|Roger W. Babson|
Babson pictured in The Babsonian 1920, Babson yearbook
July 6, 1875|
Gloucester, Massachusetts, USA
|Died||March 5, 1967
Lake Wales, Florida, USA
|Occupation||Entrepreneur, Businessman, Economist, Writer, Philanthropist|
|Known for||Business forecasting, founding of universities, predicting Wall Street Crash of 1929|
|Political party||Prohibition Party|
|Spouse(s)||Grace Margaret Knight (m. 1900 - d. 1956)
Nona M. Dougherty (m. 1957 - d. 1963)
|Children||Edith Low Babson|
|Parents||Nathaniel Babson and Ellen Starns|
Roger Ward Babson (July 6, 1875 – March 5, 1967), remembered today largely for founding Babson College in Massachusetts, was an entrepreneur and business theorist in the first half of the 20th century. He also founded Webber College, now Webber International University, in Babson Park, Florida, and the defunct Utopia College, in Eureka, Kansas.
He was born to Nathaniel Babson and his wife Ellen Stearns as part of the tenth generation of Babsons to live in Gloucester, Massachusetts. Roger attended Massachusetts Institute of Technology and worked for investment firms before founding, in 1904, Babson's Statistical Organization, which analyzed stocks and business reports. It continues today as Babson-United, Inc..
On March 29, 1900, Babson married his first wife, Grace Margaret Knight.
According to biographer John Mulkern, Babson attributed the business cycle
- to Sir Isaac Newton's law of action and reaction.... His pseudoscientific notion, that the laws of physics account for every rise and ebb in the economy, had no more validity than [astrology or alchemy]. But just as astrology gave birth to astronomy and alchemy to chemistry, so, too, did Babson's efforts to explain the economic cycle... lead to the economic breakthrough that revolutionized the business of economic forecasting.
Babson authored more than forty books on economic and social problems, the most widely read being Business Barometers (eight editions) and Business Barometers for Profits, Security, Income (ten editions). Babson also wrote hundreds of magazine articles and newspaper columns. He was a popular lecturer on business and financial trends.
Babson was an investor and sometimes director of many corporations, including some traded on the New York Stock Exchange. He established an investment advisory company Babson's Reports which published one of the oldest investment newsletters in America.
Babson had "ten commandments" he followed in investing and encouraged his readers to do the same. These were:
- Keep speculation and investments separate.
- Don't be fooled by a name.
- Be wary of new promotions.
- Give due consideration to market ability.
- Don't buy without proper facts.
- Safeguard purchases through diversification.
- Don't try to diversify by buying different securities of the same company.
- Small companies should be carefully scrutinized.
- Buy adequate security, not super abundance.
- Choose your dealer and buy outright (i.e., don't buy on margin.)
On September 5, 1929, he gave a speech saying, "Sooner or later a crash is coming, and it may be terrific." Later that day the stock market declined by about 3%. This became known as the "Babson Break". The Wall Street Crash of 1929 and the Great Depression soon followed.
Babson was the Prohibition Party's candidate for President of the United States in 1940. Election was won by incumbent President Franklin Delano Roosevelt of the Democratic Party. Babson was surpassed by two other unsuccessful candidates:
- Wendell Lewis Willkie of the Republican Party.
- Norman Mattoon Thomas of the Socialist Party of America.
In the late 1920s Babson filed several patents for a parking meter. The meters were suggested to operate on power from the battery of the parking vehicle and required a connection from the vehicle to the meter. In 1932 Carl Magee began to work on the parking meter and since his parkeng meter was the first to be installed for actual use on July 1935 in Oklahoma city, Magee is known as the inventor of the parking meter.
Babson founded the Gravity Research Foundation in 1948. The Foundation established a research facility in the town of New Boston, New Hampshire after Babson determined that this location was far enough away from the city of Boston, Massachusetts to survive a nuclear attack.
Babson was interested in the history of an abandoned settlement in Gloucester known as Dogtown. To provide charitable assistance to unemployed stonecutters in Gloucester during the Great Depression, Babson commissioned them to carve inspirational inscriptions on approximately two dozen boulders in the area surrounding Dogtown Common. The Babson Boulder Trail exists today as a well-known hiking and mountain-biking trail. The inscriptions are clearly visible. The boulders are scattered, not all are on the trail, and not all of the inscriptions face it, making finding them something of a challenge. Samples of some of the two dozen inscriptions include: "HELP MOTHER", "SPIRITUAL POWER", "GET A JOB", "KEEP OUT OF DEBT", and "LOYALTY".
- Babson-United, Inc. "Babson-United". Babson-United, Inc. Retrieved 2007-05-22.: A Short History of Roger L. Babson's firm
- John Mulkern (1994). "Continuity and Change: Babson College, 1919-1994". Babson College Archives and Special Collections. Retrieved 2006-09-25.
- Ken Fisher, 100 Minds That Made the Market, Wiley, 2007, pages 129-132.
- US patent 1,731,839
- Jon Mooallem (2007, October). A curious attraction. Harper's Magazine, 315(1889), pp. 84-91.
- Eric Bickernicks. "The Babson Boulders". Eric Bickernicks. Retrieved 2006-09-25.: Photos of boulders, downloadable PDF map of boulders with GPS coordinates, image of Roger Babson
- "The Babson Boulders at Dogtown". Cape Ann Web. Retrieved 2006-09-25.
- Grace Knight Babson died on this date (April 30, 1956)
- Nona Dougherty Babson born April 28, 1889
- Actions and Reactions, autobiography by Roger W. Babson