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“You are the Company:” The Demands of Employment in the Emerging Corporate Culture, Los Angeles, 1900–1930

Published online by Cambridge University Press:  13 December 2011

Clark Davis
Clark Davis
Affiliation:
CLARK DAVIS is assistant professor of history at La Sierra University in Riverside, California.
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Abstract

In recent years, business historians have expressed increasing interest in the development and evolution of corporate cultures. This study carries forward this body of scholarship by exploring a fundamental point of tension in the construction of corporate cultures—the meaning and demands of salaried employment. In a period in which the workings of corporations were uncertain and rapidly evolving, leaders sought to define the meaning and duties of corporate employment in varied but always expansive terms. Corporations wanted employees to act like limited partners, or stakeholders. Whatever the specific tasks of their jobs, the ideal employee was expected to be salesperson, ambassador to the community, and political activist on die firm's behalf. This article probes the ways in which leaders of emerging corporations in Los Angeles struggled to persuade salaried employees to act with such a sense of ownership in the firm.

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Articles
Information
Business History Review , Volume 70 , Issue 3 , Autumn 1996 , pp. 328 - 362
Copyright
Copyright © The President and Fellows of Harvard College 1996

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References

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12 The rise of big business spurred protests against large Arms on numerous fronts. Anti-trust legislation, federal regulatory agencies, public ownership campaigns, and third political parties all represented public reaction against big business initiatives. Individual firms encountered this public disfavor in different ways. Some, particularly, utilities, were threatened with acquisition by state and local governments, while others, such as large banks, faced restraints on growth when popular local banks exerted political pressure. These factors, when added to the extant competitive pressures from other firms, made public support crucial. On the general topic of public opposition to big business, see Galambos, The Public Image of Big Business; Mitchell, Neil J., The Generous Corporation: A Political Analysa of Economic Power (New Haven, Conn., 1989)CrossRefGoogle Scholar; Livingston, James, Origins of the Federal Reserve System: Money, Class, and Corporate Capitalism: 1890–1913 (Ithaca, N.Y., 1986).Google Scholar

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15 I explore these issues in broader contexts in my dissertation, “Living on the Ladder: Work and Culture in the Emerging Corporate Order, Los Angeles, 1900–1930” (Ph.D. diss., University of Southern California, 1994).

16 On the history of public relations, see Tedlow, Richard S., Keeping the Corporate Image: Public Relations and Business, 1900–1950 (Greenwich, Conn., 1979)Google Scholar, and a special issue of Public Relations Review entitled “Publicity and American Culture,” 16 (Fall 1990).

17 Records for these companies are found at several archives in California. The Huntington Library in San Marino has a wide variety of records and ephemera from the Union Oil Company of California, the Pacific Electric Railway Company, the Pacific Mail Steamship Company, and numerous local banks. Records from the Pacific Mutual Life Insurance Company are held at the company's corporate archives in Newport Beach, California. Southern California Edison also operates and maintains corporate archives and a history room at its Rosemead, California headquarters. Records from the Security First National Bank are kept at Bank of America corporate headquarters in San Francisco.

18 For histories of these companies, see: Welty, Earl M. and Taylor, Frank J., The 76 Bonanza: The Fabulous Life and Times of the Union Oil Company (Menlo Park, Calif., 1966)Google Scholar; Moore, C. I. D., The Pacific Mutual Life Insurance Company of California: A History of the Company and the Development of its Organization, the Sixtieth Anniversary, 1868–1928 (Los Angeles, Calif., 1928)Google Scholar; Nunis, Doyce B. Jr, Past is Prologue; A Centennial Profile of Pacific Mutual Life Insurance Company (Los Angeles, Calif., 1969)Google Scholar; Myers, William A., Iron Men and Copper Wires; A Centennial History of the Southern California Edison Company (Glendale, Calif., 1983)Google Scholar; Douglas, J. R., The Bank and the Community; A History of the Security Trust and Savings Bank (Los Angeles, Calif., 1929)Google Scholar; Doti, Lynne Pierson and Schweikart, Larry, Banking in the American West: From the Gold Rush to Deregulation (Norman, Okla., 1991)Google Scholar; Friedricks, William B., Henry E. Huntington and the Creation of Southern California (Columbus, Ohio, 1992).Google Scholar

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21 Zunz, Making America Corporate; Aron, Cindy Sondik, Ladies and Gentleman of the Civil Service: Middle-Class Workers in Victorian America (New York, 1987)Google Scholar; Blumin, The Emergence of the Middle Class.

22 On the opportunities for women in emerging corporate bureaucracies, see Kwolek-Follands, Engendering Business; DeVault, Ileen A., Sons and Daughters of Labor: Class and Clerical Work in Turn-of-the Century Pittsburgh (Ithaca, N.Y., 1990)Google Scholar; Fine, Lisa, The Souls of the Skyscraper: Female Clerical Workers in Chicago, 1870–1930 (Philadelphia, Penn., 1990)Google Scholar; Davies, Marjory, Woman's Place is at the Typewriter: Office Work and Office Workers, 1870–1930 (Philadelphia, Penn., 1982)Google Scholar; Zunz, Making America Corporate, 147–148; Strom, Sharon Hartman, Beyond the Typewriter: Gender, Class, and the Origins of Modern Office Work, 1900–1930 (Urbana, Ill., 1992).Google Scholar

23 Two classic studies of white-collar workers are Mills, C. Wright, White Collar: The American Middle Classes (New York, 1956)Google Scholar; and Kocka, Jurgen, White Collar Workers in America, 1890–1940: A Social Political History in International Perspective (London, 1980).Google Scholar

24 Bishop, Ernest G., “Loyalty,” Pacific Mutual News 24 (Sept. 1925): 314.Google Scholar Pacific Mutual Life Insurance Company corporate communications records are housed in the company's Newport Beach, California, headquarters, Cynthia Graham, director, Corporate Archives.

25 “Employees Who Climb,” Pacific Electric Magazine 4 (10 Sept. 1919): 5.

26 “How Big is Your Job,” Security First News Bulletin 1 (1 July 1929): 2.

27 Lupke, Paul, “Expanded Loyalty,” Edison Current Topics (July 1912): 1.Google Scholar Southern California Edison corporate communication records were housed in the company's Corporate Communications Department at its headquarters in Rosemead, California.

28 T. A. Graham, “Tardy Reports” memo of 1 April 1922. Pacific Mail Steamship Company (PMSS) box 6A, file 439.

29 See for instance [general agent] letter to Mr. T. A. Graham, c. 4/22, in which the sociability of a new employee was discussed as central to the company's expectations of his performance. PMSS collection, box 34A, Los Angeles file.

30 On the rise of modern sales and advertising, see Marchand, Roland, Advertising the American Dream: Making Way for Modernity, 1920–1940 (Los Angeles, Calif., 1985)Google Scholar; Ewen, Stuart, Captains of Consciousness: Advertising and the Social Roots of the Consumer Culture (New York, 1976)Google Scholar; Benson, Susan Porter, Counter Cultures: Saleswomen, Managers, and Customers in American Department Stores, 1890–1940 (Chicago, Ill., 1988)Google Scholar; Zunz, Making America Corporate, 176. See also: Spears, Timothy, 100 Years on the Road: The Traveling Salesman in American Culture (New Haven, Conn., 1995).Google Scholar

31 O'Hair, Robert, “Commercial Development Department,” The Pacifie Southeast 5 (July 1927): 4.Google Scholar

32 Ibid.

33 “Statement of the Southern California Edison Company of its claims for the Charles A. Coffin Medal Effort, the Year 1922,” unpublished manuscript, Southern California Edison Archives (hereafter SCE Archives).

34 “Electrical Christmas Campaign,” Edison Energy 2 (Dec. 1928): 5.

35 “Better Home Lighting; A Textbook for Power Company Employees and their Families,” pamphlet issued by Southern California Edison in 1930, SCE Archives.

36 In a 1929 report, the company proclaimed: “Two of the SCE districts now have 100 percent of married employees using electric ranges.” “Statement by SCE Company in Respect of its Accomplishment during the year 1928 for consideration in the Award of the Charles A. Coffin Medal for that year,” unpublished manuscript, 1929, SCE Archives.

37 Union Oil, for instance, printed numerous “travelogue” articles outlining scenic automobile trips and vacations. See: “Visiting ten county seats in twenty-four hours,” Union Oil Bulletin 7 (June 1927): 12–13.

38 “Our interest in aviation,” Union Oil Bulletin 7 (Aug. 1927): 1.

39 See for instance, “Western asphalt association,” Union Oil Bulletin 6 (Feb. 1927): 18; “Riding on Rubber,” Union Oil Bulletin 5 (June 1925): 4; Woodhams, George H., “Oil Sprays for Insect Pest Control,” Union Oil Bulletin 8 (April 1928): 11.Google Scholar

40 Francisco, Don, “Are you enlisted in your firm's army of recommenders?” Union Oil Bulletin 3 (March 1923): 1.Google Scholar

41 “Grows like a snowball,” Union Oil Bulletin 3 (June 1923): 25.

42 “Are you Pacific Electric-Minded?” Pacific Electric Magazine 14 (10 Dec. 1929): 3.

43 “Wanted!—5,000 business getters,” Pacific Electric Magazine 9 (10 Jan. 1925): 7; “Are you helping to increase PE revenues?” Pacific Electric Magazine 3 (10 Dec. 1918): 4–5.

44 “Cooperation of every factor the backbone of company success,” Pacific Electric Magazine 3 (10 Jan. 1919): 5; “Selling Transportation,” Pacific Electric Magazine 3 (10 Dec. 1918): 5; “Travel tip campaign begins,” Pacific Electric Magazine 12 (10 June 1927): 10.

45 “Freight Solicitation by Employees,” Pacific Electric Magazine 1 (10 June 1916): 6.

46 Billhardt, F. E., “Over Thousand Passengers from 4 Employees' Tips,” Pacific Electric Magazine 11 (10 Aug. 1926): 15Google Scholar; For another example of articles praising employee sales efforts, see: “Many Employees active in Freight Solicitation,” Pacific Electric Magazine 9 (10 March 1925): 10.

47 Pacific Mutual had systematic training programs designed to help its agents become more effective salesmen. Beginning in 1914, for instance, the firm began a correspondence school in sales for all agents. See, “Pacific Mutual School for Salesman: An Important Announcement,” Pacific Mutual News 13 (May 1914): 108.

48 Forrester, John F., “Life Insurance as a Business; Its Scope and Possibilities,” Pacific Mutual News 10 (Feb. 1911): 5–6Google Scholar; “Insure your friends,” Pacific Mutual News 22 (Oct. 1923): 320.

49 “Leisure Hours,” Pacific Mutual News 9 (June 1910): 5. Another company pronouncement read: “Every interest you have in life may be represented by a circle. These circles of course vary in size with each individual, but your largest circle should be the insurance business.” “An idea on Concentration; Which of these represents your method?” Pacific Mutual News 11 (March 1912): 43.

50 Mansel Blackford has traced the extent to which California firms proactively maneuvered to mold government policies to their benefit in: The Politics of Business in California, 1890–1920 (Columbus, Ohio, 1977). William Issel has detailed how California businessmen helped shape public policy in favor of their business interests through various community organizations and citizens leagues in, “Citizens Outside the Government: Business and Urban Policy in San Francisco and Los Angeles, 1879–1932,” Pacific Historical Review 57 (1987): 117–145. Texts arguing that business maneuvered to secure government support include Kolko's, GabrielThe Triumph of Conservatism: A Reinterpretation of American History, 1900–1916 (New York, 1963)Google Scholar, and Sklar, Martin, The Corporate Reconstruction of American Capitalism: The Market, the Law, and Politics (New York, 1988).Google Scholar Arguing against this thesis, at least with respect to railroads, is Martin, Albro, Enterprise Denied: Origins of the Decline of American Railroads, 1897–1917 (New York, 1971).Google Scholar

51 Keller, Morton, Regulating a New Economy: Public Policy and Economic Change in America, 1900–1933 (Cambridge, 1990).Google Scholar

52 On local regulation of utilities, see Keller, 60–65.

53 Ballard, R. H., “Concentration brings efficiency and Low Rates,” Edison Current Topics 4 (Oct. 1915): 190.Google Scholar

54 Myers, William A., “Electricity in Orange County, California, 1890–1940: A Case Study of the Socioeconomic Impact of Technology,” (master's thesis, California State University, Fullerton, 1991)Google Scholar; See Blackford, Politics of Business in California, chapter 5.

55 “Employee's Manual,” handbook issued by Southern California Edison Company, c. early 1920s, SCE Archives.

56 Walker, George, “Capital,” Edison Current Topics 5 (April 1916): 61Google Scholar; See also “Public Interests and Private Interests Synonymous,” Edison Current Topics 5 (June 1916): 108.

57 Childs, A. W., “Great Banquet of Employees,” Edison Current Topics 2 (April 1913): 12.Google Scholar

58 “Statement of the Southern California Edison Company of its Claims for the Charles A. Coffin Medal Effort, the Year 1922,” unpublished manuscript, 1922, SCE Archives.

59 See Shoup, Paul, “Our Financial Condition,” Pacific Electric Magazine 1 (10 Aug. 1916)Google Scholar; See also: “Taxes and the Jitney,” Pacific Electric Magazine 1 (10 Oct. 1916): 4; “Taxes one of greatest burdens of nation and state,” Pacific Electric Magazine 9 (Nov. 1924): 12.

60 “Increased Taxation versus economy,” Pacific Electric Magazine 5 (10 Feb. 1921): 1.

61 “To All Employees of this Company,” Pacific Electric Magazine 7 (10 April 1923): 1; “Are you a good citizen?” Pacific Electric Magazine 9 (10 Oct. 1924): 2; “Vice-President Pontius points out election importance and urges all to vote,” Pacific Electric Magazine 10 (10 April 1926): 4; “Employees rally to own company's cause in opposing territory invasion,” Pacific Electric Magazine 14 (10 June 1929): 11.

62 On banking regulation, see Keller, 201–207.

63 Doti, Lynne Pierson and Schweikart, Larry, Banking in the American West: From the Gold Rush to Deregulation (Norman, Okla., 1991).Google Scholar

64 See for instance: “Senate passes bill: Elliott on return from Sacramento Reports Progress on California Bank Act Amendments,” Security First News Bulletin 1 (15 April 1929): 4; “Elliott Discusses new tax decision of Supreme Court in Convention Report: Head Office vice president in opening address at CBA Conclave declares verdict of high tribunal regrettable set-back,” Security First News Bulletin 1 (15 June 1929): 1. Another example of the relationship between larger political concerns and bank operations is seen in the frequent correspondence about national and international matters between bank officers. Farmers and Merchants National Bank's president and vice president corresponded regularly during the 1910s on issues ranging from railroad regulation to the effect of the War on trade, to railroad policies, noting how these issues might affect bank operations. See, for example, series of letters regarding war issues: I. W. Hellman letter to Jackson A. Graves, 17 March 1915, 10 July 1915, 17 Sept. 1915. Jackson A. Graves Collection, Huntington Library.

65 Blackford, The Politics of Business in California, 40–59.

66 See “Overproduction,” Union Oil Bulletin 7 (May 1927): 1; “Conservation of Gas,” Union Oil Bulletin 7 (July 1927): 1; Clark, E. W., “Good Business,” Union Oil Bulletin 8 (Nov. 1928): 1.Google Scholar

67 Powell, Jerry H., “Taxing the motorist,” Union Oil Bulletin 4 (Feb. 1925): 1–3.Google Scholar

68 Smith, Francis P., “Getting the most for the highway dollar,” Union Oil Bulletin 5 (Nov. 1925): 13.Google Scholar

69 C. C. Mallory correspondence to Mr. T. A. Graham, 12 Aug. 1924, Pacific Mail Steamship Collection, Box #4, Huntington Library.

70 “Public Appreciation Expressed; Service and Courtesy Bring their Reward,” Pacific Electric Magazine 13 (10 Aug. 1928): 13.

71 See: “Over the Top,” Pacific Electric Magazine 2 (10 May 1918): 1; “Our Red Cross Auxiliary,” Pacific Electric Magazine 3 (10 July 1918): 5; “Riverside Trainmen go over top,” Pacific Electric Magazine 3 (10 July 1918): 5; “Still a few openings in company B,” Pacific Electric Magazine 5 (10 Aug. 1920); “Employees exceed quota in charity drive,” Pacific Electric Magazine 10 (10 Dec. 1925): 11; “Community Chest Drive Begins,” Pacific Electric Magazine 11 (10 Nov. 1926): 4.

72 Neelands, W. R., “Relations to consumers discussed by Neelands,” Edison Current Topics 5 (May 1916): 92–93.Google Scholar

73 Haver, S. C., “Uses of the little red book,” Edison Current Topics (June 1912): 15–16.Google Scholar

74 These pamphlets are housed in SCE Archives.

75 See for instance, “Edison Men Make Big Red Cross Drive,” Edison Current Topics 6 (June 1917): 111–113.

76 Kennedy, S. M., Winning the Public (New York, 1921), 136.Google Scholar

77 “Statement of the Southern California Edison Company of its claims for the Charles A. Coffin Medal Effort for the Year 1922,” unpublished manuscript, 1923, SCE Archives; Minutes, Management Committee meeting, SCE, 12 April 1923, SCE Archives. On service clubs, see Charles, Jeffrey A., Service Clubs in American Society: Rotary, Kiwanis, and Lions (Urbana, Ill., 1993).Google Scholar

78 Kennedy, Winning the Public, 51.

79 “Your responsibility” Pacific Mutual News 23 (April 1924): 168.

80 For an excellent discussion of the industry's difficulties and public disfavor with life insurance agents, see Zelizer, Viviana A. Rotman, Morals and Markets: The Development of Life Insurance in the United States (New Brunswick, 1983)Google Scholar, chaps. 6 and 7.

81 Baker, Danford, “The need of new men,” Pacific Mutual News 23 (May 1924): 206.Google Scholar

82 Jackson A. Graves letter to I. W. Hellman, 20 July 1918, Jackson A. Graves collection, Huntington Library.

83 Wallace, William H., “Personality as an assett in banking,” Proceedings of the 18th Annual Convention of the California Bankers Association, 1912, 184–197.Google Scholar On the matter of sensitivity toward branch banking, see: Goss, Barney, “Business and Financial Review,” Saturday Night (22 Sept. 1922), 21Google Scholar; On California banking, see: Doti and Schweikart, Banking in the American West. See also Klaebner, Benjamin J., American Commercial Banking: A History (Boston, Mass., 1990).Google Scholar

84 The company used this system at least through 1910. Jess Stoddard, untitled speech, Proceedings of the Sixteenth Convention of the California Bankers Association, 1910, 71–74.

85 “Personality is an Asset in Trust Relations,” News of the Los Angeles First National 5 (12 Feb. 1928): 4.

86 “The Boss,” Security First News Bulletin 1 (1 Sept. 1929): 2.

87 In the first two weeks of April 1929, bank employees spoke to ten different groups including the Arnama Club, the Vermont Avenue Presbyterian Church, the Bellflower Real Estate Board, the Los Angeles Chapter of the League of American Pen women, and classes at the Venice High School and Sentous Junior High School. “Speakers Division promotes good will: MacLennan in Charge of Bureau providing Security-First National Men and Women for organization and club programs,” Security First News Bulletin 1 (1 Aug. 1929): 3; “Security First National Speakers,” Security First News Bulletin 1 (15 April 1929): 3.

88 In the spring of 1929, for instance, bank president Joseph Sartori began contributing a weekly column about matters of local business and economic needs to the Los Angeles Examiner. “Our Greatest Need: President starts unique series of weekly articles in Examiner on Civic Necessities,” Security First News Bulletin 1 (1 May 1929): 4. Like most large corporations, banks also believed participation in charities would boost their image. L.A.’s Security First even organized its own charity fund-The Los Angeles Community Foundation. Evidencing the bank's public relations ambitions for the Foundation, the booklet given to employees read: “Perhaps nothing can build more general good will for our institution.” “Read the Foundation Booklet,” Securitu First News Bulletin 1 (15 June 1929): 2.

89 See, for instance, “Courtesy in Business,” Union Oil Bulletin 3 (Jan. 1924): 17.

90 1926 issues of Union Oil Bulletin, for instance, contain numerous articles devoted to the company's “Outdoor campaign for safety and courtesy on the highways.” As an example, see: Clair, L.P. St., “Be Careful,” Union Oil Bulletins (Feb. 1926): 3–6.Google Scholar

91 “Our New Year's Resolution,” Pacific Electric Magazine 6 (10 Jan. 1922).