Bigger Biggest

On Jan. 1, 1927, E. A. Pierce & Co.* was formed as successor to A. A. Hausman-Gwathmey & Co. Rapidly the new firm began an unparalleled career. By Jan. 24 it acquired another house, has been growing ever since. Soon no dispute arose when the phrase "largest wire house" was used in connection with E. A. Pierce & Co. Since last fall its primacy has been strengthened by numerous acquisitions. Of these, purchase of the brokerage business of Merrill, Lynch & Co. was the most important, and the taking over last week of four of the seven offices of Charles D. Robbins & Co. was the latest.

When E. A. Pierce & Co. took over the brokerage business of Merrill, Lynch & Co., the firm acquired, in addition to a wire system, a large retail sales and stock commission organization and entered investment banking on a large scale. It had previously participated in some offerings (Phelps-Dodge, Curtiss Airports, Petroleum Corp.), but never before was a large factor in distributing securities. To some Wall Streeters this recent vigorous expansion has suggested that E. A. Pierce & Co. cash-rich, is taking advantage of bargains. Other observers believe that little cash has been used. They say that E. A. Pierce & Co. has merely paid cash for the actual physical equipment, future payment to be dependent on the successful outcome of the acquired business. As accounts still active are in most cases those of either successful or very rich traders and investors, this way of expanding, if true, is indeed canny. Behind E. A. Pierce & Co.'s growth is Edward A. Pierce, who has been in Wall Street for 30 years. He is a tremendous worker, often sleeps at his office. He is assisted by 27 partners, the largest roster of any New York Stock Exchange member-house. No account of the firm would be complete without mention of one of the most recent partners, Miss Ethel F. Mercereau.

Woman in Wall Street. The most impressive thing about E. A. Pierce & Co. is the inexorable System with which it is governed. Governess of this System is Ethel F. Mercereau, long-respected as Mr. Pierce's secretary. It is she who makes Pierce employes toe an exactly defined mark. Pierce men learn to check in early, stay late. If tardy, they may face a stern Miss Mercereau. Pierce men do not have the privilege of sending or receiving personal telephone calls during working hours. Pierce men may not send letters not approved of by Miss Mercereau. Pierce men know they must not smoke during office hours. Efficient, a hard-worker, stern, Miss Mercereau is rapidly attaining the reputation of Wall Street's bogey-woman.

All this has caused a swarm of Pierce legends in Wall Street. Two samples: Last summer on a very hot day the Pierce men were granted permission to remove their jackets. One unfortunate fellow wore suspenders. A special consultation was held regarding the desirability of his exposing this condition. . . . One employe had to take his invalid wife to the hospital every Tuesday at 2 p.m. He had permission to do this, but was warned to come back always and check out daily with the others "for appearances' sake."

Photographs of Miss Mercereau are not available.

*Not to be confused with Albeit E. Peirce & Co., Chicago investment house.

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