A Brief History of the National Company, Inc.
By John J. Nagle, K4KJ
This paper originally
appeared in AWA Review, Volume 1. Permission to present it
here has been granted by the Antique Wireless Association,
and they retain all rights to its distribution and
reproduction. Only not-for-profit personal use is authorized
for any hardcopy printouts of this page. I want to thank Mr.
Bill Fizette, AWA President, for his support of the Millen
Page project.
The
Early Years
The story of how a small manufacturer of
power plant specialty items, and later toys and household
items, became one of the leading manufacturers of amateur,
commercial and military short-wave communications equipment
is interesting and fascinating. As we will see, it was not
planned that way; it just happened!
In 1879 Edison invented the electric light bulb. This
created a large demand for electrical energy. Charles
Steinmetz and George Westinghouse solved the mysteries of
alternating current which permitted large amounts of
electrical energy to be transmitted over long distances.
This, in turn, created a need for large power generating
stations. By the early 1900's the design and construction of
power generating stations was, in today's terminology, an
emerging industry.
At the turn of the century, one of the leading power plant
construction companies was, and still is, the Stone and
Webster Co. who then had their headquarters in the Boston,
Massachusetts area.
Power plants required many hardware specialty items which
were new and unique and for which no regular suppliers had
yet established themselves. Three mechanical engineers from
Stone and Webster recognized this market and set up a
company on a part-time basis to design and manufacture these
hardware items.
A material called transite was widely used at that time to
make switching and transformer vaults for power plants.
Transite is sheet material, similar to plywood except that
the base material is asbestos which is non combustable and a
non conductor of electricity.
The power plant specialty business had one serious drawback;
while the market with Stone and Webster was guaranteed, it
was sporadic. Stone and Webster did not receive new
construction contracts every day and there were long gaps
between contracts when there was no demand for the specialty
items A search was therefore made for products which they
could manufacture using the production tools they has for
which a steady demand existed.
One of the three knew a toy buyer for the F.W. Woolworth
Company; so they went into the toy business.
I have not been able to pinpoint the date when the three
actually began manufacturing power plant items or when they
began manufacturing toys but it was in the 1910-14 period.
On October 23, 1914 they incorporated in Massachusetts as
the National Toy Company. The initial capitalization was
$1000; $700 in cash and $300, which was the evaluation
placed on a patent for "talking machine toys." The
incorporators were Warren Hopkins, Walter Balke, and
Rosewell Douglass. Hopkins had the most money and the
controlling interest in the company and always "called the
shots" until his death in the early 1940's, even though he
retained his position at Stone and Webster; in fact, Hopkins
later became president of Stone and Webster Engineering Co.
In the early toy days the company was run by Roswell
Douglass; he died in the late 'teens and William Ready
became the chief operating officer. He also took Douglass'
place as a stock holder.
The toy business was highly successful; in June 1916,
sixteen months after incorporating, the company had grossed
over $33,000 and paid over $8,000 to Balke, Hopkins and
Douglass. This is better than a ten-to-one return on their
$700 cash investment is sixteen months and would be
considered good even today, but these were pre-WWI dollars.
The toys were sold through such well-known stores as F.A.O.
Schwarz, Jordan Marsh, Wm. Filene, John Wanamaker, and
Gimbels Bros., as well as through Victor and Columbia
Talking Machine dealers. Over 8,800 of these toys were sold
between January and June of 1916 and the company planned to
make 16,000 more during the remainder of 1916. The early
talking machine (phonograph) toys were designed by Walter
Balke, who was very ingenious mechanically; the toys were
attached to the turntable of a phonograph and were activated
by the record being played on the phonograph. For example,
'REX the Magnetic Dog' was controlled by a resonant reed.
When this reed was activated by the proper note on the
record, REX would jump out of his kennel. 'The Magnetic
Dancers' were small figures of dancers with steel bases that
would glide on an opaque glass plate over a special record
on the phonograph containing small cobalt magnetics. These
would cause the dancers to glide around the 'dance floor.'
Another series were the 'Wireless Pups' which I have not
seen described. There was also an entire family of 'Ragtime
Rastus' dancers including Boxers and Uncle Sam and Mex.
These were loose jointed wooden figures that would dance or
box on top of a revolving turntable. By choosing a record
with the proper beat, a very entertaining effect could be
obtained.
This Success apparently created the need for additional
working capital and it was proposed to issue $5,000 worth of
preferred stock to be purchased by the present stock
holders. The reasons for this are interesting:
"New things are constantly being brought to us, many of
them specialties not in the toy line (for instance a
mattress for children's cribs and hospitals which can be
readily taken apart, washed and aired, as well as other
household specialties). In order that we may take up the
manufacture of any profitable specialty, we shall probably
when increasing the capital stock change the name to The
National Company or other suitable name that will not limit
us to toys."
I have not been able to determine when that was written or
when the name was actually changed but I believe it was in
lat 1916. On February 16, 1932 the corporation charter was
further amended to formally change the company name to the
National Company, Inc. by which name the company is
generally remembered. Note that the word "Company" is part
of the name and should be spelled out as is the word
National. The expression National Co., Inc. is incorrect.
When the United Sates entered World War Im the company made
airplane parts and thread gauges for the war effort. At the
conclusion of the war National went back to making power
plant items, toys and as an added line, household items.
By the end of March 1923 the National inventory included
fourteen items: T.M. Toys, Magnetic Dancers, Robert Mixers,
DMB Covers, Victrolene, Wall Rack and Plan Holders, Radio
Components, S. Santry, Holophane, Thompson Spa, Portalite,
H. Electric Lt, Co. Doble and Miscellaneous. I can only
identify about three of them.
Entering
Radio - The Early Years
In the early 1920's several radio stations began regularly
scheduled broadcasting and the public craze was to build
radio receivers. The leading variable capacitor (condenser
in those days) manufacturer at the time was Allen D.
Cardwell, and Cardwell was not able to keep up with the
demand. Cardwell's representative in the Boston area -
George Q. Hill - was unhappy since he worked on commission
and his income was limited by Cardwell's deliveries. Hill
recognized the demand for variable capacitors and looked
around for alternate sources. The management of National was
always interested in new products and were eager to profit
from the new radio craze. In 1922 they began supplying
variable capacitors to Hill who sold them as fast as
National could make them. When National later entered the
radio business, Hill became the sales manager for radio
products.
In 1924, two engineers from Harvard University, Fred H.
Drake and Glenn Browning, developed the Browning Drake tuner
which was "guaranteed" to improve radio reception; Browning
and Drake approached National to manufacture the tuner. The
radio editor of the Christian Science Monitor, Vulney Hurd,
liked the Browning Drake tuner and gave it extensive
publicity in his weekly newspaper column, so that the tuner
soon became a very popular item. The National Company
decided to make the design, manufacture and sales of radio
equipment and components their principal line of business,
and began looking around for someone knowledgeable in the
fledging radio field to join the company and lead them.
In 1924 Hopkins, Ready and Balke were on a business trip to
Garden City, Long Island where they were introduced to James
Millen. Millen's father had recently died while the younger
Millen was a mechanical engineering student at the Stevens
Institute of Technology in Hoboken, N.J. In order to finish
college, Millen began writing magazine articles on radio
topics. For example, a "Dear Abbey" type column on radio
topics regularly appeared in Doubleday's Radio Broadcast
magazine in which Millen answered questions from readers on
their radio problems.
Millen had begun writing at an early age. He had his first
item published when he was 15 in the October 1916 issue of
Popular Science Monthly; it showed how any home work shop
could have a small anvil. Staple an old fashioned flat-iron
upside down to the edge of the work bench. It sounds like a
good idea, even today, if you can find an old fashioned flat
iron!
Because of his writing, Millen had acquired a considerable
reputation in radio and had built up an extensive consulting
practice which included CECO in Providence, R.I. and the
Spencer brothers in the Boston area who had just established
the American Appliance Co., which was later to become
Raytheon. When Millen graduated in 1926 he began working for
National on a consulting basis and in 1927 dropped his other
consulting contracts and began working for them full time as
Chief Engineer and General Manager. His goal was to firmly
establish the National Company in the radio business.
In 1926 the National Company needed to expand its
manufacturing facilities and acquired the factory building
at 61 Sherman Street, Malden, Massachusetts, formerly owned
by the Cub Knitting Mills. Cub had gone bankrupt and their
factory had been put on the auction block. The attorney who
was suppose to appear at the auction to set the minimum
acceptable bid did not show up so the building went to
National for about ten cents on the dollar.
National's first offering under Millen's guidance included a
Type L-3 two-stage audio power amplifier and battery
eliminator which was developed in collaboration with Arthur
Lynch, a Model E-1 single stage audio amplifier and battery
eliminator, and a Model M battery eliminator. These were
announced late in 1927.
In 1929, in collaboration with Glenn Browning, National
announced the MB-29 broadcast band tuner which consisted of
three stages of rf amplification and bandpass tuning. In
1930 an improved model, the MB-30, consisting of four stages
of rf amplification, was advertised. These were both TRF
models.
The
Regenerative Receivers
National's first short wave receiver was the SW-2 (stands
for Short-Wave, 2 tubes) consisting of an untuned rf
amplifer and a regenerative detector. The basic design was
obtained from the RCA Communications Laboratory, then
located at Van Cortland Park, New York City. Several of
Millen's college classmates had gone to work for RCA and he
had extensive contacts there. The SW-2 was based on a
receiver design RCA developed for an "export receiver" sold
by the General Electric Co. in South America. This receiver
became known as the SW-4 when it was later manufactured by
National.
The SW-2 was the only receiver National made without sheet
metal or production tooling; for example, all holes were
laid out by hand instead of using fixtures. The SW-2 was
extensively advertised as a TV receiver and Millen wrote an
article in the November 1928 issue of Radio News describing
his TV experiments. The SW-2 appeared in late 1927 or early
1928. A three-tube version of the SW-2 appeared in 1929; the
third tube was an voltage amplifier and apparently was added
to provide additional amplification for TV work.
In 1929 the company produced the four-tube SW-4, the fourth
tube being an audio power output tube. A sheet metal cabinet
was also provided.
As new and improved vacuum tubes were developed, National
improved its receivers. In 1930 Millen and Kruse, who was a
former technical editor of QST, designed the SW-5 receiver.
The fifth tube was added to provide a push-pull output stage
for loud speaker operation. This was one of the first
short-wave receivers specifically designed for operation
from AC power lines. The receiver was completely hum-free
and had no dead spots which was quite an accomplishment at
that time. A "high fidelity" version of the same receiver -
the SW-45 - was also sold which used type 45 tubes for the
audio output stage instead of the type 27 used in the SW-5.
As the country was in the midst of the great depression, a
low-cost version of the SW-5 was soon developed - the now
venerable SW-3. The push-pull audio output stage of the SW-5
was eliminated - which meant headphone operation only - and
a wrap-around sheet metal cabinet was substituted to further
reduce costs. Both AC and battery powered models of the SW-3
were marketed and two upgrades made; the last right after
WWII to use octal tubes. This receiver was in production
almost 15 years, from 1933 to 1948, the longest production
run of any receiver except the HRO which was in production
for almost 30 years. The SW-3 has become a "must" for any
collector of early short-wave receivers.
One last regenerative receiver deserves mention, the SW-58C.
This receiver was designed as a companion receiver for the
AGS superheterodyne receiver to cover the 200 to 400 Khz
frequency range used by the airlines that the AGS receiver
would not cover. The receiver is basically the SW-58 except
for the plug-in coils. These coils look like the coils used
for the AGS/FB-7 receivers but they are longer and smaller
in diameter. They are NOT interchangeable with the AGS/FB-7
coils. The SW-58C has a National type N dial, as did the
AGS; the SW-58C is generally seen in AGS advertisements as
the 'other' receiver in the relay rack.
The
Early Superheterodynes
In 1932 the General Electric Co. was
awarded a contract by the recently established Civil
Aeronautics Authority (known as the FAA today) to provide
short-wave (HF in today's terminology) transmitters and
receivers to the Government for air safety use in the
fledgling airline industry. GE had developed a transmitter
but they did not have a receiver. The Western Electric
Company had a receiver, but for competitive reasons GE did
not want to team with Western Electric and instead
approached Millen to have National design and manufacture a
suitable receiver. The result was the AGS (for Aeronautical
Ground Station). This was the first high performance
short-wave receiver made by National and one of the first
high performance receivers commercially available. Most of
the receivers were sold to the CAA through General Electric
Co. A few went into the amateur market along with amateur
band-spread coils.
Again the depression reared its head and in order to make
the receiver more marketable a reduced version was made
available; this was called the FB-7. The rf preselector was
eliminated and a more economical wrap-around sheet metal
cabinet was provided; only one set of coils was included so
that the cost was reduced to where many amateurs could
afford what was probably the first medium performance
amateur superhet receiver. The receiver became very popular
among amateurs and is among collector, too.
The
HRO and its Descendents
After the introduction of the AGS by the
Government, the airline industry itself began to recognize
the importance of reliable radio communication and urged
National to develop a receiver for their use. Herbert
Hoover, Jr was then in charge of radio communications for
Western Airlines (which later became part of TWA); he acted
as an informal spokesman for the airlines. The main airline
requirements were that if plug-in coils were necessary to
obtain the desired performance, then all coils must be
plugged in simultaneously. A second requirement was two
stages of preselection. As these requirements, plus a
crystal filter, closely matched those desired by the amateur
community for their dream receiver, the two markets could be
combined into one receiver which became known as the HRO. By
the way, HRO stands for Helluva Rush Order, honestly! How it
got that name is part of the HRO story which is too long to
include here.
The HRO was first announced in the October 1934 issue of QST
and delivery was promissed for December 1934 in time for the
Christmas trade. The photograph shown in that announcement
is the prototype model which did not go into production.
However, technical problems delayed deliveries until March
1935; the photograph shown in the January issue of QST is
that of the first production model. The same basic receiver
stayed in continuous production almost thirty years until
October 1964 when the HRO-500 was announced. This is a
remarkable life span for any piece of electronic equipment,
especially one that was designed so early in the electronics
age.
In February 1936 National announced the HRO Jr., a scaled
down version of the HRO, at a cost of just under $100. The
advertised economics were effected by removing the crystal
filter, the S-meter and by supplying only one coil set,
without bandspread, to cover any two contiguous amateur
bands. One further economy was not advertised; with the HRO
Sr. each coil set was aligned in the receiver with which it
was sold. This of course, gave an exact alignment of each
coil set for each receiver. The complete alignment of an HRO
Sr. required about four hours. With the HRO Jr. the coils
were aligned to an average receiver and the receivers were
aligned with an average coil set so that one did not have
the precision alignment that was obtained with the more
expensive receiver.
In August 1936, Millen announced a new receiver designed for
both amateurs and short-wave listeners, the NC-100X. This
basic design would be carried through in many more receiver
designs, the 100XA, the NC-101 series, the NC-200 family
that came out just before WWII, to mention a few.
Unfortunately, time and space do not permit a detailed
examination of these and many other receivers that National
engineers developed. Suffice to say, that by the middle
1930's the design of high performance receivers had advanced
from an art to a science and National built up a very
competent engineering staff that kept National products up
to date and in high demand.
Millen
Leaves National
In 1939 lightning struck! The June 1939
issue of QST carried an announcement that as of May first,
1939, James Millen had "completely withdrawn from the
National Company......" What had happened to end such a
successful collaboration of almost 15 years?
The immediate reason occurred early in 1939. According to
Millen, Warren Hopkins, who held the controlling interest in
National, told Millen that he (Hopkins) wanted Millen to
switch the emphasis of the company from making short-wave
radios for a very limited sector of the country to making
broadcast type radios to be marketed by the retail giants as
Sears Roebuck, Montgomery Ward and the many large and well
known department stores around the country. The purpose of
the drastic change was to make the National Company a
"household name" in the radio business.
Millen was flabbergasted! National had been highly
successful in designing and manufacturing short-wave radios;
in fact, they were the recognized leader in the receiver
field and more recently in transmitter and accessory items,
too. Equally important, the company was profitable!
Why? Hopkins would give no definite reasons, saying only
that he wanted to change the direction of the company, and
the company needed products where it would have more
exposure.
Millen wanted no part of it; he was dedicated to building
the best receivers that he could build regardless of price.
The consumer radio business was completely alien to him. So
he left National and formed his own business.
From a historical point of view it is interesting to pause a
moment and look back and examine what Millen had contributed
to the National Company, Inc. in it transformation from a
toy maker to a leadership role in short-wave communications
receivers.
First, I have heard it said by people who were closely
associated with National, but not employed by National,
that, in the 1930's National was run by Jim Millen and his
secretary Frances Bearse. Miss Bearse held the formal title
of Office Manager but was apparently more of Millen's
right-hand "man."
Second, Millen traveled extensively in those days visiting
suppliers, dealers and most important, individual amateurs
and amateurs radio clubs throughout the country. When he
returned to Malden, he knew what new materials and
components were available. He would sit down with his
designers and sketch out new products. In short, Millen was
an "idea man."
The third role Millen played was as a publicist. As noted
earlier, Millen had a flair for writing and he used this
ability well. He usually wrote a magazine article describing
each new product, but more than that, he would explain in
simple technical terms why it was built the way it was. By
the end of the article most readers would agree that the way
National designed the equipment was the "only way" to do it
and nobody could improve upon it.
In the march 1934 issue of QST Millen inaugurated what is
probably the longest running and most successful series of
technical advertisments. These were always the first
advertising page in QST and consisted of a single page
write-up on some technical topic of interest at the time: a
description of a new receiver, a new circuit or component of
something similar. This page was known as "page 73" at
National regardless of the magazine page on which it was
printed. This series continued through number 243 which
appeared in the July 1954 QST, a run of over 20 years.
In retrospect, Millen believes Warren Hopkins' desire to
change direction was based on another consideration; Hopkins
died of cancer in the early 1940's and Millen feels that
Hopkins was told he had cancer in early 1939 and had only a
few years to live. Hopkins wanted to convert his assets into
the maximum amount of cash possible. This would be a natural
reaction for any business man in Hopkins' situation.
National had a good reputation in amateur and Government
circles but was virtually unknown by the general public or,
equally important, by the financial community which would
ultimately set the value of his holdings and would tend to
hold down the price of National stock.
As it turned out, Hopkins got his wish of increased value
for his stock but from an entirely different direction.
In the summer of 1939 war broke out in Europe;
representatives of Allied governments, particularly the
Royal Navy, visited National and ordered large numbers of
receivers, particularly HRO's. When the United States
entered the war some two years later, the word was "Start
building HROs; we'll tell you when to stop."
Needless to say, National began producing for the war
effort. The number of employees went from the 200-300 range
to about 2500 during the war. The war effort brought
increased recognition and profits to National and after the
war, in the late forties, National went public.
National's
Post-War Years
National built extensively on its
war-time expansion and development an impressive array of
military, industrial, and consumer as well as amateur
products and appeared to have a very promising future.
Effective June 1, 1953 William A. Ready retired, after
almost forty years as president of National, and Charles C.
Hornbostel became president. Hornbostel graduated from the
Harvard School of Business specializing in accounting.
William A. Ready is remembered as a kindly person by his
fellow employees at National. He knew most employees on a
first name basis as well as their wife's and children's
names. He was always available and often stopped to talk
with employees on his tours through the plant. No special
introductions were needed.
Ready began the tradition of holding employee Christmas
parties. Former National employees still gather at Christmas
to renew old friendships and memories. I have been
privileged to attend several of these reunions and have
found the employees treasure their memories there. National
must have been an interesting place to work!
After the company went public, a controlling interest was
acquired by Louis C. Learner, an investment company, and the
Learner interests took control. Legal technicalities tend to
obscure the facts and I have not been able to determine all
the details to my satisfaction.
The new management apparently set up a second company called
National Radio Company, Inc.; all Government work continued
to be charged to the National Company, but now all
commercial and amateur work was charged to the National
Radio Company. Press releases were made detailing plans for
rejuvenation of the company and the price of the stock went
up. At that point the Learner interests sold their stock.
Several component product lines were sold to Japanese
interests as was the production machinery and the name
National Company, Inc. The National Radio Company went into
bankruptcy and that name was sold to the bankrupt's
principal creditor, who in turn sold it to the FAN-WEL
Corp., who purchased the remaining assets as well. In June
1974, FAN-WEL changed its name to National Radio Company,
Inc. and is still doing business under that name.
The Japanese-held National Company, Inc. makes consumer type
radios but, to the best of my knowledge, they are not sold
in this country. Warren Hopkins had his wish come true after
all.
Acknowledgements
I would like to acknowledge the extensive
help I have received from many sources. First, James Millen
has spent many hours reviewing the early days of National
with me as well as the early history of the radio industry
in which he played an important part. He has provided me
with many technical data sheets and magazine tear sheets on
the early equipment built by National and copies of his own
extensive writings. I must also recognize the cooperation of
the former employees of National who welcomed me into their
group; particularly Vincent and Edith Messina, Conrad
Espinola, Jack Ivers and Gene Simms. It has been a real
pleasure meeting these people. I would like to also thank
the management and employees of the present National Radio
Company for letting me browse through their files of the old
Nation Company.
Last, but certainly not least, my wife Martha has spent a
lot of time correcting and revising my manuscripts and
turned it into something readable. I can not conceive that this document is free of errors,
although it is based on the best evidence available to me. I
will be happy to hear from anyone having more accurate
information. |