James Lorin Richards
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James Lorin Richards (January 8, 1858 – January 2, 1955) was an American financier and industrialist based in Boston, Massachusetts.


Early life

Richards was born on a farm in East Longmeadow, Massachusetts, the son of Rodolphus Palford and Sarah E. (Burt) Richards. He never finished high school. Instead, in 1875 at age 17 he moved to Boston to learn the wholesale
tobacco Tobacco is the common name of several plants in the genus '' Nicotiana'' of the family Solanaceae, and the general term for any product prepared from the cured leaves of these plants. More than 70 species of tobacco are known, but the ...
trade under a family friend.


Tobacco

In 1875 at age 17 he moved to Boston to learn the wholesale tobacco trade as a salesman under A.R. Mitchell, a tobacco merchant and family friend. When Mitchell retired in 1897, the firm was continued by Richards and a partner, George W. Stinson, until 1903. By 1900 Richards had gotten into manufacturing when he organized the Harry Weissinger Tobacco Company of Louisville, Ky. with Harry Weissinger, John Middleton, J.W. O'Bannon, F.B. Phillips and H.W. Keisker of Louisville, and George W. Stinson of Boston (Boston Globe, Jan. 26, 1900), (New Tobacco Company. Richmond Dispatch, Mar. 25, 1902.) He became a director for the Universal Tobacco Company, 1901–1904. The Directorate of the Universal Tobacco Company, "it is understood, will include Gen. E.A. McAlpin, Ferdinand Hirsch, George R. Sheldon, W.D. Judkins, J.L. Richards, and Frank Tilford. The company is said to have the backing of a number of strong financial interests." (Universal Tobacco Company. New York Times, May 21, 1901.) They chose as president William H. Butler, who had been "one of the organizers of the American Tobacco Company, and afterward President of the Union Tobacco Company at the time it was bought by the American Company." (Tobacco Company's President. New York Times, May 24, 1901.) Universal bought out the McAlpin factory of New York and the Harry Weissinger tobacco factory of Louisville, Ky., and was negotiating for the Piper Company of St. Louis, Nall & Williams in Louisville, and the Pall Mall cigarette factory. (Tobacco Factory Sold. New York Times, Aug. 19, 1901.) Weissinger was elected to the Universal board. (Universal Tobacco Company. New York Times, Oct. 9, 1901.) D.H. McAlpin & Co. actually went to the Consolidated Tobacco Company. (Tobacco Trust Gets D.H. M'Alpin & Co. New York Times, Nov. 22, 1901.) The Universal Tobacco Company was incorporated in New Jersey by Samuel L. Pinkerton, Thomas L. Prior, and Wendell J. Wright. (The Tobacco Situation. New York Times, Nov. 23, 1901.)


Railways, railroads and public utilities

In 1892, Richards began investing in trolley systems, including the Wellesley & Boston, Newton & Boston and Newtonville & Watertown electric railways. Recent legislation had given
Boston Elevated Railway The Boston Elevated Railway (BERy) was a Tram, streetcar and rapid transit railroad operated on, above, and below, the streets of Boston, Massachusetts and surrounding communities. Founded in 1894, it eventually acquired the West End Street R ...
authority to consolidate as well. Boston Elevated was being co-managed by Robert Winsor. In 1897 Richards and Winsor crossed paths. They were at odds over the consolidation of several of these smaller railways, but the main focus was the road of the Newtonville and Watertown. Winsor, backed by Kidder, Peabody was trying to build his railway which competed directly with Richards plan. When Winsor offered to buy him out, Richards passed. When Winsor launched a negative publicity campaign, the stock of the Newtonville & Watertown began dropping. Slowly but steadily Richards accumulated these shares, over time giving him complete control of the Newtonville & Watertown road. When Winsor figured out what was happening he again offered to buy Richards out. Richards ultimately agreed, but at a far greater premium than the first offer. After the battle with Boston Elevated was settled, Richards increased his holdings in a handful of other suburban railways: the South Middlesex, Natick and Cochituate, Westboro and Waltham, and Lexington and Boston. Management had run these lines into a poor financial state as well. After careful planning, Richards took his plan directly to the public. It took 5 months of selling this idea but he successfully convinced the public to raise fares from 5 to 6 cents. One of the key turning points was when the public learned he took no salary. "He kept no secrets from the public, and the public granted him their confidence in return". Eventually, most would be folded into the
Boston Suburban Electric Companies Boston is the capital and most populous city in the Commonwealth of Massachusetts in the United States. The city serves as the cultural and financial center of New England, a region of the Northeastern United States. It has an area of and a ...


New York, New Haven and Hartford Railroad

In 1913 the
New York, New Haven and Hartford Railroad The New York, New Haven and Hartford Railroad , commonly known as The Consolidated, or simply as the New Haven, was a railroad that operated principally in the New England region of the United States from 1872 to 1968. Founded by the merger of ...
commonly referred to as the "New Haven" had been struggling for several reasons: an Interstate Commerce Investigation, an unusually high frequency of wrecks causing great loss of life, poor management, a growing distrust from the public under intensifying criticism, and two lawsuits resulting in the indictment of former president New Haven Charles S. Melee. The stock had been struggling as well, from a peak of 279 a few years earlier, by December it was now hitting 67 3/8. Then to make matters worse, for the first time in 40 years the dividend was skipped. J.L. Richards was invited on October 22, 1913, to join the 27-man board of directors. This pedigreed group included Arthur T. Hadley of Yale, William Rockefeller and J.P. Morgan of New York. Richards used his previous railroad knowledge studying the company's history very carefully. He concluded the company could be turned around. He bought more and more stock as the price was depressed. Soon he became the largest individual stockholder in the company. Early in 1914, Richards was named to the executive committee to replace J.P. Morgan. Coined the "European Loan", the $23,000,000 loan to the “New Haven” from a French company would mature on April 21, 1925. Richards wanted to either retire the loan, renew it, or float a domestic bond in its place. Even though the New Haven's balance sheet was looking better since those tenuous days in 1913, most bankers were reluctant to take on a debt this large. When the Boston finance team, headed up by Richards, met the New York bankers at the House of Morgan, J.P. Morgan himself warned “If you can get the money enough to pay down 10% of the loan and get an extension for the balance, you will be fortunate. The commission charges on a bond issue for $23,000,000 would be tremendous, if such an issue could be sold at all.” Richards fired back “Mr Morgan, I do not agree with you at all. We will have the amount of this loan not only subscribed-but oversubscribed. I'll sell the bond issue myself, and it won’t cost the New Haven one cent for commission charges.” The morning after his return from the New York meeting, he got to work calling on his circle of bankers, individuals, trust and insurance companies. Out of 64 calls, he sold subscriptions to 62 of them. Richards understood how important keeping the New Haven running: it employed hundreds of people directly, thousands of people indirectly, and was a vital conduit for New England in general. Business leaders and civic minded people alike understood this and supported it. This enthusiasm led to the issue being oversubscribed; the issue closed when the offers to buy reached a total of $31,574,900. Those who held these bonds received 6% interest and were paid in full when the bonds were retired. On July 20, 1948, J.L. Richards retired as a director. He had been a director of the New York, New Haven and Hartford Railroad for thirty-five years and was 90 years old. That very same day the company adopted the following minute: "The announcement of the resignation of James L. Richards as Director is received with great regret. Since October 22, 1913, he has served continuously both as Director and member of the Executive Committee. He brought to the board a wealth of business experience and his wise counsel has been invaluable in directing the affairs of this company. An outstanding contribution was in 1925 when the company was faced with the necessity of funding the French loan of $23,000,000. Upon his advice and personal solicitation the banks and industries in the territory of the Company joined with the officers and employees so that the loan was oversubscribed. Mr Richards was a member of the committee upon whom fell the burden of preparing and consummating a reorganization plan. With the return of the Company’s property to private control he was named as a member of the new Board of Directors. “His conception of the duties of a Director measured up to the highest standards of law and morality, a standard from which he never deviated. His retirement carries with it the esteem and affection of his associates."


Coal, coke and gas

In 1904, at the request of Robert Winsor, Richards was asked to assist Kidder Peabody in the consolidation of a number of smaller Boston gas companies. (Boston Gas Light Company, Roxbury Gas Light Company, South Boston Gas Light Company, Bay State Gas Company, Brookline Gas Light Company, Dorcester Gas Light Company, Jamaica Plain Gas Light Company and the Massachusetts Pipe Line Company). Crosscurrents arose with all kinds of objections, including the Public Franchise League. He persevered, and one by one Richards won them over. Richards was so deeply concerned with customer service he required every single complaint that came in to be put on his desk for follow-up Each objection was countered with the highest visibility of the company's finances, goals, diligence, and commitment and he successfully brought them all together in 1905 under the new moniker, the Boston Consolidated Gas Company. The very first year Boston Consolidated lowered the retail price of gas, then surprised shareholders with dividend payment. Then he started branching out vertically. Just like tobacco, he identified a cheap source, in this case coal from the Fairmont Field in West Virginia, then improved upon and/or streamlined the distribution channels right up to the end user. Consolidated would then buy many of the service and support companies: steamers, tugs, barges ad coal plants, etc., and in many instances he would design a better alternative than what had been used in the past. Until shortly before his death in 1955, he had been chairman of the board of the Boston Consolidated Gas Company for over 45 years.


Innovations and improvements

*Using newly designed Coal Collier ships that left from Newport News, VA instead of using traditional rail lines. This revolutionized coal transportation. *When threatened with coal mining
strike Strike may refer to: People *Strike (surname) * Hobart Huson, author of several drug related books Physical confrontation or removal *Strike (attack), attack with an inanimate object or a part of the human body intended to cause harm * Airstrike, ...
s, he discovered coke was as good or better in the water gas generators. *In 1908 the creation and implementation of the first Employee Participation Profit Sharing, (Boston Consolidated Gas Co.), Although this concept originated at Consolidated, it was widely adopted nationally. *Credited in 1920 with the founding of New England's first oil refinery ( Beacon Oil Company) and
blast furnace A blast furnace is a type of metallurgical furnace used for smelting to produce industrial metals, generally pig iron, but also others such as lead or copper. ''Blast'' refers to the combustion air being supplied above atmospheric pressure. In a ...
(New England Gas & Coke-1899) *Was first to recommend employees have representation on company boards.(Boston Consolidated Gas Co.)


Shipping and shipbuilder

Boston Towboat had been founded in 1857 as T-Wharf Towing. At the time it was owned by a company called the
Mystic Steamship Company Mystic Steamship Company, also known as Boston Tow Boat Company was a Boston, Massachusetts shipping company named after the Mystic River. The company operated from 1854 until its closure in 1985. History The company was founded in 1854 as the ...
. Mystic Steamship operated coal carrying colliers, transporting coal to and from east coast ports such as New York, New York; Baltimore, Maryland; and Newport News, Virginia. However, on June 30, 1917, ownership changed hands when T-Wharf towing was absorbed to consolidate several commercial enterprises controlled by Massachusetts Gas Cos. The new company, New England Fuel And Transportation, of which J.L. Richards was CEO and a trustee, took over the assets and liabilities of The New England Gas and Coke Co., Boston Tow Boat Co., Federal Coal and Coke Co., and the assets, liabilities and business of the New England Coal and Coke Co., pertaining to the transportation of coal such as its fleet of steamers, tugs and barges, its coal plants at Everett and Beverly, and its stock interest of 2000 shares (60%) in the J.B.B Coal co. The U.S. Navy acquired ''Munalbro'' from Munson Steamship Lines for
World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
service as a cargo ship on 17 September 1918 and commissioned her as USS ''Munalbro'' at Newport News the same day with Lieutenant Commander F. E. Cross,
USNRF The United States Navy Reserve (USNR), known as the United States Naval Reserve from 1915 to 2004, is the Reserve components of the United States Armed Forces, Reserve Component (RC) of the United States Navy. Members of the Navy Reserve, called ...
, in command. Unlike many of the former
merchant ship A merchant ship, merchant vessel, trading vessel, or merchantman is a watercraft that transports cargo or carries passengers for hire. This is in contrast to pleasure craft, which are used for personal recreation, and naval ships, which are ...
s the Navy acquired in 1917 and 1918 for use in the war, ''Munalbro'' did not receive a Navy identification number (Id. No.). On 21 March 1919 ''Munalbro'' decommissioned and was delivered to the
United States Shipping Board The United States Shipping Board (USSB) was a corporation established as an emergency agency by the 1916 Shipping Act (39 Stat. 729), on September 7, 1916. The United States Shipping Board's task was to increase the number of US ships supporting ...
for simultaneous return to Munson Steamship Lines. She returned to mercantile service as SS ''Munalbro''. Boston enterprise Eastern Gas And Fuel purchased the steamship, converted for coal, and in 1936 her name was changed to SS ''James L. Richards'' on behalf of longtime EG&F director James Lorin Richards. Her subsequent commercial service extended for three and a half decades and she was scrapped in 1954.


Real estate

Located in
West Falmouth, Massachusetts West Falmouth is a census-designated place (CDP) in the town of Falmouth in Barnstable County, Massachusetts, United States. The population was 1,738 at the 2010 census. West Falmouth Village Historic District is at the heart of West Falmou ...
, Chapoquoit Island was previously known as "Hog Island"; the name Chapoquoit is thought to have been modeled after that of a band from a local Native American tribe, the Chappaquiddick
Wampanoag The Wampanoag, also rendered Wôpanâak, are a Native Americans in the United States, Native American people of the Indigenous peoples of the Northeastern Woodlands, Northeastern Woodlands currently based in southeastern Massachusetts and forme ...
. Richards had 3 summer homes on the island. Two are pictured. The third home was where the crew of the "Dorcas", Richards yacht stayed. Many were landscaped by
Frederick Law Olmsted Frederick Law Olmsted (April 26, 1822 – August 28, 1903) was an American landscape architect, journalist, Social criticism, social critic, and public administrator. He is considered to be the father of landscape architecture in the U ...
. Chapoquoit was developed by Boston business magnate, Charles Henry Jones, and in many cases the homes have remained in the same families for generations.


Philanthropy

Richards had a profound impact on Boston. His philanthropy, although mostly anonymous, was far-reaching, including generous contributions to the Boston Police Dept. and
Northeastern University Northeastern University (NU or NEU) is a private university, private research university with its main campus in Boston, Massachusetts, United States. It was founded by the Boston Young Men's Christian Association in 1898 as an all-male instit ...
. Perhaps the most enduring was his unwavering commitment to Northeastern, especially in its formative stages. The university began as evening education for employed young men, conducted by the Boston Young Men's Christian Association. When it was incorporated in 1904, the legislative act provided that four of its seven directors would be members of the board of directors of the Boston YMCA. "The formal organization of the Northeastern University Corporation, the most important single event in the evolution of Northeastern's structure, took place on January 22, 1937, at a dinner meeting at which James L. Richards was host and chairman."


See also

*
Boston Elevated Railway The Boston Elevated Railway (BERy) was a Tram, streetcar and rapid transit railroad operated on, above, and below, the streets of Boston, Massachusetts and surrounding communities. Founded in 1894, it eventually acquired the West End Street R ...
*
James Lorin Richards House The James Lorin Richards House is an historic house and carriage barn in Newton, Massachusetts. The house is located at 47 Kirkstall Road and the carriage barn, which has been converted to a residence, is at 22 Oakwood Road. The high-style Sh ...
*
Middlesex and Boston Street Railway The Middlesex and Boston Street Railway (M&B) was a streetcar and later bus company in the area west of Boston. Streetcars last ran in 1930, and in 1972, the company's operations were merged into the Massachusetts Bay Transportation Authority (MBT ...
*
New York, New Haven and Hartford Railroad The New York, New Haven and Hartford Railroad , commonly known as The Consolidated, or simply as the New Haven, was a railroad that operated principally in the New England region of the United States from 1872 to 1968. Founded by the merger of ...
* SS James L. Richards (''formerly USS Munalbro'')


References


External links


James Lorin Richards - The Story of a New England Industrialist ''(eBook)''Electric Railway Journal 1914
{{DEFAULTSORT:Richards, James Lorin 1858 births 1955 deaths People from East Longmeadow, Massachusetts American businesspeople