American Fur Company
THE success of the Northwest Company stimulated further enterprise in this opening and apparently boundless field of profit. The traffic of that company lay principally in the high northern latitudes, while there were immense regions to the south and west, known to abound with valuable peltries; but which, as yet, had been but little explored by the fur trader. A new association of British merchants was therefore formed, to prosecute the trade in this direction. The chief factory was established at the old emporium of Michilimackinac, from which place the association took its name, and was commonly called the Mackinaw Company.
While the Northwesters continued to push their enterprises into the hyperborean regions from their stronghold at Fort William, and to hold almost sovereign sway over the tribes of the upper lakes and rivers, the Mackinaw Company sent forth their light perogues and barks, by Green Bay, Fox River, and the Wisconsin, to that areas artery of the West, the Mississippi; and down that stream to all its tributary rivers. In this way they hoped soon to monopolize the trade with all the tribes on the southern and western waters, and of those vast tracts comprised in ancient Louisiana.
The government of the United States began to view with a wary eye the growing influence thus acquired by combinations of foreigners, over the aboriginal tribes inhabiting its territories, and endeavored to counteract it. For this purpose, as early as 1796, the government sent out agents to establish rival trading houses on the frontier, so as to supply the wants of the Indians, to link their interests and feelings with those of the people of the United States, and to divert this important branch of trade into national channels.
The expedition, however, was unsuccessful, as most commercial expedients are prone to be, where the dull patronage of government is counted upon to outvie the keen activity of private enterprise. What government failed to effect, however, with all its patronage and all its agents, was at length brought about by the enterprise and perseverance of a single merchant, one of its adopted citizens; and this brings us to speak of the individual whose enterprise is the especial subject of the following pages; a man whose name and character are worthy of being enrolled in the history of commerce, as illustrating its noblest aims and soundest maxims. A few brief anecdotes of his early life, and of the circumstances which first determined him to the branch of commerce of which we are treating, cannot be but interesting.
John Jacob Astor, the individual in question, was born in the honest little German village of Waldorf, near Heidelberg, on the banks of the Rhine. He was brought up in the simplicity of rural life, but, while yet a mere stripling, left his home, and launched himself amid the busy scenes of London, having had, from his very boyhood, a singular presentiment that he would ultimately arrive at great fortune.
At the close of the American Revolution he was still in London, and scarce on the threshold of active life. An elder brother had been for some few years resident in the United States, and Mr. Astor determined to follow him, and to seek his fortunes in the rising country. Investing a small sum which he had amassed since leaving his native village, in merchandise suited to the American market, he embarked, in the month of November, 1783, in a ship bound to Baltimore, and arrived in Hampton Roads in the month of January. The winter was extremely severe, and the ship, with many others, was detained by the ice in and about Chesapeake Bay for nearly three months.
During this period, the passengers of the various ships used occasionally to go on shore, and mingle sociably together. In this way Mr. Astor became acquainted with a countryman of his, a furrier by trade. Having had a previous impression that this might be a lucrative trade in the New World, he made many inquiries of his new acquaintance on the subject, who cheerfully gave him all the information in his power as to the quality and value of different furs, and the mode of carrying on the traffic. He subsequently accompanied him to New York, and, by his advice, Mr. Astor was induced to invest the proceeds of his merchandise in furs. With these he sailed from New York to London in 1784, disposed of them advantageously, made himself further acquainted with the course of the trade, and returned the same year to New York, with a view to settle in the United States.
He now devoted himself to the branch of commerce with which he had thus casually been made acquainted. He began his career, of course, on the narrowest scale; but he brought to the task a persevering industry, rigid economy, and strict integrity. To these were added an aspiring spirit that always looked upwards; a genius bold, fertile, and expansive; a sagacity quick to grasp and convert every circumstance to its advantage, and a singular and never wavering confidence of signal success.
As yet, trade in peltries was not organized in the United States, and could not be said to form a regular line of business. Furs and skins were casually collected by the country traders in their dealings with the Indians or the white hunters, but the main supply was derived from Canada. As Mr. Astor’s means increased, he made annual visits to Montreal, where he purchased furs from the houses at that place engaged in the trade. These he shipped from Canada to London, no direct trade being allowed from that colony to any but the mother country.
In 1794 or ‘95, a treaty with Great Britain removed the restrictions imposed upon the trade with the colonies, and opened a direct commercial intercourse between Canada and the United States. Mr. Astor was in London at the time, and immediately made a contract with the agents of the Northwest Company for furs. He was now enabled to import them from Montreal into the United States for the home supply, and to be shipped thence to different parts of Europe, as well as to China, which has ever been the best market for the richest and finest kinds of peltry.
The treaty in question provided, likewise, that the military posts occupied by the British within the territorial limits of the United States, should be surrendered. Accordingly, Oswego, Niagara, Detroit, Michilimackinac, and other posts on the American side of the lakes, were given up. An opening was thus made for the American merchant to trade on the confines of Canada, and within the territories of the United States. After an interval of some years, about 1807, Mr. Astor embarked in this trade on his own account. His capital and resources had by this time greatly augmented, and he had risen from small beginnings to take his place among the first merchants and financiers of the country. His genius had ever been in advance of his circumstances, prompting him to new and wide fields of enterprise beyond the scope of ordinary merchants. With all his enterprise and resources however, he soon found the power and influence of the Michilimackinac (or Mackinaw) Company too great for him, having engrossed most of the trade within the American borders.
A plan had to be devised to enable him to enter into successful competition. He was aware of the wish of the American government, already stated, that the fur trade within its boundaries should be in the hands of American citizens, and of the ineffectual measures it had taken to accomplish that object. He now offered, if aided and protected by government, to turn the whole of that trade into American channels. He was invited to unfold his plans to government, and they were warmly approved, though the executive could give no direct aid.
Thus countenanced, however, he obtained, in 1809, a charter from the legislature of the State of New York, incorporating a company under the name of “The American Fur Company,” with a capital of one million of dollars, with the privilege of increasing it to two millions. The capital was furnished by himself he, in fact, constituted the company; for, though he had a board of directors, they were merely nominal; the whole business was conducted on his plans and with his resources, but he preferred to do so under the imposing and formidable aspect of a corporation, rather than in his individual name, and his policy was sagacious and effective.
As the Mackinaw Company still continued its rivalry, and as the fur trade would not advantageously admit of competition, he made a new arrangement in 1811, by which, in conjunction with certain partners of the Northwest Company, and other persons engaged in the fur trade, he bought out the Mackinaw Company, and m
erged that and the American Fur Company into a new association, to be called the “Southwest Company.” This he likewise did with the privity and approbation of the American government.
By this arrangement Mr. Astor became proprietor of one half of the Indian establishments and goods which the Mackinaw Company had within the territory of the Indian country in the United States, and it was understood that the whole was to be surrendered into his hands at the expiration of five years, on condition that the American Company would not trade within the British dominions.
Unluckily, the war which broke out in 1812 between Great Britain and the United States suspended the association; and, after the war, it was entirely dissolved; Congress having passed a law prohibiting the British fur traders from prosecuting their enterprises within the territories of the United States.
CHAPTER III.
Fur Trade in the Pacific — American Coasting Voyages — Russian
Enterprises. — Discovery of the Columbia River. — Carver’s
Project to Found a Settlement There. — Mackenzie’s
Expedition. — Lewis and Clarke’s Journey Across the Rocky
Mountains — Mr. Astor’s Grand Commercial Scheme. — His
Correspondence on the Subject With Mr. Jefferson. — His
Negotiations With the Northwest Company. — His Steps to Carry
His Scheme Into Effect.
WHILE the various companies we have noticed were pushing their enterprises far and wide in the wilds of Canada, and along the course of the great western waters, other adventurers, intent on the same objects, were traversing the watery wastes of the Pacific and skirting the northwest coast of America. The last voyage of that renowned but unfortunate discoverer, Captain Cook, had made known the vast quantities of the sea-otter to be found along that coast, and the immense prices to be obtained for its fur in China. It was as if a new gold coast had been discovered. Individuals from various countries dashed into this lucrative traffic, so that in the year 1792, there were twenty-one vessels under different flags, plying along the coast and trading with the natives. The greater part of them were American, and owned by Boston merchants. They generally remained on the coast and about the adjacent seas, for two years, carrying on as wandering and adventurous a commerce on the water as did the traders and trappers on land. Their trade extended along the whole coast from California to the high northern latitudes. They would run in near shore, anchor, and wait for the natives to come off in their canoes with peltries. The trade exhausted at one place, they would up anchor and off to another. In this way they would consume the summer, and when autumn came on, would run down to the Sandwich Islands and winter in some friendly and plentiful harbor. In the following year they would resume their summer trade, commencing at California and proceeding north: and, having in the course of the two seasons collected a sufficient cargo of peltries, would make the best of their way to China. Here they would sell their furs, take in teas, nankeens, and other merchandise, and return to Boston, after an absence of two or three years.
The people, however, who entered most extensively and effectively in the fur trade of the Pacific, were the Russians. Instead of making casual voyages, in transient ships, they established regular trading houses in the high latitudes, along the northwest coast of America, and upon the chain of the Aleutian Islands between Kamtschatka and the promontory of Alaska.
To promote and protect these enterprises, a company was incorporated by the Russian government with exclusive privileges, and a capital of two hundred and sixty thousand pounds sterling; and the sovereignty of that part of the American continent, along the coast of which the posts had been established, was claimed by the Russian crown, on the plea that the land had been discovered and occupied by its subjects.
As China was the grand mart for the furs collected in these quarters, the Russians had the advantage over their competitors in the trade. The latter had to take their peltries to Canton, which, however, was a mere receiving mart, from whence they had to be distributed over the interior of the empire and sent to the northern parts, where there was the chief consumption. The Russians, on the contrary, carried their furs, by a shorter voyage, directly to the northern parts of the Chinese empire; thus being able to afford them in the market without the additional cost of internal transportation.
We come now to the immediate field of operation of the great enterprise we have undertaken to illustrate.
Among the American ships which traded along the northwest coast in 1792, was the Columbia, Captain Gray, of Boston. In the course of her voyage she discovered the mouth of a large river in lat. 46 19’ north. Entering it with some difficulty, on account of sandbars and breakers, she came to anchor in a spacious bay. A boat was well manned, and sent on shore to a village on the beach, but all the inhabitants fled excepting the aged and infirm. The kind manner in which these were treated, and the presents given them, gradually lured back the others, and a friendly intercourse took place. They had never seen a ship or a white man. When they had first descried the Columbia, they had supposed it a floating island; then some monster of the deep; but when they saw the boat putting for shore with human beings on board, they considered them cannibals sent by the Great Spirit to ravage the country and devour the inhabitants. Captain Gray did not ascend the river farther than the bay in question, which continues to bear his name. After putting to sea, he fell in with the celebrated discoverer, Vancouver, and informed him of his discovery, furnished him with a chart which he had made of the river. Vancouver visited the river, and his lieutenant, Broughton, explored it by the aid of Captain Gray’s chart; ascending it upwards of one hundred miles, until within view of a snowy mountain, to which he gave the name of Mt. Hood, which it still retains.
The existence of this river, however, was known long before the visits of Gray and Vancouver, but the information concerning it was vague and indefinite, being gathered from the reports of Indians. It was spoken of by travellers as the Oregon, and as the Great River of the West. A Spanish ship is said to have been wrecked at the mouth, several of the crew of which lived for some time among the natives. The Columbia, however, is believed to be the first ship that made a regular discovery and anchored within its waters, and it has since generally borne the name of that vessel. As early as 1763, shortly after the acquisition of the Canadas by Great Britain, Captain Jonathan Carver, who had been in the British provincial army, projected a journey across the continent between the forty-third and forty-sixth degrees of northern latitude to the shores of the Pacific Ocean. His objects were to ascertain the breadth of the continent at its broadest part, and to determine on some place on the shores of the Pacific, where government might establish a post to facilitate the discovery of a northwest passage, or a communication between Hudson’s Bay and the Pacific Ocean. This place he presumed would be somewhere about the Straits of Annian, at which point he supposed the Oregon disembogued itself. It was his opinion, also, that a settlement on this extremity of America would disclose new sources of trade, promote many useful discoveries, and open a more direct communication with China and the English settlements in the East Indies, than that by the Cape of Good Hope or the Straits of Magellan. This enterprising and intrepid traveller was twice baffled in individual efforts to accomplish this great journey. In 1774, he was joined in the scheme by Richard Whitworth, a member of Parliament, and a man of wealth. Their enterprise was projected on a broad and bold plan. They were to take with them fifty or sixty men, artificers and mariners. With these they were to make their way up one of the branches of the Missouri, explore the mountains for the source of the Oregon, or River of the West, and sail down that river to its supposed exit, near the Straits of Annian. Here they were to erect a fort, and build the vessels necessary to carry their discoveries by sea into effect. Their plan had the sanction of the British government, and grants and other requisites were nearly completed, when the breaking out of the American Revolution once more defeated the undertaking. *
The exped
ition of Sir Alexander Mackenzie in 1793, across the continent to the Pacific Ocean, which he reached in lat. 52 20’ 48”, again suggested the possibility of linking together the trade of both sides of the continent. In lat. 52 30’ he had descended a river for some distance which flowed towards the south, and wag called by the natives Tacoutche Tesse, and which he erroneously supposed to be the Columbia. It was afterwards ascertained that it emptied itself in lat. 49 degrees, whereas the mouth of the Columbia is about three degrees further south.
When Mackenzie some years subsequently published an account of his expeditions, he suggested the policy of opening an intercourse between the Atlantic and Pacific oceans, and forming regular establishments through the interior and at both extremes, as well as along the coasts and islands. By this means, he observed, the entire command of the fur trade of North America might be obtained from lat. 48 north to the pole, excepting that portion held by the Russians, for as to the American adventurers who had hitherto enjoyed the traffic along the northwest coast, they would instantly disappear, he added, before a well regulated trade.
A scheme of this kind, however, was too vast and hazardous for individual enterprise; it could only be undertaken by a company under the sanction and protection of a government; and as there might be a clashing of claims between the Hudson’s Bay and Northwest Company, the one holding by right of charter, the other by right of possession, he proposed that the two comparties should coalesce in this great undertaking. The long-cherished jealousies of these two companies, however, were too deep and strong to allow them to listen to such counsel.
In the meantime the attention of the American government was attracted to the subject, and the memorable expedition under Messrs. Lewis and Clarke fitted out. These gentlemen, in 1804, accomplished the enterprise which had been projected by Carver and Whitworth in 1774. They ascended the Missouri, passed through the stupendous gates of the Rocky Mountains, hitherto unknown to white men; discovered and explored the upper waters of the Columbia, and followed that river down to its mouth, where their countryman, Gray, had anchored about twelve years previously. Here they passed the winter, and returned across the mountains in the following spring. The reports published by them of their expedition demonstrated the practicability of establishing a line of communication across the continent, from the Atlantic to the Pacific Ocean.
Complete Fictional Works of Washington Irving (Illustrated) Page 298