FORMATION
OF JOHN BROWN & CO. LTD.
from
SHIPS
& STEEL - THE STORY OF JOHN BROWN'S
by
Sir Alan Grant
As explained in the
previous chapter, it had become urgently necessary for more adequate
finance to
be provided. Manchester had become a prosperous trading community a
generation
before Sheffield, and most of the large concerns were financed by
Manchester interests,
who subscribed the money and became directors of the various steel
concerns.
The first directors
of John Brown & Company were:
JOHN
BROWN,
Endcliffe Hall
SHEFFIELD.
Chairman
particulars of
whose early career have already been given.
JOHN D. ELLIS,
Crabtree
House,
Pitsmoor,
NR. SHEFFIELD.
Managing
Director
WILLIAM BRAGGE,
Shirle
Hill,
SHEFFIELD.
Managing Director
JAMES ASHBURY
Sussex Place,
Hyde
Park Gardens,
LONDON.
E. L. S. BENZON,
34, Old
Broad Street,
LONDON.
JOHN CHEETHAM, M.P.
STALYBRIDGE.
Vice-Chairman
JAMES HOLDEN,
9, Wilton Polygon,
Cheetham Hill,
MANCHESTER.
HENRY DAVIS POCHIN,
Broughton
Old Hall,
NR. MANCHESTER.
Mayor of Salford
CHARLES PATRICK STEWART,
Atlas Works,
MANCHESTER.
BENJAMIN WHITWORTH,M.P.,
Ducie Place,
MANCHESTER.
It will be interesting to
give some particulars, as far as they can be
traced,of some of the original directors.
John Devonshire Ellis was an
outstanding personality in the steel
industry of his day. His
connection with John Brown dates from the early history of the firm.
John Brown was in the habit of visiting Birmingham for the purpose of
selling his steel to various industries already
established in that city. There was a notable firm run by the Ellis
family who were
brass founders, and Brown, on some of his visits, had noticed the
exceptional
ability of one of the sons of the proprietor, by name John Devonshire.
On one
occasion John Brown asked Ellis's father whether he would allow his son
to come
to Sheffield and join him in his business. The father, well aware of
the
ability of John Devonshire, endeavoured to palm off one of the other
brothers with whom
he would more willingly have parted. However, John Brown was not to be
persuaded and eventually John Devonshire Ellis left Birmingham at a
very early
age and lived for the remainder of his long life in Sheffield and
exclusively
with the firm of John Brown & Company. He was a man of great energy
and high
technical attainments, one of his outstanding inventions being the
'compound' armour plate which consisted of a rolled iron back with a
steel face.
Competition between the gun and the armour plate, which was very active
for many years, led the armour plate makers, as projectiles improved in
quality, to find some form of plate which would break them up on
impact, the old
soft iron being useless for this purpose. Ellis's plate was very
successful for a
time, and he was able to regain the supremacy for the plate makers in
this
longdrawn-out competition. He and Bragge were Brown's two partners
when the concern
was a private one, and after the departure of John Brown from his old
concern, the circumstances of which will be subsequently
described, John
Devonshire Ellis became chairman of the company and remained in that
position for over
forty years. He had two sons, Charles and William, who both joined the
company and in due course became managing directors. Both were
eventually knighted and
both
had many years service with the company, their future careers being
mentioned
in the sequence of events hereafter to be described.
William
Bragge was a man of varied attainments-he was a Fellow of the
Society of Antiquarians as well as being a distinguished engineer. He
was born
in Birmingham in May 1822, and early in life studied engineering in
that city,
applying himself particularly to mechanics and mathematics. As quite a
young
man he began railway surveying and was sent out to Brazil as a
representative
of Bellhouse & Co., of Manchester, there carrying out the lighting
of Rio
de Janeiro with gas, and surveying the first railway in that country.
He was
held in such esteem in Brazil that many years later he was visited at
his house
in Sheffield by the Emperor of Brazil, Don Pedro. Coming to Sheffield,
Bragge became
one of the partners of John Brown and John Devonshire Ellis, and it was
this
partnership which was subsequently sold to the company when it was
incorporated
in 1864. He was elected Master Cutler of Sheffield in 1870. Throughout
his
residence in Sheffield he evinced the greatest interest in Sheffield
art
schools, libraries and museums. He returned to his native city in 1876.
His
antiquarian tastes were catered for by his great wealth, but many of
his almost
priceless treasures were destroyed in the great fire at the Birmingham
Free
Library in 1879. He died on June 6th, 1882, aged 61 years. During his
association with John Brown he travelled extensively abroad on behalf
of the
firm and was instrumental in securing many important contracts.
It has so far
been impossible to find particulars of the qualifications
of Mr. Ashbury or Mr. Benzon, which led to their being appointed
original
directors, but John Cheetham, M.P., was a Manchester industrialist. He
was a
member of a well-known family, which for more than a century had been
largely
concerned in the cotton manufacturing industry of Stalybridge; his
father, Mr.
J. Cheetham, was for many years a prominent figure in the public and
political
life of Manchester and the County Palatine as M.P. for South Lancashire
1852-59, and for Salford 1865-68, and as an active member of the
Manchester
Chamber of Commerce and President (1858-68) of the Cotton Supply
Association.
Henry Davis Pochin
was undoubtedly the outstanding figure of the new board. He was born at
Woodstone,
Leicestershire, in 1824, son of William Pochin. He showed an early
aptitude for
chemistry and studied at the Pharmaceutical Society in London.
Subsequently he
began business in Manchester as a manufacturing chemist, and soon
afterwards
discovered a means of completely decomposing china clay by sulphuric
acid. That
process he patented in 1855, and shortly afterwards introduced the
material
into commerce by the term 'Aluminas Cake.' This became of universal
application
in paper-making.
He
also made another notable invention in connection with the
purification of resin, and appears very nearly to have anticipated -the
present
invention of plastics. His distilled resin remained undecomposed and
free from
colour, and it became the foundation of almost all toilet soaps.
The business of
.H.
D. Pochin & Company began to earn substantial profits from about
1864, and
was very profitable from 1871 to 1878.
As the profits of
his own business increased and funds were available for investment,
Henry
Pochin, with some friends of his in Manchester, started to purchase
successively certain coal and iron businesses then in private hands,
forming
them into public companies, in which' he and his friends took between
them the
bulk of the capital. He became a director of all these companies, and
was
deputy chairman of many of them.
The concerns were:
(a)
The business of John Brown &
Company, purchased in 1864.
(b) Palmers
Shipbuilding & Iron Company, which was purchased from Sir Charles
Mark
Palmer, who remained as chairman until a call on the partly paid shares
in bad
times was more than' he could meet, which caused his retirement. This
company
continued with varying fortunes and was finally wound up.
(c) The Sheepbridge
Coal & Iron Company, in which, first, Maurice Deacon, and then
Henry
Jackson, were leading figures. Mr. Pochin's son-in-law, Charles
McLaren, joined
the board of this company, of which he later became chairman.
(d) The Tredegar
Iron
& Coal Company, on whose board John Wyllie, and afterwards his son
Colonel James Wyllie,
were prominent members. Charles McLaren later became chairman of this
company.
(e) Bolckow Vaughan & Company,
the ironmakers of
Middlesbrough, of which Sir Karl Bolckow remained chairman for many
years. It eventually amalgamated with
Dorman Long
& Company.
(f) The Staveley Coal & Iron
Company, with which
Charles Markham, senior, was originally connected. Later Charles
Markham,
junior, became chairman.
In addition to his
participation in the above businesses, Henry Pochin took leases of coal
property from Earl Fitzwilliam and others at Cortonwood and
started the Cortonwood
Colliery Company, for many years a most profitable concern, paying a
dividend
of 2½ per cent per month. There was, however, a substantial
liability on the
shares which were originally of £10 with only £2 paid.
Henry Po chin also
purchased granite-bearing property at Croft in Leicestershire and
opened a
quarry on it, primarily to produce granite paving sets, for which there
was a
very large demand before wood' paving was introduced. He also started a
works
at Croft for the manufacture of artificial stone. The quarry was
operated by a
private company styled 'The Croft Granite Brick & Concrete Company.'
Henry Pochin, through his
friendship with Sir Edward Watkin, chairman
of
the Manchester, Sheffield and Lincolnshire Railway (afterwards the
Great
Central) and of the Metropolitan Railway, was a member of the board of
both
these companies, and was a substantial shareholder in the latter. All
these
interests have remained in his family to the present day, and they have
nearly
all been highly prosperous.
Henry Pochin
never
became chairman of John Brown & Company, preferring to leave the
individuals
in charge of these various works to manage them, but took a very active
part in
the financial side of the various businesses with which he was
connected.
His
son-in-law, Sir Charles McLaren (or Mr. Charles McLaren as he then
was), succeeded him on the board, afterwards becoming the first Baron
Aberconway, and he, in turn, was succeeded by his son, now the present
chairman, Lord Aberconway. The family continuity has continued by the
appointment of Henry Pochin's great-grandson, The Hon. Charles McLaren,
as a director, who takes an active part in the management of the
concern.
Charles
Patrick Stewart was one of the partners of the wellknown
engineering and locomotive firm of Sharp Stewart & Company. The
firm with
which Stewart was so long connected dates back to 1822, and during
the first
period of its history (1822-43) was associated with the well-known
Richard
Roberts under the style of Sharp Roberts & Company. Mr. Roberts
invented
the self-acting mule, used in textile processes, the manufacture of
which by
the firm led to the wilful destruction of the works by fire in 1825 by
textile
workers, who believed that this invention would destroy employment in
the
textile industry~ Subsequently, the manufacture of locomotives was
begun, and
the concern was divided between the old machinists business and
locomotive
building. The name of the firm was altered to Sharp Stewart &
Company, and
in 1864 was turned into a limited company with Stewart as chairman.
There
appears to be little doubt that Henry Pochin asked Stewart to join
the board of John Brown & Company in order to have a direct
connection with
a locomotive building firm which would form an automatic outlet for the
railway
tyres, axles, springs, etc., manufactured at the Atlas Works in
Sheffield. Curiously
enough, Sharp Stewart's premises were known as the Atlas Works in
Manchester.
Benjamin
Whitworth, M.P., was born in Manchester in 1816. His father
moved to America in 1820, but then returned with his family to
Manchester, and
subsequently took up his permanent residence in Droylesden. He started
with a
capital of £50, but became, with his younger brother, a
successful importer of
cotton, and the firm speedily became an eminent one. He resided for
most of his
business life at Fleetwood, and it occurred to him that he might
possibly
import cotton from America to Fleetwood in his own ship. This traffic
continued
until the American Civil War. Whitworth found that the charges on
cotton
coming into Fleetwood did not exceed one-sixth of those enforced at
Liverpool.
He eventually owned a large cotton factory, holding 1,000 looms, at
Droylesden.
Like Henry Pochin, he turned his attention to iron and coal trades, and
had
substantial holdings either as a shareholder or director in Bolckow
Vaughan
& Company, John Brown & Company Limited, Staveley Coal &
Iron
Company, and a large number of similar undertakings.
Shortly after
the
formation of John Brown & Company there was a serious commercial
crisis
involving the failure of Overend Gurney & Company, and other large
financial firms, so that the company began to find itself in difficult
circumstances. The naval estimates were cut down and armour plate
orders fell
off to a very large extent. Previous to the transfer of the business to
the
company, the armour plate trade amounted to one-half of the production
of the
concern and at least one-half of the profits. The directors decided to
turn
their attention to the forging industry to a greater extent than
previously,
and erected some large hammers, but the capital expenditure entered
into by
John Brown seriously alarmed the other directors, and led to very
strained relations.
At
the adjourned Third Annual General Meeting in 1867, in the absence
through illness of John Brown, it was proposed that Mr. Po chin should
take the
chair. The extensions necessary to make the most profitable use,
of the
Bessemer convertors were now nearly completed, and the chairman
stated that
the board of directors had resolved 'That in future the cost of the
extensions
of the works shall in no case in anyone year exceed the amount deducted
in the
previous year for depreciation'; the profits of the year only amounted
to
£23,000.
The
next year, 1867-68, Sir John Brown again occupied the chair, and the
profit this year amounted to £30,000, enabling a dividend of 6
per cent to be
paid, which absorbed £32,000.
The
following year Sir John Brown was again absent, and it was proposed
by Mr. Pochin that John Cheetham, M.P., should take the chair. The
chairman
regretted the absence of Sir John Brown on the advice of his medical
attendant.
Sir John Brown remained chairman
of the directors until 1871, when at
the Annual General Meeting, Mr. John D. Ellis, as acting chairman, in
moving
the adoption of the report, expressed his regret that in consequence of
differences which had arisen at the board, Sir John Brown had parted
with all
his shares except his preference shares, and there was a question
whether or
not he was qualified as a director.
It
would have been gathered from the previous description of the
character of Sir John Brown that he was a great individualist, and
during the
time when he was the sole proprietor of the business the question of
capital
expenditure was, of course, entirely in his own hands. When the concern
was
turned into a limited liability company he did not take kindly to the
idea that
the affairs of the company were in the hands not only of himself but of
his
colleagues on the board. He went ahead with extensions at a rate which
seriously alarmed the more financially-minded members of the, board
and, in
fact, actually incurred very heavy commitments which had not previously
been
sanctioned.
These
differences
were apparently found incapable of solution, and from that date onwards
Sir
John Brown's name does not appear in any account of the proceedings; in
fact,
not only did he sever his connection with his old concern, but he
started a new
firm in Sheffield under the title of Brown, Bailey & Dixon, with
the
intention of entering into competition with his old company.
One of the
chief
public benefactions of Sir John Brown is the handsome church of All
Saints
standing upon the hillside looking down upon the Don Valley in which
his works
were situated. The rapid development of the district drew
attention to the
dearth of religious accommodation, and one of the first to recognise
the
necessities of the case was the proprietor of the Atlas Works. He found
20,000
people without the means of attending a place of worship. The Church
Extension
Society was formed about this time and Brown at once offered to
subscribe
£5,000, but finding this likely to result in the construction of
an edifice
inadequate and unsatisfactory he decided to erect a church entirely at
his own
cost. The offer was accepted and the corner stone was laid on the 19th
May,
1866, by the Archbishop of York. From then to the present time this
church has
ministered uninterruptedly to the spiritual welfare of the population,
and is
still affectionately known as John Brown's Church.
To complete the account of Sir
John Brown's career, it may be mentioned
that he twice held the office of Master Cutler, and during the term of
that
office the present Cutlers' Hall was finished. He was knighted in 1867,
and in
1871, when the Sheffield School Board was constituted, he was the first
chairman. Unfortunately his later ventures in business were not very
successful, and he eventually died almost in poverty. It was indeed a
tragedy that a man of
such enterprise and ability, and one who had taken a very large
part in
building up the heavy steel industry of Sheffield, should finish his
active
career in such sad circumstances. It was his very strength of character
and
determination which, in later years, when his judgment was not as sound
as it
had been, caused the unhappy diminution in his fortunes and closed a
life of
usefulness under such a shadow.
Ships & Steel
- The Story of John Brown's by Sir Alan Grant, Michael Joseph,
1950
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