Hornblower, Weeks, Noyes & Trask
| Company type | Private |
|---|---|
| Industry | Brokerage, Investment banking |
| Founded | 1888 |
| Founder | Henry Hornblower, John W. Weeks |
| Defunct | 1978 |
| Fate | Merged with Loeb, Rhoades & Co. to form Loeb, Rhoades, Hornblower & Co. |
| Headquarters | New York City , United States |
Area served | United States, Europe |
| Products | Brokerage services, Investment banking |
Hornblower & Weeks was a brokerage and investment banking firm established in 1888 by Henry Hornblower and John W. Weeks. By the late 1970s, it had grown to become the eighth-largest member firm of the New York Stock Exchange in terms of retail branches, operating 93 offices throughout the United States and Europe.
In the early 20th century, the firm was instrumental in providing financing to leading automobile manufacturers such as Dodge Motors, General Motors, and Hudson Motor Car Company.
The company later operated under the names Hornblower & Weeks, Hemphill, Noyes, and eventually Hornblower, Weeks, Noyes & Trask before being acquired by Loeb, Rhoades & Co., which led to the formation of Loeb, Rhoades, Hornblower & Co..
Founding and early history
On August 7, 1888, Henry Hornblower and John W. Weeks founded Hornblower & Weeks as a successor to Hornblower & Page, a firm originally started by Henry’s father, Edward Thomas Hornblower.
Henry Hornblower entered his father’s business in 1879 at age 16. Born on June 6, 1863, in Lawrence, Massachusetts, he hailed from a distinguished Boston family with a strong local legacy.
Following the death of Augustus A. Page in early 1888 and Edward Hornblower’s retirement due to blindness, Henry Hornblower joined forces with John Weeks to establish the new company. Their first office was located at 51 State Street, staffed initially by a single clerk, James J. Phelan, who later became a partner until his passing in 1934. In 1889, they acquired a seat on the New York Stock Exchange for $19,000 and moved their operations to the Merchant’s Bank Building on Devonshire Street. The firm survived the Panic of 1893 and expanded into larger quarters on the second floor of the Exchange Building at 53 State Street.
1900-1950
By the turn of the century, Hornblower & Weeks had amassed a net worth of $400,000, which doubled to $800,000 by 1902. Between 1903 and 1904, founding partner John W. Weeks orchestrated the merger of the First National Bank of Boston with the National Bank of Redemption, creating New England’s largest banking institution. In 1907, new offices were opened in Providence and Chicago along with the establishment of a Bond department. That same year, the firm became one of Wall Street’s pioneers in creating a Statistical and Research Department.
In 1913, Ralph Hornblower, son of Henry Hornblower, joined as a partner while John W. Weeks stepped down after his election to the U.S. Senate. Weeks played a significant role in founding the Federal Reserve System in 1914 and later served as U.S. Secretary of War.
After the stock market crash of 1929 resulted in limited capital losses except for syndicate activities, the firm scaled back operations. Although capital peaked at over $16 million by 1930, it declined during the Great Depression. Throughout the 1930s, Hornblower expanded its reach through acquisitions including a merger with G.M.-P. Murphy & Co., known for financing major aviation firms such as Pan American Airways, United Air Lines, Boeing, and Lockheed.
By mid-century, Henry Hornblower II and Ralph Hornblower Jr. had joined as partners within the firm.
Growth and consolidation from 1950 to 1977
In 1953, Hornblower & Weeks expanded its national presence by merging with the Chicago-based Paul H. Davis & Co. That same year, the firm further extended its footprint in the Southern United States through the acquisition of cotton brokerage Scatterty & Jones, increasing its total office count to 19 across the country. Two years later, in 1955, Reed & Company of Worcester was incorporated into the firm.
By the 1960s, the company had grown to encompass thirty offices spanning the entire nation and secured memberships on every principal American exchange by 1963.
The merger in 1963 with Hemphill, Noyes & Co., which was established in 1919 by Jansen Noyes and Clifford Hemphill, resulted in the newly named Hornblower & Weeks, Hemphill, Noyes. In 1968, Jansen Noyes Jr. assumed the role of chairman. Following the acquisition of Spencer Trask & Co., the firm adopted the name Hornblower, Weeks, Noyes & Trask. At this juncture, Hornblower was ranked eighth among New York Stock Exchange member firms based on retail office count, operating a total of 93 retail sales locations throughout the United States and Europe.
Divestiture of Hornblower
In January 1977, Loeb, Rhoades & Co. combined with Hornblower, Weeks, Noyes & Trask to create Loeb, Rhoades, Hornblower & Co.. The integration process encountered significant difficulties due to expensive back-office system mergers; as a result, by late 1978, the merged entity was experiencing substantial financial losses.
During the 1960s and 1970s, Sanford I. Weill strategically consolidated brokerage firms under Shearson Hayden Stone. By early 1979, facing operational challenges, Loeb's merged company sought acquisition options. Over Mother's Day Weekend that year, Loeb consented to merge with Shearson, forming Shearson Loeb Rhoades, with Weill appointed CEO and John Loeb as chairman. Upon its establishment, Shearson Loeb Rhoades ranked among top investment banks with equity capital amounting to $250 million.
Subsequent developments
Following its merger with Shearson, the Hornblower brand was discontinued. In 1981, Weill sold this combined enterprise to American Express, leading to the formation of Shearson/American Express.
Shortly thereafter, Ralph Hornblower Jr. along with Ralph (Ray) Hornblower III established Hornblower & Company, which operates within Connecticut and Massachusetts.
Merger history
The following diagram depicts significant mergers involving this firm and its successors (note: not comprehensive):
References
- Leonard, John W. Who's who in America, Volume 7. 1912
- Who's who in finance, banking and insurance. v. 1 - 1911
- Langland, James. The Chicago Daily News Almanac and Year Book for 1909. 1909
- Ralph Hornblower Jr. Dies – Leader in Brokerage Concern. New York Times, March 12, 1987