Peter Kuntz Illustrated Story

PETER KUNTZ SR.
HIS LIFE, HIS FAMILY, & HIS FIRM
AN ILLUSTRATED STORY
This narrative is a chronological account of my grandfather‘s life and a history of the enterprise
he founded and led for almost 60 years before his death. As such, it involves his wife and children,
especially his six sons. Following his death, they managed the firm that bore their father‘s name, The
Peter Kuntz Co., plus all of its subsidiaries. Because he and all of his children and their spouses in the
story are deceased, there are few first hand accounts. Instead, it is a series of facts and legends gleaned
from some contemporaries plus a few, but significant, written accounts. Some family data were obtained
from court documents and others via the Internet or e-mail from friends and family. From 1950 to 1986
much of the company history was drawn from personal experience and that of co-workers. In many
ways it is a quintessential American story—immigrant boy makes good in land of opportunity—but
there are enough unique elements which I hope will hold your interest and give you a better
understanding of the real person who influenced a great many lives, namely his family and his
employees and associates.
Note: Illustrations throughout the story are available in higher resolutions at
http://www.peterkuntz.com/ .
I. Significant Dates and Events during Peter Kuntz Sr.’s Life
Nov. 16, 1838 – Peter Kuntz Sr. is born.
Place of birth – Germany, Grand Duchy of Hesse Darmstadt, (city not certain-could be
Mainz, Bingen-on-Rhine, Kreuznacht, or Langenwinkel).
Father – Martin Kuntz, Mother – Mary Ann Waggoner- (could be Marianne Wagner,
spelling not
certain).
July 2, 1842 –
Arrived
with
family – father,
mother, 1 sister
and 4 brothers (he
was the youngest
child) aboard the
ship ―Warsaw‖ at
New York, NY
after embarking
from Le Havre,
France. (See ship
manifest at left.)
Nothing further is
known precisely
about him or his family for the next eight years. It is believed they migrated first to Pennsylvania
before moving westward to Ohio.
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Aug.26, 1850 – Census document shows him living with parents and family in Greenville, OH.
His father had just become an American citizen a few years previous. (See both documents
below.)
There are no specific dates recording his activities for the next 25 years. Stories of him going
west to Illinois to farm and clear forests are recounted later in this narrative. It is claimed he had
no more than the equivalent of 5 weeks schooling but that his love of reading and basic
arithmetic led him to learn on his own. ( See 3 photos of Peter in his early days.)
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He later returned to Darke County, OH, and went to work for a brother who had already started a
lumber yard. Sometime around 1875 he started his own lumber business in Greenville with 5
carloads of mixed lumber items, leading many in the business to question his wisdom in ordering
such a large initial inventory. The betting was that he would fail.
Sept. 9, 1879 – Peter married Mary (Molly) Higi, in
Winchester, IN.
She was from near Hamilton, OH and 20 years
younger than he.(See wedding portrait & Marriage
license at right.)
June 21, 1880 – Census reveals the couple to be
residing in Union City, IN.(See picture at left and
census page below.)
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Over the next 23 years the couple had 10 children, 9 of whom survived to adulthood. A son,
Martin James, died in infancy.
The other children were:
Peter, Jr., born Aug. 4, 1880 at Union City, IN
John, born June 5, 1882 at Union City, IN
Mary, born Feb. 10, 1884 at Union City, IN
Grace, born Aug. 12, 1889 at Dayton, OH
Elizabeth, born Dec. 27, 1891 at Chicago, IL
Martin, born Dec. 2, 1893 at Chicago, IL
William, born May 18, 1896 at Chicago, IL
Edward, born Dec. 1, 1898 at Dayton, OH
Richard, born Feb. 19, 1903 at Dayton, OH
1875-1880 (no exact date known) Moved his lumberyard from Greenville to Union City because
of better rail connections which facilitated his handling, thus making for a more efficient and
profitable operation.(See photo at left
showing Peter with sons Peter Jr. &
John.)
May 4, 1883 –
The lumberyard at Union City
was completely destroyed by fire
thought to have originated from a
passing train‘s spark igniting a pile of
wood lath. The fire destroyed much
of the town before a wind shift and
rain allowed the fire to be brought
under control. Subsequently, with a
minimum of insurance funds coupled
with a loan believed to have come
from Continental Bank in Chicago—
based solely on his reputation
because the fire had destroyed what
collateral he had—he rebuilt the
operation and resumed business
there.
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1883-1896 The Chicago Years –
Sometime after rebuilding in Union City, Peter and Mary, with the 3 eldest children,
moved to the Chicago area settling in
Evanston where they continued to live
until shortly after son William was born
in 1896. (See photo at left taken in
Evanston showing Peter & Mary with
Peter (l) & John (r) plus the 3 daughters,
(l to r) Grace, Mary, & Elizabeth.
Peter rented office space on
Pacific Ave. (no longer there due to
Chicago‘s downtown development)
close to the Chicago Board of Trade and
The Mercantile Exchange. His intent
was to educate himself in the lumber
trading business and develop both
lumberyard customer relations and lumber mill contacts. His reputation for honest and fair
dealings with both of these groups was growing and Chicago was the Midwest center for such
activity.
Throughout this period he travelled extensively searching for new customers and mill
sources. Stories of these activities include swings through the southern pine mills and up north to
visit the white pine loggers. One such story details a purchase of one million wood shingles for
25 cents a thousand, leading some to speculate he had cornered the market. Though far from the
truth, it just added to the legendary status he was building for himself and certainly helped
increase his net worth.
His customers grew in number and it was during this time that he began his ―line yard‖
approach to the retail lumberyard business. This involved building or acquiring lumberyards
along the railroad lines which were the principal means of receiving inventory. When a customer
needed credit help or wanted to sell his yard, Peter was ready to listen. If the situation looked
favorable to him, he would offer to buy the operation and retain the former owner as manager (if
Peter judged him capable and reliable). Additionally, the former owner was offered a minority
share in the operation as an added incentive to succeed. This partnership approach with Peter in
support both financially and managerially led to him being dubbed ―Uncle Peter‖ throughout the
territory in which he operated and even beyond. (See addendum item regarding J. H.
Winkeljohn/Celina Lumber & Supply Co. )
His reputation also was based on his uncanny
ability with numbers. It was said he could remember
complete orders without taking notes and also calculate
inventories of his yards just by walking through them.
Given his minimal schooling, one can only surmise that
this talent was innate, coupled with a great desire to
learn.
When not buying all or part of additional
lumberyards, Peter invested in lumber mills, timberlands,
and a few bank stocks and railroad bonds. The latter two
categories were of minor import and were never held for
long. A columnist for The Timberman, a trade journal,
noted that, during this period, his lumberyard holdings
grew to number 65 and that he was considered a
millionaire. (See picture at right from a Timberman article.)
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1896 – With this rapid growth came the need for a headquarters location in a larger city. Being
acquainted with Dayton, Ohio and seeing that it was
centrally located for his growing chain of yards, he chose
to settle there. His first office was on the ninth floor of The
Commercial Bldg. at the corner of Ludlow & Fourth Sts.
(See photo at left)
He found and rented a home from Mr. Ed Barney at
the corner of Old Orchard St. and Homewood Ave. in the
Dayton View area. (see photo below) It is interesting here
to note his habit of always renting rather than owning a
home.
Perhaps he felt his money was better invested in his business rather than in anything as personal
as a home.
1897 – Peter Jr. entered the business. (see photo at left) He
began travelling to the yards getting to know the people and the
territories..
1902 – The Rail Trip to the Southern Mills. From his own
experience of travelling the country by rail, Peter thought it
might be a good idea to show his customers and associates the
forests and mills of the South. He further thought it would be
even better if they were all together in a private Pullman car as
his guests. So he invited 30 of them to join Peter, Jr. and
himself for a week of mill visits to Arkansas and Louisiana
where he had excellent contacts and even a financial stake in a
couple of the mills.
One of these was in Minden, Louisiana where the local
newspaper reported on the visit noting ―Mr. Peter Kuntz is well
known to Commercial men in Louisiana as a large bondholder
in the L. & A. railroad and a stockholder in the Minden Lumber
Company and also has local landed interests. He is an extensive
lumber dealer owning sixty-five lumber yards in Ohio, Indiana, and Illinois. Moreover he enjoys
the distinction of being a multi-millionaire.‖ Just how factual this was is debatable. Nevertheless
the trip impressed his guests and cemented relations, which was the intent. As will be later
described, his sons did the same thing a couple of decades later.
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The New Century –
Peter Kuntz acquired sizable timber tracts in Florida. He established a sawmill called
Taylor County Lumber Co. to harvest the yellow pine timber there. (see photos below.)
Frustrated with problems that developed after startup, he and Peter Jr. traveled to inspect the
mill. He assigned Peter Jr. the task of straightening out the problems. Peter Jr. succeeded and the
mill became a model for the industry. One new technique put in place there was to surface
lumber on all four sides, a practice that eventually became and industry standard.
May 27, 1909 –
Peter Sr. incorporated and The Peter Kuntz Company was born. Peter Jr. was named
President and Martin was named Vice Pres. & Secretary. At the May 8, 1918 convention, which
is referred to later in this story, Peter Jr. mentioned that his father incorporated in 1904. If that is
not a misprint he may have been referring to incorporating The Kuntz Investment Co. Both
entities are talked about at that meeting and the distinctions are not always clear.
Pres. Peter Jr. began to make his mark on the firm by addressing the appearance of the
yards. His ―Paint & Klean‖ campaign is the first of many such efforts aimed at distinguishing
Peter Kuntz yards from the competition and attracting more customers. It is an effort in which he
persisted up to the time of his death.
191? – Kuntz- Johnson Lumber Co.
In this early part of the 20th century, Peter Sr. established his first lumberyard in Dayton.
He partnered with R. T. Johnson, freight agent for the Dayton, Greenville, and Union City
Railroad (The DG&U). The site was downtown, near the railroad tracks and the Miami River.
The partnership lasted only a few years. Johnson bought out Peter‘s interest but kept the name.
Eventually this lead to some confusion in the minds of Daytonians when Peter built another
lumberyard on Dayton‘s west side calling it The Peter Kuntz Lumber Co. Adding further
confusion, the former was located on Mead St. and the latter on Mound St.
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1904- The Texas ―branch‖
.
Shortly after the turn of the century, second son John joined the company. After his
internship, he was given the task of overseeing his father‘s interests in Texas. These consisted of
lumberyards and perhaps some timberland, though this is not known for sure.
In 1910, John, his wife and children moved to San Antonio, Texas. (see photo at left of John and
wife Rose with daughter Rosemary and son John, Jr. Also note photo below showing Peter Sr.
with Rosemary & John Jr. during one of Peter Sr.‘s
visits.) After a few years of managing his father‘s
businesses, he bought his father out and for the rest of
his (John‘s) life, ran the Texas yards quite successfully
under the name of The John J. Kuntz Lumber Co.
By mutual consent, he took no active part in the
management of The Peter Kuntz Co. but remained a
director throughout his life.
What follows now is a short synopsis of John‘s
activities furnished by his grandson, John Kuntz III.
It appears that his father, Peter, Sr., sent him to Texas
with Roy Hollingsworth, sec‘y./treas., confidant and ―chief
bean counter‖. He rented a two story house on the NW corner
of Woodlawn and N. Main (still there). The San Antonio yard
was then called the Kuntz-Albaugh Lbr. Co. (See photo below
left showing one of its trucks in a parade) It had been in
existence since the 1880‘s operating under several names
during the years.
Just how Peter Sr. became involved is unknown. The
best guess is that he acquired his share during the ―Chicago
years‖ when he was in the lumber trading business traveling
extensively in the south acquiring timber land and, in this case,
a retail yard as a partner. The yard was located on Lakeview
Ave. (later 1323 Martin St.) in the near west side of San
Antonio next to the I & GN (later the Missouri Pacific/Union
Pacific) railroad main line. The original office was downtown
in the Brady Bldg.
In 1930-31 the office and
yard were combined in newly
rebuilt
facilities
eventually
encompassing an entire city block.
Around 1916 or 1918 the name
was changed to the John J. Kuntz
Lumber Co. since the Albaughs
were no longer associated.
By 1920 John Sr. started
the Kuntz Co. operating as a
wholesaler to his other partnership
interests Kuntz-Sternenberg Lbr.
Co. in Austin, TX, Goodland Lbr. Co. in Victoria, TX, Nueces Lbr. Co. in Corpus Christi, TX,
and, for a while, another yard in Uvalde, TX. This arrangement continued for the next 40 plus
8
years during which John J. Kuntz, Jr. joined his father eventually heading the company. John Sr.
died in 1967. The yards were sold by 1970 and there followed the merger of the Kuntz Co. into
the John J. Kuntz Lumber Co. which was then itself liquidated between 1978-80.
There are unsubstantiated stories of other connections with leading lumbermen in the
South such as a Mr. Buchanan of Temple Lbr., John Kirby of Kirby Lumber, and others. There is
even a small but famous town in the east Texas piney woods of Hardin County called Kountze.
There are stories of people having seen rafters in old homes with the name John J. Kuntz Lbr.
Co. painted on them and the original Memorial Stadium at the Univ. of Texas at Austin was built
with timbers furnished by Kuntz-Sternenberg Lbr. Co.
1915 – Peter Kuntz Lumber Co. opens.
It was reputed to have the largest enclosed storage shed in the state at that time.
Peter installed his nephew
Nicholas as its first manager.
Six years later Nicholas was
succeeded by Peter‘s son
William, only 25 at the time.
William remained there
for 32 years during which time
he oversaw the construction of
an architectural millwork
facility, and steered the yard
through the Great Depression,
WW II, and the postwar
housing boom before
relinquishing that post to join
his brothers at the home office.
Peter Kuntz Lumber Co.
warehouse and mill at the
corner of Mound St. and
Norwood Ave. Photo taken
around 1970.
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March 3, 1918 – Peter Kuntz, Sr. dies at his home in Dayton.
In December he had suffered some kind of attack on the train while returning from a trip
to Taylor County Lumber Co., one of his southern mills, with his son Edward. He lingered for
almost three months bravely trying to fight off what some guessed was the flu since that was the
period of the great epidemic circling the world. His funeral was held at Corpus Christi Church,
just down the hill from the family home. This was a relatively new parish and Peter Sr. was one
of its founding members and a major contributor to its building fund and operating support. All
of his sons served as pallbearers and, after the service, accompanied the body to Calvary
cemetery where it was temporarily kept in storage until the mausoleum, for which he provided in
his will, was built. (Newspaper article below is cont‘d on following pages.)
(1)
(2)
10
The structure was designed to hold all the members of his immediate family and their spouses if
necessary. It stands today in a place of prominence at the cemetery and is maintained through a
fund set up by the family. (See front and side views below.)
(3)
(4)
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Other papers throughout the Midwest and around the country reported his death. These and the
many letters of condolence were assembled in an album by Henry Diefenbach. Some examples
are shown below.
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II. Other Facts & Legends About Peter Kuntz
These concern his dress, habits, family and social life, activities outside business, personal
beliefs, philanthropy, and his final will and testament which mandated the 30 year Trust that was
to shape the course of history both for the company and his family.
Peter Kuntz, Sr. was a man of simple tastes when it came to clothes. If one is to gauge his
sense of fashion by the photos we know of, black was his favorite color. No matter the occasion,
when photographed he was wearing the black suit, with or without a black tie, black shoes, and a
black skullcap. (See photo at left.) No one is certain why
the skullcap. It could have been a holdover from his
family‘s German customs or simply a matter of comfort.
What it once occasioned was an event that spoke
to Peter‘s sense of humor (something only occasionally
surfacing). While dining with his family at Old Faithful
Inn in Yellowstone National Park during one their trips
west, he spotted Cardinal Gibbons, the Catholic
Archbishop of Baltimore seated at a nearby table. The
Cardinal was wearing a red skullcap befitting his rank.
Catching the Cardinal‘s eye, Peter nodded respectfully and
then, without a word, took off his own skullcap, turned it
inside out revealing the white lining, and replaced it on his
head. When the Cardinal next looked at Peter, he began to
smile signifying that he got the joke. (For those unaware
of Catholic protocol, a white skullcap is worn only by the
Pope.)
The only other items pictured on him were a gold
watch and chain and a diamond stick pin in his tie. No one
knows what happened to these items; however one of his
skullcaps remains as well as a pair of glasses.
Another story about his clothing has to do with an
overcoat purchased for him by
his wife Molly. (See photo of
the two of them on one of
their western trips at right.) It
evidently was a bit more
extravagant than he was used to buying for himself so Molly told
him she paid a certain price which was considerably less than it
actually cost. Satisfied with her explanation, he wore it with pride.
Sometime afterwards a friend admired the coat and said he wished
he had one like it. Not one to miss a sales possibility, Peter told the
man it was his (for a price over what he‘d been told, thus assuring a
tidy profit). The man agreed and paid for the coat on the spot. When
he told Molly of the sale and his supposed profit, she was floored
but, for the good of both of them, simply nodded and said she would
get another although she‘d probably have to pay more since it was
the last one they had at that price.
As far as can be learned, his social life was almost entirely
centered on his wife and family. With ten children this is hardly
surprising. No stories about this part of his life have been recorded;
only a few tales of ―Petie and Johnie‖ getting into some childish mischief around the house.
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What is known is his great love of travel, especially train travel, which resulted from his
earlier days visiting mills and customers.
Two such train trips were to the western
areas of the country, one to the northwest
including Yellowstone and the Canadian
Rockies, and the other to the southwest
including a trip across the border into
Mexico.
Since he had travelled by rail
extensively himself early on, he knew what it
was like and also how it might be done, that
is, in a first class way. On both trips he
arranged for a private car complete with
sleeping and dining accommodations. This
was similar to the Southern Mill trip referred
to previously. That trip and the family
excursions were much remembered and
appreciated by all who went on them. ( See
photos at left showing the family on tour in
Yellowstone Park.)
One other trip bears mentioning. Not
many details are known except a letter from
Peter, Sr. to Molly, (Mary, his wife) from
Algiers, Algeria dated March 13, 1892.(See copy below.) It is significant for at least two reasons.
The first has to do with an article in the Timberman magazine, a trade journal, which referred to
the trip stating that, as a result of the trip, Mr. Kuntz was interested in bringing monkeys to the
U.S. to be trained to pick cotton. I‘ve heard that such a story was making the rounds back then so
I‘m tempted to believe the writer may have been taken in since it was well known that Peter had
a good sense of humor and was not above taking advantage of the situation. This same columnist
wrote about Peter on more than one occasion. Evidently he was considered ―good copy‖ plus the
fact that their offices in Chicago must have been close enough to afford occasional visits. The
stories about Peter were generally favorable and one even had a caricature that was sketched by a
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staff artist during their conversation.(See drawing on page 5) It was noted then by the writer that
the artist tried to get the merry twinkle of Peter‘s eyes which were much in evidence during that
interview.
The second reason this trip is significant has only recently surfaced. In the fall of 2008,
George Kuntz, son of Martin Kuntz Jr. and himself a former PK yard manager, also the web
administrator for the Peter Kuntz website, received an e-mail from a man named Matthias Kuhn,
a German, living in Berlin who had come across some intriguing pictures at his grandmother‘s
house in Bretzenheim, Germany while the family was looking at a photo album. (Her name is
Salome Konig and Bretzenheim is very near
Kreutznacht, one of the towns mentioned as Peter,
Sr.‘s birthplace. (See photo at left of Matthias and
his grandmother.)
The pictures referred to a
―Peter Kuntz‖ and the address of Union City,
Randolph County (Indiana) in the U.S. None of
those present knew the exact origin of the photos so
Matthias looked up ―Peter Kuntz‖ on the internet
and found George‘s website and decided to e-mail
him with the story and a copy of the four pictures to
which he referred.
Subsequent e-mail correspondence has not proven
anything conclusively about the origin of the pictures but it has led to an exchange of pictures of
our two families and speculation about a possible relationship traced back through several
generations.
From rereading the Timberman article about Peter‘s travel and talking to Rosemary
Huston, John Kuntz‘s only remaining child (presently 102 years of age), it appears the 1892 trip
was extensive and covered parts of Europe as well as North Africa and the Middle East.
Rosemary remembers hearing her dad speak of the trip coming shortly after he had a bout of
typhoid fever. Their doctor recommended that he accompany his father on the trip since much of
it would be aboard ship where the sea air would help the young man (he was 10 or 11 then)
regain his health. Thus it is entirely possible that the two of them traveled to Peter‘s birthplace
and met up with relatives or friends.
Salome inherited the photos but has no idea which relative or friend received them. Her
daughter, (Matthias‘s mother), has since sent a family tree which seems to suggest a relationship
beginning with Martin Kuntz, Peter, Sr.‘s father. Matthias‘s parents have said they will continue
searching records in several towns in the region hoping to pin down an exact relationship, if any,
plus the place of Peter Sr.‘s birth. The final recollection of all this is that someone from Peter
Sr.‘s family continued to correspond with Salome‘s family up to 1939 when the second World
War broke out. However, no examples of such correspondence have been found here or in
Germany.
One final story relating to Peter Sr.‘s character and work ethic concerned a checkwriter.
To those of us used to seeing computer generated checks, it may seem unbelievable and a bit
humorous. While down south visiting Taylor County Lumber Co., Peter Sr. received a package
of checks needing his signature. He opened it and saw that the checks were made out with the
use of a checkwriter. Outraged, he hopped the next train back to Dayton. Storming into the
company offices in the Commercial Building, he demanded to know who was responsible for
this ―new wrinkle‖. Once his son Martin spoke up (thinking he was going to be congratulated),
Peter was heard to say. ―I work hard to make my money and no d____ machine is going to take
it away from me.‖ Whether or not the checkwriter was returned or when it was used again isn‘t
known. One can only guess that, for this particular business sin, Martin did penance by making
those checks out by hand.
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We now come to a facet of Peter Sr.‘s character that speaks as much or more about the
man as his business acumen and success. It is the breadth and depth of his philanthropy. Whether
or not he knew of or believed in and practiced tithing, his generosity was widespread and yet
relatively private. It centered on things Catholic and benefitted children mainly.
Recalling his early life in Greenville, Ohio and Union City, Indiana, he provided funds
for the Parish grade schools in those two towns so that the children could attend tuition free.
How long this continued isn‘t known; however, the two parishes continued to receive yearly
donations from the Kuntz Foundation (more on that entity later) well into the 1990s. Another
group of children, this time grade-schoolers in the Dayton parochial schools, received a box of
candy every Christmas. Many more of Dayton‘s poor people received help from him, probably at
the request of his pastor or other clergy. Such donations went unmentioned for a variety of
reasons not least of which was his desire to remain anonymous.
Two of his largest gifts were for: 1. rebuilding an orphanage in San Antonio Texas after a
disastrous fire and 2. a pair of ―Chapel Cars‖ for the Catholic Church Extension Society
headquartered in Chicago, Illinois.
Concerning the former, he happened to be in San Antonio on business in 1912 and heard
about the terrible fire wherein three of the orphaned boys and five of the Sisters of Charity who
ran the institution were burned to death trying to escape. For a more precise account of what
happened next, here is an excerpt from the History of St Peter‘s Home, (the orphanage) written
by Katherine (Kavanaugh) Kuntz, wife of John Kuntz Jr. the eldest grandson of Peter Sr. Mrs.
Kuntz, (Kay) was a lifelong active supporter of the orphanage. She wrote this history on the
Home‘s Golden Anniversary in 1963:
―On October 30, 1912, very early in the morning, a fire of unknown origin, but of terrible
consequences, destroyed this only orphanage for boys in the Diocese. The Sisters were able to
lead most of the boys to safety. Three boys and five Sisters perished and one Sister lived to be an
invalid the rest of her life.
One can imagine the horror and grief of the Sisters and the community. Every official in
the town was at the fire before the flames were finally smoldering and the remains of the poor
dead were removed. The citizens of San Antonio, Catholic and non-Catholic, were first horrified,
then grief-stricken, then determined to do what they could to make up to the Sisters and the
children for the disaster. At a meeting the next day, the people of San Antonio, under the
leadership of a Citizens Committee, pledged to raise $25,000.00 within the week. Everyone
wanted to do his or her part. But the largest individual donation was promised very privately on
the morning after the fire.
At the time of the fire, Peter Kuntz had just come from his home in Dayton, Ohio to visit
his son John Kuntz, who had arrived earlier that year with his wife and family to look after the
Kuntz interests in this part of the Country. With John came Roy Hollingsworth, who had been
Peter‘s private secretary the previous six years. Roy was accustomed to open the office and when
he arrived that day he saw the people running toward the blaze so he ran too. When he arrived
there, he saw the firemen removing the bodies. It was a sight to distress the stoniest heart.
The following morning, early as usual, Roy had opened the office and the first person to
join him was Mr. Peter Kuntz who asked, ―What‘s new around here?‖ Roy, still upset about the
previous day‘s events, launched into a full description of the tragedy. Mr. Kuntz said nothing for
a few minutes. Then, with tears streaming down his cheeks, he said, ―Give me my hat. I‘m going
to see the Bishop.‖
Legend has it that the Bishop‘s secretary, not knowing Mr. Kuntz, and observing his
appearance, made him sit quite a while just as would any supplicant at the Bishop‘s door. But
once he was admitted and recognized by Bishop Shaw, things happened quickly. First, the
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orphanage was assured of $30,000.00 for a new, fireproof building. Next a pledge of $8,600.00
per year for endowment was made by Mr. Kuntz. For good reasons, the generosity of Mr. Kuntz
was not publicized at the time, nor did he ever desire that it should be later. Nevertheless it was
made public some years later and is part of his history.‖
For the complete story of the Chapel Cars, see the excerpt from the book titled ―Catholic
Extension‖ shown on the Peter Kuntz website under the subhead Chapel Cars. (Pictured here is
one of them, the St. Peter.) Following are some of those comments that Bishop Kelly, the book‘s
author, wrote about Peter Kuntz Sr.‘s character. They probably draw the best picture of the man,
his approach to business, philanthropy, and life.
―He dressed like a poor man, but he had three automobiles. He lived in a rented house,
but could easily have bought ten city blocks. He was crusty and could say ‗No‘ to anyone; but
year after year he took hundreds of poor children out into
the country and gave them a gala time at his expense. He
gave in his own way and at his own time. He was really the
greatest ‗bluff‘ I ever met, for he systematically went about
disguising the fact that he had the softest and most loving
old heart in the world; trying to make people think him a
crank and a skinflint, making enemies who liked him, and
friends who wondered why they thought so well of him as
to be his friends. He always refused with his lips, and
consented with his heart. He was a wonderful father and
husband, a Catholic who practiced his religion, who feared
no man and no devil, but who certainly feared God.‖
(For another view of him see the cartoon at right
which appeared in the Dayton Daily News.)
Finally, it is not surprising that, in his will, he
continued his generosity with a specific request that his
charities, known to his children, be continued so far as
possible. Fortunately for all concerned, his wishes were
carried out and continue through The Kuntz Foundation
even to this day.
III. The Peter Kuntz Co. — From the End of WW I to the beginning of WW II
This part of the story begins where the first part ended, namely with the will of Peter
Kuntz Sr. The will stated that a 30 year Trust be set up to manage the assets in his estate
consisting mainly of shares of stock of The Kuntz Investment Co. That firm was a holding
company which owned not only The Peter Kuntz Company, but also all or part of the retail
lumber yards he had started or acquired during his lifetime. The founder‘s three eldest sons,
Peter Jr., John, and Martin were named as original trustees. Should any of them die or resign, the
17
next oldest son would replace him. Peter Jr. was named President. All of the sons eventually
became officers and employees of the Company in some capacity.
The Trustees‘ original charge was to provide for their mother‘s welfare, settle their
father‘s estate, continue their father‘s charities, and run the businesses, no small task given the
breadth of those businesses and the relatively young ages of the sons. This situation was noted
and favorably commented on in a later year when the Peter Kuntz Co. and its associates were
having their annual meeting. Speaking editorially at that time, the Dayton Daily News contrasted
the sons‘ situation with so-called self made men who had risen above poverty or handicap as
follows: ―There was no need of any one of them putting in a day‘s work as long as he lived.
However, pride in the origin and name of the firm and the desire to justify the faith of the father
was evident. These young men have followed their routine in a modest way and so, we can pause
and reflect on the example of the Kuntz boys. They deserve the success which they have
attained.‖
May 8, 1918 – The first Convention of The Peter Kuntz Company and Associate Lumbermen
Not wishing to let too much time pass after the death of his father, Peter Jr. invited all the
associates of his father to a gathering in Dayton. The purposes were: 1. to get the Associates
better acquainted with each other and 2. to devise ways and means to meet the business
conditions that they all were confronting at the time. It was an all-day affair starting at the
Company offices followed by a march to the steps of Steele High School where a group photo
was taken. (See photo above.) This became an historic picture which many participants framed
and hung proudly in their yard offices for many years. After the photo was taken, the group
marched back to the Miami Hotel where the balance of the day was spent. There were six
attendees from the headquarters staff and forty-seven associates representing forty-three
lumberyard locations. One associate was unable to be there.
18
Once assembled, the meeting began with a suggestion from Mr. Harry Cook, one of the
senior members of the group, that all rise for a moment of
silent remembrance of the late Company founder. The group
did as was suggested and afterwards the President thanked
them for this gesture. He next asked that the meeting be kept
closed and that all matters of the Convention be kept
confidential. All agreed and the meeting proceeded..
The complete transcript of the official remarks at this
meeting was kept by Henry Diefenbach and compiled in a
hardbound book complete with a copy of the group picture,
the printed program and a lapel ribbon worn by the attendees.
(See cover, program, & ribbon at right.) Keep in mind that
Peter, Jr., the new President, was but 37 years of age and was
speaking to men, many of whom were older in terms of age
and/or experience. It was a daunting task.
Rather than try to summarize all of these remarks, I
have chosen to copy selected passages verbatim to let readers
―hear‖ the participants‘ words as they were spoken. Most of
the quotations are from President Peter Kuntz so his remarks
will be noted as PK. Other speakers will be named in full. (A
list of the participants and their lumber yards as pictured
above is shown in the Addenda to this story.)
PK – ―Quite a number of years ago, in the early sixties, my
father, after going through his childhood days, started out on
the plains of Illinois to herd cattle, and after going through all
that time, he came back to Darke County and there started in
as a wood chopper. Later on he sawed logs, particularly for
his brother, and some for others, and then conceived the idea
of going into the lumber business. A good many of those
present are familiar with what I am about to say, but there
may be a lot of the younger men who are not. It is for their benefit I am now talking.
His first stock at Greenville consisted of five mixed cars received from Toledo and
people told him he was going to break up – ―ordering five cars of lumber !‖ Toledo was the
gateway and stock used to be shipped from there in carload lots. He started in Greenville and
there, after business hours at night and early morning, in order to keep busy and ―to keep the
wolf away from the door‖, he peddled fish that he received from Toledo and Lake Erie points.
Things got to progressing at Greenville and he then looked to Union City, about twelve
miles away. It was a point that had better rail facilities and he started in there. He opened up a
saw mill, a planning mill, and a lumber yard. Probably a lot of you boys have seen it in the early
eighties. Since then things have changed. Another step forward. Formerly everything was kept
out of doors.
About that time he conceived the idea of starting line yards and he began to get in
merchandise to start these yards at nearby points, several of which I remember – Lynn, Union
City, Greenville, and Piqua. Those are the ones I recall, and a little later some others.
In May, 1883, a disastrous fire hit my father‘s business and wiped him out.
You ask, ―Why did he not have fire insurance like he always preached?‖ Well, I‘ll tell
you. He did have fire insurance, but he had a scrap with some of the insurance companies and it
was just in between that time and getting things adjusted that this fire came. On May 3, 1883 this
19
fire hit him and he only had $40,000.00 fire insurance, $3000.00 of which was no good, so he
only had really $37,000.00 insurance. So he has really only been in business since 1883.
PK - The business gradually developed and this brings us up to the time my father was stricken
on Dec. 10th. You are all familiar with the circumstances. He fought the inevitable until he
succumbed on March 3rd. And that is the point I want to bring up now. On March 4th, Monday
morning, when the business was opened, the main and most important thing was, how was the
business left? When we examined the books and finances of this company, we found them in the
best shape in the history of our business.
The question is, how are we going to keep them from now on? Are we going to do as we
please? That is the all important point today – finances.
The Peter Kuntz Co. can‘t do like Peter Kuntz did – sign note after note to the
Continental and Commercial Bank of Chicago. And don‘t think I‘m going to try. Suppose they
turn us down? Have you ever thought of that? If we go down, you go down. But we are not going
down, We are going to ―Get there Eli.‖ That is the slogan of this Convention. And when my
father wanted to impress the importance of doing a thing, he said, ―Get There With Both Feet.‖
And that is exactly it.
I want to show you how my father worked things out. In 1904 he incorporated The Peter
Kuntz Company to conduct the merchandising end of the business. Then, as he got older, and
thinking of us, he incorporated himself into The Kuntz Investment Company in 1915, turning
everything he personally had to it. Then, early that year, he made his will in which he appointed
me, and my brothers John and Martin as Trustees to ―do and act as I would were I living and
with them. This arrangement is to be continued for thirty years.‖
Why did he do this? I‘ll tell you. It was to make sure that I, our family, and you in this
room would have the resources to continue our businesses without the necessity of having to
individually refinance them, especially at a period in the history of our country when it was
never harder to get money. There again is where The Peter Kuntz Company comes in. Somebody
has to think about the finances and I‘m going to ask you to worry a little with us. We don‘t want
to know how many orders we have with mills but HOW MANY DOLLARS AND CENTS WE
HAVE FOR ORDERS.
(He now switches topics.)
Now this is the first time, to my knowledge, except for the trip down south many years
ago, that we have all been together. And I am sure you‘re all going to get better acquainted and
learn something from each other. I think a lot of you were surprised at the fine looking crowd of
men marching down the street and thought, ―I didn‘t think there were so many.‖
I have only asked the heads of companies. And that is what we have here; folks that
amount to something, that are something, that The Peter Kuntz Company hopes will amount to
something to help us. You can. There are sixty people here today and you can do a whole lot.
It is my aim, my object, my purpose, and my instructions, to conduct this business in the
same manner and in the same way my father has conducted it, and you have been with him long
enough to know how that is. The best proof of that is you older men with sons. Where did you go
when you wanted them to start out? You came to Peter Kuntz.
A second aim is to have the Kuntz yards the best in the country. The best looking yards,
the best merchandise, and the best service. It took us three years to adopt a color but we finally
got you believing that orange was the only color to use. And what happened? Why everybody in
the country copied after you. We want our yards to be clean and neat and, if I had my way, I
would paint them every year… with good oil paint.
As managing director I beseech your confidence and your cooperation and, if you folks
will work half as hard with me as I am trying to do for you and the company, we are going to do
20
something this year. The main thing is to get the spirit of this meeting and if anyone is not with
the majority, say so and we will use the funds meant for him for the good of the rest.
My father was a strong character. He was in business fifty-five to sixty years. I am a
young fellow, and have been here only twenty and a half years. But I was with my father during
that twenty and a half years and during that time I got to know every move that he ever made,
and some of you remember when you would come into the office and ask him about something,
he would say, ―Let it go. Peter will be home soon and he‘ll fix it up.‖ Now what I want you to do
is get together, get better acquainted, and work together.
JOHN PAYNE, the company‘s financial officer at the time then spoke to the group about
efficiency and cooperation and how it can benefit everyone in the Association.
He related how, about a year previous, Mr. Kuntz had his bank account ―all shot to
pieces‖ so he had prepared for him an analysis of the order files. There were outstanding
something like fifteen hundred orders with the Company which aggregated six hundred fifty
thousand dollars.
Mr. Kuntz then instituted his campaign for money and the drive made at that time was, to
my mind, the master stroke of the business life of Peter Kuntz, Senior. You all got busy, gave it a
lift, and the money came rolling in. All our debts were liquidated and we had a substantial
balance left on hand. He has written to almost each and every one of you that he was grateful and
then he went about tending to his own business, buying lumber for your needs.
What you did was wonderful. It will be an inspiration to do greater things and we thank
you for it.
The balance of the morning session dealt with matters of credit and property insurance.
After lunch, the President began the session by reading the editorial from the Dayton
Daily News regarding his father‘s death. He emphasized the last sentence of it which is as
follows: ―PETER KUNTZ WAS A MAN WHOSE LIFE WAS GIVEN TO STRUGGLING
AGAINST ODDS AND IN HELPING OTHERS TO DO SO.‖ He went on to say,…. ―that his
father had no one to back him and that many times he had to pay dearly in interest for the funds
to continue whereas we, you in this room and I, have never had to worry about finances. That is
the keynote of this Convention, we must finance ourselves in these times. We must not falter
because if we do, we are gone.
Right here I want to make an announcement. Upon advisement of our attorney, I‘ve
dropped ―Junior‖ from my name for the betterment of the interests I represent. I remain ―Junior‖
only in matters pertaining to my father‘s estate, otherwise I am Peter Kuntz. I feel you think that
is for the best.
Now I want the older members of the group to get up and tell of their experiences. They
did not have it like some of you young fellows – cement floors, automobiles and every other
thing. They didn‘t have that.‖
(There follows portions of remarks from two of the senior members of the group.)
J.B. CHENOWETH – Lynn, Indiana ―I began with Mr. Kuntz in 1882. People said,
‗Better not trade with Mr. Kuntz. He‘ll skin you out of your eyes.‘ After trying a few others, I
went to him and he said, ―Your business is just the kind I‘m looking for.‘ I gave him my first
order in 1882 and the last car in 1917, just thirty-five years. He also counseled me on specific
items to sell which proved to be winners. I don‘t suppose I would have been in business if it had
not been for him.
JOSEPH MURPHY of Urbana, Ohio was the next speaker. He spoke of being with his
father in the business even before Mr. Chenoweth started with Mr. Kuntz. His many
reminiscences covered a wide range of experiences he and his father had with Mr. Kuntz. Each
one seemed to reinforce the belief in the upright and fair way in which Mr. Kuntz did business.
He further remarked at the uncanny ways in which Mr. Kuntz responded to trials and
21
opportunities always seeming to know what to do to make the best of each one. He ―Got there
Eli.‖
Other comments were heard from GEORGE WORCH of Versailles, W.P. HILTON of
Cleveland, JOHN ROHRER of Germantown, JOSEPH SHADE of Piqua, CHARLES HERR of
Greenville, and HARRY COOK of Vandalia, Illinois. The remarks showed the respect each had
for the company‘s founder and how he had enriched their lives.
Then it was Mr. JOSEPH MURPHY who rose and addressed his remarks to the members
assembled saying, ―I want to tell you gentlemen something. I have known Peter Kuntz, Jr. ever
since he came into this business. I have seen him grow up and I want to tell you he is all we
could wish him to be. And I want this company to rise with me and extend to him a vote of
confidence and assure him that we will stand by him through thick and thin, work with him, and
cooperate with him to the best of our ability.‖
All members immediately rose and by their action signified their approval and
endorsement of the sentiment expressed by Mr. Murphy.
The President expressed his gratitude and repeated his intent to try hard to follow in his
father‘s footsteps. With such effort on his part coupled with their cooperation, he said that
success should surely follow. He ended by also pledging the full support of the main office staff
which was such a vital part of the Company and its Associates.
The rest of the day was spent in organizing the group as an Association, with officers and
a structure. Finally, the group thanked the Company for hosting the event and pledged to work
together for the good of all.
Thus ended this historic First Convention of The Peter Kuntz Company and Associated
Lumbermen. It would not be its last. These
events continued at least until 1926 when
the Tenth Convention was held. (See
program at left.) A picture on that occasion
taken on the rooftop of the Gibbons Hotel
shows 107 men in attendance representing
the Peter Kuntz Co. main office plus the
Associate Lumbermen, a fine record of
growth and loyalty. (Individuals quoted in
this account are pictured in the Addendum
list of those in the group photo.)
1922 – The estate of Peter Kuntz is settled.
With this event the final reckoning of the affairs of Peter Kuntz, Sr. took place. An
accounting of the last bills was made, including the cost of the Mausoleum, plus the specified
donations, and the annuity for his widow was set up.
Before this time, the heirs borrowed against the Company‘s earnings and over the next
two decades these loans would gradually be paid down leaving balances to be paid off as agreed
to by the Trustees. Fortunately, the Company continued to prosper even through the Great
Depression allowing the heirs to continue their father‘s charities and live comfortably too. Mrs.
Peter Kuntz, Sr. even consented to have a house built for her shortly after her husband‘s death.
She lived there until she died in 1934. Her son William and his family eventually bought the
house and lived there for many years. This house and the homes of Peter Jr. and his brother
Martin were in the same neighborhood of Oakwood, a suburb of Dayton.
22
1923 – The Second Great Rail Excursion to the Southern Mills
Recalling his experience 21 years previously, the President announced a bigger and better
version for the Peter Kuntz Company and Associate Lumberyards. This event began with
a formal invitation reading ―All Aboard Peter Kuntz Lumbermen‖ illustrated by Henry
Diefenbach, (previously named as the chronicler of the First Convention whose talents
will be discussed further in this narrative).
The trip was organized down to the last detail and took 2 weeks starting and
ending in Dayton, Ohio. There were 11 stops at different lumber mills, forests, and tourist
spots beginning in St Louis, MO and ending in Atlanta, GA before returning home. The
group rode in 2 Pullman cars, a dining car and an observation/club car attached to regular
trains of The Missouri-Pacific and The L & N railroads. Each person was assigned a
berth and
there were
special
menus
printed for
every meal
served in
the train‘s
diner.
Since this
was
planned as
a combination of
mill visits
and
Association Convention, the Club car got much use for discussions formal and informal.
And, of course, there was time for honing poker or craps skills which provided
entertainment to the participants between stops. Seventy-four men took part in this trip
which included all six of ―The Kuntz Boys‖, (photo above shows l to r Richard, William,
Martin, John, Peter Jr. & Edward), sixty-six Associate
Lumbermen,(seven of whom had been on the first
excursion twenty-one years before) and two home office
staffers, including Henry Diefenbach who kept a journal of
the trip and assembled his notes and many photos into an
album for the President. Those notes were subsequently
published for all the participants in a booklet entitled
―Chips from the Log of the Peter Kuntz Special‖ (see cover
at right) complete with a list of the travelers, the itinerary,
and a narrative that was both informative and entertaining.
It contained many photos of the places the group had
visited plus some formal and informal shots of the
travelers.
The names of the mills visited read like a Who‘s
Who of the Southern lumber producers and at each stop the
Peter Kuntz Company and Associates were lauded for
being outstanding operators and retailers. At Bogalusa, LA,
23
after a day spent touring The Great Southern Lumber Co. mill followed by a trip around
the town, the group was wined and dined in lavish southern style. (See reprint on this
page.) Several speakers welcomed the group including the Mayor who asked President
Peter Kuntz to tell the locals something about his Company. Mr. Kuntz began by stating
that his remarks might be mistaken for bragging but he was ready to back each and every
one. He stated that the Association then consisted of 75 retail lumberyards located in
Ohio, Indiana, and Illinois. He considered them to be the best stocked, best kept best
looking yards anywhere with covered storage and a growing inventory of lumber and
building materials to serve their customers. He emphasized the prominence of Southern
Yellow Pine lumber in all the locations and that fact was one of the reasons for the trip,
namely to let the yard managers see the high quality producers of their yards‘ stock. He
then thanked those responsible for the day‘s events.
The trip received wide coverage in all of the major trade journals as well as many of the
daily newspapers in the towns and cities the group visited. Back in Dayton and the other towns
with Peter Kuntz Association yards,
articles about the Company and
specific managers all were glowing
in their praise for the marvelous
opportunity afforded the group to
experience first hand where and how
their
primary products
were
produced.
The men also visited the two
mills owned by Peter Kuntz Co.,
Jacobi Lumber and Taylor County Lumber, noting once again the orderliness of both combined
with the ―Perfect Kwality‖ of the product they were used to seeing. (See photo above.)
As was previously mentioned, it was not all business during the trip. There were visits to
theatres, sightseeing in New Orleans aboard a riverboat, and other side trips in Jacksonville and
St Augustine, FL, and Atlanta GA. These, combined with excellent food and drink, made for a
24
memorable experience for all concerned. Both the 1902 and the 1923 rail excursions were, I
believe, unique for their time. Private rail cars were usually reserved for heads of railroads or
other big shots. This method of cementing relations with associates and customers was highly
unusual back then. And, who knows, they could have presaged today‘s incentive travel.
1923 – 1939: The Good and Bad Times
There are no particular stories noted during the twenties. The Peter Kuntz Company and
Associated Lumbermen probably reached their largest numbers then in terms of locations and
possibly dollars (adjusted for inflation as compared to today). Following The Roaring Twenties,
the country experienced The Great Depression. Businesses of every kind were failing and the
downturn affected the company just like many of its competitors. It was said, for example, that in
1932 there were only four permits for new houses issued in the city of Dayton, OH. The situation
forced layoffs and even closures of some of the Association yards. Unfortunately no exact record
of these events exists. It wasn‘t until 1948 that a new roster of yards
showed which of them was closed, sold, or otherwise exited from the
Association. What must be said of those years is that, through good
times and bad, the Company continued to be profitable.
Two events during this period are worthy of mention: first, the
move of the company‘s home office from the Commercial Bldg. to the
10th floor of The Mutual Home Bldg., a new 20 story office building at
120 W. 2nd St. Its original owners lost it in the Depression and it
subsequently was bought by Tony Hulman, the Indianapolis
businessman most noted for his connection to the Indy 500 race. He
renamed the building The Hulman Building. (See photo at right.) The
second
event
is
President Peter‘s 40th
anniversary with the
Company in 1937. A
gala banquet at the
Biltmore Hotel in
Dayton
brought
Associates and home office people together for
the celebration. (See photo at left.) The tributes
were many and sincere. Henry Diefenbach
created a ―This is your Life‖ slide show
combining photos and cartoons and then
presented the President with a leather bound copy of the material shown in the slides. In the
printed program for the event, the President had his favorite poem inserted. It was Rudyard
Kipling‘s ―If‖. Its final phrase, ―you‘ll be a man, my son‖, seemed to reflect what many felt was
one of Peter‘s driving motives, namely to emulate his father‘s character and exploits in many
capacities.
IV.
1939 – 1948 - The War and Aftermath.
By the time WWII began, the U.S. was on the way
out of the Depression. The Peter Kuntz Company and
Associates were leaner but beginning to recover both in
sales and profits. Yards continued to maintain their
facilities and a few, like Clark County Lumber Co. in
Springfield, Ohio for example, built new offices and
25
showrooms or added storage sheds. (See photo on previous page) Most were able to upgrade or
repair worn or outdated equipment in order to continue to serve their customers.
When the U.S. actually entered the war, the Company faced new realities: material
shortages, rationing, and priorities, terms that took on different and crucial meanings for all.
Local managers had to deal with those factors and they were fortunate to have The Peter Kuntz
Co. home office to lean on. Its connections helped them get needed inventory but even their best
efforts sometimes weren‘t enough. That‘s when they had to improvise as this next story
illustrates.
Spring City, TN was the site of a hardwood mill and timber property. Dimension lumber
and boards were its products. Hardwoods were not usually part of the Company‘s inventory but
the war necessitated a certain amount of flexibility. Most yards sought various kinds of orders
from defense contractors such as crates and boxes or parts that could be cut to size from any kind
of wood since most would be disposable after shipment overseas. Lacking enough high priorities
to buy softwood lumber from their usual West Coast or Southern mill sources, Spring City
presented a stopgap to keep the yards able to meet most demands. It had been at least a quarter
century since the Company had bought or owned any mill, so the home office buyers had to
search diligently to find one with the kind of lumber they could use.
Next they had to determine if the mill could be bought and, if so, at what price. Once
Spring City was found to meet all of the above criteria, the buyers found out it had to be a cash
deal. So, carrying a bag filled with an unusually large amount of bills, the Company team,
consisting of Martin Kuntz and brothers William and Edward, drove south and closed the deal. It
proved to be a godsend for many of the yards who, otherwise, would have had to turn down
much needed business during the war.
Spring City remained in the organization until 1947 when it was either closed or resold.
(The record is not clear.) The company purchased another mill later during the war for similar
reasons. This one was located in Alabama and, like Spring City was sold after the war.
The end of the war occasioned a lot of celebrating and the Company had its moment in
1947 when it again honored President Peter, this time for 50 years of service. The yard managers
took charge of the affair and they did it in style. The same Biltmore Hotel hosted the party but
the ballroom was lavishly decorated and featured an ice sculpture, unique for its time. (See photo
at left.) After dinner, speeches were made once again
praising the President for all he had done for them
and the Company. Next they presented him with a
beautiful, hand-illuminated Resolution signed by all
the attendees acknowledging his accomplishments
and company leadership and wishing him many more
years of happiness and success. (See copy at right.) Then came THE BIG SURPRISE. They
26
handed him the keys to a brand new Cadillac convertible complete with a built in telephone, one
of the first of its kind. The car itself couldn‘t be brought to the banquet but a cartoon created by
Henry Diefenbach was displayed for everyone‘s inspection. It showed the car with all of its
gadgets—including the phone—and looked like a Rube Goldberg production, much to the
President‘s amusement. Peter was truly overwhelmed and thanked the group profusely. (See
photo this page plus 2 pictures of the car.)
The year 1948 marked the end of the 30-Year Trust established by Peter Sr.‘s will. The
Trustees made their final report showing year by year as well as overall results. The latter
showed income from dividends (over $7,000,000.00, all from company operations), payment of
final Estate taxes and other final expenses, the construction of the family mausoleum, provision
for designated charitable contributions as well as those made during the 30 years by the Trustees,
the annuity for Peter‘s widow, and, finally, the distribution to the heirs. The Trustees, by their
efforts as a ―team‖, brought the Company through those years consistently showing an annual
profit.
At this point in the narrative, it needs to be explained how Peter Sr.‘s estate was finally
distributed. Much thought went into the making of his will and one can assume he had excellent
counsel in drawing it up. No explanation was given in the will for setting up the 30 Year Trust.
The best guess was that, given the 23 year spread between the oldest and youngest heir, Peter
wanted to preserve his estate, (the Company) if possible, at least for that period and also to give
each son a chance to contribute to its growth over the years. He also faced the dilemma of being
as fair as possible to his daughters while recognizing the remoteness of their making any direct
contributions to the Company over the 30 year period.
What he did to address the situation was to convey his 7,995 shares of Kuntz Investment
Co.—the entity which owned all his business assets—to his children, allotting 1,025 shares to
27
each of the six sons and 615 shares to each of his daughters. No exact dollar figure for these
shares was given at the time, though a recent request to Montgomery County Probate Court for
the appraised value is still pending. Since these
shares comprised the bulk of his estate, the total
remains unknown.
What is known is that, in 1935, a
reorganization of sorts occurred. Kuntz
Investment Co. was merged into The Peter Kuntz
Co. What exactly prompted this move is uncertain
but perhaps some law or regulation made it
mandatory and/or advantageous. Out of this event
came a new issuance of 20,000 shares of Peter
Kuntz Co. common stock with a stated par value
of $10.00. Between 1935 and 1948, when the 30
year Trust was over, the number of shares
outstanding had been reduced to 19,886. No
explanation can be found for the reduction. So, in
1948, in accord with the original wishes of Peter
Sr., these shares were apportioned to the heirs as
follows: 2,549 and 1/2 shares to each son and
1,529 and 2/3 shares to each daughter.
The following year, 1949, brought another
recapitalization, this time to help the company and
its stockholders. Two things took place. First, a
stock dividend payable in new preferred stock
was declared. Each stockholder received one
share of 5% cumulative non-voting $100.00
par value preferred stock for every full share
of common stock held. Next, a new class of
no-par common stock was created. Thus,
100,000 shares were authorized of which
80,000 would be issued to the present
shareholders on the basis of four shares of nopar common stock to be exchanged for every
one share of the original $10.00 par value
common stock. (See pictures of the two stock
certificates on this page.) The other 20,000
shares were held by the Company to be issued
as needed in the future for recruiting new
management or rewarding present key
employees. The benefit to the heirs (now
stockholders) was to give them more
flexibility to arrange for their future personal or family needs such as paying estate taxes, making
gifts to children, or giving to favorite causes. These moves caused the number of stockholders to
grow almost immediately. Over the course of years the roll would grow from just 9 to over 180
common and preferred stockholders consisting of third and fourth generation family members as
well as key employees (as will be noted later).
It was definitely a different world and The Peter Kuntz Company was changing too.
From a high of 82 locations in The Peter Kuntz Company and Associate Lumberyards there were
now just 48. (See map above left.) These consisted of yards that were wholly or majority owned
28
by the company plus others who were considered ―associates‖ owned by outsiders who had
previously been part of the original Associate Lumbermen but who had paid off their debts to the
company or otherwise bought out the company‘s interest in that location‘s yard. Not much is
known of the other 34 yards‘ stories. Presumably they went out of business during the
Depression or else stopped associating themselves with The Peter Kuntz Co. for reasons
unknown.
V. 1946-1954: The Post War Era
Since their father‘s death in 1918, the company had been ably led by Peter, Jr. and his
next youngest brother, Martin. Beginning in the 1940s, Martin had taken on more and more of
the operational leadership as his elder brother began spending time at his home in Miami Beach,
FL.
Though Peter himself would never confirm it, there was
an expectation that he would retire soon and name
Martin as his successor. Fate decreed it would happen;
just not the way everyone expected.
In the summer of 1954, Peter fell ill and on
nd
Aug. 2 of that year he died. Shortly afterward, the
Board of Directors named Martin to the Presidency.
The move was
enthusiastically
received
by
everyone in the
organization
because
of
his
knowledge and his perseverance in his position, despite over
a quarter century of fighting the debilitation of a virulent
form of arthritis. It had immobilized his neck and spine and
subjected him to extremely painful flare-ups in other parts of
his body. The disease also had the effect of reducing him to
―skin ‗n bones‖, but he continued to work saying that it was
what kept him alive. This perseverance was also exemplified
in his civic pursuits. He led the fund drive for The University
of Dayton Fieldhouse completed in 1950. (See photo at left
of Martin handing keys to the Fieldhouse to Fr. Elbert, Pres.
of U.D.) He also led a drive on behalf of St. Elizabeth
Hospital that resulted in doubling its capacity at the
time. These and other activities won him
recognition in 1952 from the Dayton Bicycle Club,
an organization of business leaders which included
Charles F. Kettering among others. They honored
him for 40 years as a ―cadet,‖ a reference to his
younger days as a basketball player for The St.
Mary‘s ―Cadets‖ as the team was called before
becoming The University of Dayton Flyers. (See
presentation cover at right.) Subsequent to that
honor came another, this time from the company
and the yards for 40 years of service. At a dinner
given in his honor he was presented with pieces of
29
antique silver. It should be noted that one of the invited guests was Charles Kettering who
wanted this audience to know of his affection and admiration for ―Marty‖ just as he had done
previously. (In photo at left Kettering is hidden behind President Peter.) In 1953, The University
of Dayton conferred on him an Honorary Doctorate recognizing his 40 plus years of devoted
service in many capacities as an alumnus.
What followed then was a second shocking event. Only in office five short months,
Martin suffered a fatal heart attack on Jan. 3, 1955. Fortunately for all concerned, in 1953,
William, (Bill) the brother next younger in age to Martin, had left his position as manager of
Peter Kuntz Lumber Co. in Dayton to assist Martin at company headquarters. They had always
been close both at work and as family and the move was seen as a positive one perhaps signaling
a new era of growth for the company. In an unexpected way, that‘s just what happened. Bill was
immediately elected President
VI:
1955 – 1967: The Bill Kuntz Years
Bill hit the ground running. All the
employees were familiar with him and liked
his operating style. He had the able assistance
of his two remaining brothers, Edward, who
ran the lumber sales department, and Richard,
who oversaw accounts receivable both at
headquarters and at the yards. (Photo at left
shows l to r Richard, Bill & Edward.)
Martin Kuntz, Jr., son of the late
President and the first member of the third
generation of Kuntzes to join the firm, assisted
Bill with management of the retail yards. After
service as a pilot in the Army Air Corps during WW II, Martin Jr.
had trained at the Middletown yard, starting out in the yard and
then moving inside to familiarize himself with all aspects of the
business. When promoted, he was given a variety of assignments in
management of the company‘s operations in order to prepare him
for future executive responsibilities. In 1953, he and Clarence Kamp, the
company comptroller, were elected to the
Company Board. (Photo at r. shows Clarence
and Martin at one of the annual company mgmt.
outings.)
It was also during this period that two
other members of the third generation began
their careers with the company. Peter H. Kuntz,
Martin Jr.‘s brother, started at Clark County
Lbr. Co. in Springfield, OH in 1950 after
graduation from The University of Dayton and
his marriage that same year. After living and apprenticing in Springfield,
he and his family moved back to Dayton in 1953, where he was named
assistant manager of Peter Kuntz Lumber Company, eventually
becoming its manager before leaving there in 1970 to join the home office staff. (See photo at
left.)
30
Richard P. Kuntz, son of Richard Kuntz, started his career shortly after Peter H. He too
trained at Clark County Lbr. Co. eventually becoming its manager. He and his family moved to
Springfield and remained there throughout his life, even after he was promoted to a Vice
presidency with the parent company. (See photo on previous page.)
Not long after Bill took the helm, he felt the need for assistance to address the company‘s
growth. He hired Bob Bell, an outsider with a background in business management, to oversee
several new ventures which were getting started.
The first two, Western Ohio Development Co. and North
Central Mortgage Corporation, were born of the view that the PK
yards would benefit from two kinds of financing help for their
customers, namely, land development funding and construction
loans. Western Ohio flourished for just a short while before
management realized that their funds could be tied up for long
periods of time and the return on those funds didn‘t justify the
wait. North Central, on the other hand, aggressively pushed its
construction loan product and, after gaining the goodwill of its
builder customers, began to see other business opportunities in the
form of mortgage financing to home buyers utilizing both private
investors and the federal government. Eventually, this latter
activity became its sole business, especially under the direction of
Henry Potts, a former Savings & Loan officer who had experience in the government-backed
mortgage field. (See photo at right.) With a team of knowledgeable and aggressive salespeople
plus an experienced office staff handling the paperwork, North Central grew rapidly, eventually
buying a subsidiary of its own, Scioto Savings, a Columbus OH savings and loan company and
renaming itself North Central Financial Corp. This growth, however, would prove to be
disastrous, a fact which will be explained further on in this story.
The next venture under Pres. Bill was called Material Distributors, Inc. (MDI). It resulted
from the changing face of product distribution taking place at that time. Manufacturers were
looking for entities with warehouse facilities large enough to handle carload (later semitrailer
load) shipments and redistribute such goods to retail yards, many of which were too small or
lacked the capital to buy such large quantities of goods. All the PK yards fit that profile so MDI
had a ready customer base and the pricing of these products
made such service profitable for MDI and the PK yards.
Under its original manager, Chuck Flaum, (pictured
below on the left with Bob Bell) MDI broadened its
customer base by selling to non-PK lumber yards and
found that they were well received for their products and
service even though these independents knew that the
company was a PK division.
The business grew so much that the original
warehouse in Dayton became too small, while the market
territory was growing at the same time. So, a second
location was leased in Cincinnati. (A third warehouse was
opened in Columbus but never achieved satisfactory results
and was eventually closed.) MDI continued to operate
profitably right up to the time of the sale of The Peter
Kuntz Company. While MDI was growing its warehouse
distribution, another opportunity for sales and profit was
uncovered. Finding that independent yards were becoming regular customers of MDI, the lumber
31
buyers at PK headquarters suggested they try to solicit carload lumber sales from those same
yards. Thus was born PK Sales. Over the years, PK had developed many excellent sources for
lumber items, and the buyers soon proved the worth of this idea. It was a win-win situation that
provided added profits with very little overhead.
A fourth new venture appeared toward the end of the 1950s. It was called PK Home
Shopping Center. Located in the south Dayton suburb of Washington Twp., it led the company in
a whole new marketing direction, at least for its geographic area. Resembling more a hardware
or general merchandise store, it was a free-standing
structure situated in a recently developed shopping center
with ample on-site parking. Its marketing efforts were
aimed mainly at homeowners and the rapidly growing doit-yourself (DIY) market. Both Bill and Martin had looked
at similar stores elsewhere and decided to try this new
approach. The lack of experience in this type of business,
as opposed to dealing with professionals, led to some early
losses and it wasn‘t until 1964 that the operation showed a
profit. An important factor in the turnaround was the hiring
of Bob Laravie as manager. (See photo at right.) Coming
from a background that was strictly retail, he showed a
knack for merchandise selection and, more importantly, built a team of knowledgeable
employees who knew how to take care of customer needs and enjoyed doing so. He was later
promoted to advertising and merchandising manager for the whole company as the rest of the
yards developed the consumer/DIY part of the business.
While all these new activities were underway, a question arose from some of the
shareholders. They seemed happy with the dividend rate (5%) on their preferred shares, but they
sometimes required extra cash and felt that one of the purposes for the creation of the preferred
stock had been to address such situations. While Bill agreed, he felt that the big question to be
addressed was the per share price for redemption. After considering various ideas, he conceived
of basing the price on the value of General Motors‘ 5%—$100 par value preferred. This price
was published daily in the financial news and everyone concerned considered it to be a fair price
basis. (Proof of the plan‘s success was that over half of the original 20,000 shares had been
redeemed by the time the company was sold in 1986.)
As the 1950s ended and the 60s began, the company was thriving under Bill‘s direction.
Change was in the air. After 46 years of service, Henry Diefenbach, head of the Sidelines Dept.
called it quits in 1959. Though officially retired, he was asked to continue creating the
―Sideliner‖ company newsletter from his home on a contract basis, to which he gladly agreed.
More will be said about him later in the section about ―PK People‖.
In 1962 Bob Bell was promoted to Vice President, the first outsider to reach that status.
On Christmas Day, Dec. 25, 1962 Mary Kuntz McLean, the eldest daughter of Peter Sr.
and Mary Kuntz died. This created an opening on the Co. Board which was filled by Peter H.
Kuntz early in 1963.
The year 1963 was also the start of a new venture, Ply Fab Components, Inc. It was an
outgrowth of work started at Peter Kuntz Lumber Company‘s mill. The products were structural
building assemblies utilizing plywood and lumber for roofs and floors. These were fabricated
using various glues plus calibrated pressure to complete the manufacturing process. Each product
was designed to meet appropriate building codes by a registered engineer, and the whole process
was inspected and the product(s) certified with a stamp after being tested by a representative of
the American Plywood Association (APA), who licensed the program. Because most of these
products were rather large and heavy, the mill could not continue to provide space for this
32
operation. At this point, Bill and Peter H. travelled to other companies in the Plywood Fabricator
System (PFS) to see how it was being implemented
elsewhere.
This process led to the decision to locate the
operation in Centerville, OH in a new building which was
to be constructed using as many of the different products as
possible to demonstrate their capabilities. (See photo at
right.) Peter H. left the Mound St. yard and headed this
new subsidiary. John Geiger was hired as its engineer and
head of production.
Ply Fab enjoyed only a brief life. Though the jobs
produced were profitable, there never was enough total
volume to sustain the business and, other than one product,
box beam garage door headers, there was nothing to keep
the plant running between jobs. One other factor was not sufficiently studied. It was that
architects in its market area were not well-versed in designing with wood as contrasted with
those in the northwest who were surrounded by forests and were trained in wood‘s utilization.
Other PFS fabricators built components for their own pre-fab homes or for others in that field.
No such market existed here, so after three years, the operation was closed and the property
eventually was sold. Peter H. returned to manage Peter Kuntz Lumber Co., succeeding his
former boss, Harold Bredwell, who retired.
A historical sidelight during this time was the decision to discontinue a banking
relationship with Continental Illinois Bank because the Company was adequately served by local
Dayton banks. Shortly after this decision was reached, Bill remembered that it was that same
Continental Bank that lent the funds which allowed his father to remain in the lumber business
by rebuilding the Union City yard shortly after it was burned to the ground in 1883, a loan
granted with no collateral required, just his word. Accordingly, the Board
ordered that the previous decision be revoked and a token amount of
money be kept there at all times to honor that significant event.
In 1964 two more veterans left the headquarters staff. Clarence
Kamp retired as Comptroller and was replaced by Paul W. Heintz (See
photo at right.) He had assisted
Clarence since coming aboard in
1954. Ed Haag, bookkeeper and
sometime company photographer
also retired.
At company headquarters, in 1965, a computer
system was just getting started with the installation of
‗unit record equipment‘. The department, under Jim
Cronin‘s direction, (See photo at left.) started with IBM
punch cards then graduated to tape drives. Implementing
this new tool took time, not only because of the novel
technology involved, but also because the employees had so little experience in its use. Training,
especially at the yard level, was a continuous process as new functions were added. Accounts
receivable began the program followed by accounts payable and, finally, the general ledger.
Bookkeepers, as such, were not needed any more at the yard level. Computer generated reports
for all the yards and the Company as a whole eventually were produced, and by 1977, the
shareholders got their first consolidated year end report via the computer. All this activity
demanded more equipment and personnel. Thus the operation grew to encompass part of one
floor at the home office building plus space in another downtown Dayton location. The final step
33
in this process was the installation of
point-of-sale machines at the yards
enabling them to transmit and receive
information to and from company
headquarters each day.
In 1966, two new Board
members were elected: Peter K.
Wickham, an exec with Sears
Roebuck, son of Elizabeth Kuntz
Wickham and Peter K. Graves, head
of a local airplane dealership, son of Grace Kuntz Graves. (See board photo at left. Peter Graves
standing 2nd from left. Peter Wickham standing 2nd from right. Also pictured is Edwin Huston,
seated at left end and Norb Pointner standing third from left. The latter two were elected to the
board in 1975.)
On May 12, 1967 John Kuntz Sr. died in San Antonio, TX. His son, John Jr., also of San
Antonio, succeeded him as head of the chain of Texas lumber yards his father had developed.
Toward the end of 1967 a couple of executives left the organization. Bob Bell, Company
VP of Operations, and Chuck Flaum, Group Manager of the MDI branches, announced their
intention to relocate and start a new and unrelated venture.
VII.
1968-1974: Change is the Name of the Game
The following year, 1968, Bill resigned as Board Chair and became Board Chair of North
Central Mortgage Corp. Ed took over as PK Co. Board Chair and, for the first time in its history,
the company got a president who was not a Kuntz, though not a
stranger. His name was Kenneth (Ken) Bolinger, (see photo at
right), most recently the manager of its yard in Cincinnati OH,
Queen City Lumber Co. He worked in various PK yards before
serving in WW II. After the war, he returned to the company,
becoming assistant manager at Independent Lumber, the PK yard
in Cleveland OH and eventually manager at Queen City. He was
also elected to the Board and, after Ed retired, took over as
Chairman. Two more management appointments were made that
year. Norb Pointner (see photo left),
former manager at PK Sidney, and
Richard P. Kuntz, former manager at PK
Springfield, became Vice Presidents of Retail Operations, each
supervising one half of the yards. In 1969, Richard P. Kuntz was
elected to the Company Board. In the following year, both Ed and
Richard Sr. retired from active service with the Company but retained Board membership. The
torch had effectively been passed to a new team combining third generation Kuntzes with
seasoned veterans of PK‘s retail lumber business.
As the 1970s began, the PK organization was definitely changed. There were 30 whollyowned PK yards and 14 associate yards in the Ohio-Indiana trading area, 5 associate locations in
Illinois, plus two MDI warehouses. The look of the PK yards had also been changing. They
reflected the Company‘s growing efforts to attract do-it-yourself customers as well as contractorhomebuilder customers. It was a conscious decision which was aimed at preserving total sales
and profits despite the periodic downturns in homebuilding and other types of construction. The
retail customer was seen to be more predictable, so all locations were expanding to attract him
(and her). The decision proved to be correct and, in his report to the shareholders for the fiscal
34
year ending Oct. 31, 1974, President Ken noted that sales and profits were the largest in
company history. Sadly, it was to be his last report because he died of a heart attack at his
residence on July 20, 1975. Eight days later, at a special meeting of the Board, Martin Kuntz, Jr.
was elected President, Richard P. Kuntz, Exec. Vice Pres. & Secretary, Peter H. Kuntz, Vice
Pres., Asst. Treas. and Asst. Secretary and Paul W. Heintz, Vice Pres., Controller, Treasurer, and
Asst. Secretary. Appropriate actions regarding Ken Bolinger were taken including a resolution
commending him for the years of service he had rendered. Later that year the Board voted to
expand from nine to eleven members. At its fall meeting, the Board elected Norb Pointner,
company Vice Pres. and Edwin A. Huston, a Ryder Corp. Vice Pres. and grandson of John Kuntz
Sr. to its ranks. With the death of Ken Bolinger, one seat remained unfilled.
VIII. 1975-1986: The Final Era
Beginning in 1976, a new corporate
strategy began to emerge. Its goal was to
become the dominant player in the Greater
Dayton Home Center market. PK Far Hills
(formerly PK Home Shopping Center) was
setting a nice pace in the southeast section but
lacked the ground and warehouse space to
handle builder trade, so a new location was
sought. At the same time it was decided to close
Peter Kuntz Lumber Co. as soon as the new
facility opened and move its operations there.
The site chosen was on Springboro Pike in
Moraine, the southwest section. It would
accommodate a store and attached warehouse plus
open space for overflow storage or added sheds. Its
name would be PK Alex Bell (taken from
ALEXandersville-BELLbrook Rd., the main eastwest road bordering the shopping center in which it
was located. (See photo above right.) It opened a year
later and the decision proved to be a good one
because both the store sales and contractor sales
were producing great results.
Heartened by this move, management went hunting for a third site, this time in the
northeast. They found it in a shopping center just off I-70 in Huber Heights. (See photo above
left.)
The final location, and the last new store
built by PK was in Englewood, (see photo lower
left.) a northwest suburb. These four, plus the
existing yard in Fairborn, gave PK a substantial
presence in the Greater Dayton area which helped to
offset the growing competition from the likes of
Sutherland, Wolohan, Wickes, 84 Lumber, and
Furrows. (Lowes and Home Depot had yet to open
their ―Big Box‖ operations in the Dayton market.)
While all this was taking place, the ongoing
upgrade of other locations was continuing. Brand
new stores in Bellefontaine, New Castle, and Celina were opened. New warehouse showrooms
35
and remodeled stores went up in Richmond and Springfield. Queen City got a large covered
storage shed that was partially enclosed. Almost every location took on a new look to back up
the new advertising and merchandising programs under Bob Laravie‘s direction.
In 1977 the Company initiated The Key Employee Stock Purchase Plan. (See copy of
announcement at left.)The purpose was two-fold. It permitted key employees to buy shares of the
company‘s common stock while providing a pool of
funds for current stockholders to redeem their stock.
The stock price was based on a formula value available
to all participants. For the nine years of its existence this
price ranged from $69 to $106 per share. As such, it
enjoyed wide participation and thus fulfilled a real need.
As the last quarter of the 20th century dawned,
PK seemed poised to meet the challenges it faced. Then
came 1980 !
There had been signs in the housing industry of a
downturn due to a shortage of mortgage funds; but this
had happened before, so not many people worried.
Then, almost overnight, in the spring, interest rates
soared to record heights. Homebuyers disappeared and
mortgages could not be closed at the new, higher rates.
This left mortgage brokers, North Central Financial
Corp. included, caught with no mortgages to fill the
forward commitments they had made to agencies like
Fannie Mae and Ginny Mae. PK was forced to honor those commitments with its own funds and
its lines of credit ultimately costing almost half of the company‘s equity (before tax refunds).
The company was forced to sell its North Central
subsidiary in 1981 to Third National Bank of Dayton (see
announcement above left.) to stop further losses. It was a
bitter pill to swallow and it came on the heels of the death
of Bill Kuntz on March 5, 1980. Bill had started NCFC and
had seen it grow in volume and profit. It was fitting,
perhaps, that he was spared the anguish of seeing its
demise.
In the previous year, 1979, Ed Kuntz retired from
the Board and his son, Ed Kuntz Jr. replaced him. (See
photo at right.)
Shortly after Bill‘s death, Herman (Bud) Sanders Jr.
was elected to the Board. (See photo of Bud with Pres.
Martin at lower right.)
Bud was manager of Butler County Lumber Co. in
Hamilton, OH, consistently one of the most profitable
operations in the PK association. The move was seen by all
as a positive one whereby Bud‘s advice on a wide range of
topics pertaining to PK would be valuable. Unfortunately
he joined the Board just as the North Central problem
reached its climax, so much of his advice was unable to be
acted upon. Sensing PK‘s problems were more widespread
than he anticipated, and that they would not be solved by
any answers he could provide, Bud resigned from the
Board in 1982.
36
Senior management added a new name in 1981. Tom Cawley became Merchandising
Vice President. (See photo at left) His resume included positions with
industry leaders Rickel Home Centers and Hechingers, names that were
recognized as outstanding retail merchants in their markets. Tom
immediately went about strengthening the stores‘ inventories and
coupled that effort with more advertising and promotion. Also in 1981,
the Company lost a senior exec., Richard P. Kuntz. Dick had expressed
a desire for some time to return to Springfield as manager of that yard
and when the position opened as a result of some other shifting, he
opted to resign as an Operations V.P. and resume his former position as yard manager. He also
indicated a desire to buy the Springfield yard at some future date. Pres. Martin was delegated to
negotiate with Dick in the matter. Due to divided ownership of the Springfield yard, The Peter
Kuntz Co. had to buy the remaining shares so that the negotiations could proceed. The two
parties, however, could not agree to satisfactory terms, thus terminating negotiations.
The year reached its low point when North Central and its subsidiary, Scioto Savings
were finally sold to Third National Bank of Dayton, OH. The sale enabled the Company to
complete an orderly liquidation of North Central‘s GNMA bond portfolio saving as much as
possible of its surplus. The loss, however, severely restricted management‘s plans for 1981, so
that the next year (1982), the Board, reacting to the loss and its effect on company stockholders,
demanded a specific plan for all its remaining operations. Serious questions about the
Company‘s future began to arise.
The year 1983 saw the Company again in the black (though barely). New home starts
began to rise and consumers were entering the PK stores in greater numbers and spending more.
They represented a growing segment of company business due in no small part to the Dayton
area Home Centers. In response to the stockholders‘ concerns, the Board elected William V.
(Bill) Richards, a Trust officer at Bank One in Dayton. He had been following the company‘s
actions ever since Bill Kuntz‘s death as Trustee for his estate on behalf of Bill‘s grandson
William Kuntz III and was a knowledgeable addition for that reason.
Responding to the Board‘s notice, the Company officers put together a 3 year plan
incorporating a redistribution of assets and specific sales and profit goals for all of its segments.
An example of the redistribution was the move by MDI in Dayton from a leased building to the
former Peter Kuntz Lumber. site on Mound St. This solved MDI‘s need for larger facilities and
put back to work an idle warehouse. A further saving accrued when the warehouse that MDI
formerly leased was subleased. Two other efforts at that time reduced inventories and receivables
by better than 4 million dollars. An additional 2 million dollars plus would be added to the
balance sheet as a result of the approval by the IRS of an income tax refund coming from the
losses connected with the North Central/Scioto sale.
The year 1984 started well but, with the coming of spring,
another rise in interest rates caused a slowdown in home building,
while the memory of 1980 also seemed to affect consumers who
became more price-conscious. At the same time, the cost of goods was
rising, so that the net result was a small overall loss for the year
comparable to the previous year‘s profit. The Board reacted to these
results and expressed displeasure with merchandising plans put forth
by Tom Cawley saying that they were too vague and seemed too
expensive for the situation the Company was in.
All this resulted in Cawley‘s resignation which the Board accepted.
Replacing him was Bill Collins, (see photo at left), most recently one
of two group operational managers.
37
At the Annual Meeting of the Peter Kuntz Co. Stockholders, it was noted that, due to
serious illness, Peter K. Graves was absent and could no longer be expected to serve as a
Director. Thereupon a resolution was proposed and unanimously approved to have Peter K.
Graves Jr. replace his father on the Board. Peter K. Graves would pass away on Sept. 2, 1986.
At the Board meeting following the Annual Stockholders‘ meeting, the President outlined
new steps to stem the erosion of Company capital. These included further inventory reductions, a
cutback on advertising, and no year end bonuses for the three top officers. Additional home
office staff reductions were already being made.
The Board members noted favorably the reception of this information but they were still
concerned by remarks and opinions being heard about the continuing decline in profitability and
its resulting effect on the value of the common stock. For the first time there was serious
discussion of future shareholder choices including the sale of the company. This discussion
resulted in a motion to seek outside opinion(s) about the firm‘s worth. The motion passed and
William Richards, Peter K. Wickham, and Ed Huston were delegated to seek such opinion and
report back to the Board.
The directors chose the firm of Prescott, Ball, & Turben (PB&T) to do the valuation of
the PK Co, common stock and also to submit a supplemental report on the possible value of the
company in any potential sale or merger. At its meeting in November, the Board was introduced
to Mr. Burton Vincent, Exec. Vice Pres. of PB&T who explained the process and timeline of the
evaluations. He then excused himself so that the Board could discuss the proposal. After that
discussion, the Board accepted his report and President Martin and Ed Huston were directed to
draft an agreement with PB&T subject to Company counsel‘s review and submit it to them for
signing. This they did and the process began.
Mr. Vincent and two of his associates reported to the Board on April 12, 1985 and a
lengthy discussion ensued. Following that discussion, the Board thanked Mr. Vincent and his
team for an excellent job and asked that he proceed to canvass the market for potential buyers or
merger partners. Another contract for this service was drawn up and signed by the parties. The
PB&T team was made aware then of three situations that had to be considered by any potential
buyer: Butler County Lumber and the Sanders family minority interest in its Preferred Stock,
Fairborn Lumber and the Goodall family minority interest in its Common Stock, and PK
Springfield where Richard P. Kuntz still had an interest in purchasing its Common Stock. Each
presented a situation that could derail or, at least, drag out potential negotiations .
By the middle of the year, PB&T had assembled a presentation booklet for prospective
buyers and, after review by the PK Board, began to contact prospects. The booklet listed 21
lumber yards and home centers. (Belle Center, Marion, and West Liberty were closed during
1985, and Lakeview was made a satellite of Bellefontaine.) It also listed the two MDI
warehouses. This was followed by a presentation of a short history of the Company and a reprint
of the annual report for 1984 plus several pictures of its yards. The final section was devoted to
General Comments summarizing PB&T‘s appraisal of company worth. The Board reviewed the
booklet and approved it for circulation to prospects.
As there was now the real possibility of a sale of the company, the Board was asked to
consider the futures of the three company executives – their salaries and pensions. In response,
the Board agreed to draw up Employment contracts for all three in case the prospective new
owners did not choose to retain them. The Board also agreed to a modification of the Company
Pension plan allowing those employees with over 30 years of service to be eligible for early
retirement at the benefit level they would have received at age 65. This too would be operative
only in the event of non retention by the new owner.
As the end of 1985 neared, another unexpected death occurred. Bill Collins collapsed at
his home while mowing his lawn. Though he had been with the company a relatively short time,
he had earned the respect of company officers and employees at the home office and also at the
38
yards . With the company‘s future uncertain, his position was left unfilled and his duties parceled
out to various members of the corporate staff until the situation changed.
Early in 1986, Erb Lumber Co. of Detroit, MI surfaced as a possible buyer. PB&T had
contacted other well known chains, some of whom declined to bid while others were interested
only in some of the locations. Based on these facts, Mr. Burton was directed to seek a specific
written offer from Erb for the PK Board to consider.
An offer was presented to the PK Board at a meeting on June 6 by PB&T on Erb‘s
behalf. It was not an offer to buy the Peter Kuntz Company itself but ―substantially all of its
assets.‖ At that meeting the Board also heard a proposal for buying the Company put together by
members of the headquarter staff. Although it was a reasonable one, the Board felt there were too
many unanswered questions which made it an unacceptable risk. They thanked the group for
their effort but, after they had left, decided not to consider it any further.
So, after lengthy discussion, Erb‘s offer was accepted subject to further modifications.
The Board had previously appointed Peter H. Kuntz, Paul Heintz, and Ed Huston to act with Mr.
Vincent in attempting to draft an agreement acceptable to both parties, and so this committee was
instructed to continue their work. The process took the better part of a month before all parties
agreed. The Board also authorized proxy solicitations to be sent as soon as possible, assuming
such agreement would be reached.
On July 17 the Board met to hear Erb‘s offer as modified by negotiation and its effect on
the Company, should it be accepted by the Stockholders. This asset purchase agreement was a bit
more complicated than Erb simply buying the company through the purchase of its stock. It was
further complicated by the fact that Erb wished to use the PK name for its goodwill and
recognition in its market. The Directors agreed to Erb‘s proposal but they felt that the Company
should keep its active status in order to wind down its affairs in an orderly fashion. This included
receiving and paying funds, filing required governmental forms, paying taxes and legal fees, etc.
So a name change was necessary and the Directors chose KTZ Inc. This decision was ratified the
next day at the Annual Stockholders Meeting.
Next, the Board considered the PB&T fee for services. The fee had been originally set
based on a formula which ended up being interpreted differently by PB&T, as represented by
Mr. Vincent, and PK represented by Paul Heintz. After discussion, Paul was delegated to
negotiate a final settlement, which he did.
At this time the Board became aware of Pres. Martin Kuntz‘s desire to retire after the sale
of the Company was completed. So the members decided that Peter H. Kuntz was to be named
President and Treasurer and Paul Heintz was to be named Vice President and Secretary once the
papers were signed. This discussion ended with the setting of salaries and Director fees for KTZ
Inc. plus an incentive plan for PK‘s credit manager to collect as many of the receivables as
possible as outlined in the Purchase Agreement.
Finally, the Board authorized Peter H. and Paul to contact the Goodall family and offer to
buy their minority interest in PK Fairborn at a price comparable to Erb‘s offer. They also were
instructed to purchase from the Kuntz Foundation its remaining shares of PK Springfield at the
Erb price basis in order to clear that situation. The Sanders family/Butler County Lumber
situation was left to Erb to settle since it was a bit more complex. (Note: The Sanders family
bought the stock in question from Erb soon after the sale of PK Assets was completed. Likewise,
the other two situations were satisfactorily settled in a short while.)
The stage was now set for the final chapter in the Peter Kuntz Co. history: the
Stockholders Annual Meeting set for the next day, July 17, 1986.
39
The Annual Meeting followed the usual pattern to assure that the number of shareholders
represented either in person or by proxy
was sufficient to vote on the business at
hand. After being thus assured and after
hearing a current financial and operating
report, the attendees heard a narrative
summarizing the steps that had led to the
Directors‘ recommendation to accept a bid
from Erb Lumber Co. to buy
―substantially all the Assets of The Peter
Kuntz Co. and nearly all of Its
Subsidiaries‖. (See report of the sale and a
related cartoon at right.) The discussion
after this report included remarks from the
negotiating team plus Mr. Vincent from
PB&T, PK‘s corporate counsel, Mr.
Roland Eichner, and its tax and audit
counsel, Mr. Donald Trentman.
After this discussion, Ed Huston moved that the stockholders approve the sale as
recommended by the Directors. The motion was seconded by Peter K. Graves and passed almost
unanimously. All that remained was for the transaction to close with the signing of documents
and the transfer of funds.
Before the meeting closed, several complimentary remarks were made regarding the
whole conduct of negotiations leading to the sale. The remarks were appreciated by all
concerned. Also, the announcement of Pres. Martin‘s impending retirement prompted a
resolution commending him for his 41 years of service to the company particularly of his 11
years as President. The resolution was passed by acclamation.
Thus ended The Peter Kuntz Company.
Epilogue
It would take almost three years to wind up the business of PK. As noted above, lawyers,
accountants, banks, federal and state regulators, and others had to be dealt with before the ―last
light was turned out.‖ Fortunately for all concerned, both Peter H. Kuntz and Paul Heintz
accepted positions with the PK division of Erb Lumber. This made it unnecessary to rent office
space for the new entity KTZ Inc. Erb management allowed Peter and Paul to use not only the
office space but also other staff people to wind up the business of the former Peter Kuntz Co.
Paul‘s concerns were the ―numbers‖: receiving and disbursing monies from Erb,
customer accounts, pension funds, etc. Peter had primary responsibility for contacting former
shareholders and current directors to keep them abreast of news that affected them. Beginning
the day the Company was sold, a blizzard of papers had to be signed reflecting the fact that the
company had so many subsidiaries. In the end, a fully indexed set of form copies was furnished
to PK by its legal counsel containing all the required notices and actions taken to effect the sale.
It required 4 binders, each almost two inches thick.
As promised to the former PK shareholders at their final meeting, one of KTZ Inc.‘s first
actions was to gather the outstanding preferred and common stock certificates in order to make
redemption payments to the holders. As part of the sale agreement, KTZ Inc. agreed to accept
payment for the assets of The Peter Kuntz Co. partly in cash and the balance by an interestbearing note payable in 2 years from the date of sale.
40
At its first meeting on Aug. 15, 1986, KTZ Inc. directors adopted a plan of liquidation
and complete dissolution in accordance with state requirements and the recommendation of
Corporate Counsel. Prior to this action the Board accepted with regret the resignations of
Richard Kuntz, Richard P. Kuntz, and Norb Pointner. As part of the liquidation process, the
officers were also directed to sell all the remaining assets except the Erb note as soon as possible
and at a price acceptable to them at their sole discretion.
The next order of business was a plan to pay all outstanding debts followed by a schedule
of payments to shareholders starting with the Preferred stock owners. Paul noted that almost all
certificates had been tendered and the first payments could be made shortly. The directors
reviewed the present financial position of KTZ Inc. and recommended that two payments be
made to the Common stockholders by the end of 1986 with the balance deposited in an interestbearing account until all financial matters were settled. Counsel then
recommended setting up a liquidating trust for the benefit of all Common
stockholders during that time. The recommendation was approved by the
Directors.
Subsequently The Liquidating Trust for KTZ Inc. was formed and
its board consisted of all the former PK directors. As constituted, its sole
activities were the disposition of the assets of KTZ Inc. Bill Richards was
named Chairman.
Shortly after the last stockholders‘ meeting, a farewell dinner was
held for Martin. (See photo at right.) He was recognized by the attending
yard managers and home office staff for his leadership and service. A
Rolex watch was presented to him in honor of the occasion.
Meanwhile, the dissolution proceeded. The two most important
events during that time were the termination of PK‘s Pension Plan with the payouts to those
eligible and the approval by the IRS of the final income tax return. Paul Heintz had requested
―early determination‖ from the revenue service, and the bureau obliged with a blanket approval
as submitted, much to the delight of all concerned. The pension funds were deposited with an
insurance firm accustomed to handling such cases, and all eligible individuals were awarded
their pension in the form selected. The board members all congratulated Paul for his handling of
these and other matters.
During this time, Martin Kuntz resigned from the Board and at the end of 1988, Bill
Richards resigned as Chairman. He was replaced by Peter H. Kuntz who served until the
termination of the liquidating trust in 1989. By that time all but one stockholder had turned in
their certificates. Since that person was involved in several court cases that could affect his
payout, Counsel recommended that his funds be deposited in the Unclaimed Funds Division of
The State of Ohio, and so they were. For the record, the Preferred stockholders received $100.00
plus accumulated interest for each share submitted. The Common stockholders received a total of
$119.00 per share over the three year payout period. A final decision by the Board before its
dissolution was to donate to The Kuntz Foundation any remaining funds under $5000.00. Once
this was done, the Board was dissolved.
ADDENDA
PK People & Activities
One measure of any company is the ability and talent of its employees. Over the years PK was
fortunate to have a good number of such individuals. One of the greatest groups of these were the
yard managers who, with the guidance of Company execs, contributed not only in profits but
also in projecting positive images in their communities. Picking good managers, whether as a
41
partner or an employee, certainly was one of Peter Kuntz, Sr.‘s greatest attributes. It was also a
characteristic that Peter Jr. would learn to emulate during his tenure as President.
There was a wealth of talent present in the headquarters as well. One such person
deserves special mention. His name was Henry
Diefenbach. He came to the company under Peter Sr.
and he is pictured in the 1918 group gathered for the
first meeting of The Peter Kuntz Co. Lumbermen and
Associates Convention in Dayton, OH. where he
served as official recording secretary. Blessed with
talents for writing and cartooning, he combined both
to produce a company newsletter he called ―The PK
Sideliner‖. (See one example at right.) The name
was derived from his primary responsibility for
handling the ―sidelines‖ of PK‘s business, namely
those products not considered lumber or millwork
items, e.g. roofing, paint, hardware & tools,
insulation, cement & mortar, and more. In this
capacity he was used to seeing many, many suppliers‘
salespeople and could hear them say to the
receptionist, ―Lemme see Hank.‖ So he created his
cartoon character ―Lemmie C. Hank‖ who appeared
at the bottom of each newsletter beside his signature.
It was a single page publication with a
masthead of white letters on a red background on which Henry mimeographed snippets about
various products, company people and events, jokes and puns, and homespun philosophy all
aimed at making its readers better merchants/employees. It was sent originally to PK yards only
but soon got wider circulation as yard people showed it to customers, suppliers, trade journals
and even local and national media. They all wanted to get on ―Hank‘s‖ mailing list. It should be
mentioned here that Henry not only created and wrote for the Sideliner, but also drew cartoons to
go with his articles and hand–colored each copy. At first this was a manageable task, but it grew
until he was sending out almost 100 copies
at a time.
Henry continued this project until
his death in 1961 at age 70. During his
years with the company, he unfortunately
developed asthma and arthritis and had to
live out his retirement in an air-conditioned
room that was a combination of living
quarters and workshop. The latter was for
his hobby of building scale model sailing
ships. These were exquisitely detailed using
blueprints obtained from various maritime
sources and took months (perhaps years in
some cases) to build. Somehow, ―Life‖
magazine found out about Henry‘s work
and featured him and some of his models in
a one page article. (See photo at left.) He
said his hobby kept him alive during all the
years of suffering through those two
42
debilitating diseases. When in 1961 he finally expired, his will directed that the model ships be
donated to a maritime museum in New England.
Although unrelated to company business, during WW II Henry published another newsletter for
a little over two years.
He called it ―K-Bits News & Clews About
The Kuntz Family‖.
Gathering items from as
many family members
as possible, he printed
them for distribution to
all as a means of
drawing the family
closer together during
those trying times. He did it in ―Sideliner‖ fashion complete with a cartoon of some sort but not
colored. It was a small but much appreciated gesture especially to those serving in the military
overseas.
Returning to the subject of PK yard managers, there are several examples of multiple
generations of the same family operating PK or Associate yards. This, I think, speaks to the good
example and training received by the younger men from fathers who started under Peter Kuntz,
Sr. and benefitted from his advice. The list includes the Sanders family in Hamilton, OH, the
Stiens family in Richmond, IN, the Prakel family in Versailles, OH, the Goodall family in Troy,
OH, the Klipstine family in Ansonia, OH, the Winkeljohn family in
Celina, OH, the Tarkleson family in Richmond, IN and the Cook family
in DeLand, IL. (See list of specific names and yards at the end of this
section.) There probably are others not mentioned here with family
names that are not the same but who are related nonetheless . (Following
is one story of a PK Associate John Henry Winkeljohn, (See photo at left
taken in 1938) and his family‘s experience with Peter Sr. The story is
rather lengthy but this excerpt serves to show how business was
sometimes conducted in the late 19th and early 20th centuries. Mr.
Winkeljohn and his son Ferd are pictured in the 1918 group shown
previously as well as the 1938 and 1948 celebrations for Peter Kuntz Jr.
I believe they are the only father/son duo within the Peter Kuntz
Associates to have done so.)
―I was born August 21, 1863 in Germany. I came to America with one of my brothers.
After my marriage in 1894 and during my employment by the St. Henry Flour and Mill Co., I
was approached by Mr. Peter Kuntz, Sr. of Dayton, Ohio who asked me to engage in the lumber
business in Celina. As I was interested in the proposition, a meeting was arranged for that same
afternoon in Greenville, Ohio. When I arrived in Greenville, Mr. Kuntz met me at the railroad
station with a lame mule hitched to a dray. He insisted that I sit on the seat while he stood behind
me and drove the wagon. We discussed the business proposition at the Peter Kuntz & Wright
Lumber Company in Greenville. Mr. Kuntz suggested that we start a lumber company in Celina
on a partnership basis, but, learning that I did not have sufficient funds, he presented the
alternative plan that I work as his employee in the proposed lumber company. I agreed to this
and also to my salary which was to be seven dollars and fifty cents per week for the first year,
twelve dollars per week for the second year, and eighteen dollars per week for the third year. My
father-in-law, Mr. Bernard Romer of St Henry, Mr. C.E. Wright, and Mr. C.J. Herr later agreed
to invest one thousand dollars each in the project and Mr. Kuntz supplied the balance.
43
During the fall of 1894 a farm belonging to a Celina attorney, Frank LeBlonde, was
advertised for sale in sections. Mr. Romer and I went to Celina and bid on the seven and one-half
acres where the lumber yard is located at the present time. The price was eleven hundred dollars
to which the owners agreed.
As I was searching for timber with which to build a shed, I went to Burketsville, Ohio, to
see a Mr. Wesley Burt, who operated a sawmill. There I purchased sufficient timber for a two
story building, thirty by sixty feet, with two connecting sheds, each sixteen by thirty feet. This
material was delivered on the railroad siding in Celina for ten dollars a thousand (feet, board
measure). I then employed carpenters to construct the buildings. The first carload of (wood)
shingles, arriving on December eighth, was delivered and unloaded in the yard for two dollars
and fifty cents (per 100 square ft.).
My wife and I moved to Celina on the seventh of November 1894 and rented a house on
Warren St. On the first day of July, 1895, we moved into the seven room house which had just
been completed on the lumber company‘s premises.
The lumber company was an immediate success. The first three cars of lumber to arrive
were twelve inch, number four white pine boards. Before I had finished unloading these, I had
sold the siding for three barns.
After operating on our original program for two years, it was decided to incorporate the
―Peter Kuntz & Herr Lumber Co. for ten thousand dollars. Mr. Kuntz bought five thousand
dollars worth of preferred stock and the remaining partners purchased the other five thousand
dollars worth of common stock. (Over the next 14 years Mr. Winkeljohn and others were
involved with several lumber yards in nearby towns but he kept his main efforts in Celina. The
narrative continues.)
―In 1920, this common stock was increased from fifty dollars per share to one hundred
dollars per share. My son Ferd bought nine shares, my wife, one, and I purchased forty. In 1929,
I was given the opportunity to dispose of my interest in the lumber company by the Peter Kuntz
Company. The company‘s investments were changed to complete common stock and the
organization was reincorporated as ―The Celina Lumber and Supply Company. The Peter Kuntz
Company purchased sixty percent and my son Ferd the remaining forty.‖
This leads to the next topic in the addenda, education and training in the PK companies.
As stated previously, Peter Kuntz Sr. received very little formal schooling. What little he did
receive must have spurred him to want more. He became an avid reader, a traveler, and a student
of businesses he thought of pursuing. A good example is his move to Chicago where he gained
much knowledge (and economic fortune) from his experiences as a lumber trader. This period
expanded not only his knowledge of the business but also the number of industry contacts both at
the mill level and the retail yard level. These would yield big returns in the years ahead.
When Peter Jr. became President, he remembered many of the lessons taught by his
father, for example, the enormous goodwill that derived from the southern US rail trip on which
he had been a member. So it wasn‘t surprising that five years after his father‘s death, he invited
the Associates to another such trip.
While these are not, strictly speaking, formal training examples, they served to expand
the participants‘ knowledge of the industry and made them better prepared to give their
customers the best products and information available in their field.
All through the 1920s and 30s, PK people were kept up to date from both internal and
external sources. The ―PK Sideliner‖ and other internal memos relating to specific products were
regular sources of information. These were supplemented by training materials from
manufacturers. In the Depression of the 30‘s and during WW II much of this activity was forced
to be curtailed.
44
After WW II, there was renewed interest in education of personnel. The GI bill pushed
the level of education expectations higher and the wave of new products and new markets
necessitated more and more training. Realizing that it all started with the yard managers, The
Peter Kuntz Co. brought all its managers and
key execs to Granville, OH in 1956 for a 2
day seminar on new developments and
business strategies conducted by Art Hood,
well known industry watcher and contributor
to various trade publications. (See photo at
right.) The seminar was held under the
auspices of the Ohio Retail Lumber Assn. of
which the PK yards in Ohio were members. It
made a big impression on the participants and
proved to be a model for future such activities
generated at both PK headquarters and at
various yards. These activities became more
and more sophisticated as new technologies
were introduced. In-person lectures and demonstrations were followed by films and then by
videos, CD‘s, etc. Eventually, almost all PK employees received some kind of on-the-job
training making them more and more productive and, thus, more valuable to the firm. By the
time the company was sold, the personal computer had arrived and a huge new means of
education and training had burst on the scene.
Lemmie C. Hank and his Sideliner tied these efforts together until the editor‘s death.
After that, there was a void in company news interchange until the fall of 1968 when a new but
as yet unnamed publication appeared with four pages of news about the yards and their
employees plus a column written by the new CEO Ken Bolinger. The headline for that issue was
the announcement of a contest to name the publication. The winter edition had a new banner –
PK PACER, whose name had been submitted by two employees, Peggy King, headquarters
receptionist and Jim Hiser, warehouseman and
driver at Fostoria. (See 2 versions of the
masthead at right.)
From the winter issue of 1969 thru
March of 1977 only 6 issues were published.
The problem was that no one had been
assigned the specific task of producing the
Pacer so it fell to several people including
Peggy King to do the job. By 1977, Peter H.
Kuntz accepted the responsibility and from
that time until the end of 1980 published at
least three issues per year.
The hardest part of the job was getting the yards to send in news items. Attempting to fill
a four page newsletter with words and photos proved daunting to all involved especially as the
pace of business increased and time for this activity was more and more restricted. It was revived
for one last issue in 1982 before the company was sold and then had a brief revival in expanded
format under Erb‘s direction between 1987 and 1989 before disappearing completely. These last
issues were a team effort of PK and Erb people who were afforded more time and resources to do
the job. At least eight names of PK employees appeared in these last issues as contributors or
editors.
The assets of The Peter Kuntz Co. changed over the years. They went from a mixture of
wholly owned yards plus associates with varying percentages of ownership to a group composed
45
of wholly owned yards and independent yards with historic ties to PK. This new arrangement
allowed the associates to utilize PK‘s buying power with such well known names such as JohnsManville (roofing and insulation), Enterprise paint, Curtis millwork, and Kitchen Kompact
cabinets to name just a few, and provided PK with another revenue stream. Another plus
provided by this condition was that it allowed the Company officers to concentrate on their own
retail yards to maximize profits by working more with the yard managers and their assistants.
Knowing how vital the yard managers were to the Company‘s success, one of the
constant challenges PK Co. officers faced was how best to motivate their managers and in turn
how their managers could best motivate their employees. Starting in 1930, PK had instituted a
life insurance program for managers and key headquarters people. (See announcement letter and
policy cover at left.) It was a small
gesture but a large step given the
times. Following WWII, health
insurance was added to the fringe
benefit package and, finally, a pension
plan. Each addition was carefully
researched before being put in place
so as to provide the promised benefit
while not breaking the Company.
(Note: With the benefit of tax laws
combined
with
good
cash
management PK‘s pension plan was
considerably overfunded at the time
of the company‘s sale resulting in a
greater payout to the common
stockholders.)
However, the most consistent profit motivators in the Company were the various profit
sharing or bonus plans. The earliest such ―plan‖ was the 30 year Trust set up by Peter Sr. in his
will. Its essence was ―profit or perish‖. The sons knew they had to work to make the company
profitable and they had to do it not for just one year but thirty in order to reap the benefits for
themselves and their families. And early on they realized they couldn‘t do it alone. So they
recruited and hired people to fill key positions and offered them a share of company profits in the
form of year-end bonuses. This idea took many forms over the years due to changing conditions
but the essentials stayed the same – show a profit and you will participate.
Yard locations managed by two or more generations of the same family
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Ansonia, Ohio – George Klipstine Sr. and George Klipstine Jr.
Celina, Ohio – John H. Winkeljohann and Ferd Winkeljohann
Cincinnati, Ohio - C. K. Sanders and Cy Sanders
De Land, Illinois – Harry Cook and Howard Cook
Hamilton, Ohio – C. K. Sanders, Herman Sanders Sr., Herman Sanders Jr. and Mike
Sanders
Richmond, Indiana (Miller-Kemper Lbr.) George Stiens, Oren Stiens, and Don Stiens
Richmond, Indiana (Richmond Lbr.) Tom Tarkleson, George Tarkleson
Troy/New Carlisle, Ohio – James Goodall Sr. James Goodall Jr. and Dick Goodall
Urbana, Ohio – Joseph Murphy, Chalmer Murphy, and J. Ivan Murphy
Versailles, Ohio – Homer Prakel and Stuart Prakel.
46
11. Yellow Springs, Ohio – Jack Alexander and Joe Alexander
List of Participants and Their Locations Pictured at the First Meeting of the Peter Kuntz
Associates May 8, 1918
1st row left to right: D.M. Schilling, Peter Kuntz Co., Jos. Kuntz, Eaton, Ohio, Chalmer
Murphy, Xenia, Ohio, Homer Ballinger, Springfield, Ohio, J.A. Payne, Peter Kuntz Co.,
W.P. Hilton, Cleveland, Ohio, Peter Kuntz, Dayton, Ohio, John Arnold, Bradford, Ohio,
Jos. Murphy, Urbana, Ohio, Wm. Klipstine, Sidney, Ohio, J. Moeller, St. Henry, Ohio, F.
Tucker, Ohio City, Ohio, I.W. Clouse, Covington, Ohio
2nd Row left to right: L.B.Grannis, Lynn, Ind., J. Blotner, Troy, Ohio, A. Scherer, Peter
Kuntz Lbr. Co., Dayton, Ohio, W. McCampbell, Middletown, Ind., Homer Ballinger,
Marion, Ohio, G.W.Goodall, Auburn, Ind., E.O. Goodall, Greensprings, Ohio, H.E.Cook,
Shelbyville, Il., N.J. Kuntz, Dayton, Ohio, J. Goodall, New Carlisle, Ohio, J.I.Murphy,
Lorain, Ohio, G.H.Rehmert, Ansonia, Ohio, Roy Klipstine, Sidney, Ohio, Martin Kuntz,
Dayton, Ohio
3rd Row left to right: H.C.Diefenbach, Peter Kuntz Co., T. Gilliland, Circleville, Ohio, F.
Winkeljohn, Celina, Ohio, J.H.Winkeljohn, Celina, Ohio, W.J.Weber, Middletown, Ohio,
M. Yoder, Belle Center, Ohio, Don Overman, Greensfork, Ind., T. Tarkelson, Richmond,
Ind., Geo. Worch, Versailles, Ohio, F. Yoder, West Liberty, Ohio
4th Row left to right:F.B. Post, Lebanon, Ohio, C.M.Brown, Lakeview, Ohio, M. Albaugh,
Quincy, Ohio, M.M.Jenkins, Kenton, Ohio, C.K.Sanders, Hamilton, Ohio, Art Klipstine,
Richwood, Ohio, F.Romer, Cambridge City, Ind., W.O.Newton, New Castle, Ind.,
C,J.Herr, Greenville, Ohio, E.Timmer, Tipp City,Ohio,
Top Row left to right: J.B.Chenoweth, Lynn, Ind., L.Koester, Piqua, Ohio, J.A.Shade,
Piqua, Ohio, M.M.Gardiner, Chicago, Il., E.R.Albaugh, Bellefontaine, Ohio, G,F.Hill, Peter
Kuntz Co., Carl Graves, West Milton, Ohio
What‘s in a Name, and Will It Sell? – PK‘s Modus Operandi
The Peter Kuntz Lumber Co., P. Kuntz & Herr Lbr. Co., Klipstine Lbr. Co., Queen City
Lbr. Co., PK Home Shopping Center, PK Building Centers. We‘ve been known by many names
over the years. Like so many entrepreneurs, Peter Kuntz Sr. felt his name should be attached to
the business he ran so people
would know with whom they
were dealing. (See fold-type
business card at left.) This
was a common practice in
those times and it continued
up to WW II. It was also felt
by Associates who wanted either their own name alone or with Mr. Kuntz in the company
identification. It was reflective of the perception that ―big is bad‖ and that local identity is
―good‖.
47
Part of the yard signage was a cartoon-like emblem showing
two ―carpenters‖- P and K with the words ―Perfect Kwality ―
on a log stump. (See photo at right.) It was the first attempt at a
company logo, a subject to be addressed further on.
Color was very important in PK‘s early history. Orange
seemed to be first in the minds of the Company‘s leaders. Both
Peters—Sr. & Jr.—believed it to be the best color to
distinguish their yards from the rest, and both were determined
to use it everywhere: on its buildings, trucks and wagons,
signs, banners, etc. It was so successful that many other
businesses
adopted it as
their color too
thus
mitigating the hoped-for effect of distinguishing
PK from the rest.
Just before WW II there was a change of
heart at headquarters. The decision was to
repaint the yard buildings white over a period of
years while leaving the trucks orange. The
reasons for these decisions were mostly
budgetary but the overall appearance of the white
buildings was thought to be cleaner and more
attractive. The project was interrupted by the war
but was completed by the middle 1950s. These
are just some of the good practices that persisted
throughout the company‘s history. (See the two
pictures at left comparing the orange exterior
with the white,---Sorry, no color shots available.)
Just before the start of WW II, the mood
was changing. Grocery and drug chains were appearing with common identification like Kroger,
Walgreen, and Sears. These companies were being touted as the answer to every shopper‘s
prayer and definitely ―big was better‖.
The War put all such activities as signage and name changing on hold and it wasn‘t until
the 1950s that the phrase ―PK yards‖ began to be heard. The company‘s first response was
occasioned by the opening of its experiment in a retail only facility, namely PK Home Shopping
Center south of Dayton. The sign created for the store
was an example of what would become the Company‘s
―logo‖ (at that time a new term that had crept into the
field of marketing and advertising). The letters PK in
white were put inside a sort of tilted orange oval with a
black border. Seen for the first time, it made a good
impression, so it began to appear in other places like
letterheads, yard signs, and ads. (See example at right.)
Eventually it prompted the name changes of all the
retail yards to PK ------ (insert a location like
Middletown or Fostoria).
48
Following the election of Martin Kuntz as President, the logo changed to what would be
its final form, a white lower case ―pk‖ similar to Rockwell bold typeface (black shadowed to
make it appear to be embossed) on an orange
background. (See 2 examples of the logo at left.) This
was inside another black shadowed narrow white
border with rounded corners forming an almost square
rectangular design which had a three dimensional
appearance.
With the adoption of ―PK Building Centers‖ as
the company‘s identity in its ad program covering all
the yards, there appeared a ―personality‖ named ―Pete
the Pro‖. The cartooned image was of a carpenter-like
handyman who symbolized the type of expert help you could expect to receive throughout the
chain. (See example at right of its use in company programs.)
On the subject of advertising, the history of PK reflects the
evolution of this activity. Believing that presenting a good ―face‖ in
the form of well-kept yards and clean stock to potential buyers was
all that was needed, very little besides local goodwill type ads were
used. Things stayed that way through the Depression and WW II.
After the war some manufacturers co-opted newspaper ads or
partnered with the yards to produce new product shows etc. This all
changed with the opening of PK Home Shopping Center. The
Company was addressing a whole new market—the do-it-yourselfer
—and newspaper ads, direct mail, radio, and, even TV would all be
used to promote sales throughout the whole company. Eventually,
ads, direct mail fliers, radio & TV spots were all produced in house
by an ever-growing staff under Bob Laravie‘s direction. Besides use
of various media, the Company sponsored mini trade shows once or
twice each year to introduce new products and provide sales incentives to its employees.
One final comment should be made. In appreciation of the leadership and hard work of its
managers and key headquarters people, PK instituted an annual outing at The Moraine Country
Club in Dayton. It began with lunch and
was followed by a round of golf, tennis or
swimming. There were cocktails and card
games and much conversation ending with
dinner and the awarding of golf and door
prizes. This practice started in 1951 and
continued up to the time of the company‘s
sale. At left is one of the group photos
taken at the outing in 1978.
The End
Footnotes:
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For significant dates in the lives of the descendents of Peter Kuntz, Sr. see the family tree
on the Peter Kuntz website or the booklet prepared at the time of the family‘s reunion in 1993
titled ―The Family of Peter Kuntz and Mary Higi Kuntz‖.
Two albums of early photos of Peter Kuntz & Associates Lumber Yards accompanied by
photos of their managers have been scanned and are ready for inclusion on the website.
A personal note – As the compiler and transcriber of the above story—Author would not
be a correct description—I‘ve been asked why I chose to undertake the job. It is because I
believe the story has never been fully told. The biography of Peter Kuntz, Sr. contained in
Charlotte Reeve Conover‘s ―Memoirs of the Miami Valley‖ is accurate but does not adequately
describe Peter Sr.‘s business record nor his relationship with the individuals and operations he
owned, whether partly or completely. Also, some of the little known stories surrounding him, be
they fact or fiction, deserved to be told.
There‘s also the fact that the history of the company, from beginning to end, could be
told. With a lifespan of just over a century, it is not the longest but, I think, one of the more
interesting tales of a firm operating in a variety of times and circumstances. Readers who have
persevered this far may be tempted to ask ―What if ?‖ when thinking about how things worked
out. I have deliberately avoided trying to speculate as to the answer. I will say only that everyone
involved was motivated by what they perceived to be the best interests of all parties: employees,
management, and stockholders at that time. The situation evolved dramatically since then in
many ways, so I will leave it to others to make that judgment. For the record, Erb eventually sold
out to a conglomerate named Stock Supply Co. In a late 2009 phone conversation with a former
PK employee who worked at Stock Supply headquarters, I learned that all PK lumber yard
locations had been closed due to the housing market slump.
Finally, on a very personal note, I‘m one of his namesakes (four in my generation) and
my wife Marge and I happen to share the same wedding date, Sept. 9, with Grandpa and
Grandma Kuntz. For me, because he died 10 years before I was born, he‘s held a kind of mythic
status ever since I first heard about him. And the fascination with this story grew as I began
working at PK and met many of the people mentioned above. I regret that the impetus for writing
this story came too late for me to gather personal stories from most of the generation preceding
me, but I‘ve attempted to record those I was able to hear or read about. Anyone reading this and
wanting to correct an error or omission, or add an item of interest should feel free to do so
through the website.
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