Patrick Henry Callahan was identified for nearly half a century with the Louisville Varnish Company, which expanded under his direction.
Background
Patrick Henry Callahan was born on October 15, 1865 in Cleveland, Ohio, United States; the oldest of four children of John Cormic and Mary Anna (Connolly) Callahan. The elder Callahan, who had come with his parents from County Mayo, Ireland, owned a farm on the outskirts of Cleveland where he bought and sold cattle.
Education
After graduating from St. John's High School in Cleveland, young Callahan entered the local Spencerian Business College to prepare for a business career.
Career
After graduating from St. John's High School in Cleveland, young Callahan entered the local Spencerian Business College to prepare for a business career. His first position, in 1886, was as private secretary to Marcus A. ("Mark") Hanna at the Union National Bank of Cleveland. Active in amateur baseball, Callahan next trained for a pitching position on the Chicago White Stockings (later the White Sox) but abandoned the game at the admonition presumably of his teammate, William A. ("Billy") Sunday, who himself was soon to leave professional baseball for the ministry and the evangelist's circuit. In 1888 Callahan was employed as a salesman by the Glidden Varnish Company of Cleveland, subsequently becoming manager of its Chicago branch. He resigned in 1892 to accept a similar post with the Peaslee-Gaulbert Company of Chicago. Within a few months he was appointed sales manager of the Louisville (Ky. ) Varnish Company, with which he was to be identified for nearly half a century, serving as president during the last three decades of the period. During the years 1911-14 he was vice-president and president of the National Paint, Oil and Varnish Association. Specializing in cabinet varnishes, the Louisville Varnish Company steadily expanded under Callahan's direction, reaching yearly sales of nearly a million and a half dollars by 1925. By this time the enterprise was widely known for its profit-sharing plan, instituted in 1915 in accordance with suggestions submitted by the Rev. John A. Ryan, the country's leading Catholic authority on industrial ethics. Under the Ryan-Callahan arrangement workers and investors shared equally in surplus earnings--the sum remaining after the payment of wages and a six-per-cent dividend on common stock. The workers also shared in the income from the paid-up preferred stock which amounted to almost a third of the company's total capital. In prosperous years the workers' gains came to well over fifteen per cent of their wages. The willingness of workers in periods of depression to accept lower wages contributed to the plan's success. Not the earliest example of successful profit-sharing in American industry, the Ryan-Callahan plan was among the first to concede and widely publicize that employees have substantial property rights in the modern manufacturing corporation. Something of a paternalist in disposition, Callahan introduced various other features of welfare capitalism, including group insurance for his employees. His success as a humanitarian employer synchronized with and intensified his growing interest in the religious aspects of civic movements. He participated in more Catholic activities than perhaps any other contemporary layman. As chairman of the Knights of Columbus Commission on Religious Prejudices, 1914-16, he directed its investigations and wrote its reports which laid bare the political and sociological no less than the strictly sectarian roots of religious rancor. One of the Commission's recommendations--that well-informed persons in letters to newspapers rebuke bigotry and uphold the religious and civil rights of all Americans--was carried forward by the Catholic Laymen's Association of Georgia, which Callahan helped to organize in 1916, and by Callahan's own private newsletter, through which "corrective information" was communicated over the years to many national leaders in business, politics, social welfare, and religion. In this manner Callahan prepared the groundwork for the National Conference of Christians and Jews (1927) and other good-will organizations, to many of which he lent counsel and financial aid. On America's entry into World War I, Callahan headed the Knights of Columbus Committee on War Activities, whose ministrations to service men at home and overseas won merited praise.
During the postwar years Callahan supported the organized peace movement and presided over the formation in 1926-27 of the Catholic Association for International Peace. As one of the directors of the Catholic Conference on Industrial Problems (founded in 1923), he presented the claims of social justice from the Christian employers' point of view. Mainly because he believed that national prohibition helped workers to secure a "living wage, " he utilized the Association of Catholics Favoring Prohibition in an effort to strengthen the "dry" forces seeking rigid enforcement of the Eighteenth Amendment. In politics an active Democrat, he declined President Wilson's offer to make him chairman in 1917 of the recently created United States Tariff Commission. During the 1920's he supported the Bryan-McAdoo as against the Smith wing of his party. On companionate terms with William Jennings Bryan, Callahan provocatively championed the Fundamentalist position during the famous Scopes evolution trial at Dayton, Tennessee, in the summer of 1925. In defending even unpopular causes, Callahan suffered little loss of actual influence inasmuch as all conceded his sincerity, fairness, and conciliatory spirit. If most Catholics disapproved his stand on prohibition, they increasingly valued his pioneering in the field of industrial democracy.
Until the end he continued to perform distinguished service, helping on various city and state boards to administer New Deal legislation, notably the National Labor Relations Act and the Social Security Act.
He died in Louisville of a coronary thrombosis and was buried in Calvary Cemetery in Louisville.
Achievements
Pope Pius XI honored him with membership in the Order of St. Gregory the Great in 1922.
The Newman Foundation at the University of Illinois conferred upon him in 1931 its Medal of Honor.
Religion
He was interested in the religious aspects of civic movements and participated in a great number of Catholic activities.
Politics
In politics he was an active Democrat.
Connections
Married to Julia Laure Cahill of Fremont, Ohio, on January 20, 1891, Callahan was the father of three children: John Mitchell, Robert Emmet, and Edith Dee.