Royal Securities Corporation
Encyclopedia
Royal Securities Corporation Limited was a Canadian
stock broker
age firm founded in Halifax, Nova Scotia
in early 1903 by John F. Stairs
, its first president. The company was the first brokerage firm to be opened east of Montreal, Quebec, the then financial center of Canada
.
A prominent and influential businessman, John F. Stairs was also a former politician who had been elected to the Nova Scotia House of Assembly
and the Canadian House of Commons
. He was involved with many companies owned by his family and others, including the Union Bank of Halifax
. He had hired an inexperienced 23-year-old New Brunswick
native named Max Aitken
who immediately demonstrated an ingenious understanding of the world of commerce. Stairs made Aitken his personal assistant and on its formation, appointed him as Royal Securities' secretary and general manager. In its formative years, Royal Securities put together financing packages for Nova Scotia industries and raised the capital for several British West Indies
public utility
companies including ones where Stairs and his family were significant investors.
In 1904, Royal Securities hired Izaak Walton Killam
, a bright young employee working for the Stairs' family's Union Bank of Halifax. John F. Stairs died unexpectedly at the end of September 1904 while on a business trip to Toronto. His brother, George Stairs (1856-1908) took over as president but poor heath saw Max Aitken, already a minority shareholder, acquire control of Royal Securities. Aitken soon hired and trained Arthur Nesbitt
, a young dry goods
salesman from Saint John, New Brunswick
. Because Montreal, Quebec was the financial center of Canada, in 1906 Aitken would send Arthur Nesbitt to open the Montreal branch of Royal Securities. For years, the company was closely affiliated through a controlling equity position in Montreal Engineering Company, Ltd., an international engineering firm founded by Max Aitken and associates in 1907 and today part of the British conglomerate, AMEC
. Eventually, MIT
-trained Denis Stairs
, the son of George Stairs, would serve as a director of Royal Securities and chairman of Montreal Engineering.
The very capable Arthur Nesbitt helped build Royal Securities into an important member of the burgeoning investment banking community. Among his accomplishments, he was responsible for a 1910 bond
issue by the Price Brothers Co.
that at the time represented the largest public financing of a Canadian newsprint
company. However, in 1912 Arthur Nesbitt left Max Aitken's employ to form the Nesbitt, Thomson and Company
stockbrokerage partnership. Aitken then appointed the Nova Scotia-born employee at his London
office, Izaak Walton Killam
, as the new President of Royal Securities and, firmly ensconced in England, in 1919 sold the Canadian company to Killam. In November 1920, Royal Securities acquired the seven storey office building at 244 St. James Street from the London & Lancashire Life Assurance Company who had built it 1898 as their Canadian head office. Royal Securities owned the building until May 1965.
Under Izaak Walton Killiam's guidance, Royal Securities continued to prosper, becoming one of the largest and most respected brokerage houses in Canada with a significant presence in every province. The company was a leader in the underwriting and distribution of share issues for the rapidly growing domestic pulp and paper
business that grew hand-in-hand with the development of the electric power industry
. Royal Securities was also a major underwriter and agent for numerous government bond issues. Operating from its headquarters on Montreal's famous St. James Street, Royal Securities became a publicly traded
company, listed on the Montreal, Canadian and Toronto Stock Exchange
s. In the early 1950s, Killam retired from active business due to failing health and before his death in 1955 made generous arrangements to allow the sale of Royal Securities to his close business associates. In 1969, the company was sold to Merrill Lynch
and would become Merrill Lynch, Royal Securities Limited. Eventually, the Royal Securities named vanished and the company operated as Merrill Lynch Canada Ltd. who over time would sell off their Canadian retail brokerage business to the Canadian Imperial Bank of Commerce
.
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
stock broker
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
age firm founded in Halifax, Nova Scotia
City of Halifax
Halifax is a city in Canada, which was the capital of the province of Nova Scotia and shire town of Halifax County. It was the largest city in Atlantic Canada until it was amalgamated into Halifax Regional Municipality in 1996...
in early 1903 by John F. Stairs
John Fitzwilliam Stairs
John Fitzwilliam Stairs, also known as John Fitz William Stairs was an entrepreneur and statesman, born in Halifax, Nova Scotia, Canada, a member of the prominent Stairs family of merchants and shippers founded by William Machin Stairs that included the Victorian era explorer, William Grant...
, its first president. The company was the first brokerage firm to be opened east of Montreal, Quebec, the then financial center of Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
.
A prominent and influential businessman, John F. Stairs was also a former politician who had been elected to the Nova Scotia House of Assembly
Nova Scotia House of Assembly
The Nova Scotia Legislature, consisting of Her Majesty The Queen represented by the Lieutenant Governor and the House of Assembly, is the legislative branch of the provincial government of Nova Scotia, Canada...
and the Canadian House of Commons
Canadian House of Commons
The House of Commons of Canada is a component of the Parliament of Canada, along with the Sovereign and the Senate. The House of Commons is a democratically elected body, consisting of 308 members known as Members of Parliament...
. He was involved with many companies owned by his family and others, including the Union Bank of Halifax
Union Bank of Halifax
The Union Bank of Halifax was granted a charter by the government of Canada in 1856 and established its head office at the corner of Hollis and Prince Streets in the port city of Halifax, Nova Scotia....
. He had hired an inexperienced 23-year-old New Brunswick
New Brunswick
New Brunswick is one of Canada's three Maritime provinces and is the only province in the federation that is constitutionally bilingual . The provincial capital is Fredericton and Saint John is the most populous city. Greater Moncton is the largest Census Metropolitan Area...
native named Max Aitken
Max Aitken, 1st Baron Beaverbrook
William Maxwell "Max" Aitken, 1st Baron Beaverbrook, Bt, PC, was a Canadian-British business tycoon, politician, and writer.-Early career in Canada:...
who immediately demonstrated an ingenious understanding of the world of commerce. Stairs made Aitken his personal assistant and on its formation, appointed him as Royal Securities' secretary and general manager. In its formative years, Royal Securities put together financing packages for Nova Scotia industries and raised the capital for several British West Indies
British West Indies
The British West Indies was a term used to describe the islands in and around the Caribbean that were part of the British Empire The term was sometimes used to include British Honduras and British Guiana, even though these territories are not geographically part of the Caribbean...
public utility
Public utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...
companies including ones where Stairs and his family were significant investors.
In 1904, Royal Securities hired Izaak Walton Killam
Izaak Walton Killam
Izaak Walton Killam was one of Canada's most eminent financiers.-Early life:Born in Yarmouth, Nova Scotia, Killam rose from paper boy in Yarmouth to become one of Canada's wealthiest individuals.-Business ventures:...
, a bright young employee working for the Stairs' family's Union Bank of Halifax. John F. Stairs died unexpectedly at the end of September 1904 while on a business trip to Toronto. His brother, George Stairs (1856-1908) took over as president but poor heath saw Max Aitken, already a minority shareholder, acquire control of Royal Securities. Aitken soon hired and trained Arthur Nesbitt
Arthur James Nesbitt
Arthur James Nesbitt was a Canadian businessman and philanthropist who was a cofounder of Nesbitt, Thomson and Company stockbrokerage and the Power Corporation of Canada....
, a young dry goods
Good (economics and accounting)
In economics, a good is something that is intended to satisfy some wants or needs of a consumer and thus has economic utility. It is normally used in the plural form—goods—to denote tangible commodities such as products and materials....
salesman from Saint John, New Brunswick
Saint John, New Brunswick
City of Saint John , or commonly Saint John, is the largest city in the province of New Brunswick, and the first incorporated city in Canada. The city is situated along the north shore of the Bay of Fundy at the mouth of the Saint John River. In 2006 the city proper had a population of 74,043...
. Because Montreal, Quebec was the financial center of Canada, in 1906 Aitken would send Arthur Nesbitt to open the Montreal branch of Royal Securities. For years, the company was closely affiliated through a controlling equity position in Montreal Engineering Company, Ltd., an international engineering firm founded by Max Aitken and associates in 1907 and today part of the British conglomerate, AMEC
AMEC
AMEC plc is a global consultancy, engineering and project management company headquartered in London, United Kingdom. It is focused on the oil and gas, minerals and metals, renewable energy, environment and infrastructure sectors and has offices in 40 countries worldwide...
. Eventually, MIT
Massachusetts Institute of Technology
The Massachusetts Institute of Technology is a private research university located in Cambridge, Massachusetts. MIT has five schools and one college, containing a total of 32 academic departments, with a strong emphasis on scientific and technological education and research.Founded in 1861 in...
-trained Denis Stairs
Denis Stairs
Denis Stairs B.Eng. OBE was a Canadian engineer and businessman. He was born in Halifax, Nova Scotia, the son of George Stairs, a founding partner and President of Royal Securities Corporation...
, the son of George Stairs, would serve as a director of Royal Securities and chairman of Montreal Engineering.
The very capable Arthur Nesbitt helped build Royal Securities into an important member of the burgeoning investment banking community. Among his accomplishments, he was responsible for a 1910 bond
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
issue by the Price Brothers Co.
Abitibi-Consolidated
Abitibi Consolidated Inc. was a Canadian pulp and paper company based in Montreal, Quebec. Abitibi-Consolidated was formed from the merger of Abitibi-Price Inc. and Stone Consolidated Corp...
that at the time represented the largest public financing of a Canadian newsprint
Newsprint
Newsprint is a low-cost, non-archival paper most commonly used to print newspapers, and other publications and advertising material. It usually has an off-white cast and distinctive feel. It is designed for use in printing presses that employ a long web of paper rather than individual sheets of...
company. However, in 1912 Arthur Nesbitt left Max Aitken's employ to form the Nesbitt, Thomson and Company
Nesbitt, Thomson and Company
Nesbitt Thomson and Company is a former Canadian stock brokerage firm founded in 1912 by Arthur J. Nesbitt and Peter A. T. Thomson. The company was headquartered on St. James Street in Montreal, Quebec and its success helped make the area the financial centre of Canada.In 1987, Nesbitt Thomson was...
stockbrokerage partnership. Aitken then appointed the Nova Scotia-born employee at his London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
office, Izaak Walton Killam
Izaak Walton Killam
Izaak Walton Killam was one of Canada's most eminent financiers.-Early life:Born in Yarmouth, Nova Scotia, Killam rose from paper boy in Yarmouth to become one of Canada's wealthiest individuals.-Business ventures:...
, as the new President of Royal Securities and, firmly ensconced in England, in 1919 sold the Canadian company to Killam. In November 1920, Royal Securities acquired the seven storey office building at 244 St. James Street from the London & Lancashire Life Assurance Company who had built it 1898 as their Canadian head office. Royal Securities owned the building until May 1965.
Under Izaak Walton Killiam's guidance, Royal Securities continued to prosper, becoming one of the largest and most respected brokerage houses in Canada with a significant presence in every province. The company was a leader in the underwriting and distribution of share issues for the rapidly growing domestic pulp and paper
Pulp and Paper
Pulp and Paper is the name of the largest United States-based trade magazine for the pulp and paper industry. See also: Paper engineering, Pulp and Paper Merit Badge...
business that grew hand-in-hand with the development of the electric power industry
Electric power
Electric power is the rate at which electric energy is transferred by an electric circuit. The SI unit of power is the watt.-Circuits:Electric power, like mechanical power, is represented by the letter P in electrical equations...
. Royal Securities was also a major underwriter and agent for numerous government bond issues. Operating from its headquarters on Montreal's famous St. James Street, Royal Securities became a publicly traded
Public company
This is not the same as a Government-owned corporation.A public company or publicly traded company is a limited liability company that offers its securities for sale to the general public, typically through a stock exchange, or through market makers operating in over the counter markets...
company, listed on the Montreal, Canadian and Toronto Stock Exchange
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
s. In the early 1950s, Killam retired from active business due to failing health and before his death in 1955 made generous arrangements to allow the sale of Royal Securities to his close business associates. In 1969, the company was sold to Merrill Lynch
Merrill Lynch
Merrill Lynch is the wealth management division of Bank of America. With over 15,000 financial advisors and $2.2 trillion in client assets it is the world's largest brokerage. Formerly known as Merrill Lynch & Co., Inc., prior to 2009 the firm was publicly owned and traded on the New York...
and would become Merrill Lynch, Royal Securities Limited. Eventually, the Royal Securities named vanished and the company operated as Merrill Lynch Canada Ltd. who over time would sell off their Canadian retail brokerage business to the Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce
The Canadian Imperial Bank of Commerce is one of Canada's chartered banks, fifth largest by deposits. The bank is headquartered at Commerce Court in Toronto, Ontario. CIBC's Institution Number is 010, and its SWIFT code is CIBCCATT....
.