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A Look Back at the Origins of Hewlett-Packard As the Company Completes Its 40Th Year in Business­

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A Look Back at the Origins of Hewlett-Packard As the Company Completes Its 40Th Year in Business­ The Stanford University campus in Palo Alto, California, during the 1930's-particularly its engineering school-was the site for many of the events that resulted in the formation of the Hewlett and Packard partnership in 1939. Scenes here include the main Quadrangle (at right) and Palm Drive (above) the latter photographed by Yearbook Photographer Jack Beckett, now HP's government relations director. Freelance art director Jim McGuiness provided the sketches shown on subse­ quent pages. run forIt... ·.. a look back at the origins of Hewlett-Packard as the company completes its 40th year in business­ Co-founders Bill Hewlett and Dave D .• It was really in our senior year that in radio engineering during my senior Packard officially started their Bill Hewlett and J got acquainted and year. I was pleased to do it, and that was started going around together. In fact, we really the time [ got fully interested in partnership in 1939. Unofficially, it had been in a number of classes together electronics. started some years beforehand, as during the whole four undergraduate "You may recall that Terman had Dave Packard describes in one of years at Stanford. In addition to our inter­ been developing this course which was est in engineering and getting our busi­ the basis for his book "Radio Engineer­ the following discussions, based ness started, we also enjoyed fishing, in ing" -which would become so famous. on an interview taped by the particular. Bill and I went on a pack trip "I was the first undergraduate who Bancroft Library of the University during the summer of 1934 in Colorado, had been allowed to take this particular ofCalifornia: following graduation. We had a mule, course. The sidelight of this is that Bar­ and the two of us spent two weeks up in ney Oliver (now vice-president-R&D) the Colorado mountains, packing and came up from the California Institute of fishing. We developed a very close rela­ Technology the same year as a junior. tionship fairly early on. As a result of Fred Terman reluctantly allowed Barney work ing together, we generally had the to enter the course and stipulated that, same attitudes toward most things. yes, he could take the course, but he'd We've never had any problem in coming have to understand that if he didn't pass OUl with almost the same conclusion on the mid-term, he'd have to drop out. almost everything we've done. [don't Well, who got the highest grade on the know if you could explain how or why mid-term in the whole class? And who that came about, it just came out got the highest grade on every exam the that way. whole year? Barney Oliver. "Bill, J think, has been a little more .. I guess the thing that finally deter­ interested in the engineering side and I mined the direction of my life is that Fred was more interested in the business side. arranged during this course for us to visit "It was in my junior year that I got some of the electronics and radio firms into an electrical engineering program, in the area. Among them, Philo Farns­ and I think this was a critical time. I had worth was developing one of his tele­ continued my interest in amateur radio vision tubes up in San Francisco. I when I came out to Stanford. They had a remember seeing his laboratory. I was little amateur radio set-up in the very intrigued to see what these people engineering quarter there where Fred had been doing. And it was really as a Terman had his laboratory. I was active result of those visits, and discussions in amateur radio when I was a freshman, with Fred Terman and Bill Hewlett sophomore, and junior, and it was as a toward the latter half of my senior year, result of my involvement in radio that I that we decided that maybe we'd try and became acquainted with Fred Terman. I make a run for it ourselves. And Fred didn't really know very much about him, said that most of these electronics firms but he, amazingly enough, had learned had been built up by people who hadn't quite a bit about me, and he stopped to had very much education. He suggested visit from time to time. He'd known all that it would be a great opportunity for about all the courses I'd taken and every someone who had a good theoretical grade that I had, and he asked me to background in the field to set up their come in one time and suggested that 1 own business. might be able to take his graduate course (continu.ed) getting togethet.. " And we were concerned about get­ ting jobs. Ed Porter and Bill Hewlett and I had been making tentative plans to try to do something ourselves right after we got out of Stanford. Ed (who joined HP in 1946 and who was serving as vice president at the time of his death in 1976) had already built up a pretty good associ· ation with some people in the city in his radio repair business, and he thought he might get them to help us get started. Then late in the spring of 1934 I got an offer for a job with General Electric in New York. It was not to start until the following February, but in those days there weren't very many jobs available, so I decided I'd better take it. "The thing that stimulated me to think about leaving General Electric in "To do that we had to set up the shop 1938 is that Fred Terman arranged an op­ in the garage and get some equipment. portunity for me to come back here with Then Bill got a job making diathermy enough attention that we decided maybe the express purpose of getting together equipment for a medical clinic, and Fred we'd make a run for it. So we then built with Bill to see if we could get some· Terman helped us. He also got someone up a model more carefully and wrote a thing started. He arranged this research who wanted a control drive for a tele­ set of specifications. I remember having grant which was to do some design scope, so we made that. Then we got a this model in the living room at Christ­ work. The job was to build a tube and job putting in bowling-alley controls. We mas time because we were taking some test its theory. Fred also arranged that I had a bad time with that because the pictures to send out. We got a list of pro­ could get credit for the work I'd done at pushbutton we got didn't work right, and spective customers, some of them from General Electric and, with just one year I had to go up and make a lot of service Fred Terman and some from other of residence, get my Engineer's degree at calls. So we were pretty busy between sources, and mailed out some letters. I Stanford. We had in mind that this was trying to go to class and get some of don't remember how many letters we the time when Bill and I were going to these outside things going, and then do sent out. It couldn't have been more than see if we could make a go of it. So Bill the work on this design project. 50. It was probably more like 25. But, found this house on Addison Avenue in "These were all just miscellaneous amazingly enough, in a couple of weeks Palo Alto. The house is still there, as a jobs we got to make a little money, with we got some orders back with some matter of fact. We rented the lower floor the thought that maybe one of them checks in the mail. .. where my wife Lu and I lived. There was would develop into something that would a little building out in back where Bill be viable. Bill had developed an audio lived, and a garage that we set up as a oscillator circuit in the lab at Stanford the shop to work in. So I began taking Spring before I came out. And we'd courses at Stanford in the fall-classes in talked about using that. As a matter of the morning, studying in the afternoon. fact, Fred Terman arranged a deal with "I started doing some other things, IT&T that paid for getting a patent on and Ed Porter was largely involved. Ed Bill's oscillator, in return for which they had started a few years before to sell got some rights for it. We didn't have air conditioning equipment in the Sac­ enough money to get a patent on the os­ ramento Valley. He sold this equipment cillator. We built a model of this, and to most of the hotels. So we worked to­ Bill took it up to an I.R.E. (Institute of gether with him and designed some Radio Engineers) convention in Oregon control systems. Ed would send the in November, 1938. This attracted specifications down, and we'd build the controls. 1eacher, mentor, friend-Fred Jerman exerted a profound influence on both the professional and personal lives ofDave Packard and Bill Hewlett. Now retired as Vice President and Provost ~meritus ofStariford University, and Director Emeritus ofHewlett-Packard Company, Professor Terman here recalls some ofthe circumstances that brought them together: o "I first became acquainted with Dave Packard in the fall of 1933 when he was a senior at Stanford.
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