P. A. Peterson: Immigrant Industrialist

Anna E. Carlson
Heritage School, Rockford

Pehr August (P. A.) Peterson came to Rockford from Ving, Vastergotland, Sweden, in 1852 at the age of six. He was on the first trainload of Swedish immigrants to Rockford. His father was a tailor. After four years in Rockford, his father moved to a farm in nearby Cherry Valley. For many years he worked on farms around Cherry Valley. Later he worked in the lumber camps of Wisconsin. He returned to Rockford when he was twenty-nine years old in 1875 to sell insurance and real estate.

In 1876 a group of dissatisfied Swedish carpenters met at John Erlander's home to form their own furniture factory, a cooperative. The men chose P. A. to be secretary of Union Furniture Company since he had taken a bookkeeping course. The group had $12,000 to found their business. On payday, if P. A. did not have enough money, he borrowed from farmers in Cherry Valley. "The day before pay day I would go home early, hitch my horse to the wagon, and drive out to the fanners for whom I had worked. From them I would borrow enough to meet the payroll. My mother had a good credit. Everybody took her word and I had exceeded in winning a certain amount of confidence."

In 1877 business was not good. He gathered the workers and scolded them for gossiping. He urged them to work harder. If work did not improve, he would have to close the factory. Fortunately, work improved.

P. A. paid all his loans, even if it meant borrowing more money. When P. A. was in debt, people offered him money, but he refused it. "I would say I did not have need for them at the moment, but that I might soon call for a loan since business was good, and it was getting necessary to expand."

In 1880 P. A. and other Swedes started The Rockford Chair and Furniture Company. They hired a young Swede as manager, but soon the company was in trouble. P. A. sent the manager, Robert Lind, traveling to find new orders for Rockford Chair. P. A. alone managed Rockford Chair as well as Union Furniture for weeks until Lind returned with orders. During that time he slept nights at his desk.

P. A.'s name spread in the 1880s. If a Swede could not obtain a loan from a bank, he came to P. A. A bank would give a loan if it saw P. A.'s signature on a scrap of paper. If the business failed, as often happened, P. A. paid the loan.

In the panic of 1893, the sheriff in one day closed twenty-seven Rockford factories, including many Swedish furniture factories. P. A. owed between $200,000 and $300,000. Instead of declaring bankruptcy, as he was advised, he resigned his offices in the companies. He gave his creditors what he owned. He took a job as a salesman for a furniture company for three years, saving his money. In 1896 the banks offered to return ownership to him if he would repay their investments. P. A. repaid with interest all of his debts.

The Union Furniture Company burned on August 25, 1889. P. A. immediately built another factory a mile away on 18th Avenue. Many of his new businesses grew on 18th Avenue.

During World War I he awoke at 3:30 a.m. to go to work at 4:00. He came home after meetings in the evening. To inspire his workers he was always at work before his men. His office at Union Furniture was just inside the front door. With no receptionist, any worker could talk with him. Frequently, he held his meetings on wood piles in his factories rather than in his office. He knew all his workers' names.

In 1910 he built a department store on State Street at the Kishwaukee Triangle. Many thought this foolish, because it was far from the downtown, but it was successful. Later his wife, Ida, ran the department store.

P. A. never drove a car, but quickly walked from business to business. He did not want to depend on an auto. To save time he met with salesmen at lunch. Only in extreme cold did he wear an overcoat or gloves. He was deeply religious, but could not stand long services. He once said at a prayer meeting, "You all have to quit now because I am going to turn out the lights and lock up. I have to get up in the morning and go to work." He was the largest contributor in the United States to the Anti-Saloon League. He was a member of Trinity Lutheran Church, but contributed to many other Rockford churches, too. For example, he was a major supporter of the Allen Chapel, African Episcopal Church. He regularly gave checks from his personal account to widows of his workers. He was a founder and major supporter of Swedish American Hospital.

P. A. and Ida never had children of their own, but adopted two girls that they found on the street. P. A. died in 1927 a multi-millionaire. On the day of his funeral, factories and businesses throughout the city closed. In his will he gave $500,000 to the Augustana Lutheran Synod's Foreign Missions Board, $500,000 to build a new Rockford YMCA, and $500,000 to build a home for the Swedish aged of Rockford.

P. A. was president of many companies, including Union Furniture, Rockford Drop Forge, Rockford Class Bending Works, Rockford Life Insurance, Rockford Mitre Box, Rockford National Furniture, Mechanics' Machine, Skandia Furniture, Haddorff Piano, Standard Furniture, Mechanics Furniture, Rockford Steel Furniture, Mechanics

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Tool, and National Lock. He was also vice president of the Free Sewing Machine and Rockford Chair and Furniture. He was one of the founders of the Swedish American Hospital and the Swedish Building and Loan Association. He also served as president of Sundstrand Corporation, Sundstrand Engineering, and Sundstrand Machine & Tool. He was a director of the Hanson Clock and Damascus Steel Products Corporation. Altogether, he owned stock in fifty Rockford companies. Though most of the furniture factories have closed, numerous Rockford machine tool and aerospace businesses operating today were started by P. A. Peterson.

Pehr August Peterson and his wife, Ida, had no children. They adopted the two homeless girls who are pictured here with Mr. Peterson.

P. A.'s friend Levin Faust said on P. A.'s death in 1927, "His success meant success to the community in which he lived. As a constructive city builder, he was surpassed by none in our beautiful city. His generosity was surpassed only by his modesty. The passing of this model man has brought about the loss of Rockford's greatest citizen."—[From "Appreciation of P. A. Peterson," Rockford Morning Star, June 11, 1927; "Body to Lie in State Six Hours Sunday," Rockford Daily Register Gazette, June 11, 1927; "Busiest Man Must Get Up Night Before," Rockford Daily Republic, Sept. 18, 1917; "Co-workers Pay Tribute to Peterson," Rockford Daily Register Gazette, June 10,1927; "Dean of Local Industry Dies of Pneumonia," Rockford Daily Register Gazette, ]une 10, 1927; "Death Claims City's Veteran Civic Leader," Rockford Morning Star, June 10, 1927; "Death Comes to Industrial Leader Here" (Rockfordiana File);"Friends Join in Tribute to Mr. and Mrs. P. A. Peterson," Rockford Register Gazette (Rockfordiana File); "Funeral Held on Monday" (Rockfordiana File); "Funeral Rites of P. A. Peterson Set for Monday," Rockford Morning Star, June 11, 1927; Jon W. Lundin, Rockford; Linden J. Lundstrom, Centennial: 1854-1954, The First Evangelical Lutheran Church, Rockford, Illinois; C.R. McElwain, "A Unique Character," Rockford Morning Star, July 20, 1927; "Mrs. P. A. Peterson Dies: Industrial Leader's Widow," Rockford Morning Star, June 27, 1964; C. Hal Nelson, ed., Sinnissippi Saga; C. Hal Nelson, ed.. We the People...of Winnebago County; "P. A. Peterson," Rockford Daily Register Gazette, June 10, 1927; "P .A. Peterson Portrait for Hall of Fame" (Rockfordiana File); "P. A. Peterson Memorial Plan Started Today," Rockford Daily Register Gazette, Sept. 1, 1927; "Peterson Will Is Renounced: Tax Increased" (Rockfordiana File); "Peterson Will Text," Rockford Morning Star, July 20, 1927; "Ten Civic Clubs form Peterson Memorial Plan," Rockford Morning Star, Sept. 3, 1927; "Thousand Floral Tributes Overflow Peterson Home," Rockford Daily Register Gazette, June 13, 1927; "Thousands at Funeral Rites of P. A. Peterson: Industry Halts in Tribute to Memory of Leading Citizen," Rockford Morning Star, June 14, 1927.]

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