Horace Rackham
| Horace H. Rackham | |
|---|---|
Horace H. Rackham, c. 1902
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| Born |
June 20, 1858 Harrison, Michigan, U.S. |
| Died | June 12, 1933 (aged 74) Detroit, Michigan, U.S. |
| Occupation | Lawyer |
| Spouse(s) | Mary A. Horton |
Horace H. Rackham (June 27, 1858 – June 12, 1933) was one of the original stockholders in the Ford Motor Company and a noted philanthropist.
Rackham was born in Harrison, Michigan. He graduated from high school in Leslie, Michigan in 1878. In 1879, he moved to Detroit, Michigan to work for Berry Brothers. In 1884, he began studying law under the employ of Adolph Sloman, and was admitted to the Bar in 1885. The next year, he married Mary A. Horton of Fenton, Michigan.
In 1894, he partnered with John W. Anderson to open a law firm. The partnership was very successful, counting among their clients Alexander Y. Malcomson, a Detroit coal dealer. In 1903, at Malcomson's advice, Henry Ford hired Rackham and Anderson to draw up papers incorporating the Ford Motor Company. Ford (and Malcomson) also convinced the partners to buy stock in the company. Rackham scraped together $5,000 by borrowing some money and selling some real estate parcels. With great uncertainty, and against the advice of others, (the president of the Michigan Savings Bank infamously told Rackham "The horse is here to stay, but the automobile is only a novelty – a fad,") Rackham bought 50 shares of Ford stock (from a total of 890 shares); Anderson bought another 50. In addition to Ford, Anderson, and Rackham, seven other people were awarded stock in the company, including Malcomson, James J. Couzens (future mayor of Detroit and Michigan Senator) and John Francis Dodge and Horace Elgin Dodge (who later founded the Dodge Brothers Motor Vehicle Company). At the first meeting of stockholders, Rackham was elected chairman.
Ford Motor Company was wildly successful, providing substantial dividends, and in 1913 Rackham quit his law practice. In 1919, Edsel Ford (acting for his father Henry) purchased Rackham's stock for 12.5 million dollars. Rackham's acquired wealth had little effect on his and Mary's lifestyle. Because Rackham was always cautious with his finances and leery of speculative nature of the stock market, the Great Depression had negligible effect on his fortune. Rackham spent the rest of his life as a philanthropist, giving money to children's charities, the University of Michigan, and other causes. At the time of his death, Rackham's wealth was valued at an estimated $16.5 million.
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