USA > Michigan > Saginaw County > History of Saginaw County, Michigan; historical, commercial, biographical, Volume II > Part 56
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Rusling, meanwhile, had died never knowing that at one time in his modest business life he had acquired great riches, and become a millionaire twice over and above.
How Hill "Put One Over" on the Wrights
During the great rush to gain control of the iron ore deposits in Minnesota, some years ago, James J. Hill made a proposition to Ammi W. Wright and others to purchase the iron ore in certain lands they owned. The price finally agreed upon was four million five hundred thousand dollars. which the lumbermen considered as "velvet" since the only thing they had paid for in buying the land was the timber which stood upon it. The exis- tence of iron ore at the time they acquired the land was not dreamed of, and it was a case of sudden wealth actually forced upon them.
A year and a half later, the true value of the ore having been determined by exhaustive tests and calculations as to the quantity in the ground, Mr. Ilill sold the ore rights to the Great Northern Railroad for forty-four million dollars, which was a gain of almost ten times the cost to him.
The enormous return in royalties to some of Saginaw's lumbermen, is illustrated by an incident in the circuit court of this county a few years ago, in which Wellington R. Burt testified that his income from his iron ore
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properties the preceding year had amounted to seven hundred and fifty thousand dollars. At about the same time Temple E. Dorr, who once moved a whole town in Minnesota several miles to clear its site which contained valuable ore deposits, was receiving, it was said, a draft for five thousand dollars every week in the year, to cover his royalties on the ore the removal and disposal of which he had not to lift a finger. To open the letter. take out the draft, endorse and deposit it to his account in bank, were the only moves called for by his part in the deal.
In pondering over these sudden acquisition of riches, which were entirely unsought by the principals, and of which many other instances of similar purport might be told, one must wonder how great a sum the government- the people of the United States-has lost by the policy of not retaining title to the mineral resources of the soil. Instead of this wealth being distributed among the mass of the people, it has been concentrated in the hands of a few men already wealthy and who could not be made happier by it. The excuse is that they having ready capital and the brains to carry on extensive opera- tions, develop the natural resources of the earth, and are thus entitled to all the profits and emoluments to be obtained therefrom. This presentment, however, is not altogether acceptable to the American people, as a whole.
MAMMOTH PLANT OF THE LUFKIN RULE COMPANY
A Revival of Industries
About 1906 it became apparent that if Saginaw was to progress industri- ally a revival of manufacturing must be inaugurated. With this object the Merchants and Manufacturers Association came into being, to secure the location of new and outside industries and business enterprises. By the (lonations of business and factory sites and buildings, and by other induce- ments, it was hoped that substantial concerns would locate here, and thus add appreciably to our industrial welfare. It was also the purpose of the association to co-operate with the Saginaw Board of Trade in accomplishing the material advancement of the city.
The association was duly organized and incorporated by Harry T. Wickes, Theodore fluss, John L. Jackson. A. C. Melze, Benton Hanchett. Max Heavenrich, Arthur D. Eddy, Delbert E. Prall, James S. Smart, M. W. Tanner and Ralph C. Morley; and the first seven comprised the board of trustees for the first year. By the Articles of Association the trustees were authorized to receive contributions and pledges of property and money for the purposes of the association, and to make assessments on contributors for money required to carry out its purposes. After a spirited campaign among business and professional men and manufacturers, the sum of two hundred and twelve thousand dollars was subscribed, and the plans of the association were at once set in motion.
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During the following years in which the association was very active in its endeavors to secure new industries to this city, a number of large and important corporations were induced to locate here, and several local companies of promise were started and given substantial aid. Among these new industries were the Brooks Boat Manufacturing Company, Rainier Motor Company, Saginaw Sandstone Brick Company, Valley Sweets Com- pany, Saginaw Concrete Stone Company, Valley Grey Iron Company Brueck Sectional Book Case Company, Saginaw Heading & Veneer Company, Saginaw Pure Ice Company, Clare Knitting Mills, Erd Motor Company, Wilcox Engineering Company, Saginaw Silk Garment Company, Saginaw Show Case Company, Cooney & Smith. Valley Boat & Engine Company, Jackson-Church-Wilcox Company, Sommers Brothers Match Company. Yates-Upholt Brass Company, Argo Electric Vehicle Company. Wessborg Manufacturing Company, Michigan Creamery Company, Koenitzer Tanning Company, Saginaw Ladder Company, Opportunity Manufacturing Company, Saginaw Sheet Metal Works, Stork Motor Company, Modart Corset Com- pany, and Kerry & Way. In more recent years the Strable Manufacturing Company, Nelson Brothers Company, Saginaw Wood Products Company, Schwinck Brothers (packers), Saginaw Enameling Company and the Ameri- can Cash Register Company have been added to the long list of Saginaw's prosperous corporations.
From the organization of the association in 1906 to April 1, 1910, the total wages paid by the new industries secured by the association amounted to six hundred and ninety-seven thousand one hundred and thirty-seven dollars, which was three times more than the total subscriptions to the Merchants and Manufacturers Fund, and six times as much as the amount covered by the assessments on the subscribers to that fund.
A Disruption Threatened
On January 1, 1911, Joseph P. Tracy assumed the duties of secretary of the association and of the board of trade, by a joint arrangement between the two organizations. He was an organizer of recognized ability, but lacked a judicial and well-balanced view of commercial affairs, and as a result plunged the associations into a surging sea of trouble, from which they have yet scarcely recovered. Without the wisdom of keen foresight or realization of consequences, or indeed without the knowledge or consent of the members of the transportation committee of the board, he started a vicious attack on the Pere Marquette Railroad at a most critical time in the financial affairs of that corporation. As almost everybody knows the Pere Marquette has done more in the last fifty years for the advancement of Saginaw's prosperity than any other corporation or individuals. The unwarranted attack in the name of the Board of Trade therefore created a furore among the members of that body, and was published broadcast over the State arousing great indignation in many quarters.
The consequence of this high-handed action of the secretary was to put the affiliated associations in disrepute, not only among our fair minded citizens generally, but throughout the State a feeling of resentment was aroused against Saginaw, which has been difficult to overcome. The influence of the new secretary in any movement for the advancement of the city's interests was thus rendered negligible, and he was forced to retire from office May 6, 1913. Other ill-advised and premature plans were put forward with great zeal by this official, and a disruption of the commercial bodies was narrowly averted. To the end of his tenure of office, however, Mr. Tracy had the support of some of the most influential men in the two organizations, although the greater proportion of the members were utterly
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HISTORY OF SAGINAW COUNTY
opposed to his policies and his conduct of the office. The natural result of internal trouble and dissension has been that the material interests of the city have not advanced during the last three or four years at anywhere near the ratio of progress that marked Saginaw as a growing manufacturing city. from 1905 to 1911. With old animosities put aside and forgotten, it is con- fidently expected that some of the great industrial activity of Michigan cities will soon be felt here in the promotion of new industries and commercial enterprises.
Celebrating a Semi-Centenary Anniversary
The Saginaw Board of Trade is an old organization and has long been actively identified with every movement for the advancement of the city's welfare. It was organized on April 9, 1863, by some of the prominent men of the time, among whom were Colonel W. L. P. Little, Ezra Rust. . 1. W. Brockway, L. B. Curtis, Castle Sutherland, William S. Driggs, William F. Glasby, Il. Hobbs, Charles F. Disbrow, James L. Ketcham, D. L. C. Eaton, George L. Burrows, H. C. Potter, Newell Barnard, William L. Webber, V. A. and A. B. Paine. William Binder, Charles and Egbert TenEyck, W. D. Leavonworth and John S. Estabrook.
The fiftieth anniversary of this event was celebrated on May 6, 1913, on the occasion of the annual meeting of the board which then numbered seven hundred and sixty members. At two o'clock in the afternoon a public meeting was held at the Auditorium, the golden anniversary exercises being opened by an organ recital by Professor A. W. Platte. This was followed by "America" sung by the audience led by Professor Arthur Amsden, director of the Thirty-third Regiment Band, M. N. G., and by two songs rendered by the AAmphion Club of the Saginaw High School. An able address was then delivered by E. C. Warriner on "Saginaw in Prospect." and Harry .A. Wheeler, president of the Chamber of Commerce of the United States, spoke on the "Call to Business." A reception for members and guests followed at six o'clock, a large and brilliant company of Saginaw's representative citizens being present.
The leading function of the celebration was the banquet in the evening. in which President J. A. Cimmerer was toastmaster. \ happy circumstance was the presence of Ezra Rust, one of the three surviving charter members of the association, who delivered a stirring address on "Retrospection." In receiving Mr. Rust as the first speaker of the evening, the assemblage rose and gave the Chautauqua Salute in his honor and in respect to those who associated fifty years before in the first meeting of Saginaw Board of Trade, and who had "gone before."
Among other things Mr. Rust said: "When I first came to Saginaw in the Fall of 1859 there were about thirty-two hundred inhabitants of East Saginaw and seventeen hundred in Saginaw City. There was no railroad nearer than Holly, there were no bridges across the river, no paved streets except an occasional strip of plank road, sidewalks were few and pour, and in no respect save water supply was there any similarity to our present Hourish- ing city. Three rope ferries-at Mackinaw, Bristol and Genesee Street- gave transport for teams; foot passengers were taken across the river in row boats. * * * The commerce of the two towns was entirely by water. . \ boat ran twice a day to Bay City and return, and a steamer made bi-weekly trips to Detroit. All large freight, including lumber, was carried in sailing vessels.
"Such, in brief, was Saginaw in 1859. During the next few years its growth was rapid; as the lumber trade increased new mills were built on both sides of the river, and the population in 1863 had become nearly seven
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As the undersigned hudby attaccate Out
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FAC SIMILE OF SIGNATURES TO ORIGINAL ARTICLES OF INCORPORATION OF THE BOARD OF TRADE
thousand. * * * Only a few brick structures had yet been erected, the Ban- croft being the largest. Stores were not numerous, and outside of provisions and clothing there was little call for any merchandise save lumbering tools and machinery.
"In the Spring of 1863 a meeting of the National Board of Trade was announced to be held at Detroit, and it was suggested by Colonel W. L. P. Little that the Saginaw Valley should be represented on that occasion. Accordingly, on April 9, 1863, the original articles of incorporation of a 'Board for the Saginaw Valley' were signed by Colonel Little and thirty-one others. Delegates to the Detroit meeting were duly chosen, but to my best recollection this ended the active operations of the board; at all events no record exists of any other proceedings.
"Two years later, in 1865, twelve of the original incorporators with fifty-two additional signers attached their names to the constitution of the 'Board of Trade of East Saginaw.' No record remains of the proceedings of this body, and it is my belief that little was ever done; in fact, there was no crying need for the organization.
"During the period from 1860 to 1870 the commercial conditions in Saginaw Valley began to change. While lumbering was still the great industry, salt-making greatly increased and the rapid growth in population
1
Ezra Rust
Tem le E. Dorr
W. R. Burt
Aaron Linton
Jesse Hoyt
Arthur Hill
John Jeffers
Joseph A. Whittier
Anron T. Bliss
PROMINENT PROMOTORS OF AND DONORS TO THE SAGINAW BOARD OF TRADE
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DIVERSIFIED INDUSTRIES
caused the establishment of other important lines of manufacture, many of which remain to this city. The Flint and Pere Marquette Railroad had been built to Flint, and extended north to Bay City and west through Midland across the State. The Jackson, Lansing & Saginaw Railroad gave us an outlet to the southwest, and the Saginaw Valley and St. Louis Railroad had opened the territory to the west. The population of the twin cities had mean- while increased from five thousand to twenty-seven thousand.
"These rapid changes brought conditions which seemed to call for an active and efficient Board of Trade, and in 1876 a reorganization was effected, a new constitution and by-laws adopted and signed by one hundred and ten prominent business men of both sides for the purpose of promoting just and equitable principles in trade, to correct any abuses which may exist, and generally to advise the interests of trade and commerce in the Saginaw Valley.' Among the signers of this constitution I find only three of the original incorporators of 1863.
"Colonel Little. the founder of this board, was a large man in every respect ; of commanding figure, ruddy face, he was one who commanded atten- tion wherever he went-but above and beyond his personal charm he posses- sed qualities of mind which made him eminent in the community. Strong, forceful, persuasive in manner and speech, he was a leader whom it was a pleasure to follow ; and to his influence Saginaw owes much.
"It was my good fortune to be intimate in both business and social relations with most of the leading men of this community for more than thirty years of active business life, and I can truthfully say that I believe a greater number of intelligent, forceful men never were gathered together in any community of similar population, and in very few of much larger number. * * * Energetic, enterprising, well informed in all directions, bold in action and wise in judgment, they were the fitting progenitors of the present generation."
In 1871, when a delegation of Saginaw and Bay City men, with a few representatives from Detroit, went to Washington to oppose a bill introduced in Congress to remit the duty on all lumber intended for use in rebuilding Chicago, Senator Zach Chandler said to Mr. Rust : "1 have never seen so fine a delegation of men since I have been in Washington."
Conclusion of the Golden Anniversary
Following Mr. Rust, President Harry A. Wheeler spoke on "American Commerce" without manuscript or notes, the principal topics being "Genius for Organization." "Right of Combination," "Currency Reform," and "Optimism."
During the banquet music was rendered by the Thirty-third Regiment Band, M. N. G., under the leadership of Arthur Amsden, director ; and the ceremonies were concluded by singing of Auld Lang Syne.
The officers for the fifty-first year of the Board of Trade were: William S. Linton, president : John J. Rupp, first vice-president ; Emil Staehle, second vice-president; and William Seyffardt, treasurer. The directors were .I. A. Alderton, J. P. Beck, J. A. Cimmerer, J. A. Cleveland, E. C. Forrest, Louis Mautner, 11. W. Merrill, Ralph C. Morley, Hiram A. Savage, John W. Smart. S. E. Symons, and Frank J. Wolfarth.
The Oil Development
An industrial flurry of more than ordinary interest was the oil prospect- ing campaign conducted by local capitalists in 1912 and 1913. For years the possibility of oil being found here had been much discussed, State Geologist lane being so firm in his belief of the presence of oil that he offered
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HISTORY OF SAGINAW COUNTY
to put up money with others for sinking test holes. To settle for all time the question as to whether there remained beneath the surface of the Saginaw Valley other natural resources than salt and coal, a company of capitalists and business men was formed, to whose enterprise and energy the community at large owes no small degree of gratitude.
The organizers of this company, which was known as the Saginaw Valley Development Company, were representative men of ability and integ- rity, who devoted mouths of incessant labor and much money to further the prospecting work. No effort or expense was spared in making the most thorough experiments, and at length, after expending more than one hundred thousand dollars with no success, the fact was clearly established that oil in commercial quantities does not exist in this locality. The officers of the company were: Wallis Craig Smith, president, Clark L. Ring, vice-president, Norman N. Rupp, secretary and treasurer; and the board of directors was composed of the officers and George B. Morley, John L. Jackson, Elmer J. Cornwell and Laurence L. Linton.
The first boring was made on the Mundy & Fifield Farm, a large tract of reclaimed marsh land a few miles north of the city. A well was sunk to a depth exceeding two thousand feet, but without any discovery of oil or gas. Specimens of the different strata through which the drills passed were taken out and sent to the laboratory of the University of Michigan, for analysis ; and later preserved in glass tubes for public exhibit and for the use of students and others, in order that the experiments might aid them in their researches. thus performing a valuable educational function.
Not discouraged by the failure of the first test, and indeed not expecting success so early in the development work, the company set about to sink another well near the geographical center of the city, a short distance north of the Bristol Street bridge. The spot was on the west bank of Saginaw River, where years before Professor Lane had indicated that oil might be found. After innumerable difficulties had been overcome by the untiring efforts of Norman N. Rupp, who superintended the operations, the drills penetrated to a depth of twenty-three hundred feet into oil bearing sandstone, the evidence of gas. meanwhile, being very strong.
Greatly encouraged by the prospects of success at this place, preparations were at once made for "shooting" the well. or opening by high explosives a cavity at the bottom. One hundred quarts of nitro-glycerine in long cylind- rical cans were carefully lowered to the bottom of the hole, and at 3:45 in the afternoon of Sunday, September 20, 1912, the charge was set off. \ percep- tible thud deep down in the earth was felt by the spectators, and great quantities of gas from the resulting explosion came from the mouth of the well to enhance the excitement. Nothing of spectacular nature occurred. however, and all but financially interested persons left the scene.
The Well Spouted High
The real spectacle, which aroused great expectations for the future of the oil development, occurred fifty-five minutes after the actual "shooting." and was witnessed by few persons. It was an eruption or spout of oil forty feet high from the mouth of the well, and stood solid for four or five minutes gradually subsiding with strong indications of gas, rivulets of oil running down the slope to the river. This spout was followed a few minutes later by a second and higher column of oil, which reached nearly to the top of the derrick, eighty feet high, and lasted about two minutes with quantities of gas. About an hour later there were three discharges of gas, the first carrying twelve barrels of oil into a tank, but the others were free of oil.
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WHAT MIGHT HAVE BEEN A FAMILIAR SIGHT "Shooting" of First Oil Well at Saginaw, September 29, 1912
The excitement in Saginaw attending this discovery was spontaneous. and predictions were freely expressed that a new era of prosperity was opening for the Valley cities. The oil discovered was of very fine quality. and great hopes were raised that it existed in commercial quantities to insure success of the new enterprise. News of the find spread quickly far beyond the boundaries of this State, and in an incredibly short time oil speculators and promoters arrived with the avowed purpose of organizing other oil companies to secure oil leases and to prospect for oil and gas. The local demand for stock in the parent oil company was overwhelming, but none was offered, and the bids rose by leaps and bounds until at around six hundred some stock changed hands. No new stock was issued, and the company announced its policy of not effecting its operating organization until the quantity of oil existing in this locality was definitely determined.
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HISTORY OF SAGINAW COUNTY
Speculators Foiled
In the minds of promoters and speculators, who saw in the oil situation a great opportunity for gain, this policy was a grave mistake. While the public interest was so keen, with business men and others with ready cash clamoring for oil stocks, the "wild-cating" of development companies on a large scale would have been an easy matter, the insiders becoming rich by stock manipulations. But this sort of thing was very effectually prevented by the honorable policy of the parent company. By giving out daily reports to the press of actual conditions at the various wells which the company proceeded to bore, much of which was not of a favorable character, the public was kept fully informed of the actual situation, and the speculative fever gradually subsided. After many heated arguments with the officials of the company, the outside promoters quit in disgust and many of them left the city.
The directors of the Saginaw Valley Development Company fully realized the opportunity for great expansion of oil development, and while risking their own money in the "gambler's chance," they were unwilling to open up a field of speculation which would entice the widow's mite, the hard-earned savings of clerks, or the profits of small business, while there was the least chance of failure through the paucity of oil, and the consequent disaster to those who could ill afford to lose. On the other hand it was announced that if success crowned their efforts, and oil found in large quantities, the public would be let into the company to profit by the experience of the developers.
Meanwhile the Saginaw Company, with its strong backing of influential men, was securing valuable leases of oil rights in this vicinity, and it was stated that their holdings amounted to eighty thousand acres, out of the aggregate of one hundred and fifty thousand acres held by local and outside speculators. In this connection Mr. Smith, president of the company, said : "We do not regard with special favor the efforts of lease speculators, parties who secure leases upon lands in this vicinity, not with any view of doing development work thereon, but of sitting by and hanging on while legitimate developers are proving their value." As a result of the strong position of this company, promiscuous leasing of land for speculation purposes was largely curtailed and soon ceased entirely.
It is an indisputable fact that the firm stand of Wallis Craig Smith and his associates in the oil company, in preventing wild speculation in develop- ment companies, saved the citizens of Saginaw and the people of Michigan hundreds of thousands of dollars which otherwise would have been irretriev- abdly lost. For, after more than a year of exhaustive tests throughout the townships adjoining Saginaw, without discovery of oil or gas in commercial quantities, it was determined beyond reasonable doubt that oil was a myth in this locality. In consequence of this the operations of the company ceased, the equipment and tools were sold, and the oil leases terminated. It was unfortunate that after every effort had been made in the enterprise, the results should have been so meagre, but the very thoroughness with which the prospecting was conducted will undoubtedly save others from further experi- ments in the future.
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