Bag of Bones Page 7

  When the funeral cortege had completely settled into their seats, the service was begun by the Rev. Dr. Joseph Rylance, followed by Bishop Potter and finally the Rev. Dr. Stephen Tyng Jr. As part of the Episcopal service, the church sexton threw a handful of dirt onto the coffin.

  What was startling to those in attendance was the absence of any sermon. Most expected an oration about Stewart, his life, and his many accomplishments, even if a brief one. But no sermon was given. Following the service, the congregation sang the hymn “Rock of Ages,” and the illustrious cadre of pallbearers took Stewart’s coffin from the church. Judge Hilton stepped from his pew holding his arm out for the widow Stewart to take, but she didn’t move. Everyone waited. Mrs. Stewart sat frozen in her pew for several moments until finally she rose to her feet, took Hilton’s waiting arm, and followed the coffin out of the church. Stewart’s remains were taken to the family burial vault in the nearby churchyard cemetery. There, Bishop Potter said a short benediction before the pallbearers and family mourners dispersed. Mrs. Stewart, still leaning on Hilton’s arm, was the last to leave.

  ALEXANDER T. STEWART

  The dramatic completeness of a successful mercantile career has never been better exemplified than in the life of A.T. Stewart. There is very little romance about it, and through all its stages there run the homely qualities of shrewdness, thrift, and perseverance, mingled with just enough of boldness and original enterprise to raise the man above the rank of the plodding and cautious merchant who bears a competency instead of a magnificent fortune. … His life is a standing proof of the efficacy of honesty, industry, and well-directed intelligence in laying the foundation of vast wealth. The man who has amassed the largest fortune ever accumulated within the span of a single life was simply a hard-working, careful merchant, with a decided talent for organization and a somewhat rare faculty for taking a firm grasp of petty details as of broad and general principles. … There was no gambler’s luck in the methods of actions which expanded the five thousand dollars of 1822 into the forty or fifty millions of 1876. … His dealings with opponents have been characterized as harsh and pitiless, but that was because he looked on commercial competition as a system of warfare in which the longest purse and the best directed energy were as much entitled to their reward as the most skillful strategy or the most approved weapons of destruction. If the few suffered from such a system, the many were the gainers.

  —New York Times editorial, April 11, 1876

  TRIBUTE FROM GARDEN CITY

  A meeting of the citizens of the town of Hempstead, Long Island, in which Garden City is included, was held yesterday afternoon in the Town hall in the village of Hempstead. Resolutions of regret at the death of Mr. Stewart were adopted, and a deputation to attend his funeral was appointed.

  —New York Times April 13, 1876

  Sympathy and regrets at the death of Stewart were tempered with the sobering reputation he had among many New York City businessmen who viewed him as a monopolist. An editorial appearing in the April 12 edition of the New York Times, simply titled “Monopoly and Competition,” depicted Stewart as a ruthless monopolist who was merciless when dealing with his competitors and believed in cornering every market in which he had dealings. According to the editorial, “… he seemed to regard business as a species of warfare, in which the strongest was the surest of winning, and he realized keenly the advantage of having full control of so much of the field as he could occupy …

  “Those who came in conflict with him in his endeavors to carry out his plans could expect no mercy, and received none, and his successes were not embittered, or at least they were not prevented, by the fact that they involved the necessity of the failure of others.”

  At the time of his death, Stewart’s only partner in his great retail and wholesale empire was William Libbey, who had been with him for longer than twenty years. Although a partner, Libbey did not share in the profits but merely drew a salary—a generous salary, but just a salary nonetheless.

  Stewart left nothing in his will for charity, a surprising and disappointing revelation to many New Yorkers. Stewart named his widow, Cornelia, Libbey, and Hilton as executors of his great estate. The will, dated March 27, 1873, instructed the executors to liquidate his massive business concern. Hilton was bequeathed one million dollars for the purpose of carrying out these final wishes. The will directed Hilton to “exercise a sound discretion in bringing my said partnership affairs to termination.” Stewart had been prompted to prepare his will because of his failing health. Three years later, the liquidation of the massive retail empire was not carried out as Stewart had directed. It was ultimately liquidated, many years later, but by then, the business was a mere skeleton of its former self. Stewart left all his property to his wife and her heirs. He left a variety of gifts and legacies, totaling one hundred thousand, to twelve people who served him in his business, and he bequeathed a total of $15,500 to be shared among his household servants. He left a twelve-thousand-dollar annuity to his sisters-in-law, Sarah and Rebecca Morrow, and free use of the home they lived in at 30 East Thirty-ninth Street. He left an equal sum of ten thousand dollars to Charles Clinch, Anna Clinch, Julia Clinch, Emma Clinch, and Sarah Smith, all relatives of his wife. He also left to Anna, Julia, and Emma Clinch, the maiden sisters of his wife, the free use of the house they lived in at 115 East Thirty-fourth Street. He requested that all employees who had been with his company for twenty years receive one thousand dollars and those with ten years of service, five hundred dollars. Although he alluded to his intention to fund various charities, he made no mention of which charities he meant and left the selection and amounts to be determined by his wife. All and all, Stewart’s will was a general disappointment to everyone, except of course his widow and one Judge Henry Hilton.

  “The will of Mr. Stewart, which was filed in the Surrogate’s Office on the day after, the funeral:

  1. Bequeathed all the property and estate of the testator to his wife, Cornelia M. Stewart, her heirs and assigns forever.

  2. Appointed Henry Hilton to act for the testator, and in behalf of his estate, in managing, closing, and winding-up his partnership business and affairs, and empowered him in respect thereto as fully as the testator was authorized to do by the articles of copartnership of the firm of Alexander T. Stewart & Co.

  3. It bequeathed to said Henry Hilton $1,000,000.

  4. It revoked and annulled all other wills, and appointed as executors, Cornelia M. Stewart, Henry Hilton, and William Libbey. This was signed March 27th, 1873, and witnessed by William P. Smith, of Thirty-fourth Street and Fifth Avenue; W. H. White, of 228 Fifth Avenue; E. E. Marcy, M.D., of 396 Fifth Avenue.”

  This was followed by a codicil bearing the same date, in which the following legacies were bequeathed:

  “To George B. Butler, the sum of $20,000; to John M. Hopkins, the sum of $10,000; to A. R. P. Cooper, the sum of $10,000; to Edwin James Denning, the sum of $10,000; to John B. Green, $10,000; to George H. Higgins, $10,000; to Henry H. Bice, $5,000; to John De Bret, $5,000; to Robert Prother, $5,000; to Henry Dodge, $5,000; to Hugh Connor, $5,000; to William Armstrong, $5,000; ‘each of whom have long and faithfully served me in my business affairs.’ Also to William P. Smith, $5,000; to William Lynch, $2,500; to Martha Turner, $2,500; to Rebecca Turner, $2,500; to Sarah Turner, $500; to James Cummings, $1,000; to Edward Thompson, $1,000; to Michael Riorden, $500; ‘all faithful servants of my house.’”

  —Frank Leslie’s Popular Monthly, Vol. 1, 1876

  In a letter he left for his wife, Stewart directed her to rely on Hilton in all matters regarding his estate as well as any contributions to charities he neglected to include in his will. Because the letter to his wife was not a binding legal document, no vast contributions to charities ever materialized, at least not immediately.

  Cornelia Stewart had relied on her husband’s good judgment for her whole life and had no mind or inc
lination toward his business concerns. Knowing full well the trust her husband placed in Hilton, she conveyed her own trust to Hilton. For the remainder of her life, she relied on Hilton in all matters, both business and personal; that is, except for one—the recovery of her husband’s stolen body.

  Besides being Stewart’s legal advisor, Hilton had been Stewart’s closest friend and confidant. Although there were few who didn’t surmise that Hilton would become the executor of Stewart’s will, no one ever suspected that he would become the heir to Stewart’s fortune.

  Henry Hilton’s career was founded on his friendship with Alexander Stewart and the vast fortune Stewart accrued through his visionary business acumen. Hilton proved to have none of Stewart’s business savvy, and in fact, his lack of business and public relations know-how and his reckless management ultimately led to the demise of Stewart’s once great retail empire and the total dissipation of his fortune.

  Except for his close relationship with Stewart, Hilton had an unremarkable career. He was born in Kingston, New York, in 1821, eighteen years after Stewart was born. After being admitted to the bar, he went to work in the law offices of Judge W. W. Campbell, a firm that Stewart used as part of his growing business concerns. But it wasn’t his association with Campbell’s law firm that led to Hilton’s long and close relationship with Stewart. It was his marriage. In 1849, Hilton married Ellen Banker, the second cousin of Cornelia Stewart. Through this marriage Hilton made the acquaintance of Stewart and his wife.

  Hilton’s role in the affairs of Alexander Stewart began early in his life, as Stewart came to view the attorney as much more than just legal counsel. Stewart and his wife often expressed their view that Hilton was more of a son than an advisor, a role Hilton was more than happy to assume. In both public and private affairs, Hilton made himself indispensable to the aging merchant and his wife. He became the master of ceremonies for the Stewart family’s social endeavors. Despite all his wealth, Stewart had never been able to master the fine art of social graces expected from a man of his means, and he relied on Hilton’s expertise in these matters.

  On his deathbed, Stewart reportedly told his wife that the entire extent of his business interests should go to Hilton.

  I especially appoint Henry Hilton of the City of New York to act for me and in behalf of my estate in managing, closing, and winding up my partnership business and affairs, and I empower him in respect thereto as fully as I may or can, or am authorized to in and by the articles of co-partnership of the firm of Alexander T. Stewart & Co. I further authorize and direct the said Hilton, while so acting in behalf of my estate and in my place and stead, to exercise a sound discretion in bringing my said partnership affairs to a termination and discharging all obligations connected therewith, trusting to his judgment that he will so act in respect thereto as to avoid in so far as can be avoided any unnecessary loss to those connected with me in business. For which service, and as a mark of my regard, I give to aid Hilton $1,000,000.

  —from the last will and testament of Alexander Turney Stewart

  In a letter attached to the will, Stewart wrote to his wife: “Our friend Judge Hilton will, I know, give you any assistance in his power, and to him I refer you for a general understanding of the various methods and plans which I have at times with him considered and discussed.”

  Henry Hilton had served as a judge of the Court of Common Pleas. He had a commanding presence, which more than made up for his lack of knowledge pertaining to the law. He was striking in appearance and in possession of the finest of manners.

  This was in stark contrast to the man who had called upon him as his closest and most trusted advisor, Alexander Stewart. What Stewart had in great business acumen, he completely lacked in outward appearance and social graces. Stewart was modest and unassuming in dress. Quiet, polite, even shy in most social circumstances, he lacked confidence in his manners and in dealing with the social etiquette of the times. Hilton was tall and robust, flamboyant in his dress and demeanor. Stewart was short in stature, thin, and pale. Hilton sported a shock of wavy chestnut hair and a dark mustache, while Stewart was balding and wore wispy tuffs of muttonchop sideburns. Where Hilton relied steadfastly on a gold pocket watch that hung from his vest pocket on an exquisite gold chain, Stewart preferred to rely on public timepieces, mantle pieces, and publicly displayed clocks throughout the city to keep track of the hour. In the worlds of business, finances, social graces, and appearance, Alexander Turney Stewart and Henry Hilton were exact opposites. And so they were inseparable.

  The only thing the two men did have in common was their ancestry. Stewart was born in Lisburn, Ireland, on October 12, 1803. Hilton was born in October 1821 in New York to a Scottish-Irish father and a Scottish mother.

  Hilton had three brothers, all of them professionals. His oldest brother, James, was a lawyer and later became a judge in Iowa. His brother Joseph was a doctor and served as the New York City coroner. His brother Archibald became a prominent lawyer in New York. Henry Hilton was admitted to the New York bar in 1846 and established a meager practice in the city.

  After serving five years as a judge, Hilton was defeated in his reelection bid. He resumed his law practice, starting the firm of Hilton, Campbell, and Bell. Hilton maintained an office within the firm and also had an office within Stewart’s retail business.

  Following the Civil War, when Stewart threw his support behind the presidential campaign of Ulysses S. Grant, Hilton served as his political intimate, working behind the scenes to help elect Grant. It was during this period that Stewart and Grant became close friends.

  Hilton slowly began to involve himself in the day-to-day operations of Stewart’s retail business. In 1873, he accompanied Stewart to Europe to assist in the reorganization of the overseas operations. During this time Stewart awarded Hilton full power of attorney, allowing him to act on his behalf in all matters pertaining to his national and international operations.

  It was not merely Stewart’s will that caused a sensation in social and business circles in New York and beyond. On April 14, 1876, less than a day after Stewart’s magnificent funeral, Cornelia Stewart announced that she had signed over her husband’s entire business to Henry Hilton in exchange for the one million dollars that her husband had bequeathed to Hilton. Hilton and William Libbey then agreed to carry on the business of the late Merchant Prince under a new partnership. The stunning announcement flew in the face of Stewart’s explicit written wishes that Hilton liquidate the businesses. The news of the new partnership and subsequent continuation of A. T. Stewart & Co. sent shockwaves through the business, legal, and social communities.

  Know all men by, &c., that I, Cornelia M. Stewart, of the City of New York, widow, have made, constituted and appointed, and by these presents do make, constitute and appoint Henry Hilton, of said City, my true and lawful attorney, for me and in my name, place, and stead, with full power and authority to do all and every act or thing that I might or could do in reference to my estate, real or personal; to make, sign, seal, and execute and deliver any covenant, deed, or other instrument in writing for me and in my name, that I might or could do; to transfer any stocks, bonds, securities, or other real and personal property, as fully as I might or could do; to make and execute any agreement or contract relating to or affecting any of my estate, real or personal, as fully as I might or could do; to collect, demand and receive all sums of money due to me, and to compromise any such claim or demand, and, on such composition or receipt of the same, full acquittance and discharges to give and grant in my name, and to appoint agents or attorneys under him, and to revoke the same when necessary. And generally to do all and every act or thing relating to or concerning my real or personal estate that I may or could do, giving and granting unto my said attorney full power and authority to do and perform all and every act, anything whatsoever requisite and necessary to be done in and about the premises, as fully to all intents and purposes
as I might or could do if personally present, with full power of substitution and revocation, hereby ratifying and confirming all that my said attorney or his substitute shall lawfully do or cause to be done by virtue hereof in witness whereof I have here unto set my hand and seal the 14th day of April, in the year of one though sand eight hundred and seventy six.

  Cornelia M. Stewart.

  —document filed with the New York City Registrar’s Office, April 14, 1876.

  It was obvious to anyone that Hilton’s arrangement was in direct conflict with Stewart’s last wishes. Still, no one protested. What wasn’t obvious was that Hilton would drain Stewart’s business dry and obliterate its mark on New York City.

  Meanwhile, most people assumed that Hilton had readily turned over his one-million-dollar inheritance to Cornelia Stewart. However, there was never any record of Hilton doing so. In essence, he not only kept the one million dollars left to him by Stewart, but he managed to take control of Stewart’s entire forty-million-dollar empire.

  At the time of his death, the value of Stewart’s wholesale and retail enterprises was approximately twelve million dollars doing approximately forty million dollars worth of business annually. The sale and liquidation of the Stewart empire would have brought in twice as much as the twelve million it was worth, but the sale never materialized. Instead, Hilton assumed operational control over a national and international business.