Friday, August 30, 2013

Meet the Father of the New York City Subway System

Abram Hewitt was an American lawyer, teacher, and businessman. He was the former chairman of the Democratic National Committee, former mayor of New York City and US Congressman. He played a significant role in the Cooper Union, the company his father-in-law founded. Hewitt was also instrumental in the construction and financing of the subway system in New York City. Because of that, Hewitt was named the “Father of the New York City Subway System.”

Hewitt started with Trenton Iron Company in 1845. By 1854, the company was able to produce its first structural wrought iron beams. After he married Sarah Cooper, Hewitt supervised the construction of Cooper Union. With this institution, Peter Cooper offered free education. Soon, Hewitt himself chaired the Cooper Union.

Hewitt’s interest in politics started in 1886 after winning the mayoralty race in New York City. However, Hewitt’s administration was not successful because he showed unpleasant behavior and nativist beliefs.

In spite of his unpopular term as mayor, he was known to defend sound money principles and was recognized for the quote, “Unnecessary taxation is unjust taxation.” He also spearheaded civil service reforms and played an important role in the construction of the New York City Subway.

Tuesday, August 27, 2013

George Hearst: The Best Business and Politics Combined

George Hearst was an American businessman and politician. He was of Scottish descent and was born in Missouri to newspaperman William Randolph Hearst and Elizabeth Collins.

Following his father’s death in 1846, Hearst took care of his mother and siblings. He supported hi family through his mining and general store businesses. In 1849, Hearst first heard of gold discoveries in California. He read about the discovery to be sure it was true. In 1850, Hearst became a part of a party of 16 people who moved to California. The group tried placer mining within the area of Sutter’s Mill by the American River. Meagre finds led them to Grass Valley. Hearst had a background in mining education and he used it to switch to prospecting and dealing in quartz mining. He made a good fortune as a prospector. He was also involved in general store, faming, and livestock raising in Nevada County.

In 1859, silver became very rich in the Nevada County, which eventually became the Comstock Lode. Hearst went to the Washoe district, a part of the territory of western Utah to purchase one-sixth of the interests of Ophir Mine. Later that year, Hearst and his partners were able to mine about 38 tons of high-grade silver ore. They packed those ore on muleback and smelted it in a foundry in San Francisco. In that deal, Hearst earned a profit of $91,000 (or about $4.5 million in 2011 dollar). Ophir silver became the beginning of the silver in Washoe.

Hearst had many other interests in Utah, New Mexico. At that time, his private mining company became the largest in the US. He even earned the reputation as an expert prospector and the most experienced judge of mining property along the Pacific coast. Hearst had a very significant contribution to the development of quartz processing.

When US Senator John F. Miller died in 1886, the Democrats appointed Hearst to fill in his position. He served Miller’s unexpired term from March 23, 1886 until a successor was elected on August 4, 1886. Hearst was elected as Democrat US Senator on March 4, 1887 until his death on February 28, 1891.

Friday, August 23, 2013

Henry John Heinz: Behind the Rise of a Consumer Food Giant



Henry John Heinz was an American entrepreneur who was known as the founder of H.J. Heinz Company. He started the company with two other partners. In 1888, Heinz bought his partners’ interests, took control of the company, and reorganized it into H.J. Heinz Company.

Upon the incorporation of H.J. Heinz Company in 1905, Heinz assumed the position of president and served in that capacity until his death in 1919. Heinz’s management was noted for his fair treatment of employees and his move to pioneer safe and hygienic food preparation. Among his notable programs included free medicare for his workers, educational privileges like libraries, facilities such as gyms, gardens and swimming pools. He lobbied for the ratification of the Pure Food and Drug Act in 1906.

Heinz was 74 years old when he died on May 14, 1919. At that time, H.J. Heinz Company was operating 20 food processing facilities and a number of seed farms and container factories.

Tuesday, August 20, 2013

John Augustine Hartford: Hard Work and Determination Brought Him to the Top



John Augustine Hartford was the former president of the Great Atlantic and Pacific Tea Company (A&P) for 35 years. He and his brother George Ludlum Hartford inherited the company from their father, George Huntington Hartford. John Augustine, who was known as the Merchant Prince, took care of the business operations while George Ludlum was responsible for the finances.

In those days, the Hartford brothers were considered experts in business and were oftentimes interviewed by leading publications. For instance, John Augustine and George Ludlum were featured in the cover story of Time Magazine in November 1950. According to Time, “going to A&P was almost an American tribal rite.” The August 29, 2011 editorial of Wall Street Journal said, “Together the [Hartford] brothers, neither of whom finished high school, built what would be, for 40 years, the largest retail outlet in the world.” On September 7, 2011, the New York Times said about the Hartford brothers in its editorial as “among the 20th century’s most accomplished and visionary businessmen.”

John Augustine was born on February 10, 1872 in Orange, New Jersey. He began his career with A&P 1888. He was well traveled because he represented the company in far flung areas. When his father acquired the company from George Gilman, John Augustine converted the company from a tea and coffee shop chain to a grocery chain and led the company’s expansion until it became the largest grocery chain in the US in 1915.

During his presidency, John Augustine reinvented A&P three times. In 1912, A&P took the concept of an economy grocery store. In the mid-1920s, A&P combined grocery, meat and produce. In the late 1930s, A&P was presented as a DIY self-service supermarket. These reinventions were credited for the improvement of the country’s nutrition because of lower costs of food in proportion to the growing average American diet.

A&P also ventured into manufacturing. John Augustine consulted with Henry Ford on vertical integration and turned the company into one of the largest food manufacturers in US. Among the products manufactured by A&P are canned goods including salmon packaging in Alaska, Bakery products, and coffee and tea.

Friday, August 16, 2013

Henry Havemeyer: Sugar King and Dean of Sugar Refiners



Henry Havemeyer was an American businessman who was known as the founder of the American Sugar Refining Company. He was born in 1847 in New York City. He inherited his family’s sugar refining business and expanded it with the help of his brother, Theodore. At his death on December 4, 1907, Havemeyer and his companies have controlled the sugar refining business in the US.

From 1965 to 1868, Havemeyer trained in sugar refining in Williamsburgh, Brooklyn. At 22, Havemeyer became a partner in the family business of Havemeyers and Elder. A fire hit the company’s refinery in 1882. Henry and Theodore rebuilt the refinery on the same site which eventually became the largest sugar refinery in the US at that time.

In 1887, Havemeyer’s company became the cornerstone of the Sugar Trust. In two decades, Havemeyer was recognized as an expert in sugar industry and earned the nickname “Sugar King” and the dean of US refiners.

He founded the American Sugar Refining Company and served it as president until his death. He died a sudden death because no one expected it; he was at the height of his career. Havemeyer was controlling about 80% of the sugar business in the US during his death.