Stockton/West/Burkhart, Inc - Advertising Company

written by C. Thomas Martin,  1982

Introduction:

This capsule history of Stockton, West, Burkhart Inc. from its inception in 1936 until 1969 is the story of those who started the company and of some who were important in its growth.  To me, SWB became almost a part of my family - demanding equal time on many occasions.

I hope it is viewed as a tribute to an impressive number of clients and a dedicated group of employees - without them there would have been no creative opportunities...no challenges, no glow of satisfaction from the acclaim of professional peers for a job well done.

The temptation to tell the behind the scenes story of the numerous innovative marketing plans...the award-winning advertisements...the television "firsts" we produced, is difficult to resist.

So, with a desire to be brief and objective, I apologize for any slight or oversight my view of SWB might be perceived.

Background:

One of Cincinnati's largest and best known agencies in the 1930's was the Ralph H. Jones Co.  This agency was formed from the art studio partnership of Ralph H. Jones and Eric Stockton, dating back to 1920.

Eric Stockton was a creative, talented writer, a recognized cartoonist and Art Director.  Ralph Jones was a photo retoucher.  As they grew and added retouchers and artists, Jones did less retouching and became the business representative.  Stockton devoted his time to creative writing and art directing.  By 1926, Jones and Stockton, operating as a complete advertising agency had incorporated as a company with Jones holding the majority of stock.

Dissension developed and in 1936 Eric Stockton split with Jones and with West and Burkhart, also at Jones, initiated a new advertising agency.

Beginning of the Company:

From this background emerged Stockton, West, Burkhart Inc. and a new concept for agency management.

This new concept was the brain-child of William Z. Burkhart.  His idea was to establish an agency around Division Directors as the entrepreneurs, rather than the Stockholders and to pay the Division head a percentage of the 15% earned by the company.  The head of a Division would receive a minimum guaranteed salary and all direct expenses he incurred would be charged against his budget.  If there was a profit it became his bonus.  If there was a loss, it would be temporarily absorbed by the agency.  By working hard and not incurring any unnecessary expenses the Division head profited.  The idea was to use the Division heads as "shock absorbers".  The company might not make a great amount of money, but its losses wouldn't be great either.  The Division Director was the winner or loser since each was theoretically in business for himself.

There would be a limited number of Divisions with separate departments added if considered necessary.  Initially the Divisions were Creative. Contact, Management and Research.  Burkhart used as a basis for a fair percentage for each Division the percentages arrived at by successfully run agencies compiled by the 4 A's, (The American Association of Advertising Agencies).

The company name was in the following order because:

Eric W. Stockton was unquestionably the best known.  Highly respected and recognized for his ideas and creative ability, he also invested the most money.

Ranald S. West while relatively unknown in advertising was a popular Cincinnatian, a graduate of the University of Cincinnati and its College of Law.  On campus he had a dance band of his own and was active on the student publication.

William Z. Burkhart came from Chicago and was the least known in Cincinnati.  A graduate of Northwestern University he had been a sales representative for Curtis Publishing Company before joining the Ralph H. Jones Company as an account executive and research man.

Today, Jane Distler's name would have been included.  As Stockton's assistant at Jones, she knew agency operations better than anyone and was a stockholder.  No doubt she was excluded because women generally were not a part of top management at that time.

In addition to the principals named, three additional people from Jones joined the agency: May Bruggeman, secretary and general office clerk; Richard Theins, a young artist trainee; and Ted Breland, a black man, loyal to Stockton who had given him the opportunity to be mail, shipping and errand clerk.

In August 1936 Stockton, West, Burkhart Inc. leased offices on the 9th floor of the First National Bank Building, furnished it with used furniture and with great spirit, started in business.

Their First Accounts were:

The Estate Stove Company - makers of ranges and space heaters.  A space heater designed to look as attractive as the Victrola and called the Heatrola was the principal product advertised.  Radio and national magazines were the major media used.

The Balwin Piano Company - builders of a prestige piano whose only competition was the Steinway.

The United States Shoe Corporation - had, through a consolidation and reorganization, a new group of investors headed by Joseph S. Stern.  They decided to advertise and promote only one brand, Red Cross Shoes.

The Drackett Company - makers of Windex, a nationally distributed window cleaner.

The Cincinnati Gas and Electric Company - Eric Stockton had just finished a series of Editorial Format ads, refuting political claims that C. G. & E. should be municipally owned.  The success of these ads was demonstrated at the polls.  The public ownership idea failed.

With this group of accounts, there was plenty to do and the creative load fell on Stockton's shoulders.  He engaged Thomas Martin to produce layouts and art from his own studio on a free-lance basis.  Martin had been doing the artwork for Drano and Windex advertisements for Stockton when he was at Jones and they worked well together.

For Mechanical Production, Stockton hired a young production manager from J. Walter Thompson in Chicago.

West was Stockton's right-hand copy man, especially with radio copy.  So for the time being, the art, copy and production departments were under control.

Burkhart developed the marketing plans in addition to client contact and internal management.  For assistance in contact, Charles H. Butler was hired.  Butler, a graduate of the University of Cincinnati was working in the Advertising department of Procter and Gamble.  (After several years he left SWB and joined U.S. Shoe.  He became Vice President and later a Director),

For assistance in Research, John Burgoyne was hired to help with statistical and media analysis.  (He left SWB after a few years to start his own Research Co.).

Jane Distler was "Lady Friday" for all.  In addition to being Bookkeeper, she was General Office Manager, Payroll Clerk and Traffic Manager.  Additional people were soon hired to assist her.

As the business grew, more and more work was free-lanced out to Martin.  His studio was only a block away but it was not the ideal arrangement for either one.  Martin was servicing other clients and SWB was requiring almost all of his time.  SWB, gaining momentum, offered Martin the position of Art Director with the prospect of being a Division Head.  The entrepreneurial concept with its percentage method of remuneration appealed to him.  He closed his studio and joined the agency in August, 1937.  Soon after, he hired Robert W. Helmich as his assistant.

All worked untiringly as a team in developing the agency, but Burkhart was the administrative leader.  He was the planner, convinced that his idea of Division Directors as business owners and initiated operating procedures for SWB.  He was Treasurer and Chief Executive.

Stockton devoted his efforts to the creation of advertising and was content to let Burkhart run the show.  He was coaching West and Martin in sales producing advertising.  Most copy was initially the product of Stockton, but that gradually changed and West became Division Director of Copy.

When Martin joined the agency, Stockton transferred the Production Department to him.  That made Martin responsible for layout, art and final production.  This also made him responsible for estimating costs and justifying the billing to the client.  Having successfully conducted a business of his own, he knew the importance of billing and making a profit.  He became Division Director of Art & Production.

Now with West Director of Copy and Martin Director of Art and Production, Stockton devoted more of his time to getting new business.  He soon added Felsenbrau Beer, Gibson Wine, Deatsville Distillery, makers of T. W. Samuels and Old Jordan whiskeys.  Burkhart added Clark Grave Vault Company and Sperti, makers of Sun Lamps and Bio-Dyne Ointment.

In a few short years SWB was not just a new advertising agency, it was now considered by many, the best agency in town...recognized for its solid marketing plans and for its outstanding creative advertising.

More people were added to Burkhart's Contact Division and special note must be made here about the hiring of Joseph Nelson, Jr.  His father was Vice President and General Manager of the Andrew Jergens Co., a large budget national advertiser.  Their advertising agency, Lennon and Mitchell in New York, had offered Nelson a job.  Because Nelson had just graduated from college and had no experience, his father believed his son would gain more experience working at SWB.

Burkhart was a personal friend of Nelson Senior and agreed to hire Nelson Jr., as a trainee in Contact.

Shortly thereafter, several new products Jergens had developed, were marketed through SWB with substantial budgets.  This gave Nelson a launching pad that would prove to be an advantage and later a disadvantage to SWB. (More about this later).

Then came Pearl Harbor and many of the personnel in all departments were drafted, including Helmich and Nelson.  All draft boards listed Advertising non-essential to the war effort.

West and Martin however were not called to service and were able to create award winning ads for War Bond Promotions and other patriotic endeavors.  Clients who were involved in defense work and wanted their war efforts and names recognized, continued to advertise.

Red Cross Shoe Company presented a new and distinct challenge for the agency.  Unhampered in production by the war, they had a brand name that was the target of attention...and was threatened with extinction by the American Red Cross.  The American Red Cross wanted the exclusive use of the Red Cross name and seized this opportunity to propose legal action to guarantee its exclusivity.

Unknown to almost everyone except the lawyers, the U.S. Shoe Corporation had advertised the Red Cross Shoe brand years before the American Red Cross was founded.  But, the agency and U.S. Shoe knew that this was not the time for legal confrontation.  Public sympathy would support the American Red Cross.

The agency created a visually unique way to display a name change to Gold Cross Shoes.  U.S. Shoe took the initiative in advertising this important change in name, with an increase in their advertising budget.

Some clients, however, ceased advertising entirely, but due to the Division system the losses to SWB were primarily in growth.  The Division Directors took the major blow.

At the conclusion of World War II, Helmich, Nelson and some others returned.  SWB was once again ready for expansion.  More space...more accounts were added and more people were hired in all Divisions.

Burkhart decided now was the time to fully establish the Research Division and hired Robert McDowell to take the leadership and responsibility for the Research, Media and Library Departments, under the original Division remuneration plan.

When the Felsenbrau Brewery went out of business, Stockton acquired the Hudepohl account.  He also added Merill, makers of Cepacol and other drug products.

At this time a new medium, Television was developing.  Fortunately for SWB, Cincinnati, due to the Crosley Corporation was a pioneer city in this rapidly growing industry.  Crosley Broadcasting Company which gave them a two-fold interest in promoting television.  Other local broadcasting stations quickly joined in.

Television however was a whole new ballgame.  Due to technical limitations, film could not be used and tape recording had had not been developed, so all commercials had to be produced live in front of cameras.  The same cameras used to transmit the program.

This placed more emphasis on the Visual, the Art Division, than on Copy.  The stage set, lighting, background, everything seen could make or break the commercial.  The important question then was which Division should be responsible.  Art or Copy or should there be an additional division to handle this new medium?

Burkhart recognized this and knew that all percentages would have to be re-evaluated to make possible an additional division.  In the meantime - "the show must go on" there were clients who should be using this new and powerful medium and commercials that needed to be produced.  Martin agreed to accept full responsibility for all television commercials and work out the percentage question later.  But it also meant that any copy adapted or developed for television by the Copy Division would be paid out of the Art Division budget on a time spent basis.  A bit unwieldy, but television was a learning experience so a decision on an additional division was postponed.  All agreed however, programs were a time-buying fuction of the Media Department.

The fact that there were excellent television facilities in Cincinnati was a plus for SWB.  Local programs were easily shown to clients and SWB could work with the stations in rehearsing and producing commercials.  SWB quickly acquired the experience necessary.

With the increase of clients, personnel and additional departments, Burkhart devoted more time to developing procedures which he believed were the keys to successful management.  While there was no dispute regarding the importance of procedures, Burkhart did tend to overemphasize them.  Stockton's spark and idea spontaniety seemed to be dulled by all this.  He was successful in bringing business in, in his own way, but was now expected to follow the step by step procedure Burkhart initiated for all Contact men.  Stockton found this too frustrating and decided to ease up on his involvement and perhaps retire.  Then came a shattering blow to SWB - Eric Stockton died suddenly from a massive heart attack in May 1952.  His death was mourned by all our clients, civic leaders and everyone who knew him.  As a tribute to his self-effacing and unselfish contributions to the agency, no client losses resulted from his death.

Martin, who had purchased stock earlier, now purchased additional shares from Stockton's holdings and so did West and Nelson.

Jan Distler chose this time to retire and McDowell purchased her stock.  Burkhart however was the major stockholder.  West and Martin each held the same amount of stock and Nelson and McDowell the least.

With the Jergens business and for his aid in adding the Cincinnati Telephone Company account, plus the Gibson Greeting Card, Nelson was given more responsibility and some of Stockton's accounts.  Nelson was made head of a second Contact Division and Burkhart relinquished all percentages on those accounts to Nelson.

Burkhart, in addition to his Management and Treasurer duties, retained account supervision on three of the largest accounts - Marathon Oil, U.S. Shoe and Gruen Watch Company.  The Gruen account was acquired largely through the recognition SWB received for advertising creativity for U.S. Shoe.  Gruen, with national distribution was perfect for television.  The impact of this new medium on their dealers plus the opportunity to glamourize the beauty of the watches to comsumers, made SWB's recommendation for a network television show, immediately accepted.  Gruen was launched on network television with the program, "Blind Date" starring Arlene Francis.

Stockton, West, Burkhart now opened a New York office at 51st and Madison and employed a man with theatrical and programming experience.  A television production man was added to give the needed expertise to produce commercials and a secretary to assist both men.  The office space and secretary were part of general office overhead.  The Program Director was budgeted to Media.  The TV Production Director, to the Art Division.  Martin was given managerial responsibility for all to simplify control.

SWB was now well established in television programming and commercial production.  For U.S. Shoe we produced the first ever T.V. Network promotion.  An hour long spectacular - a "Tribute to Richard Rogers", starring Mary Martin and other stars from Rogers' musical hits on Broadway.  Six months later, we produced another T.V. promotion for U.S. Shoe featuring Irving Berlin in person and with current Broadway stars singing and dancing to his music.  For Gibson Greeting Card, we telecast the opening of the original Disneyland in Anaheim with a special two hour program.  The effects of these programs on the sales of both clients' products was also spectacular.  All creative work was done in Cincinnati and Television was now included in client marketing plans, when it was considered the appropriate medium.

As accounts grew in size and new accounts were added, it became obvious to Burkhart and Nelson that the Contact Division should again be expanded with another Division.  Chuck Standen was brought into the company to head this additional Division.  Standen was an important Account Manager for Tatham Laird Agency in Chicago.  The Division concept and method of remuneration made him enthusiastic about SWB.  He quickly acquired the Chun King and Fullham Fish accounts.  Both were high billing national advertisers.

After Standen joined the agency, Burkhart transferred account responsibilities on Marathon Oil and other accounts he handled to Standen, so he could devote more time to management and new business.  This meant shifting some personnel to Standen's Division and the hiring of additional employees.  One of the new men hired was Bert Schloemer, to assist him on the Chun King account.

SWB, busier than ever was expanding on all fronts.  Television technology advanced rapidly.  Film commercials could now be used and film programs were available.  This made it possible to buy spots and regional market programs.  SWB's Television Department was growing in importance and sales support.

A year later however, Marathon Oil reorganized their Advertising Department and the new Advertising Vice President decided to change agencies.  This was a serious loss to Stockton, West, Burkhart and due to the remuneration system, an important loss to Standen.  Chun King was also restless, they cancelled some advertising planned and along with Fullham Fish, eventually left SWB.  With these losses, Standen could not resist Tatham Laird's offer to return to Chicago.

Nelson took over the account responsibilities of Standen's remaining accounts and assigned Schloemer as Account Manager on Hudepohl.  The agency also closed the New York Office.

With Standen's resignation and reduction in personnel, the Division concept of renumeration was the "shock absorber" so the company suffered very little financial loss.

Burkhart devoted more time to developing management procedures.  Ten years earlier, through his foresight, the company initiated a profit sharing program whereby each employee, after three years with the company, would share an annual bonus of one-fourth of the company's profits before taxes.  This amount was entrusted to the Central Trust Co., to invest and administer.  The plan was to reward and encourage employees to stay with the company and to provide a substantial amount to the employee at retirement.

Because of the emphasis placed on retirement at age 65 by the government and followed by many companies, Burkhart considered it time to plan his retirement.  Martin therefore, began sharing more management duties and responsibilities and Nelson more responsibility for account development, new business and contact procedures.

In 1955, Burkhart sold his stock to the company and became Chairman.  Nelson was elected President, Martin, Executive Vice President and Treasurer.  West was made Senior Vice President, Creative Director and R. McDowell, Vice President of Research.  Shortly thereafter Burkhart resigned from the agency.

This shift in ownership meant very little in the day to day activities of each, with the exception of added responsibility for Martin and Nelson.  Of significance however was the unanimous agreement to abolish the Division compensation method of remuneration.  That concept assumed each division head would staff his division with sufficient manpower to anticipate growth.  In reality, this should be the responsibility of the officers of the company working together to decide where investments in manpower should be made...or subtracted.  The company and its stockholders collectively profit or lose.

The first year, under Nelson's presidency, no new accounts were added or lost.  All accounts were growing and wherever possible, operations were simplified and streamlined to make more profit for the company.  The Jergens account was growing but the bulk of their advertising was now handled by the robert Orr Agency in New York.  At this time, for reasons never disclosed, Andrew Jergens decided to pull out of the Orr agency and offered the entire Jergens advertising business to Nelson.  This was a sudden, seven million dollar account windfall that SWB was unprepared to handle immediately.  A further factor was Andrew Jergen's insistance that the account be handled in New York where he lived most of the year.  Since this change was the result of the personal disagreement with Robert Orr, the quick solution of SWB buying or merging with the Orr agency was out of the question.

Another solution was to open an office in New York and handle the work in Cincinnati while working out a solution, but this could only be done at the expense of other clients.  In fact, too much - too fast.

Nelson and Jergen's Advertising Vice President selected Cunningham and Walsh.  To merge SWB with Cunningham and Walsh did not offer sufficient advantages to West and Martin, so early in 1957, Nelson resigned, moved to New York and joined Cunningham and Walsh.  His stock was acquired by the company.

Martin then became President, Treasurer and Chief Executive of operations for SWB.  West became Chairman and along with the Creative Head, became directly involved in account supervision on Cincinnati Gas and Electric company, Central Trust and the Telephone Company.  McDowell was Vice President, Media and Research and Schloemer was named Senior Vice President, Contact.

U.S. Shoe Corporation was expanding with additional brands and due to the art and fashion nature of their business, more and more of Martin's time was on the supervision and art direction of this account, so a separate Contact group, under Martin's direction was developed to service this account.

Schloemer at this time was developing Hudepohl into a sizable account.  Through the agency's efforts, Hudepohl acquired the television rights to the Red's b aseball games.  Developing this account, setting up a special Hudepohl TV Network to cover their markets and the supervision of them, occupied most of Schloemer's time.  He also became a stockholder.

With the acquistion of the Frank Tea and Spice and other accounts, McDowell was moved to Contact and Leo McMullin was hired to replace him as head of Research and Media.

Many new accounts were added and as older accounts expanded so did all departments.  the agency stockholders, as well as all employees shared in the growth which continued for more than 11 years.

In late 1968, West for health reasons, wanted to reduce his responsibilities and to eventually sell his stock.  West and Martin, working successfully as a team and owning together 90% of all the stocks, decided to actively search for new owners - either in the agency - or outside with other agencies.  This fact prompted Schloemer to gain support within the agency from McDowell, Helmich, McMullin and Grant to buy all the stock held by West and Martin.

In March of 1969, Martin and West transferred their stock at an agreed-upon price to the new group.  In addition, West and Martin each also received an annual fee for three years, to help the new owners effect a smooth transition to a new Stockton, West, Burkhart.

In Conclusion

Eric W. Stockton died in May 1952

Ranald S. West at the end of his three year commitment, left SWB.  He now independently produces advertising for several clients of his own.

William Z. Burkhart after his retirement was active in the Society for the Advancement of Management as well as helping on many civic projects.  He died in May 1972.

C. Thomas Martin agreed at the end of three years to stay an additional year with the agency contributing creative assistance.  At present, he is an independent Creative Advertising Consultant.

Joseph D. Nelson died in a plane crash while on a business trip to Cincinnati in 1965.

Robert Helmich, now Vice President and Senior Art Director, is the only one from the beginning still with the agency.

* * *

Stockton, West, Burkhart after 1969 is left for other to tell.

List of SWB clients at one time or another through 1969.

Home | What's New | STORE | Black Residents | Research Info | Cincinnati Business' | Cincinnati Photos | Questions/Answers | Newspaper Articles | Favorite Links | z

Questions or problems regarding this web site should be directed to Greater Cincinnati Connections.
Copyright © 1999 Greater Cincinnati Connections. All rights reserved.
Last modified: 01/24/08.