McKenna Process
Company
Plant
formerly located in Joliet, Illinois - ca. 1920.
The McKenna
Company - Its Rise &
Fall
by
George Langford, Jr.
Worn-Out Rail - 1897 to 1923
For many long years, when
rail had become so worn rhat it was considered no longer usable in main
line track, the railroaders took up this rail and re-laid it in
secondary track or in sidings; or they sold it as scrap to the big
steel producers. The chief engineer of the Milwaukee Road, aware
that worn-out rail still retained about 98% of its original weight,
reasoned that it should be possible to redistribute this 98% so as to
restore the two essential original dimensions: (1) the rail height from
base to rail head; and (2) the head dimension required to maintain the
original gauge of the installed track. Mr. Edward W. McKenna
invented the process to do this metal redistribution by rerolling the
rail. Mr.
McKenna explored the potential market and found many railroads very
interested in this improved use of their worn-out rail and intending to
become customers.
Mr. McKenna then designed
the required plant and equipment and sought financing. He found
several well heeled investors; one of them [Howard
Morris, married to George, Sr.'s mother's sister, Julia A. Robertson,
and General Counsel
for all properties to the Wisconsin Central Railway and eventually
part of the Soo
Line Railway - George, III], was Uncle to George Langford,
Sr. A rerolling mill
was built on a site in Joliet, Illinois, and by 1897 was ready for
operation. A general manager had already been hired, but the
investors felt that engineering talent was also required. George
Langford, Sr., had graduated as a mechanical engineer from Yale
University's Sheffield Scientific School in 1897 and was recruited by
his uncle to be McKenna's chief engineer.
At this early stage, the
railroads considered their total rerolling cost as only the direct
per-ton rerolling charge, choosing to ignore or absorb the substantial
labor cost of taking up the worn-out rail, the freight cost of
transporting it to and from the Joliet mill, and then the additional
labor cost of re-laying the rerolled rail. On this primitive costing
basis, rerolling used rail was a tremendous bargain [less than half the cost of new
rail - George, III] and so the railroads rushed in
and practically stood in line to have their own rails rerolled.
The Joliet mill was quickly filled to 24-hour, 7-day capacity, so the
investors decided that a second mill was needed [to service the western
railroads - George, III]. Kansas City, Kansas, was
the site selected, the new mill was to be a carbon copy of the Joliet
mill, and Father was selected to move to Kansas City, build and equip
the mill, and then get it into operation. While on this
assignment, he met, wooed, and became engaged to Sydney Holmes, who was
to become my mother.
Moving back to the Joliet
mill, Father met with a nearly tragic mill accident, losing his left
arm at the shoulder. He felt that his engagement should be
broken, but Mother would have none of that, and so in 1900 they were
married.
Meanwhile, the Kansas City
mill had caught on like wildfire, and the business so exceeded the
capacity of both the Joliet and Kansas City mills that the investors
felt that a third rerolling plant was needed [this time to service the
eastern railroads - George, III]. A site near Elizabeth,
New Jersey, was selected, and Father, taking my pregant mother with
him, assumed the task of building and starting this third plant.
I was born in Elizabeth in 1901.
This third plant was also a
huge success, all three plants had business available that exceeded
their total capacity, and so the investors sought New Worlds to
conquer. Somewhere, they got the idea of building a rerolling
plant in England [by now it must
have been obvious that the imaginary markets were really for new
investors, not real product - George, III]. Rather than simply
building another copy of the successful American plants, they engaged a
British firm to design and build a "modern" plant. Father was
again chosen to buid and get into operation this "modern" plant, but
when he had the chance to see all the British design firm's plans, he
felt that their designs were unspeakably faulty and refused to take the
assignment. Rather than be fired, he went to England in 1904,
taking along Mother, my new sister Lyda, and me [George, Sr. was only an
observant "consultant" for this process; he thankfully had no actual
authority - George, III].
When we were all installed
in a house in Birkenhead, near the Liverpool plant, Father ran into the
unpleasant fact that there had been no research done in England of the
potential market for British rerolled rail. He then found that
British rails were of a different "bullhead" design, totally different
in shape from American rails, installed in track in a totally different
way, and even wearing out differently. The "chairs" interposed
between the rails and the ties wore transverse grooves in the bottom of
the dumb-bell sectioned rail, oppositely to the wear pattern in
American rails. When approached, the British railroad people felt
that their bullhead design rails could not be successfully rerolled
into usable rail, and so they were totally uninterested in becoming
customers.
By this time, the "modern"
plant had been completed, a customer had been secured, and the plant
was started. As feared, the design deficiencies soon surfaced,
the mill could not be made operative, was shut down, then scrapped, and
the loss absorbed by the investors.
Back in America again, the
three American plants were operating at full capacity, but business was
starting to fall off, and for a very good reason. The railways'
costing system had been updated, and all labor, freight and direct
rerolling charges were now included to make up the total cost of the
rerolled rails. On that basis the purchase of new rails was
competitive with rerolling the worn-out rails. In addition, the
railways were using progressively heavier and heavier rail designs, and
there was no way of rerolling rail to make it heavier.
Used-up Splice Bars - 1924-1928
By now Father, who had
moved up into a management capacity with McKenna, keenly felt the need
of finding a new business to replace the diminishing rail rerolling
business. He had visited one of the Burlington Railroad's big
maintenance shops and had seen a pile of worn-out railroad rail splice
bars waiting for shipment as scrap to a steel producer. Taking a
leaf from Mr. McKenna's book, Father also realized that a used-up
splice bar still retained perhaps 95% of its original weight.
Reasoning, like McKenna, that this 95% could be redistributed so as to
restore the dimensions needed to again fit the rails, he designed a
method that would accomplish this redistribution by heating and
re-forging the bars. Father successfully presented this idea to
the McKenna investors, who authorized him to design the required plant
and procure the required furnace and tooling. The railroads
approved the new idea and planned to be customers, a very large and
expensive mechanical forging press was bought and installed, and the
forging plant was put into operation.
Almost at once, a snag
developed; sheer power was not the full answer to reworking the
worn-out splice bars into usable ones. Reworking and
redistributing the metal was really a tricky three-dimensional design
and engineering problem. Father, always resourceful, addressed
the problem and found several solutions. He secured about a
hundred patents on the re-formed bars themselves, on the forging
process, and even on their re-use in railroad track.
Business boomed, but rather
than build forging plants in appropriate geographical locations all
over the USA, the investors chose to encourage other plants to re-forge
the splice bars under license to the Langford patents assigned to the
McKenna Company. This idea caught on, and by 1928 there were
twelve plants (none owned by the McKenna investors) paying royalties on
their production, producing
a large and steady income to the McKenna
investors.
But from the time he first
took out a license, McKenna had one malcontent licensee. He was
always late with his royalty payments, we had caught him short-changing
us several times, and then he stopped paying altogether. We sued
him for the arrears. The case was full of detailed technical
evidence that was hard to understand. We thought we had a strong
case, but our malcontent licensee convinced the Court that he wasn't
using the McKenna patents and that, even if he did use the patents,
that they were invalid. The Court issued an injunction,
forbidding McKenna to collect royalties from this licensee. This
put the fat in the fire.
Anti-Trust
The Department of Justice,
learning that a licensor of twelve licensees had been enjoined from
collecting royalties on patents, smelled a possible violation of the
antitrust laws. So, one day, totally unannounced, a staff
investigator showed up at McKenna's Joliet office with papers showing
that he was authorized to search all of McKenna's records. Our
company lawyer and our patent attorney both considered this an illegal
fishing expedition, but their opinion did not prevail, and so the
investigator went to work. He first went through our financial
records and found that we had indeed been collecting royalties, but
there was nothing to concern the anti-trust division.
Reworking Charge
Here he found what appeared
to be what he was looking for: price-fixing. When McKenna first
started reworking splice bars, there was no formal costing system, but
by crude cut-and-try experience, they determined that at a rework
charge of $10 per ton they could make a fair profit. The
railroads considered the $10 per ton a fair rework charge, and so we
were off to a good start. Most of our licensees were small
companies without cost systems, and they were at a loss as to what
charge to make. Father, by then president of McKenna, would write
them, suggesting that, pending the determination of the proper charge
that they should make, they should lean on McKenna's experience and
make the same $10 per ton charge; what worked OK for McKenna should
work temporarily for the licensee. There was considerable
correspondence of this type in the McKenna files. It also turned
out that all of our licensses, for their own reasons, had not developed
their own cost basis and were content to continue with the $10 per ton
charge. This resulted, of course, in all dozen licensees and
McKenna charging the same price.
On the strength of this
information, Father, our McKenna president, was indicted and put on
trial in Federal Court in Chicago. Our company lawyer, our patent
attorney, and an associated New York patent attorney defended
McKenna. Father, always nervous when facing a crowd, flatly
refused to testify, so I was pressed into service as McKenna's only
witness. I was on the witness stand for about two weeks, always
stating that the $10 per ton charge was only suggested and never a
requirement for a license. The Court ruled that we had entered
into a "Combination in Restraint of Trade." The little McKenna
Company was declared the perpetrator of an illegal price-fixing scheme,
we were enjoined to cancel our licenses and were ordered not to collect
the royalties due to McKenna, and the patents were declared
invalid. This ended McKenna as a licensor and cost us at least
$250,000 in accrued royalties.
Obsolete Forging Equipment
We were still operating our
splice-bar reworking plant, making just about enough profits to keep
McKenna alive. But our big mechanical forging presses were
wearing out and needed replacement. Fine, technically advanced
hydraulic presses were avilable. They were better and faster but
they were expensive, and the McKenna investors felt that the profits
they could generate were not enough to justify the big investment they
would require.
Track Repair by Welding
What finally put an end to
any thought of continuing the Joliet splice-bar reworking operation was
that the big commercial welding companies had come up with a well
thought out technique for restoring the worn ends of rails and the worn
centers of splice bars. The decisive advantage of their technique
was that the restoration work could be done right on the trackside,
along the railroad's right-of-way. This eliminated the labor cost
of taking up and then re-laying the rails, the labor costs of removing
and replacing the splice bars, and the freight costs of shipping them
all to and from the reworking plants. [They had figured out how to
replace the missing 2% to 5% of the lost weight of the worn rails and
used-up splice bars with little or no handling of the other 98% to 95%
of the weight of the heavy track parts - George, III]
The process consisted of
unbolting the splice bars, welding back the steel lost from the centers
of the bars, and grinding the weld overlay smooth, making the bars
ready to be put back in place. For the worn rails, they first
replaced the steel lost from the battered ends and heads of the rails
with new and tougher steel, welded on. They would then bolt the
restored splice bars back in place and grind the newly welded rail ends
to make a perfectly smooth joint. As this excellent method was so
much cheaper and actually made a better rail-end connection, it drove
the final nail in the coffin of McKenna's re-forging mill.
Licensing of Track
Weld Repair
Exploring the welding
technique, Father hoped that he could prove that one or more of his
McKenna rail- and splice-bar-repair patents was being used, and so he
tried to work out a licensing arrangement with the welding companies.
but he was unsuccessful.
Fossil Collections
We tried all sorts of ideas
to keep the Joliet plant alive, but we had very little success.
But one method did bring in a medium amount of money: selling fossil
collections. During idle periods at the Joilet plant, Father and
I learned of the well preserved plant fossils being found in the strip
mine spoil heaps, twenty miles or so south of Joliet. A dedicated
scientist, Father got deeply interested, and we kept finding thousands
of excellent specimens preserved beautifully in the claystone
concretions. We got help in identifying the different specimens
from Dr. Noe, the world's leading paleobotany authority, then a
professor at the University of Chicago. I have lost track of the
number of different species, many hitherto unknown , that we were
eventually able to identify.
We were assembling the best
specimens into a large central collection, very well taken care of,
with no idea as to its final destination. We kept finding many duplicates,
all excellent specimens, and Father had the idea of assembling these
into small collections for sale. We did so. We got
together, and sold to the science departments of small colleges, small
collections of a hundred or so good spcimens, maybe twenty such
collections.
Meanwhile, we were building
up a second rather large collection. The Illinois State Museum
got wind of our collection-selling venture, became interested in our
Number Two large collection, and paid a nice price for it.
Field Museum of Natural
History
The Field Museum people had
seen and admired the Illinois State Museum Collection and were
receptive when Father offered them our original, Number One big
collection. Father eventually negotiated a handsome purchase
price, and so that collection was transferred to the Field Museum.
Mckenna Company - The End - 1941 to
1946
McKenna now had no mill
work, no royalty income, and little money in its treasury. It was
obvious that the end had come. So in 1941 I looked for a job,
found that I could have one back at Belden, left McKenna, and went to
work for the second time at Belden. Father stayed behind to
liquidate the Joliet plant. After that was accomplished, he and
Mother moved to a Chicago apartment on the near North Side.
Curator of Plant Fossils - 1947 to
1962
With time on his hands,
Father asked permission of the Field Museum to curate, as a volunteer,
the fossil plant collection that he had sold them, but which had not
been worked up by the museum. In 1947, recognizing Father's
dedicated interest, the Field Museum hired Father as Curator of Plant
Fossils. Father then authored and had published two guide books
on the Mazon Creek area fossils with which he was so well
acquainted. I have the manuscript of a third guide book that was
not published. Father retired from the Field Museum in
1962. He died suddenly in Chicago in 1964, aged 88 years.