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Temple - Inland 100 Years from Dream to Fortune 200

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Temple - Inland 100 Years from Dream to Fortune 200 fe::Tvh.J TEMPLE - INLAND 100 YEARS FROM DREAM TO FORTUNE 200 With a population ofless than 4,500, in Arkansasin 1881.Twelveyears later, Diboll, Texas, doesn't have a Wal-Mart, he reorganized the company under a McDonald's, or a movie theater. But it Texas law. does have something larger communi- After stepping off an HE&WT train ties envy: a Fortune 200 forest products with only a satchel and a plan to build a company of its own. sawmill, Temple persuaded the Diboll and its founder, Temple- Joseph S. Copes heirs to sell him 7,000 Inland, Ine., jointly celebrate their cen- acresoftimberland. Oneoftheheirs,J.C. tennial in 1994, an observance reaching Diboll, referred to the land as "hog mill back to the earliest days of the forest terrain," meaning wild hogs had to be products industry in Texas. run out before a sawmill could be built. More than 100 years ago, East Texas By June 1894, Temple had built a forests stretched for hundreds of miles, sawmill and a town named for Diboll. The Temple-Inland plant, ca. 1960. All broken only by rivers, fields, and a few Buyingpine timber for about 75 cents a photos accompanying this article are from villages. In the 1880s, the railroads, seek- thousand board feet,Templeoftenwrote the Forest History Society archives. ingto link the Gulf Coast with the Texas out purchase deeds on paper sacks and inter\or, began to lay tracks through the forests, providing piecesof 1x 12lumber in the rush to getthe mill rolling.Asthe lumbermen more efficient transportation to the growing railroads expanded, Texas cities began to grow and Temple's cities. The promise of fortunes to be made from the vast sawmillprosperedby operating24hours a day, 365daysa year. uncut forests brought entrepreneurs to Texas from as far Temple was stingy with himself, but generous with those away as Maine, Minnesota, and Oregon. But for many, around him. His social concerns turned Diboll into a model fortunes lasted only as long as the trees. Hundreds of sawmills community for the times with a library, a civic and social were built and demolished in a few years. worker, quality housing foremployees,and many community In 1893, a quiet, Virginia-born lumberman, who believed amenities. forests were a renewable crop, came to East Texas, a few miles Instead of following the prevailing "cut-out and get-out" south of the fledgling village of Lufkin. The fertile forests philosophy, Temple insistedhislands be managed with a sense along the Neches River seemed a likely place to test his of permanence and became one of the first to leave trees for "sustained yield" theory. The Houston, East and West Texas reseeding to assure natural regeneration of the forests. Railroad stretched south to Houston and north to Shreveport In 1914,the familyacquired a second sawmill at Pineland to deliver his lumber. and opened its first retail lumberyard in Houston. This yard Thomas Lewis Latane Temple, Tom to his family, had grew to 29 yards covering the state from the Red River to the been orphaned as a youngster and at age 17 went to live with Rio Grande. The retail operations led to the vertical integra- an uncle, a farmer in Arkansas, and later worked as a deputy tion of Southern Pine's sawmill operations. county and circuit clerk in Texarkana, the home of several Arthur Temple, Sr., became president of Southern Pine pioneer lumber families. The lumbering environment had an when Tom Temple died at age75in 1935.He continued many influence on him and he organized Southern Pine Lumber Co. of the progressive practices begun by his father. 24 FOR EST HIS TOR Y T 0 DAY Later Arthur Temple, Jr., joined him. Entering the busi- The company entered the gypsum business, its only non- nessat age 18,he demonstrated an uncanny vision ofwhat the wood buildingproduct, in the 1960s,and now operatestwo future would hold for forestproducts manufacturing. Hehad gypsum manufacturing facilities. a vision of Southern Pine as a national corporation with Southern PinebecameTemple Industries in 1965and ceased investors alloverthe United States,but he and his father were to exist as a family-owned corporation, becoming a public caught in a generational struggle. The father wanted him to company on the New York Stock Exchange. Time Ine. go slowly,but the son wanted to accelerate the growth and acquired the company in 1973,but a spinoff of Time's forest challenge of opportunities. products division, including Determined to do things that Temple, later led to the present would make or break him, the Temple- Inland, Inc. Since its son wrote to his father in 1948 establishment, the company has that he could no longer work progressed from one sawmill in for the company and tendered Diboll to four located across the his resignation. A month later, South,plusa studmill,allusingthe when Henry Temple, sawmill latesttechnologywithagreater uti- general manager, died, young lization of timber and reduced Temple was offered the job. manufacturing costs. Three years later, only 31 years In the 1980s, building on old, Arthur Temple, Jr.,became Arthur Temple's 1950s creation president of the company after of Lumberman's Investment his father's death. Corp. asawayto encourage home When he came to Diboll to building, Temple-Inland restruc- run the sawmills,the company tured the company as Temple- was still using Depression-era Inland Mortgage Corporation, thinking. Plants were hoarding one ofthe largest mortgage banks cash and paying little attention in the country with a loan portfo- to technologicaladvancesinthe ArthurTemple,Jr.,workingat hisdesk,ca.1960. lio of $9 billion. This operation industry. Mill improvements was expanded in 1988 with the and employee compensation needed attention. Temple sold acquisition of three Texas thrifts and formation of Guaranty the familyon the wisdom ofrejuvenation. He brought in new FederalBank,an$8billion savingsinstitution with 123branches assistants, made critical decisions to horizontally integrate in Texas, the largest Texas-based savingsbank in the state. the company's operations, and substantially eliminated ver- Temple-Inland's building products are sold in 24 states, tical integration. He promoted the manufacture of products Mexico,and Europe. In 1993,they accounted for $99.1million from all parts of the tree, including wastes such as sawdust, of the total $162.4 million operating income. planer shavings, and chips. Tom Temple's dream continues atTemple-Inland in Diboll. Theperiod from 1948to 1973isconsidered one ofthe best The company, ashis grandson Arthur Temple envisioned, has chapters in the Temple history with Arthur Temple, Jr., become one of the nation's most successful and respected making the difference. forest products companies, a Fortune 200 company and an Fiberboard sheathing wasthe firstproduct to emergefrom organization with a strong senseofhard work, pride, and a love his"use everythingfrom the tree" concept. Developedin part for the forests on which it has depended since 1894." as a replacement product for one inch lumber placed across studs or expensive western plywood, fiberboard was eco- nomical and functional with superior insulation values. Expanded and modernized, the original fiberboard facil- ity at Diboll now manufactures fiberboard products, hard- board siding, and TrimCraft, an engineered wood product for exterior and interior trim. In 1964, Temple entered into a partnership with U.S. Plywood to produce the first plywood made from southern pine trees. The company alsobuilt a pilot particleboard plant at Pineland. No longer in operation, this plant allowed the company to develop technology and early markets for home and furniture construction. Subsequently, the company has built two major particleboard plants, acquired another, and isbuildinga fourth in Arkansas.When it iscomplete,Temple- This article is reprinted from "Temple-Inland: 100 Yearsfrom Inland will be able to produce more than 60 times the Dream to Fortune 200," Building Products Digest 13 (November production of the original Pineland plant. 1994): 14-15. FOREST HISTORY TODAY 25.
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