Glass House

by Brian Alexander

  In late 1905, he and a group of partners: “The Hocking Glass Co.,” Lancaster Daily Eagle, November 1905.

  Fulton successfully tapped a relative for $5,000: “Thomas Fulton Dies During Fire at Home,” Lancaster Eagle-Gazette, January 7, 1955, 1; Cy Fulton, interview with Ruth Drinkle and Ginny Fetters, September 13, 1982, Fairfield County District Library, Historical Collection.

  Collins hired a young military engineer named William Fisher: Drafts of Anchor Hocking corporate history, c. 1954, Ohio Glass Museum archives.

  Ellsworth Boyer, employee number 87: Ellsworth Boyer, interview with Joan P. Haller, October 24, 1982, Fairfield County District Library, Historical Collection.

  W. Robert Taylor quit school: W. Robert Taylor, interview with Joan Haller, November 4, 1981, Fairfield County District Library, Historical Collection.

  “They just dropped in their tracks”: Alice McAnespie, interview with Joan Haller, 1988, Fairfield County District Library, Historical Collection.

  Ollie Smith was hired on in the early 1930s: Ollie Smith, interview with Joan Haller, Fairfield County District Library, Historical Collection.

  In 1918, the average manufacturing wage in the United States was fifty-three cents per hour: Hourly wages for selected industries, United States, 1935, “100 Years of U.S. Consumer Spending,” U.S. Bureau of Labor Statistics, May 2006.

  Employees, many of them women, worked from 6:30 a.m. to 5:30 p.m.: Emit Clark, interview with Fairfield Heritage Association, June 8, 1981.

  American Flint Glass Workers’ Union (the “Flints”) was in Lancaster as early as 1904: “Lancaster Union 127, AFGWU Is Arranging for the Celebration of the Glorious Fourth—an Announcement,” Lancaster Gazette, June 1904.

  “The question in my mind is ‘What must be done?’”: Claude Tucker, The American Flint, 3 (June 1912): 6–7.

  Collins hired scab labor from out of town: Harry H. Cook, “Hocking Glass Company Trouble,” History of the American Flint Glass Workers’ Union, part 2, p. 23 (Protest to President D. A. Hayes of the G. B. B. A.), Toledo, Ohio, April 22, 1911.

  Six Lancaster shoe workers went to state prison for the assault: “Twenty Years Ago,” Lancaster Eagle-Gazette (date unknown).

  The union struck, and struck again: “Local Shoe Workers Will Seek Another Meeting with Miller,” Lancaster Daily Eagle, March 20, 1934.

  Irving Drew Shoe Company, which had moved from Portsmouth, Ohio: “About Us,” Irving Drew Shoe Corporation, http://www.drewshoe.com/aboutus.aspx.

  Congress passed the National Labor Relations Act: “The 1935 Passage of the Wagner Act,” National Labor Relations Board, https://www.nlrb.gov/who-we-are/our-history/1935-passage-wagner-act.

  Anchor Hocking reported consolidated net sales of $64,399,742: Anchor Hocking Glass Corporation, annual report, 1946.

  in 1950 invented late-night television with Broadway Open House: “Take Trail Shots at Amsterdam Spot,” The Billboard, November 25, 1950, 3.

  A hundred robed and hooded Klansmen presided at his graveside funeral: “Ku Klux Klan Hold Services for Merrill Deaver” Lancaster Daily Gazette, March 17, 1924.

  created the Community Hotel Company of Lancaster: James Miller, interview with the author, December 9, 2014; “Hotel Lancaster, Best of Size in Midwest Opened,” Lancaster Eagle-Gazette, June 3, 1950, “Sesquicentennial Edition.”

  Lancaster voted in 1914 to tax itself so it could build a public hospital: Carl Burnett Jr., “FMC Plans Events in Buildup to 100th Anniversary,” Lancaster Eagle-Gazette, October 3, 2015.

  “I gave them all those jobs”: Jonathon Nussbaum, interview with the author, August 6, 2015.

  THREE. TRIGGERING EVENTS: JULY 1987

  “It sounds trite, but it was one big family”: Peter Roane, interview with the author, April 19, 2016.

  When Sam Walton realized that Anchor shipped its ware in its own fleet: Dick Ellwood, interview with the author, May 13, 2015.

  But by 1980, imports were beginning to attack Anchor Hocking at home: Ben Martin, interview with the author, July 11, 2015.

  a decision to turn the sales force into salaried employees: Ken Culver, interview with the author, July 21, 2015; Bob Heath, interview with the author, May 15, 2015.

  sixteen million Anchor-made commemorative Empire Strikes Back glasses: AnchorScope newsletter, October 1980, Ohio Glass Museum Archives.

  In the spring of 1982, a sharp-eyed employee in the company’s finance department: Sam Hurley, interview with the author, May 16, 2015.

  George Barber would later say his endorsement of Topper: Ward Swift, interview with the author, October 5, 2015.

  On August 17, 1982, Anchor repurchased Icahn’s shares: SEC News Digest, August 27, 1982.

  University of Chicago economist Milton Friedman published: American Conservative Thought in the Twentieth Century, ed. William F. Buckley (Indianapolis: Bobbs-Merrill, 1970).

  Friedman framed some of his theories in less academic language: Milton Friedman, “The Social Responsibility of Business Is to Increase Its Profits,” New York Times Magazine, September 12, 1970.

  threw the government’s support behind tactics like Icahn’s: Michael Blumstein, “Baxter Rejects Call to Curb Mergers,” New York Times, June 3, 1983.

  In early 1983, a Kidder, Peabody banker introduced Naimoli: Vincent Naimoli, interview with the author, October 8, 2015.

  The deal turned out to be an early example of modern financial engineering: Donald L. Barlett and James B. Steele, America: What Went Wrong? (Kansas City, MO: Andrews McMeel, 1992) (originally a series in the Philadelphia Inquirer); Zachary R. Mider and Jeffrey McCracken, “Wayzata’s Anchor Glass Said to Seek Buyer, May Fetch $1 Billion,” Bloomberg News, September 22, 2010.

  the board instituted a golden-parachute scheme: Anchor Hocking shareholder proxy packet, May 20, 1987.

  Cartoons soon appeared on bulletin boards: Ken Culver, interview with the author, July 21, 2015.

  Local and state economic development officials provided $8.5 million: Andrew Herod, “Local Political Practice in Response to a Manufacturing Plant Closure: How Geography Complicates Class Analysis,” Antipode 23:4 (1991): 385–402.

  The plant manager told his bosses at headquarters, “You missed out”: Ken Culver, interview with the author, July 21, 2015.

  Western loaned Newell $42 million: “Western Financial Purchases Shares of Wisconsin Firm,” Arizona Republic, October 30, 1982.

  Ferguson’s father, Leonard, had been CEO and chairman of Newell: David Young, “Father, Children in Battle over Millions,” Chicago Tribune, May 7, 1997.

  In May of 1986, Ferguson met with Ray Topper: Anchor Hocking shareholder proxy packet, May 20, 1987.

  On July 3, Topper demanded that the unions at Plant 1 enter into early negotiations: “Anchor’s Distribution Center, West Side Facility May Close,” Lancaster Eagle-Gazette, July 5, 1986, 1.

  On July 31, Anchor’s board adopted a stockholder-rights plan: Anchor Hocking shareholder proxy packet, May 20, 1987.

  Union men attacked people: Dale Lamb, interview with the author, May 8, 2015.

  The strike ended on October 22: “Workers Back on Job; Concessions Enough? Only Time Will Tell,” Lancaster Eagle-Gazette, October 22, 1986, 1.

  the board of directors of Anchor Hocking voted to approve Newell’s offer: “Anchor Board Approves Merger,” Lancaster Eagle-Gazette, February 24, 1987, 1.

  A story went around that Topper cried: Dick Ellwood, interview with the author, May 13, 2015.

  “You could see they were thinking, ‘My God!’”: Sam Hurley, interview with the author, May 16, 2015.

  About three thousand people streamed through: Gerry Stebelton, interview with the author, October 19, 2015.

  Newell shut down the Clarksburg plant: “Showdown in West Virginia,” Chicago Tribune, November 16, 1987.

  Then it secretly sent Anchor employees: Mike Shook, interview with the author, September 24, 2015; Doug Ingram, interview with the author, May 11, 2015.

  Western Savings a
nd Loan collapsed … Driggs resigned as president and CEO: Newell Company, Securities and Exchange Commission filing 13-D, March 2, 1998.

  critics like Felix Rohatyn: Fred R. Bleakley, “Surge in Company Takeovers Causes Widespread Concern,” New York Times, July 3, 1984.

  “means for translating private impulse to the public good”: Ann Crittenden, “The Age of ‘Me-First’ Management,” New York Times, August 19, 1984.

  FOUR. NEWELLIZATION: MARCH 2004

  This was certainly the view of Vermont American: W. Joseph Campbell, “The 2 Sides of Stanleys Suitor,” Hartford Courant, April 20, 1992; Newell Co. v. Vermont American Corp., 89 C 5202, October 13, 1989 (Illinois Northern District Court).

  Joe Boyer walked a picket line: Joe Boyer, interview with the author, July 24, 2015.

  At the insistence, and through the persistence, of an Anchor attorney: Sam Hurley, interview with the author, May 16, 2015; James Miller, interview with the author, June 30, 2015.

  a vote to increase Lancaster property taxes to support the schools failed: Abstract of Votes, Lancaster City Schools proposed tax levy, November 8, 1988.

  According to a state “report card” of school districts: Walt Williams, “County Schools Show Some Improvement,” Lancaster Eagle-Gazette, January 13, 2002, 7.

  In 1991, the fire department employed seventy-four firefighters: Spencer Remoquillo, “Fire Chief Plans for Growing City,” Lancaster Eagle-Gazette, May 21, 2016.

  a new task force called the Major Crimes Unit: Jennifer Lawson, “Crimes Unit Has Busted Nine Labs,” Lancaster Eagle-Gazette, December 17, 2001, 1.

  formed the Fairfield County Foundation in 1989: Amy Eyman, interview with the author, July 7, 2015.

  In 1990, it even made a run at Lancaster Glass: “Lancaster Colony Corporation History,” Funding Universe, http://www.fundinguniverse.com/company-histories/lancaster-colony-corporation-history.

  The merger, completed in 1999, nearly killed the company: David Harding, Sam Rovit, and Catherine Lemire, “Staying Cool When Deal Pressures Mount,” Bain and Company, December 1, 2004; “Newell Rubbermaid: Why It’ll Bounce Back,” Bloomberg, October 19, 2003; David Harding and Sam Rovit, “Building Deals on Bedrock,” Harvard Business Review, September 2004.

  the board hired forty-two-year-old Joseph Galli: Joann S. Lublin, “A CEO Gets Rare Second Act,” Wall Street Journal, February 3, 2009; “Black and Decker Timeline,” Baltimore Sun, March 14, 2010.

  Galli shut down Mirro’s offices and factories in Manitowoc: Charlie Mathews, “Mirro Worker Says Goodbye After 41 Years,” Manitowoc Herald Times Reporter, September 11, 2003; “Mirro Plans to Close Manitowoc Plant,” Milwaukee Business Journal, January 27, 2003.

  it sold control of Drew to Wexford Management: Footwear News, November 30, 1998; Securities and Exchange Commission Form 10-QSB BCAM International, November 16, 1998.

  Wexford announced it would close the Drew factory: Ohio Department of Job and Family Services, WARN Notice filings, 2001.

  The Federal Trade Commission thought so: Carl Burnett, Jr., “FTC Questions Sale,” Lancaster Eagle-Gazette, December 20, 2001, 1.

  Republicans in the legislature gerrymandered: Linda Roderick Miller, interview with the author, July 14, 2015.

  In April 2002, a U.S. district court judge ruled in favor of the FTC: United States of America Before Federal Trade Commission, in the Matter of Libbey Inc., a Corporation, and Newell Rubbermaid, Inc., a Corporation, docket no. 9301, May 9, 2002; Federal Trade Commission, “Libbey, Inc. Settles FTC’s Administrative Litigation,” August 21, 2002.

  Newell fired 175 factory workers: Carl Burnett, Jr., “Anchor Hocking to Cut Jobs,” Lancaster Eagle-Gazette, December 4, 2002, 1.

  On February 27, 2003, the Lancaster Board of Education voted to approve a deal: Carl Burnett, Jr., “$30 Million for Anchor,” Lancaster Eagle-Gazette, February 20, 2003, 1; Carl Burnett, Jr., “Anchor President Thanks City,” Lancaster Eagle-Gazette, February 25, 2003, 1; Jess Andrews, “Schools Save Anchor Hocking,” Lancaster Eagle-Gazette, February 28, 2003, 1.

  In February 2004, the district cut another $1 million out of its budget: Lancaster City School District, Single Audit, Fiscal Year Ended June 30, 2004.

  Newell signed a purchase agreement to sell Anchor Hocking: Securities and Exchange Commission Form 8K, Newell Corporation, April 13, 2004.

  FIVE. HOOK, LINE, AND SINKER: APRIL 2007

  Ohio’s own economic development guru made a swing: Rami Yoakum, “Big Industry in Southern Ohio Is Over,” Lancaster Eagle-Gazette, January 13, 2002, 6.

  A Princeton grad, Feinberg: Liz Moyer, “How Chrysler Put the Bite on Cerberus,” Forbes, May 1, 2009; Katie Benner and Geoff Colvin, “Cerberus: Inside the Wall Street Power-House”: Fortune, August 5, 2007; Matthew Karnitschnig and Lingling Wei, “Economy Conspires to Dog Cerberus,” Wall Street Journal, November 20, 2007; Emily Thornton et al., “What’s Bigger Than Cisco, Coke, or McDonald’s?” Bloomberg, October 2, 2005.

  Donald Rumsfeld invested between $1 million and $5 million: Steven Lee Myers, “Rumsfeld to Pay Big Price to Avoid Conflicts,” New York Times, January 29, 2001.

  opened a $200 million revolving loan with Wachovia … and a revolving credit line for $210 million from Madeleine: Affidavit of Randal Rombeiro, in re: Global Home Products LLC debtors, 06-10349 (United States Bankruptcy Court for the District of Delaware).

  These dividends appeared to have amounted to about $841,000: Monthly Operating Report, in re: Global Home Products LLC debtors, 06-10340.

  Cerberus shut—without notice—an Anchor Glass Container bottle plant: Joe Napsha, “Bill Would Tighten Rules Governing Warning on Closures, Layoffs,” Pittsburgh Tribune, October 3, 2009.

  GHP sought the first in a series of forbearances: First Amended Disclosure Statement in Support of Joint Plan of Reorganization of Global Home Products, LLC, et al., Under Chapter 11 of the Bankruptcy Code, in re: Global Home Products LLC debtors, Case No. 06-10340.

  Newell transferred $43,885,449 in 401(k) savings plan funds: Securities and Exchange Commission Form 11-K, June 29, 2005.

  Cerberus shorted the 401(k) account by an estimated $5,749,809: First Amended Disclosure Statement in Support of Joint Plan of Reorganization of Global Home Products, LLC, et al., Under Chapter 11 of the Bankruptcy Code, in re: Global Home Products LLC debtors, Case No. 06-10340; “PBGC Protects Pensions at Anchor Hocking,” PBGC press release, April 12, 2007.

  company pension plans were each at least $50 million underfunded: “Companies Report a Record $353.7 Billion Pension Shortfall in Latest Filings with PBGC,” PBGC press release, June 7, 2005.

  Cerberus announced it wanted to scratch the health care plan: Carl Burnett, Jr., “Anchor Hocking, Union, Square Off,” Lancaster Eagle-Gazette, December 3, 2006.

  GHP worker Brenda Stone despaired: Letter from Brenda Stone to Honorable Kevin Gross, U.S. Bankruptcy Court for the District of Delaware, January 16, 2008.

  The Pension Benefit Guaranty Corporation negotiated a settlement: Motion Pursuant to 11 U.S.C. §§ 105 and 363 and Bankruptcy Rule 9019 for Approval of Compromise of Controversy Between Pension Benefit Guaranty Corporation and the Debtor, Anchor Hocking CG Operating Company LLC. Regarding Pension Plan Claims, in re: Global Home Products LLC debtors, 06-10340.

  By the mid-1990s, Lancaster Glass was among the highest-margin performers: Dave Gallimore, interview with the author, May 12, 2015.

  Mitarotonda had two demands: “Barington Blasts Lancaster Anti-Takeover Mechanisms,” Alternative Investment News, July 2, 2007.

  the companies making up the Standard & Poor’s 500 spent 54 percent of their earnings: William Lazonick, “Profits Without Prosperity,” Harvard Business Review, September 2014.

  Lancaster Colony said it would buy back at least two million of its own shares: “Lancaster Colony Reaches Accord with Investor,” Columbus Business Journal, October 10, 2007; Securities and Exchange Commission Exhibit 99.1, Lancaster Colony Corporation, October 9, 2007.

  SIX. THE C
HEESE, THE CEO, AND LANCASTER’S YEAR: JANUARY 2015

  About three out of every five pregnant women who came to the hospital: Charlie Dresbach, interview with the author, October 19, 2015.

  were eligible for free or reduced-cost lunches: Lancaster Food Service Department Report, November 4, 2015.

  Almost half—44 percent—of Lancaster households led by a single woman: Scott Spangler, United Way of Fairfield County, e-mail to the author, May 31, 2016.

  The number was now over two thousand per month: Kellie Ailes, interview with the author, July 29, 2015.

  A group of Ohio State University urban-planning students: Chad Gibson et al., “Downtown Lancaster,” report, Spring 2013.

  SEVEN. THE SHUTDOWN: FEBRUARY 2015

  EveryWare Global hauled the weight of $290 million: Securities and Exchange Commission Form DEF 14A, September 17, 2014.

  the results Solomon saw in March didn’t show $60 million in EBITDA: Securities and Exchange Commission Form 10K, EveryWare Global, Inc., for the fiscal year ended: December 31, 2013.

  In 1933, its payroll of 2,565 employees amounted to $1.8 million: Anchor Hocking advertisement, Lancaster Daily Gazette, March 28, 1934.

  EveryWare sent a WARN: EveryWare Global Inc., Conditional Notice Pursuant to Worker Adjustment and Retraining Notification Act, June 6, 2014.

  Cerberus was forced to pay workers $480,000: Joe Napsha, “Bill Would Tighten Rules Governing Warning on Closures, Layoffs,” Pittsburgh Tribune, October 3, 2009.

  Monomoy bought Kurdziel Industries: “Monomoy Capital Partners Acquires Kurdziel Industries and Creates Carlton Creek Ironworks,” press release, July 14, 2008.

  making him CEO and president of EveryWare Global: Securities and Exchange Commission Exhibit 10.1, EveryWare Global Inc., “Employment Agreement,” February 21, 2014; Securities and Exchange Commission Form 8K, EveryWare Global Inc., June 9, 2014.