BLEED BLUE

James Chandler Harbour II

James Chandler Harbour II

BLEED BLUE THE HISTORY OF NFI AND THE FAMILY BEHIND IT © 2018 NFI. All rights reserved. No part of this book may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from NFI. About the Author James Chandler Harbour II is the author of over two hundred books, including company histories, family histories, and biographies. He is passionate about the inter-generational transfer of human and intellectual capital to educate, motivate, and inspire today’s and tomorrow’s generations. His web site is lifestoriescompany.com. Printed in U.S.A.

Contents Dedication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Entrepreneurial Spirit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Escaping Russia 1906 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Coming to America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Israel Brown and the Birth of National Hauling . . . . . . . . . . . . 39 Bernard Brown and the Early Years . . . . . . . . . . . . . . . . . . . . . . . 45 Land of Opportunity: Vineland, New Jersey . . . . . . . . . . . . . . . 51 Spirited, Sturdy, and Strong: Shirlee Brown . . . . . . . . . . . . . . . 55 Regulation and the Motor Carrier Act of 1935 . . . . . . . . . . . . . . 61 1950s: Becoming Profitable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 1960s: The Grand Plan, Phase 1 & 2 . . . . . . . . . . . . . . . . . . . . . . . 73 1960s: The Grand Plan, Phase 3 & 4 . . . . . . . . . . . . . . . . . . . . . . . 81 The Teamsters and De-unionization . . . . . . . . . . . . . . . . . . . . . . 93 Ed DeFilippis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 1970s: Full Throttle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 1970s, Part 2: All Cylinders Firing . . . . . . . . . . . . . . . . . . . . . . . . 113 Philadelphia Blazers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121 It’s All About the Drivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127 Safety Begins in the Boardroom . . . . . . . . . . . . . . . . . . . . . . . . 133 Deregulation: The Motor Carrier Act of 1980 . . . . . . . . . . . . . . 139 1980s: Hyper-Expansion During Hyper-Competition . . . . . . . 141 The Third Generation Steps In . . . . . . . . . . . . . . . . . . . . . . . . . . 147 Texas Expansion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155 Trucks and Trailers: A Long History of Innovations . . . . . . . . 161 Trouble Down the Road (Mid-1980s – 1990) . . . . . . . . . . . . . . . 167 1990s – Struggles and the Turning Point . . . . . . . . . . . . . . . . . 173 The Transformation Begins: Custom Solutions . . . . . . . . . . . 181 Transforming NFI: 2001–2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . 189 Advancing the NFI Culture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 199 Making the Eagle Soar: 2007–2010 . . . . . . . . . . . . . . . . . . . . . . . 205 The Fourth Generation Browns Join In . . . . . . . . . . . . . . . . . . 215 80th Year Anniversary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223 A Day in the Life of an NFI Driver . . . . . . . . . . . . . . . . . . . . . . . . 227 A Day in a NFI Distribution Center . . . . . . . . . . . . . . . . . . . . . . . 233 The Spirit of Giving and Community Service . . . . . . . . . . . . . . 239 A Foundation for the Future: 2010 and Beyond . . . . . . . . . . . . 243 Brokerage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 Real Estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 255 On the Cutting Edge: Technology Upgrades . . . . . . . . . . . . . . 265 More than a Tactic: Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271 Ever Growing: NFI Acquires CalCartage . . . . . . . . . . . . . . . . . . 277 The Present: A Legacy to Be Continued . . . . . . . . . . . . . . . . . . 281 Conclusion: Looking to the Future . . . . . . . . . . . . . . . . . . . . . . . 285

6 Introduction National Freight Inc

7 National Freight Inc Introduction Dedication This book is dedicated to our grandfather Israel Brown and our father, Bernard Brown, whose vision and fortitude founded National Freight, today NFI. Also, to all the employees, past and present, who contributed to the success of the company over the last eighty-five years. Dedicated and capable employees are the lifeblood of any successful company, and we have been blessed with an abundance of both. It is gratifying to see all using their gifts and talents to help the company not only succeed but thrive as a fully integrated third-party supply chain solutions provider. This book is an attempt to cover the rich history of NFI in a concise manner. Though the countless stories and pictures relating to this history could not all be included, you will still find many interesting facts and photos that help tell the story of NFI, the Brown family, and the industry they impacted over the years. The company’s longevity and success in the transportation industry can be attributed to many things, but we believe our attention to caring for our customers, while attracting and retaining outstanding employees, has had the most impact. We also humbly recognize how greatly the efforts of each generation of the Brown family have built on the foundation of the one that came before, and we remain committed to providing the same platform for success for future generations. The values that have served us so well since 1932 will continue to guide us as we move forward with our mission of providing outstanding services to customers for many years to come. Ike, Sidney, Jeffrey, and the Brown family May 2018

8 Introduction National Freight Inc

9 National Freight Inc Introduction THE MEASURE OF WORTH OF A TRANSPORTATION COMPANY IS THE SERVICE RENDERED TO CUSTOMERS AND EMPLOYEES. —— Bernard Brown

10 Introduction National Freight Inc

11 National Freight Inc Introduction WE WANT TO CONTINUE TO GROW, BUT WE WANT TO BE THE BEST. IF WE CAN DO WHAT WE’RE DOING BETTER, GROWTH IS INEVITABLE. —— Sidney Brown

12 Introduction National Freight Inc Through it all, the Brown family leaders held tightly to our ideals of honor and integrity as we formulated a supply chain solutions company that focuses on transportation, distribution, North American freight brokerage, global freight forwarding, intermodal, drayage and industrial real estate development. — Jeff Brown

13 National Freight Inc Introduction Introduction This book chronicles the remarkable achievements of National Freight Inc. (NFI) and the invincibly optimistic Brown family, who embody the American success story in its most engaging personification. The tale begins with one man and one truck. Israel Brown moved to Vineland, New Jersey, in 1932 with his wife, Anna, and three children. Back then, when he opened National Hauling, later named National Freight, with a single truck hauling sand and gravel for local roads, few could have predicted what the company would one day become or what it would mean to the transportation, distribution, and logistics industry today. Like many organizations, the company has grown beyond the founder’s wildest dreams—expanding its geographic footprint, acquiring competitors, developing new service offerings, and innovating creative solutions, all the while providing extraordinary customer service and garnering remarkable loyalty from employees and customers alike. Today, NFI is privileged to be recognized as one of the top family-owned companies in the logistics segment in North America, offering a variety of services to help its customers manage, grow, and succeed in today’s logistics marketplace. Headquartered in Cherry Hill, New Jersey, NFI generates nearly $2 billion in annual revenue and employs over 10,000 associates. NFI owns facilities globally and operates 41.5 million square feet of warehouse and distribution space. Its dedicated and drayage fleet consists of over 4,000 tractors and 8,700 trailers, operated by more than 2,600 company drivers and 1,600 owner operators. Its business lines include dedicated transportation, warehousing, intermodal, brokerage, transportation management, global logistics, drayage, and commercial real estate services Its commitment to customer excellence, continuous aggressive improvement, ongoing innovation, and employee satisfaction continue to drive their high performance, results-producing culture. By partnering with customers and coworkers, its most valued resources, NFI is determined to continue as the industry’s preferred supplier of both transportation and distribution services in each of its markets.

14 Introduction National Freight Inc OPERATES IN OVER 185 LOCATIONS ACROSS THE US & CANADA ONE OF THE FASTEST GROWING 3PL COMPANIES IN THE US 2017 REVENUE $ 1.8 BILLION Company Facts AS OF DECEMBER 2017

OPERATES MORE THAN 41.5 MILLION SQUARE FEET OF WAREHOUSING EMPLOYS MORE THAN 10,000 PEOPLE A 4TH GENERATION FAMILYOWNED BUSINESS ONE OF THE TOP 10 IN REVENUE FOR DEDICATED TRUCKING

16 Introduction National Freight Inc OVER 85 YEARS IN BUSINESS COMPANY-OWNED FLEET OF OVER 4,000 TRACTORS & 8,700 TRAILERS OPERATED BY MORE THAN 2,600 COMPANY DRIVERS AND 1,600 OWNER OPERATORS RANKS IN THE TOP 10 IN REVENUE FOR DEDICATED WAREHOUSING

17 National Freight Inc Introduction Recent Awards & Affiliations

18 Introduction National Freight Inc WE HAVE ENJOYED AN EXTRAORDINARY CLOSENESS FOR FOUR GENERATIONS IN BUSINESS. I KNOW WE WILL BE ABLE TO CONTINUE THAT FOR MANY GENERATIONS TO COME. THE COMPANY WAS DESIGNED AND BUILT FOR THE LONG HAUL. —— Ike, Sid and Jeff Brown

19 National Freight Inc Introduction Against all odds: A fourthgenerational family legacy NFI, in all its formulations, is among the few family-owned businesses that have thrived for generation after generation. That the company has flourished under the leadership of four successive generations—surviving wars, depressions, recessions, regulation, deregulation, and every imaginable economic slump and business hurdle—is nothing short of remarkable. If only this archetype were the established pattern for family-owned businesses; unfortunately, the truth is that the vast majority wither on the vine. Yet rather than succumbing to market pressures or cultural shifts, NFI has reached successively greater heights. Certainly, this all could have turned out differently. Like many family companies, NFI might have survived a couple of generations before splintering and vanishing into the dustbin of history. It held together, sometimes with difficulty, for a single reason—its meaningful purpose, and the deep feelings of satisfaction and pride this heritage has inspired in the multigenerational Brown family as they continue the legacy.

20 Introduction National Freight Inc ENTREPRENEURIAL SPIRIT has long been acknowledged for its open, fair, and balanced dealing with government regulatory organizations and vendors, setting an example for the rest of the industry in how to strategically manage a logistics company for the long-term benefit of all parties. Peering back through the company’s eighty-five year history offers examples, time and again, of courage through adversity, of seemingly insurmountable challenges overcome by entrepreneurial gumption and fortitude, and many novel ideas pushing the envelope of possibility. Through it all, outstanding family and company leaders held to their ideals of honor and integrity, formulating a vast transportation network by doing what was right because it was the right thing to do. Among its guiding maxims has always been “Try new things, if it doesn’t work, cut your losses and move on, and try something else,” and “don’t be satisfied with the status quo,” a statement from Bernard Brown. Yet this dictum might have been coined nearly a century ago when the Brown family first started hauling gravel in Vineland, New Jersey. Thanks to the unimpeachable character of its leaders and employees, NFI has never been a follower. It is a leader, while being a guardian of its reputation for both quality and the equality of employees, vendors and customers. Entrepreneurial spirit is at the heart of this American familyowned company. From the vision, chutzpah, and perseverance of Israel Brown and his son, Bernard Brown, a business moved forward and prospered. Through continuing tenacity and a determined work ethic, the next generations carefully tended the enterprise. Successive generations led it through growth phases, making it more innovative and resilient with each expansion. In fact, as the distribution, and logistics industry evolved over the decades, NFI has been at the leading edge of its progression. The company is widely considered a leader in pioneering innovations for its customers. As well, the company

21 National Freight Inc Introduction

COMPANY TAGLINES THROUGH THE YEARS PRIDE AND SERVICE circa 1960-1970 JUST SAY WHERE AND WHEN circa 1980 NFI… WHERE SAFETY, INTEGRITY, AND CUSTOMER SATISFACTION ARE NEVER OPTIONAL. circa 1990s

YOU NEED A COMPANY YOU CAN DEPEND ON THE FIRST TIME AND EVERY TIME. circa 1995 WE’LL TAKE IT FROM HERE. circa 2015 HOW BUSINESS IS ONE! mid-2000s

24 Introduction National Freight Inc 1990s 1990 MISSION STATEMENT Our mission is to provide a nationwide transportation network that is superior in the distribution of regional truckload freight. We shall design services that meet the unique needs of individual customers to fulfill their expectations in each and every situation. In the 1990s the company began a mission statement committed to an environment that fosters PEOPLE MISSION / VISION / VALUES P ride in accomplishments E thical behavior by “doing the right thing” in every circumstance involving both internal and external customers Opportunity for people to “make a difference” P assion for excellence L eading edge technology E ncouragement to challenge the “status quo”

25 National Freight Inc Introduction THE SUCCESSFUL EXECUTION OF OUR MISSION WILL PROVIDE THE GROWTH AND PROFITABILITY NEEDED TO ACCOMPLISH OUR INDIVIDUAL AND CORPORATE GOALS.

26 Introduction National Freight Inc MISSION We free each of our customers to focus on their core business by managing commerce and “delivering the goods.” Our people make our solutions seamless through their uncompromising commitment to excellence and their can-do spirit. 2000sIn the 2000s the leadership team restructured the Mission, Vision, and Values statements VISION NFI will be known for its leading-edge, customized solutions and world-class customer service. The effectiveness of our operating principles and the value of delivering a single point of contact to our customers will make NFI the go-to provider, because our customers will gain a competitive advantage from a transparent supply chain that strives to be frictionless. NFI’s EODB (Ease of Doing Business) system will create tailored solutions for our customers’ ever-evolving business models. We will deliver real-time visibility and trackability of our clients’ products as they move through the supply chain. Our unwavering commitment to supply chain excellence will be executed by talented, motivated, and well-prepared employees. Our recognition for service excellence and top-tier performance will be the hallmark of NFI, with “best place to work” recognition honoring our people-and-culture platform from which all of our success will be launched. MISSION / VISION / VALUES

27 National Freight Inc Introduction VALUES Integrity At NFI, our Golden Rule is: Our handshake is our bond, and we are committed to “doing the right thing” in all situations. We treat our employees, customers, and partners fairly, honestly, and with respect—just as we want to be treated. We demonstrate personal accountability in all that we do and adhere to the highest standards of business ethics. People We value our employees’ diverse experiences, perspectives, and ideas. We will attract and retain the most talented employees by building a collaborative team environment that offers extensive growth opportunities, challenging roles, and a transparent meritocracy. We are committed to recognizing each individual’s contributions to the performance of the team. Customer Service At every turn, we strive to meet or exceed our customer’s expectations, both internal and external. Daily, we look for practical and significant ways to drive their success. Entrepreneurship Never accepting the status quo has been fundamental to our legacy. We know that having a sense of urgency, taking prudent risks, and exhibiting the perseverance to drive forward have been the foundation of our first eighty-five years of success...and will be for our next eighty-five years. Performance We strive for continuous improvement, which demands and rewards exemplary results. For us, performance is about: Flawless Execution, Accountability for Results, Financial Responsibility, Clear Expectations, and Smart Measurement. Social Responsibility We are committed to exemplary corporate citizenship by protecting the health and safety of our people, ensuring the integrity of our environment, and being active in our communities.

28 Introduction National Freight Inc OUR MISSION, VISION, AND VALUES HAVE BEEN DEEPLY EMBEDDED IN OUR CHARACTER AND COMMITMENT TO OUR EMPLOYEES AND CUSTOMERS. THEY WILL CONTINUE TO DRIVE US FORWARD UNABATED AND UNDETERRED. —— Ike Brown

THIS IS THE STORY OF THE BROWN FAMILY. FITTINGLY, IT BEGINS UNDER DURESS, FLEEING RELIGIOUS PERSECUTION AS SO MANY OF OUR COUNTRY’S IMMIGRANTS DID IN ORDER TO START A NEW LIFE IN AMERICA.

31 National Freight Inc Escaping Russia 1906 CHAPTER 1 Escaping Russia 1906 The history of NFI is a history of family, a story of a generational legacy. At the heart of this family-owned company is an understanding that we build upon the foundation of the generations that came before—we benefit from their efforts, determination, and sacrifice, and we owe it to the generations who will come after us to preserve and strengthen the resources we have been entrusted with. Maintaining the same spirit of perseverance, independence, and tenacity held by our forebears, each generation has carefully guided the enterprise through its successive growth phases. Each generation expanded the business further, always with an eye toward making NFI more successful, but without forgetting the deep roots that make this company strong. This story, then, begins at the turn into the twentieth century, when Europe became an increasingly inhospitable place that a growing number of Polish residents chose to leave behind. For one particular family, the decision to leave would change the lives of countless people in years to come. ROLPH BROWN I mperial repression, land shortages, and chronic unemployment made life more and more untenable for the Poles of Europe, and as the nineteenth century waned they left for America by the thousands, then by the hundreds of thousands. Exact numbers are difficult to come by, given the many different routes Poles took to the US, but the 1910 census found more than 900,000 new immigrants who spoke Polish. After World War I, Poland regained its independence,

32 Escaping Russia 1906 National Freight Inc and immigration began to slow. Even so, it is estimated that more than two million Poles had immigrated by the 1920s. One such group was recorded in America as the Brown family. They had roots in Belarus (then part of Russia), in the town of Neshwiser from which they emigrated. Max Brown, his wife Minnie, and nine children endured the long voyage to Philadelphia, Pennsylvania, around 1906. Max’s father, Rolph, had been born about 1838 in Neshwiser and married Max’s mother, Sarah, about 1859. Rolph’s surname was likely Braun or Braunstein, rather than Brown. The Braunstein surname is a Jewish ornamental name composed of the German words braun (brown) and stein (stone). Many Jewish immigrants Americanized Braun or Braunstein to Brown. It is probable that Rolph and Sarah Brown remained behind in Russia, as the records in America only indicate Max and his family. If Rolph and Sarah did remain in their hometown in Belarus, they must have worried about their children and grandchildren, starting over on the other side of the world, even knowing the oppression they were hopefully leaving behind. It would be a challenging new start for their children, a risky fresh beginning. Those Jewish families who stayed in Belarus, though, would face even greater threats in the years to In this Rosh Hashanah greeting card from the early twentieth century, Russian Jews, packs in hand, gaze at the American relatives beckoning them to the United States.

33 National Freight Inc Escaping Russia 1906 come—including being captured by German forces during World War II. On October 30, 1941, all the Jews in Nesvizh were ordered by German forces to gather in the market square and a “selection” was carried out. From among those gathered, six hundred artisans were picked out and the others, about five thousand in number, were executed near the city. The remnant of the community was concentrated in a ghetto that was surrounded by a wire fence. Jewish life in Nesvizh was not restored after its later liberation by the Soviets. The few survivors went to Poland, and from there some went to Israel and others migrated overseas. Max Brown and his immediate family thankfully avoided this period by emigrating decades earlier, but it is unclear what became of other members of their extended family during these years. Across the ocean, Max and his family were busily forging a better life in America.

35 National Freight Inc Coming To America CHAPTER 2 Coming to America MAX BROWN Max, like his father, was born in Nesvizh. In 1885, he married a young woman named Rebecca (who went by “Minnie”), and in 1906, when Max was about forty-six years old, he and Minnie brought their nine children across the ocean to the United States. Although their exact path is unknown, the 1910 Census finds Max Brown living in a rented home on Second Street in Philadelphia, Pennsylvania, with his wife (married twenty-five years) and six children: Samuel (age 22), Bessie (age 19), Abraham (age 18), Joseph (age 17), and twins Pauline and Ida (age 7). All their children were recorded as still living—no small feat in those days—but two sons, Israel (age 22) and Isadore (age 18), were not living in the same household. It is unclear why Max’s son Soloman, who would have been about nine years old, is not recorded on this census. Max’s occupation was listed as a self-employed merchant in the General Clothing Industry. Max indicated that he could not read or write English. In the 1920 Census, the records introduce us to Max Brown, age fifty-nine, as the owner of his home at 151 Fairmont Avenue in Philadelphia, with his wife Minnie and three children: Soloman (age 19) and twins, Ida and Pauline (age 18). Max’s occupation in 1920 is recorded as a self-employed “Barrel Dealer.” His son, Samuel, is also a “Barrel Dealer,” an occupation that Samuel’s brother Israel would likewise take up. Max Brown died on January 30, 1941, at the age of eighty-two, in the Episcopal Hospital in Philadelphia. This was only a few months before his hometown of Nesvizh would be captured by the Germans after the outbreak of war between Germany and the USSR. ISRAEL BROWN To Israel Brown, Nesvizh was home. Born May 1, 1888, he had lived in this town in Belarus for the first eighteen years of his life; he had spent all of his childhood and teenage years there. To leave Russia behind and travel to the United States with his parents and eight siblings would have required a tremendous leap of faith. He is found in the 1910 Census, age twenty-two, as a lodger with the Joseph Eisenstein family on Noble Street in Ward 12, Philadelphia, Pennsylvania. His occupation is listed as “Clerk in Jewelry Store.” About a year later, he married a woman named Anna. They would have had a lot in common to talk about; like Israel, she had emigrated from Russia, arriving in the States the year before he did. Around the time Israel and Anna arrived in Philadelphia, the city supported several

36 Coming To America National Freight Inc major industries, such as locomotive works, shipbuilding, oil, iron and steel-related manufacturing, and textiles. In fact, Philadelphia produced more textiles than any other US city. Yet in the beginning of the twentieth century, Philadelphia had taken on a poor reputation of political corruption and inflexibility to change. Not long after Israel and Anna were married, they left Philadelphia and moved to Vineland, New Jersey, where Israel ran a grocery store. Here they welcomed their first child into the world: a daughter, Reba. After a few years in Vineland, they returned to Philadelphia, although they would be back. On December 15, 1917, Israel Brown enlisted for World War I service in the US Army, 312th Infantry, at Camp Dix, New Jersey. He was assigned to the Quartermaster Corps at Camp Meigs in Washington, DC. He was then assigned to

37 National Freight Inc Coming To America Brown & Sons, May 21, 1921 the Quartermaster Corps Base Hospital at Camp Devens, Massachusetts, until his discharge. According to his service record, he resided in New York City. He did well in the Army and was promoted to Corporal on September 5, 1918, and to Sergeant the month after. He did not serve overseas, which Anna no doubt found reassuring, considering their growing family—Reba was now seven years old, and they had a new baby boy, Sidney. Israel was honorably discharged on April 4, 1919. With his Army involvement concluded, Israel was able to turn his time and attention back to his business endeavors, and it’s a good thing he was, for more big changes were coming—for Israel, his family, the country, and the industry that he would eventually enter.

Corporate office, Vineland, New Jersey, 1952

39 National Freight Inc Israel Brown and the Birth of National Hauling CHAPTER 3 Israel Brown and the Birth of National Hauling I srael Brown learned firsthand that success does not always come on the first, second, or even third try. It requires stubborn determination, enduring tenacity, and a confidence in one’s own abilities that allows for repeated attempts even in the face of repeated setbacks. His efforts would lead to an enduring legacy and an industry-leading company. It all began in the little town of Vineland, New Jersey, and it did not start with quick or easy accomplishments—anything but. Following Israel’s discharge from the Army, he rented a home in Philadelphia and worked as a bonds dealer at a bank. Following that, Israel owned a grocery store for a while, and then he, his father, and some of his brothers went into the construction business. They built buildings in downtown Philadelphia, and they were doing well—until the Great Depression came along. By 1933, eleven thousand of the twenty-five thousand banks in the country had failed as part of the nation-wide economic collapse. Construction of new buildings stalled. Unemployment rose to between twelve million and fifteen million people, almost a third of the workforce. The Browns, like so many others, lost their income, and their savings soon followed. They were broke. Never one to be deterred, Israel pressed on in the barrel business, another industry he had entered in the 1920s (perhaps learned from his father and brother), and by the 1930 census, his occupation was listed as a buyer for barrels. A third child, Bernard, was born in Philadelphia, and when he was seven or eight years old the family moved back to Vineland. Israel continued in the barrel business, as the majority of goods in Vineland were transported in barrels in those days. Even so, finances were extremely tight, and the Israel Brown family struggled.

40 Israel Brown and the Birth of National Hauling National Freight Inc For millennia, barrels were used across the globe as the most superior, most convenient form of shipping or storage container. In the twentieth century, though, pallet-based logistics and containerization became more common, as did modern refrigeration (GE released the first refrigerator to run off electricity in 1927). Barrels gradually lost their importance. As they did, Israel’s barrel business declined. Rather than accept defeat, Israel chose redirection: he adapted and embraced a new opportunity. This would prove to be a pattern for the family and the company. Technology changes would continue to revise the industrial landscape—first, from barrels to refrigeration, and later, from glass bottles to plastic bottles—but the family business adapted to these changes. The Brown family’s insight and ability to nimbly acclimate to the new environment would create many opportunities, allowing the company to prosper when others succumbed to the pressures of change. As Bernard remembers, “We had absolutely nothing. All my clothes were hand-me-downs. I remember sitting down at dinner and we had only one can of soup between the four of us.” Even as a child, Bernard was determined to improve his situation; he later remarked of those difficult times, “I made up my mind then that I was going to make something of myself.” Moving to Vineland from Philadelphia would have meant a significant shift for young Bernard. The city had been founded in the 1860s as a “Temperance Town,” an alcohol-free society based on agriculture and progressive thinking. By the early twentieth century, much of Vineland was involved in the poultry industry, which led to the city being dubbed “The Egg Basket of America.” The city also offered soil well-suited to growing grapes (thus the town’s name), and Welch’s had been founded there in 1869. Even by 1940, the population of Vineland would still be less than twenty-five thousand—far smaller than the nearly two million living in the “City of Brotherly Love” the Brown family left behind when they moved again. Israel put his hand to many things; if one endeavor did not succeed, he attempted another. He had tried a variety of businesses: groceries in Vineland, construction in Philadelphia, the barrel business in both cities. All these enterprises eventually failed to support their family, so he tried another. This time it took off—transportation.

41 National Freight Inc Israel Brown and the Birth of National Hauling THE BARREL BUSINESS For millennia, barrels were the “king of packages.” They were used across the globe for the storage and transportation of a broad spectrum of goods, from water to grains, oil to chemicals, tools to gold. They were also used for the storage and fermentation of wine. For two thousand years, barrels were the most superior, most convenient form of shipping or storage container. Bags and crates were less costly, but they were not as sturdy nor as easily manipulated and moved for the same weight. In the twentieth century, though, pallet-based logistics and containerization became more common, as did modern refrigeration. GE released the first refrigerator to run off electricity in 1927, and synthetic refrigerants based mostly on a chlorofluorocarbon chemical soon followed, which meant safer refrigerators were available for home and consumer use in the 1930s. Barrels gradually lost their importance. As they did, Israel’s barrel business declined. Rather than accept defeat, Israel chose redirection: he adapted and embraced a new opportunity. This would prove to be a pattern for the family and the company. Technology changes would continue to revise the industrial landscape—first, from barrels to refrigeration, and later, from glass bottles to plastic bottles—but the family business adapted to these changes. The Brown family’s insight and ability to nimbly acclimate to the new environment would create many opportunities, allowing the company to prosper when others succumbed to the pressures of change.

42 Israel Brown and the Birth of National Hauling National Freight Inc NATIONAL HAULING IS BORN Already having a truck to transport barrels, and facing the decline of the barrel business, Israel began to haul materials for road construction. With little money but a lot of guts, he established a new hauling company in 1932 named National Hauling. Eventually he secured a contract hauling gravel and purchased a used tractor for this purpose. He purchased more used trucks and trailers as the business grew, primarily hauling dirt and gravel for building roads. He maintained the equipment himself to keep costs low, not having the luxury of funds to hire others to do the work. By 1937, the company began to switch from dump trucks to general freight. The first freight hauler was a home-made tractor-trailer rig. In 1935, a major change occurred to the trucking and transportation industry when the federal government passed the Motor Carrier Act. This law gave the Interstate Commerce Commission (ICC) the authority to regulate any motor carriers or drivers who were involved in interstate commerce. The ICC controlled operating permits, licensed trucking routes, and set tariff rates. This meant that trucking companies faced restrictions against expanding to new areas because they could only haul on routes for which they had obtained licenses. 1939: TURNING POINTS The year 1939 would prove to be a watershed period for the Brown family, as it would for the rest of the world. This year, seven years after the company’s founding, National Hauling’s first warehouse and truck terminals were built. This milestone indicated that the family business was growing and thriving in spite of the economic turmoil that had gripped the nation over the last decade due to the Great Depression. World War II also began this year, and although the US had not yet officially entered the war, military demands for production were high. In 1939 Israel secured business with the US Army hauling coal for military needs at Fort Dix (formerly Camp Dix), an army base near Trenton, New Jersey—the same Israel and his brothers—another enterprise attempted

43 National Freight Inc Israel Brown and the Birth of National Hauling place he had enlisted for World War I service. Israel continued to build relationships with the Army personnel, and he would eventually secure a contract to haul iron ore. The most significant event for the Brown family, though, was a tragedy that did not occur on a distant battlefield, but at a gas station close to home. When Bernard was fourteen, his older brother, Sidney, was twenty-one and actively helping their father with the family business while Bernard continued in school. Sidney had graduated from high school with honors, worked for a while to earn the needed funds, and went to college at Temple University for a year. On this particular trip, Sidney was hauling freight for the Army and filling up at a gas station at Fort Dix, and his little brother Bernard was riding along with him. A spark occurred while Sidney was pumping the gas, and suddenly the truck exploded. Sidney became engulfed in flames and tragically died. Although Bernard survived this horrific Anna and Israel Brown event, it would haunt him the rest of his life. The boys’ parents were emotionally scarred. They struggled to come to grips with it for years, but never could get over losing their older son. Bernard had to grow up overnight. He began helping his father on the weekends while finishing school. When he graduated from high school, he was only sixteen—going to be seventeen in August. He had done some work for his father over the summers, such as shoveling coal on a contract his father put him on, but he was not heavily involved in the business like Sidney had been. Without Sidney to help Israel run the company, Bernard decided to work full-time for his father. He felt the burden to provide for his family and to prepare himself to lead their fledgling company. Despite the great pressure at a young age, he vowed never to give up, a promise he would keep his entire life. This vow would change the course of that life, and of many others as well.

Market Street, Philadelphia, early 1900s

45 National Freight Inc Bernard Brown and the Early Years CHAPTER 4 Bernard Brown and the Early Years I t was not initially in Bernard Brown’s plan to lead his father’s company. Sidney was being groomed for this; Bernard was busy with school. Yet after the tragedy of his older brother’s death, Bernard embraced the role that had been thrust on him—and became the company’s greatest standard bearer for fifty years. He drove the business forward against all odds, building it with his own two hands, investing the equity of blood, sweat, and tears into this lasting legacy. Bernard joined and worked on the family business as World War II raged on. For the Browns, as for other Americans, much of the 1940s was swallowed up with the war and its effects on American society. Like everyone else, the Browns must have felt the impact on their daily lives, from rationing groceries to quotas for gasoline. Bernard’s experiences of hardship during the Depression and World War II taught him the importance of self-reliance, frugality, and determination. Simply surviving was hard, and the family lived virtually hand-to-mouth. The customers were few and every transport assigned was a single engagement. In addition, other competitors were fighting for the same business, so pricing was driven by the customers—which often meant that little profit was left over after paying the drivers, gas, tires, and maintenance. Still, Bernard and his father continued to forge ahead, believing that their spirited efforts and refusal to quit would eventually place them in a better, stronger financial position…someday…. That day came in 1942. Bernard Brown

46 Bernard Brown and the Early Years National Freight Inc THE WAR YEARS I n 1942, Bernard was working with dump trucks on an US Army depot in Belle Mead, New Jersey, where some warehouses were being built. He became friends with some military officers on the base and eventually asked them about hauling additional goods. His new friends agreed to give him some new business, but Bernard still had three big problems: First, he needed additional trucks to haul the goods, and he didn’t have them. This was during the war, and every truck was impounded for military purposes. This valuable commodity was only available to civilians if they could obtain a certificate from the government granting permission to procure a truck. Second, he lacked the funds to rent or purchase the trucks, putting him in a tight spot even had there been used truck lots on every corner. Third, he needed additional drivers to operate the vehicles (which he didn’t have), who would need to be paid (with more money he didn’t have). Bernard was undeterred. He knew that obstacles were just opportunities in disguise. He went through the proper channels to apply for a certificate to procure trucks, and eventually authorization came through—first problem solved. He located the trucks and now had at least the potential for hauling the material. Next, he found drivers who were looking for work and willing to drive the trucks. He negotiated with them, arranging to pay them twenty dollars. National Hauling received forty dollars a ton from the government for the hauling, which meant that they would have money left over. The only step left was to acquire the needed funds for trucks, and this would prove the most challenging. Bernard went to Philadelphia and traveled from one bank to another on Broad Street, boldly knocking on door after door. His confidence gradually drained away as every banker had the same reaction: You don’t have any assets. You don’t have any collateral. I’m sorry, but we can’t help you. Finally, Bernard found a friendly banker at Philadelphia National Bank named Mr. Jones who heard him out and did not immediately turn him down. Mr. Jones nevertheless frankly told Bernard, “You have nothing.” Undaunted, Bernard replied, “I agree.” “Will you pay me back?” Bernard looked Mr. Jones in the eye. “Yes.” Perhaps that banker saw the fire burning in Bernard— his passion and determination—and that was enough to convince him to do business with the young man. Perhaps his instincts told him that Bernard would live up to his word and be a success. Whatever the reason, Mr. Jones was willing to look beyond Bernard’s blank balance sheet and arrange for a business loan. It was the first time Bernard was able to borrow from a bank. He did business with Mr. Jones until the banker retired, and then continued with the same bank years after that. This job hauling material for the Army was the first time that Bernard and his father made some decent money, and from there they were able to ramp up the company’s growth. Bernard was determined to make good on his promise to pay the bank back. After he got the loan, Bernard remembers, “We worked hard, seven days a week. I was the day and night dispatcher. I slept when I could, but it wasn’t very often. Instead, I worked and worked and worked.” All that work paid off. The bank loan was a turning point for the company, which grew from then on. They looked for ways to make the most of the funds they had received; for example, they had only one phone to keep the cost down. That same year, business expanded to the point where they could build their first office on West Avenue in Vineland and also construct a small maintenance shop. Young Bernard and his father kept building relationships with their military customers, and soon they won a government contract to haul iron ore to Elizabeth, New Jersey. Their business was growing and by 1944 National

47 National Freight Inc Bernard Brown and the Early Years Freight had a fleet of seventeen tractor-trailers. Floyd Pooley, an early employee, and a very close family friend, recalls the hard-charging Israel Brown (“Izzie” to his employees). “Izzie built the fleet up. He always said he’d never lose a customer for lack of equipment––and I don’t think he ever has,” Floyd says proudly. When the war ended, though, their revenue coming from the military was gone. They had to go out and develop other lines of business, so they tried many different things, something Bernard learned from his father—if one attempt doesn’t work, try something else. As with Israel’s solo endeavors, some of these new business initiatives were successful, and some were not. Still, they worked themselves day and night, and their business as a whole continued to expand. A big coup was winning a post-war government contract for the Veterans Administration in 1945. After the war, Israel and Bernard also constructed a building in Vineland for Gross Brothers, a clothing factory. Then they built a Pep Boys store in Vineland, and they are still a tenant after sixty years. The Browns got into the real estate business indirectly. They went in with partners originally, but that didn’t work out. When things were going well the partners were happy, but when things went poorly, their partners started pointing A driver’s logbook

48 Bernard Brown and the Early Years National Freight Inc “I have always progressed on the belief that if you set your mind to it, and stay at it, you can accomplish anything.” −− Bernard Brown fingers. Preferring independence, the Browns learned to do it themselves, without partners. After securing an arrangement with the Civilian Conservation Corps (CCC), they would shovel coal onto the trucks out of Port Elizabeth, New Jersey and take it to the camps. The CCC had been aiding unemployed men since 1933 as a major part of President Roosevelt’s New Deal. Many of the jobs they offered were unskilled, manual labor jobs. Most of these jobs were related to the conservation and development of natural resources in rural lands owned by federal, state, and local governments in New Jersey, New York, Pennsylvania, Ohio, New England, the District of

49 National Freight Inc Bernard Brown and the Early Years Columbia, and Virginia. With business growing, and with some additional funds saved, for the first time Bernard was able to purchase a new trailer. It was a sound business decision, as maintenance costs would be lower, and it provided the prestige of showing customers they had the funds for new equipment. He had always been content to set aside any extra money for family needs, so used equipment had been the preferred resource. But now, with their business outlook increasingly positive, he believed he could afford this expense. It was an important milestone in his life…and maybe the first time he felt a real sense of confidence that he had turned a corner. The first time Bernard was able to buy a brand new trailer, he wanted his mother, Anna, to see it, knowing she would share his pride. She was very sick at the time and bedridden at her house. Bernard asked the nurses to prop her up and brought the trailer around where she could see it through the window. It was a very special moment and he wanted to share this with her. Bernard’s mother was stricken with a brain tumor when he was in his early twenties. Sadly, although the tumor was operated on, she passed away in 1950. Despite their grief, Bernard and his father pushed forward and continued to develop their business. It may have even provided a welcome distraction, and Bernard knew his mother would have been proud of their accomplishments. Growing the business presented its own challenges, though; Bernard and his father tried a variety of ways to generate additional income, but they had no savings and no credit, so it was difficult to start any new operations or even to find work sometimes. They began hauling produce using dump trailers, but that was unstable due to seasonality. They only made money in the summer, and after harvest season the business wasn’t there. They pressed on, though. Trying new things was a constant for Israel, who always shook off defeat and pushed forward with another venture, and he passed this habit along to Bernard. What worked, he kept and expanded, and what didn’t work, he—in his words—“took his licking and got out.” This would be Bernard’s mantra his whole life: “Try new things—don’t give up.” And now the third generation of Browns still continues in this manner, encouraging employees to be innovative and entrepreneurial. THE FOUNDER’S PASSING I n 1952, Israel passed away from sinus cancer at his daughter Reba’s home, at the age of sixty-two. He was buried in Alliance Cemetery in Norma, Salem County, New Jersey. When Israel passed away, he owned two companies, National Hauling and Federal Freight. After his passing, Bernard and Reba divided up the company. Bernard took the larger entity, National Hauling, and later renamed it National Freight. His future was set—he would take the lead with National Freight. Yet the path he would take remained unclear, his success uncertain. He was determined to grow the business he had inherited, and as time passed he came to take great pleasure in it. For Bernard, the real joy is not so much in winning new customers and supplying them with exceptional service—although he is committed to doing so—but in simply playing the game…and winning. At twenty-six years old, Bernard had big shoes to fill. Yet with the reins to a newly renamed company in his hands, and the second half of the twentieth century before him, he would have many chances to hone his entrepreneurial skills.

Vineland, New Jersey, early 1900s