Becoming more involved in the young radio industry, Philco introduced a line of “A-B” battery eliminators in August 1925. Called “Socket-Power” units, they allowed the owner of a radio to operate the set from the light socket without the need of batteries. These Socket-Powers were Philco’s first major sellers.

It is interesting to note that, while more “modern” rectifiers were available at the time, such as the Raytheon “B” cold cathode rectifier tube and the UX-216, Philco’s Socket-Powers used older technology – electrolytic (wet) rectifiers. As Philco was primarily a battery manufacturer at the time, this was a natural progression for them.

Only the “B” batteries were actually eliminated in the Philco Socket-Powers. In a paper read before the Radio Division of the National Electrical Manufacturers Association in Hot Springs, Virginia, June 1, 1927, Walter E. Holland (who by now was Philco’s Chief Engineer) admitted that “the ‘A’ battery is still with us, as a part of the…’A’ socket power unit.” He went on to claim that the costs involved with providing rectified, filtered “A” current were prohibitive. Instead, a Philco “A-B” socket power included not only a small “A” battery, but also a built-in trickle charger to keep it from becoming discharged.

Philco’s reasoning for the use of electrolytic rectifiers instead of the then available tube rectifiers was, according to Holland, that they were “free of noises such as often develop in certain types of tube rectifier [sic].” He went on to explain that the use of tube-type rectifiers which required a high input voltage to produce a given output voltage under load caused breakdown of the filter condensers then in use, and that electrolytic rectifiers were inexpensive, had a long operating life, and required a lower input voltage for a given output voltage.

In spite of the outdated electrolytic rectifiers, however, Philco’s Socket-Power units sold very well; 400,000 units were sold in 1926, and 500,000 in 1927. This resulted in sales of nearly $13 million for Philco in 1926, and over $15 million in 1927.
In April 1927, Philco began a weekly broadcast each Friday night over four stations in the eastern part of the USA: WJZ, New York; KDKA, Pittsburgh; WBZ, Springfield, MA, and WBZA, Boston. The broadcasts, along with Philco’s constant print advertising, fulfilled the intended purpose of further increasing sales.

On July 20, 1927, Philco’s manager of sales promotion, Sayre M. Ramsdell, sent out a letter to Philco’s dealers informing them of a new weekly broadcast to begin on Friday, September 16th. Called the Philco Hour, the program featured nationally known soprano Jessica Dragonette, and the Philco Orchestra conducted by Harold Sanford. Henry M. Neely, otherwise known as “Philco’s Old Stager,” served as host of the weekly broadcast, which was carried initially over 26 stations, scattered across the country, on the NBC radio network. (The show’s theme song, “Mem’ries,” was written by Neely and Sanford.)

With the Socket-Power units, Philco helped fill the demand to operate radios from the light socket. However, a new development from the Radio Corporation of America (RCA) in August 1927 would finally make it practical to build a radio that could be operated from the light socket, without batteries or battery eliminators. The new UX-226 and UY-227 tubes were designed to use AC on their filaments; the 227, in fact, used a separate cathode rather than using the filament as the cathode.

Attempts had been made at producing a practical AC tube had been done previously, notably the Kellogg 401 AC tube. However, RCA’s two new tubes proved more practical, and met with immediate acceptance as most of the large radio manufacturers introduced new models which used these tubes, along with self-contained power supplies, all designed to run from household current. Radio batteries – and battery eliminators, including Philco’s popular Socket-Power units – had suddenly become obsolete.

Philco was left holding the proverbial bag. They had just released a new line of Socket-Powers for the 1927-28 selling season, and they had forecast sales of over one million units for that season.

In an attempt to remain in business, Philco executives made a decision that the company would manufacture its own line of radio receivers. Early in 1928, they went to work to make this come about. One aspect that made this job somewhat easier was that Philco already had a network of dealers and distributors in place, which the company had cultivated since the battery and Socket-Power days.

In order to manufacture radios, however, Philco needed licenses from RCA and the Hazeltine Laboratories, holders of most of the major radio patents at the time. On February 10, 1928, Philco purchased the Wm. J. Murdock Company of Massachusetts for $100,000 in order to obtain the necessary RCA and Hazeltine licenses. Then, Philco proceeded to buy the Timmons Radio Products Corporation of Philadelphia, manufacturer of battery eliminators and “Timmons Talker” loudspeakers.

Access to the important radio and speaker patents now having been taken care of, Philco turned its attention to the design of an actual radio receiver. A Philco engineer, David Earnshaw, happened to be an amateur radio operator. Earnshaw had previously done design work on the Socket-Power units for Philco. Therefore, Earnshaw was placed on the radio design team along with Philco’s Chief Engineer, Walter E. Holland. The circuit, which Philco’s engineers devised, was based on the popular Neutrodyne circuit, which had originally been designed at Hazeltine Laboratories in 1923. Philco added some improvements to the design, such as fully shielded coils, a phonograph jack on the front panel, provision to use the house wiring as an antenna by means of a condenser connected between one side of the line and a “LOC” (local) terminal, and a small variable condenser which would be called a “Range Control.” This condenser, designed by Holland and Earnshaw and patented, was a combination fine tuning control and local-distance switch; on strong signals, it could be turned counter-clockwise until it clicked, shorting itself (and one stage of RF amplification) out.

Philco’s new radio circuit would be called the “Neutrodyne-Plus.”

The set used seven tubes; three stages of radio frequency amplification, a detector, two stages of audio amplification, and yes, a rectifier tube for the built-in power supply. This is where the Philco design was really ahead of the competition. The Philco power supply was built in as part of the main chassis, not separate from it as was the case with many other AC-operated receivers of the time. And, despite Walter Holland’s cheerleading for electrolytic (wet) rectifiers less than a year before, the new Philco radio used a vacuum tube rectifier.

Philco made its plans to enter the radio manufacturing business known to prospective dealers in a letter dated April 17, 1928. It is interesting to note that in this letter, Sayre M. Ramsdell, Philco’s manager of sales promotion, described their new radio as follows:
“…the result of 3 years research on the part of Philco radio engineers. It will be an A C [sic] Electric, light socket set, ENTIRELY DRY; no batteries, no eliminators, no acids or liquids of any kind.”

An obvious about face from their earlier promotion of electrolytic rectifiers.

Page 1 of Sayre Ramsdell’s April 17, 1928 letter announcing Philco’s entry into radio manufacturing. Illustration courtesy Thomas Spiegle.

Page 2 of Sayre Ramsdell’s April 17, 1928 letter announcing Philco’s entry into radio manufacturing. Illustration courtesy Thomas Spiegle.

While all of this was going on, Philco had not forgotten the cabinets which their new radio would use. Albert Carl Mowitz was hired to design the furniture model cabinets; Hollingsworth Pierce designed the basic metal table model. Most set manufacturers were using metal for their table model radios at the time, and Philco would be no exception in 1928. However, what really set Philco apart from other manufacturers was the use of color – and painted flowers – on its table model cabinets.

Apparently, it was originally intended to offer the table model radio in only the two-tone Spanish Brown colors. However, someone within the Philco organization must have felt that the use of color would make the new radio models attract more attention. It was decided to not only use color, but painted artwork as well. Philco hired local free-lance artist Matild Messaros, who had previously created hand-painted designs on lampshades and furnishings. Out of many designs submitted by Miss Messaros, four were selected – two-tone red with a Chinese motif; grey/black and two-tone green, both with flowers; and gold with red, green and blue lotus leaves.

As the date approached for the new radio line to be announced, someone asked Miss Messaros if she would mind being referred to as “Mademoiselle” Messaros in upcoming Philco ads. She gave her consent. Thus, in Philco advertisements showing its new 1928 radio lineup, you will notice the name “Mademoiselle Messaros” being mentioned in conjunction with their colorful hand-painted radios.

Today, Philco’s 1928 lineup is known simply as the “511 Series,” as all of the models use the same circuit. When the new Philco Radio was introduced to the public in June 1928, the final lineup was as follows:

• 511/521 – Spanish Brown table model
• 512/522 – Mandarin Red table model
• 513/523 – Labrador Grey table model
• 514/524 – Nile Green table model
• 515/525 – Impressionistic (gold with lotus leaves) table model
• 531/541 – Lowboy console
• 551/561 – Highboy console

(The first model number indicates a set designed for 50-60 cycle AC; the second model number is a set designed for 25 to 40 cycle AC.)

In addition to these radio models, matching metal speakers could be purchased for the various table model radios, or a Console Grand speaker table could be used instead, which was large enough to place the radio on top of it.

A Model 571/581 radio-phonograph was announced, but apparently never put into production as it was not mentioned in Philco advertisements of the period, nor is it chronicled in Philco Furniture History, an in-house document giving pictures, specifications, production figures and selling prices of nearly all of the cabinets Philco produced for its radio receivers. No Model 571 or 581 receivers are known to exist.

Philco sold 96,000 radios in 1928, putting them at 26th place in the industry for the year. Dollar sales dropped somewhat, to just under $12,500,000. Philco, testing the new radio market, purchased most of its supplies from outside sources initially. Vice-President and General Manager, James M. Skinner, felt that Philco had been successful in 1928. He stated at the time that Philco’s goals were to produce a good radio and “establish a reputation for quality.”

However, it should be noted that another manufacturer, which specialized in battery eliminators and horn speakers, entered the radio manufacturing business in 1928. The Grigsby-Grunow Company of Chicago, Illinois (formerly Grigsby-Grunow-Hinds), which owned the Majestic trademark, came out of nowhere in 1928 to suddenly become a leading radio manufacturer, challenging the then-current industry leader, Atwater Kent, for the top spot in the nation. The Majestic radios used a new development – electrodynamic speakers. And those early Majestics produced a booming bass sound, which helped attract many customers. Philco, on the other hand, used high-impedance magnetic speakers, which were based on Timmons Talker design. These produced a thinner, “tinnier” sound.

Philco quickly corrected that problem with the release of an improved Neutrodyne-Plus in January 1929, the Model 86/82. This modification of the 511 circuit added a push-pull audio output circuit driving a new electrodynamic speaker of their own. Some 511 Series models remained in the model lineup, including the consoles and the 511/521 Spanish Brown table model, but the color sets (and the high costs associated with painting the designs on each one by hand) were now gone.

At some point during the 1920s, prior to the October 1929 crash, a stock promoter approached Philco about offering a $50 million stock issue to the public. Philco, privately held from the beginning, declined. Vice-President James M. Skinner was quoted as saying, “H**l, the company isn’t worth half that.”

1929 was the year Philco began sponsoring broadcasts of the Philadelphia Orchestra, under the direction of Leopold Stokowski. Its radio receivers began to be known as “Balanced-Unit Radio.” Philco print advertisements would show two pictures – one badly distorted, to illustrate the distorted sound of competing sets, and one clear picture, meant to illustrate Philco’s “balanced radio.”

Volume – as in sales volume – was now the name of the game at Philco. When they priced their sets just below the competition, James Skinner earned the ire of the radio industry, as well as the nickname “price cutter.” Skinner balked at the title, insisting that Philco was merely giving the radio buying public more for its money. Nevertheless, Philco was out to increase sales, and in order to help accomplish this goal, the company decided to switch to mass production. Prior to this, each radio was assembled by hand, one at a time. It cost Philco $1 million to recondition its plant, another $1 million to install a conveyor system, and an additional $2.5 million for supplies and materials.

‘It’s A Wow’ says Frank T. McIntyre (left), originator of the ‘Traveling Salesman’, upon receiving a new 1929 Philco model 86 console from Philco. Henry M. Neely (right), Philco’s Old Stager and host of the Philco Hour, presented the set to McIntyre. In the middle are Lucille White and Virginia Martin, dancers with McIntyre’s company. January 15, 1929.

This young mother and baby pose with a 1929 Philco Highboy inside an unidentified radio store. Other Philco and non-Philco sets may also be seen here. Notice the Philco advertising at left and right. Circa summer 1929.

For the first time, Philco went into debt. Two Philadelphia banks lent the firm a total of $3 million to make the mass production conversion possible. The new assembly line was finished in April 1929, but had to be shut down in May due to many technical problems, part of which was the necessity to rebuild the entire conveyor belt system. During the three months which followed, Philco’s accounts receivable rose from $1,600,000 to $5,500,000. Radios were sold to wholesalers on credit, which in turn sold them to the dealers on credit. Philco was waiting for money to come in. By the time production resumed in August, Philco not only had a three month backlog on radio orders due to their continuing advertisements, they found themselves needing more money to pay suppliers and meet payroll (by now the company had grown to 5,000 employees). Having already spent the $3 million previously borrowed, they now needed an additional $4 million to meet immediate needs.

One of Philco’s bankers, Carl H. Chafee of Philadelphia’s First National Bank, then used his influence to arrange a meeting between Philco’s President, Edward Davis, Vice-President and General Manager, James M. Skinner, Treasurer, John S. Thomas, and Joseph Wayne, Jr., President of the Philadelphia National Bank, largest banking institution in the city. Although a personal friend of Davis, Wayne was initially skeptical, fearing that the then-exuberant stock market might break. Skinner agreed that it might, and then proceeded to explain at length Philco’s methods of production and inventory control, and their ever-increasing sales. After some hesitation, Wayne agreed to lend Philco the money if Davis, Skinner and Thomas would personally guarantee the loan. The three men enthusiastically assigned all of their personal holdings, both inside and outside Philco, to the bank; and received the money they needed to remain in business.

Although Joseph Wayne had (correctly) expressed some concern about the stock market at the time, none of these men knew for certain what would occur only two months later – the October 29 stock market crash, and the Great Depression which would follow.

Ever since Philco entered the radio manufacturing business, the company had held meetings every Monday morning in a very spartan boardroom with high ceilings, around a large, worn, secondhand table which had been purchased in 1915. Reports from Philco distributors across the country were analyzed, and executives could then accurately set production for the new few weeks, thus avoiding overproduction. It was overproduction that hurt many other radio manufacturers after the October 1929 stock market crash, and caused many radio dealers to go out of business. Philco, with its Monday morning meetings, avoided overproduction, this protecting its distributors and dealers, further increasing its stature.

Radio circuitry advanced rapidly through the late 1920s. By the time Philco released a new line of radios in June 1929, two new tubes were available – the UY-224 screen grid tetrode, and the UX-245 audio output triode. The new Model 65 took advantage of both new tubes, while the new Model 87 was a slight improvement of the Neutrodyne-Plus Model 86, switching to the 245 tubes in place of the 171A tubes used previously in order to achieve higher audio output power.

The new line used completely new cabinets, save for the Model 65 table model which continued to use the Hollingsworth Pierce-designed Spanish Brown metal cabinet first used with Model 511. A young man named Edward L. Combs was hired as Philco’s new cabinet designer. He produced many styles over the next few years for Philco, including new highboy and “De Luxe” highboy consoles for the 1929-30 model lineup. The June 1929 lowboy was the work of yet another designer, David Roberts.

New radio circuits continued to be invented. RCA engineers had designed an automatic volume control (AVC) circuit, but it required the use of an extra tube. Harold Wheeler of Hazeltine Laboratories designed a simpler AVC circuit which used a UY-227 triode as a combination second detector and AVC diode. Philco incorporated the new Wheeler invention into a new radio which they released in October 1929. The nine-tube Model 95 Screen Grid Plus included many of the latest radio innovations – screen grid RF amplifier tubes, 245 power output tubes, and the Wheeler AVC circuit in one very fine receiver. AVC kept the receiver volume at a constant level, while preventing “blasting” of strong local stations when tuning across the band.

A new set designed to operate only on 110 volt direct current (DC), Model 40, and a new seven-tube AC set, Model 76, was added to the Philco lineup by January, 1930. Model 65 was discontinued soon after, but the popular Model 87 remained in the lineup.
By the end of 1929, Philco had moved up to third place in the radio industry, behind Majestic and Atwater Kent. They sold over 400,000 radios that year and were able to repay all of their bank loans by March of 1930.