Chapter 87
In 1919, Floyd W. Robison, of Detroit, was granted a United States patent on a process for aging green coffee by treating it with micro-organisms, the product being known as Cultured coffee.
In the spring of 1920, there was held the third national coffee week, this time under the auspices of the Joint Coffee Trade Publicity Committee.
[Ill.u.s.tration]
CHAPTER x.x.x
DEVELOPMENT OF THE GREEN AND ROASTED COFFEE BUSINESS IN THE UNITED STATES
_A brief history of the growth of coffee trading--Notable firms and personalities that have played important parts in green coffee in the princ.i.p.al coffee centers--Green coffee trade organizations--Growth of the wholesale coffee-roasting trade, and names of those who have made history in it--The National Coffee Roasters a.s.sociation--Statistics of distribution of coffee-roasting establishments in the United States_
Coffee trading in the American colonies probably had its beginnings about the middle of the seventeenth century. Tea seems to have preceded coffee as an article of merchandise. Several merchants in the New England and New York settlements imported small quant.i.ties of coffee with other foodstuffs toward the close of the seventeenth century.
The early supplies of the green bean were brought from the Dutch East Indies, Arabia, Haiti, and Jamaica. About 1787, the French opened Mauritius and Bourbon to American s.h.i.+ps, which then began to bring back coffee and tea to the Atlantic-coast cities. Mocha coffee was being imported direct in American bottoms about 1804. Coffee from Brazil was first imported by the United States in 1809. Central America began s.h.i.+pping coffee to the United States in 1840. The total coffee imports in 1876 were 339,789,246 pounds, valued at $56,788,997, and received chiefly from Brazil, Haiti, British and Dutch East Indies, the West Indies, and Mexico.
New York early became the leading green-coffee market of the country.
There was a number of large importing merchants in New York in 1760, nearly all of whom brought in coffee. Among them were Isaac and Nicholas Gouverneur, Robert Murray, Walter and Samuel Franklin, John and Henry Cruger, the Livingstons, the Beekmans, Lott & Low, Philip Cuyler, Anthony Van Dam, Hugh and Alexander Wallace, Leonard and Anthony Lispenard, Theophylact Bache, and William Walton.
Some early green-coffee prices per pound were as follows:
1683--18s. 9d.; 1743--5s.; 1746--5s.; 1774--9s.; 1781[347]--96s. O.T.; 1782--2s. 1d. O.T.; 1783--1s.; 1789--10 cents.
Leading New York coffee importers in 1786 were Henry Sheaff, on the dock between Burling Slip and the Fly Market; John Rooney, 26 Cherry Street; William Eccles, 10 Hunters Key; Ludlow & Goold, 47 Wall Street; Scriba, Schroppel & Starmen, 17 Queen Street; and William Taylor, Crane Wharf.
The wholesale coffee roaster appeared about 1790; and from that time the separation between the green-coffee trader and the coffee roaster became more marked. In 1794 the princ.i.p.al green-coffee importers in New York were: Lawrence & Van Zandt; D. Smith & Co., 323 Pearl Street; Gilchrist d.i.c.kinson, 17 Taylor's Wharf; Armstrong & Barnewall, 129 Water Street; William Bowne, 265 Pearl Street; Stephen Cole & Son, 26 Ferry Street; J.S. De Lessert & Co., 123 Front Street; Joseph Thebaud, 262 Pearl Street; Nathaniel Cooper & Co., 38 Little Dock Street; Coll. M'Gregor, 28 Wall Street; David Wagstaff, 137 Front Street; Conkling & Lloyd, 15 Taylor's Wharf; and S.B. Garrick, Westphal & Co., 43 Cherry Street.
[Ill.u.s.tration: Hermann Sielcken
B.G. Arnold
F.B. Arnold
Joseph Purcell
SOME DEPARTED DOMINANT FIGURES IN THE NEW YORK GREEN COFFEE TRADE]
The leading New York coffee importers in 1848 were Henry and William Delafield, 108 Front Street; and Des Arts & Henser, 78 Water Street.
There were seven leading New York coffee importers in 1854, as follows: Aymar & Co., 34 South Street; Henry Coit & Son, 43 South Street; Henry Delafield, 129 Pearl Street; Howland & Aspinwall, 54 South Street; Mason & Thompson, 33 Pearl Street; J.L. Phipps & Co., 19 Cliff Street; and Moses Taylor & Co., 44 South Street.
Following the so-called "consortium" of 1868, the ramifications of which centered in Frankfort-on-the-Main--its speculations finally ending in disaster to many--the green-coffee trade was
About 1868, "iron steamers began to be freely availed of as carriers of coffee; and later on, the telegraph became a factor, rendering the business more exciting and expensive".
Coffee consumption in the United States had, moreover, increased from one pound per capita in 1790 to nine pounds per capita in 1882.
1892-93 the biggest figure in the world's coffee trade was George Kaltenbach, a German living in Paris, whose resources were estimated at twelve million to fifteen million dollars, and whose holdings at one time were said to be one million bags. He was reported to have made $1,500,000 on his coffee corner. In September, 1892, he bested a bull clique and forced prices down to twelve cents. Aided by three other European operators, he then started a bull syndicate, and put the price up to seventeen cents. The story of this corner, and of other notable coffee booms and panics, is told in more detail in chapter x.x.xI.
_Early Days of the Green Coffee Business_.
For a long time New York was the only important entry port for green coffee. Before the rise of New Orleans and San Francisco, many inland coffee roasters and grocers had their own buyers in the New York market.
The coffee district that still clings about lower Wall Street is rich in memories of by-gone merchants who once were big factors in the trade, and whose names, in many instances, have been handed down from generation to generation in the businesses that have survived them.
Any reference to the early days of the green-coffee importing, jobbing, and brokerage business in New York would not be complete without mention of a few of the pioneers:
P.C. Meehan is eighty-four years old at the time of writing (1922) and is dean of the New York green-coffee trade. With James H. Briggs he formed the firm of Briggs & Meehan. This later became Meehan & Schramm, with Arnold Schramm. The latter withdrew, and the firm became Creighton, Morrison & Meehan. Finally, Mr. Meehan established the present firm of P.C. Meehan & Co.
[Ill.u.s.tration: James H. Taylor
H. Simmonds
Edwin H. Peck
P.C. Meehan
THEIR a.s.sOCIATION WITH THE NEW YORK GREEN COFFEE TRADE DATES BACK NEARLY FIFTY YEARS]
When Mr. Schramm withdrew from the firm of Meehan & Schramm he founded the house of Arnold Schramm, Inc. Upon his retirement, this was succeeded by Sprague & Rhodes, the firm being composed of Benjamin Rhodes and Irvin A. Sprague.
Next oldest to P.C. Meehan in the New York green-coffee trade is Clarence Creighton, who started with Youngs & Amman, later C. Amman & Co., then Waite, Creighton & Morrison, then Creighton, Morrison & Meehan. Upon the breaking up of this firm, Mr. Creighton formed a partners.h.i.+p with James Ashland, under the name of Creighton & Ashland.
He later operated alone, and died August 15, 1922.
James H. Taylor is another "old-timer" who is still active. He began with T.T. Barr & Co. Later, with F.T. Sherman, he formed the firm of Sherman & Taylor. When Mr. Sherman withdrew, the firm became James H.
Taylor & Co. Mr. Taylor is now with Minford, Lueder & Co. He has been five years president, eleven years treasurer, and twenty-six years on the board of governors of the New York Coffee Exchange.
One of the most honored names in the green coffee trade of New York is that of Peck. Edwin H. Peck began, at the age of seventeen years, with Hart & Howell, b.u.t.ter and cheese merchants. He then went in the same business for himself. Four years later, he abandoned this to go into the coffee brokerage business with his brother, Walter J. Peck. In about five years, the brothers branched into the coffee importing and jobbing business under the firm name of Edwin H. Peck & Co. Later it was changed to the present style of E.H. & W. J. Peck. Since the death of Walter J.
Peck in 1909, Edwin H. has conducted the business. The latter was a member of the board of governors of the New York Coffee Exchange for twelve years, and has been an important factor in the upbuilding of that inst.i.tution.
William D. Mackey began with Small Bros. & Co. He then went into partners.h.i.+p with C.K. Small as Mackey & Small. Later, he formed the firm of Arnold, Mackey & Co. with Francis B. Arnold. The latter dropped out, and the firm became Mackey & Co. He is now operating alone. Mr. Mackey was another of the incorporators of the New York Coffee Exchange.
Alexander H. Purcell, a brother of Joseph Purcell, entered the employ of Bowie Dash & Co. as a boy. From there he went to Williams, Russell & Co., then to the Union Coffee Co., and later to Hard & Rand. He is now head of the firm of Alex. H. Purcell & Co.
Robert C. Stewart first became known with Booth & Linsley. He later went with Joseph J. O'Donohue & Sons, leaving there to establish the present firm of R.C. Stewart & Co.
Another old-timer, Joseph D. Pickslay, may be seen at his desk in Williams, Russell & Co.'s office every day, although Frank Williams, who began with Winthrop G. Ray & Co., and Frank C. Russell, both of Williams, Chapin & Russell, and then of Williams, Russell & Co., have pa.s.sed on. Fred P. Gordon, now head of Fred P. Gordon & Co., was formerly with Williams, Russell & Co.
The Mitch.e.l.l brothers, William L. and George, forming the firm of Mitch.e.l.l Bros., have been familiar Front Street figures for many years.
A. Wakeman, "the historian of the coffee trade," as he is often called, began with Olendorf, Case & Gillespie. Later he went with Thompson & Bowers, and then became a member of the firm of Baiz & Wakeman. He is now in business alone. For thirty-eight years Mr. Wakeman has been secretary of the Lower Wall Street Business Men's a.s.sociation. He is the author of _History and Reminiscences of Lower Wall Street and Vicinity_.
H. Simmonds, of Simmonds & Bayne; later, of Simmonds & Newton; then, of the Brazil Coffee Co.; and finally, of H. Simmonds & Co., is at the time of writing one of the oldest coffee merchants on Front Street, having been in business in Baltimore and New York for more than fifty years. He has a desk in the office of his son, W. Lee Simmonds, of W. Lee Simmonds & Co.
Bayne is another well known Front Street name. The firm of William Bayne & Co. was established by William Bayne, Sr., in Baltimore. The business was moved to New York about 1885. The founder's three sons, William, Jr., Daniel K., and L. P., entered the employ of the firm in Baltimore, and moved with it to New York.