THE FLAGSHIP FACTORY

The Ethan Allen furniture company traces its roots to 1936, when Nathan Ancell and his brother-in-law, Theodore Baumritter, bought the Beecher Falls Manufacturing Company and its outdated machinery for $25,000. He later wrote that in his first visit to the factory, he spoke to workers and "got the feeling...that this was their factory," and that "they would do anything under the sun to revive the business." (August, 2006 file photo by Lucie D. Fillion)

Although not wholly unexpected due to the weakened economy and a soft furniture market, the 260-job permanent layoff ann-ounced on June 24 at the Beecher Falls Division of Ethan Allen stunned its employees and the North Country.

Employees learned in a meeting last Wednesday that as of August 28, furniture-making operations would cease and 260 would be permanently laid off, with severance packages according to their years of employment. On the same day, the company announced plans to consolidate the Andover, Maine, sawmill laying off 60 at that facility and dimension mill at the Beecher Falls site. At the same time, the machining, assembly and finishing operations will be moved from Beecher Falls to Orleans, Vt., in a realignment of Ethan Allen's case goods manufacturing.

This does not mean that equipment will be moved from Andover to Beecher Falls, said David Callen, vice president of finance and treasurer. In the past the Orleans plant has had the finishing operation, he said, so it was the logical choice to make the segregation accordingly, keeping the rough mill and dimension mill in operation at Beecher Falls. "For all intents and purposes, it is a move of the work force only," he said.

The reality of bad economy has forced the company to make these changes, Mr. Callen said, œ�explaining that the work force would be rebuilt if things were to turn around. "Every opportunity that we have to rebuild that business, we are eager to do," he said.

While the furniture market remains soft and consumer confidence is still relatively low, there is some light at the end of the tunnel in the trade markets, he said. For some time now the company has been working with on again, off again weekly schedules which have posed a hardship for employees at both plants. The realignment will bring the 325 employees of the Orleans factory to a regular schedule. "These layoffs every other week were difficult, and we couldn't continue to operate that way," Mr. Callen said. "We will be looking to building the business going forward."

In a prepared statement, CEO Farooq Kathwari said, "While the severe recession has resulted in many challenges it has also accelerated our process of reinvention. We have one of the largest U.S. based home furnishings manufacturing operations, which we are committed to maintaining."

In a letter given to laid-off employees at last Wednesday's meeting, Executive Vice Pres-ident Corey Whitely said normal plant operations were expected to resume the following day. The factory is closed this week, however, and will reopen after the Fourth of July holiday. "Ethan Allen Operations, Inc., has had a beneficial relationship with its Beecher Falls employees, associates and the local community and has taken this action only after serious consideration of current economic conditions," he wrote.

Severance packages up to 20 weeks pay for those with 20 years' employment from their most recent hire date will be paid only to those who continue working through August 28. Those with six months of employment will receive a lump sum payment of all unused vacation earnings and insurance benefits are promised to continue until the final day, as well. "There are no bumping rights with Ethan Allen Operations, Inc." stated both Mr. Whitely's letter and another from human resources director Leslie M. Bouchard.

"We very much regret the impact of this realignment to our Andover and affected Beecher Falls associates," Mr. Kathwari continued in his statement. "This consolidation provides an opportunity to our remaining associates in Vermont to resume a more normal work schedule."

This constitutes the second major layoff in less than a year, and was not wholly unexpected in light of mill closings in Berlin and Groveton, said N.H. Senator John Gallus. He said the rapid response team from Concord will be available to the large number of New Hampshire residents employed at the plant. Unfortunately, he said, the team has become too good at its job due to much experience over the past two years.

"What we need is some jobs," he said. "I hate to say it, but Concord still has no idea where we are.  Thus far, he said, all the North Country has received is "lip service," and Sen. Gallus noted that due to the downturn "companies are not expanding their work forces or moving their business around."

Unemployment benefits are available, he said, stating that the state system is already being taxed heavily by providing $6 million in benefits a week. The fund is going bankrupt, he said, down from $250 million to about $90 million in assets, despite the fact that only one in four who are qualified apply for benefits.

In Canaan, the town's selectmen were dismayed that the company would close the Beecher Falls plant since it is the birthplace of the Ethan Allen Company, with a great work force supporting it. This manufacturing work force will be hard-pressed to find alternate jobs, said Greg Noyes, who himself worked at Ethan Allen for 39 years.

"Where are the jobs that they would use these skills?" he asked. "We've lost our manufacturing base and until we bring it back to the U.S., we're going to see this over and over again, in every small town in the nation."

While some may be able to take an early retirement, he observed, others including his son and a niece are facing a hardship. He estimates about 175 will be unable to find employment and may have to leave the area to support their families. More effort should have been made for the company leaders to sit down with the state and try and salvage more of the operation, he said. Already the town has worked with the company to reduce taxes by eliminating an equipment tax, agreeing to a reduced assessment to keep the taxes at same level as 2008, and to reduce the cost of waste that comes from the facility by $20,000 a year. "That helped them immensely, and the town took up the burden," he said.

Plant manager Dan Kurzman said he was unable to comment on the layoffs, but did say that working with the local and state government was "never an issue." Some areas of the Beecher Falls Division will continue operating, he said, including the sawmill, the yard, the rough mill and the flat line, and its cogeneration electrical plant will remain in place.

"We will continue to supply the Orleans plant with lumber and panels," Mr. Kurzman said. The property will not be put up for sale, and all the equipment will stay on site and be maintained, he said.

Ed Leigh of Canaan is in the second of three generations to work at Ethan Allen. He said that aside from his family, the Paquette family has had four generations who have worked at the plant. It has supplied the North Country area with a living for more than 100 years, he said. Mr. Leigh said his father, Ed Sr., started at the Beecher Falls factory in 1939, working 50-hour weeks for only 22 cents an hour. It has been difficult for his son, Scott, an Iraq War veteran, who will now face unemployment. "It's sad when you worked and belonged to something for so long and it's discontinued," he said. "I don't know anything sadder."

(Issue of June 24, 2009)

ETHEL JONES RECEIVES BOSTON POST CANE

At 102, Ethel (Gardner) Jones of Canaan is still just as spry as a woman many years younger. She recalls the years when she ran her home as a boardinghouse, mothering teachers and Border Patrol agents and sharing a life with her husband, Reginald. On Thursday, June 25 she greeted the Canaan Historical Society and a number of press photographers, there to see her honored as the town s oldest citizen. Standing from the left are Juana Schoff, selectmen Mary Lou Lovering, Vern Crawford and Greg Noyes, caregiver Gloria Cross, town clerk Linda Hikel and Fred Cowan. Kneeling in front are Eunice Richards, Noreen Labrecque, Mrs. Jones and Joan Cowan. (Claire Lynch photo)

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The Coos County commission has reached an agreement with the Tillotson Corporation to lower the 2009 assessed value of the Balsams properties, if the corporation agrees to withdraw its 2008 abatement request.

Mark Nieder of Commerford, Nieder & Perkins, the county's assessors, informed the commissioners of the agreement in a special meeting held at the Co–s County Nursing Home in Berlin last Wednesday. He said Tillotson Corporation president Grafton Corbett III has agreed to withdraw the 2008 abatement request if the commissioners lowered the 2009 assessed value of the company's Dixville properties, which include the hotel complex, golf course and ski area, and the Tillotson residence.

The properties were previously valued at $18,538,527, but a 2007 assessment by Pinnacle Advisory Group valued them at $9,900,000. In a February letter to the commissioners, Mr. Corbett stated, "We believe the properties are grossly overvalued and bear no resemblance to the real market value."

Also enclosed with the letter was a balance sheet showing losses of $2,558,215 in 2007 and $4,076,318 in 2008, as well as a œ�projected loss of $4,027,953 for 2009. Mr. Nieder said lowering the 2009 value to $14 million would be fair. Commissioners Bing Judd, Paul Grenier and Thomas Brady agreed and voted unanimously to reduce the valuation from $18.5 million to $14 million. The effect on other property owners in Dixville will be determined when the Department of Revenue Administration sets the tax rate in October.

(Issue of July 1, 2009)

ANOTHER SPRINKLE

Father Henri Delisle offered a sprinkling of holy water for passing riders at the 33rd annual Blessing of the Motorcycles, held at the Shrine of Our Lady of Grace in Columbia on Sunday.

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Independence Day will be celebrated this Saturday in Colebrook, Errol and Pittsburg. The weekend events begin this Friday in Colebrook, with the second of the CDDA's Old-Fashioned Friday Nights.

Starting at 3 p.m., the years from the turn of the last century through the 1930s will be celebrated with merchants and shoppers in vintage clothing and a display of antique cars at the former Nugent garage on Main Street. DJ Mike will play oldies at First Run Home Entertainment, and artists and crafters are welcome to set up tables; those who need a space may call Sandra Riendeau at 237-8010. The Colebrook Area Historical Society will host an exhibit of large pieces some of which have been stored out of sight for many years at the Tillotson Center.

Saturday's events in Colebrook begin with the American Legion œ�Pancake Breakfast, served up by the members of George L. O'Neil Post 62 from 7 to 10 a.m. at the Monadnock Congregational Church. For $6, patrons get all the pancakes topped with real maple syrup they can eat, with bacon and sausage, coffee, juice and milk.

A Kids' Fishing Derby for ages 12 and under begins at 8 a.m. at Roger DeBlois' pond, on Trask Road in Columbia. Prizes are awarded for the biggest and smallest, first catch, and first to reach limit of five.

The highlight of the day is the Fourth of July Parade, which steps off at 11 a.m. from Colby Street and onto Main Street. The theme for this year's parade is "Dream Vacation," and all are welcome to enter; lineup begins at 10 a.m. on Colby Street.

After the parade, the Kiwanis Club of Colebrook will serve its chicken barbeque on the front lawn of Colebrook Academy, starting at noon and accompanied by live music.

The day ends with fireworks at dusk, fired off from the athletic fields. Rain date for the fireworks is Sunday, July 5. Colebrook's July 4th events are organized by the Kiwanis Club, and more information can be found on-line at www.colebrook-kiwanis.org.

The Town of Pittsburg hosts July 4th activities at Murphy Dam, starting with a flea market from 10 a.m. to 6 p.m. Vendors are asked to bring their own tables. There is no charge for sites, but donations are accepted. Vendors may call 538-7003, 538-6540, or 538-6678 for more in-formation. Concessions are available all day starting at 11 a.m.

The Kids' Fishing Derby will be held at the Kids' Pond in the lower village for children ages ten and under. Pony rides will be held from 1-4 p.m., and there will be Cow Flop Bingo to benefit the class of 2010.

A Benefit Home Run Derby will be held at 3 p.m., with 50 percent of the proceeds going toward prizes and the other 50 percent going to the Scottie Owen family. At 6 p.m. visitors can enjoy a chicken barbeque and music by "Rock On" until the fireworks display begins at dusk.

The celebration is sponsored by the Town of Pittsburg and the Pittsburg 4th of July Committee.

Errol's Independence Day events are sponsored by the Umbagog Snowmobile Association, the Umbagog Area Chamber of Commerce and the Town of Errol.

The day starts off with a hula hoop contest at 9 a.m., followed by a three-legged race. At 10 a.m. there is a pie contest at the school and a fishing derby for ages 1-14 at the Kids' Pond. Pie entries must be submitted to the tent at the school by 9:30 a.m. The parade steps off at 1 p.m., with lineup at the state garage by noon; this year's theme is "Moments to Remember." After the parade there is a log-rolling contest at 2 p.m. Food concessions will be available during the day, and those who would like to rent a table for their yard sale may contact Kathy Dionne at 482-3445.

There will be a Twin Lobster Dinner at the Umbagog Snowmobile Association clubhouse from 4:30 'til it's gone for $19.95. The fireworks display is at dusk. All proceeds from the event will benefit the Umbagog Snowmobile Trail System.

(Issue of July 1, 2009)