# Oregon Historical Quarterly/Volume 5/A Brief History of the Oregon Steam Navigation Company

A BRIEF HISTORY OF THE OREGON STEAM NAVIGATION COMPANY.
By P. W. Gillette.
Away back, long before the white man had seen the Pacific Coast or even America; before history in this country began, and when vague legendry filled its place, and current events were handed down from generation to generation by dim traditions; and when, as the Indians say, the gorge of the Columbia through the Cascade Mountains was much narrower than it is now, a part of the huge mountain fell into and dammed up the great river. But ere long" the impetuous water forced its way through and under the fallen mountain, leaving a natural bridge spanning the river. Unnumbered ages passed, when an earthquake came, causing the earth to shake, the mountains to totter, and causing the bridge to fall into the river, filling its channel with masses of stone and forming an obstruction to navigation now known as the "Fall," or "Cascades of the Columbia." As far back as Indian tradition goes, the Cascades of the Columbia have been an important point on account of the break in navigation, making a portage of everything carried in boats an absolute necessity.
Its importance was greatly increased by the extensive fishing grounds made by the "long narrows," and rapid current of the river at that place, enabling the Indians with spear and scoop-net to capture vast quantities of salmon, which made them an easy living, as well as an article of great value in trade with other tribes. The village of Wish-ram at the head of the falls was a mart of trade. Irving said: "These Indians were shrewder and more intelligent than other Indians. Trade had sharpened their wits, but had not improved their honesty, for they were a community of arrant rogues and freebooters." They took every possible advantage the ​location gave them, always making exorbitant demands and charges for any privilege granted or service rendered, and often robbed weak and unprotected parties. When Lewis and Clark passed there with well-armed and well-drilled men they were mi molested, but seven years later, when Wilson P. Hunt arrived there with his half-starved, worn-out and discouraged party, they were very troublesome and insolent. Soon after this part of the country fell into the hands of the white men, he, too, saw the importance of that location and eagerly seized it, and was no less willing to make it a source of profit, in fact, to use it "for all it was worth," proving that human nature is the same, be it Indian or white man. F. A. Chenoweth, afterwards Judge Chenoweth, of Corvallis, settled at the Cascades, and in 1850 built the first portage road on the line of the old Indian trail, which had been in use so long "that the memory of man runneth not to the contrary."
His road was a railroad built entirely of wood, and the car was drawn by one lone mule. The road was on the north side of the Columbia, and at that time was in Oregon. I saw him in Salem in the winter of 1852 and 1853. a Representative from the Cascades. He was made a Circuit Judge in Oregon Territory by President Pierce and lived to be an octogenarian.
Then there were no settlers east of the Cascade Mountains. and no immediate prospect of any, so he sold his road to D. F. and P. F. Bradford, who were either more hopeful of the future, or had better foresight than Judge Chencweth. They rebuilt the road in 1S."><;. making many improvements on it. The Indian massacre at the Cascades occurred while this improvement was helm; made. The men were attacked while at work, and fled in all directions; one or two of them being killed.
This road was rebuilt again in 1861, with iron rails, and had steam locomotives. It was (lie first railroad of the kind built in Oregon, and though small was the beginning of railroading in the Northwest.
This was the first railroad propelled by steam power I ever traveled upon.
​Some time later in the '50's Colonel Ruckel and H. Olmstead built and operated a portage road on the south bank of the Columbia.
Before the portage roads and the steamships combined their interests, the portage company received half the freight charges on all freights to their destination. If the price was $40 per ton from Portland to The Dalles, and that was the regular price for many years, the portage men got $20 per ton for carrying it around the falls, six miles.
The old Columbia was the first steamboat, I believe, to go as far as the Cascades. The first steamboat built above the Cascades was the James R. Flint, built by the Bradfords, J. O. Vanbergen, and James R. Flint, of San Francisco. She was a small side- wheel boat, with single engine "geared" to the shafts, and when in motion sounded more like a thrashing machine than a steamboat. On her first trip down from The Dalles old Dr. Newell was a passenger, and for a time seemed nervous and disturbed. He finally asked one of the employes what made that rattling sound. "Oh, that's only the cook grinding coffee," was the reply.
In the fall of 1861 the Flint was taken over the Cascades and run between Portland and Oregon City. Later on she was cut in two, lengthened, and the machinery of the old Columbia put into her and named Fashion.
The Bradfords next built the Mary, a double-engine boat, to run between the Cascades and The Dalles. The Mary was lying at the Upper Cascades at the commencement of the Indian massacre in 1856, and was dispatched to The Dalles in great haste for relief. She brought back a company of cavalry in barges.
​Soon after building the Mary the Bradfords built the Hassalo to run on the Cascades and Dalles route. In the meantime R. R. Thompson. L. W. Coe and others built a small boat at the Upper Cascades to be taken to the Upper Columbia beyond Celilo. When she was about ready to start out on her first trip, by some mistake her lines were east off before she had steam enough to stem the current of the river and she drifted over the falls. She received so little injury that she;is taken to Portland, fitted up and sold to go to Fraser River. The same parties then built the Wright at Celilo in 1859. She was the first steamboat that ever disturbed the waters of the Columbia beyond Celilo. The Wright made a bushel of money for her owners.
The old steamer Belle, built by Captain Dick Williams, S. G. Reed and others, was the first boat to run regularly between Portland and the Cascades. In those early days there were no settlers east of the mountains, therefore nearly all of the transportation business on the river was for the Government, transporting soldiers, guns, military supplies, etc.
Transportation between Portland and The Dalles was $40 per ton by measurement, and passenger fare proportionately high.
The Government bought a quantity of hay at San Francisco for the military post at Fort Dalles. By the time it reached its destination it had cost "Uncle Sam" $77 per ton.
Buckle and Olmstead built the steamer Mountain Buck and put her on the route between Portland and the Cascades, and soon after built the little steamer Wasco, to run between the Cascades and The Dalles, which, with their portage road. gave them a through line to The Dalles; this was near 1859 or 1860. Their line, of course, took away much of the business from the portage' road on the north side of the river and the boats running in connection with it.
Benjamin Stark, S. G. Reed, R. Williams, Hoyt and Wells, owned the steamers Belle, Senorita, and Multnomah, one of which ran from Portland to Astoria; the others, in ​connection with the Bradford road and their boats, from the Cascades to The Dalles. 0. Humason owned the portage road from Dalles City, around the dalles of the Columbia to Celilo, 15 miles, using oxen and mules and great freight wagons to carry passengers, until the portage railroad was built in 1862.
Before the steamer Wright made her appearance on the river above Celilo all freight was transported above Celilo on what was called schooners, which were simply schooner-rigged barges.
During the greater part of the year there is a strong wind on that part of the river, which often enabled them to make good time. I saw one or two of these crafts as late as 1862. But they soon disappeared when steamboats came, and, like all primitive things, were pushed aside by the hand of progress.
By 1859 the transportation business had greatly increased, and there being two complete lines between Portland and The Dalles, produced strained relations between the two opposing companies, and a rate war seemed imminent. Several efforts had already been made to combine all the different interests under one management, but all had failed. At length an arrangement was reached. The portage roads at the Cascades and the steamboats, wharfboats and property belonging with them, were appraised, each at its cash value. the whole amounting to $175,000. On the 29th day of December, 1860, articles of incorporation were signed and filed at Vancouver, Clark County, Washington Territory, incorporating the Oregon Steam Navigation Company, shares $500 each. There were 16 shareholders, the largest being R. R. Thompson, with 120 shares; Ladd & Tilton, 80 shares; T. W. Lyles, 76 shares; J. Kamm, 57 shares; J. C. Ainsworth, 40 shares; and so on down, the smallest share holder having but three shares.
In October, 1862, the company filed new articles of incorporation with the Secretary of State, at Salem, and also with the County Clerk of Multnomah County, Oregon, with a capital stock of $2,000,000, represented by 25 shareholders, at ​$500 a share. Bradford & Co. were the largest shareholders, having 758 shares; R. R. Thompson, 672; Harrison Olmstead, 558; Jacob Kamm, 354; and so on down, the smallest shareholder having but eight shares.
This combination put both portage roads and the gorge of the Columbia into the hands of a corporation, giving it perfect control of all transportation to and from every point beyond the Cascades. Thus owning both portages and all the steamboats, it is needless to say that the Oregon Steam Navigation Company found it unnecessary to consult any one as to what prices they should charge. Such an opportunity, with such unlimited power, seldom ever falls into the hands of man. It made them the absolute owners of every dollar's worth of freight and passage going up or down the great valley of the second largest river in America.
In 1855 there were no settlers living beyond the Deschutes River, but after that date they began to spread out over the country pretty fast. Previous to that date, the government had given transportation companies nearly all the carrying trade they had. But by 1860 the natural growth of the country was making considerable business. In 1861 the discovery of gold at Orofino awakened a new life in the valley of the Columbia. As if by magic the tardy wheels of commerce are unfettered, human thought and energy unshackled and turned loose with determined purpose to meet the great emergency and reap the golden harvest.
From Portland to "Powder River, Orofino, and Florence City" mines, the country resounded with the busy whirr of trade. All the steamboats and portage roads were taxed to their greatest capacity. So great was the demand for transportation that the Oregon Steam Navigation Company had to build new steamboats and improve their roads at the Cascades. The old portage wagon mad at The Dalles was entirely inadequate to do the immense business, and the company was obliged to build a railroad from Dalles City to Celilo, 15 miles.
So enormous were the charges for freight and passage, I ​am credibly informed, that the steamer Okanogan paid the entire cost of herself on her first trip. It makes my head swim now, as memory carries me back to those wonderfully rushing days, when the constant fall of chinking coin into the coffers of the company was almost like the flow of a dashing torrent. The Oregon Steam Navigation Company had become a millionaire-making machine.
The price of freight from Portland to The Dalles, about 100 miles, was $40 per ton; from Dalles to Celilo, 15 miles. $15 per ton; from Dalles to Wallula, $55 per ton; and from Portland to Lewiston, $120 per ton.
All freight, excepting solids, such as lead, nails, etc., were estimated by measurement, 40 cubic feet making a ton.
Passage from Portland to The Dalles was $8, and 75 cents extra for meals. From Portland to Lewiston passage was $60, and meals and beds were $1 each. Now the price of freight between Portland and The Dalles on farm products by boat is only $1.50 per ton ; for passage, $1.50, and 25 cents for meals. By the railroad, freight on farm products between Portland and The Dalles is $1.50 per ton, and passage $2.75; between Portland and Wallula, by rail, freight on farm products is $3.30 per ton; passage, $8.50. Between Portland and Lewiston, by rail, freight on farm products is $4.25 per ton; passage, $14.60. At the present time freights are classified, some classes being much higher than the products of the farm. Yet, notwithstanding the astounding reduction in rates, transportation companies of to-day are thriving and prosperous.
H. D. Sanborn, a merchant of Lewiston in 1862, informed me that among a lot of freight consigned to him, was a case of miner's shovels. The case measured one ton, and contained 120 shovels. The freight, $120 per ton, made the freight on each shovel $1.
A merchant at Hood River said that always before the railroad was built freight from Portland to Hood River. 85 miles, on a dozen brooms was $1.
​To better illustrate this method of measurement, I will have to relate an anecdote:
When O. B. Gibson was in the employment 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 much 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's the trouble Cap?" "I am trying to take the measurement of this blamed gun, but somehow I can't get it right," said Gibson. 'Oh, I'll show you," said the soldier, leading up a pair of harnessed mules that stood near and hitching them to the gun. "Try it now, Cap." "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, height and thickness were taken and carried out full size, the largest way of the piece. To make this method of measuring tonnage clearer, I will give one more illustration. "Old Captain'? T. W. Lyles, of San Francisco, was a large stockholder in the company, and frequently visited Portland to look after his interests. Once while here he attended a meeting of the board of directors. After the principal part of the business had been transacted, Captain Lyles arose and said: "Mr. Chairman, I move that Eph Day, a purser on one of our boats, be discharged from the service of the company." Now Eph Day was one of the favorite pursers, and everybody sprang up to know what was the matter with Eph Day. After quiet had been restored Captain Lyles said: '1 see, gentlemen, that Eph Day is purser on a boat of only 150 tons register, yet I find that he comes in at the end of every trip with a report of having carried from 250 to 300 tons of freight, and, gentlemen, he substantiates his reports by bringing in the cash for these amounts of freight. Now, while I do not claim to be much of a steamboat man, yet I can see, gentlemen, that if we allow our boats to be overladen in this manner and made to carry twice as much as they were ​designed to carry, they will soon be worn out and we will have no boats."
The meeting adjourned amidst roars of laughter, and Eph Day kept his place and still measured up big loads of freight. The Florence City gold excitement of 1862 brought the Oregon Steam Navigation Company a flood of prosperity. They could not possibly take all the business offered. 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 their goods. Their lines were kept unbroken day and night for weeks and months. Shippers were obliged to use the greatest vigilance and take every advantage to get their goods away. Often a merchant would place a large truck in line early in the morning, then fill it by dray loads during the day. That great rush continued for months. A San Francisco merchant established a store in Lewiston and shipped via Portland a large stock of goods, which arrived in Portland in the spring, but they did not reach Lewiston until late in the summer, because he had no one here to get them in line to take their turn. So, notwithstanding the enormous price of freight and passage it was impossible for them to meet the demand. So great was the increase of business on the Columbia, and so attractive the high rates received, that it tempted the People's Transportation Company, of Salem, to put on an opposition line to compete for a part of the glittering prize. But they soon learned what they should have known in the beginning, that it was impossible for any one to compete with a company who held the valley of the Columbia by the throat, and had undisputed possession of the portage roads. So they were only too glad to withdraw. and be satisfied with the Willamette River. Rates were cut down some during the short contest, but were soon restored. Some time in the '70 's Henry Villard was sent to Oregon in the interest of German bondholders in the Holladay Railroad and Steamship Line. Mr. Villard had been associated with Mr. Gould in some railroad matters and had acquired a snug fortune. During his visits to Oregon his shrewd business eye ​saw the great value and importance of the property of the Oregon Steam Navigation Company, and he made up his mind to capture the valuable prize if possible.
Some time in the fall of 1879 the press telegrams in the Portland papers announced in the most plausible matter of fact way that Jay Gould, who was then in the zenith of his financial glory, was preparing to extend his railroad system west, to the navigable waters of the Columbia, and was going to put a line of steamboats on that river to operate in conjunction with his road until it could be extended to the seaboard. Those telegrams seemed so reasonable and businesslike that many really believed that Mr. Gould was going to put this project into operation. Not long after, and before the talk produced by them had died out, it was announced that the Oregon Steam Navigation Company had sold its entire property, with all its privileges and appurtenances, to Henry Villard. Whether Mr. Villard had any hand in setting up the Gould scare crow, I know not, nor do I know whether it had any influence in causing the company to make the sale, but a prominent physician of this city informed me that after the sale was consummated, the papers all signed, and it had become known the Gould story was all a hoax, the president of the company was so chagrined and disappointed that he fell ill and was confined to his bed for many days. The doctor might have been mistaken. but he believed it himself, as he was a man who never told anything he did not believe to be true.
That valuable property was sold for $5,000,000, a small sum for property possessing such wonderful advantages, and that was then paying 15 per cent on the purchase price, with the most flattering prospect of a rapid and constant increase.
For the year ending November 30, 1879, which was the last year the Oregon Steam Navigation Company owned and operated their property, the income of the company was $1,600,000, while the expense, repairs, etc., amounted to $850,000, leaving a profit of $750,000. At that rate it would, in about six and a half years, make enough to pay the purchase price.
​They received about $3,000,000 more than the actual cost of the property. The $175,000 put in when the company was first organized, in 1860, was about all the cash ever put up. That small sum was the prolific nest egg from which so many fortunes and millionaires were hatched.
It may be interesting to mention that for many years after the organization of the Oregon Steam Navigation Company they paid no attention to or had any boat on the river between Portland and Astoria, considering it of so little importance as to be unworthy their attention. Not until the salmon-packing business had reached considerable magnitude did they give it any notice. In 1865 the company found the Astoria route had grown to be of sufficient value to be worth taking. All they had to do was to notify parties running boats on that route that they wanted possession, and that the company would buy their boats if the price suited. Of course the price suited, because no one would be foolish enough to oppose the Oregon Steam Navigation Company. The Oregon Railway & Navigation Company grew out of the Oregon Steam Navigation Company, continuing its business, and almost immediately began the construction of a railroad up the Columbia from Portland. That company was controlled by men in touch with the modern business world in the older States, and at once adopted a broader and more liberal course, fully understanding that the rapid development and settlement of the country would advance their interest and increase their business. They soon reduced the rate of transportation, giving the farmer better compensation for his labor and encouraging him to produce more. The "live-and-let-live" policy which they inaugurated at once gave a new stimulus to the whole country.
Unquestionably, the Oregon Steam Navigation Company had held in check and kept back the growth of the country east of the Cascade Mountains for years, though perhaps unintentional on its part. It had so long been accustomed to receive such exceedingly liberal compensation for its services that I have no doubt they believed farm products could not ​be carried to Portland at rates that would leave anything for the farmer. Captain James V. Troup, who commanded one of the boats on the upper river, said to me that ho had so many applications to bring wheat to Portland, which ho had no authority to do, that he finally wont to the president of the company and asked for permission to do so, but he was informed that it was impossible; that wheat was not worth its transportation. The next season the people fairly begged him to carry their wheat to market, and ho made another appeal. That time the company yielded, and President J. C. Ainsworth said: "Well. Captain Troup, you may try it, do the best you can." Wheat has boon pouring down the Columbia ever since, and the Inland Empire is one vast wheat field.
The career of the Oregon Steam Navigation Company was a great success. It would have been almost impossible, even under bad management, for it to have been anything else. Its beginning was small, but, aided by the peculiar advantages it possessed, and the growth of the country, it soon grew into one of the greatest money-making concerns in America.
After years of solicitation and appeal, the government of the United States began what it should have done years before, the construction of a canal around the falls of the Columbia, which has opened a free channel to trade and commerce that will forever unloose the hand of greed from the throat of the Columbia River. It is almost as important that a e;mal be constructed at the dalles of the river, and so give one of the best wheat-growing districts of the earth an open passage to the markets of the world. It has become almost one of the established policies of the government to free the channels of our great rivers of all impediments to navigation. In no other way can such valuable and general service be rendered to the people.
It is not my desire to criticise or censure the management of Oregon's first great corporation, which was so intimately connected with the early history, commerce, revenue, and progress of our own State. Perhaps any other set of men ​132 P. W. GILLETTE. would have done the same thing under similar circumstances. Nevertheless it is certainly a great misfortune to any people to be so absolutely within the power of any man or set of men as were the people of the Columbia Valley. It was too great a power to be entrusted to the hands of men. In reviewing the career of this most interesting corpora- tion, one can but view with wonder and amazement the ease and rapidity with which colossal fortunes were made. And I can but regret, on their own account, that bui: one or two of that company has left any little token of good-will or any memento of kindness to the place or people where they were so specially favored by fortune, and so liberally patronized by the business public. Had they even erected a small drinking fountain, where the faithful dray and truck horses, that indi- rectly carted millions of dollars into their pockets, could have slaked their thirst, that would have somehow served to amel- iorate and soften the memory of them. But the most of them seemed to prefer to be remembered only as members of a cor- poration that took every possible advantage. of one of the most extraordinary opportunities that ever fell into the hands of men to amass fortunes for themselves.