THE JONES STORY (1845 - 1958)

CHAPTER SEVEN - S. Harley Jones, President, 1945 - 1958 

At the close of the war in 1945, Stanley P. Benton decided that basic changes in the ownership structure of the Company were necessary. Possibly he felt that he had carried the chief executive responsibilities long enough, or he may have been concerned about the many inevitable changes of the post war period, or it could have been an accumulation of thoughts for the future which seem unresolved. Whatever his thoughts were, he did not reveal them to anyone on his management team. If there had been any family discussions, Harley and his mother, Mrs. S. Ralph Jones, were not invited into the inner circle. It was obvious that Stanley P. Benton did not have the confidence in S. Harley Jones that was essential for a natural transfer of authority. Whatever path of reasoning followed, Stanley P. Benton generated a bona fide offer for sale of the Company and presented the terms of this offer to the stockholders. At this time he directed about two-thirds of the voting stock. This move caught S. Harley Jones and the operating team quite by surprise.

Photo at left - S. Harley Jones. Click photo to enlarge. 

Details of what ensued during the following few weeks added together to resolve transfer of the Company from the family segment who were looking to secure their financial position to the segment still looking for venture. S. Harley Jones, with the support of the operating group, financing from a Boston bank, and with local financial guidance, countered the outside offer with one that was equal in cash. This was accepted and Stanley P. Benton was made Chairman of the Board through 1946, although no longer concerned with policy.

As President from 1928 to 1945 Stanley P. Benton had seen the Company through the roughest business climate in its history. He was not trained either academically or through practical experience, to operate a manufacturing business. He possessed none of the technical advantages of his predecessors. There certainty were some things he did not do, but many things he did were very important. Some of these were: to knit together the organization, utilize advice from older men and locate younger men where they could gain experience — his cousin S. Harley Jones included. Stanley P. Benton realized that he needed the help of men of many different talents and he created a climate which moved the Company out from under "a one man show". He was concerned that plant equipment had been allowed to become obsolete and he was aware that product designs needed concerted effort. In the midst of the depression mere preservation was a major accomplishment. The late thirties, the early forties and the war years made it possible to bring the Company to a place where it again had real potential, especially personnel and products. Only in retrospect can one view the many changes which occurred during the seventeen years from 1928 to 1945 while Stanley Benton was in control.

Labor was in process of moving to an era where its voice was to become a vital factor in management decisions. Machine tools were developed to take advantage of new cutting materials. Technical development was at its threshold, especially for the paper industry, ready to move with a force never known before.

Stanley P. Benton kept up with the tradition of his JONES association by taking an active interest in the life of the community. At one time or another he served on boards of a number of organizations. He engaged in many fund raising efforts. Williams College benefited by his help in many ways. Until Keith Paper Company was sold he served as a Director, and for many years he was a Director of the Pittsfield National Bank.

Photo at left - E. D. Jones & Sons Company Catalog (circa 1945). Click photo toenlarge.

If the financial advisors who assisted S. Harley Jones in raising money to obtain a clean transfer of ownership were concerned over his ability to take charge and direct a successful operation of the Company, they didn't stay that way long. There was no sudden transformation, no traditional "shirt sleeves to shirt sleeves in three generations", no excited pressure to shovel out from under a mountain of debt. Sure there was concern that permeated the organization, but if S. Harley Jones changed his pace, missed his night out with the boys or a multitude of extra curricular activities, it didn't show. He wasn't running a business to spoil his fun. He also urged his associates to set a pattern for themselves with which they could live in comfort

Problems were plenty; it would be difficult to state which came first or became most pressing. None were tucked under a rug. It became obvious that labor unions and wage rates were problems with ominous implications Then, in an economy freed from war time restraints there would necessarily need to be control of production cost. After hard discussions it was decided to employ outside help to install an incentive wage system. This took time and it created problems in addition to the necessity of providing solutions. Numerous oppositions had to be reduced. In the end it made it possible to pay area wages and stay competitive.

Elementary budgeting needed to become a fact of life immediately, to schedule repayment of the "loan". From a fairly simple start, budgeting took on an ever increasing breadth until it became a way of planning for every operation. Here S. Harley Jones was in his element, he had studied their principles, talked with associates in other businesses and knew the discipline in their use. He knew that it was the only way to plan forward movement of a business and make certain that objectives were reached.

Most of the Directors were working; all were concerned with progress. Meetings were regularly held each month following financial closing. These meetings served the combined function of examining operating results, budget compliance and an examination of current problems. Sales horizons were raised. Direct sales representatives were substituted where agents had been employed in some segments of the domestic market. Eventually these mer were allotted territories and resided, to be convenient, within their areas. Until this time all company representatives traveled directly from the home office. These men operated on budgeted quotas and under an incentive compensation, which made them the most productive and best paid men in the industry.

Near the end of World War II a sales agreement was reached with Castle & Overton of New York City who had world-wide contacts for the sale of pulp. These people set up a machinery sales organization that generated a foreign market for Jones built products far beyond expectations. In Europe there was desperate need to recover

from obsolescence and the ravages of war, and since the Marshall Funds were available it was difficult to meet the demand. However, within a few years it became evident that the equipment would not continue to be exported from the United States. Countries were rehabilitating machinery manufacturing plants devastated by war and these were hungry for business. Since most of them lacked modern designs, they sought business relationships for aid. E. D. Jones and Sons Co. granted manufacturing licenses, in cooperation with Castle & Overton and their agents, who continued the responsibility for product sales, to the following concerns:

S.A.Forni ed Impianti Industrial! Ingg. de Bartolomeis, Milan, ItalyBatignolles-Chatillon, Paris, France
Talleres de Fundicion Gabilondo, Valladolid, Spain
Mitsubishi Heavy Industries, Reorganized, Ltd., Tokyo, Japan
EscherWyss, Ravensberg, Germany
Bertrams Limited, Edinburgh, Scotland
James Bertrams, Edinburgh, Scotland

Some of these arrangements were for a limited number of products, some lasted only through the initial five year period, and others have developed into fine relationships embracing the full line of company products.

Keeping Castle & Overton's agents working in harmony with JONES licensees (for manufacture) required more than casual stimulation and direction; this problem was resolved by the company establishing its own foreign sales organization. The man who directed the effort traveled countless thousands of miles to all parts of the world, met with agents, manufacturers and customers, was Arnold J. Barea. Fortunately his advice was highly regarded and his time was eagerly sought. Developing business in foreign markets in the post war period, and the years that followed, produced many exciting experiences, contacts never dreamed possible before, and planted the name of the Company wherever paper was made.

In addition to the licensees mentioned, a working relationship was established with the Alexander Fleck Co. of Ottawa, Canada, for both manufacture and sales and an interchange of products and ideas. Alexander Fleck Co. had some equipment of their own but needed a full line of stock preparation equipment. So this association proved to resolve the problem of both Fleck's lack of certain pieces of equipment and that of placing the JONES name in the Canadian market. Alexander Fleck had a long history of supplying equipment to Canadian paper industry and they had established a working relationship (before the war) with Dills Machine Co., of Fulton, New York. This arrangement continued after Dills was purchased by Shartle of Middletown, Ohio, but when Dilts and Shartle merged with Black-Clawson, Inc., this ended the Fleck relationship with them. E.D. Jones and Sons Co. previously made attempts at manufacture in Canada with disappointing results, but this association with Alexander Fleck proved to be profitable and harmonious.

Bolstering the sales effort in several directions required corresponding supporting moves for both manufacturing and engineering. A program of plant improvement continued just as fast as money became available after compliance with the reorganization loan. New tools were acquired, space was expanded by acquiring adjoining buildings. Purchase was made of the former power plant of the Berkshire Street Railway and it was converted to additional machine space and a fabricating plant.

During the Korean War, sub-contracting for materials of war developed again on a major scale; this time, however, production of paper making machinery was not interrupted and new contracts were done with additional equipment and people. Large orders were filled for:

Axial flow compressor parts and other vital components for the Atomic Energy Commission; Guided missile parts for both Navy and Army projects; Remote control turret components for air field fire trucks; various parts for jet engines.

The largest sustained volume lasting most of two full years was the production of complete Commanders Vision Cupolas for over 900, M-47 Army Tanks. This work was done for the American Locomotive Company. Also, for the same company JONES produced several hundred final drive parts for the same tanks.

Through its history so far the Company operated with an extremely small engineering organization. This situation could not go through a major expansion, regardless of pressures for redesign and new products because there was need to operate with a tight financial rein. However, gradually there was a move forward, tempered at first toward product improvement, then new products, and finally research for new ideas. Engineers and supporting technicians were added so each year showed significant growth. S Harley Jones had a limited engineering background, and unlike his earlier predecessors made no attempt to play a major role in this area. He did have however, a keen practical sense, an ability to "needle", to question and finally to bring his operating group into agreement in the support of new ventures.

Exclusive rights were obtained from Stephen Stapley and William Subart for their patents covering a pulper which became known as the Pulp-Master. The first unit was built in 1947, and lead the Company into a field which had been dominated by others. More important than the machine itself was the basic understanding gained regarding a whole variety of problems connected with repulping, defibering and dealing with "broke". The purchase of these rights paid off handsomely, although with the exception of "broke" handling, the machine was replaced (after 1954) by developments in pulper field research within the Company.

The research laboratory, which was built in 1921 by Edward A. Jones, had for years primarily served as a demonstration tool for either the sales-engineering organization or for customers. It also served as a training ground and aided in product improvement. Now examining the principles of repulping various forms of paper and pulp was the start of a new phase for the laboratory, as an essential tool for applied research. Although the staff was small and progress was slow, a log was kept of all effort directed toward either research as such and/or mere demonstration. At this time, this adjunct of business was supported even though competition had not yet learned that such an activity was to become a means of survival. So not only was there an effort to focus attention toward research, but at the same time there was a continuing examination of engineering effort directed toward product development and/or new product addition. Hence, the inclusion of the much used term "R and D", and subdivision into short, medium and long term.

Accounting practice also moved apace to provide mor detailed and accurate information. Gradually it was refined with the development of budgeting and used for control of every operation phase. Transition from a relatively simple system for developing basic fundamental financial facts, to one of modest sophistication may seem elementary, especially when compared with rapid advances that since have taken place. At this time, proper acquisition of facts and their use, soon made the Company the most profitable in the business.

Back to engineering, during the late forties and early fifties, moves were made to improve every product line as rapidly as possible. Starting with the three bedplate beater, when the technical support from Bertrams terminated, this machine was entirely revamped to enhance its salability. It became known as the JONES Package Beating Unit. The entire line of Jordans, which were updated in the late thirties, were again improved in many details. The Double-D Disk Refiner was added, (this developed partially out of experience in building a four disk Bertram refiner) with a fresh look at the desirability of a fully pressurized refiner. The acceptance this machine achieved indicated a change in paper mill ideas of stock preparation.

During this period space became a premium, both for office and manufacturing. In rapid succession the Company acquired all available buildings suitable for use. First was the former power plant of Berkshire Street Railway, this was renovated and equipped for metal fabrications and for additional machine capacity. This move freed the old foundry space for machinery erection. Then the building adjacent the foundry was purchased, partially rebuilt and equipped for material Storage. Next the three story building south of the wood shop was acquired and developed for office, engineering and storage space. When this move was made, pattern storage in the third floor level of the wood shop was eliminated and this was also converted to office use. All of these moves, made the Company's buildings along Depot and McKay Streets and Clapp Avenue a 1950 example of the "Old Lady's Shoe". There were numerous operating spaces on seventeen different floor elevations.

Photo at left - Former Berkshire Street Railway power plant converted into fabricating plant 1950. Later converted intolabaratory 1961. (aerial view 1955)

Nowhere else but in New England could such a thing happen and perhaps nowhere else could similar operations be carried on so effectively. Only an organization that had grown with such a situation, could make it function and compete profitably. High handling costs were unavoidable, but good tools, equipment, scheduling and esprit de corps offset many unnecessary moves.

By the early and middle fifties many thoughts concerning the future poured through S. Harley Jones' mind. It was evident that the paper industry was being concentrated into big units and it seemed likely that those who were going to serve them best must also have substantial resources. Also paper mills were buying machinery in large blocks, which were to perform a variety of related functions. This excluded the builder with a limited product line. It was obviously necessary to keep abreast with product designs in this age of accelerating technical knowledge, by developing and/or assimilating new products. To move ahead at an accelerated pace would require disproportionate assignment of funds to R & D. Also at some time there must be consideration given to the solution of the manufacturing space problem.

Only two possible solutions existed. First was to go it alone, build a new plant, get the additional products to fill it up and expand the organization. This alternate would require capital and it involved risks. For many reasons, among which were the future financial security of associates who had ventured in changes in 1945 and the knowledge that Harley's son, Edward Pelton Jones, (Pelton, name of his great grandmother) had no interest in this type of business, made this selection undesirable. Even modifications of such a plan involving outside financing were analyzed. The second possibility was to become part of another larger organization either by outright sale or by merger.

The consideration of these two major courses of actions was deliberate; S. Harley Jones was not prone to impetuous moves. Quietly he probed the minds of his close business associates and he set about learning about company mergers and acquisition. The period was filled with examples of businesses being bought and sold with almost the same casual procedure as with any other cormodity. He fixed in his mind a few basic objective' that had to be satisfied. First, among these was assurance that the business must be retained in Pittsfield or its environs; he had no desire to face the wrath of a community about to lose a business. Second, was an assurance that a new plant would be built. There was no time limit placed on this requirement, but also there was always an open presentation of the need and that it could not long be postponed. Third, was the desire for a close tie with a company already serving the pulp and paper industry. It was felt such a tie, providing the equipment was complementary, would add strength that could not be had in any other type of association. Of course there were financial objectives, but the fact thai these did not take precedence does not mean S. Harley Jones was an idealist, instead of the practical business man he is known to be.

Quiet examination was made of a number of possibilities for sale or merger of the Company, of these three or four were ultimately seriously considered. The only one that reached notice of the press was Textron, in 1957. Meanwhile, even though these considerations were under

examination, there was no effort spared in building the Company. In fact, in late 1957 two principal products were purchased from Jackson and Church Company of Saginaw, Michigan. These were their Zenith Press,

which was developed and later became known as the Pressmaster, also their Roto-Pulper, which subsequently became the Vertiflex. Other acquisition possibilities were studied with thoughts of increasing the industries the Company might serve and to expand its business.

Not all efforts to achieve growth were crowned with success. In 1955 Alexander Fleck, who were building and selling Jones" products for the Canadian market, agreed to set up a joint venture company for the purpose of designing and building continuous pulp digesters. This new company, with its own management, was established in Pittsfield and called Condi Engineering Company. It was in existence from October 1955 to July 1958 and developed a digester concept that seemed to contain many unique features. However, this concept required more financial backing than Fleck and Jones were willing to provide, so it was decided to discontinue the Condi Engineering firm and absorb a skeleton of the personnel into Jones. This group later generated a full mill scale installation which proved that it contained serious defects. In retrospect, the less said of that effort the better. This might be compared with the attempt made by S. Harley Jones' grandfather when he entered the clock making field. Both learned that risks are multiplied when an attempt is made to invade a field outside of a solidly established business, even though "experts" are engaged who provide the know-how. At least Harley's grandfather left a few samples about the country which have become valuable collector's items. Both, however, checked

Photo at left- Aerial view of Depot Street plant, 1955. "Seventeen levels of operation - only in New Engand."

 

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