Potter Instrument

Potter Instrument Company

Company type	Public corporation
Industry	Computer hardware
Founded	1942
Founder	John Taft Potter
Defunct	late 1970s
Headquarters	Long Island , United States
Key people	John Taft Potter (founder, CEO, chairman)
Products	Electronic instruments, magnetic data storage devices, data-entry terminals, chain printers, disk drives
Number of employees	1500 (1970s)

Potter Instrument Company was an American public corporation specializing in computer hardware, operating from 1942 until the late 1970s and headquartered on Long Island. Established by inventor and businessman John Taft Potter (1911–1987), the firm was a trailblazer in developing electronic instruments and magnetic data storage solutions. Notably, in 1957, it introduced the first random-access mass storage system featuring removable media.

History

John Taft Potter founded the enterprise in 1942, initially focusing on electromechanical devices for recordkeeping, including a machine capable of processing up to 1.6 million sheets of paper per second. By 1948, Potter had submitted a patent application for a three-dimensional random-access mass storage apparatus utilizing steel wires as the medium for data recording. This patent was awarded in 1952, coinciding with the debut of their initial linear tape drive products.

The company’s pioneering design incorporated arrays of two-dimensional frames containing multiple columns of steel wires, with a mechanical selector arm enabling access to individual wires for reading and writing information. This early concept of removable storage was further developed with assistance from George Comstock into a system employing half-inch magnetic tape held within frames. In 1957, Potter successfully commercialized this innovation as the Three-Dimensional Memory Device through a deal with Univac Corporation, marking it as the earliest magnetic random-access mass storage device utilizing interchangeable media—preceding both disk packs and floppy disks. Subsequently, National Cash Register created the more widely adopted CRAM system based on Potter’s original patent.

In 1968, Potter ventured into the rotating disk drive sector by launching the DD4311 model, designed to be compatible with IBM’s 2311 drive. Their disk drives delivered marginally superior speed at reduced prices, securing Potter’s position as an important supplier for mainframe and minicomputer storage solutions. Additionally, the company manufactured data-entry terminals and chain printers.

During its zenith in the 1970s, Potter was Long Island’s largest computer manufacturer, employing over 1,500 personnel across four facilities. The company broadened its scope into computer leasing during the late 1960s, renting IBM mainframe systems to major corporations following precedents set by firms like Itel and Foxboro. However, IBM’s reduction of leasing fees in 1971 drastically diminished demand for third-party leasing providers such as Potter, contributing to a $13.1 million loss reported in 1972.

John T. Potter stepped down from his roles as president and COO in 1973 but retained his positions as CEO and chairman until his removal in 1978. Confronted with financial difficulties, Potter filed for Chapter 11 bankruptcy protection in April 1975 and subsequently ceased operations on Long Island.

Despite the bankruptcy filing, the company’s military products division continued functioning until August 1975 when Swedish entrepreneur Jan Stenbeck acquired it and rebranded it as Miltope Corporation. Miltope sustained its operations by leveraging defense contracts and remains active as of 2024. Meanwhile, Potter Instrument Company was fully dissolved by the late 1970s following leadership transitions and ongoing financial challenges.