George Law (financier)
Encyclopedia
George Law an American financier, b. in Jackson, Washington Co., N.Y., 25 October 1806; d. in New York city, 18 November 1881.
and his only early education had been obtained in a winter night school. At age of eighteen he left his father's farm and after walking to Troy
, he learned the trades of masonry
and stonemasonry
in Hoosic
. Next he obtained employment on the Delaware and Hudson Canal
in 1825, then superintended the making of canal-locks at High Falls. Afterward he went to the mountains of Pennsylvania to quarry stone for locks, and was employed as a mechanic on canals. In June, 1829, he obtained a contract for a small lock and aqueduct
on the Delaware and Hudson Canal. Self taught he studied and made himself a good engineer and draughtsman and became a large contractor for the construction of railroads and canals.
, by which it crosses Harlem River
. In 1842 he took on the management of the Dry Dock bank. Later he purchased and extended the New York and Harlem Railroad
and Mohawk Railroad. He bought the steamer in 1843, then built the in 1845. With Marshall O. Roberts and Bowes R. McIlvaine he formed the U.S. Mail Steamship Company
and assumed the contract to carry the US mails to California
. The company built the SS Ohio and the SS Georgia and with the purchased SS Falcon in early 1849 carried the first passengers by steamship to Chagres
, on the east coast of the Isthmus of Panama
. Soon the rapid transit time the steamship lines and the trans isthumus passage made possible when the California Gold Rush
began made it a very profitable company. That same year Law completed the High Bridge.
When the Pacific Mail Steamship Company
established a competing line between New York and Chagres, George Law placed on the Pacific his own competing line of four steamerships, SS Antelope, SS Columbus, SS Isthumus and SS Republic. In April, 1851, the rivalry was ended when he purchased their steamers on the Atlantic side, and sold his new Pacific Line and its ships on the Panama City
to San Francisco run.
Impressd by the returns from the short amount of line of William Henry Aspinwall
's Panama Railway
, he acquired a large interest in the project in 1852. He went to the isthumus to examine the route, and located the terminus at Aspinwall
, where he began to build the railroad depot next to the steamship wharf. Aspinwall soon became the destination of the Panama steamships once the railroad was finished.
Meanwhile, in New York he purchased the franchise of the Eighth Avenue street-railroad in New York. He sold his interest in the Panama Railroad in the winter of 1853. He then built the Ninth Avenue Railroad, and purchased the steam ferry
to Staten Island
, and the Grand and Roosevelt Street ferries between New York and Brooklyn
.
, which brought him prominent public notice. The official was incensed because the purser of one of his vessels had published an offensive statement in a New York newspaper, and refused entrance to any vessel having him on board. The American government refused to support Law in his determination to send the to Havana
with the purser on board, and withdrew the mail when he persisted. He nevertheless despatched the steamship, and the Captain-general failed to carry out his threat to fire on her. This gained him great notoriety and
after this was called "Live-Oak George", from a nickname given him by workmen in his ship-yard. He attacked the administration, which he accused of cowardace in newspaper articles.
Because of his stand against the government inactivity in the face of an attack on a U. S. citizen and his bold demonstration of American prestige he was placed in nomination as the Native American Party or Know-Nothing candidate for the President of the United States
in February, 1855, by the Pennsylvania legislature. Although he was supported by several newspapers the National convention in Philadelphia in 1856 chose the president whom Law had attacked, Millard Fillmore
, to be the party candidate.
in 1859 the company withdrew from the business and sold its ships.
down with her. The sinking of the ship with the loss so much gold set off the Panic of 1857
.
Early life
George Law was born in Jackson, New YorkJackson, New York
Jackson is a town in southeastern Washington County, New York, United States. It is part of the Glens Falls Metropolitan Statistical Area. The town population was 1,718 at the 2000 census. The town is named after Andrew Jackson.- History :...
and his only early education had been obtained in a winter night school. At age of eighteen he left his father's farm and after walking to Troy
Troy, New York
Troy is a city in the US State of New York and the seat of Rensselaer County. Troy is located on the western edge of Rensselaer County and on the eastern bank of the Hudson River. Troy has close ties to the nearby cities of Albany and Schenectady, forming a region popularly called the Capital...
, he learned the trades of masonry
Masonry
Masonry is the building of structures from individual units laid in and bound together by mortar; the term masonry can also refer to the units themselves. The common materials of masonry construction are brick, stone, marble, granite, travertine, limestone; concrete block, glass block, stucco, and...
and stonemasonry
Stonemasonry
The craft of stonemasonry has existed since the dawn of civilization - creating buildings, structures, and sculpture using stone from the earth. These materials have been used to construct many of the long-lasting, ancient monuments, artifacts, cathedrals, and cities in a wide variety of cultures...
in Hoosic
Hoosick, New York
Hoosick is a town in Rensselaer County, New York, United States. The population was 6,759 at the 2000 census.The Town of Hoosick is in the northeast corner of the county.- History :...
. Next he obtained employment on the Delaware and Hudson Canal
Delaware and Hudson Canal
The Delaware and Hudson Canal was the first venture of the Delaware and Hudson Canal Company, which later developed the Delaware and Hudson Railway...
in 1825, then superintended the making of canal-locks at High Falls. Afterward he went to the mountains of Pennsylvania to quarry stone for locks, and was employed as a mechanic on canals. In June, 1829, he obtained a contract for a small lock and aqueduct
Aqueduct
An aqueduct is a water supply or navigable channel constructed to convey water. In modern engineering, the term is used for any system of pipes, ditches, canals, tunnels, and other structures used for this purpose....
on the Delaware and Hudson Canal. Self taught he studied and made himself a good engineer and draughtsman and became a large contractor for the construction of railroads and canals.
Investments in Rails and Shipping
In August, 1837, one of his brothers was engaged in the construction of the Croton waterworks. He went to New York city, where he obtained contracts for sections of the aqueduct. In 1839 he obtained the contract for the High BridgeHigh Bridge (New York City)
The High Bridge is a steel arch bridge, with a height of almost 140 feet over the Harlem River, connecting the New York City boroughs of The Bronx and Manhattan...
, by which it crosses Harlem River
Harlem River
The Harlem River is a navigable tidal strait in New York City, USA that flows 8 miles between the Hudson River and the East River, separating the boroughs of Manhattan and the Bronx...
. In 1842 he took on the management of the Dry Dock bank. Later he purchased and extended the New York and Harlem Railroad
New York and Harlem Railroad
The New York and Harlem Railroad was one of the first railroads in the United States, and possibly also the world's first street railway. Designed by John Stephenson, it was opened in stages between 1832 and 1852 between Lower Manhattan to and beyond Harlem...
and Mohawk Railroad. He bought the steamer in 1843, then built the in 1845. With Marshall O. Roberts and Bowes R. McIlvaine he formed the U.S. Mail Steamship Company
U.S. Mail Steamship Company
U.S. Mail Steamship Company was a company formed in 1848 by George Law, Marshall O. Roberts and Bowes R. McIlvaine to assume the contract to carry the U. S. mails from New York, with stops in New Orleans and Havana, to the Isthmus of Panama for delivery in California...
and assumed the contract to carry the US mails to California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
. The company built the SS Ohio and the SS Georgia and with the purchased SS Falcon in early 1849 carried the first passengers by steamship to Chagres
Chagres
Chagres, a village of the Republic of Panama in the Colón Province. It has a harbour from 10 to I ~ ft. deep, which is difficult to enter. The port was discovered by Christopher Columbus in 1502, and was opened for traffic with Panama, on the Pacific coast, by way of the Chagres River, in the 16th...
, on the east coast of the Isthmus of Panama
Isthmus of Panama
The Isthmus of Panama, also historically known as the Isthmus of Darien, is the narrow strip of land that lies between the Caribbean Sea and the Pacific Ocean, linking North and South America. It contains the country of Panama and the Panama Canal...
. Soon the rapid transit time the steamship lines and the trans isthumus passage made possible when the California Gold Rush
California Gold Rush
The California Gold Rush began on January 24, 1848, when gold was found by James W. Marshall at Sutter's Mill in Coloma, California. The first to hear confirmed information of the gold rush were the people in Oregon, the Sandwich Islands , and Latin America, who were the first to start flocking to...
began made it a very profitable company. That same year Law completed the High Bridge.
When the Pacific Mail Steamship Company
Pacific Mail Steamship Company
The Pacific Mail Steamship Company was founded April 18, 1848 as a joint stock company under the laws of the State of New York by a group of New York City merchants, William H. Aspinwall, Edwin Bartlett, Henry Chauncey, Mr. Alsop, G.G. Howland and S.S. Howland...
established a competing line between New York and Chagres, George Law placed on the Pacific his own competing line of four steamerships, SS Antelope, SS Columbus, SS Isthumus and SS Republic. In April, 1851, the rivalry was ended when he purchased their steamers on the Atlantic side, and sold his new Pacific Line and its ships on the Panama City
Panama City
Panama is the capital and largest city of the Republic of Panama. It has a population of 880,691, with a total metro population of 1,272,672, and it is located at the Pacific entrance of the Panama Canal, in the province of the same name. The city is the political and administrative center of the...
to San Francisco run.
Impressd by the returns from the short amount of line of William Henry Aspinwall
William Henry Aspinwall
William Henry Aspinwall was an American businessman.In 1832, he became president of the Howland & Aspinwall merchant firm, which had been founded by his cousin and expanded trade to South America, China, Europe, the Mediterranean, and the East and West Indies. Howland & Aspinwall owned some of the...
's Panama Railway
Panama Railway
The Panama Canal Railway Company is a railway line that links the Atlantic Ocean to the Pacific Ocean across Panama in Central America. It is jointly owned by the Kansas City Southern Railway and Mi-Jack Products...
, he acquired a large interest in the project in 1852. He went to the isthumus to examine the route, and located the terminus at Aspinwall
Colón, Panama
Colón is a sea port on the Caribbean Sea coast of Panama. The city lies near the Atlantic entrance to the Panama Canal. It is capital of Panama's Colón Province and has traditionally been known as Panama's second city....
, where he began to build the railroad depot next to the steamship wharf. Aspinwall soon became the destination of the Panama steamships once the railroad was finished.
Meanwhile, in New York he purchased the franchise of the Eighth Avenue street-railroad in New York. He sold his interest in the Panama Railroad in the winter of 1853. He then built the Ninth Avenue Railroad, and purchased the steam ferry
Ferry
A ferry is a form of transportation, usually a boat, but sometimes a ship, used to carry primarily passengers, and sometimes vehicles and cargo as well, across a body of water. Most ferries operate on regular, frequent, return services...
to Staten Island
Staten Island
Staten Island is a borough of New York City, New York, United States, located in the southwest part of the city. Staten Island is separated from New Jersey by the Arthur Kill and the Kill Van Kull, and from the rest of New York by New York Bay...
, and the Grand and Roosevelt Street ferries between New York and Brooklyn
Brooklyn
Brooklyn is the most populous of New York City's five boroughs, with nearly 2.6 million residents, and the second-largest in area. Since 1896, Brooklyn has had the same boundaries as Kings County, which is now the most populous county in New York State and the second-most densely populated...
.
Crescent City and Presidential politics
Also in 1852 he had a quarrel with the Spanish Captain-general of CubaCuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
, which brought him prominent public notice. The official was incensed because the purser of one of his vessels had published an offensive statement in a New York newspaper, and refused entrance to any vessel having him on board. The American government refused to support Law in his determination to send the to Havana
Havana
Havana is the capital city, province, major port, and leading commercial centre of Cuba. The city proper has a population of 2.1 million inhabitants, and it spans a total of — making it the largest city in the Caribbean region, and the most populous...
with the purser on board, and withdrew the mail when he persisted. He nevertheless despatched the steamship, and the Captain-general failed to carry out his threat to fire on her. This gained him great notoriety and
after this was called "Live-Oak George", from a nickname given him by workmen in his ship-yard. He attacked the administration, which he accused of cowardace in newspaper articles.
Because of his stand against the government inactivity in the face of an attack on a U. S. citizen and his bold demonstration of American prestige he was placed in nomination as the Native American Party or Know-Nothing candidate for the President of the United States
President of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
in February, 1855, by the Pennsylvania legislature. Although he was supported by several newspapers the National convention in Philadelphia in 1856 chose the president whom Law had attacked, Millard Fillmore
Millard Fillmore
Millard Fillmore was the 13th President of the United States and the last member of the Whig Party to hold the office of president...
, to be the party candidate.
Later life
The U.S. Mail Steamship Company only operated for 11 years. On the expiration of the mail contract and its subsidySubsidy
A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributors in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it to hire more labor A subsidy (also...
in 1859 the company withdrew from the business and sold its ships.
"Ship of gold"
Law had a steamship, George Law, named after him. It was later renamed and is sometimes referred to as a "ship of gold". She sank in a three day and night hurricane carrying most of her passengers, gold bullion then valued at US$2,000,000 and Commander William Lewis HerndonWilliam Lewis Herndon
Commander William Lewis Herndon was one of the United States Navy's outstanding explorers and seamen. He chose to go down with his ship while other lives were still aboard and while in command of the steamer Central Americas 44th trip, which sank in a three day and night hurricane off Cape...
down with her. The sinking of the ship with the loss so much gold set off the Panic of 1857
Panic of 1857
The Panic of 1857 was a financial panic in the United States caused by the declining international economy and over-expansion of the domestic economy. Indeed, because of the interconnectedness of the world economy by the time of the 1850s, the financial crisis which began in the autumn of 1857 was...
.
Further reading
- A sketch of events in the life of George Law, published in advance of his autobiography, J. C. Derby, New York, 1855
- Appleton's Cyclopedia of American Biography, Vol. III., p. 636 (1892).