The History of Lars Magnus
Ericsson
Lars Magnus Ericsson was, no doubt, the entrepreneur behind the early years
of telephone manufacturing. There were others of course, but it seemed that Ericsson was intent to succeed. Australia adopted as
its first standard wall telephone an Ericsson Fiddleback, which was built in Sweden to Australian specifications and after 1901
became known as the "Commonwealth Ericsson" (P.M.G. type No.1 - 131MW). These instruments date back to the mid 1890s,
and many were still in operation in regional areas in the 1960s.
Lars Magnus Ericsson opened his electro-mechanical
workshop in rented premises in Stockholm in 1876. His assets were not extensive
but consisted of an instrument-maker's lathe, a working capital of around 1000
Krona (A$50), and a twelve year old assistant. In the early days of his venture
he was involved in the repair of telephone equipment and other electrical
devices, but he soon began to produce improved equipment of his own design -
designs such as a dial telegraph instrument for use in railway systems, and a
fire telegraph system for small communities. Such developments won him
recognition for his work in this field. Ericsson's reputation for quality work
soon enabled him to obtain orders from a wide variety of public and private
authorities in areas such as telegraphy, fire protection, police administration
and railway systems.
Not long after opening his workshop, Ericsson brought in
a former workmate, Carl Andersson, as his first and only partner. Andersson, who
had studied abroad with the assistance of Government grants, contributed 1000
Krona to the enterprise, which then became known as L.M. Ericsson & Co.
Andersson continued as Ericsson's closest associate for many years, even after
the partnership was dissolved and the founder regained complete control of the
company.
In 1878, at the age of 32, Lars married Hilda Simonsson. Hilda
became an active colleague in the new and thriving business, and for a number of
years the winding of electromagnet coils using silk insulated copper wire was
given to Mrs. Ericsson, at first working alone and later with the help of
assistants. It has also been recorded that at times when Mrs. Ericsson was
confined to bed, she continued with the winding machine propped on her
knees.
The second major event of 1878 was the delivery of the first
telephones of Ericsson's manufacture. American-made instruments had been
introduced in Sweden the previous year, and some of them had already been in
Ericsson's shop for repair. The experience gained from the repair work, and with
studies Ericsson had undertaken after reading accounts of Bell's patent, enabled
him to design and produce serviceable instruments. Other orders followed in
close succession, and although the telephone continued to be regarded as a
luxury, Ericsson intensified his efforts to improve his instruments. The
breakthrough of telephony in Sweden occurred in 1880 when the American Bell
Company, using American equipment, constructed the first telephone networks. The
situation was critical for Ericsson, as he stood to lose virtually all of his
home market unless he and Andersson could demonstrate convincingly that their
equipment was equal, if not superior, to Bell's. The showdown came in 1881, when
the city of Galve on the Baltic coast was to be equipped with a local telephone
system. The Bell Company in Stockholm offered to install and operate a system
for 200 krona per subscriber per year, which was to be based on a five-year
contractual arrangement. Instruments from Bell and Ericsson telephones were set
up for testing, it was agreed by the 'testers' that the Ericsson telephones were
simpler, stronger and more attractive. There were also other contenders plying
their interests in the project.
Early in 1880 Ericsson had ten workmen on
his payroll. By 1884, the number was closer to one hundred. The growth of the
fledgling enterprise was to continue, albeit not without some setbacks, for more
than one hundred years. One of Ericsson's important contributions was to give
telephone instruments and their necessary components a light, attractive
appearance without any degradation of technical performance. In this respect,
Ericsson instruments differed substantially from the early equipment offered by
other manufacturers. Ericsson instruments produced during the last two decades
of the nineteenth century, widely imitated by other companies, are today
collectors' items par excellence, throughout the world.
Ericsson
contributed substantially to the design of early telephone exchanges, designing
and producing the first 'multiple desk' in Europe in 1884. Many of these
switchboards were used for more than half a century. In the concluding years of
his business life, Ericsson participated actively in the design and engineering
of the then new central battery system. However, he still insisted on continuing
product excellence and his standards were higher than those then considered
necessary for foreign competitors. The solid quality of Ericsson's work and the
elegance of his designs established his products as symbols of the finest
available.
By 1896 the company had approximately five hundred employees
in nearly all countries. At that time, Ericsson transferred the business of L.M.
Ericsson & Co. to a new corporation, Aktiebolaget L.M. Ericsson & Co.,
capitalised at one million krona. He served as Managing Director and Chairman of
the Board in the new corporation. He retired in 1900, but displayed an active
interest in the company until 1903, when he disposed of his shareholdings and
severed all formal connections with the enterprise he had founded and guided to
a position of international stature. He took up farming on an estate near
Stockholm in 1906 and died in December 1926, at the age of
eighty.
Click here for the history of L M Ericsson (the company)
Click here for the history of British Ericsson |