E.W. Holbrook & Company

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E. W. Holbrook & Company was a New York City dry goods firm which became bankrupt in July 1883. Located at 51 Leonard Street, near Broadway (Manhattan), in Lower Manhattan, the business was among the most well-known of its kind. The company, led by Edwin W. Holbrook and three other directors, was in debt in the amount of $750,000 The failure was attributed to losses involved in the operation of its three cotton mills. Holbrook also lost $500,000 on Wall Street (Manhattan) in speculation. During the week of E.W. Holbrook & Company's insolvency, 162 other firms in the United States failed.

New York City Largest city in the United States

The City of New York, usually called either New York City (NYC) or simply New York (NY), is the most populous city in the United States and the U.S. state of New York. With an estimated 2017 population of 8,622,698 distributed over a land area of about 302.6 square miles (784 km2), New York is also the most densely populated major city in the United States. Located at the southern tip of the state of New York, the city is the center of the New York metropolitan area, the largest metropolitan area in the world by urban landmass and one of the world's most populous megacities, with an estimated 20,320,876 people in its 2017 Metropolitan Statistical Area and 23,876,155 residents in its Combined Statistical Area. A global power city, New York City has been described as the cultural, financial, and media capital of the world, and exerts a significant impact upon commerce, entertainment, research, technology, education, politics, tourism, art, fashion, and sports. The city's fast pace has inspired the term New York minute. Home to the headquarters of the United Nations, New York is an important center for international diplomacy.

Dry goods term referring to supplies and manufactured goods

Dry goods is a historic term describing the type of product line a store carries, which differs by region. The term comes from the textile trade, and the shops appear to have spread with the mercantile trade across the British colonial territories as a means of bringing supplies and manufactured goods out to the far-flung settlements and homesteads that were spreading around the globe. Starting in the mid-1700s, these stores began by selling supplies and textiles goods to remote communities, and many customized the products they carried to the area's needs. This continued to be the trend well into the early 1900s; but with the rise of the department stores and catalog sales, the decline of the dry goods stores began.

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Director mismanaged finances

Holbrook owned Grafton Mill at Grafton, Massachusetts. He was president of the Springvale Mill Company of Springvale, Maine. He was also one of the principal officers of the National City Bank, a director of the Delaware, Lackawanna & Western Railroad, Western Railroad, and a member of the Union League.

Grafton, Massachusetts Town in Massachusetts, United States

Grafton is a town in Worcester County, Massachusetts, United States. The population, indicated by the 2014 town records is 14,268, in nearly 5,700 households. Incorporated in 1735, Grafton is the home of a Nipmuc village known as Hassanamisco Reservation, the Willard House and Clock Museum, Community Harvest Project, and the Tufts University Cummings School of Veterinary Medicine. Grafton consists of the North Grafton, Grafton, and South Grafton geographic areas, each with a separate ZIP Code. Grafton also operates the state's largest On-Call Fire Department, with 74 members.

Springvale, Maine Place in Maine, United States

Springvale is a village and former census-designated place in the city of Sanford in York County, Maine, United States. The population was 3,292 at the 2010 census. It is part of the Portland–South Portland–Biddeford, Maine metropolitan statistical area. The CDP was abolished when the town of Sanford reincorporated as a city.

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As an insider with the Delaware, Lackawanna & Western Railroad, Holbrook once profited by purchasing its stock for $80 a share and made a profit of $100,000. This led him into risky ventures as a margin (finance) buyer, and he extended his business operations on margins. When stock prices declined in the days prior to insolvency, Holbrook was unable to pay $40,000 which he owed stockbrokers.

In finance, margin is collateral that the holder of a financial instrument has to deposit with a counterparty to cover some or all of the credit risk the holder poses for the counterparty. This risk can arise if the holder has done any of the following:

Corporation history

E.W. Holbrook & Company was founded in Boston, Massachusetts under the name Clarke, Holbrook & Floyd. Clarke retired in January 1865, and afterward the firm was called Holbrook, Floyd & Company. It became E.W. Holbrook & Company in 1868.

The dry goods concern leased the Empire Mills in Troy, New York, from which it purchased a considerable amount in machinery. The company maintained two bank accounts, with National City Bank and Central National Bank. E.W. Holbrook & Company owed no money to National City Bank. [1]

Troy, New York City in New York, United States

Troy is a city in the U.S. state of New York and the seat of Rensselaer County. The city is located on the western edge of Rensselaer County and on the eastern bank of the Hudson River. Troy has close ties to the nearby cities of Albany and Schenectady, forming a region popularly called the Capital District. The city is one of the three major centers for the Albany Metropolitan Statistical Area (MSA), which has a population of 1,170,483. At the 2010 census, the population of Troy was 50,129. Troy's motto is Ilium fuit. Troja est, which means "Ilium was, Troy is".

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References

  1. The Dry Good Firm Of E.W. Holbrook & Co. Fail For $750,000, The New York Times , July 21, 1883, pg. 8.