Cannon Mills and Kannapolis: Persistent Paternalism in a Textile Town

10. Cannon Mills and Postwar America: Market Maturity and the Loss of Brand Loyalty

Chapter 10 Cannon Mills and Postwar America: Market Maturity and the Loss of Brand Loyalty Charles Cannon entered the postwar years with guarded optimism about the business climate. Sales had increased from $44,532,000 in 1939 to $79,386,000 in 1945, with net profits growing from $4,355,000 to $10,153,000.1 At the start of the war, the textile manufacturer had controlled 70 percent of the towel market in the United States and had built strong brand recognition and loyalty. In addition, Cannon’s sheet and hosiery divisions had also achieved strong sales. The postwar company continued to reflect the influence of the Cannon family. By this time, the board of directors, ten in all, consisted of four Cannons.2 Besides Charles Cannon, his brothers Eugene Thomas and Martin Luther served on the board. Charles’s son, William C. Cannon, also served, having been appointed on September 1, 1939.3 In 1946, William became a vice president of the company.4 Kannapolis continued to reflect the influence of the Cannon family. Demonstrating Mrs. Charles Cannon’s interest in colonial architecture and antiques, Charles rebuilt Kannapolis in the Williamsburg style. The renovations included a shopping center—an innovation for the time—and other new buildings in the business district. The firm remodeled older buildings to ensure that the Williamsburg theme remained uniform throughout.5 Charles Cannon had two immediate postwar concerns. First, he wanted to terminate the Office of Price Administration’s regulation of the industry. Many months after the end of World War II, the OPA continued to regulate much of the American economy. The business sector generally opposed the 114 @ Cannon Mills and Postwar America continued existence of the government agency. As president of the American Cotton Manufacturing Association, Cannon worked to end the government agency.6 Appearing before a Senate agriculture subcommittee twice in early 1946, Cannon blasted the OPA for depressing production through price controls . He outlined the ACMA’s opposition to the maximum average price plan and accused the agency of incompetence in dealing with the textile industry. In addition, Cannon accused the OPA of being “arrogant, highhanded and short-sighted,” claiming that its policies resulted in shortages of textile goods that led to a black market.7 Charles Cannon believed that OPA price controls were unnecessary. While economists expected a slight jump in prices with the end of price controls , Cannon believed it would not lead to rampant inflation.8 If an increase would inevitably follow the lifting of price controls, it would be just as inevitable later as now as long as OPA continues price-squeezing policies which discourage production and perpetuate scarcities. If eventually we must go through a transition period, why not now? Whether the danger of more inflation is great or small, we cannot afford the luxury of permanent government control and we will be much better off to stand the change now than later.9 Speaking for the textile industry, Cannon asked for and received a 5 percent price increase to stimulate production, cover higher labor costs, and update equipment.10 The other immediate postwar objective for Cannon Mills entailed keeping its promise to resettle its returning war veterans. Even before the war ended, Cannon Mills created a new Personnel Department for veterans coming back to Concord and Kannapolis. In February 1944, Charles Cannon created the Servicemen’s Personnel Department with Capt. J. Harry Cannon, a veteran, as its head. Captain Cannon, unrelated to the Cannon family of Concord, had taught at Kannapolis High School as a vocational teacher and had served in the armed forces in North Africa.11 The new veterans’ personnel office, in Room 213 of the Professional Building in Kannapolis, had all the files of Cannon workers who had left the firm to serve in the military.12 The Servicemen’s Personnel Department worked to find a job for each veteran and to provide assistance in securing benefits from the Veterans Administration.13 Veterans filled out two forms at Cannon, the application for employment and the “Veteran’s Service Record.” After filling out the forms, a personnel officer reacquainted the applicant with the company’s policies and went over Cannon Mills and Postwar America ^ 115 the veteran’s service record in detail to ascertain what job would best fit his skills and needs. If the veteran expressed a desire to work at his old job, the company attempted to...