Allis-Chalmers

Allis-Chalmers was a U.S. manufacturer of machinery for various industries. Its business lines included agricultural equipment, construction equipment, power generation and power transmission equipment, and machinery for use in industrial settings such as factories, flour mills, sawmills, textile mills, steel mills, refineries, mines, and ore mills.

The first Allis-Chalmers Company was formed in 1901 as an amalgamation of the Edward P. Allis Company (steam engines and mill equipment), Fraser & Chalmers (mining and ore milling equipment), the Gates Iron Works (rock and cement milling equipment), and the industrial business line of the Dickson Manufacturing Company (engines and compressors). It was reorganized in 1912 as the Allis-Chalmers Manufacturing Company. During the next 70 years, its industrial machinery filled countless mills, mines, and factories around the world, and its brand gained fame among consumers mostly from its farm equipment business's orange tractors and silver combine harvesters.

In the 1980s-1990s, a series of divestitures transformed the firm and eventually dissolved it. Its successors are Allis-Chalmers Energy and AGCO.

Author-photographer Randy Leffingwell (1993) aptly summarized the firm's origins and character. He observed that it "grew by acquiring and consolidating the innovations" of various smaller firms and building upon them; and he continued that "Metal work and machinery were the common background. Financial successes and failures brought them together."

Former marketing executive Walter M. Buescher (1991) said, that Allis-Chalmers "was a conglomerate before the word was coined." Whether or not it is literally true, that Allis-Chalmers predated the sense of "conglomerate" meaning a widely diversified parent corporation, Buescher's point is valid: Allis-Chalmers, despite its common theme of machinery, was an amalgamation of disparate business lines, each with a unique marketplace, beginning in an era when consolidations within industries were fashionable but those across industries were not yet common.

Edward P. Allis was an entrepreneur who in 1860 bought a bankrupt firm at a sheriff's auction, the Reliance Works of Milwaukee, Wisconsin, which had been owned by James Decker and Charles Seville. Decker & Seville were millwrights who made equipment for flour milling. Under Allis's management, the firm was reinvigorated and "began producing steam engines and other mill equipment just at the time that many sawmills and flour mills were converting to steam power." Although the financial panic of 1873 "caught Edward Allis overextended" and forced him into bankruptcy, "his own reputation saved him and reorganization came quickly," forming the Edward P. Allis Company. Leffingwell said, "He set out to hire known experts: George Hinkley, who perfected the band saw; William Gray, who revolutionized the flour-milling process through roller milling; and Edwin Reynolds, who ran the Corliss Steam Engine works." Allis died in 1889, but under his sons (Charles Allis and William Allis) and the other principals, the firm continued to prosper, and by 1900 it had grown to become one of America's largest steam engine builders.

Thomas Chalmers was a Scottish immigrant to America who came to the U.S. about 1842. By 1844 he was at Chicago, Illinois and had found work with P.W. Gates, whose foundry and blacksmithing shops produced plows, wagons, and flour-milling equipment. The Gates firm "built the first steam-operated sawmill in the country at a time when Chicago was the leading producer of milled lumber in the country." In 1872, Thomas Chalmers founded the Fraser & Chalmers firm to manufacture mining machinery, boilers, and pumps. By 1880 steam engines were part of the product line and by 1890, the firm had become one of the world's largest manufacturers of mining equipment. Thomas Chalmers's son, William James Chalmers, was president of the company from circa 1890 to 1901. Meanwhile, the Gates Iron Works, with Chalmers family involvement, had become a manufacturer of crushers, pulverizers, and other rock and cement milling equipment.

Another Scottish immigrant family, the Dickson family, came to Canada and the U.S. in the 1830s. By 1852, they had organized a small machine shop and foundry (Dickson & Company) in Scranton, Pennsylvania. In 1856 Thomas Dickson became its president, and in 1862 the firm incorporated as the Dickson Manufacturing Company. By 1900 they were building boilers, steam engines, locomotives, internal combustion engines, blowers, and air compressors.