W. A. Harriman & Co

W. A. Harriman & Co was a prominent American private investment bank founded in the aftermath of World War I. Established by W. Averell Harriman and his brother E. Roland Harriman, the firm rapidly became a significant force in international finance and industrial development during the interwar period. Its activities spanned global ventures in shipping, railroads, and commodity trading, culminating in a historic 1931 merger with the venerable Brown Brothers & Co. to form the enduring private partnership of Brown Brothers Harriman & Co..

History

The history of the firm is intrinsically linked to the ambitions of the Harriman family and the shifting economic landscape of the early 20th century. From its inception, the bank leveraged its principals' capital and connections to execute large-scale, often pioneering, transactions across continents. Its operational timeline was brief but intensely active, navigating the speculative boom of the Roaring Twenties and the onset of the Great Depression. The decision to merge with Brown Brothers & Co. preserved its legacy within one of Wall Street's oldest and most resilient institutions.

Founding and early operations

W. A. Harriman & Co was founded in 1919 by W. Averell Harriman, utilizing a portion of his substantial inheritance from his father, the legendary railroad magnate E. H. Harriman. He was soon joined by his younger brother E. Roland Harriman and their Yale University classmate Knight Woolley. Unlike traditional banks focused on commercial lending, the firm acted as an aggressive merchant bank, investing its own capital in equity ventures. Its early flagship operation was the purchase and reorganization of the Merchants Shipbuilding Corporation, aiming to capitalize on postwar shipping demand. The firm also made significant investments in German industry during the Weimar Republic and held interests in Soviet trade concessions, including the controversial Georgian Manganese Concession.

Merger with Brown Brothers

The merger with Brown Brothers & Co. in 1931 was a strategic response to the financial pressures of the Great Depression and a desire to create a more stable, diversified entity. Brown Brothers & Co., founded in 1818, was a conservative private bank with a sterling reputation and a strong focus on foreign exchange and commercial credit. The union combined Brown Brothers & Co.'s extensive correspondent banking network and risk-averse culture with the Harriman family's venture capital and industrial investment experience. The new partnership, named Brown Brothers Harriman & Co., was headquartered at 59 Wall Street and became the largest and oldest private bank in the United States.

Legacy and historical significance

The legacy of W. A. Harriman & Co is multifaceted, reflecting its role as a catalyst for major economic projects and as a precursor to modern private equity. The firm demonstrated the potent use of private capital for international industrial development, a model that would later be emulated by post-World War II institutions. Its merger created Brown Brothers Harriman & Co., which played critical roles in financing the Allied war effort and in establishing the Bretton Woods system. Furthermore, the firm served as the crucial launching pad for the public service career of W. Averell Harriman, who would become United States Ambassador to the Soviet Union, Secretary of Commerce, and Governor of New York.

Notable partners and associates

Beyond the founding partners, the firm attracted and developed several individuals of considerable note. Robert A. Lovett, a future United States Secretary of Defense and key architect of the Cold War national security apparatus, began his financial career there. Prescott Bush, a United States Senator from Connecticut and patriarch of the Bush political family, was a prominent partner who managed the merger with Brown Brothers & Co. and continued as a senior partner in the successor firm. Other associates included E. F. Hutton, founder of the brokerage firm E. F. Hutton & Co., who was briefly involved in its early shipping ventures.

Category:Investment banks of the United States Category:Companies based in Manhattan Category:Defunct banks of the United States Category:1919 establishments in New York (state) Category:1931 disestablishments in New York (state)