Fenner & Beane
Encyclopedia
Fenner & Beane was a brokerage firm based in New Orleans, Louisiana. Originally founded as Fenner Gatling & Beane in 1916, the firm was renamed in 1919. The firm was founded by the Beane Brothers, New Orleans cotton merchants, to manage their exposure to fluctuations in commodity prices.
In 1941, Fenner & Beane merged with what was then known as Merrill Lynch, E.A. Pierce and Cassatt to become Merrill Lynch, Pierce, Fenner & Beane. In 1957, Merrill discontinued the use of the name Beane, replacing it with Smith in recognition of Winthrop H. Smith
a longtime chief of the firm.
and New Orleans. Beane Brothers was dissolved around 1915 and in 1916 Alph Beane entered into a new brokerage firm Fenner Gatling & Beane.
Beane's partner, Charles E. Fenner came from a distinguished New Orleans family, as his father was a justice of the Louisiana Supreme Court and Confederate
president Jefferson Davis
died in the Fenner home in New Orleans in 1889.
The firm expanded quickly through the Southern states and Midwestern U.S. through the 1920s focusing primarily on the trading of commodities, particularly futures contract
s for grain and cotton. The firm was a member of the various commodity exchanges in New Orleans, Chicago and Memphis, Tennessee. By the 1930s, Fenner & Beane had established itself as the second largest brokerage firm in the U.S. however the firm was suffering from decreased trading volumes caused by the Great Depression
. Following the death of Alph Beane in 1937, Charles Fenner and Alpheus Beane's son began discussions with Merrill Lynch
about a potential merger. The merger was completed in August 1941 creating Merrill Lynch, Pierce, Fenner & Beane. The length of the name prompted outsiders to label the new firm "We the people" or "the thundering Herd".
Alph Beane's son had come to work at Fenner & Beane in 1931 and would spend more than 25 years at the firm and later at Merrill Lynch
before founding his own firm, which was later acquired by Reynolds & Company.
In 1941, Fenner & Beane merged with what was then known as Merrill Lynch, E.A. Pierce and Cassatt to become Merrill Lynch, Pierce, Fenner & Beane. In 1957, Merrill discontinued the use of the name Beane, replacing it with Smith in recognition of Winthrop H. Smith
Winthrop H. Smith
Winthrop H. Smith also known as Win Smith was an American businessman and investment banker. He was notable as a name partner of Merrill Lynch, Pierce, Fenner & Smith....
a longtime chief of the firm.
History
The firm's predecessor, Beane Brothers was founded in early 1900s by Alpheus Crosby ("Alph") Beane and his brothers Frank E. Beane, Jr and William Sterling Robert Beane. The firm traded primarily in cotton with offices in Columbus, GeorgiaColumbus, Georgia
Columbus is a city in and the county seat of Muscogee County, Georgia, United States, with which it is consolidated. As of the 2010 census, the city had a population of 189,885. It is the principal city of the Columbus, Georgia metropolitan area, which, in 2009, had an estimated population of 292,795...
and New Orleans. Beane Brothers was dissolved around 1915 and in 1916 Alph Beane entered into a new brokerage firm Fenner Gatling & Beane.
Beane's partner, Charles E. Fenner came from a distinguished New Orleans family, as his father was a justice of the Louisiana Supreme Court and Confederate
Confederate States of America
The Confederate States of America was a government set up from 1861 to 1865 by 11 Southern slave states of the United States of America that had declared their secession from the U.S...
president Jefferson Davis
Jefferson Davis
Jefferson Finis Davis , also known as Jeff Davis, was an American statesman and leader of the Confederacy during the American Civil War, serving as President for its entire history. He was born in Kentucky to Samuel and Jane Davis...
died in the Fenner home in New Orleans in 1889.
The firm expanded quickly through the Southern states and Midwestern U.S. through the 1920s focusing primarily on the trading of commodities, particularly futures contract
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
s for grain and cotton. The firm was a member of the various commodity exchanges in New Orleans, Chicago and Memphis, Tennessee. By the 1930s, Fenner & Beane had established itself as the second largest brokerage firm in the U.S. however the firm was suffering from decreased trading volumes caused by the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
. Following the death of Alph Beane in 1937, Charles Fenner and Alpheus Beane's son began discussions with Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
about a potential merger. The merger was completed in August 1941 creating Merrill Lynch, Pierce, Fenner & Beane. The length of the name prompted outsiders to label the new firm "We the people" or "the thundering Herd".
Alph Beane's son had come to work at Fenner & Beane in 1931 and would spend more than 25 years at the firm and later at Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
before founding his own firm, which was later acquired by Reynolds & Company.