Charles R. Blyth
Charles R. Blyth | |
|---|---|
| Born | 31 July 1883 Ohio, United States |
| Died | 25 August 1959 (aged 76) |
| Occupation(s) | Investment banker, arts patron, political fundraiser |
| Known for | Co-founder of Blyth, Witter & Co. |
Charles R. Blyth (July 31, 1883 – August 25, 1959) was a prominent investment banker and co-founder of Blyth, Witter & Co., recognized as the inaugural investment bank in the Western United States. This firm eventually evolved into Blyth, Eastman Dillon & Co.. Beyond his financial career, Blyth was also known for his patronage of the arts and involvement in political fundraising.
Early life
Originating from Ohio, Blyth completed his studies at Amherst College in 1905 before relocating to California in 1908. In 1922, he made a brief return to the East Coast to attend the funeral of George Harris, then-president of Amherst.
Investment
In 1910, Blyth joined Louis Sloss & Co., where he encountered Dean G. Witter. Following Sloss’s bankruptcy triggered by the Federal Reserve Act of 1913, Blyth and Witter established Blyth Witter & Co. in April 1914 alongside partners George Leib and Roy Shurtleff. Their initial funding included a $50,000 loan from the Bank of California and an additional $10,000 contributed by Witter’s mother. The company operated out of San Francisco’s Merchants Exchange Building, utilizing office furnishings and client records inherited from Sloss.
The firm initially financed public utilities such as Mt. Whitney Power and Electric. In 1915, Blyth Witter reorganized with $100,000 capital—Blyth and Witter each held 35%, while junior partners owned 10%. The following year, Jean Carter Witter, Dean Witter’s cousin and a University of California, Berkeley graduate, joined the team.
During World War I, multiple employees from Blyth Witter served as commissioned officers. After the war ended, the firm invested $5 million in Pacific Gas & Electric stock—a venture that resulted in losses but enhanced its reputation for ethical business practices.
Throughout the 1920s, Blyth Witter expanded its reach with branches extending to Chicago. The firm provided financing for Holt Manufacturing Company and played a role in its merger with Best to create Caterpillar Inc.. A strategic disagreement led Dean Witter to sell his stake and establish Dean Witter & Co., while Blyth opened an office in London in 1925 and supported infrastructure projects like the Carquinez Bridge. Additionally, Blyth financed the construction of the Russ Building skyscraper, moving the company’s offices there by 1927.
In 1928, Blyth secured a seat on the New York Stock Exchange and received mention in The Wall Street Journal. Concerned about speculative risks at their branch offices, Roy Shurtleff arranged for a $7 million liquidation of risky assets prior to the 1929 market crash—actions that helped Blyth & Co. weather significant losses.
The Great Depression led to a decline in bond issuance and reduced company revenues; consequently, officers accepted salary reductions. Despite these difficulties, Blyth remained instrumental in funding major projects such as the Golden Gate Bridge alongside A. P. Giannini of Bank of America.
Politics
A significant supporter of the Republican Party, Blyth financed Earl Warren’s successful 1942 campaign for Governor of California. He anticipated influencing appointments within public utilities to secure bond trading opportunities for his investment firm in California. However, when Warren awarded bond contracts to a lower bidder, Blyth redirected his political support to Goodwin Knight, who succeeded Warren as governor in 1953 after Warren became Chief Justice of the United States.
Clubs and society
During World War I, Blyth took charge of Northern California's Liberty Loan campaign and later led the Victory Fund Committee throughout World War II. From 1944 to 1946, he headed the San Francisco branch of the American Red Cross. His leadership extended to the Burlingame Country Club, where he held both president and vice president positions. Blyth also served as president of the Philharmonic Society in San Mateo County and was vice president on the boards of the San Francisco Symphony and Opera. He actively supported fundraising efforts for the American Cancer Society and chaired the California Olympic Commission responsible for the 1960 Winter Olympics held in Squaw Valley.
His membership included prestigious clubs such as the Bohemian Club, Pacific-Union Club, and New York City’s Links Club. Blyth contributed as a trustee of Stanford University, a director at Stanford Research Institute, and a trustee for several San Francisco institutions including the De Young Museum, St. Luke's Hospital, and Mills-Peninsula Hospital. Additionally, he played a pivotal role in the Blyth–Zellerbach Committee, a consortium of leading San Francisco industrialists funding various civic initiatives.
Personal life
In 1915, Blyth wed Marjorie Ramsay, with whom he had two daughters before her passing in 1923. Two years later, in 1925, he married Marjorie’s sister Katharine Ramsay; together they had a daughter and a son named Charles R. Blyth Jr.
The couple acquired "Strawberry Hill" in 1936, an Italian Renaissance Revival residence located in Hillsborough, California. Originally constructed for Stanford trustee Joseph Donohoe Grant, this home underwent extensive renovations under their care. It gained recognition through a feature in Life magazine in 1947 and is documented in the Historic American Buildings Survey.
Blyth ceased smoking in 1940 and enforced a strict no-smoking rule within his workplace. He passed away from heart failure at Strawberry Hill in August 1959, survived by eight grandchildren. His widow Katharine Blyth died in 1975.
Legacy
To honor Blyth’s significant contributions to organizing the 1960 Winter Olympics, Blyth Arena at Squaw Valley was named in his memory. In 1978, the Blyth family endowed Stanford University with $75,000 to establish the Charles R. Blyth Fund—an investment portfolio managed by finance students aimed at providing practical experience in financial decision-making. By 2010, this fund had grown to nearly $140,000 despite distributing 25% of its annual gains to the university’s general fund. The students’ investment results have generally exceeded those of the S&P 500.