Anamosa - A Reminiscence 1838 - 1988

mutual consent.
in the Stipulation of Settlement, Welch agreed to pay
for the witness costs in Chicago. Shipkowsky would
have the brass patterns, patent desk, jigsaw, with
Welch using the same until the work on hand was
completed. It was agreed that, if defendants should
manufacture any of the goods mentioned in the
contracts between them, Shipkowsky would receive
his 20 percent royalty, while Welch agreed to pay the
attorney fees.
During the time that Welch was having his troubles
with Shipkowsky, or vice versa, the Indianapolis Lock
Co. started a law action against the W.M. Welch
Company for monies claimed due them for items used
to furnish the Anamosa post office (on the corner of
Booth and Main streets). A jury trial was held which
found for the defendant, Welch Co.
Even with all of the time spent in the courts, and
there was more to follow, the Welch factory was
sending out orders for school desks and school supplies
to many parts of the United States. Canada and foreign
markets. At the end of 1905, it was reportedly doing
$175,000 worth of business and the company was
touted as being the largest factory of its kind in the
world. It employed 100 seasonal workers. Welch
wanted to expand and employ 500 workers.
With the mailing out of 100,000 circulars (at one cent
each], the Welch factory was instrumental in bringing
free city delivery to Anamosa. This meant that all of the
houses and businesses not already numbered must do
so. (They were first numbered in 1896).
in other postal matters, postmaster C.H. Anderson.
had to become familiar with the new letter stamping
device, which was to be operated by a water wheel.
To all outward appearances the factory was proving
to be a great success. New residents were moving into
town and the local Lotharios were being kept busy
congregating around the depot when rumors were
spread that young ladies would be arriving on the
moming train to seek eemployment at the factory.
When the train arrived with only traveling salesmen
alighting, the young potential Romeos dispersed to
await future rumors.
As was mentioned, the company was looked upon as
a success; and it was, but for one large and intrusive
drawback — the stockholders had received no pay.
The handwriting was on the wall. On Dec. 21, 1905.
Welch was ousted by the board of directors. Upon
losing his petition, he returned to Chicago.
In June 1906, officers of the company issued $50,000
of gold bonds to borrow funds to pay debts of the
company and carry on business and executed a trust
deed to secure the bonds. The bonds were taken over by
"a pool of Anamosa capitalists" headed by 26-vear-old
Gecgge Schoolover. The bonds, payable in yearly
ins lments, began bearing fruit in 1907. The factory
continued under the faction of stockholders which had
been the cause of Welch's discharge. The bonds and
interest thereon, during that time, remained unpaid.
The woodworking department was sold to purchasers
in Oklahoma.
In February 1911, W.M. Welch regained control at a
stockholders‘ meeting, through the voters of a majority
of the shares of common stock. He elected a board of
directors friendly to his interests. who passed a
resolution to change the name of the Anamosa factory
to The American Educational Industries.
When Welch returned to Chicago after his ouster as
manager and director in 1905, he incorporated his
company there as the W.M. Welch Mfg. Company,
which was so similar to the name of the Anamosa plant
that it aroused a great deal of concern and troubles. So.
while Welch supporters were preparing the ground at
the stockholders‘ meeting, the Schoonover adherents
u;_ere preparing proceedings for foreclosure on the deed
o trust.
Welch held the keys to the door only to find the sheriff
on the doorstep
J.N. Ramsey took over as trustee. A temporary
injunction was issued restraining the changing of the
name of the Anamosa plant.
The foreclosure action, started by Ramsey, was
followed by Welch illing an action for damages under
the name of W.M. Welch Co. (now the American
Educational Industries) against George L. Schoonover
and Park Chamberlain asking for damages in the
amount of $100,000. They charged the defendants
with deeds and acts done covertly and with the
intent to defraud.
Ramsey's two cases were combined and heard by
District Court Judge Milo P. Smith. The decree, entered
January 27, 1912, favored the trustee, who was
granted the right to carry on the business and to
provide means to conduct the business, and
authorized a sheriff's sale to satisfy the mortgage
indebtedness plus interest and costs.
A permanent injunction was granted, restraining the
changing of the name of the Anamosa plant to the
American Educational Industries.
Welch's suit against Schoonover and Chamberlain
was dismissed, the court finding no showing of
negligence on the part of the defendants or
misappropriation of funds. as alleged.
Welch appealed to the Iowa Supreme Court, which
ultimately a.ffirrned and sustained the district court's
ruling and decree.
On June 7, 1913, a sheriffs sale was held to satisfy
the $65,079.22 judgment and interest. Costs were an
additional $713.64.
The plant was bid in by trustee Ramsey. This
included the real estate, all of the machinery and
equipment of the Welch Co., and the printing, binding
and lithographing departments. foundry, machine
shop. powerhouse, drying kiln. warehouse and
storehouses.
The sheriff‘ s return of execution consisted of nearly
two newspaper columns of line print and included in
the description 12,000 completed school desks and
about 7,000 school desks in the process of
construction.
George L. Schoonover had filed suit against the W.M.
Welch (Mfg.) Co.. charging Welch with conducting
business with the similarity of names for the purpose of
injuring the Anamosa company. Also, Welch was
charged with printing the same forms and letterheads
too similar to the local plant. The suit claimed that the
plaintiff was threatening to continue to carry on the
business, in which the Chicago company laid claim to
the defendant's mail, and all of these actions were
meant to destroy the Anamosa business which was his
largest competitor.
This lawsuit was officially dismissed in February
1913. The court ruled that the defendant was not
legally served the paper, as he was served while
appearing as witness in his other cases, making him
immune from service. Also, the dismissal stated that
Iowa court did not legally have jurisdiction over this
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