Date: February 16, 2004
Vol. VIII, No. 4

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TABLE OF CONTENTS

COMMENTARY: WORKING WITH OTHERS

During the HIA show I heard an interesting reaction to my commentary in the last issue. I had suggested to chain buyers who are afraid of ordering a product line from a small vendor to go to an experienced vendor and have him make a marketing/licensing deal with the little guy – but don't just pressure the larger vendor to rip off the smaller one.

A friend said my idea is often followed by the pharmaceutical industry. There are lots of small firms developing new medicines, he said, especially bio-tech firms. They then license their discoveries to the huge drug companies who know how to market and distribute medicine.

That way the creative people keep creating. Sounds like a plan to me – an ethical plan that's good business for all.

NEW COLUMNS THIS ISSUE

Designing Perspectives. Veteran designers Tracia Williams and Lynda Musante describe the trends they saw at the HIA show – products, designs, motifs, and more.

Category Reports. Decorative Painting looks like it's getting a facelift, if manufacturers' new strategies succeed. Read the complete details by painting veteran Shea Szachara.

Business-Wise. Design/marketing pro Debba Haupert describes the problems of HIA exhibitors and products standing out from the crowd. Many retailers face the same dilemma.

Scene & Heard. A new column by Ellie Joos, an industry pro in design, product development, and marketing. Ellie reports on trends at the New York Gift Show.

New Trade Show Exhibitors. The HIA show is over, but this column will remain online for a while for anyone wishing to double-check on what they saw (or missed) at the show.

(Note: If you visit one of the columns mentioned above and it appears to be an "old" column, click the "Refresh" or "Reload" button on your browser.)

Merger. This was the 63rd – and probably last – HIA show. The merger of ACCI and HIA into the Craft & Hobby Assn. is virtually complete, save for the lawyers' final sign-off on due diligence, which should happen shortly. The new logo was even unveiled at the annual banquet. Members of each organization voted overwhelmingly in favor of the merger.

Attendance. Total attendance was nearly 18,000, slightly lower than last year. There were 1,157 exhibitors, down three from last year, but there were 3,049 booths, up 32. More than 1,600 international buyers attended, up about 100. There were more than 7,900 buyers, down from last year's 9960, but up from the 6,600+ who attended the last Dallas show in 1999.

Mood. Very upbeat. Buyers (who ultimately control the vendors' mood) came to the show with their inventory in good shape and expressed great interest in the thousands of new products.

International. The weak dollar has given a solid boost to U.S. export sales ... It looks like scrapbooking may finally be ready to take off in Europe ... Cardmaking is already strong there ... There's a relatively new chain in England, Craft Central, which will have 12 stores open by Easter. Its 15,000+ SKU's include cardmaking/stationery, art materials, surfaces, paints, kids' crafts, and needlecrafts, but no framing, florals, or gifts. Email craftcentral@aol.com.

City. Dallas reminded everyone why they preferred Anaheim. Next year the show moves to Atlanta, then Las Vegas, and then will probably settle in Anaheim for 10 years.

Scrapbooking. Dominated the show once again. The general consensus was that massive consolidation is coming soon. The vendor pie is just being cut into too many pieces. (We talked to two storeowners-to-be who thought they'd attend the show and choose which products to carry in their new stores. We suggested they not even attempt such a monumental task and work with distributors instead.) Rose Art's extensive line of Kodak brand scrapbooking supplies looks like it's attracting the interest of office supply chains, drug store chains, and others.

Hot Categories. Memory, paper/cards/stamps, yarn, and beads.

Yarn. Knitting continues to go through the roof. Now watch for the Craft Yarn Council of America to push crochet, which takes less time and uses more yarn. The CYCA's Warm Up America! program has now created more than 200,000 afghans – that's 10 million squares!

Paper. Cardmaking is growing into a category of its own; it's giving a boost to altered art (mixed media) and helping to merge stamping, scrapbooking, and general crafts.

Beads. Jewelry-making continues to be hot. Look for an increase in the number of independent bead shops. Beads were used as embellishments on almost every type of project.

Crafts. Some major craft vendors unveiled large scrapbook lines. Look for the chains to add those lines in part because these vendors have a successful track record of dealing with them.

Comebacks. Mike Dupey exhibited under Dupey Construction Co. (selling low-priced jewelrymaking components). Mike founded Michaels with his father and later built MJDesigns into a major force before bankruptcy. Mike is considered by many to be the best merchant in the industry's history.

Needlework. Look for DMC's new Linea line to give a big boost to needlework. It makes personalizing clothing, accessories, and other items a snap ... Westex and Jones Tones unveiled Floss Gloss, a line of cross-stitch kits with Floss Gloss Paints and glitter embellishments.

Miscellaneous. Mervyns, the west coast department chain that is a division of Target, is adding scrapbooking ... The HIA Foundation golf tournament raised $20,000+ for the Kids in Need program run by SHOPA. (School, Home & Office Products Assn.) ... There's a growing movement to create a museum/history of the industry. Since this was the last HIA show, and last July was the final ACCI show (they will become the CHA winter and summer shows), and our industry pioneers are getting older – now is the time ... Watch for a PBS series starring Priscilla Hauser and produced by Cutters Productions ... Accu-Cut has a new name: AccuCut.

Licensing. Rose Art's Thomas Kinkade line of paint-by-number kits looks strong, too ... Watch for more Red Hat Society products, such as cross-stitch kits from Candamar. 

Condolences. At the show we learned of the death of Bob Hermann, president of McCall Pattern. For many years Bob was a leading force in the Home Sewing Assn. and the sewing industry in general … Oscar Kummerlowe, a Wichelt Imports sales pro, passed away suddenly.

But the big shocker was Catherine Kay of Fibrecraft, who suffered a brain aneurism as she stepped off the plane that brought her to Dallas and died on the way to the hospital. Casey Casebolt wrote, "She was one of the staunchest, hardest-working, longtime supporters and flag wavers for the independent businessman. For the many former Ben Franklin associates who enjoyed her friendship at those great BF shows, she would almost cry when she heard of another Ben closing its doors! It really made her quite furious to think the "big boys" had pushed another one of "her guys" out the door. She was ALWAYS concerned about everyone else, never herself ... She was for sure the ultimate LADY! She will brighten the heavens with her presence...."

1. "Used to be, most new products you'd see at HIA were prototypes. If the vendor received enough orders, then he'd go into production. Now you can be pretty confident the new line is in production, because the vendor's already shown it to the chains. If the chains didn't like it, the vendor would kill it before the show." – Large independent

2. "We're seeing a number of the older scrapbook stores close, mainly due to poor inventory management. The consumer's constant pressure to add new products pushes them to add new lines, but then they only sell 90%. So each year the amount of 'dead' inventory grows and grows." – Marketing Director for a major scrapbook company

3. "It happened to us and I've heard it happened to a couple of others, too: Garden Ridge placed big orders in January, then filed for bankruptcy in early February." – Major manufacturer

1. HIA Awards. Industry pioneer Aleene received the Lifetime Member Award ... Walt and Sarel Offinger of Offinger Management received a Special Recognition award for their service to the industry ... Cari Clement (Caron/Bond America) received a Special Recognition Award for her wonderful work helping the women of Rowanda establish a knitting cooperative. To learn more about the project – and to buy one of the beautiful scarves made sold by the cooperative, visit www.fiberandcraft.org ... Andrea Grossman (Mrs. Grossman's Paper Co.) received the President's Award for her industry leadership and charity work ... A Special Recognition Award went to the ACCI/HIA Merger Task Force – co-chairs Jim Bremer (Tall Mouse) and Jim Scatena (FloraCraft), and members Emma Gebo (Craft & Frames), Ron LaRosa (Delta), Mike McCooey (Plaid), and Mike Hartnett (Creative Leisure News).

2. HIA Innovations Awards. Ranger Industries, Best of Innovations and Scrapbooking /Stationery ... Callen Corp., Art Materials & Framing ... Flights of Fancy, Fabric/Quilting/Needlecraft ... Design Master, Florals/Seasonal/Home & Garden ... Walnut Hollow, General Crafts ... Riverwind, New Exhibitors.

3. Primedia Product Excellence Awards. Adhesives: Perfect Glue 1-2-3, Macco Adhesives/Liquid Nails ... Art Products: Chunky Layers Stamps, Duncan ... General Crafts: Faux Dichro, EZ Craft ... Craft Books: Polymer Clay Extravaganza, Heart in Hand Studios (North Light) ... Holiday Crafts: Holiday Design-a-Card Kits, PSX ... Home Dec: Sand Etch, Armour ... Kids’ Crafts: No Limits Kits, Xyron ... Needleart Books: Underground Railroad Sampler, Quilt in a Day ... Needlecrafts: Needlework Tote, ArtBin ... Painting Books: Handpainting Fabric, Opulent Textiles (Watson Guptill) ... Quilting/Sewing: Quilt Journal, Fairfield Processing ... Wearable Art: Stitch Effects Iron-on Transfer, Delta ... Wood Crafts: Simple Shapes, Provo.

Organizers/Storage: Cropper Hopper All Terrain Backpack, Leeco ... ... Papercrafts: Artsy Collage Collection, Hot Off The Press ... Stamping: Adirondack Pens, Ranger Industries ... Scrapbook Albums: Timeless Tapestry School Spirit Scrapbooks, Sew Be It ... Scrapbook Books: Making Fabulous Scrapbook Pages, Hot Off The Press ... Scrapbook Consumables/Paper: Legacy Collage Papers, Design Originals ... Scrapbook Consumables/Non-Paper: Self-Adhesive Zippers, Junkitz ... Scrapbook Tools: 50 Video Scrapbook Classes with Pizazz CD-ROM, Hot Off The Press. The Innovations Award went to Provo for its Qwikit Scrapbook System.

It's impossible to report on everything unveiled at the show. To learn as much as you can, read CLN's prior issues (still accessible by clicking on CLN Archives in the right-hand column); the New Exhibitor section; and the pre- and post-show issues of all the trade magazines. If you haven't enough about new products, here are a few more:

Memory/Cards. Shortcuts! offered five collections of self-adhesive sheets that enable consumers to make their own stickers, can be used in printers, etc. The list of collections includes Cotton, Denim, Metallic, Mulberry, and Vellum. Visit www.shortcutscrafts.com ... C-Thru Ruler introduced eight new Deja Views collections and products, including a line of unique 6"x6" swatch books and a new kit based on its Open Windows scrapbook matting system. Visit www.cthruruler.com/new ... Cardinal Brands, the parent company of Generations, unveiled the Generations Embellishment Tote, an embellishment-cardmaking storage system, and the Embellishment Poncho, a cylinder case that holds 12, two-sided containers for small embellishments. Visit www.GenerationsNow.com.

Tools. Toner Plastics introduced The Twister Tool to twist its CraftLace around its Fun Wire to make colorful wrapped wire, and Dip Sticks to create permanent CraftLace Spirals ... AMACO introduced a Bead Roller Tool, a Bead Making Tool Set, and a Pasta Machine for use with polymer clay.

Books. Two "must-read" books for scrapbook stores: Scrapbook U-Diversity by Sue DiFranco of Fun Facts Publishing and The Crop Corner: Event Ideas for Scrapbook Businesses, by Sandra and Laryssa Joseph of Reminders of Faith ... To see more on altered books, see Beth Cote's site at www.alteredbook.com.

Emailed from Ron Aptroot, former HIA board member and distributor:

"I talked to many Europeans during and after the show – very positive, due to the innovative products (especially in scrapbooking ) and the low dollar; there must have been more order writing from this area. Most buyers also visited the stores and were very impressed by the large Jo-Ann Etc. store and the Recollections store. That store – the atmosphere, the selection, and the very nice staff was a real eye-opener, absolute tops. Everybody had the same opinion: Michaels is helping their vendors to promote scrapbooking and how to merchandise it."

A number of toy manufacturers have decided to ship fewer hot-selling toys to Wal-Mart and offer exclusives to toy retailers, the Associated Press reported. The boycott is a reaction to last fall when Wal-Mart started selling popular toys as loss leaders, which eventually caused FAO Schwarz and KB Toys to declare bankruptcy, and Toys R Us to have a poor Christmas.

Vendors told the AP that Wal-Mart's discounting made toys unprofitable for toy retailers, who will order fewer products in the future, and the lower prices slashed margins and devalued brands. (Comment: This will be interesting to watch for potential lawsuits and whether or not Wal-Mart will issue a "never order again" edict to vendors participating in the boycott.)

The general consensus: the best TNNA show ever. All the numbers were up; 632 booths, up 11.8%; 838 buying companies, up 42%. There were 23 new exhibitors.

Yarn. Yarn vendors of all types (imported, hand-dyed, etc.) did very well, as expected, given the knitting trend that seems to have swept the country. One yarn vendor turned down a $10,000 order from a retailer, saying his stock was taken by existing customers. (He promised the retailer he'd contact him when he was better capable of handling the order without hurting his service to his existing customers.)

There were needlepoint shop owners adding yarns and a number of potential shop owners walking the show preparing to open stores, etc.

Needlepoint. Purses and totes were very strong. While smaller projects continue to dominate (cost less, quicker to finish, and are portable), larger projects are coming back – even expensive rugs, says Janet Perry of Napa Needlepoint. Numerous wallhangings and large pillows, too. Other accessories included sandals (canvas, with tops to be stitched), cases for glasses and cell phones, and belts. Charted needlepoint was strong as well.

The only disappointed buyer we know of wished there was more counted cross stitch, but that should be rectified with TNNA's joint show with INRG in Columbus in June.

Sharon of Sharon G summarized the feelings of many: "I have never felt so 'up' about our industry as I do now."

Just as the industry was leaving for Dallas for the HIA show, Garden Ridge filed for Chapter 11 bankruptcy and announced it had $70 million in DIP financing from Bank of America.

The company admitted real estate was a problem. "... based on an extensive analysis of its lease agreements, the company believes that it is paying significantly over-market rates at several

stores, which has affected the profitability of those stores and the overall liquidity of the company. Chapter 11 provides Garden Ridge with the vehicle to improve liquidity and reject uneconomic leases," a company press release said.

President/Chief Merchandise Officer Jack Lewis predicted Garden Ridge will emerge from bankruptcy in 90-120 days. The company will close three stores in the Houston area and one in Cincinnati. More closings may follow. The current store count is 44 in 13 states.

As one craft retailer said, "Our industry needs this like another hole in the head. Each time this happens we lose vendors, we see more vendors hold back on releasing new products, and we have suppliers become even more fearful over terms. Each move restricts the industry."

(Comment: Garden Ridge admits it goofed signing expensive leases. But what do you bet that it will be the vendors who pay for the mistake?)

During the HIA show, Craftrends Bill Gardner and I had a brief interview with the famous painter, Thomas Kinkade, who attended the show to present a painting to Barbara Bush and help with Rose Art's unveiling of a Kinkade line of paint-by-number kits.

During his presentation to Mrs. Bush and our interview, he spoke of the importance of art/creativity for kids. "Lots of things are pulling kids away from their creativity," he complained.

The former background painter for the movies said drawing helped him make it through a tough childhood and a broken home. "If a teacher was mean to me, I'd go home and draw a caricature of her and feel better." He began selling his sketches as a child and learned there could be a tie between art and commerce.

I asked him, since he was now a conglomerate and not just a painter, what constituted a good day for him. When he came home and told his family, "Boy, I had a great day today," what kinds of things would have happened that day to inspire him to say that?

"A good day for me is when I work in my studio and feel I've stretched as an artist."

An interesting revelation: Kinkade said when the first of his four children was born 16 years ago, he and his wife decided to make their home "media free." That's right – no television, and no radio, although now they have an Internet-connected computer for their kids' schoolwork.

The wife and mother of U.S. Presidents and a governor charmed a huge audience with her self-effacing wit and wisdom. "I am one of you," she said, and talked extensively about her love of needlepoint. "I've been a devoted fan since before many of you were born."

She took up needlepoint when her husband entered politics. She attended all of his speeches and used needlepoint to counter the boredom of hearing the same speech over and over.

Her most famous project was a 10' x 14' needlepoint rug which took 8 years to finish; her current project is a needlepoint backgammon board. "It relaxes me and helps me think clearly," she said.

She made only two comments about her son, the President. A) Once she mis-spoke, saying "sanctity" instead of "sanity." She realized her mistake and said, "Now you know where W gets it from." B) "I look at all the problems the President has and I think, is this the same boy I used to threaten with death if he didn't clean his room?"

The gist of her speech was seven elements to a quality life:

1. "We're never too old to learn. Learning is a life-long journey."

2. "Most of us go to our grave with our music still inside us. Don't let that happen to you."

3. "Never ask anyone 70 or older how they feel."

4. "We must remember what's truly important: faith, family, and friends – and tolerance. Learn to enjoy the differences in people."

5. "Don't forget to spend quality time with your children and grandchildren. They are our most important job."

6. "Quality time should include reading to your kids."

7. "Never in our history has it been more important to be a good neighbor. Community involvement is critical. All of us need to find a way to make a difference."

Miscellaneous Bush-isms: She called the Super Bowl halftime show "smutty." ... On the difference between genius and stupidity: "Genius has its limits." ... To relieve tension, she suggested "doing what the aspirin bottle says – take two and keep away from children."

Jo-Ann's. Same-store sales rose 10.3% and net sales increased 11.9% to $126.3 million.

The sales were helped by clearance sales of Christmas seasonal goods, which lowered gross margin rates. For the fourth quarter, net sales rose 5.1% to $552.6 million, and same-store sales increased 4.5%. Net sales for the fiscal year ended Jan. 31 increased 3.1% to $1.734 billion, and same-store sales rose 3.6%.

Based upon the fourth-quarter performance, the company raised its earnings guidance for the year to $1.84 - $1.86/share, up from the previous estimate of $1.70 - $1.80. Execs also announced the company has launched a cash tender offer to purchase all of its remaining outstanding 10 3/8% Senior Subordinated Notes due in 2007.

Michaels. Same-store sales rose 6.0%, and overall sales jumped 12.0% to $217.7 million. The company had expected a 3-5% same-store increase, Reuters reported. Total sales for the fourth quarter were $1.063 billion, up 9%, and same-store sales rose 4.0%. Total sales for year were $3.091 billion, up 8% – the first time an industry chain topped $3 billion. For the month, customer traffic increased 4%, the average ticket rose 3%, and custom frame deliveries fell 1%.

CEO Michael Rouleau said scrapbooking, yarn, framing, candles, and books contributed most to the same-store sales growth. The top regions were the Pacific, Southeast, and Northeast.

Rouleau also announced the completion of the first phase of the Perpetual Inventory/Automated Replenishment project. All Michaels stores are on the Perpetual Inventory system, which Rouleau says improved the company's in-stock level to 94%. Approximately 45% of basic replenishable SKU's are on Automated Replenishment.

Look for Michaels to relocate its Aaron Brothers headquarters to Dallas and replace its Lexington distribution center.

Wal-Mart. Same-store sales rose 5.3%, and overall sales rose 13.5% to $12.131 billion from $10.690 billion.

Hancock. Same-store sales declined 6.4% while overall sales slipped 6.8% to $32.7 million. For the fourth quarter, total sales were down 1.2% to $127.0 million, and same-store sales dipped 1.5%.

Other retailers: Dillard, +2.0% ... Federated, +5.5% ... Kohl's, +0.3% ... Mervyn's, -3.5% ... Nordstrom, +8.7% ... J. C. Penney, +6.4% ... Sears, +4.6% ... Pamida, +2.0% ... Duckwall-ALCO, -0.1% ... ShopKo, +3.2% ... Target, +5.8% ... Big Lots, -0.6% ... Dollar General, +3.1% ... Family Dollar, +3.0% ... Costco, +13.0% ... Sam's Club, +7.9%.

Economists are predicting retailers will get a boost in February and March as consumers begin to receive their tax refund checks, which should be larger due to last year's tax cuts.

Believe it or not, the world managed to carry on during HIA and TNNA.

1. To answer critics, President Bush defended his administration on Meet the Press and reversed his position on appointing a committee to investigate pre-war intelligence.

2. The New York Times reported China may finally be ready to revalue its currency, allowing the yuan to rise as much as 10% against the dollar by the end of 2004. (That would eventually mean the cost imports into the U.S. would rise.)

3. Kodak unveiled the Picture Maker Film Processing Station, an ATM-like, self-service machine that will develop film in less than five minutes, reports USA Today. The Station allows consumers to decide how many prints they want by choosing them on a menu screen. The cost to retailers is $35,000-$40,000. The drugstore chain CVS will begin testing the Station in a handful of stores next month, and then it will go national.

4. Labor rights groups accused Wal-Mart of turning a blind eye to horrific conditions at a Chinese factory that makes toys for the company, Retail Merchandiser reported.

I think the most interesting conversation I had at the HIA show was with Sandra Joseph, former head of Memories Expo/Memories Community and now President of Reminders of Faith, a religious-theme scrapbook company. Sandra is also marketing to the Christian bookstore industry and related how struck she was by the number of people in that industry who have told her they'd like to do a scrapbook, but don't know how to start.

Don't know how to start?!?!?

Sandra's point: We get so involved in the newest, latest, and greatest advances that we must be careful that we don't leave potential scrappers behind, bewildered.

WAL-MART. Business Week Online has a fascinating report on how the discounter is easing pressure on vendors to lower prices, and isn't quite so concerned about lowering prices. Improving earnings and same-store sales growth are the key reasons. Read the article at www.businessweek.com/magazine/content/04_07/b3870061.htm.

SCRAPBOOKING. Archiver's opened a store in Kansas City, and plans to open in Gurnee, IL, Omaha, and Atlanta this year. That will bring the total to 19 ... Michaels' ReCollections division now has its own website, www.recollectionsonline.com.

YARN. The two new members of the Warm Up America! Board of Directors are Jane Chesnutt, Editor-in-Chief of Woman's Day, and author Debbie Macomber. Macomber often weaves knitting themes into her books. Her latest is The Shop on Blossom Street, which revolves around a yarn shop.

DONATION. Teters, the major floral company that's a division of Decorative Concepts, donated $100,000 to build a new Wellness & Sports Center at Southwest Baptist U. SBU has graduated many of Teters' employees.

FRANK'S. The revolving door at the CEO's office continues. Former Michaels exec Bruce Dale is out after about 9 months.

SUMMER. Booth reservations for the ACCI show are up substantially over this time a year ago. Once the ACCI/HIA merger is complete, it will become the CHA Summer Show.

STOCK. Michaels' board approved the repurchase of up to 2.5 million additional shares of its common stock. Since June 1998, it has repurchased approximately 15.9 million shares and currently has approximately 66.6 million shares outstanding. Standard & Poor's said the repurchase shouldn't effect on Michaels' credit rating because it will be funded with cash flow.

SEWING. The Feb. issue of Home Business magazine included a feature, "15 Personalized Service Businesses That Will Boom In 2004," that cited sewing as one the 15. The author listed custom clothing and alterations as a developing business opportunity.

ACQUISITION. Interweave Press acquired Fiberarts magazine from Sterling Publishing. The magazine moves to Interweave’s offices in Loveland, CO, but the editor, Sunita Patterson, continues. Marilyn Murphy is the new publisher.

MEDIA. The new quarterly Memories Community magazine is seeking project ideas/instructions and new product releases for publication consideration. Scrapbook, stamp, and paper products/projects are sought, plus "fringe" products/projects that reach beyond the traditional to utilize photos and memorabilia in home dec, fashion accessories, etc. Feb. 27 is the deadline for the premiere issue. Email inquiries to Editor Michelle Howard at mhoward@offinger.com or call 404-429-6973.

YARN. Berroco has launched Scarf Central on its website. It features 19 potential combinations of Berroco yarns in five colorways each, for 95 potential scarf combos. Instructions, too. Visit www.berroco.com/scarf_central.html.

MEDIA. Watch for Donna Dewberry's new PBS series, Starter Strokes, designed to interest kids in painting. It's produced by Cutters Productions; for info, email Bryan Eaker at  beaker@cuttersproductions.com or 704-522-9900, ext.105.

SHOWS. Mark Bennett of Offinger Management was recently designated as a Certified Association Executive (CAE) with the American Society of Association Executives.

SDP. The Society of Decorative Painters annual Conference is May 24-29 in Phoenix. To see each of the classes and to register online, visit www.decorativepainters.org by Mar. 26. For info, call Marlene Marcotte at 316-269-9300, ext. 114 or email marlene@decorativepainters.org.

CLN will profile one company per issue, which will remain online for at least a year. A Profile is a perfect way for a new company to let itself be known to the industry, or for an established company to enhance its reputation by showing the industry its history, diversity of products, personnel, etc. For more information on how your company can be profiled, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.

A. C. Moore (ACMR). Last*: 22.60 ... Change**: +0.13
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Ever wonder where the legal precedent of holding an employer liable for the actions of his employees came from? That was not the case until the mid-1800's when a conductor on a train between Springfield and Bloomington, IL became angry with a passenger and threw him off the train. Unfortunately, the train was moving at the time and the passenger broke his leg.

The passenger hired a lawyer and sued the conductor. But the lawyer argued that the railroad was liable, too. The court agreed and the decision was upheld upon appeal.

The lawyer's name? Abraham Lincoln.

So the next time you're sued because of something your employee did, you can thank Honest Abe. (And our thanks to Lincoln scholar Paul Beaver, Professor Emeritus at Lincoln College for giving us this lesson.)

1. For more information on how your business can be the subject of a "Business Profile", call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.

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