Sunday, May 31, 2015

That Which Has Been Lost


Prelude to the essay "That Which Has Been Lost"

As I was walking along the railroad tracks westward out of town, I noticed a large red-brick boiler smokestack.  As I drew closer, the boiler room and factory came into view.  It was a late 19th century style industrial structure, abandoned, roof riddled with decay holes, windows all boarded, and the smokestack towering above it all.




This building aroused my curiosity so I ventured onto the property to examine it more fully.  The facility was quite vast, perhaps 75 yards long and it was segmented in such a way that each of the company's periods of expansion were clearly detectable.  Given the evidence of  business longevity and the sheer size of the building, I began to wonder which company this might have been.

The original structure was of course the red-brick portion hosting the boiler room, the smokestack and a small factory to the rear.



 In the first expansion phase, this wooden segment appears.

In the next expansion phase, this concrete block segment appears.



In the final expansion phase, this aluminum siding segment appears.

When I made my way to the front of the complex, my curiosity about which business this was had been answered.  I had discovered the Athol Table Shop!  

My excitement with this discovery was short lived because when I took time to read the fine print "Since 1922", my joy was tempered by a touch of sadness that this long standing business and significant employer in Athol was now gone forever.



When I returned home, I immediately began an Internet search for information on Athol Table, but found very little about their history and products.  What I did find however were several dozen obituaries of people who had worked at the table shop for 10, 20, 30 years.
There were no stories written about the company when it closed; not in local newspapers, nor by local historians and authors.  In our literary and media circles, Athol Table was an insignificance, but to thousands of residents for nearly a century, the table shop was how they earned a living and fed their families.  To them, it was important, and now, it became important to me also.

I decided to write a proper history about the company and share it with the community.  Along the way, I was delighted to discover that a former neighbor of mine, Paul Maier, was a past owner of the company and he helped me piece together an accurate history of the 82-year lifespan of Athol Table.

My work on Athol Table is not complete.  I still need to gain access into the building to photograph some of the pieces of their furniture which remain there and possibly also for some images of the inside.  Also, I think it would be nice to gradually assemble stories from former employees, so the essay may continue to grow.

What follows now is my essay and while it transitions into politico-economics, the front end of the essay presents a nice overview of the entire history of the table shop.
David W. Runyan II






That Which Has Been Lost

Copyright, 2012 by David W. Runyan II

Credits
I express gratitude to the people and resources which made possible a coherent and accurate essay.

Mr. Paul Hadley Maier, third generation owner of Athol Table, who very graciously provided precise input on the history of the company and on the family members involved.

Mr. Dick Chaisson, journalist/historian, whose comprehensive recall and record keeping helped pinpoint various pertinent newspaper articles and dates of events.

Athol Historical Society and Athol Public Library, both directing me to Paul Maier as well as providing written and photographic materials.


Preface
This essay presents the eternal impossibility of resurgence in American manufacturing from the vantage point of one family owned business and the community in which it evolved. It is a case study with direct correlation to any town and as such, paints a picture of enduring despair to which the whole nation can relate and from which there is no escape.

In the course of creating the PhotoChronicle, “Athol, the Beauty Within”, I occasionally encountered architectural ghosts of the past, and it occurred to me that not all beauty is terrestrial in nature.

At times, that which enchants us is historic or human in its essence.

Such is the story of Athol Table Manufacturing Company, which operated continuously from 1922 until 2004, handily surviving ten years of the Great Depression, five years of World War II and six ensuing decades before falling victim to politically contrived market forces.

The company designed and manufactured hardwood tables and other furniture pieces. It was a family business which provided craftsman-style employment for three generations of people, nearly all of whom resided locally in the Athol/Orange area.

Athol Table is a celebration of the family business in America, a vital piece of Athol’s historic manufacturing mosaic, and a heart warming tale about enduring craftsmanship in the region.

The demise of the company is a disheartening testimony against our modern era, in which big business uses big government to eliminate competition from small companies.

My curiosity with Athol Table began when I discovered the shuttered manufacturing plant, situated alongside the active railroad tracks, about a half mile west of downtown. This structure, with its conspicuous brick smokestack, commands attention and stirs the imagination. The fact that the building has been closed for several years is underscored by the rear walls, which are plastered with graffiti and by the weeds which have grown to heights sufficient to conceal the vandalism. Recently, a small woodworking firm has occupied part of the building but the ravages of neglect and disrespect remain.

This visually intriguing architectural relic enticed me into research about the building, and about the business which lived within its walls for nearly a century; hence, this essay.


Encapsulated History of Athol Table Manufacturing Company
Athol Table Manufacturing Company was founded in 1922 by Charles Kumin and Jacob Garbose, with the original factory in South Athol on land currently owned by the Morgan Memorial Summer Camp. Kumin and Garbose decided that the company required a furniture expert, so in 1924, they took on George H. Hadley as a partner. Mr. Hadley had a great deal of prior experience in the furniture trade and was able to set the company on a profitable path. Kumin and Garbose decided to exit furniture manufacturing to become merchants, and in 1925, George Hadley bought Athol Table with new partners, Herbert Hadley and I.B. Frost. Thus, in 1925 and continuing until 2002, Athol Table became and remained a local furniture manufacturer owned and operated by the Hadley family.

The company prospered and quickly outgrew its South Athol manufacturing plant, so in 1926, the partners purchased the Diamond Match factory on Harrison Street, which had been lying idle for a number of years when Diamond Match consolidated its operations to Biddeford, Maine.

The factory was built in 1905. Diamond Match, a large corporation, established itself in Athol by purchasing local wooden match manufacturer, Hapgood and Smith in 1882. Apparently, this tactic of selling out to or being purchased by larger competitors has been a part of the business landscape all along. It is interesting to note that Athol Table never yielded to any such temptation, remaining a family-owned business for eighty years. There certainly was no shortage of opportunities to sell, given the dozens of furniture competitors in nearby Gardner.

The purchase of the building was accomplished through issuance of stock, as recorded in the book, “History of Athol” by William G. Lord:

“ To encourage this industry (Athol Table) our citizens subscribed quite liberally to an issue of preferred stock . . . This enabled the company to acquire the idle match plant and to sell the South Athol buildings to Morgan Memorial . . . The entire issue of preferred stock has long since been repurchased by the firm and cancelled.”

In Lord’s account, we find that the Hadley family turned to the community for their funding needs and the citizens of Athol responded generously and enthusiastically. In my estimate, this interaction between business and citizens speaks volumes about the sense of community which was inherent to that era and further volumes about the lack thereof today.

George and Herbert Hadley ran Athol Table through the 1920s, 1930s, and 1940s, surviving the challenges of the Great Depression and World War II. When these men retired, ownership and management of Athol Table was transferred to Robert Hadley (Herbert’s son), Karl Maier (Herbert’s son-in-law), and William Hill (an informally adopted son of George Hadley). This second generation of Hadleys operated the company during the 1950s, 1960s and 1970s.

The third and final generation of Hadleys to operate the company consisted of Mary Hadley Grimes and her husband Jerald Grimes (Mary being the daughter of Robert Hadley), Paul Hadley Maier (son of Karl Maier), and Jonathan Hadley (son of Robert Hadley). This group of owners operated Athol Table from about 1980 until 2002 when they decided to sell the family business. The decision was based upon a shrinking profit margin, GATT induced foreign competition, and a general consumer turn toward inexpensive particle board furniture.

In October, 2002, Athol Table was sold to Harald Gigas and Michael Overturf, entrepreneurs from other places in New England. Their intention was to keep the company in Athol, and to expand the product line and markets.

Before completing the sale, Mr. Gigas and Mr. Overturf became familiar with the company by personally working at Athol Table for six months in due diligence. They were apparently convinced that the company had potential so the sale went forward. Despite their plans, they found it necessary to close the company less than two years later.

In July, 2004, Athol Table Manufacturing Company closed forever. On that day, Athol lost a piece of its history and its culture. The town also lost its third-most consistent employer of the twentieth century. Among companies surviving into year 2000, only L.S. Starrett and N.D. Cass employed more people.

On November 16, 2004, the building and contents of Athol Table were sold at auction, and the final chapter of the Hadley family business was etched into Athol history.


The Roots of Prosperity 
This journey into the history of Athol Table led expectedly into a more broad study of local history, and while blending all this new information with my own observations, I developed thoughts and theories regarding the causes of business failures like that of Athol Table, and more generally about the family business model and the American manufacturing base.

In reviewing the historic record, the contrast between what Athol was and what Athol is (in the economic sense) becomes instantly clear. The difference is stark, and to any conscientious person with a fondness for his community, the Was/Is comparison is both alarming and troubling

Athol, having been endowed with natural waterpower from Mill Brook and Millers River, quite understandably became an incubator of mills and manufacturing activity. From those businesses grew a community of sustainable retail and service activity. The railroad passing through Athol facilitated a furtherance of this robust industrial economy, drawing industry from surrounding communities and connecting Athol to other major markets. Athol was fertile ground for business-minded entrepreneurs, the majority forming family businesses.

From the book, “Athol Past and Present” by Lilley B. Caswell, we find the following:

“But it is as a manufacturing town that Athol is most distinguished, and few towns of its size possess such a variety of manufacturing industries as the people of this busy and thriving community are engaged in. Among the products turned out from the factories and shops are shoes, cotton and woolen goods, silk, doors, sash and blinds, pine furniture, piano cases, billiard tables, rattan chairs and baby carriages, packing boxes, paper boxes, wallets, machinery of various kinds, fine mechanical tools, matches, building material, soapstone articles, etc. The State census of 1885 gave 114 manufacturing establishments, which at the present time has been largely increased by new industries coming into town, and by additions to those already established. With all these varied industries, there is little danger of a general depression of business. The town has had a healthy growth, both in population and business.”

Wouldn’t it be nice if that description applied to Athol today!

From the Caswell account, we discover that early Athol enjoyed a robust economy based in manufacturing which in turn spawned and supported the retail and service sectors. In the Was/Is comparison, we find 114 manufacturing businesses in 1885, contrasted to 4 significant manufacturers in 2012 (Starrett, Pexco, Whipps, Niagara Cutter).

These statistics are severe. They indicate catastrophic demise.

To help us grasp the extent of manufacturing diversity in early Athol, we turn to the book, “Images of America – Athol, Massachusetts” by Robert Tuholski. This work presents photos, descriptions and locations for many of the large manufacturing facilities once operating in town, as follows:

Athol Machine Company (tools) . . . Lee Brothers Shoe Company . . . C.F. Richardson Machine Shop (tools) . . . Bennett & Van Valkenburg Cotton Factory . . . Arthur S. Tyler Sash & Blind Company . . . L. S. Starrett (tools) . . . Millers River Manufacturing Company (blankets and leather goods) . . . Union Twist Drill (tools) . . . Eagle Furniture Company . . . J Wesley Goodman Company (pool tables) . . . Athol Pump Company . . Hapgood & Smith Match Factory . .Hill & Greene Shoe Factory . .L Morse & Sons (cribs, furniture) . . . Edwin Ellis & Son (doors, sashes & blinds) . . . Bates Brothers Wallet Shop . . . Athol Marble Works (memorials) . . . W.H. Amsden Company (doors & sashes) . . . Raymond Sash and Blind . . . Athol Table Manufacturing Company . . . N.D. Cass (wooden toys).

In those times, the town enjoyed an unemployment rate near zero, with manufacturing employing about 80% of the population and retail/service employing about 20%. It is an unsettling shift in the Was/Is comparison that today, manufacturing employs about 10% and retail/service about 5%. The remainder of Atholians resort either to commuting long distances for work, or else they participate in welfare and disability programs.


The Decline of Prosperity
 There are, of course, numerous theories regarding the economic decline of Athol. Most frequent on the list of causes are: creation of Quabbin Reservoir (1930s), construction of the Route 2 bypass (1950s), the GATT and NAFTA free trade agreements (1990s), replacement of human workers with automated machinery (ongoing since the 1990s), and a lack of government action and support (ongoing since FDR administration).

We shall examine the merit of these suspected causes.

1 - Creation of Quabbin Reservoir actually added to the Athol business landscape as some of the displaced businesses in the flooded towns relocated to Athol, so this suspicion is unfounded.

2 - Construction of the Route 2 bypass only effected retailers since passing motorists were now able to avoid downtown at high speeds. The highway had no negative effect upon manufacturing, but rather facilitated improved truck transport into town, so this suspicion is likewise unfounded.

3 - The various free trade agreements did indeed make it difficult or impossible to manufacture in America, and these treaties played a major role in the closure of both Athol Table and the N.D. Cass Company. It is to be noted however that the manufacturing collapse of Athol was nearly complete by the time free trade was introduced, so other factors are culpable.

4 – While it is true that automation causes job losses, the decline of Athol was irreversible a couple of decades prior to the time when robots began replacing people in earnest, so it was not a factor in Athol's decline, but contributes to the hopelessness of Athol's recovery. It is also to be noted that GATT created over 100-million manufacturing jobs in China despite automation and robots being prevalent during the same period.

5 - Regarding the lack of government support, I would only indicate that of the 114 manufacturing facilities in Athol in 1885, a total of zero were built upon government support. Enough said.

The most compelling refutation to the suspected causes for the decline of the manufacturing base in Athol can be found in the continuing existence of the L.S. Starrett Company. The success of this company is predicated upon good products and good management. Government action of any kind was not a factor in either spawning or sustaining the company. The advent of both Quabbin and the Route 2 bypass were completely irrelevant to the company. Most amazingly, the company managed to keep 600 manufacturing jobs in Athol during the past 25 years of the stampede to outsource.

Another interesting local manufacturing phenomenon is Whipps, Inc., which manufactures water control structures. This family business was formed in 1977, long after Quabbin and the bypass, and at the beginning of the free trade era. The success of Whipps is evidence that in certain markets, the good product/good management model is still possible. It must be noted however that many of their customers are municipalities and utilities for which money is no object; they simply issue bonds at their whim and pass along the bill to taxpayers and rate payers. Not all products are subject to the market dynamics enjoyed by Whipps.

These few success stories notwithstanding, the economy of Athol has remained stubbornly depressed; momentarily granted the illusion of vibrancy during the dot com and housing bubbles. The inevitable bursting of those bubbles revealed the temporal and contrived nature of the perceived prosperity.


Attempts at Revival
Over the past 30 years or so, there have been a number of public/private partnership efforts to spur economic development, most notably the Millers River Community Development Corporation (CDC) and more recently the Athol Economic Development and Industrial Corporation (EDIC). While these quasi governmental entities have good intentions, they lack the political and financial firepower needed to overcome the global forces which stifle economic development.

The CDC was formed in 1984. The goal of this entity was to encourage and assist development of small businesses. It operated for fifteen years and to my knowledge, produced zero lasting results. In the end, CDC was found to be involved in questionable practices and it was ultimately dissolved.

The EDIC was formed in 2004. The centerpiece of the EDIC plan is known as North Quabbin Business Park, an industrial park situated with easy access and visibility to Route 2.

The principles and plans of EDIC can be found in a document entitled “Athol Economic Development Plan”, final copy dated September 12, 2005. This can be obtained at Town Hall or online: Athol Economic Development Plan.  In this plan for the new industrial park, we find the following stated goal:

“The goal of the Town of Athol and The Athol EDIC is to see that the North Quabbin Business Park provide opportunities for light manufacturing and other clean businesses that will add to the tax base and create employment opportunities for local residents.”

Let’s examine the progress and prospects.

The business park was proposed in 2005. After eight years of planning and execution, there are still no businesses operating in the park.

The original goal was to attract “light, clean” manufacturing. As of this writing, zero manufacturers have expressed an interest in the park. There is however a contractual commitment from a grocery retailer and possible interest from two restaurants.

By all reasonable measures of evaluation, the EDIC plan is a complete and total failure.

We do well to realize that of the 114 manufacturing firms in Athol in 1885, not a single one of them was created by a CDC or EDIC. The perceived need for such entities is symptomatic of much deeper structural problems in the economy; problems which such entities aren’t equipped to correct.


The True Causes
Prior to fixing a problem, it is usually necessary to properly understand it.

To understand the economic malaise of Athol, we need but a cursory look at the past. In the era when Athol enjoyed a healthy economy, it had a large manufacturing sector supporting a much smaller retail/service sector. Today, the equation is inverted, a model which fails proficiently.

It is impossible to replace a manufacturing sector with an expanded retail/service sector. The manufacturer possesses a vast customer base, selling into markets far and near. The retailer has only the local population as a customer base. Starrett employs 600 while the average retailer employs 6. Should Athol lose Starrett, it would need 100 new retailers to take up the slack.

If it were even possible for 100 retailers to open simultaneously, is it possible for them to succeed? How many pizza shops can a town of 10,000 support? How many insurance companies? How many funeral homes? It’s quite simple to understand the absurdity of an economic model based upon retail and service to the exclusion of manufacturing.

The demise of manufacturing in Athol was not caused by events occurring in the Quabbin Valley or along the Route 2 corridor, but by events occurring in Washington, DC.

Somewhere along the timeline of the industrial revolution, big business and the banking industry learned how to infiltrate government and use or control it to achieve their objectives. The first nail in the coffin was the Federal Reserve Act of 1913. The last nail in the coffin was the GATT free trade treaty, and each year between 1913 and 2013, bit by bit, it became incrementally more difficult, more financially impossible to become a George Hadley or a Laroy Starrett.

In his famous Gettysburg Address, President Lincoln stated . . . “that this government of the people, by the people, for the people, shall not perish from the earth.” But perish it did. It is now a government of the lobbyists, by the global industries, for the bankers.

As Red Barber, in his homespun fashion, quipped in 1988, “Washington DC cares more about Dow Jones than Doug Jones”.

By now, it should be clear to everyone that Wall Street owns Washington DC.

Manufacturing in Athol, and especially a family business such as Athol Table, is almost impossible to start due to over-taxation, over-regulation, and free trade agreements. There is no CDC or EDIC capable of restoring Athol to its former industrial glory.


The Futility of Hope
The true solution is equally impossible. This would involve a voter revolution at a radical magnitude with a
mandate for the following:

1 – Vote out all incumbents.
2 – New congress to impeach and replace the entire Supreme Court.
3 – Abolish the Federal Reserve and return to the gold standard.
4 – Replace free trade agreements with fair trade agreements.
5 – Declare public employee unions and defined benefit pensions void and illegal.
6 – Shrink the role of federal government to little more than a defense department.
7 – Amend the Constitution to prohibit government from incurring debt except to fund war.
8 – Amend the Constitution to set a flat tax rate on income only; making all other forms of taxation illegal,
distributing the flat tax proportionately to the local, state and federal levels, and requiring a balanced budget. If the only money the rascals receive is from personal income, you can be assured that they will promote an ability to generate personal income.

Revolution at this level is impossible. Almost everyone in the nation chews on some form of government carrot; be that welfare, disability, food stamps, Medicare, extended unemployment benefits, a government job and so on. Too many people are dependent upon government in too many ways, so none of them will vote for change in fear of losing the blessed carrot.

Most businesses also rely upon government assistance. This isn’t limited to the notorious corporate welfare recipients, i.e. : General Motors, Solyndra, Goldman Sachs et. ux., nor only to those awarded government contracts of some kind, but consider if you will, where the grocers and retailers would be if not for food stamps and extended unemployment benefits.

Following trend lines, one can sense no likelihood of a return to conditions favorable to the small family business. Nor is there any probability that new technologies will lead to renewed US manufacturing on a large scale. The global players will continue to shift manufacturing activity around the planet to their profit advantage.

Any technology, however new, can and will be manufactured in South America, Asia, or Africa. This shell game can continue for hundreds of years. And whenever labor costs exceed a certain level (which shrinks yearly), people will be replaced by automated machinery.

Since the current generation is beholden to government carrots, revolution is impossible. The chance for revival lies with a future generation suffering under a government which has run out of carrots. That generation might possibly right the ship. Until then . . . there is no hope.


Comment in Parting 
When Athol Table ceased to exist, we barely noticed. We were too busy watching our dot com stocks rise in value minute by minute to care about what we viewed as an antiquated manufacturing company (when in reality it was a town treasure). When stocks crashed, we were too busy watching our homes rise in value minute by minute.

Now that all the bubbles have burst and the Federal Reserve is impotent to create new speculative manias, we might find ourselves with sufficient free time to be alone with our thoughts and in those remorseful moments, we might even contemplate that which has been lost.

ende im Wahrheit