June 9, 2020 at 9:17 a.m.
Rhinelander Revisited: Early investments leave lasting impact
Rhinelander Revisited: Early investments leave lasting impact
By Stephanie Kuski-
"What separates them from some wealthy corporate CEOs of modern times is that instead of sticking their money in offshore accounts, they instead used it to the benefit of the entire community by plugging millions of dollars back into it," Pioneer Park Historical Complex Director Kerry Bloedorn noted. "So they did give back, so to speak, for the wealth they acquired."
Early investors capitalized on the abundant lumber available in the region, processing forestry-related products and utilizing the available infrastructure (such as the dam and railroad) to bring those products to market.
But these business ventures were also based on the fads of the time, coupled with the resources that were available and, of course, the opportunity for money to be made.
When Gene Shepard first surveyed the area, as part of the process of drawing his original plats, the value of land was based on stumpage; the idea being more trees equaled more dollars, as Rhinelander Historical Society President Bill Vancos explained. By that design, a lake property was considered a misfortune because it hindered the amount of lumber that could be harvested.
Now, if we consider how the definition of that value has changed over time, it becomes clear how the proclivities of the time greatly influenced how history were to unfold.
In Rhinelander's early years, the Kirk Box Factory was one of the largest box factories in the region, utilizing inferior grade lumber to manufacture packing cases that were shipped via rail enroute to Chicago.
When that company closed shop around the turn of the century, the old box factory was enlarged and business began for the Rhinelander Manufacturing Co., originally organized to manufacture furniture, explicitly taking advantage of the region's abundant lumber resources.
In 1902, the company began manufacturing refrigerators and quickly recognized a niche market. For that reason, Webster Brown - coming from a long line of opportunists (and with his cronies on speed dial) - called for an open meeting of citizens and fellow businessmen to reorganize the company in the exclusive manufacture of refrigerators, establishing Rhinelander Refrigeration Co. that same year.
While the word "refrigerator" was used, what they made would today be called an "icebox" - a cooler unit, more or less, that featured a large block of ice to keep food and beverages cold. The company boasted an "Air-Tite" design that would keep cold air in and warm air out, available in woodgrain or enameled finish. At its heyday, the manufacturing facility, then located on the Pelican River at the corner of Ocala and Bruner streets, employed 160 skilled artisans who fabricated over 50,000 iceboxes every year.
In early winter, the ice for the iceboxes was harvested from frozen Boom Lake.
Massive blocks of ice, each weighing upwards of several hundred pounds, were cut by hand and loaded onto horse-drawn wagons for transport to an icehouse for storage. (One icehouse was located in a big red building at the corner of Phillip and Alban streets; the area is currently used as an overflow parking area for Trinity Lutheran Church.)
Because a constant supply of fresh ice was necessary to keep the iceboxes stocked, an iceman was employed to deliver 25-50 lb blocks of ice to individual homes on a weekly basis.
"There were stories that if the children were well-behaved, the iceman would take a chisel and knock a little piece off the ice and give it to the kids," Vancos commented. "It was a big treat for them, like someone giving them a popsicle on a hot summer day."
While this business venture capitalized on the resources available at the time, it was also based on the current fads. Because electricity did not become available to ordinary households until the '30s, those without had to rely on the old method of keeping their food cold. But as electric refrigerators grew in popularity, and as electricity became more widely available, the market for iceboxes steadily declined. For that reason, the Rhinelander Refrigeration Co. closed in 1937, and soon thereafter the paper mill bought those buildings to be used as warehouses.
Even at the end of this venture, there was an opportunity to capitalize on, and you best bet the cronies took full advantage.
"Now is it true that the Browns had ownership in both businesses? Yes," Vancos commented. "Did that help sway the fact that it was repurposed by another one of the businesses the Browns were involved in? Most likely."
It's no surprise the Rhinelander Paper Co., originally established in 1903, was founded by Edward Brown, alongside his two eldest sons Anderson and Webster, as well as Dr. Alfred Daniels, Fred Anderle and several other investors.
In this way, the Browns in particular capitalized on the logging industry by investing in multiple companies which utilized the same raw material. The dam, built previously to create a head of water for log driving, was rebuilt for the purpose of utilizing hydroelectric power from the Wisconsin River to power the mill.
At the start, its 150 employees manufactured newsprint, catalog and manila wrapping paper. The mill was enlarged in 1916 when the company turned its attention to manufacturing glassine paper, an air-tight, greaseproof paper, the demand for which rose steadily during World War 1.
For this reason, one of the two iconic smokestacks at the mill today reads "(G)lassine Greaseproof." (But, of note, it's missing the first "G" from when the smokestack was shortened in the early '90s.) Following World War I, demand for glassine declined. In 1928, the company's manager, Folke Becker, undertook a modernizing campaign that ultimately improved the financial condition of the company, altering the appearance of the plant and adding new machines.
As a result, the Rhinelander Paper Co. became universally regarded as a high-quality paper producer; between 1940-53, production at the mill tripled, employing well over a thousand.
Although the industry has been reorganized multiple times since its establishment, it's still one of the longest-standing industries today. In 1956, the St. Regis Paper Co. purchased the Rhinelander Paper Co.; in 1978, the Monarch Paper Corp. bought the plant; then in 1979, Wausau Paper Mills acquired the Rhinelander plant.
Most recently, those mills in Mosinee and Rhinelander were bought out by Ahlstrom-Munksjö of Helsinki, Finland.
This is just one example, among many, in which a modern conglomerate has roots in the early endeavors of the Browns, Daniels and others among their cadre.
But, as Bloedorn alluded to, the difference had to do with the sentiment in mind.
"Cronyism in the old days (involved) influential people working back and forth," River News sales representative Jay Anderle, the grandson of Fred Anderle, commented. "But back then there was a sense of purpose and a sense of duty... Yes, they made money, but in most situations, it benefitted all of those around them."
"Cronyism nowadays has a more negative attitude because you don't see that citizenship for a community," he continued. "It's more about the money than what you're doing."
(This isn't to say that today's local business leaders aren't concerned with improving the community as a whole. Without question, there are numerous examples of community-minded, and philanthropic, businesses in the Rhinelander area).
It's also clear that the investment decisions made by Rhinelander's early business leaders were beneficial to both them and the inhabitants of the infant Rhinelander.
No doubt, this elite group capitalized on the money to be made but their investments also employed the majority of those who called Rhinelander home. So too, they were flexible enough to shift their industries as resources and fads came and went. Although history has a tendency to paint a one-sided picture, when we consider all sides of the coin, it becomes clear how these early endeavors continue to have a profound impact on our tiny town today. Stay tuned for the next installment of this continuing series. Visit rivernewsonline.com to read previous installments.
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