Tuesday, January 3, 2012

Schick and Patrick Frawley

Tuxedo Park : A Wall Street Tycoon and the Secret Palace of Science That Changed the Course of World War II
Building and financing the bomb in Tuxedo Park, NY
Ralph Austin Bard was appointed by FDR early in 1941 to be undersecretary of the navy and would serve at that post until his resignation early in 1948. Reporting on his initial appointment, the Racine Journal Times in 1941 had said:
Bard is president of an investment banking house bearing his name. He also is chairman of the board of the Wahl company, Chicago, manufacturers of fountain pens and pencils.
After the merger of Wahl into Eversharp, Bard was named chairman of Eversharp Inc. In 1947 President Truman appointed him United States deputy representative on the United Nations commission for conventional armaments two years after Truman had first been briefed that the Manhattan Project team was about four months away from completing its development of the atomic bomb. Members of the Interim Committee, set up to decide about whether or not to drop the bomb, included:
  • George L. Harrison, President of the New York Life Insurance Company and special consultant in the Secretary's office; 
  • James F. Byrnes, President Truman's personal representative;
  • Ralph A. Bard, Under Secretary of the Navy; 
  • William L. Clayton, Assistant Secretary of State; and scientific advisers 
  • Vannevar Bush, 
  • Karl T. Compton [president of Massachusetts Institute of Technology], and 
  • James B. Conant [president of Harvard]. 
  • General George Marshall and 
  • Manhattan Project Director Leslie Groves also participated in some of the committee’s meetings. 
  • Henry L. Stimson chaired the Committee.
Bard had previously organized and directed several investment corporations in Chicago. He was the only one on the Interim Committee who showed any reluctance about killing Japanese people without warning:
On June 1, 1945, the Interim Committee recommended that that atomic bombs should be dropped on military targets in Japan as soon as possible and without warning. One committee member, Ralph Bard, convinced that Japan may be seeking a way to end the war, called for a two to three day warning before the bomb was dropped.

During World War I Bard had been an investment banker located at 39 S. LaSalle in Chicago, the same address where Dawes and company, investment bankers, was located. In 1934 he was a vice president of the Pure Oil Company, controlled by the Dawes family, who had been most instrumental in assuring the payment of reparations by Germany to both Britain and France. In 1933 he was named to the board of directors of the American Shipbuilding Company.
1924 photo Standing, left to right, half-length: General Charles G. Dawes of Chicago, Owen L. Young
Charles Gates Dawes of Pure Oil Co.
Driven Patriot: The Life and Times of James Forrestal (Bluejacket Paperbacks)At the time of his appointment by President Franklin Roosevelt in 1941 to succeed Lewis Compton as assistant secretary of the Navy, Bard was said to be a "Republican and long-time friend of Secretary [William Franklin] Knox," the Secretary of the Navy at that time. Following Knox's death in 1944, Bard was promoted to undersecretary of the Navy, the post vacated by James Forrestal when he moved up to replace Knox.

How did Ralph Bard manage to fit the chairmanship of Eversharp into the midst of all these government appointments? A brief history of that company during the relevant time-frame reveals the following details: "In 1945, Eversharp (having dropped the Wahl [Adding Machine] name completely) invested heavily in the manufacture of the latest technological innovation -- the ball point pen.  Unfortunately for Eversharp, the Reynolds Company came out with a competing ballpoint just before the Eversharp models were released, and Eversharp ended up losing millions.  The fiasco crippled the company more than it could withstand, spiralling the company into a decline that ended in 1957 with the sale of the company to its longtime rival, Parker, who used the name on what could only be called weird products before selling off the remaining assets of the company in 1961."

Detailed Eversharp History

December 19, 1957
Eversharp Pen-Pencil Division to Become Parker Property Jan. 1
Announcement Is Made of Purchase by Janesville Firm

An important development in the history of the Parker Pen Co. was made public today when it was announced officially that Parker has purchased the writing instrument division of Eversharp Inc., one of the major firms in that field, and will assume control of it on Jan. 1.

The board of directors of each company has ratified the sale contract, Eversharp on Dec. 6 and Parker at a meeting Dec. 17. No purchase figure was made public but it is understood to be a cash sale. Formal announcement of the completion of the transaction was made this noon at a press luncheon at the Ambassador East Hotel in Chicago, with representatives of both companies present.

The announcement confirmed rumors current in the trade for several weeks that such a deal was pending. The report of the probable sale first appeared in newspapers on Dec. 4.

Official announcement at today's luncheon was made by Bruce M. Jeffris, Parker president, and Thomas J. Welsh, executive vice president of Eversharp. Included in the sale are all the patents, trademarks, inventories and facilities of Eversharp in the field of writing instruments and related products.

Acquire California Plant
Neither Eversharp's shaving equipment division nor any other phase of the Eversharp organization is involved in this sale as it is limited to the writing operations only.

Included in the sale is a three-year-old modern plant of the Kimberly Corporation at Culver City, Calif. Kimberly , has manufactured writing instruments for Eversharp, Inc., for the past 10 years in the 22,500 square foot plant. Kimberly will remain a separate corporation subsidiary to the Parker Pen Co.

Also involved are office and plant facilities at Arlington Heights, III., and Toronto, Canada. At Arlington Heights, 1440 E. Davis St., the Eversharp Pen Co. has leased a 12,000 square foot plant to contain administrative offices, service and shipping functions. At Toronto is a plant with approximately 3,000 square feet of manufacturing space.

Jeffris stated that his company's purpose in acquiring the Eversharp writing business was to "continue to diversify operations within our industry." The Eversharp acquisition permits Parker to enter the lower price market immediately and with a solidly entrenched brand name, he pointed out.

Parker feels that the new Eversharp Pen Co., operating autonomously with top level staff and research assistance, will sharpen competition within the industry, and lead to broader product improvements in the utility writing tool field, it was announced by Jeffris.

Concentrate on Razors, Blades
Welsh emphasized that only the Eversharp writing instrument division was involved in this transaction.
"This move," Welsh said, "will enable the Eversharp management and personnel to concentrate their efforts and resources on further development of our very profitable shaving instrument division which markets the Eversharp-Schick and Eversharp Hydro-Magic Injector Razor and Blade products.

"Declining sales in our writing instrument division in recent years, coupled with increased costs of production and distribution, have led to a profitless operation," Welsh added. "This loss can be overcome by Parker with its solidly-established merchandising program which has proven it-.....

52-Year-Old Company
Eversharp was founded in 1905 as the Wahl Adding Machine Co. In 1915 Wahl purchased a controlling interest of the Eversharp Pencil Co. and began manufacturing pencils at 1800 Roscoe St., in Chicago. In 1917 the Boston Pen Co. was also purchased and moved to Chicago. The Wahl Co. had a five-story factory there and by 1923 was able to achieve a daily production of 50,000 pencils, 7,000 pens and 1,250,000 sticks of lead.

The adding machine portion of Wahl had been sold in 1919 to the Remington Typewriter Co. In 1940, the Wahl Co. became Eversharp, Inc. Extensive promotion of writing products was undertaken. Writing instruments made up Eversharp's entire business until December 1945, when it acquired working control of the Magazine Repeating Razor Co., manufacturers of the Schick Injector Razors and Blades. (One year later, it acquired all of the razor company.) In less than four years it fought its way from a very small segment to a major factor of the domestic razor market.

Enter Ballpoint Field
The ballpoint market was entered by Eversharp in 1945 with the purchase of American rights to the Biro (Argentina) ballpoint pen patents. Within two years, sales volume reached an all-time high. Currently, Eversharp's writing instrument division is manufacturing a well-rounded line of ballpoint pens and mechanical pencils.

U.S. manufacturing' is done by the Kimberly Corp., Culver City, Calif. (Kimberly manufactured pens for Eversharp exclusively beginning in 1947; in 1955, Eversharp acquired controlling stock in Kimberly.) A Canadian manufacturing plant is located in Toronto. There are also subsidiary companies in England and Australia. Eversharp, Inc., has main offices for both divisions in New York City. It recently sold its Climax Engine Division to the Waukesha Motor Co. Several notable "firsts" are claimed by Eversharp's writing instrument division: First in the development of the mechanical pencil; first mechanical pencil leads as used in today's pencils; first successful ball pen; first in the propel-repel-expel pencil mechanism, and the now-famous "Magic-Feed" principle.

Parker Founded in 1888
The Parker Pen Co, was founded in Janesville in 1888 by George S. Parker and has had an amazing growth, especially since 1920 when it completed its big factory building on Court street which has since become completely an office building with the building of the beautiful Arrow Park plant in 1951. Its products are fountain pens, ballpoint pens, desk sets, liquid lead and mechanical pencils, and inks. Product trade names include the 61, 51, 41 and 21 fountain pens, T-Ball Jotter, Liquid Lead pencil, Superchrome and Quink inks. Most recent developments of the company are the 61 capillary filling pen (1956) and the T-Ball Jotter nonskip ballpoint (1957).

World sales for the fiscal year ending Feb. 28, 1957, totaled $35,000,000. Earnings before taxes, for United States and Canadian companies only, were $3,394,171, or $2.08 per share, a 31 per cent increase in net earnings over the preceding year.Foreign subsidiaries are operated in Toronto, Canada; London, Dover and Nehaven, England; Hamilton, Bermuda; Capetown, Johannesburg and Durban, Union of South Africa; Paris, France; Salisbury, Southern Rhodesia and Mexico City, Mexico.

Domestic subsidiaries include the Trent Engineering Co., East Troy; Oilman Engineering and Manufacturing Corp., Janesville, and Parker Pen Service Inc., operating in eight U. S. cities.

Officers are: Kenneth Parker, chairman; Bruce M. Jeffris, president; Daniel Parker, executive vice president; Norman Byford,Philip Hull, Frank W. Matthay and Chester C. Holloway, vice presidents; John G. Mack, assistant vice president; G. Earl Best, secretary-treasurer; Alfred P. Diotte, assistant secretary; Helen A. Morrissey, assistant secretary; Robert E. Burmeister, assistant treasurer.

Over 50 per cent of Parker sales are derived from the export field. Parker pens are sold in all free countries of the world.

DECEMBER 4, 1957
Pen Companies Merger Rumored
NEW YORK (AP) — Officials of Eversharp Inc. had no immediate comment today on trade reports that the big pen and pencil manufacturer was considering a merger with Parker Pen Co, of Janesvllle, Wis. Rumors have been current in trade circles here that Parker Pen was interested in acquiring Eversharp, whose sales and earnings are down sharply from a year ago. Eversharp's profits for the six months ended Aug. 31 dropped to $525,428 from $1,170,302 in the like period last year.

The New York Times reported this morning that negotiations between the two concerns have been under way for some time and a decision on whether or not to merge is expected by New Year's.

Eversharp makes mechanical pencils and pencil leads, ballpoint pens and other writing instruments and accessories. It also manufactures safety razors and blades. Its Climax Engine Manufacturing Co. division produces internal combustion engines for use in oil drilling and farm irrigation systems.

Parker makes fountain pens, ball-point pens and mechanical pencils. In the six months ended Aug. 31 the Wisconsin company earned $582,000 compared to $569,000 in the same 1950 period. Parker's sales for the year ended Feb. 28 totaled $25,372,871.

 January 15, 1958
Frawley Heads Eversharp, Inc.
NEW YORK-Patrick J. Frawley Jr., was elected president, chief executive officer, and a director of Eversharp, Inc. Frawley founded the Paper Mate Pen Co. in 1949 and was president of that firm until it was sold to the Gillette Co. in November, 1956. His election is effective immediately. Frawley succeeds Fred J. Young [president of Eversharp since 1954], who resigned as president and chief executive officer in May 1957. Thomas J. Welsh, executive vice president, had been acting as chief executive officer since that time. Welsh will remain as executive vice president and chief executive officer. The writing instrument division of Eversharp recently was sold to Parker Pen Co., Janesville.

Walter Winchell - Man About Town
September 28, 1955
Headline: "Paper Mate sold to Gillette For $15,500,000"
Patrick Frawley's original investment (in the pen firm) was only $15,000 six years ago. He is 33 ... He was 27 when he started. A Nicaraguan, he joined the Canadian Air Force, then became a U.S. citizen.

By 1930 Patrick J. Frawley, Jr., born in Nicaragua in 1923, was living in San Francisco  at 771 34th Avenue) near the Presidio, where his Irish-born father was a merchant involved in import-export. His mother, Marie Therese Peugnet Frawley, though born in Nicaragua, had parents who were Irish and French.

The San Francisco city directory for 1945-46 lists the family living at 30 Entrada Ct. (several blocks east of Lake Merced).
While Patrick Jr. was general manager the D.J. Dalton exporting company at 268 Market, his father was running San Francisco Import and Export Co., Martinez Export and H.R. Hall and Co. All these exporters operated out of Suites 160 and 161 in the three-story Hansford Building at 268 Market Street on the Embarcadero in San Francisco; the interior of this building was destroyed by fire in 1947 and again in 1957. A few doors away, in Suite 141, other importers were carrying on business under the following names:
  • American Overseas Trading Co.; 
  • Gabuardi and Co. of California; 
  • International Company of America; 
  • International Mercantile Co.; and 
  • Majestic Fashions Co.
Adolfo and Luis Gabuardi were engaged in importing from Nicaragua and were nephews of Raul and Jorge Lacayo, with whom they lived in Los Angeles in 1930. Luis Gabuardi managed the import-export company in San Francisco; his brother was Adolfo, about whom the following news item appeared:

Bakersfield Californian, July 31, 1954 
SAN SALVADOR, El Salvador (UP)—The newspaper Diario Latina published a letter from one Adolfo J. Gabuardi challenging Nicaraguan President Anastasio Somoza to a pistol duel "to the death." The letter did not identify Gabuardi except by name, nor did it give any reason for the duel.

Also living at the Entrada residence was Patrick Jr.'s wife Geraldine (married 1944), as well as his sister Agnes, the company bookkeeper, and Louise.

Frawley's name appeared in former FBI agent William W. Turner's book, published by Ramparts Press, Power on the Right, chapter 10 of which was entitled "The American Security Council: Free Enterprise Wages the Cold War." Patrick Frawley was described as one of the executives of ASC's national strategy committee and also men;oned as a donor of  $100,000 in an award competition to the person who could write the best essay about the cold war.

He was the only son, born in the middle of four girls--all of whom first arrived in the U.S. in 1928. News articles that appeared at various times indicated that the parents left their children with a relative to be educated, while they themselves returned to their large estate at Managua, eventually left to their son Patrick, whose schooling in California had ceased when he was 16. At that time he chose to work with his father's coffee business. A sister married David Schindler and moved to Managua after her her divorce, taking with her all except her two elder sons. Another sister, married to John P. Seyer, remained in the U.S.

1 comment:

Unknown said...

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