Business: Ad House Merger

Shortly after he lost his fortune in the Black Friday panic brought on by Jay Gould’s gold corner in 1869, the late Berlin-born Albert Frank, then a banker, happened to suggest to a steamship line that it advertise its transatlantic service. Because the advertising drew passengers, he suggested to his banker friends that they advertise their services, helped them write their copy. Because the copy brought customers, Albert Frank founded in 1872, one of the first financial advertising agencies in Wall Street. Successfully fighting the prejudice of the times against advertising by bankers & brokers (it was thought undignified), he waxed rich, was able to indulge his taste for reading in 13 languages. Before he died he saw his agency at the forefront of its highly specialized field.

In the same year that Albert Frank founded his firm, Rudolph Guenther was born in Vienna, the son of a philologist. His father immigrated to the U. S., be came managing editor of the Milwaukee Herald. Son Rudolph grew up in the circulation and advertising offices of news papers, at 16 established the Lake View (Ill.) Review with his brother Louis as staff. Brother Louis Guenther is now publisher of The Financial World. Rudolph ventured to Manhattan with capital of $3 in 1896, set himself up as an advertising agent the following year. Like Albert Frank he prospered, now collects rare books, manuscripts. In 1919 he merged with Russell Law under the name Rudolph Guenther-Russell Law, Inc. Last week it was announced that these two famed firms would merge. Chairman of Albert Frank-Rudolph Guenther-Russell Law, Inc. will be Adman Guenther. President will be Albert Frank’s present head, able Frank James Reynolds, onetime newshawk, onetime West Pointer. The financial agency differs from the general agency chiefly in that its eye is ever focused on saving and investment, not upon greater & greater consumption. While the big financial agencies are tending to diversify (most also handle general advertising accounts) the bulk of their business is handling house and institutional advertisements, and in the advertising of new security issues. Financial agencies are specially geared to handle new issue advertisements, which must be placed in all important dailies from coast to coast often at a few hours notice. Like many general agencies they handle publicity for their clients. All advertising of member firms must be submitted to New York Stock Exchange authorities for approval. Illustrations and gaudy layouts are strictly barred.