History of the Linotype Company

Addendum

325 ADDENDUM CHAPTER 41 The X Project began in earnest in 1958 when sales of the Intertype Monarch were having a sig-nificant effect on Linotype sales. The Monarch was designed to run from paper tape and was affecting sales of the Linotype Comet, a popular machine for tape operation. About 60 percent of all Comets were sold with paper tape units. Estimates were that a new competitive machine would require an investment of $2.3 million with a projected 2.5year payback. A January 6, 1961 memo from VP of Domestic Sales, Paul Chisholm, to Linotype president Jack Keller, forecast annual sales: XX (Hi-Speed) 100 X Mixer 120 X Non-Mixer 285 Total 507 In the margin is a note from Chisholm to Market Research Department head Sam Blum: “I gather Mr. K. is disappointed with these numbers.” He was referring to Linotype president Jack Keller who wanted an increased revenue stream to garner enough cash for a big deal that was in the works— the Autolite deal that would result in the formation of ELTRA Corp. But they never even made those numbers. Actual Elektron shipments to all markets were: The Elektrons or Blue machines as the X machines were finally called, eliminated 56 percent of the product line. The black machine models 5, 29, 30, 31, and 32 were replaced with five versions of the Elektron: Elektron Elektron II Elektron Mixer Elektron ACE Elektron Meteor Production began on July 1, 1962. The first batch of machines used coarse-threaded screws and the vibration of the machine during operation caused them to come loose. Kits were prepared to drill new holes and provide replacement screws. It cost $42,000 to correct the problem. THE LAST LINOTYPE The last 23 years of the Linotype showed continuing decline. The number of machines per year spiked in 1949 as the economy improved after World War II. Newspapers and commercial printers were investing in new equipment, especially tape-driven linecasters. Word of phototypesetting was getting out and the number of Linotypes shipped per year declined. The number went up slightly, if erratically, from 1960 to 1966. But after that, the decline was precipitous until the decision was made in 1970 to cease U.S. manufacture. There were enough parts to cobble together a few more machines and on September 15, 1972 the last Linotype was packed for shipment in Plainview, NY. It was an Elektron. CHAPTER 102 The money machine: the Linotype company always did well financially. One of the best-kept secrets in the company was the revenue from fonts (typeface matrices or mats). Only a handful of people actually knew the real number. When I interviewed Mike Parker in 2010, he was still hesitant to reveal numbers, even though his memory was faulty. But then I found Sam Blum’s file archives . He saved many of the executive memos from the 1950s through the 1960s. It is the only place where font revenues are detailed. 1962  80 1963 208 1964 470 1965 450 1966 480 1967 282 1968 206 1969 205 1970 110 1971  51 1972  38 326 REVENUE FONTS PERCENT 1954 $19,785,000 $5,610,000 28% 1955 $21,645,000 $5,997,000 28% 1956 $23,849,000 $6,735,000 28% 1957 $23,355,000 $7,135,000 30% 1958 $21,329,000 $6,663,000 31% 1959 $22,922,000 $7,187,000 31% 1960 $24,050,000 $7,500,000 31% 1961 $23,870,000 $7,700,000 32% 1962 $28,390,000 $9,025,000 32% Font revenue was about 50 percent of all revenue year after year (it was about 15 percent at Intertype). But from the 1950s on the percentage dropped to about 30 percent. Mats wore out and had to be replaced. New fonts had to be acquired to keep up with competitors. But few new fonts were being released as phototypesetting was introduced. The big seller was Helvetica which accounted for most of the Linotype font revenue in the 1960s. In the order department, I worked for a short time at the counting desk. I was taught to use a comptometer and counted the number of mats on every order. At 4:30pm I wrote the total number on a small slip of paper and handed it to the department supervisor, Tom Connelly, who gave it to the head of the domestic order department, John Foster, who gave it to the Order Department (domestic and international) manager, Norman...