5 Great Depression Success Stories

Hulton Archive/Getty Images
Hulton Archive/Getty Images

The news about the economy continues to be glum, which makes you wonder if any industry or business could possibly be doing well in such a crummy financial climate. While it might not be easy, it's certainly possible to succeed in a slumping economy. Just take a look at these entities that faced serious challenges during a much bigger fiasco, the Great Depression, and lived to tell about it.

1. Floyd Bostwick Odlum

Many investors lost everything during the market crash of 1929 because they has mistakenly assumed Wall Street's good times were never going to end. Odlum, a former corporate attorney who had cannily turned $39,000 into a multimillion-dollar fortune by investing in utility companies, didn't like the way he thought the markets were moving, though. He cut bait on stocks in an effort to generate cash before the market crash he thought was coming.

When the crash came, Odlum had millions in cash on hand, an enviable position in a cash-starved market. He began swooping in to buy up failing companies at drastically reduced prices and then consolidating or spinning their assets for more cash. It sounds like a pretty simple model, but it was so effective it made Odlum one of the ten wealthiest men in the country and earned him the title of "possibly the only man in the United States who made a great fortune during the Depression."

2. Movies

The beginning of the Great Depression in late 1929 came at a particularly inopportune time for the film industry, which had recently evolved with the 1927 release of The Jazz Singer, a milestone talkie. Just as the industry seemed to be gaining momentum, unemployment shot up and the sort of disposable income one uses for little luxuries like going to the movies steeply declined. Early in the economic crisis, many moviehouses had to close their doors due to the decreased traffic, and most of the once-profitable studios started turning losses in the 1930s.

Faced with this glum market, the film industry got creative. To give customers maximum bang for their scant bucks, theaters cut ticket prices by 50% or more and started giving patrons two features for the price of one ticket. These double features propped up demand for cheaply made B movies, and smaller studios stayed afloat by banging out these quick products.

Theater owners resorted to even more desperate hucksterism, though. During the Depression it was fairly common for theaters to use giveaways to fill their seats. Promotions like "Dish Night" in which any woman who attended got a free dinner plate, cash door prizes, and silverware giveaways where each trip to see a flick got you closer to having a complete set of flatware helped buoy up attendance. Although box-office takes swooned to $480 million in 1933, they slowly climbed back up to $810 million by 1941, in part due to these disaster-management tricks.

3. Procter and Gamble

The Great Depression was trying for most consumer product companies, but Procter and Gamble came out of the whole ordeal smelling better than it had in 1929. How did the soap giant beat the Depression? Things were tough at first when mainstay grocery customers started cutting their orders and inventories piled up. P&G apparently realized that even in a depression people would need soap, though, so they might as well buy it from Procter and Gamble.

Thus, instead of throttling down its advertising efforts to cut costs, the company actively pursued new marketing avenues, including commercial radio broadcasts. One of these tactics involved sponsoring daily radio serials aimed at homemakers, the company's core market. In 1933 P&G debuted its first serial, Oxydol's Own Ma Perkins, and women around the country quickly fell in love with the tales of the kind widow. The program was so successful that P&G started cranking out similar programs to support its other brands, and by 1939, the company was producing 21 of these so-called "soap operas." In 1940 the company started its own production division for soap operas, and in 1950 it made the first ongoing television soap opera, The First Hundred Years.

P&G's share price is currently trading at about $20 below its 52-week high, so maybe it's time for the consumer goods behemoth to go back to what works. Might we suggest YouTube videos involving the antics of adorable babies?

4. Martin Guitars

Like movies, musical instruments would seem to be a vulnerable industry in a down economy, but venerable acoustic guitar maker Martin made it through the Depression using a number of strategies. The company stuck to its principle of not giving high-volume retailers discounts, which maintained its relationship with smaller dealers and cemented the company's image as a square dealer.

Martin also started offering new, less expensive models that went on to enjoy great popularity. The "dreadnought" body style was one of these triumphs; it included a larger, deeper body that provided more volume and bass resonance. Martin introduced its first archtop guitar in 1931, and the company also revolutionized its designs by using 14-fret necks on its guitars. These technical changes, coupled with Martin's dedication to giving its customers high-quality instruments at reasonable prices, helped keep its sales up throughout the Depression.

5. Brewers

The Depression was hard enough for most companies, but the nation's brewers had it especially bad. Sure, money was tight, but brewer's core product, beer, wasn't even legal. During national Prohibition from 1920 to 1933, about half of the country's breweries closed their doors for good, but the rest stuck it out hoping for a repeal. How did these brewers make ends meet during the Depression when they couldn't sell suds to the distressed 25% of workers who didn't have jobs?

By diversifying. And then diversifying some more. Brewers started running dairies, selling meat, and venturing out into other agricultural enterprises. Brewers were also allowed to make "near beer" that had only trace amounts of alcohol, but the Depression killed off consumer demand from 300 million gallons in 1921 to just 86 million gallons in 1932. Breweries also started applying their expertise to non-alcoholic tipples like ginger beer; during the Depression there were upwards of 300 breweries making the spicy soft drink. Frank Yuengling, who headed the brewery of the same name outside of Philadelphia, remained confident that Prohibition was just a phase, and he personally diversified widely, including a foray as a bank president and opening a dance hall.

In the end, waiting out the storm by diversifying (and maybe brewing some illicit beer on the side) turned out to be a sound strategy. According to a 2005 survey of the American brewing industry, eight of the 10 largest brewers in the U.S. are pre-Prohibition brands that survived through the Depression.

10,000 People Gathered at Stonehenge to Welcome the Summer Solstice

Finnbarr Webster, Getty Images
Finnbarr Webster, Getty Images

There are plenty of reasons to welcome the start of summer. Today, people visiting Stonehenge took that celebration to a whole new level.

The BBC reported that an estimated 10,000 people made the pilgrimage to the 5000-year-old site to partake in summer solstice festivities. "Stonehenge was built to align with the Sun, and to Neolithic people, the skies were arguably as important as the surrounding landscape," Susan Greaney, a senior historian at English Heritage, said in a statement. "At solstice we remember the changing daylight hours, but the changing seasons, the cycles of the Moon, and movements of the Sun are likely to have underpinned many practical spiritual aspects of Neolithic life."

These spiritual aspects are just one of the many fascinating facts about the summer solstice; the day is an extremely old calendar event recognized by ancient cultures across the globe. They include the Druids and other pagans, whose tradition of observing the solstice at Stonehenge has long been upheld by modern revelers.

Scientifically speaking, Stonehenge is an optimal viewing place for the solstice due to its structure. According to TIME, the site’s architects appeared to have kept both the summer and winter solstices in mind during its construction, as the positions of the stones are specifically tuned to complement the sky on both occasions.

The solstices were sacred to the pagans, whose modern-day followers continue to honor their rituals. Pagans in particular refer to the day as Litha, and mark it with activities such as meditation, fire rites, and outdoor yoga.

“What you’re celebrating on a mystical level is that you’re looking at light at its strongest," Frank Somers, a member of the Amesbury and Stonehenge Druids, said in 2014. "It represents things like the triumph of the king, the power of light over darkness, and just life—life at its fullest."

Those who were unable to make the journey can head over to the Stonehenge Skyscape project's website, where English Heritage’s interactive live feed fully captured the experience.

Tourists Are Picking Apart Britain's Oldest Tree

Paul Hermans, Wikimedia Commons // CC BY-SA 3.0

The Fortingall Yew in the Fortingall churchyard in Perthshire, Scotland has seen a lot. Since it started growing at least 2000 years ago, it's been present for the Roman settlement of Scotland, the shift from paganism to Christianity, and the country's induction into the United Kingdom. But after standing for millennia, the ancient tree is facing its greatest threat yet. Tourists are removing twigs and branches from the tree to take home as souvenirs, and the tree is under so much stress that it's spontaneously changing sexes, Atlas Obscura reports.

Because of how the tree grows, it's hard to date the Fortingall Yew precisely. It comprises several separate trunks that have hollowed out over the years, making it easier for the tree to support itself in its old age. Based on historical measurements and 19th-century ring counts, the yew has been around for at least two millennia, but it could date back as far as 5000 years. That makes it the oldest tree in Britain and one of the oldest living things in Europe.

That impressive title means the tree gets a lot of visitors, not all of whom are concerned with extending its lifespan even longer. A stone and iron wall built in the Victorian era encloses the tree, but that hasn't stopped people from climbing over it to break off pieces or leave behind keepsakes like beads and ribbons.

As the abuse adds up, the tree has responded in concerning ways. It sprouted red berries this spring, a sign that the tree is transitioning to a different sex for the first time in its life. Yew trees are either male or female, and sex changes among the species are incredibly rare and misunderstood. Some botanists believe it's a reaction to stress. The change may be a survival mechanism intended to increase the specimen's chances of reproducing.

Scientists aren't sure why this particular yew, which was formerly male, sprouted berries on its upper branches, an exclusively female characteristic, but they've collected the berries to study them. The seeds from the berries will be preserved as part of a project to protect the genetic diversity of yew trees across the globe.

In the mean time, caretakers of the Fortingall Yew are imploring visitors to be respectful of the tree and keep their hands to themselves.

[h/t Atlas Obscura]

SECTIONS

arrow
LIVE SMARTER