The Coke Machine (44 page)
Authors: Michael Blanding
Page 18 company’s more recent official histories:
The Coca-Cola Company,
The Chronicle of Coca-Cola Since 1886
(Atlanta: The Coca-Cola Company, 1993); Coca-Cola Heritage,
www.coca-cola.com/heritage
.
The Coca-Cola Company,
The Chronicle of Coca-Cola Since 1886
(Atlanta: The Coca-Cola Company, 1993); Coca-Cola Heritage,
www.coca-cola.com/heritage
.
Page 18 coined by one of Pemberton’s partners:
Watters, 15; Pendergrast, 29; Allen, 28.
Watters, 15; Pendergrast, 29; Allen, 28.
Page 18 label for the syrup:
Charles Howard Candler,
Asa Griggs Candler, Coca-Cola & Emory College
(Atlanta: Higgins-McArthur, 1953), 10.
Charles Howard Candler,
Asa Griggs Candler, Coca-Cola & Emory College
(Atlanta: Higgins-McArthur, 1953), 10.
Page 18 just twenty-five gallons the first year:
Robinson testimony,
Koke
; The Coca-Cola Company, Annual Report to the Stockholders, 1923.
Robinson testimony,
Koke
; The Coca-Cola Company, Annual Report to the Stockholders, 1923.
Page 18 took to his bed with illness:
Pendergrast, 34.
Pendergrast, 34.
Page 19 neither drank nor smoked . . . scrap paper:
Kahn, 59.
Kahn, 59.
Page 19 mix up a single gallon:
Graham and Roberts, 55.
Graham and Roberts, 55.
Page 19 “more money to be made as a druggist”:
Graham and Roberts, 39.
Graham and Roberts, 39.
Page 19 Candler knew the real money . . . mysterious circumstances:
Pendergrast, 44-46.
Pendergrast, 44-46.
Page 19 the earliest records of the company burned:
“The Beginning of Bottled Coca-Cola as Told by Mr. S. C. Dobbs,” October 13, 1913.
“The Beginning of Bottled Coca-Cola as Told by Mr. S. C. Dobbs,” October 13, 1913.
Page 20 handing out tickets for free Cokes:
Allen, 29.
Allen, 29.
Page 20 Each soda fountain operator got:
Asa G. Candler to Warren Candler, Atlanta, April 10, 1888, reprinted in Candler,
Asa Griggs Candler, Coca-Cola & Emory College
.
Asa G. Candler to Warren Candler, Atlanta, April 10, 1888, reprinted in Candler,
Asa Griggs Candler, Coca-Cola & Emory College
.
Page 20 more than 100,000 drinks a year:
Pendergrast, 60.
Pendergrast, 60.
Page 20 Sales took off . . . 50,000 gallons:
The Coca-Cola Company, Annual Report, 1895.
The Coca-Cola Company, Annual Report, 1895.
Page 20 posting on Coke’s corporate website:
Phil Mooney, January 30, 2008, Coca-Cola Conversations: Did you know? 1886 vs. today,
http://www.coca-colaconversations.com/my_weblog/2008/01/did-you-know-18.html
.
Phil Mooney, January 30, 2008, Coca-Cola Conversations: Did you know? 1886 vs. today,
http://www.coca-colaconversations.com/my_weblog/2008/01/did-you-know-18.html
.
Page 20 early copy of the formula:
Pendergrast, 56; Mark Pendergrast, “Cocaine Information, Amount in Vin Mariani, French Wine Coca, Coca-Cola,” Pendergrast collection, Emory University.
Pendergrast, 56; Mark Pendergrast, “Cocaine Information, Amount in Vin Mariani, French Wine Coca, Coca-Cola,” Pendergrast collection, Emory University.
Page 20 Georgia Pharmaceutical Association in 1891:
“Analysis of Coca-Cola, Analysis No. 7265, Office of H. R. Slack, M.D., Ph.G.,” reprinted in
Coca-Cola, What Is It? What It Is
(The Coca-Cola Company, 1901).
“Analysis of Coca-Cola, Analysis No. 7265, Office of H. R. Slack, M.D., Ph.G.,” reprinted in
Coca-Cola, What Is It? What It Is
(The Coca-Cola Company, 1901).
Page 21 narcotic kick on his letterhead:
Constance L. Hays,
The Real Thing: Truth and Power at the Coca-Cola Company
(New York: Random House, 2004), 102.
Constance L. Hays,
The Real Thing: Truth and Power at the Coca-Cola Company
(New York: Random House, 2004), 102.
Page 21 Pamphlets he handed out to retailers:
Atlanta Constitution
, June 19, 1891.
Atlanta Constitution
, June 19, 1891.
Page 21 “a very small proportion”:
Asa G. Candler testimony,
Henry A. Rucker v. The Coca-Cola Company
, U.S. Circuit Court, District of Georgia, 52.
Asa G. Candler testimony,
Henry A. Rucker v. The Coca-Cola Company
, U.S. Circuit Court, District of Georgia, 52.
Page 21 wasn’t entirely removed:
Graham and Roberts, 19.
Graham and Roberts, 19.
Page 21 needed to raise at least $50,000:
Allen, 38.
Allen, 38.
Page 21 One of the very first corporations:
Joel Bakan,
The Corporation: The Pathological Pursuit of Profit and Power
(New York: Simon & Schuster, 2004), 8.
Joel Bakan,
The Corporation: The Pathological Pursuit of Profit and Power
(New York: Simon & Schuster, 2004), 8.
Page 22 “directors of such companies”:
Adam Smith,
An Inquiry into the Nature and Causes of the Wealth of Nations
(London: T. Nelson & Sons, 1895), 311.
Adam Smith,
An Inquiry into the Nature and Causes of the Wealth of Nations
(London: T. Nelson & Sons, 1895), 311.
Page 22 The corporation took off:
Bakan, 7.
Bakan, 7.
Page 22 more than three hundred:
Jack Beatty, ed.,
Colossus: How the Corporation Changed America
(New York: Broadway Books, 2001), 5.
Jack Beatty, ed.,
Colossus: How the Corporation Changed America
(New York: Broadway Books, 2001), 5.
Page 22 And unlike their British counterparts . . . beginning in the 1830s:
Beatty, 45-46.
Beatty, 45-46.
Page 22 No corporations were as successful:
Beatty, 103-112.
Beatty, 103-112.
Page 22 corporations were chartered by states . . . any purpose they desired:
Richard L. Grossman and Frank T. Adams, “Taking Care of Business: Citizenship and the Charter of Incorporation,” in Dean Ritz, ed.,
Defying Corporations, Defining Democracy
(New York: The Apex Press, 2001), 59-72.
Richard L. Grossman and Frank T. Adams, “Taking Care of Business: Citizenship and the Charter of Incorporation,” in Dean Ritz, ed.,
Defying Corporations, Defining Democracy
(New York: The Apex Press, 2001), 59-72.
Page 23 concept of “limited liability”:
Bakan, 11-13.
Bakan, 11-13.
Page 23 declared corporations to be virtual “persons”:
David C. Korten,
The Post-Corporate World: Life After Capitalism
(West Hartford, CT, and San Francisco: Kumarian Press and Berrett-Koehler, 1999), 184-186.
David C. Korten,
The Post-Corporate World: Life After Capitalism
(West Hartford, CT, and San Francisco: Kumarian Press and Berrett-Koehler, 1999), 184-186.
Page 23 And in 1880, the federal government . . . “as well as financially”:
Humphrey McQueen,
The Essence of Capitalism: The Origins of Our Future
(Montreal: Black Rose Books, 2003), 29.
Humphrey McQueen,
The Essence of Capitalism: The Origins of Our Future
(Montreal: Black Rose Books, 2003), 29.
Page 23 few “national” products:
Juliann Sivulka,
Soap, Sex, and Cigarettes: A Cultural History of American Advertising
(Belmont, CA: Wadsworth, 1998), 18-19.
Juliann Sivulka,
Soap, Sex, and Cigarettes: A Cultural History of American Advertising
(Belmont, CA: Wadsworth, 1998), 18-19.
Page 23 new markets in city department stores:
Sivulka, 93.
Sivulka, 93.
Page 23 power of corporations was made complete:
Bakan, 13-14.
Bakan, 13-14.
Page 23 falling from 2,653 to 269:
Sivulka, 93.
Sivulka, 93.
Page 23 companies that succeeded . . . quintessential example:
Richard Tedlow,
New and Improved: The Story of Mass Marketing in America
(New York: Basic Books, 1990), 4-6.
Richard Tedlow,
New and Improved: The Story of Mass Marketing in America
(New York: Basic Books, 1990), 4-6.
Page 23 incorporated the Coca-Cola Company:
Allen, 38-39; Pendergrast, 57-58.
Allen, 38-39; Pendergrast, 57-58.
Page 23 selling syrup wholesale . . . 400 percent profit:
Charles Howard Candler, “Thirty-three Years with Coca-Cola 1890-1923” (unpublished manuscript, 1929), 20.
Charles Howard Candler, “Thirty-three Years with Coca-Cola 1890-1923” (unpublished manuscript, 1929), 20.
Page 24 legions of salesmen:
Candler, “Thirty-three Years,” 16-19.
Candler, “Thirty-three Years,” 16-19.
Page 24 made only $12.50 a week:
Candler, “Thirty-three Years,” 33.
Candler, “Thirty-three Years,” 33.
Page 24 sold in all forty-four states . . . soon to follow:
Pendergrast, 61, 93.
Pendergrast, 61, 93.
Page 24 sleeping on a cot:
Allen, 67.
Allen, 67.
Page 24 drum up clients . . . solely on advertising:
Candler, “Thirty-three Years,” 139.
Candler, “Thirty-three Years,” 139.
Page 24 one-man pep squad:
Allen, 71-72.
Allen, 71-72.
Page 24 more than 250,000 gallons . . . over a million:
The Coca-Cola Company, Annual Report, 1923; Tedlow, p. 29.
The Coca-Cola Company, Annual Report, 1923; Tedlow, p. 29.
Page 24 $1.5 million in sales:
Tedlow, 29.
Tedlow, 29.
Page 24 In 1899, a Chattanooga lawyer . . . worked their territory:
Allen, 106-107, 109; Pendergrast, 69-71.
Allen, 106-107, 109; Pendergrast, 69-71.
Page 25 Sam Dobbs had been urging:
Allen, 68.
Allen, 68.
Page 25 Chero-Cola . . . Coca & Cola:
Roy W. Johnson, “Why 7,000 Imitations of Coca-Cola Are in the Copy Cat’s Graveyard,”
Sales Management
, January 9, 1926.
Roy W. Johnson, “Why 7,000 Imitations of Coca-Cola Are in the Copy Cat’s Graveyard,”
Sales Management
, January 9, 1926.
Page 25 “Unscrupulous pirates”:
Tchudi, 34-35.
Tchudi, 34-35.
Page 25 “gourd vines in wheat fields”:
Charles Howard Candler,
Asa Griggs Candler
(Atlanta: Emory University, 1950), 144.
Charles Howard Candler,
Asa Griggs Candler
(Atlanta: Emory University, 1950), 144.
Page 25 “the most beautiful sight we see”. . . “a political parasite”:
Pendergrast, 96, 125.
Pendergrast, 96, 125.
Page 25 nascent Progressive movement:
Beatty, 141-168.
Beatty, 141-168.
Page 26 “I have spent my nights and my days”:
Harold Hirsch, “The Product Coca-Cola and a Method of Carrying on Business from a Legal Point of View,” speech at 1923 bottlers’ convention.
Harold Hirsch, “The Product Coca-Cola and a Method of Carrying on Business from a Legal Point of View,” speech at 1923 bottlers’ convention.
Page 26 J. C. Mayfield . . . Koke:
Pendergrast, 43.
Pendergrast, 43.
Page 26 Hirsch brought suit . . . when it didn’t:
Elton J. Buckley, “A Bottling Trade as well as a Trade Mark Decision of Great Importance,”
National Bottlers Gazette
, July 5, 1919, 83; Iver P. Cooper, “Unclean Hands and Unlawful Use in Commerce,”
Trademark Reporter
71 (1981), 38-58.
Elton J. Buckley, “A Bottling Trade as well as a Trade Mark Decision of Great Importance,”
National Bottlers Gazette
, July 5, 1919, 83; Iver P. Cooper, “Unclean Hands and Unlawful Use in Commerce,”
Trademark Reporter
71 (1981), 38-58.
Page 26 In a December 1920 ruling:
Opinion, December 6, 1920,
Koke.
Opinion, December 6, 1920,
Koke.
Page 27 tens of millions of gallons . . . $4 million:
The Coca-Cola Company Annual Report, 1922; Tedlow, 29.
The Coca-Cola Company Annual Report, 1922; Tedlow, 29.
Page 27 Candler bought up skyscrapers:
Candler,
Asa Griggs Candler
, 262-263.
Candler,
Asa Griggs Candler
, 262-263.
Page 27 depression got the best of him:
Pendergrast, 93-95.
Pendergrast, 93-95.
Page 27 eccentric drunk, who kept a menagerie:
Kahn, 60.
Kahn, 60.
Page 27 lacked his father’s vision:
Allen, 79-80.
Allen, 79-80.
Page 27 suffered a nervous breakdown:
Pendergrast, 97.
Pendergrast, 97.
Page 28 treated Coca-Cola as his personal piggybank:
Candler,
Asa Griggs Candler
, 145.
Candler,
Asa Griggs Candler
, 145.
Page 28 Progressive changes . . . profits to investors:
Candler,
Asa Griggs Candler
, 266.
Candler,
Asa Griggs Candler
, 266.
Page 28 “forced liquidation” . . . “he was ready”:
Candler,
Asa Griggs Candler
, 146.
Candler,
Asa Griggs Candler
, 146.
Page 28 contribution of $1 million:
Asa Candler to Warren Candler, July 16, 1914, reprinted in Candler,
Asa Griggs Candler
, 398.
Asa Candler to Warren Candler, July 16, 1914, reprinted in Candler,
Asa Griggs Candler
, 398.
Page 28 first of an eventual $8 million:
The Emory Alumnus
27, no. 10 (December 1951), 3.
The Emory Alumnus
27, no. 10 (December 1951), 3.
Page 28 mortgaged his own fortune:
Candler,
Asa Griggs Candler
, 309-320.
Candler,
Asa Griggs Candler
, 309-320.
Page 29 raising water rates . . . urged rich citizens:
Pendergrast, 125-126.
Pendergrast, 125-126.
Page 29 Howard was a lackluster president:
Pendergrast, 126-127.
Pendergrast, 126-127.
Page 29 head of the Atlanta Chamber . . . take over the company now:
Allen, 91.
Allen, 91.
Page 29 His occupation was to make money:
Tedlow, 56.
Tedlow, 56.
Page 29 breaking into a rival’s office:
Allen, 92-94.
Allen, 92-94.
Page 29 strapping $2 million in bonds to himself:
Dietz, 97.
Dietz, 97.
Page 29 secured signatures . . . $10 million in stock:
Allen, 95-97; Pendergrast, 130.
Allen, 95-97; Pendergrast, 130.
Page 29 largest financial transaction:
Kahn, 61.
Kahn, 61.
Page 29 Not one of the children said a word:
Candler,
Asa Griggs Candler
, 184.
Candler,
Asa Griggs Candler
, 184.
Page 29 syndicate of three banks . . . three-man Voting Trust:
Allen, 97-99; Pendergrast, 131.
Allen, 97-99; Pendergrast, 131.
Page 30 nearly 250 bottling plants . . . more than 1,000:
The Coca-Cola Company, “Bottling Plants, 1886-1940,” Records of The Coca-Cola Co.; Tedlow, p. 44.
The Coca-Cola Company, “Bottling Plants, 1886-1940,” Records of The Coca-Cola Co.; Tedlow, p. 44.
Page 30 price of sugar, which skyrocketed:
Allen 104; Pendergrast, 127, 139.
Allen 104; Pendergrast, 127, 139.
Page 30 “parent bottlers” . . . $1.20 a gallon:
Allen, 107-109.
Allen, 107-109.
Page 30 “contracts at will”:
Pendergrast, 136.
Pendergrast, 136.
Page 31 bottlers countered with a sliding scale:
Allen, 114.
Allen, 114.
Page 31 The bottlers sued:
Allen, 116.
Allen, 116.
Page 31 leeches . . . pocketed $5 million:
Pendergrast, 138; Allen, 117.
Pendergrast, 138; Allen, 117.
Page 31 forced Dobbs to resign:
Pendergrast, 139; Allen, 119-120.
Pendergrast, 139; Allen, 119-120.
Page 31 verdict in the bottler case:
Pendergrast, 140-141.
Pendergrast, 140-141.
Page 31 offered a compromise:
Bottler agreement amendment, January 6, 1920, exhibit,
The Coca-Cola Bottling Co. v. The Coca-Cola Company,
U.S. District Court for the District of Delaware, 1920.
Bottler agreement amendment, January 6, 1920, exhibit,
The Coca-Cola Bottling Co. v. The Coca-Cola Company,
U.S. District Court for the District of Delaware, 1920.
Page 31 take another sixty-five years:
Hays, 24.
Hays, 24.
Page 31 back above $40:
Allen, 138.
Allen, 138.
Page 31 to $24 million by 1923:
The Coca-Cola Company, Annual Report, 1924.
The Coca-Cola Company, Annual Report, 1924.
Page 32 “They sold out a big share”:
Candler,
Asa Griggs Candler
, 185.
Candler,
Asa Griggs Candler
, 185.
Page 32 “I sometimes think that once”:
Pendergrast, 132.
Pendergrast, 132.
Page 32 “The syrup of life by now”:
Watters, 109.
Watters, 109.
Page 32 scandalized Atlanta society:
Pendergrast, 132; Allen, 152.
Pendergrast, 132; Allen, 152.
Page 32 “Everybody is dead but me”:
Asa Candler testimony,
My-Coca Company v. Baltimore Process Company
, 1924.
Asa Candler testimony,
My-Coca Company v. Baltimore Process Company
, 1924.
Page 32 dying alone in a New York City hotel room:
Pendergrast, 133.
Pendergrast, 133.
Page 32 millions of dollars a year:
The Coca-Cola Company, Annual Report, 1929.
CHAPTER 2. BUILDING THE BRANDThe Coca-Cola Company, Annual Report, 1929.
Page 36 “a woman with three breasts”:
E. S. Turner,
The Shocking History of Advertising!
(New York: E. P. Dutton, 1953), 21-23.
E. S. Turner,
The Shocking History of Advertising!
(New York: E. P. Dutton, 1953), 21-23.
Page 36 the first serious ads . . . runaway slaves:
Sivulka, 7, 12.
Sivulka, 7, 12.
Page 36 wine, wigs, and perfumes:
Turner, 70-71.
Turner, 70-71.
Page 36 first advertising agency . . . succeed on its own merit:
Stephen Fox,
Mirror Makers: A History of American Advertising and Its Creators
(Urbana and Chicago: University of Illinois Press, 1997), 14-15.
Stephen Fox,
Mirror Makers: A History of American Advertising and Its Creators
(Urbana and Chicago: University of Illinois Press, 1997), 14-15.
Page 36 first industry to throw good taste . . . collectible trade cards:
Bingham, 117-124, 129-132.
Bingham, 117-124, 129-132.
Page 36 “step a mile into the open country”:
Young, 122.
Young, 122.
Page 36 One enterprising laxative maker . . . U.S. Government turned him down:
David W. Dunlap, “Miss Liberty’s Scrapbook,”
New York Times
, May 18, 1986; Zach Nauth, “Some Trying to Cash In on Lady Liberty,”
Los Angeles Times
, March 30, 1985.
David W. Dunlap, “Miss Liberty’s Scrapbook,”
New York Times
, May 18, 1986; Zach Nauth, “Some Trying to Cash In on Lady Liberty,”
Los Angeles Times
, March 30, 1985.
Page 37 new way to reach the masses:
Young, 38-39.
Young, 38-39.
Page 37 11 million medicine ads . . . name of a tablet or salve:
Bingham, 113-114.
Bingham, 113-114.
Page 37 “I can advertise dish water”:
Young, 101.
Young, 101.
Page 37 “The Army protects our country”:
Carson, 100.
Carson, 100.
Page 37 Hembold’s Extract of Buchu:
Sivulka, 39-40.
Sivulka, 39-40.
Page 37 half-robed girl entering or exiting a bath:
Carson, 15, 25, 33, 103; Bingham, 107, color insert 39-40.
Carson, 15, 25, 33, 103; Bingham, 107, color insert 39-40.
Page 37 “The greatest advertising men of my day”:
Turner, 138-139.
Turner, 138-139.
Page 37 necessity for products sold nationally:
Turner, 170-171; Jeffrey Schrank,
Snap, Crackle, and Popular Taste: The Illusion of Free Choice in America
(New York: Dell, 1997), 109-110.
Turner, 170-171; Jeffrey Schrank,
Snap, Crackle, and Popular Taste: The Illusion of Free Choice in America
(New York: Dell, 1997), 109-110.
Page 37 concept of a “brand”:
Sivulka, 48.
Sivulka, 48.
Page 37 from mere middlemen to full-stop shops:
Fox, 13.
Fox, 13.
Page 38 developing cloying catchphrases:
Turner, 110-111.
Turner, 110-111.
Page 38 “How really different was this product”:
Tedlow, 27.
Tedlow, 27.
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