Download (14MB)
Total Page:16
File Type:pdf, Size:1020Kb
https://theses.gla.ac.uk/ Theses Digitisation: https://www.gla.ac.uk/myglasgow/research/enlighten/theses/digitisation/ This is a digitised version of the original print thesis. Copyright and moral rights for this work are retained by the author A copy can be downloaded for personal non-commercial research or study, without prior permission or charge This work cannot be reproduced or quoted extensively from without first obtaining permission in writing from the author The content must not be changed in any way or sold commercially in any format or medium without the formal permission of the author When referring to this work, full bibliographic details including the author, title, awarding institution and date of the thesis must be given Enlighten: Theses https://theses.gla.ac.uk/ [email protected] John Reeves Ellerman: etrepreneur or Empire Builder ? Peter Richard McCleave Master of Letters The University of Glasgow Faculty of Social Sciences Department of Economic and Social History April 2003 © Peter Richard McCleave 1 st May 2003 ProQuest Number: 10778178 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a com plete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. uest ProQuest 10778178 Published by ProQuest LLC(2018). Copyright of the Dissertation is held by the Author. All rights reserved. This work is protected against unauthorized copying under Title 17, United States C ode Microform Edition © ProQuest LLC. ProQuest LLC. 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106- 1346 (GLASGOW^ UNIVERSITY .LIBRARY: . CO pj~l 2 Abstract This work discusses Sir John Reeves EHerman’s career and shows how he translated inherent skiUs which were apparent at an early age into financial acumen. This resulted in his becoming not only a major shipowner, but a powerful figure in pubfishing, breweries and property. The genesis of EHerman lies in his apprenticeship as an accountant, and a legacy from his maternal grandfather, which gave him ready resources. This led swiftly to a period during which he was budding up business as an accountant, an auditor and a company promoter. Over the next three or four years EHerman made useful acquaintances in finance, breweries, commerce and industry; which developed into a network of coUeagues and which formed the foundation of later successes in his eclectic spheres of operation. In 1891 EHerman participated in the incorporation of the shipping company Frederick Leyland (1891) Ltd. Within a year he was chairman of the company, and took it from strength to strength whfie acquiring two other shipping lines. In 1901 EHerman sold aU his ordinary shares - with which went control of Leyland Line - to J.P. Morgan and his embryo International Merchant Marine. Part of the agreement of sale was that EHerman would not take any interest in the Atlantic trade for fourteen years; if he wished to continue in shipping he had to find other areas of opportunity. EHerman bought back the Leyland Mediterranean steamers from IMM complete with managements, crews and trades. He then, in rapid succession, acquired two short-sea and two deep-sea companies - aU with their own ancHlary services. EHerman formed EHerman Lines Limited, which totaUy owned aU the shipping subsidiaries. The majority of ordinary shares in the new company were owned by EHerman and his immediate coUeagues, with the result that three directors and one secretary effectively ran the whole group. Over the next decade, EHerman buHt up and modernised his fleets. In 1913 he acquired BucknaU Lines as a whoUy owned subsiduary and increased the nominal capital of EHerman Lines Ltd to £3.500,000. His last purchase, of Wilson Line of HuU in 1916 brought total ownership of some 200 ships. EUeman died in 1933, leaving almost £40,000,000 and a memory which lasted among seafarers untH the 1970s. It is beHeved that this work has contributed to the spread of knowledge by explaining those areas of his life hitherto considered as being most obscure. 3 CONTENTS PAGE NUMBER TITLE PAGE 1 ABSTRACT 2 PREFACE 8 CHAPTER 1 - BACKGROUND 11 Introduction. 11 Comparison with contemporaries. 15 James Mackay, Lord Inchcape. 16 Owen Philipps, Lord Kylsant. 18 The Ellerman historiography. 21 Methods and sources. 22 CHAPTER 2 CITY GENT 27 City gent. 27 A sample brewery. 35 Not rags to riches. 37 Ships and shares. 42 Sale of the century. 47 E tenebris. 51 CHAPTER 3 FINANCES AND FLEETS 55 Strategy and tactics. 55 The watch leaders. 69 Baling out Bucknalls. 73 One more step. 74 Uniformity. 79 4 CONTENTS (continued) PAGE NUMBER CHAPTER 4 SHIPS AND SHIPYARDS 86 The ships. 86 Restructuring the fleets. 87 Passenger ships. 88 Ship types. 93 Different ships - same cap-tallies. 100 The shipyards. 101 Cruiser stems. 103 The pinnacle of power. 105 CHAPTER 5 WARTIME MILLIONS 107 The first shock. 107 Convoys or capitulation. I ll Whose risk? 113 The open market. 116 Profit and loss. 122 CHAPTER 6 FROM UNDERTAKERS TO ENTREPRENEURS 128 The undertakers. 128 Death brings the bankers. 132 Workman’s worries. 139 Tidying up. 141 The entrepreneurs. 143 CHAPTER SEVEN - CONCLUSION 146 Hypothesis 146 5 PAGE NUMBER APPENDICES 151 Appendix 1. Copy of original prospectus for incorporation of Edinburgh United Breweries showing EHerman’s participation. 154 Appendix 2. Copy of advertisement from Times o f Ceylon Annual 1956. 155 Appendix 3. Examples of Ellermans financial trusts and companies. 156 Appendix 4. Companies of which Ellerman was a director 1889 -1901. 157 Appendix 5. Ellerman Lines Limited Senior Staff and Conditions. 159 Appendix 6. P.& O. Group Accounts 1922-31. 160 Appendix 7. Royal Mail group and subsiduaries 1929. 161 Appendix 8. City Line Balance sheets. facing 163 Appendix 9. Tables. 166 Appendix 10. Balance sheets reproduced from Fairplay. 171 Appendix 11. Hall Line papers 177 Appendix 12. Excerpts from Sir John Ellerman’s correspondence with Sir Percy Bates of Cunard Steamship Company. 182 Appendix 13. Ellerman fleets growth chart from Fairplay. 188 Appendix 14. Sir John Ellerman’s chronology 1862-1933 189 Appendix 15. Smith and associated families and businesses. 194 GLOSSARY 197 REFERENCES AND BIBLIOGRAPHY 201 6 TABLES PAGE NUMBER Table 1. International capital 32 Table 2. Audits by JRE 1886-1891. 34 Table 3. Comparison of nominal capital and paid-up shares 36 Table 4. Companies with JRE as chairman 38 Table 5. JRE and interests as debenture trustees 1890-1891. 39 Table 6. Frederick Leyland and Co. Ltd mergers 1900. 44 Table 7. Frederick Leyland and Co, Ltd cash and shares 1900. 45 Table 8. Frederick Leyland and Co, Ltd share distribution 1900. 46 Table 9. Frederick Leyland and Co, Ltd shares and votes 1901. 50 Table 10. EEL fleet gains and losses 1901-1913. 87 Table 11. EEL fleets 1901 and 1913. 91 Table 12. EEL fleet sales, purchases and building costs 1902-1913. 96 Table 13. Cruiser stems by owners and builders. 105 Table 14. George Smith I to John Reeves Ellerman, 1839-1901. 142 Table 2-1. JRE’s directorships 1887-1913. 157 Table 2-2. Ellerman Lines Ltd senior staff and conditions. 159 Table 2-3. RMSP group and subsiduaries 1929. 161 Table 2-4. City Line steamships transferred to debenture tmstees 1891. 166 Table 2-5. ELL ships built 1901-1916. 166 Table 266. EEL ships sold or lost 1901-1913. 167 Table 2-7. ELL shareholdings 1902 and 1913. 168 Table 2-8. Bucknalls capital re-organisation. 169 Table 2-9. George Smith and Sons commissions etc, received 1893-1899. 170 Table 2-10. City Line Ltd abstract of profit and loss account 1892- 1899. 170 Table 2-11. Hall Line, extracts from accounts. 177 Table 2-12. Hall Line, extracts from directors’ minute book. 179 Table 2-13. Hall Line, extracts from share register. 181 7 ILLUSTRATIONS PAGE NUMBER Figure 1. Beer consumption and real wages. 30 Figure 2. Return from investment. 37 Figure 3. JRE directorships 1899-1901. 41 Figure 4. Tramp freight index 1897-1933. 47 Figure 5. ELL bank accounts 1902-1913. 55 Figure 6. ELL investments 1901. 56 Figure 7. ELL shares for City Line shareholders. 60 Figure 8. JRE’s aquisitions 1901. 62 Figure 9. Bucknall’s recapitalisation. 73 Figure 10. ELL ordinary shares 1902. 76 Figure 11. ELL ordinary shares 1913. 76 Figure 12. ELL preference shares 1902. 77 Figure 13. ELL preference shares 1913. 77 Figure 14. Comparison of shipping lines’ dividends. 81 Figure 15. Comparison of ELL, City Line and Hall Line dividends. 82 Figure 16. JRE directorships 1890-1913. 83 Figure 17. Pax tonnages for City Line and ELL 1875-1922. 90 Figure 18. PAX numbers for City Line and ELL 1875-1925. 90 Figure 19. ELL new-buildings by companies 1902-1916. 92 Figure 20. Flushdeck cargo ship. 93 Figure 21. Shelterdeck cargo ship. 94 Figure 22. Tea cargoes from Ceylon. 97 Figure 23. ELL newbuildings by shipyards. 102 Figure 24. Counter stem, Sandon Hall. 104 Figure 25. Cruiser stem, City o f Norwich. 104 Figure 26. Insurance rates 1914-1918. 113 Figure 27. Merchant ship losses 1914-1918. 114 Figure 28. Newbuildings and operational merchant ship tonnage 1913-1919. 116 Figure 29. Freight rates 1892-1916. 117 Figure 30. ELL deferred ordinarydividends 1915-1921. 120 8 ILLUSTRATIONS (continued) PAGE NUMBER Figure 31. George Smith and Sons’ partners’ balances. 131 Figure 32. 64th shares in steamships and distribution of shares in City Line Ltd. 135 Figure 33. City Line Ltd balances 1892-1901. 142 Figure 34.