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George C. Wilson
Sr.
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February 16, 1985 marked the
end of an era in Tyrone, when after more than ninety years
of operations, the Wilson Chemical Company closed its
doors. Best known as the producer of “White Cloverine
brand salve,” the Wilson Chemical Company was a prime
example of how a specialties maker could defy most of the
accepted canons of business and still succeed. While its
methods of doing business, its managerial setup, its belief
in the integrity of the individual salesman, and its
employment practices seem foreign in today’s business
environment, the company’s founder and his successors
built an empire on such philosophies.
The beginning of the company dates
back to the late nineteenth century, when Dr. James
Thompson Wilson, a prominent Tyrone physician, developed
the formula for White Cloverine brand salve. Originally,
Dr. Wilson made the product using his kitchen stove to heat
and mix the necessary ingredients. In 1895, his son, George
C. Wilson Sr., founded the Wilson Chemical Company and
began manufacturing the salve.
Having limited funds to market the
salve on a large-scale basis, George developed a unique
method of merchandising the product and became a true
innovator in his field. He decided to place small
advertisements in various small-town newspapers and
magazines to distribute his product. The idea caught on
almost immediately. In fact, the company became the first
premium house to use comic books to market its products. An
agent would receive twelve boxes of salve with twelve
pictures. The agent would sell the salve for twenty-five
cents to the customer, who also would receive a four-color
picture (9×11 inches) with the product. Usually, such
pictures could not be obtained elsewhere because they were
privately owned by the company, or it had exclusive
publication rights to them. The practice of providing
pictures with the salve was continued until the late 1960s
when the cost of providing the pictures free to customers
became too high.
In exchange tor selling the
products, agents were given the option of receiving a cash
commission or returning all monies collected In exchange
for premiums offered by the company. An overwhelming
majority of the agents chose the commissions. The more
salve sold, the higher the commission or premium earned.
Additional premiums were granted for remitting prompt
payment for the salve. A key factor in the firm’s
ability to market its product through the use of premiums
was the quality of premiums offered by the company. While
competitors using such a strategy would typically send
inferior premiums to their agents, the Wilson Chemical
Company sent top-quality premiums such as watches, air
rifles, cameras, or bicycles. George C. Wilson III, company
president from 1952 to 1985 often told the story of the
enterprising junior merchandiser who earned not one, but
six Shetland ponies! The more valuable premiums were
kept in a locked shed within the plant. This commitment to
its representatives enabled the company to develop a
network of more than 300,000 agents, sixty percent of whom
were children, mostly between the ages of eight and
fourteen. The practice of providing premiums to its agents
would remain with the company throughout its
history.
Using such strategies, the company
grew quickly and attracted competition. When a competitor
copied the formula for the salve, George Wilson sued on
grounds of patent infringement. Wilson won the suit but
sold a variation of the formula to the competitor for
$4,500 and used the funds to build the company’s
first plant — a two-story, wooden structure on the
side of Brush Mountain on a site that was to become known
as Cloverine Terrace.
A fire on March 4, 1916 completely
destroyed the main building. Undaunted, the company
continued on. By 1919, the company erected its new
facility, a mammoth structure that one writer described in
this manner: “This beautiful castle-like, native
red-stone building, with walls twenty inches thick, stands
out like a fortress as strong as the Rock of Gibraltar at
the foot of a 400-acre mountain tract.” The plant
stood adjacent to the Tyrone railroad station, where
thousands of train passengers saw the company’s
trademark — a giant Cloverine salve can proclaiming
the home of the product. Wilson Chemical used this plant
until 1970, when it was purchased by the Pennsylvania
Department of Transportation and demolished to make way for
the Tyrone bypass of U.S. Route
220.
The salve earned the Good
Housekeeping Seal of Approval, a highly regarded seal
earned after stringent testing at the magazine’s
laboratory. Due to the high success of Cloverine brand
salve, the company gradually expanded its product lines,
diversified operations, and began to manufacture a number
of additional products.
Eventually, the Wilson Chemical
Company was manufacturing a wide array of products. Some of
the more notable products included Cloverine dental cream,
Cloverine soap, Cloverine mentho-balm, Cloverine talcum
powder, Alo-Pine liniment, and Cloverine cold cream. While
the company would eventually expand its line to include
more than twenty products, Cloverine brand salve always
would remain the staple of the firm, accounting for
approximately sixty-five percent of total
sales.
In 1926, the company started the
Junior Food Products Company, manufacturers of Jack and
Jill flavored-gelatin dessert. In 1928, the Wilson Products
Company began producing Wilson’s cough drops. The
family also owned a line of movie theaters throughout the
Blair-Cambria region.
The growth of the industry was to
aid in the development of Tyrone itself. The mail-order
business had increased so dramatically that by 1916, the
Wilson Chemical Company was responsible for more than
$100,000 of the $118,000 total business done by the post
office in Tyrone — an amount larger than the total
receipts at the Altoona post office during the same period.
During the rush season, the operation would have four or
five postal clerks working in the plant. Mail was stamped
or weighed and sent directly from the factory to the train.
The typical day’s output of mail from the plant at
that time ranged between seventy-five and a hundred sacks
of mail. Such continuous large volumes of mail enabled
Tyrone to receive designation as a first-class post office,
have a new post office built, and obtain home mail-delivery
for its citizens free of charge.
During the peak selling season
(September through April), the plant employed approximately
125 people. About one-fourth of the employees had worked
for the company at least twenty-five years. Several
spin-off jobs also were created to fill the plant’s
material-handling and distribution needs. Typically, the
company used more than twenty boxcar loads of tin boxes for
Cloverine salve and another thirty boxcar loads of
materials, supplies, and premiums in a single
year.
Upon the untimely death of George
Wilson Jr. in 1951, George C. Wilson III became president
of the company at age twenty. George proved up to the task
of successfulIy running a large organization at such a
young age. At age twenty-six, he was elected the youngest
president of the Young Presidents’ Organization, an
association consisting of companies with more than 100
employees and revenues of more than $1 million annually,
and under his leadership, the firm was active in various
community activities. He operated as president of
operations until the company was sold in
1985.
The salve, still made using its
original formula, is produced in Dobbs Ferry, New York. It
is distributed by Medtech Laboratories Inc. in Cody,
Wyoming, and is sold primarily through mail-order catalogs
and drug outlets.
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