Alexander Brown & Sons

"From 1800 to 1805, the business was carried on under
his own name, but on the 3d of September, 1805, his
eldest son, William, became his partner, and the following
advertisement announcing the formation of the firm of
Alexander Brown & Son appeared in the "Federal Gazette
and Baltimore Daily Advertiser" on that same day:

ALEXANDER BROWN

Having taken his son, William Brown, into partnership, their commercial business will in future be conducted under the firm of

ALEXANDER BROWN & SON

Who have received by the Ceres, 4-4, & 7-8, & 3-4 Irish Linen, and
Brown Holland entitled to drawback.

On December 31 of the same year, in the "Baltimore
American Commercial Daily Advertiser,'\* we also find
the following advertisement:

IRISH LINENS

ALEXANDER BROWN & SON

Have just received per ship Birmingham a general assortment of
linens, etc. IRISH LINEN WAREHOUSE, 8 Calvert Street."

Papers show George named partner in 1808.

John A. made partner in 1810. Firm officially changes name to Alexander Brown & Sons. John is made partner to replace his eldest brother William who returned to Ireland in 1809 do to ill-health in order to visit relatives. In 1810 William starts his own business in Liverpool with his cousin William A. Brown (son of John Brown) named William Brown & Company.

In 1811 James becomes partner. Firm consists of Alexander Brown, George, John, and James until 1814. William regains partnership in 1815, though is still in Liverpool.

From 1800 - 1818, Alexander Brown & Sons had nearly a monopoly in the linen trade in Baltimore.

Success model: Alexander Brown leveraged his auctioneer and merchant connections in Belfast and Liverpool (including William). This gave them great advantage because of the complication of currency exchange, which was reliant on trade back to the UK.

"He was not only able to supply his own
wants, but so many good bills were often offered, drawn
against shipments of produce with bills of lading attached,
that he at once became a free buyer of commercial sterling,
covering his purchases by selling his own drafts on
Liverpool. He was so well and favorably known in Baltimore,
that importers in that city felt no hesitation in
buying his bills on Great Britain, especially after 1810,
when his son William had established himself in Liverpool,
and these bills were drawn upon his son's firm."

"the means of acquiring the latest information,
enabled him to build up at an early date, and
retain for a long time, a goodly share of the Sterling Exchange
business of this country, and gave to the bills of the
associated firms their currency in the markets of the world."

Early on begins owning ships. (1812 letter to son George states ownership of the ship *Aramata*). 7 models of these ships existed in the office in 1909.

Essentially establishes trade connection between Baltimore and Liverpool. All non-UK connected merchants in the US must go through Brown. (Kinda sounds like a merchant version of a clearing house). They were importers on their own account, dealers in the Sterling Exchange, and shippers (ship owners), issued credits for importation of goods by others (merchant banking). Trading extended west by wagon and riverboat (Baltimore is closest seaport to Ohio River).

The building of canals post War of 1812 make it necessary to expand. In 1818 John A. is sent to Philadelphia to start a branch house called John A. Brown & Company. In 1825, the completion of the Erie Canal makes New York the most important port city in the US. As such, James is sent at the end of 1825 and establishes a branch under the name Brown Brothers & Company (Started at 191 Pearl Street but moved to 63 Pine Street).

In 1827 a meeting is called at George's house with 25 leading business men from Baltimore. At the time the only railroad of importance in the world was the Manchester and Liverpool Railroad (and maybe the Stockton & Darlington Railroad in England that was used for minerals). Steam locomotive doesn't exist yet but they incorporate the Baltimore & Ohio Railroad Company with $5M in capital. They aimed to build a railroad in the Ohio river valley that goes over the Allegheny Mountains. George becomes first treasurer and then after one of the directors for the state.

Herman H. Perry becomes partner in 1836. He seems to separate from the firm around 1839 but in 1852 he received power of attorney from the New York branch to represent them in Baltimore.

William Cumming, correspondent in Savannah.

M. Bings and Mr. Appleton are customers maybe? E.R. & Co. and Montgomery & Co. -1812

James Cummings.

John hides in Lisbon.

James Creighton, Bulkely & Sons, and Gold & Sons.

☀P. E. Thomas
& George in the enclosed bill George Tyson on Cropper Benson &
Co. D.A. Smith

Alex Brown dies in 1834. They split future earnings into fifths with Alex Browns share being divided between the three American brothers. They increase their mom's share from $100K to $150K even though they say $100K is more than shed ever need.

Later that year the Susquehanna RR isn't doing well and George resigns as president from Mechs Bk and tells his brother William he thinks they should focus more on banking and less on goods.

## References

1. ↑ Brown, John Crosby. *A Hundred Years of Merchant Banking. 16.*