BLEED BLUE

51 National Freight Inc Land of Opportunity: Vineland, New Jersey With all of the opportunities available in a metropolis such as Philadelphia, it might seem an odd move for Israel Brown to choose to begin his hauling business in the much smaller town of Vineland. Yet this city in southern New Jersey, about forty miles from Philadelphia, would offer the perfect ingredients for the Brown family to create a recipe for success. Vineland was founded in August 1861 by Charles K. Landis, a visionary with the dream to create a town where hardworking men could earn a living farming the land. He envisioned the town as an alcohol-free utopian society based on agriculture and progressive thinking, filled with farms, orchards, and vineyards. So, he named this new city Vineland. Landis began advertising his city throughout the US and overseas, and by 1865 a population of roughly 5,500 had settled in the town. One group of progressive people formed “Friends of Progress” with the idea to have a united organization to discuss and promote progressive thinking. Many of their discussions focused on equal rights. On November 3, 1868—fifty-two years before the nineteenth amendment was passed allowing women the right to vote—172 Vineland women cast votes in the presidential election, as they would for years to come. Throughout the decades, Vineland men and women continued to be at the forefront of many reform movements. In the early decades of the twentieth century, industries such as egg production and glass making ensured that Vineland remained a prominent part of the regional economy. At one point, Vineland produced more eggs than any other Downtown Vineland, New Jersey, 1960 area in the nation. An impressive one million eggs passed CHAPTER 5 Land of Opportunity: Vineland, New Jersey

52 Land of Opportunity: Vineland, New Jersey National Freight Inc through the Vineland Egg Auction daily during its heyday. And, of course, in 1932 a small company named National Hauling was founded by Israel Brown, one that would become a global giant with roots still firmly planted in the small town of Vineland. THE JEWISH COMMUNITY IN VINELAND The Jewish community had already been a driving force in Vineland for decades when Israel and his family arrived on the scene. In the 1880s, pogroms, poverty, and anti-Semitic laws in Russia caused a historic exodus of Jews, and Jewish immigrant colonies were established outside the city limits of Vineland. The odds were against these early settlers. The sandy soil was poor, the land needed to be cleared of oak and pine trees, and the markets were distant. Worse, the settlers, mostly tradesmen or scholars, were ill-prepared for a life of clearing tree stumps and birthing calves. Still, the Jewish population in Vineland and its surrounding communities grew slowly to about 3,500 in 1901, and it would peak at just over ten thousand people by the 1960s. The largest influx was from several hundred survivors of the Holocaust, drawn to the area from large cities such as New York and Philadelphia with offers of assistance in the establishment of poultry farms and a quiet country life. These immigrants formed the Jewish Poultry Farmers’ Association and a free loan society, as well as several diverse congregations and a Jewish day school.

53 National Freight Inc Land of Opportunity: Vineland, New Jersey

55 National Freight Inc Spirited, Sturdy, and Strong: Shirlee Brown With Bernard’s independent spirit and can-do attitude, it would be easy to focus on his self-reliance through the years, but the truth is that he faced none of it alone. He and his wife, Shirlee, have stood by each other through the countless joys and challenges that life brings during more than sixty-five years of marriage. This couple did not make an obvious match. Bernard Brown and Shirlee Greenblatt literally came from opposite sides of the track; theirs was an unlikely romance, and no one could have guessed that it would become a marriage to last over sixty-five years (and counting). Yet they had more in common than met the eye. Bernard and Shirlee both came from a family of entrepreneurs and being raised in such an environment surely helped this couple to foster such a culture of entrepreneurial spirit at NFI. Bernard and Shirlee both came from a family of entrepreneurs. Shirlee grew up with three siblings in a well-off, solidly middle-class family, and she enjoyed the advantages of a full education and a cultured home life. Her father was a prominent citizen who ran a poultry business supplying chickens to grocery stores. He had a heart attack at the age of forty-one, but he recovered and later got into the moving business with Shirlee’s brothers. They operated Wares Van and Storage, a franchise of United Van Lines, and specialized in the storage and relocation of furniture and other household goods. After high school, Shirlee’s parents encouraged her to continue her studies at a university, and she made plans to attend college. Her own dream was to pursue her interest in modeling, though, so she made the tenacious decision to CHAPTER 6 Spirited, Sturdy, and Strong: Shirlee Brown follow her heart and postpone her college attendance to begin a modeling career. Her new plan, a bold and progressive move for a young woman in the late 1940s, was to pursue modeling for six months in New York City before starting classes. Shirlee’s mother knew Israel Brown, and she had heard that Bernard often traveled to New York on business, so when Shirlee needed a ride to the city, her mother arranged it with him. Shirlee and Bernard had met before but did not have much of a connection up to this point. On the drive to the Big Apple, it was not instant and mutual attraction—far from it. During the trip, they shared little conversation, and it was apparent to them both that neither had romantic interest in the other. He was six years her senior, for one thing. For another, she was a model about to start college; he was a truck driver hauling coal. Their worlds must have seemed very different. A year later, things changed. While Shirlee was on winter break from the University of North Carolina, she returned home to Vineland for her Christmas vacation. Over the break, She was a model about to start college; he was a truck driver hauling coal.

56 Spirited, Sturdy, and Strong: Shirlee Brown National Freight Inc a friend of hers arranged a blind date with Bernard Brown for a New Year’s Eve party. This gathering would be a milestone. At this party, Bernard and Shirlee had a chance to talk more and make a deeper connection. “This night is when our romance started,” Shirlee recalls. During the next spring, Bernard traveled to Florida with friends for a vacation, and he stopped to visit Shirlee on campus in North Carolina. This visit must have rekindled their attraction, as that reunion would lead to on-again, off-again dating for about two years. Still, as Shirlee puts it, “It was not love at first sight.” She received plenty of attention from other suitors, many of whom were comfortable and familiar for her to be around because their families already knew each other well. Over time, Bernard gradually realized that he held more than a passing fancy for Shirlee, and he wanted a deeper level of commitment. Their relationship had developed into a full-fledged romance. Yet her other suitors continued to pull on her time and attentions, and Bernard heard through the grapevine that one of her male friends was planning to give her his fraternity pin. “I knew I needed to move fast,” Bernard remembers. “Since I didn’t have a fraternity pin, I had to get creative.” How could he show this smart, beautiful, cultured young lady that he could offer her more than any of the other men—something deeper and more lasting than connections or prestige? He had creativity, tenacity, and determination, and he could offer her the security and confidence that these would afford. Bernard came to her, holding something small and shiny. “Shirlee, I don’t have a fraternity pin. But I can offer you something else: a good, strong safety pin.” Shirlee had other suitors with means way beyond what Bernard could offer her at the time. But she saw something in Bernard. Although he did not have a fancy fraternity pin to offer, Shirlee valued the reliability, security, and strength represented by the safety pin far more than the social credit associated with a sophomoric college tradition. It was a testament to the young man’s gumption and innovation, and Shirlee could not help but be impressed. She thought to herself, This guy is going somewhere…. The timing was not right for engagement, though. Bernard’s mother was very sick, and it was important to him that he be able to share this important event with her. He planned to wait until his mother was well before asking Shirlee to marry him, but it became apparent that her condition was not going to improve. He talked to his father and his sister, Reba, and together they agreed that time was short and he should act now. On a Friday in March, while Shirlee was home in Vineland for spring break, Bernard picked her up and they went to his house. Bernard went upstairs to see his mother in her bedroom, where her nurse was attending to her. Shirlee followed a few minutes later to see what was going on and found Bernard talking to his mother and crying, overcome with emotion. He composed himself, took Shirlee to the kitchen, presented her with an engagement ring, and asked for her hand in marriage. The moment had come. He proposed, and Shirlee delightedly said yes. Bernard went back upstairs to proudly show his mother the ring, and she told him she knew that she was not going to live much longer, and that this made her very happy. Bernard could not help crying again, tears of joy mixed with sadness. At the end of the next month, his mother passed away. It was such an emotional time for them all—bittersweet in the most powerful ways. “A new happy beginning,” Shirlee recalls, “and a sad ending.” It was a new happy beginning and a sad ending. Shirlee went back to her studies at the University of North Carolina, and they carried on their romance through letters,

57 National Freight Inc Spirited, Sturdy, and Strong: Shirlee Brown excitedly discussing their future together. Shirlee has kept all of his correspondence to this day. Meanwhile, Bernard continued working. Although many of his friends had enlisted or been drafted, Bernard was deemed essential to the World War II effort and had a special exemption from the government. When his friends came back from their service, it did not take long for them all to become very close again. The summer after Bernard’s mother passed away, he and Shirlee took an opportunity to go with a group of friends to Atlantic City. It was a chance to take a break from work and sorrow and focus on life and love. Under the summer sunshine they enjoyed the Steel Pier amusement area, and as the sun set they went ballroom dancing to jazz, swing, and Big Band greats such as Tommy Dorsey and Benny Goodman. The Brown family business was beginning to thrive, so Bernard had the thrill of some pocket money, and he did not mind spending it on his new fiancée. They had wonderful evenings of dinner and dancing, with Bernard and Shirlee celebrating their engagement and their upcoming life together. Bernard had the thrill of some pocket money, and he did not mind spending it on his new fiancée. They continued to spend time together and go on dates over the summer and into the fall, and around November they decided to set their wedding date for February. No need to postpone: it was time to plan the big celebration. Bernard wanted a large wedding, so he approached Shirlee’s father to let him know that the Browns wanted to participate in planning and funding the event. The two families pitched in, and when the big day arrived and the young couple was joined as one—on February 18, 1951—it was a fairytale wedding, held at the Strand Hotel in Atlantic City. A memorable, whirlwind honeymoon followed in Mexico. With plenty of laughter and unforgettable memories, it was time and money well spent. They spent three weeks in Mexico for their honeymoon and returned home with only ten dollars left in their pockets. Yet they were immediately faced with a sobering reality— Bernard’s sister met them at the airport when they returned from their honeymoon, and she wanted them to know how sick Bernard’s father, Israel, was. They were immediately faced with a sobering reality— Bernard’s father, Israel, was very sick. The first year of their marriage would be largely consumed with Israel’s illness, caring for him, taking up the slack in the family business, and traveling back and forth to the hospital.

58 Spirited, Sturdy, and Strong: Shirlee Brown National Freight Inc A NEW LIFE TOGETHER Shirlee reassured Bernard that she knew how important it was for him to be there with his father, and she promised that she would make their home with Israel. It was not the picture she had once painted for herself, but Shirlee always valued her family and would have it no other way. They moved into the house together, and Shirlee was a devoted and caring wife and daughter-in-law. It was an old, three-story home, close to the electric plant. When Shirlee hung clothes on the line outside, she would go out later to find them covered with soot. Her first bed in this house was an old, iron bed with uncomfortable springs and a hole in the mattress. Still, these were not the important matters to Shirlee—what mattered was supporting her new husband and displaying the selflessness and loyalty that were part of what he fell in love with. She partnered with her husband and helped care for his sick father, and she learned to handle all the household duties and life’s surprises with very little money. For Bernard’s part, he worked diligently and promised his new bride that they would have a new home in the future, something closer to the dream she held in her head. This promise was not only for Shirlee’s sake—he was thinking of the next generation, too. “I knew I didn’t want my children to have the same type of background that I came from,” Bernard recalls. “We worked hard to get ahead.” Israel would have been proud to see how far his son would advance the family’s legacy with Shirlee by his side; sadly, he would only live to see the first year of their marriage—one year after their wedding, he passed away. Not long after, Shirlee found out she was pregnant with their first child. Their daughter, Anne, was born that fall, when Bernard was twenty-eight. It was another bittersweet occasion, as they wished that Bernard’s parents were there to celebrate the birth of their granddaughter. Anne was named in memory of Anna Brown, Bernard’s mother. Money was still very tight, and in many ways the young parents were unprepared for the new responsibilities that come with parenthood. They did not even have a crib for little Anne when they brought her home from the hospital. With love, work, and perhaps a bit of luck, though, they all survived and learned to face each day as a family. They continued to live in the Brown family home through the birth of their second child, Ike, whom they named in honor of Israel. Two more sons would follow, Sid and Jeff, each child two years apart. Sid was named after Bernard’s late brother Sidney, while Jeff was named after his mother’s grandfather, Jacob Greenblatt. With love, work, and a bit of luck, they survived and learned to face each day as a family. Although funds were limited at first for the young and growing family, Bernard continued to pour his time, sweat, and heart into the family business. This hard work paid off, and every year brought improved quality of life and greater financial stability. The years passed, and Shirlee continued to support Bernard as his sphere of influence grew. As Bernard became We had all these problems in the beginning but found the strength. We dug down deep to keep going. Shirlee and I had one another to garner strength from. −− Bernard Brown

59 National Freight Inc Spirited, Sturdy, and Strong: Shirlee Brown more successful, he became involved in the community, something she took pride in. He became active on the board of the local hospital, the synagogue, and the YMCA; he also became the youngest member of the founding board of the community college and became chairman of the board for two consecutive terms. “We accomplished a lot,” he remembers. “Things got better every year. We were very happy.” Bernard also made good on his promise, and Shirlee no longer had to sleep on an old iron bed or brush soot off her clothesline. “I eventually built a home for Shirlee, her ‘dream home’—a Pennsylvania grey stone house on an acre,” Bernard says. “It’s still a beautiful home.” And through it all, Shirlee has stayed by his side, uplifting him through thick and thin. She has served as a compass and a sounding board for Bernard through countless difficult decisions and challenging obstacles, and her kindness and love have been an endless support. “My wife is a wonderful, caring wife,” Bernard says. “She steers you in the right path and tells you when you do good and when you do bad. She is an excellent listener, and she listened to me whenever I had a problem and let me talk it through. It’s a wonderful thing that she speaks out and examines a problem and asks questions. This really helps me make a decision.” Shirlee has similar esteem for her husband, describing him as her “Rock of Gibraltar,” someone who is very solid, calm in a crisis, and a clear thinker. “He’s not judgmental and is easy to live with. He doesn’t get excited about the unimportant things. He’s very generous—both kind and giving. He’s a wonderful father and grandfather.” It’s easy to see that the admiration remains strong and mutual in this couple as their love story continues. “We both respect each other immensely,” Bernard says. “We complement each other in so many ways.”

61 National Freight Inc Regulation and the Motor Carrier Act of 1935 The trucking industry was brought under the control of the Interstate Commerce Commission through the Motor Carrier Act of 1935, which enacted multiple regulations and required new truckers to seek a “certificate of public convenience and necessity” from the ICC. Companies already operating in 1935 could automatically get certificates, but only if they were able to document their prior service to the satisfaction of the ICC. Fortunately for Israel Brown, National Hauling had been formed three years prior, so Israel did not face the same restrictions imposed on companies created after the act was passed. Still, there were plenty of fresh regulations to abide by. Under the 1935 legislation, new or expanded authorities to transport goods were almost impossible to secure. If a trucking company wished to enter a particular market, the only practical approach was to purchase the rights of an existing trucker. By the 1970s, the authority to carry certain goods on certain routes was selling for hundreds of thousands of dollars, either sold directly or at auctions. Because the commission officially disapproved of “trafficking” in rights, its regulations were hostile to mergers and purchases and attempted to restrict authority as much as CHAPTER 7 Regulation and the Motor Carrier Act of 1935 possible. As a result, a trucking company could not apply for a single, encompassing authority to haul all goods across the country; in the application, the company had to specify what goods it would haul, where it would start from, and where it was going. Authority was only granted for these specifics, and the results often defied logic. In some cases, carriers had to go hundreds of miles out of their way, adding many hours or even days to the transport. It seemed as if trucking companies could hardly do anything without filing paperwork with the ICC. National Hauling weathered the storm of regulation, thanks in large part to the connections and friendships Israel and Bernard had already made before the 1935 legislation was even passed. It also helped that National Hauling started out hauling locally, and their military contracts carried military exemptions that severed the typical strings attached. These military contracts allowed for more consistent work, even in the midst of a hyper-regulated environment, and led to much-needed profits—even if small and gradual. The result was that National Hauling continued to expand, despite working in an environment that was not always friendly to growth. National Hauling weathered the storm of regulation, thanks in large part to the connections and friendships Israel and Bernard had already made.

63 National Freight Inc 1950s – Becoming Profitable The 1950s were a time of great contrast, both for National Hauling and for the nation at large. In many ways, the decade marked the end of one era and the beginning of another. It was a time of poodle skirts and bomb drills, rock ‘n roll and the Red Scare, more money and greater speed. For much of the country, the times could only be described as “booming”—a booming economy, booming suburbs like the Levittowns, and of course the baby boom, which brought about four million new Americans into the world every year of the 1950s. Unemployment and inflation rates were low, and wages were, in general, high. People were earning and spending money like never before, and there were a host of new diversions and consumer goods offering opportunities to buy, buy, buy. Yet Americans also faced the perceived clear-and-present danger of Communism and other un-American activities. Children practiced bomb drills in school and watched “Duck and cover” cartoons with Bert the Turtle. Dwight D. Eisenhower became the first Republican president in twenty years, and as with Truman before him, he saw Communism as a force striving for world supremacy, and this shaped America’s domestic and foreign policy for years. In the newspapers, television shows, magazines, and radio programs of the time, the Cold War fight was presented as a battle pitting good against evil, light against darkness. Senator Joseph McCarthy went on the warpath against suspected Communists, and the trial of the Rosenbergs captured the media’s attention. Newspapers featured headlines about such events as the war in Korea, congressional hearings designed to target Communist sympathizers, and, later, the Suez Crisis and tensions in Egypt. CHAPTER 8 1950s: Becoming Profitable For National Hauling and the Brown family, the 1950s likewise held great extremes as the pendulum of fortune swung from one side to the other. These years were a breakout decade for the company. Continued government contracts, new vertical markets, and an expanding base of customers would provide years of growth. National Hauling began to establish a model for success, and despite numerous setbacks and even tragedies, they began to thrive. It all resulted from Bernard’s passion, work ethic, and dedication to his growing team of drivers. But the decade started off with the death of Bernard’s mother in 1950, only a month after Bernard and Shirlee’s engagement, and other tragedies struck soon after. The company’s first building had been built in 1942, a small maintenance shop with an office and a few truck bays. Less than a year after Bernard and Shirlee’s wedding, this office and garage burned down. “We lost everything,” Bernard remembers. “We had some insurance, but not enough to cover the loss. The fire was quite a financial set-back, and we had to start over again.” Not long after the fire, Israel Brown passed away from brain cancer, another tremendous loss. “We had all these problems in the beginning, but we found the strength,” Bernard says. “We dug down deep to keep going. Shirlee and I had one another to garner strength from.” Bernard, like his father had been, was extremely frugal and conscious of every penny they spent. He was determined to protect everything he had, and this vigilance was only reinforced by the losses to the fire. He got in the practice of storing new truck tires in the basement of their house. Shirlee was less than happy about having tires stored in their home,

64 1950s – Becoming Profitable National Freight Inc but Bernard was adamant that this was the best way to protect their valuable inventory. Following the loss of their first office and garage to fire, in 1952 a second, larger facility was constructed in front of a maintenance shop at 57 West Park Avenue in Vineland. In the early 1950s, there were only four people working in the office, along with twenty truck drivers. Bernard wore every hat necessary to keep the business moving forward. “He did everything,” Shirlee recalls. “He dispatched all the trucks, and we only had one phone in the office with an extension in our house, and it was always in use during the day. If there was an accident, the phone would ring all night long.” “I really grew up after my father passed away,” Bernard says. As National Hauling’s business with the military in the post–World War II era began to decline, Bernard leveraged these military relationships and soon won his first General Services Administration (GSA) contract for the Department of Defense transporting barium chromate, a yellow, sand-like powder used by the US military in a number of useful capacities. This contract, along with a previous contract transporting iron ore for the US military, were profitable engagements, something the company badly needed. The Brown family and National Hauling had finally turned the corner. These were Bernard’s first significant breaks, allowing National Hauling to establish some savings and Bernard to re-invest in the company. Because of this, Bernard continued working to win more government contracts. Some were profitable, while others were barely break-even, but they

65 National Freight Inc 1950s – Becoming Profitable all kept trucks rolling and drivers staffed, and they allowed National Hauling to increase the number of employees and trucks it utilized. National Hauling continued well into the 1970s to win more US government business. One of these significant GSA contracts was with the Veteran Administration Depot—a distribution center. National Hauling would supply ten trucks on Sunday night to load up various medical supplies, then transport these materials to veteran hospitals around the area. With a steady stream of business for the US government and military, Bernard decided to open the first National Hauling terminal outside of Vineland in Somerville, New Jersey, close to the Veterans Administration Supply Depot. This provided more economical and timely delivery of goods for customers in that area. This model of opening up terminals close to customers would prove a key ingredient to the success of NFI for years to come. Bernard understood that being close to the customer’s areas of interest— whether a distribution center or manufacturing facilities—put his company in their field of sight, enabled quicker response to customers’ requests, and grew personal relationships. He could leverage these relationships to make connections with other people in the same business or in close proximity to these terminals. Years later, long-tenured NFI employee Paul Nolf would comment about Bernard Brown the visionary: “Bernie always thought outside the box. ‘What’s here? How can I leverage this business and our relationship to expand, to diversify, and create more market momentum to weather the bumps in the economy?’” His drive to succeed kept him going. He worked seven days a week. He never stopped. He is the strongestwilled and most determined individual I have ever met. −− Shirlee Brown Headquarters before 1974, when the corporate office was built. In the houses to the left were various departments — safety, operators, human resources.

66 1950s – Becoming Profitable National Freight Inc One difficult hurdle for National Hauling was the fact that although these government contracts were steady business, they were still “you call we haul,” not firm contracts. Because of this uncertainty, Bernard had to hustle every day to find additional business. Expanding the customer base was the only way for Bernard to continue to grow the company. To that end, Bernard worked feverishly, building relationships and leveraging contacts to find new customers. And right in his hometown of Vineland and Cumberland County were two new customers who proved fortuitous. Manischewitz, a Cincinnati, Ohio-based company, had purchased a processing plant located in Vineland in 1954. Bernard seized upon this local, newly arrived customer and secured the company’s transportation requirements. The Manischewitz Vineland facility manufactured all of the company’s canned and jarred products, including old familiar favorites like gefilte fish, chicken soup, and borscht. Workers there packed about two million pounds of fish and one million pounds of beets each year. This was a major boon to National Hauling, and Manischewitz soon became its largest customer. National Hauling was continuing to grow, and in 1955 it was time for a new name: National Freight. National Hauling was by all counts a successful venture that Bernard’s father had begun, but the company had entered a new era and passed beyond Israel’s vision and into Bernard’s. The fresh name, along with the changing identity it symbolized, was a reflection of Bernard’s determination to move

67 National Freight Inc 1950s – Becoming Profitable forward and make the company into something different, something greater than it had been before. A boost for this forward motion and growth came from an unexpected source, one that benefited National Freight even more significantly than arrangements with local companies like Manischewitz. This unexpected source was the abundance of sand right in Bernard’s back yard. VINELAND AND GLASSMAKING F irst, a bit of background: Throughout the first half of the twentieth century, most of Vineland was involved in the poultry industry, which led to the city being dubbed “The Egg Basket of America,” although new technology, which forced the lowering of egg prices, eventually ended the poultry business in Vineland. Manischewitz, Vineland, New Jersey manufacturing plant

68 1950s – Becoming Profitable National Freight Inc Vineland continued to grow, though, attracting various industries such as food processors and clothing companies in addition to farming, as well as a major industry that would help chart the course of National Freight’s success—glassmaking. In effect, the American glass industry got its start in 1739, when Caspar Wistar emigrated from Germany in 1717 and built a glass factory in Salem County, New Jersey. Recognized today as one of the great names in American glass, Wistar captured the large Philadelphia market by the late 1930s with his free-blown, dark green bottles. During the forty years that Wistar and his son operated America’s first commercially viable glass factory, the indentured servants at the factory found themselves continually in debt to the company store. Many of these servants ran away to begin their own shops and expanded South Jersey’s glass industry, and over the years glassmaking became a popular trade in the state. From 1840 to 1860, nearly one-third of America’s glass was made in New Jersey. In 1858, the glass container was revolutionized by the first Mason jar, patented by tinsmith John L. Mason, who was born in Vineland in 1832. In 1889 George Jonas built the Minotola Glass Company, which was later sold to Owens Illinois Glass, along with Cumberland Glass Manufacturing Company, which had been established in Bridgeton. Cumberland County, New Jersey, where Vineland is located, possesses a rich supply of sand, the key commodity used in making glass. Because of its plentiful supply of silica (sand), the key commodity representing 70 percent of glass’s composition, many glass manufacturers located factories in and around Cumberland County. The glass business thrived in New Jersey in the 1940s and 1950s, when glass was a booming industry.

69 National Freight Inc 1950s – Becoming Profitable All these glass manufacturers in southern New Jersey did not escape the ever observant, constant pursuer of new opportunities, Bernard Brown. These factories required a constant supply of silica (sand), soda ash, and limestone, so Bernard secured some initial business hauling these commodities to glass manufacturers in the area. One relationship led to the next. This would soon provide a new customer base—glass bottle transport—for his fledgling company, one that catapulted National Freight forward for years to come. The next logical business progression was to move up the value chain for these customers and transport the end product—glass bottles. With his salesmanship ability, Bernard Glass bottle lab Glass bottle manufacturing Owens bottle workers

70 1950s – Becoming Profitable National Freight Inc secured a contract for hauling bottles for Brockway Glass, which had a new factory located in Freehold, New Jersey, in 1956. As this business relationship grew, National Freight opened a terminal in Freehold in 1960—now the second terminal outside of its home base of Vineland—to further support this customer. Bernard then began focusing on other potential customers in and around his two terminals in Somerville and Freehold. There were three primary motivations: 1. Garner fresh business from new customers. Bernard knew that the only way forward was to expand, to sell his services to a wider clientele. 2. Secure backhaul. By reducing ‘dead heading,’ or driving back without a load to haul, Bernard could effectively double the revenue for each trip. 3. Gain operating authorities. Without these, National Freight had to stay in New Jersey and could not transport out of or into New Jersey from another state. Over the next few years, National Freight hauled significant truck loads of bottles for other glass bottle manufacturers such as Glenshaw, Anchor, Knox, and the big daddy of them all, the largest glass bottle manufacturer in the world, Owens-Illinois. Owens-Illinois established a large presence in New Jersey, beginning in 1930. They operated four glass plants: the Bridgeton and Glassboro locations, a third plant in 1963 in North Bergen, and a subsidiary, Kimble (specialized pharmaceutical glass products), in Vineland. As the 1950s drew to a close and a new decade began, a solid foundation had been built for National Freight— a profitable business and a large customer base of glass bottle transportation. The company’s terminals were expanding, and their backhaul efforts were paying off. The launching pad was set. Soon a new opportunity would arrive that would count down the blast-off: fiberglass transportation for Owens-Corning, which would prove the centerpiece for Bernard’s grand strategy he envisioned— becoming a dominant carrier along the Eastern seaboard.

71 National Freight Inc 1950s – Becoming Profitable Owens-Illinois, Vineland, New Jersey

73 National Freight Inc 1960s – The Grand Plan, Phase 1 & 2 Bernard Brown always advanced by thinking big. In later years, he would tell many, “I had no choice. I had to provide for my family, and I was determined to push boldly forward, no matter the circumstance.” Many personal misfortunes haunted him—his older brother Sidney’s death in a horrific truck explosion, his mother’s and father’s painful, long-term battles with cancer, a fire that destroyed his office. His reaction to each tragedy, and his protection against each future threat, was the same: Push ahead. Think big. Try new things. A personal and business philosophy developed in Bernard, the combination of a positive mental attitude and a time-honed survival instinct. He constantly told himself: Move forward. Don’t give up. We can do this. As the 1960s began, the stage was set for Bernard’s forward thinking to unveil and execute a grand plan: Build an East Coast transportation network for National Freight. Finding and maneuvering the pieces of this puzzle would take up the vast majority of the 1960s. It was accomplished one step at a time and carefully executed in phases to minimize the financial gamble and the possibility of missteps. Still, substantial risk was involved. Thankfully, Bernard was never afraid of risk; in fact, he relished it—he knew that nothing great could be achieved without it. And achieving his grand vision would require risk aplenty. CHAPTER 9 1960s: The Grand Plan, Phase 1 & 2 Phase 1 TERMINAL EXPANSION & GLASS BOTTLE TRANSPORT Throughout his life, Israel Brown tried a succession of new ventures, and if one didn’t work out, he moved on to the next. This trait was passed on to his son Bernard, who saw the benefit in experimenting with a variety of approaches in order to find the best among them. And when something worked well, he stuck with it. In the 1950s, he had struck upon a key strategy that required risk and investment, yet repeatedly proved to work remarkably well: opening new terminals in close proximity to customers’ large manufacturing plants and distribution centers, even in advance of any business arrangements, and trusting that the business would come. The approach required putting himself in the mindset of his customers, understanding the ways they thought, and anticipating their needs. This strategy succeeded in spades. Recognizing an effective tactic when he saw one, Bernard guided National Freight in the late 1950s through opening a series of these new terminals near customers’ plants and distribution centers. As a result, the company was able to secure the vast majority of these customers’ transportation business. Bernard and his team also secured new customers in and around these terminals, all of which grew hauling capacity. This approach drove steady business with existing customers and established new customers. During this time, Bernard continued to seek and secure work transporting glass bottles, taking advantage of the booming glass industry in New Jersey. There were plenty of

74 1960s – The Grand Plan, Phase 1 & 2 National Freight Inc glass manufacturers to choose from in and around Vineland, and Bernard drew on his connections and established relationships to point these potential customers to National Freight. Combined, this business created the cash flow needed to accelerate the company’s growth and expansion thrust, and it put National Freight in a prime position to be ready for Phase 2. Phase 2 OWENS CORNING FIBERGLASS (OCF) AND THE HOUSING BOOM The next step was to secure a large customer to leverage, thus expanding National Freight’s footprint in a significant way. Rather than procuring one small customer after another, Bernard realized they needed a big one. Bernard set his sights on Owens-Illinois. Their four glass bottle manufacturing facilities in New Jersey already drove a lot of hauling revenue for National Freight, but more importantly this customer provided a direct path for National Freight to their parent company: OCF, the largest manufacturer of fiberglass for thermal insulation. Bernard’s timing was perfect. In the mid-1950s and throughout the 1960s, a major housing boom occurred. OCF needed new plants as fast as they could open them. And Bernard was determined that National Freight would become their carrier of choice. There was no doubt about it—times were changing. Everything was bigger, faster, shinier. These decades were some of the most prosperous economic times in the nation’s history, and every industry in the country was dramatically impacted and either evolved or declined. The automobile industry not only adapted and survived, but its growth contributed to the success of other industries— including trucking. Meanwhile, an increasing number of Americans considered themselves part of the middle class, which meant they identified with the goal of home ownership and felt comfortable pursuing it. The housing boom continued well into the 1960s, with large builders constructing millions of affordable homes to keep up with the residential housing demand. It all combined to mean a growing transportation industry and an ever-increasing need for the materials to construct the millions of houses springing up in suburbs across the country. There was an invisible link between these two developments. The pieces were all there, ready to be assembled together, if only someone could see the connection. Bernard Brown saw it.

75 National Freight Inc 1960s – The Grand Plan, Phase 1 & 2

76 1960s – The Grand Plan, Phase 1 & 2 National Freight Inc OCF AND NATIONAL FREIGHT By this point, National Freight had been involved with the glass industry for a while, and Bernard was looking for ways to deepen the company’s involvement. With the large number of glass manufacturers in New Jersey, Bernard had procured jobs hauling the materials needed for glass, and then glass bottles—a task that required a good deal more finesse than hauling sand or gravel. Being successful at this, an arrangement with one glassmaker had led to another—Brockway, Glenshaw, Anchor, Knox—and eventually the largest glass bottle manufacturer on the globe, Owens Illinois and their parent company Owens Corning subsidiary Owens Corning Fiberglass. In order to secure a commitment from Owens Corning Fiberglass (OCF), Bernard built National Freight truck terminals in close proximity to the OCF’s plants. OCF now had their own local, convenient, dedicated terminals to use, so they continued to give their business to National Freight. As OCF expanded and opened new plants, Bernard followed, building more truck terminals nearby for their use. Bernard witnessed the housing boom, saw which way the winds were blowing, and understood the great potential in transitioning from transporting glass bottles to transporting fiberglass. Achieving this turned out to be a brilliant move, and it contributed significantly to the high growth years that the company experienced in the 1950s, 1960s, and beyond. Once again, Bernard took a calculated risk and gained success by thinking outside the box—or outside the bottle, in this case. An early National Freight brochure

77 National Freight Inc 1960s – The Grand Plan, Phase 1 & 2 OWENS CORNING AND FIBERGLASS Although glass fibers have been produced for centuries, mass production of glass strands was inadvertently discovered in 1932 when Games Slayter, a researcher at Owens-Illinois Glass Company, accidentally directed a jet of compressed air at a stream of molten glass and produced fibers. Then in 1935, Owens Corning Fiberglass Company (OCF) was formed, and by the next year it had begun to produce its patented “fibreglas,” which was originally glass wool with fibers entrapping a large amount of gas, making it useful as an insulator. During World War II, fiberglass was developed as a replacement for the molded plywood used in aircraft, and numerous civilian applications followed, from boats to airplanes to cars and even sports equipment. As the housing boom hit in the 1950s, fiberglass was suddenly in even greater demand for thermal insulation. OCF could scarcely fill orders for fiberglass fast enough, and this meant trucks were needed to transport it.

78 1960s – The Grand Plan, Phase 1 & 2 National Freight Inc IT HAPPENED LIKE THIS. Owens Corning Fiberglass (OCF) had a large fiberglass manufacturing plant in Barrington, New Jersey, and in early 1960 Bernard developed a relationship with the OCF plant manager, Bill Parker. Bill was willing to give National Freight some business on a trial basis. This was just the foot in the door that Bernard needed. Once National Freight had proven to Bill the company’s capabilities and commitment to timely delivery, Bernard decided to position for more business. His tactic was to secure the vast majority of OCF’s transport by agreeing to open a National Freight terminal in Lawnside, New Jersey, only seven miles from the OCF plant. He purchased a piece of property and built the terminal there. Building this terminal was a gamble, as there were no firm contracts in place. One day they might have one hundred loads and the next day zero. The business might slow down or cease entirely. Not to mention, the new terminal required an investment to procure equipment, hire people, and secure real estate. But for Bernard Brown, taking risks was the only way to progress, as long as the risks were calculated, timely, and executed accurately. As he would tell his children and all employees through the years: You must be a risk taker. Try new things. Be entrepreneurial. This risk was well thought through, and Bernard believed it was necessary in order to continue building a relationship with OCF in hopes of becoming a significant carrier to many more of their plants throughout the U.S. It worked like a charm. “Mr. B wasn’t the easiest to please, but he had the most foresight of anyone I knew,” said Don Gatens, veteran NFI employee, speaking of Bernard Brown. “Knowing OCF and their shipment patterns so well, Mr. B would direct his central dispatch manager to dead-head trailers to OCF’s Barrington plant, flooding their yard with trailers late Friday. On Monday morning, OCF would not think twice about filling them up and giving National Freight their entire loads. After all, they had little choice but to use National Freight. Mr. B was brilliant and understood his customers and their tendencies.” It wasn’t long before National Freight was consistently hauling over one hundred loads a day out of OCF’s Barrington plant, effectively becoming a dedicated carrier at this customer’s location. Now it was time for Phase 3. You must be a risk taker. Try new things. Be entrepreneurial. −− Bernard Brown

79 National Freight Inc 1960s – The Grand Plan, Phase 1 & 2

81 National Freight Inc 1960s – The Grand Plan, Phase 3 & 4 With a steady stream of business with Owens Corning Fiberglass’s (OCF) Barrington plant, and with multiple glass bottle manufacturers providing additional work, the next step was to secure the necessary governmental approval that would allow National Freight to move its customers’ freight—and to backhaul freight—between states. This approval was known as operating authority, and to say it was difficult to come by would be quite an understatement. Existing regulations, with their roots in the Motor Carrier Act of 1935, meant that if a trucking company wished to enter a particular market, the only practical approach was to purchase the rights of an existing trucker. By the 1970s, the authority to carry certain goods on certain routes was selling for hundreds of thousands of dollars, either sold directly or at auctions. Compounding matters, a trucking company could not apply for a single, encompassing authority to haul all goods across the country. If a company was transporting through an area where it did not have authority, it would have to enter into an “interline” lease agreement with carriers who did hold the authority for this section of the trip, and then it could complete the rest of the trip on its own authority. The bureaucratic red tape and legal complications were endless and expensive. Thus, securing the operating authorities for interstate transport, with total access across state lines, was something like the Holy Grail to Bernard Brown, and it had so far eluded National Freight. If the relevant operating authorities could be gained, then Bernard’s grand plan to become a dominant carrier along the Eastern seaboard would be within reach. CHAPTER 10 1960s: The Grand Plan, Phase 3 & 4 Phase 3 OPERATING AUTHORITIES With his ambitious goal of an East Coast transportation network still held firmly in mind, Bernard pressed his salesmanship into high gear. He traveled constantly so that all his interactions with new and potential customers were face-to-face, recognizing the importance of being present rather than trying to reach out across the miles. This direct interaction helped to build relationships. To show respect, he always wore a suit and tie—a unique characteristic in the trucking industry—and he always looked people in the eyes, shook their hands, and developed a human connection. Bernard told his customers, “I want to grow, and I want to help you grow. I will not let you down.” Operations manager Paul Nolf recalls Bernard’s ability to make connections and spur others on: “He built terrific relationships with terminal managers. He told them, ‘I’ll help you. I’m trying to grow, and I’ll do whatever I can to make you successful.’ He created great relationships. Failure was never a part of Bernard Brown.” His customers believed in him and in National Freight, and he closed business because people trusted him. And trust begets trust. The single most important relationship that Bernard developed in the 1960s, one that propelled National Freight’s expansion well into the 1970s, was with Owens Corning and their subsidiary, Owens-Illinois. Bernard often visited Toledo, Ohio, where both companies were headquartered. There, two

82 1960s – The Grand Plan, Phase 3 & 4 National Freight Inc key individuals helped advance National Freight’s tonnage: Bud Croak, Vice President of Transportation for Owens Corning, and Bob Buster at Owens-Illinois. Not only did they provide more business to National Freight, but a few years later these gentlemen also went to bat for National Freight when they began applying to secure operating authorities. These relationships and the resulting business propelled the company forward like never before: more employees, new terminals, and an ever-growing, increasingly profitable financial position. Once National Freight managed to secure operating authorities for New England, the company aggressively pursued freight to transport into this territory. Besides OCF’s fiberglass, along with Brockway and other glass bottles customers, the company personnel fought for any order they could secure. And there were plenty. Scale created more scale. National Freight was rapidly becoming a recognized brand and a formidable trucking entity. However, securing orders was only half the battle. National Freight’s Central Dispatch in Vineland had to find ways to make money on the return trip. If a trailer returned empty— deadheading—the fuel costs would eat up most of the profits. As the transportation business into this territory expanded, the importance of arranging goods to backhaul rose proportionally, and this became an essential task for Central Dispatch. Thankfully, the team in Vineland became very skilled at accomplishing just that. Ed DeFilippis, a thirty-three-year veteran who became the president of National Freight in 1977, recalls the difficulty of balancing the traffic of drivers and trailers during those go-go years. “Every day was a battle. You arrived early at Central Dispatch, rolled up your sleeves, and dove into the melee. It was a constant fight for resources—drivers, trailers. Where are they? Why are they late? We need backhaul from point A to B. You had to be very tough to survive the daily mayhem.” He continues his recollection by reflecting on Bernard Brown’s involvement. “Mr. Brown would visit Central Dispatch throughout the day to ensure everything was going the way it should. If you did your job, Mr. Brown was your best friend. If you didn’t, you were toast.” Ann Geraci, a fifty-year NFI veteran, also recalls how Bernard Brown interacted with the workers. “There was no casual talk with Mr. Brown, only trucking conversations. When he pushed a lot of freight, he would show excitement, telling the troops in dispatch, ‘You guys are doing a good job.’ Conversely, if the same mistakes surfaced over and over, heads rolled. Yes, it was an exciting environment, but this super-charged environment was stressful to say the least.” THE NERVE CENTRAL – VINELAND CENTRAL DISPATCH Ann remembers a revolving door of new employees, with only the toughest and best going the distance. “We were continuously busy. It was non-stop, all the time, and it could be unbearable for the less than hearty souls. Those that stayed had a suit of armor!” Ann started working for National Freight in 1959, at which point there were only four women and five men working in the office. They had twenty trucks at the time. “Mr. Brown would be on the road for two or three days every week. He was always traveling to win new business,” Ann recalls. “He wanted what he wanted, when he wanted it… which usually meant immediately. He banged on his desk when he got mad and would throw out some choice words. But he was always fair. What really upset him was dishonesty—when people told him what he wanted to hear, but not the facts. He didn’t mind mistakes if you learned from them.” All of these efforts would pay off, preparing National Freight for the next phase of Bernard’s grand plan.

83 National Freight Inc 1960s – The Grand Plan, Phase 3 & 4 Phase 4 INTERSTATE AUTHORITY I n the early 1960s, National Freight opened additional terminals in Orangeburg (New York), Littleton (Massachusetts), and Salem (New Jersey). Having tasted the sweet benefits of owning operating authorities, Bernard was more confident than ever that the only way to implement a vast transportation network for National Freight was to secure more of them. However, that was very difficult to do. The legislative system spawned by the Motor Carrier Act of 1935 and enforced by the ICC seemed designed to make it as challenging as possible to secure new operating authorities. Although hypothetically any company could do so, it was expensive and could be legally contested by competitors. Most of the existing companies employed high-powered attorneys who specialized in these laws and grew rich off their endless iterations. These big-shot lawyers were paid well to keep competitors from acquiring new authorities. Most trucking companies, faced with the cost and legal hassle, had to start out by trip leasing under another company. Not wishing to become entangled in all of this, Bernard opted to go in a different direction: acquire trucking companies that already held those operating authorities. In late 1962, National Freight purchased three companies: Sun Transportation, National Trucking, and Victory Produce. Ann Geraci at the switchboard “Mr. Brown didn’t mind mistakes... in fact he wanted you to make mistakes, but only if you learned from them.” −− Ann Geraci

84 1960s – The Grand Plan, Phase 3 & 4 National Freight Inc

85 National Freight Inc 1960s – The Grand Plan, Phase 3 & 4 OFFICE AT VINELAND HEADQUARTERS The associated operating authorities opened up a relationship with two additional key customers: Continental Can—a producer of metal containers and packaging—and Quaker State Oil. Soon thereafter National Freight opened up two additional terminals—Clarion and New Stanton—in western Pennsylvania. The company hauled oil products and other general containers to the Northeast and mid-Atlantic markets, with backhaul fill-in heading west with glass bottles from Owens-Illinois, Brockway Glass, Glass Container Corporation, Kerr Glass, as well as fiberglass from OCF. Super salesman Dave Skilowitz secured many routes and kept them moving east and west, along with the help of Vineland’s Central Dispatch operations. Later, National Freight opened another new terminal near Continental Can and OCF’s plants in Fairburn, near Atlanta, Georgia. Unlike the huge risk Bernard took when building the Lawnside terminal from the ground up for OCF, the Clarion terminal was now the typical modus operandi utilized when adding a new terminal. Never one to squander funds, Bernard planned for this Clarion terminal to have humble beginnings; it The nerve central – Vineland Central Dispatch was a terminal, not a Taj Mahal, to be sure. First, National Freight would lease an existing building— often a closed fast food joint or a small, defunct used car dealership—and refurbish it as well as possible. Bernard was especially partial to a location in bankruptcy. Only when a constant flow of business was established over the years would a new, larger location be leased. By the end of 1963, National Freight had 8 terminals, over 200 owner operator drivers (all non-union), and 360 trailers, vans, and flat beds. The management, administration, and maintenance ranks had swelled to over 100 personnel, with a revenue stream of $4.8 million and a gross profit of $1.6 million, with a net profit from trucking of 8 percent—double the national average. With all the trucks, trailers, and cars required, along with the leasing of this and additional equipment, Bernard began establishing other entities under his dominion during this time. Though business was booming, it was no time for Bernard to rest on his laurels. In fact, this was the scale and momentum that allowed the company to push toward further heights. Eager to continue advancing the company’s footprint—and

86 1960s – The Grand Plan, Phase 3 & 4 National Freight Inc draw closer to his dream of creating an extensive transportation network—Bernard sought additional acquisitions to accelerate his plan. From the mid-1960s through the end of the decade, other companies with operating authority were acquired: • 1968 — Service Transport: Based in Salisbury, Maryland, this refrigerated transport company’s biggest customer was Campbell Soups’ Swanson Foods division, which had a large plant in Delaware. Another terminal was eventually opened in Seaford, Delaware, and run by a terminal manager who was a woman, which was very progressive in the day. Service Transport also had operating authorities to transport frozen concentrated orange juice from Florida to the north into Georgia, South Carolina, North Carolina, Virginia, Maryland, and Delaware. All non-union drivers. • 1968 — Miller Transportation: Based in Philadelphia, Miller had two very prominent customers: Proctor and Gamble and General Foods. National Freight purchased Miller for its customers only and did not keep any of its union drivers, a key tactic that Bernard deployed because he preferred non-union drivers. • 1968 — Salem Express: This was the first union shop, and National Freight began the deft integration of union drivers into its ranks. • 1969 — Fab Transportation: A non-union company with operating authorities in New York. With most of these acquisitions, many of the drivers were retained, but only the cream of the crop. Ed DeFilippis recalls how discerningly National Freight made these retention decisions: “We were very discreet in whom we hired. We would interview all the drivers and staff. We also sought the opinions of those senior leaders who joined our team, inquiring which personnel were the best employees. We only wanted to keep the best of the best. It wasn’t about quantity; we wanted quality.” Clarion Pennsylvania, “Dug Out” terminal. Typical site that National Freight would purchase and place a new terminal

87 National Freight Inc 1960s – The Grand Plan, Phase 3 & 4 Office at Vineland headquarters, 1960s

88 1960s – The Grand Plan, Phase 3 & 4 National Freight Inc LATE 1960S – OCF GEORGIA PLANT As Owens Corning Fiberglass (OCF) continued opening new plants, their transportation partner did the same. When OCF opened up a plant in Fairburn, Georgia, National Freight located a new terminal nearby, which then delivered fiberglass insulation to southeastern states including Florida. Owens-Illinois also had a plant in Atlanta, further driving business for National Freight. Still another key growth area for the company was created by the high demand for frozen orange juice concentrate from Florida. Through the acquisition of Service Trucking in 1966, National Freight hauled juice daily to supply thirsty customers in the Northeast and Midwest for Minute Maid and Tropicana. By the end of the 1960s, National Freight had over two hundred refrigerated trailers and had opened up a terminal in Orlando. As the turbulent 1960s came to a close, Bernard had the satisfaction of seeing his grand vision coming to pass before his eyes. The company had accomplished many milestones over the course of the decade. Bernard still led the way, but soon a new generation of the Brown family would be ready to make their own stamp on the family business. Central Dispatch, mid-1970s. Ike is third person from left.

89 National Freight Inc 1960s – The Grand Plan, Phase 3 & 4 papers? Of course, their father was hoping that these various labors would imbue a sense of duty and responsibility in them—that they too might take up the mantle to progress the family enterprise. Helping the children adjust and learn the business was Floyd Pooley. Floyd had been at National Freight since 1937 and was one of its first employees. As a trusted friend to Bernard, effectively his confidant, and a close family friend as well, he filled in to help raise the children while their father was away. Bernard traveled regularly, visiting terminals, building relationships with customers, and winning new clients. Floyd provided mentorship and encouragement to the next generation of Browns, and he was also subliminally recruiting them for the business. Like all teenagers, they might turn a deaf ear to their father’s words, but a family friend might have greater success. Floyd was Bernard’s best chance to entrench the importance of hard work and a sense of loyalty and duty in hopes that one day they would join the family business. Needless to say, it worked out well. Despite all the On the cusp of the 1970s, the Brown children were coming into their own, all but the youngest in their teenage years—Ann was seventeen, Ike was fifteen, Sidney was thirteen, and Jeff was eleven. All held various summer jobs at the company to earn money—filing, working in the maintenance shop, odd jobs here and there, even spending time on the road with drivers. What teenager would not relish the opportunity to ride in a semi-truck for a day’s work rather than spend the time hauling dirty oil or filing

90 1960s – The Grand Plan, Phase 3 & 4 National Freight Inc progress at the company, one set back for Bernard was the death of his close friend Dave Skilowitz, the energetic, personable and super salesman, had become very close to Bernard and the Brown family over the years. In fact, Dave was Bernard’s confidant and they often discussed strategy and tactics to further propel the company, and enjoyed each other’s company as close friends do. While Dave was on a business trip in Washington D.C seeking additional government contracts for the company, he telephoned Bernard from the airport on his return to advise him of his success. He also mentioned that he wasn’t feeling well. After hanging up the telephone, he succumbed to a massive heart attack and died. Bernard was devastated upon hearing the news. Bernard had lost his closest friend. Ike, Sid and Jeff looking sharp, 1971.

91 National Freight Inc 1960s – The Grand Plan, Phase 3 & 4 THE EAGLE LOGO As one decade ended and another began, other changes were also in the works. Namely, it was time to re-brand the company logo. With the image of the company ever-expanding, a new brand was needed, one that would stand out and be emblematic of the company’s vision and image. The new design was developed by an operations person: an eagle. Strong, majestic, fierce, and independent. In early designs of the logo, the eagle’s wings curl around itself, transforming into pointing arrows. The wings both protectively encircle the eagle itself—signaling that the company values and looks after its own—and embody movement, connecting one point boldly to another. Over time, this would reflect not only National Freight’s reach in the United States, but its global presence. As the decade came to a close, the eagle had certainly landed. So had the Teamsters at National Freight. Eagle logo

93 National Freight Inc The Teamsters and De-unionization National Freight was fortunate in a number of ways to keep the majority of its drivers non-union for many years. This was not the result of luck, by any means; the company worked hard in this area by making sure that drivers had the best equipment, that maintenance was performed routinely—always with a safety-first mentality—and that drivers were paid in a timely fashion. After all…it was always about the driver and keeping them content so they did not want, or need, to join the union. As National Freight kept acquiring companies with operating authorities, it maintained its focus on companies with drivers who were non-union. If an acquired company had union drivers, many of these were not hired by National Freight as part of the new arrangement. However, as National Freight kept patching together an Eastern seaboard transportation network, the company simply could not avoid union drivers. They made up a growing percentage of the available pool of drivers, and it was always a battle to fill the cabs with talented drivers to haul freight. Gradually, union drivers appeared here and there working for National Freight. Still, through the years, it was not much of an issue—that is, until CHAPTER 11 The Teamsters and De-unionization the Teamsters began a much more aggressive approach than National Freight had seen from its drivers ever before. The International Brotherhood of Teamsters is one of the largest labor unions in the world. From the mid-1930s until the 1980s, the Teamsters were a powerful force in the trucking industry. In the 1960s, numerous labor agreements were consolidated into the national Master Freight Agreement, which gave the union substantial influence over the terms and conditions of work. At one point, this master agreement covered over half a million drivers. Although many truckers are independent owner-operators who do not belong to a union, 43 percent of drivers were members of the Teamsters by the end of the 1970s. Throughout this period, the Teamsters expanded in power and notoriety, and as their role in the industry grew, their tactics and methods often became hostile to any resistance from trucking companies. At the height of their influence, there were members of the Teamsters who did not take kindly to any resistance to their agenda— and it was only a matter of time before they set their sights on National Freight. It was only a matter of time before the International Brotherhood of Teamsters set their sights on National Freight.

94 The Teamsters and De-unionization National Freight Inc The union’s first attempt to penetrate the non-union drivers for National Freight occurred in 1967. The local union leaders used strong-arm tactics to convince National Freight drivers that union representation would improve their standing. Following this, the drivers went on strike. National Freight’s Vineland facilities were secured by a locked fence that union-favoring drivers drove through and damaged; others drove by screaming and cursing. If this was not aggressive enough, they threatened the Brown residence with violence, until police had to be summoned to protect the Browns’ home with armed guards. Ed DeFilippis remembers those dangerous days: “Mr. Brown stood up to the union like few people did, and he took personal risk to do it.” Yet when someone shot at Bernard’s car window, he knew that the stakes were too high to continue the standoff with the union—it was not worth his life or the danger to his family. This was not the first time Bernard had to carefully manage the Teamsters. In fact, his wife Shirlee remembers how her husband met with union representatives in the 1950s. He would arrange meetings very late at night, not wanting to be noticed by Vineland townspeople, and attempt to appease the union representatives. He strove to placate them by promising to be neutral and explaining his approach to treating his drivers—how he allowed them to decide their fate without any undue influence from other National Freight employees. After the high tension and conflict in 1967, Bernard agreed to negotiate a union agreement. Virtually all trucking companies had agreed to the standard Master Freight Agreement. But, adroitly, Bernard managed to negotiate his own side agreement instead with special provisions for National Freight. Gary Galati, who was a top sales leader at National Freight, remembers, “When the Teamsters went on strike, we had our own contract, and we were able to still ship during these strikes in 1979. We were able to cross picket lines. During these strikes, we had more business than we could handle.” This side agreement kept the Teamsters at bay for years, something very few trucking companies accomplished. But this negotiated peace would not hold forever. DESPERATE TIMES, DESPERATE MEASURES As the Teamsters grew in numbers and influence, and as the number of National Freight’s union drivers likewise increased, Bernard looked ahead and knew he needed to stave off the inevitable confrontation that would arise. To prevent this coming clash, National Freight utilized two highly successful paths forward. First, the company offered a big incentive to convert union drivers to non-union by leasing them trucks at very favorable rates. Since many banks were hesitant to loan money for a first rig, this approach allowed these drivers to lease a truck with far less cash than they would have needed if they went to a truck dealer for financing. This strategy worked well, and many drivers opted to convert from union to non-union drivers. Gene Schlotterbeck recalls, “Mr. Brown had meetings all the time with us drivers, and he would tell us, ‘I can’t afford it anymore. If you withdraw from the union, you’ll always make a living working for National Freight.’” Gene remembers his own decision to withdraw from the union. “I liked the people at National Freight, so I thought I would try it for six months. I also knew what was going on and that the union was getting too powerful, and many people were leaving because they were getting too much power. I’m a realist, and I knew they were pricing themselves out of the market with their guaranteed salary percentage increases. I was surprised that all the ‘good runners,’ the hard workers, also left.”

95 National Freight Inc The Teamsters and De-unionization Many union drivers withdrew and became non-union for a variety of reasons. Still, the pull of the Teamsters was powerful, and as more and more drivers were needed, National Freight was losing the battle as it was forced to employ union drivers to fill the ranks. By 1979, over 50 percent of all National Freight drivers were under the union banner. This caused many issues at National Freight—the Teamsters’ stringent rules and liberal policies hampered the operations and caused inefficiencies, not to mention their impact on the company’s financials with the Teamsters contract rate increases for their members. Something drastic had to be done. In 1979, Bernard called his top managers to Vineland for a strategy session to figure out their best path forward. This had to be handled effectively, or the results could be disastrous; drivers might leave, and the business might be seriously impacted. It had to be handled skillfully and quickly. Bernard opened up the meeting with an admission of the dire circumstances: “I don’t know what I’m going to do. This is killing us! The union’s guaranteed price increases are not sustainable for us. And it’s inefficient, as our non-union drivers can run four to five hundred miles a day, but union guys can only do short-haul, under two hundred miles a day. Our utilization rate is reduced five times. We cannot continue in this manner!” Then he added, “Maybe we should shut down the Northeast region and ramp up Texas.” (Texas was all non-union.) Paul Nolf had developed another strategy for his consideration. “So, you want to get rid of the union drivers?” “Yes, but we can’t stop the freight. We have to continue to haul for our customers.” “Well, I have a plan. I’m going to go to all the truck stops and look to hire company drivers, non-union guys. I’ll run ads in newspapers, put posters in truck stops and diners. When we bring them in, we’ll give them a company truck. We shift the work to all these new, non-union guys. Since we don’t have a truck for the union guys, only the non-union truckers, the union guys will sit home. After some time with no work, they will go find other work with another company. Over time this will whittle our non-union drivers down to nothing.” Bernard liked the plan. “Go do it.” The company added ninety drivers within six months and continued this skillful plan until very few union drivers were left. In the 1980s, deregulation and de-unionization swept through the industry, and it became apparent that National Freight had weathered this storm, as well. Mr. Brown stood up to the union like few people did, and he took personal risk to do it.

97 National Freight Inc Ed DeFilippis Since the company’s inception, Bernard Brown felt consumed with his efforts to grow National Freight, and he carried the bulk of this weight of leadership. In many ways, he enjoyed it; the consummate salesman, he drew satisfaction from finding prospects as much as he did closing deals, handling every detail himself along the way. He wanted no one else to be burdened with the inherent stress and risk, and he was content for all of this to fall on his capable shoulders. However, as the business grew and continued on a steady trajectory upward, Bernard knew he needed to transfer certain leadership responsibilities to others, and this is what he did. Yet he had a difficult time handing over control of critical operations, preferring to handle these crucial matters himself, no matter how busy he was or how complex these matters had become. But the day came when National Freight had undeniably grown beyond his capacity to fully oversee it himself, and Bernard understood the need for professional managers to handle more of the day to day operations. The company was simply too big, with vast operations from coast to coast. There were rules and regulations to navigate, along with the often-conflicting needs and influences of customers, employees, vendors, competitors, attorneys, lobbyists… all of it intertwined in a complex and demanding web. Each decision Bernard made had potentially far-reaching effects on countless people. He needed more time to evaluate, plan, and execute the vision and strategies of this growing enterprise. If he did not share the burden of leadership, he risked the company declining from the weight of its success. Once he reached this conclusion, he knew he needed a CHAPTER 12 Ed DeFilippis person who could handle many of the critical tasks that so far he had accomplished himself. First and foremost, it needed to be someone Bernard trusted. Ed DeFilippis was that man. Commonly referred to as “Eddie” or “Eddie D.,” he had been a loyal employee for years, having begun his tenure at National Freight in 1963. His career there lasted for thirty-three years. During that time he rose from dispatch trainee to dispatch manager, then to vice president of operations, and then he assumed the title of president in 1977. Eddie was skilled at getting things done quickly and decisively, even aggressively. Like his boss, he preferred people who took action with a sense of urgency, managed effectively even through the daily pandemonium, tried new things, never said “No,” and did not complain. With so many similarities to Bernard and skills at running a business, it is no wonder that he became Bernard’s go-to person and was eventually named president of the company. From the 1970s until he retired in 1996, one of the most impactful employees at National Freight was Ed DeFilippis. What a force he was. Not only did he understand the interweaving complexities of the company—operations, sales, and administration—but he also was talented at managing the business. He visited terminals, taking time to communicate with managers and drivers, customers and vendors, all with a clear understanding of how to drive the business and make it all happen. Like Bernard, Eddie liked to get to the root of a problem or discover fresh methods of doing something. He asked questions, finding new ways to help the customers. As well, both men employed the same bare-knuckle management

98 Ed DeFilippis National Freight Inc style. In fact, Eddie was an ex-Marine, and it showed in his approach to running the company, which he oversaw like his personal battalion. Even those who yelled the loudest about delays, missed shipments, unbalanced traffic, or a lost trailer were destroyed by the hurricane force of his vocal cords. In his era at the company, Eddie’s brashness and hardness were a necessity for the company’s survival. Bucky Volmar recalls the masterful manner in which Eddie could drive the business: “If Scott Paper needed two hundred trucks at their warehouse on Sunday night, Eddie would call everyone in the country. Amazingly, these trailers were there when needed. Few people in the industry could come up with that quantity, that fast. But Eddie did it routinely.” Eddie was passionate about the business, and he took to heart Bernard’s direction to treat it as his own. Eddie never wanted to disappoint the boss man, and he rarely did. He was the problem solver, go-to doer, and executor extraordinaire that National Freight needed. MASTER AND COMMANDER L ike his boss, Eddie was hard on employees. Earl Arthur states, “They both liked to rant and rave, and they ruled with an iron fist. But, more importantly, they got the job done and everyone respected their ability because they were so passionate. Their equally zealous personalities caused plenty of friction between the two of them. It was like Saturday night at the fights; you got a bag of popcorn and sat back to watch the show.” John Carney describes how Eddie was “brilliant” and “knew everything about operating the business.” Bernard and Eddie’s personalities mirrored each other in many ways, but Bernard could relax and Eddie stayed tightly wound. “Every organization has a Doberman, and that was Eddie,” John says. “Arguments are inevitable in business—no one agrees all the time with everyone—but Eddie and Mr. B. had a special relationship. They could really go after each other, but they made it up afterward.” Every morning Eddie held a conference call with all the terminal managers to stay on top of the vast operations. Mike Maiore remembers one such call and how he thought he had put one over on Eddie D. “On these calls, trailers were always needed at another location, and Eddie would pull them from a terminal— meaning your terminal had less, and that put you in a bind. So I had to figure a way to keep some without Eddie knowing.” On the call, Mike might state: “Today I have twenty-two trucks in my region and forty-five loads from PG to move out.” (Translation: twenty-three trucks short.) Each terminal manager reported the numbers: “Fourteen in and twelve out.” (Translation: two trucks excess.) “Twenty in and fifteen out.” “Eighteen in and sixteen out.” And on it went. Eddie would quickly calculate his needs to serve the customer base. “Carney, send Maiore six trucks. Nolf, send him There is no problem that can’t be solved if you really sit down and work at it. ———— Eddie DeFilippis

99 National Freight Inc Ed DeFilippis six trucks. Dead head the trucks so we won’t get in trouble.” Mike recalls, “Eddie would never give me the extra twenty-three truckers needed. He thought I could juggle it enough to appease the customer. Some days I did. Most days I got an earful from the customers. So I had side plays with other regions. I might say I had six extra but keep four for me and not tell Eddie D.” Day after day, Mike Maiore came out a lot better than Eddie expected him to, until eventually it caught up with him. “Maiore. How is it that every day I leave you short, but you manage to cover it up?” “Eddie, did you ever hear of St. Jude? He’s the Saint of the Impossible. Every day, after our call, I say a prayer to St. Jude. After I pray, things start happening.” Eddie understood the ruse, and the next day he didn’t give Mike one single truck. “Maiore…let me know how St. Jude does tonight.” “That day,” Mike recalls, “I was thirty trucks short.” Eddie was just what the company needed—perhaps never more than when the Teamsters moved in.