Edited by Stanimira Stefanova - Leggett & Platt

Edited by Stanimira StefanovaDesign and layout by Elijah Meyer

THE LEGEND OF

JEFFREY L. RODENGEN

iv

Also by Jeffrey L. RodengenThe Legend of Chris-Craft

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Against the Odds:Inter-Tel—The First 30 Years

The Legend of Pfizer

State of the Heart: The Practical Guide toYour Heart and Heart Surgery

with Larry W. Stephenson, M.D.

The Legend of Worthington Industries

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Development of Less-Invasive Medicine

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The Legend of The Titan Corporationwith Richard F. Hubbard

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The Legend of La-Z-Boywith Richard F. Hubbard

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Intervoice: Twenty Years of Innovationwith Richard F. Hubbard

Jefferson-Pilot Financial:A Century of Excellencewith Richard F. Hubbard

The Legend of HCA

The Legend of Werner Enterpriseswith Richard F. Hubbard

The History of J. F. Shea Co.with Richard F. Hubbard

True to Our Visionwith Richard F. Hubbard

The Legend of Albert Trostel & Sonswith Richard F. Hubbard

The Legend of Sovereign Bancorpwith Richard F. Hubbard

Innovation is the Best Medicine:The extraordinary story of Datascopewith Richard F. Hubbard

The Legend of Guardian Industries

The Legend of Universal Forest Products

Changing the World: PolytechnicUniversity—The First 150 Years

Nothing is Impossible: The Legend of Joe Hardy and 84 Lumber

In it for the Long Haul:The Story of CRST

The Story of Parsons Corporation

Cerner: From Vision to Value

New Horizons:The Story of Federated Investors

Office Depot: Taking Care of Business—The First 20 Years

The Legend of General Parts:Proudly Serving a World in Motion

Bard: Power of the Past,Force of the Future

Innovation & Integrity:The Story of Hub Group

Amica: A Century of Service1907–2007

A Passion for Service:The Story of ARAMARK

The Legend of Con-way:A History of Service, Reliability,Innovation, and Growth

Past, Present & Futures:Chicago Mercantile Exchange

Commanding the Waterways:The Story of Sea Ray

Dedicated to Magnus Lajtman, to whom I will always be indebted for introducing me to Cindy, who would soon become my friend, my confidant, and my loving wife.

Completely produced in the United States of America10 9 8 7 6 5 4 3 2 1

Publisher’s Cataloging in Publication(Prepared by The Donohue Group, Inc.)

Rodengen, Jeffrey L.The legend of Leggett & Platt / Jeffrey L.

Rodengen ; edited by Stanimira Stefanova ; designand layout by Elijah Meyer ; [foreword by David S.Haffner].

p. : ill. ; cm.

Includes bibliographical references and index.Issued also as CD-ROM.ISBN-13: 978-1-932022-34-6ISBN-10: 1-932022-34-1

1. Leggett & Platt (Firm)—History. 2. Beddingindustry—United States—History. I. Stefanova,Stanimira. II. Meyer, Elijah. III. Haffner, David S.IV. Title. V. Title: Legend of Leggett and PlattVI. Title: Leggett & Platt VII. Title: Leggett and Platt

HD9969.B434 L44 2008338.7/68415 2008931649

Write Stuff Enterprises, Inc.1001 South Andrews AvenueFort Lauderdale, FL 333161-800-900-Book (1-800-900-2665)(954) 462-6657www.writestuffbooks.com

Copyright © 2008 by Write Stuff Enterprises, Inc. All rightsreserved. Printed in the United States of America. No partof this book may be translated to another language, repro-duced, transmitted, in any form by any means, electronic ormechanical, including photocopying and recording, or storedin any information storage or retrieval system, without writ-ten permission from Write Stuff Enterprises, Inc.

The publisher has made every effort to identify and locate the source of the photographs

included in this edition of The Legend of Leggett & Platt. Grateful acknowledgment is made

to those who have kindly granted permission for the use of their materials in this edition.

If there are instances where proper credit was not given, the publisher will gladly make any

necessary corrections in subsequent printings.

Foreword by David S. Haffner . . . . . . . . . . . . . . . . . . . . . . . . . . . vi

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . viii

Chapter I Humble Beginnings . . . . . . . . . . . . . . . . . . . . . 10

Chapter II A Business Springs to Life . . . . . . . . . . . . . . . . . 22

Chapter III Surviving Difficult Times . . . . . . . . . . . . . . . . . . 30

Chapter IV Leadership . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Chapter V A Decade of Growth, Recession, and Lawsuits . . 66

Chapter VI Broadening Its Base . . . . . . . . . . . . . . . . . . . . . 82

Chapter VII A Decade of Diversification . . . . . . . . . . . . . . . 100

Chapter VIII Embracing the Global Market . . . . . . . . . . . . . 124

Appendix Acquisition History . . . . . . . . . . . . . . . . . . . . . 154

Notes to Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 156

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172

v

TABLE OF CONTENTS

THE INITIATIVE OF THIS BOOK

was undertaken for severalgood reasons, but one was

preeminent. Harry M. Cornell,Jr., and Felix E. Wright, theleaders of Leggett & Platt inthe second half of the 20th cen-tury, were nearing retirementfrom the company’s Board ofDirectors. Today, these two greatfriends and very long servicepartners are blessed with excel-lent health and sharp memo-ries. The time was right to capture their recollec-tions and observations.

The book is, first and foremost, our gift to Harryand Felix, and an expression of our undying appre-ciation and affection for them. (Five of the book’seight chapters are, in large measure, about the yearsduring which they exerted a positive and power-ful influence on our company.)

The company did not and could not haveachieved the success this book recounts with-out the good work and contributions of liter-ally thousands of Leggett & Platt employee–partners. For every highly placed person men-tioned in this book and for every face peering outfrom its pages, there are countless other contrib-utors unnamed and not pictured. For those whoknow the company well, many unnamed individ-uals will come to mind. Because it is impractical toinclude every important partner, we sincerely hope

that the inventors, salespeople,managers, and leaders picturedwill be understood to representall of us.

Finally, we view this bookas the Leggett story thus far—only the first 125 years. We’velong believed the company is notas good as it is going to be. Formany years, our managementhas embraced a notion expressedby a little sign in Harry’s office.It says:

Success is founded on a constant state ofdiscontentment interrupted by brief periods ofsatisfaction on the completion of a job partic-ularly well done.

This book takes a moment to reflect withsatisfaction on a job well done, and it namesand thanks some of those responsible for the suc-cess. The job of Leggett’s success is ongoing. If we areinventive, diligent, hardworking, customer-ori-ented, and loyal—like our previous leaders—andlike Joseph Leggett and C. B. Platt—the best chap-ters are still unwritten.

I hope you enjoy reading this remarkable story.

Dave

FOREWORDBY

DAVID S. HAFFNERCHIEF EXECUTIVE OFFICER AND PRESIDENT

LEGGETT & PLATT, INCORPORATED

vii

MANY PEOPLE ASSISTED IN THE

research, preparation,and publication of The

Legend of Leggett & Platt. Thedevelopment of historical time-lines and a large portion of theprincipal archival research wasaccomplished by research assis-tant Regina Roths. Her thoroughand careful work made it possibleto publish a great deal of inter-esting information on the origins and evolution ofthis unique company.

The research, however, not to mention creationof the book itself, would have been impossible with-out the dedicated assistance of Leggett & Platt exec-utives and employees. Principal among these areJohn Hale, Bonnie Young, and Dave DeSonier, whoseaffable guidance, careful editing, and willing coor-dination of records and individuals greatly assistedour research team. A special thanks goes to DavidHaffner, CEO and president of Leggett & Platt, forcontributing the book’s foreword.

The experience of interviewing the manyinterested and courteous subjects for the bookwas most gratifying. All the people interviewed—whether current employees or retirees—were

generous with their time andinsights. Those who shared theirmemories and thoughts include:Bill Allen; George Beimdiek, Jr.;Howard Boothe; Rich Calhoon;Herbert Casteel; Harry Cornell,Jr.; Jack Crusa; Dave DeSonier;Joe Downes; Ted Enloe; RichardFisher; Matt Flanigan; Frank Ford;Karl Glassman; Mike Glauber;Dave Haffner; John Hale; Paul

Hauser; Dan Hebert; Bob Jefferies; Ernest Jett;Gary Krakauer; Don LaFerla; Sandy Levine; VincentLyons; Malcolm Marcus; Eloise Nash; Jack Newman;Dennis Park; Duane Potter; Andy Thomas; Bill Weil;Tom Wells; Wayne Wickstrom; and Felix Wright.

Others who assisted in a variety of ways include:David Ballew and Crystal Hacker (editing); GregHall (photography); and various members of Leggett& Platt’s Printing Services, Marketing Services, andLegal departments. In addition, Michele Hansfordwith the Powers Museum and the staff of the JasperCounty Records Center, both of Carthage, helpeda great deal with supplying and verifying manyhistorical facts.

Finally, a special thanks is extended to thededicated staff at Write Stuff Enterprises, Inc.,

viii

ACKNOWLEDGMENTS

ix

who worked on the book. Thanks are due toStanimira “Sam” Stefanova, executive editor;Elizabeth Fernandez, Anne Forsyth, and HeatherLewin, senior editors; Sandy Cruz, vice president/creative director; Elijah Meyer and Ryan Milewicz,graphic designers; Roy Adelman, on-press supervisor;

Abby Hollister, proofreader; Mary Aaron, tran-scriptionist; Elliot Linzer, indexer; Amy Major, exec-utive assistant to Jeffrey L. Rodengen; MarianneRoberts, executive vice president, publisher, andchief financial officer; Steven Stahl, director of mar-keting; and Tania Overby, bookkeeper.

T H E L E G E N D O F L E G G E T T A N D P L A T T

In 1883, Joseph Palmer Leggett invented the first spiral-steel, coiled bedspring. He was granted an official patent on May 26, 1885,as this drawing from the United States Patent and Trademark Office indicates. Though the spring was revolutionary in design, fewforesaw the invention growing into a multibillion-dollar industry. (Drawing courtesy of the United States Patent and Trademark Office.)

C H A P T E R O N E

HUMBLE BEGINNINGS8,000 B.C.–1901 A.D.

THE WORLD WAS POISED ON THE EDGE

of great change in 1883, biddingsilent farewell to the past and

entering a period of creativity and inno-vation. That year, Thomas Edison in-vented his first electric light, and LouisWaterman devised the fountain pen. Oscar Ham-merstein patented a cigar-rolling machine, and theBrooklyn Bridge officially opened to traffic. TheTriumph motorcycle made its debut, and the OrientExpress made its maiden run between Istanbuland Paris. And in the small town of Carthage,Missouri, inventor Joseph Palmer Leggett shookthe hand of blacksmith Cornelius B. Platt, forminga partnership that would eventually evolve into amultinational enterprise. Leggett’s idea for a newand improved bedspring would even become theindustry standard.

Leggett & Platt would begin with this practi-cal product innovation—a single-cone-coil spring,which proved so successful that diversification intoother areas was barely considered until the early1960s. Over the next half century, however, thecompany would spread its industrial wings intoaspects of production that its founders could neverhave envisioned.

Today, Leggett & Platt, Incorporated, is a mem-ber of both the FORTUNE® 500 and S&P 500, and leadsthe world in the design and manufacture of variouscomponents that go into finished mattresses andbox springs. The same could be said of Leggett regard-

ing many functions and features embodiedin your office chair, your automobile seat,your recliner, your bath mat, several ofyour appliances, your retail shoppingvenue, your motorcycle, and even thepadding under your carpet.2 The company

also manufactures components found in approxi-mately 80 percent of automobiles manufactured inNorth America and Europe.3 If you shop at Wal-Mart,Barnes & Noble, Circuit City, Costco, JCPenney, TheHome Depot, RadioShack, Safeway, Target, or hun-dreds of other stores, you are not only purchasingproducts whose internal workings are manufacturedby Leggett & Platt, but you are also pulling thoseproducts from shelves and racks designed andconstructed by the company.4

Leggett & Platt is the world’s leading manufac-turer of innerspring and box spring componentsfor residential bedding and a leading supplier ofadjustable beds.5 It is also the world’s top producerof recliner mechanisms, sofa sleeper units, and seat-ing systems for the upholstered furniture industry.6

When it comes to other residential furnishings, thecompany is the leading supplier in the United Statesof non-fashion construction fabrics and carpet under-lay, as well as a major supplier of geocomponents.7

In the field of commercial fixtures and compo-nents, Leggett & Platt’s customer list boasts morethan 1,000 accounts, including most major retailers.It is the world’s top manufacturer of retail store fix-tures and display products and services.8

What a friend is a man’s bed! After the toil and care of a long, hard day, orwhen one’s very bones ache from too much play, what luxury it is to feel thegentle softness of a bed! In sickness, nature’s own nurse, constant, stead-fast, gentle, more healing than any medicine is a bed. And always the vitalfactor in the bed is the spring it bears.

—Raymond F. Leggett, son of J. P. Leggett1

T H E L E G E N D O F L E G G E T T & P L A T T

Many components Leggett & Platt manufac-tures are integral to the widely recognized brand-name products of its well-known customers. How-ever, none of Leggett & Platt’s fine products havea brand name readily recognized by the averageconsumer. This fact is without a doubt the largestcontributing factor to the company’s lack of recog-nition within the general population.

In other industries, Leggett & Platt is a leaderin the manufacturing of seating mechanisms andrelated office furniture components.9 It furtherleads the way as North America’s No. 1 indepen-dent producer of drawn-steel wire.10 In the indus-trial sector, Leggett & Platt is a major producer ofelectric resistance, welded carbon steel mechan-ical tubing, and other fabricated tubular com-ponents.11 It also manufactures dozens of spe-

cialized products,12 from massage, lumbar, andseat-suspension systems for the automotive indus-try to quilting, sewing, and wire-processing sys-tems for the bedding, home textile, upholstery, andapparel industries.13

Despite Leggett & Platt’s size and vast array ofsophisticated products, its roots can be traced backto humble beginnings that tell the story of twomen, Joseph P. Leggett and Cornelius B. Platt, whobuilt a unique enterprise based upon the old-fash-ioned ethics of courtesy and honesty common to asmall, midwestern town. When J. P. Leggett createdthe first commercially viable, spiral-steel coiled bed-spring in 1883, he revolutionized the idea of a sup-portive and comfortable sleeping surface. However,the story of his accomplishments—and the companythat has kept his name alive—doesn’t begin in 1883.

12

The Leggett & Platt Family TreeLate 1800s to Early 1900s

John Leggett—Harriett Robbins

Raymond Leggett

Lilley LeggettGeorge Leggett

Cornelius D. Platt—Catherine Fisher

Elizabeth Leggett—Martin Leidy

C. E.“Jack” Platt

Robert L.“Bob” PlattJoseph P. Leggett, Jr.

Marjorie Leggett—Harry M. Cornell, Sr.Helen Leggett

Kittie Platt

Catherine Platt

William Beardsley

Harry Platt

Harry M. Cornell, Jr. John G. Platt

Thomas W. Platt

Harriett Bessie Platt—Frank B.Williams

Joseph P. Leggett, Sr.—Ida May Eagan Willmetta Leggett—Cornelius B. Platt

Robert L. Platt

Frederick E. Platt

C H A P T E R O N E : H U M B L E B E G I N N I N G S 13

Rather, it is an important part of an industrial timeline that goes back some 10 millennia.

A Brief History of Sleep

A good night’s sleep, or at least the comfortableand healthy repose to which we are accustomed, wasrelatively unknown throughout history. Our ances-tors most likely slept in caves on rough groundpadded by leaves and grass. Their environment wasbereft of comfort, as we know it today.

Roughly 10,000 years ago, however, man firstbegan sleeping on primitive “beds.” At the neolithicsettlement of Skara Brae in Scotland (dating toapproximately 3,400 B.C.) a stone bed hacked froma cave wall was discovered adjacent to a stone hearthand stone sideboard.14 In the same time period, theEgyptian pharaohs also raised their pallets off thehard ground. This luxury, however, was designatedonly for the elite; King Tutankhamen, for example,slept on a bed constructed of ebony and gold, whilecommoners continued to sleep on palm boughsheaped in a corner.15

It is believed that the Romans invented the first“mattress” by stuffing reeds, hay, wool, or feathersinto a casing, a technique that continued until the late18th century.16 During the Renaissance, the generalpublic slept on coarse mattresses that were filledwith pea shucks, straw, or feathers, while the upperclasses enjoyed beds covered with velvets, brocades,and silks. In the 16th and 17th centuries, mattresseswere stuffed with straw or down feathers and placedupon a latticework of rope. By the late 18th century,the cast-iron bed and cotton mattress gained pop-ularity because these setups were less attractiveto insects and vermin. Until that time, the presenceof mice and insects within mattresses was anaccepted fact, even in the beds of royalty.17

According to the National Sleep Foundation’s2002 Sleep in America poll, 58 percent of adults inthe United States experience symptoms of insomnia

a few nights a week or more.18 Oddly enough, themalady has been viewed as a genuine health prob-lem only within the last few decades. Today, how-ever, research has allowed us to realize the trueimportance of sleep. It is estimated that fatigueresulting from sleeplessness contributes to morethan 100,000 police-reported highway crashes,causing 71,000 injuries and 1,500 deaths per yearin the United States alone.19

Although sleep deprivation arises from myriadsources, including health problems, stress, and thediversions of a fast-paced, high-tech society, studiesagree that restful, less interrupted sleep is greatlyaided by a supportive mattress and foundation.

Joseph P. Leggett Invents the Bedspring

Patent number 318,758 of the United StatesPatent and Trademark Office is a simple documentadorned with the simple title “BED SPRING.”20

Although bedspring patents were being grantedsince the 1850s, none had proved commerciallyviable. That honor would go to Joseph Palmer Leggetton May 26, 1885. In part, the description of hisrevolutionary creation reads as follows:

My invention relates to springs for bed; and itconsists in the detailed construction and combina-tion of the same, as hereafter fully described,whereby the spaces between the springs are in greatmeasure filled up, and the tick or mattress is

The C. D. Platt Plow Works plant, founded in 1873 by C. B.Platt’s father, was located at the corner of Grant and Fifth Streetsin Carthage, Missouri. This photo, likely taken between 1883 and1885, shows a coiled spring bed suspended from the second-story window with a placard reading “Combination Spring Bed.”


prevented from falling through between the springswhich support it. These springs, by having a verywide spread bearing against the tick or mattress, areprevented from turning over when the weightupon the mattress does not come directly over thecenter of the springs. … The manner in which theseparate springs are coupled together and combineddistributes the weight of any person resting on themattress over the adjacent springs in addition tothose directly underneath and keeps the variousparts of the mattress at the same level.21

J. P. Leggett was born in Millville, Pennsyl-vania, on March 6, 1856, to John and Harriett(Robbins) Leggett, who had emigrated from Hall,England, in 1836. A large landowner, John Leggettwas a prominent citizen in the Millville communityand had secured his son’s education at the MillvilleSeminary. Although historical records are lost,young Leggett probably arrived in St. Louis,Missouri, in the 1870s and worked at variousfirms in a mechanical capacity while perfectingvarious inventions.

Although Leggett’s first patent, the coiled bed-spring, would become his most famous innova-tion, his accomplishments were not restricted to theworld of invention. Leggett was also well respectedfor his contributions to his community in Carthage,Missouri, where he was elected mayor for three con-secutive terms from 1906 to 1912. He also served aspresident of the Bank of Carthage and a member ofboth the Benevolent and Protective Order of Elksand the Knights of Pythias.22

In 1888, Leggett married Ida May Eagan ofCarroll County, Missouri, with whom he had fourchildren: Raymond, Helen, Marjorie, and JosephPalmer Leggett, Jr.23 Marjorie would later marryHarry Cornell, Sr., whose role would prove integral

14

As a result of a business partnership between the inventive mindof J. P. Leggett (below left) and the practical, manufacturing mindof his brother-in-law C. B. Platt (below right), a new industry wasborn in 1883 with the production of the first commercially viable,spiral-steel coiled bedsprings.

to the success and survival of Leggett & Platt,Incorporated. In turn, one of their children, HarryCornell, Jr., would eventually take the helm of thecompany and lead it toward its current position asa multibillion-dollar corporation and global leader.

In 1883, with his idea for a new and improvedbedspring firmly in mind, J. P. Leggett attempted tosecure a manufacturing facility as well as a partnerwho possessed both mechanical expertise and thedesire to invest in the enterprise. As chance wouldhave it, 20-year-old Cornelius B. Platt, who wouldbecome his brother-in-law in 1885, had all the qual-ities Leggett sought in a partner.

One of five children, C. B. Platt was born onMarch 6, 1863, in Illinois, to Cornelius D. Platt, ablacksmith, and his wife Catherine Fisher, grand-daughter of the famous artist Jonathan Fisher. Hisparents, both from New York, had married inAllensville, Indiana, in 1846, and lived in Polk County,Iowa, for several years before the family traveledin covered wagons to Carthage in 1873, where

they established themselves as “pioneer citizens,well-to-do and prominent.”24

On August 12, 1885, 22-year-old C. B. Plattmarried J. P. Leggett’s sister, Willmetta, and theyhad three children, Jack, Bessie, and Robert. Healso co-owned a facility located at 508–514 GrantStreet in Carthage called the C. D. Platt PlowWorks, which his father had founded in 1873.25

Within a decade, the enterprise had establisheda name for quality and was assembling as many as200 plows per day.26

After outgrowing the C. D. Platt Plow Works plant, the first Leggett& Platt bedspring factory was opened in 1890 at the corner ofSecond and Maple Streets in Carthage. This photo, taken in 1892,shows the company’s staff. Although the first and fourthindividuals pictured from left to right are unidentified, the restinclude Kansas farmer Sam Smith, George D. Leggett, Carthageplumber Karl Speece, J. P. Leggett, and C. B. Platt (far right).



As a family member, good friend, and black-smith—self-taught in metallurgy and engineering—the young C. B. Platt possessed an excellent com-bination of skills to complement the inventive J. P.Leggett in a partnership to produce Leggett’s newand improved spring bed. So, Platt put togetherseveral hundred dollars as his contribution to thefledgling venture. His experience with early indus-trial production would help move the businesspartnership forward.

After several months of preparation and hardwork, the first coiled bedsprings were manufac-tured with belt-driven machinery at Platt Plow

Works in 1883, with the product garnering Leggetta patent in May 1885. Until Leggett had developedthe bedspring, bedding in the United States hadgenerally consisted of cotton, feather, or horse-hair mattresses, with no added cushion. Leggett’sbedsprings were designed to provide a foundationfor these mattresses, with the coils fabricated sep-arately. So, for the next 12 years, bedsprings wereproduced alongside farm equipment at the facilityand then sold to retail merchants. Although the PlattPlow Works sign remained on the building, pro-duction focused almost entirely on the manufactur-ing of bedsprings by the late 1800s.27

16

FOUNDED IN 1841, CARTHAGE, MISSOURI, HAS

never been a slow-paced community. Whilearea residents are friendly and laid-back,

Carthage is a town where success and prosperityhave almost always arrived in a rush.

A historic town located on Route 66 inJasper County, Carthage was named after a cityin North Africa. By 1854, the town was assignedthe Jasper County seat, and a new brick andstone courthouse graced the public square. In1856, John Shirley, father of the notoriouswould-be outlaw “Bandit Queen,” Belle Starr,acquired most of the square’s north-side prop-erty, where he built an inn, tavern, livery stable,and blacksmith shop, introducing some of thefirst businesses to the city.1 He also became arespected member of the county government.

By 1861, the 1,200 citizens of Carthageclashed over the issue of slavery, leading to sev-eral historic confrontations. On July 5, 1861, theBattle of Carthage, also known as the Battle ofDry Fork, marked one of the earliest, officialengagements of the American Civil War, as 1,100Missouri State Guard troops led by the experi-enced Col. Franz Sigel fought 6,000 Confederates

under the command of pro-Southern MissouriGovernor Clairborne F. Jackson.2 The one-daybattle was a major victory for the Missouri StateGuard and played a huge part in determiningMissouri’s course during the war. The Battle ofCarthage also marked the only time a sitting U.S.state governor led troops in the field. The “SecondBattle of Carthage” took place in October 1863,but the worst clash occurred in September 1864,when Confederate guerrillas burned down mostof the city.3

In the late 1800s and beyond, nearby leadmines and limestone quarries contributed signifi-cant wealth to Carthage. Burlington limestone, alsoknown as Carthage marble, was a valuable localstone used to build the majestic Carthage court-house, as well as parts of the Missouri StateCapitol, U.S. Capitol, and even the White House.4

The gray marble was also used in the constructionof many large and ornate Victorian homes that stillgrace Carthage’s Grand Avenue. Carthage marbleis also present on the exterior of Chicago’s FieldMuseum and at Macy’s in New York City.

By 1900, in an architectural survey pre-pared for the Missouri Department of

CARTHAGE, MISSOURI:THE MAPLE LEAF CITY


Leggett and Platt knew that Carthage was a thriv-ing town. Although the city had been devastated bythe Civil War and almost destroyed by Confederateguerrillas in September 1864, within the ensuingdecade, the Maple Leaf City had proved its resilience.28

Boasting a population of nearly 6,000 residents and anumber of thriving businesses, Carthage included agrocery and dry goods emporium, several three-storybrick buildings, a clothing store, several churches andschools, a large woolen mill, a flour mill, a brickyard,and even an opera house. Both Leggett and Platt real-ized, however, that the town’s market was limited.Thus, the duo took to the road.

The entrepreneurs loaded a horse-drawn car-riage with their product, and with the assistance ofGeorge Leggett (J. P. Leggett’s brother) and JackPlatt (C. B. Platt’s youngest son), they visited retailersin nearby towns, such as Joplin, Lamar, Galena, andLockwood. To conserve space in their wagon, both thesprings and the slats onto which they attached wereloaded separately and then constructed on the side-walk in front of the store after an order was received.29

This attracted curious townspeople, who observedthe four gentlemen as they assembled their invention,providing the entrepreneurs with an opportunityto attract even more prospective buyers.

Natural Resources, Carthage was judged asthe richest town per capita in the UnitedStates.5 Today, this town of 12,688 is one ofthe most visually appealing stops in the MissouriOzarks. The town’s beauty is especially appar-ent in early October, when the Maple Leaf Cityholds its annual Maple Leaf Festival.6

Artist Andy Thomas created this authentic 1895 paintingof downtown Carthage after months of painstakingresearch. Thomas utilized historical photographs, maps ofthe city from 1893 to 1897, and a bird’s-eye panoramicview of the town to help him create an accurate, yetartistic, impression of the area. (Painting printed bypermission, courtesy of Andy Thomas.)

Foundations for the Future

By 1885, Leggett had already secured whatwould one day become an extraordinarily valuablepatent on his bedspring. Around that time, however,it is believed that Martin Leidy, another brother-in-law of J. P. Leggett, acquired some shares of thecompany from C. B. Platt, who was temporarily awayon an unexplained absence.30

Although records are sparse, an old receipt indi-cates that the partnership was initially known asLeggett & Leidy and later as the Combination SpringBed Company. However, the weathered receipt alsoshows “Leidy” crossed out and the name “Platt” writ-ten beneath it.31 Whatever the case, Leidy’s involve-ment was short-lived. Platt returned in 1886 andrepurchased Leidy’s shares, giving rise to the tradename Leggett & Platt.

From this humble beginning, the businessgrew on the merit and popularity of its product.32

As the business began to expand, it requiredgreater production space. In 1890, the partnersrelocated from the C. D. Platt Plow Works to a20-by-50-foot building on the corner of Second andMaple Streets in Carthage. The factory was eventu-ally extended from Lyon Street to Maple Street, cre-ating an L-shaped building, with the businessoffice and part of the mechanical department locatedon Second Street, near Maple.33

During this period, Leggett continued to per-fect, enhance, and improve his original bedspringproduct. On January 21, 1896, he was granteda patent for a “Spring Bed Bottom,” which bet-ter secured the bedsprings in place, while permit-ting them to yield under pressure.34 On September 20,1898, he received a patent for the “Manufactureof Spring Bottoms,” which related to the nestingof springs that would form the bottoms of beds,chairs, and other types of furniture.35 That sameday, Leggett received yet another patent—for a“Machine for Attaching Bed Springs to Cross WireBraces.”36 This latest invention consisted of a machinethat would quickly and efficiently connect thebedsprings with the cross wire braces of theframe. On January 27, 1900, he was approvedfor another patent—his latest improvement for a“Sectional Bed Bottom.”37 The improvementsinvolved pairs of metal drop-hangers, cross-tiesconnecting the hangers, and longitudinal ties extend-ing lengthwise from the hangers. These ties thensupported the bedsprings themselves.

T H E L E G E N D O F L E G G E T T & P L A T T18

Left: The letterhead of this 1892 receipt bears the Leggett & LeidyCombination Spring Bed Company name. Apparently, Leggett andPlatt were conscious of the costs of waste, as a close look revealsthat “Leidy” was crossed out and “Platt” written underneath. Anample supply of old letterhead must have been available, since thepartnership between J. P. Leggett and C. B. Platt was established in1885 and Martin Leidy had left the company years earlier.

Opposite: By the turn of the 20th century, Leggett & Platt utilizedcertain brand names to appeal to retailers that purchased itsrevolutionary spring beds. “Lure-Sleep”—featured here in acompany manual outlining a newspaper advertising campaign—was one of many such names.


The patents served as giant steps forward, cov-ering the spectrum from manufacturing beds on awire base (instead of wood) to what would beknown as the Leggett Hinge-Top Spring Bed, origi-nally derived from the “Spring Bed Bottom” patentof 1896 and improved upon in successive yearsthanks to Leggett’s eye for efficiency and function.Perhaps most important, the 1898 patent appliedto the concept of interlocking coils, a developmentfar ahead of its time.

The buying public was becoming accustomedto the superior comfort and durability of the Leggett& Platt Spring Bed, and consumer demand madeexpansion inevitable. In 1895, Harry Platt, brother ofC. B. Platt, was offered a franchise to use the Leggett& Platt patents. So he opened a factory in Louisville,Kentucky, and operated the facility until 1903,when the McElroy–Shannon Bedspring Company of

Carthage purchased it.38 Charles F. McElroy, who hadmoved to Carthage from Hannibal, Missouri, in 1881,was a wealthy individual involved in mining and realestate.39 He was also a shareholder in the MissouriElectric Railway and the founding shareholder of theCarthage Land and Mining Company.40 Although lit-tle is known about his partner, Woodford Shannon, itis known that McElroy took on various partners overthe years in his extensive endeavors.

The McElroy–Shannon Bedspring Companywas partially controlled by J. P. Leggett. The 1900

20

Leggett & Platt’s first business office at the factory on Secondand Maple Streets reflected the company’s humble beginnings.Pictured (from left to right) are J. P. Leggett, Walter W.Hubbard, Col. W. K. Caffee, and C. E. “Jack” Platt.


Carthage city directory lists the company as locatedat 211 South Grant Street, with McElroy as pres-ident, Shannon as secretary, and J. P. Leggett asvice president.41 Leggett’s name may have beenabsent from the public lexicon in this enterprise,but in effect, the Louisville plant was still par-tially owned by Leggett & Platt. The McElroy–Shannon Bedspring Company would later open abedspring plant in Philadelphia and move theLouisville operation to Waukegan, Illinois, andthen back to Louisville. It would continue to remainaffiliated with Leggett & Platt until 1922, when itwas fully acquired.42

By 1901, Leggett had applied for a dozenpatents, including a Canadian patent taken out thatyear as a contingency for selling rights in Canada forthe manufacturing of bedsprings. It had becomeevident that the Leggett & Platt Spring Bed was apopular product with consumers. As the company

continued to experience growth and expand acrossthe nation, J. P. Leggett and C. B. Platt decided itwas time to implement a formal business structure.That year, they incorporated their enterprise underthe name Leggett & Platt Spring Bed & Manufac-turing Company in Missouri, and J. P. Leggettwas named its president.43 The other original stock-holders included George D. Leggett, WilliamMcMillan, W. K. Caffee, J. P. Newell, Kate M. Johns,R. E. Lister, W. W. Bailey, Robert Ornduff, W. E. Hall,B. A. Mevey, M. B. Parke, E. O’Keefe, Dr. M. J.McClurg, and William E. Brinkerhoff.44

In less than 20 years, the inventor and the black-smith had worked to create and market a productthat would completely alter the design, construction,and sales of the traditional bed. The days of the hardpallet and horsehair mattress were quickly comingto a close, with the name Leggett & Platt rising tothe forefront of sleep technology.

In promotional materials aimed at retailers, Leggett & Platt openly described its manufacturing processes in an effort todemonstrate why iron and steel alloy was a better type of metal for the manufacturing of spring coils.

C H A P T E R T W O

A BUSINESS SPRINGS TO LIFE1901–1930

THOUGH THE WANING YEARS OF THE

century had marked a rushof activity for Leggett & Platt

Spring Bed & Manufacturing Com-pany with the construction of twofactories in five years, the businessseemed determined to fulfill one needwith one steadily improving productfor several decades starting in 1901. Leggett & Platt’sbedsprings had proved so durable and well designedthat, by the early 1920s, company promotionalbrochures claimed “thousands of Leggett & Plattsprings made 35 years ago are still in everyday useand we believe will last twice as long.”2

With product sales directed at such retailers asfurniture enterprises and general stores, prospec-tive retail customers were provided with sophisti-cated sales booklets that detailed productsand the healthful benefits garnered from sleepingon Leggett & Platt Spring Beds. For instance, onesuch brochure, subtitled “The Beds of Kings,” openedwith the following approach to retailers:

When your customer is made to realize that he willspend one-third of his life in bed, that his bed is whatthe spring makes it, that his physical condition andmental alertness during the day are dependent uponthe restfulness of his slumber at night, he will thenrealize that his bed spring is one of the most impor-tant factors in his life, and you will have no difficultyin persuading him to select your best L & P number.3

Popular bed models of the timeincluded “Victor,” “Crown,” and the“Lure-Sleep” series, which, depend-ing on options, were further identi-fied as Number 1, Number 6, Number11, and so forth.4 The Leggett & Plattproduct line even catered to the obese,with “The Dixie Sleeper” billed as “The

Double-Deckless for Heavyweights.”5

Patented features, trumpeted as the epitome ofcutting-edge sleep technology, were listed as standardon all beds sold in the early 20th century and consid-ered revolutionary for their time. These features, aslauded in one promotional booklet, made the Leggett& Platt product “the most perfect spring bed in theworld today.” It included such mechanics as a well-secured bottom fastener, a surface design thatallowed every coil to move independently and conformto the body’s movements, open construction for easycleaning, and high-carbon steel used in the wire man-ufacturing process that helped alleviate noise.6

For retailers and consumers who were usedto sleeping on hard board pallets covered with ahorsehair mattress, these were breakthroughs ofunimaginable luxury. Moreover, Leggett & Platt

The quantity and quality of sleep we get is a vital factor in our daily life. Themost valuable slumber accessory yet devised is a Leggett and Platt Spring.

—“The Beds of Kings”company brochure, 19231

One way Leggett & Platt helped retailers promote its productswas through slides shown at movie theatres, such as the oneabove from a series issued after World War I.


had no compunction about making such claims, asevery single one was true. In its brochure, “The Bedsof Kings,” the company even went so far as to likensleeping on woven wire or link fabric spring bed-ding to punishment, while alluding that sleepingon coil springs was an extravagance befitting roy-alty and world leaders.7

Honesty As Policy

Leggett & Platt also made no secret of itsmanufacturing techniques by including detailedphotographs and drawings of its metal molding andwire-making process in promotional pieces aimedat buyers. In one, the company even included a setof images showing in microscopic detail how theiron and steel alloy used in Leggett & Platt man-ufacturing was stronger, and far superior, to otherwire materials used in bed making.8

This dedication to openness and honesty is onefacet of a company culture that was forged by itsfounders and, uniquely, has proved a keystone in

the Leggett & Platt story throughout its history.More than just a way of conducting business, it wasa philosophy of dealing with clients that stemmedfrom the personalities of J. P. Leggett and C. B.Platt. Theirs was a winning formula from day one:Establish the standards of extreme loyalty and ser-vice to customers and provide a product that isboth unique and of high quality.

Expansion and Retraction

It is of little surprise that others wished to becomeinvolved in what seemed to be an inevitable expansionfor Leggett & Platt. The McElroy–Shannon BedspringCompany was already operating a plant in Louisville,Kentucky, that was franchised to use the Leggett& Platt patents. It had also opened a plant in

24

Leggett & Platt employees punch out angle iron for bed framesin the basement of the Carthage plant in the 1920s.

C H A P T E R T W O : A B U S I N E S S S P R I N G S T O L I F E 25

Philadelphia and moved the Louisville operation toWaukegan, Illinois, in 1915 to be near the sourceof raw materials.9 When the move failed to live up toexpectations, the founders moved back to Louisvilleand carried out operations at 117 North Fifth Streetin a rented building.10

In 1911, Leggett & Platt opened a branch factoryin Windsor, Ontario, Canada, which was managed byCornelius Eugene Platt (known as “Jack”), theyoungest son of C. B. Platt. A few years earlier, rightsto the Leggett & Platt patents had been granted to thePacific Spring Company of Oakland, California, givingLeggett & Platt products an initial introduction on thePacific Coast. These expansions, while exposingthe Leggett & Platt Spring Bed to a larger audience,were relatively short-lived. The Windsor branch soon

merged with Star Manufacturing, which was in turnacquired by L. A. Young Industries, Inc., of Detroit,Michigan.11 (This company would later become theL. A. Young Spring and Wire Corporation and wouldfigure extensively in the history of Leggett & Platt.)Jack Platt remained as manager of the facility. L. A.Young Industries also purchased Pacific Springs’Oakland factory, originally operated by Curtis Wright,Jr., of Carthage, Missouri, who had contracted for useof the Leggett & Platt patents on the Pacific coast.12

Robert L. “Bob” Platt, another of C. B. Platt’s sons,took over as manager of this Oakland factory.13

Loss of a Founder

After many years of continuous prosperity atLeggett & Platt, tragedy struck on May 18, 1921,when J. P. Leggett died at the age of 65. His passingleft a void at his company and within the communityof Carthage. An articulate, and surprisingly frank,hand-typed copy of his original obituary reflectedthe following text:

He found his chief recreation in hunting and fish-ing. His was a gentle, lovable character. He wasquick-tempered, but ever ready to forgive and forget.Indeed, all the gentler qualities of manhood weremost happily blended in the character of JosephPalmer Leggett—not put on like costly apparel forgala occasions, but his every day habit. Everybodytherefore liked him because he was attentive, oblig-ing, kind, and generous to all. Though a markedman in many respects, it was in his domestic andsocial relations that Mr. Leggett was most distin-guished and most beloved.14

The residents of Carthage mourned the loss ofone of their favorite sons, as did the employees of thecompany he had founded. Time would not stand stillfor the growing company, however, as upon the deathof J. P. Leggett, C. B. Platt took over as president.

Right: Managers at the Leggett & Platt factories ensured thatoperations ran smoothly at all times. From left to right are W. W.Hubbard, manager of the Louisville plant; C. E. “Jack” Platt,manager of the Windsor, Ontario, factory in Canada; and RobertL. “Bob” Platt, assistant manager at the Windsor facility.

Below: This late 1920s photo shows the paint room located inthe original Louisville, Kentucky, factory. Aluminum color wasused for most of Leggett & Platt’s metal products, includingrollaway beds and rails.


THE INVENTIVE MINDOF J. P. LEGGETT

J. P. LEGGETT WAS FIRST AND FOREMOST AN INVEN-tor, a man in the vein of Edison or Ford,whose mind constantly whirled with ideas.

He formulated new concepts, designed andbuilt prototypes, and searched for ways to improveexisting products.

The approval of Leggett’s 1885 bedspringdesign by the United States Patent and TrademarkOffice was one of many spring-related creationsthat aided Leggett & Platt in becoming America’spremier supplier of bedsprings, innersprings, andrelated products.1 He received patents for severalinventions, including the “Manufacture of SpringBottoms,”2 a “Machine for Attaching Bed Springsto Cross Wire Braces,”3 and a “Sectional BedBottom.”4 On January 21, 1896, he was granteda patent for the original “Spring Bed Bottom”5 andthen received clearance from the patent office onMarch 3, 1914, for an improved version of the

product.6 Then, only a month later, his “Machinefor Bending and Cutting Coiled Springs” wasgranted official status.7 Leggett created yet another“Spring Bed Bottom and Manufacture of theSame,” which was authorized on August 26, 1919.8

While he excelled in his knowledge of bed-springs, Leggett’s inventive mind was not confinedto this topic. His “Target Trap,” the first suchcommercially viable device ever created forthrowing clay pigeons for the sport of skeet shoot-ing, was given patent approval on November 7,

Besides his original bedspring design, Leggett patentedseveral other spring-related creations, such as a “SectionalBed Bottom” (above left) and a “Machine for Bending andCutting Coiled Springs” (above right). (Drawings courtesy ofthe United States Patent and Trademark Office.)


1905.9 Known as the “Leggett Trap,” the RemingtonCompany purchased this device and advertisedit for many years in its sales catalogs.10 Two yearsafter patenting the trap, Leggett followed it upwith an improved “Carrier for Target Traps,” whichallowed the fast feeding of clay pigeons into themachine, while preventing breakage.11

Several of Leggett’s other patents were per-fectly timed for their era. The 1895 “Lid for TeaKettles” was a true novelty of the period, whosedescription in the original patent reads as follows:

The object of my invention is to make a lidthrough which liquid can be readily poured with-out removing the lid from the vessel, and whichwill be self-closing, and which will not open underthe steam pressure generated in the vessel.12

Yet another Leggett creation was the “EndlessNecktie” of 1904, a piece of apparel intended to aidthose who might have spilled a bit of soup on theirbow tie.13 The patent description stated:

My invention … has for its object to providea necktie consisting of an endless band thatmay be readjusted from time to time to exposea fresh surface near the ends of a tie for the for-mation of a tie-bow whenever such portionsbecome soiled or worn.14

In 1913, Leggett turned his mind to trans-portation, designing improvements for electricstreetcars, which were popular at the time. In his“Railway Car” patent of 1913, he sought to max-imize efficiency and safety of passengers by alter-ing the car’s interior.15 Instead of using “the usual

fixed, permanent seats,” he believed that “convert-ible seats” may be “adjusted to positions that willafford greater standing room for the passengers,and furnish means, which may be grasped bythem for support.”16

The automobile, though a new develop-ment, also caught Leggett’s attention. In 1914, hepatented a “Vehicle Propelling Mechanism”17 thatwas intended to “provide a structure in which theweight of the motor, employed to propel the vehicle,is used to assist the driving wheels in climbing overan obstruction or to hold the wheels back whenthey enter a depression in the road.”18 The “MotorVehicle Transmission System” was also introducedin February 1914 as “a very inexpensive transmis-sion mechanism for motor vehicles, including dif-ferential gearing and axle sections, movable to varythe speed of the axle and ground wheels.”19

J. P. Leggett’s last invention, an “AutomobilePropelling Mechanism” that was the predecessorof today’s front-wheel drive systems and far aheadof its time, was submitted for patent approvalsix months after Leggett’s death by his belovedwife, Ida.20 The patent received approval onJanuary 29, 1924.

For J. P. Leggett, life was about more thanjust bedsprings. It was about ideas and makinga difference.

In his lifetime, Leggett patented several other interesting ideasthat were not spring-related, including (from left to right) the“Endless Necktie,” “Target Trap,” “Lid for Tea Kettles,” and“Motor Vehicle Transmission System.” (Drawings courtesy ofthe United States Patent and Trademark Office.)


Leadership Changes

As soon as C. B. Platt took over the helm of thecompany, he immediately implemented severalchanges. In 1922, patent rights and assets ofMcElroy–Shannon were repurchased and thePhiladelphia plant discontinued.15 Leggett & Platt, forall practical purposes, also disassociated with the fac-tories in Windsor, Ontario, and Oakland, California.For the time being, production was restricted to themain plant in Carthage and the second facility inLouisville. Raymond F. Leggett, the older son of J. P.Leggett, managed this factory until his death on

April 1, 1922. Walter W. Hubbard, who had joinedLeggett & Platt in 1906, took over the position andeventually joined the board of directors.

Carthage Growth

Production at Leggett & Platt was concentratedin two distinct locations—Carthage and Louisville.With demand increasing, a new factory was con-structed in Carthage in 1925. The plant, located onWest Vine Street and adjacent to the Missouri PacificRailroad sidings (allowing it to place shipments ontrain cars directly from the factory’s loading docks),

28

THE MINUTES OF A CORPORATE BOARD MEETING

are typically bereft of emotion. Most are, bydesign, a record of votes, defined appropri-

ations, approved promotions, and a litany ofother matters. Leggett & Platt’s record books areno different; from the late 1880s until 1929, writ-ten in consistently fastidious handwriting, vir-tually every page has remained pristine, withno marks, scuffs, or stains.

Such was not the case, however, with theminutes from Leggett & Platt’s board meeting onMarch 27, 1929, which was called for the pur-pose of electing a president and general managerof the company after Cornelius B. Platt’s deathsix days earlier. Secretary (Dr. M. J.) McClurg,whose penmanship in the board books had beenflawless for more than 25 years, appeared shakyand uneven.1 It was even unreadable in severalplaces. A motion had been put in the form ofa resolution, and a copy of the minutes had beensent to Platt’s widow.2 The resolution, highlyunusual for the board minutes of a growingcorporation, read as follows:

March 27, 1929—It is our sad duty to assem-ble here today to appoint a successor to ourbeloved leader and friend, Mr. C. B. Platt. I, W. W.Hubbard, have known C. B. Platt for 30 years. I

knew him in his home, at his work, and at play.I think my long and intimate association with himqualifies me to speak with authority as to thekind of man he was. I never saw him angry. Inever saw the time that any employee or associ-ate of his could not go to him, not on the commonbasis of employee with employer, but as onefriend to another, and obtain his counsel andhelp. When firmness was required, he exerted it,but always tempered with kindness and consid-eration for the feelings and rights of others. Hewas ever sympathetic when sympathy was due.I never saw the day so dark he could not see arift in the clouds with at least a little sunlight shin-ing through. He radiated optimism and cheer andconfidence and loyalty. He believed this to be agood and happy world in which to live. And, in sobelieving, he made it a happy world for himself,and for his family, and for those of us who havebeen fortunate enough to come beneath the influ-ence of his personality.3

The page displaying this letter, which wassigned by six directors and Secretary McClurg,was also different in one poignant aspect. Itreflected several stains—not coffee stains or teastains, or the result of aged paper or the ravagesof time; they were stains of tears.4

AN EMOTIONAL FAREWELL


was designed for efficiency and with an eyetoward future expansions. The initialfactory, which would continue to growover the next several decades, originallycovered 49,500 feet of floor space.16 Thebuilding was considered fireproof, con-structed largely of reinforced concrete,and considered a model structure for itstime. The plant’s equipment was con-sidered state-of-the-art, and the buildingitself measured 80-by-400 feet, with a30-by-90-foot paint room and a partial base-ment where bedsprings were designed.17 Thisbuilding was so well-constructed and designed thatsections of the facility are still maintained as part ofthe Carthage manufacturing plant.

End of an Era

The new plant in Carthage allowed Leggett &Platt to continue manufacturing bedsprings withgreater efficiency, and the product would remainthe company’s staple offering for the next fewyears. Unfortunately, however, tragedy struck againon March 22, 1929, when C. B. Platt died at theage of 66. While both of the founding partners hadpassed away, they had left behind a thriving companythat was destined to grow into one of America’smost successful enterprises. Citizens and employeesheavily mourned Platt, as reflected in the front-pagearticle that dominated that day’s edition of theCarthage Press. As was also true with his brother-in-law and business partner, J. P. Leggett, Platt hadgiven liberally to community projects and was fast

to support necessary improvementswith energy, ideas, and financial dona-tions. He had been a partner with GeorgePorter in a Carthage-based wholesale

grocery business, a member of the Car-thage Board of Public Works, and a direc-

tor of the Bank of Carthage.18

Second Generation Takes Over

J. P. Leggett, Jr., son of the founding partner,took the helm of the company as president andtreasurer. He had joined Leggett & Platt in 1925, over-seeing the main offices and functioning as salesmanager, while also serving on the board of direc-tors. He had been head of the company for sometime, as he had temporarily assumed responsibil-ity for most business affairs during C. B. Platt’s longillness before his death.19 Frank B. Williams waselected as a new director, in conjunction with Leggett,Jr.’s, move to the main office.

Though Leggett & Platt was changing and grow-ing, many aspects remained the same. The companywas still largely a family enterprise, as Frank Williamswas married to C. B. Platt’s daughter, Harriet BessiePlatt. For the first time, the baton had been passedto the next generation, and it was now its dutyto uphold the success and traditions established byLeggett & Platt’s founding fathers.

J. P. Leggett, Jr., was named president and treasurer ofLeggett & Platt in 1929 after the death of C. B. Platt.

The assembly line at the Carthage factory featured a vast array of assembly machines. Leggett & Platt designed, patented, and builtvirtually all of the equipment.

C H A P T E R T H R E E

SURVIVING DIFFICULT TIMES1930–1952

LIKE MANY OTHER SMALL BUT GROW-ing companies in the United

States, Leggett & Platt enteredthe 1930s with enthusiasm anda product that was gradually gain-ing acceptance around the world.On December 18, 1929, W. W.Hubbard, vice president and gen-eral manager of the Louisville plant,reported to the board and PresidentJ. P. Leggett, Jr., that he and thecompany’s eight other salesmen hadheld a “sales convention” the pre-vious two days and “... broughtgood results; all were very enthusiastic over it, andit was the intention to make it an annual event.”2

The quality of Leggett & Platt springs wasgaining attention around the world, as evidencedby excerpts from several letters printed in aLouisville publication and sent to the manufac-turer. A group of missionaries had written the let-ters, which told of their trek carrying the springsthrough many miles of African jungle. The factthat the springs were made in sections and eas-ily reassembled at the final destination had sim-plified the challenge. According to Hubbard, thisunique construction was the only differencebetween the African-bound mattresses and thosein American homes.3

One letter, postmarked “Kongolo, Africa” andsent by Reverend Eugene Hendrix Lovell, thanked

Hubbard for the gift of the springsand told of the missionary’s plightwhen, for two months, he wasforced to sleep on another manu-facturer’s springs:

We tried the Belgian springsat first, but they were terrible. Theyuse large bolsters under the mat-tress to hold the head up. So I gotbusy right away and assembledthe spring you gave me, and now—oh, how we sleep. … One has tohave sleeping comfort here in Africa

if one expects to do good work. How appreciativewe are of your gift, and you cannot know howhappy we are to use them. They are a thousandtimes better than other springs.4

Another letter from the Reverend John G.Barden of New York City, who had slept on thesprings while on a mission to Africa, recommendedthat “ … all who were home on furlough and plannedto return to Congo would do well to purchase Leggett& Platt springs for their beds and thus assure them-selves of comfortable sleep.”5

All … would do well to purchase Leggett & Platt springs for their bedsand thus assure themselves of comfortable sleep.

—Reverend John G. Barden of New York City, advising missionaries bound for Africa1

Employees work on individual tables at Leggett & Platt’s BedSpring Assembly Department in the 1930s.


Leadership Changes

While customers around the worldpraised Leggett & Platt’s products, mat-ters on the home front began to take adifferent and difficult turn. In August1930, the minutes of the monthlyboard of directors meeting reflectedthat turn: “On account of unsettledconditions and decreased earningscausing the present temporary depres-sion, the board thought it best to passup a dividend at this time. All hopeful of a turn forthe better in a short period of time.”6

By September 1931, matters had not im-proved, so company directors approved reductionsin the salaries of several employees, “cuttingexpenses wherever possible.” In July 1932, thedirectors unanimously voted to reduce theirfees by 40 percent.7

In October 1932, J. P. Leggett, Jr., who was suf-fering from health problems, stepped down as thecompany’s president. In an effort to keep family mem-bers as the company’s leadership, Frank B. Williams,who was married to C. B. Platt’s daughter, Bess, tookthe helm as interim president. The couple resided

on Grand Avenue in the Platt home, which was builtby the same architect at essentially the same timeas the Leggett family home across the street.8

The following year, the Carthage plant began toreap some benefits from an expanded product line-upthat included innerspring units for mattresses. Untilthen, the company’s manufacturing lineup consistedsolely of bedsprings and box springs (foundations for

32

Left: Frank B. Williams, who was married to C. B.Platt’s daughter, served as interim president ofLeggett & Platt after J. P. Leggett, Jr., steppeddown from the position due to illness.

Below: This photo shows a section of theshipping room of the Carthage factory circa1930. This particular area was devoted tocrating innerspring units on the Leggett-designed compressed-air baler. Innerspring unitsarrived at the crating area from the assemblersvia an overhead track and were placed on the

crating press (far left) for compression into bundles. The manshown on the right uses a wheelbarrow to deliver crated units tothe warehouse.

C H A P T E R T H R E E : S U R V I V I N G D I F F I C U L T T I M E S 33

mattresses).9 While the Leggett & Platt bedspring hadlong been a comfortable foundation on which beddingwas placed, innerspring units, which were wrappedwith bedding materials, were becoming more indemand by mattress makers.

The company’s reputation for excellence in man-ufacturing was also growing in 1933 through itsadmission into the National Association of BeddingManufacturers (NABM), which welcomed Leggett &Platt to its membership, hailing the company’s suc-cess as nothing short of amazing.10 Founded in 1915,the bedding organization promoted state tagginglaws and researched issues that affected consumerhealth. Its recognition of the company strengthenedLeggett & Platt’s national reputation.11

In 1934, another member of the founding fam-ilies joined the company’s leadership ranks. HarryM. (“Mack”) Cornell, Sr., who was married to J. P.Leggett’s daughter, Marjorie, was elected to the boardof directors. In 1935, he became the company’s vicepresident and sales manager. Although he joinedLeggett & Platt with only a high school education,Cornell was known for his outgoing personality andwas truly gifted when it came to building relation-ships. His gregarious spirit and superior sales talentleft a permanent impression on the people who knewhim and on the company itself.

Outside Leadership

In 1935, Leggett & Platt’s leadership wouldagain undergo change. When Walter W. Hubbardpassed away following complications from an appen-

dix operation, Edward B. Casey, Jr., a nativeKentuckian and bedding salesman, was hired asmanager of the Louisville plant.12 Casey made animmediate positive impression on the company’sleaders. In 1938, he was named a vice presidentof the company and, in 1943, a member of theboard of directors. He served on the board through1964 and as vice president through 1967. One ofthe company’s most respected and able managers,Casey hired or guided several of Leggett’s futuremanagers and leaders.

In early 1935, after the death of an associatein another business forced him to take over mattersin that organization, the company’s president, F. B.Williams, passed operational responsibilities toGeorge S. Beimdiek, Sr., a board director with thecompany since 1933. Initially, Beimdiek was namedvice president and treasurer of the company andWilliams retained the title of president. Beimdiek,however, assumed responsibility for the day-to-

day operations of the company.13

Beimdiek was born in St. Louisand moved to Carthage after graduat-ing from Benton College of Law in St.Louis in 1905. Rather than practicinglaw, Beimdiek chose to use his skillsfirst in the quarry business, and laterin banking and investing, before be-coming a director with Leggett & Platt.While Beimdiek was the first head ofLeggett & Platt from outside of thefounding families, he was indisputablydedicated to the company’s operations

Above right: Harry M. Cornell, Sr. (far right)discusses business with engineer Carl Kirchnerand another unidentified Leggett & Plattemployee. Cornell joined Leggett & Platt’sboard of directors in 1934 and became vicepresident and sales manager in 1935.

Right: Edward B. Casey, Jr., managed theLouisville plant before he became a Leggett &Platt vice president in 1938; he was elected tothe board of directors in 1943 and wasinstrumental in establishing the Winchester,Kentucky, factory.


and its bottom line. Still, some believed thatBeimdiek’s lack of lineage might have been a fac-tor contributing to his support of selling the com-pany soon thereafter.14

On December 14, 1935, the L. A. Young Springand Wire Corporation offered to acquire Leggett &Platt for $250,000. L. A. Young Spring and Wire wasan automotive and bedding components manufac-turer whose leadership included members of thePlatt family who had left Leggett & Platt but retainedstock in the company. The Platts joined Beimdiek inpushing for the sale.15

To vote on whether or not the sale would takeplace, stockholders called a special meeting atyear’s end. Prior to the vote, Harry M. Cornell, Sr.,who favored keeping the company, borrowed moneyto purchase additional shares of stock and workedto obtain voting proxies from longtime sharehold-

ers. When the vote took place on December 30,1935, the resolution, which required 3,750 sharesto pass, fell short by only 23 votes. For the timebeing, Leggett & Platt Spring Bed and Manufac-turing Company of Carthage, Missouri, wouldremain intact.16

Ebb and Flow

The following year was one of the most profitableperiods to date for Leggett & Platt, with net profitsexceeding $50,000. In December 1936, the stock-

34

Left: Ink blotters served as popular advertising tools in the 1930s,providing consumers and retailers a low-cost, useful itemimprinted with a creative advertisement that caught people’sattention. Here, Leggett & Platt compares the Dionne quintupletsto its own “children” named Experience, Promptness, Reliability,Quality, and Satisfaction.

Below: Harry M. Cornell, Sr. (left) and George S. Beimdiek, Sr.(seated center) are photographed with Glenn Joyce (standing) alongtime employee and significant contributor to Leggett & Platt’smanufacturing efforts; Ula Payton (facing camera); and anothermember of the office personnel. In the mid-1930s, Cornell was incharge of the sales staff, while Beimdiek served as president.

holders approved an 8-for-1 split of the shares,increasing the number of shares to 40,000.17

At the time, Beimdiek informed shareholdersthat due to concerns over increasing prices anddelivery uncertainties in regard to steel, wire, andother products, the board deemed it advisable to keepconsiderably more raw materials in stock than wascustomary. Raw materials comprised part of the lossexperienced in January and February 1937, whenseveral weeks of steady rainfall led to the floodingof the Ohio River and, in turn, damaged the Louisvilleplant. While the flood devastated some businessesin the area and forced others to close permanently,Leggett & Platt’s operations in Louisville incurred onlysome $7,000 in recovery costs, largely for the moving,storage, and cleaning of material and finished stock.Luckily, even though more than 11 feet of waterhad filled the factory’s first floor, the machineryremained virtually undamaged.18

Nevertheless, the Louisville operations movedfrom 117 North Fifth Street, which extended throughto Bullitt Street, to an adjacent Bullitt Street buildingthe company had already rented for its innerspringproduction operations.19 While at first it appearedlikely the operations would return to the Fifth Street

location, an explosion at a neighboring plant dam-aged the Leggett & Platt building and delayed oper-ations for almost three weeks.20

With production at the Louisville plant amount-ing to some 60 percent of the company’s total salesat the time, a new location seemed imperative. In1937, the company moved to a 60,000-square-foot building at 25th and Maple Streets, which it pur-chased for $30,000.21 A fire at the new plant in August


Above: Leggett & Platt’s office and factory personnel gather for aphoto outside the Carthage factory in 1936.

Below left: The Carthage plant was fairly small prior to WorldWar II, before a two-story expansion on the rear of the buildingmore than doubled its size.

Below right: Construction was completed on the original Dallasfactory in the 1930s. This early aerial photo shows the facilitylocated on Oak Lawn Avenue in what is today downtown Dallas.Within the next decade, due primarily to city politics and theincreasing value of the property, Leggett & Platt would sell theland and move its operations 35 miles south to Ennis, Texas.


caused more than $8,000 in damage, but fortu-nately nobody was hurt, and operations continuedwithout interruption.22

While George S. Beimdiek, Sr., had led thecompany’s operations for nearly three years, hehad done so as vice president and treasurer. (In1937, his title was changed to vice president,treasurer, and general manager.) In February 1938,F. B. Williams relinquished the presidency andwas elected chairman of the board; Beimdiek waselected president, treasurer, and general managerof the company.23

As operations began to settle down in Louisville,Leggett & Platt opened a factory in Dallas, Texas,in September 1938 in an attempt to capture addi-tional sales originating in the state. James W.Odor, who was hired in 1918 as a salesman, wasplaced in charge of the Texas plant. Odor knewthe growing customer base and its needs very well.In 1939, Odor was named a vice president ofthe company.24

To equip the Texas factory, Leggett & Plattacquired the equipment of the Daltex Company, asmall bedspring manufacturer, and shipped addi-

36

GEORGE S. BEIMDIEK, SR., was born in St. Louis in1876, one of 10 children.

Raised and educated in the city,he worked for the Fourth NationalBank in St. Louis as a youngman, while attending night classesat the Benton College of Law.He was admitted to the bar in1905, the same year he movedto Carthage, Missouri.1

In Carthage, Beimdiek helped organize theSuperior Limestone Company and played a promi-nent role in the development of the white limestonebusiness in the city. He was treasurer of Superiorand later served as president and general man-ager of the Carthage Marble and White LimestoneCompany until 1927, when that business andother Carthage quarries were consolidated to cre-ate the Carthage Marble Corporation (a companywell-known to longtime Carthage residents).2

From 1927 until 1931, Beimdiek was pres-ident of the First National Bank of Carthage, whichmerged with the Central National Bank in 1931.

He was also one of the early direc-tors of the Jasper County Savingsand Loan Association, serving onits board from 1931 to 1943.3

In 1932, Beimdiek organizedthe BV Realty & Investment Com-pany with B. L. Van Hoose andremained active in that busi-ness until he was named presi-dent of Leggett & Platt. He joinedLeggett & Platt’s board of direc-

tors in 1933 and became a vice president andtreasurer in 1935, assuming responsibility for theday-to-day operation of the company. In February1938, he was elected president, treasurer, andgeneral manager.4

Beimdiek never actively practiced law, buthis legal training and writing skills, as well as hisknowledge of real estate, accounting, and bankingwere of significant value to the then-small Leggett& Platt. In the months before and after he becamepresident, the minutes of the company’s boardmeetings reflected many interesting manifestationsof Beimdiek’s business and legal experience.

GEORGE S. BEIMDIEK, SR.PRESIDENT, 1938 TO 1953


tional equipment to the Dallas operation from theCarthage plant.25

With its operations consolidating and becomingparticularly strong in Louisville, sales for 1939would increase by 27 percent, producing a $1.57dividend for shareholders, more than triple the1938 dividend of $0.45 per share.26

Challenges of War

Leggett & Platt’s Texas operations were becomingprofitable for the first time when World War II broke

out in Europe. By the end of 1940, as raw materialsincreased 7 percent and labor costs rose 8 percent,the company reported only a 5 percent increase insales. To battle declining profits and rising competi-tion, Leggett & Platt installed better machinery andfocused on improving efficiency.27

As the price of raw materials rose to premiumlevels in 1941, Leggett & Platt turned to defensecontracts and diversification to remain afloat. Thecompany began selling its machining, tooling, andengineering capabilities to a range of industries,including aerospace. During this time, Carl Kirchner,

For example, in late 1937, the company eval-uated the purchase of the Daltex Company, aDallas-area spring-making business interested inselling to Leggett & Platt. Beimdiek led a small com-mittee of Leggett executives on a trip to investigateDaltex as well as other Dallas area properties.5

The board decided not to purchase theDaltex property, but later acquired its spring-making machinery and moved it to a more attrac-tive location (four acres of land and six build-ings) that Leggett & Platt purchased in Dallas.6

With the board’s authorization, Beimdiek guidedthe real estate and machinery purchases, asreflected in the detailed documents of sale in com-pany records.7

Beimdiek’s knowledge of law, real estate, andbusiness was also apparent in other Leggett & Plattendeavors. A month before the Dallas land andmachinery purchases, Beimdiek and Edward B.Casey, Jr., vice president of Kentucky operations,negotiated the purchase of a new building and twoacres of land in Louisville. During the same period,the company completed a complex recapitalizationprocess, and researched and applied for patentson various spring-making machinery (primarilythe inventions of Carl Kirchner, the company’smechanical genius). Beimdiek’s broad experi-ence and capabilities were well applied in all ofthese company transactions.8

Beimdiek also took pleasure and some pridein writing Leggett’s annual reports and letters toshareholders. Beginning in 1936 and continu-ing through 1952, he authored the “Letter toShareholders” in 17 annual reports.

In 1910, Beimdiek married Ida Brinkerhoff,whose father was one of the founders of FirstNational Bank of Carthage and served as its pres-ident for many years. The couple had one son,George S. Beimdiek, Jr., and a daughter, Martha.9

Many years later, following his death in1963, family members were asked by a grand-son to describe George S.Beimdiek, Sr. They remem-bered him as kind, sincere,active in civic and communityaffairs, religious, and “greatwith numbers.”10

George S. Beimdiek, Jr.

George Beimdiek, Jr.,attended the University ofMissouri–Columbia, wherehe earned his bachelor ofscience degree in businessadministration. He worked at a St. Louis broker-age before returning to Carthage in 1937 tobecome president of BV Realty & InvestmentCompany, which his father had cofounded.11

In 1959, when ill health caused Beimdiek,Sr., to resign from the board, he recommendedhis son to be nominated as a director.12 George S.Beimdiek, Jr., was elected that year and servedas a Leggett & Platt director from 1959 to 1985—the same length of time (26 years) his fatherserved on the board (1933 to 1959).

George Beimdiek, Jr., died in 2007 at the ageof 94, while this book was being written.


an innovative engineer who joined the companyin 1923 and greatly helped advance Leggett’sengineering capabilities, developed the first semi-automatic, double-sided assembly machine for usein innerspring unit production. The machineenabled the company to reduce its costs and, in time,would help the company rapidly return to pre-warproductivity levels.28

As a result of the company’s progressive andupbeat outlook, Leggett & Platt experienced recordsales in 1941. The majority of profits came fromdefense work, which concerned the board of direc-tors with regard to the company’s ability to con-tinue manufacturing products for civilians. The gov-ernment was rationing raw materials, with prioritygiven to products associated with the war effort. Inthe 1941 Annual Report, President Beimdiek toldshareholders:

Raw materials are becoming increasingly difficultto obtain, both because priorities granted to the bed-ding industry for civilian manufacture are not suffi-

ciently high to obtain the raw materials, and alsobecause of the increasing demand of direct defenseindustries on the producers of steel and wire. In addi-tion to the above, certain limitation orders have alsobecome effective and others are in the making, ren-dering it impossible to determine to what extent yourcompany may expect to continue in the manufactureof goods for civilian use.

Government requirements of our products arecomparatively limited, but your company is doingeverything possible to obtain a fair share of thisbusiness. Competition in this line is extremely keenas most, if not all, manufacturers of bedding prod-ucts are experiencing extreme difficulty in obtainingraw materials for civilian manufacture.

38

The Leggett & Platt board of directors in the late 1940sincluded (from left to right) George S. Beimdiek, Sr.; George E.Phelps; C. E. Platt; Edward B. Casey; Harry M. Cornell, Sr.;J. A. McMillan; and J. E. O’Keefe.


Your company’s machines and equipment canproduce little that is required in the war effortother than its regular line of products. For manymonths, we have diligently pursued a policy oftrying to find products required in the defenseefforts which might be manufactured with our exist-ing machinery and personnel. We have experiencedsome small success, but for the most part we areadvised that there is little that we can producewhich can be used under the present setup. Yourcompany, and with your approval, I am sure, isready and willing to make a complete conversionto war products, if by so doing we can contribute inany measure to the successful carrying out of ournational war effort.29

Idleness and Hope

In 1942, with its operations expanding beyondjust spring bed coils, Leggett & Platt Spring Bed and

Manufacturing Company shortened its name toLeggett & Platt, Incorporated.30

While many Leggett & Platt employees wereoff to war or redeployed to war-related indus-tries, defense work continued to serve as thecompany’s primary source of income. However,this was not the type of work that would turn asignificant profit.31

Problems also began to arise in Texas when agroup of prominent citizens formed a medical foun-dation and began plans to establish a premiermedical school and clinic. They believed the Leggett& Platt property at Harry Hines Boulevard andOak Lawn Avenue was the perfect location for theirschool, as it adjoined the city- and county-ownedParkland Hospital.32 Through negotiations, Leggett& Platt formed an agreement with the foundationto exchange the Dallas property for land and abuilding that would be built to Leggett & Platt spec-ifications at an undetermined location. As con-struction of the new facility would not start untilthe war ended, Leggett & Platt continued operatingat the Dallas site.33

With intense restrictions on raw materialsthroughout 1943, many Leggett & Platt machines

A company truck at the Louisville plant loads up for deliveries.Flex-O-Top is a trademarked Leggett & Platt brand.


were left idle, and the company ended the year withan 18 percent drop in sales. Nevertheless, Leggett &Platt remained optimistic and dedicated. In his letterto shareholders, dated April 5, 1944, Beimdiek wrote:

… officials of the company consider the work ben-eficial to the war effort and it also assists in the con-tinuing employment of our experienced employees. …

So long as the production of civilian merchandiseis limited by the necessities of war and the govern-mental restrictions and regulations continue, thecompany’s operations will be adversely affected. …[However,] the cost to reconvert for the resumption ofpeacetime operations should not present a seriousproblem. With the easing of restrictions on produc-tion of civilian goods, the company anticipates asubstantial volume of business in supplying theaccumulated demand of the public.34

As the Allies beefed up their forces overseasin 1944, a shortage of manpower at home forcedLeggett & Platt to close its Dallas operations in Mayand continue servicing Texas customers throughthe Carthage plant’s output.35

A shortage of workers also forced the companyto move assembly operations fromthe Louisville plant to a rented ware-house 110 miles away in Winchester,Kentucky. At the time, raw materialshortages had reduced the company’sproduct lineup from 40 styles ofbedsprings to only one, but the com-pany had since expanded into themanufacturing of cushion springs forthe furniture industry.36

Oscar “Bud” Hougland was sentfrom the Louisville plant in July 1944to manage the Winchester operations.Hougland, who started as a factoryworker at the Louisville plant in the early 1930s, hadbeen promoted several times—from coiler and assem-bler, to foreman of the assembly department, to

general foreman at Louisville, to superintendent ofthe Dallas, Texas, plant. In May 1944, Houglandmoved back to work at Louisville and was askedshortly thereafter to move again and establish thenew assembly operations in Winchester.37

By the end of 1944, with the tide of the warchanging, Leggett & Platt had fulfilled nearly all of itsobligations for the war effort and operated almostentirely for commercial production.38 Anticipating areturn to operations in Dallas, Leggett & Platt con-tinued working toward the exchange of propertiesand succeeded in locating a suitable new site.39

Aftermath

As the war wound down in 1945, Leggett & Plattbegan to recover slowly. Sales for the year exceededthe three prior years, but had not yet returned topre-war levels. During the initial post-war years, rawmaterial supplies became more difficult to obtain, afactor complicated by a rash of labor disputes thatdelayed operations at the nation’s steel plants.Operations were further complicated by consumerdemand for a better grade of bedsprings and inner-springs, which Leggett & Platt supplied as materials

became available.40

In Dallas, manufacturing re-sumed on a limited basis. The planthad hired a new crew of inexperi-enced workers and was making littleheadway in the production of inner-springs. As a result, Carthage was stillproducing bedsprings for the Texasterritory. To add to the frustration,the city of Dallas had now decided toextend its airport operations to encom-pass the property selected for Leggett& Platt’s new site.41

A shortage of experienced laborin Louisville also slowed operations there, leavingthe facility to produce parts that were then assem-bled in Winchester, where labor was plentiful.Consequently, the company purchased its Win-chester facility in April 1946 and, with the day-to-day guidance and direction of Hougland, beganinstalling machinery and increasing production atthat location.42

In 1946, Leggett & Platt also solved its Texasdilemma with the purchase and remodeling of a

40

Oscar “Bud” Hougland joined Leggett & Platt in 1931, working inthe bottom wire and top-bending department at the Louisville plant.He was promoted several times through the years and eventuallyestablished the new assembly operations in Winchester, Kentucky.


cotton warehouse in Ennis, Texas, located 32 milessouth of Dallas on the Southern Pacific Railroadline and U.S. Highway 75. As before, James Odorwould be responsible for the Texas plant. Conductingbusiness in the mid-1940s had proved quite anordeal, but business was beginning to improve asLeggett & Platt considered expansions to its Carthageand Winchester plants.43

An experienced management team was also inplace. Harry M. Cornell, Sr., vice president and salesmanager, was steadily improving the company’ssales force and participating in product develop-ment discussions. Fred Bouser and his son-in-law,Bud Hougland, ran the Louisville and Winchester,Kentucky, operations and reported to Edward Casey,Jr., a company vice president. Odor, a longtime em-ployee and company vice president, was in chargeof the newly established Ennis, Texas, plant. C. GlennJoyce, plant superintendent, and Carl Kirchner, atalented mechanical engineer and inventor, contin-ued to improve the machinery capabilities and fac-tory efficiencies at the Carthage plant.44

In March 1946, Cornell, Casey, Hougland, andOdor conferred with Glenn Joyce at the Carthagemanufacturing plant, comparing production meth-

ods and machinery efficiencies in hopes of increas-ing production and improving the machineryarrangements at all locations.45

Growing Demand

By the end of 1947, Leggett & Platt was report-ing a year of record growth. Due to increasing demand

Above: The original plant in Ennis, Texas, produced innersprings,all-wire bedsprings, and some furniturecomponents. By the end of 1948,Leggett & Platt was already planning thefacility’s first expansion.

Right: For many years, Carl Kirchner wasrecognized as Leggett & Platt’s machineryand product development expert. Heinvented and improved many products aswell as machinery for the company.Records today still include 11 approvedpatents filed by Kirchner on behalf ofLeggett & Platt.


for box springs to replace open-coil bedsprings, allplants began producing a complete line of boxspring constructions for sale to mattress manufac-turers in their respective territories.

The Louisville plant was back at capacity andan additional 30,000 square feet of floor space wasbeing built at Winchester. A contract was signedto begin work on another 23,000 square feet of spaceat Carthage to produce innersprings, rollaway beds,and furniture components. In addition, inner-springs, all-wire bedsprings, and some furniturecomponents were being produced at the Ennis plant,although it was not operating at full capacity. Thecompany had also rid itself of the Dallas site, sellingit at a profit.46

Although obtaining raw materials remained achallenge and cost the company a premium at times,Leggett & Platt’s net worth at the end of 1947 wasreported as $1.2 million, a fivefold increase over the1936 figures of $282,000.47

Expanding Operations

Expansion continued in 1948, costing the com-pany upward of $400,000 for property and equip-ment. Savings, however, were gained as Leggett &Platt produced a considerable amount of new equip-ment through the expertise of fully equipped machineshops at all of its plants. Every plant was also locatedon a railroad spur for more economical handlingof finished product and raw material.48

In Carthage, production of innerspring unitsfor mattress makers and cushion springs for uphol-stered furniture cushions moved to the newly com-pleted addition to the plant, while the original partof the building was retained for manufacturing bed-springs, rollaway beds, and upholstery construc-tions. In addition, the Carthage business officesmoved from 600 West Vine Street on the north sideof the building to the central part of the building at600 West Mound Street, and the former office spacewas converted to a machine shop.49

The Winchester expansion was nearly completedin 1948, bringing the site’s total space to 53,000

42

Left: In the late 1940s, Leggett & Platt products were shippedfrom plants in Carthage, Missouri; Louisville and Winchester,Kentucky; and Ennis, Texas.

Below: This photo, taken in June 1950, shows 78 of theemployees at the Winchester plant in Kentucky.


square feet. The company also planned to expandthe Ennis operations at a cost of $50,000.50

New Challenges and Opportunities

As a new decade unfolded, labor strikes con-tinued to plague the steel industry, although theysubsided with the onset of the Korean War in June1950.51 Leggett & Platt began automating itsprocesses wherever possible, and continued tomanufacture much of its own equipment whilepurchasing other machines designed specificallyfor the bedding industry.52 The addition to the Ennis,Texas, factory was completed in 1950, and the com-pany started placing direct-to-customer advertise-ments in magazines such as Good Housekeepingand Living for Young Homemakers.53

In 1950, another member of the founding fam-ilies, Harry M. Cornell, Jr., joined Leggett & Platt.Harry, son of Harry “Mack” Cornell, Sr., and grand-son of company cofounder J. P. Leggett, had spent

a considerable amount of time at the Carthagefactory, exploring it when his father worked week-ends and working as a laborer and production workerduring the summers. Harry had just completedhis college education in business administrationand marketing at the University of Missouri whenhe formally joined the company as a sales officeassistant in Kentucky.

Unfortunately, at year’s end, the company losta member of one of the founding families with thepassing of C. E. “Jack” Platt, son of Cornelius B.Platt. Jack had served on the board of directors since1947 after retiring from the Windsor, Ontario, oper-ations of the L. A. Young Spring and Wire Company.Upon returning to Carthage, Jack had started theFlex-O-Lator Company, which supplied seating prod-ucts to the automotive industry.54 W. E. Carter,president of the Bank of Carthage, was electedto fill Jack’s seat on the board.55

By the end of 1951, Leggett & Platt’s 94 share-holders lived in 17 U.S. states and Canada,56 with

EXECUTIVE LEADERSHIP1883 TO 2008

J. P. LEGGETT & C. B. PLATT

1883 – 1901

J. P. LEGGETT

1901 – 1921

C. B. PLATT

1921 – 1929

J. P. LEGGETT, JR.1929 – 1933

FRANK B. WILLIAMS

1933 – 1938

GEORGE S. BEIMDIEK, SR.1938 – 1953

HARRY M. CORNELL, SR.1953 – 1960

HARRY M. CORNELL, JR.1960 – 1999

FELIX E. WRIGHT

1999 – 2006

DAVID S. HAFFNER

2006 – present


more than half owning at least 100 shares of stock.The shareholder mix was more female than male,consisting of 34 men and 43 women; the remain-ing shares were owned by joint, fiduciary, or othershareholders.57

This era proved challenging for the company.Unlike the World War II period, when it receivedmany production contracts, Leggett & Platt hadbeen unable to secure any defense contracts sincethe Korean War began, despite submitting severalbids.58 In addition, conflict at home was cause forconcern, as labor unions clashed with the govern-ment over wage controls and other developmentsstemming from the war mobilization process.This culminated in a union boycott of the gov-ernment agencies put in charge of mobilizationefforts, followed by the establishment of the NationalAdvisory Board on Mobilization Policy by PresidentHarry S. Truman. That advisory board subse-quently issued a report cautioning against build-ing up the military and recommending only a slightincrease in production for mobilization.59 The report

also called for controls over wages, pricing, inter-est rates, and business credit. Company PresidentGeorge S. Beimdiek, Sr., reported that these con-trols were contributing to a “cloudy” business atmos-phere.60 As a result, he hesitated to predict anyexpectations for the coming year because of a prob-able increase in the costs of steel and wire from apending strike.61

The conflict between labor and governmentreached fever pitch in 1952 when President Truman,threatened with a nationwide steel strike, seized con-trol of the industry.62 Before his actions could be ruledunconstitutional, the United Steelworkers, Congressof Industrial Organizations (CIO), began a work stop-page that ultimately lasted 53 days.

44

Company President George S. Beimdiek, Sr. (left) isphotographed at the main office at 600 West Mound Street inCarthage in 1952. Beimdiek, Sr., stepped down the followingyear due to illness and was replaced by Harry M. Cornell, Sr.


The strike complicated government regulationsallotting steel and forced Leggett & Platt to beginimporting the material from Belgium at higherprices.63 Rather than raise costs to customers, how-ever, the company stayed in line with industry pric-ing, and subsequently suffered from reduced prof-its due to higher material costs.64

Wire, however, was available, so the companyseized its opportunity to diversify. By the end of1952, bedsprings made up only 20 percent of thecompany’s total sales, with the balance gener-ated by innersprings for mattresses, furniture com-ponents, folding cots, box springs, and other prod-ucts for mattress manufacturers, furnituremakers, and dealers.65 From 1935 to 1952, thecompany had reinvested nearly $2 million in diver-sifying its product line, and the results were nowbecoming evident.66

End of a Difficult Chapter

At its meeting on December 16, 1952, the boardof directors noted the recent passing of Frank B.Williams, a former president and director of the com-pany. It also heard company President Beimdiek’s

thoughts about his imminent retirement. Accordingto meeting minutes, “Mr. Beimdiek suggested that thedirectors be thinking of someone to replace himas president of the company, stating that his age [76]was such that he probably should retire but thathe would like to remain on the board.”67

In April 1953, in a letter to the board, Beimdiekwrote, “In view of the seriousness of my recent ill-ness, I deem it advisable to relieve myself of theobligations incident to the presidency of Leggett &Platt, Incorporated.” Beimdiek’s resignation wasaccepted and shortly thereafter the board unani-mously elected Harry M. Cornell, Sr., as the com-pany’s new president.68

The 1935 shareholder proposal to sell Leggett &Platt, led by Beimdiek, Sr., and successfully opposedby Cornell, Sr., was, predictably, a contest neitherman forgot. Despite the uneasiness between them,they managed to move Leggett & Platt out of theGreat Depression and through a flood, a fire, twowars, and labor and material shortages. Their goodwork, along with the efforts of many fine managersand employees, made it possible for the companyto survive and grow. Under the circumstances, itwas a difficult and remarkable feat.

Leggett & Platt advertisements were commonly placed in publications such as Good Housekeeping and Living for YoungHomemakers in the early 1950s.

C H A P T E R F O U R

LEADERSHIP1953–1969

IN APRIL 1953, THE LEGGETT & PLATT

board of directors unanimouslyelected Harry Mack Cornell, Sr., son-

in-law of company cofounder Joseph P.Leggett, as the company’s new president.Known simply as “Mack” by his friends,coworkers, and customers, Cornell, Sr.,joined the board in 1934 and became anemployee and sales manager in 1935. Hewas an optimistic, courteous, unselfishperson, as well as a relationship builder. Alongtime director of the company describedhim as “the most complete people person Ihave ever known.”2

In 1930, Leggett & Platt employed only ninesalespeople, including one facility manager who alsoworked as a salesman. Company records do notreveal the number of sales people working when Mackbecame sales manager in 1935, but by 1951, he andthe management team had recruited a capable staffof 31 sales representatives who resided in 20 statesand sold in many more.3

Mack Cornell’s Starting Lineup

Mack’s initial challenge as president was not tobuild a sales team, but to find ways to grow the com-pany profitably in an increasingly complex and com-petitive market. Predictably, three of his importantacts as a new president in 1953 involved the pro-motion of competent and trustworthy employees.

First, he appointed C. Glenn Joyce, long-time Carthage plant superintendent, as a

company vice president and operationsmanager. Joyce had been recentlyappointed to the board of directors

to complete the unexpired term ofveteran director, John O’Keefe, who died

the previous year. Second, with Mack’s support, Joyce

recommended to the board that HarryCornell, Jr., be hired to manage the Ennis,

Texas, plant. Since James Odor’s retirement,the plant’s performance had suffered from a lack

of consistent management and leadership. The boardgave unanimous approval to the appointment.(Despite his age of 24, Harry had already earnedthe respect and confidence of the board members.Glenn Joyce, for example, had observed Harry’s hardwork and people skills during his two summers ofemployment at the Carthage plant, and Edward

We had to really get energetic and not be afraid of competition and shakingthe markets.

—Harry M. Cornell, Jr.1

Debuting at a Dallas trade show in January 1960, the image ofa smiling, black-and-white cat lounging in a Bonnell coil wascreated by the marketing department in Ennis, Texas. It gracednumerous corporate materials, including the Annual Report, formany years. Some claim the logo stems from a real cat thatused to enter the plant and curl up in a coil atop a workbench,while others say the image was created to demonstrate thecomfort of the coils.


Casey, Jr., had employed Harry asa sales office assistant and traineeat Louisville, recognizing his organiza-tional and leadership talents.)

Third, at the September boardmeeting, Mack and Joyce asked thedirectors’ opinions about promotingthe Missouri territory salesman, RalphV. Johnson, to assistant sales man-ager. In this position, Johnson wouldgradually take on Mack’s responsi-bilities as sales manager. The boardapproved the promotion, and Johnson began thenew job on January 1, 1954. (Johnson eventuallybecame Leggett & Platt’s vice president of sales,

serving as a mentor and inspirationfor a generation of people in customerservice and sales.)4

The Leggett & Platt leadershipteam consisted of four other experi-enced managers: Frank E. Ford, whohad joined the company in 1946 andwas elected corporate secretary andtreasurer the month before MackCornell became president; EdwardCasey, Jr., who continued to lead theKentucky operations; Fred Bouser, who

managed the Louisville plant; and Bud Hougland,who managed the Winchester plant.5

By the end of 1953, Mack had a team in placeto meet the challenge he described in the company’sannual Letter to Stockholders:

In the highly competitive market in which weserve it is more vital than ever before to keepcosts at the lowest possible level. To this end, anintensive cost reduction and control program isbeing placed in operation. Every phase of the busi-ness has or will be scrutinized for purposes ofeffectuating economies and obtaining new andadditional outlets for the products we are capableof manufacturing.6

48

Above: Glenn Joyce served as a Leggett & Platt vice presidentand operations manager in the 1950s, providing dependableleadership through many years of company growth.

Below: Frank Ford stands among the Carthage plant’s inventoryof rollaway beds and bedsprings that were finished in a popularaluminum color. Ford had joined the company’s payrolldepartment only a few years before this photo was taken in theearly 1950s.

C H A P T E R F O U R : L E A D E R S H I P 49

Despite soft fourth-quarter sales in home fur-nishings and bedding, net sales for 1953 were thebest to date—$5.1 million, up 12 percent over 1952.In the first year of Mack’s presidency, all of Leggett& Platt’s factories realized a sales increase. At Ennis,Texas, where Harry had been assigned, sales rose128 percent. After-tax income for the company asa whole was up 9.8 percent to $249,900.7

Following a slight decline in sales and earningsin 1954, the company enjoyed a healthy reboundin 1955. Net sales were $6.1 million, up 23 percentover 1954, and net earnings were $279,403, upnearly 30 percent from the previous year.8

Sales and earnings at the Ennis, Texas, opera-tion continued to improve steadily, and early in 1955,the board of directors unanimously elected Harry

Cornell, Jr., as a vice president of the company. Forthe next four years, the company’s three operatingvice presidents—Casey, Joyce, and Cornell, Jr.—pro-vided dependable operational leadership.

Increasing Sales and Adding Capacity

The company’s sales team moved Leggett &Platt’s net sales to modestly higher, record levels in1956, 1957, and 1958 ($6.34, $6.38, and $6.71 mil-lion, respectively). Although the company was prof-itable all three years, aggressive competition made itnecessary to restrain or lower prices, and profits wereheld below the level achieved in 1955.9

In 1956, Leggett & Platt completed a 17,460-square-foot warehouse expansion at Carthage and

HARRY M. CORNELL, SR.PRESIDENT, 1953 TO 1959

HARRY M. “MACK” CORNELL,Sr., was born in Carthage,Missouri, in 1900,

and attended the Carthageschools. After graduating fromhigh school, Cornell went to workin the Oklahoma oil fields as adriller. From that position hesecured work with the Stan-dard Oil Company drilling wellsin Sumatra, Dutch East Indies.1

In 1927, between two four-year contractsoverseas, Mack came home to Carthage where,on November 5, he married Marjorie Leggett,a former classmate, who was the daughterof J. P. Leggett. Described as charming andintelligent, she was a strong supporter ofthe company her father had cofounded. Beforethe year’s end, the couple returned to Su-matra, arriving in time to begin Mack’s sec-ond contract. In October 1928, they had ason, Harry M. Cornell, Jr.2

When the oil-drilling contractexpired at the end of 1931, theCornell family returned to Car-thage where Mack sold life insur-ance and served as City Clerk. In1934, he joined the Leggett & Plattboard of directors, and in 1935, hebecame the company’s vice pres-ident and sales manager.3

Those who knew him remem-ber Mack as outgoing and person-

able, a kind and considerate man who treated oth-ers with respect. He was everyone’s friend—employees and customers alike. Many say his per-sonality became ingrained in the company andremains prominent in its culture to this day. As aperson with a keen intuition, Mack was a naturalsales manager. His investment in relationshipspaid dividends to the company for years to come.

Mack served as president of the companyfrom 1953 through 1959 and remained its chair-man until his death in 1982.4


acquired additional property at Winchester andEnnis. In 1957, a 12,500-square-foot warehouseexpansion was completed at Ennis, and in April 1958,the board approved a 15,000-square-foot addition forthe Texas location. At the October 1959 board meet-ing, the directors approved plans for a new 40,000-square-foot facility at Winchester and authorizedHarry Cornell, Jr., to begin negotiations for additionalindustrial property in Ennis.10

As noted, in 1958, the company achieved itsfourth consecutive year of record net sales ($6.71 mil-lion); unfortunately, net earnings ($198,000)were the lowest in more than a decade. The per-formance of the Ennis, Texas, facility was com-

mendable. Ennis led all others in percentage of netprofit to sales and contributed a larger return inactual dollars than either of the larger operationsin Missouri or Kentucky.11

Unions Selling, Employees Not Buying

Strikes and labor disputes disrupted the U.S.economy in the years after the Korean War. Twice dur-ing the 1950s, strikes in the steel industry interruptedraw material shipments to the company, reducinginventories to perilous levels. In this time of uniongrowth and strength, Leggett & Platt employees werefrequent targets of union organizers.

50

STARTING LINEUPHARRY MACK CORNELL, SR.

President

RALPH JOHNSONSales Manager

FRANK FORDSecretary–Treasurer

GLENN JOYCEVP, Carthage Operations

HARRY CORNELL, JR.VP, Texas Operations

EDWARD CASEYVP, Kentucky Operations


In September 1956, in an election supervisedby the National Labor Relations Board (NLRB),employees at Louisville narrowly rejected repre-sentation by the Firemen and Oilers Union. InOctober of the following year, Louisville employeesagain rejected the Firemen and Oilers, but this timeby a 4-to-1 margin.12

The United Steelworkers Union (USW) attemptedto organize employees at Ennis in September 1957.Employees, however, rejected the USW by a substan-tial margin (64 to 47) in a January 1958 election.13

In September 1958, Glenn Joyce reported to theboard that the International Association of Machinists(IAM) had petitioned the NLRB for a representationelection at Carthage. In November, the Carthage plantemployees rejected the IAM by a vote of 72 to 20.14

In August 1959, the IAM filed a petition with theNLRB to represent employees at Louisville. In aDecember election, the Louisville employees alsorejected the IAM by a margin of 58 to 41.15

During the decade, three different unions peti-tioned the NLRB for five separate elections at Leggett& Platt facilities. Leggett employees voted five timesto remain union-free.

People

Fred Bouser, the longtime superintendent atLouisville, retired on December 31, 1956, and wasreplaced by Don K. Frederick. (Sadly, the board wasinformed of Bouser’s death the following September.)

In January 1958, the board voted to submit tothe stockholders an amendment to the articles ofincorporation increasing the number of directors fromseven to eight and to add Harry Cornell, Jr.’s, name tothe slate of directors submitted to shareholders. Harrywas one of eight directors elected by shareholders inFebruary 1958.16

In April 1958, George E. Phelps, a director since1935, died. In his 23 years on the job, Phelps servedsix years as corporate secretary (from February 1938to February 1944) and as corporate attorney. FrankWilliams, Jr., son of Frank B. Williams, former pres-

ident and director of the company, was appointedand later elected to fill the vacancy.

In January 1959, George S. Beimdiek, Sr.,asked not to be renominated as a director andrequested that his son, George S. Beimdiek, Jr., beplaced on the ballot. At the shareholder’s meetingon February 24, 1959, Beimdiek, Sr., left the boardand his son joined it. (Beimdiek, Jr., a successfullocal businessman and at that time president ofBV Realty & Investment Company, would serve asa director until May 1985.)17

Harry Cornell, Jr.– Discontent with the Status Quo

When Harry Cornell, Jr., joined the board ofdirectors in 1958, it was a conservative group domi-nated by far older men. John McMillan was firstelected to the board in 1923, five years before Cornell,Jr., was born. George S. Beimdiek, Sr.; Mack Cornell,Sr.; and George Phelps began their service on theboard in 1933, 1934, and 1935, respectively.18

The board repeatedly found it difficult to agreeon a course of action and was slow to act on oppor-tunities. For example, several abridged quotations

Max Baucom, who eventually moved into management at Leggett& Platt, is seen here at the Carthage plant in the early 1950s,tending to one of three pieces of machinery he operated.


from the minutes of six board meetings in the firsteight months of 1959 read as follows:

… The meeting had been called to consider thepurchase of the Ely Walker plant at Verona, Missouri… we had long considered diversification … thiswas a good opportunity. … After considerable dis-cussion … it was decided to forgo any action atthis particular time. —February 7, 1959 19

… The Verona property, which had been dis-cussed at the previous meeting was reported tohave been sold. —February 24, 1959 20

Mr. Joyce reported on a proposition submitted by aCalifornia firm that we produce and market a sleeperconstruction; however, he had no recommendations tooffer at this time. —April 29, 1959 21

A lengthy discussion was held concerningpossible plant improvements and product diver-sification after which the meeting was adjourned.

—May 27, 1959 22

… [Regarding] the proposal of our manufactur-ing sofa bed hinges and sleeper fixtures … manage-ment had no particular recommendations at this time.

—June 23, 1959 23

… Developments on the sofa bed hinge andsleeper fixture had not materialized as rapidlyas first anticipated, therefore [there was] no rec-ommendation on either matter at this time.

—August 25, 1959 24

A discussion was held concerning plant expan-sion in the Louisville–Winchester area, however nodecision was reached or action taken.

—August 25, 1959 25

All of the previously quoted 1959 board meet-ing minutes indicated that Harry Cornell, Jr., was inattendance. The aggressive, young vice presidentsaid of these meetings: “During those years, theboard met monthly. Essentially, the company wasbeing run by the board of directors as a commit-tee. Too often the board was unable to find consen-sus on matters critical to our future. It was very dis-appointing … frustrating.”26

In contrast to the meeting minutes from early1959, three abridged quotes from the minutes ofthe October 28, 1959, board meeting, which reflectHarry’s developing influence, read as follows:

… Tooling for production of [sofa bed] hinges wasin process. … They would be produced at the Ennisplant [managed by Harry].

… Mr. Beimdiek [Jr.] moved we proceed withplans and specifications for a 40,000-square-foot building at Winchester, Kentucky. This motionwas seconded by H. M. Cornell, Jr., and carriedunanimously. [The two youngest members of theboard made and seconded the motion.]

Mr. Casey moved, seconded by H. M. Cornell, Sr.,and unanimously voted that management [Harry]proceed with negotiations for additional land andbuilding area in Ennis.27

The above excerpts clearly illustrate Harry’sefforts to reenergize company endeavors toimprove and grow.

In 1958, Harry again reported record sales andearnings for the Ennis facility. With a strong desireto create a new, more energetic, and growth-ori-ented environment for Leggett & Platt, he sought thecounsel of business associates and friends.

By the end of that year, Harry had devel-oped a plan to acquire majority ownership of thecompany. It was a bold plan, but possible. Thecompany had slightly more than 140,000 sharesoutstanding, and no one person or family owneda near majority of the modestly priced stock. “Therewere, as you can imagine, a great number of thingsto think about and work through,” Harry recalled.He continued:

First, I was very confident Mother and Dad wouldsupport the plan, but I didn’t want to involve them inthe early stages. It would have worried Mother todeath, and it would have put Dad in a very awkwardsituation with the board. I didn’t visit with them aboutthe plan until I’d lined up nearly all of the otherneeded shares.

Second, the preliminary financing for the purchaseof the shares was arranged through relationships I’ddeveloped with a Dallas bank. That backing, how-ever, depended on my ability to obtain commitmentsfrom several major shareholders to sell their shares.

52


I had to be able to demonstrate majority ownership,and the bank wanted various restrictive covenants aspart of the deal. [The Bank of Carthage later offeredHarry more attractive and less restrictive financing.]

Anyway, I met with a half dozen or so of the majorshareholders who had no direct contact with the day-to-day business of the company and obtained agree-ments to purchase their shares. Trust and confidencewere just critical in getting this done.28

Harry had another extremely important relation-ship with Carthage attorney Herbert Casteel, a for-mer fraternity brother at the University of Missouri.In 1952, Harry and Casteel had started a small busi-ness, Carthage Wood Products, when Harry was aself-employed, commissioned salesman representingLeggett & Platt and other manufacturers. When Harrywas rehired and moved to Texas to manage the Ennisplant in the summer of 1953, Casteel managed theCarthage end of their business, and during the ensu-ing years, the two men grew that business together.

Casteel was one of the people Harry consultedabout the idea of taking control of the company. Whenit came time to review option purchase letters forHarry to take to shareholders, Casteel assisted. Healso borrowed money and purchased Leggett &Platt stock. He recalled:

I didn’t know a lot about the company, but I knewa lot about Harry [Jr.]. I was really investing in theman. He was a winner. If he was playing badmintonor tennis or golf or anything, he went in to win. Andhe was willing to make the effort to train himself towin. … Also, he is, of course, a great people person.He is interested in people, works well with people.I thought he’d build a good management team, workwell with management, and I knew he was ethical. Ididn’t want to invest in a company that was run forthe benefit of the executives. I wanted one that wasrun for the benefit of the stockholders, and I believedhe would do that.29

Following the adjournment of the directors’ meet-ing in late October 1959, Harry Cornell asked his fel-low directors if they would stay a few minutes more,as he wanted to tell them about some importantdevelopments.

Harry explained he had purchased the stockof several major shareholders. With shares he owned,

his family’s shares, and those of close friends, hecould now confidently count on support from share-holders owning a majority of the company’s stock. Hewanted to lead the company, serve as its next presi-dent, and grow the business for the shareholders. “Iwas nervous and excited, trying my best to be calmand polite, but I also wanted to convey my firm deter-mination to carry the change through,” he said.30

Harry made it clear that no managementhousecleaning was necessary; Edward Casey, Jr.;Glenn Joyce; and the other directors were fine peo-ple and managers whom he hoped would con-tinue to help grow the company; the board wouldneed to make some adjustments, however.

New Decade, New Leadership

“There’s no need to say who was happy orunhappy,” Harry Cornell said when asked aboutthe directors’ reactions. It appears there were veryfew unhappy directors. Time had been an ally inHarry’s plan.31

In 1958 and 1959, the board lost several of itsveteran members. Phelps died in early 1958, whileBeimdiek, Sr., resigned in early 1959 and his son,George Beimdiek, Jr., joined the board in February1959. Walter Carter, president of the Bank of Car-thage and a Leggett & Platt director since February1951, died in June 1959.32

At the January meeting in 1960, Herb Casteelwas appointed to complete Carter’s unexpired term.The board voted to reduce its number of membersfrom eight to seven. John McMillan resigned andwas thanked warmly for his many years of service.Marjorie (Leggett) Cornell, wife of Harry Cornell, Sr.,was nominated to replace one other member ofthe board. In February 1960, the shareholders votedunanimously for the new slate of directors, and thechange in control was complete.33

Leggett & Platt became a closely held com-pany for the next few years. “That gave us theability to plan and carry out our plan,” explainedHarry. He continued:

Dad was elected chairman of the board. He, Mr.Casey, and Glenn Joyce continued to serve on theboard and were very involved in the day-to-day busi-ness. Frank Ford, Ralph Johnson, Glenn Joyce, andMr. Casey were all so supportive of the leadership


change and committed to Leggett’s success. Weimmediately promoted Glenn to executive vice presi-dent. George Beimdiek, Jr., stayed on the board, andhe and Herb Casteel were excellent advisors and con-structive board members for many years.34

In 2008, in a letter to Harry, Frank Ford said,“You provided us with new life when you came toCarthage and as president. Ralph [Johnson] and Icame up with lots of changes, only to have themvetoed by the Board of Directors. You provided newlife, and I’ll always be thankful.”35

In 1954, when Harry was managing the Ennisplant, he hired a high school classmate, Richard P.“Dick” Fanning, to handle a West Texas sales terri-tory. In 1958, as Harry’s responsibilities increased,Fanning was transferred to the Ennisoffice to oversee sales and run the facil-ity. Rising through the ranks to becomethe plant manager, he was eventuallyelected as a vice president and officerof Leggett & Platt. When he returnedhome to Carthage several years later,he continued his career as a vice pres-ident and later president of the com-pany’s bedding group.

The first two years of Harry’spresidency, 1960 and 1961, proveddifficult; sales slowed and competi-tion was fierce. The Bank of Car-thage and its correspondent bank in Kansas Citystepped up to provide reliable and affordable creditto the company.

Acquisition Prospects

The pace of growth-related activity at Leggett &Platt in 1960 was breathtaking. In June, Harryreported to the board that acquisition discussionshad commenced with the Super Sagless Corporation.Super Sagless, a manufacturer of sofa sleeper andrecliner chair hardware, had operations in Tupelo,

Mississippi, and Bayonne, New Jersey. In July, theboard held a special meeting to approve an offerto buy Super Sagless.

In September, Harry reported that the offi-cers of Super Sagless had not accepted the acqui-sition offer and wanted more cash. Harry did notrecommend sweetening the deal. While the com-pany’s young leader was anxious to grow anddiversify the business, he demonstrated patienceand discipline in these negotiations. He alsomaintained friendly contacts with members of theKatz and Bank families, who were the owners.This kind of relationship building often paid offlater. (In this instance, the payoff came 34 yearslater, in July 1994, when Leggett & Platt acquiredSuper Sagless from these same owners.)

In September 1960, Harry re-ported to the board that the companywas investigating the potential pur-chase of Middletown ManufacturingCompany of Simpsonville, Kentucky(a competitor of Super Sagless). InNovember, he told the board, “… [Wewill] not be proceeding further in nego-tiations with this company.”36 Again,patience and discipline were shown,and Leggett & Platt remained in con-tact with key people at Middletown.(Eventually, in 1973, Leggett boughtthe operation from a subsequent

owner, Lear Siegler.)In September, the board also heard a report on

the investigation of one other potential acquisition,Chicago Spring Corporation. The company was not asdiversified as Leggett & Platt, but was considered oneof the foremost producers of high-coil-count units formattresses. This acquisition was eventually shelved.37

Later that same year (1960), the minutes of aboard meeting reflected: “[The company’s] … inter-est in producing poly foam … has been reneweddue to the reasonable cost of polyurethane foamproduction equipment.”38

Board minutes from November 25 reportedthat Harry and Glenn Joyce would soon visit sev-eral polyurethane foam plants following a NationalAssociation of Bedding Manufacturers (NABM)convention in Miami. On December 28, they reportedto the board on visits to three of these facilitiesin the Southeast.39

54

Richard P. “Dick” Fanning was hired in 1954 as a salesmanin the West Texas territory. Repeatedly promoted through theyears, he was a practical problem solver and decisivemanager who served the company for 45 years.


In February 1961, John Haley, vice presidentof the polyurethane foam producer Phillips FoscueCorporation, visited Carthage to discuss Leggett &Platt’s interest in the urethane foam business. PhillipsFoscue had operations in High Point, North Carolina,and Tupelo, Mississippi. However, Leggett did notacquire any urethane foam producers until December1976, when it finally acquired Phillips Foscue.40

One acquisition was completed in 1960. In Octo-ber, Leggett & Platt purchased all outstanding stockof the C. A. Bissman Manufacturing Company ofSpringfield, Missouri. The Bissman acquisition pro-vided Leggett & Platt with a new line of products—wood headboards and bunk beds—to comple-ment the company’s steel rollaway beds, Hollywoodbeds, and institutional beds. Bissman would beoperated as a wholly owned subsidiary.41

Bill Allen, a retired risk manager whose careerwith Leggett & Platt spanned more than 30 years,remembered that his first day on the job was spentcounting Bissman’s inventory. Recalling the planfor the acquisition, Allen said:

We needed a facility where we could manufacturesome items—bunk beds, headboards, that sort ofthing—that we could sell into the bed-ding and furniture industry along withour steel products. … We continuedto make some high-end, old-stylewalnut furniture, just absolutely gor-geous stuff, until we finished all ofBissman’s supply of lumber.

… Then we produced the me-dium line of case goods, beds, anddressers. … But, after a few years, welimited our production to bunk bedsand headboards.42

Although Bissman’s product linerequired revamping, by 1962 the operation con-tributed to a substantial increase in sales volume.The company’s net sales rose to nearly $8.3 millionin 1962 from $7.6 million in 1961.43

New Products and Expanded Plants

Acquisitions were not the only growth activities atLeggett & Platt in 1960. The company authorized thepurchase of machinery to produce two new products:

sinuous-wire and stake-wire bedding units. Sinuouswire was widely used in automotive seats, uphol-stered furniture, and institutional beds. Stake-wirebedding units were sold to innerspring mattress man-ufacturers. The sinuous-wire machinery was installedat Ennis. Crimping and closing machines, for theproduction of stake-wire units, were initially installedin the Kentucky and Texas plants and in a new facil-ity in Phoenix, Arizona.44

In June 1960, the board decided to establish amanufacturing facility in Phoenix, which wouldgreatly reduce shipping costs for a growing number ofcustomers in the Southwest and West.45

In July, Leggett & Platt leased a building inPhoenix. In August, machinery was being builtand ordered for the new plant. In November, GlennJoyce traveled to Phoenix to supervise installationof the machinery and a tempering oven. FrankCooper, the Ennis plant superintendent, was relo-cated to Phoenix.46

The Phoenix plant start-up did not go assmoothly as anticipated. By July 1961, Leggett &Platt’s senior management was dissatisfied with theplant’s uneven production and unprofitability, andconsidered imposing a “do or die” 60-day trial period.

It was also suggested that a capableyoung man at the Ennis plant, FelixE. Wright, be sent to Phoenix as anew general manager.47

Harry Cornell, Jr., had hiredWright in March 1959 for a position incustomer service at Ennis, shortly afterWright’s graduation from East TexasState University. The jump from cus-tomer service to general managerwould be a significant change. Wright,who would become Leggett & Platt’schairman and CEO many years later,recalled he had doubts about his abil-

ity to take on the tasks. Those working with him,however, were convinced he was the right man forthe job. Wright later said the mentoring he received

A few years after starting his career with Leggett & Platt,Felix E. Wright became general manager at the Phoenix plantand was eventually placed in charge of all sales andmarketing west of the Rockies.


from Harry Cornell, Jr., in Phoenix was “one of thebest lessons that I ever had in my career.”48

The first two years of Harry’s leadership (1960and 1961) had been exciting, but challenging. Fiercecompetition kept profits for both years below earlierlevels. In the 1961 Annual Report, Chairman HarryM. Cornell, Sr., described the conditions they faced:

The Year in ReviewThe year 1961 was marked by extremely compet-

itive conditions in the bedding and furniture indus-tries serviced by Leggett and Platt, Incorporated. Thisdownward trend, which first became evident in mid-1960, became so extreme by mid-1961 that salesand profits were adversely affected … .

The Year AheadThere is little indication of an immediate improve-

ment in competitive conditions in our markets. Tominimize the effect of this situation on earnings, yourmanagement is engaged in a vigorous program of costand expense control. Our policy of product diversifica-tion and market development continues. The result ofthese programs has been gratifying to date.49

Fueling Future Growth

Despite the competition, Leggett & Platt’s leader-ship was determined to drive the company forward,while growing and diversifying. By 1963, manage-ment had identified and was directing its energy intofive steps to fuel future growth. The minutes of theboard meetings in early 1963 contain numerousexamples of these efforts.

In the first step, with patience and understand-ing rare among results-oriented business people,

Leggett & Platt’s leaders strived to build long-termrelationships with employees, customers, and poten-tial acquisition partners. The board minutes fromJanuary 31, 1963, stated: “Under new business …Cornell [Jr.] reviewed his … discussion with the Web-ster Spring Corporation in connection with the possi-bility of acquiring Off Set Spring of Memphis.”50

Leggett & Platt did not purchase Off Set Spring,and a casual reader might overlook the brief entryin the minutes. The mention of discussions withWebster Spring, however, is the important detail.Harry knew the principal owners of Webster, theLevine family, before the acquisition negotiationsbegan, and he maintained a friendly relationship withthem afterward. Though they were competitors, theyliked and respected one another. Several years later,Harry gave Sandy Levine a tour of Leggett & Platt’swire mill. Levine was impressed and built a similar,smaller mill at his family’s company in Oxford,Massachusetts. Many years later, when the Levinefamily and other Webster shareholders decided to selltheir business, they wanted to sell to Leggett & Platt.

The second step to further growth was to extendthe company geographically. Board minutes in March1963 record, for example, that “Felix Wright had beensuccessful in obtaining additional business in SaltLake City … .” The Phoenix plant, which he man-aged, reached customers in the Southwest andWest more cost-effectively. In the ensuing years,Leggett continued to establish production and dis-tribution facilities in new regions.51

56

The Phoenix, Arizona, branch was set up in the early 1960s toprovide service west of the Rockies.


The third step was to upgrade and expand thecompany’s existing facilities and machinery. Leggett& Platt’s experienced managers and machinistsimproved plant layouts and designed faster, moreefficient machinery. The following excerpts arefrom January and February 1963 board minutes:

… Mr. Joyce reported that in [Winchester]Kentucky, the new building project was comingalong satisfactorily … .

… [The] increase in production [at Carthage] hadbeen accomplished as planned … .

… manufacturing costs [at Ennis] were improving … .… They [Phoenix] were coming along satisfactorily

in all respects … .52

The fourth step was to broaden the company’sproduct lineup. Three new products were mentionedin the January 1963 directors’ minutes:

Mr. Cornell [Jr.] reported that the Flotura™ springconstruction had now been produced in suffi-cient quantity and enough tests made that … thisproduct was now ready for sale to other furni-ture manufacturers.

A report was made … concerning the prob-lems encountered with the new Zephyr spring.Construction and sales … would continue in alimited way … .

Chittenden & Eastman were buying thewalnut bedroom set … we would beginto develop … a walnut dining suite.53

Leggett’s fifth step to achieve growthwas to acquire other businesses. As inall company buyouts, while the actualpurchasing did not prove overly difficult,negotiating a reasonable price, bringingthe acquisition through its transitionperiod, and managing it effectively werecomplicated processes. Leggett’s man-agement team quickly learned the art ofsuccessful acquisitions.

In February 1963, Harry told the board, “ … theassets of the Rodman Spring Company and the HarryKeeton Spring Company of Oklahoma City had beenacquired … on a five-year contract, at no interest.”54

The minutes continued: “Bob Dittberner … salesmanager at Ennis … transferred to Oklahoma Cityto serve as district manager there.”

Leggett & Platt’s acquisition of businesses—thefifth step to further company growth—was depen-dent on the other four steps. As mentioned, acqui-sitions often resulted from Leggett’s long-term busi-ness relationships and extended the company intonew geographical regions. They also broadenedLeggett’s product lineup and improved productionand machinery capabilities.

Collectively, the five steps produced the forwardmomentum for growth. At the same time, Leggett’sleaders were beginning to develop and describe aspecific, dynamic strategy for growing the company.

The New Strategy

According to Harry Cornell, Jr.:

Our mission during those first years was to bringenergy and renewed life to the company, to get theengine firing on all cylinders. We saw opportunitiesto grow and improve in every direction.

Window and store displays throughout the 1960stouted the durability of Leggett & Platt’sinnersprings and other products.


We held regular company meetings with all ourgeneral managers, usually a day or two before theboard of directors meetings. At management meet-ings and board meetings, we did a lot of think-ing aloud. We talked about what was working, whatwasn’t, what kinds of products we should pro-duce, and why.

It took a couple of years, but gradually, a coherentgrowth strategy began to emerge from all our workand all those discussions.55

By 1963, Leggett & Platt had developed two prod-uct divisions: components and home furnishings.The product offerings of each division were listed

on the back page of the 1963 Annual Report. HarryCornell, Jr., said:

We primarily sold products from the componentsdivision to manufacturers of bedding and uphol-stered furniture. We were regularly adding prod-ucts to that list and increasing sales successfully.

The products of the home furnishings divisionwere primarily sold to retail stores, and wewanted to maintain a presence and reputationwith retailers. But, we also began to see thatadding products to that division would be diffi-cult without sometimes competing head-to-headwith our customers.

58

BORN IN 1928 IN THE DUTCH EAST INDIES TO MACK

and Marjorie Cornell of Carthage, Missouri,Harry M. Cornell, Jr., led Leggett & Platt

for nearly 40 years—from a small company to awidely admired, multibillion-dollar, internationalmanufacturing corporation.

In the late 1920s, the Cornell family lived inTalang Akar, Sumatra, Indonesia, where MackCornell was working in the oilfields. As a result,when the family returned to the United States inthe early 1930s, Harry principally spoke Malay, anative language of western Sumatra.

Harry vividly described the frustratinglanguage barrier he encountered as a 3-year-old boy. “When Mother and Dad hired a baby-sitter, they had to leave a translation list on thekitchen counter, so when I would jabber away,the sitter could understand,” he recalled. “It waskind of a struggle. I can still remember my cousinsand friends, children my age—I would try andtalk and play with them and ended up scaringthem to death.”1

Harry was a Leggett & Platt kid. His grand-father was J. P. Leggett, the company cofounder.His father was a sales manager and later president

of the company. For many years, his mother wasa member of the board of directors. Even as a gradeschool boy, he sometimes accompanied his fatheron customer visits during his summer vacations.

Harry spent two summers working in theCarthage plant during his high school years. Hisjobs at the plant included unloading rail carsand loading trucks, working at innerspring clip-ping tables, and operating manual and automaticinnerspring assembly machines.

“It was a great experience and big advantagefor me later. Most of the machines I learned to runwere developed and manufactured by engineersat our in-plant machine shop. I also got to knowLeggett’s warehouse workers, assemblers, machin-ists, supervisors, engineers, and managers.”2

Harry’s official career with Leggett & Plattbegan in 1950 after he graduated with a degreein business administration and marketing fromthe University of Missouri. From his first posi-tion as a sales office assistant and trainee inLouisville, Kentucky, Harry moved into sales,covering the southern Illinois and Ohio territo-ries and successfully established both large andsmall accounts.

HARRY M. CORNELL, JR.CEO, 1960 TO 1999


We gradually realized that being a componentssupplier to the bedding and furniture industries wasour greatest opportunity for profitable growth.

We continued to produce many home furnishingsthat didn’t pose a threat to our manufacturing com-pany customers. But being a components supplierbecame our focus and the foundation for our growthfor many years to come. A few years later, we evenbegan calling ourselves The Components People®.56

More than Words

As previously noted, Leggett & Platt purchasedthe equipment and inventory of a small spring man-

ufacturer and distributor in Oklahoma City in 1963.To better serve its growing territory, the company alsoadded a new 60,000-square-foot building in Winches-ter, Kentucky, and new service centers in Denver,Colorado, and High Point, North Carolina.57

The following year, the company purchased prop-erty adjacent to the Carthage plant for a new machineand product development department. Constructionalso began on 3,500 square feet of administrativeoffice space, and, by year’s end, the companycompleted construction of 10,000 square feet of man-ufacturing space and a 30,000-square-foot ware-house. Leggett & Platt also added a data processingsystem to improve clerical functions.58

In 1952, Harry left the company for a shorttime to become a commissioned sales representa-tive in the company’s Kansas territory. In the sum-mer of 1953, he was selected to manage Leggett& Platt’s struggling Ennis, Texas, plant. He quicklyturned the operation around.3

In February 1955, Harry wasnamed a company vice president.He was elected to the board ofdirectors in February 1958.

Dissatisfied with Leggett &Platt’s lack of growth, Harry for-mulated a plan to lead the com-pany. He borrowed money andbegan acquiring stock. By late1959, along with family mem-bers and close friends, he held amajority of the company’s stock.In February of 1960, his fatherwas elected chairman of the board,and Harry was elected presidentand CEO of the company.4

During his 39 years of leadership, Harryand his management team led the companyfrom $7 million in annual sales to $3.5 billion,and from four factories to more than 200 world-wide. In May 1999, he smoothly passed the CEO’sbaton to Felix Wright.

As a leader, Harry was known for his salesacumen, his mentoring, and his team build-ing skills—all traits he attributes to his father’sinfluence. “I really learned the business from

watching Dad call on customers and interactwith people. He was a tremendous people per-son; whatever skills I developed, they just camenaturally for Dad.”5

But other longtime employees say thosesame traits also came naturallyto Harry. “Harry has a knack ofmaking people feel like they’re onhis level,” said Howard Boothe, aretired engineer and facility man-ager. “He was leading this big cor-poration, but Harry’s attitude was,‘I couldn’t do it without you.’ Hemade people feel like partners inthe business, and consequently,we enjoyed coming to work be-cause we had specific goals toreach. It was a fine company.”6

Bill Allen, a retired risk man-ager, agreed. “You knew whatHarry wanted you to do, and

he gave you the freedom to do it the way youfelt it needed to be done. He was one of thosepeople who let you go as far as you could go. Ifyou had a problem or question, he was totallyaccessible—just a super guy, super boss. He’dchew you out if you did something wrong, buthe never did it in public. He always took youaside and told you what the situation was, andthat was the end of it. There weren’t any morerepercussions or anything else. He was reallygood with people.”7


In “The President’s Message” in the 1964 AnnualReport, Harry told shareholders and employees:

Growth and expansion are among the words mostoften discussed around Leggett & Platt. These aremeaningful words ... healthy … strong. That theyhave been beneficial to the company is evidenced bythe aggressiveness of our personnel … the confi-dence of our customers … the expanded plant facil-ities … the once-again increasing profits.59

Leggett & Platt ended 1964 with a 14 percentincrease in consolidated net sales and a 130 percentincrease in earnings per share.60

In January 1965, the company purchased aninnerspring manufacturing facility in DeKalb, Illinois,from the Englander Mattress Company. The DeKalb

plant provided convenient access to many Chicagoarea customers.

The acquisition of the DeKalb plant was a sig-nificant achievement in the company’s strategy tobecome a components supplier. Leggett & Plattwould now produce and deliver innerspring unitsfor Englander’s mattresses. Englander would fin-ish the mattress, cover it, and sell it. Over the years,many other mattress manufacturers were persuadedto outsource their components manufacturing toLeggett & Platt.

Don Frederick, the former Louisville plant man-ager, was temporarily assigned to manage the DeKalbfacility. In March 1965, Bob Dittberner, the districtmanager at Oklahoma City, was appointed to man-age the plant on a more long-term basis. HermanMeritt was promoted to manage the Oklahoma Cityplant after Dittberner’s transfer.

A Time to Celebrate … A Time to Mourn

The company’s growth in the early 1960s pro-vided abundant advancement opportunities. FelixWright became the general manager at Phoenix,and was later promoted to vice president and trans-ferred to Kentucky to establish an Eastern divi-sion for the company. Dick Fanning becamethe general manager at Ennis; Bob Dittberner was

60

The Leggett & Platt management team in 1963 included(from left to right) Harry M. Cornell, Sr., chairman; FelixWright, general manager at Phoenix; Dick Fanning, generalmanager at Ennis; Harry M. Cornell, Jr., president; FrankFord, general manager at Carthage; Bud Hougland, generalmanager of Kentucky operations; and Carl Kirchner, inventorand chief of engineering. Ralph Johnson, sales manager, isnot pictured.


assigned as a district manager at Oklahoma Cityand later as a plant manager at DeKalb, Illinois.Ralph Johnson became the company’s sales man-ager and later its vice president of sales.

Inevitably, some of the opportunities for promo-tion were bittersweet. These opportunities arose dueto the illnesses and deaths of valued employees.

Due to Edward Casey, Jr.’s, illness in 1960 and1961, Bud Hougland was promoted to overseeboth Kentucky plants. Over time, the Winchesteroperations were greatly expanded, and the Louis-ville location was reduced to a warehouse and dis-tribution center.61

Glenn Joyce’s sudden and unexpected death onMarch 17, 1963, was an enormous loss. His careerwith Leggett & Platt had started in 1931 as a Carthagefactory worker, and he was promoted several times.He had essentially served as the company’s vicepresident of manufacturing for most of a decade. Hewas also a member of the board of directors fromSeptember 1952 until his death.62

Frank Ford was appointed to succeed Joyce onthe board, and Ford was named to manage theCarthage plant. The managers of the Oklahoma Cityand Denver facilities also reported to him.63

In February 1963, the board noted and mournedthe passing of George S. Beimdiek, Sr., the retiredlongtime president.64

Casey’s continued ill-health prevented him fromattending board meetings in 1963 and 1964. InDecember 1964, he expressed a desire to retire fromthe board. The board appointed James C. McCormickof the Dallas firm Eppler, Guerin & Turner, Inc., inCasey’s place, and in 1965, McCormick was electedto the board.65

Above: These maps show the company’s expansion in theyears after Harry M. Cornell, Jr., became president and CEO.

Right: By 1963, Leggett & Platt had developed two productdivisions—components and home furnishings. The productofferings of each division were listed on the back page of the1963 Annual Report.


In 1967, after 32 years with the company,Edward Casey, Jr., retired from Leggett & Platt’smanagement team. He had served as a vice presi-dent for more than 29 years and as a member ofthe board of directors for more than 14 years. FelixWright’s transfer to Kentucky was timed to coincidewith Casey’s retirement.66

A Remarkable Beginning

It took Leggett & Platt’s management and newlyenergized board most of two years to create themomentum for sustained growth. The Letter toShareholders in the 1966 Annual Report conveyedthe company’s remarkable progress from 1962through 1966.67

By 1966, Leggett & Platt’s leadership had demon-strated the ability to articulate and consistently exe-cute substantive growth plans. The company’s lead-ership decided the time was right to raise additionalcapital for growth and extend the opportunity for own-ership to a broader public, including a growing num-ber of interested and enthusiastic employees.

In March 1967, seven years after Harry Cornell,Jr., had established majority ownership and becomepresident, Leggett & Platt went public.68

After recapitalization and a stock split in January1967, the company issued securities consisting of$1 million of 6 percent convertible debentures, dueApril 1, 1982, and 50,000 new shares of commonstock. By the end of 1967, there were roughly350,000 shares outstanding.69

The underwriting syndicate of 19 invest-ment banking firms was managed by the broker-age firm Eppler, Guerin & Turner. Leggett &Platt Director Jim McCormick was a senior vicepresident of the brokerage firm and providedvaluable guidance as the board considered a pub-lic offering.70

62

Three charts and the opening paragraphs from the letter to shareholders in the 1966 Annual Report stated the company’s remarkable progress from 1962 to 1966.

To Our Shareholders:

For the fifth consecutive year Leggett & Platt,

Incorporated, has shown a substantial increase in

earnings and sales. Your company is a leader in the

bedding and furniture supply industries and, to our

knowledge, is the world’s largest independent

commercial producer of innerspring components. We are

fortunate to have a youthful, aggressive management

group with an average age of 39. We view with optimism

the growth of the industries we serve and the prospects

of broadening our product line to better serve these

industries. In addition, we will continue to give every

consideration to product and industry diversification.

Harry M. Cornell, Sr. Harry M. Cornell, Jr.

Chairman of the Board President


New Acquisitions, New People, More Growth

In 1967, the company expanded its warehouseservice centers in Denver, Louisville, Charlotte, andNew Orleans. The service centers complementedthe company’s manufacturing sites and were stockedwith a full line of company products, enabling rapiddelivery to area customers.

That same year, Jim Bryan was hired as vicepresident of finance and planning, and, as previouslynoted, Felix Wright became general manager of theWinchester operations, where he helped form andlead the company’s Eastern division.

The following year, Leggett & Platt acquired theMotor City Spring Company of Detroit in March; theFlex-O-Loc Corporation of Lawrence, Massachusetts,in July; and the Kenyon Manufacturing Companyof Kenyon, Minnesota, in October. In addition, bythat time the expansions of the company’s plants inCarthage, Ennis, Oklahoma City, Winchester, Detroit,and Kenyon had been completed or were in process.By the end of 1968, annual net sales were $17.3 mil-lion, up nearly $4 million from the two previousyears. A little more than half of that increase camefrom the three acquisitions.71

Early in 1969, the company purchased the J. R.Greeno Company of Cincinnati, a manufacturerof “offset” type innersprings, a product not previouslyoffered by Leggett & Platt. The acquisition alsoincluded the assets of a Greeno affiliate, ButlerManufacturing Company of Cincinnati, Ohio.72

In April 1969, Leggett & Platt acquired theDalpak Corporation of Dallas, a producer of paperproducts, including a line of packaging materialsused to protect furniture and mattresses in ship-ment. That year, Leggett hired Michael Glauber ascorporate controller to help manage its increasinglycomplex financial affairs. The company also issueda 5-for-3 stock split.73

In only five years, from 1965 through 1969,Leggett & Platt doubled its sales, finishing 1969with net sales at a new high of more than $25 mil-lion (up from $10.6 million in 1964). During thoseyears, the company grew at an average annual

compound rate of 18.9 percent in sales and 24.4 per-cent in earnings.74

The Decade Ends

In 1960, a young man named Harry Cornell, Jr.,became president and CEO of Leggett & Platt, a smallcompany his grandfather had cofounded in 1883.The closely held company, headquartered in thesmall town of Carthage, Missouri, had annual salesof roughly $7 million and four manufacturing facili-ties in three states.

Ten years later, in 1969, the recently turned pub-lic Leggett & Platt employed 1,600 people at 13 facto-ries and two warehouse service centers in 12 states.Annual sales exceeded $25 million, and earningstopped $745,000. It was a great new beginning fora grand old firm.75

The company’s leaders had developed a com-pelling strategy for growth and an ethical, cohe-sive team determined to succeed. As the decadeended, several new acquisitions and growth pro-jects were in the works.

Leggett & Platt’s most critical raw materialwas drawn-steel wire. Too often the quality, avail-ability, and price of wire were inconsistent, a serious

This advertisement features the diversity of Leggett & Platt’sproduct lineup in the mid-1960s.


DRAWN-STEEL WIRE WAS LEGGETT & PLATT’Smost essential raw material. The qual-

ity, availability, and price of wire were toooften inconsistent—a serious concern. In 1968,Leggett & Platt’s leaders decided the best wayto eliminate these recurring problems was tooperate its own wire-drawing mill.1

Leggett & Platt approached four steel com-panies as potential partners in wire supply—Armco, Laclede, Bethlehem, and U.S. Steel. “Theyall listened,” said Harry Cornell, Jr., “but onlyArmco and Laclede expressed any real interest.”2

Laclede was in the middle of reorganizingits management, and Armco seemed a bettercultural match for Leggett. After several meet-ings between senior members of Leggett & Plattand Armco, the CEOs finalized a deal with ahandshake in a Kansas cornfield during a hunt-ing trip. “Then, having agreed, we still had tomake it happen,” said Harry.3

The terms of the deal ultimately includedbuilding a new plant in Carthage, with eachcompany owning half. An independent board ofdirectors, composed of members from each com-pany, would guide the operation. Armco would

supply the steel rod; Leggett & Platt’s workforcewould draw the wire.

The newly constructed plant began partialproduction in June 1970. The mill’s annual outputwas entirely consumed by Leggett & Platt in 1971and 1972. As the mill increased its produc-tion, however, surplus wire was sold to outsidemanufacturers. Having the capability to supplywire to other companies would prove a majorcompetitive advantage for Leggett & Platt. Harryexplained the strategy:

The best way to make sure that you’reinternally competitive when you’re verticallyintegrated is to sell that product to the out-side world. So we built into our contract withArmco … that any excess wire we producedin the Carthage plant, we’d be able to sell toexternal customers.

The original concept—to be externally com-petitive in the wire market—always assuredus of being internally competitive. It also gaveus the opportunity to grow our wire business ata significantly faster clip, particularly duringtimes when Leggett’s wire needs were notincreasing rapidly.

The mill became successful both internallyand externally, and we soon outstripped itscapacity. Our spring plants performed muchbetter with the consistent, good-quality wire, andwe became a preferred wire supplier for othermanufacturers as well.4

Fortunately, Armco and Leggett & Plattincluded a buyout option in their contract; yearslater, Leggett exercised this option.

The new wire mill in Carthage, which began partialproduction in 1970, allowed Leggett & Platt to becomeinternally and externally competitive in the wire market.

WIRED FOR THE FUTURE


concern. In 1968, Leggett & Platt and Armco SteelCorporation agreed to build a wire-drawing millin Carthage, with each company owning half inter-est in the facility. Armco would supply steel rodfrom its Kansas City steel and rod mill. Leggett &Platt would supply and manage the people anddraw the wire. Even with only half interest, the pro-ject was by far Leggett & Platt’s largest commitmentto fixed assets thus far.76

While the wire mill’s initial productive capacitywould be consumed by Leggett & Platt, the agree-ment with Armco anticipated excess wire produc-tion would be sold to other wire users as well. Leggett& Platt’s management was determined to sell toexternal customers.

The wire supply strategy had two objectives:to provide Leggett & Platt a high-quality, dependablesupply of its most critical raw material (an advantageno competitor had), and to create an entirely newgrowth opportunity for the company through external

sales. Management believed that achieving the secondobjective would ensure that the internally consumedwire was truly price-competitive.

In June 1970, employees were beginningto ramp up production systematically in thenewly constructed plant, which had recentlyinstalled machinery.

Great growth is often accompanied by great chal-lenges. Leggett & Platt’s competitors quickly ex-pressed discomfort over the company’s developments,including its acquisitions and wire strategy, andLeggett & Platt became a subject of interest to theAntitrust Division of the U.S. Department of Justice.

Leggett & Platt responded immediately to theJustice Department’s inquiries, and CEO Harry M.Cornell, Jr., assured employees and shareholdersthat Leggett & Platt’s dealings were above reproach:“Management is confident that upon completion ofthe inquiry the Division will conclude that therehas been no violation.”77

Leggett & Platt’s 1972 Annual Report depicted a myriad of products manufactured in the 1970s, including innersprings, boxsprings, trundle bed frames, sofa sleeper mechanisms, table and chair bases, and many others.

C H A P T E R F I V E

A DECADE OF GROWTH,RECESSION, AND LAWSUITS

1970–1979

LEGGETT & PLATT’S 1970 ANNUAL RE-port featured a section titled “A

Look at the Future,” which re-viewed company strategy, the expectedgrowth of the U.S. home furnishingsindustry, and the predicted demograph-ics that were likely to create unprece-dented demand for home furnishings.It also explained the company’s evolving role as “abroad line supplier of components to home fur-nishings manufacturers”:

This concept … relieves us of dependence uponthe design and marketing of a brand or a fewbrands of merchandise. Our success is not undulyaffected by the success in the retail market of aparticular brand name. Instead, as a manufac-turer’s supplier, we are able to cover a broad frontas experts in quality components, many of whichare developed and improved by us. Because we arespecialists, we usually can produce and sell a qual-ity component more economically than our man-ufacturer–customers. …2

Estimating that the home furnishings indus-try would spend in excess of $800 million on com-ponents in 1970, Leggett & Platt conservatively pro-jected that this expenditure could reach $1.2 billionby the end of the decade. With the baby boomersin their early twenties by 1970, it was expected thatmarriage rates, family formations, and the demand

for home furnishings would boom forseveral consecutive years.3

Leggett & Platt’s sales for 1970 wereup 17.6 percent over 1969. More thantwo-thirds of this increase was a resultof internal growth. Earnings were alsoup 28.4 percent.4

New Acquisitions

Leggett & Platt’s first acquisition of the decade,Signal Manufacturing Company of Los Angeles, inMay 1970, provided a West Coast base of operationsand a new line of products—sofa sleeper fixtures.5

Four acquisitions were completed in 1972. InAugust, Leggett enhanced its packaging divisionwith the purchase of Kraft Converters, Inc., of HighPoint, North Carolina. The paper conversion com-pany specialized in the production of packaging forfurniture and case goods.6

In October, Leggett purchased Metal Bed RailCompany, Inc., of Linwood, North Carolina. In addi-tion to bed rails, its products included bed framesand steel angle components.7

In the same month, Leggett acquired Masterack,a division of Southern Cross Industries, Inc., of

In those years, Harry and the management team redefined Leggett &Platt and created a better-diversified, growth-oriented company for ouremployee–partners, management, and shareholders.

—John Hale, senior vice president of human resources1

A member of the Leggett & Platt team hangs an innerspringunit on an overhead conveyer.


Atlanta, Georgia. With this acquisition, SouthernCross became dependent upon Leggett & Platt forvarious steel and wire components it had previ-ously produced. Masterack also provided Leggettwith a new line of products—wire display racksfor retail stores.8

Roger D. Gladden, vice president of administra-tion and control in the late 1970s, coordinated Leggett& Platt’s first inventory at Masterack and helped setup the newly acquired company on Leggett & Platt’s

accounting systems. When Leggett formed a newfixture and display group several years later, Gladdenwas initially tapped to lead those operations, whichincluded Masterack.

In December 1972, Leggett & Platt purchasedEST Company, Inc., of Grafton, Wisconsin. ESTproduced cast aluminum, steel, and plastic furni-ture components used primarily in pedestal-supported chairs and tables. It also cast aluminumcomponents for other manufacturing customers.(Edwin C. Sandham, one of EST’s founders, joined

Leggett & Platt’s board of directors inAugust 1973.)9

Leggett & Platt acquired bothMasterack and EST primarily for theirfurniture and bedding components.While these products proved suc-cessful, the sales of both companies’diversified products far surpassedthe sales of their furniture and bed-ding components.

The success of the Masterack wirerack products also led to Leggett’sdecision to manufacture an extensive

68

Above: This aerial view shows the company’sspring plant and administrative offices inCarthage in 1971.

Right: Roger D. Gladden joined Leggett & Plattin 1972 as an accountant and was repeatedlypromoted over the years. He was named vicepresident of administration and control in1979 and eventually served as president of thecommercial fixture and display group until hisretirement in 2002.

C H A P T E R F I V E : A D E C A D E O F G R O W T H , R E C E S S I O N , A N D L AW S U I T S 69

line of point-of-purchase retail displays as well as aline of shelving for commercial vehicles. The ESTacquisition provided the opportunity for Leggett’sinitial entry into the aluminum die-casting indus-try. The company’s non-furniture componentsincluded lawnmower decks, boat motor propellers,and outdoor light fixtures. Leggett eventuallybroadened this lineup to include components forbarbecue grills, motorcycles, small engines, anddiesel truck engines.

New Facilities and Operations

In addition to growing through acquisitions,Leggett & Platt continued to expand by establish-ing new operations. In 1970, the company con-structed a 60,000-square-foot factory in SocialCircle, Georgia, to better serve an increasingnumber of bedding components customers in theSoutheastern United States. Warehousing in thefacility began late that year, and manufacturingstarted on March 1, 1971.10

Also in 1970, Leggett added a box spring frameoperation at Ennis, Texas, and a box spring andframe assembly plant in Houston, both of which

received lumber supplies from the company’s newlycompleted sawmill in Naples, Texas. The company’s1970 Annual Report explained the logic behind theexpansion of its framing operations:

A growing number of bedding manufacturersprefer to purchase box springs mounted on woodframes rather than perform the mounting opera-tion within their own plants. To meet this demand,Leggett & Platt continues to expand its woodframe manufacturing; and in order to better servecustomers, it further disperses the assembly andmounting facilities.11

Leggett & Platt’s board of directors and officers in 1971included (left to right, at the table) Ralph V. Johnson; RichardT. Fisher; Don V. Long; Mrs. H. M. (Marjorie) Cornell, Sr.; HarryM. Cornell, Sr.; Harry M. Cornell, Jr.; James F. Bryan; Felix E.Wright; Michael A. Glauber; R. Ted Enloe III; George S.Beimdiek, Jr.; Herbert S. Casteel; James C. McCormick; andFrank E. Ford. In the back corner (from left to right) are Richard(Dick) P. Fanning; W. E. (Bill) Allen; and Guy W. Ewing III. LarryHiggins is not pictured.


In the following years, Leggett & Platt openedseveral more framing operations near customers’manufacturing plants, supplying them with assem-bled box springs that simply needed to be coveredand finished. This production technique, later widelyknown and practiced by companies such as Toyota,is called “just-in-time” manufacturing.

In June 1970, the Carthage wire mill alsobecame operational. Although production that yeartotaled less than 10 percent of the annual capacity,the mill operated at a profitable rate by year’s end.12

By November 1971, it supplied 60 percent of Leggett& Platt’s wire; by December 1972, it produced90 percent of the company’s wire supply.13

New Products and New Machines

In the early 1970s, Leggett & Platt obtainedlicenses and designed machinery that enabled thecompany to manufacture and sell the latest andmost innovative components. For example, the

company worked to develop machinery to produceMira-Coil®, a recently patented continuous coil inner-spring unit. (It would be several years, however,before the machinery and manufacturing processesfor this product were perfected.)

In 1971, Leggett & Platt obtained a license fromBoston-based Standard Box to manufacture andsell a newly designed box spring unit eventuallynamed Lectro-LOK®.14 That same year, Leggettreceived a license from Spühl AG in Switzerland toproduce a new type of molded mattress core,consisting of an innerspring unit encased in cold-cure urethane foam—the precursor of the foam-encased innerspring initially sold to and mar-keted by Lifetime Foam, a Sears subsidiary.15

Besides obtaining production licenses fromother companies, Leggett & Platt also worked ondeveloping and patenting its own products. Forexample, the company’s Dalpak subsidiary had apatent pending for an improved type of mat-tress package.

70

ACQUISITIONS HAVE BEEN AN IMPORTANT ASPECT

of Leggett & Platt’s growth. In the early1960s, when the company began to

acquire other businesses more aggressively,Harry Cornell, Jr., the company’s new presi-dent, encouraged the management team toview the bedding and furniture industries as asingle, large market. Leggett determined it wouldbecome a broad line supplier of componentsto those industries.

In the 1960s and 1970s, manufacturersof bedding and furniture typically bought com-ponents from small local and regional busi-nesses, which made excellent acquisition candi-dates for Leggett.

Initially, Leggett & Platt focused on acquir-ing spring businesses, knowing it could producespring products more cost effectively than eithercompetitors or vertically integrated mattressmanufacturers. Later, the company acquiredmanufacturers of springs for furniture, and then

producers of furniture hardware components—recliner, chair control, and sofa sleeper mecha-nisms. Eventually, as the company redefinedand broadened its growth strategy, businessesproducing aluminum castings and store fix-tures and displays, among others, were alsoacquired.1

Felix Wright, who was promoted to executivevice president and chief operating officer in 1979,remained actively involved in many of the com-pany’s acquisitions. He recalled:

Looking back, it’s easy now to see whyour acquisition program worked so well. Theowners of those small manufacturing com-panies were often glad to sell to us. Thesefolks had worked hard to build their com-panies, and selling to us gave them a chanceto get paid for all that work. In many cases,the purchase price would pay off all theirdebts, and they would end up with a nice

ACQUISITION STRATEGY


Challenges Early in the Decade

In 1971, the U.S. Department of Justice filedan antitrust suit against Leggett & Platt concern-ing the 1960s acquisitions of Motor City SpringCompany and certain assets of the J. R. GreenoCompany. With the U.S. Department of Justice seek-ing the divestiture of these acquisitions, Leggett vig-orously contested the suit. President Harry Cornell,Jr., assured shareholders that the company had notviolated any laws, but it would be several yearsbefore the courts reached a decision.16

In 1972, the sawmill in Naples, Texas, strug-gled with continuing inventory losses, despite

The success of the Masterack division, acquired in 1972, led toits relocation in Atlanta, Georgia, only two years later. Theacquisition brought Leggett & Platt the capability to produce awide variety of point-of-purchase display racks and shelving.

nest egg of Leggett stock, or they would havestock and cash.

Before we came along, those small busi-ness people were trying to finance their owngrowth and were struggling to keep up withtax law changes and with workplace safetyand environmental laws. They were tryingto provide employee benefits and a host ofother things. We could help them manage allthose complicated tasks, and in return, theyhelped us expand our product offerings andour customer base.

We could take a good product or a manufac-turing technique used by that small business,and very quickly, we could sell that product oruse that technique on a national basis.

Many of those owners stayed with us, andmany were great employee–partners. It wasjust a good deal for all involved! 2

When evaluating a potential acquisition,Leggett & Platt considered more than the financialaspects of the deal, according to Robert Jefferies,longtime general counsel for the company. “Oneof the things they taught me when I came down

here was that we initially did not focus on thefinancial statements. … We asked ourselves, ‘Howwill this business integrate with us? How will itfit?’ And we used ‘fit’ in the broad sense of the term… fit in technology, fit in products, fit in people,fit with our other business units.” 3

Felix Wright agreed with Jefferies’ comments.He said:

Fit was certainly important. Over the years,at trade shows and the like, we got to know lotsof the business owners and key people in com-panies we eventually acquired. Those deals oftengot done because of our relationships. Thoseethical, hardworking, customer-oriented, busi-ness owners—those were the people we reallywanted to bring into Leggett.

Don’t get me wrong. We’d buy a business foran innovative product or to get in the door witha good customer, but if the people weren’t agood fit, we’d maybe only buy a patent or thephysical assets of the business. It’s just not agood idea to bring in people you can’t trust. Theywon’t be with you long-term, and you can’t builda business that way.4


company efforts to improve efficiencyto help the mill reach a break-evenpoint by the first quarter of 1973.17

Also in 1972, Leggett faced a 31-daystrike at the Winchester, Kentucky,plant, which affected earnings by5 cents per share.18

Notwithstanding these challenges,the company celebrated a significantmilestone in 1971, when net earn-ings reached more than $1 million. In1972, earnings rose another 30.6 per-cent (even without including acquisition income).For 11 consecutive years, Leggett & Platt hadincreased earnings.19

Although the company grew significantly inthe early 1970s, it remained a close-knit organiza-tion. Donald G. LaFerla, who was hired in January1973 as Leggett’s first data processing manager,witnessed the number of employees climb to 3,700by the end of his first year—nearly a 50-percentincrease from 1,900 employees in 1971.20 LaFerlarecalled how the growing company maintained acohesive atmosphere:

One of the things that I remember when I wentto work at Mound Street … about 10 o’clock, overthe paging system, you’d hear this voice say,“Coffee is ready.” … Everybody in the whole officeused to get up. … We didn’t even have a cafeteria.We had a little area and a couple of Coke machineswhere we sold nickel Cokes in the little originalCoke bottles, and everybody would go down thereand sit around … for 10 or 15 minutes and then goback to our offices.

Three o’clock in the afternoon, same thing. … Itwas something that brought all of the peopletogether, so even if you were a new employee whoknew virtually no one in the company, within a

Left: Donald G. LaFerla was the first head ofdata processing and an officer of Leggett &Platt for almost 30 years. He coordinated theconstruction of two major additions to thecorporate office complex in Carthage.

Below left: This chart shows the company’sproducts and markets in the early 1970s.

Below right: Spring wire, drawn at the new wiremill in Carthage, sits on a take-up carrier.


matter of a week or so, you were certainly goingto get exposed to all those people.21

Don LaFerla’s responsibilities grew along withthe company, and he eventually served as vice pres-ident of information technology and as a companyofficer until his retirement in 2001.

Growth and Obstacles

In the first half of 1973, Leggett & Platt acquiredtwo more complementary businesses. In February,it purchased Paramount Paper Products Companyof Alma, North Carolina. As a manufacturer of cel-lulose wadding, padding, and other products forthe furniture industry, Paramount was added toLeggett’s packaging division.22

In April, the company acquired MiddletownManufacturing, Inc., of Simpsonville, Kentucky.Middletown produced mechanical assemblies for

recliners and swivel rockers as wellas other metal furniture compo-

nents. This acquisition gave Leggettan innovative mechanism, later named

the “Wall Hugger®,” which allowed a recliner tobe placed one inch from a wall.23

Although the company continued to benefit fromacquisitions in 1973, higher interest rates, increasedmaterial and operating expenses, and heavy start-up costs stifled earnings. Harry Cornell, Jr., identifiedthree of the difficult start-ups in the 1973 AnnualReport: “Compared with the preceding year, 1973was significantly penalized by losses in start-up situ-ations—principally at Hominy, Oklahoma; Mason,Ohio; and a new sleeper fixture plant at Ennis,Texas,” he said.24

Expansion costs for manufacturing andwarehouse properties totaled $7.3 million andincluded 60,000 square feet at Linwood, NorthCarolina; 17,000 square feet at Grafton, Wisconsin;and 32,000 square feet at Phoenix. Fire damageat a nearly complete 50,000-square-foot additionto the Dalpak plant in Dallas delayed occupancyinto the next year.25

Despite these costs, the slowing economy, andother operational challenges, production was underway on two of the new products licensed in 1971:Spühl AG’s molded mattress core and StandardBox’s Lectro-LOK® box spring unit.

Above left: Using a Cornell Tester developedby Cornell University, Leggett & Platt testedits sofa sleeper mechanism by maintainingpounding pressure on the unit all day long.

Above right: This grid top welder machinewas used in the manufacturing of a new boxspring design.

Center: A close-up of one of the company’s mattressinnerspring units.


Machinery design for Lectro-LOK®

proved difficult. After experimentingwith a few prototypes, Leggett & Platthired the Frank L. Wells Company tobuild an efficient machine that allowedLeggett to supply proprietary versionsof Lectro-LOK® to select customers.26

The production of this unit wasvital to the proliferation of the com-pany’s box spring frame assembly facil-ities throughout the country. “The ini-tial Lectro-LOK® box spring … was thefirst version of Leggett transferring from the old coil …into a more automated box spring, which finally gotus over to our products that we’re currently in today,”explained Felix Wright, then vice president of Leggett& Platt and Eastern division manager of the productsgroup. “So that was kind of a middle step.”27

Thomas J. Wells, Sr., of the Frank L. WellsCompany, joined Leggett & Platt as director of manu-facturing services in 1974. He said Lectro-LOK® rep-resented a new mindset for the industry as a whole:

It was a huge, huge paradigm shift for [boxspring] foundations and allowed Leggett to geta greater market share of the industry … and itallowed Leggett’s customers who were using thatinnovation to get a higher margin on their finishedfoundations at retail.

It was a unitized top, just all one piece. Heretofore,those tops had all been hand-laced together withmultiple shapes of wire and springs and a lot oflabor and a lot of noise and not much firmness anda lot of material content. It was almost like dayand night—the two foundations—although they didthe same thing. They performed so differently thatit led almost everybody in the industry to use it.Competitors were forced to try to design productsthat went around our patents but provided some ofthe same advantages.28

Recession

By 1974, the nation was experiencing an eco-nomic recession. For the first time in 12 years, Leggett& Platt did not increase its annual earnings, whichdropped 11.9 percent, from $3.7 million in 1973 to$3.3 million in 1974.29

Part of this decline resulted from a change in thecompany’s method for valuing its steel rod and wireinventories. On January 1, 1974, Leggett changedfrom a FIFO (first in, first out) method of account-ing, to a LIFO (last in, first out) method.30

Earnings were further reduced by a scarcity ofraw materials until late in the year, at which point theindustry experienced a drastic drop in retail demand.As a result, dealers and manufacturers were caughtwith excessive inventories and ordered fewer prod-ucts from Leggett, reducing its sales and earnings.

Lack of sustained profitability led Leggett &Platt to close its sawmill in Naples, Texas. The com-pany suspended operations in April and placed theproperty for sale in August. In July, the companyacquired an internal source of plastic products,Foothills Manufacturing, Inc., of Forest City, NorthCarolina. This business produced injection-moldedplastic components for furniture manufacturers.31

Concerning manufacturing and facility expan-sions, Leggett increased its production of Lectro-LOK®

and enlarged its aluminum die-casting operationsat EST in Grafton, Wisconsin. In Springfield, Missouri,the company completed an 80,000-square-footexpansion. In Atlanta, Georgia, it acquired land and a426,000-square-foot building to relocate Masterackacross town.32

74

Left: From his start date in 1974 to hisretirement in 2003, Thomas J. Wells, Sr., andthe teams he led continually improved Leggett& Platt’s machinery, manufacturing processes,and products. He had 72 innovations patentedin his name or with his name as a co-inventoror member of the patent applicant group.

Below left: Lectro-LOK® box springs, with their gridtop design, became popular worldwide. This photoshows how two extra-long, twin-size box springsappeared when manufactured for a king mattress.


In Carthage, a new technical center, designedto serve both customers and personnel, was nearlycompleted. It would be staffed by specialists engagedin product testing and in research and developmentof new products and equipment.

That year, the U.S. Department of Justice filedanother civil suit against Leggett & Platt, allegingantitrust violations in the 1972 acquisition of theMetal Bed Rail Company. Like the previous anti-trust suit, the government sought divestiture ofthis acquisition. As for the suit filed in 1971, the U.S.District Court in Cincinnati dismissed the case inAugust 1974. Unfortunately, the governmentappealed the decision, causing the case to carryover into another year.33

Strengthening Its Position

While the recession lessened Leggett & Platt’sprofitability well into the second quarter of 1975,net sales rose 4.2 percent to more than $98 millionby the end of the year. Earnings, however, dropped1.5 percent to $3.2 million.34

In the nation’s bicentennial year of 1976, thecompany also celebrated historic achievements.Harry Cornell announced:

The year 1976 was fittingly one of consider-able accomplishment. … It marked the end of adecade, our first as a publicly owned company. …Sales in 1976 increased 19.7 percent to $117.7 mil-

lion, exceeding the $100 million level for the firsttime. Net earnings were a record $2.01 per share,up 59.5 percent from the earlier recessionary levelof $1.26 per share.35

That year, Leggett added a sleeper fixture oper-ation at Middletown Manufacturing and also estab-lished eight box spring assembly operations to bet-ter serve customers in the Western and SoutheasternUnited States.

Late in 1976, the company acquired 92.3 percentownership of Phillips Foscue Corporation, a manu-facturer of polyurethane foam purchased mainly bythe upholstered furniture industry. This acquisitionstrengthened the company’s position as a leadingcomponents supplier to the household furnitureindustry, which was estimated to grow 11 percent inthe next year.36

In 1977, disruptive winter weather and aneight-day strike at the Simpsonville, Kentucky, plantimpeded earnings early in the year. Earnings werealso affected by a restructuring of marketing meth-ods in the Atlanta operations, which eliminated man-ufacturers’ representatives, and by the closure ofan unprofitable operation in the packaging division.

Leggett & Platt often explored potential acquisitions throughcontacts at its trade shows. The above display is from a tradeshow in the 1970s.


Sales improved, however, by the end of the first quar-ter and continued to increase throughout the year.37

In 1977, Leggett & Platt expanded beyondthe U.S. border by purchasing 50 percent equity inGlobe Spring and Cushion Company, Ltd., ofToronto, Ontario. Globe produced springs for mat-tress and upholstered furniture manufacturersin Canada and gave Leggett a manufacturingsource and distribution center there.38

In an effort to expand its wire-drawing capabili-ties, in January 1977, the company acquired a97 percent ownership in Adcom Metals Company,which had plants in Jacksonville, Florida, andNicholasville, Kentucky. For the fiscal year that endedin October 1977, Adcom had net operating earningsof $1 million on net sales of $17 million.39

With capital expenditures in 1977 totaling$5.7 million, which included five new satellite opera-tions and two major plant additions, Leggett & Platthad enough assets in place to support an annualsales volume of more than $200 million.40

Also in 1977, Leggett & Platt began constructionon a new 35,690-square-foot corporate headquar-ters. Set in the countryside four miles west ofCarthage, the building’s rustic exterior of cedar andlocally quarried stone was designed to appear at homeamidst the natural surroundings. Anticipatingexpansions to this facility, management purchaseda substantial quantity of additional stone to beused in future additions.41

At this time, Leggett was investing more than$1 million annually into research and development,focusing largely on designing new products andimproving existing ones through customer feedback.Those products improved through customer inputincluded the Lectro-LOK® box spring and the WallHugger® recliner hardware.42

Dennis S. Park, senior vice president and headof commercial fixturing and components, joinedLeggett & Platt in 1977. Concerning research anddevelopment, he said:

We’re constantly challenging ourselves froma development standpoint to make sure that weare bringing that next innovation, that nextdevelopment opportunity to our customers. Some-times that will come within an acquisition. Some-times it will come internally. But we’re pre-pared to take both of those cases as long aswe know we’re taking to the customer whatwe think is the highest value component for theirbusiness mix.43

76

In 1977, Leggett & Platt began construction on a new35,690-square-foot corporate headquarters built of nativestone in a meadow about four miles west of the town ofCarthage. Additional quantities of stone were quarried andheld for later expansions.


By the end of 1977, only a year after reaching the$100 million sales mark, the company had increasednet sales 33.3 percent to $159.9 million and raisednet earnings 22.7 percent to $6.5 million.44

Resolution

On January 25, 1978, Leggett & Platt and theU.S. Department of Justice agreed to settle the twopending antitrust lawsuits. In June, when the finalsettlement was made, the court found no fault on thepart of Leggett & Platt, but required the company tosell its J. R. Greeno Company spring assets inCincinnati and its metal fabrication plant in Hominy,Oklahoma. At the time of the settlement, these facil-ities provided less than 3 percent of the company’sconsolidated sales.45

Many who were involved in the lawsuitsrecalled that they came about essentially becauseLeggett & Platt was a minor player attemptingto make major acquisitions at a time when regu-lators scrutinized almost every acquisition. HarryCornell, Jr., commented on the lengthy litiga-tion process:

It would have been much easier to … acqui-esce. But you say that the first time, and it’s a loteasier to say it the second and third. … This was

when we started getting things going and didn’twant to slow it down.

We had three lawsuits going on … Motor CitySpring … Greeno … and … Metal Bed Rail. TheMotor City acquisition was finally settled after alengthy investigation by the Justice Department outof their Chicago office. This process of several yearstook a heavy toll on me personally. Up until the timethat Bob Jefferies joined the company as generalcounsel in 1977, I was totally involved in dealingdirectly with our outside counsel in both Dallas andCincinnati and attended every deposition. I sure gota lesson in antitrust law and trying to deal withthe Justice Department.

Ultimately, we came up with the theory of sub-stitution of assets [the exchange of like productionand some machinery]. … We negotiated a deal thatwas to our liking; we did not have to divest theassets we most wanted to keep. And those werereally key operations; we got great customers in goodmarkets geographically dispersed. We were very for-tunate that our corporate counsel, Locke–Purnell, gaveus good guidance and eventually referred us to addi-tional counsel in Cincinnati. Our outside counsel stim-ulated us and could think with us.46

The resolution ultimately came about in 1978, inpart because of wise counsel from Robert A. Jefferies,

Top left: Liquid urethane, poured for the foamingprocess, was set to a predetermined density andused in the manufacturing of furniture components.

Top right: Drawn wire began as raw bundles of steelrod, which were cleaned in acid and hot water vatsand moved through the process with the aid of agantry crane operator.

Bottom left: Wire inventory at the Carthage wire millawaits shipment to company plants nationwide. Themill provided Leggett & Platt with an internal sourcefor materials and enhanced its ability to branch intoother complementary industries.

Bottom right: Finished wire, in specified sizes, fedonto carriers that were later transferred to wireworking areas.


who was hired as general counsel in 1977 and facedthe unenviable task of providing Harry, his new boss,with a surprising perspective:

[Harry] was quite frustrated by the lack ofprogress, and one of my first unfortunate duties wasto tell him that one of the biggest reasons for our lackof progress was our CEO. …

Harry likes to win everything 100 percent, andpart of the discussion was that we would not winthis 100 percent. This would never end. It wouldgo on and on and on. Harry was the sort of personwho couldn’t let go. He took a very active role, andpart of the reason that he wanted me to come wasto find a way to constructively interject myself sothat he wasn’t constantly dealing with the “GordianKnot.” … But a big turning point was the realization,

I think, on his part, that we couldn’t keep everythingthat we had bought, that we were going to have topart with some assets, and it was just a question ofwhat was least valuable to us.47

The lawsuit settlements, however, imposedtwo stipulations on the company. For 10 years,Leggett & Platt could not acquire any beddingspring manufacturers, and for five years, it was notallowed to purchase any manufacturers of metalbed frames or specified related products east of theRockies without obtaining prior consent. These stip-ulations did not preclude Leggett from acquiringspring plants from vertically integrated mattressmanufacturers or innerspring manufacturers thatwere liquidating, in bankruptcy, or near bankruptcywith no other likely buyers.48

78

IN 1954, RALPH V. JOHNSON, A MISSOURI TERRI-tory salesman, was promoted to work for HarryM. Cornell, Sr., as Leggett & Platt’s assistant

sales manager. Johnson subsequently served assales manager and, later, vice president of mar-keting and sales. From the mid-1950s until 1985,he led Leggett’s marketing and sales efforts, witha special emphasis on bedding products.1

MARKETING WITHWIT AND WISDOM

Ralph V. Johnson, pictured above in 1980, was anextraordinary leader in Leggett & Platt’s marketingefforts. Coworkers Jay Sanders (immediate left) andEloise Nash (far left) supported him for many years,helping create a fun, hardworking marketing group.

Fortunately, the company was already well alongthe path to diversification—a path Harry Cornell, Jr.,and the management team had created nearly twodecades earlier.

Around the time of the lawsuits’ resolution, thecompany restructured its operations management tomatch its product lineup, creating a diversified prod-ucts group, a fabricated steel and wood productsgroup, and two bedding and furniture componentgroups, divided geographically (East and West). Acorporate vice president who reported directly toFelix E. Wright, executive vice president and chiefoperating officer, led each group.

In the 1978 Annual Report, Wright told share-holders the company’s focus on research and devel-opment was strengthening its position as a leadingsupplier of home furnishings components. Successful

examples of R&D output included the Snap-LOK™

technology, which joined the Lectro-LOK® box springlineup, and various types of “action” or “motion”hardware for furniture components, including thethree-way Imperial Wall Hugger® mechanism forrockers and the Flotura™ assembly for convertiblesofas.49 Wright also announced:

Recently received machinery will enable Leggettto produce the Continuous Coil with enhanced effi-ciency and commercial feasibility. This revolutionarybedding component has lacked until now themachinery breakthrough justifying a capital invest-ment for mass production.50

As product demand rose, Leggett & Platt in-creased its wire capabilities by forming a wholly


Coworkers Eloise Nash and Jay Sanders(among others) supported Ralph Johnsonfor many years. Nash coordinated customerservice nationwide for bedding products; asvice president of national internal sales andbedding components, she was one of Leggett’sfirst female officers. A friendly, lively woman,Nash was also known to have a hearty laughthat could be heard many offices away. Sanders,also an interesting story and joke teller, becamevice president/director of marketing and sales–bedding components upon Johnson’s retire-ment in 1985. They were hardworking, fun,and successful.2

Robert A. Jefferies, Jr., then vice president,general counsel, and secretary of the company,wrote Ralph V. Johnson’s Rules of Marketingin 1980. A framed version of the rules waspresented to Johnson at a meeting of the com-pany’s divisional marketing and sales people inApril that year.

The rules were intended to be humorous,but were also full of homespun truths, neatlycapturing Johnson’s wit and wisdom. The read-ing of the rules brought laughter and know-ing nods from the sales staff, with the event typ-ical of the high-spirited fun this group of Leggettpartners enjoyed.3

Ralph V. Johnson’s Rules of Marketing were presentedto divisional marketing executives of Leggett & Platt onApril 24, 1980, at the National Technical Center inCarthage, Missouri.


owned subsidiary, Leggett Wire Company, throughwhich it acquired all the outstanding capital stock ofAdcom Metals Company, Inc. This acquisition thenbecame half of a partnership with a wholly ownedsubsidiary of Armco, Inc., forming a new companyknown as Adcom Wire. Armco agreed to supplysteel rod under a long-term contract.51

After adjustments for a 3-for-2 stock split inSeptember 1978, Leggett & Platt finished the yearwith dividend payments 20.5 percent higher than theprevious year.52

Joining the Big Board

In 1979, the company acquired several opera-tions, including a spring plant in High Point, NorthCarolina, as well as two facilities in Los Angeles—afabricated steel plant and certain assets of the DeLamar Bed Spring Corporation.53 Art Glassman, wholater became president of Leggett’s Western division,came to the company in the De Lamar acquisition.54

The company also purchased a large numberof outstanding shares of the Missouri Rolling MillCorporation (MRM). (Leggett later acquired theremaining outstanding shares as well.) Located inSt. Louis, MRM fabricated steel angle products forLeggett and other companies in the Midwest.55

Leggett & Platt experienced two unsuccessfulacquisitions in 1979. In April, the company pur-

chased 50-percent interest in Futron Plastics of NorthCarolina. By the fourth quarter, it was apparent thatFutron’s earnings for the first three quarters were sig-nificantly overstated. In November, the investment inand loans to Futron were completely written off.56

Leggett also purchased 50-percent ownershipin Tiffany Textile Corporation, a small, West Coastdistributor of bedding ticking, which was expectedto broaden Leggett’s product line into mattress andfurniture ticking and fabrics and to extend Tiffany’smarkets through Leggett’s national distribution.Unfortunately, the venture did not perform welland was soon liquidated.57

In addition, five years after its closing in 1974,the assets of the Naples, Texas, sawmill were soldfor a nominal gain in 1979.58

80

The completion of new corporate offices in 1978 allowedLeggett & Platt to relieve the pent-up demand for additionalstaff in 1979. Six employees from the “Class of 1979” earnedsenior-level responsibilities. Pictured (from left to right) are JohnHale, senior vice president of human resources; Rich Calhoon,vice president of investor relations (retired in April 2002);Ernest Jett, senior vice president and general counsel; SusanHigdon Downes, treasurer (retired in December 1997); JeffDymott, staff vice president of operations; and Matt Emmert,assistant corporate controller.


Perhaps the most significant news of 1979,however, came in June, when Leggett & Platt cel-ebrated its listing on the New York Stock Exchange(NYSE) under the ticker symbol LEG. During thefollowing quarter, the stock’s closing price rangedfrom $12.38 to $15.63; the quarter’s volume totaled237,300 shares traded. At year’s end, shareholdersof record numbered 2,056, with some 500 employ-ees holding approximately 10 percent of theshares, and roughly 20 percent held by officersand directors.59

By the end of the 1970s, Leggett & Platt hadbecome a larger, stronger, and wiser corporation. InDecember 1979, the company had approximately5,400 employees, with sales totaling $215 million.60

For the 10-year period, 1970–1979, Leggett’s salesand earnings increased at compound annual ratesof 19.6 percent and 16.2 percent, respectively.61

With a solid strategy, a sound financial foundation,and a seasoned management team, the companywas prepared for further growth.

Photographed at the New York Stock Exchange, where Leggett& Platt’s stock was listed in June 1979, are (from left to right):Felix E. Wright, executive vice president; Harry M. Cornell, Jr.,president; G. Louis Allen, vice president and treasurer; andRobert A. Jefferies, general counsel. (Photo courtesy of WagnerInternational Photos, Inc.)

The Mira-Coil® continuous coil innerspring unit grew in popularity in the 1980s and was patented in 23 countries.

C H A P T E R S I X

BROADENING ITS BASE1980–1989

LEGGETT & PLATT’S 1980 SALES GREW

to a new record of $229 million,resulting in earnings of $2.06

per share, a 21.2 percent increase over1979. Issues that dampened the com-pany’s 1980 earnings included a firstquarter diminished by inflationary costsand an acceleration of the recession,leading to a sharp decrease in demandin the second quarter.2

Though Leggett & Platt had become a companyof nine-digit sales, it was also proving quite nim-ble. Over the course of the year, the company main-tained its profitability by paying close attention toproduction schedules, inventory levels, labor costs,and utilization.3

The patent infringement lawsuit the companyhad battled since 1973 was finally resolved in itsfavor in 1980, allowing Leggett & Platt to proceedwith uninhibited production of its Wall Hugger®

recliner mechanisms.4

Furthermore, the company’s research anddevelopment efforts were benefiting from outputat two major facilities—the original National Tech-nical Center in Carthage and the “Tech Center”showroom in High Point, North Carolina. The latterof these, located in the heart of the furniture indus-try, served as a display area for the company’s fullline of components.

At a corporate development and strategic plan-ning meeting at year’s end, committee members

reviewed the company’s objectives.Originally formulated in the 1960s,these objectives were reassessed anddiscussed over the years and providedbroad strategic guidelines aimed atenhancing shareholder return.5 In1980, the committee specifically dis-cussed the potential pursuit of acqui-sitions in broader market segments,

including segments not particularly complemen-tary to bedding, furniture components, or othercurrent holdings. Although, at that time, the com-mittee decided not to pursue such acquisitions, themembers agreed that acquisitions needed to be“larger in size [and] involve more profitable compa-nies, with good management in place.”6 Such peri-odic strategy discussions helped set, and sometimesmodify, the vision and strategy that drove Leggett& Platt’s activities.

On the bedding products side, the companyhad begun limited production of its long-awaitedMira-Coil® continuous coil innerspring. In 1981, thecompany reported that the Mira-Coil® product andthe machinery for its production were patented in23 countries.7

We firmly believe that service to our industry and to every customer isLeggett’s reason for being and its opportunity.

––Harry M. Cornell, Jr.1

Products manufactured at the EST division for a majorcustomer included a variety of propellers that were cast,polished, and painted.


That same year, Leggett & Platt also formed aninternational division, which pursued opportunitiesfor licensing agreements and sales of machinery withinternational finished product manufacturers andcomponents suppliers. The division’s president, LarryHiggins, met with bedding manufacturers worldwide,spreading word of Leggett & Platt’s expertise in spring-making machinery, technology, and manufacturing

processes. This international scope of operationscomplemented the company’s goal to become nation-ally recognized as The Components People® in thehousehold furniture industry.8 In the 1981 AnnualReport, Felix E. Wright, then executive vice presidentand chief operating officer, explained how the com-pany was prepared to meet this goal:

Leggett & Platt’s operating style reflects the effec-tive combination of two fundamental ingredients:first, an aggressive marketing policy complementedby various supporting services; and second, a will-ingness of management to commit capital as neededto gain market position and operating efficiencies,thereby improving profitability.

Our management organization has been devel-oped in anticipation of and responsive to the needsof growth. Strong emphasis is placed on decentral-ized management of operations in coordinationwith central policies. Operating managementresponsibilities generally emphasize geographicrather than product-line distinction. Corporate offi-

cers and staff administer centralizedfunctions and provide various sup-porting services to group, division, andplant management.

Internal management developmentis encouraged and compensation pro-grams include the concept of profit incen-tives at all management levels. Approx-imately 570 management personnelparticipate in incentive programs thatmay reward individuals when objec-tives are met, as if each of them were apartner in the organization.9

1883: Joseph P. Leggett develops and patents the first successfulspiral-steel coil bedspring, then forms a business partnership withhis future brother-in-law, Cornelius B. Platt, a blacksmith, whooperates the C. D. Platt Plow Works plant in Carthage, Missouri.

1885: J. P. Leggett receives a patent for improvements on thecoiled bedspring. Leggett and C. B. Platt begin manufacturingcoiled bedsprings at the Platt Plow Works plant.

THE FIRST 100 YEARS: 1883–1897

1895: Harry Platt, a brother of C. B. Platt, opens a franchisefactory in Louisville, Kentucky.

1897: The partners move to a building on the corner of Secondand Maple Streets in Carthage.

Above: The “Super Excalibur” display units,manufactured by the Masterack division andintroduced in 1980, enlarged retail storebeverage sections by 25 percent.

Right: Larry Higgins was named president ofLeggett & Platt’s international division in1983. He traveled worldwide selling andleasing Leggett & Platt’s innerspringproduction machinery.

C H A P T E R S I X : B R O A D E N I N G I T S B A S E 85

End of a Century

In 1982, as Leggett & Platt approached its 100th

anniversary, considerable changes in the manage-ment team occurred. The death of chairman MackCornell early in the year was an incalculable loss tohis family, friends, and the company. Mack hadserved as a board member and a company leaderfor 47 years.10 He was hired as Leggett’s sales managerin 1935 and continued to direct the sales team afterbecoming president in 1953. He remained presidentuntil 1960, when he was elected chairman of theboard, the position in which he remained until hisdeath. Harry M. Cornell, Jr., was elected chairmanafter the passing of his father, while also maintain-ing his responsibilities as president and CEO.11

Two important leaders also retired that year—Edwin C. Sandham, president of Leggett & Platt’sEST division, and Frank Ford, senior vice presidentof the diversified products group. Both continuedto serve on the company’s board of directors.12

In 1982, Karl G. Glassman joined Leggett &Platt as a Western division sales representative, tak-ing advantage of the opportunity to work alongsidehis father, Art Glassman. Karl already had severalyears of experience in the business, having worked


1901: The partnership of J. P. Leggett and C. B. Platt is incorporatedunder the name “Leggett & Platt Spring Bed & ManufacturingCompany.” The initial members of the board of directors areCaffee, Hall, Leggett, McClurg, Newell, Ornduff, and Platt; thereare 16 initial stockholders, including all seven directors.

1904: Pacific Spring Bed Company of Oakland, California,begins manufacture of the Leggett Patent Steel Spring Bed.

1905: George D. Leggett (brother of J. P. Leggett) joins theboard of directors and serves until 1934.

1911: Plant is established in Windsor, Ontario; C. E. “Jack”Platt, son of C. B. Platt, becomes manager.

1921: Founder J. P. Leggett dies in the spring. C. B. Plattbecomes president.

Leggett & Platt’s division managers pose for a group photo inDecember 1981 at the company’s National Technical Center inCarthage, Missouri.


for De Lamar Bed Spring Corporationof Los Angeles, a company owned byhis mother’s family, before Leggett &Platt purchased it in 1979. “I graduatedfrom high school on a Sunday, and mydad said, ‘Congratulations. Your shiftstarts at 5:30 tomorrow morning, sodon’t be late.’”13

Starting on the factory floor atDe Lamar, Karl Glassman eventuallybecame the company’s productionmanager, a job he continued into hisearly college years. Although Leggett & Platt wasinterested in retaining both father and son, at thetime of the De Lamar purchase, Karl chose to returnto college full time to earn a degree in manage-ment and finance. He was already on the road toa career in banking when the sales position at hisfather’s division became available. It was the first ofseveral positions that Glassman would hold withLeggett & Platt.14

Throughout 1982, Leggett expanded its pro-duction capacity for Mira-Coil®, anticipating greater

sales as the international divisionnegotiated with manufacturers andsuppliers abroad.15

Although the company’s salesincreased by 4.7 percent for the year,net earnings dropped by 23.6 percent.The company struggled to continueits past record of gains in the face of arecession. Undaunted, Harry Cornell,Jr., said in the Annual Report:

A decrease in earnings is alwaysdisappointing. Yet, there is satisfaction in the factthat in 1982, your company operated in the mostdifficult business environment of its 22-year historyunder current management and emerged withundiminished financial strength, industry position,and growth potential.16

That “difficult business environment” was theresult of a recession that lingered beyond economists’projections.17 Rather than the recovery in consumerspending that was predicted for the third quarter, theyear ended with high unemployment, and consumer

spending inhibited by credit card andinstallment debt.18 As a result,

household furniture expendi-tures, as a percent of personalconsumption, reached theirlowest point since the 1960s,a factor attributed in part tothe postponable nature ofsuch expenditures, as well as

to the lower level of price infla-tion in furnishings as a whole.19


1933: George S. Beimdiek, Sr., joins the board of directors andserves until 1959. The plant in Carthage begins to manufactureinnerspring units.

1934: Harry M. Cornell, Sr. (son-in-law of J. P. Leggett) joins theboard of directors and serves until 1982.

1925: A new, 49,500-square-foot factory is built in Carthage onWest Vine Street.

1929: Founder C. B. Platt dies. J. P. Leggett, Jr., becomes president.Frank B. Williams joins the board of directors and serves until 1947.

1932: J. P. Leggett, Jr., steps down as president due to healthproblems, and Frank B. Williams takes the helm as interim president.

Above: Karl G. Glassman joinedLeggett & Platt in 1982 as aWestern division salesrepresentative.

Right: An attractive brasspaperweight memento was distributedto various individuals to commemorateLeggett & Platt’s 100th anniversary in 1983.


THE ARRIVAL OF MIRA-COIL®

IN 1968, LEGGETT & PLATT BEGAN WORK ON A

promising new continuous coil concept forinnersprings. After two years and several failed

designs, Leggett hired the Frank L. Wells Companyof Kenosha, Wisconsin, to help develop the prod-uct and machinery.

Tom Wells, Sr., a fourth-generation familymember of the Wells Company, began workingon the continuous coil project and ultimatelyjoined Leggett in 1974. The work continued until1976, when Tom told management that “every-thing developed to that point had to be scrapped.It was absolutely no good and wouldn’t work.”1

Costs for the project at that time had alreadyreached into the millions.

Leggett’s engineers began again and eventu-ally invented a spring unit and machinery thatare still used today.

Before they succeeded, however, the designteam faced some additional complications. Wellsrecalled a demonstration meeting intended toconvince nearly two-dozen VIPs from a majormattress company (and its parent company) touse the continuous coil unit for their best-sellingmattress. In preparation for the meeting, the engi-neers worked nonstop for almost two days, onlyto find that their efforts were useless:

The machine wasn’t going to work, so I sentthe other four guys home. Then I went home

and put on a suit and a tie because I was theringmaster who was supposed to demonstratethe machine.

[The] contingent arrived, but after an hour ofstanding around and wanting to see the machinerun at least one cycle, Leggett’s managers hadenough embarrassment for the day and called thegroup back to the boardroom for lunch. During thatlunch, which I was not a part of, the customer’sresearchers and engineers told Harry Cornell thatthe concept was no good and would never work.

Harry called me up after they left and told mewhat they’d said. He asked, “Tom, will it work?” Isaid, “Yes,” and then all he said was, “Well, getafter it.” No failure was ever fatal with him.

Eighteen months later, we sold an improvedand fully automated product to another of thenational mattress companies. It’s still part oftheir flagship line.2

Wells explained that Leggett named its firstcontinuous coil unit Mira-Coil® because the vicepresident of sales at the time, Ralph Johnson, said,“It’s going to be a miracle if that thing ever works.”3

Mira-Coil® proved a miracle in more waysthan one: It used about 35 percent less wire thanother innerspring products used at the time of itsinitial introduction to the marketplace, and con-tinues today to provide the same resilience andfirmness as a traditional mattress.4


Celebrating 100 Years

In 1983, Leggett & Platt celebrated 100 years ofcontinuous service. In a brochure distributed toemployees, customers, and family members, HarryM. Cornell, Jr.—chairman, president, and CEO—attributed the company’s achievements to the loyaltyof its customers and its employees:

We firmly believe that service to our industryand to our every customer is Leggett’s reason forbeing and its opportunity. In celebrating the com-pany’s centennial year, we offer our most sincereappreciation to our loyal customers for their busi-

ness and reassure each one of them, large andsmall, that our commitment to unparalleled andconstant customer service in every respect will con-tinue to be our goal.

We also want to express our deepest pride andappreciation for all the loyal people of Leggett &Platt and their families, who over these 100 yearshave been responsible for our company’s success.From inception, management and employees, toonumerous to name, have continuously demon-strated a dedication to success based on the entre-preneurial spirit of partnership with which our com-pany was founded and which today continues tobe strongly encouraged.20

1935: Harry M. Cornell, Sr., joins the company as a vice president andsales manager. By a narrow margin, stockholders vote against theproposed sale of Leggett & Platt to the L. A. Young Spring and WireCorporation of Detroit.

1937: The Great Ohio River Flood swamps the Louisville plant, whichultimately moves to 25th and Maple Streets.


1938: F. B. Williams steps down as president, but continues as boardchairman. George S. Beimdiek, Sr., is named president, treasurer, andgeneral manager. A factory in Dallas is opened, and Leggett & Plattacquires the equipment of the Daltex Company, a small Dallas-areabedspring manufacturer, to use in the plant.

1942: Leggett survives World War II by working on defense contracts.


The company completed four substantial acqui-sitions in 1983. In January and February, Leggett& Platt purchased the stock of the Nachman Cor-poration of Des Plaines, Illinois, a competing man-ufacturer of bedding components. At the time of theacquisition, Nachman had seven manufacturingplants and a product lineup similar to, and in somecases overlapping, that of Leggett & Platt.Though Nachman’s sales reached $24.3 millionthe year before the acquisition, the company wasstruggling to make a profit.21 Following the pur-chase, Leggett & Platt began to consolidate corpo-rate functions, plant facilities, and products toimprove efficiencies in Nachman operations.22

By mid-summer, Leggett & Platt had purchasedthe operating assets of the Cyclo-Index Corporationof Cleveland, Ohio.23 The company’s Cyclo-Index®

mechanical motion control system, which improvedthe operating performance of manufacturing machin-ery, had been used by Leggett & Platt in recent years,


1945: Leggett purchases a warehouse in Winchester, Kentucky.

1947: Leggett sells its Dallas property and moves to Ennis, Texas.

1950: Harry M. Cornell, Jr. (grandson of J. P. Leggett) joins thecompany as a sales trainee in Louisville, and transfers to Kansas as acommissioned salesman in 1952.

1953: Harry M. Cornell, Sr., is elected president, following theretirement of George Beimdiek, Sr., while Harry M. Cornell, Jr.,becomes manager of the Ennis, Texas, plant.

1958: Harry M. Cornell, Jr., joins the board of directors.

1959: Felix E. Wright is hired by Harry M. Cornell, Jr., as a salestrainee at the Ennis facility.

Opposite: In 1983, Leggett & Platt’s centennial year, AndyThomas of the company’s marketing services departmentpainted an oil-on-canvas mural. Now an established painterand muralist, Thomas still considers himself a member of theLeggett & Platt family. According to Thomas, the detail of themachinery in the mural was some of the most difficult imageryto capture on canvas. The original company owners, C. B. Plattand J. P. Leggett, are pictured sitting at a table. Later partnersFelix E. Wright and Harry M. Cornell, Jr., are to the rightholding a ticker tape. Other people include various members ofthe board, management, and employees. (Painting printed bypermission courtesy of Andy Thomas.)

EXCEPTIONALSERVICE

ON MARCH 19, 1983, HARRY M. CORNELL,Jr., received the “Award for ExceptionalService” from the National Association

of Bedding Manufacturers (NABM), which istoday known as the International SleepProducts Association (ISPA).1

resulting in a 20-percent increase inthe manufacture of coil springs.24

That summer, Leggett & Platt alsoacquired Parthenon Metal Works,Inc., of La Vergne, Tennessee. Parthe-non was a manufacturer of weldedsteel tubing and a significant supplierto Leggett & Platt. The purchase ofParthenon brought Leggett & Platt anew internal source for raw materialssuch as steel tubing and slit coil steel.25

Before the year ended, Leggett pur-chased Bedline Manufacturing Company of LosAngeles. Bedline, which manufactured and soldsteel bedding products and convertible sofa mech-anisms, broadened Leggett’s network of nation-wide manufacturing and distribution facilities forbed frames and sleeper fixture hardware. It alsoaccelerated the growth and development of an ear-lier acquisition, Signal Manufacturing, another LosAngeles–based producer of sleeper hardware.26

Two other major events in 1983 included a2-for-1 stock split (resulting in the issuance of

4,040,852 new shares) and the hiringof David S. Haffner, a Carthage native,as a group vice president of opera-tions.27 His first responsibilities involvedoverseeing the company’s Wisconsin-based aluminum die-casting opera-tions. In the decades to come, he wouldbecome a pivotal member of the Leggett& Platt management team.

In 1983, both sales and earningsrebounded dramatically. Sales wereup 21 percent to more than $354 mil-

lion, and earnings had skyrocketed by 58 percentto $15.6 million.28

For the savvy few who invested in the com-pany’s initial public offering in 1967 and held thestock, the financial rewards were sensational. In1967, one share of Leggett & Platt stock initiallysold for $10; an investment of $1,000 would


1960: Harry M. Cornell, Sr., becomes chairman of the board.Harry M. Cornell, Jr., becomes president and CEO, and beginsimplementing a new corporate strategy to broaden the line ofcomponent products for the bedding and furniture industries, expandgeographically, and offer compatible products directly to furniturestores. Felix E. Wright becomes manager of a new branch factory inPhoenix. The company acquires C. A. Bissman ManufacturingCompany, a case goods manufacturer in Springfield, Missouri.


1963: The company adds a spring factory in Oklahoma City.

1967: Leggett & Platt carries out its initial public offering of 50,000shares of stock (at $10 per share) and $1 million of convertiblesubordinated debentures; the stock is listed over-the-counter.

Above: David S. Haffner joined the Leggett & Platt ranks in1983, overseeing the company’s aluminum die-castingoperations in Wisconsin.

Right: With the 1983 acquisition of the Cyclo-IndexCorporation, Leggett & Platt obtained a mechanical motion control system that improved the operating performance ofmanufacturing machinery. This photo shows the control systemin 1989.


have bought 100 shares of the stock. With addi-tional shares received from stock splits in 1969,1973, 1978, and 1983, those initial 100 shareswould have grown to 750 shares. On March 1,1984, each share was valued at $18.75, so 750were worth $14,063. On top of that, the investorwould have received cash dividends of $2,013over time, more than twice the cost of the original100 shares. Thus, over those initial 16 years,investors enjoyed a compound average growth rateof approximately 19 percent per year, based on a16-fold return of their investment from stock appre-ciation, splits, and dividends.29

Continuing to seek out complementary ac-quisitions, Leggett & Platt acquired Gordon Man-ufacturing Company of Grand Rapids, Michigan,in January 1984. Gordon manufactured chaircontrols and steel bases, primar-ily for use in office furniture,which brought Leggett & Plattopportunities for new productsand markets.30

In 1984, Leggett & Plattalso acquired the NationalFibers division of NationalBedding and Furniture Indus-tries of Memphis, which madeinsulator pads and synthetic

and cotton cushioning materials for bedding andfurniture manufacturers.31

Leggett & Platt refocused some of its resourcesin September 1984 by selling its packaging divisionto a North Carolina company. At the time of thesale, the division consisted of five plants in NorthCarolina, Arkansas, Massachusetts, and Texas,and was producing flexible furniture and bed-ding packaging, along with a variety of unrelateditems such as coin wrap, meat and poultry pads,and moving van pads.32

In a 1984 interview, Harry Cornell, Jr., explainedthe reason for the sale: “Although the pack-

aging division has continued to be prof-itable, we believe we can better investthe proceeds from this sale in otheroperations that currently fit moreclosely with our long-term growthand profit objectives.”33

Making the List

In 1985, FORTUNE ® mag-azine added Leggett & Platt toits annual listing of the 500largest industrial companiesin the United States. That April,FORTUNE ® ranked the companyas the 489th-largest U.S. indus-

trial corporation, based on its 1984sales figures. Leggett & Platt at-tained top-100 status in three ofthe magazine’s categories: in“Return on Shareholders’ Equity

for 1984,” the company ranked

Office workers nationwide use Leggett& Platt products. The woman in thisphoto sits in a chair whose base and columnwere produced by the EST division.


1968: Leggett & Platt acquires Motor City Spring Company inDetroit; Flex-O-Loc Corporation in Lawrence, Massachusetts; andKenyon Manufacturing Company in Kenyon, Minnesota.

1969: Leggett & Platt and Armco Steel Corporation build a wire-drawing mill in Carthage. Leggett & Platt also constructs a sawmillin Naples, Texas. Acquisitions include the J. R. Greeno Corporationand its affiliate, Butler Manufacturing Company, both of

Cincinnati, Ohio, and the Dalpak Corporation of Dallas. Leggett &Platt announces a 5-for-3 stock split and later issues an additional175,000 shares of common stock.

1970: Leggett & Platt acquires the Signal Manufacturing Companyof Los Angeles. Factories are built in Georgia and Texas.

IN 1991, LEGGETT & PLATT’S BOARD OF DIRECTORS DED-icated a new conference center on the company’sheadquarters campus in Carthage, Missouri, to

the memory of Mr. and Mrs. Harry M. Cornell, Sr.A large plaque commemorating the building’s ded-ication reads, in part:

Mack and Marjorie, as Mr. and Mrs. Cornell,Sr., were affectionately known to their hundredsof friends from all walks of life, served Leggett &Platt faithfully for many years.

Mack was an Officer and Director for 47 years,eventually serving as President of the Companyfor several years and then as Chairman of theBoard before retiring in 1982. Marjorie—the daughter

of J. P. Leggett, who cofounded the Company in1883—served as an active and then HonoraryDirector for 21 years. Through these 68 years ofcombined service, Mack and Marjorie, by their per-sonal example, set standards of courtesy, fairness,and sincere concern for others that shaped thecharacter of this Company.1

Harry M. Cornell, Jr., son of Mack and Marjorie,and then CEO and chairman of the board, receivedletters from many individuals recalling his parents’influence on their lives. Portions of a few of those let-ters are printed on the following page. The letters,plaque, and portraits of the Cornells are housed at theconference center that bears their name.

CORNELL CONFERENCE CENTERDedicated to the Memory of Harry M. Cornell, Sr.,

and Marjorie Leggett Cornell


84th; in “10-Year Earnings Growth,” the companyranked 57th; and in “10-Year Total Return to Invest-ors,” it ranked 52nd.34

In January 1985, Leggett purchased NorthfieldMetal Products, Ltd., of Waterloo, Ontario. As a lead-ing manufacturer of chair control mechanisms andsteel chair bases for customers in the United States,Canada, and Europe, Northfield expanded Leggett& Platt’s territory and product line.35

That year, the company also purchased Nash-ville-based Steiner-Liff Textile Products, a majorbuyer of woven textile cuttings that Leggett & Plattused as feedstock in manufacturing non-woven felt,

cushioning, padding, and automotive soundproof-ing. Steiner-Liff was considerably diversified whenLeggett & Platt purchased it, with activities thatincluded: the processing of textile fibers used asfiller for decorative pillows, sleeping bags, stuffedtoys, outdoor furniture, and sporting goods; fibersales to manufacturers of fine writing papers, stockand bond certificates, and bank notes; and themanufacture and distribution of disposable sani-tary wipes.36

In the spring of 1985, Felix E. Wright becamepresident of Leggett & Platt while maintaining hisresponsibilities as chief operating officer. HarryCornell, Jr., continued as chairman and CEO.37

That summer, Leggett & Platt announced itwould acquire Kay Springs, Inc., of Syosset, New York.Founded in 1911, this privately owned companymanufactured springs and wire components for thebedding and upholstered furniture industries. Itemployed 750 people in 11 plants across 10 states.38

By September, however, Leggett began new discus-sions regarding the purchase because of the U.S.Department of Justice’s disapproval of the acquisi-tion.39 By year’s end, with the issue resolved to thegovernment’s satisfaction, Leggett & Platt acquiredall assets of Kay Springs, Inc., except for the com-pany’s Los Angeles bedding operation.40

Gary Krakauer, a fourth-generation member ofKay Springs’ founding family, joined Leggett & Plattthrough the acquisition and became president of

1971: Leggett & Platt stock is listed on the NASDAQ stockexchange, and the company achieves more than $1 million innet earnings.

1972: The company acquires its Masterack division, whichproduces institutional beds and wire display racks. Otheracquisitions include Kraft Converters, Inc., of High Point, NorthCarolina; Metal Bed Rail Company, Inc., of Linwood, North


Carolina; and the EST Company of Grafton, Wisconsin. Leggett& Platt issues an additional 175,000 shares of common stock.

1973: The company’s stock splits 3-for-2. Leggett & Plattacquires Paramount Paper Products Company of Alma, NorthCarolina, and Middletown Manufacturing, Inc., of Simpsonville,Kentucky. Production is under way on an innerspring urethane-foam mattress core and on the Lectro-LOK® box spring unit.

Leggett & Platt’s Middletown division manufactured mechanismsthat allowed a chair to recline into several positions.


bedding components for the company’s Northeastdivision. He recalled what it was like folding hisfamily’s company into the larger corporation:

First off, we were one of the largest acquisitionsthat Leggett had made at that time, and theyspent a lot of time integrating us into their system,working with us and exchanginginformation. They had a great inte-gration team. They tried to retain asmany management and sales peoplearound the company as they could.They valued the intellectual propertieswe had and personnel that we had—terrific company to work with right offthe bat.

We learned about their generousstock programs … and the fact thateven [then] Leggett had a very strongpay-for-performance policy, with an-nual incentive bonuses going rightdown to the foreman level in the factories, so thateverybody felt that if you performed, you wererewarded as part of the team. It was a great expe-rience. I think Leggett is a great employer.41

Leggett’s management anticipated that theKay Springs acquisition would contribute approx-imately $18 million to the company’s sales the fol-lowing year.42

Although Leggett & Platt’s size was increasingevery year, the company’s strength did not justcome from its acquisitions. According to WayneWickstrom, who had joined the company in 1973 asa division sales manager and served as vice president

and director of marketing in the mid-1980s, retaining good people was justas important as acquiring new busi-nesses. He explained:

I have always felt that the peopleMr. Cornell surrounded himself with …were really the strength. The growthwas not [all] through acquisition,because during my entire tenure, wegrew about half internally and halfexternally. So it took a lot of growth justinternally to keep that pace. … I think it

was really the people that we had, and as we didacquisitions, we always kept the people.43

Full Circle

In 1986, Leggett & Platt operated in an environ-ment similar to that of the previous year, with slug-gish growth and modestly increased sales in thehome furnishings industry. Even so, the stock con-tinued to do well, and the company issued a 3-for-2stock split in March.44

In May, Leggett completed its first acquisitionfor the year—MPI, Inc., of Fort Worth, Texas. MPIwas a leading manufacturer of bonded foam carpet


1974: The Texas sawmill is put up for sale. Foothills Manufacturing,Inc., of Forest City, North Carolina, is acquired. A new technologycenter is built in Carthage. The Masterack division begins a moveacross town in Atlanta.

1976: Leggett & Platt exceeds the $100 million sales mark for thefirst time. The company acquires the Phillips Foscue Corporation ofHigh Point, North Carolina.

1977: Felix E. Wright joins the board of directors. Leggett & Platttakes half ownership of Globe Spring and Cushion Company, Ltd., ofToronto, and acquires Adcom Metals Company, which has operationsin Jacksonville, Florida, and Nicholasville, Kentucky. Constructionbegins on new corporate headquarters outside Carthage.

Hired in 1973, Wayne Wickstrom served as a Leggett & Plattvice president and director of marketing and sales for thefurniture components group from 1985 until his retirement inJuly 1999. To many furniture industry customers, Wickstromwas Leggett’s recognized ambassador.


TOGETHER, AGAIN

IN OCTOBER 1988, LEGGETT & PLATT

purchased Flex-O-Lators, bring-ing the family of cofounder C. B.

Platt back into the company. C. B.Platt’s son, Jack, established Flex-O-Lators in 1942, and Jack’s sons,Thomas and John, became presi-dent and chairman of the board,respectively. The company operatedfacilities in Carthage; High Point,North Carolina; and Azusa, Cal-ifornia. Its product lineup included wire insu-lators, springs, and suspension systems; plas-tic and paper furniture edgings; and specializedpackaging materials.1

The Platt brothers were second cousins ofHarry Cornell, Jr. Their grandmother, Willmetta(Leggett) Platt, and Harry’s grandfather, JosephP. Leggett, were brother and sister. Overthe years, Harry had maintained a relationshipwith them, introduced them to Felix Wright, andeven arranged for the companies to co-develop aproduct. When the Platt brothers decided to selltheir business, it was only natural that they con-tacted Harry and Felix.2

Jack Crusa, a certified public accountant,joined Leggett & Platt as a group specialist in 1986.He was responsible for the due diligence processand the integration of Flex-O-Lators. After the tran-sition was complete, the new operation reportedto him. Jack recently explained some of the historyand significance of this acquisition:

Jack Platt worked for L. A. Young Spring andWire until he retired. … He came back to Carthagewhere a lot of his family still lived. …

The Williams brothers, Harold and Frank, werepart of a family-run industrial lighting businessin Carthage. They held the patent for a productthat would be used as a barrier between thesprings in a mattress or car seat and the cotton

padding material, to keep the padding from pok-ing down into the springs.

Jack Platt worked with the Williams broth-ers and started Flex-O-Lators, primarily to sup-ply that barrier product to the automotive indus-try. His sons—John, Tom, Muff [Robert] and Fritz[Frederick]—joined Jack at the company afterthe war ended.

When we acquired Flex-O-Lators in 1988,John and Tom Platt were heading the company.Other family members active in the businessincluded four of Jack Platt’s grandsons: George,Nick, and Tom Platt, and Jeff Grundy. Nickand Tom still work for Leggett today. Completingthat acquisition was sort of like bringing the Plattand Leggett families back together. … Thatwas a great story and a great reuniting of thefamilies who were here in Carthage.3

Although Flex-O-Lators was originally oper-ated within Leggett & Platt’s furniture componentsgroup, the acquisition would ultimately serve as aspringboard for Leggett’s growth in the automotivebusiness. David S. Haffner, vice president of oper-ations, and Jack Crusa had established a broaderbusiness plan that eventually blossomed into amuch larger operation in the company’s portfolio.

Jack Crusa has served Leggett & Platt invarious capacities since 1986. In 1995,Crusa was named Leggett & Platt vicepresident and head of the automotive andtubular products unit. He became a seniorvice president in 1999 and served as headof Industrial Materials from 1999 to2004. Crusa became president ofSpecialized Products in 2004 andassumed the responsibilities for thecompany’s procurement efforts.


cushioning, sold through a distributor network in32 states. The company also produced poly-urethane foam for bedding and furniture manu-facturers. The MPI acquisition included six plantsin Mississippi and Texas, with annual sales of$47 million, and brought Jack Morris, formerchairman and principal owner of MPI, to the Leggett& Platt board of directors.45

During the year, Leggett & Platt also formed apartnership with a publicly traded Australian com-pany, Pacific Dunlop, to create a new entity knownas L&P Foam. Leggett sold its foam plants in HighPoint and Newton, North Carolina, and Tupelo,Mississippi, to the joint venture. This new partner-ship then completed a tender offer for the commonstock of Crest-Foam Corporation, a polyurethanemanufacturing and fabricating company located inMoonachie, New Jersey. Some two-thirds of Crest-Foam’s annual $50 million in foam sales werederived from a wide variety of products sold in bed-ding, furniture, and carpet-cushioning markets.46

In 1987, Leggett & Platt rose to 427th on theFORTUNE® 500 list of the nation’s largest industrialcorporations. The company also made FORTUNE®

magazine’s list of “America’s Most Admired Com-panies,” ranking second among the nation’s furni-ture industry corporations. This latter recognitionwas achieved despite Leggett’s relative obscurity, asmost people outside of the company’s key indus-

tries had never heard of it. The “Most Admired” des-ignation stemmed from the company’s rating in eightcategories: Quality of Management; Quality of Prod-ucts or Services; Innovation; Long-term Invest-ment Value; Financial Soundness; Ability to Attract,Develop, and Retain Talented People; Communityand Environmental Responsibility; and Use ofCorporate Assets.47

At the end of 1987, the company reported netsales of $649.2 million, which marked an unbro-ken, 20-year record of increased sales.48

In 1988, Leggett climbed to 406th on FORTUNE ®

magazine’s list of the nation’s largest industrial cor-porations.49 The company’s acquisitions that yearbegan with Collier-Keyworth Company of Garner,Massachusetts. This family-owned operation was aleading manufacturer of chair controls and metalbases for office and institutional furniture.50

Leggett next acquired the Berkshire FurnitureCompany and its manufacturing affiliate, AlleghenySteel and Brass Corporation, both located in

1978: The company settles two civil antitrust lawsuits, which requiresthe sale of the J. R. Greeno facility in Cincinnati and the Hominy,Oklahoma, plant, as well as restrictions on future acquisitions. Thestock splits 3-for-2.

1979: Felix E. Wright, executive vice president, becomes chiefoperating officer. Leggett & Platt is listed on the New York StockExchange. The company’s purchases include shares of the Missouri


Rolling Mill Corporation of St. Louis and assets of the De Lamar BedSpring Corporation, based in Los Angeles.

1980: A patent infringement over the Wall Hugger® mechanism isresolved in Leggett & Platt’s favor. The long-awaited Mira-Coil® is nowin limited commercial production.

Leggett & Platt’s acquisition of MPI, Inc., brought the company sixplants that produced bonded foam carpet cushioning andpolyurethane foam for bedding and furniture makers.


Chicago. Berkshire was a leadingsupplier of brass and white iron bedsand wood and metal daybeds to retailbusinesses. Allegheny manufacturedBerkshire’s products and suppliedrelated components and semi-fin-ished products to other home fur-nishings manufacturers.51

An interesting acquisition in 1988was Wilcox Industries, Inc., dbaIndiana Chair Frame (ICF), which madechair assemblies, and later office panelsystems, for federal and state prisons. These seatingand panel systems, assembled by inmates, providedsafe and meaningful work for those who qualified forwork programs. Their pay served as restitution forvictims or was used to offset prison-housing costsin addition to saving the federal and state gov-ernments untold sums of taxpayer dollars.52

Atypical of previous acquisitions, ICF reporteddirectly to Lance Beshore, a member of the corporatestaff. With a doctorate in political science, Beshorehad joined Leggett & Platt in 1980 as the company’sfirst manager of public affairs. In that role, Beshorepursued the company’s legislative aims, buildingstrong relationships with legislative leaders at thestate and federal levels. Following the acquisition ofICF, Beshore guided the development of Leggett &Platt’s governmental sales, expanding those sales inthe United States and into the United Kingdom.

End of a Decade

In the spring of 1989, Leggett & Platt purchasedone of its longtime suppliers, Culp Smelting &

Refining Company of Steele, Alabama.The smelting operation produced alu-minum ingot (from aluminum scrap),which was sold to a wide variety of cus-tomers who used the material to make

die-cast, sand-cast, and permanent-mold aluminumproducts. The acquisition was a natural fit for Leggett& Platt, providing it with an additional resource forraw materials and substantial purchasing lever-age in secondary aluminum ingot.53

Also, in the spring, Leggett & Platt acquiredWebster Spring Company, Inc., and Webster Wire,Inc., of Oxford, Massachusetts. Webster Spring pro-duced wire components used by mattress and box-spring manufacturers. In addition to its Oxford facil-ity, the company made bedding components at plantsin South Carolina, Pennsylvania, Texas, California,and Kentucky. Webster Wire was the drawing millcomponent of the company’s operations, supply-ing wire to Webster Spring plants as well as otherwire fabricators.54

Sandy Levine, a son of Webster’s founder andthe leader of the business, approached Leggett &Platt with the acquisition idea. Levine had knownHarry Cornell, Jr., for many years, and the twoenjoyed a cordial relationship. Leggett & Platt andWebster served territories that only slightly over-lapped. In fact, according to Levine, the idea to create


1981: Leggett forms an international division to pursueopportunities overseas.

1982: Harry M. Cornell, Jr., president and CEO, becomeschairman following the death of his father, Harry M. Cornell, Sr.Karl G. Glassman joins the company as a sales representative.

1983: Leggett & Platt celebrates 100 years of operation. Thecompany sells 313,500 shares of common stock from its treasuryand later issues a 2-for-1 stock split. Acquisitions include theNachman Corporation of Des Plaines, Illinois; the Cyclo-IndexCorporation of Cleveland, Ohio; Parthenon Metal Works of La Vergne,Tennessee; and the Bedline Manufacturing Company of Los Angeles.Harry M. Cornell, Jr., and Felix E. Wright hire David S. Haffner, whojoins the company as a group vice president of operations.

Lance Beshore joined Leggett & Platt in 1980,establishing the company’s first public affairsfunction. He is currently vice president ofpublic affairs and government relations.


the Webster Wire mill to serve the Webster Springplants grew out of a visit he made to Leggett & Platt’swire-drawing mill in Carthage.55

At the end of the decade, FORTUNE ® magazinelisted Leggett & Platt as the 371st-largest indus-

trial corporation in the United States. Leggett’sacquisitions in the 1980s exposed it to new mar-kets and greatly broadened its operations, butthe coming decade would bring greater expansionthan ever before.

In 1995, Leggett & Platt placed a larger-than-life version of its Partners in Progress® cast bronze sculpture in a specially designedgarden in front of the company’s corporate offices in Carthage, Missouri. Artist and longtime employee–partner Everette Wyattcreated the sculpture in an attempt to capture the spirit of two people pulling together to accomplish a task—a spirit that manyemployee–partners feel makes Leggett & Platt a special place to work.

C H A P T E R S E V E N

A DECADE OF DIVERSIFICATION1990–1999

LEGGETT & PLATT GREW GEOGRAPHICALLY

in the 1990s as never before. New ventures at home and abroad

began to bring unfamiliar competitionand new challenges.

The company’s first acquisitionof the decade, in February 1990, wasYoung Spring & Wire, a subsidiary ofthe Wickes Manufacturing Companyin Archbold, Ohio. This subsidiarywas all that remained of L. A. YoungSpring and Wire Corporation, thecompany that attempted to purchase Leggett & Plattin December 1935. The acquisition operated as partof the Flex-O-Lators division and expanded Leggett& Platt’s capabilities in manufacturing automo-bile seating systems.2

In March, Leggett & Platt acquired GribetzInternational, Inc., a designer and builder of quilt-ing and fabric-cutting machinery sold primarily tomanufacturers of bedding, furniture, home tex-tiles, and apparel.3

Due to successful growth in its Berkshiredivision, Leggett & Platt formed the Fashion BedGroup in 1990. To complement the division,Leggett acquired J. B. Ross Manufacturing,Inc., of New Brunswick, New Jersey. This busi-ness manufactured high-end brass and white-iron fashion beds that it sold to fine furniturestores, department stores, specialty sleep shops, andinterior designers.4

Leggett acquired another line offashion bed products by purchasingDresher, Inc., and its subsidiary,Harris-Hub. These firms manufac-tured and distributed brass, whiteiron, wood, and other specialty beds,in addition to steel beds and frames.Although Dresher’s annual saleswere approximately $80 million, ithad reported losses for six quarters,including all of 1989.5

The Dresher acquisition was ini-tiated by Dresher’s management, in part to helpfend off growing competition from overseas. “Bothcompanies believe that improvements in operatingefficiencies can be achieved by combining opera-tions,” said Dresher Chairman and CEO A. BarryMerkin at the time of the acquisition. “This combi-nation provides Dresher the best opportunity tocombat imports, which have made serious inroadsinto our markets in recent years. It will also helpus sustain and build upon the long-established,quality reputation of our products, our service,and our people.”6

Success is founded on a constant state of discontentment interrupted by briefperiods of satisfaction on the completion of a job particularly well done.

—A favorite quote of CEO and Chairman Harry Cornell, Jr.1

Leggett & Platt’s 1997 Annual Report cover reflected the company’s effort to diversify its product line and to provide “engineered products for everyday use … nearly everywhere.”


The team at the Berkshire subsidiary wouldmanage the Fashion Bed Group, which consisted ofthe Berkshire, J. B. Ross, and Dresher companies.

In July 1990, Leggett & Platt also acquiredfive facilities from the No-Sag Division of Lear-Siegler.The operations in this transaction included threefoam plants in West Chicago, Illinois, and Dubuque,Iowa; a wire products facility located in Kendallville,Indiana; and a wire and steel bedding products

manufacturing plant in London, Ontario, Canada.These facilities added to Leggett & Platt’s capacityin wire components and other wire products for thehome furnishings and automotive industries.7

Business was strong in early 1990, but con-sumer confidence in the United States steadily dete-riorated during the long, deliberate, and publicbuild-up of allied military forces preceding thePersian Gulf War. Leggett & Platt’s sales fell alongwith the sales of its customers. War-related increasesin raw material costs, which the company initiallydeclined to pass along to customers, affectedprofitability. As some of Leggett’s financially weakercustomers suffered, receivables and bad debtexpense grew.

Trucking and delivery prices also surged due torising oil prices. Commenting on the severity of thesituation, Felix Wright told management:

Higher energy costs … specifically fuel priceincreases, can cost us hundreds of thousands of

102

The Paragon, the world’s most advanced multi-needle chain stitchquilting machine, was produced by Gribetz International ofLeggett & Platt’s Global Systems Group. The Paragon featuredseveral patented technologies that have become industrystandards for mattress production. The quilting was performed onmattress panels used as the primary sleep surface and on theborder sections that formed the sides of the mattress. High-quality styling and high-speed production established the Paragonas the mattress industry’s leader among quilting machines.

C H A P T E R S E V E N : A D E C A D E O F D I V E R S I F I C A T I O N 103

dollars in a month. Most of our prod-ucts are priced on a delivered basis.When fuel costs increase, as they didin the second half of 1990, we can’teffectively pass the increased costs on to our cus-tomers. These increased fuel costs cut into our nar-row margins. Of course, we take a double hit some-times because it costs more to buy and transportour raw materials, too.8

Wright went on to explain, however, thatunpredictable and rising fuel costs were not new.The company worked to limit the cost increases byanalyzing systems, using reliable shipping meth-ods, reviewing handling and packaging methods,and continually assessing the most effective waysto ship goods.9

Perhaps the war’s greatest impact on Leggett& Platt was that it led to a 1990 analysis of theweak performance of certain urethane foam-pro-ducing operations, and ultimately to the restruc-turing of the urethane division.10 In 1991, Leggett& Platt decided to sell, close, or consolidate sev-eral facilities in the Northeastern states and NorthCarolina.11 This business segment had been espe-cially hard-hit by the increase in raw material andoperating costs, reduced demand, and lower pro-duction. However, by restructuring the operationsto concentrate on limited product lines, the com-pany expected to resolve these problems.12

As the year ended, Leggett & Platt raised therate on its cash dividend to shareholders, mak-ing 1990 the 19th consecutive year of dividend

increases. The company’s strategic prowess wasserving it well as it entered a new decade.13

Tough Decisions

In February 1991, Leggett & Platt rose to 72nd

out of the 306 companies on FORTUNE® magazine’slist of “America’s Most Admired Companies.” It alsoranked second out of the nation’s nine furniturecompanies.14

Although restructuring of the urethane foamoperations and a lingering recession caused a 1 per-cent drop in net sales, earnings in 1991 increased,due partly to improved consumer confidence afterthe war.15 Paul Hauser, senior vice president ofLeggett & Platt and head of Residential Furnishings,joined Leggett & Platt in 1980 as a product managerfor the bedding group. He explained that the com-pany had always encountered cyclical market con-ditions, but that it monitored economic indicatorsin order to prepare for changes in demand:

Consumer spending is key. … As a company inthe United States, I think the overall economy ...will dictate a lot of your growth or non-growth. Ifyou’re in somewhat of a recession, you’re going to

The Coriander (left), the Silhouette (center),and the Adobe (right) were three modelsthat the Fashion Bed Group produced inthe 1990s.


feel it regardless of your market share. Housingstarts certainly are something we look at andtrack, along with consumer spending, obviously.Advertising that’s done by our customers has aneffect on us. … All those things are dynamic; wetrack and analyze them all.16

As part of the restructuring of its foam business,Leggett & Platt sold five of its urethane foam oper-ations, including four plants in North Carolina and

Mississippi in June and July 1991.17 The companyalso sold the Moonachie, New Jersey, portion of itsCrest-Foam Corporation. Remaining operations inEdison, New Jersey, and Newburyport, Massa-chusetts, focused on manufacturing carpet cush-ioning materials and flexible urethane foam for thebedding and furniture industries.18

In 1991, Leggett & Platt also consolidated theproduct lines, facilities, and personnel of its FashionBed Group. The consolidations, which were more

104

IN 1985, LEGGETT & PLATT JOINED THE PRESTIGIOUS

ranks of the FORTUNE® 500, the list of America’slargest companies, determined by revenues.1

At that time, FORTUNE® magazine had two sepa-rate 500 lists—one for industrial firms and anotherfor service companies. Based on Leggett’s 1984revenues, it ranked 489th among the industrialfirms. The companies on the FORTUNE® listingswere also evaluated on three other measures:i) Return on Shareholders’ Equity, ii) 10-YearEarnings Growth, and iii) 10-Year Total Returnto Investors. In these categories, Leggett & Plattranked 84th, 57th, and 52nd, respectively.2

The company remained on the list of indus-trial firms through 1994, when it reached itshighest ranking ever at 275th place, with revenuesof $1.53 billion. Then in 1995, FORTUNE® merged itstwo 500 lists and reduced the total number of com-panies from 1,000 to 500. For the next three years,Leggett was not included in the new list, but thecompany continued to grow and reclaimed a placeon the list in 1998. It rose as high as 380th in2003, but in recent years has ranked among the400 to 500 largest corporations in the country.3

Beginning in 1987, Leggett was included onanother FORTUNE® magazine list, “America’s MostAdmired Companies.” Remarkably, it achieved thisstatus as a little-known company with few recog-nizable brand names.

While FORTUNE® determines the 500 list bybusiness revenues, it selects “America’s Most

Admired Companies” through a survey con-ducted by the Hay Group. The survey is admin-istered to executives, directors, and analysts ofcompanies within specific industries, and thequestions concern eight attributes: manage-ment quality; quality of products and services;innovation; long-term investment value; finan-cial soundness; the ability to attract, develop, andretain talented people; social responsibility; andthe use of corporate assets. Described as a “reportcard on corporate reputations,” the “AdmiredCompanies” list ranks businesses by their scoresin the eight categories.4

For Leggett & Platt, the principle that unitesand supports these attributes is the company’slong-standing commitment to ethics. Leggett’sleaders are convinced that ethical business prac-tices are necessary to ensure quality in manage-ment; to attract, develop, and retain talent; towisely manage resources; and to achieve excel-lence in all the other categories.

Ethics, Integrity, and Partnership

Ethics are so woven into the corporate culturethat even the strict structural changes dictated bythe Sarbanes–Oxley Act of 2002 barely affected thecompany's governing body. Felix Wright said:

Our culture is different. I don’t think you’re goingto find very many $5.5 billion companies in the

MAKING A FORTUNE


challenging than originally anticipated, were com-plicated by severely depressed demand for fashionbeds in 1991.19

In a management newsletter published after thisrestructuring, Harry Cornell, Jr., told readers howdifficult the process had been:

We’ve always tried to consolidate operations andbe more efficient, but in 1991, we made some reallytough decisions. In a few of our businesses, we sim-

ply haven’t produced consistently acceptable profits.We have stayed with most of these operations a goodlong time. We were in these businesses for all the rightreasons … they fit, and we could see other companiesmaking money in similar businesses. But we couldn’t,and that was terribly frustrating.

Once we made our restructuring decision, wemoved quickly and successfully. … We strengthenedL&P’s margins in the process, but we also found otherrewards. We’d been spending tremendous time and

FORTUNE® 500 that have the exact culture as ours.Maybe ours is not perfect, but it sure has a lot ofintegrity to it, and it has a lot of other principles thatI believe will keep us driving forward for a longtime to come.

Sarbanes said, “Yes, you should have out-side independent directors.” Been doing that fromday one. So it’s not a bunch of insiders that aretrying to do things that might not be totally inthe best interests of the shareholders, but we’venever had that problem, either. So, the mix, thecomplexity of the board has changed … but thechanges that we had to make from the primarystructure of board committees, orthe board itself, to the primary struc-ture of our finance and account-ing, were miniscule compared toanybody else in the FORTUNE® 500as far as I’m concerned.5

Duane Potter joined Leggett &Platt in 1968 as an assistant man-ager and eventually became asenior vice president and memberof the board of directors. He wasknown as a champion of the com-pany culture among new executivesin the field. Duane explained that Leggett is amore successful company because it treatsemployees as partners and encourages them tobecome stockholders:

It’s comfortable to know that through our strat-egy and through our culture … people enjoyedcoming to work here in the morning knowing

that … they’re working for themselves. We try tokeep the equity within the company all the waydown through the ranks, and so it gives themthat pride of ownership.6

Harry Cornell agreed, adding that this spiritof partnership will make the company success-ful in the future:

One of the reasons we decided to produce thisbook is to share with our employee–partners thestory of where the company has been, and howit got to where it is today. We hope that an under-

standing of the company’s history,spirit, and background helps our ...partners gain a sense of ownership,and realize that the company istheirs to grow. I’d like to say to them,“Now it’s your company. Take whatis there, and work hard to grow itprofitably from here.” Those of uswho’ve been around for a while—we’re just passing the baton, passingalong the company, and bringingon new partners. We hope they willgrow and improve the company forour employee–partners and share-

holders, and then, when they leave Leggett, passit on to others who will make it even better.7

Duane Potter, former senior vice president, served on the boardof directors from 1996 to 2002. He was an advisory memberof the board from 2002 to 2008.


energy on those inconsistent operations… and had too little to show for theeffort. The restructuring has given ustime—time to strengthen and work withour better performing businesses. Thishas been a big shot in the arm.20

To see Leggett & Platt success-fully face the challenges of restruc-turing was encouraging to investors.Even more exciting to investors, em-ployee–partners, and customers was the growingpopularity and acceptance of several innovativeproducts. Many designers, engineers, and techni-cians played a part in these inventions. Three impor-tant individuals—Larry Higgins, Henry Zapletal,and Tom Wells, Sr.—led a variety of efforts in innova-tion at Leggett & Platt, including continuously design-ing and redesigning innerspring and box spring prod-ucts, as well as improving and retrofitting themachinery used to manufacture those products. Thecompany’s steady flow of new, often patentable, prod-ucts and near continual development of faster, moreefficient production machinery created a challeng-ing market for competitors.

Among the bedding components growing in pop-ularity were the Superlastic® innerspring units, gen-erations of innerspring products spawned from

Mira-Coil®, the LOK-Fast® grid and modules for boxsprings, and the Semi-Flex® box spring. These lattertwo were derivations of the popular Lectro-LOK® unit.21

Malcolm Marcus joined Leggett & Platt when thecompany acquired 50-percent equity of Globe Springin 1977. He recalled the impact of the Semi-Flex® unit:

The Semi-Flex ® product revolutionized the boxspring industry in North America. It was a one-piece,welded grid top that was a wonderful product andallowed the bedding people to save a lot of moneybecause there was only one piece that they hadto deal with rather than three or four different partsthat they had to assemble. So this saved the bed-ding people a fortune. It was a wonderful product,still in existence today.22

106

Left: Leggett & Platt Wire Tie (formerly U.S.Wire Tie) sells wire-tying machinery and wirefor baling to cotton producers.

Below left: The Flex-O-Lators division usedcomputer-aided design to create automotiveseating components.

Below right: This automotive seatingsuspension system was designed and

manufactured at the Flex-O-Lators division. Pullmaflex, acquiredin 1994, joined Flex-O-Lators to form an automotive division.


Looking Up

Over the course of 1992, the company’s profitmargins and earnings improved substantially. Netsales increased by 8 percent to $1.2 billion, and thecompany’s return on average equity increased from12.4 percent to 14.5 percent. Although profit marginswere still below expectations, the company’s long-term debt-to-capitalization ratio was down to 18 per-cent, and it had no short-term debt outstanding at theend of 1991 or 1992.23

The turnaround was attributed to four key fac-tors: improved operating efficiencies as sales and pro-duction volumes increased, constant attention tocosts after the restructuring in the previous year,lowered debt and interest rates, and a decline in baddebt expense as economic conditions improved.24

Midway through 1992, Leggett declared a2-for-1 stock split, issuing shareholders oneadditional share of stock for each share alreadyowned.25 The company was again favorably rankedin FORTUNE® magazine’s list of “America’s MostAdmired Companies.”26

The company made two major acquisitionsin 1993 by forming a merger agreement with theHanes Holding Company and its subsidiary, VWRTextiles and Supplies.27

Hanes was based in Winston-Salem, North Carolina, and operatedthree facilities. The Hanes ConvertingCompany in Conover, North Carolina,

was a converter and distributor of woven and non-woven industrial fabrics used by bedding and homefurnishings manufacturers to make seat deck-ing, dust covers, insulators, and lining materi-als. The Hanes Fabrics Company in Hackensack,New Jersey, was a converter of woven, non-fashionfabrics used as drapery lining and quilt backing. TheHanes Dye & Finishing Company in Winston-Salemwas one of the nation’s largest commission dye fin-ishers of industrial fabrics for home furnishings andapparel. (The apparel fabrics were primarily usedto make pockets and waistband linings.) Together,these three operations generated annual sales ofabout $150 million.28

VWR Textiles and Supplies of Hickory, NorthCarolina, was a converter and distributor of wovenand non-woven industrial fabrics for bedding andfurniture manufacturers. It generated annual salesof about $70 million.29

In the third quarter of 1993, Leggett & Plattacquired Armco Steel’s interest in the wire mills thetwo companies had jointly owned for 24 years.30

Harry Cornell said: “Leggett’s purchase ofArmco’s interest will allow Leggett greater flexibilityin growing our wire-drawing business. … This asso-ciation is being amicably brought to a close as a partof Armco’s announced strategy of concentrating on

Above, center, and right: Leggett & Platt’sextensive wire capabilities allow it to draw wireto suit any client’s need. Galvanized wire, forexample, is produced by the wire group andused for a wide variety of applications.

specialty steel and prudently scheduling divestmentof non-strategic assets.”31

By year’s end, Leggett & Platt employee–part-ners saw their company’s net sales increase by16 percent, while earnings rose 27 percent to $2.09per share. In charting its 10-year growth rate, from1983 to 1993, the company reported averagegrowth of annualized net sales, earnings, and div-idends of 14.6 percent, 14.8 percent, and 15.3 per-cent, respectively.32

International Expansion

Some 16,000 people throughout the UnitedStates and Canada were considered Leggett & Plattemployee–partners by the end of 1994. That year,the company completed several more acquisitionsand increased its product lineup.33

In April, Leggett & Platt purchased VantageIndustries of Atlanta, Georgia, which manufac-tured non-skid pads used primarily to hold arearugs in place. In June, it acquired U.S. Wire TieSystems of Woodridge, Illinois, which sold galva-nized wire and bale tie machinery and parts, pri-marily to customers who compacted, baled, andrecycled solid waste. It also purchased the Pullma-flex group, a leading manufacturer of wire grid, seat-ing suspension systems, and lumbar supports forthe furnishings and automotive industries in Europe.This acquisition was a perfect fit withthe company’s Flex-O-Lators division,which was the leading producer of

equivalent components in America. Pullmaflexexpanded Leggett & Platt’s interests well into theEuropean market through its plants in Belgium,Great Britain, and Sweden, and produced annualsales of approximately $20 million.34

Also in 1994, Leggett & Platt formed a jointventure with a company in Mexico to produceinnersprings there. This brought Leggett intoMexico’s bedding market. Today, the companyoperates two spring plants in Mexico, supplyingthe country’s industry with innerspring and boxspring components.35

In the fall of that year, Leggett & Platt addedtwo businesses to its Masterack division: TalbotIndustries of Neosho, Missouri, and SoutheasternManufacturing Company (SEMCO) of Ocala, Florida.Talbot fabricated display racks for items such assnack foods and bakery goods, and also producedcommercial fixtures and formed wire products for

Left: In the 1990s, Leggett & Platt’s aluminum group becameNorth America’s leading independent supplier of non-automotive die castings. This small gasoline engine componentis a good example of the group’s capabilities.

Center: The Leggett & Platt aluminum group also producedhousings for highway lighting and other outdoor light fixtures.

Right: In the mid-1990s, Leggett & Plattmade its largest acquisition to date with thepurchase of Pace Industries, a Fayetteville,Arkansas, company with plants in seven U.S.states and Mexico, and sales approaching$250 million. The acquisition doubledLeggett & Platt’s capabilities in engineeredaluminum die-cast components, such as theengine casing below.



industrial applications. SEMCO specialized in man-ufacturing and marketing metal shelving, displays,and commercial furnishings. When acquired, Talbotgenerated $40 million in annual sales, and SEMCOgenerated $15 million.

The largest acquisition of 1994 was SuperSagless Corporation of Tupelo, Mississippi. Thecompany was a major producer of furniture com-ponents such as recliner chair hardware, sofa sleepermechanisms, and related motion hardware, as wellas fabricated wire and metal products for the fur-nishings industry. Super Sagless produced annualsales of more than $70 million.36

As Leggett & Platt continued to grow andacquire new operations, it remained committed toproviding excellent customer service. Eloise Nashserved as one of Leggett’s finest customer serviceteachers, conducting seminars for employeesthroughout the country. She joined the company in1951, working as a customer service representativein the sales department, and eventually becamea company officer and Leggett’s first female vicepresident. Eloise said:

[In the beginning], I was a troubleshooter. At thattime, [I was] taking care of some of the nationalaccounts. … I even scheduled the trucks. Butif something else needed to be done, and if youhad the time to do it, you did it. …

But it’s not always just doing what [the cus-tomers] want. … [It’s also] doing what you tellthem that you’re going to do. … Once you haveproved yourself to them, that you are going todo those things, they don’t worry about givingyou the orders. …

I taught customer service seminars all over theUnited States, and that’s one of the things that Istressed so much. You know that customer, andyou take care of that customer. You need to knowhis wife’s name. You need to know how many kidshe’s got and even his dog’s name. … Of course, [acustomer may] say, “Well, my wife’s been sick” orsomething, and I’d always make a little note on

Above: Talbot Industries of Neosho, Missouri, a 1994acquisition, was a fabricator of displays for snack food, bakeryitems, and other store products.

Right: Leggett & Platt’s largest 1994 acquisition was the SuperSagless Corporation of Tupelo, Mississippi, whichcomplemented Leggett & Platt’s production of furniturecomponents and systems, such as recliner chair hardware, sofasleeper mechanisms, and related motion hardware.


FOR YEARS, HARRY CORNELL, JR., AND FELIX

Wright have enjoyed and collected fine art,especially works depicting nature and the

American West. Many of these original oil andwatercolor paintings, pastels, and bronze sculp-tures grace the facility and grounds of Leggett &Platt’s corporate headquarters.

Among the oil paintings are several worksby Andy Thomas, an accomplished professionalartist and a former 16-year Leggett & Plattemployee and director of marketing services.Andy’s carefully researched, action-filled paint-ings of events in American history have beencommissioned and acquired by state and na-tional parks around the country. He has alsoproduced several vivid murals depicting majorevents in Leggett’s history. In addition, Leggett &

Platt is fortunate to own and display a dozen ormore of his earlier paintings.1

Everette Wyatt, an artist and former man-ager of engineering for Leggett’s wire division,sculpted Partners in Progress®. This cast bronzestatue depicts two individuals pulling togetherto accomplish a task, representing Leggett’s spiritof teamwork.

Another of Everette’s widely admired worksis the image of Reverend Asbury, a circuit-

An updated version of the company’s historical mural, paintedby Andy Thomas, reflects many important people and eventsthat have made a significant impact on the history of Leggett& Platt. (Printed by permission, courtesy of Andy Thomas.)

ARTISTIC SPIRITS


riding Methodist minister, which he sculptedfor Asbury College. A smaller version of that sculp-ture was displayed in the Oval Office during RonaldReagan’s administration.2

The art at Leggett & Platt is in-tended as more than decoration—it’smeant to rouse the artistic spirit thatHarry Cornell and Felix Wright en-couraged in others. In essence, manyLeggett & Platt partners are seenas “artists.” From accountants andengineers to production workers and

corporate employees, each individual works dili-gently to delicately sculpt Leggett into a success-ful company that will endure for many generationsto come.

Right: Everette Wyatt, an artist and former manager of engineeringfor Leggett & Platt’s wire division, is shown holding one of his bronzesculptures, “Tsali.” He also sculpted the life-size Partners in Progress®

statue that stands in front of Leggett & Platt’s corporate offices.

Inset: One of Everette Wyatt’s famous works is the statue ofReverend Francis Asbury, a circuit-riding Methodist minister, whichhe sculpted for Asbury College in Wilmore, Kentucky.

Below left: Marcia Cooper (standing) and Libby Peck have eachworked faithfully as administrative assistants to Leggett & Platt’sexecutive team for more than 30 years. They are dedicated “artists,”especially skilled at working with others. The painting behind them,“Texas Hill Country” by William Slaughter, isa favorite of employees and visitors.

Below right: Artist Andy Thomas, a former16-year Leggett & Platt employee–partner,stands next to one of his paintings titled“Retribution Party,” which hangs in ahallway at Leggett & Platt’s corporate officesin Carthage. (Printed by permission, courtesyof Andy Thomas.)


that, and the next time I talked to him, I’d alwayscheck my notes to make sure, and I’d say, “How’sSue getting along?” or something like it. … Peopleappreciate things like that. I didn’t do that just forthe business standpoint. … But I was interestedin their family, too, because I had grown to likethem as friends.37

According to Nash, servicing competitivecustomers such as Sealy and Serta was both funand challenging. As the company grew interna-tionally, gaining and retaining market share inunfamiliar and competitive new regions presentedeven greater challenges.

By the end of 1994, Leggett & Platt succeededin raising its net sales 22 percent and its earnings pershare 33 percent—both record figures. The com-pany’s shareholders had now enjoyed 24 straightyears of dividend increases.38

Increased Diversification

Leggett acquired seven companies in 1995,primarily manufacturers and distributors of compo-nents to the furniture industry.39

During the year, sales in the com-pany’s office, institutional, and com-mercial furnishings markets grew,while residential furniture sales soft-ened due to weakening retail sales.After three consecutive years of above-average growth, demand for bed-ding products outpaced demand

for other residential furniture, although both marketssaw a slowdown at year’s end.40

Over the years, Leggett & Platt has attempted todescribe itself in an understandable manner thatallows room for it to grow. By the mid-1990s, the com-pany’s leaders found that they had grown beyond thecompany’s reliable and well-known reputation as aprovider of components to the furnishings industry.The company was headed toward the expansion of itsaluminum die-casting operations, fixture and displaybusiness, and other operations. In company andinvestor publications, management began to presentthe company in terms that would be better suited fora more diversified enterprise. Thus, Leggett & Plattbegan to describe itself publicly as a company thatengineered products to create value, building on itsconsiderable strengths in people, financial flexibility,technology, and market franchise, and on its uniquenetwork of manufacturing and distribution facilities.41

Center: With the 1994 acquisition of the SoutheasternManufacturing Company (SEMCO) of Ocala, Florida, Leggett &

Platt expanded its ability to serve customerswith finished products for their metal shelving,display, and furnishings needs.

Below (left and right): Leggett & Platt’s finishedproducts are engineered to complement itsother products. For customers ranging fromretailers and resellers to dealers and distributors,Leggett & Platt makes point-of-purchasedisplays, commercial shelving, and fixtures.


Partners in Progress

Everette Wyatt, a sculptor and longtime Leggettemployee, was challenged by the company’s leadersto create a work of art depicting Leggett’s spirit of part-nership. He fashioned Partners in Progress®, a smallsculpture of two individuals pulling together toaccomplish a task. In 1995, the company com-missioned Everette to render a larger-than-life ver-sion to be displayed at the corporate headquarters. InMay of that year, the handsome cast bronze sculp-ture was placed in a special garden near the office’smain entrance. As part of the dedication ceremony,longtime board member, Herbert Casteel, said:

Everette Wyatt, the artist who designed and hand-crafted this beautiful sculpture, well understood thespirit of partnership that makes Leggett & Platt suchan outstanding company, and he did a superb job ofcapturing this spirit in bronze. In Everette’s words, “Itmakes no never-mind what it is these ol’ boys aredoin’. Point is, they’re pullin’ together to get it done.”

The thousands of men and women who areLeggett & Platt bring to this company a wide varietyof talents and a great range of abilities.Yet throughout this company there isa spirit of partnership, an attitude ofmutual respect, a cooperative efforttoward common goals. People count atLeggett & Platt, and therein lies thesecret of our success.42

Harry Cornell, Jr., concluded thededication ceremony with these words:

We extend our gratitude and dedi-cate this sculpture to every Leggett

partner … to those who lived before us, are with usnow, and to those who will be in future generations… the people of Leggett & Platt who are our great-est asset and share a special partnership spirit.43

In the late summer of 1995, Leggett & Plattannounced a 2-for-1 stock split and increased thequarterly dividend for pre-split shares to $0.20per share, a 25 percent increase over the previousyear’s dividend.44

At year’s end, the company announced an11 percent increase in sales, a 14 percent increasein earnings, and a 23 percent increase in cash div-idends.45 Approximately 75 percent of the salesand earnings growth had come from acquisitions.46

In its 29 years as a public company, Leggett & Platt’ssales had grown from $13 million to $2.06 billion,and its net earnings had increased from $351,000to $134.9 million.47

Still Room to Grow

In 1996, Leggett employed approximately 21,000people in facilities throughout theworld.48 Part of that figure came withthe company’s largest acquisitionto date—Pace Industries, a Fayetteville,Arkansas, company with plants inseven U.S. states and Mexico, andwith sales approaching $250 million.49

Like Leggett & Platt, Pace was a leaderin engineered aluminum die-castcomponents, and the acquisition dou-bled Leggett & Platt’s business in thisarea.50 As a result of the merger, Leggett& Platt began to produce aluminum

Right: Executive management team members (left to right):Michael Glauber, senior vice president of finance andadministration; David Haffner, executive vice president; andRobert Jefferies, senior vice president of mergers, acquisitions,and strategic planning.

Below: Herbert C. Casteel served as a member of Leggett &Platt’s board of directors from 1960 to 1995. He was anadvisory member from 1995 to 2001.


WHEN FELIX WRIGHT SPEAKS TO LEGGETT’S EM-ployee–partners about going the extramile for customers, he isn’t talking about

an abstract idea. Wright joined the company in1959 in customer service at the Ennis, Texas,operations. To paraphrase Felix’swords, here is a description of hisinitial duties:

My job was to load a truck anddeliver products to our customersin the Dallas area. If one of the cus-tomers wasn’t paying his bills, itwas my job to pick up a check andbring it back with me.

When I got back to the plant, I’dcheck to see which customers hadcalled and who I needed to callback. … Once that work was fin-ished, I’d start loading again forthe next day.

Sometimes, pretty late in the afternoon, a cus-tomer would call and tell me they needed some-thing and couldn’t wait until tomorrow. So, I’d pulla few things off the back of the truck, load up whatthey wanted, and make a run back to Dallas.Those days I got home pretty late.

We’re always willing to go that extra mile forthe customers, and we expect that same kind ofperformance from our people today. Going theextra mile has never been more important.1

Felix was born and raised near Ennis, Texas,where he attended high school. After graduating,he earned a bachelor’s degree in business fromEast Texas State University in 1958 before accept-ing a job with Leggett & Platt.2

In 1961, Wright was sent from Ennis to man-age a new facility in Phoenix, Arizona. While there,he was promoted to general manager of sales and

marketing west of the Rockies, a position he helduntil 1967.3

That year, Wright was appointed vice pres-ident and general manager of operations atWinchester, Kentucky, where he relocated. Wright

was also entrusted with the re-sponsibility of creating and build-ing Leggett & Platt’s Eastern divi-sion. He successfully led theEastern operations, built rela-tionships with potential acquisi-tion partners, completed acquisi-tions, and integrated them intothe newly formed division.

In 1975, Wright was promotedto senior vice president and groupmanager of bedding components,and relocated to Carthage, Mis-souri. A year later, he receivedanother promotion, assumed re-sponsibilities for additional opera-

tions, and was asked to guide Leggett’s researchand development of new products.4

By 1979, Wright was executive vice presi-dent and chief operating officer. In those capac-ities, he directed the company’s recently restruc-tured operating management that includedmultiple groups, led by corporate vice presidentswho reported to him. In May 1985, he becamepresident and continued as chief operating offi-cer. In May 1999, Wright succeeded HarryCornell, Jr., as CEO and also became vice chair-man of the board of directors. In 2002, he waselected chairman of the board, retaining hisother responsibilities. Then, upon DavidHaffner’s promotion to CEO in 2006, Wrightcontinued his service as chairman of the boarduntil May 2008.5

A year before he became the chief executive, inan interview in Leggett’s Management Information

FELIX E. WRIGHTCEO, 1999 TO 2006


Bulletin, Wright expressed an eagerness to per-petuate the company’s culture in his upcomingjob and took the time to describe that culture.He prepared a list of 14 statements (shown below)that began with the importance of honest, ethicalbehavior and outstanding customer service. Thelist ended with the value of long-term relation-ships with partners, customers, and sharehold-ers. About Leggett’s culture, Wright appropriatelysaid, “We can put a description of our culturein writing, but that won’t ensure it continues. Itis something which has to be observable … our

managers have to live it, demonstrate it, andencourage it in others.”6

The transition in leadership from HarryCornell, Jr., to Felix Wright was carefully plannedand smoothly completed. Wright became only thesecond chief executive in 40 years.

“I never set out in my career to be the CEO ofthis company,” he said. “My father always taughtme, whatever you try to do, you try to do to the bestof your ability with the God-given talents thatyou have. That’s what I attempted to do every dayI worked at Leggett.”7

1. We are ethical business people. Illegal,immoral, or unethical behavior isunwelcome. We value honesty.

2. We are customer service zealots. We go theextra mile for our customers. Each of us, inevery job, is expected to do our very best toensure our customer will be pleased andwant to buy from us again and again.

3. We sincerely care about our partners andthe world we live in. We care about safetyand the environment.

4. We desire an entrepreneurial spirit in ouroperations. Each operation is a separateprofit center to encourage this spirit.

5. We strongly prefer doing a job correctly, thefirst time.

6. We stress good strategic direction and anintense focus on details.

7. We are glad to share the company’s historyand our business strategy with all ouremployee–partners. It is difficult to feelaffiliated with a business if you don’t knowwhere it has been and where it is going.

8. We are discontent with the status quo. Wedo not believe we are ever as good as weare going to be. We want to continuouslyimprove every product, service, and processin our business.

9. We encourage employees to becomeshareholders. Partners don’t have to be

shareholders to take personalresponsibility for their work and thecompany’s success … to act like owners …but it helps.

10. We can’t prosper and grow without havinga continual flow of new ideas, improvedproducts, and machinery. Research anddevelopment is vital, but we’d likeeveryone to contribute to the flow of ideas.One of our unique strengths has been ourability to provide proprietary products forour customers—to give them somethingunique or special.

11. Almost everything we buy and use can bebought and delivered for less than theasking price. We must shop, compare, andask for a better deal. We want the best forless, always.

12. We dislike bureaucracy and playing politics… avoid both. We value genuinefriendliness and concern for others, andwe like to laugh.

13. We will always outwork our competition.We willingly work long hours … but wealso “work smart.”

14. We value long-term relationships. We likelong-term partners, long-term customers,long-term suppliers, and long-termshareholders. These relationships add joyto our work lives.8

LEGGETT CULTURE—ACCORDING TO WRIGHT


components for gas barbecue grills, motorcycles,small- to mid-sized gasoline engines, clean-roomfloorings for silicon chip factories, and other commer-cial and consumer products. The deal also broughtwith it several tool and die operations serving the cast-ings industry; these businesses were further verti-cally integrated into Leggett & Platt’s operations. 51

The Pace facilities included a plant in Mexico thatoperated under a joint venture with Emerson Electric,a major consumer of aluminum die castings usedin the production of electric motors and many otherelectrical tools and small appliances.52

Daniel R. Hebert, senior vice president and headof the aluminum group, who came to Leggett & Plattwith Pace, explained the impact of the acquisition:

Pace, at that time, had grown significantly, start-ing as about an $8 million business in the late 1970s;by the mid-1990s, they had grown that to $130 or$140 million. It had significant growth potential in thefuture, but lacked the capital. That was one of thereasons, the main driving reason, for seeking addi-tional infusion of capital, either through an IPO orthrough a partnership with someone like Leggett. So

Leggett’s infusion of capital and its very strongbalance sheet have been significant factors in ourability to grow the casting business.53

The acquisition of two related companies, ExcellStore Fixtures and Slot All Limited in Toronto, Can-ada, significantly expanded Leggett & Platt’s com-mercial fixture and display business. These compa-nies—expected to add about $50 million to Leggett& Platt’s annual sales—produced and sold custom-designed metal and wood display cases, shelving,counters, and other fixtures. Wooden bookshelvesfor Barnes & Noble were an increasingly impor-tant portion of Excell’s production.54

In October 1996, Leggett & Platt acquired theSteadley Company of Carthage, a longtime competi-tor in bedding components. Like Leggett & Platt,Steadley had been founded as a privately ownedcompany in Carthage around the turn of the 20th

century. Both companies began as manufacturersof steel coil springs.55

When acquired, Steadley was a producer ofsprings and other components for furniture andbedding manufacturers, and had seven manufac-turing and distribution facilities and 800 employeesin Missouri, Texas, Florida, North Carolina, Ten-nessee, and California.56

The Steadley acquisition followed the settlementof a lawsuit that Leggett & Platt filed against Swiss-owned Spühl AG and that Steadley had joined. Thesuit alleged that Spühl breached a contract withLeggett & Platt by selling to Steadley certain inner-spring manufacturing equipment that Spühl hadcontracted to sell exclusively to Leggett & Platt.57

Although the suit caused some discomfort atthe time, Ernest Jett, senior vice president, general

counsel, and secretary, explained thecompany’s growing need to protectits interests:

Intellectual property is an area thathas become increasingly important toLeggett & Platt. … Over a period oftime, it became more and more evi-dent that our company was not onlygoing to be the low-cost producer, butwe also found that we were makingour margins on products that could notbe easily duplicated—products that

116

Above: The Pace Industries acquisition of 1996complemented the barbecue grill–producingcapabilities of Leggett & Platt’s EST division.

Right: Daniel R. Hebert joined Leggett & Plattin 1996 as corporate vice president at PaceIndustries, later called the Aluminum Productssegment. He was appointed senior vicepresident of Leggett & Platt and head of thealuminum group in 2002.


had IP protection. So gradually, IPbecame more and more important.58

A federal judge in Kansas Citymediated a settlement of the lawsuit.Leggett’s representatives at the medi-ation suggested one way to settle thematter might be for Leggett to buySteadley (that way the machinerypromised exclusively to Leggett wouldsoon be in Leggett’s ownership). Thejudge included that option in the set-tlement arrangements, and Leggett proceededto buy Steadley. A year after that, Leggett alsobought Spühl.59

In the news release announcing the Steadleyacquisition, the company stated:

Management of both companies has told employ-ees and customers that they intend to make the inte-gration of facilities and operations as smooth as pos-sible. Management further stressed their beliefs thatthe acquisition should result in improved customerservice, production, and distribution efficiencies, andattractive opportunities for long-term growth of thecombined businesses.60

Leggett & Platt made a dozen acquisitions in1996, including the November purchase of LatrobePlastic Company and Airo Die Castings, two Loyal-hanna, Pennsylvania, die-casting firms specializingin components for telecommunications and con-sumer electronics equipment. At thattime, a growing trend toward out-sourcing by makers and users of

die-cast components was affecting themarket. The Latrobe/Airo acquisitionallowed Leggett & Platt to capitalizeon this trend, as well as to expand itsdie-casting product line.61

Other acquisitions during theyear included the purchase of twodivisions of A. J. Gerrard and Companyof Des Plaines, Illinois, a producer andseller of specialty wire products; CameoFibers, Inc., of Conover, North Caro-lina, a maker of cushioning materials;

Oconto Metal Finishing, Inc., of Oconto, Wisconsin,a finisher of cast aluminum products; and Fair-mont and Pacific Fairmont Corporations of Chicagoand San Diego, respectively, both in the carpetunderlay business.62

International expansion continued, as well,with the acquisition of Gateway Holding, Ltd., ofEssex, England, a manufacturer of mattress finish-ing and conveyor equipment, and Les Bois Blanchet,Inc., of Quebec, Canada, a specialty lumber man-ufacturer. Additionally, Leggett & Platt continuedto expand its presence in Mexico, opening beddingcomponent manufacturing facilities in Guadalajaraand Mexicali.63

Stepping It Up

For 1997, Leggett & Platt reported double-digitgrowth in both sales and earnings, and annualizedsales approached $3 billion.64

Among its acquisitions that yearwas Rodgers-Wade Manufactur-ing Company of Paris, Texas, a firmthat manufactured and marketedcustom and semi-custom laminatedwood display cases, shelving, andstorage fixtures for video stores andretail outlets. Leggett & Platt also ac-quired Amco Corporation of Chicago,a manufacturer of high-end, cus-tomized shelving and storage fixturesfor food service, material handling,and office use.65

In 1997 and through the first10 weeks of 1998, Leggett & Plattacquired 20 businesses.66 The com-pany added nine businesses to its

Above: Ernest C. Jett joined Leggett & Plattin 1979 as the company’s assistant generalcounsel. Jett added to his duties in thelegal department over the years, working hisway to company vice president in 1995.Today, Jett serves Leggett as a senior vicepresident, general counsel, and secretary.

Right: With the 1999 acquisition of NagleIndustries, Inc., came automotive cablemanufacturing capabilities.


fixture and display division, seven of which werelocated in the United States and two in Canada.67

Three businesses based in the United States joinedLeggett & Platt’s aluminum die-castings operationsthat year. And, lastly, in materials and technology, thecompany acquired eight businesses: six in the UnitedStates, one in England, and one in Switzerland. The

latter of these was Spühl AG, acquired as part of thearbitration of the patent lawsuit settled a year earlier.68

Together, these companies expanded Leggett &Platt’s annualized sales by $560 million, sending rev-enues over the $3 billion mark.69

At that time, Robert Jefferies, senior vice presi-dent of mergers, acquisitions, and strategic planning,

118

LEGGETT & PLATT’S STUDENT LEARNER PROGRAM IS A

fine example of the company’s positive involve-ment with the community. Leggett formed

this partnership with the Carthage public schoolsystem in July 1999 to help previously under-performing sophomores, juniors, and seniorscomplete their high school education while learn-ing valuable skills that could be readily appliedin the workforce.

In addition to Precision Machining courses atthe Carthage Technical Center, students receive awealth of hands-on training in disciplines such aspneumatics and hydraulics; basic power mechan-ics; stick, metal inert gas (MIG), and gas welding;basic electrical skills (residential, electronics, andindustrial); blueprint reading and home mainte-nance; and computer maintenance.

Although the curriculum emphasizes me-chanical training, the program’s primary goal is toencourage students to complete their high schooleducation successfully. For this reason, each stu-dent learner is provided with a Leggett & Platt men-tor. Grades and attendance are monitored, andtutoring is available with an honors student hiredby the company.

The application process is rigorous enough toensure that the students who are selected have astrong desire to participate despite their less-than-perfect credentials. Applicants must complete thefreshman-level Engineering Technology course atCarthage High School and obtain a nominationfrom the school. Nominees are then required to

write an essay describing why they want to join theprogram, submit a Leggett & Platt job application,and participate in an interview with the selectioncommittee. In previous years, as many as 30 appli-cants have been nominated; however, no morethan 13 students are selected and welcomed intothe program each year.

Tom Wells, Sr., former vice president ofmachinery and technology, created the pro-gram, through which he tangibly expressed hisChristian faith and abiding concern for others.Some of the Student Learner training has takenplace at Leggett’s Zapletal Education and Devel-opment Center (ZED Center), which, at Wells’suggestion, was named in honor of longtimeemployee–partner and exceptionally talentedengineer Henry Zapletal.

The Leggett & Platt Student Learner Programis unique in that participants are actual companyemployees. Students work in Leggett’s Carthage-area locations, including Machine Products, PorterInternational, Flex-O-Lators, and the IDEA Center.They are paid to learn technical and life skills,which allow them to focus on the objectives ofthe program without needing to be employed atother part-time jobs.

The program has earned recognition at bothstate and national levels. In 2000, Leggett & Platt’smachine products division was recognized as the“Missouri Industry of the Year,” largely becauseof its commitment to enriching the community’syouth and families through the Student Learner

THE STUDENTLEARNER PROGRAM


and Michael Glauber, senior vice president of financeand administration, were deeply involved in the com-pany’s extraordinary acquisition program. A discus-sion between them describes their experiences:

Jefferies: The due diligence … was more of a nutsand bolts thing that was not too difficult to deal with.

The only difficulty was that sometimes we wouldhave five and six and seven of these going on at once,and we were very thinly staffed at all levels, and itwas more of a time constraint rather than a profi-ciency constraint or an expertise constraint. How longdoes it take to become profitable? That varied. One ofthe things I’m proud of is that while we wanted to

Program.1 The following year, the program earnedLeggett & Platt Machine Products the “ExemplaryWorksite Learning” award from the National TechPrep Network.2 In 2003, the program receivedthe prestigious “Friends of Education” awardfrom the Southwest Center for EducationalExcellence (a consortium of more than 40 schoolsin Southwest Missouri).

Individually, students have put their learn-ing to the test in competitions organized bySkillsUSA, a partnership of students, teachers,and industry working to ensure a skilled U.S.workforce. Students have performed well at thestate-level competitions and have often placedamong the top 10 nationally. All these collectiveand individual achievements are very satisfying

to the students and leaders, but David Rice,the program director, explained, “The great-est reward is watching students mature throughour program.”3

Sixty-seven students have graduated fromthe program from its inception in 1999 through2008, and Leggett & Platt has hired more than70 percent of the graduates as full-time employ-ees. Vern Mason, who completed the StudentLearner Program in 1999, was named Leggett &Platt Machine Products “Employee of the Year” for2006. Another 1999 program graduate, ChanceNewman, operated the Student Learner Shop forseveral months in the absence of the shop super-visor. Newman was recently named the MachineProducts “Employee of the Year” for 2007. Lastly,another recent graduate from the Student LearnerProgram, John Burns, went to work after gradu-ation for Leggett & Platt’s Porter Internationalfacility. He has done an outstanding job, andin 2007, Burns was named “Employee of theYear” at Porter.4

Some program graduates choose to attendcollege or to pursue job opportunities else-where. Although their career choices differ, theprogram provides all student learners withpractical knowledge, skills, and work experiencethat will help them to succeed and strengthentheir communities.

Left: Junior William Guerra adjusts the mill for a new setupfor his nut and bolt machining project.

Center: In 1999, Vern Mason (left), Gared Fleishman(standing), and David Boatright successfully completed theStudent Learner Program. All three continued to work for thecompany after graduation.

Right: Sophomore Danely Flores turns down a metal shaft aspart of her plumb bob project on a metal lathe.


become profitable quickly, Harry and his team werevery long-range oriented and were prepared to bepatient, and we bought things that we knew weren’tgoing to contribute probably as quickly as we wouldhave liked. …

Glauber: Most of our acquisitions were accretivethe first year.

Jefferies: Particularly in springs. There weregreater synergies.

Glauber: We paid for some of the synergies thatwe envisioned, particularly in innersprings, becausewe knew what we could do with them when weacquired them. I remember I was always shakingmy head at Harry paying some of the prices, butthey were very good acquisitions.

Jefferies: We paid based on intuition as wellas financial models.

Glauber: Yes, to see what some of those thingscould do for us; and of course, Harry had the insight.Knew where he wanted to go in a lot of those cases.

Jefferies: The irony over the years is that someof the things that I thought going in were very expen-sive turned out to be dirt cheap, and some of thethings I thought were dirt cheap turned out to bevery expensive. When you do 200 or 300 of these,you just don’t always know.70

That year, on the FORTUNE® list of “America’s MostAdmired Companies,” Leggett & Platt ranked 48th—in the top 11 percent—of 431 companies in Amer-ican industry.71

Ending an Era

Early in 1998, as part of a carefully planned suc-cession, Harry Cornell, Jr., announced that he wouldretire as CEO in May 1999, although he would con-

tinue to serve as chairman of the board ofdirectors. Felix Wright would become thenew CEO; he would, however, continue toserve as president and chief operatingofficer until May 1999.72

In a special message released in 1998,Harry announced his successor with greatpleasure: “Felix’s excellent performance,coupled with his talent, experience, and astrong management team, has led us to aseamless transition point, naturally andwith great confidence.”73 As part of theannouncement, Harry anticipated that

120

A formidable team was formed in 1999, whenFelix E. Wright (center) moved to the position ofCEO as Harry M. Cornell, Jr. (left), retired from thepost, although he remained Leggett & Platt’schairman of the board. David S. Haffner (right)advanced to executive vice president and chiefoperating officer.

MARCH 1967 IPO 100 SHARES

MAY 1969 5-FOR-3 167 SHARES

JANUARY 1973 3-FOR-2 250 SHARES

SEPTEMBER 1978 3-FOR-2 375 SHARES

AUGUST 1983 2-FOR-1 750 SHARES

MARCH 1986 3-FOR-2 1,125 SHARES

JUNE 1992 2-FOR-1 2,250 SHARES

SEPTEMBER 1995 2-FOR-1 4,500 SHARES

JUNE 1998 2-FOR-1 9,000 SHARES

HISTORY OF STOCK SPLITS:GROWTH OF 100 SHARES


David Haffner, executive vice president,would succeed Wright as chief oper-ating officer. Haffner, who had joinedLeggett & Platt in 1983, was alreadyresponsible for more than 75 percentof the company’s operations.74

Before the leadership transitiontook place, John Hale, senior vice pres-ident of human resources, interviewedWright for Leggett’s internal publica-tion, the Management InformationBulletin (MIB). Hale recalls:

In 1998, when Harry was passing the [CEO]baton to Felix, Felix said he was looking forwardto preserving the company’s culture. ... Frankly,I was a little uncertain how this would beaccomplished. ... So I asked Felix how, giventhat we’re buying 10 or 20 businesses a year, hewas planning to preserve this culture? ... Hecame in on Monday with a piece of notebookpaper on which he had written a “baker’s

dozen” worth of items ... and we still review thoseitems with every one of our new employees at thecorporate office.75

Throughout 1998, Leggett & Platt acquired16 businesses. The company’s rank on FORTUNE ®

magazine’s “Most Admired” list placed it in the top

LEGGETT’S ACCOMPLISHMENTS HAVE BEEN

substantial since 1960, when at $7 millionin yearly revenues, we began to build the

framework for our continuing growth strategy. Didwe dream then that the company would crossthe $3 billion mark in annualized sales and havea total market value of more than $5 billion earlyin 1998? No, not specifically. However, we didforesee great opportunities to expand our business,while enhancing prospects for profitable growthand shareholder wealth. With ongoing refine-ments and assessments, these cornerstones ofour strategy will guide us.

Long-term shareholders, employee–partners,customers, and many of their families know ofmy absolute commitment to Leggett and its contin-ued success. My personal rewards in leading our

management team for nearly 40 years are immea-surable. They extend far beyond financial termsand investment returns on Leggett stock to count-less business relationships and priceless personalfriendships … worldwide. It has been particu-larly gratifying to see so many employee–part-ners succeed and benefit from the financial suc-cess of the company as shareholders.

My service with Leggett will forever be anunforgettable experience for me. Leggett’s long-term outlook is brighter today than ever. Wehave a proven strategy, substantial capitalresources, and a group of employee–partnerssecond to none … all in place and dedicated tomaking it happen, day-in and day-out. Together,we will keep our expectations high and antic-ipate an exciting future.1

CORNELL’S CLOSING STATEMENTUPON RETIREMENT AS CEO (1960–1999)

John Hale began his Leggett & Platt career in1979 as manager of employment and training.For several years, he was also the manager ofemployee benefits. Beginning in 1987, Halebecame the head of human resources and wasmade an officer of the company in 1995. Heis currently the senior vice president of humanresources. During his 29 years with thecompany, John has helped hire, train, andassimilate many of Leggett’s employees, andhas served as the de facto company historianand custodian of the culture.

6 percent of nearly 500 major corporations. In June,Leggett & Platt announced another 2-for-1 stock split;in the 31 years following the 1967 initial public offer-ing (IPO), one share of initial stock expanded to 90post-split shares. Investors who held their IPO sharesfor those 31 years would have received a compoundaverage growth rate of approximately 19 percent ontheir initial investment.76

Some of the most exciting news of 1998, however,was Leggett & Platt’s entry into China through itsagreement to produce proprietary innerspring unitsfor bedding manufacturers in that country. Also inChina, Leggett opened a facility for machinery pro-

duction and machinery parts sourcing, followed bya furniture mechanism plant.77

Dennis Park, senior vice president and head ofthe Commercial Fixturing & Components seg-ment, recalled how the company was initially ableto penetrate the Asian market:

Our initial venture into Asia was actually an acqui-sition that we made in the late 1990s in Australia. …At the same time as we were looking at the Australianmarket, we recognized that they had long-establishedtrading activities with the Asian market—Indonesia,Singapore, Malaysia, and just beginning in China. …

The Leggett & Platt board of directors in 1998 included (seated, left to right): Herbert C. Casteel (Advisory) and Alice L. Walton.Standing, left to right: R. Ted Enloe, III; Maurice E. Purnell, Jr.; Frank E. Ford, Jr. (Advisory); Alexander M. Levine; Raymond F.Bentele; Jack B. Morris (Advisory); Richard T. Fisher; Harry M. Cornell, Jr. (Chairman); Thomas A. Hays; Felix E. Wright; Bob L.Gaddy; Richard L. Pearsall; Duane W. Potter; and David S. Haffner. Robert A. Jefferies, Jr., is not pictured.


So once we made that acquisition, it allowed us todevelop customer relationships in many other Asiancountries, and again, that was ultimately whatallowed us to be extremely well-positioned when wewere ready to take a physical presence into theChinese market, and we already had a number ofpre-established customers there.78

From that point forward, Leggett & Platt beganactively pursuing more international opportunitieswith a strategy that international growth, like thatachieved in North America, would be methodical andcarefully planned to complement existing operations.

New Leader, International Growth

In May 1999, after nearly 40 years of leader-ship, Harry Cornell transferred the CEO responsi-bilities to Felix Wright. In parting, Harry remindedLeggett & Platt employee–partners of one of hisfavorite quotes that had hung in his office for manyyears—a saying that he had often used to guide andinspire others during his tenure: “Success is foundedon a constant state of discontentment interruptedby brief periods of satisfaction on the completion ofa job particularly well done.”79

Under Wright’s leadership, Leggett & Platt accel-erated its acquisition program on both the domes-tic and international fronts, acquiring 29 compa-nies in 1999 that specialized in residential andcommercial furnishings, industrial materials, andother specialty products.80 The foreign acquisitions

took place in Australia, Brazil, China, Italy, Mexico,Spain, and the United Kingdom.81

At the close of market trading on October 15,1999, Standard & Poor’s added Leggett to the S&P500 Index, one of the primary standards for mea-suring performance of the stock market.82 Leggettwas further honored that year as it climbed to thetop 5 percent of FORTUNE ® magazine’s “America’sMost Admired Companies.” It ranked 23rd out of469 companies.83

Leggett & Platt has been rightfully admired forseveral reasons—its successful growth and prof-itability, the ethical behavior of its leaders, and itspositive influence on communities. One fine exam-ple of Leggett’s community involvement is its award-winning Student Learner Program, started in 1999as a partnership with the Carthage public schoolsystem. The program has helped previously under-performing students improve their prospects for com-pleting their high school education while acquiringtechnical skills, gaining job experience, and earningmoney as Leggett & Platt student employees.84

Leggett & Platt ended the millennium withanother positive year of performance. The companyannounced net sales of $3.7 billion in 1999, up12.1 percent over the previous year. Net earningsincreased to $290.5 million, up 17.1 percent. Foreight consecutive years, the company had achievedrecord sales and earnings, and for 29 consecu-tive years, it had raised dividends.85 Leggett & Plattentered the 21st century as a thriving, confident, andprofitable company.

Although its products were used in everyday activities and in every walk of life, by the new millennium, Leggett & Platt hadbecome a regular member of the FORTUNE® 500 list without ever becoming a household name.

C H A P T E R E I G H T

EMBRACING THEGLOBAL MARKET

2000–2008

LEGGETT & PLATT ENTERED THE NEW

millennium as a time-tested, diver-sified, and growing enterprise.

Excerpts from the company’s 2000Annual Report describe its leadingmarket positions at that time:

• Today we are the worldwideleading supplier ofcomponents to the beddingand furniture industries.

• We are the market leader in design andmanufacture of a broad suite of retailstore fixtures.

• We are the leading independent producerof components for office furnituremanufacturers.

• Our aluminum group is the leadingindependent producer of non-automotive die castings in North America.

• We are North America’s leading supplierof drawn-steel wire.

• We are the leading worldwide supplier ofautomotive seating and lumbar systems,and a leading supplier of control andpower train cable systems.

• We have a premier global position in wireforming equipment, industrial quiltingand sewing machinery, and otherspecialized machinery we design, patent,and manufacture.2

For the first half of 2000, Leggettexperienced strong sales growth thatboosted the year’s sales volume to arecord high of $4.3 billion. Duringthis time, the number of employeesalso grew substantially.3 In January,Leggett employed approximate-ly 31,000 people worldwide. ByJune, that number increased to morethan 34,000.4

Unfortunately, consumer de-mand declined dramatically in the second half ofthe year. The company promptly responded to thedecline by initiating production cutbacks at oper-ations with decreasing sales, but the combination offewer sales and underutilized plants amplified over-head costs and reduced profit margins. Additionalfactors, such as higher medical and energy expenses,also lessened the year’s profits.5

In September, Leggett & Platt released a state-ment concerning the earnings decline:

Unanticipated developments in several businesssegments contribute to the reduced earnings.Continuing problems in the company’s Aluminum

As we go forward internationally, and as we find ways to differentiateourselves from other competitors and grow into businesses in which we don’tcurrently participate, we’re going to need significant technical competency.

—President and CEO David S. Haffner1

Leggett & Platt’s IDEA Center opened in 2007 and was partof the company’s renewed emphasis on research and newproduct development.


Products segment produced the largest portion of theshortfall. Both sales and margins in the AluminumProducts segment will be down significantly from lastyear’s levels as a result of reduced demands inseveral product lines, plant inefficiencies, and higherraw material and energy costs. In the CommercialFurnishings segment, reduced demand for someproducts will result in sales that are considerablylower than anticipated. In addition, margins remainbelow year-earlier levels due to integration inefficien-cies at some recently acquired businesses. Finally, inthe Residential Furnishings segment, the companyis experiencing softening demand, reduced produc-tion, and lower margins.6

To combat the earnings decline, Leggett imple-mented a four-point tactical plan. First, the companywould correct operational problems in underper-forming facilities. Second, operations with irrepara-ble problems would be consolidated, closed, or sold.Third, acquisitions and capital spending would bereduced, primarily in the aluminum and commer-cial segments. Fourth, the company would repur-chase up to 10 million shares of its stock, approx-imately 5 percent of the current share base.7

CEO Felix Wright assured the shareholders thatthe tactical plan only temporarily shifted the focusof the company’s goals:

This is not a strategic change in our long-termgrowth plans. This is a tactical shift to accomplishtwo things. First, it gives management of underper-forming operations time to devote their full attentionto correcting problems, without the demands thatadditional acquisitions bring. Second, it frees up cash

to repurchase what we believe are extremely under-valued shares, without requiring that we significantlyleverage the balance sheet. Strategically, we plan toreturn to our traditional level of acquisition expendi-tures, and the resultant top and bottom line growth,once operational performance improves.8

Matthew C. Flanigan joined Leggett & Platt in1997 after a successful banking career. Beforebecoming a senior vice president and chief financialofficer, he oversaw Leggett’s office and contract fur-niture components operations. Flanigan describedthe weakened sales of these operations early in thedecade, providing one example of the overall decreasein demand Leggett experienced at that time. He con-cluded with some positive remarks about the com-pany’s tactical plan:

In 2000, some of our markets softened. I wasresponsible for the office furniture components group,and from 1999 and 2000 to within about 18 monthslater, that market demand, as defined by shipmentsof office furniture, dropped 33 percent, which isunheard of in the history of that industry.

In the late 1990s, you had the dot-com activity—a lot of these exciting Internet companies went pub-lic. They were flush with IPO proceeds. One of thefirst things they needed to do was hire people to taketheir newly public companies to greatness. Theyneeded to get the work environments that wouldattract talent, and it so happened that a lot of thosework environments had seating that Leggett had awhole bunch of components going into.

Well, once you get to 2000–2001, that bubbleburst. Not only did you have a significant contractionof demand because there weren’t those companiesout there anymore buying that product, but lo andbehold, suddenly there weren’t those people sittingin those chairs. So you put those two forces together,and you have a 33 percent drop in the business.

Now here’s the good news: Dave [Haffner]and Harry [Cornell] and Felix [Wright] pulled together

126

Felix E. Wright, president and CEO (left), and Harry M. Cornell, Jr.,chairman of the board (right), were at the head of the leadershipteam that made some tough decisions about cutbacks anddivestitures in the early years of the new millennium.

C H A P T E R E I G H T : E M B R A C I N G T H E G L O B A L M A R K E T 127

as a team. They weren’t caught terribly off-guardby what happened and were able to right-sizeand bring the operations to a level of equilibriumgiven what the market was allowing them to sellat that point in time. The company continued tomake very good returns, profit margins, andreturns on the assets deployed, even that verynext year and the year after, well above the corpo-rate average [despite] that drop in marketdemand because they had done such agood job.9

The tactical plan limited ac-quisitions in the second half of 2000,

but by year-end, Leggett had pur-chased 21 companies. The 2000 An-nual Report refers to them as “bolt-onadditions,” businesses that attachedeasily to existing operations. Newcompanies were added to each ofLeggett & Platt’s five market segments:Residential Furnishings, CommercialFurnishings, Aluminum Products,Industrial Materials, and Special-ized Products.10

By the end of the year, net salesreached a record $4.3 billion, but earnings decreased9.1 percent to $264.1 million. Despite this decrease,the tactical plan was already producing good results.The company increased its free cash flow to $271 mil-lion, 28 percent higher than the previous recordachieved in 1999. Long-term debt was at 33 percentof total capitalization.11

Streamlining Operations,Searching for Opportunities

In 2001, a difficult year for the U.S. economy,Leggett & Platt continued to apply the tactical plan.It consolidated or sold 20 facilities, restructuredoperations, eliminated overhead, and reduced full-

time–equivalent employment by 3,700. Thecompany decreased capital spending to its

lowest level in four years and acquiredjust 10 new businesses. These were

Right: Matthew C. Flanigan, a former banker,joined Leggett & Platt in 1997 to oversee thecompany’s office and contract furniturecomponents operations; he later became seniorvice president and chief financial officer.

Below left: Leggett & Platt’s motion mechanismsare found in some of the finest upholsteredfurniture in the world today.

Center: Leggett & Platt’s power lift reclinermechanism is engineered for strength anddurability, offering convenience and comfort.

Below right: Using its aluminum die-casting capabilities, Leggett &Platt made jugs, or piston holders, for Harley-Davidson motorcyles.


purchased primarily to enhance Leggett’s best-performing operations.12

The weakened economy of that time was furtherstressed by the terrorist attacks of September 11,2001. Members of the Islamic militant sect, Al Qaeda,hijacked four U.S. commercial airliners. Two wereflown into the World Trade Center towers in NewYork; one was flown into the Pentagon in Arlington,Virginia; and the last airplane crashed in a ruralfield in Pennsylvania. In addition to the passengersand crew, thousands were killed in the wreckageof the Pentagon and in the collapse of the TwinTowers, as the structural supports gave way fromthe intense heat of the burning aircraft fuel.

Economic turmoil ensued immediately after thetragedy. All airline flights were grounded; militaryforces were placed on high alert; and Wall Street trad-ing was suspended in the face of plummeting futuresand falling stock prices on a global scale.

Matt Flanigan recalled the emotional impact ofthe attacks on the nation and the subsequent finan-cial impact on Leggett & Platt’s operations:

It struck a chord with the confidence of corporateAmerica. ... As companies are making a lot of money,they tend to expand, hire, and need to provideoffice environments for additional resources. Con-sumer confidence in general is a big driver of whetherthere is demand.

So after 9/11, you had companies, with the airlineindustry being the most dramatic example … [that]

suddenly did not only know where things weregoing, but the costs to compete had gone up, whetherit was security or what have you. [So many said],“We’re just not going to do any expansion. We’re notgoing to do any hiring. We’re going to lay low here fora year or so.” And that’s what happened to a lot ofthe customer base. [While the] Internet boom or bub-ble burst had been a major hit, with 9/11 shortlythereafter, it became a double whammy on corporateconfidence, and it really caused the downturn to lastall the way from 2000 into 2003.13

Like all U.S. businesses, Leggett & Platt experi-enced the trying financial effects of September 11.However, the company not only weathered the diffi-cult downturn, but functioned remarkably well inspite of it.

In December 2001, Leggett operated 29 busi-ness units and employed 31,000 people in morethan 300 facilities located in 18 different countries.14

The more internationally focused company devel-oped three strategies for further expansion in foreignmarkets. First, if one of Leggett’s manufacturingcustomers established an operation abroad, Leggettwould, at the customer’s request, open a factorythere to supply components.15

Second, Leggett & Platt would seek out oppor-tunities for deverticalization. The company woulddemonstrate its ability to produce components morecost-effectively than foreign manufacturers. Theprospect for deverticalization was especially strongin Europe, where bedding and furniture manufactur-ers produced many of their own components, muchlike U.S. manufacturers of the 1960s and 1970s.16

Third, Leggett would simply purchase or build afactory to establish a presence in a foreign market.17

Leggett & Platt’s 2001 sales and earningsreflected the year’s economic downturn. Net salesdecreased 3.8 percent to $4.1 billion, and net earn-ings decreased 29 percent to $187.6 million.18 Despitethese decreases, the company achieved a record highcash flow, $535 million, and increased its annual div-idend to shareholders for the 30th consecutive year.19

Leggett & Platt has consistently ranked as one of thetop five companies in the FORTUNE® 500 list withregard to the number of consecutive annual dividendincreases and the high rate of average compoundannual dividend growth. (As of 2008, the companyhad increased its dividend for 37 consecutive years.)20

Opposite: In celebration of his 50th anniversary with Leggett &Platt in 2000, Harry M. Cornell, Jr., was presented with this oil-on-canvas mural, commissioned by Felix Wright from local artistAndy Thomas. The mural portrays Harry with his hand on a globe;directly behind him on the left is his father, Harry M. Cornell, Sr.,along with his grandfather, company cofounder J. P. Leggett.Directly behind them, Harry is depicted at a much younger age infront of the Carthage, Missouri, factory where he worked as ayouth (and later). The building on the upper right is the Ennis,Texas, facility, which he managed. Under that is the old corporateoffice in Carthage, the New York Stock Exchange, and a corner ofthe present corporate office. A reproduction of the Partners inProgress® bronze is shown bottom center. At the time of thiswriting, Harry had served Leggett & Platt in various capacities for58 years. (Printed by permission, courtesy of Andy Thomas.)


In 2002, Leggett & Platt completed the tacticalplan. In total, the company had sold or consolidated27 facilities and restructured other operations. Ithad reduced overhead, decreased full-time–equiv-alent employment by around 3,700, and boughtback 9 million shares of company stock. Leggetttrimmed capital spending to its lowest level in fiveyears and brought working capital to its lowest levelin seven years.21

Since the tactical plan limited acquisitions,Leggett purchased only seven more “bolt-on” busi-nesses in 2002. They were expected to raise annualrevenue by about $70 million.22 In addition, in animportant asset acquisition, the company purchaseda steel mill in Sterling, Illinois, that had been closeddue to bankruptcy.

New Leadership, New Direction

In May 2002, Leggett completed another long-planned succession of management. Harry Cornell,who had retired as CEO in 1999 and smoothlypassed the CEO’s responsibilities to Felix Wright,now also retired from his duties as chairman ofthe board. Cornell, who had served nearly 40 yearsas CEO and 21 years as chairman of the board,was appointed chairman emeritus and continuedto serve as an active member of the board as wellas a consultant to the company. Leggett & Platt’sCEO, Felix Wright, became the company’s newchairman. David Haffner was promoted to presidentand also remained as chief operating officer. Similarly,

Karl Glassman was appointed executive vice presi-dent of operations and remained president of theResidential Furnishings segment.23

On July 30, 2002, in response to the recentstring of corporate and accounting scandals, theSarbanes–Oxley Act was signed into law. It imposedstricter regulations on companies’ financial prac-tices and governance. The legislation caused rela-tively minor operational changes for Leggett & Platt, acompany with a long history of high ethical stan-dards. The company addressed this integral part ofits culture in its 2002 Annual Report:24

Companies are known by the reputation theiremployees earn. Through the years Leggett’semployee–partners have earned a reputation andset a high standard for honesty and integrity. Thoseare deeply held, fundamental values of our firm—tenets we will adhere to even if they somehow provedisadvantageous in the marketplace. Because ofthis, it distressed us last year to learn of manage-ment misdeeds perpetrated on investors by a smallnumber of corporations. We are encouraged to seeinvestors more closely scrutinizing all firms’ account-ing practices and governance policies.

Leggett shines under the light of close examina-tion. First, our pension plans remain over-fundedin the aggregate despite three years of stock mar-ket decline. Few FORTUNE® 500 firms can makethat statement. We have consistently applied, andwill continue to employ, conservative pensionassumptions. Second, we are in compliance withall new corporate governance rules. Indeed, wewere already following good governance practicesand therefore found it easy to conform to the newrules. We have had a majority of independentdirectors on our board for several years, and allof our key board committees consist solely of inde-pendent directors. Third, we issue stock optionsto a broad group of employee–partners each year,and in 2003, we will begin recording those optionsas an expense item. In addition, a large group of

130

In 2002, Leggett & Platt’s leadership included (left to right) KarlGlassman, executive vice president of operations and president ofResidential Furnishings; Felix Wright, chairman and CEO; andDavid Haffner, president and chief operating officer.


IN MAY 2002, LEGGETT & PLATT PURCHASED AN INAC-tive steel rod mill in Sterling, Illinois, from thebankrupt Northwestern Steel & Wire. Since

2003, this facility, now named Sterling Steel, hassupplied at least half of the steel rodfor Leggett’s operations each year.Today, the mill produces in excess of500,000 tons of rod annually usinga 400-ton electric arc furnace, aneight-strand billet caster, and a sin-gle-strand rod mill.1

The milling process begins withscrap or by-product steel that ismelted in the arc furnace and com-bined with other elements. Themolten steel is poured through atundish (a reservoir in the top of themold) to form billets (semi-finished,cast products) that are rolled into rod. The rod isthen shipped to Leggett & Platt’s wire mills, whereit’s drawn into smaller dimensions, suitable for var-ious wire products made in Leggett’s plants.2

“Owning Sterling Steel has assured Leggett& Platt of a reliable supply of quality rod,” saidJoseph D. Downes, Jr., senior vice president of

Leggett & Platt and head of the Industrial Mater-ials segment. “Having a consistent source ofraw materials enables our wire-drawing machinesto run more efficiently, which in turn leads to

higher-quality wire products. Ster-ling has been a great investmentfor the company.”3

THE STERLING STEEL MILL

Left: Joseph D. Downes, Jr., has worked forLeggett & Platt’s wire group in severalcapacities since 1980. Downes became acompany vice president and head of thewire group in 1999. He was namedpresident of the Industrial Materialssegment in 2004 and became a senior vicepresident in 2005.

Below: These photos illustrate the process by which steel rod isproduced. First, scrap or by-product steel is loaded into theelectric arc furnace and melted (left). Hot molten steel is thenpoured through a tundish to mold billets (center), which are thenrolled into rod (right). The rod is then drawn into wire at thecompany’s wire mills.


executives collectively forfeits about $5 [million]to $7 million of cash salary each year to acquireadditional stock options (through a company spon-sored plan). And fourth, we have a long historyof high-quality earnings, financial transparency, andconservative accounting practices. We emphasizeGAAP-based [Generally Accepted Accounting

Principles] earnings, include restructuring costs asa normal part of doing business (not as non-recur-ring costs), have recorded only two special chargesin the last 25 years (for a total of $31 million), and, incontrast to most acquisitive firms, we took no good-will write-down for implementation of FAS [FederalAccounting Standard] 142. 25

132

BORN IN 1952 AND RAISED IN CARTHAGE, MISSOURI,David S. Haffner grew up in close proximityto Leggett & Platt. His grandfather’s house

was only a block from the company’s MoundStreet offices. As a young man,however, Haffner never intendedto work for the local business.

After high school, Haffner at-tended Missouri Southern StateUniversity and then transferred tothe University of Missouri–Colum-bia where he earned a degree inindustrial engineering and re-ceived the Top Senior IndustrialEngineering Award.

After college, Haffner’s fa-ther suggested he interview withLeggett & Platt. Haffner recalled:

Out of respect for my father,I went for an interview with Leggett & Platt,but I had a number of good job offers pendingand really couldn’t imagine going to work for avery small company. I remember my inter-view with Frank Ford. ... He told me the com-pany didn’t have an opportunity for me. At thetime, it seemed like a relief.1

David accepted a job as a project and designengineer for Schreiber Foods, Inc., a major dairyproducts company based in Green Bay, Wisconsin.The job provided the opportunity to thoroughly

apply his education and to travel. “So I had thisfabulous job going all around the world, designingprocessing plants and systems, and working withinternational governments and individual com-

panies,” said Haffner. “And that’swhat got me to Australia andEurope and Asia and South Amer-ica and all over the place. In fact, Ispent quite a bit of time in theMiddle East back in the 1970s.”2

While working for Schreiber,Haffner earned a master’s degreein business administration from abranch of the University of Wiscon-sin, and in 1977, he was promotedto director of engineering.

Due to the untimely death ofhis father-in-law and the deteri-orating health of his own father,Haffner transferred to a Schreiber

operation in Missouri where he and his wife,Connie, could be closer to family.

In 1983, Schreiber asked Haffner to returnto Wisconsin to fill a senior executive position atthe company’s headquarters. Haffner faced adifficult decision, and Felix Wright helped himwith it. Haffner recalled, “Maybe it was divineintervention.” He continued:

Felix was on his way to Cassville, Missouri,to pick up some parts for one of his tractors.He had his mother, his father, and his wife

DAVID S. HAFFNERCEO, 2006 TO PRESENT


Steel Rod Mill

In 2002, with the nation still climbing out of theeconomic downturn, Leggett & Platt made a giant leap“backward” with the purchase of an idle rod mill andmelt furnace from the former Northwestern Steel andWire Company of Sterling, Illinois. This move into rod

production further advanced the company’s verticalsupply strategy through backward integration, ensur-ing a consistent supply of quality raw material forLeggett & Platt’s wire mills. When fully operational,the Sterling rod mill began generating 450,000 tons ofsteel rod per year, supplying roughly half of Leggett’swire mill requirements.26

with him. … He’d read in the paper that Iintended to go back to Wisconsin, and hestopped by my house to congratulate me. Hetold me that it disappointed him somewhat.He was pleased and excited for me personally,but it disappointed him because he thoughtLeggett offered an awfully good opportunity.At that time, I told him, “My friends in GreenBay don’t know, but I think I’m staying inMissouri.” It turned out to be one of the bestdecisions I’ve ever made.3

Haffner accepted a position with Leggett& Platt as a group vice president of opera-tions. Within three years, he acquired a thor-ough knowledge of several Leggett businesses.Ironically, his first assignment included respon-sibility for the company’s aluminum die-cast-ing operations in Wisconsin, and he often trav-eled there.4

Shortly thereafter, Haffner was reassignedto learn the company’s wire mill operationsand was made subsequently responsible forexpanding Leggett’s office components business.In 1985, Haffner was appointed as vice presidentand officer of the company, and president of thefurniture components group. In that capacity,he was responsible for all nonbedding furnitureoperations. With his technical background, hisinterests in design and development, and hisadministrative abilities, he mastered each posi-tion and was soon promoted.

In 1995, Haffner was elected to the board ofdirectors. The same year, he became Leggett’sexecutive vice president; he served in that capac-ity until he became president in 2002. Additionally,from 1999 to 2006, Haffner served as the com-pany’s chief operating officer. On May 10, 2006,he was promoted to CEO.5

Haffner discussed his responsibility toLeggett’s shareholders as CEO:

We genuinely respect the expectations share-holders have, not just for the fiscal well-being andfinancial performance of the company, but for itsintegrity and culture.

There are thousands of shareholders effec-tively wagering that you and the team aroundyou are going to make the right decisions. It canbe very humbling. To me, it’s more importantthan the value of the stock or stock equivalentsany one of us may own.

The thousands of people who work in ourplants and own a few hundred shares arebanking on us to make the right decisions. It’sa responsibility that can certainly keep youawake at night.6

Haffner also considers the continuance ofLeggett’s corporate culture a high priority:

Perpetuating Leggett’s unique culture is ahuge responsibility—something I keep high onmy list of priorities.

Because of my experience in a cheese-mak-ing business, culture has a special meaning tome. In that environment, if you modify the cul-ture, you don’t get the same end result. … AsLeggett grows internationally, we’ll inevitablybe influenced by different governments andcustoms. Some changes in our culture are pre-dictable and desirable.

On the other hand, there are elements ofour culture we want to be certain to preserve—ethical business practices, great customer ser-vice, and a relatively non-political environ-ment. … These things are critical to our peopleand success.7


Much of the credit for this purchase went to MikeGlauber, Leggett’s senior financial officer at the time.For 25 years, Glauber was a member of Leggett’s wirecommittee, and he participated in quarterly reviews ofsteel rod costs in Kansas City, Missouri, home ofArmco Steel. Due to his knowledge of the industry,he recognized the benefits of purchasing the Sterlingfacility. Felix Wright recalled:

A number of us … said that there was one thingwe didn’t want to do. We didn’t want to be a steelbusiness. … We stuck by that because it’s been aroller coaster market, and obviously people can’t getany kind of return on their investment. …

[The] steel industry [had] gone through a horren-dous cycle and [was] in the down cycle, and a goodold company … Northwestern Steel and Wire, couldn’tmake it. But they had been a totally integratedsteel company making everything from 24-inchbar joist to all kinds of galvanized products to rodsto anything you want to make in steel. … They gotthemselves in a mess to where they couldn’t standit. The bank finally pulled their loan.

So Mike Glauber gets a big bunch of the creditfor continuing to beat on my door and say, “Felix, Ithink there’s a great opportunity here for a verticalplay, not a steel play.” …

[Looking] at what happened, it’s still strange whenyou start talking about a vertical play. … But asthings culminate, you continue to think about it, andthey take it from Chapter 11 to Chapter 7. So whenthey take it to Chapter 7, it means it’s going to bebroken apart.

So, at that point, you have to go through all theenvironmental deals and so on. … You can imagineour boardroom conversations about an 1879 steelmill on 200-some acres. But anyway, you get theopportunity maybe to look at a melt furnace, whichis the most modern melt furnace in North America.

They had spent $24 million putting a melt furnace intwo years before they took it into Chapter 7. So weknew what that was. The rod mill was pretty anti-quated, but they were making rod that we werebuying. We were a pretty good customer.

So the concept became what was okay forLeggett. What about a vertical play? What if yougo in and only buy a caster, a 400-ton melt fur-nace, and a rod mill, and everything else goesaway, and you’re a vertical rod supplier of 50 per-cent of your needs? So that’s what we were ableto come to grips with and buy, and we were ableto buy those assets. All the rest of the assets onthe property were eventually cut up by either our-selves or other steel scrap people and run backthrough our furnace, and were melted into prod-ucts that we would make rod for ourselves duringthat first 18 or 24 months.27

Before purchasing the mill, it was determinedthat the facility’s energy expenses could be greatlyreduced by operating the melt furnace only Fridaythrough Sunday, when electrical costs were lower,

134

Left: Mike Glauber, who joined Leggett & Platt in 1969, workedhis way through the ranks as controller, treasurer, and financevice president, ultimately becoming senior vice president offinance and administration.

Center: John Reynolds, conference center coordinator at thecorporate offices in Carthage, stands in front of the entrance tothe Cornell Conference Center. Reynolds is a longtime employeewho has worked for Leggett & Platt for more than 30 years.

Right: Karl Glassman, who has been with Leggett & Platt since1982, added the title of executive vice president of operationsto his responsibilities in 2002.


ALTHOUGH SOME COMMENTATORS CLAIM THAT LOYALTY

between employees and their companiesis dead, examples of such loyalty are abun-

dant at Leggett & Platt. Consider, forexample, Oscar “Bud” Hougland,who was hired January 1, 1930, andretired July 25, 2003—after morethan 73 years of service.

Gene Woestman, a former gen-eral manager at Leggett’s Winchester,Kentucky, facility, provided informa-tion about Bud’s career, which isparaphrased below:

Oscar “Bud” Hougland beganworking as a laborer for Leggett & Plattin 1930, at the Louisville, Kentucky, plant, unload-ing the angle iron used to manufacture bedsprings.Bud was the son-in-law of Fred C. Bouser, whostarted with Leggett in 1903 and was one of theoriginal superintendents of the Louisville factory.While in Kentucky, Bud also worked in the bottomwire and top bending department, ran bedspringcoilers, and assembled bedsprings until 1934,when he was promoted to foreman of the assem-bly department. In 1938, Bud was again promotedto general foreman, a position he held until 1941.

In March 1941, Bud transferred to the Dallas,Texas, plant, working as superintendent until theplant closed in 1944. For two months after theDallas plant closed, Bud returned to work as gen-eral manager of the Louisville plant. Then, Budtook an opportunity to move to Winchester,Kentucky, to open a bedspring factory, whichhe operated as general manager, all the while

still holding the same position at the Louisvilleplant. In 1967, Bud became operations managerof the Winchester facility, a position he held for

many years.1

Bud officially retired from Leggett &Platt in 1978, but management askedhim to continue working as an advi-sor, which he did until he left the com-pany in 2003. Bud said he could notimagine what life would have been likeif he had stopped working. “I probablywould have went nuts, or my wifewould have,” he said.

Saundra Snowden, the office man-ager in Winchester, recalled the last

couple of decades of Bud’s career:

We had the first retirement for Mr. Bud in 1978,but he never quit coming to work … usually at6 A.M., and he always had coffee made for thegirls. He would go home around 2 or 3 P.M., unlessthere was something going on in the plant—new machinery or some type of a major prob-lem. He continued to be productive; he did paper-work for Gene [Woestman] and was always therefor good advice.2

OSCAR “BUD” HOUGLAND

In 2000, Leggett & Platt executives honored Bud Houglandfor his 70 years of service to the company. Pictured left toright: Gene Woestman, former general manager of Leggett &Platt’s Winchester, Kentucky, operations; Felix Wright; BudHougland; and Harry Cornell, Jr.


but Glauber said it was difficult to convince othersthat this was a good idea.

“You lower your power rates, but the disadvan-tages to doing that are you’re going to have to realignyour facilities a little more often, and that might eatup your $10 a ton savings you got over here,” he said.“But we could run it three days. We could turn it onand turn it off. … It was not an easy sell even at thatpoint. I guarantee you it was not an easy sell. [Somepeople] thought we were crazy.”28

It was finally confirmed that the furnace wouldproduce sufficient volumes of steel if only operatedFriday through Sunday. Initially, there was a concernthat turning the furnace on and off every week might

decrease the life span of critical parts by 50 to 60 per-cent, but Leggett & Platt determined by experiencethat the longevity of these parts would only decreaseby 10 percent. This was acceptable considering theenergy savings that would result from shuttingdown the furnace.29

Prior to the purchase, Leggett & Platt required thecompletion of successful negotiations with the mill’sformer labor union. The company also had to meetseveral Environmental Protection Agency require-ments. With these issues settled, Leggett purchasedthe property at auction for the astonishingly low priceof $5 million—a bargain considering the owners hadinvested an estimated $150 million in refurbishing

136

WHEN LEGGETT & PLATT ENTERED THE CHINESE

market in 1998, the company en-countered challenges it had not pre-

viously experienced.1

“One thing we realized in thelast couple of years is one size doesnot fit all,” said Paul R. Hauser, sen-ior vice president of Leggett & Plattand head of Residential Furnish-ings. “Asia is a different model witha different market than Europe,which is a much more mature mar-ket versus an emerging market. Soyou have to treat those differentlyin terms of your strategies.”2

Leggett was quick to adaptits strategies in the emerging Chinese market,and by 2007, the company’s holdings included20 profit centers in China. Felix Wright summedup the strategy:

Patience. We wanted to own the majority of ourAsian operations outright. We wanted to run themwith Chinese nationals. We didn’t want to run itwith a bunch of ex-pats. … We were very blessedto have had a great Chinese national that arrivedwith an acquisition, a fellow named Philip Shen.

We’ve tried to mitigate some of the risks, butwe understand we’re operating in a Communistcountry. We’ll never mitigate all of them.

[We’ve also] tried to set up ouroperations and send the techni-cal expertise to help train the Chi-nese in “lean manufacturing” andmany other areas. … We’re not justthrowing bodies at those opera-tions, but we’re trying to set themup, structure them, and run themin the most efficient manner possi-ble … thinking we could even bethe low-cost producer in Asia. Andonce [we become] the low-cost pro-ducer in Asia, as that economy

grows, we want to be able to service it, or if moreof those components come back over here,

LOOKING TO THE EAST

Paul R. Hauser joined Leggett & Platt in 1980 asproduct manager for the bedding group, of which hebecame president in 1999. Since then, Hauser hasmoved up through the ranks to become senior vicepresident of Leggett & Platt and head of the ResidentialFurnishings segment.

the property prior to the bankruptcy.30 After buy-ing the mill, Leggett & Platt invested an additional$20 million to improve and adapt the facility to thecompany’s particular needs.

Concerning the success of this acquisition, MikeGlauber commented:

The Sterling mill turned out to be an absolutegrand-slam home run for Leggett. Demand for rod inthe market increased dramatically, and we had ourown protected, high-quality supply. Not only that, butthe price we paid for the mill and the low depreciationcosts, in addition to the favorable energy and laborcosts, helped us to be the low cost supplier down-

stream in the marketplace. Leggett & Platt and ourcustomers benefited tremendously from this deal.31

The rod mill provided greater market leveragethan any previous acquisition. “That’s the bestpurchase that Leggett has ever made in its corpo-rate history,” said Ted Enloe, a company boardmember since 1969. “The scrap prices just wentthrough the roof, but the rod prices coming out ofthe mill increased even more. So the spread betweenscrap and rod was the greatest in history. … Itwas just incredible.”32

To meet its longstanding goal of 15 percent prof-itable growth per year, Leggett continued to expand


obviously we want to make the bestreturn on our investment.3

Dennis S. Park, senior vicepresident of Leggett & Platt andhead of Commercial Fixturing &Components, discussed the difficul-ties of implementing U.S. businessprocesses in some overseas facilities:

Oftentimes … you are going intoa company that really does not havea lot of formalized processes in place. They do nothave operating systems that allow you to properlytrack the activities the way that we, as a publiccompany, need to and want to for our sharehold-ers. So you have to be able to bridge the positionthat the company was operating under with wherewe know we need to take the company. … Wewant to do that in such a way that no one feelsthreatened by the additional amount of activ-ity, but they recognize the value in it.4

Wright provided a major reason why Leggettwould expand its Asian operations in the yearsto come:

We don’t believe that everything is going towind up in Asia. … We do think that there willprobably be more components that we’ll make inAsia over the next five years, and that’s not

because of the labor in our productor the pressure on the cost of our product, but it isthe pressure of our customer moving their productand the labor associated with it to a low-costlabor environment. … And we have to go withhim if we’re going to still service the componentsthat go into the products.5

Whether in Carthage, Missouri, or in plantsnear Shanghai, Leggett maintains and extends itsethical corporate culture. According to Park:

Regardless of where we’re operating in theworld … the focus is on doing the right thing—being ethical, being focused on the customer,being focused on creating a safe work environ-ment, and making sure our employees aretreated like partners. … We find that those con-ditions exist [in Leggett’s operations] in all otherparts of the world.6

Dennis S. Park, senior vice president and head of Commercial Fixturing &Components, joined Leggett & Platt in1977. Over time, his roles at thecompany have included president ofHome Furniture Components andpresident of Home Furniture andConsumer Products.


domestic operations, acquire businesses, and ver-tically integrate production (as with the rod mill)and further internationalize its operations.

In 2002, the company owned three major pro-duction plants in China. Two of these facilities man-ufactured innerspring units for sale within thecountry. The third produced machinery and sourcedmachine parts. Leggett & Platt was also construct-ing a new plant, located in Jiaxing, to manufacturefurniture mechanisms.33

By the end of 2002, despite the continuing lack-luster economy, Leggett’s net sales had risen 3.8 per-cent to $4.3 billion, and net earnings had increased24.3 percent to $233.1 million. The company alsoraised its dividend to shareholders for the 32nd con-secutive year.34

Headed to New Heights

Refurbishments to the Sterling rod mill werecompleted by March 2003, and productionbegan. The facility operated profitably in its firstyear, supplied half of Leggett’s annual demand forsteel rod, and buffered the company from the esca-lating costs of rod that resulted from increasedworldwide demand and tight supply.35

The launch of the Iraq War on March 20, 2003,altered the economic and political environment ofthe time. The United States led a multinational coali-tion force into Iraq to topple the regime of SaddamHussein. This significant war in the Middle East,however, had limited effects on the continued expan-sion of Leggett & Platt’s businesses in Asia.

The company added several facilities in China.Early in the year, it completed the construction of itsnew furniture mechanisms plant in Jiaxing and pur-chased the assets and machinery of a local supplier.In June, Leggett acquired the Guangzhou Veihe facil-ities, which manufactured small electric motors usedmainly in automobile seat lumbar systems, and inOctober, the company acquired Pangeo Industries inChangsha, which produced automobile cable, alsofor seat lumbar systems. By the end of the year,Leggett operated eight Chinese facilities.36

At home and abroad, the company purchaseda total of 15 businesses in 2003.37 One of these, RHCSpacemaster, was the fourth-largest acquisitionin Leggett’s history. Before RHC declared bankruptcyearly in 2003, it ranked as one of the top five storefixtures manufacturers, serving widely recognizedcustomers such as Sears, Wal-Mart, Target, andJCPenney. The company’s financial difficultiesresulted largely from an 80-percent reduction in storeopenings by its largest customer and from the bank-ruptcy of Kmart, another major customer. Other fac-tors such as the slower retail environment, excesscapacity in the industry, and higher steel tariffs alsoreduced RHC’s revenues.38

Bill Weil, corporate controller for Leggett, recalledthe risks and challenges of the RHC acquisition:

We bought it cheap, but they had starved it forworking capital; we had to add a fair amount to getit going, which increased our cost of the acquisition.Then we closed a lot of their facilities. … It turnedout Spacemaster was really a mess, and it diverteda lot of our attention to get that acquisition inte-grated. … Time will tell if it’s a good deal for us.It did give us some pretty good customers.39

In the press release announcing the RHC acqui-sition, Leggett & Platt acknowledged the financialdifficulties facing fixtures manufacturers, butaffirmed the soundness of its own financial posi-tion and remained confident concerning its futurein the fixture and display business:

138

Through its Saint Paul Metalcraft division in Michigan, a makerof zinc and aluminum die castings, Leggett & Platt producedcomponents for Arctic Cat.


The bankruptcy of RHC provides further evidenceof the store fixture industry’s continuing financialstruggles. Due to a lackluster economy and uncertainconsumer sentiment, retailers have been postponingboth new store openings and existing store refurbish-ments for almost three years. This depresseddemand is taking its toll on the industry. In the pasttwo years, four of the top 10 manufacturers …declared bankruptcy.

In contrast, Leggett’s financial position is notablysound, and the company is well situated to benefitfrom the eventual increase in store fixture demand.Leggett expects that, once the economy turns, therecovery in fixture demand should be robust. Small,thinly capitalized, or inexperienced manufacturersmay not be able to respond to the rapid rise indemand. Leggett’s financial stability, breadth ofoperations, economies of scale, project managementskills, and broad product offerings position the com-pany to respond quickly to, and capitalize signifi-cantly on, the eventual economic recovery.40

Although Leggett & Platt was confident of itsfuture in fixtures and displays, the company recog-nized the need to improve operating efficiencies andmargins in this strategic area of business. Leggett hadacquired 30 fixtures companies between 1996 and2000 and was attempting to mold them into a cohe-sive, well-coordinated group. While decreased mar-ket demand was certainly part of the reason for theirunimproved profitability, the company expectedbetter performance from these operations.41

In the third quarter of 2003, Leggett announceda focused management effort to improve the fix-ture and display operations. The company expectedgreater efficiencies, better adherence to standardcosts, tighter inventory control, and enhancedstaff skills.42

At the end of 2003, Leggett reported record salesof $4.39 billion and a substantial increase of cash flowto $444 million. Earnings, however, declined 11.6 per-cent to $206 million.43 This was the result of higherenergy prices—natural gas prices rose 80 percent—and a weaker U.S. dollar.

Roaring Back

The year 2004 was a highly successful year forLeggett & Platt. Net sales increased 16 percent to$5.1 billion. Net earnings rose an impressive 38 per-cent to $285 million. Investors were heartened bythe company’s robust 12-percent internal salesgrowth and by its ability to pass on higher rawmaterial costs to a loyal customer base. As a result,the price of company stock climbed 31 percent dur-ing the year, and in December, shares traded at anall-time high of $30.68.44

Leggett generated more cash than it needed tofund internal growth, acquisitions, and dividends.It maintained a strong balance sheet, further reducedits debt, and increased dividends by 7 percent.45

These accomplishments were achieved despitenumerous challenges, in particular, the unsettlingturbulence in the global steel industry. Leggett &Platt’s steel expense increased more than $200 mil-lion over the amount it paid in 2003. This was a sig-nificant concern as the company now used roughly1.3 million tons of steel annually, accounting for

In 2003, Leggett & Platt made the fourth-largest acquisition inits history with the purchase of a major store fixturecompetitor, RHC Spacemaster. Although the purchase wasmade at a time when this industry sector was plagued by areduction in retail store openings and the bankruptcy of one ofRHC’s major retail clients, the acquisition significantlyenhanced Leggett & Platt’s existing store fixture manufacturingbusiness.


approximately 17 percent of the total cost of goodssold at that time.46

The rapid increase of steel prices again confirmedthat the Sterling rod mill had been a wise investment.Because of its success, Leggett planned to expand themill’s production by 20 percent in 2005.47

The company acquired nine businesses in 2004.These enlarged the Residential Furnishings, Com-mercial Fixturing & Components, and SpecializedProducts segments. Leggett also finalized an agree-ment with the world’s largest manufacturer of enginesfor outdoor power equipment, Briggs & StrattonCorporation. Under the terms of the agreement,Leggett would construct a 140,000-square-foot die-casting facility to supply components to the Briggsassembly plant in Auburn, Alabama. The deal wasexpected to increase the Aluminum Products seg-ment’s annual revenue by $45 million.48

In the fall of 2004, members of Leggett & Platt’sexecutive team visited the New York Stock Exchange(NYSE) to ring the closing bell on September 13in celebration of the company’s 25th anniversaryon the exchange. When first listed in 1979, Leggett’sannual sales were $214 million, and earningswere just under $7 million. At that time, the stockclosed at a split-adjusted price of 46 cents pershare. In the 25 years since, the company’s sales,net earnings, dividends, and stock price hadexperienced compound annual growth rates of13 to 18 percent.49

The 2004 Annual Report included a series ofcolorful, entertaining pictures identifying Leggett &Platt components in many recognizable, everyday

products present in most American homes andbusinesses. Though Leggett & Platt is part of thedaily life of millions of people, the company is gen-erally not the maker of the finished products, so,ironically, it is not a household name.

Ups and Downs

For Leggett & Platt, 2005 was a year of signifi-cant accomplishment. It achieved record sales of$5.3 billion, up 4.2 percent, and increased cashflow to $448 million. The company repurchased5 percent of its stock and raised shareholders’ div-idends for the 35th consecutive year.50

Leggett acquired 12 businesses, which wereexpected to yield $320 million in annual revenuecollectively. Two of the new acquisitions were inChina, bringing the company’s count of operat-ing facilities in that country to 11.51

The most substantial acquisition of the year andthe third-largest in Leggett & Platt’s history wasAmerica’s Body Company (ABC), with revenues of$150 million. ABC designed, manufactured, and dis-tributed equipment for light- and medium-dutycommercial trucks. Its products included racks, cab-inets, and shelves for van interiors, as well as autobodies for cargo vans, flatbed trucks, service trucks,and dump trucks. Leggett added ABC to its othervan interiors operations and formed the new com-mercial vehicle products group as part of theSpecialized Products segment. This establishedLeggett as the second-largest supplier in the $1.5 bil-lion truck equipment market.52

Two additional large acquisitions in 2005 wereIkex, Inc., and Jarex Distribution, LLC, whosecombined revenues totaled $65 million. These com-panies enhanced Leggett’s production and distribu-tion of geotextiles, silt fencing, erosion control, and

140

In September 2004, Felix E. Wright, chairman and CEO, rangthe closing bell at the NYSE, commemorating Leggett &Platt’s 25th year of being listed on the exchange. Pictured are(front row, left to right): Marcia Cooper, Bonnie Young, NYSEPresident and Co-CEO Robert Britz, Felix Wright, DavidHaffner, and Dan Hebert. (Back row, left to right): RussFugate, Susan McCoy, Jack Crusa, Bob Griffin, Karl Glassman,David DeSonier, and Matt Flanigan.


FOR YEARS, LEGGETT & PLATT HAS GIVEN BACK TO

the communities of Carthage and its neigh-boring cities.

In 1997, the company contributed to theconstruction of the Leggett & Platt Athletic Cen-ter at Missouri Southern State University (MSSU)in Joplin.1 The university serves many peoplefrom the community, as well as students fromoutlying areas. In addition, Leggett & Platt reg-ularly recruits people from MSSU and has morethan 150 of its graduates employed around thecountry. Over the years, many Leggett & Plattemployees—including the current CEO David S.

Haffner—have served on committees and advisoryboards at the university.2

In 2006, Leggett donated its former NationalTechnical Center building to the Carthage CrisisCenter, which provides food and shelter to home-less individuals and assists them in finding jobs.3

Also in 2006, construction began on the newMcCune-Brooks Hospital in southwest Carthage.4

Since Leggett & Platt made a generous financialpledge to this healthcare foundation, the hospital’sWellness Center—where patients undergo physi-cal therapy and outpatient rehabilitation—hasbeen named after the company.

COMMUNITY OUTREACH

In recent years, Leggett & Platt madesignificant contributions to a new athleticcenter for MSSU (above) and the newMcCune-Brooks Hospital in Carthage(left). The company also donated afacility to the Carthage Crisis Center(upper left).


soil stabilization products for theconstruction, landscaping, and agri-cultural markets.53

That year, the company completed the improve-ments to the Sterling rod mill, increasing its capacityby 20 percent. This expansion enabled Leggett to pro-duce more than 500,000 tons per year and tointernally supply a greater percentage of thesteel rod used by its operations.54

In contrast to the many achievements of 2005,Leggett’s leaders expressed disappointment with an11.9-percent decrease in net earnings, resultingmainly from the expenses of a formal restructuringplan launched in September.55 The plan focused onimproving several operations and reducing excessplant capacity. Previously, Leggett intentionallymaintained the excess capacity, expecting marketdemand to rebound to the high levels of the late1990s, but it had not, so the company identified 36underperforming or underutilized facilities for clo-sure or consolidation.56

The company also expressed disappointmentwith the unimproved profit margins in the fixtureand display operations, and with the decreased priceof company stock. Though the price was improvingby the end of the year, it had not regained the recordhigh level of 2005.

Karl Glassman discussed the company’s slowedgrowth during this time period and explained thatfuture acquisitions would be more closely evaluatedfor long-term viability:

A lot of it [the slowed growth] is a by-product ofour significant market share in some of our matureindustries, a growing sophistication on the part ofour customers and our customers’ customers. The

consolidation of our customers hasmade it more difficult for us in many cases to makethe profits that we used to. Include external forceslike Chinese imports and an increasing U.S. costbase, and we have to take a world view as opposedto a North American manufacturer view. So it’s allbecome very complex, and the rate of change isprobably quicker. …

Today, it’s a different set of circumstances.There are competitive forces that we haven’t yetfully understood. So the shift is important. Wehave been historically a collector of businesses.If it was bedding and furniture related, then weneeded to be in it. We have to shift away fromthat way of thinking, and we’re in the processof doing so.

We tended to be collectors—emotional collec-tors—of businesses, and while it’s not fair to saythat we’re not emotional, because we certainly are

142

Left and inset: TerraTex SD Non-woven Geotextile (inset) fromHanes Geo Components aids in the filtration of water inhighway edge drain applications, while TerraTex SD Woven

Geotextile (left) separates native soil frompavement material to improve road stabilityand durability.

Below: The 2005 acquisition of America’s BodyCompany brought Leggett & Platt greatercapability in the fabrication of racks, cabinets,and shelves for van interiors.

human, we can’t afford to be as emotionally con-nected with things in the future as we have been inthe past. We have to do a true analysis of whatthe long-term viability of a business unit is, threeto five years out. We used to know intuitively thatthey would be good, successful businesses be-cause we were in them.57

Innovation Redefined

In 2006, in another smooth leadership succes-sion, Felix Wright transferred the CEO’s responsibil-ity to David Haffner. Haffner became only the thirdchief executive in 46 years.58 The seamless successionsand continuity of leadership at Leggett’s senior levelare remarkable. Harry Cornell, Jr., served as pres-ident and then as CEO for nearly 40 years. His suc-cessor, Felix Wright, had been with the company for40 years when he became CEO in 1999, and DavidHaffner had worked with both these men for 23 yearswhen he succeeded Wright in 2006.

Wright remained chairman of the board, andHaffner, in addition to his new responsibilities, con-tinued as president. Karl Glassman became thechief operating officer and continued as executivevice president.

That year, Leggett & Platt closely examined itsoperations and revised its strategic plan for the future.The company targeted annual sales growth of 8 to 10percent. It also planned to increase its margin onearnings before interest and taxes (EBIT) from8.5 to 11 percent.59

To achieve its targeted growth, Leggett & Plattdevoted a greater percentage of its cash flow to finding


Leggett & Platt’s board of directors in 2005 included (standing,left to right) Karl Glassman; Raymond Bentele; Phoebe Wood;Ralph Clark; Richard Fisher; Ted Enloe, III; Felix Wright;Maurice Purnell, Jr.; David Haffner; and (seated) JosephMcClanathan; Harry Cornell, Jr.; and Judy Odom.


new profitable growth opportunities. Part of thisgrowth would result from a renewed emphasis onproduct development and technological advance-ment. “For the last few years, I’ve been of the opinionthat Leggett needed to strengthen its technical com-petency,” said David Haffner. “We’re very technicallycompetent, but as we go forward internationally, andas we find ways to differentiate ourselves from com-petitors and grow into businesses that we don’t cur-rently participate in, we’re going to need significant,additional technical competency.”60

Leggett created new executive positions devotedexclusively to growth and development. VincentLyons, an accomplished mechanical engineer, washired as vice president of engineering and technology

to coordinate and augment company-wide researchand development (R&D). Leggett also appointed abusiness development director for each segment. Thedirectors possessed substantial experience in merg-ers and acquisitions, as well as business develop-ment, and were commissioned to ensure profitablegrowth in their segments through both internalexpansion and external acquisitions.61

Concerning these new positions, David M.DeSonier, vice president of strategy and investorrelations, said:

We aren’t just pursuing revenue growth—wewant the profit that comes along with it. It’s prof-itable growth that we’re seeking. We are chang-ing—trying to put more effort into profitablegrowth—and that requires dedicating a few peo-ple solely toward that effort. While all of us areinvolved in the search for growth, everybody alsohas a full plate of other activities to manage, andoften long-term growth gets pushed aside for moreurgent priorities. The new team has the luxury ofdedicating 100 percent of its effort toward seekingprofitable growth.62

In June 2006, Leggett & Platt broke ground ona new research facility, the IDEA Center. IDEA standsfor Innovation, Design, Engineering, and Accelera-tion—the purposes of this R&D operation.63 In keep-ing with Leggett’s ongoing positive contributions tothe community, the company donated its previousresearch facility, the National Technical Center, to theCarthage Crisis Center. The 45,000-square-footbuilding was in excellent repair and greatly expandedthe Crisis Center’s ability to provide food, shelter,and other services to the disadvantaged.64

In the latter part of 2006, Leggett continuedto reinvigorate R&D efforts by conducting its firstannual “technology summit.” The company’s keymanagers from around the world gathered to brain-storm, share ideas, and develop plans. Leggett alsoformed an engineering council to evaluate innova-tive ideas and identify opportunities for synergythroughout its operations. In addition, the companypurchased knowledge management software toenhance collaboration and research.65

Vincent Lyons spoke of one of the changesin Leggett’s R&D—a renewed emphasis on theend consumer:

144

INVESTORRELATIONS

IN 1979, UPON THE DEPARTURE OF G. LOUIS

Allen, vice president and treasurer, Leggett &Platt initiated a formal investor relations pro-

gram. J. Richard “Rich” Calhoon (below left)began this endeavor and served as vice presi-dent of investor relations for more than 20 yearsuntil his retirement. David M. DeSonier (belowright) was hired in 2000 in preparation forCalhoon’s departure and has since led the com-pany’s investor relations efforts. DeSonier’s rolehas expanded over time to also include strategy,investments, and financial communications.1


We are concentrating on understanding—muchmore than ever before—our customers’ needs andeven the end consumers’ needs. Before, we did nottry to understand as much the end consumers’needs. We relied on our customers to tell us what theyneeded. We developed product to solve that, but werealized that it’s very important for us to better under-stand the needs of our end consumer, and from that,we are working on quite a few developments.66

As a result of examining its end mar-kets, Leggett & Platt developed one of themost innovative products ever introducedinto the bedding market: Semi-Fold®, theworld’s first folding box spring.

“What we found through research is, in theNortheast especially, because of the way houses aredesigned, you have a tough time getting a mattressupstairs,” said Lyons. “So [an inflexible] box springis almost impossible. Well, this will solve that need.When it’s folded up, it’s almost flat, and it’s mucheasier to manage. You can get it upstairs, and thenit’s very easy to fold out.” 67

Lyons also spoke of a new innovation strategycalled WIN 70/30. WIN stands for Worldwide Innova-tion Network, a Web page where anyone can submitproduct ideas to Leggett & Platt, and 70/30 describesthe company’s goal to generate 70 percent of newproduct ideas internally while receiving 30 percentfrom external sources. Lyons explained:

Anyone who is visiting the Leggett & Platt Web sitecan click on a link that will take them into our inno-vation Web site, where they can submit ideas to

us. … We will evaluate that idea. … They could be acustomer. They could be a supplier. They could havesome affiliation with Leggett & Platt, but it couldbe just anyone familiar with Leggett & Platt.

For all the people within Leggett & Platt with greatideas, this gives them an avenue to submit thoseideas, and we can evaluate them. It also provides anopportunity for external people [external to Leggett& Platt], to submit ideas to us, [which] we normallywould not think of because they may not be relatedto anything that we currently do today.

There will be a monetary reward for ideas [used],and … the [creators of the] top innovations through-out the year will be recognized as recipients of theJ. P. Leggett Innovators Award, and those awardswill be presented to the individuals on the eve of our[annual] technology forum. … The recipients of that

Left: In January 2007, Leggett & Platt started a new chapter inproduct development with the opening of the IDEA Center, whichserves as the company’s research and development headquarters.

Above: In 2006, Leggett & Platt embarked on a new productand technology development strategy. Leading the charge wasVincent Lyons (center), vice president of engineering andtechnology, flanked by Leggett & Platt’s five businessdevelopment directors (left to right): Joe Harris, residential;Steffan Sarkin, aluminum; David Brown, industrial; MitchDolloff, specialized; and Jay Thompson, commercial.


award will be inducted into our Inventors Hall ofFame. These innovative programs will continue tocreate excitement and bring out the creative juicesin all of our employees throughout the years.68

Ironically, though Lyons works daily to engineerbetter products such as sleep systems, sleep is thefarthest thing from his mind.

People ask me how I sleep at night, and I can’tsleep. There’s no time to sleep. It’s so much fun. It’ssuch a great opportunity to come to a companythat’s been successful for 125 years and to charta new path from an innovation and technologystandpoint. The opportunity to create is extremelyexciting, and we’re doing some things today thatwe have not done in the past.

“Innovation Redefined” is our new corporate logo,and it certainly represents what we’re doing froman innovation, product development standpoint.69

The End of an Era

In 2007, Felix Wright remained chairman of theboard, but reduced his involvement in the day-to-day business of the company. He began to serve asa consultant to senior management. When announc-ing the change in Wright’s daily activities, the com-pany discussed its succession practices:

At the most senior levels of the company, our man-agement has long believed that openly communi-cated succession plans promote understanding andteamwork and help avoid the divisive and unpro-

ductive jostling for position that can occur when itisn’t clear who will lead the organization.

Orderly succession, as we have tried to prac-tice it, also provides for continuing access to theexperience and institutional knowledge of for-mer leaders. That’s possible at [Leggett & Platt]because our retiring leaders have not dishon-ored themselves or the company—the opposite—they have done excellent work and helped selectand coach the next generation of leaders. By theirgood work and active support of the new lead-ers, they have retained our affection and earnedour continuing thanks.70

Keeping with the succession tradition, in Feb-ruary 2008, Felix Wright, chairman of the board, andHarry Cornell, Jr., chairman emeritus, announcedthat they would not be seeking reelection to theboard of directors that year. Leggett & Platt’s bylawsstated that directors must retire at age 72 unlessthey received a waiver. Since both men had exceededthe age limit, they decided not to request the waiver.In a Special-Edition Management Information

146

Far left: Leggett & Platt produces a wide range of racks andshelving for retail customers around the world. Along with much ofthe fixtures industry, the company has struggled to remainsatisfactorily profitable in this area of business.

Immediate left: Leggett & Platt is the recognized leader in carpetcushion and pad for hard and soft floor-covering materials, offeringrebond, premium, rubber, synthetic fiber, and laminate underlayment.

Below: Through its Parthenon Metal Works subsidiary, Leggett &Platt makes steel tubing that is used in many of its own furniturecomponent manufacturing processes.


The dots on this map indicate the breadth of Leggett & Platt’s worldwide manufacturing presence.

As of 2008, the company operated more than 250 facilities in 20 countries around the globe.


Bulletin, Cornell and Wright expressed their reason-ing behind the decision:

Hence, simply put, it is time for us to leavethe Board and for Leggett & Platt’s leaders totake the company in new directions and to newheights. … We are grateful for the opportunity tohave served our partnership over all these yearsand are gratified with our company’s profitablegrowth and shareholder value. … As continu-ing major shareholders, you can be sure we are

as interested as ever in Leggett & Platt’s success,and we will continue to be available for counselwhenever needed.71

In a press release announcing the decision,David Haffner commented:

Together, Harry and Felix have served Leggett &Platt for 107 years. To a large degree, though theywould be reluctant to take the credit, they have beenthe architects of our company’s success and growthover the last five decades. Their legacy of partner-ship and teamwork, as both employees and boardmembers, characterizes well the culture of our com-pany. They will be greatly missed.72

The board of directors’ nominating committeerecommended the election of Richard T. Fisher asan independent chair. Fisher had served on Leggett’sboard for 36 years, having first been elected in 1972.“We are excited to have an individual of Mr. Fisher’scaliber become Leggett’s next chairman,” said FelixWright. “A seasoned board member, Richard hasserved as our Presiding Director since 2003. He hasperformed admirably, and we have high expecta-tions of what he will accomplish as he leads ourboard of directors.”73

Divest and Acquire

Reflecting the renewed focus on profitability,Leggett & Platt sold its Prime Foam business in thefirst quarter of 2007. Prime Foam chiefly producedcommodity foam cushioning for upholstered furni-ture and bedding manufacturers. The businessgenerated nearly $200 million in revenues in 2006and ranked as the largest divestiture in companyhistory, but it represented only a portion of Leggett’sfoam operations. (The company retained the foamoperations that manufactured carpet padding.)74

David Haffner said:

This divestiture is consistent with our previouslystated intention to actively manage our portfolio ofbusinesses. We will continually evaluate the strategyand competitive positions of our individual busi-nesses, and plan to participate only in markets inwhich we can be a market leader and generatean attractive cash-flow return on investment. The

148

SUPPLIER OFTHE YEAR

FURNITURE TODAY, A WEEKLY JOURNAL PUBLICA-tion for the bedding and furniture indus-tries, honored Leggett & Platt by present-

ing the company with the Supplier of the Yearaward for 2007. The company received itsaward at the annual Furniture Today Lead-ership Conference in Florida that November.Furniture Today Executive Editor David Perrysaid, “While Leggett & Platt may not be a famil-iar name to consumers, it’s a well-known andhighly respected name in the trade, producingcomponents for sleep sets and upholsteredfurniture, as well as offering a full line of metalbeds in its Fashion Bed Group.”1

The award serves as a tribute to the hardwork of Leggett employees both in Carthage,Missouri, and around the world. “FurnitureToday is truly the premier publication servingthe furniture and bedding industry, so it’s cer-tainly focused on two of our key industries,”said Karl Glassman, Leggett & Platt executivevice president and chief operating officer. “We’recertainly honored to receive what truly is a pres-tigious award, and we view it as a testament toour many employees who are dedicated to serv-ing not only the manufacturer and retailer, butthe end consumer.”2


sale of the Prime Foam operations reflects this port-folio approach. Although the business is perform-ing well and has some opportunity for growth, ourmarket position is small, and the business is notstrategic to Leggett.75

Leggett & Platt completed three sizeable acquisi-tions in 2007. On March 6, the company purchasedGamber–Johnson, LLC, of Stevens Point, Wisconsin,a leading designer and manufacturer of work surfacesand docking stations for computers, screens, printers,and communication equipment in service vehicles.Gamber–Johnson’s customers included local andstate police, the U.S. military, emergency medical ser-vices, utilities, telecommunications companies, andother mobile repair and service professionals.76

Gamber–Johnson joined the commercial vehicleproducts group of the Specialized Products segment.Leggett began to distribute Gamber–Johnson’s prod-

ucts through its fleet, ship-through, and upfittingoperations. Jack Crusa, senior vice president ofLeggett & Platt and head of the Specialized Productssegment, said:

The Gamber–Johnson acquisition extended ourreach for servicing the market for commercial vehiclefleets’ needs for functional interior components. Itadded a new product group and allowed us to toucha whole new base of customers, those demandingrugged vehicle installations for on-board computers.We were also very impressed with the managementteam, and a deciding factor was their willingness tostay on long term and continue to lead the businesswith the same level of enthusiasm. To date, we havebeen extremely pleased with this business.77

On March 23, Leggett & Platt acquired Nestaway,LLC, with facilities in Cleveland, Ohio; McKenzie,

IN OCTOBER 2007, FELIX E. WRIGHT WAS INDUCTED

into the American Furniture Hall of Fame(AFHF) in High Point, North Carolina. The AFHF

is an all-industry effort organized to honor thoseindividuals whose outstanding achievements havecontributed to the continued growth and develop-ment of the American furniture industry and toresearch, collect, and preserve the industry’s cul-tural, economic, and artistic history.1

Believing a person’s integrity to be his mostvaluable attribute, Wright ingrained the principleof business integrity into his management stylethroughout his long career at Leggett & Platt.Under his direction, the company has multi-plied its product offerings and expanded itsdistribution network.

At the induction ceremony, Wright spoke ofthe many challenges and changes the furnitureindustry has faced during his nearly 49 years

in the business. Although today’s markets aredifficult, Wright offered words of encouragementfor the future:

I believe that our industry still provides greatopportunities for servicing the home furnishingsmarket. Demand may ebb and flow with marketconditions, but it is not going to go away. We needgood business leaders committed to doing the rightthings ... [and] to develop[ing] the business strate-gies and business plans that can service a some-what different consumer … in a different marketenvironment. With every challenge there becomesa greater opportunity for somebody to survive anddevelop a company that is a shining star. I cer-tainly believe those opportunities are still here,and with honesty, integrity, impeccable customerservice, and products that meet our consumers’needs, success will certainly continue to be ours.2


Tennessee; Beaver Dam, Kentucky; and Clinton,North Carolina. Nestaway designed, produced, andsupplied complex coated wire forms. It primarilymanufactured residential dishwasher racks, or bas-kets, for major customers such as Maytag, GE,Bosch, Electrolux, and Whirlpool. Nestaway also pro-duced other coated and painted wire forms such asvending machine racks, golf cart baskets, and dryerracks. It became part of Leggett’sIndustrial Materials segment.78 “Thisacquisition presents Leggett & Plattwith significant cross-segment sell-ing opportunities,” said Joe Downes,senior vice president of Leggett &Platt and head of the IndustrialMaterials segment. “Nestaway alsoenables the Industrial Materials seg-ment to move further up the valuechain with our rod and wire.”79

On November 30, Leggett ac-quired a Chinese manufacturer ofoffice chair components, ChiengYeng. It was founded in Taiwan in1977, but relocated to China in 2002. The com-pany’s primary products were casters, glides, andaluminum and plastic chair components. Thesewere sold in China and exported to the United States,Japan, and Europe.80

Through Chieng Yeng, Leggett & Platt estab-lished a low-cost Chinese manufacturing plant foroffice chair components. Leggett’s U.S. customersoperating in China could now receive these prod-ucts from an in-country Leggett operation.

Looking Ahead …

The Prime Foam divestiture and the three size-able acquisitions in 2007 were constructive, well-executed moves for Leggett & Platt. However, thecompany’s growth, profitability, and performancefor its investors continued to be below expectationsfor the third year. In mid-2006, the company hadlaunched a series of internal strategy discussionsconcerning the company’s recent performance andits future direction.

In February, 2007, Leggett’s senior executivesand board of directors hired a premier strategy con-sulting firm to provide an independent, thoroughassessment of the company’s business units. Though

Leggett had recently completed the formal restructur-ing plan begun in 2005, David Haffner emphasizedthat the outcome of the strategic review would be

“broader in scope, more strategic innature, and more long-term orientedthan any of our previous activities.”81

In mid-November 2007, Leggett& Platt announced the outcome ofthe review and a dramatic alterationof its strategy. Commenting on thechanges, David Haffner said:

We are making significant,necessary changes to the way weassess our portfolio of businessesand how we manage our assetbase. We intend to be better stew-ards of shareholders’ capital, gen-

erate significantly more free cash, and return alarger amount of that cash to our investors. Ourshareholder returns have suffered for the past fewyears, as part of our portfolio has dragged us down.We are correcting that by divesting several of our busi-nesses. These are tough decisions we don’t makelightly because they affect many of our employee–partners; however, these actions are required tobring about a stronger, better performing, and morefocused Leggett & Platt.82

The company’s new, primary objective was toincrease total shareholder return (TSR), the total bene-fit an investor receives from owning a share of stock.Revenue growth, previously Leggett’s primary aim,was now only one method of improving TSR. To rein-force the importance of TSR to its executives andmanagers, the company modified annual bonus cal-culations to include a return on assets component.83

Leggett & Platt decided to view its business unitsas a portfolio, arranging them in four categories—Grow, Core, Fix, and Divest—based on their compet-itive advantages, strategic positions, and financialhealth. To aid in the regular assessment of a businessunit’s category, rigorous strategic planning processeswould be implemented across the company.84

150

A dishwasher rack manufactured at Leggett & Platt’s Nestawayfacility in Clinton, North Carolina.


1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Phoebe A. WoodJoseph W. McClanathan

Judy C. OdomMichael A. Glauber

Karl G. GlassmanRalph W. ClarkAlice L. Walton

Duane W. PotterThomas A. Hays

Bob L. GaddyDavid S. Haffner

Raymond F. BenteleRobert A. Jefferies, Jr.

Alexander M. LevineMaurice E. Purnell, Jr.

Jack B. MorrisNoah Liff

Richard L. PearsallRalph V. Johnson

Felix E. WrightEdwin C. Sandham

E. F. HookerRichard T. Fisher

Donald V. LongR. Ted Enloe, IIIJames F. Bryan

James C. McCormickFrank E. Ford, Jr.

Marjorie A. (Leggett) CornellHerbert C. Casteel

George S. Beimdiek, Jr.Frank B. Williams, Jr.Harry M. Cornell, Jr.

C. Glenn JoyceW. E. Carter

C. E. (Jack) PlattEdward B. Casey

W. A. DrakeGeorge E. Phelps

Harry M. Cornell, Sr.John E. O’Keefe

George S. Beimdiek, Sr.Frank B. Williams, Sr.Joseph P. Leggett (II)

William S. BrownJohn A. McMillan

Walter W. HubbardRaymond F. Leggett

George D. LeggettJ. P. Newell

W. E. HallM. J. McClurgRobert Ornduff

William K. CaffeeCornelius B. PlattJoseph P. Leggett

BOARD OF DIRECTORS TIMELINE1901 TO PRESENT

*Currently serving, as of June 2008

*

*

*

*

**

***

*


Businesses assigned to the Grow category wereexpected to capitalize on competitive market positionsand emphasize proprietary product development,and were allocated appropriate financial resources.Core businesses were expected to enhance produc-tivity, maintain market share, and generate free cashflow with only minimal future capital investment.Businesses assigned to the Fix category were givena limited period of time to improve performance, orthey would be moved to the Divest category.85

Leggett & Platt planned to divest its entireAluminum Products segment and six additionalbusiness units. To remain in the company’s port-folio, business units needed to generate after-taxreturns on assets greater than the company’s cost ofcapital. Those not meeting or exceeding the requiredlevel of returns would be transferred to the Fix orDivest categories.86

The company expected the new strategy to fur-ther bolster one of its longtime strengths, a healthyfree cash flow level. To return more of that cashto shareholders, in November 2007, Leggett increasedthe annual dividend 39 percent to $1 per share. Thecompany also intended to repurchase a significantamount of its stock.87

Given the considerable task of implementingthe new strategic plan, management expected mini-mal sales growth for the next two years. Over thelong term, with growth efforts focused on a narrowerset of higher quality opportunities, the companyanticipated collective revenue growth of 4 to 5 percent

152

This aerial photo shows Leggett & Platt’s corporate offices nearCarthage, where approximately 600 people work.


per year. Leggett would acquire fewer businesses, butwould continue to look for opportunities to enter new,higher-growth businesses that meet strict criteria.88

Through the expected 4 to 5 percent revenuegrowth, the higher dividend to shareholders, and thecommitment to repurchase shares, the companyanticipated annual TSR of 12 to 15 percent overthe long term. By comparison, the average TSR ofthe S&P 500 for the next five years was expected tobe around 10 percent. In a press release outliningLeggett’s future strategy, David Haffner concluded:

Our shareholders deserve the benefits thatwe expect will result from these actions. Longerterm, I’m convinced we will reestablish Leggett &Platt as a growing and substantially more prof-itable enterprise, a company that consistently gen-erates above-average total shareholder return.The current management team is absolutely ded-icated to rapid implementation and precise execu-tion on this change in strategy and focus.89

The dramatic changes within the company’sstrategy reflect Leggett & Platt’s commitment to a suc-cessful future for shareholders and employee–part-

ners. The company’s willingness to redefine itself andadapt to inconsistent economic and business envi-ronments has been a critical reason for its contin-uation and success for 125 years. It has demon-strated the resilience and flexibility to survive wars,fires, the Great Depression, and numerous reces-sions, successfully meeting the challenges of fiercecompetition and changing markets.

Throughout the company’s history, however,some aspects have remained consistent. Leggett hasremained steadfastly committed to honest, ethicalbusiness practices, building itself on a foundation ofhard work, ingenuity, and teamwork. The companystrives to treat its employee–partners with fairnessand respect, and it seeks the best interests of itsshareholders. Leggett & Platt’s leaders have alsobeen diligent in preparing their successors andsmoothly transferring responsibilities, ensuring thatthe company maintains the requisite talent and man-agement required to meet continuing challenges.

Leggett & Platt’s ability to adapt to new marketsand economic dynamics, yet remain constant in thevalue it places on people and management practices,seems to be the very characteristic that will ensurethe company’s future success.

ACQUISITION HISTORY*

1960 – 2007SPRINGS & BOX SPRINGS (55 DEALS)

Company Year CountryOklahoma City 1963 U.S.A.Englander Co. 1965 U.S.A.Flex-O-Loc Corp. 1968 U.S.A.Kenyon Manufacturing Co. 1968 U.S.A.Motor City Spring Co. 1968 U.S.A.Butler Manufacturing 1969 U.S.A.Dalpak Corp. 1969 U.S.A.J.R. Greeno Corp. 1969 U.S.A.Globe Spring & Cushion Co. (50%)1977 CanadaDe Lamar Bed Spring Corp. 1979 U.S.A.Missouri Fabricators, Inc. 1980 U.S.A.Pride Box Spring 1982 U.S.A.Nachman Corp. 1983 U.S.A.Kay Springs, Inc. 1985 U.S.A.Red Springs 1985 U.S.A.Karr Manufacturing 1987 U.S.A.Multilastic Limited 1987 U.K.Dream Makers, Inc. 1988 U.S.A.International Spring Corp. 1988 U.S.A.Hoover Group 1989 U.S.A.Webster Spring Co., Inc. 1989 U.S.A.Olympic Spring 1992 U.S.A.Carriero (50%; 25% in 1996) 1993 MexicoMaxwell Spring 1993 U.S.A.Oxford Metal Products 1994 U.S.A.Hoover 1995 U.S.A.M&M 1995 GermanyMississippi Spring 1995 U.S.A.Resortes Monterey 1995 MexicoChesterfield Wood Products 1996 U.S.A.Steadley 1996 U.S.A.Bilbao 1997 SpainFamily Frames 1997 U.S.A.Paris Spring 1997 CanadaTiffany 1997 MexicoAmerican Innerspring Co. 1998 U.S.A.Toledo Fjederindlaeg 1998 DenmarkOption Spring Products 1999 U.S.A.Spring Flex 1999 BrazilWellhouse Wire 1999 U.K.Heplast/Hespo 2000 CroatiaIlma Srl 2000 ItalyIndustrias Subinas 2000 SpainElson & Robbins 2002 U.K.Siddall & Hilton Products 2002 U.K.Ningbo 2003 ChinaSaval Spring & Wire 2003 U.S.A.Xiang Yang 2003 ChinaAskona 2004 RussiaVeneza Espumas 2005 BrazilZSP Wire Industries 2005 S. AfricaAtlas Spring Manufacturing 2006 U.S.A.Elson & Robbins Pocket Coil 2006 U.K.Probel Spring 2006 BrazilSamson Spring 2006 Australia

FABRIC CONVERTING (17 DEALS)

Company Year CountryTiffany Textile Co. (50%) 1979 U.S.A.Hanes Holding Co. 1993 U.S.A.VWR Textiles 1993 U.S.A.Lenrod 1997 CanadaMarsh Fern 1997 U.K.Yarborough 1997 U.S.A.Falcon Industries 1998 U.S.A.Western Textile Co. 1998 U.S.A.Jute Exports Limited 1999 U.K.Mount Hope Finishing 1999 U.S.A.Yarborough-Ind. Fabrics Div. 1999 U.S.A.Coinse SA de CV 2000 MexicoEdmund Bell & Co., Ltd. 2000 U.K.Synthetic Ind. F&B Converting 2001 U.S.A.Vitaweb Division of Vitafoam 2001 U.K.Union Wadding 2004 U.S.A.Sani-Line Sales 2005 U.S.A.

FIBERS (16 DEALS)

Company Year CountryKraft Converters 1972 U.S.A.Paramount Paper 1973 U.S.A.Quality Pad Co. 1981 U.S.A.National Fibers Division 1984 U.S.A.Steiner-Liff Textiles 1985 U.S.A.O’Neill Brothers 1986 U.S.A.Buffalo Batt & Felt Corp. 1988 U.S.A.Hobbs Pad 1991 U.S.A.Cameo Fibers 1996 U.S.A.Guilford Fibers 1997 U.S.A.Sealy Pad Line 1997 U.S.A.Cumulus Fibers 1998 U.S.A.Bonded Fiber Products 1999 U.S.A.KLM Industries 2001 U.S.A.Johnston Ind. Fiber Unit 2003 U.S.A.Stearns Technical Textile 2003 U.S.A.

FOAM (17 DEALS)

Company Year CountryPhillips-Foscue Corp. (92%) 1976 U.S.A.Crest-Foam Corp. 1986 U.S.A.Echota Cushion, Inc. 1986 U.S.A.MPI, Inc. 1986 U.S.A.Pacific Dunlop (L&P Foam) 1986 AustraliaCustom Foam Fabrication 1988 U.S.A.Hood Industries 1989 U.S.A.E-K Novelty 1995 U.S.A.Fairmont 1996 U.S.A.Hi Life Product 1997 U.S.A.Iredell Fibers 1997 U.S.A.Southwest Carpet Pad, Inc. 1999 U.S.A.General Foam –Durabond Plant 2000 U.S.A.Padco/Molded Urethane 2000 U.S.A.Foamex Rubber & Felt 2005 U.S.A.Mary Ann Industries 2005 U.S.A.Sponge Cushion, Inc. 2006 U.S.A.

WOOD PRODUCTS (7 DEALS)

Company Year CountryC.A. Bissman Manufacturing Co. 1961 U.S.A.Bois JLP 1984 CanadaNational Frame 1992 U.S.A.Bois Aise 1994 CanadaLes Bois Blanchet 1996 CanadaMiller Manufacturing 1997 U.S.A.Spruceland Forest Products, Inc. 1999 Canada

CONSUMER PRODUCTS (16 DEALS)

Company Year CountryMetal Bed Rail Company, Inc. 1972 U.S.A.Missouri Rolling Mill Corp. (MRM) 1979 U.S.A.St. Croix 1981 U.S.A.Bedline Manufacturing Co. 1983 U.S.A.Allegheny Steel & Brass 1988 U.S.A.Berkshire Furniture Co. 1988 U.S.A.Dresher, Inc. 1990 U.S.A.J.B. Ross Manufacturing 1990 U.S.A.Beauti-Glide 1991 U.S.A.Duro Metal 1991 U.S.A.Continental Silverline 1992 U.S.A.Harvard Manufacturing 1992 U.S.A.BC Products 1996 U.S.A.Western Bed Products 1997 U.S.A.STS Linens, Inc. 2004 U.S.A.Westex International 2005 Canada

COATED FABRICS (4 DEALS)

Company Year CountryVantage Industries 1994 U.S.A.Rug-Hold 2003 U.S.A.American Non-Slip 2005 U.S.A.Griptex Industries 2005 U.S.A.

FURNITURE HARDWARE & OTHER

FURNITURE PRODUCTS (23 DEALS)

Company Year CountrySignal Manufacturing Co. 1970 U.S.A.Middletown Manufacturing, Inc. 1973 U.S.A.Pontiac Furniture 1979 U.S.A.Foster Brothers 1982 U.S.A.C.S. O’Brien 1986 U.S.A.Stylelander 1993 U.S.A.Super Sagless Corporation 1994 U.S.A.Waterloo Furniture Components 1994 CanadaWiz Wire 1994 CanadaMatrex 1995 U.S.A.Bell Spring 1997 U.S.A.Ark-Ell Springs, Inc. 1999 U.S.A.Omega Motion LLC 1999 U.S.A.Superior Products 1999 U.S.A.Wyn Products 1999 AustraliaSouthern Bedding 2000 U.S.A.TechCraft Operations 2000 U.S.A.Jiaxing 2003 ChinaSackner 2003 U.S.A.

RESIDENTIAL SPECIALIZEDINDUSTRIALALUMINUMCOMMERCIAL

FURNITURE HARDWARE & OTHER

FURNITURE PRODUCTS (CONTINUED)

Company Year CountryEverwood Products 2005 U.S.A.Jinshajiang Sofa Components 2005 ChinaFulda 2007 ChinaKnitmasters JV 2007 U.S.A.

ADJUSTABLE BEDS (2 DEALS)

Company Year CountryMaxwell Products, Inc. 1999 U.S.A.Orthomatic Adjustable Beds 2003 U.S.A.

GEO COMPONENTS (4 DEALS)

Company Year CountryIkex/Jarex 2005 U.S.A.Webtec 2005 U.S.A.Attilla Enterprises 2006 U.S.A.Lone Star Products 2006 U.S.A.

FIXTURE & DISPLAY (33 DEALS)

Company Year CountrySEMCO 1994 U.S.A.Talbot Industries 1994 U.S.A.ISS 1995 U.S.A.Excell 1996 CanadaAmco 1997 U.S.A.Hodges 1997 U.S.A.PMI Purchase Mktg. 1997 CanadaRodgers-Wade 1997 U.S.A.Tarrant Interiors 1997 U.S.A.Wichita Wire 1997 U.S.A.American Woodworks 1998 U.S.A.Syndicate Systems 1998 U.S.A.Universal Stainless, Inc. 1998 U.S.A.Wilson Display 1998 CanadaArc Specialities 1999 U.S.A.Beeline Group, Inc. 1999 U.S.A.Dann Dee Display Fixtures 1999 U.S.A.De Todo en Alambre 1999 MexicoDesign Fabricators, Inc. 1999 U.S.A.Jarke Corporation 1999 U.S.A.Met Displays, Inc. 1999 U.S.A.Sensible Storage, Inc. 1999 U.S.A.Toledo Store Fixtures 1999 U.S.A.Zell Brothers, Inc. 1999 U.S.A.Dillmeier Group 2000 U.S.A.EDRON Store Fixtures 2000 U.S.A.Genesis Fixtures 2000 U.S.A.Gillis Associated Industries 2000 U.S.A.KelMax Equipment 2000 U.S.A.DisplayPlan, Ltd. 2001 U.K.MZM SA de CV 2001 MexicoRHC Spacemaster 2003 U.S.A.China Display Fixture Co. 2005 China

OFFICE FURNITURE COMPONENTS (14 DEALS)

Company Year CountryGordon Manufacturing Co. 1984 U.S.A.Northfield Metal Products, Ltd. 1985 CanadaCollier-Keyworth Corporation 1988 U.S.A.Indiana Chair Frame 1988 U.S.A.Warterloo Spring 1992 U.S.A.Faultless Doerner 1993 CanadaHamilton Wire 1993 CanadaNortheastern Components 1995 U.K.Davidson Plyforms 2001 U.S.A.Miotto International 2001 Italy

OFFICE FURNITURE COMPONENTS

(CONTINUED)

Company Year CountrySterling & Adams Bentwood, Inc. 2002 U.S.A.Hickory Springs/Hammer Metals 2004 U.S.A.Chieng-Yeng 2007 ChinaIntes JV 2007 China

PLASTICS (10 DEALS)

Company Year CountryFoothills Mfg. 1974 U.S.A.Futron Plastics (50%) 1979 U.S.A.Weber Plastics Co., Ltd. 1987 CanadaTechnical Plastics Corp. 1998 U.S.A.K.W. Precision Metal Products 1999 CanadaPulsar Plastics 1999 U.S.A.SCP Plastics 2003 U.S.A.Unique Molded Products 2003 U.S.A.Conestogo Plastics 2004 CanadaShepherd Products 2004 Canada

ALUMINUM (14 DEALS)

Company Year CountryEST 1972 U.S.A.MetalCraft 1979 U.S.A.Assured Castings 1987 U.S.A.Culp Smelting 1989 U.S.A.Latrobe 1996 U.S.A.Oconto 1996 U.S.A.Pace 1996 U.S.A.Cambridge Tool 1997 U.S.A.Die Cast Products 1997 U.S.A.B&C Die Cast 1998 U.S.A.Mo-Tech Corporation 1998 U.S.A.Saint Paul Metalcraft 1998 U.S.A.Product Technologies 2000 U.S.A.Saltillo, Mexico JV 2002 Mexico

WIRE & ROD (15 DEALS)

Company Year CountryAdcom Metals Company 1977 U.S.A.Webster Wire, Inc. 1989 U.S.A.Armco Wire partnership 1993 U.S.A.Laclede Oil Tempering Lines 1994 U.S.A.U.S. Wire Tie Systems 1994 U.S.A.A. J. Gerrard 1996 U.S.A.Belton 1997 U.S.A.Metrock Steel & Wire 1998 U.S.A.John Pring & Sons 1999 U.K.Laclede Mid America 2000 U.S.A.Shaped Wire, Inc. 2000 U.S.A.Insteel – Andrews 2002 U.S.A.North American Wire Products 2002 U.S.A.Northwestern Steel 2002 U.S.A.Nestaway 2007 U.S.A.

STEEL TUBING (3 DEALS)

Company Year CountryParthenon Metal 1983 U.S.A.Blazon 1993 U.S.A.Excaliber 2001 U.S.A.

COMMERCIAL VEHICLE

PRODUCTS (7 DEALS)

Company Year CountryMasterack 1972 U.S.A.Gor-Don 1995 CanadaCrown North America 2000 U.S.A.Team Fenex, Ltd. 2001 U.S.A.Tailgater, Inc. 2003 U.S.A.America's Body Company 2005 U.S.A.Gamber–Johnson 2007 U.S.A.

AUTOMOTIVE (15 DEALS)

Company Year CountryFlex-O-Lators 1988 U.S.A.No-Sag 1990 U.S.A.Young Spring & Wire 1990 U.S.A.Pullmaflex 1994 BelgiumPhoenix Metal 1997 U.S.A.Nagle Industries, Inc. 1999 U.S.A.Bergen Cable Technology, Inc. 2000 U.S.A.Schukra Group 2000 CanadaByTec, Inc. 2002 U.S.A.Guangzhou Veihe 2003 ChinaKwang Jin Co., Ltd. 2003 S. KoreaPangeo Cable Industries 2003 ChinaIdomrugo Kft. 2004 HungaryModern Industries 2004 U.S.A.Huaguang Parts 2005 China

MACHINERY (17 DEALS)

Company Year CountryCyclo-Index Corporation 1983 U.S.A.Gribetz International 1990 U.S.A.Alexander Machine 1992 U.S.A.Gribetz Threads 1993 U.S.A.WBSCO 1994 U.S.A.Gateway 1996 U.K.Pathe 1997 U.S.A.Porter 1997 U.S.A.Spühl 1997 SwitzerlandSteppex/Quiltex 1997 U.K.Syd-Ren 1997 U.S.A.Kaybe Machines 1998 U.S.A.Vertex Fasteners, Inc. 1998 U.S.A.Agimex S.A. 2000 FranceJentschmann AG 2000 SwitzerlandInnovatech International S.A. 2001 GreeceNahtec 2004 Germany

A P P E N D I X : A C Q U I S I T I O N H I S T O R Y 155

SUMMARY OF ACQUISITION TOTALS

1960s 1970s 1980s 1990s 2000s Total

• Residential 9 11 29 65 47 161• Commercial – 2 5 31 19 57• Aluminum – 2 2 8 2 14• Industrial – 1 2 8 7 18• Specialized – 1 2 18 18 39

Total 9 17 40 130 93 289

* This appendix reflects all significant acquisitions to the best of Leggett & Platt’s knowledge; may exclude some smaller acquisitions.

Chapter One

1. Leggett & Platt Spring Bedand ManufacturingCompany, “The Beds ofKings,” 1923, page 23.

2. Investor RelationsDepartment, Leggett & PlattFact Book (Leggett & Platt,Inc., 2006), pages I–14.

3. Ibid.4. Ibid., I–15.5. Ibid., BG–2.6. Ibid., BG–3.7. Ibid., BG–4.8. Ibid., BG–7.9. Ibid., BG–9.10. Ibid., BG–12.11. Ibid., BG–13.12. Ibid., BG–14.13. Ibid., BG–15.14. Lawrence Wright, Warm &

Snug … The History of theBed (Gloucestershire,England: SuttonPublishing, Ltd., 2004),page 31.

15. The Better Sleep Council,“The Bed in History,” 2007,http://www.bettersleep.org/.

16. Ibid.17. Ibid.18. The National Sleep

Foundation, “The Importanceof Sleep,” 2007, http://www.sleepfoundation.org/.

19. Ibid.20. United States Patent and

Trademark Office, Bed-Spring, Patent No. 319758,26 May 1885, http://www.uspto.gov/.

21. Ibid.22. “Obituary of Joseph Palmer

Leggett,” The CarthagePress, May 1921.

23. Ibid.24. “Obituary of Catherine T.

Platt,” Jasper CountyRecords and ResearchCenter, Missouri.

25. “The Story of Leggett andPlatt … The Main Springsof Rest,” 1950, page 3.

26. Carthage MissouriConvention and Visitor’sBureau, Through the Years … Carthage,Missouri, page 11.

27. Ibid.28. Ibid.29. “The Story of Leggett and

Platt … The Main Springsof Rest,” 3–4.

30. Harry M. Cornell, Jr.,telephone conversationwith Ron W. Marr, 11 January 2007.

31. “The Story of Leggett andPlatt … The Main Springsof Rest,” 3.

32. Ibid., 4.33. Ibid.34. United States Patent and

Trademark Office, SpringBed Bottom, Patent No. 553412, 21 January 1896, http://www.uspto.gov/.

35. United States Patent andTrademark Office,

NOTES TO SOURCES

NOTES TO SOURCES 157

Manufacture of SpringBottoms, Patent No. 611131,20 September 1897, http://www.uspto.gov/.

36. United States Patent andTrademark Office, Machinefor Attaching Bed-Springsto Cross-Wire Braces,Patent No. 611132,20 September 1898,http://www.uspto.gov/.

37. United States Patent andTrademark Office,Sectional Bed Bottom,Patent No. 656411,21 August 1900, http://www.uspto.gov/.

38. “The Story of Leggett andPlatt … The Main Springsof Rest,” 7.

39. Michele Hansford, Archivesof the Powers Museum(Carthage, Missouri).

40. Ibid.41. 1900 Carthage City

Directory, Archives of thePowers Museum (Carthage, Missouri).

42. “The Story of Leggett andPlatt … The Main Springsof Rest,” 7–8.

43. Ibid., 8.44. Ibid.

Chapter One Sidebar:Carthage, Missouri:The Maple Leaf City

1. Carthage MissouriConvention and Visitor’sBureau, Through the Years… Carthage, Missouri,page 5.

2. Ibid., 6.3. Ibid., 7.4. The Road Wanderer,

“Historic Carthage,Missouri,” http://www.theroadwanderer.net/.

5. Phyllis Rossiter, A Living History of the Ozarks(Pelican PublishingCompany, 2001), page 126.

6. Ron W. Marr, The Ozarks,An Explorer’s Guide(Countryman Press, 2006), page 169.

Chapter Two

1. Leggett & Platt Spring Bedand ManufacturingCompany, “The Beds ofKings,” 1923, page 2.

2. Ibid., 7. 3. Ibid., 1.4. Ibid., 9–22.5. Ibid., 23.6. Ibid., 7.7. Ibid., 8–20.8. Ibid., 6–7.9. “The Story of Leggett and

Platt … The Main Springsof Rest,” 1950, page 8.

10. Ibid.11. “C. B. Platt Dies Today in

St. Louis Hospital,” TheCarthage Press, 22 March1929, page 5.

12. “The Story of Leggett andPlatt ... The Main Springsof Rest,” 8.

13. “C. B. Platt Dies Today inSt. Louis Hospital,” 5.

14. “Obituary of JosephPalmer Leggett,” Harry M. Cornell, Jr., personalarchives.


16. Ibid., 10.17. Ibid.18. “C. B. Platt Dies Today in

St. Louis Hospital,” 5.19. “J. P. Leggett New Head,”

The Carthage Press,27 March 1929, page 1.

Chapter Two Sidebar: TheInventive Mind of J. P. Leggett

1. United States Patent andTrademark Office, BedSpring, Patent No. 318758,26 May 1885.

2. United States Patent andTrademark Office,Manufacture of SpringBottoms, Patent No. 611131,20 September 1898.

3. United States Patent andTrademark Office, Machinefor Attaching Bed Springs toCross-Wire Braces, Patent No.611132, 20 September 1898.

4. United States Patent andTrademark Office, SectionalBed Bottom, Patent No. 656411, 21 August 1900.

5. United States Patent andTrademark Office, SpringBed Bottoms, Patent No. 553412, 21 January 1896.

6. United States Patent andTrademark Office, Spring BedBottom, Patent No. 1089233,3 March 1914.

7. United States Patent andTrademark Office, Machinefor Bending and CuttingCoiled Springs, Patent No. 1094076, 21 April 1914.

8. United States Patent andTrademark Office, SpringBed Bottom andManufacture of the Same,Patent No. 1313902, 26 August 1919.

9. United States Patent andTrademark Office, TargetTrap, Patent No. 804143, 7 November 1905.

10. Harry M. Cornell, Jr.,interview by Jeffrey L.Rodengen, digital recording,22 November 2006, WriteStuff Enterprises, Inc.

11. United States Patent andTrademark Office, Carrierfor Target-Traps, Patent No. 852123, 30 April 1907.

12. United States Patent andTrademark Office, Lid forTea-Kettles, Patent No. 535252, 5 March 1895.

13. United States Patent andTrademark Office, EndlessNecktie, Patent No. 771163, 27 September1904.


Trademark Office, RailwayCar, Patent No. 1073429,16 September 1913.


Trademark Office, VehiclePropelling Mechanism,Patent No. 1093277,14 April 1914.


Trademark Office, Motor-Vehicle TransmissionSystem, Patent No. 1117582,17 November 1914.

20. United States Patent andTrademark Office,Automobile PropellingMechanism, Patent No. 1482017, 29 January1924.

Chapter Two Sidebar:An Emotional Farewell

1. John Hale, Sr., VicePresident for HumanResources, Leggett & Platt,Speech to the CarthageArea Chamber ofCommerce, 14 March 1983.

2. Ibid.3. Ibid.4. Ibid.

Chapter Three

1. “Missionaries’ LettersPraise Bed Springs ofLeggett & Platt Firm,” 10 August 1931.

2. M. J. McClurg, “Leggett &Platt Spring Bed andManufacturing Company,Board of Directors MeetingMinutes,” 18 December 1929.

3. “Missionaries’ Letters.”4. Ibid.5. Ibid.6. M. J. McClurg, “Leggett &

Platt Spring Bed andManufacturing Company,Board of Directors MeetingMinutes,” 18 August 1930.

7. M. J. McClurg, “Leggett &Platt Spring Bed andManufacturing Company,Board of Directors MeetingMinutes,” 19 July 1932.

8. Harry M. Cornell, Jr., notessupplied to publishinghouse, 2007.

9. “The Story of Leggett andPlatt … The Main Springsof Rest,” 1950, page 10.

10. National Association ofBedding Manufacturers,Bedding Manufacturer,November 1933.

11. International SleepProducts Association,“About ISPA,” http://www.sleepproducts.org/.


13. George S. Beimdiek, Sr.,Leggett & Platt, Inc.; “Boardof Directors MeetingMinutes,” 18 April 1935,page 2; Harry M. Cornell, Sr.,Leggett & Platt, Inc.; “Boardof Directors Special MeetingMinutes,” 23 April 1995.


15. Cornell, Jr., notes. 16. Ibid.17. George S. Beimdiek, Sr.,

“Letter to Stockholders,” 15 April 1937, Carthage,Missouri; Leggett and PlattSpring Bed andManufacturing Company,Annual Report, 31 December 1936, page 5.

18. Ibid., 1.19. “The Story of Leggett and

Platt ... The Main Springsof Rest,” 11.

20. George S. Beimdiek, Sr.,“Letter to Stockholders”;Leggett and Platt SpringBed and ManufacturingCompany, Annual Report,31 December 1936, page 1.

21. George S. Beimdiek, Sr.,“Letter to Stockholders,” 26 March 1938; Leggettand Platt Spring Bed andManufacturing Company,Annual Report, 31 December 1937, page 1.

22. George S. Beimdiek, Sr.,“Letter to Stockholders,”17 March 1939; Leggettand Platt Spring Bed and ManufacturingCompany, Annual Report,31 December 1938, page 1.

23. George E. Phelps, Leggett &Platt Spring Bed andManufacturing Company,“Board of Directors MeetingMinutes,” 19 February1938, page 1.

24. Ibid., 2. 25. “The Story of Leggett and

Platt ... The Main Springsof Rest,” 13.


NOTES TO SOURCES

26. George S. Beimdiek, Sr.,“Letter to Stockholders,” 28 February 1940; Leggettand Platt Spring Bed andManufacturing Company,Annual Report, 31 December 1939, page 1.

27. George S. Beimdiek, Sr.,“Letter to Stockholders,” 25 February 1941; Leggettand Platt Spring Bed andManufacturing Company,Annual Report, 31 December 1940, page 1.

28. Harry M. Cornell, Jr.,notes to publisher, 27 December 2006.

29. George S. Beimdiek, Sr.,“Letter to Stockholders,”12 May 1942; Leggett andPlatt Spring Bed andManufacturing Company,Annual Report, 31 December 1941, page 1.

30. Leggett & Platt, Inc.,Annual Report, 31 December 1942, cover.

31. George S. Beimdiek, Sr.,“Letter to Stockholders,”5 April 1943, Leggett &Platt, Inc., Annual Report,31 December 1942, page 1.


33. George S. Beimdiek, Sr.,“Letter to Stockholders,” 5 April 1943, Leggett &Platt, Inc., Annual Report,31 December 1942, page 1.

34. Ibid.35. George S. Beimdiek, Sr.,

“Letter to Stockholders,” 25 March 1945, Leggett &Platt, Inc., Annual Report,31 December 1944, page 1.

36. George S. Beimdiek, Sr.,“Letter to Stockholders,” 5 April 1944, Leggett &

Platt, Inc., Annual Report,31 December 1943, page 1.

37. “L&P’s Most SeniorPartner,” Leggett & PlattManagement InformationBulletin, January/February2000, page 3; George S.Beimdiek, Sr., “Letter toStockholders,” 5 April1944, Leggett & Platt, Inc.,Annual Report, 31 December 1943, page 1.

38. George S. Beimdiek, Sr.,“Letter to Stockholders,” 25 March 1945, Leggett &Platt, Inc., Annual Report,31 December 1944, page 1.

39. George S. Beimdiek, Sr.,“Letter to Stockholders,” 27 April 1946, Leggett &Platt, Inc., Annual Report,31 December 1945, page 1.

40. Ibid.41. Ibid.42. C. G. Joyce, Leggett & Platt,

Inc.; “Board of DirectorsMeeting Minutes,” 21 May1946, page 1.

43. C. G. Joyce, Leggett &Platt, Inc.; “Board ofDirectors MeetingMinutes,” 18 June 1946,page 1.

44. C. G. Joyce, Leggett &Platt, Inc.; “Board ofDirectors MeetingMinutes,” 19 March 1946,page 1.

45. George S. Beimdiek, Sr.,“Letter to Stockholders,” 23 March 1948, Leggett &Platt, Inc., Annual Report,31 December 1947, page 1.

46. Ibid.47. George S. Beimdiek, Sr.,

“Letter to Stockholders,” 11 April 1949, Leggett &Platt, Inc., Annual Report,31 December 1948, page 1.

48. Ibid.49. Ibid.50. “Labor Unions in the

United States,” Microsoft®

Encarta® OnlineEncyclopedia, 2007,http://encarta.msn.com/.

51. George S. Beimdiek, Sr.,“Letter to Stockholders,” 31 December 1951, Leggett& Platt, Inc., 1950 AnnualReport, page 1.

52. Ibid.53. “The Story of Leggett and

Platt ... The Main Springsof Rest,” 1950, page 15;Jack Crusa, interview byJeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.

54. George S. Beimdiek, Sr.,“Letter to Stockholders,”1951 Annual Report,Leggett & Platt, Inc., 31 December 1950, page 1.

55. George S. Beimdiek, Sr.,“Letter to Stockholders,” 10 April 1952, Leggett &Platt, Inc., Annual Report,31 December 1951, pages 1–2.

56. Ibid.57. Ibid.58. “Letter to the President of

the Senate and to theSpeaker of the HouseTransmitting Report of theNational Advisory Board onMobilization Policy,”President Harry S. Truman,22 June 1951, JohnWoolley and GerhardPeters, The AmericanPresidency Project [online].Santa Barbara, CA:University of California(hosted), Gerhard Peters(database), http://www.presidency.ucsb.edu/.

159

59. George S. Beimdiek, Sr.,“Letter to Stockholders,”Annual Report, 10 April1952, Leggett & Platt, Inc.,31 December 1951, pages 1–2.

60. Ibid.61. “Special Message to the

Congress on the SteelStrike,” President Harry S.Truman, 10 June 1952,John Woolley and GerhardPeters, The AmericanPresidency Project [online].Santa Barbara, CA:University of California(hosted), Gerhard Peters(database), http://www.presidency.ucsb.edu/.

62. George S. Beimdiek, Sr.,“Letter to Stockholders,”30 March 1953, Leggett &Platt, Inc., Annual Report, 31December 1952, pages 1–2.

63. Ibid.64. Ibid.65. Ibid.66. Ibid.67. C. G. Joyce, “Minutes of

Regular Directors Meeting,”16 December 1952, Leggett& Platt, Inc., page 2.

68. George S. Beimdiek, Sr.,“Letter to the Board ofDirectors,” 29 April 1953;Frank E. Ford, Jr.,“Minutes of DirectorsAdjourned Meeting,”Leggett & Platt, Inc., 29 April 1953.

Chapter Three Sidebar:George S. Beimdiek, Sr.

1. “George S. Beimdiek,Prominent CarthageBusiness Man, Dies at 86,”The Carthage Press,11 February 1963.

2. Ibid.3. Ibid.4. George E. Phelps, Leggett &

Platt Spring Bed andManufacturing Company,“Board of Directors MeetingMinutes,” 19 February1938, page 1.

5. Harry M. Cornell, Sr.,Leggett & Platt Spring Bedand ManufacturingCompany, “Minutes ofSpecial Meeting of Board ofDirectors,” 8 November1937.

6. Harry M. Cornell, Sr.,Leggett & Platt Spring Bedand ManufacturingCompany, “Minutes ofSpecial Meeting of Board ofDirectors,” 17 November1937.

7. George E. Phelps, Leggett &Platt Spring Bed andManufacturing Company,“Minutes of GeneralMeeting of Board ofDirectors,” 10 February1938, pages 1–8.

8. Harry M. Cornell, Sr.,Leggett & Platt Spring Bedand ManufacturingCompany, “Minutes of theAnnual Shareholders’Meeting,” 31 January1938.

9. “George S. Beimdiek,Prominent CarthageBusiness Man, Dies at 86.”

10. G. Stephen Beimdiek,grandson of George S.Beimdiek, Sr., son ofGeorge S. Beimdiek, Jr.,conversations with JohnHale, summer 2007.

11. “Well-known CarthageBusinessman Dies at 94,”The Carthage Press, 9 November 2007.

12. Harry M. Cornell, Sr.,Leggett & Platt, Inc.,“Minutes of DirectorsRegular Meeting,” 14 January 1959, page 2.

Chapter Four


2. Herbert C. Casteel, “Letterto Chairman/Directors ofLeggett & Platt,” 5 November 1991.

3. Leggett & Platt, Inc., “TheStory of Leggett and Platt... The Main Springs ofRest,” 1950, pages 19–22.

4. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 15 September and27 October 1953.

5. Harry M. Cornell, Sr.,“Letter to the Stockholders,”22 March 1954, Leggett &Platt, Inc., 1953 AnnualReport, pages 1–2.

6. Ibid.7. Ibid.8. Harry M. Cornell, Sr.,

“Letter to the Stockholders,”15 February 1956, Leggett& Platt, Inc., 1955 AnnualReport, pages 1–2.

9. Company AccountingRecords, 1956–1958,Leggett & Platt, Inc.

10. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 23 July 1957; 29 April 1958; 28 October 1959.

11. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 24 February 1959.

12. Frank E. Ford, Jr.,“Minutes of Directors


NOTES TO SOURCES

Regular Meeting,”25 September 1956.

13. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 21 January 1958.

14. Frank E. Ford, Jr., “Minutesof Directors Regular Meeting,”23 September 1958.

15. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 25 August 1959and 13 January 1960.



18. W. W. Hubbard, “Report of“Annual Shareholders’Meeting,” 16 January 1933;15 January 1934; 28 January 1935.

19. Frank E. Ford, Jr., “Minutesof Special DirectorsMeeting,” 7 February 1959.


21. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 29 April 1959.

22. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 27 May 1959.

23. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 23 June 1959.

24. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 25 August 1959.

25. Ibid.26. Harry M. Cornell, Jr.,

interviews with John Hale,summer 2007, Leggett &Platt, Inc.

27. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 28 October 1959.

28. “Interviews with John Hale.”29. Herb Casteel, interview by

Jeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.

30. “Interviews with John Hale.” 31. Ibid.32. Harry M. Cornell, Sr.,

“Letter to theStockholders,” 1958Annual Report, 10 April1959, Leggett & Platt, Inc.,page 21.


34. “Interviews with John Hale.” 35. Frank E. Ford, Jr., personal

letter to Harry M. Cornell,Jr., 6 March 2008.

36. Frank E. Ford, Jr., “Minutesof Directors Regular Meeting,”21 September 1960.

37. Ibid.38. Frank E. Ford, Jr., “Minutes

of Directors RegularMeeting,” 4 November 1960.

39. Frank E. Ford, Jr., “Minutesof Directors Regular Meeting,”28 December 1960.


41. Frank E. Ford, Jr., “Minutes of SpecialDirectors Meeting,”18 October 1960.

42. Bill Allen, interview byJeffrey L. Rodengen, digitalrecording, 22 November2006, Write StuffEnterprises, Inc.

43. “Results of Operations,”1962 Annual Report, Leggett& Platt, Inc.

44. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 27 April 1960.

45. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 23 June 1960.

46. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 4 November 1960.

47. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 7 July 1961.

48. Felix E. Wright, interviewby Jeffrey L. Rodengen,digital recording,21 November 2006, WriteStuff Enterprises, Inc.

49. Harry M. Cornell, Sr.,“Leggett to the Stockholders—The Year in Review, The Year Ahead,”1961 Annual Report, Leggett & Platt, Inc.


51. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 29 March 1963.

52. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 31 January and26 February 1963.



55. “Interviews with John Hale.”

56. Ibid.57. “Expansion and

Acquisition for FutureGrowth,” 1963 AnnualReport, Leggett & Platt, Inc.,pages 3–4.

58. “Expansion for Growth …Modernization forProfitability,” 1964 AnnualReport, Leggett & Platt, Inc.,page 3.

161

59. Harry M. Cornell, Jr., “ThePresident’s Message,” 1964Annual Report, Leggett &Platt, Inc., page 1.

60. Ibid., 2.61. Frank E. Ford, Jr., “Minutes

of Directors RegularMeeting,” 26 May 1961.

62. Frank E. Ford, Jr., “Minutesof Directors RegularMeeting,” 29 March 1963.

63. Ibid.64. Frank E. Ford, Jr., “Minutes

of Directors Regular Meeting,”26 February 1963.

65. Frank E. Ford, Jr., “Minutesof Directors Regular Meeting,”30 December 1964.

66. William E. Allen, “Minutes ofLeggett & Platt, IncorporatedDirectors Meeting,” 26 April1967, pages 8–9.

67. Harry M. Cornell, Sr., HarryM. Cornell, Jr., “Letter toOur Shareholders,” 1966Annual Report, Leggett &Platt, Inc.

68. William E. Allen, “Minutes ofLeggett & Platt, IncorporatedDirectors Meeting,”30 March 1967, pages 3–4.

69. Harry M. Cornell, Sr., HarryM. Cornell, Jr., “Letter toOur Shareholders,” 1967Annual Report, 29 March1968, Leggett & Platt, Inc.

70. Ibid.71. “1968 Review,” 1968 Annual

Report, Leggett & Platt, Inc.,page 5.

72. “1969 Review,” 1969 AnnualReport, Leggett & Platt, Inc.,page 6.

73. Ibid.74. Harry M. Cornell, Sr., Harry

M. Cornell, Jr., “Letter toOur Shareholders,” 1969Annual Report, Leggett &Platt, Inc., page 1.

75. 1969 Annual Report, Leggett& Platt, Inc.

76. “1969 Review,” 5.77. “1968 Review,” 5.

Chapter Four Sidebar:Harry M. Cornell, Sr.

1. Harry M. Cornell, Jr.,interview by Jeffrey L.Rodengen, digitalrecording, 22 November2006, Write StuffEnterprises, Inc.

2. Ibid.3. “The Story of Leggett and

Platt … The Main Springsof Rest,” 1950, page 16.

4. “Our Hundredth Year:1883–1983,” 1983, Leggett& Platt, Inc., page 16.

Chapter Four Sidebar:Harry M. Cornell, Jr.


2. Ibid.3. Frank E. Ford, Jr.,

“Minutes of DirectorsRegular Meeting,” 15 July1953.

4. Frank E. Ford, Jr.,“Minutes of DirectorsRegular Meeting,”23 February 1960.

5. Harry M. Cornell, Jr.,interview.

6. Howard Boothe, interviewby Jeffrey L. Rodengen,digital recording,21 November 2006, WriteStuff Enterprises, Inc.

7. Bill Allen, interview byJeffrey L. Rodengen, digital

recording, 22 November2006, Write StuffEnterprises, Inc.

Chapter Four Sidebar:Wired for the Future

1. “1969 Review,” 1969Annual Report, Leggett &Platt, Inc., page 5.


3. Ibid.4. Ibid.

Chapter Five

1. John Hale, interview byJeffrey L. Rodengen,digital recording,21 November 2006, WriteStuff Enterprises, Inc.

2. “A Look at the Future,”1970 Annual Report, Leggett& Platt, Inc., page 19.

3. Ibid.4. Ibid.5. “1970 Review,” 1970 Annual


6. “Products, Markets andMarketing,” 1972 AnnualReport, Leggett & Platt, Inc.,page 7.

7. Ibid.8. Ibid.9. Ibid.10. “1970 Review,” 9.11. Ibid.12. “A Look at the Future,” 19.13. “1971 Review,” 1971 Annual


14. Harry M. Cornell, Sr.,Harry M. Cornell, Jr., “To


NOTES TO SOURCES

Our Shareholders,” 1973Annual Report, Leggett &Platt, Inc., page 6.

15. “1971 Review,” 9.16. “Notes to Consolidated

Financial Statements,”1971 Annual Report,Leggett & Platt, Inc.,page 17.

17. “Earnings,” 1971 AnnualReport, Leggett & Platt, Inc.,page 10.

18. Harry M. Cornell, Sr., HarryM. Cornell, Jr., “To OurShareholders,” 1972 AnnualReport, Leggett & Platt, Inc.,page 5.

19. Ibid.20. “Organization,” 1971 Annual


21. Don LaFerla, interview byJeffrey L. Rodengen, digitalrecording, 22 November2006, Write StuffEnterprises, Inc.


23. Ibid.24. Harry M. Cornell, Sr., Harry

M. Cornell, Jr., “To OurShareholders,” 1973 AnnualReport, Leggett & Platt, Inc.,page 5.

25. Ibid., 5–6.26. Ibid., 6.27. Felix E. Wright, interview by

Jeffrey L. Rodengen, digitalrecording, 20 February2007, Write StuffEnterprises, Inc.

28. Thomas J. Wells, interviewby Jeffrey L. Rodengen,digital recording,6 February 2007, WriteStuff Enterprises, Inc.

29. Harry M. Cornell, Sr.,Harry M. Cornell, Jr., “ToOur Shareholders,” 1974Annual Report, Leggett &Platt, Inc., page 2.

30. Ibid.31. Ibid., 4.32. Ibid.33. Harry M. Cornell, Sr., Harry

M. Cornell, Jr., “To OurShareholders,” 1975 AnnualReport, Leggett & Platt, Inc.,page 3.

34. “Operating Highlights,” 1975Annual Report, Leggett &Platt, Inc., page 1.


36. Ibid., 3.37. Harry M. Cornell, Sr., Harry

M. Cornell, Jr., “From thePresident,” 1977 AnnualReport, Leggett & Platt, Inc.,page 3.

38. Ibid., 4.39. Ibid.40. Harry M. Cornell, Sr., Harry

M. Cornell, Jr., “From thePresident,” 1977 AnnualReport, Leggett & Platt, Inc.,page 5.

41. Ibid.42. “Keys to Internal Growth,”

1977 Annual Report,Leggett & Platt, Inc.,page 15.

43. Dennis Park, interview byJeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.

44. Harry M. Cornell, Sr., HarryM. Cornell, Jr., “From thePresident,” 1978 AnnualReport, Leggett & Platt, Inc.,page 4.

45. Felix E. Wright, “From theChief Operating Officer,”1978 Annual Report, Leggett& Platt, Inc., page 5.

46. Harry M. Cornell, Jr.,interview.

47. Robert A. Jefferies, interviewby Jeffrey L. Rodengen,digital recording,27 February 2007, WriteStuff Enterprises, Inc.

48. Harry M. Cornell, Sr.,Harry M. Cornell, Jr.,“From the President,”1977 Annual Report,Leggett & Platt, Inc.,page 5.

49. “From the Chief OperatingOfficer,” 5.

50. Ibid.51. “Notes to Consolidated

Financial Statements,”1978 Annual Report,Leggett & Platt, Inc.,page 24.

52. Harry M. Cornell, Sr., HarryM. Cornell, Jr., “From theChairman and the ChiefExecutive Officer,” 1978Annual Report, Leggett &Platt, Inc., page 4.


54. Karl Glassman, interview byJeffrey L. Rodengen, digitalrecording, 27 February2007, Write StuffEnterprises, Inc.

55. “From the Chairman and the Chief ExecutiveOfficer,” 2.


163

57. “Notes to ConsolidatedFinancial Statements,” 1979Annual Report, Leggett &Platt, Inc., page 24.

58. Ibid., 26.59. “Stock Market Data,”

1979 Annual Report,Leggett & Platt, Inc., page 17.

60. 1979 Annual Report,Leggett & Platt, Inc., insidefront cover.

61. “Corporate Strategy,” 1979Annual Report, Leggett &Platt, Inc., page 5.

Chapter Five Sidebar:Acquisition Strategy

1. “Our Hundredth Year,”1983, Leggett & Platt, Inc.,page 6.

2. Felix E. Wright, interview with John Hale,Summer 2007, Leggett &Platt, Inc.

3. Robert A. Jefferies, Jr.,interview by Jeffrey L.Rodengen, digital recording,27 February 2007, WriteStuff Enterprises, Inc.

4. Felix E. Wright, interviewwith John Hale.

Chapter Five Sidebar:Marketing with Wit and Wisdom

1. Frank E. Ford, Jr., “Minutes of DirectorsRegular Meeting,” 27October 1953, Leggett &Platt, Inc., page 1.

2. John A. Hale, HumanResources records, Leggett& Platt, Inc.

3. Robert A. Jefferies, Jr.,conversations with JohnHale, summer 2007,Leggett & Platt, Inc.

Chapter Six

1. “Our Hundredth Year,” 1983,Leggett & Platt, Inc., page 1.

2. “To Our Shareholders,”1980 Annual Report, 13 March 1981, Leggett &Platt, Inc., pages 2–4.

3. Ibid.4. Ibid.5. Robert A. Jefferies, Jr., memo

to corporate developmentand strategic planningcommittee, 23 December1980, Leggett & Platt, Inc.

6. Ibid.7. 1980 Annual Report, Leggett

& Platt, Inc., page 12.8. Felix E. Wright, “A Plan for

Growth,” 1981 AnnualReport, Leggett & Platt,Inc., page 8.

9. Ibid.10. Harry M. Cornell, Jr., Felix

E. Wright, “To OurShareholders,” 1981Annual Report, Leggett &Platt, Inc., page 4.

11. Ibid.12. Ibid.13. Karl Glassman, interview

by Jeffrey L. Rodengen,digital recording, 27 February 2007, WriteStuff Enterprises, Inc.

14. Ibid.15. “A Strategy for Growth,”

1982 Annual Report, Leggett& Platt, Inc., page 8.

16. Harry M. Cornell, Jr., FelixE. Wright, “To OurShareholders,” 1982 AnnualReport, 4 March 1983,Leggett & Platt, Inc., page 2.

17. Ibid.18. Ibid.19. “A Strategy for Growth,”

1982 Annual Report, Leggett& Platt, Inc., page 12.

20. “Our Hundredth Year,” 1.21. Harry M. Cornell, Jr., Felix

E. Wright, “To OurShareholders,” 1982 AnnualReport, 4 March 1983,Leggett & Platt, Inc., page 3.

22. Ibid., 4.23. “Beginning a Second

Century of Service,” 1983Annual Report, Leggett &Platt, Inc., page 11.

24. Ibid., 10–11.25. Ibid., 11.26. Ibid., 12.27. “Notes to Consolidated

Financial Statement,” 1983Annual Report, Leggett &Platt, Inc., page 28.


29. Ibid.30. “Beginning a Second

Century of Service,” 1983Annual Report, Leggett &Platt, Inc., page 12.


32. “Leggett & Platt SellsPackaging Division andComments on AnticipatedThird Quarter Earnings,”Leggett & Platt press release,1 October 1984, page 1.

33. Ibid.34. Ibid.35. Harry M. Cornell, Jr., Felix

E. Wright, “To OurShareholders,” 1984 AnnualReport, 4 March 1985,Leggett & Platt, Inc., page 5.

36. “Leggett & Platt Plans toAcquire Steiner-LiffTextile,” Leggett & Platt


NOTES TO SOURCES

press release, 1 August1984, page 1.

37. “Leggett & Platt DeclaresDividend Following AnnualMeeting,” Leggett & Plattpress release, 9 May 1985,page 1.

38. “Leggett & Platt Plans toAcquire Kay Springs, Inc.,Leggett & Platt press release,4 June 1985, page 1.

39. “Leggett & Platt Begins NewDiscussions with KaySprings,” Leggett & Plattpress release, 10 September1985, page 1.

40. “Leggett & Platt AcquiresAssets of Kay Springs,”Leggett & Platt pressrelease, 31 December1985, page 1.

41. Gary Krakauer, interviewby Jeffrey L. Rodengen,digital recording, 10 January 2007, WriteStuff Enterprises, Inc.

42. “Leggett & Platt AcquiresAssets of Kay Springs,”Leggett & Platt press release,31 December 1985, page 1.

43. Wayne R. Wickstrom,interview by Jeffrey L.Rodengen, digitalrecording, 12 January2007, Write StuffEnterprises, Inc.

44. “Leggett & Platt IncreasesCash Dividend and Declares3-for-2 Stock Split,” Leggett& Platt press release,12 February 1986, page 1.

45. Harry M. Cornell, Jr., FelixE. Wright, “To OurShareholders,” 1986 AnnualReport, 27 February 1987,Leggett & Platt, Inc., page 2.

46. Ibid.47. “Leggett & Platt in the

FORTUNE® 500,” Leggett &

Platt press release, 24 April1987, page 1.

48. Harry M. Cornell, Jr., Felix E. Wright, “To OurShareholders,” 1987 Annual Report, 29 February1988, Leggett & Platt, Inc.,page 2.

49. “The Leggett & PlattDifference,” 1988 AnnualReport, Leggett & Platt,Inc., page 4.

50. “Letter to Shareholders,” 12 February 1988, Leggett& Platt, Inc., pages 1–2.

51. Ibid.52. List of Closed Acquisitions,

Mergers & AcquisitionsDepartment, Leggett &Platt, Inc.

53. “Leggett & Platt PurchasesAssets of Culp Smelting &Refining,” Leggett & Plattpress release, 3 May 1989,page 1.

54. “Leggett & Platt Acquires Webster,” 19 April1989, Leggett & Platt, Inc.,page 1.

55. Sandy Levine, interview byJeffrey L. Rodengen, digitalrecording, 7 February2007, Write StuffEnterprises, Inc.

Chapter Six Sidebar:The Arrival of Mira-Coil™

1. Tom Wells, interview byJeffrey L. Rodengen, digitalrecording, 6 February2007, Write StuffEnterprises, Inc.

2. Ibid.3. Ibid.4. “The Company and the

Industry,” 1978 AnnualReport, Leggett & Platt,Inc., pages 8–9.

Chapter Six Sidebar:Exceptional Service

1. National Association of Bedding Manufacturers, Exceptional Service Award letter to Harry M. Cornell, Jr., 19 March 1983.

Chapter Six Sidebar:Cornell Conference Center

1. Commemorative Plaque,Cornell Conference CenterDedication, Leggett & Platt,Inc., 1991.

Chapter Six Sidebar:Together, Again

1. Robert A. Jefferies, Jr.,“Minutes of Board ofDirectors,” 10 August1988, Leggett & Platt, Inc.,page 4.

2. Harry M. Cornell, Jr.,interview with John Hale,Summer 2008, Leggett &Platt, Inc.

3. Jack D. Crusa, interviewby Jeffrey L. Rodengen,digital recording,21 November 2006, WriteStuff Enterprises, Inc.

Chapter Seven

1. Author unknown, framedquotation in the office ofHarry M. Cornell, Jr.,Leggett & Platt, Inc.

2. “Focused on Efficiency … A Commitment toExcellence,” 1990 AnnualReport, Leggett & Platt,Inc., page 9.

3. Ibid.4. Ibid.

165

5. “Leggett & Platt andDresher AnnounceAcquisition Plan,”20 March 1990, Leggett &Platt, Inc., page 1.

6. Ibid.7. “Leggett & Platt Acquires

No-Sag Operations,” 25 July 1990, Leggett &Platt, Inc., page 1.

8. “Take Cover!” ManagementInformation Bulletin, 22 February 1991, pages 1–2.

9. Ibid.10. “Leggett & Platt Anticipates

Lower Third QuarterEarnings,” 2 October 1990,Leggett & Platt, Inc., page 1.


12. Ibid.13. Ibid.14. “Focused on Efficiency … A

Commitment to Excellence,”1990 Annual Report,Leggett & Platt, Inc., page 7.

15. Harry M. Cornell, Jr., FelixE. Wright, “To OurShareholders,” 1991Annual Report, 5 March1992, Leggett & Platt, Inc.,page 2.

16. Paul Hauser, interview byJeffrey L. Rodengen, digitalrecording, 27 February 2007,Write Stuff Enterprises, Inc.


18. “Leggett & Platt Sells FourFoam Operations,” 1 July1991, Leggett & Platt, Inc.,page 1.


20. “A Recipe for Success,”Management InformationBulletin, 14 February 1992,Leggett & Platt, Inc., page 1.

21. “Innovation in Components… and Beyond,” 1991Annual Report, Leggett &Platt, Inc., page 7.

22. Marcus Malcolm, interviewby Jeffrey L. Rodengen,digital recording,11 January 2007, WriteStuff Enterprises, Inc.



“Letter to Shareholders,”15 June 1992.

26. “Partners in Progress,” 1992Annual Report, Leggett &Platt, Inc., page 5.

27. “Leggett & Platt AnnouncesProposed Acquisition,” 30 June 1993, Leggett &Platt, Inc., page 1.

28. Ibid.29. Ibid.30. “Leggett to Acquire Armco’s

50-Percent Interest in JointVenture,” 10 August 1993,Leggett & Platt, Inc., page 1.


E. Wright, “To OurShareholders,” 1993 AnnualReport, 28 February 1994,Leggett & Platt, Inc., page 5.

33. “Financial Highlights,” 1994Annual Report, Leggett &Platt, Inc., page 2.

34. “Products for Living,” 1994Annual Report, Leggett &Platt, Inc., page 11.

35. “A Conversation withHarry,” ManagementInformation Bulletin,January 1995, Leggett &Platt, Inc., page 7.

36. “Products for Living,” 11.37. Eloise Nash, interview by





41. “Creating Value ThroughEngineered Products,”1995 Annual Report,Leggett & Platt, Inc., page 6.

42. “Comments of Herbert C.Casteel,” Leggett & Platt,Inc., newsletter, SpecialPartners in Progress Edition,May 1995, pages 2–3.

43. Comments by Harry M.Cornell, Jr.; Partners inProgress DedicationPlaque, CorporateHeadquarters, May 1995.

44. “Stock Split and Increase inCash Dividend Announcedby Leggett & Platt,” 9 August 1995, Leggett &Platt, Inc., page 1.


NOTES TO SOURCES

45. Harry M. Cornell, Jr., Felix E. Wright, “To OurShareholders,” 1995Annual Report,29 February 1996, Leggett & Platt, Inc.,page 2.

46. “Management’s Discussionand Analysis of FinancialCondition and Results ofOperations,” 1995 AnnualReport, Leggett & Platt,Inc., page 20.

47. 1995 Annual Report,Leggett & Platt, Inc., cover.

48. Harry M. Cornell, Jr., Felix E. Wright, “To OurShareholders,” 1996Annual Report, 7 March 1997, Leggett & Platt, Inc.,page 2.

49. “Leggett to Acquire Armco’s50-Percent Interest inJoint Venture.”


51. “Expanding BusinessPlatforms, BalancedGrowth”; “Aluminum DieCastings,” 1996 AnnualReport, Leggett & Platt,Inc., page 11.

52. Ibid.53. Dan Hebert, interview by

Jeffrey L. Rodengen, digitalrecording, 10 January2007, Write StuffEnterprises, Inc.

54. Harry M. Cornell, Jr., FelixE. Wright, “To OurShareholders,” 7 March1997; 1996 AnnualReport, Leggett & Platt,Inc., page 3.

55. Ibid.56. “Leggett and Steadley

Sign Merger Agreement,”9 September 1996, Leggett & Platt, Inc.,page 1.

57. Duane Potter, interview byJeffrey L. Rodengen, digitalrecording, 20 February2007, Write StuffEnterprises, Inc.

58. Ernie Jett, interview byJeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.

59. Harry M. Cornell, Jr.,interview with John Hale,summer 2007, Leggett &Platt, Inc.

60. “Leggett and Steadley SignMerger Agreement.”


62. “Expanding BusinessPlatforms, BalancedGrowth;” “Aluminum DieCastings.”


E. Wright, “To OurShareholders,” 1997Annual Report, 9 March1998, Leggett & Platt, Inc.,page 2.

65. “Leggett AcquisitionProgram Continues,” 9January 1997, Leggett &Platt, Inc., page 1.

66. “Team, Product andCompany Growth,” 1997Annual Report, Leggett &Platt, Inc., page 5.

67. Ibid., 9.68. Ibid., 13.


70. Robert A. Jefferies, Jr.,Michael Glauber, interview by Jeffrey L.Rodengen, 27 February 2007, WriteStuff Enterprises, Inc.

71. “Expanding BusinessPlatforms, BalancedGrowth;” “LeadershipRecognition,” 1996 AnnualReport, Leggett & Platt,Inc., page 12.

72. Harry M. Cornell, Jr.,“Chairman’s SpecialMessage,” 1997 AnnualReport, Leggett & Platt,Inc., page 4.

73. Ibid.74. Ibid.75. John A. Hale, (as reported

to Write Stuff Enterprises,Inc.) summer 2008, Leggett& Platt, Inc.

76. “Notes to ConsolidatedFinancial Statements,”1998 Annual Report,Leggett & Platt, Inc., page 37.

77. Dennis Park, interview byJeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.


“Chairman’s SpecialMessage,” 1999 AnnualReport, Leggett & Platt,Inc., page 1.


167

81. Harry M. Cornell, Jr., FelixE. Wright, David S. Haffner,“To Our FellowShareholders,” 1999 AnnualReport, 28 February 2000,Leggett & Platt, Inc., page 5.

82. “Leggett Added to S&P500,” 1999 Annual Report,Leggett & Platt, Inc.,overlay sheet.

83. “Engineered Products,Manufacturing Solutions,”“Recognized Leadership,”1998 Annual Report,Leggett & Platt, Inc., page 8.

84. Leggett & Platt, Inc., e-mailmessage to editor andresearcher, 11 April 2007.

85. Harry M. Cornell, Jr., FelixE. Wright, David S. Haffner,“To Our FellowShareholders,” 1999 AnnualReport, Leggett & Platt, Inc.,page 4.

Chapter Seven Sidebar:Making a Fortune

1. 1985 Annual Report,Leggett & Platt, Inc.,overlay sheet.

2. Cable News Network,“FORTUNE® 500 1955–2006,”http://money.cnn.com/(accessed 3 May 2007).

3. Ibid.4. Time, Inc., “Fortune Corpo-

rate Reputation IndustryReports,” FORTUNE®

Datastore, http://www.timeinc.net/fortune/datastore/reputation/cr_report.html (accessed3 May 2007).

5. Felix Wright, interview byJeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.

6. Duane Potter, interview byJeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.


Chapter Seven Sidebar:Artistic Spirits

1. John Hale, “As Reported toWrite Stuff,” summer 2008,Leggett & Platt, Inc.

2. Management InformationBulletin, May 1995, Leggett& Platt, Inc., page 5.

Chapter Seven Sidebar:Felix E. Wright

1. Felix E. Wright, interviewwith John Hale, Summer2007, Leggett & Platt, Inc.

2. Ibid.3. Human Resources

Department EmploymentHistory of Felix E. Wright,Leggett & Platt, Inc.

4. Felix E. Wright, “From theChief Operating Officer,”1978 Annual Report,Leggett & Platt, Inc., page 5.

5. Human ResourcesDepartment EmploymentHistory of Felix E. Wright.

6. Felix Wright, Management InformationBulletin, “The L&P Culture,”May/June 1998.

7. Felix Wright, interview byJeffrey L. Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.

8. “The L&P Culture.”

Chapter Seven Sidebar:The Student Learner Program

1. “L&P Machine ProductsReceives 2000 MissouriIndustry of the YearAward,” Mid-AmericaCommerce and Industry, 1 August 2000,http://findarticles.com/p/articles/mi_qa3698/is_200008/ai_n8915626/.

2. National Career PathwaysNetwork, “Previous EWSLAWinners from 1995–2006,”http://www.cord.org/ewsla/previous-winners/.

3. David Rice, StudentLearner Program, summer2007, Leggett & Platt, Inc.

4. David Rice, StudentLearner Program data, asreported to David Ballew,summer 2007, Leggett &Platt, Inc.

Chapter Seven Sidebar:Cornell’s Closing Statement

1. Harry M. Cornell, Jr.,“Chairman’s SpecialMessage,” 1997 AnnualReport, Leggett & Platt,Inc., page 4.

Chapter Eight

1. David S. Haffner, interviewby Jeffrey L. Rodengen,digital recording,27 February 2007, WriteStuff Enterprises, Inc.

2. Business SegmentDescriptions, 2000 AnnualReport, Leggett & Platt,Inc., inside cover.

3. “Financial Highlights,” 2000Annual Report, Leggett &Platt, Inc., inside cover.


NOTES TO SOURCES

4. “Leggett Works,” 2000Annual Report, Leggett &Platt, Inc., inside cover.

5. Harry M. Cornell, Jr., FelixE. Wright, David S. Haffner,“Fellow Shareholders,”2000 Annual Report,27 February 2001, Leggett& Platt, Inc., page 2.

6. “Leggett & Platt ExpectsEarnings Decline DespiteStrong Sales Growth,”11 September 2000,Leggett & Platt, Inc., page 1.

7. “Fellow Shareholders.”8. “Leggett & Platt Announces

Performance ImprovementPlan and Stock RepurchaseAuthorization,”20 September 2000, Leggett& Platt, Inc., page 1.

9. Matthew J. Flanigan,interview by Jeffrey L.Rodengen, digitalrecording, 21 November2006, Write StuffEnterprises, Inc.

10. “Fellow Shareholders,” 3.11. Ibid., 2–4.12. Ibid., 3.13. Flanigan, interview.14. “Leggett Leadership,” 2001

Annual Report, Leggett &Platt, Inc., page 6.

15. “A Conversation withLeggett,” InternationalOpportunity, 2001 AnnualReport, Leggett & Platt,Inc., page 24.

16. Ibid.17. Ibid.18. Harry M. Cornell, Jr.,

Felix E. Wright, David S.Haffner, “To OurShareholders,” 2001Annual Report,25 February 2002, Leggett& Platt, Inc., page 3.

19. Ibid., 3–4.

20. “Leggett & Platt Announces2007 Results,” Leggett &Platt press release,24 January 2008, page 3.

21. Felix E. Wright, David S.Haffner, Karl G. Glassman,“To Our Shareholders,”2002 Annual Report,28 February 2003, Leggett& Platt, Inc., page 2.

22. Ibid., 3.23. Harry M. Cornell, Jr., Felix

E. Wright, David S.Haffner, “To OurShareholders,” 2001Annual Report,25 February 2002, Leggett& Platt, Inc., page 5.

24. The Sarbanes–Oxley ActCommunity Forum,“Introduction to Sarbanes-Oxley,” http://www.sarbanes-oxley-forum.com/(accessed 17 May 2007).


26. “Strategy—‘How Will We GetThere?’ ‘Sterling Rod Mill,’ ”2002 Annual Report, Leggett& Platt, Inc., page 11.

27. Felix Wright, interview byJeffrey L. Rodengen, digitalrecording, 20 February2007, Write StuffEnterprises, Inc.

28. Mike Glauber, interview byJeffrey L. Rodengen, digitalrecording, 27 February2007, Write StuffEnterprises, Inc.

29. Ibid.30. Ibid.31. Ibid.32. Ted Enloe, interview by

Jeffrey L. Rodengen, digital

recording, 20 February 2007,Write Stuff Enterprises, Inc.

33. “Opportunity—‘Where WillGrowth Come From?Asia/China,’ ” 2002 AnnualReport, Leggett & Platt,Inc., page 16.

34. Felix E. Wright, David S.Haffner, Karl G. Glassman,“To Our Shareholders,”2002 Annual Report, 28 February 2003, Leggett& Platt, Inc., page 2.


36. Ibid.37. Ibid.38. “Leggett Announces

Acquisition of RHCSpacemaster,” 10 July2003, Leggett & Platt, Inc.,page 1.

39. Bill Weil, interview byJeffrey L. Rodengen, digitalrecording, 22 November2006, Write StuffEnterprises, Inc.

40. “Leggett AnnouncesAcquisition of RHCSpacemaster.”


42. Ibid.43. Ibid., 4.44. Ibid., 11.45. Felix E. Wright, David S.

Haffner, Karl G. Glassman,“To Our Shareholders,”2004 Annual Report, 28 February 2005, Leggett& Platt, Inc., page 13.

169

46. “Management’s Discussionand Analysis of FinancialCondition and Results ofOperations,” 2004 AnnualReport, Leggett & Platt,Inc., page 23.


48. “Leggett & Platt to ProvideDie-Castings for Briggs &Stratton,” Leggett & Plattpress release, 27 September2004, page 1.



51. “Leggett Announces FiveAcquisitions,” Leggett &Platt press release, 12October 2005, pages 1–2.


53. Ibid., 27.54. Felix E. Wright, David S.

Haffner, Karl G. Glassman,“To Our Shareholders,”2005 Annual Report,28 February 2006, Leggett& Platt, Inc., page 5.

55. “Financial Highlights,” 2005Annual Report, Leggett &Platt, Inc., page 1.

56. “Management’s Discussionand Analysis of Financial

Condition and Results ofOperations,” ExecutiveOverview: Restructuring andAsset Impairments, 2005Annual Report, Leggett &Platt, Inc., page 26.

57. Karl Glassman, interviewby Jeffrey L. Rodengen,digital recording, 27 February 2007, WriteStuff Enterprises, Inc.


59. “The Road Ahead,” 2006Annual Report, Leggett &Platt, Inc., pages 2–9.

60. David S. Haffner, interviewby Jeffrey L. Rodengen,digital recording,27 February 2007, WriteStuff Enterprises, Inc.

61. “Where We Are Headed …What We Are Doing to GetThere,” 2006 AnnualReport, Leggett & Platt,Inc., pages 3 and 7.

62. Dave DeSonier, interviewby Jeffrey L. Rodengen,digital recording,21 November 2006, WriteStuff Enterprises, Inc.

63. Vincent Lyons, interviewby Jeffrey L. Rodengen,digital recording,27 February 2007, WriteStuff Enterprises, Inc.

64. Leggett & Platt, Inc., e-mailmessage to editor andresearcher, 8 March 2007.

65. “Leggett & Platt and InventionMachine Announce StrategicRelationship to AccelerateInnovation and ProductDevelopment,” 11 July 2007,Leggett & Platt, Inc.

66. Lyons, interview.67. Ibid.68. Ibid.69. Ibid.70. Management Information

Bulletin, 31 May 2007,Leggett & Platt, Inc., page 1.

71. “An Important Messagefrom Harry M. Cornell, Jr.,Felix E. Wright,” SpecialEdition ManagementInformation Bulletin, 20 February 2008, Leggett& Platt, Inc.

72. “Leggett & Platt AnnouncesShare RepurchaseAuthorization, BoardChanges, & QuarterlyDividend,” 21 February 2008,Leggett & Platt, Inc., page 1.

73. Ibid.74. “Leggett & Platt Announces

Divestiture of Prime FoamOperations,” Leggett & Plattpress release, 3 April 2007,page 1.

75. Ibid.76. “Growing the Partnership,”

March 2007, Issue 39,Leggett & Platt, Inc., page 1.

77. Jack Crusa, interview viae-mail with Crystal Hacker,29 November 2007, Leggett& Platt, Inc.

78. “Growing the Partnership,”April 2007, Issue 40,Leggett & Platt, Inc., page 1.

79. Joe Downes, interview withCrystal Hacker, Spring2008, Leggett & Platt, Inc.

80. Management Reports to theBoard of Directors, 1 August 2007, Russell J.Iorio, Leggett & Platt, Inc.,pages 6–10.

81. “Leggett Reports SecondQuarter EPS of $.33,”Leggett & Platt press release,19 July 2007.


NOTES TO SOURCES

82. “Leggett & Platt AnnouncesNew Strategy IncludingDivestitures and 39 PercentDividend Increase,” Leggett& Platt press release,13 November 2007.

83. Ibid.84. Ibid.85. Ibid.86. Ibid.87. Ibid.88. Ibid.89. Ibid.

Chapter Eight Sidebar:The Sterling Steel Mill

1. Joe Downes, senior vicepresident of Leggett & Plattand president of theIndustrial Materialssegment, discussions withJohn Hale and DavidBallew, summer 2007.

2. Ibid.3. Ibid.

Chapter Eight Sidebar:David S. Haffner

1. David S. Haffner, interviewby Jeffrey L. Rodengen,digital recording, 27 February 2007, WriteStuff Enterprises, Inc.

2. Ibid.3. Ibid.4. “Leadership Team,” 2001

Annual Report, Leggett &Platt, Inc., page 13.

5. “Board of Directors,”2006 Annual Report,Leggett & Platt, Inc., page 62.

6. Haffner, interview.7. Ibid.

Chapter Eight Sidebar:Oscar “Bud” Hougland

1. “L&P’s Most Senior Partner,”Management InformationBulletin, January/February2000, Leggett & Platt, Inc.,pages 2–3.

2. Saundra Snowden, e-mailto Bonnie Young,10 August 2007.

Chapter Eight Sidebar:Looking to the East

1. Felix Wright, interview byJeffrey L. Rodengen, digitalrecording, 20 February2007, Write StuffEnterprises, Inc.

2. Paul Hauser, interview byJeffrey L. Rodengen, digitalrecording, 27 February2007, Write StuffEnterprises, Inc.

3. Wright, interview.4. Dennis Park, interview by


5. Wright, interview.6. Park, interview.

Chapter Eight Sidebar:Community Outreach

1. Public Affairs &Government RelationsDepartment records,Leggett & Platt, Inc.

2. Human ResourcesDepartment employmentrecords, Leggett & Platt,Inc., 2008.

3. Public Affairs &Government RelationsDepartment records,Leggett & Platt, Inc.

4. Ibid.

Chapter Eight Sidebar:Investor Relations

1. “Investor Relations,”Management InformationBulletin, January/February2000, Leggett & Platt, Inc.,pages 1–2.

Chapter Eight Sidebar:Supplier of the Year

1. “F/T to Honor Jabs, L&P,” Furniture Today, 4 October 2007.

2. “Local Industry ExecReceives High Honor,” The Carthage Press,8 October 2008.

Chapter Eight Sidebar:American Furniture

Hall of Fame Foundation, Inc.

1. American Furniture Hall ofFame Foundation, Inc.,9 October 2007, http://www.furniturehalloffame.com.

2. Felix E. Wright, speech at the inductionceremony of the AmericanFurniture Hall of Fame,October 2007.

171

A

acquisitions1967–68, 631970s, 67–711980s, 91–991990s, 101–2, 107–9, 117–212000s, 127, 138–40, 149–50

Adcom Metals Company, 76, 80Adcom Wire (firm), 80advertising

in consumer magazines, 43, 46of diverse product line, 63ink blotters used for, 34for “Lure-Sleep”

(brand name), 18in movie theatres, 23

Airo Die Castings (firm), 117A. J. Gerrard and Company, 117Allegheny Steel and Brass

Corporation, 97–98Allen, G. Louis, 81, 144Allen, W. E. (Bill), viii, 55, 59, 69aluminum components industry, 68, 69

die casting, 118Aluminum Products group, 108, 113–16,

116, 125–26, 140divestment of, 152

Amco Corporation, 117American Furniture Hall of Fame, 149America’s Body Company

(ABC), 140, 142antitrust actions against Leggett & Platt,

65, 71, 75, 77–78, 94Armco Steel Corporation, 64, 65, 80,

107–8Asbury, Francis, 110–11, 111Asia, 122–23, 136–37Atlanta (Georgia), 74Australia, 122automotive division, 106

Nagle Industries in, 117truck parts, 140

automotive inventions, 27, 27automotive seating products, 106

B

Bailey, W. W., 21Ballew, David, viiiBarden, John B., 31Baucom, Max, 51Bedline Manufacturing Company, 90beds, history of, 13bedsprings

durability of, 23invention of, 13–14patents for, 10, 18–19

Beimdiek, George S., Sr., 33–35, 34, 36, 38, 51

death of, 61during Korean War, 44as president, 36–37resignation from board of, 53retirement of, 45during World War II, 38–40

Beimdiek, George S., Jr., viii, 37, 37on board of directors, 51, 53, 54, 69

Beimdiek, Ida Brinkerhoff, 37Beimdiek, Martha, 37Bentele, Raymond F., 122, 143Berkshire division, 101, 102Berkshire Furniture Company, 97–98Beshore, Lance, 98, 98Bethlehem Steel, 64Bissman Manufacturing Company, 55Boatright, David, 119Boothe, Howard, viii, 59Bouser, Fred C., 41, 48, 51, 135box springs

Lectro-LOK® box springs, 70, 73–74, 74, 76

Semi-Flex® box springs, 106Semi-Fold® box springs, 145

Briggs & Stratton Corporation, 140Brinkerhoff, Ida (Beimdiek), 37Brinkerhoff, William E., 21Britz, Robert, 140Brown, David, 145Bryan, James F., 63, 69Burns, John, 119

Butler Manufacturing Company, 63BV Realty & Investment Company, 36, 37

C

C. A. Bissman Manufacturing Company, 55

Caffee, W. K., 20, 21, 54Calhoon, J. Richard (Rich),

viii, 80, 144, 144Cameo Fibers, Inc., 117Canada, 21, 25, 76Carter, Walter E., 43, 53Carthage (Missouri), facilities at,

16–17, 17, 48for C. D. Platt Plow Works, 13Cornell Conference Center, 92expansion of (1956), 49expansion of (1964), 59flood damage to, 35J. P. Leggett, Sr., in, 14Leggett & Platt activities in

community of, 141, 141Leggett & Platt corporate offices near,

152National Technical Center, 83new corporate headquarters near,

76, 76new plant at, 28–29plant and offices in (1971), 68post–World War II, 40, 42staff of, 35steel wire plant in, 64, 64, 65Student Learner Program and,

118–19technical center in, 75union election at, 51wire mill at, 70, 72, 77

Carthage, Battle of (U.S. Civil War), 16Carthage Crisis Center, 141, 141, 144Carthage Wood Products (firm), 53Casey, Edward B., Jr., 33, 38, 50

on board of directors, 53–54, 61Harry Cornell, Jr., and, 47–48as manager of Louisville plant, 33

INDEX

Page numbers in italics indicate photographs

I N D E X 173

retirement of, 62as vice president, 41as vice president of Kentucky

operations, 37, 48Casteel, Herbert S., viii, 53, 54, 69, 113

on board of directors, 122on Wyatt, 113

C. D. Platt Plow Works, see Platt Plow Works

Chicago Spring Corporation, 54Chieng Yeng (Chinese firm), 150China, 122–23, 136–38, 140, 150Civil War (U.S.), 16Clark, Ralph, 143coiled bedspring

invention of, 12–14patent for, 10, 18

Collier-Keyworth Company, 97Combination Spring Bed Company, 18Commercial Furnishings, 126components division, 58–59, 61, 67

diversification within, 69Cooper, Frank, 55Cooper, Marcia, 111, 140Cornell, Harry M. (“Mack”), Sr.,

14–15, 33, 34, 129on board of directors,

33, 38, 51, 53, 60, 69as chairman of board, 56Cornell Conference Center

dedicated to, 92death of, 85Johnson and, 78as president, 45, 47–49, 49, 50as vice president and sales

manager, 41during Young’s attempted acquisition

of Leggett & Platt, 34Cornell, Harry M., Jr., viii, 15, 101, 135

acquisitions strategy of, 70–71on antitrust actions, 71, 77on Armco Steel, 107–8awarded by NABM, 89on board of directors, 51–53, 69, 143as CEO, 58–59, 59as chairman of board of directors,

122, 126–27, 126on corporate culture, 105on customer service, 83on decrease in earnings, 86on earnings in 1976, 75elected chairman, 85Ennis facility under, 47–48growth of Leggett & Platt under,

55–60joins Leggett & Platt, 43Levine and, 98on Mira-Coil®, 87at New York Stock Exchange, 81on 100th anniversary of Leggett &

Platt, 88portrait of, 129portrayed on centennial mural, 89as president, 60, 143

on production of steel wire, 64retires as CEO, 120, 120, 121, 123retires as chairman of board, 130retires as president, 94retires from board of directors,

146–48on sale of packaging division, 91takes control of Leggett & Platt, 53–54transition of leadership to Wright

from, 115as vice president, 49, 50on Wyatt, 113

Cornell, Marjorie Leggett, 14, 33, 49on board of directors, 53, 69

Cornell Conference Center dedicated to, 92Cornell Conference Center, 92–93, 92corporate culture of Leggett & Platt, 104–5,

115,137Crest-Foam Corporation, 97, 104“Crown” (brand name), 23Crusa, Jack, viii, 96, 96

on Gamber–Johnson acquisition, 149at New York Stock Exchange, 140

Culp Smelting & Refining Company, 98Cyclo-Index Corporation, 89–90, 90

D

Dallas (Texas), facility at, 35, 36–37, 39moved to Ennis (Texas), 41during World War II, 40

Dalpak Corporation, 63Daltex Company, 36–37DeKalb (Illinois), facility at, 60De Lamar Bed Spring Corporation, 80, 86DeSonier, David M., viii, 140, 144, 144die casting, 117

aluminum, 118display racks, 68, 69, 71

“Super Excalibur,” 83Dittberner, Bob, 57, 60–61“Dixie Sleeper” (brand name), 23Dolloff, Mitch, 145Downes, Joseph D., Jr., viii, 131, 131, 150Downes, Susan Higdon, 80drawn steel wire, 64, 65Dresher, Inc., 101, 102Dry Fork, Battle of (U.S. Civil War), 16Dymott, Jeff, 80

E

Eagan, Ida May (Leggett), 14, 27Egypt, ancient, 13Emerson Electric (firm), 116Emmert, Matt, 80Endless Necktie, 27, 27Englander Mattress Company, 60Enloe, Ted, III, viii, 69

on board of directors, 122, 143on Sterling Steel mill, 137

Ennis (Texas), facilities at, 41, 41box spring frame operation in, 69completion of, 43

Harry Cornell, Jr., heads, 47–48, 52, 59

sales of, 49, 50union election at, 51

EST Company, Inc., 68, 69EST Division

chairs by, 91propellers by, 83

ethics, 104–5, 130–32, 137Europe, 108Ewing, Guy W., III, 69Excell Store Fixtures (firm), 116

F

Fairmont Corporation, 117Fanning, Richard P. (Dick), 54, 54, 60, 60,

69Fashion Bed Group, 101, 102, 103, 104–5Firemen and Oilers (union), 51Fisher, Catherine (Platt), 15Fisher, Jonathan, 15Fisher, Richard T., viii, 69, 122

on board of directors, 143as chair of board of directors, 148

Flanigan, Matthew C., viii, 126–27, 127, 129at New York Stock Exchange, 140

Fleishman, Gared, 119Flex-O-Lator Company, 43, 96Flex-O-Lator division, 106, 108Flex-O-Loc Corporation, 63“Flex-O-Top” (brand name), 39Flores, Danely, 119Foothills Manufacturing, Inc., 74Ford, Frank E., viii, 48

on board of directors, 53–54, 61, 69as Carthage manager, 60as corporate secretary-treasurer, 48, 50Haffner interviewed by, 132retirement of, 85

Ford, Frank E., Jr., 122FORTUNE® 500, 11, 91, 99, 104–5, 122, 123,

124, 129Frank L. Wells Company, 74, 87Frederick, Don K., 51, 60Fugate, Russ, 140Furniture Today (journal), 148Futron Plastics (firm), 80

G

Gaddy, Bob L., 122Gamber-Johnson, LLC, 149Gateway Holding Ltd., 117Gladden, Roger D., 68, 68, 135Glassman, Art, 80, 85Glassman, Karl G., viii, 85–86, 86, 134

on acquisitions and growth, 142–43on board of directors, 143as chief operating officer, 143as executive vice president of

operations, 130, 130on Furniture Today award, 148at New York Stock Exchange, 140

Glauber, Michael A., viii, 63, 69, 113, 134on acquisitions, 119–20Sterling Steel mill and, 134, 136, 137

Global Systems Group, 102Globe Spring and Cushion Company,

Ltd., 76Gordon Manufacturing Company, 91Grafton (Wisconsin), 74Greeno Company, 63, 71, 77Gribetz International, Inc., 101, 102Griffin, Bob, 140Grundy, Jeff, 96Guerra, William, 119

H

Hacker, Crystal, viiiHaffner, David S., viii, 90, 141, 144

on board of directors, 122, 143as chief operating officer, 120–21as executive vice president, 113, 120at New York Stock Exchange, 140as president and CEO, 125–27, 130,

130, 132–33, 132, 143on Prime Foam, 148–49on retirements of Cornell and

Wright, 148on strategic plan for Leggett &

Platt, 150, 153as vice president of operations, 90, 96

Hale, John, viii, 67, 80, 121, 121Haley, John, 55Hall, Greg, viiiHall, W. E., 21Hanes Converting Company, 107Hanes Dye & Finishing Company, 107Hanes Fabrics Company, 107Hanes Geo Components, 142Hanes Holding Company, 107Hansford, Michele, viiiHarris, Joe, 145Harris-Hub (firm), 101Harry Keeton Spring Company, 57Hauser, Paul R., viii, 103–4, 136, 136Hays, Thomas A., 122Hebert, Daniel R., viii, 116, 116, 140Higgins, Larry, 69, 83, 83, 106High Point (North Carolina), “Tech Center”

showroom in, 83history of sleep, 13home furnishings division, 58–59, 61, 67Hougland, Oscar (“Bud”), 40, 135, 135

as manager of Kentucky operations,60, 61

as manager of Winchester plant, 40, 41, 48

Houston (Texas), 69Hubbard, Walter W., 20, 28, 31, 33

I

IDEA Center, 125, 144, 145Ikex, Inc., 140–42Indiana Chair Frame (ICF; firm), 98

Industrial Materials division, 150ink blotters used for advertising, 34insomnia, 13International Association of Machinists, 51international division, 83inventions, 153

of bedsprings, 10, 13–14by Leggett, 26–27see also patents

Iraq War, 138

J

Jackson, Cairborne F., 16Jarex Distribution, LLC, 140–42J. B. Ross Manufacturing, Inc., 101, 102Jefferies, Robert A. (Bob),

viii, 71, 77–79, 113on acquisitions, 118–20on board of directors, 122at New York Stock Exchange, 81

Jett, Ernest C., viii, 80, 116–17, 117Jiaxing (China), 138Johns, Kate M., 21Johnson, Ralph V., 78–79, 78

on board of directors, 69Harry Cornell, Jr., and, 53–54on Mira-Coil®, 87Rules of Marketing of, 79as sales manager, 60, 61as vice president of sales, 48, 50

Joyce, C. Glenn, 34, 48, 50on board of directors, 53–54, 57Harry Cornell, Jr., and, 47–48death of, 61at Ennis facility, 41

J. P. Leggett Innovators Award, 145–46J. R. Greeno Company, 63, 71, 77Justice, U.S. Department of,

65, 71, 75, 77, 94“just-in-time” manufacturing, 70

K

Kay Springs, Inc., 94–95Kenyon Manufacturing Company, 63Kirchner, Carl, 33, 37–38, 41, 41, 60Korean War, 43, 44Kraft Converters, Inc., 67Krakauer, Gary, viii, 94–95

L

labor unions, 44–45, 50–51strikes by, 72, 75

Laclede (firm), 64LaFerla, Donald G., viii, 72–73, 72L&P Foam (firm), 97Latrobe Plastic Company, 117L. A. Young Industries, Inc., 25L. A. Young Spring and Wire Corporation, 25

failed attempt to buy Leggett & Platt, 34

Young Spring & Wire of, 101

Lear-Siegler (firm), 102Lectro-LOK® box springs,

70, 73–74, 74, 76Leggett, George D., 15, 21Leggett, Harriet (Robbins), 14Leggett, Helen, 14Leggett, Ida May (Eagan), 14, 27Leggett, John, Sr., 14Leggett, Joseph Palmer, Sr.,

11–13, 14, 15, 20, 129bedspring invented by, 13–14death of, 25, 28inventions of, 26–27, 26–27McElroy-Shannon Bedspring

Company partially controlled by, 20–21

openness and honesty of, 24in partnership in Platt, 15–16patents obtained by, 10, 18–19, 21portrayed on centennial mural, 89

Leggett, Joseph Palmer, Jr., 14, 29as president, 29retirement of, 32

Leggett, Marjorie (Cornell), see Cornell,Marjorie Leggett

Leggett, Raymond F., 11, 14, 28Leggett, Willmetta (Platt), 15Leggett & Leidy (firm), 18, 18Leggett & Platt Spring Bed &

Manufacturing Company, 21, 23, 39

Leggett & Platt Wire Tie, 106Leggett family, 14–15

family tree of, 12Leggett Trap, 27Leggett Wire Company, 80Leidy, Martin, 18, 18Les Bois Blanchet, Inc., 117Levine, Alexander M. (“Sandy”),

viii, 56, 99, 122lid for tea kettles, 27, 27Lister, R. E., 21logo, 47Long, Don V., 69Louisville (Kentucky), facility at

damage to, 35new building in, 37post–World War II, 40, 42union elections at, 51during World War II, 40

Lovell, Eugene Hendrix, 31“Lure-Sleep” (brand name), 18, 23Lyons, Vincent, viii, 144–46, 145

M

Marcus, Malcolm, viiiMason, Vern, 119, 119Masterack (firm), 67–69, 71, 74Masterack division, 83, 108mattresses

invention and history of, 13polyurethane foam for, 54–55

McClanathan, Joseph, 143


I N D E X

McClurg, M. J., 21, 28McCormick, James C., 61, 62, 69McCoy, Susan, 140McCune-Brooks Hospital (Carthage),

141, 141McElroy, Charles F., 20–21McElroy-Shannon Bedspring Company,

20–21, 24–25, 28McMillan, John A., 38, 51, 53McMillan, William, 21Meritt, Herman, 60Merkin, A. Barry, 101Metal Bed Rail Company, Inc., 67, 75Mevey, B. A., 21Mexico, 108, 116, 117Middletown division, 94Middletown Manufacturing, Inc., 54, 73,

75Millville (Pennsylvania), 14Mira-Coil® continuous coil innerspring, 70,

82, 83, 86, 87, 87Missouri Rolling Mill Corporation, 80Missouri Southern State University

(MSSU), 141, 141Morris, Jack B., 97, 122Motor City Spring Company, 63, 71, 77motor vehicle transmission system, 27, 27MPI, Inc., 95–97, 97

N

Nachman Corporation, 89Nagle Industries, Inc., 117Naples (Texas), 69, 71–72, 74, 80Nash, Eloise, viii, 78, 78–79, 109–12National Advisory Board on Mobilization

Policy, 44National Association of Bedding

Manufacturers (NABM), 33, 89National Bedding and Furniture Industries

(firm), 91National Fibers (division of National

Bedding and FurnitureIndustries), 91

National Sleep Foundation, 13National Technical Center (Carthage), 83,

141, 144Nestaway, LLC, 149–50, 150Newell, J. P., 21Newman, Chance, 119Newman, Jack, viiiNew York Stock Exchange (NYSE), 81, 81,

140, 140Northfield Metal Products, 94Northwestern Steel & Wire Company, 131,

133, 134

O

Oconto Metal Finishing, Inc., 117Odom, Judy, 143Odor, James W., 36, 41, 47Off Set Spring (firm), 56O’Keefe, E., 21

O’Keefe, John E., 38, 47Ornduff, Robert, 21

P

Pace Industries (firm), 108, 113, 116, 116Pacific Dunlop (firm; Australia), 97Pacific Fairmont Corporation, 117Pacific Spring Company, 25packaging division, 67, 73, 75, 91Pango Industries (China), 138Paragon (quilting machine), 102Paramount Paper Products

Company, 73Park, Dennis S., viii, 76, 122–23,

137, 137Parke, M. B., 21Parthenon Metal Works, Inc., 90, 146“Partners in Progress” sculpture,

100, 113, 129patents, 70

for bedsprings, 10infringement lawsuit, 83Kirchner’s, 41lawsuits over, 116–18Leggett’s, 18–19, 21, 26–27for Mira-Coil® continuous coil

innerspring, 82, 83owned by Leggett & Platt, 30, 37

Payton, Ula, 34Pearsall, Richard L., 122Peck, Libby, 111Perry, David, 148Persian Gulf War, 102Phelps, George E., 38, 51, 53Phillips Foscue Corporation, 55, 75Phoenix (Arizona), facility at, 55, 56Platt, Catherine Fisher, 15Platt, Cornelius B., 11, 12, 14, 15, 96

death of, 29Leidy and, 18openness and honesty of, 24in partnership with Leggett, 15–16portrayed on centennial mural, 89as president, 25, 28

Platt, Cornelius D., 13, 15Platt, Cornelius Eugene (“Jack”),

20, 25, 38death of, 43Flex-O-Lators started by, 96

Platt, Frederick E. (Fritz), 96Platt, George, 96Platt, Harriet Bessie (Williams), 29, 32Platt, Harry, 19Platt, John G., 96Platt, Nick, 96Platt, Robert L. (Bob), 25Platt, Robert L. (Muff), 96Platt, Thomas W., 96Platt, Tom, 96Platt, Willmetta Leggett, 15Platt family, 15–16

family tree of, 12

L. A. Young Spring and WireCorporation owned by, 34

Platt Plow Works, 13, 15, 15, 16polyurethane foam, 54–55Porter, George, 29Potter, Duane W., viii, 105, 105, 122Prime Foam (firm), 148–50Pullmaflex (firm), 106, 108Purnell, Maurice E., Jr., 122, 143

R

railway car seating invention, 27Remington Company, 27Renaissance, 13Residential Furnishings, 126Reynolds, John, 134RHC Spacemaster (firm), 138–39, 139Rice, David, 119Robbins, Harriet (Leggett), 14Rodgers-Wade Manufacturing

Company, 117Rodman Spring Company, 57Roman Empire, 13

S

Sanders, Jay, 78–79, 78Sandham, Edwin C., 68, 85Sarbanes, Paul S., 105Sarbanes–Oxley Act (2002), 104, 130Sarkin, Steffan, 145Schreiber Foods, Inc., 132Semi-Flex® box springs, 106Semi-Fold® box springs, 145September 11 terrorist attacks, 129Shannon, Woodford, 20, 21Shen, Philip, 136Shirley, John, 16Sigel, Franz, 16Signal Manufacturing Company, 67, 90sinuous-wire bedding, 55Skara Brae (Scotland), 13SkillsUSA, 119Slaughter, William, 111sleep deprivation, 13sleep, history of, 13Slot All Limited (firm), 116Smith, Sam, 15Snowden, Saundra, 135Social Circle (Georgia), factory in, 69Southeastern Manufacturing Company

(SEMCO), 108–9, 112Southern Cross Industries, Inc., 67–68Speece, Karl, 15Spühl AG (firm), 70, 73, 116–18stake-wire bedding, 55Standard & Poor’s, 11, 123Standard Box (firm), 70, 73Star Manufacturing, 25Steadley Company, 116, 117steel industry, 44–45

Sterling Steel mill, 131, 131, 133–38,140, 142

175

Steiner-Liff Textile Products (firm), 94Sterling Steel mill, 131, 131, 133–38,

140, 142store fixtures industry, 138–39, 139strikes, 72, 75Student Learner Program, 118–19,

119, 123Super Sagless Corporation, 54, 109, 109

T

Talbot Industries (firm), 108, 109, 109target trap, 26, 27“Tech Center” showroom

(High Point), 83Thomas, Andy, viii, 110, 110, 111

centennial mural by, 89painting of Carthage by, 17portrait of Harry Cornell, Jr., by, 129

Thompson, Jay, 145Tiffany Textile Corporation, 80trademark of Leggett & Platt,

Incorporated, 11trade shows, 75Tutankhamen (king, ancient Egypt), 13

U

United Steelworkers Union (USW), 44–45, 51

urethane foam, 103, 104U.S. Steel, 64, 65U.S. Wire Tie Systems (firm), 108

V

Van Hoose, B. L., 36Vantage Industries (firm), 108“Victor” (brand name), 23VWR Textiles and Supplies (firm), 107

W

Wall Hugger, 73, 76, 83Walton, Alice L., 122Web site for Leggett & Platt, 145Webster Spring Corporation, 56, 98Webster Wire, Inc., 98–99Weil, Bill, viii, 138Wells, Thomas J., Sr., viii, 74

as director of manufacturing services, 74

innovations by, 106on Mira-Coil®, 87Student Learner Program created

by, 118Wickes Manufacturing Company, 101Wickstrom, Wayne, viii, 95, 95Wilcox Industries, Inc., 98Williams, Frank B., Sr., 29, 32, 32, 96

death of, 45elected chairman of board, 36retirement of, 33

Williams, Frank B., Jr., 51Williams, Harold, 96Williams, Harriet Bessie Platt, 29, 32Winchester (Kentucky), facilities at, 40, 42,

42–43, 59strike at, 72Wright as head of, 63

wireCarthage mill for, 70, 72, 77drawn steel, 64, 65galvanized, 107Leggett Wire Company for, 80sinuous and stake, 55Sterling Steel mill for, 133

Woestman, Gene, 135, 135Wood, Phoebe, 143World War II, 37–40Wright, Curtis, Jr., 25

Wright, Felix E., viii, 55, 60, 114, 114–15, 135

on acquisitions, 70–71in American Furniture Hall of

Fame, 149on board of directors, 69, 122, 143as chairman of board of directors,

130, 130on China and Asian market, 136–37on corporate culture, 104–5on costs of fuel and energy, 102–3as executive vice president, 83Flex-O-Lators and, 96Haffner and, 132–33Hale’s interview with, 121in Kentucky, 62, 63on Lectro-LOK® box springs, 74at New York Stock Exchange, 81, 140at Phoenix facility, 55–56, 60portrayed on centennial mural, 89as president and CEO, 94, 120, 120,

123, 126–27, 126retires as CEO, 143retires as chairman of board of

directors, 146–48on steel industry, 134succeeds Harry Cornell, Jr., as

CEO, 59Wyatt, Everette, 100, 110–11, 113

Y

Young, Bonnie, viii, 140Young Spring & Wire (firm), 101

Z

Zapletal, Henry, 106, 118Zapletal Education and Development

Center, 118


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