Stephen Goldsmith

Sociologists and historians call it "zeitgeist." Translated from German, it means "spirit of the times." It is an expression often linked with the theory that even ordinary people can rise to an exceptional level of achievement when faced with great challenges or opportunities.

In the late 1800s through the 1920s many people rose to greatness. Indeed, it was a period of extraordinary achievement, ranging from the birth of aviation, to personal fortune, to the emergence of the United States as a world power.

The last decade of this era was tagged with an enduring superlative: the "Roaring Twenties." The period even included a war so vast, so filled w ith carnage, that it was misnamed with another extreme: "the war to end all wars."

In America, some of the legendary names in the history of the nation's capital markets were making their reputations: Baker, Morgan, Vanderbilt, Gould Enter the partnership of Nathanael Greene Herreshoff and his brother John, a blind boatbuilder from Bristol, Rhode Island. From 1899 into the 1930s, the brother's firm designed and built the largest, most complex, powerful and expensive yachts ever created for the defense of yachting's greatest prize: the America's Cup. Funded by syndicates headed by the likes of J. P. Morgan and Harold S. Vanderbilt, Herreshoff built or designed every first place finisher. Second place? A member of the Royal Family explained to the Queen as an American yacht crossed the finish line: "There is no second place, your majesty."

In the zeitgeist of this extraordinary time, under extraordinary competitive pressure, the Herreshoff brothers set a record that remains unmatched in the history of all amateur or professional sport.

In the following article, Stephen Goldsmith writes of his casual acquisition of the only Herreshoff stock certificate known in existence. Today, the certificate is on display at the Herreshoff Marine Museum, in Bristol, Rhode Island, a gift from Mr. Goldsmith. The article is illustrated with photographs of Herreshoff yachts designed or built for some of the giants in America's financial history. The Mariner's Museum, in Newport News, Virginia, and the Herreshoff Marine Museum, in Bristol, Rhode Island, graciously co-operated in researching and providing information for this article.

-T. Patrick Harris, Editor

He made a mistake that lead to the death of a man, yet at one time or another J.P. Morgan, Cornelius Vanderbilt, Harold S. Vanderbilt, Junius S. Morgan, Jr., A.J. Cassatt, and Alfred G. Vanderbilt all relied totally on his skill, judgment, and integrity. His name was Nathanael Herreshoff, and myth says these powerful people rarely even dared suggest anything to him. They told him what they wanted and they paid cash on delivery, knowing that they got the finest product money could buy. For a period of 37 years, from 1893 to 1930, he was instrumental in defeating the Earl of Dunraven and Sir Thomas Lipton in a series of nautical engagements that caught the fancy of the entire world. I got to know him through a stock certificate I acquired at a "paper money" show, in Willamantic, Connecticut. It was March, 1986 when a man rushed by me, clutching a stock certificate in his hand. I stopped him and asked if I might have a look. "Sure," he said, "but I bought this thing five minutes ago, only because it's from my home town." I took a quick look. At first glance it appeared to be a piece of "wallpaper," common, inexpensive and marginally collectable, but I found a few things about the certificate that I really liked. It was from the town where the sailboat I own was built-Bristol, Rhode Island. It was serial number 1. The vignette was nautical and the name, "Herreshoff Manufacturing" had a familiar ring to it. It was signed by "Nath'l G. Herreshoff" as president. I told the gentleman why I was interested and I asked if he could be persuaded to sell the item. He said, "If you will give me a decent profit."

The timeless spirit of enterprise smiled, and money changed hands.

Who was Herreshoff, the president of the company? I knew I heard that name before, but I could not place it. I knew the company had something to do with sailboats. Why was a naval patrol boat used on the certificates? The corporate seal shows a small "1879" above a larger "1917". This suggests some form of reorganization or change occurred in 1917. A little research was certainly in order.

Tall Tales, Fast Ships

Nathanael Greene Herreshoff was born in the seafaring town of Bristol, Rhode Island in 1848. In earlier times, the inhabitants of Bristol built and sailed slave ships, operating between Bristol, the Caribbean, and Africa. During the War of 1812 they sailed in fast blockade runners and served on privateers. Nat and his five brothers must have spent many long hours listening to the tall tales spun by retired sea captains and watching the local boat builders at work. No one was surprised when J.B., Nat's older brother, opened his own boat building establishment. When J.B. became blind at the age of fourteen, Nat became his eyes and hands. Despite his blindness, J.B. went on to become the chief executive of one of the most successful yacht building companies in the world. Nat went to Massachusetts Institute of Technology.

During the Civil War, Nat continued his education, attending M.I.T. and graduating with a three-year degree in mechanical engineering. He took a position with the Corliss Steam Engine Company. In 1876, at the Centennial Exposition the favorite attraction of the entire fair was the giant Corliss stationary engine which supplied the power for some 13 acres of machinery on display in the Great Hall. Visitors were greatly impressed that the engine, bigger than the average house, was entrusted to the care of one small man. That man was Nathanael Herreshoff. Nat's knowledge of steam engines was to be applied to the boats, yachts, and launches brother J.B. was now building at his boatyard in Bristol.

In 1878, Nat and J.B. formed a partnership which they incorporated a year later as the Herreshoff Manufacturing Company. They were the sole shareholders. Nat's designing and engineering expertise and J.B.'s business sense helped them to land contracts with the Spanish, Russian, French, and British Governments for fast gunboats and torpedo boats. Within a few short years, the Herreshoffs gained an unequaled reputation in the field. They began to build high-speed steam driven private yachts as well.

In 1888 Nathanael Herreshoff's preoccupation with high-speed steamboats came to an abrupt end. He was supervising the speed trails of "Say When," a 138-footer with an 875 horsepower engine. Just before she got up to the speed that he anticipated she could reach, a safety valve popped. In an uncharacteristic moment of impatience he screwed the safety valve down. Minutes later a tube in the boiler exploded, fatally injuring a crew member. Nathanael Herreshoff lost his steam engineer's license and his desire to build high-speed steam yachts.

The America's Cup

In the 1890's Captain Nat began designing large sailing yachts. He pioneered the development of the fin keel and bulb keel, two "modern" concepts he used in his designs in the 1890's. He invented crosscut sails. He developed sail tracts and slides that replaced the cumbersome hoops used previously. The light, hollow metal spars that are in use today were a result of his pioneering efforts. These efforts did not go unnoticed in Newport, just south of Bristol. J. P. Morgan, Cornelius Vanderbilt, Harold S. Vanderbilt, Jay Gould, Harry Paine Whitney, William Randolph Hearst, A.J. Drexel, August Belmont, William K. Vanderbilt, Harold S. Vanderbilt, Junius S. Morgan, Jr., A.J. Cassat, Alfred G. Vanderbilt all bought yachts or tenders at one time or another from the Herreshoffs. They would call Captain Nat, tell him they wanted a yacht of such-and-such length, sail or steam, and the Herreshoffs would take it from there.

In 1892, when Lord Dunraven of Great Britain challenged for the America's Cup, Captain Nat was ready. He designed and built "Vigilant" for Newport resident E. D. Morgan and C. Oliver Iselin of the New York Yacht Club. Throughout the Cup races of 1893, Captain Nat was at the wheel and he steered Vigilant to victory. It was a feat he would accomplish five more times between 1892 and 1920, designing every America's Cup winner built during what has since become known as "The Herreshoff Period."

The End of an Era

We now know who Nathanael Greene Herreshoff was. We know why the date 1879 is on the embossed company seal, but what happened in 1917 to cause the issuance of a new series of bonds? (1917 is mentioned on the company seal and the certificate #1, indicating the first of a new series.) L. Francis Herreshoff, Captain Nat's son, dates the decline of the company back to 1915. Captain Nat came home from a trip abroad, and he discovered that his brother, J.B., had made preliminary plans to build a whole fleet of torpedo boats for the Russian Navy. When the brothers formed their partnership in 1879, J.B. had promised never to over-extend the company financially. Captain Nat objected to the Russian business deal and J.B. became disheartened. A few days later, J.B. was dead of a heart attack. The trustees of J.B.'s estate decided to sell out their shares and Captain Nat sold most of his stock as well. The new stock holders consisted of former customers and none of them had the time or skill to successfully manage the business. They hired a professional manager. J.B.'s presence was sorely missed. Things went from bad to worse, and on Feb. 19, 1919 the company was dissolved by court order. In 1924, the physical plant was auctioned off. One can begin to imagine Captain Nat's thoughts as he walked through the grounds of the Company for the last time. Though he lived to be ninety, it must have been the saddest day of his life.

Stephen Goldsmith is Vice President of R.M. Smythe & Co. in New York City.

Editor's note: As source material, the author relied on Captain Nat Wizard of Bristol by L. Francis Herreshoff. Published 1953. The editor also thanks Carlton Pinheiro, curator of the Herreshoff Marine Museum, Bristol, RI, and Thomas Moore, of The Mariners' Museum, Newport News, VA for their help in preparing this article.