A. C. Ernst
A. C. Ernst was born with or early acquired a genius for mathematics. It was a genius with a practical turn for commercial life. Though he did not pose as such, he was an efficiency expert and business systematizer long before those phrases were in common use. As an auditor and certified public accountant he did important work on his own responsibility in Cleveland a number of years ago but his ambitions were not satisfied by the restrictions of a completely personal service and he used his ability and experience to organize a concern of his own. Through his energy and versatile talents has been built up the organization known nationally if not internationally as Ernst & Ernst, certified public accountants, with offices in a dozen American cities and with business connections all over the country.
At Cleveland, where the nucleus of the business began, the offices of the firm are in the Schofield Building. The firm also has offices and completely equipped staffs and organizations in New York, Chicago, Boston, St. Louis, Detroit, Pittsburgh, Cincinnati, Dallas and Houston. A business like this is based not only on technical expertness, but like every other permanent commercial enterprise, upon the solid rock of integrity. Ernst & Ernst have long enjoyed the confidence of the leading financial, mercantile and manufacturing interests of America. Their services have been retained for confidential investigations and in an advisory capacity, and they have also done much public investigation. Rapid changes in methods of financing and the increased demands for certified financial statements in matters of credit caused the certificates and reports of Ernst & Ernst to enjoy increased prestige and standing in the great financial centers.
Cleveland takes proper pride in claiming one of America's foremost public accountants. He was born at Cleveland and is a son of John C. and Mary (Hertel) Ernst. He grew up in Cleveland, attended the public schools, the West High School and a business college. He was regarded as an expert accountant before he reached his majority and he has concentrated all his enthusiasm and ambition upon one vocation and has never done anything else, having devoted all of his energy since leaving technical school to the accounting profession. He is managing partner of the firm Ernst & Ernst.
Mr. Ernst is a member of the Automobile Club of America, the Bankers Club and the Railroad Club, all of New York City, the Business Men's Club of Cincinnati, the Toledo Club of Toledo, and the Union Club, Mayfield Country Club, Hermit Club, Cleveland Athletic Club and the Western Reserve Club, all of Cleveland, and the Cleveland Chamber of Commerce. He is a member of the Ohio Society of Certified Public Accountants and the American Institute of Accountants. A certificate as certified public accountant was issued to him by the State of Missouri, as well as by many other states where the firm does an extensive business.
When Mr. Ernst first organized the firm of Ernst & Ernst, it was barely known outside of Cleveland, but from modest beginnings its work has been extended and is accepted as authority in practically every large city and state. Many commissions of national interest and importance have been given this firm. An honor shared by the firm and especially by Mr. A. C. Ernst was his appointment as secretary of the Red Cross Ohio flood Relief Commission, following the great floods in Southern Ohio. Governor Cox gave him this appointment in April, 1913. He had the burdensome responsibility of organizing a system of accounting and reports whereby all the funds would be accurately and systematically accounted for. The system he devised not only met every requirement of the emergency situation, but was also approved later by the auditors of the Treasury Department at Washington.
This firm had the investigation of the financial affairs of "the first apostle," Alexander Dowie of Zion City, Illinois. They examined the affairs of the Cincinnati Trust Company, Cox's Bank, and made the disclosures which followed the investigation. They investigated the old Cleveland Electric Railway Company, and Mr. Ernst's important testimony given before Judge R. W. Tayler in the United States Circuit Court, led to the appointment of receivers. The firm disclosed the famous "fare box scandal," in which the late Mayor Tom L. Johnson of Cleveland was interested. They were appointed the first auditors of the Cleveland Railway Company, representing the City of Cleveland under the now famous 3 cent fare franchise. They made complete investigation and rendered expert testimony in the notable patent litigation suit, Vulcan Detinning Company vs. American Can Company, which led to one of the largest awards ever handed down in a patent litigation suit. They handled the complete investigation of the affairs of the Pope Motor Company of Hartford, Conn., under receivership, together with many subsidiary companies in other cities, including the plant at Toledo, later purchased by the Overland automobile Company. They also investigated the East Ohio Gas Company during its negotiations with the City of Cleveland for a natural gas franchise. Probably one of the most important accounting undertakings due to the war was that in connection with the affairs of the International Mercantile Marine Company with its large number of subsidiary companies in this country as well as in England and other foreign countries. Mr. Ernst was retained by the Preferred Shareholders Protective Committee to defend the preferred shareholders against the threatened foreclosure by the bond holders. As a result of this investigation the foreclosure of the bonds was prevented and both the preferred and common shares rose in the stock market from practically nothing to very high values. The capitalization represented by the parent and subsidiary companies was in excess of $200,000,000.
Mr. Ernst is a member of the board of directors of a number of important corporations. Not all his work is done in the field of business. He is one of Cleveland's most charitable and philanthropic citizens. He is one of the fiscal trustees of the Young Women's Christian Association. He is a trustee of the Windermere Presbyterian Church and no important charitable or philanthropic campaign in Cleveland has failed to find him giving his time and money to aid a worthy cause.
From Cleveland - Special Limited Edition, The Lewis Publishing Company, Chicago & New York, 1918 v.1