Issue link: https://nebusinessmedia.uberflip.com/i/1515234
30 Dexter-Russell CHANGING HANDS – AGAIN Once again, though, change was in the wind. In 1920, the Turners Falls Power and Electric Company bought the John Russell Cutlery Company for its land and water rights and then sold the business to its directors. roughout the next five years the company continued to see declining sales figures and sought ways to stop the downward spiral. Although the Green River Knife and the Russell Barlow continued to be popular, the company decided to shift its focus to table cutlery, hoping to increase sales. However, the quality of this new line was not up to par with the other Russell products; the handles were made of cheap material and the tines on the fork were so sharp that diners who did not exercise caution could cut their lip. Perhaps this is the reason the name Russell did not appear on this particular line of cutlery. Company leadership decided a major marketing campaign would bring greater awareness of their products to the American public and increase sales. So in March 1928, House and Garden, Good Housekeeping, Vanity Fair, Vogue, e Saturday Evening Post, Hardware Age and Hardware Worlds ran advertisements that reached a reported five million readers. e Russell Company also issued two pamphlets, one that presented a history of the art of cutlery and the second provided rules for setting tables and using cutlery, in the hopes of educating the public and making its products more visible to consumers. At the same time, Russell tried another moneymaking endeavor, which failed miserably. To revive interest in its jackknives, the company attempted to promote the craft of whittling with a kit that contained a block of wood and a jackknife. Few people responded to a whittling contest, which was quickly abandoned. While the marketing campaign did prove to be relatively successful, it could not be sustained financially. e company had used most of its liquid capital on the pricey ads – a half-page spread in the Saturday Evening Post cost $1,000 – and was unable to continue this strategy. On the heels of this decline came the Great Depression, during which the Russell Company suffered additional fiscal problems. Fine cutlery was a luxury item in which few people could invest; basic cutting instruments were still necessary, but consumers bought minimal amounts of low end products. In 1929, with the beginning of the Depression production was at its lowest point in 50 years; the plant worked only three or four days during the week and some layoffs became necessary. Wages were cut by 10 percent on piecework and hourly workers and management took a 12-1/2 percent pay cut. At the time, the Russell Company was spending more than $50,000 on top management salaries; revenues did not warrant such extravagant wages. e entire pocket cutlery industry produced only $2.2 million worth of products. Industry wages dipped dramatically from $1,245 in 1925 to $859 in 1932. While many businesses met their demise during the Great Depression, the John Russell Cutlery Company held on, but barely. Various advertisements, 1928