Maybelline founder Tom Lyle Williams

Showing posts with label Harris A Neil Jr. Show all posts
Showing posts with label Harris A Neil Jr. Show all posts

GAME ON! Maybelline's tremendous success in the 1960s By Harris A. Neil Jr.

Thus, the Maybelline environment, both internal and external, became the stage of activity as I joined the company in early 1959.

Very quickly John Cole introduced me around and toured the entire facility with me, from stem to stern. One of the first things I recall in looking back is Dorothy Molander asking me how often I wanted to be paid. How often? Yes, she said, some of us like a weekly check, some twice monthly, whatever you’d like. I had never heard of anything like that before or since, and I quickly opted for a weekly check. After all, I was broke.

Right after I started our Assembly Supervisor, Hazel Peterson, retired. It was just a coincidence but it put that part of the operation in a new and untested direction. Even though I was new, John asked me to “be the eyes and ears” of what would become the Production Department.

All of this moved along while the brand-new “Magic Mascara” was giving all facets of the company plenty of challenges. The several suppliers of packaging and product components were on maximum output, and the private label contractor came on line very quickly after the aborted start on Maybelline premises. Juluis Wagman, Chief Chemist, had set this up across town, and a small private-label outfit called Munk Chemical Company. This arrangement not only worked for the moment, the relationship between Munk and Maybelline grew over the years to encompass many new products. You name it, if it was a liquid product Munk was in the picture. As Maybelline grew, so did Munk.

New products began to roll out in rapid succession. It seemed that we’d just about catch up to volume from one blockbuster and another one, even bigger, was coming down
 the pipeline.


 If we could single one over the others, it would have to be Ultra-Lash Mascara, with a newer applicator brush and formulation. We chased after that one for months before volume leveled out, at a very high volume that never went down. It had to be the prime money-maker for the company from roll-out to the Plough merger and beyond.

(NOTE: The “money-maker” reference above is speculation only. I was not privy to the company’s finances except to track direct labor production costs.)

As this volume grew and new products came along, Tom Lyle Williams Jr., John and Harold “Rags” Ragland, Sales Vice President, worked together in their respective roles to improve the appearance and form of product packaging into a new, uniform appearance. Simplified, the whole product line (except for most Introductory sizes) soon went to market blister-packed on bright-white product cards, either in direct shipments or shipments coupled with carousel display stands that Rags had developed.

 They were called “Eye Fashion Centers”and they included a full array of the Maybelline line, insuring that retailers had a complete, balanced line of products.

This growth also required changes in the internal operation. Where packages had been mostly hand-assembled in all history, now blister packaging quickly became the dominant method. The equipment available for this new packaging setup was quite new, because the concept itself was just moving into the marketplace. It applied to many, many product lines, not merely cosmetics. Such other lines as writing instruments, batteries, shaving products, electronics, on and on, it was the way to go on all retail fronts.

Eventually, in order to get maximum production out of our square footage, we ended up after several generations of machinery, with a small, one-man company who was starting with a new and interesting machine. The company became Alloyd, Incorporated, and the machine produced 60 packages a minute. When we worked into this new machine we found in some cases that we could make “two-up” dies, thus increasing production to over 100 packages per minute. This advancement bought time for the company in the limited and unchanging space that production occupied in the building.

Even with these changes and improvements, time and space were both running out for the company. By 1966 it became painfully obvious that we had come close to outgrowing the “cracker box.” In early 1967 as I recall, Tom located and purchased a plot of suitable land on Algonquin Road outside Chicago, beyond O’Hare Field. He also engaged an architectural firm, Rabig and Ramp, to begin design work and develop preliminary plans for a new facility. Also, John Cole made contact with selected commercial realty companies to scour the existing inventory of properties for a possible facility.

I remember going with John and a real estate agent to a building in Chicago that had beenvacated by Kitchens of Sara Lee when they moved to their own new facility in suburban Deerfield. It was obvious that Sara Lee had left that building in the same predicament that was facing Maybelline. It had been subdivided, repurposed, overworked, and just plain worn out. When John and I left that place we never talked about it again. There wasn't anything to talk about, really.

As this period of growth moved along, all of our jobs moved with it. Even without formal guidelines, it was the natural position of the company to keep staffing “thin,” with no bureaucratic build-up. A good example was with Rags, who managed the national sales and marketing function with only one assistant, Carle Rollins, and an executive secretary, Gladys Johnson. John’s staff consisted of myself, and an excellent administrative and inventory person named Joan Lundell. In turn, Joan had one clerical helper.


In my case, my job began to “transition” to accommodate both the company’s growth and also new tasks that became necessary with that growth. I remember on day, back in 1961, when I got a carbon copy of a letter John had written to a supplier. In it he referred to me as our “Production Manager.” That was new to me but I liked it, and that became my title from then on.

After Maybelline-Plough merger, Abe Plough failed to carry out his promise to Tom Lyle Williams and his commitment to Maybelline employees.

According to a letter from Tom Lyle Williams Jr., to all Maybelline employees, dated October 6,1967:

"We hardly need to say that one of the paramount considerations that caused us to select Plough, Inc., instead of other concerns, was their agreement to continue to operate our business in the Chicago area and thus assure your ability to continue with the Company if you with." http://www.maybellinebook.com/2013/05/original-newspaper-articles-and-letters.html

After the merger was a done deal, Abe Plough, reniged on his promise to Tom Lyle Williams and moved Maybelline to Memphis.  This caused most of the original Maybelline employees, including Harris A. Neil Jr., to resign and find new employment.  The loss of the tight knit group of employees that ran Maybelline so well, caused "Plough's, Maybelline Company," to tail spin, as far as production and distribution were concerned.  

Tom Lyle Williams felt a personal obligation to help his devoted employees, (who had been promised their job's would continue after the merger,) to have a fair severance pay and help them until they relocated.




  The letter outlined an employee gift that T. L. had put together, whereby each employee would receive a gift of $1000 tax free for each year of employment, from date of hire to December 31, 1967.






The letter from Rags Ragland gives some insight into the problems Plough faced after the the original Maybelline executives were no longer involved. 


Stay tuned  as Harris A. Neil Jr.'s, "Chicago's Maybelline" continues...

The new face of Maybelline in 1967 - Abe Plough


 Abe Plough built a business empire, (Plough Inc.)
  which included drugs, cosmetics, (Maybelline) and St. Joseph’s Aspirin.  His company merged with Schering in 1971, forming one of the largest drug companies in the world, (Schering Plough.)

 It was during the Schering Plough era that Great Lash was born and is still the number 1 mascara in the world.

Here are the original letters between Abe Plough and his new employees at the Maybelline Company, after the Maybelline - Plough merger.

Letters most graciously given to me by Maybelline Executive
Harris A. Neil Jr.





















 As a teenager, Abe Plough was drawn to the drug business, working in a local drug store.  In 1908, he started the Plough Chemical Company in a room above his father’s store.  Plough created an antiseptic healing oil that he claimed was “a sure cure for any ill of man or beast.”  From this modest beginning, Plough built a business empire.

Stay tuned tomorrow for more letters and newspaper clippings from  "Maybelline Chicago, 1915 -1968"
By Harris A. Neil Jr.

In 1967 the effectual buyout of the Maybelline company was $132.3M! - That would be $923,076,923.08 today.


Harris A. Neil  Jr. yearbook
 picture 1952, Michigan State
This week I will be posting the original newspaper articles and letters explaining the Merger between Maybelline and Plough Inc., (most graciously given to me by Maybelline Executive Harris A. Neil Jr.)  I can assure you that Business or History Students will appreciate the magnitude of these documents.  Stay tuned as this incredible merger unfolds through priceless communications between 1968 through 1989.


Letter to Maybelline Co. Employees from Tom Lyle Williams Jr., dated October 6, 1967





Article in the Chicago Tribune, Dated Saturday, Oct. 7, 1967.

 MAYBELLINE and PLOUGH AGREE TO MERGER PLAN

 102.3 Million  


Article in the Wall Street Journal October 6, 1967

Plough was quickly and shrewdly chosen as the suitor:  They offered a minimum of  $100M  and there was a period of grace, whereupon the stock would float, then a specific day, which was 2/28/68 that the Plough stock price would be "pegged" for the official exchange.  On 2/28/68 the price of Plough had rallied so dramatically that the effectual buyout of the Maybelline company was now $132.3M!  Yes, it was leverage that caused this!  Demand plus fewer shares caused a stock breakout, which is a scenario seen on Wall Street each day.

$132,000,000 of 1967 dollars would be worth: $923,076,923.08 in 2013



Stay tuned tomorrow as the drama unfolds in letters from Abe Plough to his new employees at Maybelline.





Memorial Day Tribute to our Maybelline Family Veterans, along with special comments from NICHE magazine, Viva Glam Magazine writer Avijah Shaye, and @laurie_serenkin. Also my upcoming Blog Talk Radio Interview Wed on The New Hot Kokoa Show.



Memorial Day Memories from Maybelline Family Veterans.

Veteran from the Great War, WW 1, Preston Williams.

UPCOMING EVENTS....

I will be be discussing my book The Maybelline Story on the The new Hot Kokoa show Wednesday, May 29th at 6:30 EST and 3:30 Pacific time on Blog Talk Radio.  Be sure to tune in and hear what it's all about.

Here are a few nice comments from my friends on Facebook, Twitter and email.

Facebook...

VIVA GLAM MAGAZINE
Avijah Shaye 
        Here is the #VivaGlamMag article I wrote about Sharrie Williams! The fabulous lady I was telling you about. You two should meet! And I can't wait to write one about you too! http://vivaglammagazine.com/culture/people-society/3897-interview-with-sharrie-williams-maybelline-heiress.html

NICHE magazine

Celebrity NICHE Columnist Sharrie Williams

Sharrie WilliamsIt’s a beautiful Spring cover and my column is great. I posted it today on my blog. It is such fun being a Celebrity Columnist in such a classy magazine. Thanks so much for including me… Sharrie Williams (Maybelline Memoirs column)
Celebrity columnist Sharrie Williams shared a few nice words about writing for NICHE magazine... thought we would share!
http://www.nichemagazine.ca/news/buzz-about-niche/sharrie-williams

Twitter...


Laurie Serenkin

@laurie_serenkin 

Professional Makeup Artist for many luxury brands. I am constantly in search of all the latest in beauty and skincare..Beauty blogs at lserenkin@wordpress.com
@sharriewilliams loved #TheMaybellineStory . Thoroughly enjoyed. Evelyn, #narcissistic but amazing woman before her time.



Email...

GREAT BOOK!!
Good EEEEEEvening Sharrie..What brought me to your book was my looking for info on William Haines and Jerome Zipkin. Your book came up under those names and it looked interesting so I bought it.....It reminded me of the Great Gatsby.     Jan 



Stay tuned tomorrow as my series with Harris A. Neil Jr. continues with personal documents and letters during the Maybelline - Plough Merger in 1967....

The Maybelline Company operated “beneath the radar”


9.  END NOTES AND FILE MATERIALS
 By Harris A. Neil Jr.

This closing section contains miscellaneous materials from my files that relate to the previous recollections. They are in more or less chronological order, unless I missed a date here or there.

All of this material covers events beginning with the Plough merger, with nothing prior. I submit that this is because the company operated “beneath the radar” before the merger, keeping a low profile. This was a shadow of T. L.’s character; just like him, the company didn't bring attention to itself.

The material following is not captioned since most of it stands by itself; however, here are a few comments, in sequence to the sheets included:  The first four sheets announce the merger, followed by sheets that relate to that event;

There are two sheets that reflect Plough’s issuance of a “Qualified Stock Option” to certain key personnel of Maybelline. Very shortly after its issuance in early 1968, the stock effectively split 2-for-1. It’s all academic, because knowing the group receiving the option I don’t think anybody survived to exercise any of it, or at most only the first annual increment;

Then there’s a note from the First National Bank of Chicago from early 1969. It contained the second installment of T. L.’s gift (Alas, I must have lost the first announcement from mid-1968.);

Two copies of letters Rags Ragland wrote to me follow. Even though they’re over five years apart, they appear chronologically, because I have no other material from the intervening years;


The obituary for Abe Plough follows, source and date unknown. Doing the math from his life story, it should have been in 1984;





Finally, there are two articles covering Schering-Plough’s intent to sell Maybelline.



Though there are no documents in the file, Mayelline was sold to a investment group after Schering-Plough.
This was another step leading to the eventual home that Maybelline would find with the L’Oreal people, where I hope they live happily ever after!


Today Schering-Plough is known as MERCK.

Stay tuned for the actual documents to be posted on The Maybelline Blog.

After the sale of the Maybelline Company, Tom Lyle Williams donates the Maybelline Building and 100 million dollars to The Salvation Army and CARE


8. LINGERING TOUCHES
 By Harris A. Neil Jr.


And that’s how things stood as the family and I moved to Colorado. It could have been the end of the story, but the bridge still spanned the miles, and contacts continued.

Some of us exchanged notes to stay in touch. I remember a nice note from our receptionist, Mary Wennerstrand, and another one from Ed Roessler, our Receiving and Warehouse Manager.

Then there was Rags. He sent me two very warm and personal notes over a span of several years, and I treasure them. They show up in the end notes following this section.

In addition, I had and made several phone calls to various people. Particularly I remember one call from Herb Zimmerman in February, 1969. He was quite excited, and told me that there had been a meeting that day in T. L.’s old office (the “Gold Room,” called that because of its gold leaf ceiling and appointments.) The Plough people ran the meeting, and it was apparently a “group firing” of most of the remaining key Maybelline group. John Cole was among them, and that hit me particularly hard. However, Herb survived, along with Julius Wagman and Mary Ann Anderson.

At Christmas time in 1969, the family and I went back to Chicago for a holiday visit with our relatives, there and in Michigan. During our stay, Mary Ann Anderson (now Chartoc, she had gotten married) put a small gathering together in our honor at their lake-front condo on Chicago’s North Side. It was she, her husband Shep, Dorothy Molander, Julius Wagman and his wife, and me and my wife. We had a quiet dinner and a nice visit, maybe just a bit on the somber side.


That visit in 1969 was my last contact with any of the Maybelline people. In later visits to Chicago I drove by the Ridge Avenue building, which had become a Salvation Army retail store. That was probably because T. L. had donated the building to them, tenants and all! Interestingly enough, in the days after his donation one of the tenants was Plough, Inc.! (Nowadays if you go to Google Street View, the Clark Street frontage is decorated with large awnings that identify it as “Chicago Furniture Liquidators.”)

So that was that—except for the memories. Only some of them are here in these recollections, there are just too many to fit all of them in. All of them are “baked in the pie,” and they won’t go away.

After that shaky start, it was one wonderful ride!





Stay tuned tomorrow for final thoughts from Harris A. Neil Jr.

Maybelline's generous gift to all it's employees received absolutely no notice or media attention.


7. THE GIFT
 By Harris A. Neil Jr.
Tom Lyle Williams at his
 home in Bel Air California,
  May, 1968 click to enlarge


On a Saturday in late May, 1968 all eligible Maybelline employees received a letter by registered mail with an announcement—and a check. The announcement was in a letter signed by T. L., and routed through the First National Bank of Chicago, Trust Department.  “It outlined an employee gift that T. L. had put together, whereby each employee would receive a gift of $1000 tax free for each year of employment, from date of hire to December 31, 1967.”

The first year was not in the count, possibly to consider the recent influx of new people in the Plough era. So the count began one year after a person’s date of hire and ended on January 31, 1967.  In further detail, the announcement explained that, under current IRS Regulations, there was a limit of $3000 allowed to both parties tax free, so the total gift, if large enough, would be divided into annual installments of $3000 each. The first check, as large as $3000, was included with the announcement as the first or total payment, depending on eligibility.

That Monday morning the joy was everywhere, people cried and hugged each other, and it was hard to get any work done. Over a short time the word got out to the Plough group as they visited Chicago, and their reaction was one of “sour grapes.” They already expressed views that we were overpaid as a group, and now this! That didn't dampen our collective joy; it was something they’d just have to get over.

It’s hard to relate the impact of this gift across the Maybelline work group. The amount, $1000 for each year of service, applied to every employ without regard to pay level or position with the company. Thus, you could say that it helped the lower-placed person more than a more advanced supervisor or manager. Also, there was no upper eligibility as to time of employment, so a more veteran employee was in for a larger share. In the extreme, I believe this
meant that the longest-serving employee came in for around $33,000, in equal payments of $3000 annually with a final finishing payment to cover all eligible time.

How much was this gift worth, in total? I have no idea, except that it ran into many thousands of dollars. Despite the magnitude of T. L.’s generosity, the gift got absolutely no notice. It escaped media attention, which was very much T. L.’s nature, and the way he would want it.

Almost more than the monetary value of the gift, it gave every person receiving it a big morale boost right when they needed it. Soon enough, the company would be moved physically, first to Memphis then to North Little Rock, Arkansas. To my knowledge, only two people from the “Old Maybelline” group made it to North Little Rock. It was over.  

Stay tuned tomorrow as Harris A. Niel Jr. continues...