Social Soapmen

Soapmaking seems to inspire active social thinking. The late Lord Leverhulme, founder of world-spraddling Lever Brothers (Lux, Lifebuoy), was Britain's famed high-wages-&-short-hours Prophet. Procter & Gamble (Ivory) was an early experimenter with the guaranteed work year and employe representation on the board of directors. Last week two other household soap names made social news. One was Samuel Simeon Fels, scholarly septuagenarian maker of Fels Naptha. The other was J. (for James) Crate Larkin, vice president of Buffalo's Larkin Co., Inc., makers of the soap U. S. children sell their parents' friends for the sake of Larkin premiums.

Fels & Co. is a family-owned concern with a model 23-acre plant in Philadelphia. Like its soap formulas, its production, profits and other internal affairs are deep Fels secrets. Last week, therefore, U. S. financial editors rubbed their eyes when they received a brief news release announcing that Fels & Co. had just paid its 35th annual employe bonus. Lowest payment amounted to 22 1/2% of a worker's yearly wages. Attributed to President Fels was this statement: "We are happy that through depressions as well as in periods of prosperity . . . we have been able to pay a bonus without interruption."

In his spacious home next door to that of Cigarman Otto Eisenlohr in West Philadelphia, Mr. Fels was shocked to learn that so much information has been disclosed to the public. "I don't know how it got out," said the bearded old gentleman sadly.

Mr. Fels's corporate reticence is largely modesty. Born in Yanceyville, N. C. 76 years ago, he got into soap when the soap works was next to the local slaughterhouse. Fels introduced naptha into the soapmaker's art in the 1890's, still has a virtual monopoly on naptha soap.

Kindly, cultured Mr. Fels detests the word "philanthropist," but his good works have been many. He is a heavy contributor to peace groups, Jewish charities, medical and scientific research. He backed Dr. John A. Kolmer's infantile paralysis serum experiments, was on the Philadelphia Orchestra board until its reorganization last year, gave the planetarium at Franklin Institute. "I heard about planetaria, read about them, thought it would be well for Philadelphia to have one," he explained. "So I ordered one."

Mr. Pels has spent long hours pondering the State of the Union. With reservations, he has been a lifelong Single Taxer.* He is close to the New Deal, is a constant adviser to Publisher Julius David Stern, in whose Philadelphia Record he is a stockholder and director. In his book, This Changing World, published in 1933 but written before, he came to the conclusion that money & banking was the weak factor in capitalism, outlined what for all practical purposes was NRA and set up what are supposed to be the New Deal's long-range objectives. Wrote he:

"After all is said, business is but a privilege. Ours is not a right but a franchise. . . . If this be so, then the Government, representing both the people who gain most by our present system and those who suffer most, has the right and duty to control and organize this privilege so as to raise and fortify the general level of American life."

Even more heretical than Soapman Fels is Soapman J. Crate Larkin, who is really a soapman only by tradition. Larkin Co. was founded as a soap works in 1875, branched from wholesaling into mail-order distribution, branched again into distribution through women & children who wanted to earn a few premiums. After 20 years, Larkin again branched, this time into chain stores. Today it has 100 stores in the Buffalo territory, another group of 75 around Peoria, Ill. Owned by the socialite Larkin family, it publishes no figures.

Three sons and six grandsons of the founder are in the business, chief executive being John Durant Larkin Jr. His son, Vice President J. Crate Larkin, is a blue-eyed six-footer of 33. A Williams graduate (Class of 1923) he, too, has written a book, From Debts to Prosperity, is an ardent disciple of Britain's Major Clifford Hugh Douglas, high priest of Social Credit. Last week after experimental application of the Douglas theories in his own office, Mr. Larkin announced:

"At first sight the Douglas proposals appeared too good to be true. Our cost accountants were requested to make an experimental application of the procedure. . . . These investigations indicate that the Douglas proposals, far from being fantastic, merit the careful consideration of business executives."

Insisting with laudable accuracy that most critics of the Douglas plan have little or no understanding of the basic Douglas conceptions, Mr. Larkin added: "Similarly the Alberta-Aberhart dividends-by-taxation program has been widely confused with the Douglas proposals. . . ."

*Soapman Fels' late brother Joseph Fels was also a social-minded Single Taxer, who lived part of each year in London. A British committee of charitarians once asked him for contributions to alleviate conditions in London's slums, where, he was informed, children were dying like flies. Joseph Fels refused on the ground that charity solved no problems. Declaring that something fundamental had to be done, he made this counter proposal: "I'll give -L-10,000 to pay for the removal of these dead children to the lawns of the House of Parliament."

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