|Headquarters||New York City, United States|
|Products||Telephones, Central office switches, computers, electrical and electronics parts, and all other telecommunications related products supplied to Bell System companies|
Western Electric Company (sometimes abbreviated WE and WECo) was an American electrical engineering and manufacturing company, the supplier to AT&T from 1881 to 1995. It was the scene of a number of technological innovations and also some seminal developments in industrial management. It also served as the purchasing agent for the member companies of the Bell System.
In 1856, George Shawk purchased an electrical engineering business in Cleveland, Ohio. In 1869, he became partners with Enos M. Barton and, later the same year, sold his share to inventor Elisha 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 the 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 over patent rights, between Western Union and the Bell Telephone Company, ended in 1879 with Western Union withdrawing from the telephone market and Bell acquiring Western Electric in 1881.
Western Electric was the first company to join in a Japanese joint venture with foreign capital. It invested in Nippon Electric Company, Ltd. in 1899. Western Electric held 54% of NEC at the time. Their representative in Japan was Walter Tenney Carleton.
Western Electric secretly purchased controlling interest in a principal competitor, Kellogg Switchboard & Supply company, in 1901, but was forced by a lawsuit to sell.
In 1920, Alice Heacock Seidel was the first of Western Electric's female employees to be given permission to stay on after she had married. This set a precedent in the company, which up until that time 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. From a memoir of her life, she writes 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. How far and how fast the policy was expanded is shown by the fact that a few years later women were given maternity leaves with no loss of time on their service records."
In 1925, ITT purchased the Bell Telephone Manufacturing Company of Brussels, Belgium and other worldwide subsidiaries from AT&T, to avoid an anti-trust action. The company manufactured rotary system switching equipment under the Western Electric brand.
Early on, Western Electric also managed a thriving 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 was half-owned by Western Electric; the other half by AT&T.
In 1960, NASA awarded Western Electric a contract worth over $33,000,000 for construction and engineering of the Mercury tracking network, and to provide the training of the remote-site flight controllers and Mercury control center operations personnel.
Development of a monopoly
All telephones in areas where AT&T subsidiaries provided local service, all components of the public switched telephone network (PSTN), and all devices connected to the network were made by Western Electric and no other devices were allowed to be connected to AT&T's network. AT&T and Bell System companies were rumored to employ small armies of inspectors to check household line voltage levels to determine if non-leased phones were in use by consumers.
Western Electric telephones were owned not by end customers but by the local Bell System telephone companies—all of which were subsidiaries of AT&T, which also owned Western Electric. Each phone was leased from the phone company on a monthly basis by customers who generally paid for their phone as part of the recurring lease fees. This system had the effect of subsidizing basic telephone service, keeping local phone service inexpensive, under $10 per month, including the leased phone. After divestiture basic service prices increased, and customers were now responsible for inside building wiring and telephone equipment. The Bell System had an extensive policy and infrastructure to recycle or refurbish phones taken out of service, replacing all defective, weak, or otherwise unusable parts for new installations. This resulted in an extraordinary longevity of Western Electric telephone models and limited the variety of new designs introduced into the market place.
AT&T also strictly enforced policies against using telephone equipment by other manufacturers on their network. A customer who insisted on using a phone not supplied by the Bell System had to first transfer the phone to the local Bell operating company, who leased the phone back to the customer for a monthly charge in addition to a re-wiring fee. In the 1970s when consumers increasingly bought telephone sets from other manufacturers, AT&T changed the policy for its Design Line telephone series by selling customers the phone housing, retaining ownership of the internal mechanical and electrical components, which still required paying AT&T a monthly leasing fee.
Until 1983, Western Electric telephones or their components could only be leased by subscribers and never resold, and were repaired by the Bell System operating companies at no charge to the customer. This led Western Electric to pursue extreme reliability and durability in design to minimize service calls. In particular, the work of Walter A. Shewhart, who developed new techniques for statistical quality control in the 1920s, helped lead to the legendary quality of manufacture of Western Electric telephones. Starting in 1983, Western Electric telephones could be sold to the public under the brand name American Bell, a newly created subsidiary of AT&T. One of the terms of the Modification of Final Judgment in the Bell System divestiture procedures prohibited AT&T from using the name Bell after January 1, 1984; prior to this, AT&T's plan was to market products and services under the American Bell name, accompanied by the now familiar AT&T globe logo.
Employing a nation
In 1905, Western Electric began construction of the Hawthorne Works on the outskirts of Chicago and which, by 1914 had absorbed all manufacturing work from Clinton Street and Western Electric's other plant in New York. Later large factories included the Kearny Works in Kearny, New Jersey, Columbus Works in Columbus, Ohio and Kansas City Works in Lee's Summit, Missouri. By 1966, thirteen "works" plants were operating including:
- Hawthorne Works, Cicero, Illinois (full plant)
- Kearney Works, Kearny, New Jersey (full plant)
- Baltimore Works, Baltimore, Maryland
- Allentown Works, Allentown, Pennsylvania (new electrical equipment)
- Indianapolis Works, Indianapolis, Indiana (consumer telephone sets)
- Winston-Salem, North Carolina Works (defense applications)
- Merrimack Valley Works, North Andover, Massachusetts (transmission equipment)
- Oklahoma City Works, Oklahoma City, Oklahoma (payphones, switching equipment)
- Omaha Works, Omaha, Nebraska (wire)
- Columbus Works, Columbus, Ohio (switching equipment)
- Atlanta Works, Atlanta, Georgia (undersea cables, later fiber-optic cables)
- Shreveport Works, Shreveport, Louisiana (business and consumer telephone sets)
- Kansas City Works, Lee's Summit, Missouri (electronics, switching equipment)
- Pittsburgh, Pittsburgh, Pennsylvania 260 employees in 1966, established 1904.
- Engineering Research Center (ERC), Princeton, New Jersey (R&D on manufacturing technologies)
In 1926, Western Electric issued the first Bell System telephone with a handset containing both the transmitter and receiver in the same unit. Previous telephones had been of the candlestick type which featured a stationary transmitter in the desktop set or the wall mount, and a hand-held receiver to be placed on the user's ear. This desktop unit was initially constructed by shortening the candlestick neck to about an inch in length and placing a handset cradle on the top. This was the A1 mount, which was replaced within 2 years by the B1 mounting set, which featured an integrated design in streamlined shape. It still had the same circular footprint of the candlestick, which proved too unstable when dialing numbers, and was henceforth replaced with a wider design using an oval footprint, the D1 mounting base in 1930.
Concurrently to the mechanical advances, the electronic makeup of Western Electric telephones saw advances in sidetone reduction. Sidetone is an electronic feedback phenomenon by which the users of the telephone would hear their own voice very loudly in the receiver. This caused most users to lower their voice volume to unacceptable levels. The first production volumes of both the B1 and D1 mounts contained only the older electronics, without sidetone suppression. Such telephone models where designated with the assembly code 102 (Model 102 telephone), while later models starting in 1930, containing anti-sidetone circuitry, were the Model 202 telephone set. These early desktop telephones did not have any electronics within the mounting base itself, but instead relied on an external subscriber set (subset) containing the ringer with gongs, and the electronics (induction coils, capacitors) to interface with the telephone network. These subscriber sets were typically mounted on a wall near the operating location for the phone.
The year 1936 brought the introduction of the Model 302 telephone, the first Western Electric instrument that combined the desktop telephone mount with the subscriber set and ringer in one unit. The design was conceived by the engineering firm of industrial designer Henry Dreyfuss. and it was the mainstay of American telephone service until 1949, when it was followed by the Model 500 telephone, which would become the most extensively produced telephone model in the industry's history. It was continually updated over time, reflecting new materials and manufacturing processes, such as quieter and smoother dial gearing and a printed circuit board for the network electronics. The Model 500 was discontinued in 1986, in favor of a Touch-Tone version, Model 2500, that employed in-band signaling of the dialed digits, using Dual-Tone Multi-Frequency (DTMF). DTMF was generally referred to by the trademarked name, Touch-Tone.
In 1929, Western Electric also entered as a competitor in early cinema sound systems. It created the Western Electric Universal Base, a device by which early silent cinema projectors could be adapted to screen sound films. It also designed a wide-audio-range horn loudspeaker for cinemas. This was estimated to be nearly 50% efficient, thus allowing a cinema to be filled with sound from a 3-watt amplifier. This was an important breakthrough in 1929 because high-powered audio valves were not generally available.
In addition to being a supplier for AT&T, Western Electric also played a major role in the development and production of professional sound recording and reproducing equipment, including:
- the Vitaphone system which brought sound to the movies;
- the electrical recording technology adopted by record companies in the late 1920s (despite the popular electrical system used by Autograph Records and its manager, Orlando R. Marsh);
- the Orthophonic phonograph, an acoustical phonograph with a flat frequency response tailored for reproduction of electrically recorded disks;
- the Westrex optical sound that succeeded it for production and release prints;
- the Westrex magnetic sound (mono and stereo) that succeeded it for production and release prints;
- the Westrex stereo variable-area optical sound that succeeded it for low-cost stereo release prints;
- the Westrex cutter and system for recording stereophonic sound in a single-groove gramophone record that was compatible with monophonic equipment.
Western Electric's switching equipment included the development of the Electronic Switching System (ESS). The No. 1 ESS was first installed in 1963. The 4ESS was the first digital toll switching system, implemented in 1976. Finally, in 1981, the first widespread digital switching system, the 5ESS was implemented throughout the United States.
In 1950, at the start of the Cold War, Western Electric was selected to build the first demonstrator for the SOSUS anti-submarine sound surveillance system. Later, the company was prime contractor for the Safeguard anti-ballistic missile system, which operated briefly from 1975.
Western Electric also invested heavily in improving processes and equipment to manufacture their products. In 1958, the company established the Engineering Research Center (ERC) near Princeton, New Jersey. With a charter distinct from Bell Labs - but staffed with equally-capable talent - the ERC focused on manufacturing-related rather than product-related research. Here, more than 400 researchers and engineers worked to bring new manufacturing technologies to the production environment. Their developments included computer-driven mathematical models and related statistical quality-control systems to improve production flow and logistics, novel metal-forming techniques, circuit board assembly automation, fiber-optic waveguide manufacturing techniques, application of lasers for industrial processes and early efforts in cleanroom robotics for semiconductor production. In the early 1970s, some of the first practical Ion Implanters to make integrate circuits were also developed at ERC and later deployed at Western Electric's chip-making factories.
Although the ERC would later merge with Bell Labs, it was one of the first research facilities solely dedicated to the advancement of the manufacturing sciences. The ERC - along with AT&T's Corporate Education Center (CEC) adjacent to it - was shuttered by the late 1990s, victims of the deregulation of telecommunications, shrinking revenues from long-distance calls and accelerating innovation in telephone equipment on a global scale.
- Western Electric were pioneers of the scientific management of Frederick Winslow Taylor.
- Walter A. Shewhart developed the control chart at the Hawthorne Works in 1924.
- The Hawthorne experiments in industrial productivity were conducted there from 1924 to 1936.
- Joseph M. Juran pioneered the use of statistical analysis for quality assurance at the Hawthorne Works.
- Western Electric's reputation for sound management was such that in 1949 President Truman requested that Western Electric manage a major defense laboratory, Sandia National Labs.
The end of Western Electric
As of January 1, 1984, the new AT&T Technologies, Inc. assumed the corporate charter of Western Electric, which was then split into several divisions, each focusing on a particular type of customer (e.g. AT&T Technology Systems, AT&T Network Systems). Telephones made by Western Electric prior to the breakup continued to be manufactured and continued to be marked "Western Electric", with the Bell logo absent, or "hidden" by metal filler inside of all telephone housings and most components, including new electronic integrated circuits with the "WE" initials. Electronic Switching Systems, outside plant materials, and other equipment produced for the consumption of the RBOCs continued to be marked "AT&T Western Electric" well into the 1990s.
Cost-cutting measures resulted in the consumer telephones, including the Trimline being redesigned and "modernized" in 1985, as well as more plastic being used in place of metal on the 500 & 2500 series phones, as well as the Princess. In 1986, the Indianapolis Works telephone plant closed, and US production of AT&T single line home phones ended. Business telephones and systems continued production in the Shreveport Works plant until 2001. Home telephones were redesigned and production was moved to Hong Kong, Singapore, China, and Bangkok. Western Electric no longer marked housings of telephones with "WE", but continued to mark the modular plugs of telephone cords with "WE".
Western Electric came to an end in 1995 when AT&T changed the name of AT&T Technologies to Lucent Technologies, in preparation for its spinoff. All modular telephone plugs were now marked with "HHE" enclosed in an oval. Lucent became independent in 1996, and sold more assets into Advanced American Telephones, Agere Systems, Avaya, and Consumer Phone Services. Lucent itself merged with Alcatel, forming Alcatel-Lucent. Western Electric's Structured Cabling unit, once known as AT&T Network Systems or SYSTIMAX, was spun off from Avaya and is now part of CommScope.
Since the demise of Western Electric, telephone equipment design and manufacturing is an open market place in which numerous manufacturer compete. As a result, modern telephones are now manufactured in Asia, generally using less expensive components and labor.
Some telephone subscribers never purchased their existing telephones after the AT&T breakup, and continue to lease their existing Western Electric models from QLT Consumer Lease Services, formerly known as AT&T Consumer Lease Services. Such subscribers have paid leasing fees for their telephones far in excess of the purchase price, but the phones are perceived by some users to be superior to telephones commonly made today in aspects of durability and sound quality. Today, many of these Western Electric telephones have become collector's items.
Western Electric's audio equipment from the 1920s and 30s, designed to be used in movie theaters, is now prized by collectors and audiophiles due to its quality construction and sound reproduction. This includes its massive horn loudspeakers designed to fill a large theater with sound from a relatively low-powered tube amplifier.
- AT&T Corporation
- Graybar Electric Company
- Lucent Technologies
- Bell System
- Reading Works
- Historical and Notable Sites in Allentown, Pennsylvania
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