McDonogh and Payne.

John McDonogh arrived in New Orleans in 1800 and William O. Payne followed in 1801. Both men were associates of William Taylor, a prominent merchant in Baltimore. In August, 1801, with capital supplied by Taylor, they formed the firm of McDonogh and Payne to act as commission merchants, selling goods (including hardware, tableware, dry goods, and groceries) shipped to New Orleans by Taylor. Because of economic uncertainties, among other factors, Payne sold his interest in the company to McDonogh in August, 1802, and left New Orleans to work with the merchant John Forbes. Payne died in 1804.

Following Payne's departure McDonogh, along with Shepherd Brown, formed two new businesses: John McDonogh, Jr. and Company and Shepherd Brown and Company. The former concern carried on the original business of the McDonogh and Payne firm, while Shepherd Brown and Company handled the developing western trade.