ONLINE EDITION FRIDAY JANUARY 9, 1998  | ||||||
| ||||||
A Walking TourBy Kyle SmithRetailing HistoryIt is interesting that Garden City recently wrestled with the rezoning of the C-4 District as part of its plans for the revitalization of Franklin Avenue. Garden City, in a sense, was born because of retailing. The name Garden City evokes memories of the heyday of retailing here, when its Franklin Avenue was dubbed "the Fifth Avenue of Long Island." Fancy names notwithstanding, the same retailing that formed this Village also gave it some interesting history. A.T. Stewart, the Village's "founding father," so to speak, was one of America's first big retail magnates. This Scotsman was both innovative and creative. (Sounds like qualities we need along Franklin Avenue today.) Stewart created the first big department store, The Marble Palace, in a building constructed in 1820 and which still stands today. Anyone visiting New York City Hall can view the original building directly behind City Hall. (It's located on the corner of Broadway and Reade Street.) The first few floors of the building were devoted to retailing and the upper floors were used for manufacturing, predominately, the garments sold in the shops of the lower floors. The garments manufactured there were the "middle quality" clothes of the time, targeted to the burgeoning middle class that was beginning to blossom throughout New York. Contemporary businesses often strove for "vertical integration" of their various business lines. Stewart's own building was a model of vertical integration. He was also able to attract shoppers by stocking exotic goods imported from Europe and Asia. His innovations such as installing indoor lavatories and elevators for the convenience of the patrons also made his store the "talk of the town." As the population of New York grew and as his business thrived, he moved his flagship store to Astor Place. His business growth continued to mirror New York's, although he began to find rivals, such as Marshall Field, John Wanamaker, the Straus family and Abraham, were rising to challenge him. Stewart was still the most successful through the 1840s and 1850s. As Stewart's fortunes increased, his thoughts turned to real estate and thus the idea of Garden City was formed. What then became of the retailing fortune and why is there no Stewart Department store or any other retailing connection from Stewart' s legacy today? When Stewart died, his wife, Cornelia, continued his real estate effort that resulted in Garden City, but it was a lawyer/judge who then controlled the retailing empire Stewart had built. The Stewart store declined steadily over the decades following Stewart's death. Stewart's rivals were retailing geniuses and the gentleman presiding over Stewart's estate was unable to compete. Market share was steadily lost. As the explosive growth of post-Civil War America continued, Stewart's store was eclipsed and began a never-ending decline. Powerful financiers eventually forced the estate to sell the remaining store in 1896. The Astor Place store was then merged with an adjacent building to become the largest store in the world. That became the flagship for John Wanamaker of Philadelphia who was the prime retailer at that time. The financier who made the merger/sell-out happen was none other than John Morgenthau, one of Wall Street's most powerful forces. In the background, pulling strings, forming another immense trust was the nonpareil financier of all time on Wall Street, J.P. Morgan. In the company of these men, it is no wonder that the keeper of Stewart's estate was overwhelmed. As we watch the rise and decline and (hopefully) phoenix-like rebirth of Franklin Avenue, let us remember that the past is prologue. One of Garden City's major streets is named after the very judge who had presided over the Stewart retailing fortune. Interestingly, it happens to be perpendicular to Stewart Avenue. I wonder if some planner did not have a sense of humor! Can you find the street? Source: Leach, William. (Ed.'s Note: Kyle has shared these photos with our readers in response to the interest in his column on the history of hidden passageways.)
|
