for those who follow." He was succeeded temporarily by his son, T. Henry Foster. Fol- lowing his retirement, Foster was advised to go east and spend some time in Atlantic City. This suggestion was followed. He returned to Ottumwa in the fall and tried to take an active part in the business again, but his condition would not permit. He journeyed to Chicago in the late fall for a stay in the hospital; a few days before Christmas Foster went to Miami, Fla., in the hope that he would be able to regain his health. His condition was not aided by the Florida climate so he returned to Ottumwa where he was confined to his home most of the time until his death on July 20, 1915. Following the death of his father, T. Henry Foster wrote to the 158 Liverpool directors, apparently in reply to a letter of sympathy from them, in the following words : "We thank you for the expressions of sympathy on the death of Mr. Thomas D. Foster. In his passing we feel that we have forever lost contact with the pioneers in the business, represented in his gen- eration. It is as if the last span in the bridge connecting the present with the past had been swept away. Still the memory of all of them will remain, doubtless, as long as the business exists." And how true the son's words were. His father had been the last surviving member of the group which had worked so closely with John Morrell, the organizer of the company. Much of the success of the company's operations in America can be laid directly to Foster's activities. Even though the last span had been swept away, Foster had lived to see steps taken which put the business in the "best pos- sible shape for those who follow." Now that he was gone, steps were taken for the reorganization of the businesses, both in America and England. John H. Morrell was elected president, T. Henry Foster, vice president and general manager, and W. H. T. Foster, secretary and treasurer. As the firm's subsidiary companies held their annual meetings, these same three men were elected to comparable positions on their boards. Included in these were the Yorkshire Land & Cattle Company, the Yorkshire Creamery Company and the Kittery Realty Company. In England, Alfred Morrell was elected chairman of John Morrell & Co., Ltd. John H. Morrell, new president, had entered the service of the company in 1880, as a lad of 16 years, in the Liverpool ofRce. He came to America in 1883 and was assigned to the Chicago office. Five years later he moved to Ottumwa to become associated with Thomas D. Foster in the management of the American properties. Because of his health he had been forced to retire from active participation in the company's business in 1912. However, he remained as a member of the Committee of the Management of the co-partnership, thus having a clear picture of the business. Even though in failing health, he was ready to assume the duties of president when they came to him following Foster's death. 159 When Alfred Morrell was elevated to the chairmanship of the English business, heads of the two concerns making up John Morrell & Co. were brothers. Alfred Morrell entered the firm's employ while still a lad. He came to Chicago with his father, George Morrell, and his brother in 1883. While his father and brother stayed in Chicago, he came to Ottumwa and worked as a clerk in the office prior to his return to England in 1888. From that year until his death in 1924, he devoted his energies to the English business. In planning for the reorganization of the American companies, it was decided that separate corporate structures should be set up in two states, Maine and Delaware. The Maine corporation would take over everything owned by the company in the states of Iowa and South Dakota. The Delaware corporation, primarily organized as a selling unit, would be allotted all company property outside the states of Iowa and South Dakota, as well as the Chicago office. John Morrell & Co. was incorporated under the laws of the State of Maine on December 6, 1915. As finally set up, the by-laws of the Maine corporation provided among other things that the company would have and maintain its general office in Ottumwa; would have and maintain offices in such other places as the board of directors might determine; would have and maintain an office in Portland, Me., where its stockholders' meetings would be held and where such books and records, as required by the laws of Maine, would be kept. It likewise provided for a board of directors of three members, all of whom were to be stockholders in the company. The authorized capital stock of the corporation was established at two million dollars, to be divided into 200,000 shares of $10 each. At a meeting of the stockholders of the new corporation on December 7, John H. Morrell, T. Henry Foster and W. H. T. Foster were elected to the board. The first meeting of the board was held at Ottumwa on December 21, 1915, with all members present. John H. Morrell was elected president of the company, T. H. Foster, vice president, and W. H. T. Foster, secretary-treasurer. Following the adoption of the by-laws, the directors initiated steps for purchasing the business from John Morrell & Co., a co-partnership, and to lease 160 1865-1924 CHAIRMAN, JOHN MORRELL & CO., LTD., 1915-1924 property at Ottumwa and Des Moines, Iowa, and Sioux Falls, S. D., plus such additional real estate as necessary to properly carry on the business from the Kittery Realty Company at an annual rental. At a meeting of the board on December 31, 191 5, J. W. Mock was elected assistant secretary. A few days later, on December 1 1, steps were taken to incorporate the business under the laws of the State of Delaware. The Delaware corporation was to have an authorized capital stock of $100,000, divided into 10,000 shares of par value $10 each. The by-laws provided for a board of directors of three members, and that the principal office of the business was to be in Wilmington, Del. But it was also stated that an office could be maintained in Ottumwa, Iowa, and that all meetings of stockholders would be held in Ottumwa. The first meeting of the Delaware corporation was held on December 13, 1915, and at that time John H. Morrell, T. Henry Foster and William H. T. Foster were elected to the board of directors. The directors held their meeting at Ottumwa on Decem- ber 21, 1915, and at that time John H. Morrell was elected president, T. Henry Foster, vice president, and W. H. T. Foster, secretary- treasurer. Additional business at this first meeting covered the pur- chase of certain items from John Morrell & Co., a co-partnership, and the lease from Kittery Realty Company of all the real estate, machinery and other equipment which it owned at Mobile, Ala., Boston, Mass., and Fargo, N. D. Further the directors authorized the vice president to negotiate with John Morrell & Co., a co-partner- ship, for the purchase of all property and assets owned by the co- partnership in the following cities: Fargo; Minneapolis, St. Paul and Duluth, Minn.; Chicago, 111.; New York, Syracuse and Utica, N. Y. ; Boston; Mobile; and Memphis, Tenn. At a meeting of the board of directors on January 16, 1916, among other business considered, J. W. Mock was appointed assistant secre- tary of the Delaware corporation. As a further aid to the farmers in the Ottumwa area. Major T. P. Spilman was called on by company officials to undertake a study of 162 the methods for producing hog cholera serum. There was some cholera in the area and it was to the company's advantage to assist in combating it. After the resuhs of Major Spihiian's study were made known, it was decided to organize the Ottumwa Serum Co., a plant to produce anti-hog cholera serum. During the first year a little over 3,000,000 cubic centimeters of serum were produced and sold to farmers and veterinarians in Iowa and adjoining states. This serum was sold under the "Red Heart" brand. Major Spilman had joined the Ottumwa organization in 1880 as a stock buyer at Ottumwa. When operations started at Sioux Falls, he was sent to that plant and placed in charge of all stock buying. He came back to Ottumwa a year later and continued to buy stock until 1915 when he was placed in charge of the Ottumwa Serum Co. Brought to Ottumwa in 1916 was Dr. G. H. Gillette as chief veter- inarian for the company and assistant to Spilman. The Yorkshire Creamery Company continued in operation throughout the period. A major change occurred when its physical properties were turned over to the Kittery Realty Company. Very few changes were recorded in the creamery company officers. Thomas D. Foster continued as president until his death in 1915, when he was succeeded by John H. Morrell, for most of the period vice president. W. H. T. Foster served as treasurer until 1912 when he moved to Sioux Falls and was succeeded by T. Henry Foster. Richard N. Morrell served as secretary for the entire period. In 1907 the company's board was made up of John Morrell & Co., Ltd., Thomas D. Foster, John H. Morrell, W. H. T. Foster and T. P. Spilman. Spilman resigned in 1910 when he was transferred to Sioux Falls as stock buyer. The Kittery Realty Company represented John Morrell & Co., Ltd., on the board from 1910. T. Henry Foster suc- ceeded his brother on the board in 191 3. W. H. T. Foster was re- turned to the board in 191 6 and named treasurer. T. Henry Foster succeeded to the office of vice president. The corporate office of the Yorkshire Creamery Company was moved from Kittery, to Portland, Me., in 1916. 163 As English and European markets declined, more and more emphasis on developing an American market was made. A com- petent sales organization was developed covering practically the en- tire country. The Ottumwa plant had already established several branches and during this period two more, Philadelphia and Syra- cuse, were opened. Additional car route points were opened, and all in all, the Ottumwa and Sioux Falls organizations were making a bid for their share of the country's meat business. After Stentz had set up the sales department at Sioux Falls, he soon branched out into the western states as well as in South Dakota and adjacent territory. J. C. Schultz was sent to Aberdeen, S. D., in 191 1 to open a sales territory there. A year later, October 5, 191 2, Schultz opened a branch and continued to manage it for the next two years. Morrell went into the Fargo, N. D., territory in 191 2 and opened a branch. One of the first buildings to be built by the com- pany for purely branch house operations was completed in Fargo in 1914. This building is still being occupied today. Another branch, at Duluth, Minn., was opened by H. E. Michael in 1913. Minne- apolis and St. Paul, in Minnesota, also became branch house cities for the Sioux Falls plant. The first of the Sioux Falls branches, Minneapolis, was opened in the spring of 191 1. Robert E. Perry was the first manager. Two years later another branch was opened across the river at St. Paul. Fred Funk, now cashier at Minneapolis, was the first cashier at St. Paul, beginning his duties in 1914. In addi- tion to the branches which were opened, Stentz also established stocks of company product in the Seattle and Spokane, Wash.; Helena, Mont.; and Grand Forks, N. D., territories. Formal branch house operations were not carried on at these points, however. Ottumwa's branch house operations were pretty well established ; however, two new branches were opened. Syracuse had been a sales territory for several years prior to establishing a branch there in 1912 with Joseph Herrmann as the first manager. From best available records it would seem that the Philadelphia branch was opened early in 1913 with Tash Cooper as the first manager. World War I brought an immediate call to the American firm for 164 expanded exports. Therefore there was a phenomenal increase in exports from Ottumwa and Sioux Falls. As shipments from these points were received in England they became a part of the pool for supplying food products to civilians and the armed services alike. Employees of the English firm were also called to serve in the armed forces and with the government in many capacities. As we come nearer the present day in the company's history, we find more and more names which still appear on the rolls, or have until recent years. It would be impossible to record all those who came with the company during the years from 1907 to 1916. Listed here are a few of the names which show up in the records frequently for one reason or another : M. L. Green, H. H. Lind, H. E. Michael, B. O. Gibbs, A. J. Hays, Joe Lennon, Carl Anderson, W. R. Sheets, J. W. Hahn, Elmer Anderson, T. H. Lee, Paul Boyd, Ray Kentfield, Peter Dreher, A. G. Anderson, G. E. Glew, E. O. Stump, E. S. Daggett, William Danek, T. R. Scott, Matt Henle, Harley Farns- worth, Frances Bullock, Andy Estes, Ray Cadwallader, Fred Bullock, Dan Mungoven, Bill Barton, C. E. Shelton, D. W. Dunton, W. E. Knight, Harold Kilborn, John Calkins, Esten Nesby, Art Woodman, Fred Smith, Harry Nason, Lancey Young, Everett Richards, Walter Lundgren, M. O. Gordon, William Claussen, Robert Smith, W. H. Noland, Charles Orman, R. R. Porter, C. A. Hatzold, C. W. Anderson, Frank Turgeon, R. S. Risley, Frank Nydle, Ben Allender, E. F. Jacobson, C. S. Burbank, P. E. Williams, Alex Ferris, Rudy Letrud, Walter Powell, Robert Mcintosh, Ben Oliver, Bob Tray, Ross Archer, John Skrabuha, Earl Creutzburg, S. B. White and W. J. Berguin. Among others were W. E. Mullins, the "boy wonder" butcher, who became superintendent of the Ottumwa beef department in 1910; an early trio at Sioux Falls, Earl Paxson, C. C. Ogborn and T. P. Nelson, who still hold important supervisory positions with the company; R. M. Owthwaite, now manager of the Topeka plant; J. W. Mock, formerly controller and secretary of the company; and H. F. Veenker, general plant super- intendent for many years. In England these employees were listed on the company's roll for the first time: W. Worthington, G. W. 165 Garrod, H. Johnson, E. J. Alty, T. A. Nelson, R. R. Birch, W. Blackburn, E. Roberts, A. E. Lancaster and E. T. Hughes. There were some changes made in the supervisory staff which have not been reported and these should be mentioned. M. T. McClelland continued his upward progress when he was promoted to the position of sales manager in 1915. Ernest Manns succeeded N. T. Sleight as superintendent of the Ottumwa plant in 1907. Em- ployed in 1893, Manns had worked in just about every department of the plant and had been a divisional superintendent in charge of the lard refinery and by-products department since 1904. George W. Martin, who had been assistant manager of the Chicago office since 1906, succeeded M. P. Kelley as manager in July of 19 16. J. M. Foster, youngest son of T. D. Foster, started his career in the packing business when he came to work during summer vacations from school. At the end of the period he was working in the superin- tendent's office as an assistant superintendent. J. W. Willoughby was transferred from Liverpool to London to head the office there in [914. Previous to this time there had been a London office but business originating at that point was small. It wasn't until Willoughby took over that Morrell products began to take a place in the London area. The great growth in that market is a tribute to his industry and ability. Several more trade-marks came into existence, used to designate various grades or cuts of meat. Most of them were developed to dis- tinguish various grades of bacon for both Sioux Falls and Ottumwa. Among these trade-marks were: "Air Ship," words within the design of a heart, 1910; "Comet," word within the design of a heart, 19 10; "Cataract," word used in connection with a river cataract, 191 1 ; and "Minnehaha," word used in connection with the head of an Indian maiden, 1916. "Dakota's Pride," words in connection with the figure of a boy carrying ham in one hand and bacon in the other, was devel- oped and used by the Sioux Falls plant to designate top quality pack- ing house products coming from there. This mark was a companion mark to the Ottumwa plant's, "Iowa's Pride," mark, which also used the boy carrying a ham and bacon and was first used several years 166 before. The Sioux Falls mark was first used in 191 1. Another trade- mark, the word, "Palace," in a distinctive script, was registered for use on canned meats in 1915. This mark was used before for export lard. It was a label with the word, plus a representation of the Palace of Justice at Brussels. During previous years the company's advertising had been re- stricted primarily to newspapers and a few national magazines. But as the field broadened for Morrell products in America, a greater need for advertising aids became evident. In order to meet this need attractive display cards were secured. Apparently the number needed was exaggerated because it later developed that a large number of the cards were on hand with the sales kick all but lost. In 1909, the management instructed T. George McElroy, adver- tising manager, to dispose of these advertising cards to the best advantage possible. McElroy had returned to tlie employ of the company in that year. He had started with the Ottumwa organization in the Billing department in 1895 but had left after eight years to go into business for himself. In seeking methods for disposing of the cards, McElroy hit upon the idea of using them as calendars. The idea was executed by at- taching calendar pads to the cards, and in that first year, 4,417 calendars were distributed to dealers. The following year regular calendars were prepared for distribution to the company's dealers. From this humble, though somewhat unusual, beginning has come the famous Morrell 12-sheet calendar of today. 167 /^iilSlS' '^^ ^^^^ period began for the company, England was ^^'^T'^^ already involved in World War I and the United States ^r J|[HP^r was to enter the war on the side of the Allies shortly. England's economy was being seriously strained by wartime condi- tions and imports were necessary, especially of meat products. The American company found this business of getting meats to Liverpool very trying. It had to contend with poor service because of unusually severe weather, embargoes, shortage of steamer space, threatened labor strikes and submarines. In his semi-annual report to the president, T. Henry Foster wrote on September 30, 1917, as follows: "The season covered by these reports is probably the most unusual and extraordinary in the history of the business, marking as it does, the entrance of the United States into the European war. All prece- dents on which business in normal times is conducted have been upset, forecasting the future as to supply, price, or demand has been impossible, and at times conditions surrounded as they have been by 169 uncertainties of every kind, have approached a state of chaos." Some of the troubles in connection with shipments were erased on September 4, 191 7, when the English government established the British War Mission and placed its representative in New York. This mission purchased all hams, bacon and lard for the United Kingdom and also arranged for forwarding it to England. It also handled purchases for the French government. Another factor having a bearing on the company's business was the American government's action placing all packing concerns un- der control of the Food Administration on November i, 1917. Of chief importance in this step was the government's limit on profit which could be made by packers — all those having a turnover of $100,000,000 were allowed a profit of 9% on the investment; packers doing less than this but more than $100,000 were limited to 2^% on the turnover. The Food Administration also demanded quarterly reports and this brought about a major change in the company's ac- counting system. The Food Administration made allotments of prod- uct to each packer for shipment to various foreign countries each month. The company felt it was treated fairly in this respect. With the end of the war all restrictions were removed as rapidly as possible and direct trade was resumed again on March 31, 1919, between the English and American organizations. However, this sit- uation was changed again on September i when the English govern- ment stopped all private importation. England established an office of the British Ministry of Food in New York. Packers in America had to act through this office in accepting orders and shipping prod- uct to England. The company sent M. T. McClelland, Ottumwa sales manager, to New York and after several weeks he was success- ful in negotiating a contract for 16,308,000 pounds of packing house products with the British Ministry. This office maintained control of meat shipments to England for some time and the following year the Morrell firm was given a contract for 31,000,000 pounds. The Ministry in making its allocations to the so-called English houses, that is, those American plants exporting regularly to Great Britain, based its decision on the percentage of business done by such 171 houses in a period prior to the war. Over the period of years selected, John Morrell & Co. had made the largest shipments and was entitled, therefore, to the largest per cent of the total allocation to the United States by the British government. Trade between England and the company in America continued brisk until the middle of 1920 when it began to fall off, never again to reach the peak of the war years. Both the English and American businesses played a big part in the war efforts of their respective countries in addition to producing great quantities of fresh, cured and smoked meats. Both saw their employees enter the armed services; both sent skilled men into gov- ernment service to aid in the prosecution of the war in civilian ca- pacities; and both participated in bond selling campaigns and other activities of the home front. Ottumwa and Sioux Falls employees bought bonds to the value of $56,200 in the first Liberty Loan drive, while the company's purchase was $100,000. Response on the part of employees and company in later drives was equally as good. In his report to the president, dated September 30, 1918, Vice President T. Henry Foster reported that 324 employees in America were in the country's armed services. Five Ottumwans made the supreme sacrifice. Along with war conditions the weather during the winter of 1917- 18 made conditions extremely troublesome for both Ottumwa and Sioux Falls plants. It was one of the coldest winters in the recorded history of the two cities; snows were heavy and snarled transporta- tion in all sections of the country. In addition to the weather, there was an enormous war traffic over the country's railroad lines. It was difficult to get enough refrigerator cars to handle the production of the two plants and when cars were available it was hard to get the railroads to accept them. There was congestion and confusion, em- bargoes and problems. All of which led to numerous shipping losses for the company. As the winter progressed, difficulties for the railroads increased and finally the government took over their operation on January i, 1918. In taking this step, the government promised relief from the 172 troubles of private ownership and pledged economies of operation. Immediately upon inception of federal control, industry found itself further hampered. The promised relief never came. Wages w^ere in- creased and shipping rates jumped from 25 to 35 per cent, thereby adding extra expense to those industries dependent on rail shipment. Rolling stock was pooled regardless of the owning railroad and sent where it was thought it would be the most useful, and which, in most cases, proved to be the wrong place. The inconvenience to the public during this period brought forth unlimited criticism of government ownership. Federal operation of the railroads failed miserably and the com- pany found itself continually hampered until railroads were re- turned to their regular owners, March i, 1920. During the early years of this period the company was able to do a moderate amount of business with continental European countries, sending meat products and lard to France, Denmark, Holland, Switzerland and Italy. At the conclusion of the war, exchange con- ditions became such that it was impossible to trade on the foreign market and the company was forced to stop shipments entirely. In 1921 an arrangement with Hugo Krogh & Co., Copenhagen, Denmark, was completed whereby that firm was to represent the company in Denmark, Scandinavia and Finland. This deal proved to be a good one and Hugo Krogh & Co. has long represented the company in those countries. This arrangement brought the com- pany's product back on the northern European market. Previous to 1921 European agents for the company were active in Holland and to some extent into northern Germany. Goossens and Van Rossem, Rotterdam, Holland, represented the company in Hol- land and Germany. This firm managed to survive the period of un- equal exchange and was able to place company products in the mar- kets of their territory. Goossens and Van Rossem still represent the company today, although suffering terribly at the hands of the Ger- mans during World War II. In Bordeaux, France, Emmanuel Coste represented the company but on a minor scale as far as sales were concerned. ^72 In July of 1919 many of the larger meat packers of the country met to organize the American Institute of Meat Packers. T. Henry Foster attended the meeting as representative of John Morrell & Co. While the ideals of the organizers met Foster's approval, he ex- pressed the belief that the Institute could do little to cure the prob- lems of the industry. It was his idea that the company would retain its membership for one year, cooperate in every way possible with the program, and then resign if nothing had been accomplished or a worthwhile start made. The Institute of American Meat Packers was organized to help combat on a nationwide scale the unfavorable publicity directed against packers; to combat many unfavorable, as well as economi- cally impossible, legislative proposals which had been brought forth in Washington; and generally to promote the interest of the meat packing industry by research, promotion and such other means as possible. Probably one of the most important reasons for bringing about this first meeting of meat packing representatives was the fact that during the summer of 1919 a great deal of anti-packer legislation had been proposed in Washington. Of greatest importance were those bills introduced by Senators Kenyon, Kendrick and Hulings. The Kenyon bill was aimed at putting the packers under government supervision and under control of a government employee, at a salary of $10,000 a year. Even though T. Henry Foster felt this bill couldn't pass as it was written, he believed it would bring either even more unfavorable legislation against packers, or else packers themselves would have to reshape their policies to meet public opinion. In Au- gust, Foster addressed the following letter to Senator Kenyon : "I appreciate the fact that your mail must be over-burdened just at present with correspondence relative to your Bill 2202, which proposes to stimulate the production, sale and distribution of live- stock and livestock products and to accomplish other things . . . "To begin with permit me briefly to set out some facts bearing on the history of our business which will, I hope, in some measure, indicate our interest in your bill and the value, possibly, of our com- 174 ments based on our position in the industry and experience in the business. "We began in England about 90 years ago and as long ago as 1855 were slaughtering and curing in Ireland, with headquarters in Liverpool. In 1868 packing operations were moved to Canada and by 1872 the product of four plants was required to supply the busi- ness. These soon proved inadequate and between 1871 and 1874 pack- ing was concentrated in Chicago and continued there until 1888. In the winter of 1877 we commenced operations here in Ottumwa and in 1909 in Sioux Falls, S. D. "We operate some 15 or 16 branches, several of which are housed in property either built or owned by ourselves. The capacity of our packing plants is over one million hogs, cattle and sheep per year and our distributing facilities are necessarily in keeping with this output. Our sales are now running at the rate of about $65,000,000 per annum. "We own and operate a line of refrigerator cars, solely for the purpose of expediting and protecting our shipments from packing plants to branches and to seaboard for export. In the export of bacon to Great Britain we are, and have been for a great many years, very large factors . . . "We are, as you know, known as one of the 'large independents.' There are possibly two or three concerns larger, doing a business in this country exclusive of the Big Five. We have no connection what- ever with any one of the Big Five nor have we ever had, either in re- spect to stockyards, packing plants or enterprises of any kind. We are independent not only in word but in fact and as such we conduct and have conducted our business through all these years. "The ownership of John Morrell & Co. is a family affair and has been since the inception of business and is now held and managed by the third generation made up of comparatively young men who have been schooled in it almost since boyhood and who have made it their lives' work. The business like many others has had its ups and downs, its good years and lean ones, but generally it is known as a success- ful, going concern and possibly its biggest asset is the esteem in which 175 it is held everywhere it is known, and that now covers a considerable portion of the United States, Great Britain and continental coun- tries. ''Wherever our goods are sold they have the reputation of being the best in their respective line, and usually they command a premi- um in price because they cost more to produce. This has not come about by chance — nor by good luck — it is the result of years of painstaking labor, close attention to detail and the desire at all times to deal fairly with employee, customer and competitor. "Naturally, Senator, we confess to taking considerable pride in our products, our organization, our record and standing in the trade, and we view with the utmost apprehension and alarm the possibility that, through the passage of your bill, the control of our business may pass from our hands into those of others, perhaps less competent to efficiently manage it and who may be subject to all the vicissitudes of political influence. "The packers, as a whole, have been accused of many things. Some, if proven, are illegal, others questionable; still others, in my opinion, perfectly proper and defensible. It is not my intention to pass judgment on these nor to comment on them only insofar as they concern John Morrell & Co. "I believe it is generally understood that your bill is predicated on the report of the Federal Trade Commission respecting the pack- ers, and that that report is largely founded on the findings of an in- vestigator, Francis J. Heney. If this is so, then I want to digress just long enough to add my protest to the hundreds that have already been made on the ground that the investigation was unfairly con- ducted in that the packers were not allowed to defend themselves or even to present evidence, and the whole afifair was conducted in a high-handed and un-American manner. This is not hearsay, because I was called as a witness and came in direct contact with Mr. Heney and his methods at the Omaha hearing. "Returning to the matter of the charges against the packers, I find that they specifically refer to five firms well-known as leaders in the industry. The name of John Morrell & Co. is not mentioned — 176 we do not stand accused nor as far as I know are we even under suspicion. "Your bill, as I read it, is regulatory to such an extent that in its application it is absolutely punitive, and further, it would punish the innocent with the guilty and both without a trial . . . "I note your bill proposes to take away from the packers their refrigerator cars and practically pool them for the benefit of the shippers at large. This is a feature of the bill that we are particularly interested in because of our ownership of about 250 cars which have proved to be indispensable to the operation of our business. "About 25 years ago foreseeing that our business was going to be handicapped if we depended on the railroads to supply us we began buying refrigerator cars as our finances permitted. Any other packer in the business has had the same opportunity of providing himself with cars as we have had. If others have not provided themselves with cars and are at a disadvantage on that account, should such a condition militate against those who have made use of their foresight and developed their efficiency? "I am assuming, Senator, that you would not penalize us for the fact of car ownership alone but rather because you feel that as own- ers we enjoy so-called special privileges, denied to those who are not so fortunate as to have private equipment for transporting their shipments. If this is so, then I can only say that those privileges are the reward of foresight and efficiency and that such rewards are offered to everyone and are, therefore, not 'special privileges' at all. You, as Senator, enjoy by right of your position certain privileges not enjoyed by the average person. Are your privileges special and are they to be condemned? Far from it — they are the reward of your toil, study, perseverance and efficiency. The same rewards were of- fered to thousands of others, but they did not want to pay the price. So it is with those who have cars and those who have none. "If these cars are removed from our control and turned over to the railroads it goes without saying that their efficiency will be im- paired. We have but few, comparatively, and we give each car our individual attention, following its perambulations across the coun- 177 try, seeing to it that it is promptly returned to us; keeping it in such a state of repair that we have been able to extend its usefulness from three to five years over the average of the railroad owned car. This is efficiency, and efficiency. Senator, approaches nearest perfection in the highly specialized institution where the hand of individual ef- fort has full sway. "Commenting further on the car situation let me warn you, Sena- tor, that if the cars are taken away from the small packers and pooled for the benefit of all, the big packers are going to have an advantage over the little fellows because their plants are located chiefly at prin- cipal railroad centers where cars will accumulate; the small packers of? in the country on one, or possibly two, main lines will get only such cars as those lines alone are able to furnish, and we know from experience that at times he will get none at all. If it is your desire to prevent the big packer from getting special privileges by all means leave the cars in the hands of their present owners. Any other course will reduce the efficiency and increase the cost of maintaining them. "Government control and operation of railroads in this country is now being given a trial, but I think I am safe in saying that the great majority of people are ready now to see the lines returned to their owners. Certainly the businessmen of the country do not want government ownership of the railroads, if their vote on the referen- dum recently submitted to them by the Chamber of Commerce of the United States is indicative of their feeling in the matter, as 997o of the membership, representing 670,000 businessmen in this country, voted against it. These same businessmen, I feel, would vote against your proposal to take our cars away because they know that such a scheme would benefit no one, certainly not the small packers like ourselves. "A statement has been made by a gentleman connected with the Federal Trade Commission that the Big Five control the packing industry of the country and that the so-called independents exist at sufferance only. Such a statement is little short of a tacit insult to every other packer, large and small, in the country. It implies that any success they have had in business is not the reward of their own 178 effort but rather the result of a condition which has existed at the sufferance of a few competitors. There are weaklings in every in- dustry always ready to charge the other fellow with their inability to swim upstream. And so, as with everything else, it becomes a mat- ter of the survival of the fittest. That is one of nature's inexorable laws — • you cannot legislate men out of its path. "Fundamentally I think your bill is wrong because it will sweep away from business the incentive to excel, penalize efficiency, and worst of all leave as a legacy to the next generation a condition that will be as odious as it is dangerous . . . "Your bill, I note, proposes to stimulate the production, sale and distribution of livestock and livestock products. Just exactly how this result is to be accomplished we have not been informed. Will production of raw materials be encouraged by restricting and ham- pering their manufacture? Can you visualize a licensed and gov- ernment controlled packing industry slaughtering more animals, paying higher prices for them, reclaiming more waste and operating more efficiently than the privately owned institutions of today? If not, then the stimulating effects of your bill will be negligible from the day of its enactment, and we will continue as a Nation to suffer from under-production, and it is under-production, coupled with over-consumption, that is responsible for the conditions that your bill seeks to remedy. "As I see it. Senator, your bill will neither bring about increased production nor reduce the cost of food. Already the livestock pro- ducers throughout the country are voicing their disapproval in no uncertain terms; and businessmen everywhere, judging from reports reaching us, are opposed to it because they see the needlessness of it and the danger it contains not only to big business but to every line of commercial activity in the country. "To sum up, our chief objections to your Bill 2202 are: "ist. It is unfair because discriminatory. "2nd. It is autocratic because it places the control of an entire industry in the hands of one man. "3rd. It is needless because it will not remedy the conditions it is 179 aimed at and provides no means for reducing costs to the consumer. "4th. It opens the doors to government ownership of every in- dustry in the United States and commits us as a Nation to a social- istic program which must eventually destroy all individual effort." As this letter indicates, Foster was primarily concerned with the fact that the bill proposed taking away refrigerator cars, privately owned by packers. As he pointed out this would have seriously ham- pered the company's operations. At the time this letter was written the company had on order an additional 100 refrigerator cars which were necessary to handle the increased shipping needs of the two plants. Sioux Falls had never been adequately serviced as far as com- pany-owned refrigerator cars were concerned. That plant had to de- pend on railroads to supply the cars necessary for shipping product. It was not a satisfactory arrangement. This new order was to handle the needs of the Sioux Falls plant in part. The Kenyon bill in the form objected to by Foster did not pass, although many of its provisions, its better provisions, became parts of other bills and in time became the law of the land. Both the American and English organizations lost the guiding hand of their chief executive during this period. In America, John H. Morrell, president of John Morrell & Co., passed away on De- cember 4, 1921, and in England, Alfred Morrell, chairman of John Morrell & Co., Ltd., died suddenly in a London hotel during the night of December 9, 1924. John H. Morrell had been president of the American business since the death of Thomas D. Foster in 191 5. Prior to that time he had been associated with Foster in the management of the American interests since 1888. He came to America in 1883 with his father, George Morrell, then chairman of the company. George Morrell spent five years in America as manager of the Chicago business. When he returned to England in 1888, John H. Morrell came out to Ottumwa. Five years in the Chicago office had given him the ex- perience needed to take over his new duties in Ottumwa. He was forced to retire from active work with the company in MANAGER, SIOUX FALLS PLANT, 1909-1912 PRESIDENT, JOHN MORRELL & CO., 1921-1944 CHAIRMAN OF THE BOARD, JOHN MORRELL & CO., 1944- 1912 because of his health. Even so he managed to spend a part of many days at the office. When not able to be at the office, Morrell kept abreast of the business by working at home. He was called to take over the presidency of the firm in 1915 after the death of Thomas D. Foster. Alfred Morrell was a brother of John H. Morrell and had headed the English business since the death of Thomas D. Foster in 1915, at which time the English and American businesses became separate but parallel organizations with interlocking directorates. He, too, came to America in 1883 with his father. Rather than stay- ing in Chicago, however, he went out to Ottumwa and worked as a clerk in the ofBce there. He returned to England with his father in 1888 and for the rest of his life was connected with the English busi- ness. He had sufifered from heart trouble for some time but had ob- served rigidly his physician's orders. However, while in London on a short business trip, he sufifered a heart attack and died on Decem- ber 9, 1924. Alfred Morrell was one of the most respected members of the English provision trade and in 1923 was elected president of the Liverpool Provision Exchange. During the war he rendered service of untold value to the English government as a member of the Min- istry of Food. For his services he was decorated by King George V and created a Commander of the British Empire. Another respected member of the Ottumwa executive force. Ma- jor Thomas P. Spilman, passed to his reward on July 16, 1922. Major Spilman was one of that group of Ottumwans who welcomed Thom- as D. Foster to Ottumwa when he came looking for a site to locate in the middlewest. The men became great friends and in time Major Spilman came with the company. He was employed in 1880 as stock buyer, tlis duties were light those first few years because the needs of the newly established plant were not heavy. However, even though his duties were light. Major Spilman was on the job at all times making valuable contacts for the company. He continued with the Ottumwa plant until 19 10 when he was 182 sent to Sioux Falls to head stock buying operations there. He re- turned to Ottumwa in 191 1 and again took over the direction of all company buying of livestock. In 1915 he was called on to take over supervision of the Ottumwa Serum Company. He continued as man- ager until his death. On the whole, changes in the various companies which went to make up John Morrell & Co. were primarily confined to changes in the membership of their boards during these years. However, the deaths of John H. Morrell and Alfred Morrell brought major changes in one or all of the companies, as far as their management was concerned. John Morrell & Co., the Maine corporation, continued with the board and officers as listed previously. A major change occurred at the annual meeting of the stockholders on June 2, 1920, when the constitution was changed to increase the number of directors from three to four. George M. Foster then was elected to the board. Following the death of John H. Morrell, Morgan T. McClel- land was elected to the board succeeding him on February 21, 1922. At the same time T. Henry Foster was elected president, W. H. T. Foster, vice president, George M. Foster, secretary, and McClelland, treasurer. The membership of the board was again increased, from four to five, at the annual meeting on June 3, 1926, and J. M. Foster became the new director. John Morrell & Co., the Delaware corporation, saw almost the same changes in the membership of its board and officers. Number of directors was increased from three to four at the annual meeting of the stockholders on June 3, 1920, and G. M. Foster was elected to the board. At a meeting of the board on February 21, 1922, T. Henry Foster was elected president succeeding the late John H. Morrell. McClelland, who had succeeded Morrell on the board, was elected secretary-treasurer, while W. H. T. Foster was moved to the position of vice president of the corporation. At a later meeting of the board George M. Foster was elected secretary while McClelland continued the duties of treasurer. 183 The Kittery Realty Company, at its annual meeting on June 3, 1920, had its board increased from three to four members, and G. M. Foster was elected to fill the vacancy. McClelland was named to this board too, following the death of John H. Morrell. At a reg- ular board meeting held February 21, 1922, T. Henry Foster was elected president, W. H. T. Foster, vice president, G. M. Foster, secretary, and McClelland, treasurer. At the annual meeting of the stockholders held June 3, 1926, the constitution was again changed and the membership of the board raised from four to five. J. M. Foster was elected to fill the vacancy thus created. John Morrell & Co., Ltd., Liverpool, lost its chairman, Alfred Morrell, by death on December 9, 1924. Succeeding him as chair- man was George F. Morrell. John H. Morrell, an American director of the company died on December 4, 1921. Neither his place on the board nor that of Alfred Morrell were filled until the directors met on June 29, 1925, when George M. Foster and A. Claude Morrell succeeded to the vacancies. The only board meeting of importance for the Yorkshire Cream- ery Company occurred on February 21, 1922, when T. Henry Foster was elected president, succeeding the late John H. Morrell. W. H. T. Foster was elected vice president, M. T. McClelland became treas- urer, and R. N. Morrell continued as secretary. McClelland was elected to the board, replacing John H. Morrell, at this same meet- ing. However, this was a period of expansion for the company's creamery business. It had grown so much that new quarters became necessary at Ottumwa and a new building was constructed to house the creamery business alone. These new quarters were occupied early in 1920. Considerable agitation was put forth for a creamery establish- ment at Sioux Falls; however, the management there believed such a business should be operated by John Morrell & Co. It was felt that the name, "Yorkshire," would not have the importance in the Sioux Falls area that it had at Ottumwa. The agitation bore fruit finally and the Morrell Creamery, a department of John Morrell & Co., 184 started operations on August 29, 1929. E. F. Paxson was placed in charge of the creamery business at Sioux Falls with R. N. Van Slyke, an experienced buttermaker, as foreman of the department. In England, Bannatyne & Co., Ltd., came partly under the con- trol of John Morrell & Co. For many years prior to 1923, Hugh Parker Bannatyne had been in the butter and cheese business in Liv- erpool. His business held agencies for factories and shippers in New Zealand, Canada and elsewhere, and he operated as an importer and distributor of butter and cheese. Following the business slump of 1921-22, Bannatyne realized that if his business was to be all he hoped he would have to have larger financial resources. Accordingly a new company, Bannatyne & Co., Ltd., was organized with a capital of £30,000 in £1 shares. The capital was subscribed one-third by John Morrell & Co., Ltd., one-third by W. P. Sinclair & Co., Ltd., and the remaining one-third by Bamford Bros., Ltd. George F. Morrell, a Mr. Crichton and W. A. Gillespie were the first directors, with Bannatyne as managing director. With the backing and financial resources of these three firms there was no difficulty in trading on the scale desired. The Sioux Falls plant's remodeled hog killing floor was put into operation on January 17, 1922. And during the month of January the department celebrated its biggest month's kill since beginning operations in 1909. The month's kill was 56,718 hogs, with the one day record being 2,893 head. Two years later, during the fall and winter killing season, the Sioux Falls plant found itself with facilities inadequate to take care of increased receipts. The number of hogs being received was the largest in the plant's history and for the first time hog buyers were forced to turn truck drivers away, being unable to buy their loads. This condition was speedily rectified when new equipment was put into operation and the hog dressing floor enlarged. This enlargement allowed the plant to handle up to 5,000 hogs a day. The following year South Dakota was hit by a severe drought which brought about a total failure of the corn crop. This fact neces- 185 sarily brought a decrease in hog receipts at Sioux Falls. However, the hog killing department was well set up now and was able to pro- ceed with the work with either heavy or light receipts. At Ottumwa, plant facilities were adequate to handle hog receipts for most of the period. The main trouble seems to have been the relatively unstable prices of hogs, even though the average price was considerably higher than that ever paid before. Prices fluctuated be- tween a high average of $22.09 on July 24, 1919, to the low average of $8.52 on February 21, 1921. The low price recorded here was al- most as ruinous to the packers as it was to livestock producers. In a period of six months, from September, 1920, to March, 1921, live- stock and finished product decreased 50% in price. However, three years later T. Henry Foster could record in his semi-annual report, "During this three months' period slaughterings have been greater than at any other time in the company's history." Probably one of the biggest, and undoubtedly the most compli- cated, project ever undertaken by company officials was the remodel- ing of the Ottumwa hog killing building while the department was still in operation. This project meant the replacement of the old building, a six story structure, which had been built some 40 years before. It was a structure of brick walls and timber floors and was to be replaced by a building of concrete and steel. It was not possible to discontinue hog killing operations for the period necessary for the reconstruction. The company's architects, Henschien & McLaren, made a careful study of the problem and decided it could be done. And it was! While the men worked at their appointed tasks in the old building, a new structure went up alongside them, within the framework of the old building. Steel girders replaced wooden beams and concrete re- placed brick walls as the building rose floor by floor. Finally the transformation was complete. Ottumwa had a new hog killing build- ing, a building in which record-breaking kills were made while it was going up. George M. Foster, who had returned to Ottumwa in 1922, handled the construction details of the job for the company. As the period ended, T. Henry Foster recorded in his semi-annual 186 report for the period ended March 31, 1926, "Everything considered, this has been the most unsatisfactory winter killing season we have had in several years. Prices on hogs have ruled entirely too high to enable the packer to make a manufacturing profit and our tests through the period indicated that practically every hog slaughtered after the middle of November made a loss. Choice, light hogs have been very scarce and high and have lost more money than the heavy lard type which, even at the big discount in price, have failed to re- turn the packer his money." And along with that discouraging report the United States De- partment of Agriculture reported that hog production in the United States had reached the lowest point in 10 years. While the company had its problems with livestock receipts, it continued to move forward in its building program and provisions for equipping the plant with the most recent and up-to-date of pack- ing house equipment. New buildings were erected and old ones reno- vated to suit present day conditions. During 1923 a new smokehouse and sausage building was completed and occupied at Ottumwa on December 23. At Sioux Falls a new beef house was built and put into operation early in 1925, materially increasing the beef killing figures for that plant. Sioux Falls also received a new cold storage building, while Ottumwa completed a new warehouse and a canning building. All of these buildings were equipped with the latest in packing house equipment. The Ottumwa general offices were moved into a new, modern office building in October of 1924. This building had been needed for a long time because of the crowded conditions and the great expansion in the personnel of the office force. During the summer of 191 8 it was decided that a produce depart- ment should be established at Ottumwa to handle the sale of butter, eggs, cheese and poultry. The recommendation was made by M. T. McClelland, sales manager. These products were being handled more extensively by the company and it was his thought that a sepa- rate department could better handle their sale and distribution. His recommendation was accepted and the department was established with C. C. Stentz as manager. The department continued under his 187 supervision until 1920 when Robert M. Owthwaite was brought to Ottumwa to take charge. Under Owthwaite's supervision the depart- ment began to take rapid strides forward and sales of produce showed a good advance. Owthwaite, a great grandson of the founder of the company, had entered the company's employ in 191 2 at the Philadelphia branch. Born and raised in Bradford, England, the original home of the com- pany, he had come to America after completing his college work. His first job at Philadelphia was general in nature. Later he was advanced to sales work. Owthwaite served with the Canadian Tank Corps during the war and following his honorable discharge re- turned to Philadelphia. He came to Ottumwa after serving as a sales- man at Utica, N. Y., at the Syracuse branch and again with the Phila- delphia branch. Two years later Owthwaite returned to the Philadelphia branch as manager and was succeeded by Thomas W. Bailey as manager of the produce department. Bailey began with the Ottumwa organiza- tion in 1918 and prior to taking over the produce department had been connected with the sales end of the business. It was during this period that the company had its first serious labor trouble. Both Ottumwa and Sioux Falls plants had been or- ganized under American Federation of Labor charters. John Mor- rell & Co. took no active step to stop or hinder union activities in their plants. Neither did it take any step toward granting recogni- tion to the union. The matter of recognition came to a head at Sioux Falls in May of 191 8 when 600 employees there struck for three days demanding recognition of their union. This strike ended without the company granting the employees' demands. Again in January of 1920 the Sioux Falls plant was closed for eight days and again the desired recognition was not secured. For a year conditions remained rather stable at both plants although there was an apparent unrest. On February 21, 1921, a notice was posted containing new work- ing conditions. These new conditions did not include any reduction in wages or any increase in the eight hour day. They were to become efifective March 2. At Ottumwa about 1,000 employees went out on strike on March 3 without making any demands. They returned two days later after agreeing to abide by the rules as posted. About 600 employees at Sioux Falls went out on strike on March 2. After a tie- up of about five days the plant was able to begin operations on a mod- erate scale. The strike continued at Sioux Falls for some three weeks and then was called off after the company agreed to take back such men as could be used. What has become the worst strike in Morrell history came during the last three months of 1921 at the Ottumwa plant when about 1,000 employees walked out on October 19. This action had been brewing for some time. In April the company had reduced wages by eight cents an hour without any opposition from employees. In the months that followed, however, there was considerable unrest. Matters came to a head with the strike beginning on October 19. The company continued to operate every day and soon the work- ing force had been built up to 500 employees. Continual operation of the plant and the gradual return of employees to work finally forced the strikers into lawlessness and violence. The condition in this respect became so serious that the Governor of Iowa sent troops to Ottumwa on November 16. This action was taken when very little effort was taken by city police to maintain order. On November 29, the state troops were withdrawn inasmuch as the company had been able to increase its working force to over 1,200 employees. With this force the plant was running at almost full ca- pacity. Finally on Christmas eve, union officials called off the strike. It had been disastrous to employees in lost pay and hard feelings en- gendered. It had been costly to the company because of curtailed production at Ottumwa. The loss of production would probably have been greater if the Sioux Falls plant had not been able to absorb and process some of the regular livestock receipts of the Ottumwa plant. Sioux Falls operations increased materially during the period and that plant was able to handle much of the business which Ottumwa could not. 189 After the strike quite a number of the strikers were rehired but many were never taken back. The local A. F. of L. union at Ottum- wa disbanded after the strike. Branch house expansion and improvements were prominent in the picture for the Ottumwa organization. A new building was com- pleted and occupied at Philadelphia early in 1917. George A. Casey was manager when the move to the new building was made. He con- tinued in that capacity until 1922, when R. M. Owthwaite was trans- ferred from the Ottumwa office to head the Philadelphia business. For some years the Memphis premises had given trouble because of inadequate space and facilities. Decision was finally made to erect a new building there. It was occupied in August of 1918. For many years the company had been active on the Los Angeles, Calif., market. Business had been handled from the Ottumwa plant by mail with direct shipments going to dealers in the area. At other times a salesman had worked the territory. From actual experience it was known that Los Angeles offered a splendid outlet for Morrell products. It was decided, therefore, that a branch house organization should be set up. Early in 192 1 an arrangement was entered into with Willits and Green. This arrangement provided that John Morrell & Co. would equip the Willits and Green premises with smokehouses, ice machine, cooler, ham boiling apparatus as well as other neces- sary packing house equipment. In return Willits and Green would pay back to the company the expense of equipping the plant from their profits. Jesse Skinner was sent from the Ottumwa office to han- dle the office end of the business. However, the Los Angeles arrange- ment did not prove workable and was concluded about a year later when the company bought out the Willits and Green interests. At this time James F. Kerr was named manager. Kerr had been a Mor- rell employee since 1 910 when he went to work in the Ottumwa office. Most of his service had been in the branch house department. He had served two years as chief clerk at Memphis, two years in a simi- lar capacity at Philadelphia, two years at Syracuse as manager of the branch there, and at the time of his transfer to Los Angeles had completed five years as assistant manager of the Boston branch. Busi- 190 ness in this southern California city proved to be so good it soon be- came evident that the company's present quarters would be inade- quate for the business. Plans to build a new branch in Los Angeles were made in 1923 and construction started that same year. The new quarters were occupied in February of 1924. The Sioux Falls plant opened only one branch although consider- able expansion in sales territories is recorded. A branch at Lincoln, Nebr., was opened on April i, 1918, with W. C. Manes as manager. Manes had formerly worked Lincoln as a sales territory. He was suc- ceeded by E. B. Hutchinson in August of 1919. Sales territories were opened at Cleveland, Ohio; Pittsburgh, Pa.; Louisville, Ky. ; To- ledo, Ohio; and Chicago, 111. Long a serious problem to John Morrell & Co., as well as other meat packing establishments in the United States, was the loss sus- tained in carcasses condemned or retained by federal inspection due to disease. Not only did these losses affect the packer but they brought losses to the livestock producer as well. Of the diseases suf- fered by meat animals, tuberculosis is highly infectious and most dangerous to humans. It was to be expected that the meat packing industry would take steps to seek a reduction in bovine tuberculosis. Under the leader- ship of the National Live Stock and Meat Board, an educational program was begun seeking support for a project to eradicate this disease throughout the United States. John Morrell & Co. cooperated in this program with every means available. Ultimately the program was supported by packers, livestock exchanges, commission men, and many farm organizations. The biggest impetus was given to the program when packers, among them John Morrell & Co., agreed to pay farmers a premium of 10 cents a hundredweight for hogs from counties which had been declared accredited areas. Such counties were those in which all cattle herds had been tested for tuberculosis and all infected cattle slaughtered. One of the first counties in Iowa to be so accredited was Wapello County of which Ottumwa is the county seat. Iowa was one of the first states in the Union to pass an anti-bovine 191 tuberculosis law. In his message to the Iowa legislature in 1923 rec- ommending passage of the law, Governor Kendall said: "The eradication of bovine tuberculosis is of most vital impor- tance, not only because it is a menace to the livestock industry, but because of the danger of its communication to the human family." A similar anti-bovine tuberculosis law was passed by the South Dakota legislature in 1925. Among those entering into the employment of the company or taking over new duties in a supervisory capacity were: J. M. Foster, who returned to the Ottumwa sales department after service with the navy during the war. He was transferred to Sioux Falls in 1920 and assigned to the order desk. A year later he was transferred to the sales department. Others were: George A. Morrell, son of John H. Morrell, who joined the cashier department following his gradu- ation from Dartmouth College in 1923; A. Claude Morrell, later to become chairman of John Morrell & Co., Ltd., who joined the Liverpool office on October i, 1919, following his discharge from the English army. He is now a senior director of the English company. A junior director, R. H. Roberts, started at Liverpool on October 24, 1918. Then we have N. H. Berens, hog buyer at Sioux Falls; J. H. Deering, salesman at Spokane, Wash.; Clive Bennett, who had been timekeeper and assistant superintendent at Ottumwa and who was named superintendent of the Sioux Falls plant; H. E. Michael, who was transferred from St. Paul to manage the Minneapolis branch and later moved on to Cleveland, Ohio, to open a sales terri- tory there; J. B. Anderson, who succeeded Michael as manager at the St. Paul branch; H. F. Veenker, who became superintendent of the Sioux Falls plant on October i, 1918; J. F. Irvin, who was named manager of the Fargo branch; R. W. Copeland, who opened a sales route at Chillicothe, Mo.; J. L. McNeeley, who succeeded Michael in charge of the Cleveland sales office; W. J. Junion, named manager of the Minneapolis branch; J. C. Schultz, who returned to the em- ploy of the company and was named manager of the Aberdeen branch; J. S. Findley, long in the employ of the Sioux Falls plant, who was placed in charge of a new Personnel department at Sioux 192 Falls; George Willging, who was sent to Pittsburgh, Pa., to open a sales territory there; R. W. Smith, who opened a sales route at Chari- ton, Iowa, that he was to work for the next 26 years before retir- ing; W. M. Osier, who was sent to Des Moines as manager of the branch there and then later returned to the Ottumwa sales depart- ment; he was succeeded at Des Moines by R. S. Risley who had en- tered the company's employ a few years before as a salesman at Hart- ford, Conn.; R. B. Henderson, who was placed in charge of the sales office opened at Pittsburgh ; E. L. Cleary, who joined the Sioux Falls sales force and was assigned to Louisville, Ky., and W. G. Graham who was placed in charge of the recently opened Chicago sales office. There was also B. E. Winger, who was to become master mechanic at Ottumwa on August i, 1924. Winger had worked at the Sioux Falls plant from 1909 to 19 18. When he left to go with another pack- ing concern in 191 8 he was master mechanic at the plant there. Among others were H. W. Bowen, Carl Kramer, M. J. Dunham, Cash Eddy, F. H. Steinbeck, Thomas Stevens, Mary Zimmerman, George Hirst, Joy Peck, William Jones, J. E. Proctor, J. W. Ray- mond, Ernest Richardson, Walter F. Rittman, George W. Roberts, Jessie Allbright, Freda Amundson, Mary Bullock, H. L. Byrum, Grover Caster, John F. Christian, Stephen Cronk, John Fox, Glen Harkins, Norman Hirsch, Walter Peck, Rex Roberts, Ole Ronning, Adolph Swanson, Floyd White, Emil Brix, Rose Carlson, Ralph Claussen, John Doolin, R. J. Klick, Alan Weir, Harry Crawford, Harry Dodds, Zion Piper, C. V. Pool, Roy Adamson, Charles Begh- tol, William Cormack, Olaf Lyng, Clifford Hallberg, Ingwald Peterson, Dempsey Powell, John J. Cannon, Anna M. Warden, Cor- nett Allen, Ralph Dunn, William Hayes, Lars Johnson, Fred Lind- holm, J. W. Varner, Kathleen Willis, and many, many others. In England the following began their service with John Morrell & Co., Ltd.: E. N. Trott, J. M. Downie, D. Williams, E. Crocker, S. A. Sutcliffe, D. A. Davidson, A. Byrne, F. W. Hughes, V. Down- ard, W. E. Anders, J. L. Owen, H. N. Milnes, H. G. Mackenzie, J. Parr, W. W. Worthington, G. W. Wilson, W. H. Norbury and W. D. Paton. 193 It was during this period that many of the steps to benefit the welfare and happiness of Morrell employees were initiated. For many years the company had sponsored a fairly comprehensive ath- letic program, both at Ottumwa and Sioux Falls, covering baseball in the summer and basketball in the winter. But that was about the extent of company participation in employee activities or benefits. The first step in the program was the adoption of the plant coun- cil idea at Sioux Falls on July 14, 1922. The same idea was adopted by Ottumwa employees in the fall of the same year. The council was formed in response to a need for a better method of communication between management and the employees. Such communication had grown more and more difficult as the company increased in size and expanded its operations. The plan as developed for both plants called for each plant to be divided into divisions, the workers in each division electing an- nually one representative to meet monthly with an equal number se- lected by management from the employees. In these monthly meet- ings free discussion was given to all problems concerning working conditions and any other matters thought of importance to the em- ployee representatives. Each council could act upon matters as neces- sary, except those of unusual importance, in which case recommen- dations were referred to the management before disposal of cases could be made. In January of 1924 the company announced a vacation plan for employees showing good work and attendance records. The basic thought of this plan was explained to the employees in a posted notice, one paragraph of which read: "Any hourly or piece work employee who has worked for twelve consecutive months without absenting himself from work for any whole or part day, (unless notified not to report by his foreman) shall be entitled to one week's vacation with pay." The plan went into effect with those employees who had contin- uous service from January i, 1923. Effective date for others was a year from their date of hiring or the last date of absence. A con- siderable number of employees at both Ottumwa and Sioux Falls 194 received vacations that first year, and have in the years that followed. The next year the plan was revised to permit absences of a few hours or days because of injury, sickness, or death in the family. It has been changed and liberalized many times since. On May i, 1924, a life insurance policy was taken out by the com- pany for everyone who had been in the company's employ for one continuous year or more. Under the terms of the policy the families or dependents of the employee would receive death benefits ranging from $500 to $2,000, depending on length of service. Starting with a minimum benefit of $500 for one year's service, the policy increased by yearly jumps of $100 until reaching a maximum benefit of $2,000 for 15 years' service. This insurance was given free to all meeting employment requirements. Coverage was automatic. John Alorrell & Co. was the first of the larger packers to take out such insurance for its employees, and its policy was particularly unusual in having a $2,000 maximum in protection. On June i, 1923, Volume i. Number i of the Plant Council Bul- letin was distributed to Morrell employees at Ottumwa and Sioux Falls as well as the different branches. This paper was started to provide employees with information concerning the activities of the plant councils at Ottumwa and Sioux Falls. As time went along its field gradually was increased to cover information pertinent to the company. Its appearance was not regular and the number of pages depended on news available. The Bulletin was received with enthusi- asm by plant readers and finally brought a decision from the com- pany's management to start a regular monthly publication which would cover the news of the company on a regular basis. The first issue of this new monthly, The Morrell Magazine, ap- peared on July 25, 1924. A. C. Michener, telegraph editor for the Ottumwa Daily Courier, was the first editor. Michener carried on his dual editorial duties for several months before leaving the Cour- ier to join the company's advertising department as assistant manager and editor of The Morrell Magazine. In the first issue. President T. Henry Foster stated the mission of the Magazine in part in these words : 195 ^f?k