Ramsay and his cohorts were operating a bare bones operation: They owned one roll-top desk, a typewriter, and about $314 worth of lab equipment going into 1907. But they had invested heavily in inventory in anticipation of growing demand. Unfortunately, some of the materials were found to be unreliable after many batteries had been shipped. Disappointed buyers demanded refunds and the struggling upstart began losing money. Infuriated investors demanded that Landau, who was serving as the official head of the company, resign. Landau returned to France, and Ramsay kept the operation going, although another investor was appointed president. By the end of 1907, the company's books showed a total deficit of $50,000 for the two years of operation. Nevertheless, Ramsay remained committed to the company's success.
To replace Landau's technical expertise, Ramsay called on Dr. Charles F. Burgess, the founder of the chemical engineering department at Ramsay's alma mater. Burgess was intelligent and a perfectionist. He was immediately intrigued by Ramsay's enthusiasm about the operation, despite his belief that the French Battery Company was producing the worst battery on the market. Burgess invested in the company and helped it to upgrade its products. Within a year he believed that the company was offering the best dry cell available in the United States. The company struggled for a few more years, narrowly escaping bankruptcy, before posting its first profit in 1910. Enthusiasm about the surplus was negated, however, by a fire that wiped out French's factory. Significantly, though, French began selling a pivotal new flashlight battery that eventually would bring big profits.
French recovered from the fire and achieved steady profits between 1913 and 1920, despite another fire that virtually leveled the company's new factory in 1915. Burgess became increasingly involved in, and vital to, the company during those years and was elected vice-president in 1915. After the 1915 fire, however, relations between Burgess and the company deteriorated. Burgess departed in 1916 to start his own enterprise, although he allowed French to continue manufacturing products under his patents. Burgess was succeeded by his top assistant, Otto E. Ruhoff. Despite management turbulence, French recorded record profits in 1916 of $62,410 from sales of $889,880. That year, moreover, marked the last one in which the company would generate less than one million in sales. Ramsay was elected president of the company in 1918.