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

Big Business & Local Big Business & Local Industry Industry

Captains of Industry & their local foundationsCaptains of Industry & their local foundations

Corporate StructureCorporate Structure

Who was Frederick Weyerhaeuser?Who was Frederick Weyerhaeuser? born 1834, Germany born 1834, Germany came to America in 1952 as a penniless youth came to America in 1952 as a penniless youth simple, religious man who shied away from publicitysimple, religious man who shied away from publicity In America, worked as a day laborer in the vicinity of Erie, PennsylvaniaIn America, worked as a day laborer in the vicinity of Erie, Pennsylvania married Elisabeth Bladel.  married Elisabeth Bladel.  moved to Rock Island, Illinoismoved to Rock Island, Illinois worked on a railroad and as a carterworked on a railroad and as a carter advanced quickly at workadvanced quickly at work "The secret lay simply in my will to work.  I never watched the clock and never stopped "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." before I had finished what I was working on." in charge of a sawmill and timber yardin charge of a sawmill and timber yard saved moneysaved money bought sawmills, yards, and logs  bought sawmills, yards, and logs  1864, began to buy pine tracts in Wisconsin, Minnesota, Idaho, Washington, and Oregon1864, 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 1891, moved to St. Paul & became friends with James J. Hill, operator of the Northern

Pacific RailroadPacific Railroad Hill had acquired millions of acres of the best timber forests cheaply form the government 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.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.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 Today the Weyerhaeuser Corporation is a multi-million dollar international company with

their Headquarters in Washington, near Seattle. their Headquarters in Washington, near Seattle. 

Comparing Captains of IndustryComparing Captains of IndustryCaptain of industry Nickname Industry Life Wealth [compared to GDP]

$ value at time of death ($ value in 1998)

John D. Rockefeller “Richest American in history”

“1st U.S. dollar billionaire”

Oil 1839 - 1937 $900 million($189.6 million)

Andrew Carnegie “King of Steel”“2nd richest American in

history”

Steel 1835 - 1919 $250 million($100.5 million)

Cornelius Vanderbilt “Commodore Vanderbilt”

“3rd richest American in history”

Shipping & Railroads

1794 - 1877

$105 million($95.9 million)

Frederick Weyerhaeuser ‘Timber King”“8th richest American in

history”

Lumber 1834 - 1914 $200 million ($43.2 million)Weyerhaeuser Co. still sells

more lumber than anyone in the world.

James J. Hill “Empire Builder” Railroad 1838 - 1916 $100 million ($17.3 million)

J.P. Morgan(John Pierpont)

“Master of finance” Banking & finance 1837 -1913 $119 million(25 million)

How could Weyerhaeuser be in all these How could Weyerhaeuser be in all these company locations at one time?company locations at one time?

Big businessmen had to delegate to run their Big businessmen had to delegate to run their business.business.

Weyerhaeuser had to find a trustworthy, Weyerhaeuser had to find a trustworthy, productive, local man who knew both the productive, local man who knew both the business and the community and who could business and the community and who could successfully manage local operations.successfully manage local operations.

Who ran the show?Who ran the show?

William IrvineWilliam Irvine Born 1851, Mount Carroll, ILBorn 1851, Mount Carroll, IL Came to Chippewa Falls in Came to Chippewa Falls in

his early teenshis early teens Experience: Experience:

Worked in all stages of the Worked in all stages of the lumber industrylumber industry

Promote to Sales Manager for Promote to Sales Manager for Union Lumbering CompanyUnion Lumbering Company

Was secretary when Chippewa Was secretary when Chippewa Lumber & Boom Company Lumber & Boom Company startedstarted

Hard-workingHard-working Trusted & respected by Trusted & respected by

communitycommunity

William Irvine’s Job DescriptionWilliam Irvine’s Job Description

““It shall be the duty of the secretary to keep the records and 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 al books and papers relating to the organization and the sale and transfer of all stock of said corporation and to perform such other 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.”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 It shall be the duty of the manager to have general charge of and to superintend the business and affairs of the corporation of and to superintend the business and affairs of the corporation under the direction of the president. Provided further, under the direction of the president. Provided further,

That the office of secretary and manager may be held by That the office of secretary and manager may be held by the same person and that the manager shall have authority to sign the same person and that the manager shall have authority to sign drafts, bills of exchange, make acceptances, endorse papers and drafts, bills of exchange, make acceptances, endorse papers and receive and disburse moneys in the absence of the president and receive and disburse moneys in the absence of the president and do such other things not specifically mentioned as may be do such other things not specifically mentioned as may be necessary in the conduct of the regular business of the corporation.”necessary in the conduct of the regular business of the corporation.”

Amendment to the articles of association, March 31, 1885Amendment 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 Many people thought that the great pine forests of Northern Wisconsin were inexhaustibleinexhaustible

Weyerhaeuser & Associates, including Irvine, recognized that great stands of Weyerhaeuser & Associates, including Irvine, recognized that great stands of pine would not last foreverpine would not last forever

They knew they had to take advantage of the opportunity to get land, cut, and They knew they had to take advantage of the opportunity to get land, cut, and process the trees while they lasted. process the trees while they lasted.

To be most profitable: get as much of it as fast as possibleTo be most profitable: get as much of it as fast as possible

new mill 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 possiblebest technological innovations for the time to make it as efficient as possible concentration of productionconcentration of production

Going bigGoing big marketing: “largest saw mill under one roof in the world”marketing: “largest saw mill under one roof in the world”

Need for local remainsNeed for local remains needed local men to sell products through making local connections (by sending a 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 man down river ahead of the lumber rafts to sell the lumber before it arrived at down river markets)river markets)

““Inexhaustible Pine Forests ” Grand Business PlanInexhaustible Pine Forests ” Grand Business Plan