In 1852, brothers Henry and Clem founded H & C Studebaker in South Bend, Indiana, intent on building wagons and carriages. Their first contract arrived in a few weeks, yielding $175. Nearly a year passed before the second came. Younger brother, John learned of fast profits to be made in California gold mines, and headed west. Once there though, he began building wheel barrows instead.
At home, the wagon business picked up, but without capital, materials could only be purchased as necessary, which limited wagon production to just a dozen a year. Then in 1857, the Mishawaka Wagon Works needed help with an Army contract for several hundred wagons. The Studebakers vowed to build 100 in 6 months. More men were hired and trained, and large drying kilns were built which could cure the lumber in days rather than yeas. The job was finished in three months, without any significant profit. However, Studebaker was now prepared for large-scale production. They just needed cash.
In 1858, John returned from California to visit his brothers, and found a busy, but struggling family business. Henry was ready to quit and start farming, so John used some of his wheel barrow earnings to buy Henry a share of the business. A fourth brother, Peter ran a general store in Goshen. In the winter of 1860, he agreed to sell wagons from there, and built sheds to display them. He quickly found that he could sell as many wagons as his brothers could build.
Large Union orders allowed Studebaker to expand their operation regularly throughout the Civil War. Also, a growing number of settlers were heading west, promising an even brighter future for the midwestern company. In 1868, they incorporated, becoming the Studebaker Brothers Manufacturing Company.
By 1872, the operation was vast. New wagons and carriages clogged the railways which led from the factory in every direction. Then, a $70,000 fire damaged the facility. Coincidently, an economic depression followed, and then another fire. This one caused $300,000 damage, destroying two thirds of the factory. The Studebakers perseverence resulted in the world’s largest wagon factory.
Henry passed away in 1895, followed by Peter in 1897. When the Spanish American War began a year later, the Army asked Studebaker if they could build 500 wagons in 36 hours. All 500 shipped within 24 hours. 1899 sales topped $3,900,000.
In 1900, the horseless carriage was a controversy first, and an invention second. To many (including Clem and, to some degree John), it was considered simply an expensive toy. However, a second generation of Studebaker executives (consisting mostly of sons and sons-in-law of the company’s founders) supported it. Opposition to the automobile was fading rapidly, when Clem collapsed in 1901, and soon died at his home.
The first Studebaker automobile, the Electric Runabout appeared in 1902. Five days after its first sale, Studebaker celebrated their 50th anniversary. Studebaker sold twenty such electric vehicles the first year, and a record $4,000,000 worth of wagons. These numbers changed during the second fifty years the company existed. In 1952, Studebaker celebrated a century of production. The company survived for several more years, yielding some of the most memorable designs in an era of memorable designs. Today, Studebaker fans are many. To understand their loyalty, it is best to speak with someone who witnessed Studebaker’s beginnings firsthand, 150 years ago.