Page:The Gillette Blade, 1918-03.pdf/7

Rh President of the Gillette Safety Razor Company

(Continued from "The Gillette Blade," February 1918)

OLLOWING these preliminary steps, a regular form of agreement embodying the terms agreed upon was drawn up in the office of Brandeis, Dunbar & Nutter, and this trust agreement with the bonds that were issued was deposited with the Federal Trust Company. From that time on the Company has never again been in financial trouble, and the only outside money the Company ever received was the first $5000 and the $60,000 invested by Mr. Joyce. It has never borrowed a dollar, and the assets as they exist today and all the dividends that have been paid have been the accumulations of its own profits.

Soon after Mr. Joyce came into the Company they increased the capital stock of the Company from $500,000 to $650,000. This issue was made to compensate me for my foreign patents, which I had retained at the time the first company was formed; but I only received 8000 shares out of the 15,000 shares issued, the balance was absorbed by others—without cost to them.

When we came to the question of marketing the razor, Mr. Joyce and Mr. Holloway thought it would be best to turn over this branch of our business to others who had had experience,—we to receive a fixed price for our razors and blades, and confine our efforts to manufacturing. Pursuant to this plan an exclusive right was given to two young men, named respectively Townsend and Hunt, who opened offices in Chicago under the name of Gillette Sales Company. They had only $3000 capital which they borrowed, and they never required more, for out of their profits from sales they were able to take care of all advertising and expenses incident to marketing the razor; and, to make a long story short, the Company bought them out at a cost of $300,000 within three years from date of signing contract with them.

In 1903 I was still with the Crown Cork & Seal Company, and they were urging me to go to England to establish a factory for them in London. I was receiving $6000 per year, but I did not wish to go, and urged the Razor Company to make a salaried position for me, so I might devote my time to the razor. I was president of the Company, but those in control refused to meet my wishes, giving as a reason the need of every dollar for development of the business. I sailed for England January 27th, 1904, taking with me my family and all my household furniture. Before leaving, I resigned as President, but was retained on the Board. It looked then as though I would be obliged to remain permanently abroad. In July of that year I learned that the Company was selling all the goods it could make and that it was about to enter into a contract to turn over all its foreign interests on a royalty basis. They were to receive no money,