James Rand Jr.

James Henry Rand Jr.
Born	(1886-11-18) 18 November 1886 North Tonawanda, New York, U.S.
Died	3 June 1968(1968-06-03) (aged 81) Freeport, Bahamas
Occupation(s)	Industrialist, Business executive
Years active	Early 1900s–1958
Known for	Founder of American Kardex; Chairman and president of Remington Rand; Vice chairman of Sperry-Rand

James Henry Rand Jr. (November 18, 1886 – June 3, 1968) was a prominent American industrialist known for revolutionizing the business records sector. He established American Kardex, a company specializing in office equipment and supplies, which eventually merged with his father's enterprise, Rand Ledger Corporation. Rand further expanded his business by acquiring companies such as the Remington Typewriter Company, culminating in the formation of Remington Rand. In 1955, he orchestrated a merger between Remington Rand and Sperry Corporation, resulting in Sperry-Rand, a pioneering American computer manufacturer.

Early years

Born in North Tonawanda, New York, Rand Jr. descended from John Rand, one of the founders of Charlestown, Massachusetts. His father, James Rand Sr., was the inventor behind the first commercial system incorporating dividers, file tabs, and index cards and founded Rand Ledger Company to manufacture these products. After completing his studies at Harvard University in 1908, James Jr. joined his father's firm and swiftly rose through the managerial ranks. He married Miriam Smith in 1910.

Rand Ledger and American Kardex

Following his father's illness in 1910, Rand Jr. took over leadership of Rand Ledger Company until 1914. A disagreement regarding a proposed million-dollar advertising campaign led to his departure in 1915. That same year, with a $10,000 loan from his uncle, he launched American Kardex.

Within five years, American Kardex emerged as one of the leading office supply companies in the United States, rivaling Rand Ledger's revenue and jointly dominating the market. By 1920, American Kardex had surpassed $1 million in sales and expanded internationally by establishing a manufacturing facility in Germany to meet growing European demand. In 1921, Rand founded the Kardex Institute to advocate for best practices in business record management and filing systems.

Early years

In 1925, American Kardex acquired Rand Ledger Company, creating Rand Kardex—the largest office supply company in the U.S. At that time, James Rand Sr. assumed the role of chairman while James Rand Jr. became president and general manager.

Rand Jr., author of Assuring Business Profits, or How to Run Any Business on a Big Business Basis, pursued an aggressive strategy of acquisitions. In 1926, Rand Kardex briefly held the position of the world’s largest office furniture supplier after acquiring Globe Wernicke Co., but divested following antitrust litigation. Between 1927 and 1929, the company added several firms to its portfolio including Index Visible, Safe-Cabinet Co., Library Bureau, Dalton Adding Machine, and Baker-Vawter Ledger. After briefly adopting the name Rand Kardex Bureau in 1926, it merged with Remington Typewriter Co. in 1927 and rebranded as Remington Rand. The company’s sales surged from $5 million in 1927 to $500 million by 1954.

Rand Jr. became chairman in 1929 and took on the presidency as well by 1931.

The Great Depression had a profound effect on Remington Rand; revenues dropped to just one-quarter of their previous levels by 1931 and only began to improve around 1936. In response to the economic crisis, Rand co-founded the Committee for the Nation in 1933 to advocate for recovery measures such as abandoning the gold standard—a stance that influenced President Franklin D. Roosevelt’s policies. His expertise earned him advisory roles within federal economic planning during this period.

In 1935, Rand was charged by the SEC with stock manipulation but resolved the matter through a consent decree agreeing to cease such activities without admitting wrongdoing. In 1937, he established Remington Rand’s electric shaver division.

Remington Rand strike of 1936–1937

In 1936, Rand became directly engaged in a significant labor strike at Remington Rand's manufacturing facilities. Initially, he maintained a positive rapport with the labor movement, earning commendations from William Green, president of the American Federation of Labor. Nevertheless, after employees began organizing unions in 1934 and successfully negotiated a contract, Rand instructed management to actively disrupt union activities. In May 1936, amid rumors of plant shutdowns and absent assurances from the company, the union initiated a strike.

Rand took personal charge of strikebreaking operations, which included hiring replacement workers, employing labor informants, issuing provocative public statements, and establishing company-controlled unions along with "citizens' committees" aimed at diminishing union influence. The strike became notably protracted and violent. The National Labor Relations Board (NLRB) chronicled many of Rand's aggressive tactics in its 1937 ruling (Remington Rand, Inc., 2 NLRB 626). Shortly after the strike commenced, Rand disseminated the "Mohawk Valley formula," a systematic approach to defeating strikes and unions that the NLRB characterized as "a battle plan for industrial war."

Following the strike’s conclusion, both Rand and strikebreaker Pearl Bergoff faced indictment under the Byrnes Act for unlawfully transporting strikebreakers across state lines. Although both were ultimately acquitted, the U.S. Attorney alleged that Rand had suppressed evidence. Four years later, the NLRB attempted to hold Rand in contempt for defying a court order to recognize the union; these charges were dismissed once the company complied.

Legal troubles and World War II

During the late 1930s, James Rand Jr. encountered several legal difficulties. In July 1939, he and executives from three other typewriter manufacturers were sued by the U.S. Department of Justice on antitrust grounds. Later that year, the Securities and Exchange Commission accused Rand of manipulating stock prices. Additionally, Remington Rand shareholders filed a lawsuit against Rand and fellow executives over excessive expenditures on employee benefits; this dispute was eventually resolved through an out-of-court settlement after several years.

Throughout World War II, Rand repositioned Remington Rand as a key defense supplier, manufacturing military hardware such as bomb fuses, the Norden bombsight, and the M1911 pistol. James Rand Sr. died in 1944.

Post-war years

Following the war, expansion accelerated under James Rand Jr.’s leadership. The Elmira plant in New York grew to become the largest facility dedicated to business machine production worldwide. Demonstrating strategic vision, Rand orchestrated Remington Rand’s acquisition of Eckert–Mauchly Computer Corporation in 1950. Eckert and Mauchly had engineered the first fully electronic, Turing-complete digital computer as well as the BINAC system shortly after founding their company in 1947.

The company recovered from its Depression-era difficulties with sales increasing from $5 million in 1927 to $500 million by 1954. On July 1, 1955, Remington Rand merged with Sperry Corporation; at age 68, Rand assumed the role of vice chairman in the newly formed corporation.

Retirement and death

At age 72, on April 15, 1958, James Rand Jr. relinquished his executive positions; Kenneth R. Herman succeeded him as president. Nevertheless, legal challenges continued— in 1965, the Internal Revenue Service filed a lawsuit against him seeking $35 million in unpaid taxes.

Rand retired to The Bahamas with his third wife, Dorothy Stevenson, generously supporting institutions such as Princess Margaret Hospital in Nassau and Harvard School of Public Health. He passed away in Freeport in 1968 at age 81, survived by his spouse and three children.

Speedboats

In addition to his entrepreneurial activities, James Rand Jr. was a well-known enthusiast and supporter of speedboats. During the 1920s, he backed the "Spitfire" model, which achieved numerous victories in competitive racing. In 1927, Rand earned the distinguished Duke of York Cup, a highly regarded award in powerboat competitions.

Rand's dedication to speedboating extended beyond sport and had a life-saving dimension. In 1939, while navigating the waters of Long Island Sound, he saved three women from a capsized vessel, personally ensuring their safety at the age of 53. This courageous rescue attracted considerable attention from the press.

External links

• Official website of Kardex