ERNST R. BEHREND SCHOLARSHIP FUND of The Erie Community Foundation Ernst R. Behrend (1869 – 1940), with his father, Moritz Behrend (1843 – 1915), and brother, Otto F. Behrend (1872 -1958), organized and established Hammermill Paper Company in Erie County, Pennsylvania in 1899. Moritz Behrend and his family operated paper mills in Germany on forest lands owned by Prince Otto von Bismarck, the “Iron Chancellor.” Moritz provided for the education of his sons in scientific disciplines applicable to papermaking: Ernst was educated as a mechanical engineer; Otto received his Ph.D. in chemistry. They were employed in the family pulp and paper business from an early age. Moritz Behrend fully appreciated the more expansive business and personal opportunities available in the United States, as contrasted with the authoritarian and militaristic environment of Germany in the late 19 th century. Moritz dreamed of migrating to the U.S., but family and personal commitments kept him in Germany. Instead, he encouraged his sons to make new lives for themselves in the United States. He assisted them with advice, technical assistance and financial support to establish the Hammermill Paper Company in America. It was based on new sulphite chemical processes that Moritz Behrend had applied in his German mills to manufacture fine printing and writing paper from wood pulp. Wood pulp provided a less expensive source of fiber than the cotton rag-based pulp which the American paper industry relied upon exclusively to make high quality papers at that time. To exploit their innovative technology, in 1898 Moritz Behrend and his sons raised capital from their family and other German investors, which they used to begin construction of a new pulp and paper mill on the Southern shore of Lake Erie on the Eastern boundary of the City of Erie, Pennsylvania. These facilities were initially organized as the E.R. Behrend Company partnership, which was incorporated as the Hammermill Paper Company in 1899. This name was derived from the name of a pulp and paper mill which Moritz Behrend operated in Germany, “Hammermuhle.” The Erie site was chosen because of its location near the then population center of the country, midway between the two principal American markets at the time (New York and Chicago), its proximity to low cost coal from the Pennsylvania mines, its position on a rail network adjacent to the best natural port on the Great Lakes, and the abundant fresh water of Lake Erie. From the port in Erie the new company received shipments of inexpensive soft wood from the forests of Ontario and Quebec. All of these elements are critical to the economical manufacture of pulp and paper. Ernst was the older of the two Behrend brothers and gifted with the executive qualities which are necessary to lead a large manufacturing organization. In 1900 Ernst became the President of Hammermill Paper Company and directed its development of many pioneering innovations in the manufacture and marketing of high quality printing and writing papers. In addition to the new chemical methods which they brought over from Germany for manufacturing fine paper from low cost wood pulp, Ernst and Otto Behrend received a U.S. patent in 1902 on a new method for watermarking fine paper produced at high machine speeds. This lead to national advertising and marketing by Hammermill of its mill-owned watermarked papers, including the well-known Hammermill Bond and Hammermill Graphicopy brands. These national branded papers replaced the private label watermarks which American paper makers had traditionally applied at low production speeds to the relatively small volumes of fine paper ordered by individual printers for their diverse local markets. These production and marketing innovations enabled Hammermill Paper Company to foster an organization of the strongest independent paper merchants throughout the United States who aggressively promoted and sold Hammermill fine papers to their printing and publishing customers around the country. Mr. Behrend also contributed his warmth and compassion to make Hammermill Paper Company a “people company,” and “a good place to work.” He installed many programs to promote good employee relations, including profit sharing, paid vacations, insurance and other fringe benefits that were unusual when adopted. All of these developments contributed to the success and prosperity of Hammermill Paper Company, and to that of its founder, Ernst R. Behrend. In 1986 International Paper Company acquired Hammermill Paper Company in an economic and legal climate which encouraged industry-wide consolidation. In 1989 Hammermill Paper Company was merged into International Paper Company. In 2002 International paper closed Hammermill’s former pulp and paper mills in Erie County. Hammermill’s other manufacturing facilities have lost their separate identity as part of the larger organization but the Hammermill brand name survives as International Paper’s strongest and best known brand. Beginning in the 1960’s Hammermill Paper Company acquired many of the formerly independent paper merchants which distributed the products of Hammermill and other paper manufacturers. International Paper has continued and expanded the distribution organization which Hammermill owned at the time of the acquisition. The Hammermill-owned paper merchants provided the base for the chain of merchants which International has acquired since the acquisition of Hammermill. These merchants now comprise a strategic component of International Paper’s global business. Upon the death of Ernst Behrend in 1940, he bequeathed 3,000 shares of Hammermill stock valued at $38,370 to a charitable trust which he established under his Will to fund these scholarships. This bequest was supplemented by cash gifts to the Trust of $10,000 from Otto Behrend in 1957 and $100,000 from the Company itself in 1974. Under the terms of Ernst Behrend’s Will, the members of the Executive Committee of the Board of Directors of Hammermill Paper Company were appointed as Trustees of the Trust in their individual capacities. These individuals, and the successors they appointed as Trustees, continued to manage the Trust following Hammermill’s merger into International Paper Company in 1989. On September 15, 2004, upon petition by the Trustees, the Erie County Orphans Court ordered the termination of the Trust and the transfer of its assets, totaling about $3,000,000 to The Erie Community Foundation. The Foundation now holds and manages these assets in a separate account identified as the Ernst R. Behrend Scholarship Fund. The former Trustees of the Trust continue as Advisors to the Foundation with respect to the award of scholarships from this Fund. ERNST R. BEHREND SCHOLARSHIP FUND (Founder of Hammermill Paper Company) 2011 GUIDELINES Amount Standard Scholarships – $2,000 - $4,000 Achievement Scholarships – $6,000 - $8,000 Eligibility The Ernst R. Behrend Scholarship Fund provides scholarships for post-secondary education for Erie County, PA high school seniors who would benefit from such education, as evidenced by superior academic records or other promise of outstanding academic success, and who have a demonstrated financial need. First preference shall be given to qualified lineal descendants of former employees of Hammermill Paper Company or its corporate successor, International Paper Company, who reside in Erie County, PA. If there are insufficient qualified applicants in the first category, second preference shall be given to other high school seniors residing in Erie County, Pa. The Advisory Committee generally limits eligibility to the children of parents whose combined income is below $80,000 per year, absent special circumstances. If parental income is above $80,000, you will be asked to indicate your special circumstances that would justify the award of a scholarship. Scholarships are awarded for full-time undergraduate study for a maximum of four years. You will be eligible to reapply each year to renew your scholarship provided you maintain the minimum GPA required by the Scholarship Selection Committee. You will be notified each year of the minimum GPA that the Selection Committee will require for renewal of the scholarship in the following year. Criteria Scholarships will be awarded to students based on financial need and scholastic achievement. Scholarship Applicants must have a cumulative grade point average of 3.3 or better and a minimum combined Verbal, Mathematics & Writing SAT Score of 1650. Applicants with an exceptional record of academic achievement and qualifications may be considered for an Achievement Scholarship. Transcripts: A copy of the most current version of your high school transcript that includes your cumulative grade point average Essay: In three hundred (300) typed words or less, please complete one of the four essay questions: a. Describe an accomplishment of which you are particularly proud. b. Describe the greatest responsibility you have been asked to assume and how you reacted. c. Choose a person not related to you whom you have known personally and tell why he/she has made an impact on your life. d. Tell us about a personal experience or challenge and what it has taught you about yourself. Two written recommendations from teachers or non relatives who know you well. Copy of your FAFSA Student Aid Report (SAR) that provides your Estimated Family Contribution (EFC) Any other pertinent information as to your qualifications which may be of interest to the Advisory Committee may also accompany this application. Scholarships are limited to cover tuition expenses only and will be sent directly to your college of choice. If tuition charges are less than the scholarship award, the scholarship will be reduced accordingly. Deadline for submitting scholarship applications – April 15, 2011. Mail or deliver to: Ernst R. Behrend Scholarship Fund The Erie Community Foundation 459 West 6th Street, Erie, PA 16507 ERNST R. BEHREND SCHOLARSHIP FUND Founder of Hammermill Paper Company 2011 Application This application must be submitted to The Erie Community Foundation by April 15, 2011. Please check that all items are included with your application: ( ) 1. Completed application form ( ) 2. Most recent high school transcript must be submitted. ( ) 3. A 300 word (or less) essay written on one of the following subjects: a. Describe an accomplishment of which you are particularly proud. b. Describe the greatest responsibility you have been asked to assume and how you reacted. c. Choose a person not related to you whom you have known personally and tell why he/she has made an impact on your life. d. Tell us about a personal experience or challenge and what it has taught you about yourself. ( ) 4. Other pertinent information (if applicable) ( ) 5. Two (2) current letters of reference (Note: must be included with application, not mailed separately) ( ) 6. Copy of the first page of your FAFSA Student Aid Report (SAR) that provides your Estimated Family Contribution (EFC) ( ) 7. A separate statement of consideration is included if total income of both parents is in excess of $80,000 Note: The Behrend Scholarship Selection Committee is composed of persons from the Erie Community who are appointed by the Erie Community Foundation’s Board of Trustees. The Erie Community Foundation is responsible for final approval of scholarship awards. ERNST R. BEHREND SCHOLARSHIP FUND 2011 Application Name of Applicant Permanent Address City State Zip Telephone Social Security # Date of Birth e-mail address College you plan to attend in 2011-2012 academic year College Address State Have you been accepted for admission to this college? Yes Zip No Cumulative Grade Point Average Father’s Name in Full Permanent Address City State Zip Telephone # Mother’s Name in Full Permanent Address City State Zip Telephone # Former employee of Hammermill Paper Company or its corporate successor, International Paper Company in Erie Co., PA Hire Date Termination Date Applicant’s relationship to former employee Father’s Occupation Where Employed Mother’s Occupation Where Employed Father’s Gross Income $ Parents’ Total Gross Income $ Mother’s Gross Income $ *Your Gross Income $ * Copy of your FAFSA Student Aid Report (SAR) that provides your expected “Estimated Family Contribution” (EFC) must accompany this application in order to be considered. Note: Where total income of one or both parents is in excess of $80,000, a separate statement must be attached to this application stating why the applicant should, nevertheless, be given consideration by the committee. Number of dependents living in household (including parents) Number of dependents in household attending college next year ________ ________ Itemize your approximate expenses for the forthcoming college year: Tuition Room and Board Books Fees $ $ $ $ Total $ List any financial aid (grants, scholarships, loans) that you have applied for for the 2011/12 year. List any financial aid, grants, scholarships or loans granted for the 2011/12 year and include amounts. List extracurricular activities and offices held in high school: I certify that all information given is based upon the most accurate knowledge I now have at my disposal. I understand that failure to answer questions truthfully will constitute grounds to revoke any scholarship that may be granted. Applicant’s Signature Parent’s Signature Date Date Helping today…Shaping tomorrow 459 West 6th Street Erie, PA 16507 All information contained in this application shall be considered confidential. Scholarships granted are for the forthcoming scholastic year and are predicated upon successful admission to the college listed on this application.