James Hartzell and Georgine Banko, March 6, 2012

Muhlenberg College: Trexler Library Oral History Repository
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00:00:00 - Family History

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Partial Transcript: SC: Today is March 6, 2012, interview with James Hartzell, attending Gail Eisenberg and Susan Clemens-Bruder. Should I call you Jim? Jim, could you tell me your full name, where you were born, and just start with that?

JH: Okay, my full name is James W. Hartzell. I was born in Bethlehem, Pennsylvania.

SC: And can you tell me the year you were born?

JH: 1932.

SC: 32. And also as far as your family background, as far back as you know-- your parents, grandparents, great grandparents, their names and where they were from, and what they did as far as work will really be helpful just to see a line of work and progress.

JH: Okay, my father’s name was George. He was a fireman for the city of Bethlehem. My mother’s name was Goldie, and she had worked in the factory when I was in high school. And she eventually became a forelady in that same factory and became a part-owner of it, a silent partner.

00:05:13 - Education

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Partial Transcript: SC: And can you tell me a little bit about your educational background?

JH: I graduated in 1950 from high school, and I was shortly drafted into the army. And I went, was sent to Korea, spent 16 months in Korea. In the meantime, while I was working while I was in high school, I was working part-time in a factory. Its Acme Children’s Wear in Fountain Hill, I worked part-time there, learning the industry, from one part to the other. From sweeping to cutting, and so forth. I was working part-time. I was then drafted into the army, spent two years in the army. Sixteen months in Korea, and upon discharge, I went to Lafayette College. While at Lafayette College, I still worked part-time in the factory. I got married, wife, Lorraine, had one son, Archie. I worked part-time at the factory while going to college. And after three years, I decided that I wanted to get back in the industry, and stay in the industry, and make a career out of it. At college, I was taking up industrial engineering. So after three years, I dropped out of college, and went back in the factory full-time.

00:07:42 - The Business

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Partial Transcript: GE: And what part of the business were you in? Were you still in children’s?

JH: Yeah, this was, the business we started was Panzell. P-A-N-Z-E-L-L. We started as a contractor sewing for various New York manufacturers. Okay, we soon grew to about 50 operators, and we had plenty of work at that time. That was back in, like I say, 1962. Soon after that, we bought out the factory that we both worked for previously, Acme Children’s Wear. We bought that factory. We bought it out. So we now had that factory along with ours. My sister then entered the field. My sister, Georgine Banko, she entered the field and became a partner with us. Okay, along with her, my son came into the industry, Archie. He was the cutter. She has two sons; Donny, who became our mechanic.

00:11:33 - How Did You Learn the Industry?

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Partial Transcript: SC: And before I forget, do you see yourself as sort of a looper in the textile industry because you went into your mother’s where she worked and then got to learn the very, I’m thinking of Bethlehem Steel now, you get to learn from the bottom up, and you got to learn the entire industry.

JH: Absolutely.

SC: That’s amazing. it really is.

JH: Absolutely. Well she knew, she had a thorough knowledge of the floor and everything else and how to—business. My mother was business smart, also. And between us, the other aspects of it, the cutting and the shipping, and I began to set-piece rates, and do one thing at a time more and more, I became involved in the business.

00:12:25 - Worker Wages and Discussion about Unions

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Partial Transcript: GE: With the labor, was it typically, I guess let’s say minimum wage? For the operators?

JH: The minimum wage-

GB: That was for learners. There was also piece-rate.

SC: Okay, and it wasn’t unionized?

JH: No.

GE: Okay.

JH: The average wage I think was like 7 dollars or something like that. That’s back in the 80s. In the 70s it was lower than that.

SC: Yeah.

JH: But it was, you know, it’s where it all started, the wages.

GE: Was there much pressure to get it unionized, from union organizers?

GB: At times, there was, yes.

JH: Yeah, there was. We never unionized. Because I always felt if we did, we couldn’t stay in business. That’s one of the things that began to happen.

00:15:58 - Some Businesses Begin Moving South

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Partial Transcript: GE: Oh, so where it became much easier to go to Mexico and the whole North America.

JH: Yeah, the manufacturers in New York would go down, instead of Pennsylvania, would start moving to Mexico and down South.

GE: Right.

SC: Yeah.

JH: For various reasons, you know the labor I guess was cheaper.

GE: Right.

JH: So they began to move down South.

00:17:29 - Partners

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Partial Transcript: GE: And who was the person you were working with?

JH: That was Atlas Childrenswear, A-T-L-A-S Childrenswear, in New York, and the person’s name was Albert Papa, P-A-P-A. He was in manufacturing, so we had the factories, and he had a showroom up there in New York. So I joined him as a partner, and between us, we would then buy the piece goods, we would showroom-- the buyers would come into the showroom, and we would design our own garments. It was mostly childrenswear at that time.

00:18:50 - Manufacturer Versus Contractor

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Partial Transcript: GE: And you were saying how you define the difference between being the manufacturer versus the contractor, can you just tell us a little bit more about that?

JH: Well, the manufacturer buys the piece goods, does the marketing, usually has a showroom, and will send the goods to a contractor who will cut the goods for him. Some cut, some didn’t. And sew it and then send it back, the finished garment, back to the manufacturer’s warehouse, where he would distribute to the stores in retail. Now the manufacturer had all these aspects of it, while the contractor only did sewing. And that basically what, in this area, most of them were. Not all of them, but most of them were only sewing in this area.

00:22:58 - Why Was Your Business Successful?

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Partial Transcript: SC: And the reason that you didn’t sort of fail in those years, is there a reason that you put to it? That you could expand? Was it because you got a partner, was it because you diversified into cutting also?

JH: Well, we began working on a shoestring ourselves, you know. We weren’t making much money, you know, everything was, as things began, the competition got tighter. We were able to expand in the beginning because, and we were doing alright because we had automated machinery, too. In other words, we invested in things like this equipment in here, things like, we had an automated loop machine where it set the loops on garments. The girl would just sit there, stand there and she would just put it in the machine, and that was it. It was things like Paul has upstairs there. I mean it became automated anyway, but-

GB: The main thing was jeans then.

00:28:10 - Lorraine's Factory Outlets

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Partial Transcript: JH: Okay, after we bought the building we were doing everything else and then my wife Lorraine became more or less involved in the business, and we opened up outlet stores. They had three outlet stores at that time also.

GE: And this is the 1980s?

JH: This the 19, Yeah that would be the 1980s.

SC: What were the names of the factories?

JH: Lorraine’s Factory Outlets.

SC: Oh, okay, and where were they located?

JH: One was in Fountain Hill.

GB: Palmerton.

00:29:47 - More About the Business

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Partial Transcript: GE: Prior to that, it was, prior to that, how was that hauling done?

JH: The hauling was done by common carriers.

GE: Okay, and now you were able to do it through your own truck?

JH: Yeah we got our own trucks because the trucks would go at least two to three times a week to New York. We’d take a bunch of cut goods up to New York and here in this area, and they’d give them the cut goods to sew, and they’d bring back the finished goods, back to our warehouse.

SC: That’s such a good lesson in business sense too!

JH: Like I said, the business in the 1980s was good, it continued for us even though there was a slow decline.

GE: But you survived fine.

00:33:57 - Life After the Business

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Partial Transcript: GE: Okay, okay. At this point, what did they do? In other words, when you went to this other factory, what did they end up doing?

JH: Well, my son ended up working. He did two things. He became a game warden, and also he worked for BARC. Bucks County Association of Retarded Citizens.

GE: Okay.

JH: So he had really left the industry at this time. My advice also. Telling him to get out, you know.

GE: Right, right.

JH: You can’t stay in this. I keep telling Judy that, but she always wants to come in somehow. I said it’s not for you anymore, but maybe it is.

00:38:30 - In Business with Paul Reid

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Partial Transcript: JH: So anyway he was on the verge of- We left before he closed out. But after that happened, we got out. In the meantime, Paul Reid, this guy you met upstairs, was working for the manufacturer as a- he would place work, his job was placing work and so forth. By the way, he knows the industry in and out. He’s a good person to interview when you can. Him and I then decided, I became good friends with him, and we decided we are going to go in business ourselves, again, we are going to take another crack at it, so we bought this building first. Him and I. Then we had contacts with two girls, one was in Washington, one in San Francisco, another one in Chicago. They were buyers and salespeople for Target. Target stores and Gymboree.

00:43:08 - Silent Partner

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Partial Transcript: JH: And we came down and were, eventually in the beginning, the government said you can only send the cut goods over, that they can only sew over there. Then next they said, now you can send yarn over. Now you can send, they can cut themselves, they can dye themselves. Then the dye houses and everything else began to be set up offshore. And so everything in that went offshore. So in the meantime, we had hired a third party, a money person, who was a signup partner because we needed a lot of money with the manufacturing. And that too after about three-four years ago?

GB: Yeah.

JH: Around mid-2000, we decided to, the competition again was too much, too many headaches and everything else, so we decided to-

SC: So did you lose the silent partner?

JH: Yeah, well, we, then again we closed it down, we didn’t lose money at this. I mean, it was a thing where everybody got paid, and we decided that was it.

00:45:14 - A New Niche Business

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Partial Transcript: JH: And what this involves is somebody will come, and they have an idea they want to make a garment, and they don’t know anything about manufacturing or anything of the sort, and where to even start at. So I’ll take the garment, I'll tell them what is going to take, how to go about doing it and so forth. We’ll work, we’ll get a sample made, I’ll send it to another person that makes a sample for us and so forth. And that’s it, we’ll either if they like it then we’ll grade for it, get different sizes and make a little marker and that’s where it goes. And 99% of them, they don’t realize what is involved. They really die before they get started. But some slip through, it’s a tough little business now.

00:46:29 - Business Description

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Partial Transcript: SC: Could you talk a little about this process that you do? Where it starts, and how you go to sending the pattern out to the person who wants to be in this business?

JH: Well, it starts with a person that’s interested in getting into the clothing line, and usually they are designers. They will come to us and ask how to get going into it, and how to make that first pattern, the first garment. So they either will give us something similar to what they want, maybe a picture or the garment or a drawing, and say this is what we want. From there, we will make the base pattern on card paper by hand. And we’ll make them according to the dimensions, maybe a certain size that they want. Maybe a medium or whatever, or ladies, and we’ll make it into that. And then we’ll have them send, the one that’s asking for it have her send the goods she wants it made on. So she will send us a couple yards of goods, and then we will then send it to a sample maker, a girl we have. They will make that first sample. When the first sample is made, we then will send it to this first-person, or they will stop in here.

00:54:19 - Changing Composition of Workers Through the Years

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Partial Transcript: JH: The apparel industry was at one time the largest employer in Pennsylvania, okay. It was certainly the largest in the Lehigh Valley. The industry and the low wages and so forth because of that 85% of that its unskilled labor, production workers, it’s probably one of the reasons why the labor has been so low, anyway. In the beginning, when we started the business, there were years ago you had different groups of people came into the industry. One time I could imagine way back, it was probably the blacks came into the industry and then maybe-

GE: You’re saying as workers? As the sewing machine workers?

JH: As the sewing machine operators I’m talking about, right. And I guess Italians from immigrants and so forth. It came, that’s how we got, they were busy at that time, and we kept things going. Eventually, it came, and I know with us in those years it was the Portuguese.

00:56:14 - Factory Owner Demographic

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Partial Transcript: GE: How about what you saw as who were the factory owners? Who tended to be the factory owners and why do you think that you and other people that you saw as factory owners? What do you think were some of the characteristics and why was you know that certain types of people or went into this business, were successful in this business?

JH: You mean the owners?

GE: Yeah.

JH: I think then it was probably Jewish and Italians that were mostly in the industry. Not me, I’m Pennsylvania Dutch, but I know when I joined the Association, I eventually became president of it, the Jewish and Italians were primarily in it.

GE: Why do you think the Jewish and Italians were primarily in it? Any thoughts?

JH: No.

GB: I think some of it might have been money, to get started.

01:00:46 - Connections with Philadelphia?

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Partial Transcript: SC: Did you ever have any connections with Philadelphia? Any of the surviving textile clothing places in Philadelphia?

JH: No.

SC: It was more of a New York, Lehigh Valley connection.

JH: Yeah.

SC: Because it did survive.

JH: The only thing in Philadelphia I think I ever did was maybe garment washing. Even the laundries, you had laundries that did garment washing, not these little typical laundry.

GB: They did tie-dye.

JH: They did tie-dye, your jeans, the slow washing goods, all that stuff.

SC: Beat them to death.

JH: Then I would get them all in Philadelphia but even that business . . . if you wanted one of them, you can’t find one. I don’t think there is anything in the United States anymore. Everything is offshore there, even that aspect of it.

01:04:04 - Apparel Industry Needle-Trade Association

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Partial Transcript: JH: Okay, besides being involved with what I just mentioned, those organizations, I was like I said president at the time of the Apparel Industry Needle Trades Association. In that association, this was made up of about 50-60 members of contractors and manufacturers, in the Lehigh Valley area. We would meet once a month. We would have dinner. We’d then have a speaker, usually from the industry, or anything concerning it, or a politician. We’d have dinner, and then we’d have a speaker and then a program, and we’d discuss the industry itself. That Lehigh Valley Needle Trade Association was an active group, and we held, every year, we held a banquet. We would go to Harrisburg and sit with the governor, and he would acclaim an apparel week for the year. It would be apparel week, and in that week, we would hold our banquet and have other activities and so forth. In the banquet we would either have the governor would come sometimes or a congressman or other politician. And we would then have, again, a program. We’d have speech by the president of the association on the state of the industry and so forth. We would have a speaker, and then we would have entertainment. It was high-class entertainment.

01:12:35 - Impact of Free Trade

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Partial Transcript: GE: Free trade.

JH: Yeah, and before that there was the other act, what was that Act? Anyway, before that was then, let's see . . . from 1978 to 1988, we lost 12,000 apparel jobs in the Lehigh Valley. And my opinion, what happened, the decline came because of the modernization, and the wages, and everything else. But then, the low wages of undeveloped countries, and the government wanted to more or less help them, and the wages became so low there that everything had to go offshore. They brought in these two Acts. I think the Multifiber Act is the other one from 1974 to maybe 2005 or something like that, where they put a limit on quotas importing to countries that were developed from undeveloped countries. It was at first a limit on it, and then in 2005 they put the NAFTA, it was NAFTA, the trades act eliminated these tariffs, I mean quotas, it dropped the tariffs down almost to nothing. Because of that imports came in, and all the flood of the clothing came in from offshore. It practically wiped out the industry.

01:17:20 - What Do You Value Most in Life?

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Partial Transcript: SC: Yeah, I have two filmy questions. Two what the heck is she asking me this for. The first one is, what do you value in life the most? And these are, these are questions I think are really important because it gets into who you are as a person?

JH: Well, that’s really a good question. I ask myself sometimes, what's it all about.

SC: Don’t we all.

JH: What do I value in life? To tell you the truth, I, the way I am today, I am more content I think than I ever was to be honest with you. Because you know, you get older and it's supposed to get easier, but it doesn’t. You know your health begins to go, you have other problems, and your children and everything else, and financial, that gets harder, but I think, I don’t know about my sister here. But, I’m more content because I’m semi-retired, and I don’t have the pressure anymore. I don’t have the people problems, and the finances and everything else involved. What I value, I don’t know just living my life today as it is, I guess.

01:20:45 - What Makes You Feel the Most Artistic or Complete in Life?

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Partial Transcript: SC: My other question is what makes you feel the most artistic or completed in life? Just in general, what makes you feel most creative, completed, artistic? What's given you the most sense of satisfaction?

JH: Well, one of them is just being here in this, right here, because we’re on our own. We can come in and go when we want to, do what we want to do. And you know I still have a family, and so does she. She has her own family, and we don’t have the pressures, and we enjoy doing this. We still learn more every day in this industry, really, especially in this apparel and this pattern business, and creating the sizes and so forth. Every day we are just learning more, we get garments you would never dream of, such as the dog clothing.