# Portland, Oregon: Its History and Builders/Volume 1/Chapter 13

CHAPTER XIII.
1849— 1858.
The Hudson Bay Company Offers to Sell Out — Organization of Territorial Government — Lane Reaches Oregon City — The First Census of Oregon — The Territorial and State Seals — Effect of the California Gold — Cost of Goods — Character of Clothes — Territorial Progress — Discovery of Gold in Oregon — Organiza- tion of State Government — State Officials, Notices of.
Foreseeing that the aggressive Americans who had set up an independent American state in the heart of the Oregon wilderness, and surrounded on all sides by the forts of the Hudson's Bay Company, would sooner or later force the hand of the United States government and compel national suzerainty and thereby greatly depreciate, if not destroy the value of said company's possessions in Oregon, they set their agents to work to sell out to the United States. It was a cunningly devised scheme to make the Americans pay for a country they already owned. And the great wonder is, considering the disgraceful manner in which the Polk administration gave away one-half the American territory west of the Rocky mountains, that the Britishers did not get the American gold into the bargain.
At the time this proposition was broached, in 1848, the Oregon provisional government was informally represented at Washington city by Col. Joseph Meek, and J. Quinn Thornton. The bill for a territorial government had been agreed upon. And pending final action, Mr. Knox Walker, the private secretary of President Polk, brought to Mr. Thornton at his lodgings in Washington city, a Mr. George N. Saunders, introduced him, and left him with Thornton. Mr. Saunders then opened up his business proposition, which was in substance, that in view of pending legislation which might induce inharmonious relations in Oregon, the Hudson's Bay Company were willing to sell out all their possessions in Oregon for the sum of three million dollars, and depart in peace. And further- more if Mr. Thornton would favor and advocate such a composition of imaginary troubles he would be paid a fee of twenty-five thousand dollars. Thornton regard- ing this, according to his own account of it, as an attempt to bribe him to betray his country, threatened to kick Saunders down stairs ; whereupon Saunders departed without that trouble. Not content with this, Thornton wrote a vehement letter to the president, bitterly denouncing the whole business, whereupon, the president's private secretary came back and asked Thornton to withdraw his letter, which he refused to do.
That there was some foundation for this story, is presumable, from the fact that Sir George Simpson and Mr. Finlayson, representatives of the Hudson's Bay Company, visited Washington City at that time, and that on their leaving ​
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the city, they left the company's interests in the hands of the British charge de affairs, Crampton. The Hudson's Bay Company placed a large valuation on their property and lands in Oregon as guaranteed under the treaty of 1846. And as the Oregon Americans held in utter contempt their claims to the lands, it is not surprising that the company sought to recoup their losses through the national treasury. But the scheme was entirely too rank to have got through congress in the face of the uprising of public sentiment against what was called the "Loco-foco" sell out. "Loco-foco" was the slang name for Democracy in those days.
But the sequel to this scheming behind the curtains is quite as interesting as the main play. The president had promised to appoint Thornton one of the territorial judges in Oregon, and congress had allowed an item of ten thousand dollars for incidental expenses in connection with the organizing of territorial government in Oregon. Thornton thought he ought to be allowed his expenses to Washington and return out of that fund. But on account of Thornton's letter above referred to, the president refused, and he also revoked his promise to appoint Thornton to a judgeship. Thornton then scurried around for help. Congressman Smith of the Alton, Illinois district, went to the president to allow Thornton to be paid, and the president refused. Then Senator Benton's influence was sought ; and Benton put the matter off on the "Little Giant," Senator Douglas. And Douglas, who was never beaten but once, and then by "Honest Old Abe," was equal to the emergency. He went to the president, and requested that Thornton be allowed his expenses and Polk refused him, as he had all the others. Then Douglas blandly remarked, "Well, I'll just give Thornton his expenses out of my own pocket, and let him get back to Oregon ; and at the next session of congress, I will introduce a bill to pay Thornton what he ought to have." This threat brought President James K. Polk to terms. He did not want the matter aired in the next congress, and he forthwith made an order that J. Quinn Thornton, representative of the Oregon provisional government, be allowed $2,750 for his traveling expenses from Oregon to Washington City and return. And this was the last mention of the provisional government of Oregon, congress or the president.
Some people imagine that all the political corruption in this country com- menced with the timber land stealing era in Oregon that ended up with the ruin of a United States senator, a member of congress and an ex-district attorney; but the career of the man Saunders above mentioned, shows that the poor little land stealers in Oregon were in very small business, compared with the opera- tion of Saunders. His career is quite well known ; and as it seemed to start with an attempt to sell the British claim to Oregon, it may be stated that Saunders had been the editor of the wrecked "The Democratic Review," a very influential magazine known to the old-timers away back in the forties. And while on the Review, he got a reputation as "President Maker." After losing his position on the Review, he became a lobbyist around the halls of congress. He was the manager of the faction that forced James Buchanan on the democratic party for president in 1856, over the heads of Stephen A. Douglas and Franklin Pierce; and carried Pennsylvania for Buchanan against the solid Quaker vote against him. Buchanan appointed him naval agent at New York, in which office he stole $21,000 from the government; then went down south, preached secession, and when the war came on, went to Canada to plot yellow fever scourges against his native land.
President Polk was anxious to have Oregon organized as a territory during his administration, and hurried the organizing act through congress. And before the act became a law, he had all the officers of the territory picked out, two of which, Burnett for associate justice, and Meek for marshall, were residents of Oregon. As soon as the act passed, he sent in all his nominees for territorial officers in one communication to the senate ; Joseph Lane of Indiana for governor, Knitzing Pritchett of Pennsylvania for secretary, Wm. T. Bryant of I ​ndiana for
chief justice, Peter H. Burnett of Oregon and James Turney of Illinois for associate justices, Isaac W. R. Bromley of New York for United States attorney. Joseph L. Meek, marshall, John Adair of Kentucky, collector of customs. Of these, Turney declined, and O. C. Pratt of California, was appointed in his stead. Burnett declined and Wm. Strong of Ohio, father of Thomas N. Strong, Esq., of Portland, was appointed in place of Burnett. Bromley declined and Amory Holbrook of New York, was appointed in his place.
The most distinguished of these was Gen. Lane, who had served with dis- tinction in the Mexican war. Lane was born in Buncombe county, North Carolina, in 1801. Was moved to Kentucky while a child. Got married at the age of nineteen, and settled in the state of Indiana in 1820. Lane was wholly a self-made man ; winning recognition and fame with all the odds of poverty and lack of education against him. His one talent that never failed him, was an eloquent tongue, supplied with an easy and natural flow of good English. This early landed him in the legislature of Indiana. He went into the Mexican war as a private, was speedily made captain, then colonel, and came out a brigadier- general; and on this record was sent to Oregon as the first governor under the United States law. In Oregon he became delegate to congress. United States senator, and then candidate for vice-president on the pro-slavery ticket, with John C. Breckinridge for president; returned to Oregon in i860, and retired to private life, dying at Roseburg, April 19th, 1881.
Governor Lane reached Oregon in March, 1849, and lost no time in setting the territorial government in operation. One of his first acts was to order a census of the people in the territory. This taken, showed a total population in 1849, of Americans, of 8,785 of all ages and both sexes, and 290 foreigners. But this was not, in fact, half of the people belonging in the territory, on account of the great exodus to the newly discovered gold m.ines of California.
After taking the census, the governor undertook to establish a permanent peace with the Indians, by a liberal distribution of presents to all the chiefs of the different tribes. This did not have much influence, for it was not long until Governor Lane had a lot of trouble with the Klickitats and Cayuses.
At the first session of the territorial legislature called by the governor, a memorial to congress was adopted, asking congress to pay the expenses of the provisional government. But congress always ignored the claim, and never did pay it, clearly showing or acknowledging that the provisional government was wholly an independent government for the protection and benefit of all the people, Americans and British alike.
One of the first duties of the first legislature under act of congress, was to adopt a territorial seal. And they found a design ready for adoption. J. Q. Thornton was at Washington in 1848, working for territorial organization; he anticipated the wants of the territory by drafting a design that was eminently appropriate, an engraving of which is here given. This seal was used by the territorial officers, but does not appear to have been adopted by law. The motto — "Alis volat propriis" — "I fly with my own wings," indicated the origin, crowning honor and distinction of this state, and should never have been abandoned for the senseless design on the present seal of the state.
Now the state has practically no legally authorized seal, alterations in the seal that is used, having been made without authority of law. The original state seal was prepared by Harvey Gordon at the instance of a committee composed of Benjamin F. Burch, L. F. Grover, and James K. Kelly. That original seal shows an escutcheon, supported by thirty-two stars and divided by an ordinary with the inscription "The Union" thereon. In chief are mountains, a wagon, the Pacific ocean, on which a British man-of-war is departing, and an American vessel arriving. This represents the early settlements, and the cessation of the joint occupancy of the country by Great Britain and the United States. The second quartering is in gold, with a sheaf, a plow and a pick, denoting the pursuits of husbandry and mining. Also the seal contains the American eagle, and the ​
legend "State of Oregon." In 1903, the seal was amended to include thirty- three stars and an elk, with branching antlers.
But in the new seal were made additions of a rising sun, some horses and some material alterations in the location of the various objects described. Chief clerk, Corey, is at a loss to know just how to send the state seal for use at the national capital, as there are apparently some unauthorized additions as the seal now stands.
The large prices paid for Oregon produce and lumber by the great influx of population to the California gold fields and towns, together with the bushels of gold dust brought back to Oregon by returning Oregonians from the mines, produced a vital change in every phase of Oregon life and development. It was in fact the first breath of prosperity the little community had received since casting off all the old ties in Missouri and other eastern states. Before gold was discovered, it was free land that attracted the immigrants for two thousand miles. And the land hunters had made as many and severe sacrifices to reach and get the land as did the gold hunters in their crazy rush to get the yellow metal. But there was a difference. The men and women who came to get land were not land speculators, but land cultivators. They were not of the class that wanted to grow rich suddenly. In fact they did not think of great riches. It was independence and homely comforts they sought, where they could sit under their own apple trees, owing no man anything, and repose in dignified inde- pendence. And those of this class that went to California for gold, soon satisfied their desires and returning to their farms with well filled purses, prudently and sensibly expended their treasures from the mines in improving their farms and building better homes.
Nevertheless the easily gotten gold had a powerful influence on the state, and especially on this city. The gold fields were near enough to Portland to stimulate its trade and largely increase its shipping. This built up the city and kept its population at home and interested in matters more permanent than placer gold mining. Then also, the distance from the gold mines and the steady going character of the Oregon people protected them from the demoralization, gambling and dissipation of all kinds which afflicted California for years, and in fact colored the whole life of that state down to the present. The provisional government of Oregon would not have stood twenty- four hours in the excite- ment, crime and reckless craze for gold in California in 1849. But here it was universally respected, and made the servant of peace and security for life and property.
The gold dust era produced a remarkable change in another quarter. The Hudson's Bay Company had always been the controlling factor in all business transactions involving the progress of the community ; but now a new master of business appeared on the Oregon stage. The gold craze in California car- ried away the company's servants and left them without men to trap for furs or man their forts and manage the Indians. But worse even than this, the newly made land laws required all land claimants to take the oath of allegiance to the United States, and the British subjects lost no time in abjuring old Eng- land and casting in their lots with the Missourians. It was an awful trial for ardent Britishers, but it had to be done. All disputed questions were settled, the stars and stripes floated everywhere, and Portland took on new life and ambition for the future.
The plethora of gold, just as much as the over-issue of paper money, al- ways raises the prices of goods. It did so in Portland in 1849. Everybody road horseback in those days, and saddles were a prime necessity. And saddles that cost from ten to twelve dollars in New York, were sold here in Portland for from fifty to seventy-five dollars apiece. Playing cards that cost f ​ive cents a
pack, were sold to the soldiers at Vancouver for a dollar and a half. Brown sugar that cost five cents a pound by the barrel, was sold for from forty to fifty cents a pound at The Dalles, Walla Walla, and other places outside of Portland. Cut nails that cost three cents a pound in New York, were sold for fifteen cents a pound in Portland, and everything else in proportion.
The people had passed through the worst of their straits for the necessaries of life which they suffered on reaching the country five years before the gold excitement. Even then, thanks to the wise counsel of Dr. McLoughlin, who advised them all to plant potatoes and sow wheat, they all had plenty to eat. But on the subject of clothes, everybody was on a dead level in the days of 1844, and that level was not far above the native red skins. The incoming immigration had exhausted the stock of goods in all the stores at Vancouver and Oregon City. Clothing was, like "Joseph's coat of many colors," made by putting piece to piece without regard to color or texture ; and the Indian moc- casin took the place of boots and shoes with about everybody in Oregon at that time. The veteran farmer, poet, statesman and patriot, John Minto, still living at Salem with all his faculties unimpaired, describes his experience with clothes in 1844 when he went to Vancouver to take a boat and goods up the Columbia. His pantaloons were ripped up to the knees; he had no coat, having worn out the one he started with across the plains, and a blanket obtained of McLough- lin doubled across his shoulders over a string around his neck to hold it in place, took the place of coat and with his feet nearly bare, in that plight he faithfully fulfilled his contract and earned his first money in Oregon. That's the sort of men that laid the foundations of old Oregon ; and one such man is worth a thousand of the mollycoddles turned out of colleges today to crowd the learned professions and run an automobile.
With the settlement of the title to the country, the organization of the ter- ritorial government by the United States and the influx of gold for currency, the city took on new life, and everywhere there was abundant evidence of the new order of progress and prosperity. Immigration from the states overland by wagons continued, but with so many comforts and conveniences along the way that the immigrants arrived in good shape, and with ready means to go to work. The donation land law worked wonders in attracting settlers and filling up all the open spaces in the Willamette, Umpqua and Rogue River val- leys. The prosperity and influence of these settlements was reflected in the in- creasing trade of the city. Means of transportation were scarce and expensive, but what was lacking in this regard was fully made up by the enterprise of the people. Wagon trains and pack mule trains would load up with goods in Port- land and make their way as far south as the gold mines at Jacksonville. And farmers in Douglas county would haul bacon, lard, butter, cheese and hides all the way bv wagon transportation two hundred miles to Portland, and haul back a wagon load of dry goods and groceries. In a limited way, steamboat trans- portation had been inaugurated on the Willamette and Columbia, and was being extended as rapidly as possible.
The territorial government had started off well. Lane was an energetic executive, and after vainly trying to maintain peace with the Indians, vigorously pushed measures to punish them for depredations on the Rogue River settlers, until a lasting peace was secured. But all the ambitious men saw that the ter- ritorial government was only a makeshift, and could not last long. And it was not surprising that the embryonic statesmen should be found laying their fences and planting their stakes for the big plums of United States senator- ships. United States judgeships, and so on. This very uncertainty in the tenure of the territorial officers, led to scheming for advantages and to the creation of factions all working for selfish ends rather than public welfare.
And it was during the life of the territorial government that the search for gold in Oregon commenced. Oregonians returning with gold from the Califor- nia mines, and now familiar with the native gold, soon heard the report of gold ​found by an immigrant party coming in through the Malheur country. It was reported that such a party had found a lot of yellow metal in the bed of a creek, and to try it pounded out a piece on the tire of a wagon wheel, but not knowing what it was tossed it into the wagon box where it was lost on the way to Portland. It was recalled that at the place where the gold was found, the immigrants lost a "blue bucket," and so the exciting story of the Blue Bucket mine got started, and repeated attempts to find the spot were, made, some of the parties being chased out of the country by the Suake Indians, losing all their horses and camp outfits. This mythical placer mine had held its jack-o-lantern attraction to the enthusiasts in gold mine hunting for forty years, the last reported party having gone out there hunting for the old "blue bucket" in the year 1900. But hunting the mine that was never found, led to the examination of all the eastern Oregon streams for placer gold, and the first actual find seems to have been on the John Day river in Grant county in 1861.
Portland was vitally interested in these discoveries. The gold hunting mania is never assuaged. It grows by what it feeds on, no matter whether it is delusion or gold. When once the gold fever gets a strangle hold of a man, he never gets rid of it. One discovery of gold led to another, and soon there were thousands of armed men pouring into eastern Oregon to mine for the precious metal and fight the Indians if need be. The gold fever practically settled the Indian question, and opened eastern Oregon to settlement. The demand of the miners for transportation soon placed steamboats on the upper Columbia, and gold dust poured into Portland for goods, and the city grew and prospered beyond all former experiences.
The continued influx of immigration from the east by wagon road, and of business men by ocean steamer, steadily but slowly built up the city and state; and the people, becoming restless under the changing territorial governors, clamored for a state organization and home rule. It is not a material fact for this history, but an interesting one to the people generally, that in the space of ten years, under territorial government, the Oregonians had four different governors—Joseph Lane of Indiana, appointed in 1848; John P. Gaines of Kentucky, appointed in 1850; John W. Davis of Indiana, appointed in 1853; and George Law Curry of Philadelphia, appointed in 1854.
General John P. Gaines was a man of ability, distinction, and an honorable military record, having been a soldier in the war of 1812, and winning laurels in the war against Mexico.
Governor Davis was a physician by profession, born in Pennsylvania, moving to Indiana, got into the legislature, became speaker of the house, was three times elected to congress and twice president of the national democratic convention before coming to Oregon.
Governor Curry was born in Philadelphia in 1820 of a distinguished family and emigrated to St. Louis in 1843, and to Oregon in 1846. His first connection with the government was that of secretary of the territory, and became governor in the November following the resignation of Governor Davis, and discharged the duties of the office with credit and ability until the state was admitted to the Union in 1859. Curry county was named in his honor. He died July 28, 1878, leaving four sons, three of which R. B., N. B., and William still reside in this city.
Of all the other territorial officials appointed from Washington city, three only attained prominence and distinction in the history of the state; and these three were territorial judges. Matthew P. Deady, George H. Williams and William Strong largely influenced and controlled the destinies of Oregon. Justice Deady attained a national reputation as a jurist, and was for some years the dean of the United States judiciary. And he was in more respects than length of service the greatest man on the federal bench. Although fearless and incorruptible, he loved his high office for its sacred duty of rendering justice ​
to high and low, rich and poor, without money and without price, intimidation or favor.
Judge Williams, too, attained a national reputation, but not as a judge. He was on the great question of reconstructing the seceded states easily the master mind and most eloquent speaker in the United States senate. Further notices of Justice Deady and Judge Williams will appear in other parts of this history.
Of Justice Strong, it may be said that he was the leader of the Oregon bar in his day. He was the first great authority on corporation law in Oregon, and he has never had his equal since.
At the first election under the state government, held in 1858, John Whit- aker of Lane county, was elected governor; Lafayette Grover was elected rep- resentative to congress ; Lucien Heath, secretary of state ; John D. Boon, state treasurer; Asahel Bush, state printer; Matthew P. Deady, Riley E. Stratton, Reuben P. Boise, and Aaron E. Wait, judges of the districts and of the su- preme court. Judge Deady was almost immediately thereafter appointed U. S. district judge for the district of Oregon, and did not qualify as a state judge. And at the ensuing session of the legislature. General Joseph Lane of Douglas county, and Delazon Smith of Linn county, were elected United States sena- tors.
John Whitaker, the governor, was born in Dearborn county, Indiana, in 1820, and came to California across the plains in 1849, and up to Oregon in 1852; he was reared on a farm, and ranked as a farmer all his life. His first office was that of county judge of Lane county, and then he was sent to the legislature. After holding the office of governor, he was once elected to con- gress, and after that held the office of U. S. revenue collector for this district. He was a man of moderate ability, but of sterling integrity, and earned the
CHAPTER XIV. 1850—1893.
Taking a stroll through Portland on May day, 1850, there was not found any good opportunity for a promenade. The sidewalks of rough planks were of the most primitive and make-shift order; and reaching the outskirts of the town in any direction—and the visitor did not have far to go to do so—he found it fenced in with the immense crop of fallen timber lying criss-cross in every possible shape. This resulted from no lack of desire on the part of the town's people to have the outlook better, but from inability to master the frowning obstructions of an inpenetrable forest. The automobilists who skip out to Mt. Hood in a couple of hours over a nice smooth road now-a-days, think they have seen the grand old forests of Oregon. But they have not. What they can see now along the road to Mt. Hood is nothing compared with what existed on Portland townsite sixty years ago.
It was a serious undertaking to build a city, in such surroundings. The erection of dwellings and business houses went on so slowly that progress was scarcely perceptible. People built a house from dire necessity, and then only the smallest and cheapest house that would serve their wants. There were but two houses in the town in 1850 that were finished on the inside with plaster. The first hotel was called the California house, and stood on Front street above Alder. Dennis Harty kept a boarding house on Jefferson street. Harty made some money at the business and went up to Polk county and took up a land claim, and when the Narrow Gauge Railroad was built up the Yamhill valley in 1878, Harty 's widow boarded the construction forces on her donation claim. The first hotel of any pretensions was erected by General Coffin in 1851, at the northeast comer of Front and Washington streets. It was subsequently enlarged by additions and called the "American Exchange;" and was finally sold to Van de Lashmutt, who moved it up to the corner of Front and Jefferson streets where it stands to-day. Wooden buildings continued to be the rule until 1853, when W. S. Ladd erected a small brick building for store purposes on Front street. It is still standing and doing business, being now occupied by sheet-iron workers, manufacturing all sorts of pipe.
The following list of brick buildings erected from 1853 to 1860 was prepared by the late Edward Failing in his life time, and is reliable: