Maybelline founder Tom Lyle Williams

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My name is Sharrie Williams, I am the author of The Maybelline Story and the Spirited Family Dynasty Behind It. My Great uncle Tom Lyle Williams founded The Maybelline Company in 1915 and owned and operated it until 1968 when he sold it to Plough Inc.
   I have written a never-before-told story that spans a 100 years and introduces a 19 year old boy who pulled himself up from poverty to become something he never dreamed possible.
 The origins of the Maybelline Co. are simple: My great uncle Tom Lyle Williams, witnessed his sister Mabel, applying a mixture of burnt cork and Vaseline to her eyebrows and eyelashes and out of that discovery, formulated a product called Maybelline, named in honor of his sister Mabel, who gave him the idea.
 Stay tuned tomorrow when Harris A. Neil Jr continues his "Chicago's Maybelline"  with personal letters never before seen..

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....

Maybelline founder, Tom Lyle Williams regrets not bringing in the next generation to protect the Company, like Estee' Lauder did with her family

Alan A. Ragland
 and Sharrie Willilams
Excerpted from a letter from Alan A. Ragland, (Rags Ragland's son.)  Alan also wrote the preface for The Maybelline Story and the Spirited Family Dynasty Behind It. Copyrighted 2010, Bettie Youngs Books.


The Maybelline Company was acquired by Plough, Inc. effective 2/28/68.  Negotiations were currently going on with American Cyanamid, Revlon, and Kimberly Clark.  Rags Ragland, The Marketing genius Tom Lyle hired in in 1933, had owned Plough stock and was the unique influence in recommending Plough as a suitor to the Maybelline Co.  Ragland's reasoning was that he knew that Plough was in a solid enough position to buy the Maybelline and also due to the leverage factor, he knew that Plough would be a preferred candidate.  Plough was in a far superior leveraged condition in that the company had much fewer shares outstanding.


During the 11th hour of negotiations, Ragland suggested to Tom Lyle's son Tom Jr., that Maybelline include Plough in the bidding:  Tom's initial reaction was "Rags, they do not have the money"... Ragland's response was, "Yes, they do Tom. I know their circumstances, as I have been a stockholder for years and know they are cash heavy."  Tom called Abe Plough and the next day Abe Plough and Lanny Smith flew up with their executive staff in their private jet from Memphis to talk to Maybelline in Chicago ... post haste!


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.


In 1973 Schering, the 2nd largest pharmaceutical company in the world and Plough merged.  Each of the stockholder's received 1.32 shares of Schering for every share of of Plough that they had owned.




Excerpt from a letter written by Tom Lyle to Rags Ragland in Dec. of 1967 when Maybelline was sold to Plough Inc. explaining why Tom Lyle sold the company and his sadness in not preparing the younger generation of the family to carry on after him.







I will be posting the letters from Harris A. Neil next week so stay tuned for more priceless Maybelline History.

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...

Maybelline - Plough Merger in 1967 starts off as a Nightmare!!!

Harris A. Neil Jr. with his
friend DeAnne

6. THE PLOUGH MERGER
By Harris A. Neil Jr.

The morning of Saturday, October 7, 1967 began normally enough at our house. My wife and I got our two boys, ages 4 and 2, down for breakfast and set about putting it on the table. Then I went to pick up the Chicago Tribune from the front lawn, for something to read while we were eating. After a while I got to the Business Section, and down at the lower half of the first page was a headline—

Maybelline and Plough Agree to Merger Plan
102.3 Millions Are Involved

This was the first I had heard of the merger, and I didn't know how to take it. First I felt left out, wondering why I hadn't been in on this news. Then it went down hill from there, and finally I did something I’d never done before: I picked up the phone and called Tom Jr. at his home.
Despite what we now know was a marathon work schedule to get the merger complete, Tom couldn't have been more concerned or helpful in our conversation. He took half an hour or so and helped me understand why the lead-up to the announcement had to be held in secrecy. After our discussion he had me fully on board with a new perspective, and that helped a lot. Incidentally, that was the last time I either talked with or saw Tom. He retired immediately.

Monday morning came, and walking in to work was like entering a morgue. Everyone was in a daze, seeking information, and nobody could help much. I did get some insight from John Cole, and that helped. The biggest shock was that Tom Jr., Rags Ragland and Dorothy Molander were no longer with the company, they had all retired. The four executive offices now had only two occupants, John Cole and myself. Tom’s and Rags’s offices sat vacant as a reminder of the event. It was spooky.

As days went on, we began to get visits from various Plough executives and managers, and even Abe Plough himself. Most of my own contact was with their Production Vice President, Joe Sternberger and his staff. In particular, the Industrial Engineering Department group of six or so showed up regularly beginning almost at once, and began asking questions to gain quick knowledge of the Maybelline operation. This took time from my other duties and was redundant, but it went with the territory.

Somewhere in this time period Mr. Plough made his first visit to the company with Joe Sternberger. Since I was the youngest and most expendable member of our management group, I fell into the job of picking them up at O’Hare field and bringing them downtown to their hotel or to the company. This became a repeating pattern, whenever Mr. Plough came to town I’d pick him up with whomever he was with on that trip. It could be Joe, or Lanny Smith, or just about any of his key executives. I began to dread these runs to the airport.

Mr. Plough was old even then, and boasted that he had reached the age where he could draw full salary and could also collect full Social Security! He treated me with almost mock respect, calling me “Mistah Neil.” I cringed when I heard that, because he would then follow up with a work-related question, to which of course he already knew the answer. All this went on while I was driving in Chicago traffic, getting those people either downtown or to the building on Ridge Avenue. By some miracle we always made it.
There was so much going on in this early period that it’s hard to sort it out, but one thing that they saw immediately was the woeful lack of space we were working in. Also, in the Plough operation they had a regional distribution system for order shipment, spread across the country. As I remember it, they had distribution centers in Cartaret, New Jersey; Miami, Florida; Memphis, Tennessee; LaMirada, California; and in Alsip, Illinois.

To integrate the Maybelline product line into this decentralized system, Joe took the helm and immediately had us put a full second shift, bolstering the small night shift we had at the time. Plough also found and leased a warehouse space near the Ridge facility, which we called “Wolcott” after the street location. This became the finished goods warehouse and shipping point. The idea was to ship
merchandise not directly to customers but to the regional distribution points and have them handle customer shipments.

The Wolcott facility was a rather quiet setting compared to the hectic pace that was going on at the Ridge location. Herb Zimmerman, who succeeded Ches Haines, when he retired, was more or less in charge over there, continuing as Traffic Manager. I got over there at times too, in the course of my job.

One of the things that developed in this arrangement was that Rags Ragland, would visit over at Wolcott.  Of course he was now in retirement, but he bled Maybelline and it hadn't let go of him yet, nor he of the company. This also put him into the changing picture, and he didn't like what he saw or heard any more than the rest of us. However, he handled his observations always in the context of his investment, and that part of it was moving along very well.

By the spring of 1968 I came to the personal conclusion that I was not fitting into the Plough template at all, and felt very out of place. It was mutual, and finally one day I made a mistake and had a red-faced scene with one of the Industrial Engineers who had been bugging me. Joe got wind of it and called me into John Cole’s office for a “woodshed” session. He raked me over the coals pretty well, but part of it was positive, suggesting that I look into training courses to tame my temper. This I took, and then I surprised myself and returned Joe’s favor. I thanked him for his thoughts, and suggested to him that if he and Plough, Inc., continued to come at the Maybelline operation in the rough-shod way they were going, “The wheels would fall off.” That ended our discussion, and I don’t remember ever seeing Joe Sternberger again.

Truth be known, I was already searching a way to leave the company, and soon made a connection. My wife and I decided that if we had to make a move we’d make it a big move, and relocate to Colorado. This we did, to pursue a franchise business with an outlet in Colorado Springs, so I submitted my resignation to John Cole.

We left Maybelline and Chicago in August, 1968 to begin our new life. After a few setbacks things smoothed out for us, and the memories of Maybelline and all those wonderful people began to fade, but not altogether.

In early 1968, Dun and Bradstreet listed the Maybelline management group (as of 1967) in its “Million Dollar Directory,” a compilation of major U. S. companies. They followed later that year with a “September Cumulative Supplement” that happened to show the lineup after the Plough merger. Here is how those two listings looked:

PRE-MERGER
Thomas Lyle Williams Pr. & Tr.
Thomas L Williams Jr Exec VP & Sec
John W Cole VP Pur
Harold W Ragland VP Sales
Harris A Neil Jr Prod
Mary Ann Anderson Adv

POST-MERGER
Abe Plough Pr
Harry B Solmson Exec VP
R Lee Jenkins VP
John W Cole VP Pur
Herbert H Bunchman Sec
Sam B Hollis Tr
Harris A Neil Jr Prod
Mary Ann Anderson Adv

This is another way of expressing the sad story that had unfolded, even that early in the merger. There would be more sadness. 


1915 -1967



Maybelline's 1966 "ULTRA" products, reached out to the booming teenage market, before the Plough Merger.


After the Plough merger Maybelline-Plough  incorporated "ULTRA LASH" into a mini-make-up kit with new colors and products.  Up until 1970, "Ultra Lash" had been the best selling mascara in the world.

Maybelline Great Lash was born in 1971 and is still the number one mascara of all time.