The expression ‘deader than Kelsey’s
nuts’, is most often attributed to disgraced US
President
Richard M. Nixon. As he used it, the President inferred that the
subject
of his ire
was either
deceased, defunct or at the very least, powerless.
However Nixon’s use of the term ‘Kelsey’s
nuts’ differed substantially
from its original 1920s-30s usage, ‘tighter than Kelsey’s nuts’, a
reference to
the proverbially secure attachment provided by the nuts and bolts
included with
the wheels manufactured by the Kelsey Wheel Company. Additional
meanings
included a person who was thrifty, stingy or mean and a rarely-used
third
variation ‘safe as Kelsey’s nuts’, made reference to the safety of a
wheel
attached by Kelsey’s hardware, eg., very safe.
Although the phrase his products inspired is
rarely
mentioned today, Kelsey’s OEM automobile wheels remain important to
fans of
early automobile enthusiasts, particularly of the Ford Motor Co.
variety. However
the fact that he was equally well-known in the early days of Detroit as
a
manufacturer of composite automobile bodies and sub-assemblies has
escaped even
the most knowledgeable automobile historians. In fact, his automobile
body
business predates his rise to prominence in the automobile wheel
business by a
couple of years, and at one point Kelsey and his associates controlled
two
other Detroit- and Windsor-based body constructors; Herbert Mfg. Co.,
and Fox
Bros. & Co.
The driving force behind the aforementioned
firms and
phrases was Detroit-born John C. Kesley. Born in Detroit, Wayne County,
Michigan
on March 15, 1867 (1866?), (d. Jan. 21, 1927) he was the son of Frank
and
Jessie (Brobyn or Brabyn) Kelsey, natives respectively of the United
States and
England.
After a public education in the Detroit
schools, Kelsey found
a job with Cornwall, Price & Co., paper merchants and in
1881 took a
job with Barnes Bros., a wholesale paper outfit. At the age of 20
(1887) he
became associated with Albert V. McClure in the wholesale and retail
hardwood
lumber business, and soon after was made a partner in the firm under
the style
of McClure, Kelsey & Co., 520-528 Franklin St., Detroit. A third
partner,
Warren G, Vinton, was a well-known Detroit building contractor whose
Vinton
Company constructed a number of Detroit landmarks which include the
Detroit
Opera House, Whitney Theatre, St Paul’s Cathedral, Masonic Temple and
YMCA.
Coincident with his partnership, Kelsey was
united in
marriage to Margarette Dallas, of Detroit on April 23, 1893, and to the
blessed
union was born two children, Dallas Sherrill (b. Sep. 13, 1905) and
Virginia
Elizabeth (b. Nov. 26, 1908) Kelsey.
Polk’s 1897 Detroit Directory:
“McClure, Kelsey & Co. (Albert V.
McClure, John C.
Kelsey, Warren G. Vinton special), hardwood lumber, 520-528 Franklin.”
In 1898, in collaboration with Warren G.
Vinton’s son, G.
Jay Vinton, Kelsey entered into a $25,000 partnership with George
Davidson,
establishing the Davidson Pipe & Novelty Company. Located in the
Case
building on Congress St., Detroit, the fledgling firm was destroyed by
fire in
1899 after which it relocated to Larned St. and was reorganized as the
United
States Chemico-Wood Co.
The firm manufactured products out of exotic
hardwoods as
well as a composite resin, metal and wood fiber material perfected by
George
Davidson that resembled French horn, from which numerous articles were
molded,
which included mirrors, hair brushes, combs, toilet sets, smoking pipes
and
umbrella handles.
In 1901 businessman Henry J. Herbert
purchased an interest
in the firm which was subsequently reorganized in 1902 as the Kelsey,
Herbert
Company. Capitalized at $50,000, its officers were Henry J. Herbert,
president;
James S. Stevenson, vice-president; and John Kelsey, secretary and
treasurer.
Henry J. Herbert was born in
Sturgis, St. Joseph County, Michigan on February
28, 1867 to James C. and Eleanor S. (Smith) Herbert. After a public
education he embarked upon the manufacture of ubrellas in Detroit,
organizing the Detroit Umbrella Co. in 1890. He subsequently joined the
firm of Clogg, Wright & Co., a well-established manufacturer of
umbrellas located in New York City. In 1898 he returned to Detroit to
marry Miss Emma Walker and shortly thereafter joined the US
Chemico-Wood Co., becoming a partner just prior to its 1902
reoganization as the Kelsey-Herbert Co., becoming its president after
the resignation of G. Jay Vinton in 1903. He als served as secretaryof
the realted Detroit Bent Goods Co. and served as a director of Fox
Bros.
&
Co.
In 1904 the Kelsey, Herbert Co. erected a 4-story
brick,
mortar and stone
factory at 277-285 Monroe Ave., Detroit. In addition to an offsite
satellite the
firm maintained a pyrography* plant at 576 Kirby Ave., the firm
occupying a
total of 85,000 sq. ft. and employing over 300 hands.
(*Pyrography refers to decorating wood or
other materials
with burn marks resulting from the controlled application of a heated
object,
either by placing the object in a heated mold or by applying textures
and
designs using heated pokers, as in branding.)
The January 17, 1907 issue of Engineering
News reported on a
plant expansion project:
“DETROIT MICH. - The Kelsey, Herbert Co.,
277-295 Monroe
Ave., are having plans prepared for a factory for manufacture, of
preparations
to be 4 story, 100 x 50 ft. brick with Bedford limestone composition
roof,
steel window, freight elevators etc.”
A couple of days later (Jan. 21, 1907) Grand
Rapids,
Michigan resident Dell Ward applied for a patent on an ‘Attachment for
Vehicle
Wheels’ for which he received US Patent No. 849,031 on April 2, 1907.
Dell’s
patent for the unusual sprung wheel was assigned to himself, John C.
Kelsey,
Henry J. Herbert, Joseph R. Taylor and Wallace W. Johnson.
By 1908 Kelsey, Herbert Co.'s annual payroll
exceeded $100,000
and so rapid
was its growth it had been twice
recapitalized;
first to $100,000 and finally to $200,000. Charles W. Hardie manned the
firm’s
Manhattan sales office which was located at 621 Broadway, Room 415.
Factory inspections conducted by the
Michigan Bureau of
Labor and Industrial Statistics during the summer of 1907 list two
separate
Detroit-based firms with Kelsey Herbert in their name. Kelsey, Herbert
& Co.,
Detroit, mfrs. of frames & woodwork at 570-576 Kirby Ave., West,
were
reported as having a staff of 34 males, 7 of whom were under the age of
16. The
second firm, listed as Kelsey-Herbert Co., 285-289 Monroe av., Detroit,
mfrs.
of toilet sets etc. was listed as having a staff of 105 males and 100
females
for a grand total of 205 hands, with 15 under the age of 16.
It is believed that the Kirby Ave.
factory was
supplying wood autombile bodies and subassemblies to a number of
Detroit
automobile body
manufacturers, one of which was likely the Ford Motor Co.
The December 9, 1908 edition of the
Horseless Age reported
on a sizeable order for the firm’s Ward patent spring wheel:
“The Kelsey-Herbert Company, 277
Monroe avenue,
Detroit, Mich., have received an order for 100 sets of their spring
wheels from
the New York Taxicab Company. This is the first large lot of these
wheels to be
placed in commercial service, so naturally their performance will be
watched
with interest. One set of these wheels has been in use on a taxicab in
New York
for some time. These wheels consists of ordinary wood wheel with large
diameter, short hollow hub, suspended between two discs, which turn on
wheel
spindle by a set of helical springs.”
Kelsey, Herbert Co.'s Kirby Ave. factory is
absent from
the Michigan Bureau of
Labor and Industrial Statistics
1909 report which only lists the Kelsey-Herbert Co.'s Monroe Ave.
plant, which had significantly less
employees than reported in 1907; 56 males and 54 females for
a grand
total of 110 hands, with 9 under the age of 16.
Although Kelsey withdrew from McClure,
Kelsey & Co. in
1900, during the next decade he and his partners invested in three
other wood-based
firms, the Detroit
Bent Goods Co. (Kelsey, pres.); the Kelsey Hickory Co. (Kelsey, pres.)
and Fox Brothers
& Co.
(Kelsey, vice-pres.).
Although Kelsey had hoped to further exploit
Dell Ward’s
1907 spring wheel, discussions with various automobile manufacturers
(Henry Ford is mentioned) resulted in its
abandonment
in favor of the mass production of traditional artillery-style
automobile
wheels.
On January 1, 1909 Kelsey reorganized the
Detroit Bent Wood
and Kelsey Hickory Companies into the Kelsey Wheel Company, 1230-1240
Military
Ave., in order to supply hickory-spoked automobile wheels for the Ford
Motor
Company. It was reported that during 1909 Ford purchased over 75% of
the
company's output, the rest going to Cadillac and a handful of smaller
Detroit-based automakers. During the next few years, most of Kelsey
Wheel’s
production went to Ford, with the rest divided amongst Cadillac,
Chalmers,
Saxon and Hupmobile.
Kelsey served as president of the new firm,
with Louis C.
Brooks serving as secretary. Born in Ypsilanti, Mich., on Aug. 29,
1870; the son
of Myron H. and Julia M. (Pratt) Brooks; Brooks began his active career
as
a cashier
for the Detroit Electrical Works, after which he worked for the Preston
National Bank, then finally the Bigelow & Brooks Coal Co, after
which he
became Kelsey Wheel’s secretary.
The founding of the wheel company did not
affect the
operations of Kelsey, Herbert & Co. which continued to build the
firm’s
well-known ‘fancy goods’ at their Monroe Avenue plant. At the time
Kelsey,
Herbert Co.’s Kirby Ave. plant had long been constructing automobile
bodies
for the
Ford Motor Co. and others, the firm being a well-known supplier of Ford
Model T
touring
car and coupe bodies from 1910 until 1914, many of which are
identifiable by
KH branding on the woodwork. A letter dated August 12, 1910 in the Ford
Archives (Acc. 575) identifies the source of the KH bodies as Kelsey,
Herbert
Co.
Unbeknownst to many, the Ford Motor Company
relied upon
outside suppliers for most of its coachwork during its first quarter
century.
It’s hard to determine who made Ford’s first automobile bodies but soon
after
the Model T was introduced the names of various Michigan-based
sheet-metal,
millwork and body-building firms begin to appear on Ford’s supplier
list.
Initially most of the Model T’s bodies were
supplied by
Ford's existing auto body suppliers C.R. Wilson (1903) and Everitt
Brothers
(1908). O.J. Beaudette (1910), Kelsey-Herbert Co. (1910), American Body
Co.
(1911), Hayes Mfg. Co.(1911) Milburn Wagon Co. (1911), Fisher Body
Co.(1912), and the Kahler Co. (1915). Wm. Gray & Sons supplied Henry
Ford’s Windsor assembly plant with automobile bodies from 1906-1912. Regardless of their
origin,
all of the Model T’s bodies were interchangeable; however the
individual parts
in a body would not necessarily fit a similar-looking body if it was
made by a
different manufacturer.
The 1910 edition of the annual Michigan
Bureau of Labor and
Industrial Statistics Report lists both firms. Kelsey, Herbert Co.,
570-576
Kirby Ave., West, Detroit - mfrs. of auto bodies, were reported as
having a
staff of 152 males, 3 females for a total of 155, 1 of whom was under
the age
of 16. The second firm, also listed as Kelsey, Herbert Co., 285-289
Monroe av.,
Detroit, mfrs. of fancy goods etc. had a staff of 79
males and
159 females for a grand total of 237 hands, with 7 under the age of 16.
The
report indicates that both firms were ordered to make some additions to
improve
plant safety as follows:
“Kelsey, Herbert Co. (auto bodies); Provide
passageway from
roof of building No. 2 to roof of building No. 1, also stairway from
fourth
floor of building No. 1 to roof of same for protection in case of fire,
same to
have proper guard and hand rails; do not permit males under 18 years of
age to
work dangerous machinery.
“Kelsey, Herbert Co. (fancy goods); Within
20 days provide
hand rails for all stairways, guard all emery wheels in tool room, do
not
permit boy under 18 years of age to operate elevator, file permits for
all
children between 14 and 16 years of age,”
The May 21, 1910 issue of the American
Stationer reported on
the firm’s withdrawal from the fancy goods business:
“The Ames-Bonner Co., has taken over the
mirrors formerly
carried by the Kelsey, Herbert Co. The Kelsey, Herbert Co.
has
retired entirely from the fancy goods business, and henceforth will
devote
itself to an auto wheel big with promise.”
Coincident with its 1910 withdrawal from the
‘fancy goods’
business, the Kelsey, Herbert Co. was reorganized as the Herbert
Manufacturing Co., Henry J. Herbert remaining its president, and Earl
B. Newton,
vice-president. Despite the official name change, the trades continued
to refer
to the firm as the Kelsey, Herbert or Kelsey-Herbert Co. for the next
couple of
years. The reorganized firm’s plant remained at the intersection of
12th St.
& Kirby Ave. W., Detroit.
The firm produced bodies for Ford and
numerous other regional
manufacturers such as R-C-H, Hupp-Yeats and the Alpena Motor Car Co.,
mfrs. of the
Alpena
Flyer (1910-1914).
At the time he started the Kelsey Wheel
Company, John C.
Kelsey gave every one of the employees in the Kelsey, Herbert wood
works and fancy
goods divisions the opportunity of purchasing stock in the Wheel Co. to
the
value of $500 or more, with the privilege of paying for it in
installments as
low as $5 per week. Many employees took advantage of the
generous
offer becoming comfortably fixed in an exceedingly short time, as the
stock’s
value increased exponentially in the forthcoming years.
Although the firm was officially organized
as the Kelsey
Wheel Company, many period accounts use the Kelsey,Herbert or
Kelsey-Herbert moniker when
describing the recently organized wheel company, case in point the
following
article in the June 2, 1910 issue of Iron Trade:
“The Kelsey-Herbert Wheel Co. has
increased its
capital from $300,000 to $500,000, the additional money to be used for
new
buildings and equipment which will double the yearly capacity. It is
their
intention also to make the wheels complete, including the ball cup and
brake
drums.”
The 1910 Polk directory lists the wheel
company as follows:
“Kelsey Wheel Co. - Complete Automobile
Wheels Parts and
Rims - Office and Factory 1208-1250 Military Ave.”
The January 1911 issue of Fabrics, Fancy
Goods & Notions
announced the acquisition of Kelsey, Herbert’s line of fancy good by N.
Wiederer & Co.:
“WIEDERER & CO.’S NEW LINE:
“The fact was announced some time ago that
N. Wiederer &
Co. of Fuerth, Germany had acquired the good will, stock and tools of
Kelsey,
Herbert Co. Since that time they have been preparing a line of stag
horn fancy
goods which when shown in this market will certainly meet the merited
approval
of buyers. This well-known firm which has been established for 78 years
is in a
peculiarly fortunate position for turning out artistic and novel
designs in
fancy goods. They conduct in their establishment which is the largest
of its
kind in the world a training school for the development of the artistic
sense
in their employees the result of which is a corps of trained mechanics
and
artisans which can and does turn out a line of merchandise which almost
stands
alone for originality and novelty of design and showing that perfection
of
detail which marks the highest grade of goods of German manufacture.”
Another associate of Kelsey and Herbert was Earl
B.
Newton, who at one time or another served
as a director of Kelsey Wheel Co., vice-president of Fox Bros. &
Co., and
vice-president of the Herbert Mfg. Co.
Born in Summit County, Ohio, on
May 11,
1874 to John T. and Mary E. (Adams) Newton, he received his Ph.B. from
Hiram
College, Ohio in 1898. After graduation Newton served as manager of the
mantel and
tile department of the A. Teachout Co., of Cleveland, O., until 1906
when he
was hired as sales manager of Fox Bros. & Co., Ltd., Fox Bros.
Windsor, Canada-based
subsidiary. In 1909 he joined the sales force of Fox Bros. Detroit
office,
becoming its vice-president in 1911.
In February 1913 he established
the E. B.
Newton Auto Co., serving as its president.
By 1911 it became apparent to Kelsey’s
directors that
additional sources of supply and manufacturing capacity would be
required and
negotiations ensued with a Memphis, Tennessee-based industrial sawmill,
and on
January 1st 1912 Albert E. Manhannah sold his Memphis, Tennessee
hardwood
sawmill to the Kelsey Wheel Co., staying on as the plant manager.
Mahannah, who was born in Cortland, Ohio, in
1864, came to Memphis in 1905 and formed the Mahannah Lumber Co. near
the
intersection of Plum Avenue and the Illinois Central Railroad. Kelsey’s
Tennessee operations made hardwood
wheels
and composite automobile body framework for many of the Mid-west’s
automobile
manufacturers in what was deemed the best hardwood sawmill in the
country.
At full capacity, the plant’s 4,000 hands
could provide
nearly a quarter-million feet of lumber a day if operated around the
clock. On
a monthly basis the plant produced 50,000 automobile bodies and 80,000,
sets of
wheels, supplying all of the wheels for Cadillac, Studebaker, Hupp,
Dodge,
Maxwell, Paige and Hudson automobiles and a large part, of the Ford
wheels.
October 10, 1912 issue of American Machinist:
“The Herbert Mfg. Co. manufacturer of auto
bodies and
accessories Detroit, Mich., is building a new factory at 1123-35
Vermont Ave.,
Detroit. Cost $44,000.”
Kelsey Wheel Co. in Windsor began operations
in November,
1913, where it continued turning out auto bodies and wheels for
automobile
manufacturers. By 1919 it had doubled in size.
By 1915 the
wheel company's business
had grown to $3.5 million in total revenues and had 15-20 percent of
the wheel
market, supplying not only Ford but also Hudson, Paige, Chalmers, and
Studebaker. The firm's main wheel plant was located at 1230 Military
Ave., with satellite facilities at McGraw Ave., Detroit and on Howard
Ave in Windsor, Ontario, Canada.
July 1915 issue of Barrel and Box:
“Memphis, Tenn., July 12.—One of the largest
quantities of
hickory material received in Memphis for the manufacture of automobile
spokes
has just been delivered to the Kelsey Wheel Co. in North
Memphis.
This came from near Helena, Ark., and was shipped by barge. There were
more
than twenty solid cars in this shipment and every piece
was inspected before it was loaded. The Kelsey Wheel
Co. put in additional machinery for the manufacture of automobile
spokes
and wheels some time ago, and it is operating at present on a somewhat
liberal
scale.”
The August 1, 1915 issue of The Horseless Age
hints
that an independent engineer who worked out of the Herbert Mfg Co.
building was planning on building
his own automobile:
“Nelson Designing New Car.
“Emil A. Nelson, located in the Herbert
Mfg. Co. building
at 570 West Kirby avenue, Detroit, is designing a new car which will be
placed
on the market before the end of this year. He told The Horseless Age
representative
that it would probably be several months before he would complete his
plans.”
Production
of the Nelson Automobile commenced in 1917, and a reported 350 vehicles
were contructed into 1920-21 when the firm succumbed to the post-war
depression. Nelson also held a number of US Patents, which were
assigned to
firms such as the Oldsmobile, Packard and Hupp motor companies.
The body-building operations of the Herbert Mfg.
Co. were such that a recapitalization was required in late 1915, the
October 1915 issue of Mill Supplies reporting:
“The Herbert Manufacturing Co., Detroit,
Mich., manufacturer
of automobile accessories, has increased its capital stock from
$300,000 to
$500,000.”
Things were going well at all of John C. Kelsey's
numerous operations and the July 26, 1916 issue of Copper, Curb
and
Mining Outlook hinted that a major reogranization was underway:
“Kelsey Wheel Co. - A new offering is to be
made and a
market found on the curb for the Kelsey Wheel Co., which is
to have
$3,000,000 7% cumulative preferred stock and $10,000,000 common. The
company is
to take over the Kelsey Wheel Co. of Michigan; its
subsidiary,
the Kelsey Wheel Co. of Tennessee; the Herbert Manufacturing
Co. of
Michigan, and the Kelsey Wheel, Ltd., of Canada.”
The July 26, 1916 issue of Motor World gave
a detailed
account of the Kelsey reorganization:
“Kelsey Wheel Interests Merge: United
as Kelsey Wheel
Co. With Capitalization of $13,000,000
“DETROIT, July 22—The consolidation of
the Kelsey Wheel
Co., with plants at Detroit and Memphis, Tenn.;
the Kelsey
Wheel Co. of Windsor, Ont., and the Herbert Mfg. Co., Detroit,
practically
has been completed, the new corporation to be known as the Kelsey
Wheel
Co., Inc., with a capital stock of $13,000,000, composed of
$3,000,000 of
7 per cent cumulative preferred and $10,000,000 common.
“John Kelsey is to become president of the
new corporation,
but the rest of the officers have not yet been determined. Control of
the new
organization will remain with Kelsey and the others already associated
with him
in the several companies entering the merger. Kelsey is the leading
figure in
the several companies above mentioned, and it is largely due to his
genius that
these enterprises have grown to their present great size.
“Few realize the enormity of the Kelsey
interests, both here
and in the South. At the main Kelsey plant in this city twenty-five
sets of
wood wheels are produced daily, complete with rims. In the making of
automobile
rims the Kelsey company now ranks at the top, and utilizes 150 tons of
steel
per day for this product alone. The Herbert Mfg. Co. makes 500
automobile
bodies per day, besides finishing and trimming a large proportion of
them. This
plant is also a very large producer of a variety of steel stampings
required in
the manufacture of motor vehicles.
“The Memphis, Tenn., plant of the
Kelsey company
represents an investment of $500,000 and is the factory at which the
hickory
used in the manufacture of the wheels is concentrated. It is here
worked into
spokes and felloes, the completed wood wheels then being sent to
Detroit, where
they receive their steel rims. The Kelsey company located in Windsor,
Ont., is
a separate corporation, but includes most of the same stockholders. It
is the
Canadian car manufacturers' main source of wheel supply. The Detroit
Kelsey
company has an authorized capital stock of $1,500,000, all of one
class, and
$900,000 of this is outstanding.
“The preferred stock of the Kelsey
combination is
underwritten by Sachs, Goldman & Co., New York bankers, and the
common is
said to have been oversubscribed. In the organization plan there is
provision
for retiring the preferred stock at the rate of $90,000 per year. It is
proposed to make the consolidation effective from Jan. 1, 1917.
“There are no immediate plans for expansion
of the plant nor
for changes in the several companies entering the merger. Each will
operate as
heretofore for the time being.”
John C. Kelsey provided a brief history of the
firm in the July 29, 1916 issue of The Commercial and Financial
Chronicle:
“Kelsey Wheel Co.,
Inc.—Over-Subscribed.—Lehman Bros,
and Goldman, Sachs & Co., announced on Saturday last, that the
block of 7%
cumulative pref. stock of this new company for which advance
subscriptions were
received privately on July 21, had been largely over-subscribed.
“Capitalization of the Company, to be
Incorporated in New
York or other State.
“(No Mortgage or Funded Debt). Preferred
stock (par
value $100), entitled to 7% cum. prof, dividends, payable quarterly
(first div.
payable Nov. 1 1916).,$3,000,000.
“Common stock (par value $100) -10,000,000.
“Digest of Letter from John Kelsey, Pres.
of Kelsey
Wheel Co. (of Michigan). Detroit. July 21
1916. Organization. It is
proposed to organize a now company to take over as of Dec. 31, 1915 the
entire
assets and business of Kelsey Wheel Co. of Michigan and Herbert
Mfg. Co. of Michigan, as going concerns, and the capital stock
of Kelsey Wheel Co.. Ltd., of Canada and of the Kelsey Wheel
Co. of
Tenn.. all of which I am President and the largest stockholder.
“The business of the Kelsey
Wheel Co. of Michigan
was started by me in 1909. with a paid In cash capital of $50,000, to
which
additional cash capital, amounting to $75,000. was added in 1910 (V.
102, p.
1630). Kelsey Wheel Co., Ltd.. of Canada, was started in 1914
with a
paid in cash capital of $100,000 - Herbert Mfg. Co. was started in Aug.
1911
with a paid in cash capital of $50,000. The entire original cash
investment In
the companies to be taken over amounted then to $275,000. Their
combined net
tangible assets were on Dec. 31 1915 in excess of $2,500,000, in
addition to
which substantial dividends were earned and paid.
“The businesses have been successful from
the start and have
grown as fast as manufacturing facilities could be provided.
The
result has been that the Kelsey Wheel Co. now owns and
operate* the
largest complete automobile wheel plant In the world, and makes wheels
for the
most prominent automobile manufacturers of the country under annual
contracts,
terms cash in 30 days. Our soiling and commercial expenses are,
therefore,
nominal and no large stocks for finished products are necessary. We
were the
first company to turn out for the automobile manufacturer a complete
wheel
ready for the tire. As the automobile manufacturers find it cheaper to
purchase
their wheels from a concern specializing in that output than to
endeavor to
manufacture wheels needed only for their own cars. I feel we should
have a
steady and growing demand. We employ about 3,475 people.
“Management — The present managers of the
combined
businesses, who have been responsible for their successful growth, will
retain
ownership of a majority of the common stock of the new company and will
continue as active managers and directors.
“Patents — This company owns valuable patent
rights and has
been advised by eminent counsel that it is fully protected thereunder
in all
its manufacturing processes.
“Finances, Ac. — There will be paid into the
new company
$500,000 additional cash capital. Part of this capital will be used In
providing increased manufacturing facilities which are needed to enable
us to
keep pace with our rapidly growing business and for developing service
depots
throughout the country - The new company takes over the combined
businesses as
of Dec. 31 1915 and will have net tangible assets as of that date in
excess of
$3,000,000. It will have no mortgage or funded debt.
“We have at present orders on our books
amounting to
$10,000,000, which will absorb our capacity for almost a year, although
we are
running three shifts of men eight hours per shift. We use 50,000 tons
of steel
per year and 20.000,000 feet of hickory. At our Memphis plant we have
our own
sawmills and wood-working plants, and we there obtain the advantage of
very low
labor and raw material costs. Our main manufacturing plants are located
In
Detroit, the centre of the automobile industry, and we thereby
eliminate, to a
very great degree, freight charges.
“Profits of Combined Companies for Calendar
Years 1914 and 1915 and for Six Months ending
June 30,
1916.
Year
|
Sales
|
Profits
|
1916*
|
$3,949,222
|
$590,525
|
1915
|
$5,227,523
|
$794,133
|
1914
|
$4,204,806
|
$509,492
|
*First six months, estimated total for all 12
months
$1,000,000.
“Touche, Niven & Co. will examine our
books and accounts
and certify as to the above sales and profits. The net profits of the
new
company for the calendar year 1916 will be considerably over
$1,000,000.”
The August 26th, 1916 issue of Automobile
Topics states that
the formal merger of Kelsey Wheel Co. was completed on that date.
Many of the images shown to the right were
taken from a circa
1917 Kelsey Wheel Co. catalog supplied by collector George Albright of
Ocala,
Florida. It indicates that not only was Kelsey producing wheels and
bodies, but offered a complete line of aftermarket accessories for the
Ford Model T.
Although rare today, Kelsey sent out thousands of
the leather-sheathed catalog to the nations numerous Ford Motor Co.
distributors, who would show it to cusomers desiring something that
would help make their motor distinctive and more comfortable. Kelsey
Wheel accessories could also help modernize an earlier Model T with the
addition of new wheels, fenders and a more modern body and convertible
top. When combined with the pictured radiator shroud, which was
designed to fit over an old brass-era radiator shell, and a matching
Kelsey hood, a circa 1912 Model T could be made to look just a like a
brand new 1917-1918 model.
Kelsey was also a major contributor to the
Allied war effort, producing thousands of wooden artillery wheels for
WWI military wagons and gun carriages, the January 9, 1918 issue of
Motor
World
reporting:
“$3,000,000 War Order
“LANSING, MICH., Jan. 4 — The Prudden Wheel
Co. and the Auto
Wheel Co. have received a Government contract calling for $3,000,000
worth of
escort wheels. These contracts must be completed by Dec. 31, 1918, and
are
proportional to the representative productive capacities of the two
concerns.
It is estimated that the Auto Wheel Co. will require 800 additional
employees
to complete the work in that time. Other big orders calling for the
same type
of wheel have been placed with the Kelsey Wheel Co. of
Detroit and
the Hayes Wheel Co. of Jackson.”
He also helped found the Detroit Shell Company,
whose formation was announced in the March 1918 issue of The Hub:
“Shell Company Formed by Detroit Automobile
Men
“A $2,000,000 corporation has been formed in
Detroit to make
shells for Uncle Sam. It is to be known as the Detroit Shell Co.. and
has for
its officers men prominent m the automobile and allied industries. They
are:
President, John Kelsey, president of the Kelsey Wheel
Co.; vice-presidents, Harry M. Jewett, of the Paige Motor Car Co.,
and
Roscoe B. Jackson, of the Hudson Motor Car Co.; treasurer, Edsel Ford,
of the
Ford Motor Co.. and secretary, J. Walter Drake, of the Hupp Motor Car
Co.
“Incorporation of the company followed
shortly after the
visit of the Automobile Industries Committee from Washington. Hugh
Chalmers,
chairman; A. W. Copland and John K. Lee. and the offer of an initial
contract
for $30,000,000 worth of munitions, with the prospect of more business
to
follow. The new company has taken over the immense new plant of the
Springfield
Body Co., in Springwells, containing some 200,000 sq. ft. of floor
space and it
is anticipated that between 8,000 and 10,000 men will be employed.”
Kelsey subsequently received an $8 million wheel
order which was reported in the May-August 1918 rerpot of the Standard
Corporation Service:
“KELSEY WHEEL CO. INC. May – An order for
$8,000,000 Worth of
Wheels – It was announced May 23, 1918, that the company had received
an order
for $8,000,000 worth of wheels. To take care of this order Mr. Kelsey
bought 12,000,000
feet of white oak in Kentucky and shipments of the oak into Detroit
have begun.
“Mr. Kelsey is also the head of Detroit
Shell Co. This
concern is working on an order for $30,000,000 worth of small shells.”
Kelsey also managed to find time for recreation
and in 1918 helped found the Grosse Ile Golf and
Country Club,a nationally-known 18-hole golf course situated on a 290
acre plot located in the center of the
island.
One of Kesley's major contribution to the
automobile wheel business was the introduction of the steel felloe. The
April 11, 1918 issue of Automotive Industries provides the basic
details:
“Kelsey Wheel with Metal Felloe Saves
Hickory
“THE Kelsey Wheel Co. of Detroit
has brought out a
wheel with a metal felloe band in place of the usual wood type. The
advantages
resulting from this method of construction are that it obviates the
consumption
of wood of a kind which is difficult to obtain at the present time and
that it
gives a wheel which is equal in strength and resiliency to the usual
wood wheel
at a lower cost.
“For some time the Kelsey Co., which
furnishes manufacturers
of passenger cars in and around Detroit with approximately 500,000 sets
of
wheels annually, has had its engineers working on this problem. Up to
this time
the company has used a wood felloe band construction with the
connection
between the spoke and the felloe reinforced by a flange clip. This
fastening
device, known as the "flanged over edge" type, has been used to
strengthen the wood felloe and maintain the rigidity of the wheel. The
new
construction gives a wheel for which the same service is claimed, as
well as saving
half the wood formerly required.
“In the Kelsey construction a steel felloe
is used which is
of endless channel shape section, extensible and in a single piece. On
each
spoke. is placed a stamped steel ferrule, which protects the spoke when
going
into the felloe, giving a weather-proof and check-proof joint. The wood
spokes
and ferrule are forced into the steel felloe under hydraulic pressure.
They are
turned true to size and mitered, both at the flange and the hub, and
arranged
in staggered relation. When glued, the spokes are forced under heavy
pressure
radially outward in a tenanting socket of the endless steel felloe by
opposite
pressure applied at the center of the wheel. This gives a high degree
of
tensioning and a permanent assemblage of the wheel. Although bolts are
used in
the hub, these are not depended upon to hold the spokes in place, as
the
tensioning mentioned is more than sufficient to take care of this.
Tests on a
wheel with 1/2 in. spokes (corresponding to a tire size of 30
x 3 1/2
in.) have shown it to be capable of supporting a radial load of 2000
lbs.
“The Kelsey Co. has been developing this
type of wheel for
four years, and placed several sets of them among manufacturers for
trial. The
results obtained have led to the adoption of the type as a standard
stock
product and they are now being produced in quantities.”
The steel felloe was a crucial step in the
development of the composite wood and steel automobile wheel, a fact
that did not escape Clark B. Firestone, who provides a very detailed
account of
its development in the following excerpt from his book, Army Ordnance:
History
of district
offices, [1918-19], pub. 1920:
“Detroit: Introducing the Steel Felloe.
“One of the important new things which
Detroit gave the
country was the steel felloe—vital for conditions of speed and urgency
such as
obtained in the World War, promising in its possibilities of peace
service.
This device was the product of that necessity winch conceives
invention: and
the necessity of producing it was that of the Kelsey Wheel
Co., maker
of automobile wheels and their parts.
“The company had orders from both Ordnance
and
Quartermaster. The latter was for escort wheels used on the
transportation and
supply wagons, on which the plant attained its scheduled output of 600
a day.
Ordnance gave it a novel and difficult task, the manufacture of wheels
for the
75-millimeter and 250-millimeter gun carriages. Both types of wheel
were
unknown here, the 75-millimeter differing from the standard type of
wheel in
that it required more dish in manufacture, the 250-millimeter being
larger than
the standard 60-inch American wheel.
“With contracts which would require
25,000,000 feet of logs
to fill, the company went into the southern woods. This was in
February, 1918,
when the rainy season was on in the South and the overflow from the
Mississippi
River had backed into the forests. The logs obtained were grass-green
and
winter-cut instead of fall-cut. Although prewar custom was to use only
air-seasoned stock for artillery wheels, war demand had speedily
consumed the
supply of dry stock of available size. It was necessary to make the
best
possible use of this grass-green stock, drying it by artificial means,
since
the air-dried stock dried only 1 inch to the year, and the material was
4
inches thick.
“The company ran into difficulties when it
attempted to
speed up the seasoning processes of nature. Kiln-drying required a
delay of
from four to six months for material needed at once, and despite all
care taken
the green stock developed what is known as hollow-horn, holes due to
the
breaking down of wood cells, making the rims worthless. At the same
time these
pieces of unusual size were not behaving right after they had passed
through
the steam retorts and gone to the bending machines. In common with
other makers
the company found that a large portion of the stock was buckling in
bending,
and breaking the backs of the rims. When it saw that from available
stock it
could not get 3 per cent of its needs, it turned to a field of
experiment in
which, as a maker of automobile wheels, it had been interested for two
years;
and it brought its plans and tests to a quick constructive conclusion.
The result
was the steel felloe.
“Passes all tests.
“On August 19, 1918, the Kelsey Wheel
Co. submitted to the Ordnance Department its designs for a channel
rolled-steel felloe to take the place of wood and interchange with it.
Five
days later word came to go ahead and 15 days thereafter sample wheels
were
ready and put under a direct load of 12,000 pounds over the axle.
Eighteen days
afterwards the wheels had passed the 1,000-mile point, and Maj. James
Guthrie,
who had the test in charge, reported to Washington:
“They are giving perfect satisfaction in
spite of the fact
that the roadbed is exceedingly rough and the load perhaps more than
will ever
come on the wheels when in use with the battery. The wood situation is
apparently tightening up in every direction, and there is increasing
loss due
to the attempt of the wheel manufacturer to hasten the drying, which
holds up
production all along the line. We advise the use of the steel felloe.
“The test went on to 5,000 miles without
change of wheels,
and meanwhile the company got to work. By October 15, 1918, it was in
production according to schedule, and what seemed an unavoidable delay
of from
four to six months had been averted. By the time of the armistice the
company
was in shape to relieve the shortage of wood stocks for bent rims and
to
furnish Ordnance with the steel felloe design on any type of wheel, in
any
needed quantity.
“One advantage of this felloe is that it
allows the wheels
to be stored without deterioration. The spokes will not shrink or dry
out
lengthwise, as this is contrary to the structure of either oak or
hickory, and
the felloes, where the shrinkage would naturally take place, are of
steel.
Because the latter do not split and because of the shortage of wood
stock, many
automobile and truck-wheel manufacturers have begun using them in
commercial
practice.
“The Kelsey Wheel Co. also made
for the Ordnance
Department the standard 60-inch artillery wheel hub and the large
hub-for the
240-millimeter wheels, their daily production being 250.
“As was to have been expected, the
district's wheel
production shows up large. Output figures as of June 9, 1919, include
the
following: ?? by 4 inch artillery wheels, 3,800; 1,334-millimeter
artillery
wheels, 1,707; 130 by 90 millimeter artillery wheels. 2,193; 6O by 8
inch
artillery wheels. 3,800; steel felloe bands. 1,020: 50-inch
artillery-wheel
hubs, 58,300; 60-inch artillery-wheel hubs. 1,400; spokes for 56-inch
artillery
wheels, 246,250: bent rims for 56-inch artillery wheels, 20,850; spoke
shoes
for 56-inch artillery wheels. 1,000,000: spoke shoe plates, 71,100;
axles for
4.7-inch gun carriages. 579; axles for reel carts, 2,408.”
During 1918 a reported 80 percent of production
capacity was devoted to producing wheels for the war effort. The March
27, 1919 issue of Automotive Industries
provides insight into Kelsey Wheel Co., finances at the time:
“Kelsey Wheel Has $2,067,904 Surplus
“DETROIT, March 22—A surplus of $2,067,904 is
shown in
the Kelsey Wheel Co.'s financial statement for the year ended
Dec. 31
last, after all necessary deductions were made and $355,022 put aside
as
provision for federal taxes. This amount is $583,229 ahead of 1917
surplus.
$1,565,625 is still due from the government for war contracts.
“Consolidated balance sheet of Kelsey
Wheel Co.,
Inc.,and subsidiaries, as of Dec. 31, 1918 and 1917, compares as
follows:
Assets
|
1918
|
1917
|
Plant equipment, etc.
|
$2,457,577
|
$2,519,509
|
Patents, good will, etc.
|
$10,000,000
|
$10,000,000
|
Investments in other companies
|
$59,000
|
|
Inventories
|
$2,104,089
|
$2,212,839
|
Notes and accounts receivable
|
$841,970
|
$932,508
|
Cash
|
$222,474
|
$333,830
|
Due from U. S. Government
|
$1,565,625
|
|
Liberty bonds, etc.
|
$176,082
|
$65,347
|
Insurance premiums
|
$14,644
|
$10,475
|
Deferred charges
|
$88,257
|
$49,454
|
Total
|
$17,529,719
|
$16,123,960
|
|
|
|
Liabilities
|
|
|
Preferred stock
|
$2,909,000
|
$3,000,000
|
Common stock
|
$10,000,000
|
$10,000,000
|
Notes payable
|
$1,090,000
|
$290,000
|
Accounts payable
|
$832,338
|
$758,315
|
Sundry creditors, etc.
|
$275,455
|
$234,383
|
Provision for taxes
|
$355,022
|
$326,587
|
Surplus
|
$2,067,904
|
$1,484,675
|
Total
|
$17,529,719
|
$16,123,960
|
Flush with cash, Kelsey embarked upon a building
camapign, the April 24, 1919 issue of Automotive Industries reporting:
“Kelsey Wheel Addition - WINDSOR ONT., April
12 - A building
permit has been granted to the Kelsey Wheel Co. for the erection of an
addition
to the plant.”
The August 7, 1919 issue of the same publication
announces a proposed expansion in Memphis:
“KELSEY TO EXPAND
“NEW YORK, Aug. 2—Announcement has been made
here that
the Kelsey Wheel Co., Inc., of Detroit, plans the expenditure
of
$1,000,000 to increase its manufacturing facilities
at Memphis, giving employment to 4,000 workers. Forty acres
of land
have been purchased for the additional facilities. The company produces
parts
for the Ford car.”
The firm's automobile body busines was also
expanding at the time as evidenced by the following item in the October
1919 issue of Packages:
“The Kelsey Wheel Co., Memphis, has begun
the erection of a
large addition to be completed in February 1920 for the manufacture of
bodies for
the Ford Motor Car Co.; $70,000 worth of saw mill machinery has been
ordered
already and orders for power machinery, boilers etc. will be extensive.”
The June 12, 1919 issue of Automotive Industries
reported that the firm was posied to produce a record 800,000 wheel
sets - approximately 4,000,000 individual wheels:
“800,000 KELSEY WHEEL SETS IN 1919
“DETROIT June 7 - The Kelsey Wheel Co.’s
1919 output will be
800,000 sets of wheels as against 690,000 in 1918. In addition to
automobile
wheels the company is now making automobile bodies and brake bands.”
The October 4, 1919 issue of American
Contractor reveals
that Maurice Grabowsky was the firm’s chief engineer (I could
find no evidence he was directly related to Detroit's famous family of
truck and body builders who shared the surname):
“Factory (add.): 2 sty. 140x340. McGraw av.
& P. M. R.
R. Struct. Engr. L. D. Zimmerman, care owner, McGraw av.
plant.
Owner Kelsey Wheel Co., Maurice Grabowsky, chief engr., 1208
Military av.
Brk., re. cone. Plans in progress.
Factory (add., storage): 1 sty. 30x 130. 576
W. Kirby. Mech.
& Struct. Engr. L. D. Zimmerman, care Kelsey Wheel
Co. Owner Maurice Grabowsky, ch. engr., 1208 Military av. Brk.
&
steel. Taking bids.”
Kelsey's wheels were on 70 percent of Ford's
cars
by early
1920, the 1920 edition of the annual Michigan
Bureau of Labor and
Industrial Statistics Report listing three separate Kelsey Wheel
facilities in Detroit, two
wheel factories and one automobile body plant:
Kelsey Wheel Co. plant #1 – Automobile
Wheels; 1560 male
emp., 18 female – total 1578. Kelsey Wheel Co. plant #2 - Automobile
Wheels;
600 male emp., 6 female – total 606. Kelsey Wheel Co. plant #3
Automobile
Bodies; 551 male emp., 34 female – total 585.
The October 28, 1920 issue of American Machinist
pictured a sheet metal welding machine installed at a Kelsey Wheel body
plant:
“The Winfield Machines - The machines made
by the Winfield
Electric Welding Machine Co., Warren, Ohio, comprise a varied line for
every
conceivable spot welding purpose. A very interesting machine is shown
in Fig
410. This has the entire head suspended from the ceiling so that work
like the
automobile body shown may be worked under it. This
machine is in use in the plant of the
Herbert Manufacturing Co., Detroit.”
The April 21, 1921 issue of Automotive Industries
announced that the firm's recently constructed Memphis body plant was
nearing completion:
“Kelsey Wheel Co., Memphis, Tenn., is
nearing completion of
its new body plant which is expected to have a production capacity of
500
bodies a day.”
The September 1, 1921 issue of Automotive
Industries reported on the passing of a Kelsey executive:
“Kelsey Wheel Official Dies After Long
Illness
“DETROIT, Aug. 31— James S. Stevenson,
vice-president of the
Kelsey Wheel Co., died here Tuesday after a two years illness. He had
been a
resident of Detroit since 1887, joining Berry Bros. Inc., and later
becoming
general manager of that company.”
The October 27, 1921 issue of Automotive
Industries reported on a patent infringement case that would ultimately
play a roll in the merger of the two parties involved:
“KELSEY INFRINGED PATENTS
“DETROIT, Oct. 26— Federal District Court
here has decided
patents of the Universal Wheel Co. have been infringed by the Kelsey
Wheel Co.
The decision affects royalties on rims manufactured by Kelsey prior to
1917,
according to Kelsey officials. An appeal to the Supreme Court will be
taken.
John Kelsey, president, says the total sum involved is nominal and has
been
covered by a reserve for some time.”
Although Kelsey' new Memphis Body plant had been
ready to go months earlier, as of February 1st, 1922, no bodies had
been produced. The February 3, 1922 issue of Lumber (Manufacturer and
Dealer) provide the details:
“Kelsey Auto Body Co. Plans to Raise Output
“Memphis, Tenn., Jan. 30. — The Kelsey Auto
Body Co. has a
contract for bodies from the Studebaker Co. and it has placed its plant
here in
operation with about fifty men on the payroll. It plans to increase the
output
as rapidly as conditions will permit. The management states that it had
a
contract with the Ford Motor Car Co. and that the plant, which cost
approximately $1,750,000, was built to take care of the Ford
requirements. This
contract, it states, however, was cancelled before the plant was placed
in
operation, with the result that it has been idle until a few days ago.
The
company also erected a sawmill and purchased quantities of cypress and
gum
lumber to be used in the manufacture of bodies, thus bringing its
investment
close to $2,500,000.
The auto body plant is separate from the
plant operated by
the Kelsey Wheel Co.”
The reason for the cancellation was that soon
afer the contract was signed Henry Ford had decided to build his own
woodworking and body plant in Iron Mountain, Michigan. The July 20,
1922 issue
of Motor Age reporting:
“FORD BODY PLANT ENLARGES
“MILWAUKEE, Wis., July 17 — The Ford Motor
Co.'s body plant and
principal woodworking factories, established a year ago at Iron
Mountain, Mich., under the name of the Michigan, Land, Lumber &
Iron Co., will be doubled in size at once by the erection of a second
unit. This has come to light through the letting of a contract to the
Worden-Allen Co. of Milwaukee for the structural steel work on the new
shop. The Iron Mountain plant is in the heart of the best growth of
hardwood timber as well as an extensive softwood belt in the Upper
Peninsula of Michigan.”
Luckily other customers materialized and
automobile body production had commenced by the time the Northeastern
Retail Lumbermen's Association toured Kelsey's Memphis plant in
mid-March, the March
18, 1922 issue of American Lumberman reporting:
“Busy Day Spent At Memphis
“Memphis, Tenn., March 15. — Members
of the third
annual excursion of the Northeastern Retail Lumbermen's Association
arrived in
Memphis this morning from Crossett, Ark., where they spent yesterday,
sixty-eight strong.
“The visitors spent a very busy day
sightseeing, inspecting
plants where hardwood lumber and lumber products, including flooring,
veneers,
spokes and auto bodies, are manufactured and in being entertained by
the
Lumbermen's Club of Memphis.
“Members of the club in automobiles met the
excursionists at
the Grand Central station, brought the ladies to the hotel and then
took the
lumbermen to the plants of the Kelsey Wheel Co., Kelsey Auto Body
Co., Memphis Hardwood Flooring Co., and E. L. Bruce & Co.,
manufacturers of hardwood flooring. After the luncheon, members of the
party
were driven to the hardwood mill and veneer plant of Nickey Bros.
(Inc.), at
Binghamton, a suburb of Memphis, where they continued the inspection
work begun
during the forenoon.
“The visitors expressed themselves as amazed
at the
immensity of the plants and the efficiency of the operations. They were
informed at the plant of the Kelsey Wheel Co., where they saw all
processes in
the manufacture of spokes from the log to the finished product, that
this firm
is turning out 150,000 spokes a day with five hundred men, who
accomplish as
much as the eleven hundred employed during the war period and that
immediately
following the armistice as a result of the greater efficiency
being shown.
At the plant of the Kelsey Auto Body Co., where only fifty
men are
employed, they were told that four hundred knocked-down bodies are
being turned
out daily. This concern only recently started operations and is just
now
beginning to get its working organization rounded into shape. J. E.
Mahannah,
general manager of the Kelsey Wheel Co., greeted the visiting lumbermen
on
their arrival at the Kelsey plants and took pleasure in showing them
thru all
departments.”
The April 22, 1922 issue of Automotive Industries
reported that Kelsey's Kirby Ave. body plant had received an
order from the Gray Motor Co.:
“Kelsey Wheel to Make Bodies for New
Gray
“DETROIT, April 26 — The Kelsey
Wheel Co., Inc.,
will make the bodies for the new Gray motor cars, in both open and
closed
models. Until within the past year, Kelsey was a big producer
of Ford
bodies, having a capacity for over 1000 bodies daily. This work was
discontinued with the opening by the Ford company of its own body
making plant.
“First bodies for the Gray line are now
under construction
in the Kirby Avenue plant of the Kelsey company.”
By 1922 Kelsey's authorized capital had been
raised to
$13,000,000 and
the firm employed 2,700. In addition to the firm's well-known wheels,
hubs, brake drums, rims,
and bodies, they began offering all-steel wheels for the popular
Fordson tractor what were marketed under the ‘Kelsey Industrial Units’
moniker.
March 24, 1922 Lumber (Mfr. & Dlr.):
“The Kelsey Wheel Co., North Memphis, which
is turning out 150,000
spokes per day for automobiles, says through A.E. Mahannah, its
manager, that
it is working at capacity although it is employing only 500 as compared
with
1,100 during the war and the period immediately following the
armistice.
Increased efficiency given as the explanation.”
The Memphis-based Kelsey Wheel
Co., Body Div., (aka
Kelsey Auto Body Co.), was sold off to the Fisher Body Co. in 1923,
the December
1923 Manufacturer’s Record reporting:
“Fisher Body Corporation Acquires Saw Mill
and Body
Woodworking Plant at Memphis. - Memphis, Tenn., November 10 —
[Special] — A
tract of 45 acres of land, a double band saw mill with an annual
capacity
of 50,000,000 feet of hardwood lumber, dry kilns, storage for
75,000,000 feet
of lumber, together with a body woodworking plant, all belonging to
Kelsey
Wheel Co. here, have been acquired by the Fisher Body Corporation of
Detroit.
The Kelsey Wheel Co. will limit its Southern operations to the
manufacture of
wheels and parts. Within the past year the Fisher Body Corporation has
acquired
plants at Pontiac, Flint and Lansing, Michigan; Buffalo, N.Y.; Oakland,
Cal;
Janesville, Wis.; Cincinnati and St, Louis., in addition to a new plate
glass
plant at Ottawa, Ill., for the National Plate Glass Co., a subsidiary
of the
Fisher Body Corp.”
Albert E. Mahannah passed away near the end of
1924, the October 13, 1924 Memphis Commercial Appeal reporting:
“A.E. Mahannah Dies After Long Illness - Vice
President KElsey Wheel Co - Succumbed Yesterday
“Albert E. Mahannah 60, for the past 13 years
Vice-President and General Manager of the Kesley Wheel Company of
Memphis, died after a long illness at his home 1577 Carr Avenue,
yesterday morning at 4:20 oclock. Mr. Mahannah has been in failing
health for some time and his last illness continued over a period of
four weeks.
“Mr. Mahannah was born and reared in Cortland,
Ohio. He was educated in the elementary and preparatory schools of that
city and later attended Albany College in Ohio. He afterwards became
identified with the lumber industry of Marietta, Ohio and
subsequently of Brownsville, Tennessee and Lyon, Mississippi.
“Coming to Memphis from Lyon about twenty years
ago, Mr. Mahannah took his place among the leading business men of the
city and has been prominently identified with the growth of the lumber
business in Memphis and territory, particularly referring to the wheel
and spoke industry.
Under his able management the Kelsey Wheel Works prospered and today
presents itself as one of the industrial monuments of the city.”
At the firm's next board of
directors meeting, his son, J.C. Mahannah, a 10-year Kelsey Wheel Co. veteran,
was elected to succeed his father as head of the company's Memphis
subsidiary.
Kelsey later partnered with fellow Ford body
supplier Walter
O. Briggs in acquiring a half interest in the Detroit Tigers, Detroit’s
American League baseball club. He was also associated with the Detroit
Athletic
Club as President and reportedly “kept the D. A. C. alive for years by
paying
all the bills as they came due.” He was also a member of the Detroit
Board of
Commerce, Detroit Automobile Club, Bloomfield Hills Country Club and
Grosse Pte.
Golf and Country Club. During the winter he lived at 5205 Cass Ave.,
and during
the summer at his Grosse Pte. estate.
The firm listing in the 1927 Chilton Directory
follows:
“Kelsey Wheel Co.,
Inc. (Auto wheel
rims, hubs and tractor wheels) Plant. 3800 Military Ave., Detroit,
Mich. Pres.,
John Kelsey Sec.. L.C. Brooks Prod. Mgr., Harold V. Fox Works Mgr.,
W.J. Kaltz
Pur. Act., A.G. Conklin Chief Engr.”
While both the Kelsey Wheel Company and the
Hayes Wheel
companies got their start with the production of wood wheels, by the
early 1920s both
firms were expanding into the production of wire wheels which by 1927 made up 25% of the market. Wire wheels were
cheaper to
produce and they were replaceable and transferrable from one axle to
another
(while wooden artillery wheels came as part of the entire axle assembly).
John C. Kelsey passed away on January 21,
1927 at the age of
59. Kelsey's directors saw an opportunity to increase their
already
substantial profits through a merger with their chief competitor, The
Hayes
Wheel Co. However a lawsuit threatened the merger as Kelsey's had been accused of violating a patent that dealt
with the critical issue of mountability of wire wheels that had been
issued to Edward Cole and assigned to the Packard Motor Car Co. Packard
had turned over its licensing arrangements to the Wire Wheel Corp. of
Buffalo,
New York, a major competitor of Kelsey's who, not surprisingly, refused
to allow them to use it.
In collaboration with the firm's attorneys, Kelsey's
successor, George
Kennedy, came up with an elegant solution to the firm's patent
problems. They purchased the Wire Wheel Corp. and bought the rights to
Cole's patent from Packard for $500,000, paving the way for the 1927
merger which was first announced on April 27, 1927, the Pittsburgh
Post-Gazette reporting:
“TO BE KELSEY-HAYES WHEEL
“The Kelsey Wheel Co. of Detroit and the
Hayes Wheel Co. are
to be merged and the new company will be known as the Kelsey-Hayes
Wheel
corporation, according to an announcement authorized by officials of
the Hayes
Co. All common stock of the Hayes Co. is to be bought by the new
organization.
Holders are to receive $15 in cash and a half share of stock in the
Kelsey-Hayes corporation for each share of common. About $3,000,000 is
to be
paid out and 96,522 shares of new stock will be issued. The new concern
is to
be functioning by the latter part of June.”
On May 23, 1927 Hayes stockholders approved the plan
to sell
substantially all of the assets of the company to the Kelsey Wheel
Co.,
Inc., which was consequently reorganized as the Kelsey-Hayes Wheel Corp.
By that time Kelsey
Wheel Co. had long-since stopped the manufacture of automobile bodies
(1923),
so the story ends at this point.
© 2012 Mark Theobald - Coachbuilt.com
Appendix I:
George Albright supplied the photos,
he also owns one of three known Kelsey Wheel Co. aftermarket bodies. He
writes:
“I bought the Kelsey body today to put
on my Kelsey prototype chassis/running gear. Bought it from the poster
Gene Elkins, of Tn. I found out this Kelsey body was made by the Kelsey
Wheel Co. of Detroit. I just bought a factory brochure from 1917
showing this exact body in it! Kelsey made wheels and bodies and merged
with Hayes Wheel Co. in 1927 to become Kelsey Hayes Wheel Co. This was
an aftermarket body for Model T Fords which are 100 inch wb. Since my
Kelsey chassis is made partially of Model T parts and is also 100 inch
wb, it will be a great fit! My body was removed by Mr. Kelsey himself
in the 1920s and discarded, and the chassis stored in the Troybilt
factory in Troy N.Y. until 1970 when it was removed by automotive
historian Keith Marvin. Even though its two different Kelsey Companies,
it is the correct year size, style, etc body as the original. A great
ending to a great story.”
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