/\rl~IC I ! PROPERTY OF "(HE EATIlE PUBLIC UBRA~ ANNUAL REPT~· BUSINESS & ECONOMICS PRESIDENT'S MESSAGE For all eleven years of its operation, your interested in the details of the debentures and Company has finished each fiscal year in a the facts reported to the Securities and Ex­ stronger financial position than the last. In the change Commission are referred to the pros­ same period, the Company has become nation­ pectus related thereto. ally recognized as a leading supplier of com­ Our dynamic industry continues to experience plete automatic control systems and control rapid growth and change. A sizeable portion devices for both military and commercial of the Company's effort continues to be applied applications. We are looking toward our future toward increasing our design technical skills with optimism and assurance. and engineering test facilities. The past year has been an eventful one in Recent additions to our testing laboratory in­ Company operations and a successful one from clude a radiation test chamber and an expanded the earnings standpoint. Probably the out­ air flow testing section. The air flow test sec­ standing highlights of the year were the 92% tion will be further increased to provide the increase in sales from $6,112,233 last year to necessary capability to match our increasing $11,680,119 and the increase in earnings from participation in space environmental control $363,596 to $696,817. Employment increased systems. from 673 to 880 and plant area from 73,000 square feet to 91,000 square feet. During the year, the Company completed the first phase of a special management training In February, the need for additional funds to course designed to utilize more fully the capa­ finance the Company's increasing volume of bilities of its key personnel. Of particular inter­ business prompted the Directors to authorize est is the planned expansion of sales programs public issue of 200,000 shares of common to establish a wider base for both foreign and stock. At $14 per share this issue was quickly domestic sales and service. oversubscribed, and subsequent trading over the counter has been brisk. The Company has Confidence in United Control employee­ over 2,000 individual stockholders, including company relationships was reaffirmed by the 23% of the company employees. A number production employees when, in a National of investment trusts and insurance companies Labor Relations representation vote on Octo­ have included stock of the Company in their ber 15, 1959, their vote against union repre­ portfolios, adding further strength and prestige sentation was in excess of 3 to 1. to its continuing high marketability. The Com­ pany is currently concluding with underwriters I wish to thank the officers and employees of the sale of $2,500,000 in convertible subordi­ the Company, whose loyal and diligent efforts nated debentures, much of which will be used have made possible a successful year's opera­ to construct a new plant and to provide for tions and are contributing to United Control's increased product development. Those who are continuing progress. Sincerely yours, ~~~ LOUIS P. HANSON, President PRINCIPAL DIRECTORS: OCCUPATION: William E. Boeing, Jr. President and Director, Mesabi Western Corporation Jake GraybeaL. .. __ .... _.. _._yice.President, United Control Corp. Louis P. Hanson. __ ._ ... __ ._ .. _.President, United Control Corp. Paul W. Kitto_ .... _.. _._._ ... _...Vice·President, Pacific National Bank 0/ Seattle Martin K. Lilleberg_. Vice·President, United Control Corp. Eugene A. Shurtleff._... Vice·President, Blyth & Company, Inc. Howard H. Suskin_._. Treasurer, United Control Corp. OFFICERS: Louis P. Hanson .__ .. .President Howard H. Suskin._ .. .. _. __ Treasurer and General Manager Martin K. LilIeberg. .__ ._._Vice.President Jake GraybeaL_ .. _._ .. __... _.. _.Yice·President Albert M. Bledsoe..... _._._._. Secretary and Director 0/ Public Relations TRANSFER AGENT: Pacific National Bank of Seattle REGISTRAR: National Bank of Commerce, Seattle AUDITOR: Lybrand, Ross Bros. & Montgomery, Seattle SPECIAL COUNSEL: Holman, Mickelwait, Marion, Black & Perkins, Seattle COUNSEL: Merle D. Cohn, Seattle HOWARD H. SUSKIN, JAKE GRAYBEAL, MARTIN K. LILLEBERG, JOHN M. MIX, Treasurer and General Manager Vice President Vice President Manager, Sales Department $10 $9 $8 Sales growth reflects the $7 degree of success achieved $6 in a dynamic and highly $5 competitive industry. The insignia of United Control Corporation will be found on equipment installed in many areas on today's high-performance aircraft and missiles. On aircraft, equipment manufactured by the Company is located in crew, passenger and equipment compartments, and is an inte­ gral part of electrical, hydraulic and pneu­ Aero Italiane, Internationali Lockheed Aircraft Service, Inc. matic systems. For missiles, the Company Air France The Martin Company supplies systems and accessories used in the Air India International Corp. McDonnell Aircraft Corporation guidance, fuel storage, power plant and acces­ AiResearchAviation Service National Airlines sory power area. American Airlines, Inc. Norair Div. of Northrup Corp. Atlantic Aviation North American Aviation, Inc. Our reputation for product design integrity, Avco Manufacturing Corporation Northwest Airlines, Inc. quality and reliability, on-time delivery and Avro Aircraft Limited Olympic Airways Beckman Instruments, Inc. competitive cost - all contribute to new sales Pacific Airmotive Corporation Beech Aircraft Corporation Pan American World Airways, Inc. and the successful introduction of new prod­ Bendix Products, Bendix Aviation Corp. Philippine Air Lines ucts. The chart illustrates the broad areas of Benson Mfg. Company Qantas Empire Airways Limited use for which United Control has designed These are representative of the numer­ Boeing Airplane Company Raytheon Co. and sold nearly 500 different· products over ous commercial and military air and Braniff International Airways Republic Aviation Corporation BritiEh Overseas Airways Corporation the past four years. space vehicles equipped with prod­ Royal Dutch Airlines (KLM) Canadair Limited Rohr Aircraft Corporation ucts from United Control Corporation. Marketing of United Control's diversified Canadian Pacific Airways Sabena Belgian World Airlines CeEsna Aircraft Co. products is accomplished by application engi­ Scandinavian Airlines System Chance Vought Aircraft Sikorsky Aircraft Corporation neers in the field, supplemented by syst~ms Continental Airlines South African Airways Convair, A Division of analysts and product design specialists from Sperry Gyroscope Company General Dynamics Corp. the home office as required. Unusual problems Stratos-Division of Fairchild Engine Cubana are met by designating a special technical and Airplane Corp. Curtiss-Wright Corp. Swedlow, Inc. "task force" to integrate the skills of all de­ Delta Airlines Swissair partments of the Company into a unified effort. Deutche Lufthansa Temco Aircraft Corporation Douglas Aircraft Company, Inc. Trans-Canada Air Lines This year marked a significant gain in the ._~ ~'"""_ Eastern Airlines 5'- .. '--._ __-;::. Trans-World Airlines, Inc. Company's commercial sales volume, up from Erco Division, ACF Industries, Inc. \ ~.....-- '" Transport Aeriens Intercontinenoux .... Foote Brothers 8% in 1958 to the current level of about 15% Union Aeromaritime de Transport VALVES, ACTUATORS, SOLIO STATE ELECTRICAL of total sales. Today's most advanced com­ Grumman Aircraft Engineering CONVERTERS AND OTHER PRODUCTS .~ IKORSICYI"_'~I' ..... _ Corporation United Air Lines LIQUID LEVEL SWITCHES AND THERMAL SWITCHES mercial aircraft utilize United Control prod­ Hughes Tool Company United States Air Force ucts specified by the original manufacturers Irish Air Lines United States Army for use by foreign and domestic airlines. In­ Japan Air Lines United States Navy Kaman Aircraft Corp. Yard Incorporated cluded in this growing list are: BOEING 707, Varig Airlines, Inc. CANADAIR CL-44, DOUGLAS DC-8, NORTH AMERICAN Link Aviation, Inc. SABRELINER, CONVAIR 880, GRUMMAN GULFSTREAM AND Lockheed Aircraft Corporation Vertol Aircraft Corp. SIKORSKY HELICOPTERS. ENGIN£ ERING AND DEVEL OPMEN r The Company's engineering department in­ cludes design specialists in both electrical and mechanical engineering, supported by quali­ fied experts in electronic circuit theory, ther­ modynamics, performance analysis, reliability and design evaluation. Because of the rapid advancement in many fields effecting the tech­ nologies used in design, the Company's re­ search and development staff also includes chemists, metallurgists, physicists and radi­ ologists. ..... .. During the past year, research and develop­ .................... \. ment efforts have contributed to advances in ................'J.~, •••:." • .., product capability in warning systems, tem­ J'J•••,...fi...'1J ' ~ ­ perature controls, environmental control sys­ ~............... .. tems and servo systems. ........" ... The design and development of new basic "building blocks" for use in new products is a major aspect of the Company's research and - development. These building blocks include improved transducers, amplifiers, actuating devices and solid-state components. During the year, new products in this category have included a transistorized servo amplifier, a modulating cryogenic valve, proportional power magnetic amplifiers and cooling effect ADJUSTING AIRFLOW IN NEW FACILITY transducers. Specialists are engaged continuously in im­ proving electronic