All About Coffee

CHAPTER XXX

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 principal 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 Association--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 quantities 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 ships, 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 shipping 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 principal green-coffee importers in New York were: Lawrence & Van Zandt; D. Smith & Co., 323 Pearl Street; Gilchrist Dickinson, 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.

[Illustration: 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 in a precarious condition until well into the eighties. "Previously," says a contemporary writer, "it had been the safest and prettiest of all colonial produce."

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 XXXI.

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.

[Illustration: James H. Taylor

H. Simmonds

Edwin H. Peck

P.C. Meehan

THEIR ASSOCIATION 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 partnership 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, butter 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 institution.

William D. Mackey began with Small Bros. & Co. He then went into partnership 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 passed on. Fred P. Gordon, now head of Fred P. Gordon & Co., was formerly with Williams, Russell & Co.

The Mitchell brothers, William L. and George, forming the firm of Mitchell 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 Association. 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.

Daniel K. Bayne became associated with Henry Sheldon & Co., and later was a member of Simmonds & Bayne. He then returned to William Bayne & Co. and was senior partner at the time of his death in 1915. William Bayne, Jr., for many years one of the governors and a past-president and vice-president of the New York Coffee Exchange, and his brother, L.P. Bayne, now conduct the business.

John T. Foley, now of the Commercial Coffee Co., began with Kirkland Bros. From there he went to Ezra Wheeler & Co., then to H.W. Banks & Co., Thompson, Shortridge & Co., and William Hosmer Bennett & Son.

Joshua Walker formed a partnership with James Stewart as Stewart & Walker. Since the retirement of Mr. Stewart some years ago, Mr. Walker has been in business alone.

Three other veterans of the trade are still in the harness: Louis Seligsberg, formerly of Wolf & Seligsberg, is now alone; Henry Schaefer has been at the head of S. Gruner & Co. since the death of Siegfried Gruner; Col. William P. Roome, who operated for some time as Wm. P. Roome & Co., is now head of the coffee department of Acker, Merrall & Condit Co.

[Illustration: O.G. Kimball Boston

James C. Russell New York

James W. Phyfe New York

C.E. Bickford San Francisco

GREEN COFFEE TRADE BUILDERS WHO HAVE PASSED ON]

Gregory B. Livierato, who founded the business of Livierato Bros. at Port Said, with branches at Aden and Marseilles, and later at Hodeida and Harar, entered the green coffee trade of New York in 1855, although his L F Mocha marks had been introduced here many years before. He remained here for eighteen years, returned to his home in Cephalonia, Greece, in 1904, and died there in 1905. His nephew, B.A. Livierato, then assumed charge of the New York coffee business, which in 1913 became the Livierato-Kidde Co., with B.A. Livierato and Frank Kidde.

Benjamin Green Arnold, one-time "coffee king," first became well known as a member of Arnold, Sturgess & Co., afterward B.G. Arnold & Co. Mr. Arnold was one of the incorporators, and the first president, of the New York Coffee Exchange. Francis B. Arnold, with Arnold, Sturgess & Co., later of Arnold, Mackey & Co., afterward Arnold, Dorr & Co., was a son of Benjamin Greene Arnold; and to him and to Major John R. McNulty belongs a great part of the credit for the organization of the New York Coffee Exchange. Major McNulty was with Minford, Thompson & Co., and then formed the firm of J.R. McNulty & Co.

Bowie Dash, a member of the famous Arnold-Kimball-Dash triumvirate, began with Scott & Meiser, later Scott, Meiser & Co., then Scott & Dash, afterward Scott, Dash & Co., and finally Bowie Dash & Co. Other well known men with this last company were L.F. Mason, A.C. Foster, S.L. Swazey, L.J. Purdy, and John B. Overton.

Then there were: Rufus G. Story; Thomas Minford, Francis Skiddy, and George J. Nevers, of Skiddy, Minford & Co.; W.D. Thompson, of Minford, Thompson & Co., later L.W. Minford & Co., afterward Minford, Lueder & Co., Thompson, Shortridge & Co., later Thompson Bros., then Thompson & Davis; John Randall, with L.W. Minford & Co., later, with J.C. Runkle & Co.; Eugene and James O'Sullivan of Eugene O 'Sullivan & Co.

The following names figured prominently in the trade's early history: Charles Maguire, of James H. Taylor & Co.; George F. Gilman, organizer of the Great American Tea Co. and of the Great Atlantic & Pacific Tea Co.; H.W. Banks, of Reeve, Case & Banks, afterward of Stanton, Sheldon & Co., later Sheldon, Banks & Co., and then of H.W. Banks & Co.; Henry Sheldon, of Stanton, Sheldon & Co., later Sheldon, Banks & Co.; and then Henry Sheldon & Co.; William McCready, with Small Bros. & Co., later with H.W. Banks & Co., and then with B.H. Howell, Son & Co., C.R. Blakeman, with Gross, March & Co., afterward with Wm. Scott's Sons & Co.; William Scott, of William Scott & Sons, later Wm. Scott's Sons & Co., including George W. Vanderhoef, who later succeeded to the business under the name of George W. Vanderhoef & Co.; Christopher and Leander S. Risley, of C. Risley & Co.; and Charles Naphew, with C. Risley & Co., later with Edwin H. Peck & Co.

[Illustration: William Bayne New York

George W. Crossman New York

George Westfeldt New Orleans

Wm. H. Bennett New York

THEIR RACE IS RUN, THEIR COURSE IS DONE]

Another group of old-timers includes: William Newbold, with Ezra Wheeler & Co., later alone; Augustus Ireland, with Ezra Wheeler & Co.; J.M. Edwards, of Edwards & Maddux, later of J.M. Edwards & Co.; Frank M. Anthony, of J.M. Edwards & Co.; H. Clay Maddux, one of the incorporators of the New York Coffee Exchange, of Edwards & Maddux; Baron Thomsen, of Thomsen & Co.; Gustave Amsinck, of G. Amsinck & Co.; James N. Jarvie, with Small Bros. & Co., later of Arbuckle Bros.; John C. Lloyd, of John C. Lloyd & Co., afterward with Arbuckle Bros.; John Small, of Smalls & Bacon, later Small Bros. & Co.; Williamson Bacon, of Smalls & Bacon, afterward of Williamson Bacon & Co.; C.K. Small, of Mackey & Small, Anson Wales Hard and George Rand, of Hard & Rand; Joseph Purcell, first of W.J. Porter & Co., and then of Hard & Rand; Henry F. McCreery, with O'Shaughnessy & Sorley, later of Hard & Rand; William Sorley and John W. O'Shaughnessy, of O'Shaughnessy & Sorley, Mr. O'Shaughnessy later forming John W. O'Shaughnessy & Co., and Mr. Sorley going to Hard & Rand. Mr. Sorley was one of the incorporators of the New York Coffee Exchange.

[Illustration: 112 FRONT STREET, NEW YORK, IN 1879

A group of old-time green coffee men, including R. C. Stewart, J.D. Pickslay, Frank Williams, Charles P. Chapin, and Fred P. Gordon]

Special mention should be made of: Kirkland & von Sacks; A. Kirkland, one of the incorporators of the New York Coffee Exchange, with Small Bros. & Co., then with W.J. Kirkland as Kirkland Bros., and, upon the dissolution of that firm, with F.H. Leggett & Co.; Thomas Rutter & Co.; Teacle Wallace Lewis, with Rowland, Humphreys & Co., later head of the coffee department of Carter, Macy & Co., and still later, head of T.W. Lewis & Co.; Abraham Sanger, of Sanger, Beers & Fisher, later Sanger & Wells; J.W. Wilson & Co.; Dykes & Wilson; Peter, John, and Joseph J. O'Donohue, of John O'Donohue's Sons; Joseph J. O'Donohue & Sons; Otis W. Booth, of Booth & Linsley; A.G. Hildreth; James H. Kirby, of B.G. Arnold & Co., later of Kirby, Halstead & Chapin, afterward Kirby & Halstead; Major Henry D. Tyler; Thomas H. Messenger & Co.; Harvey H. Palmer, of H.H. Palmer & Co.; B. O. Bowers, of Wilson & Bowers, later Thompson & Bowers; and August Haeussler, first with C. Risley & Co., then with J. H. Labaree & Co., and finally with the green coffee department of Geo. H. McFadden & Brother.

John Hanley, with Carey & Co., later of Hanley & Kinsella, St. Louis; Robert C. Hewitt, Jr., who wrote one of the early books on coffee (Coffee, its History, Cultivation, and Uses, 1872), of Hewitt & Phyfe, later Jas. W. Phyfe & Co.; James W. Phyfe of Hewitt & Phyfe, later Jas. W. Phyfe & Co.; Daniel A. Shaw, of Jas. W. Phyfe & Co.; B. Lahey, of Jas. W. Phyfe & Co.; and Winthrop G. Ray & Co.

These names, too, will live long in green coffee history: Reid, Murdock & Fischer, New York and Chicago; Charles A. and Watts Miller, and David Palmer, of D.J. Ely & Co., formerly D.J. & Z.S. Ely Co., New York and Baltimore; Harry Miller, with D.J. Ely & Co., later of Miller & Walbridge; Augustus Walbridge, of Smith & Walbridge, afterward Augustus M. Walbridge, Inc.; Clarence Smith, of M.V.R. Smith's Sons, later of Smith & Walbridge; Stevens, Armstrong & Hartshorn, later Stevens & Armstrong, then Stevens Bros. & Co., and finally Reamer, Turner & Co., including Abraham Reamer, Sr., and William F. Turner.

[Illustration: AT 87 WALL STREET, N.Y., YEARS AGO

Among the green coffee men in this picture are Clarence Creighton, John Enright, Chris Arndt, W. Lee Simmonds, John Ashlin, F. Loderose, Julius Steinwender, and Clinton Whiting]

[Illustration: WALL AND FRONT STREETS, NEW YORK, SPRING OF 1922

Looking up Wall Street from the East River. The first cross street is Front; beyond are to be seen the Munson, Stock Exchange, and Bankers' Trust Company's buildings, with Trinity Church marking the Broadway gateway]

Other familiar old-time names were: George W. Pritchard, of George W. Pritchard & Sons; Dayton & Co.; Dimond & Lally, later Dimond & Gardes; Arthur W. Brown; Robert Russell, of Russell & Co.; J. F. Pupke and Thomas Reid, of Pupke & Reid, later Eppens, Smith & Wiemann, afterward Eppens, Smith & Co., with William H. and Frederick P. Eppens; Joseph A. O'Brien, with Pupke & Reid, and later in business for himself; R.P. McBride, of the Union Pacific Tea Co.; Ripley Ropes; Saportas Bros.; Mayer Bros. & Co. of Hamburg, with Moses G. Hanauer, manager, and D.K. Young and Herman Hanauer, salesmen; H.M. Humphreys, with J.W. Doane & Co., later with Arbuckle Bros.; Henry Nordlinger, of Henry Nordlinger & Co.; Charles Campbell, of W.R. Grace & Co.; D.A. DeLima, of D.A. & J. DeLima, later D.A. DeLima & Co.; Henry Kunhardt and George F. Kuhlke, of Kunhardt & Co.; Boulton, Bliss & Dallett, later Bliss, Dallett & Co., general managers of the Red D line of steamships; Prendergast Bros.; W.H. and George W. Crossman, of W.H. Crossman & Bros., later Crossman & Sielcken, with Hermann Sielcken, afterward Sorenson & Nielson; F. Probst & Co.; H. H. Swift & Co.; J.L. Phipps & Co.; James Bennett and Joseph Becker, of Bennett & Becker; and Arnold, Hines & Co. (Diamond A Mocha), later Arnold, Cheney & Company.

Honorable mention should be accorded: Samuel Wilde (Old Dutch Mills); John Phoenix, with Husted, Ferguson & Titus, later of J.W. Phoenix & Co.; H.K. Thurber, of H.K. & F.B. Thurber & Co.; Michael Barnicle, with Walter Storm, later Storm, Smith & Co., then Abbey, Freeman & Co., then with Husted, Wetmore & Titus, and finally alone; August Stumpp, of August Stumpp & Co.; J.K. and E.B. Place; Beards & Cummings, later Beards & Cottrell, then S.S. Beard & Co.; Philip and Henry Dater, of Philip Dater & Co.; Hugh Edwards, of Edwards & Raworth; William Bennett, of Wm. Hosmer Bennett & Son; Kalman Haas, of Haas Bros.; J.C. Runkle & Co.; Thomas T. Barr and Fred T. Sherman, of Barr, Lally & Co., later T.T. Barr & Co.; Henry Hentz & Co.; Elmenhorst & Co.; A.S. Lascelles & Co.; D. Henderson (Harry) and John Wells, of Wells Bros.; G. Weyl & Co., later Norton, Weyl & Beven, and then Weyl & Norton; Warren & Co.; J.H. Labaree & Co.; Schultz & Ruckgaber; Henry Eyre; Rowland, Terry & Humphreys, later Rowland & Humphreys; Bentley, Benton & Co.; Winter & Smilie; Weston & Gray; John S. Wright, one of the incorporators of the New York Coffee Exchange, of Wright, Hard & Co.; Watjen, Toel & Co.; A. Behrens & Co.; "Steve" Matheson, of S. Matheson, Jr. & Co.; C. Wessels & Bros., later Wessels, Kulenkampff & Co., and finally Fromm & Co.; Julius Steinwender, of Steinwender, Stoffregen & Co.; Leon Israel, of Leon Israel & Bros.; Herklotz, Corn & Co.; Ponfold, Schuyler & Co.; Maitland, Phelps & Co., later Maitland, Coppell & Co.; F.H. Leggett, of F.H. Leggett & Co.; Carhart & Brother; George W. Flanders, of George W. Flanders & Co.; Jonas P. O'Brien; George S. Wallen, of George S. Wallen & Co.; Charles F. Blake, of Blake & Bullard; and Martin J. Glynn, of McDonald & Glynn, later Martin J. Glynn & Co., who had their office at Front Street and Old Slip for twenty-five years.

Three other names closely associated with the early days of the New York green-coffee trade were: Glover, Force & Co., later Waterbury & Force, then W.H. Force & Co., and finally W.S. Force & Co., weighers and forwarders; Daniel Reeve, of Reeve & Van Riper, mixers and hullers; and John H. Draper & Co., auctioneers.

Growth of the Leading Coffee Ports

Twenty-two years ago, when the century opened, New York passed over her docks a total of 676,000,000 pounds of coffee, which represented eighty-six percent of the total for the country. In 1920, juggling the figures a little, she imported 767,000,000 pounds, which was fifty-nine percent of the total. While she was thus practically marking time, she watched New Orleans run wild with an increase from 44,000,000 pounds to 380,000,000 pounds, or 763 percent gain; this meaning also the supplying of twenty-nine percent of the country's demands instead of five percent, while San Francisco in the same time jumped from 24,000,000 pounds to 137,000,000 pounds, or 470 percent gain, her share of the total trade now being ten percent instead of three percent in 1900. These gains, however, have not all been made at the expense of the city on the Hudson. In 1900, Baltimore was a close rival of New Orleans and was far ahead of all other ports except New York; but a decline in her imports began about 1903, and was so swift, that five years later her imports were almost negligible.

[Illustration: LOOKING SOUTH FROM WALL STREET INTO THE HEART OF THE GREEN COFFEE DISTRICT

On the left-hand corner is Hard & Rand's, opposite Leon Israel & Bros.' building, and beyond are many other leading green coffee firms.]

[Illustration: LOOKING NORTH FROM WALL STREET. HERE A FEW WELL KNOWN COFFEE FIRMS ARE LOCATED

The trend of the trade is south from Wall St. rather than north]

[Illustration: FRONT STREET, NEW YORK'S GREEN COFFEE DISTRICT, IN 1922]

IMPORTS OF COFFEE AT LEADING PORTS OF ENTRY IN THE UNITED STATES

New York New Orleans San Francisco Total Imports Pounds Pounds Pounds Pounds