ru m ill m ill m ill rn ill III ill rnill op I fro[ u11 0[ 91IW rn ill illill fjq III ill m ill I 1 JI 19.nd m ill AINnOJ m3W010Hl"?1V9 rn ill m m m [l] po:}:Uo Y'OlId m ill ill ill ill rn m 1I3:NNOa A1IN3:H WVlllIM dO AHdV1IDOIHOlnV 3:Hl _r\ THE AUTOBIOGRAPHY OF WILLIAM HENRY 1864-1953 SAN FRANCISCO 1973 CONTENTS Preface page vii Acknowledgments ix Introduction by Dora Donner Ide xi Foreword by WHD xv The Autobiography of William Henry Donner 1 Addenda 129 PHOTOGRAPHS WHD in his seventies Frontispiece Delta Tau Delta Fraternity, Phi Chapter, Hanover College. Page 9 October 11, 1882. WHD first left, back row. Bicycle type used by WHD and associates in the races of 188S 2 S (The Stanford University Museum of Art) WHD in his thirties 4S Mr. and Mrs Frederick Donner with their grandchild, 7S WilUam Henry Donner, Jr. WHD in his fifties 99 The Donner home in Columbus, Indiana I 19 The President's Residence at Hanover College. 139 One of five buildings constructed with the aid of Donner funds c It is a great pleasure and privilege to have this limited edition of the autobiography written by my father, William Henry Donner, privately printed. Several months after he passed away, his attorney gave galley proofs of his autobiography to a few people. During the nineteen thirties at the urging of his family and friends, father had commenced the task of writing his memoirs, and he had continued to work on them from time to time for approximately sixteen years. They span an era of great growth and industrialization in this country. His autobiography was to have been printed shortly after his death, and I had expected to have this done, but life with its pressures delays many intended projects. On June I I, 1972, an article appeared in the San Francisco Examiner and Chronicle, entitled 'Fine Printers in the City,' by Elaine Ratner. It seemed to be the perfect place and an opportune time to undertake this project. , ~ ~ ACKNOWLEDGMENTS I mentioned the project of father's autobiography to Mr. Stephen Gale Herrick, the former president of the Herrick Iron Works, who is a bibliophile & a bookbinder. He was acquainted with the various craftsmen referred to in 'Fine Printers in the City' by Elaine Ratner, & kindly showed me examples of their books from his collection. As he evinced such an interest in this project, I mentioned that my father had been in the steel business also, and gave him the autobiography to read. He was most enthusiastic about it, and lowe more than I can express to him for his kindness and for his highly esteemed assistance in helping me to plan and edit this book. Several photostats ofnewspaper clippings regarding father's decease were sent to me by the late Robert N. Donner. I should like to thank Mrs. Robert H. Cromwell, Mrs. Reed Gerard and Miss Elizabeth Jorzick for their invaluable photographs and helpful information. I am beholden to Mr. C. Kenneth Baxter, father's friend & trusted business adVisor, who gave me valued aid. My deep appreciation is due to Mrs. Mildred Goodwin Maclachlan, the executive secretary to Mr. Baxter, who gave unstintingly of her time. An overwhelming debt of gratitude is owed to Mrs. Katharine M. Parker and to Dr. T. Grier Miller. I am under great obligation to Dr. John E. Horner, president of Hanover College, who provided important photographs and other pertinent material. I am thankful to Mr. David l. Ison & Mrs. Alma F. Bergmann, for. ~ merly of the Park & Recreation Department, Columbus, Indiana, who showed me relevant pictures and furnished interesting data. ix My sincere gratitude is due to Mr. Lee D. Lagessie, Public Relations Representative, Republic Steel Corporation, Chicago District, for his kindness in providing a photocopy ~ f , 'The Story of the Donner-Hanna Coke Corporation 1917-1956' by Philip S. Savage. Several anecdotes in the Introduction were derived from the late Bob Gordon's Columbus Comment in the Columbus Evening Republican of November 4, 1953, and from the late Laura Long's Horse and Buggy Days in the Columbus Herald of October I, 1965. Warm thanks are hereby extended to the Bartholomew County Historical Society, Columbus, Indiana; Mr. Ross G. Crump; Dr. Lorenz Eitner, Director of the Stanford University Museum of Art; Mrs. Betty M. Gale, Senior Administrative Assistant of the Donner Laboratory Business Office, Berkeley; Mr. E. Dixon Heise; Dr. J. R. Nolan, Medical Director of the Southern California Cancer Center, Los Angeles; Dr. Eugene P. Pendergrass; Mr. Guy Preston; Mrs. Irene B. Sheldon; Mr. James G. Shields; Mrs.Clementine!. Tangeman; Mr. NormanF.Wesley, Public Relations Office of the U. S. Steel Corporation, Pittsburgh District; Mr. Darrell Williams; and to the many others who have so kindly helped with this project. Without the secretarial assistance of Miss Claudine Aubelay & later Mrs. Nora McGowan, this book could not have been completed. INTRODUCTION William H. Donner's autobiography relates the life and experiences of a notable man with singular personal courage & individual initiative who was destined to become one of the great steel men of his era. Born in 1864 in Columbus, Indiana, father lived there until he was thirty years of age. He never forgot the happy memories of his youth & when indulging in reminiscences with friends about Columbus one could perhaps discern in him a feeling of nostalgia for those early years. Numerous benefactions made later in life expressed his continuing esteem for that community. His parents, who were happily married for sixty-two years, were influential in their family & community. They were prominent members of the Presbyterian Church, & Frederick Donner taught Sunday School for his entire adult life. His wife Mary was a dainty and petite lady who, although a very active person, had a serene and tranquil nature. A cousin who remembers her long ago wrote me that she was so understanding, infinitely kind and thoughtful that she seemed to the child to be rather like an angel. I understand that while my grandmother was tending her small children she stUI found time to study trigonometry. These varied aspects of her character may explain in part why William H. Donner said of her in his understated way, 'My mother was a remarkable woman.' Father was the first of their five children. Father was educated in the public schools and early in his career xi showed his initiative by delivering the daily newspaper. Perhaps the money he made in this venture went into his first speculation, which was a dismal failure. As the story goes, he conceived the notion of buying up all the available eggs in Columbus and holding them for a price rise. Someone had told him that eggs placed in brine and put away in open casks would keep. So, he invested his savings in eggs and cornered the Columbus market so far as possible. Having stored away the casks in the basement of his home, the young financier sat back to wait for the price of eggs to rise. But instead, the eggs began going up themselvesl and on investigating the popping noises in the basement he found it necessary to hold his nose and run. It took the combined efforts of several people to clean the rotten eggs out of the basement. In 1890, William H. Donner married Adelia May Newsom. They had four children: Robert, Joseph, Mary and Margaret. In 1909, following their separation, father married Dora Browning Rodgers, a widow with two small children, Dorothy & Katherine. Their union produced three children: William, Elizabeth and Dora. I am the last mentioned and the youngest. An industrious & determined individual, father's success in life was due to his own efforts and may be partly attributed to the perseverance, thoroughness, ingenuity & foresight which he applied to every undertaking. He was an altruistic and generous person who provided financial help for many people as well as for his own immediate family. William H. Donner once stated to his friend the Reverend George Pence that looking over his long and successful career, he was most proud of his success in managing his father's milling business. Father's powers of concentration were noteworthy and when interrupted at work his blue eyes would look enquiringly at you over the rimless half lens pince-nez perched on his nose. He was a very spruce person and behind the lapel of his coat he always carried a straight pin which he deftly used to remove items of interest from the newspapers. As the youngest child and therefore still living with my parents after father retired from the steel business in 1929, it was my good fortune to be included in many trips to Europe before I was married in 1940. During our travels, his keen insight and enquiring mind delved into the economic problems of other nations, and being an observant person he also learned a good deal about the lives and customs of the natives. So as to keep abreast with cancer research and therapy, we often visited hospitals and laboratories in various parts of the world. In 1938 father took my mother and me on a particularly memorable voyage which included India, Ceylon, Java, Bali, Siam and Cambodia. His first trip around the world was in 19 I 0 - I I. William H. Donner bought many works of art during his lifetime. Among his finest acquisitions were a Whistler Nocturne and a Winterhalter portrait of Queen Victoria as a young woman. In accordance with his wishes the Winterhalter portrait was given to the National Gallery in Washington in 1954. Mrs. John F. Kennedy found the painting in storage at The Smithsonian and at her request it was hung in the White House during the Kennedy years. Father was a very active person of medium build and his erect, trim figure changed little over the years. A temperate indiVidual, he neither smoked nor drank. He had a relaxed and tranquil attitude toward life and no trouble sleeping, which he attributed to his clear conscience. Outliving many of his stronger friends, he admitted that this might have been due to his wise choice of parents. A qUiet, benevolent and unassuming gentleman with considerable charm, W. H. Donner had a wealth of stories about his experiences which he enjoyed telling. The theater was a preferred diversion. xiii Another favorite form of relaxation was playing bridge in the evening with his family and friends. Upright, sagacious and humane, father had good judgment and a sound sense of values. Although his success in business enabled him to enjoy the luxuries of life, his basic wants remained simple. Dora Donner Ide San Francisco, California October 1973 FOREWORD As an explanation and apology for this conglomeration, I want to say that when my mother was about seventy years old she persuaded me to start my autobiography. She lived to be almost ninety-two and repeatedlyasked me to finish it. But being busy, a poor writer and a good procrastinator, active work on it was postponed. The one person in the world who thinks more of you than you deserve is your mother. It may be cowardly to fasten part of the blame on my youngest child, but to understand Dora is difficult. With her own money she bought a typewriter and insisted on helping me. She asked me questions and made copies of the answers, one of which she gave to me, keeping the other, which she put in her trust box so it would not be lost. I hope that anyone who wades through this incoherent mass will not be too bored, will overlook some of the trivial incidents mentioned and will take into consideration that when most of this data was compiled, I had passed three score years and ten. We absorb the little knowledge that we accumulate from what we see, hear, read & can deduce from experience. Ordinary, unimportant events sometimes make deep impressions that later help us to cope with future problems. If we are observing, it is remarkable how much information we unconsciously absorb that becomes useful. Trivial incidents frequently influence our future lives much more than we realize at the time they happen. I have never kept a diary and have related only a few experiences & observations. In order to refresh my memory as to dates, facts, & figures which were common knowledge in the iron and ~ t e e l industry, I consulted friends, referred to my files & well known books. The statements herein I believe are correct & have been secured from memory or 'derived from sources considered reliable but not guaranteed.' xv 1I3:NNOa A1IN3:H WVlllIM dO AHdV1IDOIHOlnV 3:Hl Chapter I . MyParents.On May 28, 1836, Frederick Donner, my father, was born in Stuttgart, Germany, where his grandparents and parents had been born and lived their lives. In 1844, when he was eight years old, his mother, who was widowed, decided to come out to Ohio and bring her son with her. She had relatives there. Later she remarried a Mr. Diehl. He was not kind to his stepson. When my father was fourteen years old, he bound himself out as an apprentice to a watchmaker for three years. For his services he was given his room and board plus $25 the first year, $50 the second year and $75 the third year. His mother had expected to help him out while he was putting in his apprenticeship, but she was not permitted to do so, and father had a difficult time. My mother, Mary jane johnson, was born in Pittsford, New York, on the 23 rd of December, 1836. Her parents were born in Mossley, near Manchester, England. Her father, job johnson, was a blacksmith. He took a trip to America to look conditions over and decided to make his home in the United States. It had been his intention to return to England and marry the girl he was engaged to, but as travel was slow and expensive he wrote her and suggested that she join him in America and be married here, thereby saving time and money, which she did. My parents lived simply in Columbus, Indiana, compared with many families there today. Candles were used and some coal oil lamps were quite good. We had a music box and an organ. Of course, in later years, gas, electric lights, etc., followed. Chapter 2. Life Begins Me.On May 2 I, 1864, at one o'clock in the morning, I arrived in ~ o l u m b u s , Indiana, about two weeks earlier than I had been expected; I weighed 7 ~ pounds. As the hospital nearest to Columbus was situated in Indianapolis, 4 I miles distant, with few trains operating between these points and the only other means of traveling being by horse and buggy, babies were usually born at home. I My parent's home, a brick dwelling at the corner of Franklin and Eighth Streets, where I was born, remains but has been remodeled several times. It was a comfortable house, and I slept constantly unless disturbed by hunger or colic pains. The room mother and I occupied was pleasant. It had a sheet-iron stove for burning wood. I was provided with plenty of clothes and covers. The stove was seldom used except when I was bathed, which I am told occurred too often to please me, and I protested as vigorously as I could. Even after I was a big boy, it seemed to me that mother insisted I wash my face and hands much more frequently than was necessary. During the first months of my life, I was given the food nature provides for babies and later cow's milk was added. The milk was strained but not pasturized, homogenized nor certified. My Aunt Minnie told me that before and after I was a year old, I would put anything I could into my month, including my toes. I probably needed more vitamins, but they had not been discovered then and could not be purchased. Having selected long-lived parents probably helped me to survive. Father and mother said I was a beautiful baby and a nice little boy; they never exaggerated and were truthful. Is it not remarkable that I outgrew these prominent traits? Chapter 3. My Family. I was the second child born to my parents in a family of eight. They had lost a baby girl, Ella, a victim of scarlet fever while they were living in Hope, Bartholomew County, Indiana, before they moved to Columbus. Chapter 4. Early Memories. One of my earliest recollections is my mother advising when I did not understand anything to ask questions as that was the way I would learn, and when I heard new words, to repeat them so that I would remember them. Needless to say, I asked her many questions which she tried very hard to explain in such a way that I would understand. She was always patient with me. When I was five years old, I was playing in the back yard and saw a teamster trying to drive a pair of mules over a pile of sand. One mule refused to go. After several trials, the driver gotangry and beat the mule many times with a black-snake whip and said, 'You G-- d--- s-- of a b----.' And the mule obeyed. I repeated these magic words continually so that I would remember them. On entering the house, I saw mama getting ready to bathe the baby and asked, 'What are you going to do?' She replied, 'Bathe little sister.' I tried my new words saying, 'You G-- d--- s-of a b----.' Her look of astonishment told me that I had said something! She laid the baby on the bed and asked, 'Where did you hear those terriblewords?' I replied, 'In the alley.' Mama then said, 'Never repeat those words. That is swearing.' My Aunt Minnie who had been present during the conversation almost laughed and left the room, and mama soon joined her. Aunt Minnie told mama that she did not think that I could remember so many new words. (She did not know that mama had taught me to repeat words so that I could remember and use them.) They did not realize that I could hear them talking. Their laughing made me think that I had done nothing very bad. During the next few days', I looked through the fence many times and saw the teamster & his mules, but I was very much disappointed that the mules obeyed. I wanted the excitement repeated. Even now, when I hear that expression, I recall how parrotlike I repeated exactly what I heard. Mother had a friend who had but little money. She raised chickens and sold them, as well as eggs, to help pay their expenses: One day mother needed two dozen eggs & had me buy them from her friend. The price of eggs was twenty cents a dozen. She gave me forty cents to pay for them, suggested that I put the money in a pail so I would not lose it, and cautioned me to be careful not to fall and break the eggs. She crossed the street with me saying, 'When you come back I will meet you here, and we will go home together.' When she met me and saw 3 the eggs she said, 'These are bantam eggsl' I replied, 'Yes, she carefully picked them for me because bantam eggs are sweeter than other eggs.' Mama said, 'I am surprised she told you such nonsense. Bantam eggs are not sweeter than other eggs. Sugar is not used in eggs; some persons put in salt or pepper or both. Small eggs contain a less amount of food than large ones and for that reason are not worth as much. She cheated my little boy. I will have nothing to do with a woman who cheats a child.' I then asked, 'Mama, what does cheating mean?' She replied, 'If three or four years from now a man tries to sell your little sister a small piece of candy which he breaks off a big piece, and tells her that it is sweeter than the big piece, what would you do?' 'I don't know,' I said, 'but I think I would like to hit him, because he would be trying to cheat my sister.' Mama said, 'I am glad you understand now what cheating is.' I remember mother telling me that I vyas the only chUd she had who thought out loud, and my thoughts were not always complimentary. I asked her what complimentary meant. She answered, 'Not flattering nor pleasant,' but said I was always honest. I have always enjoyed the circus which was an annual, well-advertised event in Columbus, Indiana, when I was a child. Father took me when I was quite young, as he said, 'to see the animals,' but as we always remained to see the performance, mother laughed & teased him, saying 'His son is only an excuse.' In later years, I took Dora, my youngest child, & when in my eighties, I managed to attend several of the great shows. When a child, I was provided with tickets for the Columbus Lecture Bureau & encouraged to attend. Hotel accommodations were poor in Columbus and important people were frequently invited to private homes. I remember among those we entertained was Paul Duchaillu. His adventures in Africa & talks about the gorilla were most interesting. He wrote a book describing his trip that I thoroughly enjoyed reading. To School, To Work, Back to School and Hanover College. Years I 87 I - I 882. I did not start school as young as most children as I was not strong when a child. I first artended a local private school for about two years, but it was not well managed and my parents decided to send me to the Columbus public high school. I graduated from high school in May 1882. In February 188 I, I had to leave school to assist my father. He had traded Indianapolis real estate for a flour mill in Columbus. Any time he devoted to the mill interfered with his regular business and worried him. I never knew the amount of his investment and doubt if he did. The building was of wood construction and its rate of fire insurance was 4 percent. He operated the mill under a partnership arrangement so that he was equally responsible fQr any gains or losses. The mill made a little profit the previous year, but my father found his partner was a peculiar old gentleman and exceedingly careless in financial matters; instead of depositing their money in a bank, he kept it in the pock'ets of his trousers. Father believed his intentions were honest, but his methods were exceedingly crude and he had but few records. The old miller was an elder in the Presbyterian Church, as was my father. His daughter was my Sunday school teacher, a very fine person, as were her father and mother. Becoming dissatisfied, father asked the mIller to buy or rent the mill. He refused and stated he would not rent the mill at any price because it was not located on a railroad. Father replied, 'If you do not have enough confidence in the mill to offer any rent for it, I will not continue our partnershIp beyond the last of February, 188 I.' He had me at the mill the last week of February as he would soon have it on his hands. On March I, 188 I, I was selected to temporarily manage the mill. !; It was a small one but my job was heavy for a boy my age-not quite seventeen. The new miller father had engaged was a splendid judge of wheat. He helped me as much as he could, but had no business experience. Buying the wheat and com, selling the flour, meal and feed, collecting accounts and looking after the books, kept me busy. I made numerous mistakes but worked diligently to learn the business. In July, my mother's brother, Joseph Johnson, a farmer, came from Michigan to take over the work in the mill so that I could return to school. He was about forty-five years of age, a fine man, but had no experience in the milling business. Not knowing many of the customers made him reluctant to solicit orders & collect accounts as I had done, so he had the teamster, who delivered flour to grocers, solicit orders and make collections as he was in their vicinity frequently. This was a good idea. He was paid by the week, had plenty of time and liked to solicit orders, make collections, etc. Until school started in September I continued at the mill but whenever there was an opportunity I worked with the city or county engineers, for which I received one dollar per day. On Saturdays & on evenings during the week, I collected accounts and solicited orders as my uncle requested. I rejoined my class in the Columbus High School. Having been away almost three months, I was behind in my studies and kept very busy. From September 188 I to May 1882, I had to work diligently to catch up with my class. Professor A. H. Graham was most kind in tutoring me during that period. In 188 I and I 882 the Columbus High School had but one teacher in language who taught only Latin, so I could not take German. I had one year of German in the private school I attended, and I am sure I would have passed in that subject if it had been taught. The school was at fault in not having a teacher, & because of this I was allowed to graduate without credit in a modern language in May 1882. In September 1882, when I entered Hanover College, I had to be examined in everything or enter college as a senior prep because I was not qualified in German or Latin. I chose to be examined in all subjects. When I was being examined in mathematics, Professor Morse inquired what geometry I studied. I replied, 'Davies,' which pleased him. He asked me to go to the blackboard and demonstrate theorem number twelve. I replied, 'I do not remember theorems by number, but if you will read it, I will demonstrate it.' Much to my surprise, he read a theorem that was new to me. I hesitated and asked him to please read it again, which he did. I repl1ed, 'That theorem is not in my book.' He smiled and acted like the theorem was in the book and I could not solve it. I stated that if he would give me a few minutes I thought I could demonstrate it. He said, 'All right, take your own time & raise your hand when ready,' but he looked so skeptical as to my ability to succeed that I was determined to solve it. After struggl1ng a long time, I raised my hand. He told me to go to the blackboard & proceed. After I finished, he smiled pleasantly & said, 'Your demonstration is very awkward, but correct. You certainly never found that solution in any book. Let me see your geometry.' I went downstairs &secured it. After examining it, he said, 'It is an elementary book written by Davies, the author of Davies-Legendere, which we use.' He then gave me another theorem from Davies-Legendere which he knew was not in my book. I solved it in a few minutes. This pleased him. He remarked, 'Your solution is an improvement over the last one but it is not the one in Davies-Legendere. What arithmetic and algebra did you study?' After I answered he said, 'You are a freshman in mathematics without any conditions.' One of the seniors who was in the room ! said to me afterwards, 'You are solid with Professor Morse through college unless you commit murder.' 7 I passed all the other examinations and was eligible as a freshman, with the exception of Latin, in which I was a senior prep. I intended to be an engineer, and it was only for this reason that I decided to change to Lehigh University or Boston Tech. Dr. Fisher, president of Hanover College, was not pleased with my decision, but when I explained my reason to Professor Morse, he was very sympathetic & said, 'I am sorry to see you leave Hanover, but I understand your reason.' I was very fond of Hanover; it was beautifully situated above the Ohio River. Much to my surprise, Father wrote me in December and asked me to go home and take charge of the flour mill as my Uncle Joe was not well. He stated, however, that the next year I could go to Lehigh or Boston Tech, whichever I preferred. Chapter I 2-1 Shortly after I returned to Columbus, I learned that the mill had been losing money. My uncle was sick about the situation, considered the mill out of date and an impossible proposition. I thought that with some improvements & careful management, it could be made to pay. The mill had five employees-the miller, engineer, teamster, millhand and myself. I employed an office girl immediately. Occasionally we had an extra laborer. The coal was hauled from the railroad by contract. To manage the mill, I studied. every machine, its operation and adjustments. In a short time I was able to relieve the miller during his lunch hour. The grinding of wheat with buhrs or stones had almost disappeared because the flour manufactured by the roller process was superior and made white bread. Our competitor had installed rolls more than two years previously and had practically all the business in Columbus. We could not compete. The mill must be improved or closed down permanently. The miller advised father that a combination stone and roller system would make flour just as white as that manufactured by the full roller process. To get information on the subject, I called on Mr. John A. Thompson of Edinburg, a banker, who owned an up-to-date mill. He was very kind and allowed me to stay in his mill several days to study the roller process and gave me good advice. I told father the miller was mistaken. I knew that Mr. Thompson had first tried that system, but abandoned it as a mistake and installed the full roller process. Father, however, adopted the miller's plan because it would cost about half as much as the full roller process, but he decided that I should purchase the machinery. I found that the miller had been gUided almost entirely by the machinery salesman and he did not have me meet him. When the miller was busy, I saw the salesman and insisted on specifications of the machinery proposed and the flow of the mill. With that information, I secured a competitive bid from Nordyke and Marmon Company, Indianapolis. Judging from the prices submitted by the miller & those I secured, there must have been a commission of at least $ 1,000. Father was delighted. A large part of the machinery I purchased was the same and part of it was superior. Soon after the mill was started, it was evident that there was no improvement in the flour. Father saw that he had made a serious mistake; six month's time and about $2,000 in money had been wasted even if he used the machinery purchased, which had cost about $ 3,000. The millwright work was a total loss. Father recognized that he must make further improvements or close the mill. If he followed the latter course he would incur an enormous loss, as the mill and eqUipment would be unsalable. He therefore authorized me to buy the machinery necessary to make the mill a success, stating, 'I will give you for your services your board and a third of the profits from the mill.' This offer stimulated me. I was of the opinion that the mill should make $ 3,000 or I I $4,000 per year, notwithstanding that it had been losing money over the last two years. I secured prices on the additional machinery required from E. PAllis and Company, Milwaukee, and Nordyke and Marmon Company, and placed the order with the latter firm. Their salesman represented that the installation of machinery including millwright work would cost $ 8,000 and for another $ I ,000 the capacity of the mill could be increased from sixty-five barrels to one hundred barrels, which would mean a saving in the cost of manufacture. I thought that with a better flour we should enlarge the business and spend the $ 1,000 extra. To my surprise, I found that the improvements would cost $I I ,Soo instead of $9,000. About two weeks before the mill was ready to start, father told me that he was in financial trouble as he could borrow no more money from the First National Bank. Last year's improvements in the mill were a failure which hurt his credit. One of the directors of the bank offered to lend him $ S,000 provided he was given a mortgage on the mill, but he must pay the bank's loan of $2,soo. His total liabilities were now $ I I ,SOOt He was rated in Bradstreet from $ 10,000 to $ 20,000. His indebtedness was too large to make a financial statement. The question of money had never occurred to me. I had i:hought, of course, that he could get the money at the bank. Father was troubled and mother was terribly worried. I saw the treasurer of Nordyke and Marmon Company and explained that I was responsible for increasing the capacity of the mill to one hundred barrels, which they had recommended at an extra cost of $ 1,000, but that the total cost of the improvements amounted to $2 ,SOO more than their representative's estimate. Their regular terms were three years, which I had not questioned, but in view of their mistakes, I thought that they should reduce the first year's payments to one-quarter instead of one-third &spread the payments over four years instead of three. The treasurer of the company refused; I saw the president and he granted me substantially my request. Fortunately, father secured a loan of $5,000 from a friend in Cincinnati, which eased money matters with him. I realized that if the mill was not successful, father was in a serious financial position. When the mill was started, the flour proved satisfactory, but naturally was no better than that of our competitor. He had supplied practicallyall the flour in Columbus for three years &retained the bUSiness. I was deeply disappointed in not being able to secure a few of our previous customers. The discouraging feature was that I made no progress. I was sensitive. If a grocer had none of our flour in stock and refused to give me an order, it was with difficulty that I could refrain from tears. On account of higher costs, we could not sell the carload buyers in competition with the merchant mills. I made an effort to sell the smaller buyers in nearby towns. I visited North Vernon weekly. I would take the 4: 30 P.M. train, remain overnight and return to Columbus the next morning. Every two weeks I went to Jeffersonville, New Albany, and Louisville. I would catch the 4:50 A.M. train and return late at night so as to be away from the mill as little as possible. When home, I was at the mill from seven A.M. until six P.M. I never heard of the eighthour day. I went to Indianapolis occaSionally for a day, when I could sell a carload at about cost to a baker. I found that I could get more orders from strangers than in Columbus, which I thought was because when away from home I had more confidence in myself. I learned to do a better job in soliCiting orders on which we had to pay the freight, but met with no success at home. The mill lost about $1,200 in four months. I was quite discouraged &regretted having enlarged the mill. I began to fear that my Uncle Joe was right. I 3 Chapter 7. A Few Experiences as a Young Man. At the age of sixteen years, I expected to become a civil engineer and on Saturdays, holidays and during summer vacation, when opportunity offered, I carried the rod and chain for the city and county engineers. I never became an engineer, but the knowledge gained was useful to me in later years. In those years danCing was not countenanced by most churches, but roller skating was permissible and popular. Mother did not oppose my taking dancing lessons or going to private dances, but objected strongly to my skating with certain girls, although I explained that it was because they were the best skaters that I selected them as partners. My explanation was only partially accepted. I must admit that several of the girls to whom she objected were good looking in addition to being good skaters. She looked much further than I did regarding them and their families as well as associates. She criticized me so fairly and in such a nice way that it was a pleasure to comply with her wishes. ProgreSSive euchre parties at that time were quite popular. It was customary to give prizes, but no one played for money. The game was severely criticized as gambling by some churches. One day I brought home a very nice plush collar & handkerchief box, which mother saw in my room. She suspected where I had got it and questioned me. I asked her if she understood euchre and she admitted that she did not. At that time spelling matches were quite common, and I explained that progreSSive euchre parties were similiar to them, but in euchre it was problems that had to be solved instead of words to be spelled; that the game was played by partners (boy and girl) against two opponents at each table, the partners being changed at every table each game, and the successful partners progreSSing to the next table. I, with the help of my different partners, had been successful in solVing the greatest number of euchre problems and making the most progreSSions. Consequently, as a 'reward of merit,' I had secured the prize to which she referred. I do not recall what the lady received. The Presbyterian Sunday School gave 'rewards of merit' to scholars answering the largest number of Bible questions and that was the reason I referred to the euchre prize as a 'reward of merit.' I explained that it was much more ofa game and fun to compete for a 'reward of merit' at a euchre party than in a Sunday school class. Mother was amused by my explanation. She did not think I had done anything very bad. Cards were never played in our home, neither was there any dancing. Some years later, when I was living in Anderson, Indiana, Robert & Joseph, my sons, visited my parents. I was shocked when they returned to find that they had a pack of cards which their grandmother had bought them because they wanted to play 'Snap Jack' and 'Old Maid.' On my next trip to Columbus, I told mother that she was not nearly as strict as when I was a boy. She was quite surprised, saying that I was mistaken. I stated she had purchased a pack of cards for my boys and permitted them to play cards in her home, a privilege I never had. She was amused, & admitted she had changed her views on many questions. Father was an elder in the Presbyterian Church, or probably both cards and dancing might have been permitted. He was a skilled watchmaker and also in the Jewelry business. He built a photograph gallery in the rear of his building for photographs and tintypes, owning the equipment. The photographer received half the profits. In some twenty years, father had saved enough out of his business to own his stock of merchandise, the building he occupied, the home in which we lived and several thousand dollars worth of real estate. He generally was in debt several thousand dollars. He traded real estate at various times: once for land in Texas and once for an Indianapolis property. Father never had an accurate set of books, but they were not so necessary in that period, as there were no income taxes, and bookkeeping was not so essential as it is today. IS Chapter 8. A Good Investment. Year 1883- One Saturday, while in a barber shop, I bought a warehouse for $225. The building and its improvements probably cost $1,500, but the salvage value was probably not worth more than $150. It was located on land leased from the Pennsylvania Railroad at $75 per year. I heard that the owner of the building had received notice to vacate, but I knew the superintendent of the railroad and thought that I could have the lease extended from year to year, which I succeeded in dOing. The property had been rented at $25 per month for a feed store, but the tenant was retiring from business. I was not aware of this. After learning of it I suggested to Frank Everroad, an employee of the tenant, that he take over the feed business. He laughed and said, 'I would like to, but have no money.' He went on to say that he would gladly work for me at $10 per week-the wages he was receiving. I had done some business with the tenant, had seen Everroad several times, and had formed a favorable impression as to his ability. I proceeded to make several inquiries regarding him and, as all replies were favorable, I asked him to call and see me. He knew quite a lot about the business and again offered to work for me at $loa week. I made him the following proposition: 'Ifyou work for me, I will guarantee that you make at least $10 per week on the following plan - First: You are to run the business in your name. It is not to be known that I have any interest in it. Second: You are to draw $10 per week and pay $25 per month rent, the same as the present tenant. Third: We will divide the profits at the end of the first year. If you do not make more than $10 per week, you are to retain that amount and our agreement ends.' His share of the profits was a little more than $I 8 per week. The business was continued and proved to be satisfactory to both ofus. Chapter 9. The Shipping of Grain. Year 1884. The mill never shipped grain until I became its manager. Grain shippers thought we should buy wheat for milling only & so expressed themselves. Shipping grain became an important part of our business. In buying wheat there was usually a profit of two to three cents per bushel for shippers, but when the millers needed wheat to operate their mills the profit for shippers of wheat disappeared. We bought all the wheat we could buy at market prices and carried ) ,000 bushels, and frequently more, when the market was between 6) and 80 cents per bushel, but if the market was in excess of 90 cents we owned little. This policy was profitable. In corn it was different. A cerealine mill in Columbus shipped an enormous tonnage of prime white corn from Illinois to Columbus. It paid a fancy price for good white corn to encourage local farmers and no yellow corn was raised. One of the leading farmers in the country wanted to sell 8,000 bushels of white corn that had been damaged by several heavy rains blowing into his cribs. He showed me a half-bushel basket that he considered a fair sample. It was discolored by mould. I explained to him that if I could see the corn in his cribs I would have a much better idea of its value and said I would drive out immediately and look at it. I found that part of the corn was badly discolored, but some was not damaged. I knew shelling would greatly improve its appearance as it gets a severe rubbing in going through the sheller. I discovered that rubbing the corn in your hands removed considerable mould. I selected a bushel of the most discolored I could find and ran it through our sheller. It improved its color even more than I had expected. Loading the corn into wagons, shoveling it into cars, transporting it to Indianapolis, unloading it into the elevator, shelling and transporting it again to its destination not only thoroughly mixed it, but gave it a lot of airing and friction and improved its appearance. I concluded that the corn might sell to a good advantage in some markets. When I next saw the farmer, he asked me to make a bid on the 17 entire lot. I saw that he was exceedingly anxious to sell. I stated that the market price on prime corn was forty-three cents per bushel, but explained that there was considerable uncertainty and risk in buying damaged grain-where to ship it, how it would grade and its valuebut that I was wUling to take the risk and buy the 8,000 bushels at twenty-five cents per bushel. He asked me how soon I would accept delivery. He was a man who liked to rush his work. I replied, 'As fast as you can haul it and load it into boxcars.' This pleased him. He answered, 'All right, young man, it's your corn. My teams will start tomorrow morning at 7 o'clock. 'We signed a memorandum accordingly. I telegraphed an Indianapolis elevator and asked what they would charge per bushel for shelling about 8,000 bushels of corn in transit. They quoted a fair rate which I accepted. I shipped the corn to Toledo with a stop-over in Indianapolis at $3.00 per car. The com graded better than I had expected. We realized a profit of fifteen cents per bushel or$I,200. I learned afterwards that two grain shippers refused to buy the grain outright, as they considered the risk too great, hq.t offered to handle it on a commission basis of two cents per bushel. Their timidity made it easy for me to buy. I bought it probably five cents per bushel less than I would have paid if there had been keen competition. When corn is being shelled it receives a rough scouring and a terrific blowing. I had not thought of the fact that good com would not be damaged. This was the only lot of damaged corn I ever had a chance to buy . We purchased prime corn for corn meal, also off-grade wheat for mixing purposes, but it was handled at fairly close prices. The farmer from whom I bought this corn was a large grower of wheat & tookgreat pride in its quality. He had the reputation of being 'as close as the bark on a tree,' but was thoroughly honest. He was satisfied with the transaction, and as the other buyers refused to make a definite offer, it helped me to secure a fair chance in buying his wheat, which was superior in quality to the average and worth more to us for milling purposes. Chapter 10. The Mystery of My Unsuccessful Salesmanship Solved. We had an understanding, a gentleman's agreement, with our competitor in Columbus on the price of flour delivered to the grocers and bakers. I adhered strictly to those prices and supposed he did the same. A friend of my mother, Mrs. Sarah George, carried on after her husband's death the grocery business he had established. She managed the business quite successfully and sold a lot of flour that went to Brown County. One morning she said, 'Will, I want to tell you confidentially why I have not given you more orders. The reason which influenced me probably applies to others. At the end of every month, I am allowed a rebate of ten cents per barrel. Please do not give me away.' I thanked her and said, 'You need have no fear.' She explained, 'I pay all my bills by check after the end of each month.' She showed me a receipted statement for the last month's flour bill and the check with which it had been paid. In making the check she deducted ten cents per barrel rebate from the amount in the statement. I had been stupid and my pride was hurt. Our competitor was old enough to be my father, and he had put things over me like a tent. I decided immediately to fight and to continue that fight until we sold half the flour in Columbus - we were selling only about eight or ten per cent at this time. The profitable business was here. I studied our situation. If we only met the cut of ten cents we would accomplish nothing. The reduction must be as large as we could make it, so that it woUld be evident that F. Donner and Son were making it, and there could be no question about it. I reduced the price in Columbus five cents per 2Sibs in paper sacks (the package in which most of the flour was sold). This was equivalent at that time to 4S cents per I 9 barrel. We reduced the price of flour sold in bulk 25 cents per 100 lbs, which was about the same price as in paper sacks, but as few wooden barrels were used the reduction on account of the cost of the barrel was only 25 cents. We exchanged flour for wheat, the price of which was not affected. We did local advertising which read as follows: Bread is the Staff of Life! Ifyou want a good substantial one and the best bread, use Donner's light loaf flour. After learning that all grocers and bakers who were customers of our competitor had not received the rebate of ten cents per barrel, I informed them that some grocers & bakers did. A few were so wrought up that they were charged more than their competitors that they gave us subsantial orders and continued to favor us. We promised to treat them fairly. In order to call on all the buyers on the same day, I skipped lunch. The mill secured more local orders that day than it had received in any six weeks since F. Donner and Son had started in business. Our business was growing. The reductions applied only to light loaf flour. We had different grades and brands in other markets. I called on our competitor and stated, 'Since you have given private rebates of ten cents per barrel, I give you our new reduced prices. I want you to understand that we intend to sell fifty per cent of the flour sold in Columbus and will continue low prices until we secure that percentage.' I was eVidently the first to notify him. He was so flabbergasted that he hesitated. He then admitted that in a few instances he had given ten cents per barrel for cash only. I replied, 'You are a liar; you have not given that reduction only as a cash discount.' He became pale & angry, saying, 'You are a d--- fool. I will see your father.' I replied, 'Go ahead. If you do not play fair, remember, we will reduce prices further.' When I had finished, I saw father and explained what I had done. He was greatly surprised at the size and number of orders I had secured. At first he thought that I had made prices lower than necessary, but I argued that if we had only met the ten cent rebate and cash discount, we would have received no consideration from the favored buyers & secured few orders; whereas we had taken enough business to make a deep impression on our competitor and all buyers. We had also established a favorable position with the consumers. I explained to father that the reduction of forty-five cents still left us a margin of fifteen to twenty cents per barrel or as much profit as where we paid the freight. He concluded that I was right and said, 'Finish the job you started.' I said, 'It may be necessary to sell flour at low prices and fight until we obtain half the trade, but as we have practically nothing to lose and so much business to gain I shall enjoy continuing this war until we accomplish the results for which we are fighting.' The next morning, the gentleman called on father and asked him to agree on a price twenty-five cents higher per barrel. He tried to convince father that his son did not know what he was dOing. He argued, 'Your prices are now so low that you can make no money.' Father explained that his son received no salary, only a percentage of the profits, and if the mill made no money for a year or two, it would teach the young man a lesson. I thought that father's answer was perfect. We telegraphed and quoted the nearby out-of-town stores and secured a number of orders in that way. I was in such a belligerent mood that fighting for business made me forget my timidity and sensitiveness. Several months later the price of wheat declined and our competitor called on me to say, 'There is no need to reduce the price of flour.' Five cents per bushel was the eqUivalent of about twenty-five cents per barrel .. I hesitated and finally said, 'I was thinking about twenty-five cents per barrel. However, I will give you a trial. Today's prices will be all right if you play fair, but if you do not, look out!' We now had a fair profit and almost half of the local business and our trade was grOWing. 2 I There were several grain buyers who bought and shipped wheat from Columbus and nearby railroad stations. I refused to enter into any understanding with them as to the prices we would pay for the different grades of wheat, because there were too many differences in opinions as to gradings. We would use our ownjudgment as to the price we would pay in Columbus and nearby stations. I did not consider that an arrangement as to the price at nearby railroad stations would be desirable, since many farmers preferred to deliver their wheat to nearby stations because it was a shorter haul than to Columbus. We would be foolish not to pay an extra price for delivery to our mill, because if we bought it in the general market we would pay a higher price, the freight to Columbus, and the cost of hauling it from the railroad to the mill. The mill lost $1,200 the first four months, but had a profit of slightly more than two thousand dollars for the year. I do not think that we ever encountered a more difficult situation. It requires as much work to succeed in a small business as in a larger one-the fundamentals are the same. Chapter I L A Grain Purchase Mr. Irwin Wanted Explained and Our Reward. Years 1884- I88S. Mr.Irwin, our banker, said to me one day, 'You must have made a lot of money this year.' I said, 'We have made no more than last year at this time.' He said, 'I do not understand. Last year you owed me about $2,000. This year you have money in the bank and soo barrels of flour worth about $2 ,soo stored in my buggy house.' I replied, 'But the wheat it is made from is not paid for and its price not yet determined. I will show you, confidentially, my contract.' I explained that a gentleman, Mr. X, had part ofhis wheat crop from last year and the year before, amounting to 10,000 bushels, & he had said that as the roads were very good he would like to get it hauled at that time. Wheat was very scarce in Bartholomew County and I was anxious to secure this lot of wheat as I thought we might not be able to operate the mill unless we did. The market at that time justified a price of ninety-seven cents, but as it was a nice lot of wheat I offered ninety-eight cents per bushel for it. Mr. X said, 'I want $ I .00 per bushel.' I laughed and said he would want more when he could get that price. Mr. X said, 'No, I wUI agree to sell when I can get $ 1.00.' I replied, 'Under those conditions, I wUI store your wheat free of charge and will agree to pay you three cents under the Indianapolis price of No.2 red wheat and you must consider the wheat sold whenever the market price reaches $ I .03 in Indianapolis. Under these conditions, I will haul the wheat now.' I wrote a simple agreement, which we signed. There was no active demand for flour, but I could sell bran at high prices and a little flour that would net us $ I . 10 for the wheat sold. It will be noted that Mr. X wanted to sell the wheat at $ I .00 per bushel net to him, & we agreed to store it free of cost untU the market reached $1.03- If the price had reached $1.03 Mr. X would have received exactly what he wanted. The prospects for spring & winter wheat were good but soon prices declined rapidly. When the No.2 red wheat reached eighty-three cents in Indianapolis, Mr. X closed it out at eighty cents. Mr. Irwin said it was a nice contract and was quite pleased. He said that I could not lose. He further said, 'Hereafter, I will charge you six per cent on your daUy average overdrafts at the end of the month. Since some of your checks are not cashed promptly you will have quite a saving on this arrangement.' I used this credit as if we had $5",000 in the bank . . Chapter 12. Bicycle RaceS-Popular Sport. Years 1884- I 885. During this time the high wheel bicycle was very popular _Columbus had more bicycles than many cities much larger. This was brought about through the activities of Charles Smith, who had the state agency of the Pope Manufacturing Company, makers of the Columbia bicycle. 23 j Will Irwin and I were enthusiastic bicyclists. We interested Dr. Rice, Charlie Green, and Charles Smith to join us in starting bicycle races in Columbus. In 1884 we rented the fair grounds, which had a good half mile track, and advertised a race meet quite extensively. We visited nearby towns on our wheels for advertising purposes, but mixed those trips with pleasure as there were some very attractive girls in Seymour & Edinburgh. Several times we were detained so late that we returned via train. The prizes given to the nonprofessionals were silver cups and gold medals. We had a number of contestants from Louisville, Indianapolis, and several from Cleveland and Chicago. Many visitors came from Indianapolis, Louisville and other Indiana towns. After all expenses were paid, not including anything for our time, there remained a profit of $2 82. So. The races brought so many people to Columbus that the merchants asked us to have the races the next year. In 188S we increased the number of events and gave more expensive prizes. We advertised in Louisville & Indianapolis which was costly. The Fair Ground Association raised the rent, so our expenses were much higher than in 1884. As Will Irwin and I continued our advertising trips on our wheels, we made contacts which necessitated long distance telephone calls. Instead of telephoning from Irwin's bank to make our personal engagements, we would go to the telephone exchange so that our conversations would be more private. Will phoned one day and made arrangements to talk with a young lady in five minutes, by which time he expected to be at the telephone exchange, but she was on the line before Will & I reached there & was connected with Irwin's bank. Mr. Joseph I. Irwin answered the phone just as we arrived at the exchange. Will was immediately connected and heard his father ask the young lady her name. When she told him he replied, 'You have a nice voice. I am Will's father.' Will broke in quickly, but the father enjoyed that conversation more than the son. Will Irwin won the half-mile race and received a gold medal for that event. I won the 100 yard race and a gold medal. I defeated Prince Wells of Louisville who later became a professional and was well known in Indiana and Kentucky. When I mentioned to one of my Philadelphia friends, more than fifty years later, that in 188S I won a 100 yard race he was surprised and said he could not imagine my being such an athlete. This made it necessary for me to explain that the event was a new type of race, being a slow race for 100 yards. The track was divided by strings into courses 10 feet wide. A contestant who touched a string, stood still, or fell off fouled and was disqualified. It was easy to stand still, but difficult to continue at a slow gait. The danger points were when the pedals of your wheel were near their high & low points, because if you exerted sufficient pressure to move the wheel beyond those critical points, you were likely to pick up speed, run on the foul line, or fall off. I discovered that when the pedals were near those points I could take hold of the rim of the wheel with my hand and push it slowly and maintain my balance. It was that little trick which gave me the race. My competitors attempted to go too slowly & were all quickly disqualified with the exception of Prince Wells. Finally he looked back to see me and when he discovered that I was pushing the wheel with my hand part of the time, he laughed and fell off, so that I had no competitor the last half of the race. Prince Wells later became a fancy trick rider. He and a Mr. Canary gave exhibitions throughout the country in skating rinks. Roller skating was a craze for a time. Small towns throughout the country had their skating rinks. IfWells had thought of pushing the wheel with his hand and had an hour or two to practice, I would have had no chance against him. The meeting was a big success & we had many visiting wheelmen. 27 JohnClark and Albert Bush had joined our group so that there were seven sponsors, but after all expenses were paid there remained a profit of only $20 to be divided among seven. We were fortunate that the weather had been fine, for if it had rained, there would have been a loss of about $1,000. We discontinued the races the next year as they would involve more time than we could spare. Indianapolis and Louisville were also having races so we decided to retire from the field. Chapter I 3. A Farmer Became a Grocer. Years 1884- I 885"' A retired farmer entered the grocery business in Columbus. He was an honest & nice man and extended credit to many customers. He was too liberal in this respect and it was my opinion, with many others, that he would probably fail. When our account with him reached $100, I ordered Enoch, our teamster, who solicited the orders, to accept only cash orders from him and to try to collect the amount past due. One day he asked Enoch to deliver to him five barrels of flour, promising to pay for it in the morning in addition to the $100. Our driver took the chance, which I approved. I was on the job promptly the next morning. The grocer was making out a deposit slip and asked me to accompany him to the bank, which I did. I saw him make the deposit & presented the check but was told it was not good. I think the grocer thought the check was good. I went to the rear of the bank and saw Will Schriber, the bookkeeper, and told him what had happened. He said, 'I cannot tell you the amount of his balance, but if you had not included the last five barrels in the account, it would have been paid.' I started out of the bank and it occurred to me that it might take time to locate the grocer, so I returned and took the liberty of depositing $25" to his account & again presented my check. When I had collected the $I 25", the president of the bank came to me with the check in his hand and said, 'You had no right to make that deposit of $25"" I stated, 'You accepted the $25" and paid me the $I 25". It is a closed transaction. You can collect the money from your depositor.' He became angry. Several persons were in the bank & the incident became gossip. My banker, Mr. Irwin, heard about it and asked me if it was a fact. I answered, 'Yes.' Afterwards, I went to the grocer's assistant and explained exactly what I had done. I offered to buy groceries to the amount of the deposit slip. He thanked me for the order and delivered the groceries. Mother asked me why I had purchased so many groceries. I explained. She asked if Mr. Irwin said anything & I said, 'No, but he winked at me.' Chapter 14. Burning of the Donner Flour Mill in Columbus. Year 1887. The Donner flour mill fronted south on Fifth Street and west on Sycamore Street. There was a small one-story dwelling on the rear of the property, the balance of which was used for storing wood, coal and for the convenience of the customers with teams. It was a splendid location for a residence or church, but a poor site for a flour mlll as it had no railroad facilities. In May, 1887, a fire started in the mill shortly after I 2 o'clock noon in the very top of the bUilding. Many men & boys were just out from work and school and were on their way home to lunch. They volunteered their assistance and we organized them for transferring flour & wheat across the street. The fire began at the top of one of the moving elevators with cups. They were a total loss, excepting the wheels and spindles of several that went into the basement, but most of them stopped above the first floor. Our loss would have been greater if it had not occurred at the time of day it did, when the employees of the mlll were present, and the fire had water put on it at the time it did. Fire spreads very rapidly in an old flour mill, as the wood is so thoroughly dry. The mlll and its contents were well insured, but everything on and above the second floor was a total loss. The insurance adjusters 29 said that they had never seen such a total loss above the second floor nor a greater percentage of salvage on and below the second floor. The shafting, bearings, stock of paper sacks and the small corn mill, corn sheller, flour packer, trucks, tools, moveable & fixed scales were not damaged nor the office furniture and fixtures and supplies. Wheat in bins below the first floor was not damaged. Two hundred barrels of flour in 2 S Ib paper sacks (1,600 packages) and 2S barrels in cooperage were taken across the street. There were about 2 S barrels in process of manufacture burned, including material that was to be fed from choke-ups. No damage was suffered in the engine and boiler room. Chapter IS. An Invitation to Build a Mill in Hastings, Neb. Year 1887. Shortly after our mill burned, we received a letter from the secretary of the Chamber of Commerce, Hastings, Nebraska, which he described as a growing city. He informed us that their flour mill had been destroyed by fire some time before, and invited us to visit Hastings, with a view to building a modern 200 barrel flour mill. He also stated that the city was prepared to give a desirable site on a railroad & $I 0,000 cash to a responsible party building such a mill. The offer sounded attractive. Father and mother were interested , but did not want to leave Columbus. They thought, however, that if the inducements were suf'ficient I could move there. It was therefore decided that I should go to Hastings & look the situation over, after which we could consider the proposition. I wrote the secretary promising to visit them within a few days. He telegraphed me, asking me to wire him the date & time of my arrival. I did not answer as I had decided to look the situation over first by myself in an effort to find out if there were any reasons against building a mill there. I knew that they would point out the good ones. My train arrived about five o'clock in the morning. A farmer and I alighted from the same Pullman & entered the one hack at the station. I asked my companion the name of the best hotel. He told me but suggested that I join him at the restaurant near the hotel, where I could get a good breakfast for twenty-five cents. He said that the same breakfast would cost me fifty cents at the hotel and I would have to wait around for nearly three hours before it was served. I thanked him and told him I would gladly join him. During breakfast, I inCidentally inquired if there was a flour mill in Hastings. He said that it had burned down and he feared no one would build another. Upon asking why, he explained that Hastings was in a poor wheat section-it seemed to be between areas in which both winter and spring wheat were successfully grown, but that the farmers there never knew which to plantspring or winter; occasionally one crop was good and the other poor. A few miles to the north of Hastings, at St. Paul, spring wheat did well and a short distance to the south, around Red Cloud, good crops of winter wheat were raised, but their city seemed to be betwixt and between. One of the towns, I think it was Red Cloud, sold most of the flour and feed in Hastings and would exchange flour for either kind of wheat. After breakfast, I called at the warehouse and had a talk with the manager. He told me he understood that the Chamber of Commerce would give $10,000 to anyone who would build a 200 barrel flour mill, provided it was located on a certain tract of land which was quite far out, but that anyone familiar with the wheat in this section would not build a mill in Hastings even if the Dest site in town was offered. In view of this unfavorable information, we decided not to build at this point. I had a little experience while in Hastings which I found extremely interesting. About ten o'clock I called on the secretary of the Chamber of Commerce. He was very cordial and took me over to meet the 3 I president of the bank who promised to see me in an hour or so. The banker did not know who I was or why I was in Hastings. He took me into his private office, explaining that he was in the midst of an unpleasant job, which he would tell me about later. He afterwards explained that the man he had been doing business with was transferring all his property & equities therein under rather unusual circumstances, and would have but little left. The banker felt sorry for him, and said that he formerly had, I think, 160 acres ofland & improvements which cost him about $ 10,000, but after the boom in real estate started he sold it for $80,000, realizing $70,000 quickly. He then began dealing extensively in real estate, buying and selling a considerable number of properties. It was the custom to make a small payment & to give notes maturing in one, two, three, and even four years for the balance. He bought properties in this manner and in some instances assumed o u t ~ standing mortgages. When he sold, the buyer assumed the notes and mortgages on the property. He also bought a number of properties & gave mortgages. For several years, he made many sales and purchases in this manner and had large paper profits. He was looked upon as a rich man & was supposed to be worth over $200,000. This was not to his advantage when the situation in regard to real estate changed - people filed judgments against him to protect themselves. Even where he had some property almost free, the eqUities were so tied up that he could not realize on them. He lost almost everything. Chapter 16. Rebuilding the Mill in Columbus. Year 1887. Good locations on the railroad in Columbus were scarce. We were offered a grain elevator in the central part of town for $ 6,000. The real estate alone was worth about $4,000. It meant removing the bins from one half of the elevator to install the mill in that part, and using the other half as an elevator. Father thought we had better buy it at $6,000, but I finally succeeded in getting it for $5 ,ood. The advantages in this property were as follows: I. The best location we could secure. 2. I thought it would displace the elevator as a competitor in buying grain. 3. It gave us a mill cheaper than we could build one in any suitable location. 4. It gave us storage for about 18,000 bushels of wheat. The disadvantage was a higher rate of two per cent on fire insurance than on a brick building, which we could afford to absorb. I purchased from Nordyke and Marmon Company the necessary . equipment for a hundred barrel mill, using all the machinery salvaged from the fire. The building, location, & facilities for storing & shipping wheat were important improvements. We built a warehouse at the rear of the propertyon our railroad siding for storing flour, supplies, etc. Another mill had been built previously but it was distant and inconvenient for about three quarters of the farmers around Columbus. The previous owner of our elevator built a small one, but the location was not as good as ours so the new mill & elevator were not serious competitors. Our location was central and much more convenient for buying wheat and exchanging flour for wheat. Chapter 17. A Lesson in Experience Cost $360. Year 1887. Shortly after acquiring the Columbus elevator, I purchased from Mr. X 4,000 bushels of No.2 red wheat, F.O.B. cars jonesville at eighty cents per bushel, weight and grade guaranteed. We each signed a memorandum accordingly. The market was strong and advanced fully three cents. I expected a profit of six cents per bushel. A local grain dealer asked me if I had any wheat to sell. I offered him 4,000 bushels of No.2 red wheat at eighty-six cents per bushel. He asked me where it was. I answered, 'JoneSVille.' He had bought33 lots of wheat in that vicinity and knew there was only one man there who could deliver 4,000 bushels and immediately went to see him & offered him eighty-three cents per bushel delivered Jonesville. Mr. X came to see me and said he was offered eighty-three cents per bushel delivered JonesvUle. I told him the market had advanced three cents per bushel and was now worth that price delivered Jonesville. He then said, 'I will deliver the wheat to you in Jonesville, but I refuse to guarantee the weights and grade.' I answered that he had already so agreed in writing. He replied, 'I now refuse. You cannot afford to sue me.' I was provoked, and saw Colonel Simeon Stanis fer for legal advice. He asked me if I could accept the wheat at his offer & make any profit. I answered, 'On account of the expense of weighing and receiving the grain in JonesvUle, the profit will be small, probably $ So if it grades No. 2 red, but according to our contract there would be a profit of $240.' Colonel Stanis fer adVised, 'Will, you had better take the wheat on the revised basis. It is unfair, but Mr. X is not an honorable man. Knowing your father and mother, I advise you to accept his offer. I will charge you no fee, but if you sue and win you w1l110se money because of my fee and in addition waste your time.' I accepted my friend's advice because he was kind and honest. The wheat failed to grade NO.2 red. By talking too much, instead of making $360, we lost $I 20. Competitors are not often as unfair, and neither are the majority of sellers as unscrupulous as Mr. X, but wIiat others do not know about your business will never hurt you. This mistake was an expensive lesson. I made numerous mistakes, but this is the most stupid one I can remember. Chapter 18. Trouble Gave Me an Idea Out of Which Came an Offer From Mr. Marmon to Work for His Company. Year 1887. In 1887, the old mill had the most serious choke-up I ever witnessed. The miller had gone to lunch and I was on duty. The exit spout from the purifier choked, so that the quantity of material increased. The larger amount of material required greater power to revolve and churn the increased quantity in its conveyor. It finally caused the belt to run off and the purifier stopped, after which the elevator became so overloaded that it almost choked down. I discovered the trouble only a few minutes before the miller returned and viewed the awful mess in the mill. He assumed I was to blame and became very disgusted, angry and profane. I thought that probably the trouble had started before the miller departed for lunch but, since I was not certain, refrained from expressing myself. I told the miller I would help get the purifier running and the material cleaned up before returning to the office, & that I was sorry to see him in so much trouble. I left about two sacks of clean material to be fed into the purifier when conditions permitted. It dawned on me that if there was more material in the elevator than in the purifier, the latter had stopped first. The next day, immediately after the miller went to lunch, I diverted the material from the purifier to the floor. Upon his return I explained what I had done and said that I proposed to learn if the trouble started yesterday while he was on duty or after he went to lunch. I reasoned that with the purifier stopped, the material in the elevator to the purifier had no exit except at its top into one of the elevator boots; it could go no other place. I explained that if the material secured from the elevator yesterday was a larger quantity than I ran on the floor today, it would be obvious to me that the purifier stopped before he went to lunch. He studied and hesitated several minutes. Finally, he laughed & stated, 'I secured several times as much material in the elevator as you found in the purifier. No amount of talk could have convinced me yesterday that the mill was in trouble before I went to lunch, because I honestly believed everything was running, but you have proved to me that I was mistaken.' 3S The spouts were made of wood. To know that the material was flowing, it was necessary to open one of the hand holes and see or feel it running. This was easier to do by daylight than with a lantern. Certain spouts never gave any trouble. This applied to those in which the material was granular and ran freely-similar to sand. If the material was soft, however, or resembled flour, it was more liable to clog and cause choke-ups. In such cases, the incline of the spout had to be correct & very exact. Our mill had three floors &a basement. It was not designed for the machinery it contained and consequently the engineers were handicapped in properly placing the different machines which were crowded into the old building. Some passages that the miller had to use were narrow and badly lighted, making his task very difficult. He had to do a lot of walking, running up and down stairs, and had many troublesome choke-ups. As I have stated before, I helped the miller during his lunch hour, & being inclined to be lazy, thought up a way to avert choke-ups. I fashioned an electric device with an annunciator to detect and locate the trouble at its inception, thereby avoiding serious choke-ups. I made an application for a patent on this device. In 1889 I made a model. It consisted of a spout with a slide which could be moved and stop the flow of the material in the same manner as a choke-up, causing it to back up, come in contact with the swinging plate and lift it. The arm of the shaft on which it hung would, by this means, close the circuit and ring the electric bell the same as a choke-up. I had an exaggerated idea of the importance of this device, and employed a salesman at $100 per month and his expenses to sell it. I retained him for two months, during which time he wrote me enthusiastic letters but never forwarded an order. I was quite disappointed. I showed the model to Nordyke & Marmon Company of Indianapolis. Mr. Nordyke, the preSident, was favorably impressed with the idea, but Mr. Marmon was not. He admitted that the device would work and detect choke-ups, but doubted if it could be sold - he considered it unnecessary. He telephoned their engineering department and got plans of our mill. He said that mUls should be properly designed and the different machines located with sufficient incline in all spouts, so that choke-ups would not occur, and that belts should be kept tight and in good repair, so that they would not run off, thereby stopping machines and causing trouble. I realized the truth in what he said. During our conversation, Mr. Marmon asked me how much I was making. I stated the mill was making an average of $4,,5"00 per year, for which I received one-third of the profits, or about $I ,5'00 per year for my services. He said, 'You are doing remarkably well for such a small mill, taking into consideration that you are off the railroad & crowded into an unsuitable buUding.' He operated a small mill in Richmond & a larger one in NoblesvUle, Indiana. It was buUt as a model for the Nordyke and Marmon Company. He offered me $3,000 for the first year if I would join them, and added, 'You will have good opportunities for advancement.' I thanked him and told him how much I appreciated his offer but explained that my father was a watchmaker & depended upon me to look after the flour mill, so that I was unable to leave at the present time but that I would see him some time in the near future. Strong competition with superior facilities, including a mill to grind feed, had started recently in a more central location than the warehouse in which the feed business I owned was operated, and the profit in our business had disappeared. I wanted to wind it up, but we had done so well that Frank Everroad, my partner, did not see the situation as I did. His brother joined with him and they offered me $300 for the warehouse, cost for our inventory and book value for our accounts. I accepted their offer. In a little over four years I had received a profit of more than $5' ,000 from the feed business, and over $ 1,200 rent 3 7 from the warehouse, for which I had paid $22 S. This was a big profit. It was a disappointment to me that Everroad would not close out the business and join me in the mill. However, it was only a short time until he realized that there was no future to their feed business. I persuaded him to take a position in the mill, & explained that I would like to go with Nordyke and Marmon Company, and hoped that he could take my place. A few weeks later Mr. Nordyke sent for me. He wanted me to take his son's place while he went to Mexico. He offered me $300 a month. I explained that my father's business was in such shape that I could not give them all of my time. He offered me $I SO per month for such time as I could give them. I talked it over with father and mother and they consented to my giving it a trial. Young Nordyke's job gave me access to all departments. I simplified the work in his department so that I could do a better job & have time to spend in other departments that interested me. I had never worked in a large organization before, and the knowledge & experience I obtained were quite an education. Their sales manager wanted me to try selling and remodeling small mills. I handled a number. In several instances I sold the spout alarm (the electric device to detect choke-ups) and thereby recovered nearly all the money I had put in it, including the salary and expense I had paid the salesman, but not including the expense I sustained when I equipped a mill on trial. The fact that no one else sold a spout alarm convinced me that Mr. Marmon was right in his opinion of it. The profits from the mill depended largely upon the buying of grain and the selling of flour and wheat. It was quite a trading proposition. I found that the profits were declining and that I could not be away from the mill so much. At the end of five months I gave up my position with Nordyke and Marmon Company. Mr. Marmon immediately offered me $s,000 per year and said he would make it more interesting if I would go to Toledo. The mill did not make $4,SoO per year while I was away. I decided that I must get my father's business organized so that I could leave it. If that could not be done, I must find a buyer for it. Chapter 19. My First Trip Abroad. Year 189 I. In the spring of 189 I, Mr. D. M. Marmon of Indianapolis phoned me to come and see him. Upon my arrival, he explained that he would like me to join the millers' excursion to England which was being organized by the Northwestern Millers of Minneapolis, and that Nordyke & Marmon Company would pay all of my expenses. He stated that the trip would be interesting & might prove a valuable experience. I told him I hoped to go and would give him a definite answer the next day. I consulted my parents that evening & as they were willing for me to go, I accepted Mr. Marmon's kind offer. He wanted to procure some information of a confidential nature which he thought I might obtain from a gentleman who would be making the trip. I learned that the gentleman was ill and was taking the 'cure' in Carlsbad so I left the party and went on there, meeting with better success in four days than would have been possible if the man had been with us. His company handled a very large milling business & the information Mr. Marmon desired was in connection with it. I would not have had the opportunity to talk with him at such length if he had been a member of the party. Our steamer was the 'City of Paris.' When you were at sea in 189 I, you were cut off from the world, as there were no Marconigrams nor telephone connections. Many of the members of our party were more important men in the milling and grain business than I had previously met. Normally, these men were in constant contact with the grain markets in the United States and Liverpool and missed it very much. After the second or third day out from New York, I listened to them 3 9 several times guessing as to the price of July wheat in Chicago-what it would sell for in June, and giving their opinions as to the September price. It was very interesting to me (a small town miller) to hear them analyze the situation and to learn how they reached their conclusions. On this voyage I saw a large iceberg & had a splendid view of a whale spouting water. I did not see a whale on my next five crossings. We had interesting visits in Liverpool & Edinburgh. I was fascinated with London. We also took excursions from each of these cities. We met many men of distinction in the flour and grain business &came in contact with many prominent persons, including the Lord Mayor of London. Messrs. Edgar and Gregory made sure that their friends had a wonderful trip. On the return voyage to New York our ship, the 'City of New York,' was signaled to stop & stand by another ship that had a fire in its hold. The deck was crowded with people. One of the officers of our ship called on the captain of the ship in distress. He made his visit in a small boat manned by sailors, which was a much more difficult trip than I supposed it would be, as the sea was rough and there was a strong wind. At times our ships were quite far apart. This was unavoidable as our captain was taking no chances of a collision. There was a lot of excitement on our ship; we realized that it would take time and might be an impossible job to transfer all the passengers and crew to our ship. We were impressed with the dangers of a fire at sea and the horrors which might follow. We fervently hoped that the fire would soon be extingUished. The anxiety of the ship's passengers must have been intense. It was several hours before the fire was under control. About that time another ship arrived. It belonged to the same company as the ship that was in trouble. Our captain was told to continue his journey. On a trip abroad, you see many old and new things which are enlightening. You get away from routine work, meet interesting people, and have a real rest. You have more time to concentrate, think more clearly about your own problems and formulate new plans. I learned that travel is not only a delightful form of relaxation, but broadens your viewpoint and increases your efficiency. It is an education and a profitable investment. Chapter 20. An Opportunity in Real Estate in the Gas Belt. Year 1892. After the discovery of natural gas in Indiana, several, towns and cities grew rapidly and real estate naturally advanced in value. Early in 1892, I was invited by Mr. H. I. Miller, an official of the Pennsylvania Railroad, to visit a site in the 'gas belt' where he and his associates were buying about 1,000 acres of land for the purpose of establishing the town of Gas City. He was interested not only in increasing traffic for the railroad, but in promoting a land company. Several real estate companies in the 'gas belt' had been very profitable in laying out new additions to small towns. I was invited to subscribe for stock in this land company. I thought there was some question as to whether or not the company could sen Us property for enough to pay the cost of real estate, gas territory, locating industries, other development work and earn a profit on its shares. The stock did not appeal to me. I decided, however, to buy several lots in the old town which I thought the land company had overlooked. I also considered buying a farm adjacent to the property of the land company. It seemed to me that nearby land must increase in value even if the land company's stock did not prove profitable. I bought a 66' x 132' lot at $600 on Main Street near the railroad station in the old Village. I was offered a farm of eighty acres at $I 1,500. The land company had let its $8,000 option on this property expire. I asked Mr. Miller, whose guest I jhad been, if he had any objection to my buying this farm. He replied, 'No, we have all the property we want. If you don't buy it someone else will.' He said, however, 'I think you would be making 41 a mistake.' I did not agree with him; as the farm had good improvements and should be worth almost $8,000 as a farm. Since the land company had purchased at least 1,000 acres of adjacent property and was using the balance of its $ 150,000 in development, I concluded the farm was a good buy at $ I 1,500 and agreed to pay one-third in cash & the balance in one and two years. My father wanted a quarter interest and joined me in the purchase. Frank Everroad was becoming quite helpful at the mill, & I decided to return to Gas City promptly and inyest $ 10,000 to $ 15,000 more if I could find good bargains. I went via the Big Four Railroad to Jonesboro, which was across the river and a short distance from Gas City. It was evident that this old town would be benefited ,by the new town, as many visitors would come that way. I purchased an old two-story brick hotel on one of the best corners in Jonesboro at $2,800 cash. The corner room was rented to the Bank of Jonesboro for $ 15 per month and the balance as a hotel at $ 25 per month. I made a few minor repairs, gave the woodwork a good coat of paint,