Hulbert Harrington Warner - Philanthropy and Failure

Philanthropy and Failure

Having made millions on his second business in patent medicine, Warner embarked on various philanthropic endeavors, most notably his sponsorship of the Warner Observatory in Rochester.

Prior to opening his patent medicine business, Warner had chanced to meet Dr. Lewis Swift, an astronomer, who was ready to leave Rochester for Colorado when Warner convinced him to stay and operate his new observatory. The observatory was completed in 1883 at the then-staggering cost of $100,000 (in current terms, $$2.49 million). It was equipped with a state-of-the-art telescope and was pronounced as being the best-equipped private observatory in the world.

The Observatory was used as a marketing centerpiece by Warner. His almanacs at the time ran essay contents and featured images of the Observatory. Swift used the Observatory to good end, and reportedly discovered six new comets and 900 nebulae.

At one point, Warner offered a reward of $200 for each new comet discovered. This offer was of great help to the young astronomer Edward Emerson Barnard, who claimed eight such awards and used the proceeds to set himself and his new wife up in a newly built house in Nashville, Tennessee.

By the 1920s, the Observatory was no longer functional and was demolished.

Warner also used his money to construct a lavish mansion for himself on East Avenue in Rochester. The house fell into disuse and was later demolished.

Warner's patent-medicine empire reached its pinnacle in the late 1880s and began its gradual decline. Flush with success, Warner spent money on highly speculative investments in mining, all of which failed. In an effort to generate more capital, he took the company public, which did generate some revenue.

He sold the company to an English investment group in 1889, which incorporated it as H. H. Warner & Co., Ltd. Warner bought up 80 percent of the English stock, and took the position of managing director of the company. However, Warner's speculative investments and his waning interest in the business took its toll. When the Panic of 1893 hit, Warner was unable to generate additional capital through stock sales, forcing him into bankruptcy. The American branch of his company was sold to a group of Rochester investors, who continued to operate it as the Warner's Safe Remedies Company.