History
Early years
The present-day Johns Manville company traces its origins to two early manufacturers of construction materials. At the age of 21, Henry Ward Johns (1837 West Stockbridge - Feb 8, 1898 Yonkers [3] ) founded the H.W. Johns Manufacturing Company in New York City. [4] [5] He obtained a number of patents during his business career. [a] In 1885, the Manville Covering Company was established in Wisconsin by Charles B. Manville (ca. 1835 Watertown - Nov 27, 1927 Pleasantville [7] ), whose grandson was the much-married socialite Tommy Manville.
At the turn of the century, virtually all asbestos used in the United States was imported from Canada. Under the Dingley Act of 1897, raw asbestos was free to import, while there was a 25% duty on imported manufactured asbestos products and the quantity so imported was relatively small. [8] [9]
In 1901, the H.W. Johns Manufacturing Company and the Manville Covering Company of Milwaukee merged to form the H.W. Johns-Manville Company with a capital of $2,500,000 in appraised assets and $500,000 of new cash raised. [b] In 1920 the company renamed itself to Johns-Manville Incorporated. [12] In 1926, the firm was reincorporated as Johns-Manville Corporation. [c] On the occasion, JP Morgan & Co invested close to $7,500,000 into what had theretofore essentially been a family-owned "gold mine" (New York Times). [13] A few months later JP Morgan & Co. increased their stake substantially. [14] In both cases though this was not new financing for the company, but the purchase of stock from other individuals. A June 1931 article in Fortune Magazine explored in detail the relationship between individuals in leading positions at the time. Estelle Manville married the nephew of the King of Sweden (who had no right of ascension to the throne though). [15]
From 1902 to 1920 the company had paid a total of $3,067,969.07 of dividends on its 7% preferred and its common stock and paid out $9,067,815.25 in dividends from 1921-1926. The stock buyback of $2,500,000 face amount of preferred stock for cash concluded in 1923 was also a form of (self-selecting) cash dividend. [12]
| External videos | |
|---|---|
 The Story of Asbestos (ca. 1925) |
On the New York Curb Exchange Manville common stock more than doubled during 1927 from a low of 55+1⁄2 in January to a high of 126+1⁄2 in November. [16] There had been some trading of the old company's stock on the Curb Market as well. [d] The stock was listed on the NYSE in February 1928. [19] In February '29 market capitalization briefly exceeded $180 million.
| Year | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1928 | 202 | High | 125 | 122+7⁄8 | 133+1⁄2 | 134 | 124+7⁄8 | 117+1⁄2 | 140 | 159+1⁄4 | 177+1⁄2 | 194+3⁄4 | 202 | |
| 96+1⁄4 | Low | 114 | 111+1⁄2 | 116+1⁄2 | 120+1⁄2 | 96+1⁄4 | 101+3⁄8 | 116+7⁄8 | 130+1⁄8 | 148 | 161+3⁄4 | 159 | ||
| 1929 | 242+3⁄4 | High | 237 | 242+3⁄4 | 217 | 187 | 194 | 189 | 200+3⁄4 | 205 | 219+1⁄4 | 211+3⁄8 | 137 | 140+3⁄4 |
| 90 | Low | 180+1⁄2 | 192+1⁄2 | 155+1⁄4 | 162 | 152+1⁄2 | 161+1⁄2 | 179+1⁄2 | 175+1⁄8 | 190+5⁄8 | 107 | 90 | 105 |
While the United States ranked first in the world in consumption of asbestos, by far the largest producer was Canada, which made the United States the biggest importer (in the early 1930s). [22]
During the 1930s, industrialist Lewis H. Brown was president of the company. In 1949, the Canadian branch of the company was involved in the Asbestos Strike at its mines in Asbestos, Quebec.
In 1931 the company went into the business of providing credit to its own customers, large distributors and home-owners alike, who could spread out their payment over periods ranging from 6 months to 2 years without having to involve third party banks. [23]
In October 1934 the Johns-Manville Credit Corporation was formed with a capital of $1 million. Under the National Housing Act of 1934 the company was to make loans on favourable terms in cooperation with the government to improve the quality of housing in the United States. [24]
In 1937 100,000 shares of stock were sold to finance $6,920,000 of ongoing plant expansions and to inject $1.2 million additional cash into the Johns-Manville Credit Corporation. This was the first new financing since incorporation, bringing the outstanding stock to 850,000 common shares. [25]
Johns Manville managed operations of the Kansas Army Ammunition Plant in Parsons. [26]
In 1943 factories continued to operate at a high level, management however attributed a growing percentage of the demand to ordinary (civilian) business that had been deferred due to the war. The company was accruing a deferred expenditure account, $11.5 million at the end of 1943, in anticipation of heavy spending required for renewals and expansion after the war. This included expected refunds on excess profit taxes due from the U. S. and Canadian governments after the war. [27] In each of the years 1940, 1941 and 1944, $3,000,000 was spent to redeem at 120 the 75,000 shares of preferred stock issued in 1926. [28]
In the early 1950s the company framed itself as vital for national defense, as was common for companies that could be considered part of the military-industrial complex. The company would pursue projects for "the development of substitutes for critical materials, jet aircraft blanket insulations, filters for radioactive dusts, improved fireproof clothing and other projects which will play a vital role in military and civilian defense". [29]
In 1958, Johns-Manville bought Glass Fibers, Inc., based in Toledo, Ohio, from Randolph Barnard. This purchase propelled the company's insulation division. At that time, Dominick Labino was working for Glass Fibers; Barnard and Labino both joined Johns-Manville. Glass Fibers had several plants in Waterville and Defiance, which are still in operation under Johns Manville,
Beginning just after World War II, sculptor Beverly Bender spent thirty-two years working in the art department of Johns-Manville, creating animal sculpture in her free time. [30]
Asbestos litigation and bankruptcy
Starting as early as 1929, Johns-Manville employees began claiming disability from lung diseases. [31] The claims settled out of court, with a secrecy order. [32] In 1943, Saranac Laboratory in New York confirmed the link between asbestos and cancer, but Johns-Manville suppressed the report. [32] From approximately 1930 to 1950, attorney Vandiver Brown handled involvement in such lawsuits. Files and testimony alleged that "[Johns-Manville] maintained a policy into the 1970s of not telling its employes that their physical examinations showed signs of asbestosis". [33]
In 1943, Johns-Manville suppressed a report confirming the link between asbestos and cancer. During the 1960s, 1970s and 1980s, the company faced thousands of individual and class action lawsuits based on asbestos-related injuries such as asbestosis, lung cancer and malignant mesothelioma. Many new settlements included offering $600 for asbestosis, while the FAIR Act called for $12,000 for this condition level.[ citation needed ]
As a result, the company voluntarily filed for chapter 11 bankruptcy protection in 1982. At that time, it was the largest company in United States history to have done so. The filing shocked financial analysts, but a few, such as Gary J. Aguirre, had predicted the filing and had forced the company to post a bond to guarantee payment to their clients. [34] [35]
The bankruptcy was resolved by the formation of the Manville Trust to pay asbestos tort claimants in an orderly fashion by giving the trust the majority of the equity in the company. The bankruptcy took over five years to process and resulted in protracted litigation. The Manville Trust is still in operation today. [36] [37]
Post-bankruptcy
The company emerged from Chapter 11 in 1988 [38] as the Manville Corporation.[ citation needed ] In 1997, the company changed its name back to Johns Manville (but without the hyphen), and this is the name under which it does business today. In 2001, Johns Manville became a wholly owned subsidiary of Berkshire Hathaway (NYSE : BRK.A, NYSE : BRK.B).
Then chairman and CEO Jerry Henry retired in 2004. At that point, Steve Hochhauser became chairman, president and CEO. Todd Raba succeeded him in the summer of 2007; he came from MidAmerican Energy Holdings, another Berkshire Hathaway company. In November 2012, Mary Rhinehart was named president and CEO, [39] and she added the title of chairman in 2014. In September 2020, Bob Wamboldt became CEO and president, while Rhinehart remained as chairman.
In 2012, Johns Manville appointed a new CEO, Mary Rhinehart. [40] She was the CFO for Johns Manville and had been with the company for over 33 years. In 2020, Bob Wamboldt became the president and CEO, while Rhinehart remained as chairman.
Manville, New Jersey
The town of Manville, New Jersey, is named for the company. It had a large manufacturing plant in the borough. Guests could stay in the Hotel Asbestos on Millstone Road. The town was a patriotic place. Many of the streets were named after States of the Union and former Presidents. There was a Hungarian and Greek Orthodox church and a Polish school. [41]
