Lincoln, James Finney, 1883-

Executive Director of the Lincoln Electric Company who was a pioneer in the areas of arc welding and profit sharing. He established the James Finney Lincoln Welding Foundation.

From the description of Papers, 1906-1965. (Rhinelander District Library). WorldCat record id: 17725613

click here to view the Encyclopedia of Cleveland History entry for James F. Lincoln

click here to view the Encyclopedia of Cleveland History entry for the Lincoln Electric Company

James Finney Lincoln, a pioneer in the development of arc welding and profit sharing, was born on May 14, 1883, in Painesville, Ohio. His parents were both well educated. His mother, Frances Louise Marshall Lincoln, was a physician. His father, William Ellerby Lincoln, who was a farmer at the time of James' birth, had previously taught at Berea College in Kentucky and served as a Congregational minister.

James Lincoln grew up in an atmosphere of hard work and fervent religion. He entered Ohio State University in 1902 where his experience as captain of the football team apparently did much to shape his labor-management philosophy. In 1907, typhoid fever forced Lincoln to withdraw a semester before graduation.

In April 1907, Lincoln accepted a position as salesman in his brother John's company. Founded by his brother in the year 1895, the Lincoln Electric Company specialized in the manufacture of electric motors. James Lincoln assumed control of the company when his brother retired in 1914. Lincoln soon capitalized on the growing market for welding equipment, and the Lincoln Electric Company became on of the major firms in this field.

Lincoln encouraged the development of electric welding by setting up schools, offering cash prizes for engineering papers on welding, and by publishing textbooks and pamphlets. In 1936, the James Finney Lincoln Welding Foundation was established to encourage the development of welding. Lincoln was also active as an inventor and personally patented a number of improvements for welding machines.

James Lincoln was very interested in increasing the efficiency of his company. He hoped to achieve this increased efficiency not only through technological advances but also by increasing the efficiency of his work force. To this end he encouraged good employee-management relations by establishing an Advisory Board of departmental representatives. He set up an incentive system comprised of bonuses and benefits in order to stimulate his employees to more efficient production. He also instituted piecework to encourage his employees to produce more. The pay and benefits in his plant were greater than those offered to the average factory worker. Lincoln gave his employees free life insurance in 1915; paid vacations in 1923; stock options to the most efficient employees in 1928; a bonus system according to each employee's production in 1934; cash bonuses for efficiency suggestions in 1935; a pension fund in 1936; and in 1944, severance pay amounting to six-months earnings. However, Lincoln did not view his policies as paternalistic. He felt that his employees earned these benefits through their increased production and efficiency. He maintained that with the incentive system, the Lincoln Electric Company was able to sell increasing numbers of welding machines at ever lower prices while paying higher wages.

In 1942, the federal government challenged the payment of naval contract funds to employees at Lincoln Electric. The government was attempting to renegotiate the contracts at a lower sum and the Price Adjustment Board wanted $3,250,000 returned. Lincoln was subsequently brought to trial for tax evasion. Lincoln successfully defended his incentive wage plan by winning several court cases arising from the tax suit and from Lincoln's subsequent challenge of the constitutionality of the Renegotiation Act.

Lincoln was active in numerous engineering, welding, and manufacturing associations. He was on the Board of Trustees for Ohio State University, Lake Erie College, and Fenn College, and was an honorary trustee of Case Institute of Technology. Lincoln was also director and industrial counselor of the Research Foundation of Ohio State University and a member of the Advisory Committee for the College of Engineering at the University of Cincinnati. He was president of the Cleveland Chamber of Commerce in 1942 and 1943. Lincoln was a member of the Union Club, Mayfield Club, Pepper Pike Club, and the University Club, all of Cleveland, Ohio. He served on the 1932 Governor's Committee on Unemployment Insurance, the Church Industry Group of the Church Federation, as Ohio Chairman of the Republican National Finance Committee in 1936, as Vice-Chairman in 1940, and as a Trustee for the Cleveland Hearing and Speech Center.

In 1945, Lincoln won the Samuel Wylie Miller Memorial Award for his contributions to the field of welding. In 1926, Ohio State University awarded him an electrical engineering degree. Throughout the years, numerous Ohio colleges continued to honor him with various awards and degrees. In 1947, Lincoln was chosen as one of Forbes Magazine's "Fifty Foremost Business Leaders."

Lincoln wrote many articles, pamphlets, and books on his philosophy of incentive management and on government controls in industry, including "An Industrialist Looks at 'the New Deal'"; "Tell the Truth and Keep Out of the Way"; "Ignorance of the Law Is No Defense"; "Who Can Employ the Idle?"; "Intelligent Selfishness and Manufacturing"; Lincoln's Incentive System, 1947; Incentive Management, 1951; and A New Approach to Industrial Economics, 1962.

James Lincoln built the Lincoln Electric Company into the largest manufacturing firm of its kind in the world consisting not only of the American-based firm but also of subsidiary branches in Canada, Australia, England, and France. Lincoln remained as executive head of the firm until his death on June 23, 1965.

As a young man, Lincoln had married Alice Patterson and they had four children. Seven years after the death of his first wife in 1954, Lincoln married Jane White, dean of Lake Erie College. He was survived by Mrs. Jane White Lincoln; his children, James F. Lincoln, Jr., Mrs. J. Howard Morris, Jr., Mrs. Kenneth Steingass, and Mrs. Robert A. Wilson; a sister, Mrs. Robert Davies Newbury; 22 grandchildren, and 11 great-grandchildren.

From the guide to the James F. Lincoln Photographs, 1870-1960, 1950-1960, (Western Reserve Historical Society)

click here to view the Encyclopedia of Cleveland History entry for James F. Lincoln

click here to view the Encyclopedia of Cleveland History entry for the Lincoln Electric Company

James Finney Lincoln, a pioneer in the development of arc welding and profit sharing, was born on May 14, 1883, in Painesville, Ohio. His parents were both well educated. His mother, Frances Louise Marshall Lincoln, was a physician. His father, William Ellerby Lincoln, who was a farmer at the time of James' birth, had previously taught at Berea College in Kentucky and served as a Congregational minister.

James Lincoln grew up in an atmosphere of hard work and fervent religion. He entered Ohio State University in 1902 where his experience as captain of the football team apparently did much to shape his labor-management philosophy. In 1907, typhoid fever forced Lincoln to withdraw a semester before graduation.

In April 1907, Lincoln accepted a position as salesman in his brother John's company. Founded by his brother in the year 1895, the Lincoln Electric Company specialized in the manufacture of electric motors. James Lincoln assumed control of the company when his brother retired in 1914. Lincoln soon capitalized on the growing market for welding equipment, and the Lincoln Electric Company became on of the major firms in this field.

Lincoln encouraged the development of electric welding by setting up schools, offering cash prizes for engineering papers on welding, and by publishing textbooks and pamphlets. In 1936, the James Finney Lincoln Welding Foundation was established to encourage the development of welding. Lincoln was also active as an inventor and personally patented a number of improvements for welding machines.

James Lincoln was very interested in increasing the efficiency of his company. He hoped to achieve this increased efficiency not only through technological advances but also by increasing the efficiency of his work force. To this end he encouraged good employee-management relations by establishing an Advisory Board of departmental representatives. He set up an incentive system comprised of bonuses and benefits in order to stimulate his employees to more efficient production. He also instituted piecework to encourage his employees to produce more. The pay and benefits in his plant were greater than those offered to the average factory worker. Lincoln gave his employees free life insurance in 1915; paid vacations in 1923; stock options to the most efficient employees in 1928; a bonus system according to each employee's production in 1934; cash bonuses for efficiency suggestions in 1935; a pension fund in 1936; and in 1944, severance pay amounting to six-months earnings. However, Lincoln did not view his policies as paternalistic. He felt that his employees earned these benefits through their increased production and efficiency. He maintained that with the incentive system, the Lincoln Electric Company was able to sell increasing numbers of welding machines at ever lower prices while paying higher wages.

In 1942, the federal government challenged the payment of naval contract funds to employees at Lincoln Electric. The government was attempting to renegotiate the contracts at a lower sum and the Price Adjustment Board wanted $3,250,000 returned. Lincoln was subsequently brought to trial for tax evasion. Lincoln successfully defended his incentive wage plan by winning several court cases arising from the tax suit and from Lincoln's subsequent challenge of the constitutionality of the Renegotiation Act.

Lincoln was active in numerous engineering, welding, and manufacturing associations. He was on the Board of Trustees for Ohio State University, Lake Erie College, and Fenn College, and was an honorary trustee of Case Institute of Technology. Lincoln was also director and industrial counselor of the Research Foundation of Ohio State University and a member of the Advisory Committee for the College of Engineering at the University of Cincinnati. He was president of the Cleveland Chamber of Commerce in 1942 and 1943. Lincoln was a member of the Union Club, Mayfield Club, Pepper Pike Club, and the University Club, all of Cleveland, Ohio. He served on the 1932 Governor's Committee on Unemployment Insurance, the Church Industry Group of the Church Federation, as Ohio Chairman of the Republican National Finance Committee in 1936, as Vice-Chairman in 1940, and as a Trustee for the Cleveland Hearing and Speech Center.

In 1945, Lincoln won the Samuel Wylie Miller Memorial Award for his contributions to the field of welding. In 1926, Ohio State University awarded him an electrical engineering degree. Throughout the years, numerous Ohio colleges continued to honor him with various awards and degrees. In 1947, Lincoln was chosen as one of Forbes Magazine 's "Fifty Foremost Business Leaders."

Lincoln wrote many articles, pamphlets, and books on his philosophy of incentive management and on government controls in industry, including "An Industrialist Looks at 'the New Deal'"; "Tell the Truth and Keep Out of the Way"; "Ignorance of the Law Is No Defense"; "Who Can Employ the Idle?"; "Intelligent Selfishness and Manufacturing"; Lincoln's Incentive System, 1947; Incentive Management, 1951; and A New Approach to Industrial Economics, 1962.

James Lincoln built the Lincoln Electric Company into the largest manufacturing firm of its kind in the world consisting not only of the American-based firm but also of subsidiary branches in Canada, Australia, England, and France. Lincoln remained as executive head of the firm until his death on June 23, 1965.

As a young man, Lincoln had married Alice Patterson and they had four children. Seven years after the death of his first wife in 1954, Lincoln married Jane White, dean of Lake Erie College. He was survived by Mrs. Jane White Lincoln; his children, James F. Lincoln, Jr., Mrs. J. Howard Morris, Jr., Mrs. Kenneth Steingass, and Mrs. Robert A. Wilson; a sister, Mrs. Robert Davies Newbury; 22 grandchildren, and 11 great-grandchildren.

From the guide to the James F. Lincoln Papers, 1903-1965, (Western Reserve Historical Society)