THE MERRILL & HOUSTON IRON WORKS
CHAPTER 2
Merrill and Houston, the joint stock successor to the 0. E. Merrill and Co. partnership, was organized on April 1, 1873 by S. T. Merrill, John B. Merrill, 0. E. Merrill, George A. Houston, and C. F. G. Collins. Although based on the recent prosperity of the 0. E. Merrill and Co., which was due primarily to the extraordinary success of George Houston's patented water wheel, the new company, nevertheless, was to have a checkered history. They began with a solid background in industry, high hopes, proven products, and past financial success. However, within six months of their organization, the Panic of 1873 began after the failure of the powerful New York banking firm of Jay Cooke and Company. Despite its severity this depression had only limited effects on Merrill and Houston. Ironically, the next depression, although lesser in extent, helped lead to Merrill and Houston's failure in late November 1883. As a consequence of this failure, creditors brought a court case against Merrill and Houston's President, Sereno T. Merrill, for fraudulently transferring property to his family - out of reach of the creditors of Merrill and Houston. Thus, not only failure, but scandal and ruined reputations were the cumulative result of the decade long history of the company.Page 1