Big Business & Local Industry Captains of Industry & their local foundations

Corporate Structure

Who was Frederick Weyerhaeuser?  born 1834, Germany  came to America in 1952 as a penniless youth  simple, religious man who shied away from publicity  In America, worked as a day laborer in the vicinity of Erie, Pennsylvania  married Elisabeth Bladel.  married Elisabeth Bladel.  moved to Rock Island, Illinois  worked on a railroad and as a carter  advanced quickly at work  "The secret lay simply in my will to work. I never watched the clock and never stopped before I had finished what I was working on."  in charge of a sawmill and timber yard  saved money  bought sawmills, yards, and logs  bought sawmills, yards, and logs  1864, began to buy pine tracts in Wisconsin, Minnesota, Idaho, Washington, and Oregon  1891, moved to St. Paul & became friends with James J. Hill, operator of the Northern Pacific Railroad  Hill had acquired millions of acres of the best timber forests cheaply form the government for his railroad, but knew nothing of lumbering or the real worth of the land.  Hill sold more than three million acres of forests to Weyerhaeuser at bargain rates.  At the turn of the century, Weyerhaeuser owned more timberland than other American did.  At the turn of the century, Weyerhaeuser owned more timberland than other American did.  Today the Weyerhaeuser Corporation is a multi-million dollar international company with their Headquarters in Washington, near Seattle.  Today the Weyerhaeuser Corporation is a multi-million dollar international company with their Headquarters in Washington, near Seattle.

Comparing Captains of Industry Captain of industryNicknameIndustryLifeWealth [compared to GDP] $ value at time of death ($ value in 1998) John D. Rockefeller“Richest American in history” “1 st U.S. dollar billionaire” Oil $900 million ($189.6 million) Andrew Carnegie“King of Steel” “2 nd richest American in history” Steel $250 million ($100.5 million) Cornelius Vanderbilt“Commodore Vanderbilt” “3 rd richest American in history” Shipping & Railroads $105 million ($95.9 million) Frederick Weyerhaeuser‘Timber King” “8 th richest American in history” Lumber $200 million ($43.2 million) Weyerhaeuser Co. still sells more lumber than anyone in the world. James J. Hill“Empire Builder”Railroad $100 million ($17.3 million) J.P. Morgan (John Pierpont) “Master of finance”Banking & finance $119 million (25 million)

 How could Weyerhaeuser be in all these company locations at one time?  Big businessmen had to delegate to run their business.  Weyerhaeuser had to find a trustworthy, productive, local man who knew both the business and the community and who could successfully manage local operations. Who ran the show?

William Irvine  Born 1851, Mount Carroll, IL  Came to Chippewa Falls in his early teens  Experience: Worked in all stages of the lumber industry Worked in all stages of the lumber industry Promote to Sales Manager for Union Lumbering Company Promote to Sales Manager for Union Lumbering Company Was secretary when Chippewa Lumber & Boom Company started Was secretary when Chippewa Lumber & Boom Company started  Hard-working  Trusted & respected by community

William Irvine’s Job Description  “It shall be the duty of the secretary to keep the records and al books and papers relating to the organization and the sale and transfer of all stock of said corporation and to perform such other duties as may be required of him by the by-laws and rules thereof.”  “It shall be the duty of the manager to have general charge of and to superintend the business and affairs of the corporation under the direction of the president. Provided further,  That the office of secretary and manager may be held by the same person and that the manager shall have authority to sign drafts, bills of exchange, make acceptances, endorse papers and receive and disburse moneys in the absence of the president and do such other things not specifically mentioned as may be necessary in the conduct of the regular business of the corporation.” Amendment to the articles of association, March 31, 1885

Eau Claire Daily Free Press, 3 June 1886.

 Many people thought that the great pine forests of Northern Wisconsin were inexhaustible  Weyerhaeuser & Associates, including Irvine, recognized that great stands of pine would not last forever  They knew they had to take advantage of the opportunity to get land, cut, and process the trees while they lasted.  To be most profitable: get as much of it as fast as possible  new mill largest sawmill under one roof in the world largest sawmill under one roof in the world best technological innovations for the time to make it as efficient as possible best technological innovations for the time to make it as efficient as possible concentration of production concentration of production  Going big marketing: “largest saw mill under one roof in the world” marketing: “largest saw mill under one roof in the world”  Need for local remains needed local men to sell products through making local connections (by sending a man down river ahead of the lumber rafts to sell the lumber before it arrived at down river markets) needed local men to sell products through making local connections (by sending a man down river ahead of the lumber rafts to sell the lumber before it arrived at down river markets) “Inexhaustible Pine Forests ” Grand Business Plan