Federal Pacific Electric Corporation Explained

Federal Pacific Electric was an electrical products manufacturer based in Newark, New Jersey.^{[1] [2]} It was one of the "big 5" electrical equipment manufacturers in the United States in the mid-20th century.^[3]

Its offices were located at 150 Avenue L at Herbert Street in Newark, New Jersey.^{[4] [5]} It had many satellite locations, including sales and manufacturing plants throughout the United States, and some in partnership overseas.^{[6] [7] [8]}

The company, in its earliest form as Federal Electric, a lighted sign company, was active starting in 1901. It later made home and kitchen appliances, neon signs, police sirens, and circuit breakers. All but the latter lines were spun off or sold off to other companies until the 1940s, leaving the core business and a new name, Federal Pacific Electric. It continued in this form until the 1980s, when it was absorbed by Reliance Electric, which in turn was purchased shortly thereafter by Exxon.^[9]

Federal Pacific is best-known for a line of circuit breaker equipment called Stab-Lok. These circuit breakers and electrical panels were used extensively in residential and commercial construction starting in circa 1951. The product design was flawed and had a high failure rate, which was initially discovered by Reliance Electric engineers when Reliance purchased Federal Pacific.

Timeline

• 1901: Federal Electric Company founded in Chicago by John Gilchrist, James Gilchrist, and John Goehst. The company makes electrically luminated store signs.^[10]
• 1902-1909: Insull's utilities group gets control of the company, expanding it to manufacture goods that increase demand for electrical generation and supply.^[11] Products include washing machines, vacuum cleaners, and small kitchen appliances.
• 1902-1910: Georges Claude finds a way to produce large quantities of neon for industrial use. The production of neon signs becomes viable. They are practically superior to incandescent-lit signs that Federal Electric produces.
• 1915: Signs division starts producing sirens.^[12]
• 1927: Federal Electric organizes Claude Neon Federal Companies division to sell neon advertising nationwide. They own many of the United States patents for the signs.
• 1929: Spins off Claude Neon to competitor Rainbow Luminous Products, the other regional licensee of Georges Claude's patents. (At least one other Claude licensee remains independent, in California.)
• 1930s: Remainder of sign and sirens division spun off from Commonwealth Edison (Insull) as independent company Federal Sign and Signals Corporation, which was renamed to Federal Signals Corporation in 1975.
• 1946: Canadian subsidiary Pioneer Electric formed in Manitoba.^{[13] [14]}
• 1948: Reduces size and employment of Hartford, Connecticut facility, a legacy Federal Electric plant.^[15]
• 1949: Federal Electric Company patents a new type of circuit breaker panel.
• 1950: Registers STAB-LOK trademark in the United States.
• 1951: Begins marketing the Stab-Lok line of panels and breakers under the Federal Electric Products (FEP) name.^{[16] [17]} Note: It is unclear whether Federal Pacific bought FEP, or was a name change, or a successor company. It appears to be a name change, with "Federal (Pacific) Electric Company" appearing as the name in several newspaper reports.
• 1952: Affiliated US company Federal Electric Products (FEP) registers the STAB-LOK trademark in Canada. FEP would later be absorbed into the parent company.
• 1954: Opens Scranton, Pennsylvania factory.^[18] Executive offices at 50 Paris Street in Newark.^[19] Spins off sign and siren division as a separate company. James Gilchrist retires from the new Federal Sign and Signal Corporation, dies the following year.^[20]
• 1957: Purchases Roller-Smith in December. Roller-Smith is an electrical distribution and measuring device manufacturer located in South Bethlehem, Pennsylvania. It dates to the 1908 consolidation of the local Switchboard Equipment Company and the Whitney Electrical Instrument Company of Penacook, New Hampshire.^{[21] [22]} Roller-Smith plant is closed and operations move to existing Federal Pacific plant in Scranton.^[23]
• 1958: Maintains 14 factories and 70 sales offices.^[24] The Eastern Division of the company has four plants between Newark and Scranton.
• 1959: Consolidated engineering in Newark, eliminating Scranton research.^[25]
• 1960: Consolidates control of Cornell-Dubillier Electric Company 1960,^[26] a move engineered by the presidents of the two companies, Thomas M. Cole and Octave Blake.^{[27] [28]} Cole is a youthful executive, a member of the family that owned Cole Electrical Products of Long Island City. The Cole family invested heavily in their supplier, leading to Thomas Cole joining the company.^[29] The firm is involved in a price fixing antitrust scandal with the other "big 5" electrical equipment manufacturers, as well as dozens of smaller manufacturers.
• 1962: Cornell-Dubilier manufacturing moves to the Newark plant; South Plainfield plant closed.^[30]
• 1964: Expanded to 22 United States plants with plans to open a 23rd. There are four plants in Europe and one in Australia. Frank H. Roby is president of the company. Expansion to Mexico. Canadian subsidiary Pioneer Electric name changed to FPE-Pioneer.
• 1965: An executive shuffle takes place. Frank Roby leaves and is replaced by chairman Thomas Cole. Roby was responsible for the Cornell-Dubillier unit, which is now headed by Glenn E. Ronk. Italian partner Sace has its president, Leopold Ferre, named to Federal Pacific's board.^[31]
• 1970: U. S. Smelting buys Federal Pacific.^[32] The company's formal name is United States Smelting, Refining and Mining Company.^[33]
• 1972: Parent company U. S. Smelting renames itself to UV Industries.
• 1976: UV Industries appoints Harry E. Knudosn president of its Federal Pacific Electric Company subsidiary.^[34]
• 1979: Reliance Electric buys Federal Pacific Electric from UV Industries for $345 million in March.^{[35] [36]} UV Industries liquidates its remaining assets to avoid a large capital gains tax assessment on the sale. Its largest shareholder files suit to block the plans, but they are ultimately consummated.^[37]
• 1980: Reliance Electric engineers identify flaws in the Stab-Lok line in June, and halts distribution of the product in July. The devices are listed as meeting Underwriter Laboratories (UL) specifications, but fail some of UL-specified tests. Reliance files suit in Federal court to undo the sales or to receive $450 million in damages.
• 1983: Investigation completed by the Consumer Products Safety Commission (CPSC) finds that there is no demonstrated danger from Stab-Lok devices, despite the fudged data used to gain UL approval, and instances where at mild overloads the breaker would not trip.^{[38] [39] [40]} A 2011 updated version of the investigation report clarifies that CPSC did not find them safe, and could not prove they were either safe or unsafe.
• 1984: Lawsuit settled with UV Industries' successor paying $39 million to Reliance after several false starts in 1981 and 1982. Previously-reached agreements were renegotiated after completion of an investigation into Stab-Lok by the Consumer Products Safety Commission.
• 1986: Reliance Federal Pacific exits the circuit breaker business. It sells Federal's Newark plant and the Federal name to Challenger Electric. Challenger moves the plant form Newark to Linden, and resells the plant to Westinghouse. Challenger sells the remainder of the circuit breaker company to American Circuit Break Corporation (ACBC),^[41] Challenger sells the non-circuit breaker parts of the business to Electro-Mechanical Corporation. Electo-Mechanical becomes the sole remaining commercial marketer using the Federal Pacific name.
• 1988: FPE-Pioneer sold to Schneider Electric Canada.
• 1993: ACBC stops manufacturing on its own and instead contracts with Schneider to manufacture Federal products (black circuit breakers). Schneider may only sell independently in Canada (gray circuit breakers).
• 1995: Cutler-Hammer, which had bought the Linden plant form Westinghouse, decides to close the plant. The plant manager, John Cifrodella, forms Federal Pacific Equipment, buys the plant and remaining stock, and continues to manufacture and sell circuit breakers.
• 2007: Circuit Breaker Sales Company (CBS) purchases all assets from Federal Pacific Equipment, including the plant, inventory, and documentation. Everything is moved to the CBS site in Mathews, North Carolina.

Fire hazardIn 1980's breakers found to fail to trip in overload conditions. Several lawsuits led to company being sold and today any house or apartment that has federal pacific breaker that are stab lock design are required to be completely replaced over 75 percent of electric fire found to be caused by them in areas that built many home using federal pacific breakers. This well known on YouTube and internet by looking up Federal pacific electrical fires on internet.

References

1. News: 1960-01-04 . Exchange of Stock Proposed (Federal Pacific but Cornless-Dubillier) . 2023-12-29 . The Courier-News . 7.
2. News: 1980-07-06 . Possible flaw in circuit breakers prompts firm to halt distribution . 2023-12-29 . Arizona Republic . 35.
3. News: 1960-12-09 . Electric Firms Enter Please In Price Fix . 2023-12-29 . Courier-Post . 5.
4. Web site: The Herald-News 05 Oct 1959, page 30 . 2023-12-29 . Newspapers.com . en.
5. News: 1974-03-14 . Classified . 2023-12-29 . The Belleville Times . 19.
6. News: 1959-06-11 . Area Men Promoted . 2023-12-29 . Ridgewood Herald-News . 33.
7. News: 1964-07-16 . Electric Firm Will Enlarge . 2023-12-29 . The Record . 29.
8. News: 1964-11-19 . F. P. E. Forms Mexican Branch . 2023-12-29 . The Record . 59.
9. News: 1980-01-02 . Exxon completes merger with Reliance Electric . 2024-01-02 . The Missoulian . 2.
10. Web site: Federal Signal Corp. . 14 May 2015 . Company Histories.
11. News: 1929-11-26 . Federal Electric Company . 2024-01-02 . The Los Angeles Times . 23.
12. Web site: Federal Sign and Signal Corp. . 2024-01-09 . www.encyclopedia.chicagohistory.org.
13. Web site: 406 F.3d 577 . 2024-01-09 . law.resource.org.
14. Web site: Friedman . Daniel J. . InspectApedia Diagnose & Fix What's Wrong at Your Building . 2024-01-09 . InspectApedia.
15. News: 1948-11-09 . Firm Plans to Close Last Hartford Unit (Federal Pacific Electric) . 2023-12-29 . Traverse City Record-Eagle . 13.
16. News: 1951-09-29 . No more fussing with fuses . 2024-01-02 . The Daily Times . 5.
17. Web site: Aronstein . Jesse . 2017-11-10 . HAZARDOUS FPE CIRCUIT BREAKERS AND PANELS . 2024-01-02.
18. News: 1954-11-14 . Expects to Double Its Working Force (Federal Pacific new plant in Scranton) . 2023-12-29 . Scrantonian Tribune . 17.
19. News: 1954-10-08 . Federal Pacific Compliments... . 2023-12-29 . Courier-Post . 29.
20. Web site: Chicago Tribune 01 Feb 1955, page 49 . 2024-01-09 . Newspapers.com . en.
21. Web site: Roller-Smith Company People The Collection of Historical Scientific Instruments . 2023-12-29 . waywiser.rc.fas.harvard.edu . en.
22. Book: Hall, P.J. . 1865-1915 Semi-Centennial: The Borough of South Bethlehem, Pennsylvania - Souvenir History, Issued in Connection with the Semi-Centennial Celebration Oct 3-9, 1915 . 1915 . Bethlehem, Pennsylvania . 63–64.
23. News: 1958-03-19 . Plant Here to Absorb Part of Roller-Smith . 2023-12-29 . The Tribune . 1.
24. News: 1958-03-06 . Business Notes In Area - O'Donnel Credit Manager of Federal Pacific Electric . 2023-12-29 . The Herald-News . 6.
25. News: 1959-10-09 . Federal Pacific Shifts Research Unit - Now Concentrated in Newark . 2023-12-29 . The Tribune . 15.
26. News: 1960-01-27 . Stock Exchange Proposed . 2023-12-29 . The Central New Jersey Home News . 2.
27. Web site: The Courier-News 27 Jan 1960, page Page 34 . 2023-12-29 . Newspapers.com . en.
28. News: 1960-03-24 . Business Briefs . 2023-12-29 . The Daily Journal . 14.
29. News: 1960-08-23 . Cole Will Handle Campaign Finance . 2023-12-29 . The Record . 5.
30. News: 1962-03-28 . Dubilier Plany Plans May 31 Shutdown . 2023-12-29 . The Courier-News . 8.
31. News: 1965-07-07 . Federal Pacific Names Cole President . 2023-12-29 . The Herald-News . 43.
32. News: 1972-03-26 . Earnings . 2023-12-29 . Asbury Park Press . 48.
33. News: 1972-05-03 . U.S. Smelting Is Changing Its Name to UV Industries . 2023-12-29 . The New York Times . en-US . 0362-4331.
34. News: 1976-08-12 . Watchung Man Company Head . 2023-12-29 . Bernardsville News . 12.
35. News: 1980-07-06 . Reliance halts distribution of circuit breaker . 2023-12-29 . The Record . 8.
36. News: 1981-12-21 . Agency knew about Exxon safety problem . 2023-12-29 . The Daily Register . 2.
37. News: 1979-03-27 . Liquidation Plan Widely Approved At UV Industries . 2023-12-29 . Asbury Park Press . 11.
38. News: 1983-03-03 . Panel Ending Probe Of Circuit Breakers . 2024-01-02 . The Burlington Free Press . 27.
39. News: 1982-06-26 . Business Briefs (UV/Reliance settlement) . 2024-01-02 . Omaha World-Herald . 14.
40. News: 1983-04-26 . On circuit breakers . 2024-01-02 . Newsday . 129.
41. Web site: About Federal Pacific Electric Equipment . 2024-01-09 . www.fpeparts.com.