Beloit Corporation traces its origins to 1855 when Orson E. Merrill founded an iron works in Beloit, Wisconsin. Over time, the company evolved to focus on building paper machines, becoming a leading manufacturer. In 1885, after changing ownership multiple times, the company was reorganized as Beloit Iron Works. It prospered by building paper machines across the Midwest and expanding internationally in the early 1900s. Beloit Iron Works continued innovating, growing significantly under the leadership of Elbert H. Neese in the mid-1900s as it diversified manufacturing and opened sales offices worldwide.
On aika lopettaa voivottelu ja haaveileminen siitä että vanhat ajat palaisivat myynnissä, ne eivät palaa. Nyt on tartuttava "härkää sarvista" ja hyödyntää muutos.
On aika lopettaa voivottelu ja haaveileminen siitä että vanhat ajat palaisivat myynnissä, ne eivät palaa. Nyt on tartuttava "härkää sarvista" ja hyödyntää muutos.
Chapter 9 Industrial Transformation in the North, 1800–1850 JinElias52
Chapter 9 | Industrial Transformation in the North, 1800–1850
243
CHAPTER 9
Industrial Transformation in the
North, 1800–1850
Figure 9.1 Five Points (1827), by George Catlin, depicts the infamous Five Points
neighborhood of New York City,
so called because it was centered at the intersection of five streets. Five Points
was home to a polyglot mix of recent
immigrants, freed slaves, and other members of the working class.
Chapter Outline
9.1 Early Industrialization in the Northeast
9.2 A Vibrant Capitalist Republic
9.3 On the Move: The Transportation Revolution
9.4 A New Social Order: Class Divisions
Introduction
By the 1830s, the United States had developed a thriving industrial and commercial
sector in the Northeast.
Farmers embraced regional and distant markets as the primary destination for their
products. Artisans
witnessed the methodical division of the labor process in factories. Wage labor
became an increasingly
common experience. These industrial and market revolutions, combined with advances
in transportation,
transformed the economic and social landscape. Americans could now quickly produce
larger amounts of
goods for a nationwide, and sometimes an international, market and rely less on
foreign imports than in
colonial times.
As American economic life shifted rapidly and modes of production changed, new
class divisions emerged
and solidified, resulting in previously unknown economic and social inequalities.
This image of the Five
Points district in New York City captures the turbulence of the time (Figure 9.1).
Five Points began as a
settlement for freed slaves, but it soon became a crowded urban world of American
day laborers and low-
wage workers who lived a precarious existence that the economic benefits of the new
economy largely
bypassed. An influx of immigrant workers swelled and diversified an already crowded
urban population.
By the 1830s, the area had become a slum, home to widespread poverty, crime, and
disease. Advances in
industrialization and the market revolution came at a human price.
244
Chapter 9 | Industrial Transformation in the North, 1800–1850
9.1 Early Industrialization in the Northeast
By the end of this section, you will be able to:
• Explain the role of the putting-out system in the rise of
industrialization
• Understand industrialization’s impact on the nature of production and work
• Describe the effect of industrialization on consumption
• Identify the goals of workers’ organizations like the Working Men’s Party
Northern industrialization expanded rapidly following the War of 1812.
Industrialized manufacturing
began in New England, where wealthy mer ...
2. Beloit Corporation
traces its beginnings to the year 1~5~ when
Orson E. Merrill came to Beloitfrom Vermont
and sfiarted a foundry at637 Third Street.
Within the year he took in a partner,
George Houston, and the firm became
known as The Merrill and Houston Iron
Works. its principal produce was a water
wheel developed by George Houston, but
the firm also could supply horseshoe nails,
iron and steel castings, saws, augers,
spokes and a variety of iron products.
Orson Merrill's brother, Sereno T.
Merrill, owned the Rock River Paper Mill
Company, situated close to Merrill and
Houston, on the Rock River. In '~~3~it1
Sereno Merrill asked his brother to make
parts for his paper machine, which had
been bought in New England. The parts
were highly satisfactory, and other local
paper mills soon were ordering parts from
Merrill and Houston. The quality was
good,and the parts did not have to come
all the way from the East as before. By
9ti(i;~ Merrill and Houston was producing
complete paper machines, buildingfour in
that year and several each year thereafter,
along with the water wheels and other iron
products.
Ownership of the company changed
several times in the next 20 years, and
finally management difficulties resulted in
receivership in 1~~2.To pay off creditors,
operations were continued, however, and
14 paper machines were built in that year,
eight in 'i~it~3 and five in 184.
Finally on January 7of1885,the assets
of the company were sold at auction. A
successful bid of $20,000 for part of the
plantand for the real and personal proper-
ty was made by J.D. Rexford of Janesville
on behalf ofthe creditors.
Then in July four employees of Merrill
and Houston associated themselves to
form a new corporation, and Beloit Iron
Works was in business. The new company
leased from Rexford most of the property
he had purchased,and operations recom-
menced.
Organizer and president of Beloit Iron
Works was Fred Messer, who had been
superintendent at Merrill and Houston.
Alonzo Aldrich, who had been draftsman,
became secretary; William H. Grinnell,
lathe operator, became treasurer; and
Noble 1. Ross,former boss erector, became
superintendent. The newly organized
company had 10 employees beside the
working officers, and it managed to get
nearly X20,000 in sales that first year.
Though there were no orders for paper
machines until 9881, orders for parts and
other products were so good that by
October of `i~t36, 48 persons were
employed. By 1889 about 100 men were
working and the officers were able to buy
all the properly of the old Merrill and
Houston works. The company prospered.
Beloit Iron Work advertised it could build
a paper machine every 30 days. But mis-
fortune struck unexpectedly in September
of 18~~ when Fred Messer died of pneu-
monia at the age of 40. Alonzo Aldrich,
then 31 years old,succeeded him as pres-
ident.
Growth continued asthe company built
complete machines, rebuilds and parts for
paper mills in the Midwest,Canada and as
far away as Texas. In 191 the company
made the first complete Yankee machine
ever built in the United States. In ~~3~3 it
was invited to build and install a paper
machine at the Chicago World's Fair, the
Columbian Exposition. The machine oper-
ated at the fair with a full crew and
received the United States Columbian
Award fora "very high standard of work-
manship and productiveness."
Demand for paper was growing rapidly
in this period, paper mills were prospering,
more machines and rebuilds were being
ordered, and the machines themselves
were larger. The first machines made in
Beloit had been assmall as30incheswide,
butin the1850s machines wider than 100
inches were being designed. So the com-
pany had to undertake an expansion pro-
gram. More land was acquired on the west
side of Rock River spreading outfrom the
island chat had been part of the original
Merrill and Houston property. In 18J6 a
new foundry was built as well as new
machineshopsand offices.The most mod-
ern equipment was installed, able to han-
dle the larger castings now required.
Buildings were of brick and glass, much
better than the wooden buildings they
replaced, and heated too. In this year
about 150 men were employed, working
on paper machines that sold for $25,000
to $30,000 each.
Technology waschanging rapidly. Good
quality paper could be produced on
machinesthatran much faster than before.
In ~i9f~0 a Beloit cylinder machine would
produce about 75 feet of paper per
minute;fourdrinier machines were making
400 to 500 feet per minute. In `iy90 a
cylinder machine was designed for 300
feet per minute and a fourdrinier machine
for 600.
Buyers of Beloit paper machines before
the turn of the century were generally
companies in the Great Lakes region, but
in ~$~7 a machine was shipped to Japan,
and two wentto China in 990a. Beloit had
become well-known in the industry, both
nationally and internationally,in part prob-
ably because of the machine at the
Columbian Exposition.
As the first years in the 20eh century
3. passed, though demand for paper was
growing, machinery builders had lean
years as well as good When BeloiYs shops
were not busy,time and money werespent
on improving facilities to be ready for the
next surge of others. Improvement in
design of the paper machine were always
important. Beloit machines continued to
break records in speed as well as produc-
tion. With the team ofoutstanding men he
hired and promoted overthe years,Alonzo
Aldrich kept the company in the forefront
ofthe industry.
One of the bright young men he hired
was Elbert H. Neese, just 30 years old,
who was vice-presidenC and sales manager
ofa competitive machine builder,and hus-
band of Laura, Mr. Aldrich's only child.
Elbert Neese, who already had 13 years
experience in the industry,quickly became
a strong factor in the management of the
company, and with his help Beloit
Iron Works increased sales rapidly. In 1916
when he came, sales were at their record
up to that time; in the next 15 years they
grew eight-fold.
Because ofthis surge in sales, and since
paper machines were being built ever
wider, again there was a need for rapid
expansion of facilities. The machine shop
was enlarged and tools were updated so
they could make machines wider than the
160 inches possible before. Employment
reached a peak of 550 in the year ~i~;3CB.
Money was spenton design improvement,
to increase the speed of production and to
improve product quality. Beloit led the
industry and became known for superior
machines with the most advanced design.
And the company worked with its cus-
tomers closely,to know their needs and to
help solve their individual problems.
Alonzo Aldrich died in 1931 and was
succeeded as president by Elbert Neese,
Sr. Neese was faced wieh the worst year of
the GreatDepression.Ordersfor complete
machines were non-existent, and parts
and repair orders were scarce. The work
force was reduced to 180. A slight upturn
occurred in 1g33, and gradual recovery
took place the fol►owing years until 9937
employment reached a temporary 640.
In 19~6'i Beloit Iron Works turned part
of its production to war materials, building
machine tools needed for war production.
By ~~~2 nearly 100% of its capacity was
being used for crankpin-turning lathes,
boring mills and powder mills. During the
next three years the company built nearly
100 78 ton Corvette engines for the U.S.
Maritime Commission. The .Iron Works
received the Army-Navy"E"for Excellence
Award in November of 1943 and three
times thereafter.
It was during the war period that the
National Labor Relations Board ordered an
election, and the International Association
of Machinists, A.F of L. was recognized as
bargaining agent for the machine shop
employees, the first union to be recog-
nized by the Iron Works.
To handle the pent-up demand for large
paper machines in the years following the
war, capacity was added, land was
acquired, the tail race which had separat-
ed the island was filled in,and new build-
ings and modern machine tools put into
operation. Beloit paper machines were
soon breaking records for speed and pro-
duction. In ~iJ~IY a tissue machine was fur-
nished which ran 2,800 feet per minute.
The world's largest cylinder machine was
installed to produce board at a speed of
over 500feet per minute. By'&~.ra~ the first
tissue machine wasdesigned foraspeed of
3,000 feet per minute.
The work force was growing rapidly
during this prosperous period. There were
about 1,000 employees in 1946; 1,300 in
~i~~7; and 1,450 in 1949. Employment
reached 1,690 in 1952,the year in which
Elbert Neese, Sr. became chairman and
Harry C. Moore, who had started work at
Beloit in 1J37,became president.
Harry Moore, dynamic and charismatic
like Mr. Neese,also shared his keen.inter-
est in expanding sales. The company
spread its wings with the opening in 1~~~
of a sales office in Paris to promote Beloit
machines throughout the world. During
the 19~~s, as much as a fifth of all ship-
ments were to foreign countries.
A WestCoastsales office wasopened in
Portland, Oregon, followed by one in
Mobile,Alabama. Purchase ofthe foundry
and machine shop facilities of the
Downingtown Manufacturing Company in
Pennsylvania in iJ55 was the first of a
series of acquisitions to increase produc-
tion and to diversify. Next was a factory in
Italy; then E. D.Jones &SonsCompany in
Pittsfield, Massachusetts, in y958. Beloit
machines were soon being manufactured
in England,Japan and Spain in production
facilities owned or licensed by Beloit.
Important in the development of the
company were the establishment of a
research facility in Beloit in 1955 and the
1961 completion of a Research Center in
Rockton, Illinois, a few miles from the
Beloit plant. Beloitwas enabled tofocus its
ability to innovate and to further enhance
its technological leadership.
Elbert H. Neese participated in theded-
ication of the new Research Center, but
died unexpectedly in August of 19G1. As
Chairman he had been influential in the
company until his death.
The name "Iron Works" no longer
seemed to describe the company's activi-
ties, and further diversification was
planned,so thecompany officially became
4. _... :._.......... ..._..
_..--1
"Beloit Corporation" on January 1,`i~~~,
A search for new products began as the
company tried its hand in a variety of new
endeavors,some related,some not related
to the paper industry. Licenses were
signed with firms in Poland and India for
building Beloit paper machinery. The first
turnkey projectfor an integrated pulp and
paper mill wascompleted for Orient Paper
Mills, India, in the mid-60s. Wheeler Roll
Company in Kalamazoo, Michigan, was
acquired in 'iJ66.
puring Harry Moore's leadership Beloit
becameone ofthe major paper machinery
builders in the United States, and with iTs
licensees, in the world. Even as the indus-
try became mature, sales continued to
grow almost every year. Beloit's technical
lead was strong, its patents numerous, its
innovations valued. Moore became chair-
man at the end of i9%4, the position he
held until his retirement in 1978. He was
succeeded by Elbert H. Neese,Jr., as pres-
ident, and later as chairman. When E. H.
Neese, Jr. was elected to the office of
chairman in iJ~l~b, Thomas C. McKie suc-
ceeded him as president.
Company growth continued with the
purchase of Lenox Machine Company,the
Rader Companies, the Roll Covering
Division of Raybestos Manhattan, and the
minority shareholdings in Beloit's overseas
plants. A new partnership was formed and
a manufacturing plant built in Brazil in
~9~3t~. Efforts at diversification were again
made in a variety of fields: insurance rail-
roading,agribusiness.
In October, 9885 Chairman Elbert H.
Neese,Jr. announced thatthe Neese fami-
ly had decided to sell Beloit Corporation.
"Divergent family financial interests" was
given as the reason for the sale.
In February, ~~F3fi it was announced
that Harnischfeger Corporation of
Milwaukee, Wisconsin, had purchased
Beloit Corporation for $175 million.
Harnischfeger's president, William W.
Goessel had previously been associated
with Beloit for 32 years. At the time he
joined Harnischfeger in 192, he was
Beloit Corporation's Executive Vice
President. Under Goessel's leadership,
Beloit Corporation took immediate steps
to diverC itself of its outside interests and
focused its attention on expanding its role
as a world leader in the design and manu-
facture of systems and equipment for the
Pulp and Paper Industry.
In November,1J~6 John A. McKay of
Akron, Ohio, was named Beloit
Corporation's president. He had previous-
ly been an executive with McNeil
Corporation and B.F. Goodrich Co. In that
same month, Beloit Corporation's long
time licensee,Mitsubishi Heavy Industries,
Ltd., Tokyo, announced that they had
acquired 20/ of Beloit Corporation in
partnership with Harnischfeger Industries,
Inc.
In an historic business move, Beloit
strengthened its global manufacturing base
in ~99~ by acquiring 80°/a equity in Polish
paper machine manufacturer, Fabryka
Masryn Papierniczych (PAMPA). Renamed
Beloit Poland S.A. in '~~.~;~, the purchase
marked the firsCforeign acquisition ofa pri-
vatized Polish firm under the country's
new, more liberal investment laws.
In the summer oftiJ9~,E3eloit complet-
ed the acquisition of refiner plate manu-
facturer )&L Plate Inc. of Waukesha,
Wisconsin. The company is today called
&L Fiber Services Inc.
John McKay was appointed senior vice
president and chief operating officer of
Harnischfeger Industries in November of
this year. His successor as Beloit's presi-
dentand chiefoperating officer,J. Weldon
Cole was named in January of1~.
Oasis Inc., a provider of optical align-
mentsystems and inspection services, was
acquired by Beloit in 19~~.The Company
has its headquartersin Rochester, NY.,with
offices in Florida, North Carolina;
Wisconsin, Washington, and Quebec,
Canada.
In 19 5,Beloitcompleted the purchase
of Rollin S.A, of France. Roblin had been a
long time licensee of Beloit Manhattan
offering roll covering and metal roll repair
services.
Tom Engelsman was appointed presi-
dent and chief operating officer of Beloit
Corporation in August, 195. He joined
Beloitfrom Landis and Gyr Corporation of
Switzerland where he had been president
and chief operating officer of their Energy
Management Corporation.
As part of the development of a world-
wide integrated pulping business, Beloit
announced in March i~~ that it had pur-
chasedthe assetsofthe IMPCO Division of
Ingersoll-Rand. IMPCO is a producer of
pulping equipment located in Nashua,
New Hampshire.
In June1986,Beloitand Eduard Kiisters
Maschinenfabrik of Krefeld, Germany,
formed a Joint Venture Company, Kusters
Beloit. To design and market a full line of
on- and off-machine calendars, and con-
trolled-deflection rolls on a worldwide
basis.
Today, Beloit and its affiliates, sales
offices, licensees and agents serve the for-
est products, pulp and paper industries
around the world. Its plants are located in
England, Italy, Canada, Brazil and the U.S.
with licensees in Japan, India, Poland and
Australia.
Total manufacturing area of all plants is
4,000,000 square feet. More than 8,000
people are employed worldwide.
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~c~,i'~P5t IC1C~U~~1'Ic`~'
ro~~ssing equipment
_.~~ in the world
Large newsprint machines,stretch the length of two football
fields from the headbox through the winder.They are as high as a two-
story building and weigh over 5 million pounds.These machines
form a sheet of paper wider than the street in front of your home.
Approaching speeds of 50 miles an hour,they have over 2,000
feet of paper in process at any given time. Although not as dramatic in
size as the newsprint machine,today's highspeed tissue machines
which manufacture facial and toilet tissues, do have the distinction of
being capable of forming a sheet of paper at speeds far exceeding
a mile a minute (6,600 fpm). Each and every one of us use nearly
800 pounds of paper products a year.
Modern, high speed tissue machine.
The unique Concept IV-MH headbox
delivers optimum sheet uniformity.
6. Beloit's pilot machine at its Research Center in Rockton,Illinois.
~~lo~t i~ads in pulp ar~d pa~erm~i~g technc~lo~y
E3eloit Corporation is responsible for nearly every major
papermaking advance over the last 50 years. The Research pilot
machine confirms Beloit's commitment to continued machinery
and process technical development.
~ 1• •
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Research and development is the key to Beloit's leadership in the design and
manufacture of pulp and papermaking equipmentand systems. buildingon thatleadership
clearly calls for a continuing commitment to finding scientific and engineering
solutions to problems that impede the progress of our customers worldwide.
Beloit's research and development centers in Illinois, Pennsylvania and Massachusetts,
USA,and Balton, England,are home to some of the best minds in the industry. Their
work produces technologies which improve quality and productivity while maintaining
customer profitability in an increasingly compefiitive industry.
B~~ITCORPORATION
r-
A Harnischfeger Industries Company
BELOIT CORPORATION,BELOIT,WISCONSIN U.S.A. 53511-6270 3