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SCORE Ventura County Chapter will present a small business event from 6 to 9 p.m. Thurs., March 29 at the Grant Brimhall Library, 1401 E. Janss Road, Thousand Oaks.

The topic, “ Financing for Your Business,” will cover small business startup, micro- mini loans, alternative financing, angel loans, operating loans for existing businesses, loans for growing business and Small Business Administration-backed loans.

Panelists will be Patrick Rodrigues, economic development specialist, SBA; Gonzalo Fernandez, SBA group manager, First California; David Sussman, founder and CEO, Valcor; Robert Holguin, director/business services, VEDC; Michael Panesis, president-central division, Tech Coast Angels; Dennis Bays, senior vice president, AeroFund; and Bob Machon, SCORE moderator.

SCORE is affiliated with the SBA and provides free business counseling and low-cost workshops.

For more information, call ( 805) 204- 6022, emailinfo@scoreventura.org, or visit www.ventura.score.org.

By Stephen Troy

In the late 20th century the name Charles R. Schwab, became synonymous with discount Stock trading. However, some 70 years before young Charles (Chuck)Schwab hit Wall Street, it was another Schwab, Charles M. who was making headlines. Charles M. Schwab (no relation) started his career at the Carnegie Steel Mills in the 1880’s. By 1897 Schwab had caught the eye of Andrew Carnegie and worked his way up the ladder becoming, at 35, the president of the largest steel company in America. It was he, as president of Carnegie Steel, that he arranged the secret sale of Carnegie steel to the famous banker, J.P. Morgan. The sale made Schwab one of the richest men in America.

Morgan was so impressed with young Schwab that he made him the president of the world’s first billion dollar corporation, U.S. Steel. The partnership between Morgan and Carnegie didn’t last long. Two years into running Morgan’s U.S. Steel Company, Schwab quit to create a rival company, Bethlehem Steel. It was here Schwab out-foxed America’s premier banker. It was Schwab’s little Bethlehem Steel that managed to get the patent rights to the “H”” Beam. This single invention ushered in the age of the skyscraper, making Bethlehem Steel one of America’s most successful companies, towering over the most revered banker of all times, J.P. Morgan.

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Stephen Troy

Author Business Biographies

By Stephen Troy

EXTRA, EXTRA read all about it. Henry Heinz bankrupt and arrested for fraud!  This sounds preposterous today, doesn’t it?  It’s not the type of headline you would expect to see about the owner of one of the most famous food brands in the world. After all, today in 2012, Heinz is an international brand known around the world for its great food products and dazzling success. Although H.J Heinz Company has been around for over 135 years, it was not Henry’s first company. Henry started out in the business world in 1869 opening another company, Heinz and Nobel, teaming up with a friend L. Clarence Nobel to make horseradish. Horseradish was a popular, but labor intensive product of the day. The young U.S. economy was expanding so quickly that Heinz and Nobel  found themselves riding the economic wave to riches, producing several other  time saving prepared foods for the over worked wary housewife.  Heinz and his partner’s early success helped them expand rapidly; opening warehouses in multiple cities to insure their products were close enough to their customers to insure freshness. Heinz and Noble took a novel approach in that day by even storing grocer’s own products in one of the nearby Heinz and Nobel warehouses so they could deliver at a moment’s notice. This practice ensured that stores shelves were stocked with only the finest and freshest of Heinz foods for the appreciative customer.

It was an amazing growth story for such a young company. Unfortunately it wasn’t to last. Just four short years after its founding Heinz and Nobel, with so much promise, Heinz and Nobel found itself smack in the middle of the panic of 1873. The bank panic of 1873 was a catastrophic event that ravaged the U.S. economy. Banks collapsed and closed, credit dried up, citizens lost their farms, houses and businesses.  The United States was brought to its knees. Eighteen thousand businesses failed and unemployment hit 15%. Families lost their farms, houses and jobs. Heinz and Nobel was no exception. With bank lending all dried up, and all their capital tied up in warehouses and merchandise, holding out as long as they could Heinz and Nobel found itself on the doorstep of bankruptcy as well.  By 1875 it was all over for Heinz and Nobel. The partners individually were both also headed towards personal bankruptcy. While Henry’s partners panicked and abandoned the company, Henry stayed to protect the merchandise of his customers from looting and foreclosure. Heinz didn’t want customer’s merchandise which they owned and he was only storing to get tied up with creditors looking for their money. Henry quickly went into action moving customer’s goods out of his warehouses to locations safely away from the hands of his creditors. Unfortunately for Henry, his customers didn’t see his true intentions. Panicking and convinced that Henry was running off with their product they called the police. Convinced Heinz was running, the merchants had Henry arrested for fraud. It took some fast talking, but Henry was eventually  released and was able to convince his customers that he was only trying to protect their goods, not abscond with them. Out of jail, but not out of debt, poor Henry was still forced into bankruptcy. He did however keep a detailed log of everyone he owed money to.  He wanted to make sure he could pay them back with interest when he was back on his feet. This was something he was able to do when he found lasting success with H.J. Heinz and Company in 1888.

The panic of 1873 finally came to an end in 1879.  Henry with his talents and his reputation for honesty and fairness in tack was ready to try again. This time it was going to be a family business with him having supreme control. With the help of his father, who had also gone bankrupt because of the panic, his brothers and other relatives, Henry started the now famous H.J. Heinz Company. Henry’s Company brought many improvements to the food industry.  H.J. Heinz was the first to automate with an assembly line years before another Henry, Henry Ford. Heinz was also the first to move factory production next to farms to insure his product was at the peak of freshness before going into jars and bottles;  and of course there was the clear glass jar. While others manufacturers used dark glass to hide their inferior goods, Henry insisted on clear jars for his products so the consumer could see its purity

There were to be more economic panics in Henry’s future, but this time he was prepared and in control. Oh, and if you are wondering what that famous 57 stands for, it’s his wife’s lucky number 5 and his lucky number 7.  The numbers had nothing to do with the actual number of varieties he had at the time. He copied the idea from a clever billboard he saw advertising 29 varieties of shoes. 

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Stephen Troy

Author Business Biographies

By Stephen Troy

Most of you probably know Aaron Burr. Statesman, Vice President, and Continental Soldier. He is most famous for killing Alexander Hamilton in a duel in 1804.  You might remember he was immortalized in a “Got Milk” commercial a few years ago.

Most people forget that our founding fathers were also great business man. Aaron Burr was no exception. His genius and rivalry with Alexander Hamilton gave us a very large and enduring financial institution.

Back in 1790’s Aaron Burr wanted to open a bank and compete with Mr. Hamilton’s Bank of New York. The problem Burr faced was Hamilton held a legal monopoly on banking in New York. Burr was not deterred. Through a loop hole that allowed utilities to take deposits and deploy capital Burr seized this opportunity to start the Manhattan Water Company to supply water to New York residence. The Manhattan Water Company quickly grew and after some time and lobbying by Burr, was allowed to convert to a bank.

Over the years the Manhattan water company became the Manhattan National Bank. Eventually it merged with the Chase National Bank to become the Chase Manhattan bank. You know it today under its new merged name JP Morgan Chase. This old old bank has never forgotten its roots.

If you look at your Chase credit card, your Chase checks or the front of a JP Morgan Chase Bank you will see an octagonal shape. That shape happens to be a drawing of a wooden water pipe. The kind they used in the 1790’s to transport water for Aaron Burrs Manhattan Water Company. 

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Stephen Troy

Author Business Biographies

By Stephen Troy

The name Woolworths is a corporate name that most likely is forgotten in history. That is unless you are over 40. Even then it’s a faint image of a simple dime store that seemed to lose its way. F.W. Woolworth Co. with its distinctive, red and gold store front closed its last store in the US in 1997. For over 100 years Woolworths and Franks retailing empire was a fixture in most every U.S. city in the nation. Their name recognition was as high if not higher then; Coke, Nike, McDonalds and Starbucks.

The story of Frank Woolworth and the Woolworth Empire began in a small hardware store in Watertown, NY. Frank was an eager stock clerk that had a talent for creating merchandise displays. It didn’t hurt that he was willing to work for free just to learn the business. Today its very common to display merchandise in an attractive manner before the customer. In Woolworths day it was unheard of. When customers wanted something it was the store clerk who would go behind the counter and get it. That method meant some merchandise didn’t move very quickly. To get rid of excess stock the store owner filled a table with interesting items and priced them for 5 cents. Within a day the table was empty to the delight of the store owner. This went on for weeks until the fad wore off. Never the less Frank was hooked on retailing. In particular 5 cent retailing.

Eventually Frank convinced his boss to sell him $300 of merchandise on credit. All of which could be sold for 5 cents and still make a handsome profit. With a full suitcase of wares he boarded a train to Utica NY to open his first store. With limited funds he rented a vacant shop on a side street  where he papered the windows while he set up inside. On opening day he did well. It was the subsequent days that sales continued to fall off until sales were barely a trickle. Utica wasn’t very impressed with young Franks method of selling. After little more than a year Frank had to admit his first store was a miserable  failure.

Frank boarded a train back to Watertown with the goods he had left and took his job back at the old hardware store. Like every other entrepreneur before and after he had the bug. It was only a few months  before he wanted to try again. Again with  a suitcase full of wares he boarded the train for the second time. This time he was headed to Lancaster Pennsylvania. This time he rented his shop on the main street in town. Frank was busy setting up and printing flyers and ad’s announcing a special kind of store. Even signs on the windows announced something exciting was to come. Frank spent days arranging the tables and decorating the windows. He was sure the idea of having the customer touch and select the merchandise for just 5 cents was going to be a hit this time. When opening day came there was a line at the door waiting to enter. By the day’s end young frank sold $121 worth of 5 cent items. This store was surly going to be a success. Frank found a successful formula. Good product at a value prices located on the main street of town. Where did you think WalMart got the idea?

It wasn’t long before frank opened more stores by recruiting his relatives and a few well picked partners. Everyone seemed to be clamoring for Franks wares. There was such demand that try as he might he just couldn’t hold prices at a nickel. To keep sales rising and offer a larger selection of items to his patrons, Frank added a 10 cent table to the stores. It wasn’t long before F.W Woolworths, also known as the five and dime, were everywhere.

When the store count reached 586 Frank felt the time was right to go public and sell stock. He liked to boast later in life that he created over 100 millionaires that day. In 1911 with his success secure and an enterprise spanning the globe he decided to build a world headquarters. Not just any building but the tallest building in the world. At a cost of 13.5 million dollars all paid in cash he completed the Woolworth building in Manhattan. It remained the tallest building in the world until the opening of the Chrysler building over 20 years later.

Not everything was rosy for Frank’s. His daughter who married Frank Hutton, the brother of EF Hutton, the senior partner in the famous stock brokerage company of the same name, was what we might call today BiPolar. Pushed over the edge by her husband overt affairs, she took her life. It was only a year later that Frank himself died of a tooth infection that could have been prevented had he not had a fear of dentist.

Franks estate went to his family. The large share that was to go to his daughter Edna was passed instead to her daughter Barbara..  They say money doesn’t buy happiness. Barbara was a poster child for that saying. After being ignored by her father she was bounced around to relatives , governess and boarding school. On her 18^th birthday while the rest of the world was standing in bread lines, Barbara held a million dollar coming out ball. The guests included, Vanderbilt’s, Rockefellers and Astor’s. On Barbara’s 21^st birthday  the “little miss rich girl’ as the tabloids named her, inherited at the height of the depression 50 million dollars. The equivalent of 1 billion today.

Barbra’s spent her money wildly living the life of a socialite jet setter. After a life filled with every luxury and buying herself out of 7 failed and somewhat abusive marriages she died with a little more then four thousand dollars in the bank. She was famously quoted as saying, “ I’ve never seen a Brinks Truck follow a hearse”.

And what’s left of Frank’s legacy. Over more than a hundred years of operating the Woolworth the company expanded into other businesses. One of their many acquisitions was a shoe store chain called Kinney shoes. You might still shop there. No longer will you find a Woolworth five and dime in every town across the country, you will find Kinney shoes under their new name Foot Locker in every mall in the America.  Now you know.

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Stephen Troy

Author Business Biographies

Herbert’s start in business was anything but smooth. The son of a prominent inventor and engineer Herbert was followed in his father’s footsteps as a young inventor himself. After graduating from Case University with a degree in Chemical engineering, Herbert set up his first company to experiment in finding new and better ways of extracting bromide from the brine water found underground in Canton Ohio and Midland Michigan. Unfortunately for Dow and his investors, his first try at running his own chemical company didn’t fare well. Slightly more than a year after opening Dow was forced to go bankrupt. Though all was not lost. His associates who work with him were so impressed with his work that they provided capital and help him start a new company, Midland Chemical, in Midland Michigan. Alias, even his new partners grew wiry of all of his research which produces only a thimble full of revenue. Failing to turn out salable products and create meaningful revenue his partners decided to change course and fired Dow. Dow wasn’t discouraged. He knew his research would one day pay big dividends.  

Returning to Ohio, It was his third try with the backing of family and old college friends that Herbert found success with The Dow Process Company. This time his process for extracting chemicals from brine water was getting results. Within three years Dow returned to Midland Michigan after renaming his company Dow Chemical and The Midland Chemical Company to get access to the rich brine deposits under his old plant.

Dow’s research and patents were paying off. The Dow Process for removing multiple chemicals from brine was allowing Dow the ability to manufacture bromide and important cheaper then imports.  Up to that time the Germans controlled a cartel and had a near monopoly on the sale and production of bromide. Dow’s new method was now threatening the German stranglehold on the worldwide market. Dow s process was now underselling the cartel in Europe and the United States.  Not able to convince Dow to raise prices, the Germans were determined to force Herbert out of the business.

Their plan was simple. Lower the price of bromide shipped to the United States until it was unprofitable for Dow to compete. Unfortunately for the cartel, Dow was quick on his feet. As the price of Bromide shipped into the United States slipped below Dows manufacturing costs he ordered his agents to quietly buy up all of the German bromide they could get their hands on. The lower the price dropped the more Dow was buying. Dow didn’t hold on to the Bromide for very long. As fast as the imports came in, Dow Chemical would repackaged it and ship it back to the European market.  Dow was now competing with the Germans in Europe by selling their own product back to them at a substantial profit to Dow. At first the Germans couldn’t understand what was driving the huge demand bromide in the states. They also couldn’t find out who was selling cheap bromide in Europe. They incorrectly accused members of their own cartel of violating the set fixed price of bromide.

 It was some time before the cartel realized that the cheap bromide flooding Germany was their very own product which they shipped to the United States. Dow had single handedly broken the cartel and made a handsome profit doing so.