The Bagman’s Doomsday Football - a Zero Halliburton
In the immediate aftermath of the assassination of President
Kennedy, Lyndon Baines Johnson, the heir to the power of the presidency,
communicated by telephone with three people - Attorney General Robert Kennedy,
Judge Sarah Hughes and his personal tax attorney J. Waddy Bullion. He called
RFK to get the exact wording of the oath of office, Sarah Hughes to get her to
come to Love Field to administer the oath and with Bullion he talked about the
need to change his stock portfolio, expressing particular concern about his
Halliburton stock.
Russ Baker, in “Family
of Secrets,” (p. 132), reports that “Pat Holloway, former attorney for both
Poppy Bush and Jack Crichton, recounted to me an incident involving LBJ that
had greatly disturbed him. This was around 1 P.M. on November 22, 1963, just as
Kennedy was being pronounced dead…The switchboard operator excitedly noted that
she was patching the vice president through from Parkland Hospital to
Holloway’s boss, firm senior partner Waddy Bullion, who was LBJ’s personal tax
lawyer. The operator invited Holloway to listen in. LBJ was talking ‘not about
conspiracy or about the tragedy,’ Holloway recalled, ‘I heard him say, ‘Oh, I
got to get rid of my goddamn Halliburton stock.’”
Baker also notes that, “Halliburton was also deeply involved
in defense contracting, through its subsidiary Brown and Root (Later Kellog
Brown & Root KBR) the politically wired Texas
engineering firm. Brown and Root had taken a giant leap into military
contracting when Lyndon Johnson, its political protégé, became president.” Both
G. R. and R.O. Brown were on the Halliburton board, as was John Connally, who
was wounded in the fuselage of bullets that killed Kennedy.
Some have considered it peculiar that one thing Johnson did
not do once he assumed the presidency, at least on the public record, was to
inquire about the national security status, the military posture or the
possibility that the nation would be attacked, or was under attack by foreign
enemies.
In fact, the new President had twice left behind the military
aide with the “black bag” containing secure communication and nuclear attack
codes. The “bagman” had been left behind in the motorcade when LBJ was rushed
to Parkland Hospital
and then again when the new president quickly and secretly left the hospital
for Air Force One. While the man with the nuclear codes did catch up to LBJ and
remained nearby, he was generally ignored during the crisis.
In his book “The Day
Kennedy was Shot,” Jim Bishop relates how Gearhart became “separated from
the VIP portion of the motorcade as it raced
to Parkland and after arriving he did not know where the
President was nor whom he was. The Secret Service kept him away from the booth
where LBJ had been placed and that Johnson and Gearhart had been separated
again, when LBJ raced to Love Field."
Tagging along almost unnoticed on the trip to Love Field,
Gearhart had to force his way onto a policeman’s lap to keep up with the
president.
The “bagman” was Ira Gearhart, a military officer who carried
a metal suitcase that contained the codes and ciphers the President needed to
communicate with military commanders and foreign leaders or to order a nuclear
strike. Gearhart had to remember the combination for the safety lock that
opened the bag, and was to stay near the President at all times.
In “The Death of a
President,” William Manchester wrote, “Warrant Officer Ira D. Gearhart, or
Shadow, had been assigned the most sinister task in the Presidential party. No
one called him by his Christian name, his surname, or even by his code name. He
was the ‘man with the satchel,’ or, more starkly, ‘the bagman’. The bag (also
known as ‘the black bag’ and ‘the football’) was a thirty-pound metal suitcase
with an intricate combination lock. Within were various Strangelove packets,
each bearing wax seals and the signatures of the Joint Chiefs. Inside one were
cryptic numbers which would permit the President to set up a crude hot line to
the Prime Minister of the United Kingdom
and the President of France on four minutes’ notice. A second provided the
codes that would launch a nuclear attack. The rest contained pages of close
text enlivened by gaudy color cartoons. They looked like comic books — horror
comics, really, because they had been carefully designed so that anyone of
Kennedy’s three military aides could quickly tell him how many million
casualties would result from Retaliation Able, Retaliation Baker, Retaliation
Charlie, etc. Taz Shepard had prepared these doomsday books. No one liked to
think about them, much less talk about them, and on trips the man with the
football was treated as a pariah.”
In his book “Apocalypse
Soon” former Secretary of Defense Robert S. McNamara wrote, “The concept of
the Football came about in the aftermath of the Cuban Missile Crisis. President
John F. Kennedy was concerned that some Soviet commander in Cuba
might launch their missiles without authorization from Moscow .
After the crisis, Kennedy ordered a review of the U.S. Nuclear Command and
Control system. The result was the highly classified National Security Action
Memorandum that created the Football. It has been suggested that the nickname
Football was derived from an attack plan code named Drop-Kick.”
“The playbook is said to contain 75 pages of options, to be
used against four primary groups: Russian nuclear forces; conventional military
forces; military and political leadership and economic/industrial targets. The
options are further divided into Major Attack Options (MAOs), Selected Attack
Options (SAOs), and Limited Attack Options (LAOs ).
With the SATCOM radio and handset, the president can contact the National
Command Authority (NCA) and the North American Aerospace Defense Command
(NORAD). To make rapid comprehension of the materials easier, the options are
described in a heavily summarized format and depicted using simple images. The
Football also contains the locations of various bunkers and airborne
command-post aircraft, procedures for communicating over civilian networks, and
other information useful in a nuclear-emergency situation.”
“The ‘Nuclear Football,’ otherwise known as the President's
Emergency Satchel, is a specially-outfitted, black-colored briefcase used by
President of the United States
to authorize the use of nuclear weapons. While its exact contents and operation
are highly classified, several sources have provided details of the bag. It is
presumed to hold a secure SATCOM radio and handset, the daily nuclear launch
codes known as the ‘Gold Codes,’ and the President's Decision Book—the ‘nuclear
playbook’ that the President would rely on should a decision to use nuclear
weapons be made, based on the Single Integrated Operational Plan (SIOP). The
National Security Agency updates the Gold Codes daily.”
“The Football is carried by one of the rotating Presidential Aides (one from each of the five service branches), who occasionally is physically attached to the briefcase. This person is a commissioned officer in theU.S.
military, pay-grade O-4 or above, who has undergone the nation's most rigorous
background check (Yankee White). These officers are required to keep the
Football within ready access of the President at all times. Consequently, an
aide, Football in hand, is always either standing/walking near the President or
riding in Air Force One/Marine One/Motorcade with him.”
“The Football is carried by one of the rotating Presidential Aides (one from each of the five service branches), who occasionally is physically attached to the briefcase. This person is a commissioned officer in the
As McNamara describes it, “The case itself is a metallic, possibly bullet-proof, modified Zero-Halliburton briefcase which is carried inside of a leather "jacket". The entire package weights approximately 40 pounds (18 kg). A small antenna, presumably for the SATCOM radio, protrudes from the bag near the handle. Contrary to popular belief, the ‘football/ is not handcuffed to aides. Rather, carriers employ a black cable that loops around the handle of the bag and the wrist of the aide.”
“Zero-Halliburton” is the name of the company that
manufactured the case, which brings us back to the Halliburton company and
LBJ’s phone call to his tax attorney J. Waddy Bullion, concerning his Halliburton
stock.
In “From Russia With
Love,” a spy thriller novel read by both President Kennedy and his alleged
assassin Lee Harvey Oswald, Ian Fleming has his secret agent 007 utilize a
custom attaché case that included a concealed dagger, a sniper’s rifle that broke
down and fit into the stock and a special latch that exploded if not opened
correctly, which seems to have been inspired by the Halliburton case.
According to the official Zero-Halliburton web site: “In
1938, Earle P. Halliburton, a globetrotting businessman, commissioned a team of
aircraft engineers to build him cases that could withstand the rough terrain of
the Texas oilfields in the back
of his truck. The original aluminum case was born, becoming the very definition
of protection and ruggedness in business and travel cases. Every effort has
been made ensure that only the finest material, the most advanced techniques,
and the most precise crafting are employed to make each and every case. That
heritage continues today.”
“Today, that aluminum case, created
nearly 70 years ago is the prototype for style, sophistication, and uniqueness.
However, it has never lost sight of its heritage: protecting your belongings
wherever your journeys take you. The original aluminum case we introduced to the
world over seven decades ago has taken hold of people’s imagination and stands
as icon of strength, security, endurance, and fashion. It blazed new territory
for design, providing a unique, unmistakable presence that cannot be imitated.”
“All of our signature aluminum
cases start with a two-ton coil of aircraft grade aluminum. After being cut
into individual pieces, the aluminum is “deep-drawn” over special steel dies
using 440 tons of pressure. As the shape is formed, the molecular structure of
the aluminum actually changes, resulting in a shell that’s free of wrinkling,
distortion and manufacturing inconsistencies. Following the deep-draw
process, the shell is heated to more than 1000 degrees Fahrenheit and then
quickly cooled, making the aluminum even stronger and more durable. Each
shell is then buffed and electro-chemically anodized to add color and prevent
corrosion. After the shell is completed, it takes the skillful hand of a
trained craftsman to make each case worthy of the Zero Halliburton name.”
“The heat-tempered aluminum shell has the strength of steel at only one-quarter the weight. Extra strength hinges withstand pulling of over 400 pounds. Innovative neoprene gasket keeps out dust and moisture, providing unrivaled protection.”
“The heat-tempered aluminum shell has the strength of steel at only one-quarter the weight. Extra strength hinges withstand pulling of over 400 pounds. Innovative neoprene gasket keeps out dust and moisture, providing unrivaled protection.”
“Today, the same creative spirit that challenged the conventions of what business cases should look like-while raising the expected standards for their performance-has given rise to a new generation of inventive cases with unmatched performance. We are expanding the boundaries of personal business and travel products by once again incorporating the most advanced materials available and creating solutions to satisfy your most challenging needs. A perfect combination of sound design principles and innovation that could have only come from Zero Halliburton.”
“In 1946, independent of any relationship with Halliburton,
a metal fabrication company called Zierold Company changed its name to Zero
Corporation. In 1952, Mr. Halliburton sold his travel case division to the
recently created metal fabrication company Zero Corporation, officially ending
any Halliburton Company's involvement in the making of aluminum cases. The new
division was renamed Zero Halliburton.”
“In January 2007, Zero Halliburton, a division of Zero
manufacturing, was sold to Japan ’s
largest luggage company, Ace Company Ltd. Zero Halliburton remains an American
Company.”
Interesting Facts –
“Zero Halliburton cases have been used to carry Apollo
mission moon rocks, academy award Oscars and skates for US speed skating team.”
“Zero Halliburton products have appeared in many movies and televisions shows over the last decades such as ‘Independence day,’ ‘Lost,’ ‘Men in Black,’ ‘Ocean’s Eleven’ and ‘Mission Impossible.’”
“Zero Halliburton products have appeared in many movies and televisions shows over the last decades such as ‘Independence day,’ ‘Lost,’ ‘Men in Black,’ ‘Ocean’s Eleven’ and ‘Mission Impossible.’”
On April 24, 1999 ,
President Bill Clinton left NATO's 50th anniversary summit, being held at the Ronald
Reagan Building
in Washington , D.C. .
The carrier and the football were left behind. The aide walked the half-mile
back to the White House alone. The integrity of the football and the state of
the officer were intact. Similar incidents have occurred with Presidents Gerald
Ford, Jimmy Carter, Ronald Reagan, and George H. W. Bush.
A specially modified Zero-Halliburton case was used to carry
the special communications and nuclear attack codes by the president’s military
aid Ira Gearhart on November 22, 1963 .
Around 1 PM on November 22, 1963 , within a half
hour of becoming president with the death of JFK, one of the first things
President Johnson does is call his tax attorney J. W. Bullion to ask about his
Halliburton stock.
According to “A Money
Tree Grows in Texas ,” (1968, p. 100), a $1,000 investment in
Halliburton in 1948 when the company was originally available to the public
would be worth $19,700.00 in 1968.
The corporate headquarters for Halliburton was listed as
3211 Southland Center ,
Dallas , Texas ,
where the Dallas Sheraton was located, the White House Communications Agency
(WHCA) had set up their base station and where “Maurice Bishop” had met Lee
Harvey Oswald and Anthony Veciana in the lobby in the summer of 1963.
On the board of directors of Halliburton were John B.
Connally, who was wounded at Dealey Plaza ,
and G. R. and R.O. Brown of Brown Brothers, Brown & Root.
BK notes: As Linda M. points out, R.O. Brown was not one of the Browns of Brown & Root, and Russ Baker notes that John Connally was not on the board at the time of the assassination.
BK notes: As Linda M. points out, R.O. Brown was not one of the Browns of Brown & Root, and Russ Baker notes that John Connally was not on the board at the time of the assassination.
In his book “Family of
Secrets,” Russ Baker also reports that (p. 131-132), “Meanwhile, the
Kennedy assassination had put into the White House Lyndon Baines Johnson, who
had a long-standing but little-known relationship with the Bush family. This
dates back at least to 1953, when Prescott Bush joined Johnson in the U.S.
Senate…That same year, Poppy Bush started Zapata Petroleum with Hugh and
William Liedtke, who as law students at the University
of Texas several years earlier, had
rented LBJ’s guesthouse. Later, Bush became close with LBJ’s chief financers,
George and Herman Brown, the founders of the construction giant Brown and Root
(which later became part of Halliburton).
After helping establish the Continuity of Government (COG )
plans in the 1980s and serving as Vice President, Cheney left government and became
head of Halliburton.
Erle P. Halliburton
Erle Palmer Halliburton (September 22, 1892, near Henning, Tennessee -
October 13, 1957, in Los Angeles) was an American businessman specializing
in the oil business.
Prior to United
States entry into World War I,
Halliburton gained exposure to shipboard engineering as a member of the United States Navy. After his honorable discharge in 1915, he headed for
the oilfields of California, where he was able to apply techniques analogous
to the technology with which he had worked in the Navy. His drive and his sense
of innovation soon brought him into conflict with his boss, Almond Perkins.
Halliburton later quipped that getting hired and getting fired by the Perkins
Oil Well Cementing Company were the two best opportunities he had ever
received.[1]
Halliburton and his wife Vida C Tabor Halliburton
established the New Method Oil Well Cementing Company in Oklahoma in
1919. By 1922, this company was operating as Halliburton Oil Well Cementing
Company, which later became known as Halliburton Company on July 5, 1961 . He also designed the
aluminum suitcases which are now manufactured by Zero
Halliburton.
Halliburton (/ˈhælɨbɜrtən/; NYSE: HAL) is
one of the world's largest[7] oilfield services
companies with operations in more than 70 countries. It has hundreds of
subsidiaries, affiliates, branches, brands, and divisions worldwide and employs
over 60,000 people.[6]
The company has dual headquarters located in Houston and in Dubai, where Chairman
and CEODavid
Lesar works and resides, "to focus [the] company’s Eastern
Hemisphere Growth."[8] The
company will remain incorporated in the United
States .[9][10][11]
Halliburton's major business segment is the Energy Services
Group (ESG). ESG provides technical products and services for petroleum and natural gas
exploration and production. Halliburton's former subsidiary, KBR, is a major construction company of refineries, oil fields, pipelines, and chemical
plants. Halliburton announced on April
5, 2007 that it had finally broken ties with KBR, which had been
its contracting, engineering and construction unit as a part of the company for
44 years.[12]
Company History:
Zero Corporation is a leading designer and manufacturer of
enclosure, cooling, and other systems, primarily for the electronics industry.
Zero products include electronic cabinets, card cages, backplanes, power
supply, and such thermal management systems as closed-loop air conditioning
systems and motorized impellers. Sales to the electronics and related
industries account for nearly 75 percent of Zero's annual revenues. Zero is
also a leading worldwide designer and manufacturer of air cargo containers,
systems, and accessories for companies including American, United, Airbus, and
others. On the consumer level, Zero manufactures the world-famous line of Zero
Halliburton luggage; these distinctive metal suitcases, briefcases, and
carrying cases are sold in more than 30 countries. With manufacturing plants in
the United States, Europe, and Mexico, Zero serves a customer base of over
20,000, none of which accounts for more than five percent of Zero's annual
sales, which reached $206 million in 1995 (fiscal year ended 3/31/96).
Throughout its history, Zero has been so successful at capturing the largest
share of its market that the "zero case" has become a generic term.
Scrap Metal Origins
German immigrant Herman Zierold founded a small sheet metal
business in Los Angeles in the
early part of the century. By the end of the Second World War, Zierold's
company had ten employees and annual sales of about $300,000; Zierold himself
delivered his company's precision aluminum and sheet metal products. In 1951,
Zierold sold his business to Jack Gilbert, who renamed the company Zierold
Manufacturing Co. Gilbert had dropped out of high school after his father died
during the Depression. Working a variety of jobs, including a stint with
Douglas Aircraft during the Second World War, Gilbert decided to go into
business for himself. Gilbert's interest was in the nascent electronics
industry and the need for precision sheet metal products. "I looked at 30
or 35 companies," Gilbert told Forbes, "until I found Zierold
Metal Co. Zierold was into precision aluminum work, and that was the future in
sheet metal."
Gilbert offered Zierold $350,000 for the company, with a
$50,000 down payment raised by mortgaging his home. Gilbert and Zierold agreed
that Zierold would finance the rest; if Gilbert missed installments, the
business would revert back to Zierold. According to Gilbert: "Herman went
down the street and made a bet with a scrap dealer that he'd have the business
back in a year." By the time Gilbert paid off the last of his installments,
however, Herman Zierold was accepting stock in the company instead of cash.
In the postwar years, Los Angeles
and other areas were overcrowded with sheet metal companies, but Gilbert's
former association with Douglas led him in a direction
that would help Zierold stand out from the rest. From friends at Douglas ,
Gilbert learned that company was purchasing precision aluminum boxes to cover
their electronic systems, paying as much as $600 for a custom-made box to house
electronic components. As Gilbert told Forbes, "I couldn't
believe it. I thought those parts ought to sell for about $35."
Gilbert set out to produce a box that was simple and
inexpensive to make, developing a process to make deep-drawn boxes. In the
deep-drawn process, aluminum was subjected to pressures high enough to
press--rather than stretch--the metal around a die, creating a seamless box.
Because the metal was pressed, causing its molecules to flow around the die,
the process eliminated the weaknesses associated with stretching metal. By developing
his own dies, Gilbert was able to produce boxes in standardized sizes far more
quickly and cheaply than if the boxes needed to be custom-made. Gilbert began
taking orders from the aerospace and electronics industries for boxes of
various sizes. The company bore the cost for designing and building the dies,
which at the time cost between $300 and $1,200, eating into the profits, if
any, of an order and placing a heavy financial burden on the company.
By the mid-1950s, the strain of producing the dies forced
Zierold to turn business away. Gilbert sought financing, but he worried about
losing control of the company. A Small Business Administration loan, however,
kept the business afloat, and in 1957, Zierold received new help in the form of
a $250,000 investment by Alfred Reddock, a venture capitalist. After Reddock
agreed to join the company's board of directors, Zierold gained the credibility
it needed to go public, which it did in 1959. A name change soon followed. For
years, many of the company's customers had been mistaking "Zierold"
for "Zero," going so far as to make out checks to the company under
that name. In response, Gilbert changed the company's name to Zero
Manufacturing Co.
Over the next decade, the company continued building its
collection of dies. An acquisition offer in the mid-1960s by Bendix led Zero to
expand its operations beyond California .
With no intention to sell, Gilbert nonetheless met with Bendix in order to
discover the reasons behind that company's interest in Zero. Learning that
Bendix was intent on acquiring sheet metal operations located near the
Californian, southern, and New England aerospace markets, Gilbert traveled to
manufacturers in those areas, signing on such large concerns as Martin Marietta
and Raytheon as Zero customers. Soon after, Zero opened manufacturing
facilities in Massachusetts and Florida .
Despite gaining such large companies as customers, Gilbert remained determined
that no company would account for more than five percent of Zero's sales; as a
result orders generally averaged $10,000 or less.
A Brief Stumble in the 1970s
Gilbert next sought to diversify the company's operations.
In 1969, Zero purchased the Halliburton luggage-making operations from the
Halliburton oil service company. The Zero Halliburton line soon gained
worldwide fame. Sales of the line of luggage and cases for photographic
equipment rose from $200,000 at the time of the acquisition to nearly $3
million by the end of the 1970s. The company next moved into producing aircraft
hydraulic systems and related aircraft devices. Zero's reputation was also
enhanced by being chosen to build the cases that would transport moon rocks
gathered from the first lunar landing back to Earth.
Yet the company stumbled in the early 1970s. Pursuing a plan
to round out the company's operations, Zero made a number of other acquisitions
seeking to bring the company into the heating and cooling business. However, a
downturn in the economy, and especially in the electronics industry, cut deeply
into Zero's profits and caused the company to post operating losses--including
a $2 million write-off from selling its new acquisitions--in the first two
years of the new decade. By 1973, Zero again turned profitable, earning
$600,000 on sales of $22 million. The company changed its name again, to Zero
Corporation. The company's success, particularly the success of its deep-drawn
manufacturing process, had already caused the zero box to become a generic name
in the electronics and aerospace industries.
Zero's collection of dies had grown to over 1,500, which
gave the company an edge over competitors making costlier custom-made
enclosures, while discouraging others from entering the field in direct
competition with Zero. By the late 1970s, nearly all of Zero's die collection
had been fully amortized. Sales, with customers including 35 of the 50 largest
computer manufacturers in the United States, such as IBM ,
Burroughs, and Digital Equipment, reached $66 million by 1979, with net
earnings of $4.7 million, and a five-year compounded growth rate of 25 percent.
The following year, Gilbert retired from full-time management of the company
and was replaced by Howard W. Hill. Two years later, Hill was joined by Wilford
"Woody" Godbold, a former mergers and acquisitions specialist with
Gibson Dunn & Crutcher, a Los Angeles
law firm. Godbold, who was raised in Hawaii ,
went to Stanford as an undergraduate, and received a law degree from UCLA after
a stint in the Navy, had served as Zero's corporate counsel before joining the
company as executive vice-president. When Hill retired in 1985, Godbold took
over as chief executive officer.
The 1980s and Beyond
Under Godbold, the company again began a series of
acquisitions to diversify operations, buying eight companies in the first half
of the decade for a total outlay of about $20 million. These new
acquisitions--for example, the 1985 purchase of Contempo Engineering Co. of
Glendale, California , a maker of
air conditioning systems for computer installations--centered primarily on the
electronics industry. The company's customer base grew to include 187 of the
200 largest electronics manufacturers, giving Zero an 85 percent share of the
enclosure market. Zero's production facilities had grown to include 16 plants
in the United States
and England . By
then, rather than contracting Zero to custom-make a die, many manufacturers
were designing their electronics equipment to fit one of Zero's 1,700 basic
dies, which had expanded to provide capacity for some 40,000 box sizes ranging
from a few inches to six-foot boxes used to house Stinger missiles. "But
there always seems to be one more size we haven't made," Godbold told
the Los Angeles Business Journal, and Zero continued to design and
produce custom dies for new orders. Most orders involved short production runs,
producing high margins for the company--generally nine to ten percent, compared
to three percent among most metal manufacturers.
Zero's 1985 sales topped $117 million, bringing net earnings
of $11.5 million, which included a $7 million gain from the sale of its Ocean
Technology subsidiary. Aiding Zero's growth was the growth of its subsidiaries,
particular its Electronics Solutions subsidiary, a computer manufacturing
subcontractor acquired in 1985. Between 1987 and 1988, revenues jumped from
$139 million to $171 million, with a rise in earnings to $16 million in 1988.
However, a slump in the electronics industry, and cuts in
defense spending as the Cold War ended, coupled with a slide into a recession
as the 1990s began, slowed Zero down. Sales, which neared $200 million in 1990,
fell to $160 million. Per share income also dropped, from $1.02 to $0.62. In an
effort to cut operating costs, Godbold moved its Los
Angeles factory to Salt Lake City ,
slashing the company's expenses for workers' compensation, health care, and
wages. The company consolidated a number of its remaining California
plants to cut operating costs further. Godbold, who served as chairman of the
California Chamber of Commerce, was widely criticized for the move. Yet, as Godbold
told World Trade, "It wasn't an easy thing for us, but the costs
of doing business in the state were eating us alive. We had to do it to remain
competitive."
The Utah move
helped spur the company's sagging profits. Zero also began a new wave of acquisitions,
including the 1993 purchase of J.H. Sessions & Sons of Connecticut ,
which manufactured case hardware such as handles and hinges and other materials
for annual sales of $4 million. Orders from the airline industry also picked
up--after a long slump due not only to the recession, but also to fears of
terrorism surrounding the Gulf War--including a contact to supply baggage/cargo
systems to 50 of United Airlines' Airbus planes. Yet the company's foreign
sales were hurt by the slide into the European recession, which saw
international revenues drop from over $21 million in 1992 to $15.5 million in
1994.
Total sales grew only at four percent between 1992 and 1995,
as compared to the company's former 18-year, 25 percent average growth rate.
Nonetheless, Zero remained solidly profitable, with net earnings climbing from
$9.7 million in 1991 to nearly $15 million by 1994. In 1995, Zero began
acquisitions of three new companies, Precision Fabrication Technologies, which
manufactured modular enclosures, data communications products, and accessories
for the electronics and telecommunications industries; Electro-Mechanical
Imagineering, Inc. (EMI), a maker of enclosure, mounting, and protective
devices for closed-circuit television security devices; and G.W. Pearce &
Sons Ltd., a UK-based deep-drawn aluminum products manufacturer. Combined,
these acquisitions added $16 million to Zero's revenues. Total revenues reached
$206 million in fiscal year 1996, producing net earnings of nearly $17 million.
Several more acquisitions followed in the first half of
1996. The Zero Halliburton line expanded to include cases for the booming
mobile computing market. In January 1996, Zero launched a new subsidiary, Zero
Integrated Systems, to design, engineer, and manufacture completely integrated
electronic systems, as well as to provide cost analysis and quality testing
services. After more than forty years, Zero had at last moved inside the box.
Principal Subsidiaries: Air Cargo Equipment; Electronic
Solutions; Integrated Systems; McLean Engineering; McLean Europe; McLean
Midwest; Nielson/Sessions; Samuel Groves & Co. Limited (Birmingham,
England); Stantron/PFT/EMI; Zero Enclosures.