The story of Dean Witter's early days in Canada reflects the optimism, confidence and determination which makes this stock brokerage firm an impressive contender in today's highly competitive financial services industry.

Located in corporate offices towering high above the Toronto skyline in the Scotia Plaza, the firm today however, bears little resemblance in appearance to its modest beginnings.

The Dean Witter Canada story begins in 1935, when the world was still wallowing in a severe economic depression. The stock market crash of October 29, 1929 had created pandemonium on Wall Street: forty per cent of all stocks traded on the New York Exchange disappeared in two short weeks, banks failed, and the personal fortunes of hundreds of thousands of Canadians were lost overnight.Some might have said it was not a good time to start a financial business.

Pessimists would have pointed also to the newspaper headlines of the day. Among the headlines were accounts of disasters caused by floods in the American West, earthquakes in India, economic upheaval in France caused by major devaluation of the franc, as well as news about Franklin D. Roosevelt's desperate efforts to salvage his "New Deal" legislation.

Undaunted, a young stockbroker in Montreal quietly took out an $800 ninety-day loan, rented an office for $25, hired his sister as staff, and opened up his own investment firm. The young man was Herbert K. Crabtree, and the date was June 1, 1935. Starting a new venture then was considered "risky business" to say the least, but if a business had to be started, it was as good a day as any. So reasoned this entrepreneur who, since his graduation from college, had already had a successful career in the employ of Montreal-based stockbrokers.

In the first three months of operation, Crabtree had made a profit $800 almost to the penny, enough to pay back his note. Crabtree & Company was up and running. In 1948, the company name changed to Crabtree & McLaughlin when Arthur A. McLaughlin, a stockbroker who had previously spent 15 years with the Financial Publishing Company of Canada, became a partner.

By 1952, the firm was gaining enviable stature in the Canadian financial community: it had opened an office abroad in Geneva, Switzerland, and was now looking for an American correspondent firm to complement their operation. A correspondent firm would provide Crabtree & McLaughlin direct access to the U.S. market, an advantage in the growing North American financial community.
 

1. Herbert K Crabtree, Founder, circa 1935. 2. Toronto Skyline Showing Scotia Plaza, New Office of Dean Witter Reynolds (Canada) Inc.

While assessing several opportunities, one firm's resources became quickly attractive, for it had offices in London and Amsterdam which would complement the services of Crabtree & McLaughlin's Geneva office. The U.S. firm was Baker, Weeks and Co., New York, and appropriate arrangements were quickly made for Crabtree & McLaughlin to become its Canadian correspondent.

Crabtree & McLaughlin enjoyed their increasingly profitable arrangement with Baker, Weeks so much that, in 1955, the two companies merged. While both Messrs. Crabtree and McLaughlin became general partners of the firm, it was Arthur McLaughlin who would later become Chairman and Chief Executive Officer of the worldwide Baker, Weeks & Co. Inc.

When, in 1977, Reynolds Securities acquired Baker, Weeks & Co., the Canadian firm changed its name to reflect its new association with Reynolds. It was a short-lived name however, because soon after, Reynolds merged with Dean Witter & Co., to form the present day Dean Witter Reynolds Inc., the third largest stock brokerage firm in North America.

The optimism, confidence and determination which first made this company a going concern 53 years ago, can still be found in the organization's "esprit de corps". Today, Dean Witter Canada operates as an affiliate of Dean Witter U.S., a member of the Sears Financial Network in the U.S., and has branch offices in Halifax, Montreal, Ottawa, Toronto, North York, Calgary, Edmonton, Victoria, Medicine Hat and offshore in St. Peter's Port, Guernsey, British Channel Islands.

Dean Witter Canada is currently engaged in the retail brokerage of Canadian and U.S. securities and commodities, institutional services, fixed income products, research and underwriting.

In 1987, shortly after the Canadian securities industry was deregulated, Dean Witter U.S. purchased 50 per cent of Dean Witter Canada, vaulting the company into a more capitalized and competitive position which augurs well for its continued growth and expansion in today's increasingly complex marketplace.

And all this started with $800!