September/October 1992
Even after decades in the business, many scrap executives aren't ready to leave the industry behind. Though they may say they're retired, these experienced scrapmen are staying active to help the recycling industry prosper.
BY KENT KISER
Kent Kiser is associate editor of Scrap Processing and Recycling.
Most corporate executives who have worked 50 to 60 years with the same company would jump at the chance to repair to Florida or California, and spend their days playing golf and relaxing, far from the cares of the business world. Senior scrap executives, however, seem to be the exception to this rule.
As the following profiles show, many scrap executives are going strong in their 60s and 70s. Although most could have retired a decade ago, they have no intention—and no desire—to stop now. Their common reply is "I enjoy working, and I enjoy the business."
On average, these six executives have worked 51 years in the scrap industry—a combined total of 305 years—and they have seen the industry undergo revolutionary transformations since the early decades of this century. When most of these men entered the scrap business, company employees didn't have titles, manual labor was still a large part of the job, and telephones were the cutting-edge communications technology of the day. Almost all began at the bottom and learned the business literally from the ground up.
Whether they attribute their longevity to their personal work ethic, their love affair with the scrap industry, or just plain stubbornness, these executives prove that age is relative.
"A Lot of Satisfaction in Being in the Industry"
Nathan S. Addlestone began his career at 17 in 1930, humbly starting out as a truck driver and scrap buyer for his father's business, Sumter Iron & Metal Co. in Sumter, S.C., which handled everything from furs to metals. Back then, he recalls, the firm's largest piece of equipment was a cutting torch, workers used wheelbarrows to move scrap around the 4-acre yard, and the company's telephone number was only three digits long.
By 25, Addlestone had taken over operation of the company for his ailing father. When his older brother—now deceased—joined him in 1945, they changed the company name first to Addlestone & Co. Inc., then to Addlestone International Corp. (Charleston, S.C.) in 1973.
Throughout his 62 years in the industry, Addlestone has founded, bought, and sold many scrap-related companies. For example, he was one of the founders of both Steelmet Inc. (Pittsburgh) and Georgetown Steel Corp. (Georgetown, S.C.). Until three years ago, he owned and operated Associated Iron & Metal Inc. (Jacksonville, Fla.), Columbia Steel and Metal Co. (Columbia, S.C.), and N. Goldberg Co (Charleston, S.C.).He has since sold his interests in these companies, now maintaining a brokerage office in Charleston and a shredding operation in Georgetown, S.C.
Over the decades, Addlestone was also involved in both the Institute of Scrap Iron and Steel (ISIS) and the National Association of Recycling Industries (NARI), the predecessor organizations of the Institute of Scrap Recycling Industries (ISRI) (Washington, D.C.). In addition to serving on the ISIS board of directors and as president of its Southern Chapter, he was chairman of NARI's Southern division. "There's a lot of satisfaction in being involved in the industry," he says.
Addlestone admits that he could have retired long ago, and he says, "At 79, I don't plan to work much longer." So why doesn't he just hang up his hat and enjoy the apartment he owns in Manhattan 's Trump Plaza or his bungelow on Sullivan's Island near Charleston? "I enjoy working," he answers. "I don't want to retire 100 percent. I'd like to keep some finger in the scrap industry."
"You Never Stop Worrying"
"I was born into the scrap industry," says Fred Berman, chairman of the board of Berman Brothers Iron & Metal Co. (Birmingham, Ala.). Berman joined his father in the family business in 1946 when he was 22 and fresh out of the Army. "I got out one day and came to work the next," he says. He began as a gofer, gradually progressing to purchasing, inspection, and supervisory positions. More than just a leader in his own backyard, Berman served as president of ISIS from 1972 to 1974 and assisted in the NARI/ISIS merger.
In 1952, Berman became vice president when his father fell ill. "I went from being one of the employees who didn't have to worry about the financial end of the business to one who did, and that made a difference," he notes. He became president in 1967 and led the company in that capacity until 1986, when his son-in-law Steve Weinstein assumed the position. Berman's other son-in-law, Alan Davis, is also part of the business, serving as executive vice president.
Berman, now 67, began phasing himself out of his business five years ago. "In the past couple of years, I've been more the fellow who tries to stay out of the way—though not always too successfully," he jests. Unlike many of his cohorts, Berman is eager to retire, stating, "I think 45 years in the business is enough." He plans to spend half the year in Boca Raton, Fla., and the remaining time traveling or at home in Birmingham. "There are still a lot of places my wife and I haven't been," he says, adding that he'll also pursue his interests in golf, fishing, and cards.
Looking back, Berman notes some of the dramatic changes the scrap industry has undergone since the 1940s, when the business was more gentlemanly and entrepreneurial, he says. "It's gotten too restrictive as far as government regulations. You have to operate in a narrower context," he asserts. In addition, today's scrap recyclers "have to know everything about everything they buy," he points out. "They have to know the calorie content on every box. It's a different way of doing business, and it's difficult today to make it fun."
Although Berman no longer plans to be closely involved in his company, he says, "I don't think I'll ever stop worrying about it. It's like having children—they grow up, but you never stop worrying about them."
"Part of My Blood"
At 61, Sandy Cortopassi is the baby in this bunch. He entered his father's business—Overland Metals Inc. (St. Louis)—in 1946 at age 16. "Back then I was physically working in the scrap yard, buying, selling, and processing scrap," he says. Although the company now specializes in nonferrous scrap, he notes, "at that time we handled everything—rags, paper, ferrous, and nonferrous scrap." In those early days, he recalls, "you didn't have titles in the scrap business, you just worked."
When his father became ill, Cortopassi had to quickly assume a leadership position. By 1962, he had become president of the company and has held that position ever since. Through the years, Cortopassi was also a leader in other contexts, serving as president of NARI's metal dealers division in the early 1980s and being involved in banking until two years ago.
Although Cortopassi remains very involved in his business, he has kept an eye on the future by grooming his son-in-law Mark Sprowls and son Steven Cortopassi—both vice presidents—to handle the day-to-day operations of the firm. Cortopassi is now the "big picture" man. "My main function is to oversee the total operations of the business," he says. "I'm involved in long-range planning, long-range cash flow, expansion, and finance." Of particular interest, and concern, to Cortopassi are the changing quality demands of scrap consumers. "I don't think that our industry is spending enough on new technology that will help upgrade our products," he asserts. "We must continually upgrade our products. Quality control—I preach it from the rooftops."
Currently, Cortopassi works—and plays—about five months of the year in Sanibel Island , Fla. , which has been his home-away-from-home for the past decade. He and his wife also travel to Europe every other year. No matter where he is, however, he makes it a point to constantly keep a finger on the company's pulse. "I love my business," he says, "it's part of my blood. I'm going to stay as active as I am until I'm no longer here."
The "Transportation Czar"
Before his retirement in September 1991, Harold M. Pockrose was the "transportation czar" of the scrap industry. Not only did he head up the traffic and transportation department of David J. Joseph Co. (Cincinnati) for 36 years, but he served as vice chairman and chairman of ISIS's—and later ReMA's—transportation committee for more than 25 years.
Pockrose, who holds a master's degree in geography, began working for Joseph Co. in 1955 after emerging from the Navy. He started out as manager of transportation and climbed the ranks to become director and then a corporate assistant vice president in 1990. Pockrose helped Joseph Co. become the first brokerage and processing firm to develop a full-service traffic and transportation group, as well as the first to negotiate contract rates with carriers.
Throughout his career, he also advanced his company's and the industry's transportation interests by traveling around the country, "making contacts, talking about pricing, regulations, anything involving transportation," he says. Looking back, he notes, "I enjoyed the relationships I built not only with the scrap processors, but with the transportation companies that were interested in scrap. I pointed out to them through the years the importance of scrap as a revenue source."
As a retiree, Pockrose is doing volunteer work with a local blood center, helping the organization—you might guess—transport blood from the blood bank to the processing plant. The scrap veteran says he also plans to travel and work on projects around his house. Pockrose has no firm plans to stay involved in the scrap industry, but he adds, "not that I won't show up at ReMA meetings sometimes." (And, indeed, he has.) He says he doesn't miss the tension and stress of his working life—in fact, his doctor took him off his blood pressure medicine a month after his retirement, he notes humorously. Still, Pockrose admits, "I think about the people. I do miss some of the contacts and the relationships with the people."
"I'll Keep Going Until They Kick Me Out"
A. Victor Rosenfeld entered his family's scrap business—Calbag Metals Co (Portland, Ore.)—more than 60 years ago, poking around the yard when he was just "a little kid" and working during his summers home from college. After earning an MBA from Stanford and emerging from military service as an Air Force captain, Rosenfeld entered the business full-time in 1946. He became president upon his father's death in 1962 and served in that position until 10 years ago, when he became chairman of the board.
Victor's son, Warren, now squires the firm through its daily operations, and Rosenfeld appreciates no longer having to contend with the day-to-day pressures. "Now I just get into trouble," he says. "I sit in on discussions regarding prices, exports, and domestic customers. I'm a great sounding board."
After six decades with the firm, 75-year-old Rosenfeld could easily—and justifiably—slow down and enjoy the fruits of his labors, but he continues to report to work at 7:30 a.m., five days a week, and put in an eight-hour day. "I enjoy this," he explains. "And I enjoy the people we deal with. It's just very interesting." Rosenfeld is equally industrious outside the office, participating in "so many things" in the Portland area, including serving as a trustee and board member for a local hospital, various Jewish drives, and the Port of Portland . Years ago, he was also a vice president of NARI and is a former member of the Oregon Investment Council.
Although he and his wife vacation each year at their home in Palm Desert, Calif., and occasionally travel overseas, Rosenfeld can never stay away from the business for long. In the end, there's nothing he'd rather be doing. "I'll keep going until they kick me out, or until the boss at home says `No more,'" he says. "I'm just a kid at heart."
"There's Always Something New"
Milton I. Schwab helped his father found Franklin Smelting & Refining Corp (Philadelphia) in 1935, and he has worked for the company in one context or another ever since. He started out as assistant plant manager and buyer, and over the years progressed to general plant manager, vice president, and president/chairman of the board, a title he's held for the past 15 years.
At 76, Schwab is still "fully involved," he says, handling the firm's finances, following market trends, overseeing new equipment installations, and supervising the implementation of new processes. He continues to find the business interesting: "The ever-changing nature of the scrap, the raw material, makes it intriguing. There's always something new coming to light." He also enjoys the friendly relationships he's established with many of his suppliers and consumers. In his 57-year career, Schwab has served on NARI's board of directors and was president of the Secondary Metal Institute, part of NARI's smelters division, among other committees. "I was very active in NARI for many, many years," he says.
Schwab is outspokenly proud of the fact that three generations of his family are currently working in the company. Two of his nephews—Michael Saltzburg and Daniel Schwab—manage most of the day-to-day transactions, serving as executive vice president of operations and vice president of buying, respectively. Schwab's grandson, Scott Greenberg, represents the youngest generation on the corporate ladder.
When asked about retiring, Schwab admits, "I could have retired 10 years ago, but I didn't want to." Although he could jet off to his condo in Palm Beach, Fla., and pass his days playing tennis, his favorite past-time for 50 years, "I have no retirement plans as of yet," he asserts. "I enjoy working. This is my main interest." •
Even after decades in the business, many scrap executives aren't ready to leave the industry behind. Though they may say they're retired, these experienced scrapmen are staying active to help the recycling industry prosper.