The Vision That Built America’s Watchmaking Giant

The rise of the Elgin National Watch Company is deeply tied to the groundbreaking success of Waltham Watch Company in Massachusetts. In the mid-19th century, Waltham had revolutionized watchmaking by introducing standardized, interchangeable parts and mechanized production, allowing them to produce high-quality watches at scale. Their success stunned the industry and posed a direct challenge to Swiss craftsmanship, proving that mass production could rival traditional handcrafting in both precision and affordability. It was this success that sparked a question among a group of ambitious businessmen: could this same model thrive even further in the heart of the Midwest?

A group of influential businessmen and watchmakers took notice of Waltham’s achievements and saw an opportunity to bring this model to Illinois, where access to growing railway networks and industrial labor was abundant. The key figures behind this effort were Benjamin W. Raymond, a former mayor of Chicago; Philo Carpenter, Chicago’s first druggist and a successful businessman; Thomas S. Dickerson, an industrialist; George M. Wheeler, a manufacturer; Edward H. Williams, an experienced engineer and railroad executive; and W. Robbins, a financier. These men were determined to replicate and improve upon Waltham’s success, believing that Illinois, with its expanding infrastructure, could support a thriving watch industry.

The plan was ambitious: raise $100,000 in initial capital—an enormous sum for the time—to fund the creation of a new watchmaking powerhouse. However, as the project advanced, it became evident that this initial funding was insufficient. On April 25, 1865, the company reorganized and increased its capital to $500,000, allowing them to proceed with constructing a state-of-the-art factory and scaling operations. To secure these funds, the investors leveraged their own wealth, sought contributions from local industrialists, and gained backing from Chicago’s growing financial sector, where interest in industrial expansion was high. This fundraising required extensive negotiations with industrialists and financiers, many of whom were hesitant to back an industry still in its infancy outside the East Coast. Some investors questioned whether a watchmaking operation could function efficiently without the established infrastructure of cities like Boston or New York. Others worried about the availability of skilled labor and the long-term sustainability of such an enterprise. The founding group had to provide detailed business plans, financial projections, and assurances that the Midwest’s growing transportation network would allow them to scale production effectively. They also sought backing from influential figures in Chicago’s financial sector, leveraging relationships with banking institutions to secure additional capital and business confidence. It took multiple rounds of negotiation and strategic commitments, including personal financial stakes from key founders, to fully convince backers of the plan’s viability.

They sought a location outside of Chicago, where land was cheaper, and the workforce was eager. That’s when the town of Elgin stepped forward with an offer that was too attractive to ignore. Four prominent Elgin businessmen, recognizing the economic potential of such an enterprise, acquired an abandoned farm and donated 35 acres of land to the investors. This strategic decision provided the company with ample space for expansion while ensuring easy access to the Galena & Chicago Union Railroad, a critical transportation link for distributing their watches nationwide. The land deal also included commitments from Elgin’s local government to provide infrastructure support, ensuring that roads, water supply, and essential services would be in place to accommodate the factory and its workers. However, even with these incentives, the investors had to navigate legal agreements and municipal approvals, delaying the groundbreaking process by nearly a year. Originally planned to begin in late 1864, bureaucratic red tape and negotiations pushed the start of construction to April 1865, further straining investor confidence and delaying operational timelines.

With the location secured, the next challenge was assembling a workforce capable of executing their vision. Understanding the necessity of expertise, the investors visited Waltham Watch Company in Massachusetts and successfully recruited seven of its top watchmakers—Otis Hoyt, P.S. Bartlett, Charles S. Moseley, George Hunter, D.R. Hartwell, Charles E. Mason, and D.G. Currier. These highly skilled craftsmen brought invaluable knowledge of precision manufacturing, helping Elgin establish a factory that would set new standards in American watchmaking. To attract additional talent, Elgin’s founders offered a compelling compensation package: a one-time signing bonus of $5,000, an annual salary of $5,000 for five years, and an acre of land on the company’s property. They also assisted in housing arrangements, helping to relocate skilled workers and their families to Illinois.

Beyond staffing, the company needed machinery that could match the precision of Waltham’s operations. This required custom-built equipment, much of which had to be designed from scratch. Engineers worked closely with machinists to create new lathes, gear-cutting machines, and assembly tools tailored specifically for watchmaking. Securing the raw materials for mass production was another hurdle—metals, glass, and specialized components were sourced from suppliers across the country, requiring logistical coordination that was unprecedented for a startup of this scale. A supply chain misstep in the early stages delayed production as key materials did not arrive on time, forcing the company to rethink its procurement strategy. To address this, Elgin expanded its supplier base, securing multiple sources for critical materials such as brass, steel, and glass to avoid dependence on any single provider. They also established direct contracts with railway operators to ensure faster and more reliable transportation of raw materials. They also improved coordination with suppliers by negotiating fixed delivery schedules and securing priority transport for essential materials. Additionally, they implemented a structured inventory management system to maintain buffer stock levels, reducing the risk of sudden shortages. These changes streamlined procurement and stabilized production, preventing future disruptions.

The Elgin factory itself was a marvel of industrial planning. The main building was constructed using durable brick and timber, with large, open spaces designed to house heavy machinery and precision assembly lines. Skylights and large windows were incorporated into the design to provide workers with natural lighting, which was essential for intricate watchmaking tasks. Inside, the factory was divided into specialized departments—one for gear cutting, another for assembling movements, and others dedicated to casing, quality control, and testing. The workflow was meticulously planned to ensure efficiency, with raw materials entering at one end and completed watches exiting at the other, a model inspired by Waltham’s factory design but improved with lessons learned from early production challenges. The factory design also included a power system that ensured steady production. Elgin typically operated on structured shifts, often running 10- to 12-hour workdays with workers rotating through different tasks.

The National Watch Company (later Elgin National Watch Company) was founded in 1864 in Elgin, Illinois. The factory was completed in 1866. The first movement, the B.W. Raymond model, was produced in April 1867 and sold for $115. It was named the “B.W. Raymond” after Benjamin W. Raymond, honoring his role in bringing the company to life. Elgin’s creation marked the beginning of an era that would shape American watchmaking for decades, proving that ambition, innovation, and perseverance could build an industry from the ground up.