He didn't invent them, but having an eye for opportunity, Winchester assembled venture capital together with other stockholders and acquired the S&W division, better known as the Volcanic Repeating Arms Company, in 1850. By 1857, Winchester had positioned himself as the principal stockholder in the company and relocated to New Haven, changing the name to New Haven Arms Company.
Initially, the company was plagued by sluggish returns, which was in part attributed to the design and poor performance of the Volcanic cartridge: a hollow conical ball filled with black powder and sealed by a cork primer. Although the Volcanic's repeater design far outpaced the rival technology, the poor performance and reliability of the .25 and .32 caliber cartridges used in the pistol and rifle models respectively, was little match for the competitors' larger calibers.
Fortunately for Winchester, he inherited a brilliant engineer, Benjamin Tyler Henry, who would prove an invaluable asset. Henry sought to improve on the Volcanic repeating rifle, by enlarging the frame and magazine to accommodate seventeen of his newly redesigned, all-brass case, .44 caliber rimfire cartridges. This new cartridge put the new company on the map, and Henry's ingenuity was rewarded with a patent in his name October 16, 1860, for what was to become the famous Henry rifle.
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