Guide to the Records of the G. C. Murphy Company, 1925-1985

Repository
Heinz History Center
Title
Records of the G. C. Murphy Company
Creator
G. C .Murphy Company
Collection Number
MSS#240
Extent
1 cubic feet (2 boxes)
Date
1925-1985
Abstract
George Clinton Murphy founded his chain of discount variety stores in McKeesport, PA, in 1906, and sold it to John S. Mack and Walter C. Shaw, co-founders of the G. C. Murphy Company 5c-10c-25c stores. The company grew from twelve stores in 1911 to 448 stores nationwide in 1976. The records contain annual reports, correspondence, newsletters, merger records, clippings, architectural drawings, and other sundry materials.
Language
The material in this collection is in English.
Author
This guide to the collection was originally prepared by Karen Hockenson on July 17, 1996. Revisions occurred to the finding aid as a part of the encoding process in Spring, 2000.
Sponsor
This finding aid has been encoded as a part of the Historic Pittsburgh project a joint effort of the University of Pittsburgh and the Historical Society of Western Pennsylvania. Funding for this portion of the project has been donated by the Hillman Foundation.
Publisher
Heinz History Center
Address
1212 Smallman St.
Pittsburgh, Pennsylvania 15222
library@heinzhistorycenter.org
URL: https://www.heinzhistorycenter.org

History of G. C. Murphy Company

In 1906, two years after selling his first chain of five and dime stores to F. W. Woolworth Co., George Clinton Murphy opened his first discount variety store in McKeesport, Pennsylvania, with five employees. Within five years, he had a chain of ten stores in southwestern Pennsylvania, which he sold to John S. Mack and Walter C. Shaw, co-founders of the G. C. Murphy Company 5c-10c-25c stores. The company experienced steady growth thereafter through the purchase of independent stores and the acquisition of several multi-unit variety chains across the United States.

Growth can also be attributed to smart expansion strategies and concern for customer needs. For instance, the acquisition of adjacent properties and addition of second floor and basement sales rooms resulted in Murphy becoming the dominant store in many towns. Emphasis was also placed on tailoring merchandise to fit each local market.

In 1970, Murphy again demonstrated its attention to public needs with the opening of the first Murphy's Mart discount store in Bethel Park, Pennsylvania. Murphy's Marts were single-floor operations located in high-traffic suburban sites, often in shopping centers. All provided ample parking and effort was made to provide total shopping service in one location with the inclusion of a major supermarket, and usually a bank, at all free-standing Mart locations.

Throughout its history, Murphy Company has endeavored to keep its stores upgraded with a regular renovation and refurbishing program, which began in the 1920s. Murphy also expanded its market across the United States with the acquisition of several other variety store chains. In 1951, acquisition of the 71-unit group of Morris stores, which were converted to Murphy operations, expanded the chain into the Midwest. Expansion into the South and Southwest began in 1959 with the acquisition of 92 Morgan & Lindsey stores. Further penetration into Texas was made in the 1960s through the purchase of several multi-store companies in San Antonio, Corpus Christi and the Rio Grande Valley. Other store chains owned and operated by G. C. Murphy Company include Bargain World, which sold discounted closeouts, seconds and merchandise bought at bankruptcies; Terry and Ferris, and Bruners, junior department stores; and Cobbs, specialty apparel stores.

G. C. Murphy Company experienced steady growth, both in sales volume and number of stores, throughout its long history. The company went from twelve stores with $251,699 in sales in 1911, to 448 stores with $803,699,000 in sales in 1980. While peak number of stores was 545 in 1976, the company's emphasis of profitability led to its closing of unprofitable stores and the restructuring, improving, and building of new stores based on changes in consumer needs and socio-economic patterns. Even the economically devastating years of the Great Depression saw not only moderate drops in net earnings for 1930 and 1932, but also steady increases in sales and in number of stores.

Headquarters for G. C. Murphy Company was in McKeesport, Pennsylvania, location of the first Murphy store. In 1961, Murphy demonstrated its progressive business outlook with the installation of modern computer equipment, which handled everything from systematic reordering of merchandise and inventory control, to employee records and accounts payable. Murphy's 17,000 square foot Computer Center opened in McKeesport in 1976.

John S. Mack, one of the two co-founders of G. C. Murphy Company, continued as the company's President and Chairman of the Board until his death in 1940. Walter C. Shaw, the other co-founder and Vice President then became President, and Edgar M. Mack, previously treasurer, became Chairman of the Board. Other prominent Murphy executives include James S. Mack, Walter C. Shaw, Jr., Edgar L. Paxton, William M. Anderson, Kenneth T. Paxton, Eugene A. Grissinger, Paul L. Sample, William T. Withers, Judson M. Ellis, Jr., and the company's last executive officers, Thomas F. Hudak and Charles H. Lytle.

Murphy Company has always been noted for its generous treatment of employees. For many years the company's Veterans Club provided recognition and a social forum for all employees with at least fifteen years of service. On an employee's 25th anniversary with the company, a party was held with the honoree's receiving flowers, stock, and other special gifts. Every effort was made to treat employees with respect and as a member of a large extended family. In return, employees took pride in their work and at times worked together for special projects, such as the campaign in 1942 to raise sufficient funds to give twelve mobile motorized units to the Red Cross for America's War effort. In the 1960s, Murphy sponsored a race car, the "Murphy Special", which competed in professional races, including the Indianapolis 500, with Roger McCluskey and Bob Wente as drivers.

In April, 1985, G. C. Murphy Company was acquired by Ames, a discount department store chain based in Connecticut.

Scope and Content Notes

The G. C. Murphy Company records contain annual reports, correspondence, newsletters, merger records, clippings, architectural drawings, and other sundry materials

From the annual reports, inclusive from 1925 to 1985, except for the year 1948 and four editions in the 1960s, one can get a complete picture of the growth and development of the company, right up to its acquisition by Ames in 1985. The first few years' reports contain only financial information. Beginning in 1937, reports also include a message from the company President, and by 1947 the Annual Report began to look like modern versions of corporate reports, with glossy pages and photographs. The correspondence folder contains a memo written to managers that discusses in great detail the company's sales philosophy.

The history, merger records, publications, clippings, and other miscellaneous records fill in the balance of the G. C. Murphy story, including the early history and the company's many non-financial activities. For example, the Service Sound-Off publications exemplify its "Murphy Family" attitude towards its workers through newsletters sent to over 1,000 Murphy employees in the military during World War II. They also illustrate the company's patriotism and the effects of rationing during the war. Additional "family" attitude can be seen through the Veterans Club booklet, which documents one of the annual Club events that celebrate Murphy "Veterans," employees with 15 or more years of service with the company. Information about the G.C. Murphy Special Indianapolis 500 race car can be found in the Murphy Racing News.

For Murphy historical information, Chain Store Age magazine contains an in-depth look at the Murphy chain store of 1967 and covers such topics as merchandising, advertising, personnel, subsidiaries, and research. The 75th Anniversary program materials include much of the company's history, as do additional materials found in the Miscellaneous folder. The history of Murphy mergers in illustrated from two perspectives, with the Morgan & Lindsey acquisition by Murphy in 1959, and with the merger of Murphy with Ames in 1985. Additional acquisition history can be found in the 1956 Fiftieth Anniversary Annual Report.

Other miscellaneous materials include architectural drawings of two distribution warehouses (1966), operating organizational charts (1979 and 1981), a complete list of all Murphy Presidents and Chairmen of the Board, and a Murphy Company paperweight from the 75th Anniversary celebration in 1981.

For additional information, see the Murphy Photographs collection, MSP#240, which includes photos of many Murphy stores and grand openings, employee recognition and personnel, and community service events such as the 1942 donation of several mobile units to the Red Cross for America's war efforts.

Arrangement

The G. C. Murphy Company records are housed in two archival boxes and are arranged alphabetically by folder title.

Conditions Governing Access

This collection is open for research.

Immediate Source of Acquisition

This material came in one accession, in 1994.

Acc# 1994.0098 -- Gift of Edwin W. Davis.

Preferred Citation

Records of the G. C. Murphy Company, 1925-1985, MSS# 240, Historical Society of Western Pennsylvania

Processing Information

This collection was processed by Karen Hockenson on July 17, 1996.

Revision and rearrangement for the encoded version of the finding aid provided by Martha L. Berg on January 18, 2000.

Conditions Governing Use

Property rights reside with the Historical Society of Western Pennsylvania. Literary rights are retained by the creators of the records and their heirs. For permissions to reproduce or publish, please contact the curator of the Archives.

Subjects

    Corporate Names

    • G.C. Murphy Company.

    Personal Names

    • Hudak, Thomas F.
    • Lytle, Charles H.
    • Mack, John Sephus, -- d. 1940.
    • Shaw, Walter C., -- 1881-

    Geographic Names

    • United States -- History -- World War, 1939-1945.

    Other Subjects

    • Chain stores -- Pennsylvania -- Pittsburgh.
    • Stores, Retail -- Pennsylvania -- McKeesport.
    • Stores, Retail -- United States.

Container List

Annual Meetings, 1953-1983
Containers
Box 1, Folder 1
Biography and History
Containers
Box 2, Folder 4
Correspondence -- Memo -- "Philosophy of Community Service", 1934
Containers
Box 2, Folder 5
Organizational Charts, 1979-1981
Containers
Box 2, Folder 8
Seventy-Fifth Anniversary, 1981
Containers
Box 2, Folder 15
Stationery/Letterhead, n.d.
Containers
Box 2, Folder 16
Warehouse Architectural Drawings, 1966
Containers
Box 2, Folder 17