Big Business & Local
Industry
Captains of Industry & their local foundations
Corporate Structure
Who was Frederick Weyerhaeuser?
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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.
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
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.
Today the Weyerhaeuser Corporation is a multi-million dollar international company with
their Headquarters in Washington, near Seattle.
Comparing Captains of Industry
Captain 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)
Who ran the show?
 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.
William Irvine
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Born 1851, Mount Carroll, IL
Came to Chippewa Falls in
his early teens
Experience:
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Worked in all stages of the
lumber industry
Promote to Sales Manager for
Union Lumbering Company
Was secretary when Chippewa
Lumber & Boom Company
started
Hard-working
Trusted & respected by
community
William Irvine’s Job Description
Amendment to the articles of association, March 31, 1885
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“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.”
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“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.”
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Eau Claire Daily Free
Press, 3 June 1886.
“Inexhaustible Pine Forests ”
Grand Business Plan
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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
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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
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new mill
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Going big
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largest sawmill under one roof in the world
best technological innovations for the time to make it as efficient as possible
concentration of production
marketing: “largest saw mill under one roof in the world”
Need for local remains
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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)