The following pamphlet was written in 1990 at the
request of Farmers First Bank, where I was then employed. It was distributed to
schools and companies in the area, was handed out to customers and visitors to
the bank facilities, and sent by the marketing department to other interested
persons and organizations. In 2013 it was reprinted in the book “Lititz: Our
Community in Story” published as a joint effort of the Lititz Historical Foundation
and the Archives Committee of Lititz Moravian Congregation. Because neither the
pamphlet nor the book is now available, I’m posting it here. ~ Marian L. Shatto
A New Company Founded in Lititz
Soon after the turn of the century a group of local businessmen banded together to bring a new industry to the borough of Lititz. They secured a large lot just to the west of the first block of North Cedar Street, bounded by the railroad on the north, Eby's Mill on the east, and Lititz Springs Creek on the south. They drew plans and blueprints for a one-story brick and stone factory building, with a two story office annex. They advertised their plans to the people of Lititz and the surrounding communities, who willingly responded by subscribing to a bond issue to finance the construction of the buildings. Within a few months the initial goal of S 100,000 had been reached, and the Consumers Box Board and Paper Company was chartered as a Pennsylvania corporation on 8 April 1905.
The original shareholders included P. J. Roebuck, E. E. Bruner, E. E. Weaver, G. A. Hoffman, A. L. Lane, C. B. Risser, and H. C. Seldomridge, all of whom comprised the Board of Directors, with Roebuck as president and Bruner as secretary, plus H. H. Gingrich, J. F. Stoner, and S. F. Glatfelter. All but Bruner and Glatfelter were Lititz residents.
Henry J. Pierson Plays an Important Role
While the announced intention of the Consumers Company was to manufacture both paper and boxboard from recycled paper boxes, newspapers, rags, and other waste materials, the expense of the machinery and processing required for the latter proved to be prohibitive. In 1909, four years after its chartering, Consumers was running a struggling paper mill which employed just a few dozen persons. That year saw the beginning of real growth and prosperity for the company, however, as Henry J. Pierson was brought in from Lambertville, New Jersey, to manage the operation. Already a successful manager of mills in Lambertville, Raubsville, Pennsylvania; and Penn Van, New York, Pierson gave to Consumers Company the benefit of his many years of experience. Under his guidance the business grew to become one of the leading industries in Lititz, running round-the-clock shifts in order to meet the demand for its products.
In 1915 the Consumers Company acquired the Eden Paper Mill, and the business continued to expand through the following decade. H.J. Pierson gained prominence as its astute leader, moving from the position of manager to that of President of the Board of Directors and principal owner of the concern. He also assumed the title of Vice President of The Farmers National Bank of Lititz, a predecessor to Farmers First Bank.
A New Owner: Expansion
The announcement that Pierson had sold the paper mill to the United States Envelope Co. came in early November 1929, just a few months before his election to the Presidency of Farmers National Bank. At the same time U. S. Envelope purchased additional land at the corner of North Lane and Cedar Street and embarked on a major expansion project. The mill, now known as the Morgan Paper Company Division of U. S. Envelope Co., was under construction throughout the winter and spring of 1930. Wickersham of Lancaster, still a familiar name in construction, was the general contractor for the project, with Elmer Hensel as foreman. Fill came from near the intersection of Route 501 and Newport Road, where a cut in the hillside can still be seen.
Designed to be as comfortable and safe as construction technology then allowed, it featured a saw tooth roof with north facing skylights, a large elevator for moving paper from one floor to another, and an automatic sprinkler system. The center part of each roof window could be opened so that "on the hottest summer day the workers will be afforded all of the daylight possible and any air that is stirring without the discomfort of being bathed in hot sunlight." A false parapet covering the saw tooth roofline was part of the original design, and it is only with the recent renovation that this distinctive feature has been visible to the outside observer. Machinery and equipment for the new plant were moved to Lititz from Morgan's Springfield, Massachusetts operation, and the work force was increased to one hundred twenty-five. Business continued to improve steadily. By 1941 there were one hundred sixty-nine employees, making envelopes as well as various types of tissue paper. Morgan Paper Company, Inc., became an independent corporation, and in 1956, while Lititz celebrated its bicentennial, Morgan could proudly proclaim that it was celebrating its eightieth anniversary. The mill at that time converted approximately eight thousand tons of paper annually into paper towels, paper napkins, and toilet paper.
Inside the paper mill
Another thirteen years of successful manufacturing, under the leadership of Harry B. Gorfine, President and owner, followed the anniversary celebration. Then in October of 1969 announcement was made that Gorfine had sold the business to a new corporation to be called Morgan Mills, Inc., headed by Robert Zion, President and CEO. All one hundred fifty employees were retained, with the intention of expanding both volume and product lines.
Environmental Impact Crisis and Shut-Down
Both local and world events, however, were moving to undermine the stability and profitability of the paper mill. Pollution of the Lititz Springs Creek, which flows under the building, had become a major problem, and strengthened environmental regulations demanded that it be corrected. Paper pulp in the stream between Cedar and Locust Streets was knee deep, and the residents could determine the color of toilet paper being manufactured that day simply by looking at the water. Then the oil embargo of 1973 caused fuel oil prices to double and double again. An increase in the cost of raw materials coupled with a shortage of waste paper added to the growing troubles. During ten months of operation in 1973 the mill suffered $440,000 in operating losses.
It seemed inevitable that Morgan Mills, by then a subsidiary of Media General, Inc., of Richmond, Virginia, would have to close its doors. About 160 employees lost their jobs when the shut-down came on 31 December 1973.
After eighteen months of silence there was again a stir of activity at the giant factory on North Cedar Street. Stanley G. Preston, owner of a New York City marketing firm, announced that he was in the process of purchasing the plant and hoped to have it running again by August of 1975. He had the experience necessary, having worked with his father, who had owned and operated a series of small paper mills. He had the interest and desire to move to Lititz and to revive the derelict facility. And, thanks to a $400,000 loan approved by the Lancaster Industrial Development Authority, he had the means for funding the project.
Settlement was held on Thursday, 7 August 1975, and by the following week twenty former employees were back at work in what was now to be called the "Lititz Paper Mill." The operation expected to buy pulp from Maine and from Canada and to convert it into paper products, primarily toilet tissue. As a condition of the sale, Preston had guaranteed that nothing would be dumped into the stream, thereby addressing the concerns of those who feared more problems with pollution.
Under the supervision of plant manager David Haronois, brought in from the Marcal Company of Philadelphia, production was scheduled to begin on 1 September.
The End of an Industry
Then tragedy- just a week before the starting date, Stanley Preston died of a stroke in Mt. Sinai Hospital, New York. He was only fifty years of age. Manager Haronois opened the mill on schedule with but a skeleton crew, while corporation officials sought a buyer. Two months later the plant changed hands once again, this time to Allen H. Miller , president of Cellu Products, Inc., of Patterson, North Carolina. Miller had been associated with Preston through a paper brokerage firm owned by the latter, and he renamed the facility "Preston Mills" in honor of his late colleague. The operator of paper converting operations in Oaks, Pennsylvania, and East Hartford, Connecticut, Miller proceeded with Preston's intention to produce primarily toilet tissue and facial tissue.
The revival of operations was short lived, however, and by the early 1980s it was obvious that papermaking was no longer a viable industry for Lititz. In January 1984 Cellu Products was purchased by Sealed Air, Inc., a company which manufactures plastic bubble packaging. In March of the same year Sealed Air sold the Lititz plant to Cellu Tissue Corp., a company unrelated to Cellu Products. This proved to be the final transfer of the building as a paper mill, for Cellu Tissue soon began dismantling the machinery and selling off equipment piece by piece. The largest machine in the factory, broken down into sections, filled fourteen containers as it departed for a new home in a mill in Guatemala. The empty plant, stripped of machinery and meaning, showed every sign of becoming a major eyesore in downtown Lititz.
Enter Farmers First Bank
At about the same time that the paper mill was closing for good, however, Farmers First Bank was becoming aware that it had reached the limits of possible expansion at its present location. The financial institution which had employed six persons when Henry Pierson moved from owner of Consumers Box to President of The Farmers National Bank of Lititz now employed more than 300, at least half of whom worked in the Lititz offices. Desiring to continue its commitment to downtown Lititz, the bank began negotiations with Cellu Tissue, and the sale was concluded in April 1986. The architectural firm of Reese, Lower, Patrick & Scott Architects of Lancaster was engaged to develop the plans which would convert the sturdy brick factory into a modern banking facility. Landscape design, featuring improvement of the stream and creation of a park like atmosphere, was drawn by Derek, Edson & Associates of Lititz.
Demolition of the structurally unsound older portion of the building was started in March of 1987. With demolition complete, the construction phase of the project began in late 1987 and continued for nearly two years. The magnificent building which has now emerged was well worth the long wait. The north wing, housing executive offices and operational areas for Susquehanna Bancshares, Inc., is faced with dark green double-paned glass, which dramatically reflects the exposed saw tooth roofline of the brick portion of the building. The main factory floor has been transformed into an airy operations center, where more than a hundred bank employees carry on the daily task of administering thousands of deposit and loan accounts. A sheltered, glass-walled area has been provided for computers and proof machines. Offices, conference rooms, and a corner for the cheerful lunchroom complete this area of the building.
Separated from the open operational area, and located in the southern-most part of the building along North Lane, is the Trust Department. Reserved parking near the entrance, outside ramps, and comfortable private offices indicate that this area has been designed with the special needs of Trust customers in mind.
On-Going Concerns for the Environment
Landscape design has been given just as much attention as has that of the building itself. Care of the Lititz Springs Creek, also known as Carter's Run, has been a concern of Lititz residents for nearly as long as the town has been in existence. The first record of an improvement project comes from 1792, when a group of citizens by volunteer labor filled in much of the swamp which extended north of the stream, built a wall around the spring and a bridge across the creek, planted new trees, and for good measure added a bathhouse. Farmers accustomed to watering their stock at the spring objected to the changes, however. The trees died, and the spring area was allowed to relapse to a wild state.
The next organized attempt to beautify the spring began in 1835 and continued for the following five years until the basic design of the park as we know it had been completed. The stream now flowed through a walled channel away from the spring and eastward until it crossed under North Broad Street. As the years passed other property owners along the creek added to the walled section. An article in the Lititz Record of 25 August 1905 praised the Consumer Box Board and Paper Company for walling in the creek on their land, an action which it was felt would give refuse in the stream a better chance to flow off.
In recent years public discussion has centered around the idea of creating a strip of park along the length of the creek within Lititz Borough. The section included on the bank property now demonstrates how this can be done. The concrete cap which had been over the stream has been removed, and limestone retaining walls have been installed to prevent flooding. Armstrong maples, hemlocks, pin oaks, and other trees and bushes have been planted in "islands" throughout the building complex and parking lot areas. It remains to be seen how well the local mallard population will appreciate this enhancement of their habitat, but bank employees are already anticipating the delight of watching ducklings swim under the building during the summer months.
Multiple Connections between Mill and Bank
There have been several connections between the paper mill and Farmers Bank. As has already been noted, The Farmers National Bank of Lititz held the mortgage on the building during the early days of the operation. And the two institutions shared the talents of Henry J. Pierson as president. Sam Lane, one of Lititz's oldest residents and a daily visitor to the Farmers First lobby until illness confined him to his room at Audubon Villa, is the nephew of A. L. Lane, one of the first members of the board of directors, and the son of Samuel Erb Lane, a major investor in the paper mill at the time that Pierson was brought in. The two companies shared at least one other director in the person of Christian B. Risser, one of the founding shareholders of Consumers Company and a member of the bank board at the time that Pierson was elected president.
Box company director, P. J. Roebuck is another name familiar to present- day Lititz residents, thanks to the memorial fountain now located on the patio of the General Sutter Inn. Mrs. Ada Leed, who rescued the fountain from a scrap dealer and donated it to the Lititz Historical Foundation, is the widow of Jacob M. Leed, who sold to Farmers First the locker plant which has been in recent years the bank's operations center.
The move into the Mill Building by Farmers First Bank and Susquehanna Bancshares, Inc., personnel was begun in early November 1989 and nearly completed by Christmas of that year. The open concept allows employees from various departments to meet and work together more closely than had ever been possible before, moving us closer toward our goal of better and more efficient service to our customers. With a building which provides sufficient expansion room for the foreseeable future, Farmers First is pleased to have made this substantial commitment to downtown Lititz for the 1990s and into the twenty-first century.
Postscript (2023)
The Mill Building served Farmers First Bank, later rebranded Susquehanna Bank, and Susquehanna Bancshares, Inc. well for a number of years. Areas that had been left vacant and unimproved when the first departments occupied the building were transformed into more work spaces, offices, and conference rooms. A modern call center was added on the ground level. Hundreds of employees worked hard to provide excellent service to clients and bank staff alike. Then in November 2014 BB&T Corp. of North Carolina announced that it was purchasing Susquehanna Bancshares and moving all operations and corporate offices out of Lititz. The deal was completed during the second half of 2015, and the process of emptying the Mill Building began. As department after department was closed, and its employees relocated or let go, what had been a bustling enterprise for a quarter century became again a hollow shell. Most of the buildings on what had been the Susquehanna Bancshares campus were listed for sale. In June 2018 Penn Medicine Lancaster General Hospital purchased the Mill Building for $9 million and announced plans to move as many as 400 office workers to the facility after renovations were completed. While work was delayed for some time, the old paper mill is now once again occupied by workers serving the Lititz community and beyond.
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