Hughes Tool Company
Encyclopedia
Hughes Tool Company was established in 1908 as Sharp-Hughes Tool Company when Howard R. Hughes, Sr.
patented a roller cutter bit that dramatically improved the rotary drilling
process for oil drilling rig
s. He partnered with longtime business associate Walter Benona Sharp
to manufacture and market the bit. Sharp's widow, Estelle Sharp, sold her 50% share in the company to Howard Hughes Sr. following her husband's death in 1912. The company was renamed Hughes Tool at this point.
When Hughes Sr. died in 1924, 75% of the company was left to Howard Hughes Jr.
, who at the time was a student at Rice University
. According to Howard Sr.'s will, his son was to initially receive a 25% share, his wife 50%, and the remaining 25% was to be divided between various family members. Since Howard Sr.'s wife had died some years earlier, and the will had not been updated to reflect that, Howard Jr. automatically inherited his mother's shares. Resentful of his relatives' attempts to run the business, Howard Hughes Jr. had himself declared a legal adult (21 being the age of majority at the time), and bought out his relatives' minority share in the business.
Under Howard Jr.'s ownership, Hughes Tool ventured into the motion picture business via Hughes Productions during the 1920s, and into the airline business in 1939 with the acquisition of a controlling interest in Transcontinental and Western Air (later renamed Trans World Airlines
).
In 1932, Hughes formed Hughes Aircraft Company as a division of the Hughes Tool Company. Hughes Aircraft thrived on wartime contracts during World War II (though not on the only two contracts it received to actually build airplanes), and by the early 1950s was one of America's largest defense contractors and aerospace companies with revenues far outpacing the original oil tools business. In 1953, Hughes Aircraft became a separate company and was donated to the Howard Hughes Medical Institute
as its endowment. Hughes Aircraft's helicopter manufacturing business was retained by Hughes Tool Co. as its Aircraft Division until 1972.
For a period of time in the 1940s to late 1950s, Hughes Tool owned the RKO companies, including RKO Pictures
, RKO Studios, RKO Theatres, and the RKO Radio Network
. For a brief period in the early 1960s, Hughes Tool held a minority stake in Northeast Airlines
. Hughes Tool's majority stake in TWA was sold off in 1966. Two years later, in 1968, Hughes Tool Company purchased the North Las Vegas Air Terminal
.
In the late 1960s, Hughes Tool ventured into the hotel and casino business with the acquisition of the Sands
, Castaways, Landmark
, Frontier
, Silver Slipper
, and Desert Inn
, all in Las Vegas
. Hughes Tool also purchased KLAS-TV
, Las Vegas' CBS
affiliate. In the early 70's, Hughes Tool ventured back into the airline industry with the takeover of the largest regional air carrier in the western United States: Air West, renamed Hughes Airwest
following the purchase. Hughes Tool also briefly owned Los Angeles Airways
, a small airline operating a commuter service with a fleet of helicopters.
The huge main plant for Hughes Tool located in Houston, Texas, fronting Harrisburg Blvd., had grown to be one of the biggest oil tool manufacturers in the World. It had the latest, largest, and most automated equipment for foundries, forging, heat treating, and machining anywhere. At its peak during the Texas Oil Boom
, it was a center for manufacturing, design, research, metallurgy, and engineering for oil field technologies. This included tool bit
s and tool joints critical for oil drilling, some of the first technologies for ram blast bits for drilling in mines, geothermal drilling, and a hydraulic jackhammer
known as the Hughes Impactor. It even had a fully functioning oil drilling rig inside its main research lab where any kind of rock bit could be tested on any kind of rock, up to and including granite
. In 1972, Howard Hughes sold the Hughes Tool Company; it had been the consistently profitable part of his empire, and produced the profits that built all the rest from the very beginning. This became the "new" Hughes Tool Company while the remaining divisions of the business were placed in a new holding company, the Summa Corporation
. Hughes Tool later merged with Baker International
to form Baker Hughes Incorporated
in 1987.
Howard R. Hughes, Sr.
Howard Robard Hughes, Sr. was an American entrepreneur, best known as the father of Howard Robard Hughes, Jr., the famous aviation pioneer and film producer. Hughes, Sr. created the fortune that Hughes, Jr. inherited when he turned 18.-Early years:Hughes, Sr...
patented a roller cutter bit that dramatically improved the rotary drilling
Drilling
Drilling is a cutting process that uses a drill bit to cut or enlarge a hole in solid materials. The drill bit is a multipoint, end cutting tool...
process for oil drilling rig
Drilling rig
A drilling rig is a machine which creates holes or shafts in the ground. Drilling rigs can be massive structures housing equipment used to drill water wells, oil wells, or natural gas extraction wells, or they can be small enough to be moved manually by one person...
s. He partnered with longtime business associate Walter Benona Sharp
Walter Benona Sharp
Walter Benona Sharp was an American oil drilling pioneer, innovator and philanthropist.Born in Tipton County, Tennessee, Sharp's mother died when he was eight and his father moved the family to Texas. By the age of twenty Sharp was operating a water well drilling company with his brother...
to manufacture and market the bit. Sharp's widow, Estelle Sharp, sold her 50% share in the company to Howard Hughes Sr. following her husband's death in 1912. The company was renamed Hughes Tool at this point.
When Hughes Sr. died in 1924, 75% of the company was left to Howard Hughes Jr.
Howard Hughes
Howard Robard Hughes, Jr. was an American business magnate, investor, aviator, engineer, film producer, director, and philanthropist. He was one of the wealthiest people in the world...
, who at the time was a student at Rice University
Rice University
William Marsh Rice University, commonly referred to as Rice University or Rice, is a private research university located on a heavily wooded campus in Houston, Texas, United States...
. According to Howard Sr.'s will, his son was to initially receive a 25% share, his wife 50%, and the remaining 25% was to be divided between various family members. Since Howard Sr.'s wife had died some years earlier, and the will had not been updated to reflect that, Howard Jr. automatically inherited his mother's shares. Resentful of his relatives' attempts to run the business, Howard Hughes Jr. had himself declared a legal adult (21 being the age of majority at the time), and bought out his relatives' minority share in the business.
Under Howard Jr.'s ownership, Hughes Tool ventured into the motion picture business via Hughes Productions during the 1920s, and into the airline business in 1939 with the acquisition of a controlling interest in Transcontinental and Western Air (later renamed Trans World Airlines
Trans World Airlines
Trans World Airlines was an American airline that existed from 1925 until it was bought out by and merged with American Airlines in 2001. It was a major domestic airline in the United States and the main U.S.-based competitor of Pan American World Airways on intercontinental routes from 1946...
).
In 1932, Hughes formed Hughes Aircraft Company as a division of the Hughes Tool Company. Hughes Aircraft thrived on wartime contracts during World War II (though not on the only two contracts it received to actually build airplanes), and by the early 1950s was one of America's largest defense contractors and aerospace companies with revenues far outpacing the original oil tools business. In 1953, Hughes Aircraft became a separate company and was donated to the Howard Hughes Medical Institute
Howard Hughes Medical Institute
Howard Hughes Medical Institute is a United States non-profit medical research organization based in Chevy Chase, Maryland. It was founded by the American businessman Howard Hughes in 1953. It is one of the largest private funding organizations for biological and medical research in the United...
as its endowment. Hughes Aircraft's helicopter manufacturing business was retained by Hughes Tool Co. as its Aircraft Division until 1972.
For a period of time in the 1940s to late 1950s, Hughes Tool owned the RKO companies, including RKO Pictures
RKO Pictures
RKO Pictures is an American film production and distribution company. As RKO Radio Pictures Inc., it was one of the Big Five studios of Hollywood's Golden Age. The business was formed after the Keith-Albee-Orpheum theater chains and Joseph P...
, RKO Studios, RKO Theatres, and the RKO Radio Network
RKO Radio Network
The RKO Radio Networks, a subsidiary of RKO General, were the first commercial radio networks to distribute programming entirely by satellite. When it began operations on October 1, 1979, the initial RKO network was the first new full-service American radio network in 40 years. Satellite...
. For a brief period in the early 1960s, Hughes Tool held a minority stake in Northeast Airlines
Northeast Airlines
Northeast Airlines was an American airline based in Boston, Massachusetts. They began as Boston-Maine Airways, which was founded as a Pan Am contract carrier on July 20, 1931, by the Boston and Maine Railroad and Maine Central Railroad offering service from Boston to Bangor via Portland...
. Hughes Tool's majority stake in TWA was sold off in 1966. Two years later, in 1968, Hughes Tool Company purchased the North Las Vegas Air Terminal
North Las Vegas Airport
- Runway Incursions:The airport has continuously worked on a runway incursion prevention program to help curtail the number of runway incursions happening at the airport. For the year of 2007, North Las Vegas ranked #2 in airports with most runway incursions....
.
In the late 1960s, Hughes Tool ventured into the hotel and casino business with the acquisition of the Sands
Sands Hotel
The Sands Hotel was a historic Las Vegas Strip hotel/casino that operated from December 15, 1952 to June 30, 1996. Designed by architect Wayne McAllister, the Sands was the seventh resort that opened on the Strip....
, Castaways, Landmark
The Landmark Hotel and Casino
The Landmark Tower was a hotel/casino located in Las Vegas, Nevada. The Landmark opened on July 1, 1969 and closed on August 8, 1990.The Landmark played host to famous celebrities such as Danny Thomas, Elvis Presley, Frank Sinatra and Freddy Fender's first appearance.With just 525 rooms, the...
, Frontier
New Frontier Hotel and Casino
The New Frontier was a hotel and casino located on the Las Vegas Strip that had operated continuously since October 30, 1942. Actually located within the unincorporated suburb of Paradise, Nevada, USA, it was the second resort that opened on the Las Vegas Strip. The Frontier closed its doors for...
, Silver Slipper
Silver Slipper
The Silver Slipper was a Las Vegas, Nevada casino that operated from September 1950 to November 29, 1988. The building was designed by architect Martin Stern, Jr....
, and Desert Inn
Desert Inn
The Desert Inn was a Paradise, Nevada, hotel/casino that operated from April 24, 1950, to August 28, 2000. Designed by noted New York architect Jac Lessman, it was the fifth resort to open on the Las Vegas Strip. The property included an 18-hole golf course. Locals nicknamed the resort "The D.I."...
, all in Las Vegas
Las Vegas, Nevada
Las Vegas is the most populous city in the U.S. state of Nevada and is also the county seat of Clark County, Nevada. Las Vegas is an internationally renowned major resort city for gambling, shopping, and fine dining. The city bills itself as The Entertainment Capital of the World, and is famous...
. Hughes Tool also purchased KLAS-TV
KLAS-TV
KLAS-TV, virtual channel 8 , is the CBS-affiliated television station serving the Las Vegas, Nevada market; it is owned and operated by Landmark Media Enterprises...
, Las Vegas' CBS
CBS
CBS Broadcasting Inc. is a major US commercial broadcasting television network, which started as a radio network. The name is derived from the initials of the network's former name, Columbia Broadcasting System. The network is sometimes referred to as the "Eye Network" in reference to the shape of...
affiliate. In the early 70's, Hughes Tool ventured back into the airline industry with the takeover of the largest regional air carrier in the western United States: Air West, renamed Hughes Airwest
Hughes Airwest
Hughes Airwest was an airline that was backed by Howard Hughes. Hughes Airwest flew routes around the western United States and to certain points in Mexico and Canada. The airline was purchased by Republic Airlines on October 1, 1980...
following the purchase. Hughes Tool also briefly owned Los Angeles Airways
Los Angeles Airways
Los Angeles Airways was a helicopter airline that was based in Westchester, Los Angeles, California. Los Angeles Airways offered services to area airports as well as Disneyland from Los Angeles International Airport and the heliport at the Newporter Resort, now the Hyatt Regency Newport Beach...
, a small airline operating a commuter service with a fleet of helicopters.
The huge main plant for Hughes Tool located in Houston, Texas, fronting Harrisburg Blvd., had grown to be one of the biggest oil tool manufacturers in the World. It had the latest, largest, and most automated equipment for foundries, forging, heat treating, and machining anywhere. At its peak during the Texas Oil Boom
Texas Oil Boom
The Texas Oil Boom, sometimes called the Gusher Age, was a period of dramatic change and economic growth in U.S. state of Texas during the early 20th century that began with the discovery of a large petroleum reserve near Beaumont, Texas...
, it was a center for manufacturing, design, research, metallurgy, and engineering for oil field technologies. This included tool bit
Tool bit
The term tool bit generally refers to a non-rotary cutting tool used in metal lathes, shapers, and planers. Such cutters are also often referred to by the set-phrase name of single-point cutting tool. The cutting edge is ground to suit a particular machining operation and may be resharpened or...
s and tool joints critical for oil drilling, some of the first technologies for ram blast bits for drilling in mines, geothermal drilling, and a hydraulic jackhammer
Jackhammer
A jackhammer is a pneumatic tool that combines a hammer directly with a chisel that was invented by Charles Brady King. Hand-held jackhammers are typically powered by compressed air, but some use electric motors. Larger jackhammers, such as rig mounted hammers used on construction machinery, are...
known as the Hughes Impactor. It even had a fully functioning oil drilling rig inside its main research lab where any kind of rock bit could be tested on any kind of rock, up to and including granite
Granite
Granite is a common and widely occurring type of intrusive, felsic, igneous rock. Granite usually has a medium- to coarse-grained texture. Occasionally some individual crystals are larger than the groundmass, in which case the texture is known as porphyritic. A granitic rock with a porphyritic...
. In 1972, Howard Hughes sold the Hughes Tool Company; it had been the consistently profitable part of his empire, and produced the profits that built all the rest from the very beginning. This became the "new" Hughes Tool Company while the remaining divisions of the business were placed in a new holding company, the Summa Corporation
Summa Corporation
Summa Corporation was the name adopted for the business interests of Howard Hughes after he sold the tool division of Hughes Tool Company in 1972. The tool division would merge with Baker International in 1987 to form Baker Hughes, the world's third-largest oil-services company...
. Hughes Tool later merged with Baker International
Baker International
Baker International was established 1907 when Reuben C. Baker developed a casing shoe that revolutionized cable tool drilling.In 1987, the company merged with Hughes Tool Company to form Baker Hughes Incorporated....
to form Baker Hughes Incorporated
Baker Hughes
Baker Hughes Baker Hughes provides the world's oil & gas industry with products and services for drilling, formation evaluation, completion, production and reservoir consulting. Baker Hughes operates in over 90 countries worldwide mainly based in countries with a mature petroleum industry as is...
in 1987.