Salomon Bros. issued stock certificate of North American 1939 Original Dow stock

Description

Issued to Salomon Bros. & Hutzler
North American Company stock certificate
Dated 1939
North American was one of the Original Dow Jones Industrial Average stocks
Salomon Bros.
Salomon Brothers was a prestigious Wall Street investment bank known for its pioneering work in the bond market and its significant influence on modern finance. Here’s a detailed overview of its history:
Founding and Early Years
1910
: Salomon Brothers was founded in New York City by three brothers: Arthur, Herbert, and Percy Salomon. The firm started as a brokerage house, focusing on trading and underwriting government bonds.
1920s
: The firm grew rapidly, establishing itself as a leading player in the bond market. Salomon Brothers gained a reputation for its innovative trading strategies and strong client relationships.
Expansion and Growth
1930s-1950s
: Under the leadership of William Salomon, Arthur Salomon’s son, the firm expanded its operations. It became one of the top underwriters of municipal bonds and corporate securities.
1960s
: Salomon Brothers continued to grow, opening offices in major financial centers across the United States. The firm also began to diversify its business, entering new areas such as investment banking and equities trading.
Dominance in the Bond Market
1970s
: The firm became a dominant force in the bond market. Salomon Brothers was known for its aggressive trading tactics and for pioneering the use of computers in trading and risk management.
Michael Bloomberg
: In 1973, Michael Bloomberg joined the firm. He later developed the Bloomberg Terminal, an innovative financial information system that transformed the industry.
Scandals and Challenges
1980s
: The firm faced several challenges, including scandals and legal issues. Most notably, in 1991, Salomon Brothers was involved in a major scandal related to the U.S. Treasury bond market. The firm was accused of submitting false bids to manipulate the market.
1991
: Following the scandal, CEO John Gutfreund resigned, and Warren Buffett stepped in as interim chairman to help stabilize the firm. The scandal led to significant fines and damaged the firm's reputation.
Merger and Integration
1997
: Salomon Brothers was acquired by Travelers Group, which later merged with Citicorp to form Citigroup. The investment banking operations of Salomon Brothers were combined with those of Smith Barney, another Travelers acquisition, to create Salomon Smith Barney.
2003
: Citigroup rebranded its investment banking division, dropping the Salomon Smith Barney name in favor of Citigroup Global Markets.
Legacy
Influence
: Salomon Brothers played a crucial role in shaping modern finance. The firm was known for its innovative trading strategies, pioneering work in the bond market, and development of new financial products.
Talent
: The firm was a breeding ground for many prominent figures in finance, including Michael Bloomberg and John Meriwether, who founded the hedge fund Long-Term Capital Management.
Books and Films
: The firm's culture and practices were famously depicted in Michael Lewis's book "Liar's Poker," which provided an insider's look at the high-stakes world of bond trading at Salomon Brothers during the 1980s.
North American Company
The North American Company was a significant American holding company that played a pivotal role in the development of the electric utility industry and other sectors in the United States. Here's a detailed overview of its history:
Founding and Early Development
1890
: The North American Company was founded by Henry Villard, a prominent financier, and industrialist. Initially, it was involved in various sectors, including transportation and utilities.
Early 1900s
: Under the leadership of influential figures like John P. Morgan, the company expanded its holdings, focusing on electric utilities, gas companies, and street railways.
Growth and Expansion
1910s-1930s
: The North American Company became one of the largest holding companies in the United States, owning controlling interests in numerous electric utility companies across the country. It was instrumental in the development of electric power infrastructure.
Diversification
: The company also diversified into other areas, including gas utilities and public transportation systems, enhancing its influence and economic power.
Regulation and Legal Challenges
1930s
: During the Great Depression, the U.S. government began to scrutinize large holding companies, which were seen as having excessive control over public utilities. The Public Utility Holding Company Act (PUHCA) of 1935 aimed to dismantle such monopolies.
1940s
: The North American Company fought legal battles to resist the forced divestiture of its holdings mandated by PUHCA. However, the U.S. Supreme Court upheld the legislation, and the company was required to reorganize.
Reorganization and Decline
1946
: Following the Supreme Court decision, the North American Company began divesting its utility holdings. This marked the beginning of the company's decline as a major holding entity.
1950s-1960s
: The company continued to operate but on a much-reduced scale. It eventually shifted its focus away from utilities.
Dissolution
1980s
: By this time, the North American Company had divested most of its major assets. It ceased to be a significant player in the industry.
2004
: The company was officially dissolved, marking the end of its corporate existence.
Legacy
The North American Company's legacy lies in its early role in shaping the electric utility industry in the United States. Its vast network of holdings and the infrastructure it developed were crucial in the widespread adoption of electric power.
The legal battles and regulatory actions against the North American Company also set important precedents in U.S. corporate and utility regulation, influencing how public utilities were managed and controlled.