Auction Articles

Although Sotheby’s in London dates to 1744, their presence in America did not commence until 220 years later. However, that is not to say that there were no prestigious auctioneers or auction galleries in America prior to Sothebys. In fact, there were many excellent American auction galleries and auction “rooms” in major cities such as New York, Boston, Philadelphia and later, Chicago. Dunnings outside of Chicago was in business for 100 years before selling to Butterfields in California (Which recently was purchased by ebay). Freeman’s in Philadelphia has operated for 2 centuries and is still in business today.

Our case study starts with the American Art Association which was formed by James F. Sutton, R. Austin Robertson and Thomas E. Kirby in 1883 for the encouragement and promotion of American Art. It started to have sales and exhibits of art and literature in 1885 at 6-8 East 23rd St. The leased space was a room 46’ x 36’ with adjoining offices. The space was called the American Art Gallery and it was located just down the street from the National Academy of Design.

James Fountain Sutton was the son-in-law of Rowland Macy whose Department store is well known to this day. Sutton was an admirer of contemporary paintings and Oriental porcelains. He was not very successful himself as a retailer of antiques. He tried to sell the imports of his new venture partner R. Austin Robertson prior to meeting with the last partner, auctioneer Thomas Kirby.

American Art Association on E. 23rd St. at Madison Square opened doors in 1883 – in the neighborhood of the old railroad terminal at 26th St. that was transformed by P.T. Barnum into an entertainment center and renamed Madison Square Garden in 1889.

NYC was a boom town in the 1880’s. It was an industrial center with a population of 1.3 million – almost evenly divided between native born and immigrants. There was a lot of new and old money able to be used for collecting & dealing. This was a time of great excitement and pride in the city. John Roebling’s great suspension bridge was opened between NYC and Brooklyn, then the world’s longest span. (Brooklyn Bridge).

When the Metropolitan Bank in New York failed and was forced to sell it’s extensive art collection it was young auctioneer Thomas E. Kirby who convinced the partners to conduct the auction as an “important artistic, cultural and social event far removed from the often questionable and shoddy practices of most auctioneers in the city at that time.”

The auction, the first by the American Art Association, was a great success. True to the American spirit of free enterprise, the auction was without reserves. The positive reviews set the stage for additional high profile “No Minimum, No Reserve” auctions.

In 1892 R. Austin Robertson retired from the American Art Association followed by James E. Sutton in 1895.

Auctioneer Kirby, assisted by Rose Lorenz who managed the setup of the exhibitions and catalogs, maintained a reputation for the best auctions in NYC for a period of 40 years. The American Art Association’s high standards for exhibiting and cataloging art and antiques positioned them for handling all of the major collections in America for decades.

Although exhibits and ordinary auctions were still held at the East 23rd St. location, the major auctions were held at Chickering Hall. Located at 5th Ave. and 18th St.. Chickering Hall had a large auditorium needed to handle the elaborate displays and large crowds. Later, as the commercial center of the city moved North, Mendelssohn Hall at Broadway and Fourteenth St. was utilized. This area was known as the “Tenderloin District”. During the 1903 exhibition and auction of Mrs. S.D. Warren’s collection of Barbizon paintings, police patrolled the area. The police were to “protect the elegant auction-goers from the unsavory characters who frequented the area.” Later, the large, important auctions were held still further North at the Plaza Hotel on Fifth Avenue and Central Park South.

By 1922 auctioneer Thomas Kirby, truly a top “Knight of the Hammer”, had knocked down some $60 million dollars worth of art, antiques, rare books and jewelry. This American auctioneer and founding partner would yield his gavel to Cortlandt Field Bishop. Bishop was a wealthy collector well known in New York Society. It was Bishop that brought in two people whose names are familiar to us today. The two men were Hiram Parke and Otto Bernet. The new team was determined to build on the national reputation of their predecessors and continue to dominate the American auction industry with stellar auctions.

To remain the premier auction company in America, the American Art Association had to retain its position, which was being threatened by competition. Although there were prominent auction houses in Boston and Philadelphia, the main competition was from another growing New York City auction firm.

Anderson Galleries, originally a book auction firm, was by 1917 aggressively pursuing major art and antique collections under the direction of Mitchell Kennerly. They resided in the ornate and conveniently located former headquarters of the Arion Society after the German social organization ceased operation during World War I.

Kennerly was a dynamic figure – a publisher, patron of the arts and bibliophile. His auction facility was located at Park Avenue and Fifty-ninth Street. Through aggressive marketing he was able to land some major exhibits and auction sales. In 1921 there was a successful one-man show of Alfred Stieglitz’s photographs, followed by an auction of American paintings by Marsden Hartley. Stieglitz proceeded to open his photo gallery in one of Anderson Galleries rooms in 1925.

Several major collections were handled by Anderson that would have otherwise been sold by the American Art Association during the first quarter of the Twentieth Century. One such auction was the 1926 sale of the Viscount Leverhulme collection. The competition between the two galleries was keen which led to the purchase of Anderson Galleries by the American Art Association.

Anderson Galleries was purchased for $417,500 in 1927. Both firms operated at their respective addresses for the next 2 years. The new name became American Art Association – Anderson Galleries, Inc. By 1929 all operations were consolidated into 30 East Fifty-seventh Street.

The roaring 20’s fueled collecting and prices were strong until the great depression wreaked havoc with the art and antiques markets. A combination of economic downturn, the death of Bishop in 1935 and infighting between the combined staffs of both former companies set the stage for losses and change.

The change came suddenly as a result of Bishop’s widow trying to bring Mitchell Kennerly back to oversee the operation and turn the company around. Parke and Bernet, along with all the other key management resigned to form a new company.

Parke and Bernet courageously started Parke-Bernet Galleries, Inc. in 1937 without capital, facility or any previously booked auctions. Two months later they conducted their first auction in temporary quarters, 742 Fifth Avenue. It was a success.

Otto Bernet was a hard working businessman who complimented the popular auctioneer Hiram Parke. Supporting the pair were some top-notch associates including book specialist Arthur Swann (I do not know if Swann had anything to do with today’s Swann Galleries specializing in book auctions in Manhattan), and a print specialist Anthony Bade. Success was dependent on other talented individuals such as expert art cataloguer and Cambridge graduate Leslie Hyam. Mary Vandegrift supervised the publication of the great catalogs that were produced for each auction. Louis Marion apprenticed under Bernet as auctioneer. (Louis’ son, John Marion would become the president and chief executive of Sothebys in 1972).

Parke-Bernet, Inc. was so successful that within one year of startup they purchased the remaining assets of the floundering American Art Association – Anderson Galleries, Inc. and moved “home” to 30 East 57th Street. They sustained a reputation as being the premier auction house in America for selling art, jewelry, literary property and furnishings. Global events fueled their business.

At a time when Word War II was raging in Europe and the far East circumstances and location made Parke-Bernet, Inc. the fastest growing auction firm in the world. The war had brought death to the International art trade. The stability of New York City brought many exhibits and auction sales.

One of the most outstanding exhibits was featured in 1942 where French furniture and decorative arts were showcased as a benefit for American Women’s Volunteer Services. The annual Art Treasures Exhibition was held at Parke-Bernet, Inc. presenting the very best in antiques and accessories.

Leslie Hyam, auctioneer Louis Marion and Mary Vandegrift became responsible for operations upon the death of Otto Bernet in 1945. Hiram Parke retired in 1950 and passed away in 1957.

Once again there was change as the new leadership moved operations up-town to 980 Madison Avenue between Seventy-sixth and Seventy-seventh Streets. Here the firm prospered with major auctions such as the “Lurcy” and “”Foy” collections, the Museum of Modern Art benefit auction and the great collection of Old Masters paintings sold from the Erickson collection.

In a time of global restoration and growth and relaxed international trade restrictions, auction firms in other countries were becoming competition to Parke-Bernet, Inc. In fact, several European auction houses opened their doors in New York.

1964 marks the year that Sotheby’s, the English auction house, purchased the American auction house of Parke-Bernet, Inc. changing the name to Sotheby Parke Bernet. Peregrine Pollen led the new team of experts and specialists to American soil to start building the company that we know today as Sothebys.

It appears that American creativity and entrepreneurial expertise in a free market and competitive system were responsible for building a foundation for the British firm of Sothebys to buy into and expand on. One of the obvious changes, true to the English spirit, was the addition of market “controls”. Printed estimates and reserves are the norm with Sothebys as well as the other contemporary English auction houses of Christies and Phillips. The American free spirited auction system was satisfied with prices being determined by competition between the buyers. Where as, the auction houses from the United Kingdom relied more on their experts dictating the base bids buried somewhere within their estimates. Now the question is, what changes lie ahead?

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