The talking machine world (Jan-June 1928)

ISO The Talking Machine World, New York, June, 1928 Edison Combines With Splitdorf Bethlehem, Entering Radio Field {Continued ticular significance for the reason that although Mr. Edison has been watching radio developments carefully, and is understood to have experimented somewhat in that direction himself, he hesitated to make any premature move until sure that the results achieved would be completely satisfactory from every angle. Moreover, it is the first time that Mr. Edison, or the company controlled by himself and his family, has ever entered into a merger of interest with another concern. from page 32a) careful research that we were willing to enter into the manufacture and sale of radio appliances and equipment. In our research work along these lines it was but fitting and proper that we should develop an arrangement with the Splitdorf companies, who themselves have been pioneers in this field." Walter Rautenstrauch, speaking for the Splitdorf interests, said that the "association of the Edison and Splitdorf interests in the field of radio and electrical phonographs was but the natural outcome of the experience and objectives of these organizations to take a strong position in this important electrical industry. The long years of experience of both companies as manufacturers of electrical products, together with their research and engineering laboratories, as well as their merchandising facilities, will contribute materially to the stabilization of what has now become an important industry." Arthur L. Walsh states that the new line of radio sets and phonograph-and-radio combinations is already in production. A detailed announcement of the new models and specifications will be forthcoming shortly. Naturally the line will be the last word in radio efficiency and the cabinet designs will be noteworthy examples of the furniture art. The two companies are to retain their physical identities and separate financial status. Charles Edison, son of Thos. A Edison, and the president and director of Thos. A. Edison, Inc., together with Arthur L. Walsh, vicepresident and general manager of the phonograph division of the Edison interests, will become directors of the Splitdorf Co. Chas. M. Schwab, the steel magnate, is a director of the Splitdorf Co., his brother, Edward H. Schwab, being chairman of the board of that company. Walter Rautenstrauch, president of Splitdorf, Fellow of the New York Academy of Sciences, and a professor at Columbia University, will become consulting engineer of Thos. A. Edison, Inc. The combined patents of both companies, as well as the licensing arrangments with the Radio Corporation of America, will be pooled for manufacturing purposes, it is stated. Thos. A. Edison, Inc., pioneer in the manufacture of phonographs, established by Thos. A. Edison, the inventor of that instrument, not only makes phonographs and the Ediphone, but storage batteries and many other products, in its plants at Orange, N. J., valued at more than $7,000,000, and with about 5,000 employes. The Splitdorf Co., which was founded in 1858, and at present represents a merger of the Splitdorf Electrical Co. and the Bethlehem Spark Plug Co., in addition to making successful radio receivers and speakers, also enjoys a large production of electrical equipment for automobiles, electric motors, etc., and operates a number of plants located in Newark, N. J.; Bethlehem, Pa.; Detroit, Cedarburg, Wis., and Toronto, Ont. The exact manner in which the new arrangement will work out in relation to the development of phonograph and radio products will be announced at an early date. In commenting upon the new arrangement Chas. Edison said : "Thomas A. Edison, Inc., has always conducted long and careful researches before introducing any product bearing its name to the public. The radio art is a new one and it was not until we felt assured from long and Otto Heineman to Devote Entire Time to Okeh Phonograph Corp. {Continued from page 32/) with the phonograph needle industry for many fidence in the future years and is a leader in this important branch of the industry. Mr. Heineman's history during the past fourteen years has kept pace with the phonograph industry except that he and his company surmounted conditions which proved impossible handicaps to many other manufacturing organizations. In December, 1914, Mr. Heineman commenced business at 45 Broadway, occupying a few rooms for the merchandising of talking machine accessories. For ten years prior to that time he had been managing director of Carl Lindstrom A G, one of the world's foremost phonograph and record manufacturers. In 1915 the business was incorporated as the Otto Heineman Phonograph Supply Co. and the name was changed in October, 1919, to the General Phonograph Corp. In the twelve and a half years that Mr. Heineman guided the destinies of the General Phonograph Corp. he gained for his organization the esteem and respect of the entire industry as well as a tremendous sales volume that increased year after year. The General Phonograph Corp. was very successful financially until the business panic of 1920 struck a vital blow at the phonograph industry, with similar conditions throughout 1921 and 1922. At that particular time the General Phonograph Corp., in common with other organizations in the industry, was heavily involved in an expansion program which included the construction of new buildings and other important development plans and on June 30, 1920, the company found itself indebted to bondholders, merchandise creditors and banks to the amount of $4,500,000. Referring to those days of problems and troubles, Mr. Heineman very modestly says: "With the help of able associates who had con the General Phonograph Corp. has paid in the years following the crisis all outstanding bonds, all outstanding merchandising creditors in full and the remaining banking indebtedness to-day is only a comparatively small amount and this banking indebtedness is well secured." To those who have followed the destinies of the General Phonograph Corp. over a period of years it is a known fact that Mr. Heineman was primarily responsible for the remarkable record made by the General Phonograph Corp. in liquidating its indebtedness of over $4,000,000. It was through his faith in the industry and under his inspirational efforts that every factor of the organization performed commercial and financial miracles which won the commendation of bankers and industrialists as well as the phonograph industry itself. In advising the trade that in the future he will devote all of his activities to the Okeh Phonograph Corp., Mr. Heineman concluded as follows: "I am glad to have an opportunity to thank all my friends in the United States as well as those abroad for the wonderful help, they have given me all these years and especially for the help extended me during those difficult times when friendship was most needed." New Gapehart Chicago Office The Capehart Automatic Phonograph Corp., Huntington, Ind., manufacturer of the "Orchestrope," coin-operated phonograph, has established its Chicago district office in the Lyon & Healy building, 64 East Jackson boulevard, in suite 613-614. F. W. Barnholdt, Chicago district manager, is in charge of the new office, where the "Orchestrope" is on display. 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