Mike's Genealogy Site
Mervin Rothschild in China and Japan
Mervin Rothschild
1888-1974
After the invasion of China by the Japanese, many of the factories that he supervised were closed, leaving the workers without any means of support. Mervin smuggled money into the country on several occasions to pay these workers during these hard times. Eventually, he was placed in a Japanese concentration camp until being released near the end of the war, and repatriated back to the United States.
The text below is his recounting of some of his business experiences during this time - accomplishments of which he was quite proud, as well as decisions that he later came to regret. It was written in 1967, after he had retired from this work, which had been taken over by his son Norvin.
Mervin was profiled in a newspaper article in 1944, in which he predicted the extensive business opportunities to be found in China in the future. Click here to read the article in PDF format.
A Resume
Pages from Mervin's notebook
A shipment of the needlepoint was made to the Rieser company, I learned later, when I returned to New York from Henry Engel, when the shipment reached the appraisers, they called on Ulmann Company to appraise the value. Engle was suspicious and came to the conclusion that Rieser was going into the needlepoint business. Instead of inquiring of Rieser, Ulmann sent to China Nicolaus Perlman and his son. When they eventually reached Chefoo, I have been on friendly terms with Perlman Sr., having seen him on a number of occasions in New York. I approached them and asked them to visit our plant. I was informed by Perlman Sr. that they had been instructed before leaving New York they were not to see the Rieser company in China, that Ulmann had had unpleasant experiences with Rieser company. I told them that Rieser company was under new management and that they might come and see my plant. They declined at the time but several weeks later when they found they could not make any satisfactory arrangements, they came to see me and found that I could be of help. They suggested that we both cable our respective firms for permission to get together. This was the beginning of my romance with Bernhard Ulmann. Pearlman saw many other firms – Chinese and foreign – before finally coming to see me.
In 1938 North China was invaded by the Japanese and business was made very difficult. I managed but I felt that things would not get better and opened a branch in Shanghai to produce needlepoint only. This proved also successful.
In July 1941 the Japanese froze our assets and closed our business in Chefoo. The details are well known and will not be related here. I mention this in passing, as it leads to my going to Shanghai where business was as usual.
December 1941, World War II, I was eventually put in a concentration camp. The details will not be narrated, our government arranged with the Swiss to pay me and others enough local currency to exist on (what they advanced me was paid back by myself on my return home). My Chinese realize that I had so little to live on, and as we had thousands of pounds of wool yarn on hand for which the Chinese would pay fantastic prices, they suggested that some of the will be sold. I refused to have anything to do with the selling of any of our materials, telling them it would only lead to trouble with the Japanese, as they had our inventory figures. My uppermost concern was (knowing the Chinese as I did) that for every pound of wool I would take and sell, they would take 10 pounds. My contentions as far as the Japanese were involved, proved correct, for when they checked our inventories, they reported all in order. They further reported to me that the wool would be confiscated, but they would release the 100 some odd cases of needlepoint (which are first referred to elsewhere in this narrative), and I could remove them to anywhere I saw fit. The cases remained where they were, and were never opened during the entire period 1941-1945 (at the conclusion of the hostilities) for they were intact upon my return in 1945. I can only attribute this to the fact that they appreciated my above-board dealings and honesty. No other American representative recovered anything upon their return to Shanghai. Mr. Fenchal of Paragon was living high on the hog all during the time before being put in the camp, as he sold his wares, yarn, linens, and piece goods.
These 100 and more cases prove the bonanza when they reached New York. I was able to get them on the one of the first ships leaving Shanghai when the port was again opened for trade.
I return to Shanghai in October, 1945, being one of the very first to get back. Much water went over the dam before the arrival of the Commies in Shanghai, only a few weeks, in fact, before I arranged with our consul general to go to Japan on one of our destroyers, and took with me canvass and wool and some samples of designs. The story from then on is history, and will not be repeated here. We are successful in Japan, having the good fortune to find the right people not only to manufacture, but also find the authorities who helped make it possible to get our goods in free of custom duties, and to help keep out our competitors, which was made easier through their inability to work with the authorities.
After exploring Hong Kong, I went on to Taiwan, which I had to insist upon, as the know it all in New York wanted Hong Kong, and this operation had been hotly successful too.
I must therefore categorically take full satisfaction in pioneering the needlepoint industry in mainland China, which we had to ourselves from 1934 to 1939, when our competitors came into the market: Traum, Paragon and Jolles.
In Japan, from 1948 to date (a matter of 18 years) and all to ourselves, and into Taiwan from 1961 to date (now our competitors are appearing), needlepoint had never before been successfully produced. I pioneered in all of them.
Traum tried a great expense in Japan and finally give it up. I know why. I made many influential friends, amongst which were government officials. I know how to work with nice people. Many lack the knowhow, used poor judgment, and don’t manage to get there. Honesty is my mark and I don’t resort to lying; nor make claims and promises that I cannot keep. I take no graft, look to no gratuities, in consideration of business being given. Opportunities were many; no one can lift a finger or make a sound to the contrary.
Some of my other accomplishments I state as follows:
- Produced canvas in China at ridiculous prices. The canvas cost less than the cost of transportation of the European canvas.
- Negotiated with Paton and Baldwin’s, Shanghai, to copy our German work exclusively for us for 80¢ a pound, F.O.B. Chefoo. This was against $1.10 paid in Germany F.O.B. Hamburg. This price remained until 1939, over two years, when our competitors arrived in China, and our last price from P&B was $1.20.
- While in Chefoo, I made friends of the Japanese freight agents and obtained a rebate of 10%. Also when the Japanese link the local (North China dollars) with the Japanese Yen, I made a terrific saving. The official exchange was around 3-4 to U.S. US $1.00. We owned our exchange at 12-15 to U.S. $1.00 in many transactions.
- In Japan, I was able to arrange for free duty on our imports and arrangement still in effect after 18 years, a savings of many thousands of dollars, and something that no other concern can boast of.
- The making of canvas in Japan after much perseverance and persuasion.
- Also, the making of our various K, Y and S models. This was only accomplishe on my insistence that we try to do them before saying it could not be done satisfactorily. I am sure we have saved many hundreds of thousands of dollars over the years and produced a steady supply of these valuable models.
- My insistence that we try Taiwan for our needlepoint production instead of Hong Kong, we would have had little success in Hong Kong.
- In 1948, I suggested to New York that we go after the PX business, having access at the time to the PX’s. I made a survey, and found no yarn or stamped goods in the Tokyo and Yokohama PX’s. I inquired of the Army wives whom I interviewed in the PX’s, and asked them if they thought there was a market, and they all replied that they would like to be able to buy such products, as the Japanese stores had little or no selections. Silman was the only one to appraise me of this lead.
Over the years, while in the Far East, I worked six and seven days a week.
When I was repatriated and returned to New York, I was asked to join Bernhard Ulmann Company at the same salary with bonus as I was receiving from Rieser. After all these years with the Bernhard Ulmann Company, 33 years, I was never given an increase in salary, and the bonuses for a very few years were meager and always given with a hard luck tale.
I made a mistake in leaving Rieser. He was a very appreciative man. My bonuses were generous, up to $5,000 yearly. While idle through the war years of 1941 to 1944, my salary was paid in full and on my return home, I was handed a check for $10,000. On my way home on the Gripsholm, I receive several nice cables from Rieser, plus $500 awaiting in South Africa.
Bernhard Ulmann company sent nothing. As I look back on my leaving Rieser has cost me over the years at least $100,000.
Rieser arranged interviews for me with the press and radio when I returned from the concentration camp. During my stay in China, Rieser continually sent gifts for our comfort, such as a radio, all the latest records, electric razors, subscriptions to the New York Times and Saturday Evening Post and many other things which he thought would make our stay enjoyable. Bernhard Ulmann company never sent a thing. Rieser was very angry and peeved at my leaving him, and rightfully so, and I deserve all that I got for doing so. The fact that the war was on, and how long it would last no one knew, and the Bernhard Ulmann company being a larger organization, I figured they could weather a long duration and would be better able to sustain me.
As mentioned, I was never given an increase in all the years I have been with Bernhard Ulmann company. And I never asked for one, as it was my stubborn idea not to do so. I am reminded of some incident when I decided to return home, and received a letter from Henry Engle to the effect that I would not be as valuable to the firm when I got home (meaning no doubt the magnificent salary they were giving me). I facetiously answered this letter agreeing, but when I got back they never referred to it, for if they had, I would have then resigned, as I could have at that time return to Rieser, or made other arrangements, which would have been more lucrative than what I had. And this I have also regretted, and will to my dying day. I have been a proud man; I have been humble; but I have never allowed anyone to be rude to me.
I have been humiliated on a number of occasions and many snide innuendos and remarks have been made, so unbecoming by concern to a man was given so much of himself for so little.
Time has crept up and I find myself with no bargaining power and allowed myself to be in a position where I had to swallow it, although I did ask if my resignation was desired.
I can recall many instances where bare faced lies were told to me, the most recent when I was told Levy would be sent to the Far East to arrange to design some new needlepoint. I believed this and made suggestions that we arrange to have workers available on his arrival, in order not to waste any time. I later learned that this was not a fact. Would it have not been truthful to have said, you are too old and we want Levy to go and get acquainted?
In passing I should like to recall an incident that is worthwhile mentioning for the first time after so many years. I approved Levy coming to Shanghai to relieve me, after being there for less than two weeks he came to me and said “I am not going to remain and I will arrange to return home”. I told him if he did the place would be without anyone, and when he found that I meant what I said he changed his pitch. I can recall his reason and will stated if it is desired.
I have been a dedicated employee and gone through many hazardous conditions through the many years while in the services of this company. These can be recalled if I am requested to give them.
In conclusion, I want to state that I let Rieser down shabbily and I deserve all the humiliation that has been heaped upon me and the loss of a very good honest and sincere friend Mr. Rieser.
Ulmann’s investment in me has produced for them many millions of dollars.
Respectfully stated
Mervin Rothchild
September 21, 1967