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Telsmith History:
It was 1906 when Thomas L. Smith and Paul W. Post agreed to form the Smith & Post Company. Observing the ever increasing demand for the automobile, they foresaw the need for better roads and a growing demand for aggregates. Equipped with a vision to serve the aggregate industry, Smith & Post Co. was incorporated on October 30, 1906 with $100,000 in initial Capital. The following history features some of the highlights on the road to building the Telsmith Inc. we know today.
By 1906, Thomas Smith was already a successful businessman. He had previously formed the T. L. Smith Company to produce the Smith Tilting Concrete Mixer at a factory on 32nd and Locust Streets in Milwaukee, Wisconsin. In order to control costs for the startup company, Smith & Post decided to share the 32nd & Locust manufacturing facility and also market through the T. L. Smith company sales network.
The first Smith & Post product was a new crusher design, the Symons "Pillar Shaft" gyratory crusher. Approximately 50 units were put into service before the end of 1908. By 1910, new products were added including a "Dodge" jaw crusher, a rotary screen, an elevator conveyor and portable plants.
In 1910, Paul Post retired from the company and sold his stock to Thomas Smith. Charles Smith, the eldest son, had been helping the company with legal matters in Chicago, moved back to Milwaukee and began helping his father with the various T. L. Smith operations. By 1914, Charles wanted a challenge and approached his father, requesting a transfer to the "crusher shop". Charles was given a free hand to run the crusher shop as he saw fit.
Charles immediately started to move the Smith & Post Company towards independence from the T. L. Smith companies. In 1915, he changed the company name to Smith Engineering Works. Simultaneously he began to build his own independent sales and distribution network. The brand name Telsmith, coined from his fathers name T. L. Smith, was adopted and applied to several products.
As WWI was drawing to a close, Charles paid off all bank loans clearing the company of any debt. With the company poised to take advantage of post war construction, Charles was named president of Smith Engineering Works in 1918.
Charles’ hard work paid off through strong growth. By the mid 1920’s Smith Engineering simply needed more space than the 32nd and Locust plant could afford. In 1924 property was purchased on Capitol Drive for a new manufacturing facility. The Capitol Drive plant would go through several expansions but remain the primary production facility up into the 1980’s.
As aggregate markets developed, the demand for smaller ½” stone increased. This brought about revisions in aggregate plant designs, incorporating closed circuits and tertiary crushing. New crusher designs were needed that could perform reliably in these new plants. Smith Engineering continually invested in new product development, creating new cone crusher designs including the Reduction crusher, the Telsmith Cone, the Intercone crusher and finally in the mid 1930’s, the Gyrasphere crusher. The Gyrasphere would become one of the most successful crushers in history. Many of these units are still in service around the world today.
Adequately addressing worldwide demand for Telsmith products was a challenge for the Capitol drive plant and sales network. To resolve this, several license agreements were established; allowing various manufacturers around the world to produce and market certain Telsmith products. By the 1950’s, companies such as Pegson ltd., Francaise Blaw-Knox, Samuel Osborn and Hadfields Steel Works found success marketing Telsmith products in the British Commonwealth countries, France, Africa and Australia.
As WWII came to a close, the American post-war economy was about to take off. Smith Engineering would need to
invest new capital in order to fund additional growth. In the fall of 1945, the company went public with one third of the outstanding shares being offered to investors.
Charles Smith had led the company from 1914 right up to his death in 1951. From the meager beginning at 32nd & Locust, he created an independent company of world wide renown. In 1951, Donald Barnes took over as President of Smith Engineering.
In 1956 Dweight Eisenhower signed legislation creating the interstate highway system. This fueled demand for aggregate production and still larger crushing equipment. By the 1960’s, Telsmith 4248 jaw crushers and 66” Gyrasphere crushers were in service and 600 ton per hour crushing plants were becoming common.
In 1960 Donald Barnes retired and Gerald Smith, the son of Charles Smith, was named President. A few months later, Gerald agreed to sell Smith Engineering Works to the Barber-Greene Company, creating Telsmith - Division of Barber-Green. The synergy between the two companies was immediately apparent and employment at Telsmith expanded 65% during the 1960’s.
In 1970, Gerald Smith passed away suddenly. His replacement as President of Telsmith was Jake Smith who shared the same last name but was no relation.
Jake inherited a strong company that had once again outgrown its brick and mortar. In 1970 Telsmith acquired additional land in Mequon, WI., a community 15 miles north of Milwaukee. Construction began on a new manufacturing plant which opened in 1973. Telsmith would operate both the Capitol Drive and Mequon manufacturing plants until 1993.
Jake Smith retired in 1984. In 1985 Bob Stafford was appointed V.P. of Operations for Barber-Greene and General Manager of Telsmith Division.
The 1980’s brought very rough times for Barber-Greene and Telsmith. By 1986 Barber-Greene was approaching bankruptcy and was looking for a buyer. Don Brock, president and CEO of Astec Industries, Inc. put together a package and acquired Barber-Greene, including the Telsmith operation, in 1987.
(Don Brock and Bob Stafford enjoy Telsmith's 100 anniversary celebration in 2006)
Don Brock maintained a vision of decentralized management for the group of companies he was forming. Bob Stafford was appointed President of Telsmith, Inc. and allowed to work independently. Bob doubled Telsmith sales to $ 36 million in 1987, the first year under Astec.
Bob Stafford led Telsmith through the 1990’s which included expanding the Mequon plant, closing the Capitol Drive plant and numerous new product introductions. As Telsmith sales continued to grow, Don Brock asked Bob to explore new acquisitions that would compliment Telsmith, forming an Astec Aggregate Group of companies. Several companies were acquired including KPI, JCI, BTI and PEP.In 1999 Bob Stafford was promoted to Vice President of the Astec Aggregate Division.
Today, Telsmith is headed up by Rick Patek. Rick joined Telsmith in 1976 and worked to help build a company we can all be proud of. No doubt that if Thomas and Charles Smith were alive today, they would also be proud of what Telsmith has become.
(Rick Patek - President Telsmith, Inc.)
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