February 27, 1942

DETROIT JEWISH CHRONICLE and the Lep, Worm.le

BUILDERS OF AMERICA

75 Years of Kuhn, Loeb and Company

By WALTER D. LORBER

Editor's Note: An enterprising reporter discovered that Khun• Loeb & Com-
pany is now marking its 75th birthday. To that company, a great nation owes a
part of its development. To the men who have led its affairs, American Jewry

owes a lasting debt for generous leadership.

Seventy-five years ago this month a great,
financial dynasty was started in this country.
From it emerged some of the most remarkable
contributions to the development of this great
nation. From it sprang a galaxy of names which
glitter in the history of American-Jewish philan-
thropy and leadership. For ninny decades, the
banking house of Kuhn, Loeb and Company was
not merely the treasury to which great pioneer-
ing ventures came for support and imaginative
sponsorship but the address to which a swiftly
growing Jewish population looked for beneficent
guidance in helping Jews in distress, abroad and
here.
Kuhn, Loeb & Company, like most solid Wil-
liams and Wall Street establishments, looks as-
kance at newspaper publicity, as dowagers do at
references to their names in society columns.
But a house that has helped finance the expan-
sion of a cocntinent and the growth of virtually
every great invention,from railroads to tele-
vision, cannot escape notice at an appropriate
anniversary. Particularly is that true of a house
which has produced such names as Jacob Schiff,
Paul and Felix Warburg, and which is still in-
corporated in the fabric of American-Jewish life
through such names as Edward Warburg, John M.
Schiff, Dorothy Schiff Backer and many others,
who now serve in civilian or military life.

FOUNDED IN 1867
Without fanfare and with modesty, three Jews
in New York decided in February, 1867, to estab-
lish a banking house. Circulating a letter among
potential friends in the financial world, the three
men, Abraham Kuhn, Solomon Loeb and Samuel
Wolff, declared in their circular:
"We here with beg to inform you that we have
this day formed a co-partnership under the firm
of Kuhn, Loeb & Company for the transaction
of a general banking and commission business.
"We will receive money on deposit, subject to
cash at sight, the same as with city banks, allow
interest by special agreement only, and make
loans to our customers on liberal terms.
"We will buy and sell commercial paper."
On that day seventy-five years ago was started
one of the most influential banking houses in the
United States, foremost in helping keep America
confident when times of crisis made strong men
lose faith in the future of this country. From
its early beginnings, Kuhn, Loeb & Company
developed into one of the great names in the
financial world—and gave to the Jewish world
some of the outstanding philanthropists in the
long Jewish history of charity.
Interwoven int the warp and woof of the
banking firmly is iry are names which stand out
as distinct perso lities, just as certain activities
of Kuhn, Loeb & Company are emphasized by
financial historians as the years roll along.
Men like Jacob Schiff, Otto Kahn, Felix and
Paul Warburg—American institutions like the
Pennsylvania Railroad, the Union Pacific, Ameri-
can Telephone and Telegraph—are emblazoned in
the records of this company.
Because it is impossible within the limits of
one article to list the virtually countless activities
of Kuhn, Loeb & Company or to do more than
outline the philanthropic work of the Jewish
communal leaders who were or are connected
with this premier Jewish banking house, one may
touch upon, here and there, some of the dramatic
tales involving the growth of Kuhn, Loeb &
Company, which developed together with country.

VAST INDUSTRIAL SCOPE
Just to indicate the vast scope of the contribu-
tion to American industry which has been made
by Kuhn, Loeb & Company, here are a few of

the institutions in which the banking house what
is called "a continuing interest":
Railroads: Baltimore & Ohio, Chesapeake &

Business and Professional
Group of Mt. Sinai Hos-
pital Assn. to Meet on
March 4

Ohio, Illinois Central, Pen sylva ia Railroad
Texas & Pacific, Union Pacific, Wabash.
Industrials: Western Union Telegraph Co.,
Westinghouse Electric & Manufacturing Co.,
American Telephone & Telegraph, Youngstown
Sheet & Tube Co., U. S. Leather Co., U. S. Rub-

Youth Choir to Sing at Temple
Israel Services

"The Book of Esther; An An-
cient Tale and Its Modern Ap-
plication" will be the subject of
Rabbi Leon Film's sermon at
the Sabbath Eve services of
Temple Israel, March 6 at 8:30,
in the Lecture Hall of the De-

troit Institute of Arts.

reorganizing the latter two at an expense in-
volving $750,000,000 in securities and 11,000
miles of trackage—without which America would
have remained an undeveloped, bush-league na-
tion, helps account for the debt of gratitude that
this country owes to the invaluable contribution
of the Jewish investment house.
That "Kayell" has been a carrier not only of
securities in the railroad industry but in the com-
munication field as well, floating issues for
Western Union and American Tel. & Tel., indi-
cates the extent of the debt owed this house.

IN RAILROAD STRUGGLE

Kuhn, Loeb & Company really made its mark
in the great railroad struggle which found the
Harriman interests and "Kayell" pitted against
the powerful J. P. Morgan & Company and James
Hill interests. The former combination supported
the Union Pacific and the Southern Pacific. Mor-
gan and Hill backed the Great Northern and the
Northern Pacific. The keen battle took place in
the hectic '80's, when America was in a state of
expansion. By 1896 the situation of the Union
Pacific was so bad that the entire financial world
believed that it was through. But "Kayell" re-
organized the railroad company so brilliantly and
made the financial world chew its words so hard,
that from that moment on "Kayell" was consid-
ered second only to the House of Morgan.
In 1914 the two outstanding banking houses,
Morgan and "Kayell", pulled the City of New
York out of a financial pit. At the start of the
First World War New York City was unable to
meet a $100,000,000 obligation to England. Mor
gan and "Kayell" made contact with the Roth-
schilds, another Jewish banking house, and saved
the day. Again "Kayell" played the role of Santa
Claus. Throughout its years of service to the
community, Kayell has been in the front lines.
Whenever money was needed, when disaster stared
an important American institution in the face,
"Kayell" has come through.
Theoretically, all the partners in the organi-
zation are equal. No partner is a specialist in
any one banking field. All matters are decided
by the partners in "conference assembled".
The famous "quartet" in the banking world,
consisting of Otto Kahn, Mortimer Schiff and
the Warburg brothers, were philanthropists, whose
each and every gift is somewhere evident in the
fabric of American life.
The story of Kuhn, Loeb & Company proves
that the Jewish bankers are good Americans and
good Jews and fine examples of human beings
aware of .their various duties to their commu-
nity, their nation and their God. The Jews of
"Kayell" may well be proud of the 75 years of
service to the cause of America all-powewrful.

ance with the Senior specifica- Rabbi Elmer Berger to Ad-
tions.
dress Beth El College
Miss Ceil Walerstein is editor-
on March 2
in-chief of the League Log whch
not only notifies the members
Rabbi Elmer Berger of Flint,
of the meetings, but also keeps

hold its monthly meeting at the
home of Miss Jean Weiner, 2700 Cy Caldwell at Cass Town

Hall March 6
Fullerton, on Wednesday, March
4 at 8 p. m. This meeting, in
Cy Caldwell, editor of "Aero
the form of an informal Purim Digest, military analyst, inter-

.

MT. SINAI HOSPITAL ASSN.

The Youth Choir of Temple
Israel Religious School directed
by Cantor Robert S. Tillman will
render a special Purim hymn,
"Thanksgiving and Praises," by
ber Co., United Steel Works.
D. Davidson.
These are but a few. In all there are 26 rail-
Rabbi Fran will read from
roads. There are three banks and there were the new Megillah of Esther re-
countless city and state governments throughout cently published by the Union of
the world which have in one way or another American Hebrew Congregations
felt the influence of "Kayell". Ironically, some in accordance with the custom
of the governments which used to borrow freely established by Temple Israel.
from "Kayell" were Japan, Germany, Austria, This combined Sabbath Eve and
Czechoslovakia and other nations which are either Purim worship will be a family
enemies of the United States or no longer func- service. At the Sabbath Eve
tion independently. American history books have nearest to each Jewish holiday,
often stressed the value and significance of the Temple Israel invites younger
Union Pacific Railroad. The fact that "Kayell" children from the age of 9 and
lent more than $1,000,000,000 to the Pennsyl- up to come to the services with
vania Railroad Company and played a prominent their parents to witness the sym-
part in financing not only the Union Pacific, but bolism of the festival and the
also the St. Paul and the Southern Pacific lines— singing of the hymns. The Sis-

The Business and Profession- them informed on all activities
al group of the League of Mt. of the various committees, social
Sinai Hospital Association will chit-chat, and hospital progress.

party is free and open to all
girls interested in working for
the hospital. As on previous
such occasions, a brief business
meeting will be- followed by
games and other forms of amuse-
ment.
The League has pledged $100
to the Senior Mt. Sinai Hospital
drive, and every girl in the
League has taken a $5.00 obli-
gation to meet this indebted-
ness. The money, to be raised
or donated, will be turned in
at this meeting.
Miss Pearl Nusbaum also re-
ports that her Red Cross divi-
sion is working very industrious-
ly, knitting sweaters in accord-

Fram to Interpret
"Book of Esther"

nationally known aviation writer
and expert, is the speaker for
the Detroit Town Hall at the
Cass Theater on Friday morning,
March 6, at 11 o'clock. Mr.
Caldwell has been heard reg-
ularly over the air, Friday eve-
nings, in "The War in the Air"
Series.
Mr. Caldwell has a first-hand
knowledge of war. He was a
Captain in the R.A.F., flying
over Germany every night dur-
ing the First World War, and
serving in the Army of Occupa-
tion until 1922.
Mr. Caldwell believes he :s
the first pilot in history to use
armor plating in his plane.

Michigan, will address the Beth
El College of Jewish Studies on
Monday evening, March 2, at
9 o'clock, on "Why I Am A
Non-Zionist."
Rabbi Berger graduated from
Hebrew Union College in 1930
and was called to the pulpit of
Temple Beth Jacob in Pontiac.
In 1936, he was called to Temple
Beth El of Flint, where he is
serving as rabbi at the present
time. Rabbi Berger is a mem-
ber of the Executive Board of
the Hebrew Union College Alumni
Association, a member of the
Speaker's Bureau of District No.
6 Bnai Brith, a member of the
Michigan Children's Aid Society,
and a member of many civic
bodies in Flint. Rabbi Berger
taught at Beth El College of
Jewish Studies from 1932 to
1940.
This is the ninth in the series,
"Why I Am What I Am," con-
ducted under the auspices of
the Beth El College of Jewish
Studies.

The Mount Sinai Hospital As-
sociation of Detroit has received
the following donations:
By Herbert Rosenthal and Mr.
and Mrs. Ben Rosenthal, in mem-
ory of grandfather, Max Rosen-
thal and Mrs. Eva Rosengarten;
by Mrs. Max Mosko, in honor
of grandson, David Aaron Kap-
lan of Chicago, Ill.; by Mrs.
Jacob Rizika of Utica, N. Y., in
memory of brother, Joseph Ben-
jamin; by Mrs. Isaac Rosenthal,
in honor of grandson, Reuben
Samuels; by Mrs. Paul Bardy, in
honor of Mrs. Fannie Rodin.

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terhood of Temple Israel will
hold a reception after the service
at which Purim refreshments will
be served.
Temple Israel Religious School,
which meets at the Hampton
Public School, 18460 Warring-
ton Drive, will continue its cele-
bration of Purim on Saturday
morning, March 7. The con-
firmation department including
seven, eight and nine, will cele-
brate Purim with class parties
and a Purim puppet show writ-
ten by William Hass. On Sunday
morning, March 9, the high
school of Temple Israel School,
grades 10, 11 and 12, will hold
a special Purim assembly. The
younger grades from the kinder-
garten through the sixth grade
will have a Purim masquerade
party on Sunday, March 1.

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A Purim party will be held
by the Men's Club of the Bnai
David Synagogue, Thursday,
March 6, at Elmhurst and 14th,
for members, wives and guests.

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