William Jardine (surgeon)
Encyclopedia
William Jardine was a Scottish physician and merchant. He co-founded the Hong Kong conglomerate Jardine, Matheson and Company. From 1841 to 1843, he was Member of Parliament for Ashburton
as a Whig.
Educated in medicine at the University of Edinburgh
, Jardine obtained a diploma from the Royal College of Surgeons of Edinburgh
in 1802. In the same year, he became a surgeon's mate aboard the Brunswick of the East India Company
, bound for India. Captured by the French and shipwrecked in 1805, he was repatriated and returned to the East India Company's service as ship's surgeon. In May 1817, he left medicine for commerce.
Jardine was a resident in China from 1820 to 1839. His early success in Canton
as a commercial agent for opium merchants in India led to his admission in 1825 as a partner of Magniac & Co., and by 1826 he was controlling that firm's Canton operations. James Matheson
joined him shortly after, and Magniac & Co. was reconstituted as Jardine, Matheson & Co in 1832. After Imperial Commissioner Lin Zexu
confiscated 20,000 cases of British-owned opium in 1839, Jardine arrived in London in September, and pressed Foreign Secretary Lord Palmerston for a forceful response.
, Dumfriesshire, Scotland. His father, Andrew Jardine, died when he was nine, leading the family in some economic difficulty. Though struggling to make ends meet, Jardine's older brother David provided him with money to attend school. Jardine began to acquire credentials at the age of sixteen. In 1800 when he entered the University of Edinburgh
Medical School where he took classes in anatomy, medical practice, and obstetrics among others. While his schooling was in progress, Jardine was apprenticed to a surgeon who would provide housing, food, and the essential acquaintance with a hospital practice, with the money his older brother, David, provided. He graduated from the Edinburgh Medical School on 2 March 1802 , and was presented a full diploma from the Royal College of Surgeons of Edinburgh
. He chose to join the service of the British East India Company
and in 1802 at the age of 18 boarded the East Indiaman Brunswick. On 15 March, after satisfying the entry requirements, William Jardine, was paid two months advanced wages as a surgeon's mate in the East India Company’s Maritime Marine Service. One advantage of service with the East India Company was that employees were allowed to trade in goods on their own account. Each employee was allowed cargo space equivalent to two chests or about a hundred pounds of cargo. Jardine engaged in this trade with exceptional dexterity, even leasing the apportioned cargo space of other crew members who did not have interest in using the space, and was able to save quite an amount of money.
Jardine's first voyage was uneventful other than his initial encounter with the economics of an Indiaman’s journey to Asia. He also met two men on his first voyage who would come to play a role in his future as a merchant. The first was Thomas Weeding, a fellow doctor, and surgeon of the Glatton, one of the other ships in the convoy. The second was 26-year-old Charles Magniac who had arrived in Guangzhou
at the beginning of 1801 to supervise his fathers watch business in Canton in partnership with Daniel Beale
.
On leaving the East India Company in 1817, Jardine became an independent trader and entered into partnership with Thomas Weeding and Framjee Cowasjee. The firm did well in the domain of private traders and established Jardine's reputation as an able, steady and experienced private trader. One of Jardine's agents in Bombay, who would become his lifelong friend, was Jamsetjee Jejeebhoy. Both men were on the Brunswick when the crew of a French ship forcibly boarded her. Jejeebhoy was the first Parsee merchant to be created a baronet by Queen Victoria and he would become fabulously wealthy in the years to come.
In 1824, a very important opportunity arose for Jardine. The house of Magniac, the largest and most prominent of all China trading houses fell into disarray. Hollingworth Magniac
, who succeeded his brother Charles Magniac after the latter's death in Paris
was in search for competent partners to join his firm as he was intent on leaving Asia. He was also forced to have his brother, Daniel, resign from the firm after marrying his Chinese mistress. In later years, Jardine had helped Daniel by sending his young son Daniel Francis, his child by his Chinese wife, to Scotland for school. Hollingworth, after an extensive search for a senior partner, settled with Jardine, whose business reputation was already well known throughout Asia. Both Jardine and Magniac also invited James Matheson
to join the firm. Magniac returned to England in late 1820s with the firm in the hands of two of the most talented traders in Asia. Contrary to the practice at the time of retiring partners removing their capital from the firm, Hollingworth left his capital with the firm in trust to Jardine and Matheson. The firm carried the name Magniac and Co. until 1832 as the name Magniac was still formidable throughout China and India. Hollingworth wrote about William Jardine:
And according to Richard Hughes, "...both men scrupulous in their personal and financial dealings." Both men were well respected within the Foreign and local community both in India and in South China, having quietly helped so many people in financial distress. Though their charity was never belabored, it was well accepted that they were done with sincerity. Jardine's tough exterior and candid letters to agents masked his compassionate nature, never exacting punishment when due. An elderly and longtime Portuguese employee who worked as a bookkeeper and clerk for the firm, in his latter years with the firm, had frequently been committing serious errors in the firm's books and his mental capacity was deteriorating. Rather than dismiss the elderly employee, Jardine had allowed the man to retire in honor and in his usual generous character, set up a considerable retirement fund for the man and his family. Both men were also known to have continuously sent money home to less fortunate family members in Scotland and to have helped nephews by providing them work within the firm. Upon the death of his older brother, David, Jardine set up a fund for his brother's widow and arranged schooling for his four sons. In a letter to Hollingworth Magniac, Jardine wrote,
All four of David's sons moved on to work with Jardine, Matheson & Co. in Hong Kong and South China, starting as clerks and eventually becoming partners or managing partners or taipan in the firm.
In another example of Jardine's compassion, in his deathbed years later, he wrote to Jamsetjee Jejeebhoy,
But it was their reputation for business probity, innovative management and strict fiscal policies that sustained their partnership's success in a period where businesses operated in a highly volatile and uncertain environment where the line between success and bankruptcy was extremely thin. Jardine was known for his legendary imperiousness and pride. He was nicknamed by the locals "The Iron-headed Old Rat" after being hit on the head by a club in Guangzhou. Jardine, after being hit, just shrugged off the injury with dour resilience. He had only one chair in his office in the "Creek Hong" in Canton, and that was his own. Visitors were never allowed to sit, to impress upon them that Jardine was a very busy man. Jardine was also known as a crisis manager. In 1822, during his visit to the firm's Guangzhou office, he found the local office in management crisis, with employees in near mutiny against the firm's officers. Jardine then proceeded to take temporary control and succeeded in putting the office in order in just a matter of days. Also a shrewd judge of character, Jardine was even able to persuade the Rev. Charles Gutzlaff
, a Prussia
n missionary, to interpret for their ship captains during coastal smuggling of opium, using the idea that the reverend would best gather more converts during these smuggling operations. Matheson claimed to own the only piano
in Asia and was also an accomplished player. He was also responsible for removing one of the firm's ship captains for refusing to offload opium chests on the Sabbath, Matheson observed, "We have every respect for persons entertaining strict religious principles, but we fear that very godly people are not suited for the drug trade."
On 1 July 1832, Jardine, Matheson and Company, a partnership, between William Jardine, James Matheson as senior partners, and Hollingworth Magniac, Alexander Matheson, Jardine's nephew Andrew Johnstone, Matheson's nephew Hugh Matheson, John Abel Smith, and Henry Wright, as the first partners, was formed in China, taking the Chinese
name 'Ewo' (怡和) pronounced "Yee-Wo" and meaning 'Happy Harmony'. The name was chosen as it had been use by the former Ewo Hong
run by Chinese merchant Howqua
, a business with an impeccable reputation. The firms operations included smuggling opium into China from Malwa, India, trading spices and sugar with the Philippines
, exporting Chinese tea and silk to England, factoring and insuring cargo, renting out dockyard facilities and warehouse space, trade financing and other numerous lines of business and trade. In 1834, Parliament ended the monopoly of the British East India Company on trade between Britain and China. Jardine, Matheson and Company took this opportunity to fill the vacuum left by the East India Company. With its first voyage carrying tea, the Jardine clipper ship "Sarah" left for England
. Jardine Matheson then began its transformation from a major commercial agent of the East India Company into the largest British trading hong (洋行), or firm, in Asia.
William Jardine was now being referred to by the other traders as "Tai-pan" (大班), a Chinese colloquial title meaning 'Great Manager'. In a thunderous tribute to Jardine, Matheson wrote, "I am sure none can be more zealous in your service."
, compared to close rival Dent and Company with 13. Jardines also had hundreds of small ships, lorchas and small smuggling
crafts for coastal and upriver smuggling. The trading concerns of Jardine's included smuggling opium into China from India
, trading spice
s and sugar
from the Philippines
, importing Chinese tea and silk into England, handling cargo papers and cargo insurance, renting of dockyard facilities and warehouse space, trade financing and other numerous lines of business and trade. During the mid-1830s, trade with China was becoming more difficult due to the Qing government's increasing restrictions on the narcotic trade in part to control the worsening outflow of silver
. This trade imbalance stemmed from the fact that Western traders were importing more opium into China than they were exporting teas and silk.
Nevertheless, Dr. William Jardine wanted the opium trade to expand in China. In 1834, working with the Chief Superintendent of Trade representing the British Empire, William, Lord Napier
, tried unsuccessfully to negotiate with the Chinese officials in Canton. The Chinese Viceroy ordered the Canton offices where Napier was staying to be blockaded and the inhabitants including Napier to be held hostages. Lord Napier, a broken and humiliated man, was allowed to return to Macao by land and not by ship as requested. Suffering a fever, he died a few days later.
Jardine, who had good relations with Lord Napier, a Scottish peer, and his family, then took the initiative to use the debacle as an opportunity to convince the British government to use force to further open trade. In early 1835 he ordered James Matheson to leave for Britain to persuade the Government to take up strong action to further open up trade in China. Matheson accompanied Napier's widow to England using an eye-infection as an excuse to return home. Matheson in England then extensively travelled to meet with several parties, both for government and for trade, to gather support for a war with China. Though in some ways unsuccessful in his forays in England, he was brushed aside by the "Iron Duke" (Duke of Wellington
), the then British Foreign Secretary, and reported bitterly to Jardine of being insulted by an arrogant and stupid man. But his activities and widespread lobbying in several forums including Parliament bore the seeds that would eventually lead to war in a few years. Matheson returned to China in 1836 to prepare to take over the firm as Jardine was preparing to fulfill his temporarily delayed retirement. Jardine left Canton on January 26, 1839 for Britain as retirement but in actuality to try to continue Matheson's work. The respect shown by other foreign opium traders to Jardine before his departure can be best illustrated in the following passage from a book by William C. Hunter.
The farewell dinner to Jardine was held on January 22, 1839 with several members of the Foreign settlement in Canton mostly traders. Among the guests were the Forbes brothers of the prominent Forbes family and Warren Delano, a senior partner in the trading firm Russel & Co. and maternal grandfather of US President Franklin Delano Roosevelt.
The Qing government was pleased to hear of Jardine's departure, then proceeded to stop the opium trade. Lin Zexu
, appointed specifically to suppress the drug trade in Guangzhou, stated, "The Iron-headed Old Rat, the sly and cunning ring-leader of the opium smugglers has left for The Land of Mist, of fear from the Middle Kingdom's wrath." He then ordered the surrender of all opium and the destruction of more than 20,000 cases of opium in Guangzhou. He also ordered the arrest of opium trader Lancelot Dent
, the head of Dent and Company (a rival company to Jardine Matheson) since the Chinese were more familiar with Jardine as the trading head and were quite unfamiliar with Matheson. Lin also wrote to Queen Victoria
, to submit in obeisance in the presence of the Chinese Emperor.
. He carried with him a letter of introduction written by Superintendent Elliot that relayed a few of his credentials to Palmerston,
In 1839, Jardine successfully persuaded the British Foreign Minister, Lord Palmerston, to wage war on China, giving a full detailed plan for war, detailed strategic maps, battle strategies, the indemnifications and political demands from China and even the number of troops and warships needed. Aided by Matheson's nephew, Alexander Matheson (1805–1881) and MP John Abel Smith, Jardine met several times with Palmerston to argue the necessity for a war plan. This plan was known as the Jardine Paper
. In the 'Jardine Paper', Jardine emphasized several points to Palmerston in several meetings and they are as follows: There was to be complete compensation for the 20,000 chests of opium that Lin had confiscated, the conclusion of a viable commercial treaty that would prevent any further hostilities, and the opening of further ports of trade such as Fuzhou
, Ningbo
, Shanghai
, and Keeson-chow. It was also suggested by Jardine that should the need arise to occupy an island or harbor in the vicinity of Guangzhou. Hong Kong
would be perfect because it provided an extensive and protected anchorage. As early as the mid-1830s, the island of Hong Kong had already been used for transhipment points by Jardine Matheson and other firms' ships. Jardine clearly stated what he thought would be a sufficient naval and military force to complete the objectives he had outlined. He also provided maps and charts of the area. In a well calculated recommendation letter to Parliament, creating a precedent now infamously known as 'Gunboat Diplomacy', Jardine states:
"No formal Purchase, -- no tedious negotiations,...A firman insistently issued to Sir F. Maitland authorizing him to take & retain possession is all that is necessary, & the Squadron under his Command is quite competent to do both,...until an adequate naval and military force...could be sent out from the mother Country. When All this is accomplished, -- but not till then, a negotiation may be commenced in some such Terms as the following - You take my opium - I take your Islands in return - we are therefore Quits, --& thenceforth if you please let us live in friendly Communion and good fellowship. You cannot protect your Seaboard against Pirates & Buccaneers. I can - So let us understand Each other, & study to promote our mutual Interests."
This letter is in itself a reflection of the very nature of Jardine as a businessman and itself an explanation why the man was considered as the most powerful trader in the South China coast.
Lord Palmerston, the Foreign Secretary who succeeded Wellington, decided mainly on the "suggestions" of Jardine to wage war on China. In mid-1840, a large fleet of war ships appeared on the China coast and with the first cannon fire aimed at a British ship, the Royal Saxon, the British started the first of the Opium Wars
. British warships destroyed numerous shore batteries and enemy warships, laid waste to several coastal forts, indiscriminately bombarding town after town with heavy cannon fire, even pushing up north to threaten the Imperial Palace
in Beijing
itself. The Imperial Government, forced to surrender, gave in to the demands of the British.
Richard Hughes, in Hongkong: A Borrowed Place, A Borrowed Time, stated "William Jardine would have made his mark as admirably as a soldier as he did as a Tai-pan." Lord Palmerston wrote,
In 1843, the Treaty of Nanjing was signed by official representatives of both Britain and China. It allowed the opening of major five major Chinese ports, granted extraterritoriality to foreigners and their activities in China, indemnification for the opium destroyed and completed the formal acquisition of the island of Hong Kong
, which had been officially taken over as a trading and military base since 26 January 1841, though it had already been used years earlier as a transhipment point. Trade with China, especially in the illegal opium, grew, and so did the firm of Jardine, Matheson and Co, which was already known as the Princely Hong
for being the largest British trading firm in East Asia.
In 1841, Jardine was elected to the House of Commons
a Whig Member of Parliament
(MP) representing Ashburton
in Devon. He was also a partner along with longtime friend and business partner Hollingworth Magniac in the merchant banking firm of Magniac, Smith & Co., later renamed Magniac, Jardine & Co., the forerunner of the firm Matheson and Co. Despite his nominal retirement, Jardine was still very much active in business and politics and built a townhouse in 6 Upper Belgrave Street, then a new upscale residential district in London near Buckingham Palace. He had also bought a country estate, Lanrick Castle
, in Perthshire, Scotland. He had enjoyed the fruits of his long years of labor in China as a wealthy gentleman and MP in England and in Scotland.
Jardine's strength and character were brought to light with descriptions from both John Abel Smith and James Matheson. John Abel Smith wrote,
"...his bodily strength and physical powers are much reduced...His resignation and fortitude are most extraordinary and really almost heroic." While Matheson wrote, "...his mind continue clear and composed to the last."
The taipan, Dr. William Jardine died on 27 February 1843, just three days after his 59th birthday, one of the richest and most powerful men in Britain and a respected Member of Parliament. Jardine's funeral was attended by a very large gathering of family, friends, government and business personalities, many of whom Jardine had helped in his lifetime.
Jardine, a bachelor, willed his estate to his siblings and his nephews. An older nephew, Andrew Johnstone, administered Jardine's issue. His other nephews David, Joseph, Robert and Andrew Jardine, all sons of Jardine's older brother David, continued to assist James Matheson in running Jardines. Matheson retired as taipan in 1842 and handed over control of the firm to his nephew Sir Alexander Matheson, who was also known as of the same capacity and competence as the elder Jardine and Matheson. David Jardine, another nephew of Jardine, became taipan after Sir Alexander Matheson. David in turn would hand over to his brother Sir Robert control of the firm. Joseph succeeded Robert as taipan. Succeeding Joseph was Alexander Percival, a relative of Sir James Matheson's wife. Succeeding Alexander Percival is James Whittall who is related neither to the Jardine or Matheson families. No other member of the Matheson family became active in the firm after Percival, though another nephew, Donald Matheson, served as director. Sir Robert Jardine
(1825–1905) is the ancestor of the Buchanan-Jardine branch
of the family. A descendant of Sir Robert, Sir John Buchanan-Jardine, sold his family's 51% holding in Jardine, Matheson and Co. for $84 million at the then prevailing exchange rate in 1959. A great-nephew of Jardine who would be taipan from 1874 to 1886, William Keswick (1834–1912), is the ancestor of the Keswick branch of the family. Keswick is a grandson of Jardine's older sister, Jean Johnstone. Keswick was responsible for opening the Japan office of the firm in 1859 and also expanding the Shanghai office. James Matheson returned to England to fill up the Parliament seat left vacant by Jardine and to head up the firm Matheson & Co., previously known as Magniac, Jardine & Co., in London, a merchant bank and Jardines' agent in England. In 1912, Jardine, Matheson & Co. and the Keswicks would eventually buy out the shares of the Matheson family in the firm although the name is still retained. The company was managed by several family members of William Jardine and their descendants throughout the decades, including the Keswicks, Buchanan-Jardines, Landales, Bell-Irvings, Patersons, Newbiggings and Weatheralls.
An arrangement was made that the management setup of the firm was that a senior partner or proprietor was based in London who had power to appoint senior managers in the firm but had little operational control while a managing director or 'Tai-pan' was stationed in the Far East, either in Shanghai or Hong Kong, who dealt with everyday affairs of the firm. This arrangement had been in practice since the early years of the firm up to the present.
Notable Jardines Managing Directors or Tai-pans included Sir Alexander Matheson, 1st Baronet
, David Jardine, Robert Jardine
, William Keswick, James Johnstone Keswick, Ben Beith, David Landale, Sir John Buchanan-Jardine, Sir William Johnstone "Tony" Keswick
, Sir Hugh Barton
, Sir Michael Herries
, Sir John Keswick, Sir Henry Keswick
, Simon Keswick
and Alasdair Morrison
. There was a point in time in the early 20th century that the firm had two 'Tai-pans' at the same time, one in Hong Kong and one in Shanghai, to effectively manage the firm's extensive affairs in both locations. Both tai-pans were responsible only to the senior partner or proprietor in London who was normally a retired former tai-pan and an elder member of the Jardine family.
Today, the Jardine Matheson Group
is still very much active in Hong Kong, being one of the largest conglomerates in Hong Kong and its largest employer, second only to the government. Several landmarks in present day Hong Kong are named after the firm and the founders Jardine and Matheson like Jardine's Bazaar
, Jardine's Crescent, Jardine's Bridge, Jardine's Lookout
, Yee Wo Street
, Matheson Street, Jardine House
and the Noon Day Gun. Jardines is also active in China, North America
, Europe
, Australia
, the Middle East
and parts of Africa
. It went through several major internal changes throughout the 19th and 20th century. In 1947, a secret Trust was formed by members of the family to retain effective control over the company. Jardine, Matheson and Co. offered its shares to the public in 1961 under the tenure of Sir Hugh Barton and was oversubscribed 56 times. The Keswick family, in consortium with several London-based banks and financial institutions, bought out the controlling shares of the Buchanan-Jardine family in 1959, but subsequently sold most of the shares during the 1961 public offering, retaining only about 10% of the company. The company had its head office redomiciled to Bermuda
in 1984 under the tenure of Simon Keswick to maintain control after nearly being taken over by Chinese tycoon Li Ka-shing of Cheung Kong after a hostile raid in 1980. Li, who bought nearly 20% of the company at that time the largest shareholding in the company, agreed to sell his shares to Hongkong Land, a sister company of Jardines, at a premium. Another reason for the move was fear of the Chinese take-over of Hong Kong and the threat of Chinese retaliation for Jardines drug smuggling past. Subsequent events led to the cross-shareholding structure between Jardine, Matheson & Co. and Hongkong Land which was first instigated in 1980 by then taipan David Newbigging. In 1988, instigated by Brian Powers, the first American taipan of Jardines, the entire corporate structure of Jardine, Matheson & Co., including all its allied companies, were restructured so that a holding company based in London and controlled by the Keswick family
would have overall policy and strategic control of all Jardine Matheson Group companies. The firm delisted from the Hong Kong Stock exchange (Hang Seng Index
) in 1994 under the tenure of Alasdair Morrison and placed its primary listing in London and its secondary listing in Singapore
. The present Chairman of Jardine Matheson Holdings Ltd. is Sir Henry Keswick, who is based in the UK, was the company's tai-pan from 1970 (aged 31) to 1975 and was the 6th Keswick to be tai-pan of the company. His brother, Simon, was the company's taipan from 1983 to 1988 and is the 7th Keswick to be tai-pan. Both brothers are the 4th generation of Keswicks in the company. The firm's present managing director or tai-pan is Anthony Nightingale who is based in Hong Kong. The organizational structure of Jardines has changed almost totally, but the members of the family of Dr. William Jardine still control the firm through a complex cross-shareholding structure, several allied shareholders and a secretive 1947 Trust.
Ashburton (UK Parliament constituency)
Ashburton was a borough constituency represented in the House of Commons of the Parliament at Westminster, for one Parliament in 1298 and regularly from 1640 until it was abolished for the 1868 general election. It was one of three Devon borough constituencies newly enfranchised in the Long...
as a Whig.
Educated in medicine at the University of Edinburgh
University of Edinburgh
The University of Edinburgh, founded in 1583, is a public research university located in Edinburgh, the capital of Scotland, and a UNESCO World Heritage Site. The university is deeply embedded in the fabric of the city, with many of the buildings in the historic Old Town belonging to the university...
, Jardine obtained a diploma from the Royal College of Surgeons of Edinburgh
Royal College of Surgeons of Edinburgh
The Royal College of Surgeons of Edinburgh is an organisation dedicated to the pursuit of excellence and advancement in surgical practice, through its interest in education, training and examinations, its liaison with external medical bodies and representation of the modern surgical workforce...
in 1802. In the same year, he became a surgeon's mate aboard the Brunswick of the East India Company
East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
, bound for India. Captured by the French and shipwrecked in 1805, he was repatriated and returned to the East India Company's service as ship's surgeon. In May 1817, he left medicine for commerce.
Jardine was a resident in China from 1820 to 1839. His early success in Canton
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
as a commercial agent for opium merchants in India led to his admission in 1825 as a partner of Magniac & Co., and by 1826 he was controlling that firm's Canton operations. James Matheson
James Matheson
Sir James Nicolas Sutherland Matheson, 1st Baronet , born in Shiness, Lairg, Sutherland, Scotland, was the son of Captain Donald Matheson, a Scottish trader in India...
joined him shortly after, and Magniac & Co. was reconstituted as Jardine, Matheson & Co in 1832. After Imperial Commissioner Lin Zexu
Lin Zexu
Lín Zéxú ; 30 August 1785 – 22 November 1850) was a Chinese scholar and official during the Qing Dynasty.He is most recognized for his conduct and his constant position on the "high moral ground" in his fight, as a "shepherd" of his people, against the opium trade in Guangzhou...
confiscated 20,000 cases of British-owned opium in 1839, Jardine arrived in London in September, and pressed Foreign Secretary Lord Palmerston for a forceful response.
Early life
Jardine, one of five children, was born in 1784 on a small farm near LochmabenLochmaben
Lochmaben is a small town in Scotland, and site of a once-important castle. It lies four miles west of Lockerbie, in Dumfries and Galloway.-Notable people:*Angus Douglas - Scottish internationalist footballer...
, Dumfriesshire, Scotland. His father, Andrew Jardine, died when he was nine, leading the family in some economic difficulty. Though struggling to make ends meet, Jardine's older brother David provided him with money to attend school. Jardine began to acquire credentials at the age of sixteen. In 1800 when he entered the University of Edinburgh
University of Edinburgh
The University of Edinburgh, founded in 1583, is a public research university located in Edinburgh, the capital of Scotland, and a UNESCO World Heritage Site. The university is deeply embedded in the fabric of the city, with many of the buildings in the historic Old Town belonging to the university...
Medical School where he took classes in anatomy, medical practice, and obstetrics among others. While his schooling was in progress, Jardine was apprenticed to a surgeon who would provide housing, food, and the essential acquaintance with a hospital practice, with the money his older brother, David, provided. He graduated from the Edinburgh Medical School on 2 March 1802 , and was presented a full diploma from the Royal College of Surgeons of Edinburgh
Royal College of Surgeons of Edinburgh
The Royal College of Surgeons of Edinburgh is an organisation dedicated to the pursuit of excellence and advancement in surgical practice, through its interest in education, training and examinations, its liaison with external medical bodies and representation of the modern surgical workforce...
. He chose to join the service of the British East India Company
British East India Company
The East India Company was an early English joint-stock company that was formed initially for pursuing trade with the East Indies, but that ended up trading mainly with the Indian subcontinent and China...
and in 1802 at the age of 18 boarded the East Indiaman Brunswick. On 15 March, after satisfying the entry requirements, William Jardine, was paid two months advanced wages as a surgeon's mate in the East India Company’s Maritime Marine Service. One advantage of service with the East India Company was that employees were allowed to trade in goods on their own account. Each employee was allowed cargo space equivalent to two chests or about a hundred pounds of cargo. Jardine engaged in this trade with exceptional dexterity, even leasing the apportioned cargo space of other crew members who did not have interest in using the space, and was able to save quite an amount of money.
Jardine's first voyage was uneventful other than his initial encounter with the economics of an Indiaman’s journey to Asia. He also met two men on his first voyage who would come to play a role in his future as a merchant. The first was Thomas Weeding, a fellow doctor, and surgeon of the Glatton, one of the other ships in the convoy. The second was 26-year-old Charles Magniac who had arrived in Guangzhou
Guangzhou
Guangzhou , known historically as Canton or Kwangchow, is the capital and largest city of the Guangdong province in the People's Republic of China. Located in southern China on the Pearl River, about north-northwest of Hong Kong, Guangzhou is a key national transportation hub and trading port...
at the beginning of 1801 to supervise his fathers watch business in Canton in partnership with Daniel Beale
Daniel Beale
Daniel Beale was a Scottish merchant and fur trader active in the Far East mercantile centres of Bombay, Canton and Macau as well as at one time the Prussian consul in China.-Biography:...
.
On leaving the East India Company in 1817, Jardine became an independent trader and entered into partnership with Thomas Weeding and Framjee Cowasjee. The firm did well in the domain of private traders and established Jardine's reputation as an able, steady and experienced private trader. One of Jardine's agents in Bombay, who would become his lifelong friend, was Jamsetjee Jejeebhoy. Both men were on the Brunswick when the crew of a French ship forcibly boarded her. Jejeebhoy was the first Parsee merchant to be created a baronet by Queen Victoria and he would become fabulously wealthy in the years to come.
In 1824, a very important opportunity arose for Jardine. The house of Magniac, the largest and most prominent of all China trading houses fell into disarray. Hollingworth Magniac
Hollingworth Magniac
Hollingworth Magniac was a merchant and connoisseur of medieval art. He was instrumental in the formation of Jardine Matheson, and Company, one of the largest trading houses in Asia during the 19th century.-Biography:...
, who succeeded his brother Charles Magniac after the latter's death in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
was in search for competent partners to join his firm as he was intent on leaving Asia. He was also forced to have his brother, Daniel, resign from the firm after marrying his Chinese mistress. In later years, Jardine had helped Daniel by sending his young son Daniel Francis, his child by his Chinese wife, to Scotland for school. Hollingworth, after an extensive search for a senior partner, settled with Jardine, whose business reputation was already well known throughout Asia. Both Jardine and Magniac also invited James Matheson
James Matheson
Sir James Nicolas Sutherland Matheson, 1st Baronet , born in Shiness, Lairg, Sutherland, Scotland, was the son of Captain Donald Matheson, a Scottish trader in India...
to join the firm. Magniac returned to England in late 1820s with the firm in the hands of two of the most talented traders in Asia. Contrary to the practice at the time of retiring partners removing their capital from the firm, Hollingworth left his capital with the firm in trust to Jardine and Matheson. The firm carried the name Magniac and Co. until 1832 as the name Magniac was still formidable throughout China and India. Hollingworth wrote about William Jardine:
- “You will find Jardine a most conscientious, honourable, and kind-hearted fellow, extremely liberal and an excellent man of business in this market, where his knowledge and experience in the opium trade and in most articles of export is highly valuable. He requires to be known and to be properly appreciated.”
Jardine, Matheson and Co.
James Matheson joined Magniac & Co. from the firm Yrissari & Co where he was partner. After Francis Xavier de Yrissari's death, Matheson wound up the firm's affairs and closed shop. Yrissari, leaving no heir, had willed all his shares in the firm to Matheson. This created the perfect opportunity for Matheson to join in commerce with Jardine. Matheson proved a perfect partner for Jardine. James Matheson and his nephew, Alexander Matheson, joined the firm Magniac and Co. in 1827, but their association was officially advertised on 1 January 1828. Jardine was known as the planner, the tough negotiator and strategist of the firm and Matheson was known as the organization man, who handled the firm's correspondence, and other complex articles including legal affairs. Matheson was known to be behind many of the company's innovative practices. And both men were a study in contrasts, Jardine being tall, lean and trim while Matheson was short and slightly portly. Matheson had the advantage of coming from a family with social and economic means, while Jardine came from a much more humble background. Jardine was tough, serious, detail-oriented and reserved while Matheson was creative, outspoken and jovial. Jardine was known to work long hours and was extremely business-minded, while Matheson enjoyed the arts and was very eloquent. William C. Hunter wrote about Jardine, "He was a gentleman of great strength of character and of unbounded generosity." Hunter's description of Matheson was, "He was a gentleman of great suavity of manner and the impersonation of benevolence." But there were similarities in both men. Jardine and Matheson were second sons, possibly explaining their drive and character. Both men were hardworking, driven and single-minded in their pursuit of wealth.And according to Richard Hughes, "...both men scrupulous in their personal and financial dealings." Both men were well respected within the Foreign and local community both in India and in South China, having quietly helped so many people in financial distress. Though their charity was never belabored, it was well accepted that they were done with sincerity. Jardine's tough exterior and candid letters to agents masked his compassionate nature, never exacting punishment when due. An elderly and longtime Portuguese employee who worked as a bookkeeper and clerk for the firm, in his latter years with the firm, had frequently been committing serious errors in the firm's books and his mental capacity was deteriorating. Rather than dismiss the elderly employee, Jardine had allowed the man to retire in honor and in his usual generous character, set up a considerable retirement fund for the man and his family. Both men were also known to have continuously sent money home to less fortunate family members in Scotland and to have helped nephews by providing them work within the firm. Upon the death of his older brother, David, Jardine set up a fund for his brother's widow and arranged schooling for his four sons. In a letter to Hollingworth Magniac, Jardine wrote,
- "My only Brother has a very large family, three or four of them Boys, and as he has not the means of providing for them all, in the way I wish to see them provided for, I am desirous of having one of them here, to commence in the office, and work his way, by industry and application to business."
All four of David's sons moved on to work with Jardine, Matheson & Co. in Hong Kong and South China, starting as clerks and eventually becoming partners or managing partners or taipan in the firm.
In another example of Jardine's compassion, in his deathbed years later, he wrote to Jamsetjee Jejeebhoy,
- "I have been requested by one of my oldest and best friends in the Company's service to introduce to your [good] and kind offices [captain] John Campbell of the Ship Scotia which vessel he has commanded since she was launched, but owing to change of owners and other [circumstances] he is now out of employ with a numerous family and very slender means to provide for them. He is, however, an active, able, and trustworthy Commander, in good health, well-known to your friends in Bombay, to the Lyalls in Calcutta, and to our friends in China. Under these circumstances, destitute at home though willing to work, he intends embarking by the October mail for Bombay, and I beg most earnestly to bring him under your notice and bespeak for him as early employment as though you and other kind friends can possibly be procured."
But it was their reputation for business probity, innovative management and strict fiscal policies that sustained their partnership's success in a period where businesses operated in a highly volatile and uncertain environment where the line between success and bankruptcy was extremely thin. Jardine was known for his legendary imperiousness and pride. He was nicknamed by the locals "The Iron-headed Old Rat" after being hit on the head by a club in Guangzhou. Jardine, after being hit, just shrugged off the injury with dour resilience. He had only one chair in his office in the "Creek Hong" in Canton, and that was his own. Visitors were never allowed to sit, to impress upon them that Jardine was a very busy man. Jardine was also known as a crisis manager. In 1822, during his visit to the firm's Guangzhou office, he found the local office in management crisis, with employees in near mutiny against the firm's officers. Jardine then proceeded to take temporary control and succeeded in putting the office in order in just a matter of days. Also a shrewd judge of character, Jardine was even able to persuade the Rev. Charles Gutzlaff
Karl Gützlaff
Karl Friedrich August Gützlaff , anglicised as Charles Gutzlaff, was a German missionary to the Far East, notable as one of the first Protestant missionaries in Bangkok, Thailand and for his books about China. He was one of the first Protestant missionaries in China to dress like a Chinese...
, a Prussia
Prussia
Prussia was a German kingdom and historic state originating out of the Duchy of Prussia and the Margraviate of Brandenburg. For centuries, the House of Hohenzollern ruled Prussia, successfully expanding its size by way of an unusually well-organized and effective army. Prussia shaped the history...
n missionary, to interpret for their ship captains during coastal smuggling of opium, using the idea that the reverend would best gather more converts during these smuggling operations. Matheson claimed to own the only piano
Piano
The piano is a musical instrument played by means of a keyboard. It is one of the most popular instruments in the world. Widely used in classical and jazz music for solo performances, ensemble use, chamber music and accompaniment, the piano is also very popular as an aid to composing and rehearsal...
in Asia and was also an accomplished player. He was also responsible for removing one of the firm's ship captains for refusing to offload opium chests on the Sabbath, Matheson observed, "We have every respect for persons entertaining strict religious principles, but we fear that very godly people are not suited for the drug trade."
On 1 July 1832, Jardine, Matheson and Company, a partnership, between William Jardine, James Matheson as senior partners, and Hollingworth Magniac, Alexander Matheson, Jardine's nephew Andrew Johnstone, Matheson's nephew Hugh Matheson, John Abel Smith, and Henry Wright, as the first partners, was formed in China, taking the Chinese
Chinese language
The Chinese language is a language or language family consisting of varieties which are mutually intelligible to varying degrees. Originally the indigenous languages spoken by the Han Chinese in China, it forms one of the branches of Sino-Tibetan family of languages...
name 'Ewo' (怡和) pronounced "Yee-Wo" and meaning 'Happy Harmony'. The name was chosen as it had been use by the former Ewo Hong
Ewo (hong)
The Ewo Hong ; Cantonese: yi wo hong) was a Qing Dynasty hong established by Wǔ Guóyíng in Canton in 1783 and later became the leader of the cohong of the Thirteen Factories under the stewardship of Howqua, who took over in 1803...
run by Chinese merchant Howqua
Howqua
Howqua was the most important of the Hong merchants in the Thirteen Factories, head of the E-wo hong and leader of the Canton Cohong–Gong1 hong2 . He was once one of the richest men in the world.-Biography:...
, a business with an impeccable reputation. The firms operations included smuggling opium into China from Malwa, India, trading spices and sugar with the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, exporting Chinese tea and silk to England, factoring and insuring cargo, renting out dockyard facilities and warehouse space, trade financing and other numerous lines of business and trade. In 1834, Parliament ended the monopoly of the British East India Company on trade between Britain and China. Jardine, Matheson and Company took this opportunity to fill the vacuum left by the East India Company. With its first voyage carrying tea, the Jardine clipper ship "Sarah" left for England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
. Jardine Matheson then began its transformation from a major commercial agent of the East India Company into the largest British trading hong (洋行), or firm, in Asia.
William Jardine was now being referred to by the other traders as "Tai-pan" (大班), a Chinese colloquial title meaning 'Great Manager'. In a thunderous tribute to Jardine, Matheson wrote, "I am sure none can be more zealous in your service."
Departure from China and breakdown of relations
In 1841, Jardines had 19 intercontinental clipper shipsClipper
A clipper was a very fast sailing ship of the 19th century that had three or more masts and a square rig. They were generally narrow for their length, could carry limited bulk freight, small by later 19th century standards, and had a large total sail area...
, compared to close rival Dent and Company with 13. Jardines also had hundreds of small ships, lorchas and small smuggling
Smuggling
Smuggling is the clandestine transportation of goods or persons, such as out of a building, into a prison, or across an international border, in violation of applicable laws or other regulations.There are various motivations to smuggle...
crafts for coastal and upriver smuggling. The trading concerns of Jardine's included smuggling opium into China from India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
, trading spice
Spice
A spice is a dried seed, fruit, root, bark, or vegetative substance used in nutritionally insignificant quantities as a food additive for flavor, color, or as a preservative that kills harmful bacteria or prevents their growth. It may be used to flavour a dish or to hide other flavours...
s and sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...
from the Philippines
Philippines
The Philippines , officially known as the Republic of the Philippines , is a country in Southeast Asia in the western Pacific Ocean. To its north across the Luzon Strait lies Taiwan. West across the South China Sea sits Vietnam...
, importing Chinese tea and silk into England, handling cargo papers and cargo insurance, renting of dockyard facilities and warehouse space, trade financing and other numerous lines of business and trade. During the mid-1830s, trade with China was becoming more difficult due to the Qing government's increasing restrictions on the narcotic trade in part to control the worsening outflow of silver
Silver
Silver is a metallic chemical element with the chemical symbol Ag and atomic number 47. A soft, white, lustrous transition metal, it has the highest electrical conductivity of any element and the highest thermal conductivity of any metal...
. This trade imbalance stemmed from the fact that Western traders were importing more opium into China than they were exporting teas and silk.
Nevertheless, Dr. William Jardine wanted the opium trade to expand in China. In 1834, working with the Chief Superintendent of Trade representing the British Empire, William, Lord Napier
William Napier, 9th Lord Napier
William John Napier, 9th Lord Napier was a Royal Navy officer, politician and diplomat.- Early life :He was the son of Francis Napier, 8th Lord Napier and the father of Francis Napier, 10th Lord Napier and 1st Baron Ettrick . He served during the battle of Trafalgar as a midshipman...
, tried unsuccessfully to negotiate with the Chinese officials in Canton. The Chinese Viceroy ordered the Canton offices where Napier was staying to be blockaded and the inhabitants including Napier to be held hostages. Lord Napier, a broken and humiliated man, was allowed to return to Macao by land and not by ship as requested. Suffering a fever, he died a few days later.
Jardine, who had good relations with Lord Napier, a Scottish peer, and his family, then took the initiative to use the debacle as an opportunity to convince the British government to use force to further open trade. In early 1835 he ordered James Matheson to leave for Britain to persuade the Government to take up strong action to further open up trade in China. Matheson accompanied Napier's widow to England using an eye-infection as an excuse to return home. Matheson in England then extensively travelled to meet with several parties, both for government and for trade, to gather support for a war with China. Though in some ways unsuccessful in his forays in England, he was brushed aside by the "Iron Duke" (Duke of Wellington
Arthur Wellesley, 1st Duke of Wellington
Field Marshal Arthur Wellesley, 1st Duke of Wellington, KG, GCB, GCH, PC, FRS , was an Irish-born British soldier and statesman, and one of the leading military and political figures of the 19th century...
), the then British Foreign Secretary, and reported bitterly to Jardine of being insulted by an arrogant and stupid man. But his activities and widespread lobbying in several forums including Parliament bore the seeds that would eventually lead to war in a few years. Matheson returned to China in 1836 to prepare to take over the firm as Jardine was preparing to fulfill his temporarily delayed retirement. Jardine left Canton on January 26, 1839 for Britain as retirement but in actuality to try to continue Matheson's work. The respect shown by other foreign opium traders to Jardine before his departure can be best illustrated in the following passage from a book by William C. Hunter.
- “A few days before Mr. Jardine’s departure from Canton, the entire foreign community entertained him at a dinner in the dining room of the East India Company’s Factory. About eighty persons of all nationalities, including India, were present, and they did not separate until several hours after midnight. It was an event frequently referred to afterwards amongst the residents, and to this day there are a few of us who still speak of it.”
The farewell dinner to Jardine was held on January 22, 1839 with several members of the Foreign settlement in Canton mostly traders. Among the guests were the Forbes brothers of the prominent Forbes family and Warren Delano, a senior partner in the trading firm Russel & Co. and maternal grandfather of US President Franklin Delano Roosevelt.
The Qing government was pleased to hear of Jardine's departure, then proceeded to stop the opium trade. Lin Zexu
Lin Zexu
Lín Zéxú ; 30 August 1785 – 22 November 1850) was a Chinese scholar and official during the Qing Dynasty.He is most recognized for his conduct and his constant position on the "high moral ground" in his fight, as a "shepherd" of his people, against the opium trade in Guangzhou...
, appointed specifically to suppress the drug trade in Guangzhou, stated, "The Iron-headed Old Rat, the sly and cunning ring-leader of the opium smugglers has left for The Land of Mist, of fear from the Middle Kingdom's wrath." He then ordered the surrender of all opium and the destruction of more than 20,000 cases of opium in Guangzhou. He also ordered the arrest of opium trader Lancelot Dent
Lancelot Dent
Lancelot Dent was a 19th century British merchant resident for a period in Canton, China who dealt primarily in opium.He was christened on August 4, 1799 in Crosby Ravensworth, Westmorland, England, son of William and Jane Dent....
, the head of Dent and Company (a rival company to Jardine Matheson) since the Chinese were more familiar with Jardine as the trading head and were quite unfamiliar with Matheson. Lin also wrote to Queen Victoria
Victoria of the United Kingdom
Victoria was the monarch of the United Kingdom of Great Britain and Ireland from 20 June 1837 until her death. From 1 May 1876, she used the additional title of Empress of India....
, to submit in obeisance in the presence of the Chinese Emperor.
War and the Chinese surrender
Once in London, Jardine’s first order of business was to meet with Lord PalmerstonHenry Temple, 3rd Viscount Palmerston
Henry John Temple, 3rd Viscount Palmerston, KG, GCB, PC , known popularly as Lord Palmerston, was a British statesman who served twice as Prime Minister in the mid-19th century...
. He carried with him a letter of introduction written by Superintendent Elliot that relayed a few of his credentials to Palmerston,
- “This gentleman has for several years stood at the head of our commercial community and he carries with him the esteem and kind wishes of the whole foreign society, honourably acquired by a long career of private charity and public spirit.”
In 1839, Jardine successfully persuaded the British Foreign Minister, Lord Palmerston, to wage war on China, giving a full detailed plan for war, detailed strategic maps, battle strategies, the indemnifications and political demands from China and even the number of troops and warships needed. Aided by Matheson's nephew, Alexander Matheson (1805–1881) and MP John Abel Smith, Jardine met several times with Palmerston to argue the necessity for a war plan. This plan was known as the Jardine Paper
Jardine Paper
Jardine Paper is the proposal sent by Dr. William Jardine to Lord Palmerston to guide the British government in its plans to wage war with China which eventually was called the First Opium War....
. In the 'Jardine Paper', Jardine emphasized several points to Palmerston in several meetings and they are as follows: There was to be complete compensation for the 20,000 chests of opium that Lin had confiscated, the conclusion of a viable commercial treaty that would prevent any further hostilities, and the opening of further ports of trade such as Fuzhou
Fuzhou
Fuzhou is the capital and one of the largest cities in Fujian Province, People's Republic of China. Along with the many counties of Ningde, those of Fuzhou are considered to constitute the Mindong linguistic and cultural area....
, Ningbo
Ningbo
Ningbo is a seaport city of northeastern Zhejiang province, Eastern China. Holding sub-provincial administrative status, the municipality has a population of 7,605,700 inhabitants at the 2010 census whom 3,089,180 in the built up area made of 6 urban districts. It lies south of the Hangzhou Bay,...
, Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, and Keeson-chow. It was also suggested by Jardine that should the need arise to occupy an island or harbor in the vicinity of Guangzhou. Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
would be perfect because it provided an extensive and protected anchorage. As early as the mid-1830s, the island of Hong Kong had already been used for transhipment points by Jardine Matheson and other firms' ships. Jardine clearly stated what he thought would be a sufficient naval and military force to complete the objectives he had outlined. He also provided maps and charts of the area. In a well calculated recommendation letter to Parliament, creating a precedent now infamously known as 'Gunboat Diplomacy', Jardine states:
"No formal Purchase, -- no tedious negotiations,...A firman insistently issued to Sir F. Maitland authorizing him to take & retain possession is all that is necessary, & the Squadron under his Command is quite competent to do both,...until an adequate naval and military force...could be sent out from the mother Country. When All this is accomplished, -- but not till then, a negotiation may be commenced in some such Terms as the following - You take my opium - I take your Islands in return - we are therefore Quits, --& thenceforth if you please let us live in friendly Communion and good fellowship. You cannot protect your Seaboard against Pirates & Buccaneers. I can - So let us understand Each other, & study to promote our mutual Interests."
This letter is in itself a reflection of the very nature of Jardine as a businessman and itself an explanation why the man was considered as the most powerful trader in the South China coast.
Lord Palmerston, the Foreign Secretary who succeeded Wellington, decided mainly on the "suggestions" of Jardine to wage war on China. In mid-1840, a large fleet of war ships appeared on the China coast and with the first cannon fire aimed at a British ship, the Royal Saxon, the British started the first of the Opium Wars
First Opium War
The First Anglo-Chinese War , known popularly as the First Opium War or simply the Opium War, was fought between the United Kingdom and the Qing Dynasty of China over their conflicting viewpoints on diplomatic relations, trade, and the administration of justice...
. British warships destroyed numerous shore batteries and enemy warships, laid waste to several coastal forts, indiscriminately bombarding town after town with heavy cannon fire, even pushing up north to threaten the Imperial Palace
Forbidden City
The Forbidden City was the Chinese imperial palace from the Ming Dynasty to the end of the Qing Dynasty. It is located in the middle of Beijing, China, and now houses the Palace Museum...
in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
itself. The Imperial Government, forced to surrender, gave in to the demands of the British.
Richard Hughes, in Hongkong: A Borrowed Place, A Borrowed Time, stated "William Jardine would have made his mark as admirably as a soldier as he did as a Tai-pan." Lord Palmerston wrote,
- “To the assistance and information which you and Mr. Jardine so handsomely afforded us it was mainly owing that we were able to give our affairs naval, military and diplomatic, in China those detailed instructions which have led to these satisfactory results.”
In 1843, the Treaty of Nanjing was signed by official representatives of both Britain and China. It allowed the opening of major five major Chinese ports, granted extraterritoriality to foreigners and their activities in China, indemnification for the opium destroyed and completed the formal acquisition of the island of Hong Kong
Hong Kong Island
Hong Kong Island is an island in the southern part of the Hong Kong Special Administrative Region. It has a population of 1,289,500 and its population density is 16,390/km², as of 2008...
, which had been officially taken over as a trading and military base since 26 January 1841, though it had already been used years earlier as a transhipment point. Trade with China, especially in the illegal opium, grew, and so did the firm of Jardine, Matheson and Co, which was already known as the Princely Hong
Prince's Building
The Prince's Building is an office tower and shopping centre located along Statue Square in Central, Hong Kong. Tenants include KPMG and PricewaterhouseCoopers.The name has been used for two structures in the same area....
for being the largest British trading firm in East Asia.
In 1841, Jardine was elected to the House of Commons
British House of Commons
The House of Commons is the lower house of the Parliament of the United Kingdom, which also comprises the Sovereign and the House of Lords . Both Commons and Lords meet in the Palace of Westminster. The Commons is a democratically elected body, consisting of 650 members , who are known as Members...
a Whig Member of Parliament
Member of Parliament
A Member of Parliament is a representative of the voters to a :parliament. In many countries with bicameral parliaments, the term applies specifically to members of the lower house, as upper houses often have a different title, such as senate, and thus also have different titles for its members,...
(MP) representing Ashburton
Ashburton (UK Parliament constituency)
Ashburton was a borough constituency represented in the House of Commons of the Parliament at Westminster, for one Parliament in 1298 and regularly from 1640 until it was abolished for the 1868 general election. It was one of three Devon borough constituencies newly enfranchised in the Long...
in Devon. He was also a partner along with longtime friend and business partner Hollingworth Magniac in the merchant banking firm of Magniac, Smith & Co., later renamed Magniac, Jardine & Co., the forerunner of the firm Matheson and Co. Despite his nominal retirement, Jardine was still very much active in business and politics and built a townhouse in 6 Upper Belgrave Street, then a new upscale residential district in London near Buckingham Palace. He had also bought a country estate, Lanrick Castle
Lanrick Castle
Lanrick Castle was a late 18th-century country house near Doune in central Scotland. It was demolished in 2002 despite being protected as a category B listed building. It was located on the south bank of the River Teith, in Stirling council area.-History:...
, in Perthshire, Scotland. He had enjoyed the fruits of his long years of labor in China as a wealthy gentleman and MP in England and in Scotland.
Death and legacy
In late 1842, Jardine's health had rapidly deteriorated possibly from pulmonary oedima. In the latter part of the year, Jardine was already bedridden and in great pain. He was assisted by his nephew, Andrew Johnstone and later on by James Matheson in his correspondence. Despite his illness, Jardine was still very active in keeping an eye on business, politics and current affairs. Despite his poor health, he still welcomed a steady stream of visitors from family members, business partners, political associates and his constituents. A constituent, James Stewart, once commented to a friend who wrote this letter, "...he (Stewart) had come mainly to see one Jardine, an enormous Laird from Applegarth Parish and China, and a very good man; who is understood to be dangerously ill at present." It is interesting to note that Jardine had helped James Stewart's son William by giving him a place in the firm in Canton as a clerk in the 1830s and eventually became a partner in 1842.Jardine's strength and character were brought to light with descriptions from both John Abel Smith and James Matheson. John Abel Smith wrote,
"...his bodily strength and physical powers are much reduced...His resignation and fortitude are most extraordinary and really almost heroic." While Matheson wrote, "...his mind continue clear and composed to the last."
The taipan, Dr. William Jardine died on 27 February 1843, just three days after his 59th birthday, one of the richest and most powerful men in Britain and a respected Member of Parliament. Jardine's funeral was attended by a very large gathering of family, friends, government and business personalities, many of whom Jardine had helped in his lifetime.
Jardine, a bachelor, willed his estate to his siblings and his nephews. An older nephew, Andrew Johnstone, administered Jardine's issue. His other nephews David, Joseph, Robert and Andrew Jardine, all sons of Jardine's older brother David, continued to assist James Matheson in running Jardines. Matheson retired as taipan in 1842 and handed over control of the firm to his nephew Sir Alexander Matheson, who was also known as of the same capacity and competence as the elder Jardine and Matheson. David Jardine, another nephew of Jardine, became taipan after Sir Alexander Matheson. David in turn would hand over to his brother Sir Robert control of the firm. Joseph succeeded Robert as taipan. Succeeding Joseph was Alexander Percival, a relative of Sir James Matheson's wife. Succeeding Alexander Percival is James Whittall who is related neither to the Jardine or Matheson families. No other member of the Matheson family became active in the firm after Percival, though another nephew, Donald Matheson, served as director. Sir Robert Jardine
Sir Robert Jardine, 1st Baronet
Sir Robert Jardine, 1st Baronet was a Scottish businessman and Liberal politicianJardine was born at Edinburgh the son of David Jardine of Muir House, Lockerbie, Dumfries and his wife Rachel Johnstone...
(1825–1905) is the ancestor of the Buchanan-Jardine branch
Buchanan-Jardine Baronets
The Jardine, later Buchanan-Jardine Baronetcy, of Castle Milk in the County of Dumfries, is a title in the Baronetage of the United Kingdom. It was created on 20 July 1885 for the businessman and Liberal politician Robert Jardine. He was head of Jardine, Matheson and Co, merchants in China, and...
of the family. A descendant of Sir Robert, Sir John Buchanan-Jardine, sold his family's 51% holding in Jardine, Matheson and Co. for $84 million at the then prevailing exchange rate in 1959. A great-nephew of Jardine who would be taipan from 1874 to 1886, William Keswick (1834–1912), is the ancestor of the Keswick branch of the family. Keswick is a grandson of Jardine's older sister, Jean Johnstone. Keswick was responsible for opening the Japan office of the firm in 1859 and also expanding the Shanghai office. James Matheson returned to England to fill up the Parliament seat left vacant by Jardine and to head up the firm Matheson & Co., previously known as Magniac, Jardine & Co., in London, a merchant bank and Jardines' agent in England. In 1912, Jardine, Matheson & Co. and the Keswicks would eventually buy out the shares of the Matheson family in the firm although the name is still retained. The company was managed by several family members of William Jardine and their descendants throughout the decades, including the Keswicks, Buchanan-Jardines, Landales, Bell-Irvings, Patersons, Newbiggings and Weatheralls.
An arrangement was made that the management setup of the firm was that a senior partner or proprietor was based in London who had power to appoint senior managers in the firm but had little operational control while a managing director or 'Tai-pan' was stationed in the Far East, either in Shanghai or Hong Kong, who dealt with everyday affairs of the firm. This arrangement had been in practice since the early years of the firm up to the present.
Notable Jardines Managing Directors or Tai-pans included Sir Alexander Matheson, 1st Baronet
Sir Alexander Matheson, 1st Baronet
Sir Alexander Matheson, 1st Baronet , was a Scottish businessman and long-standing Liberal Member of Parliament.Matheson was the nephew of Sir James Matheson, 1st Baronet, and a partner in the family firm of Jardine Matheson...
, David Jardine, Robert Jardine
Sir Robert Jardine, 1st Baronet
Sir Robert Jardine, 1st Baronet was a Scottish businessman and Liberal politicianJardine was born at Edinburgh the son of David Jardine of Muir House, Lockerbie, Dumfries and his wife Rachel Johnstone...
, William Keswick, James Johnstone Keswick, Ben Beith, David Landale, Sir John Buchanan-Jardine, Sir William Johnstone "Tony" Keswick
Keswick family
The Keswick family are a business dynasty of Scottish origin associated with the Far East since 1855 and in particular the conglomerate Jardine Matheson....
, Sir Hugh Barton
Hugh Barton
Sir Hugh David MacEwen Barton was a former Chairman and Managing Director of Jardine, Matheson & Co. from 1953 to 1963....
, Sir Michael Herries
Michael Herries
Sir Michael Alexander Robert Young-Herries MC was the Chairman and Managing Director of Jardine Matheson & Co...
, Sir John Keswick, Sir Henry Keswick
Henry Keswick
Sir Henry Neville Lindley Keswick is a Scottish businessman. He was educated at Eton College and Trinity College, Cambridge.Henry married Tessa, Lady Reay, younger daughter of the late Simon Fraser, 15th Lord Lovat in 1985...
, Simon Keswick
Simon Keswick
Simon Lindley Keswick is a Scottish businessman and the younger brother of Sir Chips Keswick and Sir Henry Keswick.He is a director of Matheson & Co Ltd , Fleming Mercantile Investment Trust, Hanson plc, Jardine Lloyd Thompson Group plc. and the Mandarin Oriental Hotel Group...
and Alasdair Morrison
Alasdair Morrison (Jardine's)
Alasdair Morrison is a Senior Advisor for Citigroup, a Non-Executive Director of Pacific Basin Shipping and a member of the Asia-Pacific Advisory Board of Bloomberg. He is also a member of the Grosvenor board of directors, and a member of the board of directors of the MTR...
. There was a point in time in the early 20th century that the firm had two 'Tai-pans' at the same time, one in Hong Kong and one in Shanghai, to effectively manage the firm's extensive affairs in both locations. Both tai-pans were responsible only to the senior partner or proprietor in London who was normally a retired former tai-pan and an elder member of the Jardine family.
Today, the Jardine Matheson Group
Jardine Matheson Holdings
Jardine Matheson Holdings Limited often referred to as Jardines, is a multinational corporation incorporated in Bermuda and based in Hong Kong. While listed on the London Stock Exchange and the Singapore Exchange, the vast majority of Jardines shares are traded in Singapore...
is still very much active in Hong Kong, being one of the largest conglomerates in Hong Kong and its largest employer, second only to the government. Several landmarks in present day Hong Kong are named after the firm and the founders Jardine and Matheson like Jardine's Bazaar
Jardine's Bazaar
Jardine's Bazaar is a road located in Causeway Bay, Hong Kong. The road was named after William Jardine, when Jardine Matheson acquired the land in the area. The road ends at the junction of Hennessy Road, Yee Wo Street, Jardine's Crescent and Lockhart Road...
, Jardine's Crescent, Jardine's Bridge, Jardine's Lookout
Jardine's Lookout
Jardine's Lookout is a mountain and a residential area on the Hong Kong Island in Hong Kong. It is located Southeast of the Wan Chai district and South of the Tai Hang area, at an altitude of about 433 metres. Nearby hills include Mount Nicholson, Violet Hill and Mount Butler etc.It is named after...
, Yee Wo Street
Yee Wo Street
Yee Wo Street is a street in East Point and Causeway Bay, Hong Kong Island, Hong Kong. Its junction with Hennessy Road is one of the busiest junctions in Hong Kong.-Name:...
, Matheson Street, Jardine House
Jardine House
Jardine House , formerly known as Connaught Centre , is an office tower in Hong Kong. The building is located at 1 Connaught Place, Central on the Hong Kong Island. It is owned by Hongkong Land Limited, a subsidiary of Jardines. At the time of its completion in 1972, Jardine House was the tallest...
and the Noon Day Gun. Jardines is also active in China, North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, the Middle East
Middle East
The Middle East is a region that encompasses Western Asia and Northern Africa. It is often used as a synonym for Near East, in opposition to Far East...
and parts of Africa
Africa
Africa is the world's second largest and second most populous continent, after Asia. At about 30.2 million km² including adjacent islands, it covers 6% of the Earth's total surface area and 20.4% of the total land area...
. It went through several major internal changes throughout the 19th and 20th century. In 1947, a secret Trust was formed by members of the family to retain effective control over the company. Jardine, Matheson and Co. offered its shares to the public in 1961 under the tenure of Sir Hugh Barton and was oversubscribed 56 times. The Keswick family, in consortium with several London-based banks and financial institutions, bought out the controlling shares of the Buchanan-Jardine family in 1959, but subsequently sold most of the shares during the 1961 public offering, retaining only about 10% of the company. The company had its head office redomiciled to Bermuda
Bermuda
Bermuda is a British overseas territory in the North Atlantic Ocean. Located off the east coast of the United States, its nearest landmass is Cape Hatteras, North Carolina, about to the west-northwest. It is about south of Halifax, Nova Scotia, Canada, and northeast of Miami, Florida...
in 1984 under the tenure of Simon Keswick to maintain control after nearly being taken over by Chinese tycoon Li Ka-shing of Cheung Kong after a hostile raid in 1980. Li, who bought nearly 20% of the company at that time the largest shareholding in the company, agreed to sell his shares to Hongkong Land, a sister company of Jardines, at a premium. Another reason for the move was fear of the Chinese take-over of Hong Kong and the threat of Chinese retaliation for Jardines drug smuggling past. Subsequent events led to the cross-shareholding structure between Jardine, Matheson & Co. and Hongkong Land which was first instigated in 1980 by then taipan David Newbigging. In 1988, instigated by Brian Powers, the first American taipan of Jardines, the entire corporate structure of Jardine, Matheson & Co., including all its allied companies, were restructured so that a holding company based in London and controlled by the Keswick family
Keswick family
The Keswick family are a business dynasty of Scottish origin associated with the Far East since 1855 and in particular the conglomerate Jardine Matheson....
would have overall policy and strategic control of all Jardine Matheson Group companies. The firm delisted from the Hong Kong Stock exchange (Hang Seng Index
Hang Seng Index
The Hang Seng Index is a freefloat-adjusted market capitalization-weighted stock market index in Hong Kong. It is used to record and monitor daily changes of the largest companies of the Hong Kong stock market and is the main indicator of the overall market performance in Hong Kong...
) in 1994 under the tenure of Alasdair Morrison and placed its primary listing in London and its secondary listing in Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
. The present Chairman of Jardine Matheson Holdings Ltd. is Sir Henry Keswick, who is based in the UK, was the company's tai-pan from 1970 (aged 31) to 1975 and was the 6th Keswick to be tai-pan of the company. His brother, Simon, was the company's taipan from 1983 to 1988 and is the 7th Keswick to be tai-pan. Both brothers are the 4th generation of Keswicks in the company. The firm's present managing director or tai-pan is Anthony Nightingale who is based in Hong Kong. The organizational structure of Jardines has changed almost totally, but the members of the family of Dr. William Jardine still control the firm through a complex cross-shareholding structure, several allied shareholders and a secretive 1947 Trust.