Joseph Wharton

For the American merchant, see Joseph Wharton (1707–1776).

Joseph Wharton
Wharton in 1902
Born	(1826-03-03)March 3, 1826 Philadelphia, Pennsylvania, U.S.
Died	January 11, 1909(1909-01-11) (aged 82) Philadelphia, Pennsylvania, U.S.
Occupation	Industrialist
Political party	Republican
Spouse	Anna Corbit Lovering ​ ​ (m. 1854)​
Children	Joanna W. Lippincott, Mary L. Wharton, Anna W. Morris.
Signature

Joseph Wharton (March 3, 1826 – January 11, 1909) was an American industrialist. He was involved in mining, manufacturing, and education. He founded the Wharton School at the University of Pennsylvania, co-founded the Bethlehem Steel company, and was one of the founders of Swarthmore College.

Early life and education

Wharton was born in Philadelphia, on March 3, 1826, the fifth child of ten in a liberal Hicksite Quaker family. His parents, William Wharton and Deborah Fisher Wharton, were both from prominent early American immigrant families of Quaker descent.

Wharton's maternal grandfather, Samuel R. Fisher, ran a prosperous mercantile business and shipping packet line between Philadelphia and London, and his grandmother, Hannah Rodman, was a descendant of Thomas Cornell, the ancestor of Ezra Cornell, the co-founder of Cornell University. His paternal grandfather was a merchant, owning Bellevue Mansion, a country house and estate. Both of Wharton's grandmothers were named Hannah and were from Newport, Rhode Island.

Wharton's youth was spent in the family's house near Spruce and 4th streets in Center City Philadelphia and at Bellevue, a country mansion in present-day North Philadelphia. Wharton's father was a typical gentleman, and did not hold a regular job because he had several illnesses, but oversaw his estate, served on the Philadelphia School Board, and was active with his wife, Deborah, in the Hicksite ministry. The family often visited the nearby Schuylkill River, neighboring estates such as Deborah's grandfather Joshua Fisher's The Cliffs, and took weekend horse and carriage excursions to the countryside surrounding Philadelphia, sometimes attending the smaller Quaker Meetings.

As a boy, Wharton attended two Quaker boarding schools in the towns outside of Philadelphia and also several private schools in the city. Between the age of 14 and 16, Wharton was prepared for college by a private tutor. At age 16, however, he took the advice of his parents to mature and learn the life of a farmer, a common dream of city-born Hicksite Quakers at the time. For three years, he boarded with Joseph and Abigail Walton on their family farm near West Chester, Pennsylvania.

Wharton matured to a strong frame, 6 feet (1.8 m) in stature, with a serious but cheerful outlook. He was accomplished in sports, including horseback riding, swimming, and rowing on the Schuylkill River. During the winter, Wharton returned to his parents' home in Philadelphia and studied languages such as French and German, which were useful for learning about science and technology. He also studied chemistry at the Philadelphia laboratory of Martin Hans Boyè. In their early years, Wharton and his brothers identified with inventors and builders Cyrus McCormick and Samuel F. B. Morse.

Career

Wharton, c. 1850

When he was 19, Wharton apprenticed with an accountant for two years and became proficient in business methods and bookkeeping. At 21, he partnered with his older brother Rodman to start a business manufacturing white lead. Wharton's chemistry mentor, Martin Boye, had developed a method to refine cottonseed oil and the Wharton brothers tried but failed to develop a profitable method to extract it. In 1849 Wharton started a business manufacturing bricks using a patented machine which pressed dry clay into forms. There was substantial competition in the brick business, which was affected by cyclical business swings, and after several trips to sell bricks and the brick-making machines, Wharton found the prospects for making good profits were dim. However, from the endeavor he gained valuable experience. In 1853, Wharton joined the Pennsylvania and Lehigh Zinc Company near Bethlehem, Pennsylvania, first managing the mining operation and later the zinc oxide works. Wharton proved himself by negotiating a new charter for the works, and in the difficult financial environment of 1857–1858 he took over control of the zinc works, managing it carefully so that it turned a profit. In 1860, Wharton, after some challenging negotiations with the directors of the company, developed for Lehigh Zinc the first plant to manufacture metallic zinc in America. Looking into the next business cycle, he leased the plant for four years and eventually made a robust profit from the sale of metallic zinc, used in making brass, which picked up in the Civil War years.

Nickel manufacturing

Hoping to profit from the use of nickel in coins, Wharton in 1863 sold his interest in zinc and started the manufacture of nickel at Camden, New Jersey, taking over a nickel mine and refining works at Nickel Mines, Pennsylvania. The Camden plant was located on the east side of 10th Street, adjacent to Cooper Creek, and had several large brick buildings and smokestacks. Wharton renamed the Camden plant the American Nickel Works, and his office there became his center of operations. However, the use of nickel in coinage was temporarily halted, and soon the Camden plant burned. Wharton rebuilt it in 1868 and made excellent profits from producing nickel because it became favored for coinage. Wharton won wide acclaim for his malleable nickel, the first in the world, and also for nickel magnets, and received the Gold Medal at the Paris Exposition of 1878.

His factory produced the only nickel in the U.S. and a significant fraction of the world supply. The surface deposits at the Gap mine were eventually depleted, and Wharton was obliged to purchase nickel ore from a mine in Sudbury, Ontario, Canada. This experience was a challenge to Wharton, who learned about market economics and protection when foreign nickel manufacturers opposed his nickel purchasing and manufacture efforts. Wharton by then had learned the value of meeting personally with his managers and regularly inspecting the mines and manufacturing plants with them. He was successful because he worked hard to increase efficiency and profitability of the businesses he acquired, and energetically pursued markets for his products.

Wharton made a robust profit from his nickel business over its 40-year duration, but by 1900 its outlook was fading due to foreign competition. Wharton and a group of other United States and Canadian nickel enterprises formed the International Nickel Company (Inco) in 1902. He sold his American Nickel Works in Camden and the Gap mine for a share in the new company, and was named one of the dozen board members. By this time, the profitability of his business empire did not depend on the manufacture of nickel because he had already diversified into other profitable businesses.

Estate, water and New Jersey

In 1854, Philadelphia increased its tax base by expanding its borders to include the surrounding suburbs, and after the Civil War, its population swelled. By 1870 the Centennial Exposition was upcoming, and Philadelphia was rapidly changing. It was suffering from a water crisis because it required more water, but there was no appropriate method for water purification and the Delaware and Schuylkill rivers were heavily polluted. Philadelphia's typhoid fever rate was among the highest in the nation, and most well-to-do families drank bottled spring water.

The Wharton family's Bellevue Mansion estate in North Philadelphia, along with several others nearby that had been annexed into the city, were threatened with condemnation by the city for the construction of a new reservoir to hold potable water. Wharton started purchasing land in South Jersey in the 1870s, eventually acquiring 150 square miles (390 km²) in the Pinelands, which contained an aquifer replenished by several rivers and lakes. The water from the Pinelands was relatively pure and he planned to export the water to Philadelphia. Wharton suggested that a city-controlled company could develop the necessary water mains and pump, funded by public purchase of stocks and bonds.

Opposition to the plan emerged in Philadelphia and in New Jersey, and eventually, a law was passed in New Jersey preventing the export of water. The Bellevue Mansion was taken by the city, but the planned reservoir was never constructed, because of local politics and also because by 1890 water could be purified by filtration, obviating the need for an extra reservoir. The estate was instead sold to developers for construction of new housing for the newly organized industry nearby in North Philadelphia.

Mining and railroads

Wharton traveled widely and became involved in many industrial enterprises such as mines, factories and railroads. He started several enterprises on South Jersey property, including a menhaden fish factory that produced oil and fertilizer, a modern forestry planting operation, and cranberry and sugar beet farms. Wharton also purchased land containing ore and an iron furnace in North Jersey at Port Oram, New Jersey, later renamed Wharton, New Jersey in Wharton's honor, which was located close to the Morris Canal and railroads.

He purchased a coal mine in Western Pennsylvania, constructing for the workers a town of 85 houses and stores along the railway. He also purchased coal land in West Virginia, iron and copper mines in Michigan, and gold mines in Arizona and Nevada. Wharton became involved in the Reading and Lehigh railroads and several others, arranging spur lines with the railroads to carry ore and finished metal products. He maintained an extensive business correspondence and in later life maintained this practice through his vacations. Wharton was a colleague of leaders such as inventors Ezra Cornell, Elias Howe and Thomas Edison, and entrepreneur Cornelius Vanderbilt. His management style evolved throughout the latter half of the 1800s, making use of new technology for communication, transportation, and production, so that he controlled many industries profitably on a larger scale than was previously possible.

Bethlehem Steel

Further information: Bethlehem Steel

Through the 1870s Wharton began to buy into Bethlehem Iron Company which produced pig iron and steel rails, gradually investing more of his own time and energy, but without involvement in the day-to-day operations. He became the largest shareholder with a position on the board of managers, and eventually purchased a controlling share of the company. In 1885, Wharton successfully bid a contract with the United States Navy for forged steel armor, and in 1886 he visited England (Whitworth Co.) and France (Schneider Co.) to research the designs for a plant to forge steel of higher quality. With these designs, Bethlehem Iron built the first plant to forge high-strength steel in the United States. The plant fabricated armor plates and guns for warships. Similar contracts gave the company, renamed the Bethlehem Steel Company, a consistent source of income, and Wharton made slow but steady profits. In 1901 he sold the company but continued to be the largest producer of pig iron in the country because of his extensive iron and coal mines and refining works.

Politics and distinguished guests

Over several decades, Wharton lobbied successfully in Washington, D.C. for tariff laws protecting U.S. manufacturing. He was a defender of large business and evolved into a staunch Republican. He successfully lobbied for the use of nickel in the U.S. coinage, but his lobbying for nickel tariffs was only partially successful, probably because he had a virtual monopoly on production in the U.S. In 1873 the world was in a very trying economic depression and many industrial firms went bankrupt.

Wharton became widely known as a leader of the Industrial League of manufacturing concerns, and the main lobbyist and President of the American Iron and Steel Institute. He was a personal friend and consultant with several presidents, including Ulysses S. Grant, Rutherford B. Hayes, and Benjamin Harrison. Wharton entertained distinguished internationally known guests, including biologists Thomas Huxley and Joseph Leidy, astronomer Samuel Langley, scientist Lord Kelvin, Senators James Blaine and Justin Morrill, industrialist Andrew Carnegie, and metallurgist Alfred Krupp. Wharton successfully lobbied for a bill in the Pennsylvania General Assembly supporting Limited Partnerships to allow more participation of capital in enterprises with risk.

Science

Wharton was a scientist interested in the natural world, and wrote scientific papers on a variety of topics including astronomy and metallurgy, presenting several to the American Philosophical Society. He has been elected to the Society in 1869. In the winter of 1883–1884 there was a period of several months when sunsets were extraordinarily red worldwide. Some imagined that the red color was from dust dispersed in the atmosphere worldwide by the volcano Krakatoa, which erupted. Others imagined that the reddish hue might come from iron and steel furnaces because they were known to create a reddish-brown dust. Wharton was curious, and one morning when a light snow was falling, collected some from a field near his house, melted and evaporated it, studying the remaining particles under a microscope, which he had on hand for metallurgy.

The particles looked like "irregular, flattish, blobby" glass particles. He visited a ship from Manila that arrived in port in Philadelphia, a course that took a few hundred miles from Krakatoa. It had been slowed by a huge amount of pumice floating in the ocean, evidently spewed out by Krakatoa. Wharton obtained some pumice from one of the ship's crew, compared it with the dust he had collected, and found almost identical particles.

In 1893, Wharton presented a paper about the dust to the 150th anniversary meeting of the American Philosophical Society. Wharton also wrote a paper about the use of the Doppler effect on the color of light emitted by binary stars to determine their distance from Earth, and made the analogy to a train whistle which changes tone as it passes. Wharton was one of the most accomplished metallurgists in the U.S. during his lifetime, and certainly the most widely known.

Swarthmore College

Further information: Swarthmore College

In 1864, Wharton along with his mother Deborah Fisher Wharton and a group of like-minded Hicksite Quakers from Philadelphia, Baltimore, and New York City were the founders of Swarthmore College, a Hicksite Quaker college outside Philadelphia. Swarthmore filled an important need of a college where both men and women could receive a high-quality education in the tradition of Friends not dominated by religion.

Wharton gave generously, building a Friends Meeting on campus and also contributing to a science building. His mother Deborah served on the Swarthmore Board of Managers from 1862–1870, and Joseph served on the board from 1870–1909, and from 1883–1907 as its president. He was often on campus and gave many commencement addresses.

Wharton School

Further information: Wharton School

Wharton wrote extensively on economic matters, including protective tariffs and business cycles. In the last half of the 19th century, business education typically consisted mainly of training on the job or an apprenticeship. Wharton conceived of a school that would teach how to develop and run a business, and to anticipate and deal with the cycles of economic activity.

In 1881, Wharton donated $100,000 to the University of Pennsylvania to found a "School of Finance and Economy" for this purpose. He specified that the Wharton School faculty advocate economic protectionism, as he had when lobbying for American businesses in Washington. However, the school soon began to broaden its outlook to a global one and to teach other disciplines such as politics and the developing social sciences, and introduced the teaching of business management and finance as these disciplines gradually coalesced. The Wharton School was the first to include such a practical focus on business, finance, and management. During its first century through the present day, it was and is widely known as one of the most prominent schools of business in the world. In 2023, the Wharton School fell off of the Financial Times' 2023 MBA rankings for the first time since the ranking's inception.

Last years

Wharton's tombstone in Laurel Hill Cemetery in Bala Cynwyd, Pennsylvania, outside Philadelphia

Wharton was active to near the end of his life both physically and in business affairs. Until he was 72, he skated with guests on the pond at his Ontalauna estate near Philadelphia and would often go on walks with his family after dinner. Throughout his life he partook in physical exercise, total abstinence from tobacco, and restricted use of even mild alcoholic drinks. When he was nearly 80, he visited his Nevada silver mine by canoeing down the Colorado River and descending into the mine in a bucket, and when he was 81, he traveled to Germany with his grandson, Joseph Wharton Lippincott, to visit Kaiser Wilhelm II and had dinner on the kaiser's yacht. He continued to oversee his holdings in coke manufacture in Pennsylvania and iron in northern New Jersey.

He read widely in literature and was an accomplished poet. Many of his poems were inspired by trips abroad. He wrote "Stewardson's Yarn" after an 1873 visit to Europe, "The Royal Palm" and "The 'Sweet Reasonableness' of a Yankee Philistine in Cuba" after a visit to Cuba to inspect mines there, and "Mexico" after an 1889 visit to Mexico. A domestic journey to Nevada to see his gold mines there resulted in "The Buttes of the Canyon".

Personal life

Wharton married Anna Corbit Lovering, a fellow Quaker and the younger sister of his brother Charles' wife, in 1854 in a Quaker ceremony. After living with Anna's family for several months, the couple moved into a house belonging to his mother near 12th and Walnut streets in Center City Philadelphia, but Anna often continued to stay with her parents when Joseph was out of town. She preferred a life of comfort but did not wish to stifle Joseph's ambition. During this time, Wharton lived a spartan life, boarding at a hotel and managing the zinc works in Bethlehem, Pennsylvania, and Anna cared for their first child Joanna at their home in Philadelphia. Although Joseph returned as often as possible and they communicated often by letter, they felt much stress during this period, and their marriage suffered.

Later, when Joseph was more secure in his job manufacturing zinc, Anna and Joanna came to live with him in Bethlehem, where they lived a happier life for two years, partaking in social events and exploring the local rivers and countryside. After Wharton sold his interest in zinc, they returned to Philadelphia. Although Wharton often traveled to oversee his properties or develop business connections, he never again lived apart from the family. He purchased a country estate several miles north of Philadelphia, called "Ontalauna", and bought a donkey for their three children, Joanna, Mary, and Anna, to ride on horseback expeditions. In the evenings, Wharton often studied or played history games with the children.

Death

In 1907, Wharton experienced a stroke. While he survived the stroke, it left him largely incapacitated. His health gradually worsened until his death in Philadelphia on January 11, 1909, at age 82.

He was buried in the family plot at Laurel Hill Cemetery in Philadelphia.

Legacy

Wharton's daughter Joanna married noted Philadelphia publisher, J. Bertram Lippincott, in 1887 and named their eldest son Joseph Wharton Lippincott; Anna married Harrison S. Morris, who was associated with the Pennsylvania Academy of the Fine Arts, in 1896; but Mary never married.

In 1908, Wharton created Fisher Park, a 23-acre (93,000 m²) park in the Olney section of Philadelphia. On his deathbed, he donated the land to the City of Philadelphia as a "Christmas gift". After his death, the Wharton family continued to hold gatherings at the family mansion at Batsto, New Jersey, until the 1920s. In 1954, they sold Wharton's vast Pinelands properties in South Jersey to the state of New Jersey, which now form the core of Wharton State Forest.

In 1981, a Joseph Wharton 18-cent commemorative postal stamp was issued to commemorate the 100th anniversary of the founding of the Wharton School.

In 2004, Wharton was inducted into the Junior Achievement U.S. Business Hall of Fame.

The borough of Wharton, New Jersey, originally known as Port Oram, was renamed to honor Joseph Wharton.

Wharton is the great-great-great grandfather of former UCLA and Miami Dolphins quarterback Josh Rosen.

References

• Yates, W. Ross. (1987). Joseph Wharton: Quaker Industrial Pioneer. Bethlehem: Lehigh University Press. ISBN 0-934223-00-9..
• Lippincott, Joanna Wharton. Biographical Memoranda Concerning Joseph Wharton, 1826–1909 by His Daughter Joanna Wharton Lippincott. Philadelphia: J.B. Lippincott, 1909. Printed for private circulation.
• Joseph Wharton Family Papers, 1691–1962, Library of Swarthmore College, Swarthmore, Pennsylvania.
• Richardson, Charles Henry. Description of nickel mining in Economic Geology. McGraw-Hill, 1913.
• Weigley, Russell F. (editor), Nicholas B. Wainwright, and Edwin Wolf, 2nd (associate editors).Philadelphia: A 300 Year History. New York: W.W. Norton, 1982. ISBN 0-393-01610-2.
• Wharton, Joseph. Article on nickel magnets in American Journal of Science, 1877, p 415.
• Wharton, Joseph. Article on zinc manufacture in American Journal of Science, Sept 1871, p 168.
• Wharton, Joseph. "Dust from the Krakatoa Eruption of 1883", pp. 343–345 in Proceedings commemorative of the 150th anniversary of the American Philosophical Society Held at Philadelphia for Promoting Useful Knowledge, May 22–26, 1893, American Philosophical Society, 1894, digitized by Google.
• Wharton, Joseph. Letter to the editor on plans for water supply, Evening Bulletin, June 17, 1891.
• Wharton, Joseph. "On Two Peculiar Products from Nickel Manufacture", pp. 365–368 in American Journal of Science and Arts, Series II, 49:365–368, digitized by Google.
• Wharton, Joseph. "Speculations Upon a Possible Method of Determining the Distance of Certain Variably Colored Stars", American Journal of Science and Arts: Series II, Vol 40:190–192, digitized by Google.
• "Hall of Fame: Joseph Wharton 1826–1909", Engineering & Mining Journal, February, 1998.

External links

• Historic and Architectural Resources of Jamestown, Rhode Island at the Jamestown Philomenian Library
• Bellevue (Wharton Residence) data from the Philadelphia Architects and Buildings (PAB) project of the Athenaeum of Philadelphia
• Plan of Wharton's American Nickel Works in Camden, NJ, Survey #23442345 by Hexamer and Son, Inc. 419 Walnut St, Philadelphia, Pennsylvania, 1890
• Wharton School website
• Swarthmore College website
• Biography at virtualology.com under his great-great-grandfather, Thomas Wharton (1664-1718).
• The Joseph Wharton Family Papers held at Friends Historical Library of Swarthmore College