Before the days of solid-state electronics, televisions emitted images through the interaction of cathode ray tubes, more commonly called TV tubes. This is the story of Holyoke's first electronic equipment manufacturer, the New England Electronics Components, Inc., referred to as NEECO.
The story of NEECO in Holyoke almost didn't happen. In March 1958, a building permit was granted by the Town of Agawam, Massachusetts, for NEECO to construct a $108,000 plant in a rezoned area off Silver Street.
Within one month of starting construction, NEECO changed its plans and agreed to build a plant in Holyoke in the Springdale Industrial Park. The property was purchased from Holyoke Water Power Company on April 25, 1958.
Within five years of its beginnings, the industrial park was nearly filled. Companies already operating in the park included: Acme Chain, Adell Chemical, the producers of Lestoil, Holyoke Wire Cloth, Wrap-King, Gravure Engraving, and Holyoke Fabrics.
The new building at 717 Main Street would provide 18,750 square feet of space on 50,000 square feet of land. This would allow for future expansion. An estimated 100 employees would work at the plant. Johnson Brothers of East Longmeadow was selected as the contractor.
A groundbreaking ceremony for the $181,000 project was held on April 28, 1958. The plan was to have the factory completed and operating by September 1 of that year.
In anticipation of production, Del Padre Supply Co. of Springfield ordered 1,000 television tubes for its eight outlets in Southern New England. One Del Padre Supply outlet operated at 276 High Street, adjacent to Holyoke City Hall.
Over $100,000 worth of equipment was added to the factory in September 1958. Production was projected at 10,000 television tubes per month. The company's key advantage over its competition was the two-year warranty for its tubes, twice the duration offered by other producers.
Once the tube production was established, the company planned to enter the power transistor field.
In rolling out its tubes, NEECO collaborated with Lestoil on a marketing strategy. For a limited time, a sample bottle of Lestoil would be attached to the television tube box. A catchy slogan was created: "For a clearer picture, use a NEECO picture tube that's Lestoil clean."
In January 1960, the company announced it would be adding 20,000 square feet to its factory, in effect, doubling its size. New equipment would also be needed, along with trailer trucks. The number of employees would increase from 70 to 170.
The company was offering 300,000 shares of its stock at $1 per share to fund the expansion. George Rodgers had announced that company sales were $1 million in 1959. Until this time, all the stock was owned by Mr. Rodgers, and after selling the 300,000 shares, he would retain a controlling interest in the company.
A week later, on January 22, 1960, NEECO was selected as the sole distributor of Dumont Television picture tubes east of the Mississippi River. NEECO's plan was to open a wholly owned subsidiary to handle this facet of the business.
In February 1960, a building permit was granted to construct a 3,500 square-foot brick and cinder storage unit.
In March 1961, the company announced an operating loss of $109,957 for its year ending August 31, 1960.
The following month, the Securities and Exchange Commission (SEC) sought an injunction in Federal Court to prevent the company from selling additional shares of its common stock. The allegation was that the company had not registered its stock offering with the SEC, and failed to report an $18,503 loss for its year ending August 31, 1959, and the larger loss the following year. It was estimated that $260,000 shares of stock were sold to 1,400 people within three months of January 1, 1960. The injunction was granted by Judge Wyzanski.
In June 1961, the company workers conducted a "wildcat" strike seeking to renegotiate their current contract.
Work orders were slowing, as the workers, when agreeing to return to their jobs, were informed there would be no work until the following week.
In September 1961, the realty wing of NEECO, John Steven Realty Inc., sold the real estate to 333 Columbus Ave. Inc., which in turn sold it to Clinton Bernard Snyder.
In November 1961, George Rodgers resigned and sold his NEECO stock in exchange for an extended lease to operate the Howard Johnson Motor Lodge at 333 Columbus Ave. in Springfield.
A three-member trust was soon formed to protect the NEECO operation. This included the creditor bank, Hadley Falls Trust Co., new stockholder Rene Lucier, and the realty owner George Bernard Snyder of Teaneck, N.J.
On March 9, 1962, the company closed its doors, except for a select few to complete existing orders. The Hadley Falls Trust Co. withdrew its additional financing, which had kept the company in business. Twenty-two employees were impacted by the closure.
The company was placed into an involuntary bankruptcy on March 15, 1962. Its attempt to seek a delay in the foreclosure sale was denied by the court. The sale occurred on March 26, 1962, and included machinery, equipment, television picture tubes, office equipment, two trailer trucks, and two pickup trucks. The real estate was sold later that year.
Citations:
Newspapers.com (paid subscription): Citations: Holyoke (Massachusetts) Transcript & Transcript-Telegram; Springfield (Massachusetts) Republican; Bennington (Vermont) Evening Banner; The Hartford (Connecticut) Courant; Fort Lauderdale (Florida) News; Berkshire (Pittsfield, Massachusetts) Eagle; publication dates and pages are shown.
Holyoke, Massachusetts, Assessors' Office, online MapGeo
Registry of Deeds, Hampden County, Springfield, Massachusetts
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