Alwin C. Ernst
Alwin C. Ernst | |
|---|---|
| Born | Alwin Charles Ernst July 26, 1881 |
| Died | May 13, 1948 Cleveland, Ohio, US |
| Nationality | American |
| Education | Business college |
| Occupation(s) | Accountant, racehorse owner and breeder |
| Known for | Co-founder, Ernst & Ernst |
| Children | 4 daughters |
Alwin C. Ernst, also known as Alvin C. Ernst[1] and A. C. Ernst[2] (CPA) (July 26, 1881 – May 13, 1948), was an American businessman who co-founded the accounting firm of Ernst & Ernst, in 1903, and who is credited with devising management consulting.
Biography
[edit]Alwin Charles Ernst was born July 26, 1881, to John C. and Mary (Hertel) Ernst, in Cleveland, Ohio.[3] He had, among his siblings, an older brother, Theodore C. Ernst (September 23, 1869[4] – 3 October 1946[5]). After finishing high school, Ernst took evening courses at a business college.[6]
Career
[edit]In 1900, he and his older brother, Theodore, began working as bookkeepers[6] at The Audit Co. in Cleveland.[6][7] In 1903, the brothers founded the Ernst & Ernst bookkeeping service with an invested capital of $500.[7]
Ernst created the firm's "Special Services Department" in 1908, noted as "the predecessor of current management-consulting services."[8] He is credited with pioneering the concept of using financial accounting data to inform business decisions, as well as with creating management consulting.[9]
Aggressive and ambitious, Ernst had already opened offices in Chicago by 1908 and in New York City by 1909.[8] He obtained an Ohio Certified Public Accountant (CPA) certificate in 1910,[8] and continued a rapid expansion, adding offices in Cincinnati in 1911, and in St. Louis in 1913, growing the firm's locations to 16 offices by 1919, then 26 offices and by 1929.[8]
Ernst advertised and solicited new clients, in violation of Ohio state board rules; along with two of his partners, he resigned from the American Institute of CPAs (AICPA) when it acted against the firm for its brand of advertising.[8] Ernst never rejoined the AICPA.[10]
In April 1913, Governor James M. Cox appointed Ernst secretary of the Red Cross Ohio Flood Relief Commission, following the Great Flood of 1913 in Southern Ohio.[2]
Thoroughbred racing
[edit]Ernst owned and bred thoroughbred racehorses, primarily those that ran in sprint races. Among his best horses was multiple stakes winner Alorter whose wins included the 1943 Cowdin Stakes.[11] Ernst also bred Algasir, dying prior the horse winning the 1948 Cowdin Stakes and the Flash Stakes, and setting a world record for four furlongs.[12]
Death and legacy
[edit]Ernst was buried at Knollwood Cemetery in Mayfield Heights, Ohio.[13]
He was noted as "one of Cleveland's most charitable and philanthropic citizens."[3]
After Ernst's death, his estate was inherited by his four daughters and, in August 1948, they sold most of his racing stable through an auction at Saratoga Race Course. There, Algasir was purchased by F. Ambrose Clark for US$106,000.[14]
References
[edit]- ^ Tesser, Ted (23 October 2012). The New Trader's Tax Solution: Money-Saving Strategies for the Serious Investor By Ted Tesser. John Wiley & Sons. p. 73. ISBN 9781118538111. Retrieved 6 December 2020.
A. C. Ernst
- ^ a b Cleveland. Lewis publishing Company. 1918. p. 221.
- ^ a b Elroy McKendree Avery (1918). A History of Cleveland and Its Environs: The Heart of New Connecticut, Volume 2. Cleveland, Ohio: Lewis publishing Company. p. 400. Retrieved 5 December 2020.
- ^ Elroy McKendree Avery (1918). A History of Cleveland and Its Environs: The Heart of New Connecticut, Volume 2. Cleveland, Ohio: Lewis publishing Company. p. 508. Retrieved 5 December 2020.
- ^ "Accountant Dies". The Salem News. newspapers.com. 1946-10-04. Retrieved 5 December 2020.
- ^ a b c Ernst & Young Guardian, 26 October 2002
- ^ a b "Alwin & Theodore Ernst Biography". accounttown.com. AccountTown. Retrieved 2020-12-05.
- ^ a b c d e "Ernst & Young". case.edu. 11 May 2018. Retrieved 2020-12-09.
- ^ "Alwin C. Ernst House". clevelandhistorical.org. Retrieved 2020-12-03.
- ^ Zeff, Stephen A. (September 2013). "How the U.S. Accounting Profession Got Where It Is Today: Part I" (PDF). Accounting Horizons. 17 (3): 191. Retrieved 10 December 2020.
- ^ Field, Bryan (16 September 1943). "Alorter Scores Upset Victory in Cowdin Stakes – $35.90 for $2 Shot Triumphs by a Head – Alorter Closes Strongly to Beat Ogham in Juvenile Field at Aqueduct – Racing to Aid War Loan – Belmont Futurity Day Oct. 2 Set Aside – Admission to the Track by Bond Purchase". New York Times. p. 28. Retrieved December 5, 2020.
- ^ Sports of the Times; Looking Over the Field New York Times, 4 April 1949
- ^ "Alwin C. Ernst". The Plain Dealer. May 15, 1948. p. 6.
- ^ Gelding Brings $106,000 at Saratoga Sale Los Angeles Times, 22 August 1948