How Julius Rosenwald Used His Business Successes to Advance His Social Advocacies

Julius Rosenwald used the fortunes he amassed from his successful businesses to finance his social advocacies and become one of the biggest contributors to the philanthropic causes during the first half of the 20th century. He was one of the leaders of the Sears, Roebuck and Company which diversified from manufacturing watches to dealing consumer goods. Rosenwald founded the Rosenwald Fund to match the millions of donations to educate African American children in the rural communities of the South. He also co-founded the Museum of Science and Industry in Chicago and became its major financial backer and provided over $5 million in philanthropic causes.

Rosenwald was born on August 12, 1862 in Springfield, Illinois where he grew up as a boy. At sixteen, he moved to New York City and worked as an apprentice in the clothing business of his uncles. Rosenwald and his brother Morris, established their own clothing manufacturing business but was faced with difficulties and was closed in 1885 due to a recession.

Following the American Civil War, several clothiers have manufactured clothes based on standardized sizes taken from data gathered during the War. Rosenwald believed in the system so, along with Morris, they moved their manufacturing facility in Chicago and expected that rural communities around would become his market. In Chicago, the Rosenwalds were joined by their cousin Julius Weil and established the Rosenwald and Weil Clothiers.

Rosenwald and Weil became one of the major suppliers of men’s clothing to the watch company Sears, Roebuck & Company when it decided to diversify. But the Panic of 1893 and the declining health of owner Alvah Roebuck forced him to leave the company and place his interests in the hand of co-owner Richard Sears. Sears, in turn sold half of the company to Aaron Nusbaum who happened to be Rosenwald’s brother-in-law. A new partnership was formed between Rosenwald, Sears and Nausbaum. In 1903, Rosenwald and Sears bought out Nusbaum for $1.3 million.

Under Rosenwald’s leadership as Vice President, Sears, Roebuck & Company diversified into drugs, dry goods, consumer goods, furniture, hardware and practically anything that a farm household needs. From annual sales of $750,000, Rosenwald’s tenure grew its sales to $50 million. Rosenwald became the company’s president in 1908 following Sear’s resignation.

Rosenwald was already into many philanthropic efforts to help educate the African American children in the South when he founded the Rosenwald Fund in 1917, which he said was established for “the well-being of mankind.” Throughout his lifetime, Rosenwald has donated more than $70 million in charities.