William Jardine (24 February 1784 – 27 February 1843) was a Scottish physician, merchant and opium dealer who co-founded the Hong Kong–based conglomerate Jardine, Matheson & Co. Educated in medicine at the University of Edinburgh, in 1802 Jardine obtained a diploma from the Royal College of Surgeons of Edinburgh. The next year, he became a surgeon's mate aboard the Brunswick belonging to the East India Company, and set sail for India. In May 1817, he abandoned medicine for trade.
Jardine was a resident in China from 1820 to 1839. His early success in Canton as a commercial agent for opium merchants in India led to his admission in 1825 as a partner in Magniac & Co., and by 1826 he controlled that firm's Canton operations. James Matheson joined him shortly afterwards with Magniac & Co. reconstituted as Jardine, Matheson & Co. in 1832. After Imperial Commissioner Lin Zexu destroyed 20,000 cases of opium seized from British traders in 1839, Jardine arrived in London that September to press Foreign Secretary Lord Palmerston for a forceful response, which resulted in the First Opium War.
Following his return to Britain from China, between 1841 and 1843, he was Member of Parliament for Ashburton representing the Whig party. Jardine died in 1843, bringing an end to his short political career.
Early life Jardine, one of seven children, was born in 1784 on a small farm near Lochmaben, Dumfriesshire, Scotland. p.18 Online version at Google books His father, Andrew Jardine (abt. 1750- d. 1793), died when he was nine, leaving the family in some economic difficulty. Though struggling to make ends meet, Jardine's older brother David (1776-1827) provided him with money to attend school. Jardine began to acquire credentials at the age of sixteen.
In 1800 he entered the University of Edinburgh Medical School where he took classes in anatomy, medical practice, and obstetrics among others. While his schooling was in progress, Jardine was apprenticed to a surgeon who would provide housing, food, and the essential acquaintance with a hospital practice, with the money his older brother, David, provided.
He graduated from the Edinburgh Medical School on 2 March 1802, and was presented a full diploma from the Royal College of Surgeons of Edinburgh. He chose to join the service of the British East India Company (EIC) and in 1803, at the age of 19, boarded the East Indiaman Brunswick as a surgeon's mate in the East India Company's Maritime Marine Service. Taking advantage of his employee's "cargo privilege", he traded successfully in cassia, cochineal and musk during his 14 years as a surgeon at the firm.
On his first voyage, Jardine met two men who would come to play a role in his future as a drug trafficking merchant. The first was Thomas Weeding, a fellow doctor, and surgeon of the Glatton, one of the other ships in the convoy. The second was 26-year-old Charles Magniac who had arrived in Guangzhou at the beginning of 1801 to supervise his father's watch business in Canton in partnership with Daniel Beale.
By leaving the East India Company in 1817,Grace, Richard J.. "Jardine, William (1784–1843)". Oxford Dictionary of National Biography (2004 ed.). Oxford University Press. . Accessed 29 April 2010. Jardine was able to exploit the opportunity afforded by the company's policy of not transporting opium but contracting the trade out to free traders. Jardine entered into partnership with retired surgeon Thomas Weeding and opium and cotton trader Framji Cowasji Banaji. The firm did well and established Jardine's reputation as an able, steady and experienced private trader. One of Jardine's agents in Bombay, who would become his lifelong friend, was Parsee opium and cotton trader Jamsetjee Jejeebhoy.
Both men were on the Brunswick when the crew of a French ship forcibly boarded her. Jeejeebhoy long continued as a close business associate of Jardine and that a portrait of Jeejeebhoy hung in Jardines' Hong Kong office in the 1990s was tribute to that.
In 1824, a very important opportunity arose for Jardine. Magniac & Co., one of the two most successful agency houses in Canton, fell into disarray. Hollingworth Magniac, who succeeded his brother Charles Magniac after the latter's death in Paris, was in search of competent partners to join his firm as he was intent on leaving Asia.
He was also forced to have his brother, Daniel, resign from the firm after marrying his Chinese mistress. In later years, Jardine had helped Daniel by sending his young son Daniel Francis, his child by his Chinese wife, to Scotland for school. Magniac invited Jardine to join him in 1825 and, three years later, James Matheson joined the partnership.
Magniac returned to England in the late 1820s with the firm in the hands of Jardine and Matheson. Contrary to the practice at the time of retiring partners removing their capital from the firm, Magniac left his capital with the firm in trust to Jardine and Matheson. The firm carried on as Magniac & Co. until 1832 as the name Magniac was still formidable throughout China and India. Magniac wrote of William Jardine:
You will find Jardine a most conscientious, honourable, and kind-hearted fellow, extremely liberal and an excellent man of business in this market, where his knowledge and experience in the opium trade and in most articles of export is highly valuable. He requires to be known and to be properly appreciated.
Jardine, Matheson & Co.
James Matheson joined Magniac & Co. from the firm Yrissari & Co where he was partner. After Francis Xavier de Yrissari's death, Matheson wound up the firm's affairs and closed shop. Yrissari, leaving no heir, had willed all his shares in the firm to Matheson. This created the perfect opportunity for Matheson to join in commerce with Jardine. Matheson proved a perfect partner for Jardine.
James Matheson and his nephew, Alexander Matheson, joined the firm Magniac and Co. in 1827, but their association was officially advertised on 1 January 1828. Jardine was known as the planner, the tough negotiator and strategist of the firm and Matheson was known as the organization man, who handled the firm's correspondence, and other complex articles including legal affairs.
Matheson was known to be behind many of the company's innovative practices. And both men were a study in contrasts, Jardine being tall, lean and trim while Matheson was short and slightly portly. Matheson had the advantage of coming from a family with social and economic means, while Jardine came from a much more humble background.
Jardine was tough, serious, detail-oriented and reserved while Matheson was creative, outspoken and jovial. Jardine was known to work long hours and was extremely business-minded, while Matheson enjoyed the arts and was very eloquent.
William C. Hunter wrote about Jardine, "He was a gentleman of great strength of character and of unbounded generosity." Hunter's description of Matheson was, "He was a gentleman of great suavity of manner and the impersonation of benevolence." But there were similarities in both men. Both men were hardworking, driven and single-minded in their pursuit of wealth.
Both men were also known to have continuously sent money home to less fortunate family members in Scotland and to have helped nephews by providing them work within the firm. Upon the death of his older brother, David, Jardine set up a fund for his brother's widow and arranged schooling for his four sons. In a letter to Magniac, Jardine wrote,
My only Brother has a very large family, three or four of them Boys, and as he has not the means of providing for them all, in the way I wish to see them provided for, I am desirous of having one of them here, to commence in the office, and work his way, by industry and application to business.
All four of David's sons moved on to work with Jardine, Matheson & Co. in Hong Kong and South China, starting as clerks and eventually becoming partners, managing partners or senior executives of the firm, locally known as taipan, a Chinese colloquial title meaning foreign-born senior manager.
But, it was their reputation for business probity, innovative management and strict fiscal policies that sustained their partnership's success in a period where businesses operated in a highly volatile and uncertain environment where the line between success and bankruptcy was extremely thin. Jardine was known for his legendary imperiousness and pride.
He was nicknamed by the locals "The Iron-headed Old Rat" after being hit on the head by a club in Guangzhou. Jardine, after being hit, just shrugged off the injury with dour resilience. He had only one chair in his office in the "Creek Hong" in Canton, and that was his own. Visitors were never allowed to sit, to impress upon them that Jardine was a very busy man.
Jardine was also known as a crisis manager. In 1822, during his visit to the firm's Guangzhou office, he found the local office in management crisis, with employees in near mutiny against the firm's officers. Jardine then proceeded to take temporary control and succeeded in putting the office in order in just a matter of days. Also a shrewd judge of character, Jardine was even able to persuade the Rev. Charles Gutzlaff, a Prussian missionary, to interpret for their ship captains during coastal smuggling of opium, using the idea that the reverend would best gather more converts during these smuggling operations. Matheson claimed to own the only piano in Asia and was also an accomplished player.
He was also responsible for removing one of the firm's ship captains for refusing to offload opium chests on the Sabbath, Matheson observed, "We have every respect for persons entertaining strict religious principles, but we fear that very godly people are not suited for the drug trade."
On 1 July 1832, Jardine, Matheson & Co., a partnership between Jardine and Matheson as senior partners, and Magniac, Alexander Matheson, Jardine's nephew Andrew Johnstone, Matheson's nephew Hugh Matheson, John Abel Smith, and Henry Wright, as the first partners, was formed in China, taking the Chinese name 'Ewo' (怡和) pronounced "Yee-Wo" and meaning "Happy Harmony".
The name was chosen as it had been used by the former Ewo Hong run by Chinese merchant Howqua, a business with an impeccable reputation. p.122 Online version at Google books The firm's operations included smuggling opium into China from Malwa, India, trading spices and sugar with the Philippines, exporting Chinese tea and silk to England, factoring and insuring cargo, renting out dockyard facilities and warehouse space, trade financing and other numerous lines of business and trade.
In 1834, Parliament ended the monopoly of the EIC on trade between Britain and China. Jardine, Matheson & Co. took this opportunity to fill the vacuum left by the East India Company. With its first voyage carrying raw silk, but ironically no tea, the ship (now owned by Thomas Weeding, but previously owned in partnership by Weeding, Jardine and Cowasjee) left for England, becoming the first free trader to arrive in England after the monopoly ceased. Jardine Matheson then began its transformation from a major commercial agent of the East India Company into the largest British trading hong (洋行), or firm, in Asia. William Jardine was now being referred to by the other traders as "taipan".
Jardine wanted the opium trafficking to expand in China. In 1834, working with the Chief Superintendent of Trade representing the British Empire, William, Lord Napier, tried unsuccessfully to negotiate with the Chinese officials in Canton. The Chinese Viceroy ordered the Canton offices where Napier was staying to be blockaded and the inhabitants including Napier to be held hostages. Lord Napier, a broken and humiliated man, was allowed to return to Macao by land and not by ship as requested. Suffering a fever, he died a few days later.