Winchester & Western

Franklin William Olin stands six feet high, weighs 240 lb., and is one of the best known blackpowder men in the country. Last week Powderman Olin, in his 72nd year, put through a deal which once would have seemed incredible.

Thirty-four years ago powder-wise Mr. Olin founded Western Cartridge Co. in East Alton, 111. Soon the company was well entrenched in the munitions field and from time to time since the War it has set the pace for the industry, continually improving its products. Its most notable recent accomplishment was Super X shells, with a slow-burning powder to give shotguns a more even explosion, a shorter shot-string. Super X was developed in the company's laboratories by President Olin's son John, a vice president.

Although Western is privately owned, the following facts are known: its assets are around $10,000,000; it has made a profit every year since 1908; its earnings averaged $1,432,000 annually for the five years ended with 1930; this year it may make a million dollars against $878,000 last year. In good times it employs 2,300 men; now it employs 1,500. It makes clay pigeon traps, sportsmen's targets and detonators as well as shells and cartridges, is affiliated with four powder companies. President Olin hates waste and laziness, does not like to hire baseball enthusiasts or golfers. The atmosphere in the plant is friendly and open, but whenever there is an explosion (on July 10, 1923, twelve employes were killed by one) first-hand information on the cause becomes scarce.

Last week massive President Olin was in New Haven. In the arms & munitions industry New Haven has long meant but one thing: Winchester. Since Civil War days Winchester has been one of the foremost names in the U. S. firearms business. Its .30-.30 became the standard deer rifle, its .405 caliber rifle was known from the day it was first sold as death to moose and elk, its 45-.90 probably killed more buffaloes than any other firearm. The company was one of the pioneers in the popular .22 rifle field, has also been a big maker of ammunitions. Since the War. Winchester's fortunes have fallen. It tried to beat guns into fishing tackle, roller and ice skates, cutlery, flashlights. It tried even to enter the chainstore business through purchase of Simmons Hardware Co. in 1922. Last winter it was unable to pay a bill owed to Thomas Albert Dwight ("Tad") Jones, Yale's longtime football coach, a coal dealer. On Jan. 22 the great Winchester Repeating Arms Co., whose stock (largely held by New Haven's Bennett family) was quoted at $3,000 a share during the War, passed into the control of a Federal receiver. Thus it was that last week Powderman Olin did not go to New Haven as a western manufacturer anxious to learn from Winchester, but as a munitions tycoon in his own right ready to buy and absorb a fallen rival.

President Olin's terms were simple: Western Cartridge would buy the Winchester business & plants (valued last year at $30,000,000) for $3.000,000 cash, $4,800,000 in preferred stock, $300,000 towards paying receivership expenses. Last week the Winchester reorganization committee consisting of Earle Bailie, president of Tri-Continental Corp. and partner of J. & W. Seligman & Co., and Medley G. B. Whelpley, president of American Express Bank & Trust Co., approved the offer. The plan then awaited the approval of the Federal receiver. When the deal is completed owners of Winchester first mortgage bonds will receive $50 cash and $28 par value Western Cartridge preferred stock for each $100 bond, while holders of Winchester debentures will get $38 par value preferred Western stock for each $100. President Olin last week assured New Haven that the Winchester business will not be moved to East Alton, that the big local plant may even be expanded.

Consummation of the deal leaves many a well-known name in the arms & munitions field. Nimrods are familiar with ammunition turned out by Peters, U. S., Remington, Federal. They also know the products of such firearms concerns as:

Remington Arms Co., Inc., older than Winchester by nearly half a century, always its peer. The first Remington rifle was made by Eliphalet Remington in 1816. He died in 1861, weakened by the strain of upping production for the Civil War (then famed gun: the Harper's Ferry musket). His three sons Philo, Samuel and Eliphalet Jr., carried on, but 23 years after the Civil War Marcellus Hartley bought control of the company, and his grandson Marcellus Hartley Dodge is now its chairman. Remington first developed the hammerless, solid-breech, repeating shotgun and the hammerless unloading shotgun, introduced the paper shotgun shell and the metallic cartridge in the U. S. It made the deadly little Derringer short barreled pistol, carried in the sash of many a gambler. Newest Remington shells and cartridges are Kleanbore, with potassium chlorate eliminated from the priming mixture, thus sparing the barrel from rust and pitting. Remington once made typewriters, was not successful and sold the division, now part of Remington Rand. Inc. At present Remington is the second biggest maker of cash registers but is negotiating to sell this business to National Cash Register, the biggest. It is the largest U. S. pocket cutlery maker. In September there were false reports that Remington would buy Winchester, that E. I. du Pont de Nemours & Co. would acquire a minority interest in the combination.

Savage Arms Corp., which has expanded into such by-products as washing machines, refrigerators, has also expanded in its principal business. Its most notable acquisition came last year with the purchase of A. H. Fox Gun Co. of Philadelphia, famed for high-grade shotguns. Savage also holds U. S. rights to the Lewis Machine Gun and the patents for the Driggs-Schroeder gun, used in the Army and Navy. This year the company has lost money, fortnight ago it passed its dividend.

Colt's Patent Fire Arms Manufacturing Co. makes such peaceful things these days as fuses, washers, buttons, switches, dish-washing machines, but still makes the pistol once famed as Judge Colt, advertised now as "the World's right arm." It also turns out the Thompson Sub-Machine Gun, used by many a police department. A submachine gun can fire 300 shots a minute, costs $175 to $200. Last year Colt earned $103,000 against $688,000 in 1929.

Parker Bros. is located in Meriden, Conn., hometown of Rosa Ponselle. The company turns out a double-barreled shotgun called Old Reliable, by many sportsmen regarded as the best U. S. gun. Craftsmanship is high in the Parker Bros, factory, production is limited in proportion to skilled workers available. The entire output is sold at the beginning of the year. Old Reliable costs from $55 to $1,500. Fox shotguns (see above) range from $36.50 to $1,000.

Francis Bannerman 6 Sons store in Manhattan does not make firearms or munitions but is to be reckoned with. There the collector can buy almost any type of weapon from battle-axes on. The South American revolutionist can buy good arms a little out of date such as Mausers and Springfields sold at Government auctions. Bannerman's is, in fact, the chief customer at U. S. Army auctions, buying saddles, old band uniforms, boots and flags. Its 350-page catalog contains such items as: "U. S. A. 30-ton Hydraulic Jack, used for mounting heavy cannon, $30." Once, at a South American country's urgent request, Bannerman's changed a passenger steamship into a battleship in one week. The store also has large supplies of ammunition for sale. These are kept on Banner-man's Island, in the Hudson near Cornwall, N. Y. The Bannerman family spend vacations at this castellated arsenal but very seldom have visitors. A careless cigaret would blow the place to smithereens.

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