Palmer, Potter

▪ American businessman

born May 20, 1826, Albany county, New York, U.S.

died May 4, 1902, Chicago, Illinois

      American merchant and real-estate promoter who was responsible for the development of much of the downtown district and the Lake Shore Drive area of Chicago after the city's great fire of 1871.

      Palmer started as a clerk in a general store in Durham, New York. In two years he became store manager, and one year after that (1847) he opened his own dry-goods store in Oneida, New York. In 1852 his father helped supply the capital for Palmer to open a dry-goods store in Chicago. There Palmer developed practices new to retailing at the time, including allowing goods to be returned for either a full refund or an exchange, sending goods to customers on approval, and offering bargain sales. He also stressed advertising and attractive displays of merchandise. In 1867 he sold his share in the business to his partners, Marshall Field (Field, Marshall) and Levi Z. Leiter.

      With the money that he had made in retailing, he bought a 0.75-mile (1.2-km) stretch of State Street, at that time an undeveloped lane on the outskirts of downtown, and transformed it into Chicago's major retail thoroughfare. In the great fire of 1871, most of his 32 buildings were destroyed. Borrowing $1.7 million, he built larger buildings than before, including the second Palmer House, a large hotel. Palmer also reclaimed the swampland north of Chicago's commercial district, developing it into the beautiful Lake Shore Drive area.

      Palmer's wife, Bertha Palmer (Palmer, Bertha Honoré), née Honoré (b. May 22, 1849, Louisville, Kentucky, U.S.—d. May 5, 1918, Osprey, Florida), whom he married in 1871, aided him in his financial dealings and became the social leader of Chicago and a noted philanthropist.

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