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Future archivists will duly note that very early on the morning of June 18, 1976, the

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sun rose as usual and cast its slanting rays westward over the natural and man-made details

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of Anzio, Italy.

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Approximately 24 hours later, as it started to set out over the Pacific horizon, the sun's

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rays slanted eastward over the natural and man-made details of our long western coastline,

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thereby completing its 18,263rd consecutive passage over, among much else, the well-dispersed

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facilities of Container Corporation of America.

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On that particular day, those facilities numbered 150 and were located in seven countries in

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two hemispheres.

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The point of this record is that this precise succession of passages by the sun added up to

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our first 50 years as a corporate entity.

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We were not always so widely dispersed.

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Back in 1926, with home base in Chicago and our easternmost point in Philadelphia,

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just two time zones could well accommodate the 14 mills and plants that made up our

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original corporate package, so much for geographic scale.

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Among the changes and effects of change that the sun illuminated in our first half century

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was America's expanding urbanization, one of the results of which was to increase the

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logistical gap between producer and consumer.

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In consequence, the produce of our fields and gardens, no less than the output of our

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mills and factories, had to be transported farther, faster, and to more people than ever

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before.

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This process of change was already underway in 1926, a time when America's love affair

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with the automobile was well along, but a time also when farm wagons were still sold

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through the catalogs of Montgomery Ward.

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The consuming and somewhat brash ambition of our young corporate forebears was to make

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board packaging the link that would more efficiently close the widening gap between producers and

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consumers.

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Their goal was to concentrate paperboard's advantages on making packaging not only more

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responsive to changes already in progress, but also capable of anticipating the problems

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and opportunities that continuing distribution developments would bring.

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They assumed that their biggest problem would be to convince shippers that paperboard packaging

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could be entrusted with the distribution and related tasks, then being performed predominantly

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by wooden containers.

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And that did indeed take some doing, especially in the early days.

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But with the help of other industry pioneers, containers first generation proceeded to meet

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the day-to-day challenges of proving that paperboard was a more versatile, less costly

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packaging material than wood could ever be, and that paperboard's expanding application

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would make a broader range of products available to consumers than ever before.

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Given these advantages, it seems natural enough, in retrospect, that paperboard would be the

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packaging material of the future.

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So much for mismatched competitors.

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All kinds of technology, including paperboard technology, have come a long way in our first

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half century, but paperboard is as contemporary today as the computer.

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In fact, the computer helped shape the precision and variety of paperboard's performance-intensive

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capabilities.

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Ask us to define paperboard, and we would say that paperboard is paper with muscle,

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incorporating all the inherent communication capacities of paper, so long and so well regarded

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for these properties, with the addition of strength and resistance qualities required

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for versatile, practical, economical product packaging and distribution.

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Paperboard is also light in weight, variable in structure, and is limitless in innovative

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application as creative imagination is limitless.

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There is an additional important advantage.

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Paper and paperboard share a regenerative process, unique in contemporary technology,

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a process that reduces a natural solid, wood, to its tiny basic fibrous components, which

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in a 98% water solution are then reformed during a very fast trip through the paperboard

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machine into an entirely different solid state, embodying a vast new range of capabilities.

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Fortunately, in view of increasing ecological and related concerns, there is a valuable

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extra dimension to this regenerative capability.

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After virtually any of its numerous application options, paper and paperboard can be recycled,

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reduced again to their fibrous components, remixed with water and other chemicals, and

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remade into another generation of useful material, conserving and expanding valuable natural

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growth.

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So the solid to liquid to solid cycle goes on and on, with only minimal additives and

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modifications.

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So much for an old process, ingeniously updated.

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What the creatively inspired can do with a material so well endowed with potential for

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constructive expression can be easily demonstrated with a lot of creative helpers.

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Take a roll of newly formed paperboard, unroll a hundred feet or so, and try to visualize

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the sheer volume of utility, convenience, and communication potential you have laid

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out, appropriately enough, right on the piney woods floor.

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Of course, it would probably never happen, but try to imagine how a passing troop of

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schoolchildren would react to all that smooth, responsive surface.

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My oh my, how they would draw, and print, and color.

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How they would cut, and fold, and form, and even fly.

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How they would, in a word, create with and on that roll of paperboard.

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In our first half century, we have found that a lot of grownup children respond the same

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way, and with training to augment their natural talents and feelings for the medium, they

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also draw, and print, and color.

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And sometimes even fly.

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Better yet, they translate their applied imagery to the reproduction processes that can expand

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their artistry a million fold.

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Other talented grownups monitor scoring, cutting, and folding actions, so that further down

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the line, still others can fill, seal, move, store, display, and attract.

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With these things properly accounted for, the all-important consumer enters the equation,

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and suitably appealed to, selects the packaged product, makes the purchase, takes the package

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home, dispenses the product, and recycles the package, thereby starting the whole regenerative

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process all over again.

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In our first half century, we have learned a lot about the care and feeding of paperboard's

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range of potentials, how to let it inform, how to let it accommodate, how to let it

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use its muscle where it really counts.

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Structural design is the key to paperboard packaging function, and structure is as variable

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as product needs are variable.

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Fragility and ruggedness are equally packageable in paperboard, as are lightness and density,

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small and large, liquid, solid, and in between.

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Also in our first half century, automation of the production line had to be matched by

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automation on the packaging line.

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Consequently, we are now in our second generation of mechanical packaging specialists. Their

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activities assure packaging performance on the producer's home grounds to match subsequent

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distribution and marketing performance.

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With structural and automation performance capabilities assured, the visual dimensions

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of package design can add their valuable supports by communicating product identity, origin,

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and pertinent related information to serve both the producer's responsibilities and the

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consumer's well-being.

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But even when we have determined that a specific packaging solution is performance capable

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in its own terms, we don't recommend the production commitment until we find out how it will be

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perceived and therefore accepted or rejected by its ultimate target user, the consumer.

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It is easier to make these determinations today because early in our first half century,

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we pioneered the integration of scientific marketing procedures with design operations

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through our design and market research laboratories. We should note some other pertinent lessons

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of our first half century. One, the fact that as superior as paperboard packaging proved

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to be, it cannot do everything better. That's why we added plastics packaging to our design

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and production capabilities. The Plastics Division of Container Corporation pioneered

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the development of the plastic drum, which is unapproachable in its ability to safely

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transport and store a broad range of essential substances, including the most hazardous chemicals

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in use today.

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On quite a different scale, another lesson learned was the mutual benefits of a selective

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joining of forces. In 1968, Container Corporation entered into a merger with Montgomery Ward

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to form MarCore. As predicted by our management, this merger produced improved strength and

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MarCore's continuing high performance attracted a major investment by Mobile Oil Corporation

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in 1974 to implement that organization's own diversification objectives. As of early July

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1976, the complete merger of MarCore into a newly formed holding company, Mobile Corporation,

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made Container Corporation a major element of the nation's third largest business enterprise.

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In the broadest terms, this just about summarizes who we are and what we are about at this point

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in our continuum. We have deliberately resisted the urge to show you even more of the treasured

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snapshots from our corporate archives, but we will point out a few examples of our advertising

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in the mid-1930s, not because they suggest nostalgia, but because they don't. The point

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is that our advertising of four decades back, when we were barely ten years old, could be

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run today without really suggesting times long past. And the significance of that is

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the historical fact that Container was the first organization to assign advertising and

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corporate design programs to artists and designers of international stature. Artists and designers

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whose work has worn very well. That direction, initiated by Walter P. Pepke, our founder

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and first chief executive officer, put us firmly on the leading edge of the communication

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arts, a position we will work to maintain and build on in the decades ahead.

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Finally, we should note that it is those decades ahead that we wish to emphasize here.

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In our first half century, our goal was to help packaging become an increasingly valuable

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contributor to the industrial society. And this is a continuing goal.

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But in our second half century, we share a far more serious responsibility. Packaging

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must do its part in helping the whole world meet the critical challenges posed by ever-expanding

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demands on diminishing resources. That, too, is our continuing goal.

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Thank you.

