Founded in 1870 in Springfield, Illinois, the Illinois Watch Company sold its first watch movement under the name Springfield Watch Company in 1872. The firm began full watch production in 1875. The inaugural model was the Stuart, followed by the Mason, the Miller, the Currier, and finally the Bunn Special, a railroad watch that would become a cornerstone of the Illinois pocket-watch lines. Most of these early pocket watches were key-wound, although stem-wound movements were also produced from 1875 and beyond. Antique Illinois pocket watches from the 1870s, especially the key-wound ones, are highly collectible today.

Most Illinois movements from before the turn of the century had at least 19 jewels, adding considerable value to consumers back then and to collectors now. One notable event in the early years of the company was the release of the first open-face movement marketed in the U.S.

As with many early American watchmakers, Illinois saw its share of financial ups and downs. In 1879, the company reorganized into the Illinois Springfield Watch Company. Then, in... 1885, it changed its name to the Illinois Watch Company. In addition to its regular pocket watch lines, it also made high-end railroad-grade pocket watches. These included the Santa Fe Special, the Sangamo Special, and the Bunn Special, whose movements typically featured 24 rubies.