Rath Packing
Encyclopedia
The Rath Packing Company was a meatpacking company located in Waterloo, Iowa
between 1891 and 1985.
. He came to the United States
in the late 1840s and eventually settled in Dubuque, Iowa
. In Dubuque, Rath began a merchant business, making and selling soap
and tallow
candle
s. He also began a pork
packing operation. By 1873 he had a new partner in both endeavors: His son, E.F. (Edward Frederick) Rath, doing business under the name George Rath and Son.
In February 1891, the Rath’s small pork packing plant and retail market in Dubuque was destroyed by fire
. The fire came at a time when many growing towns in Iowa were trying to attract meat packers to relocate or open operations in their communities. A packing plant was a major acquisition for a small but ambitious town. Such a business meant locally-available fresh meat
, employment
, and typically created a livestock market, all adding to local commerce
and prosperity
.
The Raths were approached by the Waterloo, Iowa, Board of Trade (a Chamber of Commerce
forerunner) and were eventually won over. Incentives included $10,000 in capital, land for a plant, and tax concessions. At some point during this process, George J. Rath decided not to leave Dubuque and not to continue in the meat packing business, rather to stay with his mercantile business. His son E.F. Rath, and John W. Rath, a cousin from Ackley, Iowa
, began the Waterloo venture.
and soon lamb as well. Business thrived; lucrative contracts to supply meat to the Armed Forces
during both World Wars helped the company grow. Growth and profitability were also spurred between the 1930s and 1950’s by innovations such as the fancy dry curing of bacon and the vacuum canning of meats. By the company’s fiftieth anniversary in 1941, the small regional packing house in Waterloo had grown into the nation’s single largest meatpacking facility with branch facilities in 12 states. By the end of World War II
, Rath was the fifth largest meatpacker in the U.S. Through two world wars, stock market panics, depression, and drought, the company had failed to show a profit
in only four of its years.
The years following World War II brought labor troubles. A 1948 strike at the Waterloo plant resulted in the death of a striking union member and a riot. Iowa National Guard
troops were called in to restore order. Holding firm, Rath management eventually outlasted the union in negotiations, but labor relations remained sour.
In 1980, Local 41 of the United Food and Commercial Workers
Union which represented most of the labor force, negotiated a plan that, in exchange for wage and benefit concessions from the workers, gave them control of Rath’s board of directors
.
The employee-owned Rath operated at a loss in 1981-1983. After a series of further financial setbacks, Rath ceased operations in 1985.
Waterloo, Iowa
Waterloo is a city in and the county seat of Black Hawk County, Iowa, United States. As of the 2010 United States Census the population decreased by 0.5% to 68,406. Waterloo is part of the Waterloo – Cedar Falls Metropolitan Statistical Area, and is the more populous of the two...
between 1891 and 1985.
Background
George John Rath (varyingly referred to as George Rath and John George Rath) was born in 1821 in Breitenau, Württemberg province, GermanyGermany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
. He came to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
in the late 1840s and eventually settled in Dubuque, Iowa
Dubuque, Iowa
Dubuque is a city in and the county seat of Dubuque County, Iowa, United States, located along the Mississippi River. In 2010 its population was 57,637, making it the ninth-largest city in the state and the county's population was 93,653....
. In Dubuque, Rath began a merchant business, making and selling soap
Soap
In chemistry, soap is a salt of a fatty acid.IUPAC. "" Compendium of Chemical Terminology, 2nd ed. . Compiled by A. D. McNaught and A. Wilkinson. Blackwell Scientific Publications, Oxford . XML on-line corrected version: created by M. Nic, J. Jirat, B. Kosata; updates compiled by A. Jenkins. ISBN...
and tallow
Tallow
Tallow is a rendered form of beef or mutton fat, processed from suet. It is solid at room temperature. Unlike suet, tallow can be stored for extended periods without the need for refrigeration to prevent decomposition, provided it is kept in an airtight container to prevent oxidation.In industry,...
candle
Candle
A candle is a solid block or cylinder of wax with an embedded wick, which is lit to provide light, and sometimes heat.Today, most candles are made from paraffin. Candles can also be made from beeswax, soy, other plant waxes, and tallow...
s. He also began a pork
Pork
Pork is the culinary name for meat from the domestic pig , which is eaten in many countries. It is one of the most commonly consumed meats worldwide, with evidence of pig husbandry dating back to 5000 BC....
packing operation. By 1873 he had a new partner in both endeavors: His son, E.F. (Edward Frederick) Rath, doing business under the name George Rath and Son.
In February 1891, the Rath’s small pork packing plant and retail market in Dubuque was destroyed by fire
Fire
Fire is the rapid oxidation of a material in the chemical process of combustion, releasing heat, light, and various reaction products. Slower oxidative processes like rusting or digestion are not included by this definition....
. The fire came at a time when many growing towns in Iowa were trying to attract meat packers to relocate or open operations in their communities. A packing plant was a major acquisition for a small but ambitious town. Such a business meant locally-available fresh meat
Meat
Meat is animal flesh that is used as food. Most often, this means the skeletal muscle and associated fat and other tissues, but it may also describe other edible tissues such as organs and offal...
, employment
Employment
Employment is a contract between two parties, one being the employer and the other being the employee. An employee may be defined as:- Employee :...
, and typically created a livestock market, all adding to local commerce
Commerce
While business refers to the value-creating activities of an organization for profit, commerce means the whole system of an economy that constitutes an environment for business. The system includes legal, economic, political, social, cultural, and technological systems that are in operation in any...
and prosperity
Prosperity
Prosperity is the state of flourishing, thriving, good fortune and/or successful social status. Prosperity often encompasses wealth but also includes others factors which are independent of wealth to varying degrees, such as happiness and health....
.
The Raths were approached by the Waterloo, Iowa, Board of Trade (a Chamber of Commerce
Chamber of commerce
A chamber of commerce is a form of business network, e.g., a local organization of businesses whose goal is to further the interests of businesses. Business owners in towns and cities form these local societies to advocate on behalf of the business community...
forerunner) and were eventually won over. Incentives included $10,000 in capital, land for a plant, and tax concessions. At some point during this process, George J. Rath decided not to leave Dubuque and not to continue in the meat packing business, rather to stay with his mercantile business. His son E.F. Rath, and John W. Rath, a cousin from Ackley, Iowa
Ackley, Iowa
Ackley is a city in Franklin and Hardin Counties in the U.S. state of Iowa. The population was 1,809 at the 2000 census.-Geography:Ackley is located at ....
, began the Waterloo venture.
The Rath Packing Company
The Rath Packing Company (Rath) of Waterloo (Iowa) opened for business on November 24, 1891, on the Cedar River. Initially, the company concentrated on hogs, but by 1908 the company was also slaughtering beefBeef
Beef is the culinary name for meat from bovines, especially domestic cattle. Beef can be harvested from cows, bulls, heifers or steers. It is one of the principal meats used in the cuisine of the Middle East , Australia, Argentina, Brazil, Europe and the United States, and is also important in...
and soon lamb as well. Business thrived; lucrative contracts to supply meat to the Armed Forces
Armed Forces
Armed Forces is Elvis Costello's third album, his second with the Attractions, and the first to officially credit the Attractions on the cover. It was released in the UK by Radar Records and in the U.S. by Columbia in 1979...
during both World Wars helped the company grow. Growth and profitability were also spurred between the 1930s and 1950’s by innovations such as the fancy dry curing of bacon and the vacuum canning of meats. By the company’s fiftieth anniversary in 1941, the small regional packing house in Waterloo had grown into the nation’s single largest meatpacking facility with branch facilities in 12 states. By the end of World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
, Rath was the fifth largest meatpacker in the U.S. Through two world wars, stock market panics, depression, and drought, the company had failed to show a profit
Profit (accounting)
In accounting, profit can be considered to be the difference between the purchase price and the costs of bringing to market whatever it is that is accounted as an enterprise in terms of the component costs of delivered goods and/or services and any operating or other expenses.-Definition:There are...
in only four of its years.
The years following World War II brought labor troubles. A 1948 strike at the Waterloo plant resulted in the death of a striking union member and a riot. Iowa National Guard
Iowa Army National Guard
The Iowa Army National Guard is the Army component of the Iowa National Guard, a military reserve force with dual federal and state missions. It is empowered to function in a state status if needed to carry out limited actions during non-emergency situations all the way to full scale law...
troops were called in to restore order. Holding firm, Rath management eventually outlasted the union in negotiations, but labor relations remained sour.
Decline of the company
The 1960s and 1970’s were difficult times for meat packing companies. Competition was fierce and the industry had become high volume, low margin. Profitability was hurt by a decline in per capita pork consumption beginning in 1960. By the mid 1970’s, Rath’s 50-year-old four-story plant was obsolete. The new model for packing houses called for single-level plants with continually moving automated disassembly lines. In addition, Rath’s workforce was predominantly middle-aged, older than the industry average for packing houses, and thus burdened with higher than average wage and benefit costs.In 1980, Local 41 of the United Food and Commercial Workers
United Food and Commercial Workers
The United Food and Commercial Workers International Union is a labor union representing approximately 1.3 million workers in the United States and Canada in many industries, including agriculture, health care, meatpacking, poultry and food processing, manufacturing, textile, G4S Security, chemical...
Union which represented most of the labor force, negotiated a plan that, in exchange for wage and benefit concessions from the workers, gave them control of Rath’s board of directors
Board of directors
A board of directors is a body of elected or appointed members who jointly oversee the activities of a company or organization. Other names include board of governors, board of managers, board of regents, board of trustees, and board of visitors...
.
The employee-owned Rath operated at a loss in 1981-1983. After a series of further financial setbacks, Rath ceased operations in 1985.