Sewell Avery

Sewell Lee Avery
Born	Saginaw, Michigan, U.S.
Died	October 31, 1960(1960-10-31) (aged 85)
Occupation(s)	Entrepreneur, business executive
Known for	President of United States Gypsum Company (1905–1936); Chairman of Montgomery Ward

Sewell Lee Avery (November 4, 1874 – October 31, 1960) was a prominent American entrepreneur who initially gained recognition in the gypsum mining industry and served as president of the United States Gypsum Company from 1905 until 1936. During the onset of the Depression, he was recruited by J.P. Morgan & Co. to revive the struggling Montgomery Ward retail business. Avery successfully restored its financial health by implementing significant reforms. By 1936, Fortune magazine described him as "widely regarded as the foremost businessman in Chicago." However, in the years following World War II, Avery did not capitalize on the growing market for durable goods nor expand Montgomery Ward, which led to a decline in its retail prominence.

In addition to his business pursuits, Avery was deeply involved in civic initiatives in Chicago. He notably supported the Commercial Club's vision for a Museum of Science and Industry and became its inaugural president. He also held a notable position within elite social circles; in 1912, he co-founded the exclusive Lincoln Park Gun Club alongside distinguished Chicago figures such as Oscar F. Mayer and Philip K. Wrigley.

Early life and education

Born in Saginaw, Michigan, Sewell Lee Avery was the son of Ellen Lee and Waldo A. Avery, members of a prominent local family engaged in lumber, banking, and mining. His paternal relatives were recognized as influential lumber barons. Avery received his early education at public schools in Saginaw and Detroit, followed by attendance at the Michigan Military Academy. He completed a bachelor of laws degree at the University of Michigan in 1894.

Marriage and family

Shortly after completing his education, Avery wed Hortense Lenore Wisner. They initially lived in a modest lakeside apartment when he began working at a gypsum facility located in Alabaster, Michigan. (His father, who had invested in the plant, facilitated his entry into the business.) Their home was notable for having the town’s first bathtub.

Career

In 1894, Avery was entrusted by his father with overseeing a gypsum manufacturing plant in a small Michigan community. He renamed the enterprise the Alabaster Company, inspired by the town’s name and its appealing sound. This company was among several that merged in 1901 to form the United States Gypsum Company (USG Corporation). Avery advanced to sales manager in Buffalo and was appointed president in 1905, a role he maintained until 1936, guiding the company through extensive expansion. Subsequently, he served as chairman until 1951. Alongside his brother Waldo Avery, he held a 3.6% ownership stake in USG.

Recognizing his achievements, J.P. Morgan & Co. invited Avery to join the board of US Steel in 1931. That same year, amid the onset of the Great Depression, Morgan & Co., which held a majority interest in Montgomery Ward, recruited Avery to restore the retailer’s profitability, offering him a substantial salary and stock options. After rapid growth from 10 stores in 1926 to 554 by 1930, Montgomery Ward was incurring significant losses. As chairman, Avery implemented cost reductions by shuttering underperforming stores, replacing catalog managers with seasoned chain-store executives, and eliminating unprofitable product lines.

His leadership earned admiration; one employee recalled:

“I never witnessed such a sweeping transformation within a company. Avery completely overhauled everything, down to the fixtures and decorations. Everyone was energized and eager to contribute their best for him.”

Through restoring profitability, Avery amassed considerable wealth via stock options. However, his cautious approach limited expansion during the mid-1930s recovery period because he viewed the economy as unstable.

As president of the Commercial Club of Chicago, Avery endorsed Julius Rosenwald’s proposal for an industrial museum as early as 1925. Rosenwald had developed Sears, Roebuck into a formidable competitor against Montgomery Ward. Continuing his support, Avery became the inaugural president of Chicago’s Museum of Science and Industry.

Politically conservative causes received his backing; he financed the American Liberty League and acted as a national adviser for one of its affiliated groups, the Crusaders. He also contributed generously to the Church League of America (CLA). Like many affluent businessmen of his era, Avery opposed President Franklin D. Roosevelt’s New Deal policies.

Avery endowed multiple professorships at the University of Chicago and funded research initiatives and expeditions for the Field Museum of Natural History. A venomous coral snake species, Micrurus averyi, bears his name in recognition.

During World War II, Avery frequently challenged actions taken by Roosevelt’s National War Labor Board and was resistant to labor union demands. After union representation was secured for 7,000 Montgomery Ward employees, he initially refused to sign a contract until compelled twice by Roosevelt himself. In 1944, when he declined to resolve a strike that threatened essential goods delivery, Roosevelt’s administration intervened by seizing control of Montgomery Ward; two soldiers physically removed Avery from his office.

Reportedly confronting the Attorney General sent to negotiate with him, Avery exclaimed: “To hell with the government, you... New Dealer!”

Following government takeover of Montgomery Ward, Avery commented:

“The government has been forcing both employers and employees into accepting a form of unionism often orchestrated by individuals not employed at the plant... These measures merely disguise attempts to lead our nation toward dictatorship.”

Once reinstated at Montgomery Ward’s helm, Avery continued extensive reading on business matters but misjudged postwar economic conditions—anticipating depression despite rising demand fueled by available private capital. Throughout administrations under Truman and Eisenhower, he maintained a pessimistic outlook. Unlike Sears, Avery resisted introducing pension plans, insurance benefits, or profit-sharing schemes for employees and refrained from investing in company growth. Consequently, Sears outpaced Montgomery Ward significantly; by 1951 it had more than twice Montgomery Ward’s business volume and surpassed it in store count while Avery remained focused on weathering an anticipated downturn. Even after stepping down as president in 1954, Montgomery Ward never regained its prior market standing.

By his retirement in 1955, Sewell Avery’s fortune was estimated at $327 million. He passed away in 1960 leaving an estate valued at $20 million before taxes to two daughters and seven grandchildren according to inheritance tax records.

Legacy

Around late 1946 or early 1947, Avery transferred full ownership of the copyrights for Rudolph the Red-Nosed Reindeer—a tale originally crafted in 1939 by his employee Robert Lewis May for a corporate promotional project—back to May. Between 1939 and 1947, this story had swiftly become a staple of Montgomery Ward's yearly marketing efforts, with more than six million copies distributed. Following Avery's transfer of the copyrights from Montgomery Ward to May, the latter promptly published the story commercially as a widely acclaimed children's book. Subsequently, May enlisted his brother-in-law, songwriter Johnny Marks, to compose a song inspired by the story, which evolved into one of the best-selling songs ever recorded. Since then, Rudolph the Red-Nosed Reindeer has entrenched itself as a beloved element of popular culture and Christmas traditions across numerous regions worldwide.