American
Fur Company (1808-1842) – Founded by John Jacob Astor on
April 6, 1808, the American
Fur Company would become one of the largest businesses in the country at the
start of the 19th century. Astor began this ambitious venture to compete with
the two-great fur-trading companies in Canada – the Hudson’s Bay Company and
the North West Company.
Initially,
Astor’s operation in the Columbia River Valley of Oregon was under a subsidiary
called the Pacific Fur Company and his Great Lakes efforts were under another
subsidiary — the South West Company. However, the War of 1812 destroyed both
companies. Five years later, in 1817, Congress passed an act which excluded
foreign traders from U.S. territory, making the American Fur Company the
biggest in the Great Lakes region.
In 1821,
the company partnered with the Chouteau interests of St. Louis, Missouri,
giving the company a monopoly in the Missouri River region and later, in the
Rocky Mountains. Growing larger each year, the American Fur Company made a
practice of buying out small businesses or putting them out of business with
stiff competition, virtually having a market on the entire fur trade by 1830.
Astor withdrew in 1834 and the company split up.
To save
expenses a number of the many trading posts were closed, and heavy competition
began to resurface. Shortly, thereafter, the demand for furs began to decrease
dramatically. Despite efforts to increase profits by diversifying into other
industries like lead mining, the American Fur Company folded in 1842. The
remaining assets of the company were split into several smaller operations,
most of which failed by the 1850’s.
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