The McGraw Electric Company was a US manufacturer of electric appliances founded by

Max McGraw Max McGraw (1 February 1883 – 26 October 1964) was an American entrepreneur who founded McGraw-Edison and Centel. He financed marketing of the first domestic toaster, the Toastmaster. He was also a conservationist and hunter. Early years Ma ...

in 1900. It grew through mergers and acquisitions to become a major enterprise. The best known product may have been the

Toastmaster Toastmaster is a general term, prevalent in the United States in the mid-20th century, referring to a person in charge of the proceedings of a public speaking event. The toastmaster is typically charged with organization of the event, arrangin ...

pop-up toaster. In 1957 McGraw Electric merged with

Thomas A. Edison, Inc. Thomas A. Edison, Incorporated (originally the National Phonograph Company) was the main holding company for the various manufacturing companies established by the inventor and entrepreneur Thomas Edison. It was a successor to Edison Manufacturin ...

to form

McGraw-Edison McGraw-Edison was an American manufacturer of electrical equipment. It was created in 1957 through a merger of McGraw Electric and Thomas A. Edison, Inc., and was in turn acquired by Cooper Industries in 1985. Today, the McGraw-Edison brand is us ...

Early years

In the summer of 1900, aged 17, Max McGraw entered business as an electrician. He called his enterprise the McGraw Electric Company. His electrical supply business operated in the basement of a drug store in Sioux City. Most of his early work was wiring houses that were converting from gas to electricity. The business struggled at first, but in the second year gained profitable contracts from the Stockyards and the Peavey Grand Opera House in Sioux City. In 1902 the McGraw Electric Company moved into larger premises on Fifth Street, Sioux City. In 1903 McGraw organized the Interstate Supply Company in partnership with his father and four others, selling mill, railroad and electrical equipment. This business grew rapidly. In 1907 McGraw founded the Interstate Electric Manufacturing Company as a branch of the Interstate Supply Company. It became a separate corporation and focused on the manufacture of magnetos, telephones and power switchboards. In 1910 he merged the supply and manufacturing companies into the Interstate Supply and Manufacturing Company. In 1912 McGraw bought the Lehmer Company, a mill supply and electrical equipment manufacturer which he had used as a model for his earlier enterprises. He merged this company and the Interstate Supply and Manufacturing Company into the McGraw Electric Company, taking the position of President. The combined business had sales of more than $2 million that year.

Post World War I

In 1926 McGraw Electric sold its wholesale operation to

Westinghouse Electric and Manufacturing Company The Westinghouse Electric Corporation was an American manufacturing company founded in 1886 by George Westinghouse. It was originally named "Westinghouse Electric & Manufacturing Company" and was renamed "Westinghouse Electric Corporation" in ...

. McGraw bought Bersted Manufacturing in 1926, which made small appliances such as electric waffle irons, and made it a division of McGraw Electric. The founder, Al Bersted, continued as president of the division. In 1930 the division was sold back to Al Bersted. The Waters-Genter Company of Minneapolis had been formed in 1912, and manufactured a pop-up toaster for restaurants called the Toastmaster. In 1926 McGraw used his private capital to buy an interest in the company from Glen Waters and Harold Genter. He provided the capital needed to enter the household market in 1927, and that year acquired Waters-Genter. He sold his interests in the company to McGraw Electric in 1929. Waters and Genter remained in charge of the toastmaster division until 1938. McGraw Electric grew steadily through acquisitions. McGraw used to say, "Never buy a company unless it is making money or seems about to go broke," a philosophy that served him well. In 1938 McGraw built a new plant in

Elgin, Illinois Elgin ( ) is a city in Cook and Kane counties in the northern part of the U.S. state of Illinois. Elgin is located northwest of Chicago, along the Fox River. As of the 2020 Census, the city had a population of 114,797, the seventh-large ...

, which housed Toastmaster and other product lines. The facility, designed by the architects Olsen and Urbain, cost $250,000 to build. It covered on 25 acres of land beside the Fox River to the south of Elgin. During

World War II World War II or the Second World War, often abbreviated as WWII or WW2, was a world war that lasted from 1939 to 1945. It involved the vast majority of the world's countries—including all of the great powers—forming two opposin ...

(1939–45) the plant was used to make anti-aircraft shells and fuses.

Post World War II

In 1948 McGraw Electric purchased Bersted Manufacturing Company and Manning, Bowman & Co. McGraw made Al Bersted president. Eventually Bersted became CEO of McGraw Electric. The purchase include Bersted subsidiaries Swartzbaugh Manufacturing Company ("Everhot" appliances) and United Electrical Manufacturing Company ("Eskimo" fans). Other acquisitions over the years included Clark Water Heater, Buss Fuse,

Speed Queen In everyday use and in kinematics, the speed (commonly referred to as ''v'') of an object is the magnitude of the change of its position over time or the magnitude of the change of its position per unit of time; it is thus a scalar quanti ...

, Albion Humidifiers, Tropic Aire, Village Blacksmith, Allover Clippers, Duracrest, Spartan Bottle Warmers, Coolerator, Zero and Halo Lighting. As of 1948 the company had plants in Chicago, Elgin and Saint Louis. 1948 sales were $21,000,000 and net income was $2,712,000. In 1949 McGraw acquired the Line Material company of Milwaukee, which manufactured power line equipment. Line Material was based in Milwaukee and operated plants in several other cities. It had 1948 sales of $38,750,000 and net income of $3,108,000. In 1952 McGraw Electric merged with the Pennsylvania Transformer Company. In 1953 the McGraw Electric Company transferred its Toastmaster manufacturing operation to Missouri. After World War II

General Mills General Mills, Inc., is an American multinational manufacturer and marketer of branded processed consumer foods sold through retail stores. Founded on the banks of the Mississippi River at Saint Anthony Falls in Minneapolis, the company orig ...

began making home appliances such as electric irons, toasters and pressure cookers to maintain employment for workers who had been making supplies for the military. This line never accounted for more than 10% of the output of the Mechanical Division. In May 1954 McGraw Electric purchased the home appliances business from General Mills. By 1955 McGraw Electric had thirty one divisions, with gross annual sales of nearly $300 million. In 1956 McGraw arranged a merger with

The combined McGraw-Edison Company was launched in January 1957.

Acquisition timeline

Some of the acquisitions by McGraw Electric included:

References

Sources

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