February 12, 2007

Montgomery Ward

And the man behind the brand is...
Montgomery Ward

The Montgomery Ward catalog has been chosen on many lists as one of the 100 most influential American books ever published. One such nominating committee, the Grolier Club, stated: "The mail order catalogue has been perhaps the greatest single influence in increasing the standard of American living. It brought the benefit of wholesale prices to city and hamlet, to the crossroads and prairie."

It wasn't so obvious at the time.

Aaron Montgomery Ward was born in Chatham, New Jersey in 1844 and his family went west to Niles, Michigan in 1853 where his father took up the cobbler's trade. Aaron left school at 14 to work in brickyards and a barrel factory where he learned his most valuable lesson: "I learned I was not physically or mentally suited for brick or barrel making."

He clerked at a shoe store and then a country store earning $6 a month -
plus board. Ward was ready to go to the big city. In the 1850s Chicago was home to 30,000 people and known, none too affectionately, as "The Mudhole of the Prairies." The streets were barely above the level of Lake Michigan and covered with bottomless goo.

But by the late 1860s Chicago was teeming with post- Civil War energy.
Fifteen railroad lines moved 150 trains a day out of the busy terminals.
Like thousands of other young men Ward arrived in Chicago in 1866 and began work in various dry goods firms, including one operated by Marshall Field.
He became a salesman, his income rising to the princely sum of $12 a week.

As he made his tedious rounds through the mud in his horse and buggy he took particular notice of the country stores on his route. They were congenial places with pot belly stoves and made fine meeting places for local farmers but they were far from friendly when the farmers had to actually buy something. Selection was small, prices were high. The storekeeper was at the mercy of the big city wholesalers.

Ward considered how he could help the disadvantaged farmer. He decided on a mail order store. He would set up in the big city where he could easily reach suppliers and buy in quantity to get the best prices. A catalog listing his prices would be sent to farmers who would receive their order by mail, cash on delivery. It was not a new idea but the few direct mail firms at the time sold only one or two items. Ward was going to bring the whole store to the farmer.

Ward worked and saved. He talked about his idea with friends and associates. They all agreed he would go broke trying to sell goods sight-unseen to back country folk. He was not dissuaded.

By 1871 he finally saved enough money to buy a small amount of goods at wholesale prices. On October 8, 1871 the Great Chicago Fire engulfed the city for 30 hours. Every building in a 4-square mile area was destroyed. So was Ward's inventory.

Back to work. By August 1872 he scraped up some money and convinced a few people to join him, raising $1600 in working capital. He printed up a one-page price list and hand-addressed the first circulars to the Grangers, a co-operative farm supply organization. One of his earliest price lists contained 163 items under the banner "Supplied By The Cheapest Cash House In America." Most of the items cost $1, including clothing, a 6-view stereoscope, and a backgammon set.

For most of 1873 Ward's mailbox was bare. His partners wanted out and Ward, who still had his sales job, managed to buy them out of their small investments. The Panic of 1873 was sinking established traditional retailers, let alone his radical enterprise.

His business was ridiculed by the Chicago Tribune as a disreputable firm "hidden from public gaze with no merchandise displayed and reachable only through the post office." Under threat of a lawsuit the Tribune printed a retraction.
The retraction was added to the next flyer and sales increased.

About this time ready-made clothing began appearing. It was always believed that no two people had the same measurements and tailors were needed to make quality clothes. But the crunch for uniforms in the Civil War demonstrated that certain combinations of measurements could be standardized. Ward told his faraway customers - "Give your age and describe your general build and we will, nine times out of ten, give you a fit."

Ward, a short, stout man, wrote all the early copy. He always included a message in his catalogs, often educating the reader about buying and selling,
"It is best to make your order around $5. Shipping charges on small orders will eat up your savings. Consider joining a buying club with your neighbors."

Business began to grow rapidly as consumers came to trust Ward's unseen store. He bound his first catalog in 1874 and the book exploded to 72 pages in 1875. Ward began to worry he might become too big and took an ad in Farmers Voice just to reassure his customers he had not lost touch with their needs.

In 1893 Ward sold controlling interest to George R. Thorne who had come on as a partner late in 1873. Ward remained president but after awhile he even stopped attending board meetings. The last twenty years of his life were spent preserving the Chicago waterfront as a park for the people. He spent over $200,000 of his own monies to defending the public's right to open space.

His long-time efforts to prevent the erection of buildings along Lake Michigan won him the title of "The Watch Dog of the Lake Front." At one time there were 46 building projects planned in the park and he fought them all successfully, losing many influential friends along the way. Finally, just before his death in 1913 he won his final legal battle to forever keep the waterfront an open area.
The Tribune, no friend of Montgomery Ward, wrote,"We know now that Mr. Ward was right, was farsighted, was public spirited. That he was unjustly criticized as a selfish obstructionist or as a fanatic. Before he died, it is pleasant to think, Mr. Ward knew that the community had swung round to his side and was grateful for the service he had performed in spite of misunderstanding and injustice."

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