In 1850, Henry, feeling wanderlust, sold out his interest in the cotton wadding factory to his brother, and headed to California to join in the gold rush. He decided he would transport a steam boiler and machinery, with the intent to start a steam laundry in San Francisco. This required a land transport across the isthmus of Panama on the backs of men, then a sea voyage on an old whaling ship which sprang a leak, became disabled and set adrift. By the time the crew arrived in San Francisco four months later, the Stearns and the crew were near-starving. A doctor told Stearns he would not live. However, Stearns did recover. He set up the first steam laundry in California, became very successful, and then sold his share. He then moved on to operate a steam ferry boat named "Hector" between San Francisco and Oakland. He then moved on to the redwoods district and opened a steam sawmill.