Alexander Turney Stewart: Biography, Success Story, Entrepreneur 

Alexander Turney Stewart’s biography unfolds as a classic American success story, charting his rise from a humble beginning in Lisburn, Ireland, in 1803, to becoming one of the most influential and wealthy merchants in New York City. His entrepreneurial spirit led him to New York in 1823, where he opened his first store and began building what would become a retail empire. Stewart’s innovative approach to business transformed the retail industry and established him as a key figure in the commercial development of the United States.

Early Life

Alexander Turney Stewart, born to Scottish Protestant parents on October 12, 1803, in Lisburn, Ireland, faced early adversity. Just three weeks after his birth, his father, a farmer, passed away from tuberculosis. By the time Stewart was two, his mother had remarried and moved to America, leaving him in the care of his grandfather, John Torney.

Raised with the expectation of joining the Church of Ireland as a minister, Stewart’s education began at a village school and progressed to Mr. Neely’s English Academy in 1814. His formative years took a turn when his grandfather died in 1816, and he went to live with Thomas Lamb, an Irish Quaker. It was under Lamb’s guardianship that Stewart was encouraged to explore a career outside the clergy.

After finishing his studies at the Belfast Academical Institution, a teenage Stewart felt the pull of New York City, where his mother lived. Despite wanting to join her, Thomas Lamb persuaded him first to gain practical business experience. Reluctantly, Stewart worked as a grocer in Belfast, saving up $500. By the spring of 1818, eager for new opportunities, he set sail for New York, arriving after a challenging six-week voyage.

A New Chapter in New York

In New York, Stewart’s career began modestly as he took up a position as a tutor at Isaac N. Bragg’s Academy, earning $300 a year. This role introduced him to the city’s affluent society and led to his involvement with an Episcopal church overseen by Reverend Edward Mitchell. Here, Stewart met Cornelia Mitchell Clinch, the daughter of a wealthy ship chandler. Their connection not only marked the start of a profound personal relationship but also linked Stewart to influential circles, including Cornelia’s brother, Charles P. Clinch, a significant figure in New York’s maritime industry.

Alexander Turney Stewart’s journey from a young boy in Ireland to a key player in New York’s social and business scenes sets the stage for his remarkable rise in commerce. His early experiences, marked by personal loss and practical education, laid a strong foundation for his later successes.

Establishing A.T. Stewart & Co.

Little is known about Alexander Turney Stewart’s life between 1818 and 1822, after which he returned to Ireland to claim an inheritance from his late grandfather. The inheritance, which included property, houses, land, stock, crops, and chattels, valued between $5,000 and $10,000, came with the stipulation that he pay his grandmother, Martha Stewart, an annuity of three guineas per year for the rest of her life.

In 1823, Stewart relocated permanently to New York City, armed with the funds from his inheritance and previous earnings. That same year, on October 16, he married Cornelia Clinch and opened his first store at 283 Broadway. This shop, specializing in Irish fabrics and domestic calicos, marked the beginning of what would become a retail empire.

The store officially opened across from City Hall Park on September 1, 1823. Despite its modest size—12.5 feet wide by 30 feet deep—the store was typical for its time. The more extensive front section was dedicated to business, while the smaller back area served as Stewart’s residence.

Unlike his competitors, who mostly gathered along Pearl Street, Stewart chose Broadway for its accessibility, believing customers would seek the best prices regardless of location. He famously stated that a store’s success depended not on its location but on its ability to attract and undersell competitors. Stewart also pioneered unique marketing strategies, placing merchandise outside the store as an advertisement, creating a buzz that attracted more customers.

You must never actually cheat the customer, even if you can. You must make her happy and satisfied, so she will come back.

Alexander Turney Stewart

The Birth of the “Marble Palace

Between 1846 and 1848, Stewart constructed the “Marble Palace” at 280 Broadway, directly across from his first store. This new venture, featuring an Italianate design with Tuckahoe marble and pedimented windows, was the first commercial building in the U.S. to boast such extravagant architecture. The building showcased European women’s clothing and introduced fashion shows, allowing women to see outfits from multiple angles with the help of full-length mirrors.

This store became known as one of the first proper department stores and was a financial triumph. By 1855, Stewart’s fortune was estimated at $2.25 million. He expanded his range to include luxury items like furs, moving into the upscale shopping district known as “Ladies’ Mile.”

In 1862, Stewart expanded further, constructing the “Iron Palace,” a massive department store that spanned a city block near Grace Church. This building featured a cast-iron front and a glass dome skylight, housing up to 2,000 employees and expanding to thirty departments by 1877.

After Stewart’s passing, Hilton, Hughes & Co. took over the Iron Palace in 1882 and Wanamaker’s department store in 1896. Sadly, the iconic building burned down in 1956, but its influence on retail and department store culture remains a significant part of New York City’s commercial history. Alexander Turney Stewart’s vision and innovative approach to retail set the standards for future generations, making him a foundational figure in American business.

The Pioneer of Mail Order

A. T. Stewart’s innovative approach to retail extended beyond his physical store, tapping into the mail-order business that connected his merchandise with women across the country.

Starting in 1868, Stewart received numerous letters from women living in rural America, expressing their desire to purchase items from his extensive wholesale inventory. Recognizing an opportunity, Stewart responded diligently to these requests by mailing the desired products and even covering the postage costs himself. This service allowed customers to receive their goods before sending payment, demonstrating Stewart’s commitment to customer service and trust.

By 1876, the success of this service led Stewart to expand his operations, employing twenty clerks dedicated solely to managing mail order requests. This team ensured that each letter was read, each order was fulfilled promptly, and all shipments were sent efficiently. This system proved highly successful, earning Stewart over $500,000 in profits from the mail-order business alone that year.

Stewart’s mail-order business’s effectiveness, convenience, and profitability garnered nationwide attention. His pioneering efforts in this area set a benchmark that would inspire other major businesses of the time, such as Sears, Montgomery Ward, and Spiegel’s, to adopt similar models. Stewart’s foresight in utilizing mail-order services revolutionized how products were sold and distributed across the United States and paved the way for future retail and customer service innovations.

Unfulfilled Cabinet Appointment

In March 1869, President Ulysses S. Grant considered Alexander Turney Stewart for the role of Secretary of the Treasury, a position left open after Joseph Seligman declined the offer. Stewart, a prominent importer and entrepreneur, initially accepted the nomination, eager to bring his financial acumen to the federal government.

However, Stewart’s confirmation faced immediate hurdles. A longstanding law from 1789, which founded the Treasury Department, explicitly barred importers from leading the Department. This provision aimed to prevent conflicts of interest, given the Treasury’s significant role in regulating commerce and tariffs.

Despite these challenges, President Grant sought to clear the path for Stewart by requesting Congress to amend the law. Unfortunately, his efforts were stymied in the Senate, notably by Charles Sumner, who strongly objected to the motion. The resistance in the Senate was not just procedural but also political. Key figures within the Republican Party harbored resentment towards Stewart for his political stances—specifically, his support for former President Andrew Johnson and his opposition to high protective tariffs, which were central to the GOP’s industrial strategy.

Ultimately, Stewart’s nomination was not put to a vote in the Senate, leaving him to continue his career in the private sector.

The Grand Fifth Avenue Mansion

In the late 1860s, specifically between 1869 and 1870, A. T. Stewart set a precedent for New York City’s elite by constructing the first of the grand Fifth Avenue palaces. His mansion was strategically positioned on the northwest corner of 34th Street and Fifth Avenue, directly across from Caroline Schermerhorn Astor, a prominent figure in New York society.

Stewart’s choice of John Kellum, who also designed his retail stores, ensured that the mansion would be both visually stunning and structurally advanced for its time. Unlike the typical brownstone rowhouses that dominated Fifth Avenue, Stewart’s residence was a pioneering fireproof structure showcasing the opulent French Second Empire style and adorned with a marble facade.

The mansion featured three main floors and an attic tucked under a mansard roof, a popular architectural detail of the period. Adding to its uniqueness was a mezzanine floor set at cornice height, utilized primarily for storage. The building was distinctly separated from the bustling sidewalks by a moat-like light well that provided natural light to the service areas located in the basement. The mansion’s interior was equally impressive. The main parlor extended the entire length of the Fifth Avenue side, offering expansive views and lavish decor typical of Stewart’s taste and status.

You must be wise, but not too wise. – A. T. Stewart Share on X

Following Stewart’s widow’s death in 1886, the mansion served new purposes over time. It was rented out as the premises for the Manhattan Club, becoming a hub for New York’s social activities. In 1891, the mansion was immortalized in a painting by the renowned artist Childe Hassam.

However, by 1901, the city’s changing needs led to the razing of this architectural gem to make room for the new premises of the Knickerbocker Trust Company, marking the end of an era for one of Fifth Avenue’s first palaces. This mansion exemplified Stewart’s vision and wealth and set a new luxury and architectural grandeur standard in New York City.

The Central Railroad of Long Island

Alexander Turney Stewart founded the Central Railroad of Long Island in 1871 in a bold move to expand his business interests and influence. His vision came to fruition in 1873 when the railroad officially started operations, connecting Long Island City with the thriving area of Garden City—a development initiated by Stewart. The line extended further to service a brickyard in (Old) Bethpage and reached docks at Babylon, establishing critical infrastructural links supporting industrial and residential growth on Long Island.

Stewart’s railroad venture was short-lived under his brand, as just three years later, in 1876, it was integrated into the broader Long Island Rail Road system. This integration helped streamline transportation services across Long Island, enhancing the connectivity of the regions it served. Today, remnants of Stewart’s railway legacy remain part of the Hempstead Branch and Central Branch of the Long Island Rail Road, serving countless commuters and contributing to the region’s transportation infrastructure.

Initially served by the railroad, the brickyard at Bethpage became a longstanding industrial entity in the area. Known first as Bethpage Brickworks and later as Queens County Brick Manufacturing Company, the site reflected the industrial growth of the late 19th and early 20th centuries. After Nassau County was formed from Queens County in 1899, the operation was renamed Nassau Brick Company, continuing its production until 1981.

Death and Legacy

Alexander Turney Stewart, who passed away in 1876, was a pioneer in retail and a generous employer. Before his death, he established his manufacturing facilities in New York and New England, producing woolen fabrics and employing thousands. Although never a New York State officer, he participated in significant events like Abraham Lincoln’s funeral as a Chamber of Commerce delegate.

Stewart’s commitment to his employees extended to creating Garden City on Long Island, a community designed to offer affordable, comfortable living for his workers. After his death, his widow, Cornelia, honored his memory by building significant structures like St. Paul’s School and The Cathedral of the Incarnation in Garden City, which also houses their mausoleum.

At the time of his death, Stewart was one of New York’s wealthiest men, with a fortune valued at around $50 million, primarily earned through retail rather than real estate. He showed gratitude towards his dedicated employees by leaving more than $250,000 in his will to the six clerks who had been with him since 1836.

Stewart’s posthumous years were marked by drama; his body was stolen from its tomb in 1878 and held for ransom. Although the ransom was paid, the returned remains were never conclusively verified as his. This incident led to legends of security devices in his mausoleum designed to alert if disturbed.

After his death, Stewart’s vast fortune was the subject of lengthy legal battles. His wife managed his assets until she died in 1886, facing numerous legal challenges, especially after a controversial transfer of his business before his death. The company, later managed under E. J. Denning & Co. saw protracted litigation.

Stewart’s legacy continued as his iconic Iron Palace was purchased by John Wanamaker in 1896 and reopened as “Wanamaker’s.” His Marble Palace was bought by the New York Sun newspaper in 1917 and was designated a landmark in New York City in 1966. Despite his contributions, Stewart’s life and legacy were not without controversy, highlighted by an 1890 criminal libel case posthumously indicting him for alleged misdeeds. This complex figure was indelible on New York’s commercial and social fabric.

Controversial Legacy

Long after his death, Alexander Turney Stewart’s reputation became the subject of legal drama. On May 1, 1890, the New York Times published a notice stating that Joseph Pulitzer, Julius Chambers, and others were indicted for posthumous criminal libel against Stewart. This action stemmed from a series of articles from April 14 to 19 in the New York World, which portrayed Stewart scandalously. The articles accused him of engaging in “a dark and secret crime,” allegedly hosting gatherings where he introduced his guests to his mistresses, and described him as “a pirate of the dry goods ocean.” These sensational claims highlighted the enduring and controversial legacy of one of New York’s most notable businessmen.

Alexander Turney Stewart’s Timeline

• 1803: Born on October 12, in Lisburn, Ireland.
• 1823: Emigrated to New York City; later that year, he opened his first store at 283 Broadway.
• 1846-1848: Constructed the “Marble Palace” at 280 Broadway, pioneering the department store concept.
• 1862: Opened his larger retail emporium, the “Iron Palace,” which occupied a full city block.
• 1869: Was offered the position of Secretary of the Treasury by President Ulysses S. Grant but was not confirmed due to being an importer.
• 1871: Incorporated the Central Railroad of Long Island.
• 1873: Completed the Central Railroad of Long Island.
• 1876: Died on April 10.
• 1878: Stewart’s body was stolen from its tomb and held for ransom.
• 1886: Stewart’s widow, Cornelia, died, having spent years building structures in his memory, including The Cathedral of the Incarnation in Garden City.
• 1890: Stewart was posthumously accused of various misdeeds in a series of articles, leading to a criminal libel case.

Final Reflections

Alexander Turney Stewart’s biography clearly illustrates his enduring impact on American commerce and urban development. Despite his death in 1876, his legacy continued through his pioneering contributions to the retail industry and his development projects like Garden City. Stewart’s life is a success story marked by monumental achievements and profound influences, making him a towering figure in American business and culture history.

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