The William Volker and Company by David Boutros As is the case with many businesses in the United States, the William Volker and Company owed much to the character and interests of its founder. William Volker was an astute and careful businessman who in the course of his long career established the base for an organization that became the largest wholesale distributor of interior furnishings in the nation.1 Known principally for his extensive philanthropy, Volker’s successes in business are often overlooked. However, Volker’s business life is, in fact, an important factor in understanding the actions and values of the man. The significance of the William Volker and Company is not only the means by which Volker gained the wealth he so freely gave away, but is also an expression of his most basic attitudes toward life and his fellow men. William Volker was born on April 1, 1859,2 some fifteen miles from the city of Hanover, Germany. His father, Frederich, was a miller and farmer, and his mother, Dorothea, a strong willed woman who was the axis around which her large family revolved. The importance of Volker’s parents in the shaping of his character cannot be underestimated. He, his older brother, and four younger sisters were taught the virtues of thrift, hard work, and humility. They were expected to assume an ever increasing responsibility for the chores of the farm, and in this manner served an “apprenticeship to work.” This apprenticeship was highly regarded by Volker who years later lamented the “modern” youth’s lack of such an opportunity to learn to appreciate work.3 Although Volker did receive formal schooling in Germany, perhaps his most important education came from his mother who regularly read from the Bible to the children. The Volker Tradition4 abounds with examples of his sense of fair‐
1. Kansas City Times, 1 November 1980.
2. Much of the biographical information concerning Volker comes from a combination of news articles published during his life and at his death. Also, foremost among the available sources are the book, Mr. Anonymous: The Story of William Volker by Herbert C. Cornuelle (Caldwell, Idaho: Caxton Printers, 1951), and an unpublished mimeographed typescript manuscript about Volker, dated September 15, 1948, written by his nephew, Harold W. Luhnow (“Mr. Anonymous” Luhnow Typescript, Folder 67, William Volker and Company Records (KC0059), Western Historical Manuscript Collection‐Kansas City (WHMC‐KC)).
3. Kansas City Star, 24 December 1939.
4. Volker, in many respects, has assumed the proportions of a legend in Kansas City. Various stories are repeatedly used throughout the sources, often with inconsistencies in minor facts, and with no citation to © David Boutros, 2007 David Boutros The William Volker and Company Page 2 play, commitment to honesty, and belief that his duty was “to be his brother’s keeper.” The influence of these character traits and beliefs upon Volker’s business dealings, particularly with his employees, are obvious. At the age of twelve, Volker came with his family to the United States arriving in Chicago, Illinois, just a few days after the Great Fire in 1871. He attended the Chicago public schools; before the age of fourteen he took a job in a dry goods store. In an interview in the Kansas City Star, Volker described his experiences: The clerks in the store were the usual kind—good natured, easy going fellows who weren’t looking for hard jobs. It happened that the location of the store brought to it a good many old women, foreigners with little money and very slow to make purchases. The clerks avoided them and made no effort to sell them goods. They considered them more trouble than they were worth. One day a clerk asked me to wait on one of these old women. “She won’t buy anything, anyhow,” he whispered. “Just show her a few things.” I waited on the old woman. Her hands were knotted and stiff with rheumatism. She had a little money tied in her handkerchief. With no thought of the good of the store, merely to help the old woman as I would have helped my own grandmother, I tried to understand her needs. She bought some coarse print goods, I remember. After that I was regularly assigned to the unpopular duty of waiting on those old women—not by the proprietor but by the clerks. I did my best to serve them well and the result was an ever increasing stream of old women who brought their foreign speech and small hoardings to our store. My pay was raised to $5.00 weekly and I was happy.5 Later, in his own business, Volker’s primary concern was to serve the customer as well as possible. “The customer is always right,” was a central theme of the Volker firm.6 Volker soon determined he required more formal education and enrolled in Professor J. Dyhrenfurt’s Business College to learn the necessary skills of the 19th Century businessman—the keeping of accounts and business correspondence. After five months, Dyhrenfurt asked him to become a junior teacher with the the origin of the information. The intent of these stories was clearly not to convey history, but instead the traditional image of William Volker.
5. Kansas City Star, 27 June 1915.
6. “Mr. Anonymous” Luhnow Typescript, 9. This source is particularly useful with details of the operation of the company, although it must be used carefully as a thesis of Volker’s thoughts and intents, particularly concerning his charitable activities.
© David Boutros, 2004 David Boutros The William Volker and Company Page 3 duty of tutoring the slower pupils (as well as serving as a part‐time janitor). This important experience may have taught him more than the regular course of studies in that he needed to understand and explain things clearly, and direct the work of others. When he was seventeen years old, Volker reached the turning point in his career.7 His ambition was to earn $10,000. Professor Dyhrenfurt advised him to find a position in a bank, but none being available, relayed an offer from Charles Brachvogel: “I want to have a smart man who can keep books and write all my letters. He must be willing to work....” Brachvogel, a Russian born German, owned the largest picture frame and molding manufacturing and wholesale house in Chicago, employing seventy‐five men. He could read but not write. Volker understood the advantage of being in charge of correspondence, and that holding such an important position would afford an opportunity to learn the operation of the firm and interact with Brachvogel on matters of policy. Volker Tradition relates a story of Volker advising Brachvogel to buy walnut from St. Joseph, Missouri, and use it to improve a currently produced line. Brachvogel had intended to turn down the walnut, but recognized the soundness of Volker’s suggestion and took the advice. As time passed, Volker became indispensable to Brachvogel. When Brachvogel was killed in an accident, Volker, then only twenty years old, was asked to run the company. Within a few years Volker decided to go into business on his own. He was then twenty‐three years old, and fearing his age would hinder business, took two partners. Not wanting to compete with the established Brachvogel firm, Volker looked west for new markets. Again, Volker Tradition has him choosing Kansas City over St. Joseph because of a lack of a manufacturing and wholesale house for frames and moldings in the former city. Clearly Kansas City had advantages in being close to the supply of woods needed for his enterprise, as well as being a developing trade center with a broad hinterland to the West and Southwest. With capital of $3,000 borrowed from his father, $1,500 of his own savings, and $2,500 contributed by one of his partners, Volker and his associates, August Hansmann and Albert Soukup, leased 18,000 square feet on the second and third floors of 602‐604 Delaware, in the business district of Kansas City, Missouri. In July, 1882, they opened their doors as Hansmann, Volker and Company,8 manufacturing picture moldings, picture frames, mirrors, cabinet hardware, and furniture novelties. They sold both wholesale and retail. 7. Kansas City Star, 28 April 1929.
8. The firm was listed under this name in the Kansas City City Directories, 1883 and 1884. This fact is not mentioned at all in the Volker Tradition.
© David Boutros, 2004 David Boutros The William Volker and Company Page 4 Unfortunately, the first months did not go well. Volker was responsible for the accounts and sales, and Hansmann directed the manufacturing. Apparently Hansmann did not accurately estimate the costs of the operation and each item made and sold lost the company money. By discontinuing production and concentrating on the wholesale business, the firm ended the year in the red, but was able to continue operating. In 1885, Volker bought out Hansmann and changed the name of the firm to William Volker and Company. Soukup continued with the firm, primarily as a craftsman, listed as a partner until 1892.9 Volker in effect solely owned and controlled the business after 1885 until 1917 when he established the William Volker and Company Trust Estate. He had brought his family to Kansas City, and his sister Carrie was working as his bookkeeper and credit manager. The company prospered under Volker’s control. Window shades were added as a major line in 1887; floor oil cloth and linoleum in 1891; wool rugs and carpets in 1904; and draperies in 1911. The firm’s gradual expansion of furniture novelties and specialties included all types of furniture and wooden ware, except heavy case items such as living room, dinning room and bedroom sets. Volker wished not to compete with the established heavy case goods manufacturers and wholesalers in Kansas City, and in turn got little competition from them for the goods he carried. His major items were baby furniture, baby buggies, cedar chests, lamps, occasional tables, summer and porch furniture, kitchen stools, breakfast sets, lighting fixtures, vacuum cleaners, and household gift items.10 Around the turn of the century, manufacturers supplying window shade cloth and rollers restricted supply in order to sell more of their products directly to retailers. In 1902, Volker purchased an interest in an active shade cloth factory in Chicago and sent W.H. Regnery from the Kansas City shade mounting room (a department of the company) to learn the business. Several years later, Volker bought out the other owners and placed a block of stock in Regnery’s name. Regnery became the manager of the operation. This manufacturing enterprise provided Volker a needed source of goods, and eventually included a shade roller factory in Ogdenburg, New York, and a cotton mill in Goldville, South Carolina, and expanded to produce imitation leathers, bookbindings, rubber hollands, and other coated textiles.11 One of the company’s employees contracted tuberculosis in 1900. Volker wanted to keep the employee and so sent him to Denver, Colorado, to open a sales office. When the Colorado customers demanded more prompt delivery 9. Kansas City City Directories, 1885 through 1892.
10. “Mr. Anonymous” Luhnow Typescript, 31.
11. “Mr. Anonymous” Luhnow Typescript, 31‐32.
© David Boutros, 2004 David Boutros The William Volker and Company Page 5 than could be done from Kansas City, the Denver branch was established. Volker, pressured by local competition and finding opportunities in the West, opened other branches: Houston, Texas, in 1906; San Francisco, California, in 1906; Memphis, Tennessee, in 1908; Seattle, Washington, in 1919; Los Angeles, California, in 1921; Dallas, Texas, in 1921; the California Shade Manufacturing Unit, Los Angeles, in 1924; Portland, Oregon, in 1925; Salt Lake City, Utah, in 1927; Oklahoma City, Oklahoma, in 1927; Wichita, Kansas, in 1928; and Omaha, Nebraska, in 1930. In addition, stocks of merchandise were held in public warehouses in thirty other locations.12 The Kansas City branch also expanded. In 1891, the company moved to larger quarters at 616‐18 Delaware, but soon had to extend to 614, and then to 612 Delaware. Finally in 1914, Volker built a new building on Main between Second and Third Streets. This six story structure provided 50 percent more space than the previous location.13 Early records for the company provide only scant information about the financial strength and workings of the firm. It is obvious that Volker kept meticulous records and used his accounts in planning for the operation; however, few of these documents survive, particularly for the years prior to 1900. Those which do exist record a constant growth in sales. As an example, for the years 1901 through 1907 there was an increase in the dollar value in the sales of 188 percent.14 Assuming an average profit margin of nineteen percent,15 the William Volker and Company would have made $1,800,392 during these seven years. William Volker reportedly became a millionaire in 1906. He explained, “Providence has been good to me.”16 The Company, except the first year, always made a profit—until 1930‐1931. At that point Volker offered his employees a choice of discharging one‐third of the workforce and a slight reduction of salary, or all employees staying, a ten percent reduction in salaries, a reduction of hours from 44 to 30 a week, and a maximum salary to executives of $250 per month. The minimum weekly wage was $12. The employees chose the latter option. The salaries were restored in 1934 and the company back into the black in 1935. Volker’s management philosophy was straight forward and simple: he expected his managers to work as hard as he, and full services rendered from his 12. “Mr. Anonymous” Luhnow Typescript, 32.
13. Kansas City Star, 25 October 1914.
14. Gross sales records, 1887, 1890, 1892, 1893, 1901‐1908 (Folder 9), William Volker and Company Records (KC0059), WHMC‐KC. Figures computed by this writer from the data in this folder.
15. Sales records for Kansas City and branches, 1906‐1909 with comparisons by months (Folder 10), William Volker and Company Records (KC0059), WHMC‐KC. Data for the years 1906‐1909 shows a gross profit to revenues ratio averaging close to nineteen percent per year.
16. Cornuelle, Mr. Anonymous: The Story of William Volker, 68.
© David Boutros, 2004 David Boutros The William Volker and Company Page 6 employees. His method was to give his managers full rein to test their abilities. He rarely criticized but did not give additional responsibilities to someone with whose work he was not satisfied. Rather than giving directions, he would ask questions to assist in solving a problem. His intent was always to build self reliance in his staff. Volker was a careful and shrewd judge of character and was not often disappointed by his choice of employees.17 Volker worked very hard at his business. He was always at his desk at 6:00 a.m. and stayed until after 6:00 p.m. each evening. He devoted himself methodically to one problem at a time, thinking through a situation before taking action. He spent considerable time on the road visiting each of his many branch offices at least once each year. Additionally, it has been estimated that Volker devoted at least twenty‐percent of his time to civic and philanthropic activities.18 Again, the records of the company give few clues concerning the early organizational structure of the firm. Apparently it was divided into departments, each directed by its own foreman or manager. The early accounts (1901‐ca. 1915) record sales by product group: art, sundries, floor coverings, and shades.19 These groups are later (ca. 1915‐ca. 1940) broken out farther to include such categories as rugs, carpets, linoleum, draperies, specialty shades, and factory shades.20 Records were maintained for each salesman showing the quantities and types of goods sold, his mileage, and, of course, his ranking in gross sales in comparison with other salesmen in his unit and the company as a whole.21 Each branch operated separately,22 and, in fact, this administrative structure was codified at the time of Volker’s retirement in 1937, when twelve separate William Volker and Company corporations were set up. As mentioned earlier, Volker expected each of his employees to contribute his best to the company. Being a practical man, he provided incentives for his workers to help ensure his expectations would be realized. Volker always took care to guarantee his employees were paid the going wage. He encouraged such activities as company picnics and sports activities, and in general sought a sense of commitment and loyalty among his workers. His success in this endeavor can 17. “Mr. Anonymous” Luhnow Typescript, 9.
18. This is Luhnow’s figure. J.C. Nichols stated in the Kansas City Star, 23 January 1920, an estimate to be “1/3 to 1/2 his time devoted to public service.”
19. Gross sales records, 1887, 1890, 1892, 1893, 1901‐1908 (Folder 9), William Volker and Company Records (KC0059), WHMC‐KC.
20. Employee Records: Sales and mileage of salesmen, car information and pictures (Folder 3), William Volker and Company Records (KC0059), WHMC‐KC.
21. Folder 3; Folders 11‐19, William Volker and Company Records (KC0059), WHMC‐KC.
22. Luhnow indicated in his manuscript (p. 42) there was an administrative superstructure located at the home office in Kansas City, at least for the sales force. This may have logically applied to the purchasing department also, however, no document is available to verify this.
© David Boutros, 2004 David Boutros The William Volker and Company Page 7 perhaps be measured by the long list of employees who were with the firm, 20, 30, 40, and 50 years.23 Volker had at various times experimented with profit sharing, such as when he assigned a block of stock to W.H. Regnery, his manager of the window shade cloth factory in Chicago. In July of 1917, Volker formalized his profit sharing with the establishment of the William Volker and Company Trust Estate. Though not a corporation, the Trust Estate did issue “Certificates of Interest” which were available for investment to the managers and key employees of the company. The assets of the Trust Estate when it was set up were $2.4 million, and the Trustees were Volker, Albert Hochland, and W.H. Regnery.24 Harold Luhnow, Volker’s nephew and successor as president of the company, asserted: Mr. Volker felt that the real answer to the controversy between capital and labor was an organization where the rank and file of employees not only received going wages for their labor but, in addition, owned their own tools and received in dividends whatever these tools earned for them.25 Volker took a step toward such a goal at the time of his retirement by converting his company into corporations and making the stock available for purchase by all employees. Additionally, he suggested an installment purchasing program, which in effect provided the employee all the advantages of the dividends before the stocks had been fully paid for. Believing the benefits of the business should go to those active in the organization, part of the stockholders agreement drawn up by Volker called for the relinquishment of stock when an employee died, retired, left the firm, or was discharged.26 At Volker’s retirement, the William Volker Charities Fund, the legal entity devised in 1932 to hold and distribute Volker’s great wealth, controlled seventy percent of the company’s stock. Ten years later, at Volker’s death, the employees owned fifty‐five percent of the stock outright and an additional fifteen percent on installment contracts.27 Harold Luhnow reported in 1948: It was Mr. Volker’s hope that employees would eventually own the firm in its entirety, and despite increasing capitalization made necessary by 23. Luhnow provides a lengthy list of these employees at the end of “Mr. Anonymous” Luhnow Typescript.
24. Articles of Agreement for the William Volker and Company Trust Estate, Aug. 29, 1917, (Folder 29), William Volker and Company Records (KC0059), WHMC‐KC.
25. “Mr. Anonymous” Luhnow Typescript, 13.
26. “Mr. Anonymous” Luhnow Typescript, 12.
27. “Mr. Anonymous” Luhnow Typescript, 13.
© David Boutros, 2004 David Boutros The William Volker and Company Page 8 continued progress, it appears as if his hope will be realized long before the Charities Fund must be liquidated thirty years after his death.28 William Volker died at the age of eighty‐eight on November 4, 1947. He had participated in the business little after his retirement, spending most of his time on his charities, but even that discontinued after 1944. Volker spent most of his last years confined to his bed. At the end of his life his William Volker Charities Fund amounted to over $15 million—the remainder after the untold millions of dollars he had given away during his lifetime.29 The company continued under the direction of Volker’s nephew, Harold W. Lunhow, whose character, ambitions, and interests were much different from Volker’s. Lunhow was a graduate of Kansas State University in Manhattan, Kansas, with a degree in agriculture and animal husbandry.30 In 1919, he joined the Volker firm working nine months in the order department, six months as a floor salesman, and six months as a road salesman before being given the responsibility of opening the Dallas, Texas, branch in 1921. In 1923, Volker brought Luhnow back to Kansas City as General Sales Manager for the entire organization with instructions to “over‐haul” the sales force. Volker was ill in 1934 and Luhnow assumed management in his absence. Volker, after returning, continued to refer management problems to Luhnow. After Volker retired, Luhnow perceived the focus of the company’s business had shifted from Kansas City to the West Coast. However, he did not pursue a change of headquarters until after Volker’s death. In 1952, he moved the corporate headquarters to Burlingame, California. The company continued its expansion under Luhnow who became the Chairman of the Board in 1962, before retiring from the company in 1964.31 In 1968, the Mohasco Corporation, a leading manufacturer of carpets and furniture, purchased the William Volker and Company. The final chapter of the company’s history was written when, in 1980, the Mohasco Corporation decided to sell or liquidate the Volker Company. Mohasco felt the distribution business (Volker) was not compatible with its long‐range plans. At the time of its break‐
up, the Volker Company had locations in fifteen states and employed about 1,000 persons. Its revenues in 1979 were $161 million and it was considered to be the largest wholesale distributor of interior furnishings in the country.32 The William Volker and Company ceased to exist in late 1981. 28. “Mr. Anonymous” Luhnow Typescript, 13.
29. Cornuelle, Mr. Anonymous: The Story of William Volker, 171.
30. The biography of Luhnow comes primarily from “Mr. Anonymous” Luhnow Typescript, 40‐43.
31. Kansas City Star, 14 April 1977.
32. Kansas City Times, 1 October 1980.
© David Boutros, 2004 David Boutros The William Volker and Company Page 9 William Volker, the businessman, is unfortunately overlooked in favor of William Volker, the philanthropist. Volker is perceived in the popular tradition as a kind hearted “easy touch” who could not say no to an out‐stretched hand. In fact, Volker was not an “easy touch” but was as methodical in his philanthropy as he was in his business, and many of his business goals—providing quality service, giving incentives for self reliance and efficiency, and being busy and happy—were also the goals of his giving. William Volker was not a man with the Midas Touch, but was instead a man who was devoted steadfastly and energetically to every effort he made. His one real talent may have been the ability to find opportunities and values in situations and people that others did not see. His one real virtue, perhaps, was his concern for his fellow men, and a commitment to use his talent for their betterment rather than their harm. William Volker lived as his “brother’s keeper” and, in fact, Providence was good to him. © David Boutros, 2004