Back in the 16th century a Chinese scholar named Wan-Hu lashed 47 black-powder rockets to a bamboo frame, clambered aboard the contraption, and as 47 servants lit the fuses, so goes the legend, went on history's first rocket ride. Last week in Wall Street, the stocks of the modern rocket riders were whizzing up as fast as old Wan-Hu. Olin Mathieson Chemical Corp., a leader in rocket fuels, shot up 6| points in three days to a new high of 54. Reaction Motors, 50% owned by Olin, has nearly doubled in value in the past year; so has General Tire & Rubber Co., which owns 95% of another rocket enginemaker, Aerojet General Corp. Thiokol Chemical Corp. has trebled in value in a little over a year, hit $70.50 a share last week before backing off a bit.
Powered by military necessity, rocket engines have grown into a major industry with annual sales estimated at $450 million, a work force of 25,000-plus and a product line that ranges from small $50 JATO rockets to huge $250,000 missile engines producing the equivalent of 1,750,000 h.p. By the mid-1960s rocket engine spending will probably top $1 billion annually and go on climbing as the U.S. needs ever faster and higher flying weapons beyond the capabilities of conventional jet or ramjet engines, like those on Boeing's Bomarc missile (see below).
Titan & Atlas. So far, most of the production—and most of the profit—has gone to two giants in the field: General Tire's Aerojet subsidiary and North American Aviation's Rocketdyne Division, both of which got in on the ground floor and today account for almost 75% of all the rocket-engine business. Founded in 1942 by Theodore von Karman, who now acts as a consultant, and a group of scientists at California Institute of Technology, Aerojet plodded along until 1945 when General Tire bought up 50% of its stock for a bargain $75,000, later increased its holdings to 95%. Since then, by pouring in funds for research and development, General Tire has helped Aerojet land contracts for a family of 15 rocket engines. At. its two California plants, Aerojet makes engines for the Titan ICBM, each of which produces an estimated 250,000 Ibs. of thrust (v. some 20,000 Ibs. for the biggest conventional jet), also has contracts for a series of smaller engines ranging from the Navy's 1,500-mile submarine-launched Polaris missile to the Army's Nike Ajax antiaircraft rocket.
At North American rockets are becoming an increasingly big percentage of the company's total business. By spending an initial $1,000,000 right after World War II on its Rocketdyne Division, pumping in another $26 million, since then for five plants and test facilities, North American won contracts for the Atlas ICBM power plant, the engines for the Thor and Jupiter intermediate missiles. From a start of five men in 1945, North American's Rocketdyne Division has expanded to 10,500 employees, and its sales of some $165 million (18% of North American's total) last year led the industry. Aerojet General is running a close second, sold $145 million worth of rocket engines last year, and figures to do even better in 1957 with $415 million in orders on its books.
Rubber & Research. Behind the two leaders range a dozen other big and little companies. Some pioneers: