E. A. Pierce & Co.

E. A. Pierce & Co. was a New York City securities brokerage firm and one of the largest American “wire houses” during the first half of the twentieth century. Its corporate history began with Burrill & Housman, founded in 1885 by William Burrill and Arthur Housman. After Burrill left the business, Arthur Housman’s brothers Clarence and Fred joined the firm, which became A. A. Housman & Company. The business later adopted the E. A. Pierce name after Edward A. Pierce, who had joined the firm in 1901, became its managing partner in 1921, and assumed effective control during the firm’s expansion. The firm operated in the securities-brokerage industry, executing trades and serving investors through a growing network of offices and communications infrastructure. Arthur Housman had established a reputation in the early twentieth century as a broker for financier J. P. Morgan and had been associated with efforts to restore confidence during the Panic of 1901. Other partners included Bernard Baruch and his brother Saling Baruch, connecting the firm with prominent figures in American finance and public life. The business was renamed E. A. Pierce & Co. in 1927. The change reflected Edward Pierce’s leadership and marked the consolidation of the firm around a brand that would become prominent in the national brokerage market. Following the stock-market crash of 1929, Pierce pursued a program of acquisitions while many financial institutions were under pressure. In 1930, it acquired the brokerage businesses of Otis & Co. and C. D. Robbins & Co. It also acquired Merrill Lynch’s brokerage business, bringing in much of Merrill Lynch’s staff, including Edmund C. Lynch and Winthrop H. Smith. These transactions helped make E. A. Pierce the largest brokerage firm in the United States and a leading national wire house. During the 1930s, the company combined nationwide distribution with operational and communications technology. It introduced IBM machines for record keeping and developed a private telegraph network that reportedly extended for more than 23,000 miles by 1938. The network supported the rapid transmission of market information and trade instructions, an important competitive advantage in an era before modern electronic markets. The firm’s scale, branch reach, and communications system made it one of the defining securities intermediaries of the period. Its size did not eliminate financial pressures. E. A. Pierce remained thinly capitalized during the 1930s, and the death of Edmund C. Lynch in 1938 prompted Winthrop H. Smith to explore a closer combination with Charles E. Merrill. Merrill owned a minority interest in E. A. Pierce, and the parties ultimately concluded that a merger would provide a stronger structure. On April 1, 1940, Merrill Lynch, E. A. Pierce & Cassatt was formed through the combination of Merrill Lynch, E. A. Pierce, and Cassatt & Co., a Philadelphia brokerage in which both Merrill Lynch and E. A. Pierce held an interest. Fenner & Beane, a major competitor, also joined the combination, producing the organization that became Merrill Lynch, Pierce, Fenner & Beane. E. A. Pierce & Co. therefore ceased to exist as an independent brokerage brand in 1940.

The earliest predecessor of E. A. Pierce & Co. was Burrill & Housman, established in 1885 by William Burrill and Arthur Housman. Housman had previously trained in his father’s wholesale dry-goods business and studied at the Charlier Institute in New York. During the early 1900s he became known as a broker for J. P. Morgan and played a role in efforts to stabilize the market during the Panic of 1901. Burrill departed the firm in 1890. Arthur Housman’s brother Clarence joined in 1896, followed later by another brother, Fred. The partnership was subsequently known as A. A. Housman & Company. Edward A. Pierce entered the firm in 1901. Bernard Baruch and his brother Saling Baruch were also among its partners at different points. Arthur Housman died in 1907, after which Pierce gradually became the firm’s dominant figure. He became managing partner in 1921. In 1927, the company adopted the name E. A. Pierce & Co. The firm expanded substantially after the stock-market crash of 1929, acquiring the brokerage businesses of Otis & Co. and C. D. Robbins & Co. in 1930. In the same year, it bought Merrill Lynch’s brokerage operation and absorbed most of that firm’s employees, including Edmund C. Lynch and Winthrop H. Smith. These transactions transformed Pierce into the largest brokerage firm in the United States and one of the country’s premier wire houses. The firm continued to develop its operating infrastructure throughout the 1930s. It used IBM machines for business record keeping and operated an extensive private telegraph system for transmitting market information and trade instructions. By 1938, the network was reported to extend for more than 23,000 miles. This infrastructure supported a national brokerage presence at a time when communications speed and branch connectivity were central competitive assets. E. A. Pierce’s scale was accompanied by financial vulnerability. The firm was thinly capitalized, and the death of Edmund C. Lynch in 1938 led Winthrop H. Smith to discuss a possible combination with Charles E. Merrill. Merrill held a minority interest in E. A. Pierce. The negotiations culminated on April 1, 1940, when Merrill Lynch, E. A. Pierce & Cassatt was formed by combining the two firms with Cassatt & Co., a Philadelphia brokerage in which both had an interest. Fenner & Beane, the consistently second-largest brokerage behind Pierce, also merged into the new organization. The resulting business became Merrill Lynch, Pierce, Fenner & Beane, ending E. A. Pierce & Co.’s existence as an independent brand.

1. 1940Merger creates Merrill Lynch, Pierce, Fenner & Beane

   E. A. Pierce merges with Merrill Lynch and Cassatt & Co.; Fenner & Beane also joins the resulting organization.

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2. 1938Telegraph network exceeds 23,000 miles

   The firm’s private wire network becomes the largest in the industry, supporting trade execution and national connectivity.

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3. 1930Major brokerage acquisitions

   E. A. Pierce acquires the brokerage businesses of Otis & Co., C. D. Robbins & Co., and Merrill Lynch, becoming the largest U.S. brokerage firm.

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4. 1927The E. A. Pierce name is adopted

   A. A. Housman & Company is renamed E. A. Pierce & Co.

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5. 1921Pierce becomes managing partner

   Edward A. Pierce assumes the managing-partner role.

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6. 1907Arthur Housman dies

   Arthur Housman dies at age 52, after which Pierce’s influence in the business increases.

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7. 1901Edward A. Pierce joins the firm

   Edward A. Pierce becomes a partner in the Housman brokerage and later assumes control.

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8. 1896Clarence Housman joins

   Arthur Housman’s brother Clarence joins the firm; another brother, Fred, later becomes involved.

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9. 1890Burrill leaves the partnership

   William Burrill departs, beginning the firm’s transition toward the Housman-led partnership.

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10. 1885Burrill & Housman is founded

    William Burrill and Arthur Housman establish the brokerage partnership that ultimately becomes the predecessor of E. A. Pierce & Co.

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A large-scale, nationally distributed American securities brokerage distinguished by its branch network, wire communications infrastructure, prominent financial partners, and aggressive consolidation strategy.

• Securities brokerageFinancial services1885

  The firm’s core business was securities brokerage for investors and clients. Its operations centered on executing transactions through a broad branch and wire-house network, supported by market communications and centralized administrative systems.

• Wire-house trade executionBrokerage infrastructure

  E. A. Pierce built a national communications system using private telegraph wires to transmit market information and trade instructions. By 1938, the system reportedly extended for more than 23,000 miles and was described as the largest private wire network in the brokerage industry.

• Brokerage record-keepingOperations technology

  During the 1930s, E. A. Pierce introduced IBM machines into its record-keeping operations. The technology helped the large brokerage manage transaction and customer records across its expanding national business.

• 1940Merge with Merrill Lynch and CassattM&A

  The firm remained financially thinly capitalized during the 1930s. After Edmund C. Lynch’s death, Winthrop H. Smith discussed a combination with Charles E. Merrill.

  What changed. On April 1, 1940, Merrill Lynch, E. A. Pierce & Cassatt was formed through the combination of Merrill Lynch, E. A. Pierce, and Cassatt & Co.

  Aftermath. Fenner & Beane also joined the organization, which became Merrill Lynch, Pierce, Fenner & Beane. E. A. Pierce & Co. ceased to operate as an independent firm.

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• 1930Acquire Merrill Lynch’s brokerage businessM&A

  Following the 1929 stock-market crash, E. A. Pierce pursued acquisitions while the brokerage industry was under financial and competitive pressure.

  What changed. The firm acquired Merrill Lynch’s brokerage business and absorbed most of its employees, including Edmund C. Lynch and Winthrop H. Smith.

  Aftermath. The transaction contributed to E. A. Pierce becoming the largest brokerage firm and a leading wire house in the United States.

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• 1940Merrill Lynch and E. A. Pierce merge

  Merrill Lynch, E. A. Pierce & Cassatt was created through the merger of Merrill Lynch, E. A. Pierce, and Cassatt & Co.; Fenner & Beane also became part of the resulting organization.

  M&A
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• 1938E. A. Pierce expands its communications network

  The firm was reported to control a private telegraph network exceeding 23,000 miles, supporting trade execution across its brokerage operations.

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• 1930E. A. Pierce acquires brokerage businesses after the 1929 crash

  The firm acquired the brokerage businesses of Otis & Co., C. D. Robbins & Co., and Merrill Lynch, including most of Merrill Lynch’s employees.

  M&A
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1. E. A. Pierce & Co.