Contributed to The Leader by Mike McInnis
Beavers Dental Products grew from a small industrial operation making tooth brushes and other sanitary brushes to become Morrisburg’s largest employer, producing dental burs sold around the world.
As one dedicated to the need to preserve a record of local history I am putting in print the little bit I know about Mr. George Beavers and his company. Most of what I will relate was told to me by George Beavers in the autumn of 1973.
The circumstance under which I learned about the company is this. In the early 1970’s Mr Beavers knew he was seriously ill. With this in mind he first discussed sale of the company with his son Patrick and then with me.
George was aware that there were a number of American corporations interested in acquiring his company. He was concerned that some of these would acquire the patents, machinery and key employees and relocate the business. He did not want this to happen and chose to sell the company to a purchaser whom he trusted would continue the business in the Morrisburg area.
American Hospital Supply Corporation was a large American company specializing in supplying hospital equipment throughout the world. Its Midwest Division concentrated on dental equipment. Mr. Wiley Caldwell, the head of Midwest had from time to time asked Mr. Beavers if his company was for sale, and Mr. Beavers turned to him at the time of his illness.
In the months of November and December 1973 I made several trips with Mr. Beavers to Chicago where the head office of American Hospital Supply was located, and later as the sale was being finalized in January 1974 we made several more. During our flights to and from Chicago George reminisced about his first journey to Morrisburg and the events that followed.
Though retired as a solicitor I am still bound to keep in confidence the details of the sale. I can however try to recount the history of the company and the events which occurred at the time of the sale since these facts in no way relate to matters that must remain confidential. I do so also feeling that George’s story needs to be told.
George grew up near Exeter in Western Ontario. He attended local schools and in the early 1930’s graduated in business and finance from Victoria College, part of the University of Toronto. His ambition was to own his own business, but this was the middle of the depression and he got a job in sales with one of the chewing gum companies. His work put him in contact with drug stores. He kept looking around for business opportunities and he heard that a small business in Morrisburg, the Dominion Brush Company was for sale. George followed the rumour, visited Morrisburg, and eventually purchased the business from Mr. George Challies, who was then a Provincial Member of the Ontario Legislature.
The business was located on the east side of Church Street (now Sir James Morris Drive) near the present intersection of that street with Cruickshank Way. There were only a few employees. I recall seeing one of the tooth brushes they made. It had a dark handle, made of wood and very dark bristles. George mentioned a small patent medicine company that was also part of the business, G.S. Briggs and Company. I am not clear if he acquired that from Mr. Challies or if he had bought it before he bought the brush business.
George immediately went to work trying to build up sales, and gradually succeeded.
George was a friendly man, optimistic and well spoken, He promoted his business with enthusiasm and continually improved his product. By the time the Second World War broke out the company was doing quite well. He knew the Federal Government would need brushes for its volunteer army so he arranged to meet with the Federal Ministry of Supply to promote his product. He was successful, and in the course of meeting with government officials someone mentioned the shortage of dental burs. Apparently at that time nearly all of the dental burs were made in Germany, by companies specializing in surgical steel. The burs then were used in old fashioned slow speed drills, very different from those used today. George was interested in what he could learn about this product and mentioned it to several people.
Eventually someone told him that someone had once tried to manufacture burs in Ogdensburg New York. George visited there several times inquiring about bur manufacturing and eventually a local dentist remembered the details vaguely. After further investigation George learned that sometime after the First World War someone had set up a small business making dental burs but had failed. George was referred to a local scrap dealer who remembered buying the equipment when the enterprise failed and he still had most of it. George struck up a deal and brought the equipment to Morrisburg. It was old, rusty and in terrible shape but eventually by cleaning, repairing and improvising they succeeded in making burs and started to supply the Canadian Army. George admitted the burs were pretty rough at first and he pitied the soldiers who suffered through their use. As time went on the quality improved and of course there was little competition so the business grew.
At the end of the war, with peace restored the allies undertook to rebuild those European countries whose economies were destroyed. As part of this effort the Canadian government called on Canadian businessmen to volunteer their services. George did just that. While he was in Germany he made inquiries about those who manufactured surgical steel. Every response George got directed him to Rudolf Funke and finally George found him. Mr. Funke had owned one of the largest businesses involved in manufacturing surgical steel and surgical steel medical equipment before the First World War. By the time that war was over he had lost most of his business. He gradually rebuilt the business and when the Second World War started he was once again the leader in the field of surgical steel and surgical steel medical equipment. Once again by the time the Second World War was over he had lost it all.
George, ever the salesman promoted the prospect of life in Canada and offered to sponsor Mr. Funke, his wife and three children for immigration and he promised Mr. Funke employment. The Funke family moved to Morrisburg and Mr. Funke immediately brought his knowledge and skill to bur manufacturing at the Beavers plant. Later Mr. Funke encouraged several of his key workers in Germany to join him in Morrisburg.
In the years following the Second World War high speed dental drills replaced the old slow speed drills and they required a different type of dental bur. George’s business skills and Mr. Funke’s knowledge and skill in surgical skill, combined to make the Beavers jet bur one of the leading products throughout the world.
As the business expanded the company outgrew its small site on Church Street and a new building was erected on Highway Number 2 at the eastern outskirts of the Village. In the 1950’s the factory was moved , as a result of the St. Lawrence Seaway project to a new location at the junction of Laurier Avenue and Highway Number 2. That building has been expanded several times since the original construction.
George commenced traveling the globe to promote the product. He relied heavily on his long time employee Hugh Jarvis to oversee the production and Marguerite Clarke to manage the office. Mr Funke continued to work with the company into the early 1960’s.
In 1964 George sold the toothbrush operation to his son Patrick, and that businesses continued very successfully under Patrick’s leadership under the brand name Odonto. Patrick sold Odonto in 1975.
George told me that at the time he sold Beavers Dental Products Limited his product was distributed to twenty eight countries around the globe and was one of the largest manufacturers of dental burs in the world.
One interesting part of the sale of Beavers Dental Products by George Beavers can be recounted, it is not subject to confidentiality since it is a matter of public record, though not well known.
To understand it requires a brief explanation of national politics in the early 1970’s. Prime Minister Pierre Trudeau and his liberal party had held an election in 1972. The Liberals won but failed to realize a majority so Trudeau was dependent on support from the NDP. There was at that time great concern about American companies buying control of Canadian companies. Often when this occurred the business and jobs were moved south of the border. At the very time George Beavers was negotiating the sale of his business, MacDonald Tobacco a long established and well known company was acquired by a large American conglomerate. MacDonald Tobacco had for many years sponsored the MacDonald Brier mens curling championship and was hence a household name. The NDP threatened to withdraw support of the Liberals unless the government took steps to curtail American acquisitions of Canadian businesses.
Mr. Trudeau announced that legislation would be introduced immediately prohibiting sales of Canadian companies to foreign countries without prior approval from the government. It was clear that all sales would be scrutinized to ensure that there would be no loss of business and employment in Canada. The announcement threw our negotiations into great uncertainty. George and I immediately contacted our local member of parliament Lucien Lamoureux. Mr Lamoureux was at that time Speaker of the House of Commons and this gave him much more political clout than the average member of parliament. After a short period we were assured that a government agency was contemplated, and that approval of sales to foreign owners would be granted if there was sufficient evidence that the business would continue to operate in Canada. The legislation was quickly introduced and enacted into law as The Foreign Investment Review Act (FIRA) A Chairman or Registrar was appointed to preside over administration of the legislation. I was not aware if any regulations were formally drawn up for processing applications but nevertheless through Mr. Lamoureux we contacted the newly appointed Registrar and provided full information about the urgency of the sale and assurances that the business would remain in Canada. It was obvious that the sale could not be completed by the closing date viz. 31 December 1973.
When the Canadian Government announced its intention to examine all sales of Canadian companies George and I immediately made Wiley Caldwell aware of the problem and Mr. Caldwell authorized me to act on behalf of American Hospital Supply Company to obtain approval under the proposed legislation. He made this decision based on my proximity to Ottawa and his awareness that George and I had the full support of our local member of parliament.
Both parties modified the agreement to provide for an escrow closing on December 31st. This meant that all steps would be taken to complete the closing, which included presentation of all closing documents, transfer of shares, resignations, payment etc, but all documents, funds etc would be held in limbo until FIRA approval was granted. If FIRA approval was not granted then the closing was negated and the status quo as it existed prior to December 31 st would be restored and there was no sale. A time limit for the escrow period which was 60 or 90 days was agreed to. The closing went ahead but in the meantime George and I remained in contact with the Registrar of FIRA and became confident that a certificate would be forthcoming. Mr Lamoureux called in mid January 1974 and requested that George and I come to his Chambers in Parliament but did not give a reason. I anticipated that we would receive FIRA approval. We agreed to attend the following day.
George and I went to Ottawa; Mr Lamoureux’s executive assistant escorted me to the newly established office of FIRA. The only FIRA employee the Registrar , a very nice gentleman ( I think his name was Ballantyne) greeted me, he congratulated us on our submissions and said he was presenting the first certificate of approval granted by FIRA and thanked me for attending. George was exuberant and I guess I was too.
In 1995 the Canadian Journal of Science,Technology and Medicine written by Larry McNally published a very detailed account of the history of the Beavers company, the contribution of Mr. Funke and details of the high speed carbide burs. This article is available on the web as Number 48, Volume 19 1995 The article is entitled “Dreams of Precision Manufacturing, Beavers Dental of Morrisburg” – Scientia Canadensis. (https://www.erudit.org/en/journals/scientia/1995-v19-scientia3120/800395ar/)
It is ironic that the Canadian Government took steps to protect Canadian businesses and jobs in 1973 but ten or more years later a new government did a complete about face and entered into the free trade agreement with the U.S. and this was later broadened to include Mexico. We have now seen three local manufacturing operations close and move to areas where wages and benefits are much lower. North American free trade may be rewarding to some parts of Canada but it has been detrimental to our local economy.
I believe that American Hospital Supply Corporation continued in business until around 1985 when it was amalgamated with another corporation.
I am certain that George Beavers would be very sad it he were alive today He took every step he could to protect his workers and be certain the jobs he created through his foresight and enterprise remained in the South Dundas area.