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CHAPTER II. 


Rise of the Mackinaw Company. Attempt of the American Government to Counteract Foreign Influence Over the Indian Tribes. John Jacob Astor. His Birth-Place. His Arrival in the United States. What First Turned His Attention to the Fur Trade. His Character, Enterprises, and Success. His Communications With the American Government. Origin of the 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 merged 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.

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