The following is an account of the life of Cloid H. Smith, an early resident of Odebolt, where he founded the New State Telephone Company in 1899. He is probably better known for having founded, in 1914, the America Pop Corn Company of which he became president. This biography was written by his grandson, Chesley C. Smith of Sioux City, and was sent to Jack Hogue.
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Cloid H. Smith, founder and past president of the American Pop Corn Company, was born August 14, 1871, in Eschcall, Perry County, Pennsylvania, and died October 11, 1939 in Sioux City, Iowa.
A county school in northwest Iowa is where C.H. Smith received the first few months of his education. He continued his education in the public school at Odebolt, Iowa. Soon after he arrived there he began selling papers after school to earn money that was vitally necessary to keep the family going. In the summer he peddled vegetables.
While he was completing his education at the Odebolt High School, he accepted a position in a small drug store working part-time and supplementing his school work with a correspondence course in pharmacy. He graduated in the Spring of 1889 at the age of 17. He was awarded a full scholarship to the State University of Michigan located at Ann Arbor for having the highest honors of his class, but on account of finances he was unable to use this scholarship. His dream since early boyhood was to become a doctor, but the lack of finances blocked this ambition. His earnings were needed to educate the other children and help support the family, so he gave up his dream and turned his energies to opportunities at hand.
In the summer of 1890, C.H. Smith became the youngest registered druggist in the state of Iowa. As a direct result the state officials, amazed that anyone could pass the requirements at that age, changed the law so that thereafter no one could secure a gold seal certificate as a registered druggist before he was 21.
In the fall of 1891, when he was 20 years old, on a partnership basis with a boyhood friend, he went into the drug business on borrowed capital. They entered the drug store under the name of Smith & Bieser. As C.H. did not have any capital, his partner's father endorsed their note for $4000 which was the financial backing necessary to start the business. Incidentally, the endorser was never required to pay the note.
After about 2 years, C.H. and his partner conceived the idea of manufacturing a line of veterinary remedies. A close partnership was organized at that time with C.H., his partner, and Dr. Kirk, a veterinarian. They called the company the National Veterinary Company, and manufactured their products, which consisted chiefly of stock foods, liniments and ointment for livestock in the basement of their drug store. They advertised and placed the remedies on the market by starting out with a dog and pony show, but after six weeks trial, it proved to be unprofitable. They then started to distribute their products by district agents, filling the remedies from a wagon in which they traveled from farm house to farm house. After about 1 year venture in this, C.H. decided he didn't want any further interest in the veterinary medicine business, and sold his interest.
While C.H. was working part time in a drug store and going to high school, the registered pharmacist in the same store by the name of James Hassell, perfected a formula for hand lotion, which was Huskers Lotion. When C.H. started in the drug business for himself, he had this formula and during the time he was in the drug business he manufactured this under the name of The Union Specialty Company and distributed Huskers Lotion throughout the corn producing states.
In 1901, the first oil was discovered in the South. There was bought in June of that year, what was known as Lucas Gusher and Spindle Top Heights, Beaumont, Texas. This oil fever was a good bit the same as a gold rush. C.H., together with a couple of his friends, went to Beaumont and started in the oil business under the name of Sac Oil and Pipe Line Company. They purchased land there and had several wells drilled. After six months this proved to be unprofitable due to the fact that while they struck oil and had a big income for several months, the wells started to pump salt water and all profits, which had been made were sunk in the venture together with original capital.
In the fall of 1898, C.H. was threatened with Tuberculosis. His doctor advised him to leave the drug business and get into a business which would take him outside more of the time. Soon after this, one day a friend, William Drury of Early, Iowa suggested to C.H. why not start in the telephone business. C.H.'s reply was, "What do I know about the telephone business? I don't know anything about it." After some thought and talking with a few of his friends in the town, he made application to the City Council of Odebolt for a franchise for construction of a telephone exchange in Odebolt. March 30, 1899, the voters granted the franchise and the local exchange started service on June 5, 1899, which had about 70 telephones connected with the local office. The switch board was located in the rear of C.H.'s Drug Store on a balcony. In 1901, the central offices were moved upstairs. From this small beginning in 1899, telephone lines were erected throughout the immediate towns and counties adjacent to Odebolt. In 1900, the Odebolt Telephone Company was consolidated with the Jefferson Telephone Company and was known as the New State Telephone and Telegraph Company. In 1905 another consolidation was made and several independent telephone companies within a 100 mile radius of Sioux City, Iowa, known as the New State Company, were brought together. In September 1905, the company's general office was moved from Odebolt to Sioux City and continued to operate as an independent company until 1912 when the entire system was sold to Bell Telephone System.
At the time of the sale, the New State Telephone Company was considered one of the largest independent telephone exchanges in fours states, Iowa, Nebraska, South Dakota, and Minnesota, and had thousands of miles of long distant lines extending in every direction from Sioux City. C.H. was general manager of the company from its inception up until the time of the sale to the Bell Telephone Company and still held the same position with the Bell Company until 1914 when he resigned to enter into the Pop Corn business with his son, Howard. C.H. knew he would be more successful working for himself than working for someone else. He retained control of his drug store until 1903, at which time it was sold to another firm.
C.H. was often asked how he ever conceived the idea of starting the Pop Corn Business. He replied that back in his boyhood days while living at Odebolt, Iowa, a man by the name of George G. Colton started to raise pop corn on a farm located north of Odebolt. George G. Colton in 1885 planted 155 acres of pop corn and from that time Odebolt, Iowa has been considered the pop corn center of the world. Practically every farmer within a radius of 10 to 15 miles of Odebolt raised a little pop corn each year, and gradually production was increased as time went on.
When selling his interest in the telephone company, C.H. invested part of the proceeds in a quarter section of land located north of Odebolt, Iowa from what was originally known as the Cook Ranch. In 1872 this land had been purchase as raw prairie land at $5.00 per acre.
In 1913, his tenant on the farm raised some pop corn and one day late in the fall the tenant sold the pop corn to a local buyer in Odebolt and C.H. found out that the price paid for the pop corn was not the same for similar pop corn. The same day another party delivered some pop corn and he asked the buyer why the little difference. The buyer said if you don't like my way of doing business, you had better get busy and go into the popcorn business for yourself. This is the reason C.H. started in the popcorn business. He said he was told to go into it so he decided he would and the results are history. Sales of American Pop Corn Company gradually increased as time went on from April 1914, which was the time of its inception.
[1882] Bicycles were then in vogue and a factory was situated in the basement of the Mattes block and run by Cloid Smith. This enterprise was abandoned when Mr. Smith built the telephone exchange in Odebolt.
Cloid H. Smith has sold his drug business in the Mattes block to J. A. Engstrom and O. E. Huglin, of Dayton, who will take possession about September 5. Mr. Engstrom will come to Odebolt at once and take charge of the business but Mr. Huglin does not expect to come here with his family to reside permanently until spring. Mr. C. J. Shea, who has had charge of the business since Mr. Smith took the management of the New State Telephone and Telegraph company, will continue in the employ of the new firm. Mr. Smith has been engaged in the drug business in Odebolt since 1891, when he and John H. Bieser established the business which has just been sold, under the firm name of Smith & Bieser. Mr. Bieser sold his interest to Mr. Smith in 1894. Mr. Smith will continue to reside in Odebolt and will devote his attention to looking after his telephone and oil interests.
Cloid H. Smith and Henry W. Petersmeyer of this place, together with parties at Jefferson interested in the New State Telephone and Telegraph company, have purchased the entire system of the Sioux Valley Telephone company with headquarters at Cherokee. The purchase includes the exchanges owned by the company at Cherokee and Correctionville and a large toll line mileage. They will immediately incorporate as the Cherokee County Telephone company, with a capital of $100,000 having headquarters at Cherokee. Ira Conger of Cherokee will be president and manager of the new company and Cloid H. Smith, secretary. They expect to spend considerable money during the coming summer on repairs and extensions.
Also see obituaries on Cloid Smith, his wife and parents
Jolly Time Popcorn, which is still run by Cloid Smith's grandsons & great-grandsons.
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