Albert Russel Erskine
Encyclopedia
Albert Russel Erskine was an American
businessman. Born in Huntsville, Alabama
, he worked in a number of manufacturing industries before joining the Studebaker
motor car manufacturing firm in 1911. He served as Studebaker's president from 1915 until the firm encountered severe financial problems in 1933, when he committed suicide
.
and Rockne
series. He also published a history of the firm, in 1918.
. Working capital had fallen from $26 million in 1926 to $3.5 million in 1932 and the banks were owed $6 million, for which they demanded payment. Studebaker defaulted and went into receivership.
Suffering from heart trouble and diabetes, ousted from his position at Studebaker, himself $350,000 in debt and his Studebaker stock now all but worthless, Erskine committed suicide on June 30 1933 by shooting himself in the heart in his home on the south side of South Bend
. He is interred at the Maple Hill Cemetery
in Huntsville. Hendry added: "According to one account, the insurance companies duly and promptly paid all his debts and provided for his dependants".
, where his son Albert, Jr. studied. The university awarded him an honorary
LL.D. in 1924. He took a strong interest in college football
(a later Studebaker brand, the Rockne
, was named after Notre Dame's football coach of the time), and initiated the Albert Russel Erskine Award for the best team of the year. The winner was chosen by a panel whose methods are, in essence, still used to select the champion team. He was instrumental in a grant of $10,000 that the Studebaker Corporation made to Harvard University
in 1926, to set up the Albert Russel Erskine Bureau for Street Traffic Research, which remained active through much of the 1930s.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman. Born in Huntsville, Alabama
Huntsville, Alabama
Huntsville is a city located primarily in Madison County in the central part of the far northern region of the U.S. state of Alabama. Huntsville is the county seat of Madison County. The city extends west into neighboring Limestone County. Huntsville's population was 180,105 as of the 2010 Census....
, he worked in a number of manufacturing industries before joining the Studebaker
Studebaker
Studebaker Corporation was a United States wagon and automobile manufacturer based in South Bend, Indiana. Founded in 1852 and incorporated in 1868 under the name of the Studebaker Brothers Manufacturing Company, the company was originally a producer of wagons for farmers, miners, and the...
motor car manufacturing firm in 1911. He served as Studebaker's president from 1915 until the firm encountered severe financial problems in 1933, when he committed suicide
Suicide
Suicide is the act of intentionally causing one's own death. Suicide is often committed out of despair or attributed to some underlying mental disorder, such as depression, bipolar disorder, schizophrenia, alcoholism, or drug abuse...
.
Career with Studebaker
During his long term as Studebaker's president, he encouraged the firm towards the production of small, sporty but economical cars on the European model, in particular the ErskineErskine (automobile)
The Erskine was an American automobile brand produced by the Studebaker Corporation of South Bend, Indiana, USA, from 1926 to 1930. The marque was named after Albert Russel Erskine , Studebaker's president at the time....
and Rockne
Rockne
The Rockne was an American automobile brand produced by the Studebaker Corporation of South Bend, Indiana from 1931-1933. The brand was named for University of Notre Dame football coach Knute Rockne....
series. He also published a history of the firm, in 1918.
Downfall and death
His downfall lay in his failure to cut production and costs quickly in response to the slump of 1929 and 1930, which led to an insurmountable cashflow crisis. In 1930, he had declared a dividend of $7,800,000 which was five times the actual net profits of that year. In 1931, he paid a dividend of $3,500,000—also out of capital—a ruinous procedure which he unsuccessfully sought to correct through a merger with White Motor CompanyWhite Motor Company
White Motor Company was an American automobile and truck manufacturer from 1900 until 1980. The company also produced bicycles, roller skates, automatic lathes, and sewing machines. Before World War II, the company was based in Cleveland, Ohio.-History:...
. Working capital had fallen from $26 million in 1926 to $3.5 million in 1932 and the banks were owed $6 million, for which they demanded payment. Studebaker defaulted and went into receivership.
Suffering from heart trouble and diabetes, ousted from his position at Studebaker, himself $350,000 in debt and his Studebaker stock now all but worthless, Erskine committed suicide on June 30 1933 by shooting himself in the heart in his home on the south side of South Bend
South Bend, Indiana
The city of South Bend is the county seat of St. Joseph County, Indiana, United States, on the St. Joseph River near its southernmost bend, from which it derives its name. As of the 2010 Census, the city had a total of 101,168 residents; its Metropolitan Statistical Area had a population of 316,663...
. He is interred at the Maple Hill Cemetery
Maple Hill Cemetery (Huntsville, Alabama)
Maple Hill Cemetery is the oldest and largest cemetery in Huntsville, Alabama. Founded on two acres in about the year 1822, it now encompasses nearly 100 acres and contains over 80,000 burials...
in Huntsville. Hendry added: "According to one account, the insurance companies duly and promptly paid all his debts and provided for his dependants".
University trustee
In addition to his business work, Erskine served on the Board of Trustees of the University of Notre DameUniversity of Notre Dame
The University of Notre Dame du Lac is a Catholic research university located in Notre Dame, an unincorporated community north of the city of South Bend, in St. Joseph County, Indiana, United States...
, where his son Albert, Jr. studied. The university awarded him an honorary
Honorary degree
An honorary degree or a degree honoris causa is an academic degree for which a university has waived the usual requirements, such as matriculation, residence, study, and the passing of examinations...
LL.D. in 1924. He took a strong interest in college football
College football
College football refers to American football played by teams of student athletes fielded by American universities, colleges, and military academies, or Canadian football played by teams of student athletes fielded by Canadian universities...
(a later Studebaker brand, the Rockne
Rockne
The Rockne was an American automobile brand produced by the Studebaker Corporation of South Bend, Indiana from 1931-1933. The brand was named for University of Notre Dame football coach Knute Rockne....
, was named after Notre Dame's football coach of the time), and initiated the Albert Russel Erskine Award for the best team of the year. The winner was chosen by a panel whose methods are, in essence, still used to select the champion team. He was instrumental in a grant of $10,000 that the Studebaker Corporation made to Harvard University
Harvard University
Harvard University is a private Ivy League university located in Cambridge, Massachusetts, United States, established in 1636 by the Massachusetts legislature. Harvard is the oldest institution of higher learning in the United States and the first corporation chartered in the country...
in 1926, to set up the Albert Russel Erskine Bureau for Street Traffic Research, which remained active through much of the 1930s.