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Over the years, Diebold, Incorporated has diversified considerably, becoming the international leader in the production, sale, and servicing of automated teller machines ATMs and pioneering in such areas as campus card systems, smart card systems, and automated medication dispensing systems, while continuing to make safes, office equipment, and a variety of security and surveillance systems.
Charles Diebold first organized Diebold Bahmann in , as a manufacturer of safes and vaults in Cincinnati, Ohio. In Diebold had outgrown its space in Cincinnati and transferred plant and headquarters to Canton, Ohio, where most of the post-fire orders were filled.
The following year, a special car train transported the foot-long, foot-wide, foot-high vault to San Francisco. Following the Wells Fargo feat, Diebold continued to traffic in the colossal, selling the largest-ever commercial bank vault to Detroit National Bank in In the First National Bank of Chicago purchased the largest-ever double vault doors, with a combined weight of 87 tons.
Size aside, the company's abiding interest lay in developing equipment to stay one step ahead of bank robbers. In the company introduced manganese steel doors that were billed as TNT-proof. Through time, combination locks replaced keys, which could be copied. Safety hinges were introduced along with locks that jammed automatically after banking hours. The company made a splash in by putting visually pleasing vault doors on the market.
In the process of mechanically redesigning its bank vault equipment, the company canvassed bankers for suggested improvements to the standard.
The overwhelming answer was that a plain slab of steel, particularly on the inside of the door--the side customers see--was an unworthy complement to a bank's carefully decorated public spaces.
The company then hired Charles Deaton, a St. Louis industrial designer, to retool both the interior and exterior of the vaults. Despite the fact that the newly designed vaults cost around twice as much as the simpler models, they dominated new orders from customers. While better and more secure vaults and safes continued to be key features in Diebold's product line, the market for safes and vaults has not always been dependable, relying as it does on the health of the banking industry.
In the s, Diebold began to diversify. In slightly over a decade, the company made seven major moves toward expansion. In the company acquired United Metal Products Co. In Diebold made its first entrance into the office equipment business by introducing the Cardineer Rotary File System.
This was followed in with the acquisition of the Visible Records Equipment Company of Chicago, a former subsidiary and a manufacturer of vertical filing systems and other record-keeping equipment. That same year, Diebold bought the patents and manufacturing rights for Flofilm, a process that allowed companies to microfilm records in-house with a one-hour automatic developer.
Finally, in January , the bank equipment division of O. McClintock Co. The products acquired from McClintock included burglar alarms, a bank vault ventilator in case of lock-ins , and after-hour depositories. Amidst these acquisitions, in the company changed its name to Diebold, Incorporated to better reflect its diversified product line. Several factors motivated Diebold's first expansion. World War II brought the safe and vault business as a whole out of rough years with a flurry of government armament contracts.
Following the dismal economy of the s, the war created a demand for manufacturers accustomed to high-precision work with hardened steels. When the dust settled and the contracts disappeared with the end of the war, the company was fiscally sound but its executives were having trouble agreeing on Diebold's path of postwar reconversion. Amid the confusion, Eliot Ness joined the company's board in A former prohibition agent of The Untouchables fame and Cleveland director of safety, he represented the Rex family, who owned the largest single block of Diebold shares 38 percent.
Ness, who became chairman of the board, engineered a spectacular takeover of York Safe. Located in York, Pennsylvania, York was the largest prewar producer of safes and vaults, with a strong sales base on the East Coast. However, the company had let its sales division deteriorate during the war, while Diebold's was intact. Seeing York's weakness, Diebold moved in.
The deal came together with the help of Clint Murchison, Sr. Murchison arranged for several insurance companies to make loans to Diebold for the purchase and personally guaranteed them. Diebold acquired all of York's patents, tools, service contracts, and orders as well as its sales branches.
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