Sparta Spoke FactoryFrom 1896 to present

As the state of Tennessee celebrated its bicentennial in 1996, another milestone was reached in Sparta, Tennessee as Sparta Spoke Factory celebrated its centennial year. It is rare for a company to survive 100 years, especially through five serious wars, the Cold War, two tragic burn outs, a total plant relocation, perilous industry threats, important changes in product lines, critical changes in key people, seven reorganizations, a union organizational drive, increasing foreign and domestic competition, numerous recessions, the Great Depression, and 19 Republican and Democratic presidents of the United States. With all these international, national, industry and local challenges, no wonder statistics show that 80% of all new businesses never survive past their 10th birthday.

A census of the Sparta businesses in 1896 would show that only one still exists today. Just as there is great interest in a person who lives more than 100 years, there is equal interest in a company that does the same. What is the secret of Sparta Spoke's longevity? This article will give some answers in the hopes that other businesses can benefit.

One can learn the history of a nation by studying its key leaders. The same is true for a company. What follows is a history of Sparta Spoke Factory (or SSF) outlined in the five time periods of its principal leaders.

James Richardson Tubb (1896-1920)

JR Tubb was an active entrepreneur and innovator with a variety of agricultural interests. Over several years he tried his hand at selling beef, poultry, pulp, farm implements, staves, and lumber. Some of these undertakings failed, but he gained a valuable business education.

Around 1880 he established Sparta Roller Mills on the Calfkiller River at Tubb's Spring north of Sparta. The roller mill was a waterwheel connected to a millstone that ground wheat into flour. Following a fatal accident he shut the operation down. In 1890 he constructed a dam across the Calfkiller River next to the new steel-reinforced bridge in downtown Sparta. On the west side of the dam he built another roller mill and sold flour to markets in three states. Six years later he would begin his most lasting business venture on the east side of this same dam.

The Depression of 1893-1896 had left 20% of Americans unemployed and JR Tubb nearly broke. But in 1896, at the age of 43, he managed to gather up enough funds to buy two Defiance spoke lathes and housed them in a frame-structured new factory opposite his roller mill on the Calfkiller River. This new business was successful enough that in 1898 he sold his roller mill and invested additional capital into his young and growing spoke factory. He found a unique way to link this area's natural resources and skilled people with the right technology to make a 4000-year-old Egyptian product, a wooden spoke, even better. By 1902 the prospering company employed 30 people and produced a freight car load of oak and hickory wagon spokes weekly.

The times were changing in American manufacturing at the turn of the century. The United States became the largest manufacturing nation in the world in 1894. The Industrial Revolution

in Europe was beginning to reach the rural areas of America like Sparta. The ideas of Frederick W Taylor, the father of scientific management, were being embraced in the business community. The development of high-speed cutting steel was tripling productivity. And electricity was expanding into more and more communities across the nation.

Energy is a central need of manufacturers. Spokes were first produced by generating energy from a waterwheel, then from a steam engine, and eventually from electric motors. The waterwheel method worked well when the Calfkiller River had a normal flow of water. Power would travel from the waterwheel to the line shaft, to the belts, to the gears, and finally run the spoke lathes. But the river was unreliable - frequently either drying up or flooding. In 1910 a Frick steam engine was added. It would supply a more dependable flow of energy for the next 40 years. This same steam engine was recently restored by Mike Henry and is still operational 90 years later for those wanting a taste of the past.

Not long after Thomas Edison invented the electric light in 1879 American businesses started replacing water and steam power with electric power. By 1929 70% of industrial power and 66% of residential power in America would come from electricity. Most rural areas lagged behind, but in 1909 the A&T Power Co. was started by JR Tubb and three Andersons to take advantage of the opportunity. They built a concrete dam downstream on the Calfkiller River and used a water turbine to supply White County with its first electricity. The dam, raceway, and turbine can still be seen today. This new technology revolutionized this area's homes and businesses. Sparta Spoke's total conversion to electricity would not be completed until 1950.

After surviving the economic Panic of 1907 SSF was reported to be "one of the best equipped plants in this section" of the country. A "feeder" network of small sawmills were set up around this area to supply enough oak and hickory billets to keep the spoke lathes running. Spokes were shipped to well-known companies like John Deere, Studebaker, International Harvester, and Owensboro Wagon Company. Eventually spokes would be shipped all over the world. After World War I SSF became a source of community pride when it grew into the largest exclusive spoke manufacturer in the world.

In 1917 JR Tubb began surrendering management and ownership of the sole proprietorship to his successors. In 1924 a partnership was formed, consisting of two of his children who were active in the business, JR Tubb Jr and Leon B Tubb. In 1927 he officially retired at the age of 75, but continued to visit the plant daily for the rest of his life. He died in 1942 at the age of 90.

JR Tubb lived a long life of service to others. He helped start Sparta's first Chamber of Commerce in 1895 and served as its first president, served on the school board, was an alderman, was two-time mayor, and helped found a bank. But these things were not his greatest legacies.

JR Tubb's deep commitment to Christian principles left a lasting impact on both the company and the community. In 1913 he wrote to his customers explaining his business philosophy, "As in the past we shall continue to do business on high and honorable lines observing as best we can the Golden Rule." He served as an elder, song leader, and treasurer of the Central Church of Christ and even wrote a tract on how to study the Bible. When the church building burned down, he gave to the church money he had saved for the new house he was planning. He helped build many other church buildings in the county and even helped start a small Christian school in Cookeville that later became Tennessee Technological University. His make-up was seen during a severe winter in 1914 when a writer said that JR Tubb "put coal in front of his building and invited the needy to help themselves as it was theirs for the taking." His character, competence, and compassion gave SSF a solid foundation upon which future generations could build.

James Richardson Tubb Jr (1920-1946)

JR Tubb Jr led the company successfully through many demanding challenges. He kept the company operating during the recession of 1920-1921 when unemployment reached 12%. In 1924 the factory experienced a major fire that shut down the manufacturing operation, but in only three months it was rebuilt and the machines were replaced. By 1928 SSF employed 50 people, had four warehouses of spoke inventory, and shipped throughout the USA, Mexico, and Germany.

The Great Depression of 1929-1941, with unemployment reaching 25% in 1933, reduced the number of spoke manufacturers in the country from 300 to five. One of those survivors, SSF, operated on a limited basis by sometimes cutting prices in half to provide an income to workers who were struggling to feed their families. Then in 1940 a second major fire destroyed much of the machinery and several hundred thousand spokes, but again the business was quickly back in operation. Amid these difficulties an even larger one loomed.

The market for wagon spokes was rapidly declining as horseless trucks and trackers replaced farm wagons. As American ownership of automobiles jumped from eight to 27 million from 1920 to 1929, new wagon sales plunged from 504,000 to 25,000 from 1904 to 1932. These trends were both a threat and an opportunity. The company responded in two ways. First, it expanded into automobile spokes for flourishing motor vehicle companies like Ford, Dodge and Chevrolet. Second, it diversified into a greater variety of wagon and farm products.

A special opportunity presented itself in 1929 when Burroughs-Ross-Coleville, like many other spoke companies, discontinued its spoke and bent rim operation. SSF bought BRC's spoke business and won over almost 100% of its spoke customers. For the first time the company expanded its product line beyond spokes and into bend rims for wooden wheels. This strategy continued, and by 1938 the product line included spokes, rims, shafts, axles, felloes, poles, hubs, plow handles, and plow rounds. The spokes went into wheels for wagons, carts, log carts, autos, hay rakes, and carriages. Spoke designs included the standard western, Sarven Patent, Warner Patent, plain wood hub, shell band, Eastern, and California patterns.

From 1938 to 1940 the company made several organizational changes. In 1938 the owners decided to incorporate and include two employees in the ownership of the company. Six months later Leon B Tubb retired from SSF and sold his shares. JR Tubb Jr held a 74% interest in the company with JK Keisling, Jean B McKay, and JR Tubb owning the balance. JR Tubb Jr distributed some shares to his four children in 1939. Then in 1940 the owners thought it more favorable to revert back to a partnership.

As more and more competitors exited the shrinking industry, JR Tubb Jr stubbornly believed that the future of spokes was still bright. He was right, but the demand for spokes came from a different source than he likely expected. During World War II, due to wartime metal shortages and the pressing need for farm wagons by allies such as Britain and Russia, the demand for wooden wagon spokes boomed one last time. His optimism paid off and it was reported that "once again Sparta spokes kept the wheels rolling for a world fighting to be free." By 1945 the company employed 100 people and was operating all six spoke lathes at peak capacity.

Through many adversities, the vision of JR Tubb Jr shaped a business that caught the attention of a distinguished audience. His business philosophy was to provide customers with superior quality, service, and prices. In a 1933 Standard Price List he advertised that "The Spartan brand of wagon and carriage woodstock is without par." In 1939 he wrote, "For the past 43 years we have consistently maintained a superior quality of merchandise at fair, but attractive prices. At the same time we have also rendered to our customers prompt and efficient service ...." This vision of excellence was not just an empty slogan. In 1931 SSF was remarkably shipping 90% of its orders the same day received. And in 1943 the company was visited by the largest delegation of government officials to ever visit Sparta. Fifteen officials from the US Lend-Lease Division, War Production Board, and US Treasury Department held a clinic and studied the company's manufacturing methods to learn why it was the only company in the nation to have a perfect inspection record during the war. The group concluded that careful selection of materials, modern production methods, and rigid inspection of the finished products were the major factors leading to its superior quality. This study gave an objective, outside validation that the Spartan brand was indeed without par (equal) after its first 47 years of operation.

In 1945, JR Tubb's two sons returned home from the war to work at SSF. The owners thought it wise to expand into two new operations - Sparta Planing Mill, Inc. and Cumberland Manufacturing Company. SSF was incorporated again in 1946.

In 1946 JR Tubb Jr turned over the active management of SSF to his sons, JR Tubb III as vice-president, and Stanton D Tubb as secretary and treasurer. Owners that year were JR Tubb Jr, JR Tubb III, Stanton D Tubb, Pinkie (Ruth Rhea Tubb) Hill, Mary Willie (Tubb) Smith, and JK Keisling. Stanton D Tubb would later leave SSF in 1950 to become president of Tubb & Hill Oil Co. with his brother-in-law, Wayman Hill.

JR Tubb Jr died five years later in 1951 at the age of 56. He accomplished many things in his short life. He started several businesses, served on numerous company boards and in many associations, was an alderman and mayor of Sparta, and a member of the church of Christ. He also succeeded, in turbulent times, in passing SSF to the next generation.

James Richardson Tubb III (1946-1974)

JR Tubb III would face many problems in this risky transition period. He would not be able to draw upon the advice of his dad for very long. One of his first challenges came in 1946 when the company fought and defeated a union organization drive by a vote of 29-7. This experience left an impression upon the young JR Tubb III. He later introduced new practices and employee benefits that created a unique family atmosphere and made SSF one of this area's most attractive places of employment.

The postwar economy was healthy for most companies, but not for spoke manufacturers. It was now clear that the golden years of spokes were coming to an end. Within two more decades the manufacture of spokes in Sparta would slowly decline and die. Sparta Spoke was feeling the strain more than ever before. In 1946 employment had to be cut in half from the previous year. In 1948 the spoke volume dropped 40% from the prior year.

At the same time that business was dropping like a rock, SSF learned that its downtown property would be reduced in order to provide the right-of-way for the construction through Sparta of the "Million Dollar Mile." The decision was made to relocate the company to a 54-acre farm south of Sparta. But what seemed like a curse proved to be a blessing. When the expensive and time-consuming move was completed in 1950, the company was in a better location away from downtown congestion and with ample space for future growth. An old factory had an opportunity for a new beginning. At the new site equipment was added and facilities redesigned to allow the company to serve new industries with new products. A 1912 wood-fired Walsh & Weidner boiler was installed and fed from the low-cost waste generated in manufacturing. SSF began manufacturing dowels, lumber, furniture dimension, and turnings.

To gain the additional woodworking capabilities required to prosper, some key acquisitions were made in the 1950s. In 1952, during the Korean War, the product line was expanded when Manchester Manufacturing Co. of McMinnville was purchased and the plow handle operation moved to Sparta. By 1953 sales began to increase once again. In 1959 Campbell & Dann Mfg. Co. in Tullahoma was bought to add solid wood bendings to SSF capabilities. Haskell Locke was transferred from Sparta to Tullahoma to run this very important operation.

From 1946-1960, TVs were the most popular product sold in America, and ownership of TV sets multiplied from seven thousand to 50 million. JR Tubb III capitalized on this trend and shaped SSF into a major supplier of TV cabinet stock to companies such as Admiral, RCA Victor, General Electric and Zenith. In the late 1960s, however, two sources of competition eventually reversed the growth in wood cabinets: plastic cabinets were substituted for wood and Japanese imports from companies like Sony started hitting American shores. By the early 1970s, as the Vietnam War was escalating, the TV cabinet business was disappearing.

The 1960s were a period of prosperity. JR Tubb III took steps to put systems in place to improve plant and overall company efficiency. George J McNew from Texas implemented a work method and incentive system to increase labor productivity. James Totherow of McMinnville designed an accounting, budgeting, and job costing system for better financial control of the company.

The 1970s saw SSF in search of an attractive market. By 1970 SSF was adding equipment and exploring the possibility of making kitchen cabinets, chipboard, fiberboard, or completely finished products. Gradually a decade-old relationship with a customer resulted in SSF becoming a major player in the director's chair market. From 1964 to 1989 director's chairs would go through the same stages of growth, maturity, and decline that earlier products had experienced.

In 1974 tragedy struck with JR Tubb IIIs premature death at the age of 56. His legacy was leading an old company out of a dying industry and into a new industry where there was hope of survival. Under his leadership employment grew from one company with 50 people to three companies with 150 people. He went the extra mile to provide attractive benefits to workers, such as a profit-sharing retirement plan. He personally delivered food baskets to retirees and their widows at Christmastime. In a 1970 speech, his management philosophy was apparent as he gave employees credit for giving customers "the quality product that they demand, the

service, and at a price they can afford to pay."

His brief life did not allow him to oversee the passing on of the company from his generation to the next. But his foresight and groundwork gave it a good chance of being successful.

John W Shaffield (1974-1981)John W Shaffield became president of SSF in 1974. He stepped into difficult circumstances due to the sudden death of JR Tubb III, an economic recession, growing stockholders unrest, and his not being a Tubb. For the first time in the history of the company a family member was not managing the company. But with his leadership experience he proved to be the right man at the right time.

John W Shaffield continued to expand SSF manufacturing capabilities to meet market demands for fully-machined parts. He often said that SSF could make about anything out of wood. These additional capabilities allowed SSF the flexibility to explore new product lines and markets. During the 1970s the company continued to grow into a major manufacturer of high volume, low margin director's chair components comprising over half of total shipments. SSF eventually made completed director's chairs by subcontracting the assembly, finishing and packaging operations.

Several unexpected hurdles were overcome during this period. A 1976 IRS revaluation of inventory put an unanticipated strain on cash flow for a decade. In 1979 an entire $50,000 order of uninsured grandfather clock parts was lost in a Mississippi flood. That year the top director's chair account, Gold Medal, built a plant in Baxter to make many of its own parts rather than to buy on the outside from companies like SSF. In 1980 inflation soared to 12% under the Carter administration. SSF passed on price increases that never seemed to keep up with inflating operating costs. But the company made the necessary adjustments and endured.

John W Shaffield brought a high level of professionalism to an old family business. His ability to handle conflict and work with people helped hold the company together during difficult times. He also coached JR Tubbs son and prepared him to manage the company. He retired from SSF at the end of 1981, but still remains active in Sparta.

Richard Leslie Tubb (1982-present)

R Les Tubb became president of SSF in 1982. A general recession and record high foreign

imports caused the wood products industry to decline 33% that first year. SSFs dominant product, director's chairs, had been targeted by low-cost foreign competitors. Over the next three years director's chair volume would drop from 51% to 16% of total sales. To survive SSF would again go through the costly process of reinventing itself.

In 1982 the principles of W Edwards Deming were applied to SSFs manufacturing processes. Deming after World War II had taught the Japanese how to build quality products. He believed that making higher quality products and services would increase productivity, reduce costs, and bring long-term business success. What had been proven to work in Japan would now be tested at SSF.

Several other steps were taken to find a way for SSF to successfully compete globally. In 1984 SSF began long-range strategic planning and placed its 6,500 acres of timberland under a management plan to accelerate saw timber yields. SSF acquired consulting assistance from the Southeastern Trade Adjustment Assistance Center, a U.S. Department of Commerce program designed to help American companies most severely harmed by imports. An individual incentive system was replaced by a group gain-sharing compensation system to support a teamwork spirit, quality and productivity improvement, and cost reduction. To build pride in workmanship "employees" were renamed "woodcrafters." Woodcrafters were trained in quality methods and statistical process control. Lumber inventories were simplified and many suppliers reduced to the few best performers. Machinery and buildings were updated and new systems created as the company made the transition from lower-end director's chairs to higher-end quality furniture components. By 1985 the company showed its first profit in five years. In 1986 the company introduced an industry-first 100% guarantee of quality parts on time. That same year SSF announced its first proprietary product, the Homecoming Rocker, to celebrate the state's Tennessee Homecoming '86.

But again the business was disrupted when, due to contrasting interests and needs, the stockholders elected to liquidate and distributing the assets of SSF in 1986. The business continued its normal operation while timberland and selected assets were sold. By 1987 assets were distributed to the families of JR Tubb III, Stanton D Tubb, Pinkie Hill, and Mary Willie Smith. In April of 1987 the three sons of JR Tubb III bought the three businesses through the financial arrangements of his trust and his wife, Ola Ann (Ross) Tubb. Stanton A Tubb bought Campbell & Dann Mfg. Co., James D Tubb bought Manchester Manufacturing Co., and R Les Tubb bought Sparta Spoke Factory.

R Les Tubb organized SSF as a sole proprietorship and continued to build upon the strategies begun earlier. It was a time of increasing industry turbulence, more global competition, accelerating computer and machine technology, and costly legislation due to environmental, safety, and health concerns. SSF was downsized, streamlined, and made more efficient. Just-in-time manufacturing cells were created, assembly and finishing capabilities added, and computer systems introduced. By 1996, the company's 100th year, the company was prospering as a leading manufacturer of custom hardwood furniture components for chairs, tables and desks.

Today SSF serves furniture manufacturers such as Chromcraft Revington, Steelcase, La-Z-Boy, and Styline. Its mission is "to be the most trusted supplier of quality custom hardwood components to fine furniture manufacturers." Its philosophy is "to manage the business by biblical principles; to invest in people and technology to be an innovative leader in the manufacture of quality custom hardwood components; and to seek the well-being of those it serves."

SSF has just been notified that it is a certified supplier of Steelcase, the largest furniture manufacturer in the world. Certification is only earned by a few good companies who have a proven track record of superior quality and service. The tradition continues.

Over a century of service

What is the secret of SSF's longevity?

First, principles. SSF has been guided by unchanging principles. In a continually changing world, a company must be steered by a compass of ageless principles, such as maintaining a superior quality of merchandise, prompt and efficient service, fair and attractive prices, and treating people by the Golden Rule.

Second, people. SSF has been blessed with good people. The abundant supplies of skilled woodcrafters from this area have always been SSF's true competitive advantage. Ed Coleman, supervisor of the spoke finishing department, worked for 48 years before taking a weeks vacation in 1946. Willie Cope, belt sander, was so proud of his workmanship that he always signed his name to his work. Wily Dulworth, clean up man, against clear instructions would start working an hour before "clocking in" because it took his aging body "a long time to warm up" and he occasionally had to "sit down and rest" during the day. He refused to be paid unless he was working at his very best. Lonnie Cantrell, maintenance man, became a local legend because

his creative "inventions" solved problems thought to be hopeless. Ernest White, yard manager, enjoyed properly "orienting" new workers by telling them to go find him a "lumber stretcher" to fix boards that were too short. Roger Wilson, lumber grader, is so accurate that his grades have never been overturned by a National Inspector. James Copeland, office manager, has now worked at SSF longer than anyone on the payroll - 43 years. As a bookkeeper who deals with sensitive information and large checks, he has always maintained the highest character and remained above reproach.

Third, products. SSF has been blessed with a vast supply of quality hardwoods from which to choose. Good products can only come from good raw materials. SSF has also provided products that customers desire and that serve a useful purpose in society. Since all products have life cycles they advance at different speeds through phases of growth, maturity, and decline. The company has been able to adapt to the ever-changing needs of the marketplace.

Fourth, processes. SSF has continually improved its manufacturing processes. "New today, obsolete tomorrow" is certainly true. Renewing processes as woodworking technology and customer needs change keeps an old company young and healthy. Methods of manufacturing must be designed to prevent problems upstream rather than correct them downstream. The old woodworker was right, "Measure once, cut twice; measure twice, cut once."

Fifth, profits. SSF has remained financially sound by wisely managing its profits. A company

must store up in the years of plenty for surviving the inevitable years of famine. Profit must also

be seen as a by-product, not as the product. Someone has wisely said that "profit is the applause

you get for satisfying your customers and creating a motivating environment for your people."

Sixth, providence. SSF has been blessed providentially. God is the source of all blessings,

including those that allowed SSF to exist for more than 100 years. The company will end when

it has served His purposes.

Seventh, perseverance. SSF has had to endure in the face of countless obstacles. Don Shula said,

"Success is not forever and failure is not fatal." A long-term company must be skilled at turning

stumbling blocks into stepping stones. A company must be optimistic about the future and say,

"when one door closes, another door will open."

Sparta Spoke has been served by and served Sparta, White County, Tennessee, the United States,

and the world for more than a century. In 2000 the time line of Sparta Spoke Factory will touch

its third century of history. May it be graced with a second century of service to society. May the

people of White County continue to set their watches by the old spoke factory steam whistle for

years to come.

Submitted by R. Les Tubb, Owner of Sparta Spoke Factory

409 Gillen Dr, Sparta, TN 38583

10 February 1999

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