Francis Cabot Lowell (businessman)

Francis Cabot Lowell (April 7, 1775 - August 10, 1817) (Lowell 1899, pg 59) [Lowell, Delmar. (1899) "The Historic Genealogy of the Lowells of America from 1639 to 1899," Rutland VT: The Tuttle Company. ISBN 9780788415678.] was the American business man for whom the city of Lowell, Massachusetts, United States is named.

He was born in Newburyport, Massachusetts, the son of John Lowell (1743-1802) and Susanna Cabot (1754-1777), and a member of the prominent Boston Lowell family, which included statesman John Lowell, Harvard University president Abbott Lawrence Lowell, civil war general Charles Russell Lowell, astronomer Percival Lowell, and poets Robert Lowell and Amy Lowell.

Lowell attended the Roxbury Latin School in Roxbury, MA and later graduated from Harvard College in 1793, and on November 2 1798 married Hannah Jackson in Boston, Massachusetts, daughter of Jonathan Jackson and Hannah Tracy, with whom he had four children; three sons and one daughter.

On a visit to England in 1810 [ [http://www.pbs.org/wgbh/theymadeamerica/whomade/lowell_hi.html Who Made America] ] [ [http://www.economicadventure.org/decision/lowell.pdf PDF of Economic Decision-Making: Francis Cabot Lowell] ] at age 36, Lowell carefully studied the textile industries of Lancashire. He was not able able to buy drawings or a model of a power loom, however, he memorized the workings of British power looms.

Upon his return to Boston in 1813, he joined his brother-in-law, Patrick Tracy Jackson, and Nathan Appleton and established at Waltham the Boston Manufacturing Company, the first textile mill in America where all operations for converting raw cotton into finished cloth could be performed in one mill building. With Paul Moody he devised an efficient spinning apparatus and a power loom, based on the British models but with technological improvements.

To raise capital for their mills, Lowell and partners pioneered a basic tool of modern corporate finance by selling $1000 shares of stock to the public. This form of shareholder corporation quickly became the method of choice for structuring new American businesses, and endures to this day in the well-known form of public stock offerings.

In 1814, the Boston Manufacturing Company built its first mill beside the Charles River in Waltham, housing an integrated set of technologies that converted raw cotton all the way to finished cloth. This Waltham mill was thus the forerunner of the 19th century American factory. Lowell also pioneered the employment of women, from the age of 15-35 from New England farming families, as textile workers, in what became known as the Lowell system. He paid these "mill girls" lower wages than men, but offered attractive benefits including in well-run company boardinghouses with chaperones, cash wages, and benevolent religious and educational activities.

Although he died early at age 42, only 3 years after building his first mill, Lowell left his Boston Manufacturing Company in superb financial health. In 1821, dividends were paid out at an astounding 27.5% to shareholders. In 1822, Lowell's partners named their new mill town at the Pawtucket Falls on the Merrimack River "Lowell," after their visionary leader. One of his sons, Francis Cabot Lowell Jr., continued to work in his father's footsteps.

References

External Reading

*Robert Sobel "The Entrepreneurs: Explorations Within the American Business Tradition" (Weybright & Talley 1974), chapter 1, "Francis Cabot Lowell: The Patrician as Factory Master" (ISBN 0-679-40064-8).