Ames, Oliver

AMES, OLIVER

Oliver Ames (1807–1877) was a successful manufacturer, businessman, and politician. He is best known for his role as director of the Union Pacific Railroad, the eastern half of the first transcontinental railroad. Ames helped finance the project and oversaw its construction.

Oliver Ames was born on November 5, 1807 in Plymouth, Massachusetts, one of six sons born to Oliver Ames and Susanna Angier. His father owned a successful shovel manufacturing company in Bridgewater, Massachusetts. Ames was raised in North Easton, 20 miles south of Boston. At the age of 21 he went to study law at the Franklin Academy at North Andover. He studied there for 18 months and worked briefly in an attorney's office. After this short introduction to law, Ames decided that he did not enjoy working in an office and joined his father's company.

Oliver Ames and his brother Oakes Ames joined their father at the Ames Shovel Works. They entered the company at the bottom, working 10-hour days, six days a week. By the early 1840s, both boys had worked their way up to management positions. In 1844, Oliver Sr. retired and Oliver Jr. and Oakes reorganized the company as Oliver Ames and Sons. The boys served as co-presidents of the firm.

The company owned a water-powered plant that produced several types of tools, but specialized in shovels. They established a foothold in the market by creating a lighter shovel. At first the new product was thought to be less durable than the older, heavier shovels. But the lighter shovels allowed workers to be more productive and the product proved a great success. The company supplied shovels to thousands of western settlers and California gold miners. In addition, the growth of the railroad industry fueled the demand for the Ames' products. By 1860 the company was worth over 4 million dollars.

Oliver Ames also had an interest in politics. In 1852 he was appointed as a Whig to the Massachusetts State Senate. In 1857 he was popularly elected to the same position. His stint in politics, however, was brief. After his second term, Ames chose not to run for reelection and instead returned to his business interests.

In the 1850s Oliver and his brother became increasingly interested in the budding railroad industry. In 1855 they built the four-mile Easton Branch Railroad from the shovel works in Stoughton, Massachusetts, to a point where it connected to a Boston-bound line. Ames later served as director of the Old Colony and Newport Railroad, which took control of the Easton Branch Railroad.

During the American Civil War (1861–65) Oliver Ames and Sons won several government contracts to supply shovels, swords, and other equipment. By 1865 the firm's worth had increased to 8 million dollars and the Ames brothers had surplus money for investing. They decided to invest their money in the railroad industry, particularly in the Union Pacific Railroad, which was the eastern half of the first transcontinental railroad. Oliver and Oakes purchased large quantities of stock in the Union Pacific Crédit Mobilier, a construction company and investment project for the Union Pacific. Ames was able to invest a large amount of money in the project. He invested more than 1 million dollars of his own money into the railroad and raised an additional 1.5 million dollars on the credit of the family business. In addition, the Ames brothers placed the resources of their factories at the disposal of the railroad.

In 1866 Oliver Ames became acting president of the Union Pacific Railroad and was elected as president from 1868 to 1871. With Oliver's careful management and financial backing, the railroad flourished., Four-fifths of the line was built during his tenure as president. Despite engineering difficulties, rough terrain, and labor problems, the project was finally completed on May 10, 1869, when the Union Pacific Railroad met with the Central Pacific Railroad at Promontory, Utah. The company's success, however, was marred by a financial and political scandal involving Oakes Ames and the Crédit Mobilier. While Oliver Ames was never directly involved in the affair, the events occurred during his presidency of the company. In one sense it was tribute to him that the railroad was completed in spite the enormous loss of revenue because of graft.

In 1871 Ames left the presidency of Union Pacific, though he remained a director until his death. He returned his attention to the shovel company, which was on the verge of bankruptcy because of the extensive financing of the railroad. Oliver put that company back in order and also pursued business interests with banks and other railroads.

Ames was not only a successful businessman, but also a philanthropist. He was a devout Unitarian and donated a large sum of money for a new Unity church and parsonage in North Easton. He also contributed funds for a Catholic church and a Methodist meeting house. In his will Ames left money for a library, public schools, and local roads in his hometown of North Easton. Oliver Ames died in that town on March 9, 1877.

See also: Oakes Ames, Central Pacific Railroad, Union Pacific

FURTHER READING

Galloway, John Debo. The First Transcontinental Railroad: Central Pacific, Union Pacific. New York: Simmons-Boardman, 1950.

Garraty, John A., and Mark C. Carnes. American National Biography, Volume 1. New York: Oxford University Press, 1999.

Griswold, Wesley S. A Work of Giants: Building the First Transcontinental Railroad. New York: Mc-Graw Hill, 1962.

Union Pacific Railway Archives, Fact Figures and History. Massachusetts, 1997.

Utley, Robert H. "Golden Spike: Chapter 2: Building the Pacific Railroad," US History, September 1, 1990.