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The following is a history of our Indianapolis operations. During the Depression in 1932, Elmer Krueger, an Indianapolis industrial engineer, took an idea, and $250 of borrowed capital and founded the Paper Art Company. In the basement of his family home, Elmer and his father, Gustave, produced foil covered paper coasters. Krueger invented a patented handle for paper cups and introduced the first decorated, scalloped paper napkins, smooth-rimmed plates, tray plates, snack plates, paper bowls and die-cut party plates under their registered trade names "Paper Linen" and "Paper China." Krueger's Paper China process was a closely guarded trade secret: plate stock was cut into sheets, hand silk-screened, soaked and run through a washtub wringer to remove excess moisture. The company achieved national recognition on May 28, 1935 when the Dionne quintuplets celebrated their first birthday at a table set with Paper Art products. By 1945, the culture had changed with women's venture into the work place and the public's resulting demand for efficiency and convenience in homemaking and home entertaining. The demand for paper products soared. Hot-or-cold cups and plates in holiday designs joined matching table covers and napkins in both cocktail and dinner sizes. Custom designs were created for airlines. Krueger added the manufacture of disposable knives, forks, and spoons, and envisioned a disposable guest towel coordinated with popular bathroom color schemes. In 1965, Paper Art Company was sold to William Atcheson, a former investment banker. Atcheson targeted the high-income market, leaving supermarkets and other mass merchandisers to a competitor, the C.A. Reed Company. Paper Art products were exclusive to fine stationery, party and gift shops. By 1979, the company had 7,000 retail outlets and had expanded its facilities three times. To accommodate the public's demand for convenient, disposable party goods, the Paper Art line included 64 different designs plus solid colors. The Company was positioned as "a complete party supplier" by adding holiday decorations, party favors, centerpieces, party masks and hats, and plastic glasses, cups and flatware to Paper Art's products. In-house artists created new designs each year to offer with perennial favorites like the silver-on-white Wedding Day pattern. Paper Art began shipping to Canada, South America, Europe and the Far East. In 1985, the Mennen Company known for its health and beauty aids, bought both Paper Art and its mass-market competitor, C.A. Reed. Mennen relocated C.A. Reed sales and marketing functions to Indianapolis, but preserved the two firms' separate identities and separate market focuses. To guide new product designs, Paper Art and C.A. Reed polled their consumers to discern trends and tastes. Paper Art became noted for its "fashion colors" and special occasion tableware segments. It developed close ties to its specialty retailers, advising them on appropriate in-store merchandising, product line planning and design selection. In 1992 Colgate-Palmolive acquired the Mennen Company and with it C.A. Reed and Paper Art. Before the end of the year, it had spun the two paper goods companies off to The James River Corporation. By adding C.A. Reed and Paper Art to its existing Gala brand, James River Corp. became one of the nations top four producers of party goods. The corporation consolidated all the paperware manufacturing and distribution facilities with Paper Art's in Indianapolis. Paper Art added 110,000 square feet of warehouse and distribution space and made plans to add over 200 new employees. James River named its party goods businesses "The Creative Expressions Group," but continued to market the product under their C.A. Reed and Paper Art brand names. In May 1996, James River Corp. sold the Creative Expressions Group. Paper Art and C.A. Reed became an affiliate of the Fonda Group, a leading paper products provider and a division of 4M/Box US.
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