Although successful in most undertakings, George Westinghouse experienced a few setbacks now-and-then. Trusted associates sometimes prove untrustworthy, particularly at a moment of vulnerability. Case in point: The day in March 1891 when Asaph T. Rowand literally stole Union Switch & Signal from George Westinghouse. Fortunately for George, his loyal friends quickly rose to regain control of US&S from Rowand and his confederates.
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If you’ve never heard of Asaph T. (Terry) Rowand, you’re not alone. Little information has been found to-date, but there’s enough to start build a framework for further digging. The name Asaph is biblical, meaning convener or collector.
A. T. Rowand was elected secretary (financial and business affairs manager) of US&S at its first board meeting on May 24, 1881. He served in this capacity until appointing himself president of US&S on March 10, 1891. Rowand held a similar position as secretary with the newly-formed Westinghouse Electric Co. from 1886 until 1891. Rowand may have been associated with the Interlocking Switch & Signal Co., a predecessor to US&S, in the several years of IS&S’ existence prior to 1881.
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Asaph T. Rowand was born 1843 in Allegheny City (now Pittsburgh’s North Side). It appears that Asaph was the first child born to Archibald and Catherine Rowand. His father worked as a bookbinder. His brother Archibald H. Rowand Jr., a prominent attorney and politician in Pittsburgh, was born March 6, 1845. Awarded the Congressional Medal of Honor for his action as a behind-enemy-lines Union spy during the Civil War, Archie Rowand died in 1913 and is buried in Allegheny Cemetery. Another brother, Thomas A. Rowand, an accountant, was prominent in Pittsburgh business affairs.
The name Rowand should not be confused with that of Charles A. Rowan, another long-time business associate of George Westinghouse during the 1880-1914 era.
Rowand brothers in 1912, L-R: Asaph, Archibald, Frank, Thomas.
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Brother Archie Rowand was a long-time resident of Verona. Asaph apparently lived there too, and was active in the affairs of Verona’s St. Thomas’ Episcopal Church in 1874-75. Asaph later moved to Edgewood, mostly likely in 1886 following relocation of US&S operations from Garrison Alley to Swissvale that year. Asaph Rowand is listed as one of the original incorporators of Edgewood Borough.
Asaph Rowand built a substantial 2-story frame house on sloping pasture at what is now 210 Maple Ave. in Edgewood. Although the house has since been heavily remodeled and is now tightly enclosed by neighboring houses, Rowand’s manse still stands as an attractive single family home in this well-maintained neighborhood.
Asaph Rowand’s house, 210 Maple Ave., Edgewood, ca. 1890.
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The Interregnum
Interregnum: The time between kings. In US equity markets, common or capital stock shareholders are given voting rights proportionate to the number of shares they hold. Stockholders typically vote annually for election of directors, issuance of additional stock shares and other matters of corporate governance. The majority of stockholders seldom attend annual meetings. To organize and expedite the voting process, stockholders are usually asked to assign their voting rights to a proxy, who is, more often than not, a trustworthy member of the company’s management. Elected directors are supposed to represent and protect the interests of all stockholders in their role as overseers of management.
During the period from 1881 to 1891, US&S stockholders were advised by the company to authorize either George Westinghouse or Asaph Rowand to vote their shares as proxies. During the Panic of 1891, George Westinghouse had become at least partially insolvent, unable to raise needed working capital (i.e. payroll) and forcing the Westinghouse Electric Company into receivership. US&S had become saddled with debt, slow in growth and only modestly profitable during its first ten years of operation. The technologies of automatic block signaling and power interlocking were still in their infancy before about 1895. Stanley’s laminated core transformer and Shallenberger’s induction disc wattmeter were still a long way from becoming profitable products for The Electric Co.
Exercising his right to vote as a proxy for several Boston-based US&S shareholders who held a majority interest in US&S, Asaph Rowand seized control of US&S during the March 10th, 1891 stockholders meeting. Most of the Boston-based stockholders were formerly associated with William Robinson’s Union Electric Signal Co. George Westinghouse was absent from the meeting, away in New York City tending to other business affairs. Upon hearing of Rowand’s coup, Westinghouse coupled his private car to the first westbound passenger express and raced back to Pittsburgh.
Following election of new directors to replace George Westinghouse, Herman Westinghouse and Robert Pitcairn on the US&S board, Rowand appointed himself president of US&S. The new board was composed of Rowand along with George P. Shane, Henry C. Terry and Owen B. Jenkins of Philadelphia, and Edwin F. Waters, W. Scott Fitz and Sigourney Butler of Boston. Butler, a minor league politician from Boston, was also appointed vice president and general manager of US&S, replacing Edward H. Goodman.
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George W and friends wasted no time in launching a counterattack against Rowand and his new directors. Assembling a minimum quorum of five directors in Philadelphia on March 14, 1891, the US&S board voted to oust Rowand, Butler and Jenkins. In deference to the mutinous ‘eastern’ shareholders who still held a majority of US&S shares, Edward Goodman was appointed president and Rowand given a do-nothing vice president’s job. Butler and Jenkins were dismissed as directors and officers of the company.
The events of March 1891 forced Westinghouse to distance himself financially from US&S. Several important transactions, including sale of the Garrison Alley plant, exchange of Westinghouse’s signaling-related patent rights and transfer of friction draft gear development work to WAB occurred during the 1891-1892 period. Most importantly, George Westinghouse was forced to separate his personal finances from those of WAB, WEC, US&S, etc. As George W’s personal financial advisor, Walter Uptegraff apparently played a key role in straightening-out GW’s accounts during the early 1890’s.
An article in the Chicago Tribune suggests that the plot to overthrow George W was hatched within the walls of the Duquesne Club. There was little time for celebration in the days after March 10th; Quoting the Electrical Review of March 21, 1891:
“It was reported that when Rowand was informed of this action of the board, he fell unconscious to the floor of the Duquesne Club and was later removed to his home, where he lay in critical condition, said to be the result of a stroke of apoplexy.”
Apoplexy: The adjective form apoplectic, apoplexy means furious, enraged, or upset to the point of being unable to deal with a situation rationally or diplomatically (most Has-Beens know the feeling). Rowand survived, living another 36 years following his ‘stroke of apoplexy‘ in March 1891.
What was Rowand’s motivation for seizing control of US&S? Most likely, Rowand and the Boston shareholders felt that a wandering and inattentive George W. could have done more to advance the technology, grow the business, pay dividends, reduce debt, etc. They figured George Westinghouse was a bankrupt Has-Been who would be of little or no use going forward. In short, they sought to run US&S more like a business than a part-time hobby. The same sentiment was echoed 24 years later by Col. Prout in 1915 when he complained under oath on the witness stand that Walter Uptegraff ‘…had more ambitious schemes…’ and ‘He [Uptegraff] wanted to get hold of the affairs of the company and build up a greater organization than I had.’
Although forces loyal to Westinghouse regained control of US&S during the March 14, 1891 board meeting, he still faced opposition from several board members. Dissident Boston shareholders circulated letters criticizing Westinghouse and asking for proxies prior to the March 1892 shareholders meeting. Westinghouse held a firm majority of proxy votes, however.
Re-elected as US&S president in 1892, Westinghouse remained a titular president until his death in March 1914. Day-to-day operational control was, as always, delegated to VP/GM Goodman, who remained in this position until his retirement in 1903. Goodman was succeeded by Col. Henry G. Prout, another interesting and colorful Has-Been.
At some point following the events of 1891-92, Alexander J. Cassatt acquired a controlling interest in US&S. At the time of his death in 1906, Cassatt held 35,000 shares of US&S stock, some 70% of the outstanding capital stock. And Cassatt just happened to be president of the Pennsylvania Railroad, one of US&S’ key patrons.
Rowand resigned as vice president of US&S on May 11, 1891. “Since his disagreement with Mr. Westinghouse he has been unfortunate, and now he is selling off his stocks and property at a sacrifice, preparatory to withdrawing from the financial world altogether.” Add this anecdote to the previous “stroke of apoplexy” story and it might appear that hapless Rowand became the target of a smear campaign by businessmen and press loyal to Westinghouse. Business is business…
Asaph Rowand is listed as a part-time student of Washington & Jefferson College in 1892. In 1911 he donated books to the Carnegie Institute Library. His other business interests are unknown, however he is listed as an assignee to US patent 373018, a gas-fired blast furnace, and US patent 432949, an electric arc lamp.
Asaph T. Rowand died in 1927 and is buried in Allegheny Cemetery, section 3, lot 58, along with wife Ellie 1844-1895 and several other members of the Rowand-Newkirk family.
The modest grave of Asaph T. Rowand.
Future research
Does the ‘Terry’ in Asaph Terry Rowand signify any connection to attorney Charles A. Terry? Terry was a Westinghouse confidant and one of three co-executors of the estates of George and Marguerite Westinghouse. (There is no obvious connection between Rowand and Terry: Terry’s 1939 obit.)
Where did Asaph T. live and what was he doing with himself during the 36 years from May 1891 until 1927?
A 1910 listing: “Rowand, Asaph Terry, 6014 Center Aye., Pittsburg, Pa.; electrical engineer.”
Asaph T. Rowand was jailed in Pittsburgh for bad debts in 1877 (Pgh. Legal Journal, March 30, 1881).
Last word
Rowand did not invent the practice of overthrowing company management by secretly acquiring a majority of proxy voting rights. This stunt had been repeated countless times before and since 1891. Things would have been different if George W played a more active role in the management of US&S.
The short-lived ouster of George Westinghouse from US&S in 1891 was a presage of things to come: On July 30, 1910, George W. was dismissed as president and permanently separated from the affairs of his Westinghouse Electric & Manufacturing Co. WEMCO had been in receivership (bankruptcy) since 1907. Contemporaneous accounts indicate that GW’s spirit and health were broken after he was turfed in 1910 by a cabal of New York bankers.
