Establishing Savage Manufacturing Company

Given the financial turmoil of the Williams brothers, their insolvency, and the indictment against George, perhaps their fellow merchants and privateers Michael McBlair and John Smith Hollins were better suited to be the ones who incorporated the Savage Manufacturing Company in 1821 on the behalf of the Williams brothers. The company objectives were the “manufacturing and vending of cotton goods, and the carrying on of any other branches of manufacture in their discretion”. (see 1821 Charter)

But why did they choose a cotton manufacturing business? They were already familiar with buying and selling cotton and textiles as part of their merchant businesses so maybe they just figured it would be a good business venture for them even though they didn’t have any experience being cotton manufacturers.  One thing they didn’t do, was to compete with the local cotton duck manufacturers making sailcloth and kept their business to mostly sheeting and shirting. (see the many ads and price listings).

Michael McBlair was heavily involved with the start of the company as seen by several letters written between him and either Amos or George in 1822, but it wasn't an easy relationship.  In December 1822, both George and Amos encouraged McBlair to retire from the Savage Manufacturing Company if it suited his "interests and happiness", which apparently he did, since McBlair was already associated with other factory ventures in Baltimore County in 1823.

Financing Savage Manufacturing Company

The Williams brothers started over with few financial resources when they started the Company and began building immediately.  The insolvency hit them hard, so where did they get the capital to begin building the company?  And once they got the funding, how would they create the business?  The funding came from George Williams wife, their three minor children, Amos William’s daughter who turned 18 on July 7, 1822, and the only brother not swept up in the banking scandal, Nathaniel Williams.  Their names were listed as the majority stockholders of the Savage Manufacturing Company when they mortgaged the company to John Savage in March of 1823 for a $20,000 loan for the purchase of land:  

•  Elizabeth B. Williams - George Williams’ wife who was represented by a trustee, John Hawkins (who was represented by George).

• Virginia B. Williams - George Williams' minor daughter in which he was trustee and guardian.

• George Williams Jr - George Williams' minor son in which he was trustee and guardian.

• Mary Williams - George Williams' minor daughter in which he was trustee and guardian.

• Nancy Williams  - Amos Williams daughter who  just turned 18 and could spend the money on her own.

• Nathaniel Williams -  already had money from his previous jobs.  

One explanation is that these family members had already been given funds for their future by George and Amos so they survived the bankruptcy and financial scandal of George and Amos.  This source of this capital, about $100,000, was from the time of the banking scandal through legal shelters. Another explanation is that they received funds that benefited from the financial scandal and used them to start the Savage Manufacturing Company once Michael McBlair was no longer involved. 

What a way to start a business, but it probably wasn’t atypical in those days of nascent financial regulations.