Western Electric
From NEC Retro
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| Western Electric |
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| Founded: 1869-07-17 |
| Merged into: Lucent Technologies (1996-07-02) |
| Headquarters: New York City, New York, United States |
Western Electric Co., Inc. was an American electrical engineering and manufacturing company that operated from 1869 to 1996. A subsidiary of AT&T for most of its lifespan, Western Electric was the primary manufacturer, supplier, and purchasing agent for all telephone equipment for the Bell System from 1881 until 1984, when the Bell System was dismantled. Because the Bell System had a near-total monopoly over telephone service in the United States for much of the 20th century, Western Electric's equipment was widespread across the country. The company was responsible for many technological innovations, as well as developments in industrial management.
Company
In 1856, George Shawk, a craftsman and telegraph maker, purchased an electrical engineering business in Cleveland, Ohio.[1]
In January 1869, Shawk had partnered with Enos M. Barton in the former Western Union repair shop of Cleveland, to manufacture burglar alarms, fire alarms, and other electrical items. Both men were former Western Union employees. Shawk, was the Cleveland shop foreman and Barton, was a Rochester, New York telegrapher. During this Shawk and Barton partnership, one customer was an inventor sourcing parts and models for experiments. That inventor was Elisha Gray, a former physics professor at Oberlin College. Barton thought of future growth in electrical apparatus potential for the company and shared a common enthusiasm with the inventor, who was interested in leading a manufacturing plant capable of long-term developments. Shawk found those plans were beyond his business goals and offered to sell his half-interest partnership to Gray. Anson Stager, a former Chief of the U.S. Military Telegraphs during the American Civil War, advanced money for Gray to buy the half-interest and become a partner when Gray and Barton moved operations to Chicago. Gray and Barton previously knew Stager and an agreement was signed on November 18, 1869, to launch the company as Gray & Barton. The firm was open for business by the end of the year in Chicago. In December 1869, the location was at 162 South Water Street in Chicago.
Gray and Barton building in Chicago about 1870s
On December 31, 1869, he entered a partnership with Barton, and later sold his share to inventor Gray. In 1872, Barton and Gray moved the business to Clinton Street, Chicago, Illinois, and incorporated it as the Western Electric Manufacturing Company. They manufactured a variety of electrical products including typewriters, alarms, and lighting and had a close relationship with telegraph company Western Union, to whom they supplied relays and other equipment.
In 1875, Gray sold his interests to Western Union, including the caveat that he had filed against Alexander Graham Bell's patent application for the telephone. The ensuing legal battle between Western Union and the Bell Telephone Company over patent rights ended in 1879 with Western Union withdrawing from the telephone market and Bell acquiring Western Electric in 1881. This purchase was a crucial step in standardizing telephone instruments and concentrating manufacturing in a single entity.
In the company's first few years as Western Electric, there were five manufacturing locations located at Chicago (220-232 Kinzie St.) New York, Boston, Indianapolis and Antwerp, Belgium. The locations were not permanent, as the headquarters in Chicago had moved to a new building on Clinton Street, the New York shop had moved two city blocks to a new building on Greenwich Street, and both Boston and Indianapolis factories closed. The Antwerp location was at the same location under Western Electric operations until sold in 1925 to ITT.
In April 1879, the New York shop was located at 62-68 New Church Street, Lower Manhattan, New York. Western Union had a factory at that location and the Western Electric company known as W.E. Mfg. Co., at the time, had purchased Western Union's New York Factory to continue the increase of phone production. This site would also place the end to Western Union factories.
The consolidation of operations was done in 1884 to Chicago and New York factories by Charles Williams becoming a Western Electric Manager.
In 1888–1889, Western Electric built a 10-story factory building at 125 Greenwich Street in Lower Manhattan, to manufacture some of the first telephones. The New York shop that was renting the Western Union building moved to this building.
In preparation for the Chicago Worlds Fair of 1892, Western Electric was responsible for the organized Bell System sales activities and merchandising of apparatus for the 900 long-distance circuit from New York to Chicago. In 1897, the building at 463 West Street, New York was constructed and housed the New York shop as well as the company Eastern headquarters.
Western Electric was the first company to join in a Japanese joint venture with foreign capital. In 1899, it invested in a 54% share of the Nippon Electric Company, Ltd. Western Electric's representative in Japan was Walter Tenney Carleton. The company, later known as NEC, would eventually become a major international manufacturer of electronics equipment including semiconductors and personal computers, including the PC-8800 series and the PC-9800 series, as well as the PC Engine / TurboGrafx-16 console and its successors, co-created with Hudson Soft by NEC Home Electronics (NEC-HE), the home electronics division of NEC.
In 1901, Western Electric secretly purchased a controlling interest in a principal competitor, the Kellogg Switchboard & Supply Company, but in 1909 was forced by a lawsuit to sell back to Milo Kellogg.
The Manufacturers Junction Railway Company was incorporated in January 1903 to provide rail connections to major railroad systems. There were approximately 13 miles of track in and out of Hawthorne Works for rail freight of inbound materials and outbound finished products. Western Electric had a tenure of 50 years up to 1952, in the responsibility and operation of its use for Hawthorne and other nearby industrial companies.
Also, in 1903, the construction of Hawthorne Works first buildings were authorized by Barton.
In 1907, the research and development staffs of Western Electric and AT&T were consolidated to 463 West Street, New York. The location served the newly Western Electric Engineering Department for the responsibility of the testing and inspection of its telephones and equipment. AT&T's Engineering Department retained the responsibility for the growth of the Bell System with compatible equipment and service. Gradually the consolidation improved and advanced the telephony response to expanding use.
On July 24, 1915, employees of the Hawthorne Works boarded the SS Eastland in downtown Chicago for a company picnic. The ship rolled over at the dock and over 800 people died.
In 1920, Alice Heacock Seidel was the first female Western Electric employee to be given permission to stay on after she had married. This set a precedent in the company, which previously had not allowed married women in their employ. Miss Heacock had worked for Western Electric for sixteen years before her marriage, and was at the time the highest-paid secretary in the company.[20] In her memoirs, she wrote that the decision to allow her to stay on "required a meeting of the top executives to decide whether I might remain with the Company, for it established a precedent and a new policy for the Company – that of married women in their employ. If the women at the top were permitted to remain after marriage then all women would expect the same privilege. The policy was expanded quickly, so that a few years later women were given maternity leaves with no loss of time on their service records."
Western Electric was expanding beyond making telephone equipment and American Bell noticed its division from a manufacturing business to a supply business. Western Electric decided to split in 1921, the supply department from the manufacturing business and this led later to a separate entity.
In 1925, ITT purchased the Bell Telephone Manufacturing Company of Brussels, Belgium, and other worldwide subsidiaries from AT&T, to avoid an antitrust action. The company manufactured rotary system switching equipment under the Western Electric brand.
Early on, Western Electric also managed an electrical equipment distribution business, furnishing its customers with non-telephone products made by other manufacturers. This electrical distribution business was spun off from Western Electric in 1925 and organized into a separate company, Graybar Electric Company, in honor of the company's founders, Elisha Gray and Enos Barton.
Bell Telephone Laboratories, created from the engineering department of Western Electric in 1925, was half-owned by Western Electric, the other half belonging to AT&T.
The company began to increase its presence in other sectors of industry for new products. In September 1931, the Teletype Corporation headquartered in Chicago on Wrightwood Ave, became a subsidiary of Western Electric and it was a manufacturer of teletypewriters for TWX services.[24] There was the acquisition in 1931 of the Nassau Smelting and Refining plant located in Totenville, Staten Island, New York to recycle Bell System scrap wire, metal, and becoming a subsidiary of Western Electric.[25] The acquisition of the Queensboro factory in Middle Village, New York became a Western Electric Shop in the 1930s to produce wooden telephone booths.
In 1974, the IBEW members at Western Electric's 16 plants went on strike over improved benefits, cost‐of‐living adjustments, and pay increase for up to three years. The ratified contract was agreed on September 3, 1974, with employees at 13 plants returning to work. Only the company's subsidiary Teletype Corporation plant in Little Rock, Arkansas and two plants, the Columbia River Switching Equipment factory in Vancouver, Washington and in San Ramon, California were subject to ratification or in negotiations to settle local agreements.
In 1983, corporate announcements were made at the three oldest manufacturing facilities for product manufacturing transfers and employee expected layoffs. The Kearny Works facility that made systems to convert commercial power to run various telecom equipment, would transfer remaining work to Dallas Works. The shutdown of the plant would eliminate 4,000 jobs. The Baltimore Works facility that made connectors and protectors for wire and cable had work moved to Omaha Works. A total of 2,300 jobs were potentially eliminated after that announcement. The Hawthorne Works facility, had the operations for pulp cable relocated to Phoenix Works. A loss of 400 positions were expected eliminated in the process.
After the Bell System breakup, Western Electric facilities were known as AT&T Technologies facilities in 1984. The three largest and oldest facilities, Hawthorne Works, Kearny Works, and Baltimore Works were closed shortly after due to "excess space".