Oregon Historical Quarterly/Volume 9/Oregon's First Monopoly—The O.S.N. Co.
OREGON'S FIRST MONOPOLY—The O. S. N. CO.[* 1]
By Irene Lincoln Poppleton.
In developing any new country, transportation facilities are a necessity. On the Ohio frontier one of the first questions that confronted the pioneer was, how to get his produce to market by a cheap and efficient means of transportation. Until government roads and canals were opened it was not practical nor profitable to carry products to any distant market. They found it necessary to convert their bulky products into a condensed form, for instance wheat and corn to whisky, or they raised livestock, which could walk to market. In Kentucky and Tennessee it was the same way. And in later years in the development of South Africa by the British government the first step was the construction of railroads. Russia used the same method in Siberia.
In every case we find that consolidated capital was the means of opening up the country, and developing facilities otherwise impossible. No individual would risk his entire fortune in such an uncertain venture. The Erie canal was scoffed at by the general public until it was proved a success. The Pacific railroad was pushed to completion in the face of strong opposition. All through history are instances of consolidation of capital, government or otherwise, for promoting the prosperity of the country. It has seldom resulted in monopoly, but monopoly is the natural tendency. In the development of a project all the parties interested concentrate their forces upon a certain plan of action. As the plans develop the organization becomes stronger and is more able to resist opposition and if they are in a position to control any essential feature of the project the outcome is the seizure of it as a sure means of success. When this is accomplished monopoly is assured.
In order to fully understand the monopoly of the Columbia River by the Oregon Steam Navigation Company it will be necessary to study in detail the geographical formation of the gorge of the Columbia. The obstructions to navigation here are:
First, The Cascades, and
Second, What is known as The Dalles rapids and the Ten Mile rapids, which are regarded as one.
The Cascades are 160 miles from the mouth of the river. There is an Indian legend in connection with the forming of the Cascades that is interesting. Many, many years ago a huge mountain fell and dammed up the river. Soon it forced through, forming a bridge. This was called the Bridge of the Gods. A long time afterwards an earthquake caused it to fall, forming the obstruction which we know as the Cascades.[1] The Cascades have always been of importance on account of the break in navigation, making a portage absolutely necessary. The rocks and falls in the river extend for a distance of five miles.
The obstruction at The Dalles, 220 miles from the mouth of the Columbia, generally called The Dalles rapids, and consisting of The Dalles rapids. Three Mile rapids. Ten Mile rapids and Celllo Falls, twelve miles in all, extending from the foot of Three Mile rapid, which is located about two miles below the foot of The Dalles rapids, to what is known as the head of Celilo Falls.[2]
These obstructions cut off absolutely from communication with the lower Columbia and sea navigation by steam or other boats, 1,294 miles of the 1,664 miles of navigable waters of the Columbia and its tributaries.[3]
The 220 miles below these obstructions and 150 miles of navigable waters of the Willamette, making 370 miles, constitute the whole of the navigable waters of the Columbia and its tributaries that are not affected by these obstructions. Above these obstructions the Columbia with its tributaries is navigable to the extent of 1,294 miles. Thus the Columbia would be navigable for 1,664 miles were it not for these obstructions.[4]
The Cascade range of mountains extends entirely across the States of Oregon and Washington, and the only natural opening in the range is the Columbia River. Through this opening is the natural transportation route for the products of the great valley of the Columbia to the seaboard and of the supplies for the inhabitants of that region. The Columbia River is in size and importance the second in the United States.[5] The total area drained by it is 244,959 square miles. It is divided as follows:
Oregon: Square Miles.
Willamette and Columbia below the mouth of Columbia...12,000
Deschutes...10,000
John Day, Willow Creek and Walla Walla...12,600
Snake River...17,200
Washington Territory:
North side Columbia below the Snake...8,000
Columbia above the Snake...5,200
Idaho:
Columbia River...7,600
Snake River...70,040
Nevada:
Snake River...6,280
Wyoming:
Snake River...5,184
Utah:
Snake River...700
Montana:
Columbia River...20,800
British Columbia:
Columbia River...38,395
Or it may be divided in another way as follows:
Snake River...104,604
Upper Columbia above the junction with the Snake...97,155
Main Columbia below the junction...43,200
Total 244,959
Steamboating on the Columbia seems to have started in 1850 or earlier. As early as the summer of 1850 the little steamer "Columbia" was running between Astoria and Portland.[8] The steamer "Lot Whitcomb" was then in the course of construction.[9] Captain Lot Whitcomb was the partner of Colonel Jennings in this steamboat enterprize, and J. C. Ainsworth was her first captain, with Jacob Kamm the engineer. It was the intention to run the boat between Milwaukie and Portland, though at that time the business was so limited that had it not been for towing lumber vessels, the boat could not have possibly paid expenses. In 1852 a small iron propeller called the "Jason P. Flint," was brought from the East. The Bradfords ran this above the Cascades.[10] J. C. Ainsworth, Jacob Kamm and Thomas Pope of the firm of Abernethy, Clark & Company, built the "Jennie Clark" in 1854 for the Oregon City and Portland trade.[11] In 1858 the "Carrie Ladd" was launched in Oregon City.[12] She was constructed by J. P. Thomas for the same people. She was the nearest approach to a modern river steamer that had as yet appeared. While the "Carrie Ladd" was in the course of construction, R. R. Thompson, who had been engaged upon the upper Columbia River in transporting government freight in sail boats, built, at the upper Cascades, a fine little steamer called the "Venture,"[13] with the intention of in some way making the portage at The Dalles, and using her on the upper Columbia. His partner, L. W. Coe, was made captain. In attempting to make the first trip to The Dalles, the boat was carried over the falls at the upper Cascades. She was afterwards hauled out and repaired and her name changed to the "Umatilla." By 1859 the steamers "Senorita," "Belle" and "Multnomah," owned by Stark, Reed, Dick Williams, Hoyt and Wells, all under the management of Ben Stark, were running between Portland and The Cascades.[14] The "Belle" was the first boat to make regular trips. Opposed to this interest was the "Mountain Buck," owned by J. S. Ruckle and H. Olmstead, who also owned the portage at The Cascades on the Oregon side of the river.[15] Bradford & Company owned the portage on the Washington side of the river, together with the steamers "Hassalo" and "Mary" plying between The Cascades and The Dalles.[16] Ruckles and Olmstead owning the little steamer "Wasco" plying on the same route, and thus making them a through line between Portland and The Dalles. There were no steamers up to this time on the upper Columbia, but R. R. Thompson was the owner of all the sail boats on the upper Columbia, and was then building the steamer "Colonel Wright." At this time the portage at The Dalles was made by teams to the mouth of the Deschutes River and O. Humason had charge of this portage. The freight over this portage was $20.00 per ton measurement.
The Stark party and Bradford formed one line by a division of receipts as follows: The freight, which was at that time $30.00 per ton between Portland and The Dalles, was divided in four parts— Stark and his party receiving one-fourth, or $7.50 per ton, for deliveriug their freight at the foot of the rapids at the foot of The Cascades, at what was known as the Garrison or Johnston's Landing. Here Geo. W. Johnston took charge of it—Bradford was his partner, though under cover—and took it over the first rapid in sail boats to what was known as the first landing, for which he received $7.50 per ton. From this place it was taken on a wooden tram to the upper Cascades by Bradford & Company and placed on their steamer above, they receiving one-fourth for the tramway service and one-fourth for their steamer from The Cascadas to The Dalles.[17] At this time Stark ran his boat from Portland to The Dalles, tri-weekly. Passengers were compelled to remain over night at The Cascades, taking two days from Portland to The Dalles. Ruckle and Olmstead were running on the same time but they owned their whole line through and though it was of a very inferior character they did not have to divide with others and were rapidly encroaching on the business of the old or Bradford line. About this time the Stark party was reinforced by the advent of the "Carrie Ladd," with J. C. Ainsworth in command, which ran between Portland and the middle landing of The Cascades, thus earning one-half the receipts. This gave such an advantage in time and facilities to the old company that Ruckle and Olmstead, who had been making such inroads on the business, proposed a combination. The result was that in April, 1859, a general combination was made of all the interests as far as the middle landing of The Cascades under the name of The Union Transportation Company, with J. C. Ainsworth and J. S. Ruckle as agents. By this arrangement Bradford & Company were to have all of the business from the middle landing to The Dalles, Ruckle and Olmstead withdrawing their steamer "Wasco" from this route.[18]
At the time these negotiations were entered into the Stark party were known as the Columbia River Steam Navigation Company, and Ruckle's and Olmstead's line as the Oregon Transportation Company. The rates of passage were at this time from Portland to the lower Cascades, $6.00; passage over the portage, from $1.00 to $3.00. This Union Transportation Company continued to work pretty well for about one year, but there was great difficulty in conflicting ownership and interests of steamers and portages. A closer consolidation of interests seemed to be necessary, and Mr. Ainsworth set about to accomplish this, trying if possible to combine at least the steamboat interests together as one company. In fact, this was an old scheme of his, often talked over with his friend R. R. Thompson, but whose interests were at this time all on the upper Columbia, making it therefore necessary for him to proceed alone, even with an element whose interests were somewhat antagonistic to those of Thompson's. But after much discussion it was agreed between the San Francisco parties owning the control of the steamer "Julia," the parties owning the old boats of the Columbia River Steam Navigation Company, composed of Stark, Reed, Williams, Wells, and Hoyt; the owners of The Oregon Transportation Company, composed of J. S. Ruckle and H. Olmstead and Bradford & Company, owning boats between The Cascades and The Dalles, and J. C. Ainsworth and associates owning the steamer "Carrie Ladd," that it would be desirable to consolidate the different steamboat interests into one company and that it should be done if terms could be agreed upon. This was the beginning of a long discussion as to the valuation of the different boats that should constitute the basis of the new company. This was finally adjusted and an agreement was reached to combine all the steamboat interests between Astoria and The Dalles. The next step was to bring in R. R. Thompson, who owned the steamer "Colonel Wright" and a lot of small sail boats on the upper Columbia River. At length an agreement was reached and the Oregon Steam Navigation Company was formed, with a capital in steamboats and other property at the highest possible figure of $172,500.00.[19] J. C. Ainsworth was made agent and so remained until the company was legally organized on December 20, 1860, when they procured a charter from the Washington territorial legislature with nominal headquarters at Vancouver, The shares were valued at $500.00 each, with fifteen shareholders whose holdings were as follows:
R. R. Thompson 120 shares Benjamin Stark 19 shares
Ladd & Tilton 80 shares Josiah Myrick 12 shares
T. W. Lyles 76 shares Richard Williams 7 shares
L. W, Coe 60 shares J, W. Ladd 4 shares
Jacob Kamm 57 shares G. W. Pope 4 shares
J. C. Ainsworth 40 shares J. M. Oilman 4 shares
A. H. Barker 30 shares Geo. W. Hoyt 3 shares
S. G. Reed 26 shares [20]
J, C. Ainsworth was elected president, which position he occupied, with the exception of one year, during the entire life of the corporation. The superior value of that portion of the new line owned by Thompson and Coe was recognized by giving them a much larger block of the stock than any other faction. Ladd & Tilton, the bankers, had rendered some financial aid to the owners of the steamers "Mountain Buck" and "Senorita," and in this way secured an interest in the corporation in which the senior of the banking firm afterwards became quite a power. The difficulty in effecting an organization of this company was very great but its subsequent history was great in results and usefulness. No other steamboat company in the United States can show such a record. They commenced as before stated with a capital in property at the highest possible valuation of $172,500.00; no assessment was ever levied on this stock. The company expended in gold nearly three million dollars in creating their subsequent magnificent property, besides paying to their stockholders in dividends over two million five hundred thousand dollars in gold.[21]
The first board of directors, elected December 29, 1860, were as follows: J. C. Ainsworth, J. S. Ruckle, D. F. Bradford, S. G. Reed and L. W. Coe. These were supposed to represent the different interests that composed the new company. On June 8th, L. W. Coe resigned as director and R. R. Thompson was elected in his place.[22] Very soon after the legal organization of the company the rich placer gold mines of Idaho Territory, Eastern Washington Territory and Western Montana were discovered and a rush of miners and freight up the Columbia River was the consequence.[23] The new company was greatly overtaxed to do the business that was forced upon them. They had but few boats, most of them very indifferent, the "Carrie Ladd" being the best in the new line. The portages at The Cascades were owned by rival and hostile parties, yet both were interested in the Oregon Steam Navigation Company, and occupied seats on the board. These parties regarded their portage interests as of paramount importance. They looked upon the company as simply auxiliary to their other and larger interests. The portage at The Dalles was at the formation of the Oregon Steam Navigation Company made by teams to the mouth of the Deschutes River a distance of about twenty miles, and was at that time principally controlled by 0. Humason and his associates. The freight for the new mining country was so extensive that at times the whole portage at the Cascades was lined with freight from one end to the other; the result was, of course, heavy losses caused by damage and a system of robbery impossible to prevent. They paid damages to freight in a single month amounting to over $10,000.00. The most of this occurred on the portage, yet it was invariably charged to the Oregon Steam Navigation Company. The steamboat men realized the disadvantage under which they labored, as they were simply interested in a line of steamers that were wholly dependent on the portages, which were in the hands of rivals. They could see that the Oregon Steam Navigation Company must control the portages, or the portages must control and swallow up the company, or in other words, the whole interest must be as one. The question then was simply as to the mastery, and here commenced the struggle. At this time the Bradford's means of transportation over their portage was a very indifferent wooden tramway from what was known a.s the Middle Landing to the upper Cascades on the Washington side.[24]
Ruckle's means of transportation on the Oregon side was a wooden tramway the whole length of the portage, the lower half, or from the Middle Landing down, was of iron strap and over this portion of the road he ran a small engine. The cars on the upper part of the road were hauled by mules, as they were on the Bradford road. During the high stage of water, say from May to August, the steamers could not run to the Middle Landing, consequently Euckle transported the freight at such times over the entire portage, for which he received one-half the through freight from Portland to The Dalles, and as Bradford had no tramway below the Middle Landing, he could not claim from Ruckle a division of portage earnings on the lower half of his road. This annoyed Bradford exceedingly, as Ruckle's income from this source, with the immense freight that was then moving, was very great.[25]
J. C. Ainsworth and those who were looking to the interest of the steamboat men, now absorbed The Dalles portage. They stocked the road with teams and wagons at a cost of about $100,000.00. This immense caravan was taxed to its utmost capacity, as was everything else that they owned. The next step was to bring the board of directors to see the necessity of building a railroad from The Dalles to Celilo and to convince them that the company could safely undertake it. J. C. Ainsworth was dispatched to San Francisco. He found that the house of Colman & Company had about twenty miles of railroad iron, which could be procured by paying freight and charges. He made arrangements to take all of the iron, as they would not divide the lot. The Dalles railroad would only require fourteen miles, so this would be enough for The Cascades portage as well. Arrangements were made for the shipment of this iron at once, and the work of constructing The Dalles and Celilo road was commenced. They had completed about three miles of this road at The Dalles, when Mr. Bradford became more and more frightened at the success of Mr. Ruckle on the Oregon side of The Cascades. This led Mr, Bradford to agree to the construction of a road by the Oregon Steam Navigation Company the full length of the portage of the Washington side of the river. As soon as the negotiations for the sale were completed the construction force at The Dalles was taken to The Cascades and placed at work. Ruckle became convinced that his true policy was to sell to the company. The purchase was made that gave everything into the hands of the Oregon Steam Navigation Company, November 4th, 1862, and the price paid was $155,000.00.[26]
The company that was first organized by special act of the Legislature of Washington Territory, with nominal headquarters at Vancouver, was dissolved December 5th, 1862, and re-organized under the general corporation law of the State of Oregon. This settled the question of supremacy. The Oregon Steam Navigation Company was now master of the river, and all rival interests were now centered in the company.[27] The capital stock was $2,000,000.00, represented by twenty-five shareholders, at $500.00 per share, as follows:
Bradford & Co 758 shares J. W. Ladd 48 shares
E. E. Thompson 672 shares J. M. Gilman 44 shares
Harrison Olmstead. .. .558 shares P. F. Doland 42 shares
Jacob Kamm 354 shares E. J. Weekes 42 shares
L. W. Coe 336 shares S. G. Eeed, Agt 40 shares
T. W. Lyles 210 shares J. W. Ladd, Agt 40 shares
J. C. Ainsworth 188 shares Jos. Bailey 36 shares
A. H. Barker 160 shares O. .Humason 34 shares
S. G. Eeed 128 shares J. S. Euckle 24 shares
Ladd & Tilton 78 shares Geo. W. Hoyt 18 shares
Josiah Myrick 66 shares Ladd & Tilton 16 shares
Eichard Williams 48 shares J.H.Whittlesey 8 shares
A. H. Grenzebach 52 shares [28]
Article 1.
J. C. Ainsworth, D. F. Bradford, R. R. Thompson and S. G. Reed: Their associates, successors and assigns, do hereby associate themselves under and by virtue of the provisions of an act of the Legislative Assembly of the State of Oregon, entitled, "An Act Providing for the Private Incorporations," approved October, A. D. 1862.
Article 2.
The name of this incorporation and by which it shall be known, is the "Oregon Steam Navigation Company."
Article 3.
The object of this incorporation and the business in which it proposes to engage, is the navigation by steam and otherwise of the Columbia River from its mouth to the forty-ninth parallel of north latitude, and the Snake River from its mouth to Fort Boise, and the Willamette River from its mouth to Eugene City, and the Pacific and other oceans, together with the construction and use of all necessary rail or plank or clay roads and bridges at any of the portages of the said Columbia, Snake and Willamette rivers, or to purchase, own and use any such roads that may be constructed, or are now constructed, or may be in the course of construction, and to collect such tolls, fare or freight on all roads, boats or vessels that may be owned, chartered or controlled by said incorporation, as shall be deemed expedient by the officers of said incorporation; and to purchase, and own all lands, lots, wharves, boats and vessels, and all real and personal property of every name and nature, that may be deemed necessary to the interests of said incorporation in the prosecution of the business above referred to, and to sell and transfer the same.
Article 4.
The principal office of this incorporation shall be at the City of Portland in the State of Oregon,
Article 5.
The amount of the capital stock of this incorporation shall be two millions of dollars.
Article 6.
The amount of each share of such capital stock shall be $500.00. In Witness Whereof, we have hereunto set our hands this eighteenth day of October, A. D. 1862. (Signed)
J. C. AINSWORTH,
D. F. BRADFORD,
R. R. THOMPSON,
AMENDATORY AND SUPPLEMENTARY ARTICLES OF INCORPORATION.
Amend Article number three (3) so as to include the navigation by steam or otherwise of all navigable waters, sea and inland, wherever it may be deemed expedient. Also the constructing, purchasing and operating the telegraph lines, and so far as may be found lawful, the constructing, purchasing and operating of railroads and other roads.
Amend Article number five (5) so as to increase the capital stock to five millions of dollars.
Amend Article number six (6) to make the shares of the value of $100.00 instead of $500.00.
Now, Therefore, We, J. C. Ainsworth, E. E, Thompson, S. G. Reed and W. S. Ladd, directors of the said incorporation, by virtue of the resolution of the said stockholders, in pursuance of the authority therein and under the laws of this State conferred, do hereby make and establish the following Supplementary Articles of the said incorporation:
Article numbered 3 shall read as follows:
The object of this incorporation and the business in which it proposes to engage is the navigation by steam or otherwise of the Columbia River and its tributaries, and all other navigable waters, sea and inland, wherever it may be deemed expedient to construct, purchase, maintain and operate any railroads or roads, macadamized road or roads, plank roads, canals or bridges for the purpose of transporting freight or passengers across any portages on the line of navigation upon any stream or other water which the said corporation may be navigating; also, such other railroads and other roads as under the laws of this State, said incorporation may lawfully engage or be interested in; also, to construct, purchase, maintain or operate telegraph lines wherever it may be deemed expedient and to charge and collect such tolls, fare or freight on all roads, boats or vessels or means of conveyance or transportation as may be owned, chartered or controlled in whole or in part by the said corporation, and such rates for the use of the telegraph lines of said corporation or for the transmission thereon of telegraphic messages as shall be deemed expedient—and to purchase and own all lands, lots, wharves, boats and vessels and all real and personal property of every name and nature that may be deemed necessary to the interests of the said incorporation in the prosecution of the business above referred to, and to sell and transfer the same.
Articles numbered 5 and 6, the same as before.[29]The Oregon Steam Navigation Company immediately entered upon a career of marvelous prosperity, which never flagged, and the company continued to grow in influence and wealth, until, from the humble beginning made by the insignificant stern-wheelers like the "Carrie Ladd," the Oregon Steam Navigation Company and its successors had become a power in the money centers of two continents. Throughout its entire period of activity this company succeeded in keeping the good will of the people. No worthy traveller was ever refused passage on the Oregon Steam Navigation Company steamers, and many a man was not only carried free, but was given his meals as well. No iron-clad rules prevented the pursers from using their discretion and no injustice was tolerated.[30] The pursers were paid $150.00 per month and that Avas extremely good pay for those times. The company demanded no bond of them and trusted to their integrity. They considered that the high wages paid was sufficient to keep the men, and if one was caught stealing from the company, he was discharged without ceremony.[31]
It was a close corporation. Soon after the organization the Bradfords offered to sell their stock at seventy-five cents, or at the rate of $1,500,000 for the whole property, including steamships. This Bradford stock was purchased by A. Hayward for a pool of those who agreed to take a chance on the future of the company, and purchase its stock whenever it could be had at seventy-five cents. This pool consisted of W. S. Ladd, J. W. Ladd, R. R. Thompson, S. G. Reed, A. Hayward and J. C. Ainsworth. Arrangements were made with Ladd & Tilton to advance money on such purchased stock and charge the pool interest. As soon as Bradford sold his stock, a general stampede occurred with most of the large stockholders outside of the pool named; many were frightened because the control seemed to be going into Hay ward's hands, of California, and the offer of stock was more than the pool could well provide, but all was purchased that was offered. At first the object of the pool was to own a decided control of the company and work together in the management, but so much stock was offered and sold that very little was left outside, and then it was thought desirable to purchase all the stock, if possible increase the capital to five millions of dollars and put the stock on the New York market. The result was, that the whole stock was purchased by the pool and the contemplated increase of stock was put through.[32]
The new company began its business under very favorable auspices. Early in its existence the Salmon River gold excitement brought a horde of miners into the country and the Oregon Steam Navigation Company reaped more of the golden harvest in transporting them than any of the treasure-seekers found in the mines. The Florence City gold excitement of 1862 also brought the Oregon Steam Navigation Company a flood of prosperity. The wonderful resources of the new Northwest were now becoming known as they had never been before. This was the banner year of Columbia River steamboating. They could not possibly take care of all of the business offered. The fleet running to The Cascades was frequently unable to handle the people who arrived on the steamships, and the portage was blocked with freight for days at a time, notwithstanding the fact that double crews were operated. A trip with less than two hundred people was light. At Portland the rush of freight to the docks was so great that drays and trucks had to form and stand in line to get their turn in delivering goods. Their lines were kept unbroken day and night for weeks and months. So, notwithstanding the enormous price of freight and passage, it was impossible to meet the demand. A few private boats found plenty of business; also the steamer "Maria" of the Independent Line, but she was seized by the government on a technical charge, and in March, 1S65, the Oregon Steam Navigation Company got control of her. Another contestant was Captain Van Bergen, who secured the mail contracts between Portland and The Dalles. He controlled the People's Line of Steamers.[33]
As an illustration of the large vol me of business done at this time, the following figures were taken from the books at The Dalles for 1862:
Colonel Wright March 27 $ 2,625.00
Colonel Wright March 28 2,446.00
Colonel Wright March 31 1,570.00
Tenino April 9 1,405.00
Okanogan April 11 3,540.00
Okanogan April 15 1,622.30
Okanogan April 18 1,020.00
Tenino April 22 3,232.00
Okanogan April 25 3,630.00
Tenino April 27 3,289.00
Tenino April 29 2,595.00
Tenino May 5 6,780.00
Okanogan May 11 2,145.00
Tenino May 13 10,945.00
Okanogan May 17 2,265.00
Okanogan May 26 6,615.00
These are for tickets sold at The Dalles for up-trips only. Down stream the traffic was not so great, but from $1,000.00 to $4,000.00 each trip, and the freight was enormous. One up-trip on the Tenino in May produced over $18,000.00 for freight, fares, meals and berths. The extras and the bar privilege produced a monthly income of $1,200.00.
The treasure shipments that passed through Portland were in part as follows: June 25. 1861, the steamer "Sierra Nevada" left for San Francisco with a treasure shipment of $228,000.00. July 3rd, the steamer "Brother Jonathan" left with $50,000.00 in treasure. July 14th, the steamer "Sierra Nevada," with $110,000.00 in treasure. August 12th, $20.000.00; August 24th, $195,558.00; September 12th, $130,000.00; September 30th, $315,780.00; October 13th, $203,835.00; November 14th, $260,483.00; November 29th, $240,000.00; December 5th, $750,000.00. On October 12, 1865, Wells Fargo & Company shipped $150,000.00 in crude bullion. Another trip brought 1,125 pounds of crude bullion, twenty-eight sacks averaging forty pounds each.[34]
Wells Fargo exports of treasure were as follows :
$6,200,000.00
5,800,000.00
5,400,000.00
4,001,000.00
The merchandise exports, wholesale prices, for 1866:
$68,860.00
26,030.00
70,016.00
17,600.00
149,065.00
7,011.00
5,300.00
1,440.00
1,752.00
15,000.00
5,989.00
1,240.00
66,840.00
$457,967.00
The total value of the merchandise exports in 1867 was $2,462,793.00.[35]
The freight and passenger traffic handled between 1861 and 1865 was as follows:
Year. 1861 1862 1863 1864 Passengers. Tons of Freight. 10,500 24,500 22,000 36,000 6,290 14,550 17,646 21,834[36] The marked increase of 1862 was occasioned by the absorption of the Willamette River boats.
The advertisements of the company for 1866 show the facilities offered by them. Thus: the steamboat "Wilson G. Hunt" left Portland at 5:00 a. m. daily, reached The Cascades at 11:00 a. m. Left at 4:00 p. m., arrived in Portland at 10:00 p. m. The steamer "Cascade" left The Cascades at 5:00 a. m., reached Portland at 11:00 a. m., started back at 1:00 p. m., reached The Cascades at 10:00 p. m. A train on the "Cascade Railroad" was "dispatched" on the arrival of the Portland boat connecting with the steamboats "Oneonta" and "Idaho" for The Dalles. From there trains on The Dalles and Celilo railroad connected with steamboats leaving daily for all points on the upper Columbia and Snake rivers. The boats above The Dalles were the "Webfoot," "Spray," "Tenino," "Yakima," "Nez Perce's Chief," and "Owyhee."[37]
The policy of the company was to charge high rates, all in fact that the traffic would bear. Its earnings were consequently good, the company paying as high as 12 per cent on its $5,000,000.00 capital as annual dividends.[38] All freight except solids such as lead, nails, etc., were estimated by measurement, forty cubic feet making a ton.[39] The passage from Portland to The Dalles was $8.00 and $0.75 extra for meals. Portland to Lewiston, $60.00 and meals and beds $1.00 each. Today the price of freight from Portland to The Dalles is $1.50 per ton and passage $1.50 and $0.25 extra for meals.[40] H. D. Sanborn, a merchant of Lewiston, in 1862 received a case of miner's shovels. The case measured one ton and contained 120 shovels. The freight, $120.00 per ton, made the freight on each shovel $1.00. A merchant at Hood River, eighty-five miles, said that before the railroad the freight on one dozen brooms was one dollar. When O. B. Gibson was in the employ of the company at The Dalles, he went down to get the measurement of a small mounted cannon that had to be shipped for the government. After measuring several ways and figuring up the amount, he seemed so perplexed that he attracted the attention of two soldiers who were lying in the shade of a pine tree near by. One of them finally called out, "What is the trouble, Captain?" "I am trying to take the measurement of this blamed gun, but some way I cannot get it right," said Gibson. "Oh, I will show you," said the soldier, leading up a pair of harnessed mules that stood near and hitching them to the gun, "Try it now, Captain." "Thanks, that makes it all right; I see now why I could not get the correct measurement." In measuring a wagon or any piece of freight the full length, heighth and thickness were taken and carried out full size, the largest way of the piece. For instance, a wagon was measured from the back wheels to the end of the tongue, then the tongue was turned up and it was measured from the ground to the tip of the tongue again. This constituted the cubic contents, nothing deducted for vacuum, but when the wagon was shipped the tongue was placed under the wagon box out of the road.[41]
Following is a statement of freight charges by the Oregon Steam Navigation Company, taken from their schedule of rates that went into effect April 1, 1877:
All bills payable in United States gold coin. That is to say, it cost to ship a ton of freight from Portland, Oregon, to Umatilla, 217 miles, via Columbia River, $20.00 in gold coin or nine and one-fourth cents per ton per mile. From Portland to Lewiston, Idaho, 401 miles, $40.00 per ton or ten cents per ton per mile. Compare this with the cost of transporting a ton of freight by water from Chicago to New York, less than one cent or nine and three-fifths mills per ton per mile. The Missouri River from St. Louis to Fort Benton, 3,200 miles, $32.00 per ton, or $1.00 per 100 miles, or one cent per ton per mile. Also the Missouri River is one of the most dangerous and difficult streams to navigate on the continent; filled with eddies, quicksands and constantly changing channels—yet freight on this dangerous river was carried for about one-tenth the price that ruled the upper Columbia. Thus, the cost of moving a ton of freight up the Columbia was ten times greater than moving a ton along any principal water course on the continent. Also that which constituted a ton by weight on routes between Chicago and New York and from St. Louis to Fort Benton on the Missouri River, and on most other of the water transportation routes in this country, constituted on the Columbia, under their system of measurement of freight, an average of more than one-third more, in many instances, depending on the character of the freight, one-half, three-quarters, twice as much and sometimes three times as much. For instance, an article measuring a ton, but not actually weighing over two hundred pounds, would cost on the Columbia and Snake rivers from Portland to Lewiston, 400 miles, $40.00, or at the enormous rate of $400.00 per ton, according to weight, or $1.00 per ton per mile. From statistics compiled by W. J. McAlphin, State Engineer of New York, about 1868, the average cost of transportation by railroad was thirteen mills per ton per mile. From a table of freight charges on the Willamette River, published November 1, 1866, we learn that the average charge on this river was 175 mills per ton per mile.[42]RATES OF FREIGHT PER TON MEASUREMENT.
Portland to The Dalles, 121 miles $10.00
Portland to Umatilla, 217 miles 20.00
Portland to Wallula, 240 miles 25.00
Portland to Palouse, 317 miles 32.00
Portland to Penewawa and Almota, 348 miles 37.50
Portland to Lewiston, 401 miles 40.00
Fast freight, $2.50 per ton extra to The Dalles.
Fast freight, $5.00 per ton extra to all points above The Dalles.
PASSENGER CHARGES.
Portland to The Dalles $ 5.00
Portland to Umatilla 10.00
Portland to Penewawa and Almota 18.00
Portland to Lewiston 20.00
The following is a copy of a circular issued showing the rules of the Oregon Steam Navigation Company, adopted April 22, 1878, and published by them, illustrative of the absolute and exclusive power which they exercised over the commerce of the Columbia River:
(1) This Company will not take the freight to carry to any point upon the Columbia or Snake rivers above Celilo, except upon an agreement that it shall have the entire water carriage of the same to its place of final destination so far as the Company's lines extend. The Company before receiving such freight may require of the owner or shipper, such agreement in writing with surety or otherwise which shall provide that if the terminus of the water carriage of the shipment or of any portion of the same shall be falsely represented in the shipping receipt or otherwise, and the freight shall, by direction of the owner in said shipping receipt or otherwise, be landed before arriving at such terminus and shall be further carried upon steamboat or boats or vessels not belonging to this Company, then the party to such an agreement shall be held for and bound to pay to this Company, full freight for such further water carriage at local rates, and in the same manner as if this Company had carried the same to the terminus of its water carriage, and that such re-shipment on another than a Company boat or vessel, within thirty days after a landing of the same as herein above stated, from the Company's boat or boats, shall be taken and held to be conclusive evidence that the terminus of water transportation of said freight was falsely represented and that the true terminus was the point to which it was finally carried. And said agreement shall contain a further stipulation in ease action is brought thereon and a recovery by the Company had, the judge, justice of the peace or court before whom or which the action is tried, shall include in the amount of the judgment as disbursements, such sum over and above the taxable cost as he or they shall determine to be reasonable attorney's fees for the prosecuting said action.
(2) All down freight from points on the Columbia or Snake rivers which is brought to Wallula, Umatilla or Celilo, on any steamboat or other water craft not belonging to this Company and is re-shipped for further carriage by this Company, will be charged the usual rates of the Company, from the point of shipment upon such other steamboat or water craft, which freight shall be paid in advance at the time of shipment. This rule shall not apply to produce brought by the farmer or producer in his own boat to the said shipping points of Wallula, Umatilla or Celilo.
When the locks at Oregon City were completed, the parties controlling them, Goldsmith and Teal, constructed several steamboats and began the navigation of the Willamette River between Portland and Eugene City; later they put boats on between Portland and Astoria in opposition to the Oregon Steam Navigation Company's boats. This opposition continued for two years. The Oregon Steam Navigation Company put a couple of boats on the Oregon City run and the outcome of it w^as that they purchased a controlling interest in the locks and the Goldsmith steamers, and organized a new Company under the name of the Willamette Transportation and Locks Company, and J. C. Ainsworth was elected president. The new company purchased the Basin and warehouse at Oregon City, together with the six steamers that had been rivals of the Goldsmith party.[45]
About this time the Grangers were in the zenith of their glory and power. They resolved to ignore all other interests but their own and were particularly hostile to all other transportation companies. They were led to believe that nearly all receipts of steamboats were profit, and notwithstanding the Willamette Transportation and Locks Company was transporting freight at a loss, they organized a company and secured a large farming element as stockholders, and put on the river two new steamers in opposition to the Willamette Transportation and Locks Company, which already had twelve steamers with only business for half that number. These Granger boats were run for nearly two years, having the whole community to back them up with credit, sympathy and business. They were managed by men wholly unacquainted with the business, but who did not learn that it costs money to build and run steamboats. The managers finally determined to sell their boats, as no one cared to invest good money to continue the fight with all the odds against them. The result was that the Oregon Steam Navigation Company bought the two boats at their own price.[46] Soon after the capital stock was changed to $5,000,000.00, business fell off decidedly, owing to the decline of the mines, but they looked forward to the building up of an agricultural business in the near future.[47]
By 1871 the Northern Pacific Railroad was in the zenith of its prosperity and desired to use the Oregon Steam Navigation facilities in connection with their enterprise. They proposed to purchase a control of the Oregon Steam Navigation stock and invited an interview with an authorized committee from the Oregon Steam Navigation Company to meet them in New York City. Mr. Thompson and Mr. Ainsworth were appointed with authority to sell. They met the company in New York and after much talk and frequent disagreements, they effected the sale of three-fourths of the capital stock of the Oregon Steam Navigation Company, at the rate of $2,000,000.00 for the whole, taking one-half of the amount in N. P. R. R. Company bonds at par and giving easy time for the money payments. The old owners of the company retained one-fourth of the stock and continued in the management, so they considered that they had made a good sale, but subsequent events proved it to be a mistake. Through the failure of Jay Cooke & Company, in 1873, the Northern Pacific was forced into liquidation, and the bonds that the Oregon Steam Navigation directors still held and could have sold for cash at about ninety cents, dropped to ten cents. The three-fourths of the capital sold to the Northern Pacific passed into the hands of the bankrupt estate of Jay Cooke & Company, and here it remained locked up for a long time. This failure served to shrink values all over the United States. The result was that Oregon Steam Navigation stock went down in the crash with other stocks. A plan was adopted by the trustees of the estate of Jay Cooke & Company to pay its creditors in kind. Each creditor accepting the proposition received fourteen per cent of his claim in Oregon Steam Navigation stock at forty per cent of its par value. This, as the creditors slowly and reluctantly came forward to accept, began to throw Oregon Steam Navigation stock on the Philadelphia and New York market. Parties taking it knew nothing about it and offered it at once for sale, and as they were ignorant of its value, the Portland directors were not slow in improving this opportunity to buy back a sufficient amount as would again give them control. Some of it was purchased as low as thirteen cents and the average cost of enough to give control was about twenty cents, so in the end, covering a period of about five years, they found themselves the owners of the large majority of the stock at about half the amount that they had sold for.[48]
In 1879 Mr. Villard came to Oregon with the avowed purpose of purchasing the Oregon Steam Navigation property or commencing opposition. He asked J. C. Ainsworth whether he and his associates were willing to sell. Mr. Ainsworth refused to take less than $5,000,000.00. An inventory of the company's property was made, together with a statement of the earnings for several years, with an offer to sell 40,320 shares at par. The directors thought that it was too big a deal for Mr. Villard, but he considered it a bargain. His plan was to form a new company, the Oregon Railroad and Navigation Company, with a capital stock of $6,000,000.00 and an issue of $6,000,000.00 of six per cent bonds. He got an option till October 1st, by depositing $1,000.00 in cash, which called for 40,320 shares of stock at par, to pay fifty per cent cash, twenty per cent bonds, and thirty per cent stock. He allowed $1,000,000.00 stock and $1,200,000.00 in bonds for the Oregon Steamship Company, and $2,000,000.00 stock and $2,500,000.00 bonds to raise the cash required for Ainsworth. Leaving $1,800,000.00 stock and $1,500,000.00 bonds for the purchase of thirty-five miles of Walla Walla railroad and Willamette Valley Transportation and Lock Company. $1,200,000.00 stock and $800,000.00 bonds were reserved for new steamers. He submitted his plans to Gould, but got a cool reception. He therefore laid the proposition before his friends in the East. His plan was to unite all the transportation facilities in Oregon. He asked his friends to join in exchanging Oregon Steamship for Oregon Railroad and Navigation securities, and to subscribe for the required cash payments for bonds at ninety with a bonus of seventy per cent in stock. He received a prompt response.[49] Thus, the Oregon Railroad & Navigation Company grew out of the Oregon Steam Navigation Company, and the Oregon Steam Navigation Company, after a score of years of prosperity unparalleled in the annals of steam navigation, passed out of existence in 1879. The Oregon Railroad & Navigation Company was incorporated July 13, 1879, with a capitalization of $6,000,000.00, divided into $100.00 shares. Henry Villard was president.
The list of steamers that came into possession of the Oregon Railroad & Navigation Company were as follows:
| When Built. | |||
|---|---|---|---|
| "Idaho" | Side wheeler | 1860 | |
| "Colonel Wright" | Stern wheeler | 1861
"Tenino" Stern wheeler 1861
"Nez Perce's Chief" Stern wheeler 1863
"Enterprise" Stern wheeler 1863
"Senator" Stern wheeler 1863
"Oneonta" Side wheeler 1863
"John H. Couch" Side wheeler 1863
"Iris" Stern wheeler 1864
"Active" Stern wheeler 1865
"Webfoot" Stern wheeler 1865
"Alert" Stern wheeler 1865
"Okanogan" Stern wheeler 1866
"Shoshone" Stern wheeler 1866
"Rescue" Stern wheeler 1868
"Spray" Stern wheeler 1868
"Lucius" Stern wheeler 1868
"Yakima" Stern wheeler 1869
"Emma Hayward" Stern wheeler 1870
"McMinnville" Stern wheeler 1870
"Dixie Thompson" Stern wheeler 1871
"E. N. Cook" Stern wheeler 1871
"Daisy Ainsworth" Stern wheeler 1872
"New Tenino" Stern wheeler 1872
"Alice" Stern wheeler 1873
"Welcome" Stern wheeler 1874
"Bonita" Stern wheeler 1875
"Orient" Stern wheeler 1875
"Occident" Stern wheeler 1875
"Champion" Stern wheeler 1875
"Almota" Stern wheeler 1876
"S. T. Church" Stern wheeler 1876
"Oklahoma" Stern wheeler 1876
"Annie Faxon" Stern wheeler 1877
"Wide West" Stern wheeler 1877
"Mountain Queen" Stern wheeler 1877
"Spokane" Stern wheeler 1877
"Bonanza" Stern wheeler 1877
"Northwest" Stern wheeler 1877
"R. R. Thompson" Stern wheeler 1878
"S. G. Reed" Stern wheeler 1878
"Harvest Queen" Stern wheeler 1878
"John Gates" Stern wheeler 1878
"Willamette Chief" Stern wheeler 1878[50] Thus the growth and mission of this company were practically the growth of the Inland Empire up to 1880. It carried thither the miner and farmer to prospect and develop it and in turn, as its legitimate reward, returned to its headquarters in Portland the wealth it had absorbed, and it made upon the Northwest Coast in the State of Oregon, a metropolis second only to San Francisco. Through its agency, Portland became the great center of travel and the point of distribution for the North Pacific. For a score of years it continued to be the great missionary to dedicate new regions to settlement and to transform the wilderness. It reached out year after year, making new paths and bringing new and remote sections within the sphere of civilization. While legitimately pursuing its business of making money, claiming no credit whatever for philanthropy, it widely contributed to the comforts of self-denying pioneers and to them it early assured those advantages which are only attained by comfortable means of communication with the rest of the world. All the steamboat men of the Northwest were in some way connected with the Oregon Steam Navigation Company, but more credit is due to Captain J. C. Ainsworth than to any of the others for the efficient, business-like yet generous methods of the company. Mr. Ainsworth and Mr. Thompson worked together as one man almost from the beginning of the company, planning, advising and acting; and to them alone was known the real inside history of the Oregon Steam Navigation Company. But it sometimes happened that Mr. Thompson could not be present during the consideration of an important problem, then Mr. Ainsworth had to take things into his own hands, and in such difficult situations he proved himself to be the very spirit of the company. He dealt with the scheming, under-handed element with all the justice and broadmindedness of the leader that he was. He never acted with selfish motives. He looked out for the interests of the company of which he was president with such diligence and zeal that we can safely say that it was chiefly due to his wonderful foresight and perseverance that the company was such a great success. He was indeed a leader in the early development of this new Northwest and no history of this country is complete without a special mention of him. His life is a good example of a successful business career, and the marvelous success of the Oregon Steam Navigation Company is part of that life. Oregon may well be proud of her "First Monopoly," and all honor is due to the man who engineered such a straightforward business enterprise.
BIBLIOGRAPHY. Magazine Articles —
Histories —
Senate Documents—
Act to Regulate Commerce. 1893. Doc. 2253.
Regulation of Commerce. 1887. Doc. 75.
Report of the Portage Commissioners. 1905.
Protection of and Obstruction of Navigable Waters. 1887. Documents 56, 2760, 160, 477 and 666.
Pamphlets. To the Stockholders of the O. R. & N. Co. Report of Committee. New York. Aug. 1, 1880.
Miscellaneous Laws of Oregon. Chap. 7, Sec. 19.
Record of Deeds for Multnomah County. Book 41, pages 1 to 20.
City Directories: For Portland. 1861, 63, 64, 65, 67, 68, 69, 71 and 72.
Newspapers— Oregon Statesman, April 7, 1867.
Daily Oregonian, Sept. 27, 1865; Oct. 12, 1865; Nov. 7, 1865; Aug. 31, 1865; Sept. 16, 1865; Jan. 11, 1866; June 5, 1868; July 7, 1868: July 10, 1868; July 27, 1868; Aug. 19, 1876.
Weekly Oregonian, Jan. 28. 1861; Dec. 15, 1860; Mar. 9, 1861; April 5, 1861; April 27, 1861; Aug. 10, 1861; Dec. 21, 1861; June 14, 1862; June 21, 1862; July 26, 1862; Aug. 16, 1862; Aug. 30, 1862; Dec. 5, 1863; Feb. 20, 1864; Mar. 12, 1864; May 28, 1864; June 27, 1864; Oct. 15, 1864; Dec. 24, 1864; May 20, 1865; May 27, 1865; Aug. 19, 1865; Sept. 23, 1865; Oct. 14, 1865; Nov. 10, 1865; Dec. 30, 1865; Nov. 18, 1865; Nov. 25, 1865; Nov. 27, 1865; Dec. 2, 1865 Dec. 16, 1865; Dec. 20, 1865; Dec. 30, 1865; Jan. 13, 1866; Jan. 20, 1866; Feb. 10, 1866; Feb. 27, 1866; Mar. 31, 1866; April 14, 1866; June 30, 1866; July 7, 1866; Aug. 18, 1866; Aug. 25, 1866; Mar. 9, 1867; April 27, 1867, and May 11, 1867.
Evening Telegram, Mar. 14, 1908, and Mar. 11, 1908.
Articles of Incorporation of the O. S. N. Co. Published by Geo. H. Himes in 1880 for the O. R. & N. Co.
Personal Conferences— Henry Pape. Manuscript— History of the Life of Captain J. C. Ainsworth, written by himself for his children.
I wish to express my thanks to Mr. J. C. Ainsworth, Jr., for his kindness in permitting me to use this manuscript. Without it I could not have given a clear account, because most of the writers only refer to the 0. S. N. Co. in connection with some general subject at hand. The newspapers are not very generous with information on this subject, and the Senate Documents are extremely partisan. I also appreciate the help of Mr. Geo. H. Himes of the Oregon Historical Society, and Miss McBride at the Portland Public Library. |
Notes[edit]
- ↑ Prepared as a thesis for the degree of Bachelor of Arts from the University of Oregon.
- ↑ A Brief Hist, of the O. S. N. Co., by P. W. Gillette.
- ↑ Senate Doc. No. 344, February, 1890.
- ↑ Senate Doc. No. 344, February, 1890.
- ↑ Senate Doc. No. 344, February, 1890.
- ↑ Lieutenant Symon's Report, Senate Doc. No. 232, February, 1892.
- ↑ Senate Doc. No. 782, Vol. 2, February, 1879.
- ↑ Making Oregon. April 25, 1908.
- ↑ Ms.
- ↑ Ms.
- ↑ Story of Oreg. R. R., by W. T. Bailey, Pacific Monthly, Jan. -June, 1907, Vol. 17, page 549.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Lewis and Dryden.
- ↑ Ms.
- ↑ Ms.
- ↑ Lewis and Dryden
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Ms.
- ↑ Lewis and Dryden.
- ↑ Article of Inc. published by Geo. H. Himes for the O. R. & N. Co.
- ↑ Lewis and Dryden.
- ↑ Pape.
- ↑ Ms.
- ↑ Lewis and Dryden.
- ↑ Weekly Oregonian of dates noted.
- ↑ Overland Monthly, July, 1868.
- ↑ Pacific Monthly, Jan.-June, 1907.
- ↑ Pacific Monthly, Jan.-June, 1907.
- ↑ Pacific Monthly, Jan.-June, 1907.
- ↑ Oreg. Hist. Soc. Quar., June, 1906, No. 2, p. 123.
- ↑ Oreg. Hist. Soc. Quar., June, 1906, No. 2, p. 123.
- ↑ Oreg. Hist. Soc. Quar., June, 1906, No. 2.
- ↑ Senate Doc. No. 344, February, 1890.
- ↑ Senate Doc. No. 75, 1877.
- ↑ Lewis and Dryden.
- ↑ Ms.
- ↑ Ms.
- ↑ In 1860 a "genius" at Corvallis decided that steamers were too expensive, so he constructed a tread mill and cattle and hay for motive power. Coming down on the first trip, the vessel ran, or rather walked ashore at McGooglin's slough, where she remained until the cattle had devoured nearly all of the feed. She was finally pulled off by the steamer "Onward" and paddled on down to Canemah, but did not have sufficient power to return and the skipper was obliged to sell his oxen and the scow went over the falls. This method of competing with steamboats has not been tried since.—Lewis and Dryden.
- ↑ Oberholtzer.
- ↑ Pacific Monthly, Jan.-June, 1907.
- ↑ History of Portland, by Harvey Scott.