Aaron E. Nusbaum (January 8, 1859July 1, 1936), later Aaron Norman, was an American entrepreneur and philanthropist who is best known as one of the two men who acquired 50% of the stock in the fledgling

Sears, Roebuck and Co. Sears, Roebuck and Co. ( ), commonly known as Sears, is an American chain of department stores founded in 1892 by Richard Warren Sears and Alvah Curtis Roebuck and reincorporated in 1906 by Richard Sears and Julius Rosenwald, with what began as ...

from

Richard Sears Richard Sears may refer to: *Richard Warren Sears (1863–1914), founder of Sears, Roebuck and Co. *Richard Sears (pilgrim) (1595–1676), early settler of Yarmouth, Cape Cod, Massachusetts *Richard Sears (tennis) Richard Dudley Sears (October ...

and started it on the road to becoming a retail giant.

Early career

By 1893 he was a successful businessman in Chicago and earned his first fortune when he obtained a concession to sell soda water soft drinks at the

World’s Columbian Exposition The World's Columbian Exposition (also known as the Chicago World's Fair) was a world's fair held in Chicago in 1893 to celebrate the 400th anniversary of Christopher Columbus's arrival in the New World in 1492. The centerpiece of the Fair, hel ...

. He received the contract by doing a favor for

Marshall Field Marshall Field (August 18, 1834January 16, 1906) was an American entrepreneur and the founder of Marshall Field and Company, the Chicago-based department stores. His business was renowned for its then-exceptional level of quality and customer ...

, a member of the Fair’s planning commission. His profit for the summer’s work was $150,000.00. ($3,750,000.00 in 2010). He invested part of that money in Bastedo Tube Company, a

pneumatic tube Pneumatic tubes (or capsule pipelines, also known as pneumatic tube transport or PTT) are systems that propel cylindrical containers through networks of tubes by compressed air or by partial vacuum. They are used for transporting solid objects, a ...

manufacturer whose product is used to deliver messages and money in department stores between floors and departments. A sales call in 1895 led to his investment in Sears.

Purchase of Sears

In 1895 Nusbaum had a meeting with

, the co-founder of Sears Roebuck and Company. Nusbaum thought the meeting would involve selling pneumatic tubes to Sears however Richard Sears had other plans. The company was short of cash and Sears offered to sell Nusbaum half of the company for $75,000.00. In 1890

Julius Rosenwald Julius Rosenwald (August 12, 1862 – January 6, 1932) was an American businessman and philanthropist. He is best known as a part-owner and leader of Sears, Roebuck and Company, and for establishing the Rosenwald Fund, which donated millions in ...

had married Augusta Nusbaum, Aaron's sister. Nusbaum asked his brother-in-law if he would be willing to buy a quarter of Sears Roebuck for $37,500.00. Rosenwald agreed and they paid Richard Sears $75,000.00 for one-half interest in Sears Roebuck and Company. The sale took place in 1895 and at that time the company was grossing about $800,000.00 a year. By 1900 that figure had grown to $11,000,000.00. In 1901 Sears and Rosenwald had a dispute with Nusbaum, bought him out for $1.25 million and Nusbaum resigned as Secretary and Treasurer. He was succeeded as Secretary by the Company’s outside lawyer,

Albert Henry Loeb Albert Henry Loeb (February 18, 1868 – October 27, 1924) was a Chicago attorney and the former vice president and treasurer of Sears, Roebuck and Co. Loeb was the brother of Jacob Loeb, the former president of the Chicago Board of Education and ...

of Loeb & Adler (now known as

Arnstein & Lehr, LLP Arnstein & Lehr was a national law firm founded in Chicago in 1893, with offices in Chicago, and Springfield, Illinois; Milwaukee, Wisconsin; Boca Raton, Fort Lauderdale, Miami, Tampa, and West Palm Beach, Florida. The firm represented business ...

) who had prepared the papers for Nusbaum’s departure and had also had structured the original sale to Nusbaum and Rosenwald and the incorporation of Sears in Illinois. The decision to oust Nusbaum was difficult for Rosenwald. Despite repeated attempts by his wife Gussie for reconciliation, Nusbaum never spoke again with his brother-in-law or sister.

Later years

After Nusbaum left Sears, he took an extended trip to Europe. On returning, he changed his name to Aaron Norman and his investments added to his wealth. He founded Abacus & Associates, a wealth investment firm, which is still operated by his family. Upon his death in 1936, Nusbaum willed a million dollars to the Assistance Fund, Inc, a New York charitable organization.

References

External links

* {{DEFAULTSORT:Nusbaum, Aaron American businesspeople American philanthropists 1859 births 1936 deaths