Horace Rackham
Encyclopedia
Horace H. Rackham was one of the original stockholders in the Ford Motor Company
and a noted philanthropist
.
. 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.
by donating his law library, sponsoring anthropological expeditions, and underwriting creative arts fellowships. Most significantly, when he died in 1933, Rackham left $100,000 in his will expressly to support graduate student loans. The Horace H. Rackham School of Graduate Studies at the university is named after him, as is the Rackham Building, built in 1938, in which the school is housed. In addition, the Horace H. Rackham Educational Memorial Building
in Detroit, intended for use by the Extension Service of the University of Michigan and the Engineering Society of Detroit
, was built in 1940 using money willed to the University. The Rackhams were also the patrons of the 1938 Rackham School of Special Education on the Eastern Michigan University
campus in Ypsilanti, Michigan
.
After the death of Mary Rackham in 1947, the Horace H. and Mary A. Rackham Fund was created. The fund was to be used expressly "for such benevolent, charitable, educational, scientific, religious and public purposes ... will promote the health, welfare, happiness, education, training and development of men, women and children, particularly the sick, aged, young, erring, poor, crippled, helpless, handicapped, unfortunate and underprivileged, regardless of race, color religion or station."
near land owned by the Detroit Zoological Society
. Through his friend and Detroit mayor James Couzens
, Rackham anonymously promised to donate the land to Detroit if voters would approve financing for the Detroit Zoo
. A millage was approved, and Rackham followed through by giving 22 acres (8.9 ha) of his purchase to the Zoo for use as a parking lot; a memorial fountain at the zoo bears his name. The remaining acreage was given to the city of Detroit, explicitly for use as a public golf course. In 1925 the Rackham Golf Course, reportedly the first 18-hole course constructed in Michigan, opened to the public
Ford Motor Company
Ford Motor Company is an American multinational automaker based in Dearborn, Michigan, a suburb of Detroit. The automaker was founded by Henry Ford and incorporated on June 16, 1903. In addition to the Ford and Lincoln brands, Ford also owns a small stake in Mazda in Japan and Aston Martin in the UK...
and a noted philanthropist
Philanthropist
A philanthropist is someone who engages in philanthropy; that is, someone who donates his or her time, money, and/or reputation to charitable causes...
.
Early Life and Ford
Rackham was born in Harrison, MichiganHarrison, Michigan
Harrison is a city in the U.S. state of Michigan. As of the 2000 census, the city population was 2,108. It is the county seat of Clare County.The city is named after U.S. President William Henry Harrison....
. He graduated from high school in Leslie, Michigan
Leslie, Michigan
Leslie is a city in Ingham County in the U.S. state of Michigan. The population was 1,851 at the 2010 census. The city is surrounded by Leslie Township, but is politically autonomous.-Geography:...
in 1878. In 1879, he moved to Detroit, Michigan
Detroit, Michigan
Detroit is the major city among the primary cultural, financial, and transportation centers in the Metro Detroit area, a region of 5.2 million people. As the seat of Wayne County, the city of Detroit is the largest city in the U.S. state of Michigan and serves as a major port on the Detroit River...
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
Fenton, Michigan
Fenton is a city in the U.S. state of Michigan that lies mostly in Genesee County. As of the 2010 census, the city population was 11,756. The city was incorporated from Fenton Township in Genesee County, and the city and township are administratively autonomous.-History:In the 1970s, the city...
.
In 1894, he partnered with John W. Anderson
John W. Anderson
Commodore John W. Anderson was the longest serving captain of the , the fastest ocean liner in history. In 1952, he relieved Commodore Harry Manning as master of the superliner after the recordbreaking voyage on which she broke the translantic speed record previously held by the RMS Queen Mary and...
to open a law firm. The partnership was very successful, counting among their clients Alexander Y. Malcomson
Alexander Y. Malcomson
Alexander Y. Malcomson was a coal dealer from Detroit, Michigan who bankrolled Henry Ford's first successful foray into automobile manufacturing: the Ford Motor Company.- Early life :...
, a Detroit coal dealer. In 1903, at Malcomson's advice, Henry Ford
Henry Ford
Henry Ford was an American industrialist, the founder of the Ford Motor Company, and sponsor of the development of the assembly line technique of mass production. His introduction of the Model T automobile revolutionized transportation and American industry...
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
James J. Couzens
James J. Couzens was a U.S. Senator from the state of Michigan, the Mayor of Detroit, an industrialist, and philanthropist.-Early life and career:...
(future mayor of Detroit and Michigan Senator) and John Francis Dodge
John Francis Dodge
John Francis Dodge was an American automobile manufacturing pioneer and co-founder of Dodge Brothers Company.-Biography:...
and Horace Elgin Dodge
Horace Elgin Dodge
Horace Elgin Dodge, Sr. was an American automobile manufacturing pioneer and co-founder of Dodge Brothers Company.-Early years and business:...
(who later founded the Dodge Brothers Motor Vehicle Company
Dodge
Dodge is a United States-based brand of automobiles, minivans, and sport utility vehicles, manufactured and marketed by Chrysler Group LLC in more than 60 different countries and territories worldwide....
). 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
Edsel Ford
Edsel Bryant Ford , son of Henry Ford, was born in Detroit, Michigan, USA. He was president of Ford Motor Company from 1919 until his death in 1943.-Life and career:...
(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
University of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
, and other causes. At the time of his death, Rackham's wealth was valued at an estimated $16.5 million.
Philanthropy
Horace Rackham and his wife Mary supported the University of MichiganUniversity of Michigan
The University of Michigan is a public research university located in Ann Arbor, Michigan in the United States. It is the state's oldest university and the flagship campus of the University of Michigan...
by donating his law library, sponsoring anthropological expeditions, and underwriting creative arts fellowships. Most significantly, when he died in 1933, Rackham left $100,000 in his will expressly to support graduate student loans. The Horace H. Rackham School of Graduate Studies at the university is named after him, as is the Rackham Building, built in 1938, in which the school is housed. In addition, the Horace H. Rackham Educational Memorial Building
Cultural Center Historic District
The Cultural Center Historic District is a historic district located in Midtown Detroit, Michigan, which includes the Art Center : the Detroit Public Library, the Detroit Institute of Arts, and the Horace H. Rackham Education Memorial Building were listed on the National Register of Historic Places...
in Detroit, intended for use by the Extension Service of the University of Michigan and the Engineering Society of Detroit
Engineering Society of Detroit
The Engineering Society of Detroit is a regional engineering association, headquartered in Southfield, Michigan, serving engineers and related technical professionals in Southeast Michigan...
, was built in 1940 using money willed to the University. The Rackhams were also the patrons of the 1938 Rackham School of Special Education on the Eastern Michigan University
Eastern Michigan University
Eastern Michigan University is a comprehensive, co-educational public university located in Ypsilanti, Michigan. Ypsilanti is west of Detroit and eight miles east of Ann Arbor. The university was founded in 1849 as Michigan State Normal School...
campus in Ypsilanti, Michigan
Ypsilanti, Michigan
Ypsilanti is a city in Washtenaw County in the U.S. state of Michigan. As of the 2000 census, the city population was 22,362. The city is bounded to the north by the Charter Township of Superior and on the west, south, and east by the Charter Township of Ypsilanti...
.
Detroit Zoo
From 1924 to 1928, Rackham was the first president of the Detroit Zoological Commission, which negotiated with the city for support for the zoo. In 1924, Rackham purchased acres of land in what is now Huntington Woods, MichiganHuntington Woods, Michigan
Huntington Woods is a city in southern Oakland County in the U.S. state of Michigan. The population was 6,238 at the 2010 census. Huntington Woods is an inner suburb of Detroit and is bounded by Ten Mile and Eleven Mile Roads to the north and south, and by Coolidge Highway and Woodward Avenue to...
near land owned by the Detroit Zoological Society
Detroit Zoo
The Detroit Zoological Park, commonly known as the Detroit Zoo, is located about north of the Detroit city limits at the intersection of Woodward Avenue, 10 Mile Road, and Interstate 696 in Royal Oak and Huntington Woods, Michigan, USA...
. Through his friend and Detroit mayor James Couzens
James J. Couzens
James J. Couzens was a U.S. Senator from the state of Michigan, the Mayor of Detroit, an industrialist, and philanthropist.-Early life and career:...
, Rackham anonymously promised to donate the land to Detroit if voters would approve financing for the Detroit Zoo
Detroit Zoo
The Detroit Zoological Park, commonly known as the Detroit Zoo, is located about north of the Detroit city limits at the intersection of Woodward Avenue, 10 Mile Road, and Interstate 696 in Royal Oak and Huntington Woods, Michigan, USA...
. A millage was approved, and Rackham followed through by giving 22 acres (8.9 ha) of his purchase to the Zoo for use as a parking lot; a memorial fountain at the zoo bears his name. The remaining acreage was given to the city of Detroit, explicitly for use as a public golf course. In 1925 the Rackham Golf Course, reportedly the first 18-hole course constructed in Michigan, opened to the public