Shearson, Hammill & Co.
| Company type | Private partnership |
|---|---|
| Industry | Financial services |
| Founded | 1902 |
| Founder | Edward Shearson |
| Defunct | 1974 |
| Fate | Purchased in 1974 by Hayden, Stone & Co. |
| Successor | Shearson Hayden Stone, Shearson/American Express (1981) |
| Headquarters | New York, New York, United States |
| Products | Investment banking, Brokerage |
Shearson, Hammill & Co. was a prominent Wall Street brokerage and investment banking enterprise established in 1902 by Edward Shearson and Caleb Wild Hammill. The firm specialized in stock and commodity brokerage, with a particular focus on grain and cotton markets. It held memberships in the New York Stock Exchange, Chicago Stock Exchange, and the Chicago Mercantile Exchange.
The company’s headquarters were situated in the Empire Building at 71 Broadway, New York City, with a significant operational office located in Chicago.
In 1974, Shearson was acquired by Hayden Stone & Co., leading to the creation of Shearson Hayden Stone.
History
Established in 1902 by financier Edward Shearson, formerly comptroller of U.S. Steel, alongside Caleb Wild Hammill, the firm capitalized on Shearson’s extensive expertise in finance and industrial sectors. By the conclusion of World War I, it had expanded to include six branch offices and seven correspondent relationships.
During the 1960s, Shearson enhanced its market presence through impactful advertising initiatives and broadened its reach to encompass 63 offices both within the United States and internationally. This expansion was supported by a well-regarded securities research division.
The stock market downturn of the early 1970s adversely affected Shearson’s financial standing, resulting in substantial workforce reductions in 1973. Confronted with reduced capital reserves, the company merged with the financially stronger Hayden Stone, Inc., under chairman Sanford I. Weill’s leadership. This union in 1974 formed Shearson Hayden Stone, retaining the established Shearson brand while strengthening the combined firm’s market position.
In 1979, guided by Weill as CEO, Shearson Hayden Stone entered an all-stock transaction valued at $83 million to merge with Loeb, Rhoades, Hornblower & Co., creating Shearson Loeb Rhoades. With assets totaling $260 million and revenues of $550 million, this merger positioned it as the second-largest brokerage firm in the U.S., trailing only Merrill Lynch, while significantly boosting its investment banking capabilities.
Weill subsequently sold Shearson Loeb Rhoades to American Express in 1981, resulting in the formation of Shearson/American Express. American Express further expanded this lineage by acquiring Lehman Brothers Kuhn Loeb in 1984, integrating it into the Shearson division as Shearson Lehman/American Express.
The Shearson brand was ultimately discontinued in 1994 following Primerica’s acquisition from American Express. Although there were initial plans to maintain the name alongside Smith Barney, this strategy was abandoned.
Acquisition history
The firm’s evolution is marked by a series of significant mergers and acquisitions involving key entities within the financial sector:
See also
References
- Harrison, Mitchell C., editor. Prominent and progressive Americans: an encyclopædia of Contemporaneous Biography. Volume II. New York Tribune, 1904. (See Edward Shearson, p. 200)
- Defunct financial services firms in the United States
- American enterprises founded in 1902
- Financial services firms founded in 1902
- Banks founded in 1902
- Banks closed in 1974
- Former U.S. investment banks
- Shearson Lehman/American Express
- 1902 establishments in New York City
- 4
- American companies established in 1902
- Companies of the United States by year of establishment