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Hi Charles,
I have co-incidentally just been re-looking at mine - bought it exactly 42 years ago, but in those days inventions took a while to get to these latitudes.
It was called the Stanley Electrichisel - I still have the original instruction sheet. Mine is for a 3/4 inch dado - I remember that the packaging came with a small piece of beechwood, with the dado cut for reference. The collar was used to set the depth of cut, and the tool was advanced along a straight-edge. The relatively long length meant that most of the time, the depth of cut was set from the upper surface of the straight-edge, I.e. the collar rode on top of the straight-edge, and the cutting tool race against the side of the straight-edge.
Worked reasonably well on solid wood, got blunt quickly on particle-board 9the days before met).
As you say, routers were not common - I did not have one, and what was available was the Stanley fixed-base type - very expensive for the time, with limited hss bit availability - no carbide.
Someone still has a cabinet I made at the time, with the shelves dadoed into the particle-board sides - saved me a lot of work cutting dados by hand in chipboard, but blunted the tool and I could never quite crack the sharpening (did not have a Dremel at the time, either). Then I acquired an Hitachi plunge router, and never needed it again. But I tend to hoard tools, “just in case”.
I was going to toss it out last month, then happened to see that Arbortech has a Turboshaft tool for a small angle grinder, which has a similar cutting configuration (but with replaceable carbide cutters). So I have been thinking about whether to modify it for use with an angle-grinder, but probably will land up tossing it. I don’t do freehand carving, anyway.
Stick, it was not designed for vertical use, and so would not be ideal for screw removal - also the gap between the internal edges of the cutting blades would be tight - less than 1/4 inch on my 3/4 inch model. It was more akin to a straight router bit than a plunge bit, and was hard to control in vertical use (tended to bounce away from the straight-edge), and would have left a vertical column of wood. Vertical use was for final smoothing of the floor of the dado.
It was also pretty heavy on a hobby drill at the time. My Millers Falls 500rpm 1/2hp drill did not cut it, and I put some serious mileage on my brother’s small Metabo. But when I acquired a 1hp 3000 rpm Metabo, it worked much better, but burned the cutting edges on the chipboard -we used to make serious chipboard locally in those days.

Charles, I can scan and post the user leaflet, if you require it.

Interesting, not only am I becoming a fossil, I may be a tool museum soon.
 

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Charles, in those days (tongue-in-cheek generalisations):
the good stuff came from the USA - except Canadian Nicholson files (I still have a couple);
superior stuff (Metabo, Mercedes Benz) came from Germany, but North America had the not-invented-here syndrome;
Japanese quality was picking up rapidly, but lacked innovation;
China was a place where a syphilitic dictator was re-educating millions of people to death - the only form of mass production;
Australia was some backwater where a couple of hundred people occupied scattered locations on the edge of a huge desert;
We used to get all sorts of stuff here, because the South African economy was such that our currency was twice as strong as the dollar - how the mighty have fallen.

The tool did not require that much horsepower, but it did need speed (minimum 1700rpm, according to the manual), which the lower-powered models in this neck of the woods lacked.

Dan, mine (model 04119) says made in USA, even the leaflet says printed in USA. I do not remember whether the 1/2" model was released here. I went for the 3/4 because of the 19mm veneered chipboard available locally - theoretically a one-shot dado, but also a limitation for other work - not every mortise is likely to be 3/4. The increasingly prohibitive price of natural timber also made it a less useful option compared to carbide tools.

Theo, not ideal for nail removal in pallets or anything else - you would land up with a 3/4" hole to remove a much smaller screw, and then only if you drilled right through. In thicker stock, you would be left with a column in the middle, with the screw defiantly still in place. And that is assuming you did not wander into the screw with the internal chisel edges.
Interesting to look at the back pages:
-Stanley had patterns and plans for furniture pieces - we never saw those here.
-I had a Stanley Powerlock tape for decades - do they still last as long?
- was not impressed by the Stanley tubular-shaft hammers, but have a sprung-handle Stanley Fatmax that looks good so far.
- Still have a couple of Surforms, but have found limited use for them somehow.
- Not sure whether the No 4 plane shown was still one of the good Stanleys, but later models have been underwhelming, have moved over to Japanese planes of late.

Have had to split the scanned leaflet into three parts, to comply with site attachment limits.
 

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part 3

#Charles, none of my angle grinders is slow enough for this tool, so the up-cycling idea is dead. If you would like the tool (needs sharpening), I can get it to Canada mid- October. You would have to arrange pick-up from my friends in Toronto, but I could try for BC (need to know within 24hrs if you are interested).

As a tool hoarder, I would prefer it to go to a good home, rather than the local thrift shop.
 

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