The plan was in place. Zeloid had 200,000 square feet of floor space, capacity for 15 machine units to produce up to 15 tons of cellophane paper daily, rail availability, canal water rights and was readying the plants for manufacturing. Officials stated that machinery had arrived in New York from Germany in August 1929.
The concrete floor, which would be installed by LaFrance Construction, was permitted in September 1929. In December 1929, company officials announced the plant would be ready to operate in mid-1930. A month later, a group from Hartford, Connecticut, was purported to be luring Zeloid to that state.
Meanwhile, the company continued to elect corporate Directors from Holyoke, including Dr. Frank FitzGibbon, a well-respected dental surgeon and Otto Dreikhorn, a baker. Sidney Willson of American Writing Paper Co. and Martin Cramer of J & W Jolly were also named Directors.
The company indicated that due to the lack of interest in Holyoke investors, it would be seeking up to $10 million in outside capital. This announcement was made in June 1930.
Moving forward to November 1932, the company was expected to announce the commencement of operations when Dr. Hetzel, the corporate President, returned from handling business in New York.
In April 1933, the City of Holyoke published its list of parcel owners with unpaid real estate taxes, and Zeloid Products appeared on the list owing $3,627 for a portion of fiscal year 1930. Cracks in the plan to open the factory were beginning to form.
Dr. Hetzel was upset that the city placed Zeloid on the list. He indicated that the financing was contingent on Zeloid opening a proving plant to validate the product. He enlisted a Boston Engineering firm to perform the study. 7 Days later, the city added the second parcel adjoining the Franklin Paper Company to the tax list, owing $2,995 in unpaid real estate taxes.
In June 1933, the company placed an ad attempting to raise $1.2 million in common stock and clearly indicated that "The shares are offered as a speculation and not as an investment." In August 1933, Dr. Hertzel indicated that raising the money would allow construction of the pilot plant to resume after Labor Day. It would then take 3 additional months for the plant to begin operating.
An eminent Boston engineer issued a report supporting the quality, tensile strength, and future of the cellophane product.
In December 1933, Zeloid hired Sigmund Goldmeyer as a design engineer. He had 10 years of experience with DuPont in Buffalo. Zeloid registered with the Federal Trade Commission to sell securities to raise up to $1.6 million at $1 per share. The first $100,000 raised would fund the completion of the plant. Draftsmen could then be hired in early 1934 to begin designing machinery.
The final chapter (Part 3) will provide the outcome of the promises, hope and optimism expressed by company officials over the preceding 5 years.
Citations:
Newspapers.com (paid subscription): Citations: Holyoke (Massachusetts) Transcript & Transcript-Telegram; publication dates and pages are shown.
Ancestry.com (paid subscription): Price & Lee, Holyoke, Massachusetts, City Directories
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