Babbitt Brothers Trading Company

The Babbitt Brothers developed one of the largest and most influential business operations in northern Arizona. The enterprise was originally founded by Edward, George, William and Charles Babbitt. The C.O. Bar Livestock Company was their first business, founded shortly after David Babbitt arrived in Flagstaff from Ohio in 1886. The Babbitt Brothers Trading Company was established as a partnership in 1889 and incorporated in 1918 with branches in Williams, Winslow, Page, Holbrook and at the Grand Canyon. The company's interests included Indian trading, cattle and sheep ranching, real estate and loans and general mercantile and freighting.

From the description of Babbitt Brothers Trading Company, 1888-1970. (Nogales-Santa Cruz County Public Library). WorldCat record id: 45098843

The Babbitt Brothers developed one of the largest and most influential business operations in Northern Arizona. The brothers who originally founded these enterprises were Edward Babbitt, George Babbitt, William Babbitt, and Charles Babbitt. The C.O. Bar Livestock Company was their first business enterprise, founded shortly after David Babbitt arrived in Flagstaff from Cincinnati, Ohio (C.O. Bar) in 1886. The Babbitt Brothers Trading Company was established as a partnership in 1889 and incorporated in 1918 with branches in Williams, Winslow, Page, Holbrook, and the Grand Canyon. The company's interests included Indian trading, cattle and sheep ranching, real estate and loans, general mercantile, and freighting.

According to the articles of incorporation, the principle Babbitt Brothers Trading Company offices were to be located in Flagstaff, Arizona. The charter of incorporation was granted for twenty-five years. The various trading posts were incorporated separately. On October 7, 1918, the Board of Directors voted to transfer and assign all assets and liabilities of the Babbitt Brothers Mercantile Company in Winslow to the Babbitt Brothers Trading Company in exchange for 1,245 shares of the Trading Company stock. The Polson Company of Williams bought 1,245 shares in the Trading Company. Frank Polson was interested in disposing of his interests in his men's furnishings store, and the Babbitt Brothers desired to acquire more property in Williams.

George Babbitt, President of Babbitt Brothers Trading Company, died in 1920. P.J. Moran, long associated with the company, filled the vacancy. Under Moran's direction, the trading company secured loans to finance its activities in the cattle, land, and merchandising businesses. The Rancho San Antonio located near Los Angeles was used as security.

During the seven months between January and August of 1920, business prospered. The company purchased a hotel, store, and a building and garage in Kingman, Arizona. In the early part of 1921, the company found it necessary to obtain another loan. Later in 1921 Babbitt Brothers Trading Company purchased all the capital stock in the Babbitt-Polson Company, thereby gaining control of the Williams company. Financial difficulties due to a regional business depression caused the Babbitt Brothers to secure outside capital from Hunter Dulin and Company of Los Angeles, California and from the War Finance Corporation, but further funds were needed. In February 1922, Babbitt Brothers discounted a Babbitt and Wyrick's note with the Agricultural and Live Stock Loan Company of Albuquerque, New Mexico. The Babbitt Brothers Trading Company seemed to have unlimited credit and obtained several more loans with the Live Stock Loan Company of Albuquerque and War Finance Corporation.

However, the borrowing and the taking in of partners with little or no capital caused debts which nearly destroyed the company during the post-war recession of 1922. Fortunately, the company had some friends amongst the creditors and was saved by selling various family investments. The creditors elected a manger, DeWitt Knox to watch over the business. Mr. Knox had control of the company until 1926, all the while selling investments and property of the Babbitt Brothers Trading Company.

Mr. Knox was replaced with no regrets with H.V."Vic" Watson, whom they felt would have a lighter touch. However, the trimming continued under Vic Watson's hand. Many of the sheep outfits were liquidated along with the Apache Maid and Hashknife holdings. The C.O. Bar and Cataract outfits were actually put up for sale, but they were never sold. It was felt that Vic Watson was as hard, if not worse, than Knox. These feelings led to friction between Vic Watson and Herb Babbitt which eventually led to Herb's dismissal and almost created a breakup in the Babbitt family

During the depths of the depression era, the Babbitts, with the help of Jimmy Babbitt's knowledge of legal proceedings, applied for a loan from the Reconstruction Finance Corporation, hoping to free themselves from creditors and the rule of Vic Watson. In 1935 this loan was approved. By 1940, most of the debt had been paid off, and Watson's power began to ebb. On December 5, 1940, Vic Watson turned in his resignation.

The period of World War II saw additional investments on the part of the Babbitt Brothers: the Navajo Army Depot, Mount Elden Silver Fox Farm, and an Ice Plant. By 1950, the post-war boom hit and the Babbitts were not only quick to modernize but also to realize that competition was on its way. They were going to have to change their survival strategy, focusing entirely on ranching and department stores. This focus continued until the 1980's, when the company realized it had to cut back or continue to be in debt. The Babbitt Bothers Trading Company, one of northern Arizona's leading merchants for nearly a century, had to close its downtown Flagstaff department stores and in six other northern Arizona towns in 1987. The company officially closed their doors in 2002. The family continues to take an active interest in politics, the arts, cultural preservation and the history of Arizona.

For further information on the Babbitt Brothers trading Company operations in Arizona see: "The House of Babbitt" by Rahim Akbarzadeh; "Brothers Five; The Babbitts of Arizona" by Dean Smith; "The C.O. Bar" by Marshall Trimble; and "History of Babbitt Bothers Trading Company" by Frank Turley.

From the guide to the Babbitt Brother Trading Company, 1880-1999., (Cline Library. Special Collections and Archives Department.)