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Stone Horse Yacht Club was founded in 1933 at the then-new boat building shed of the Lee Shipbuilding Company (the site now occupied by the Harwich Port Boat Yard).

At the time of the club's founding, the sailing fleet consisted of a wide variety of boats that had to be handicapped for racing.

The Stone Horse burgee and its six stars were designed to recognize the six people who started the club (Waldo Brown was also considered to be integral to the club's founding).