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The Fleischmann distribution system is not the "invention" of any one man. It was developed along with the growth of the company. No transportation problem existed in 1868 when Charles and Maximilian Fleischmann, immigrants from Austria-Hungary, and James Gaff of Cincinnati, founded Gaff, Fleischmann & Co. at Riverside, Ohio. Their first great forward step was made in 1876 when they exhibited a Model Vienna Bakery at the Centennial Exposition in Philadelphia. From the fame of this exhibit came an increased demand for Fleischmann's yeast. Soon there was a Fleischmann plant on Long Island, then another at Peekskill, N. Y, Guiding spirit of the early Fleischmann company was Charles Fleischmann, who died in 1897. It was under the leadership (1897-1925) of the late Julius Fleischmann that the company went through its major expansion period. Following his death, his brother, Major Max C. Fleischmann, stepped to the front.
Fleischmann Co. makes nearly all the compressed yeast sold in the U. S. Its eleven factories have a capacity of some 500.000 lbs. of yeast per day. In 1928, net sales were $64,004,366; net income $19,820,668. Fleischmann Co. is also one of the world's largest vinegar producers. ships in its own tank cars 15,000,000 gals. of vinegar per annum. The company has consistently promoted Baker's Bread v. Home Made Bread; cheerfully notes that in 1919, 60% of U. S. bread was sold by bakers, in 1928 the baker's share had risen to 94%.
A recent new yeast market, "discovered"' in 1919, has been the health-seeking public. Yeast eaten raw is a laxative, and as such is widely advertised as a cure-all for indigestion, bad breath, skin disorders.
*Royal Baking Powder already owned two-thirds of the capital stock of E. W. Gillett, Ltd., which is largest Canadian baking-powder maker.