Steam In Transition: A History of the Nichols and Shepard Company and the Port Huron Engine and Thresher Company
Charles O. Olsen,
12595 Mt. Garfield, Ravenna, Michigan 49451
Editor's note: We have excerpted from the
following paper that Charles Olsen wrote for a college course. The
accompanying photos are ones he sent for our readers'
enjoyment, but they are not part of the story. He writes, 'I
spent many weekends traveling to the cities of Battle Creek and
Port Huron perusing literature in the public libraries and reading
diaries of former employees and local historians. While at Port
Huron, I arranged an interview with Mr. Eugene A. Moak, whose
father had been a plant superintendent with the Port Huron Steam
Engine and Threshing Company. We also toured the remains of the
buildings where Mr. Moak operated an industrial supply house. I
believe the contents of the paper are historically accurate and can
provide readers with an enlightening account of the lives of all
employees from both companies. I hope everyone in engine land
enjoys the paper as much as I have had in my research and
writing.' Chuck
The Nichols and Shepard Company of Battle Creek opened for
business in 1848. The original owners and co-founders were John
Nichols and Charles H. Shepard, a transplant from upstate New York.
Operating a modern foundry works as well as a blacksmith shop, the
two mechanically inclined entrepreneurs had a fledgling enterprise
by 1850.1 In these earlier days custom work preceded
daily productions.
Charles Shepard wrote to his younger brother David, who was a
farmer in New York, to tell him of the success of Nichols' and
Shepard's business. David Shepard was experiencing some health
problems that prohibited him from continuing farm operations, and
he decided to relocate to Battle Creek in 1849. Charles Shepard
hoped to work the sharp mechanically minded David into the firm,
but David chose instead to seek his fortune and fame in the
California Gold Rush of 1849-1850.2
David Shepard did not find gold in California and returned to
Battle Creek at the urging of his brother. Charles then formally
introduced David to John Nichols, who promptly hit David with an
offer to design and construct agricultural machinery. David
accepted Nichols' proposition and in a bold stroke of genius
bought out his brother's interest in the company.3
Why Charles Shepard sold out in 1851 remains a mystery.
With Nichols holding down the production of various machinery
such as sawmills, Shepard began to design a threshing machine. In
1859 Edwin C. Nichols, son of John, joined the company. During
1861, Nichols and Shepard decided to enter one of their threshing
machines in the San Joaquin Valley Fair at Stockton, California. A
huge crowd turned out at the factory on the day Nichols and
Shepard's threshing machine was loaded on a rail car and hauled
westward. Several competitors exhibited quality machines at the
fair, but the premium award was given to Nichols and Shepard for
the flawless performance of their all wood threshing machine.
Shepard applied for a government patent on September 24, 1861, and
selected the name 'Vibrator ' for this particular model of
a threshing machine.4 Battle Creek had become home for
other competing companies in the threshing machine business: The
Upton and Brown Manufacturing Company (1851) and the Advance
Thresher Company (1881).5
In 1869 the company decided to expand manufactured steam engines
into their repertoire. This called for an expansion program, and
several buildings were constructed on 40 acres at Marshall and
Michigan Streets.
During the 1870s and throughout the rest of its existence,
Nichols and Shepard emerged as one of the leading manufacturers of
reliable steam engines and efficient threshing machines. John
Nichols and David Shepard were among the most prominent citizens of
Battle Creek. Visiting salesmen and colleagues alike were
astonished to discover that both owners engaged in production
activities on numerous occasions.6 More data concerning
the relationship with the owners and their employees will follow
later.
The death of John Nichols in 1891 created a void in the
company's managerial hierarchy, and Edwin Nichols succeeded his
late father as President. The elevation of Edwin to President might
indicate that the Nichols family controlled more stock than David
Shepard, who remained as Vice-President. Other elected officers
included: C. C. Beach who became Treasurer, and Shepard's son
Freedom George, who functioned as Secretary and head of the
Directorate.
Steam engine and thresher sales continued to be brisk during the
1890s, and the company opened branch offices in Kansas City,
Missouri; Peoria, Illinois; Fargo, North Dakota; Des Moines, Iowa;
Billings, Madison, Wisconsin; Lincoln, Nebraska; Houston, Texas;
Auburn, New York; Salt Lake City, Utah; and Blairsville,
Pennsylvania. Regional branches in Saskatchewan, Manitoba, and
Alberta handled Canadian transactions.7 All machinery
was shipped by rail and delivered to the company's agent at
each respective office. A parts network was distributed throughout
the branch offices when repairs were needed.
At the turn of the century, the Nichols and Shepard Company
revamped their established line of reliable 'Vibrator'
threshers and changed the name of the new improved models to The
Red River Special Line. These redesigned threshers were available
in three sizes made of galvanized steel and six sizes consisting of
traditional hardwoods. Internal improvements in cylinder design and
shakers took place on all models. The company also developed
several sizes of steam engines of both single and double cylinders.
Special grates in the firebox were structured to allow western
farmers the option of burning straw as a fuel to generate
steam.8
By 1910 the tractor manufacturing industry found itself in a
stage of transition which, fortunately opened up a new market.
Since the late 1880s and early 1890s, several tinkerers had
experimented with various two and four cycle engines with
aspirations to create an alternative power source. The impetus
behind their motives was due to several factors. First, steam
engines were heavy, often weighing a few tons. This placed the
operator in a precarious position when wooden bridges had to be
crossed. Many operators were killed or seriously maimed when the
steam engines crashed through old timbers and plunged into creeks
and ravines. Steam engines were dangerous, and the water level in
the boiler required constant supervision. An unwatched boiler would
create foam and increased the possibility of an explosion. Finally,
steam engines needed thirty to sixty minutes of warm-up time each
morning before enough steam pressure could rotate the crankshaft.
Oil companies exploited the situation by refining and distributing
cheap kerosene and gasoline to the industry.
Like most manufacturers, Nichols and Shepard management
recognized the importance of this evolution and new market. In 1910
they hired mechanical engineer P. R. Hawthorne, who had previously
built gasoline tractors for the Fairbanks Morse Company and
International Harvester Corporation. What Hawthorne unveiled was a
sound prototype available in three sizes: a small 20-42 horsepower
model; a mid-size 25-50 model and the giant 35-79
tractor.9 Incidentally, horsepower of either the steam
or gasoline variety, was measured at the drawbar and the pulley.
Therefore, the largest Nichols and Shepard gasoline tractor
developed 35 horsepower at the drawbar and generated 70 via the
crankshaft pulley, which was the derivative for the operation of
belt driven machinery. These tractors proved to be very reliable
and were especially popular with farmers in the American and
Canadian prairies where soils were extremely tough to cultivate.
Overseas accounts in Europe and South America opened up new markets
and helped contribute to annual production totals of 1,500 grain
threshers and 700 steam and gasoline tractors annually through
1912.10
Threshing rye on the Lester Olsen farm near Coopersville,
Michigan, August 26, 2000. Power supplied by Chuck Olsen's 1913
16 HP Baker.
Nichols and Shepard continued to build its fine line of steam
engines, gasoline tractors and threshing machines during the 1920s.
However, the sales of steam engines and large gasoline tractors had
slumped industry wide due to the introduction of smaller four
cylinder tractors produced by a host of manufacturers. Henry Ford
and International Harvester led the path to this
market.11 Nichols and Shepard never realized the
potential of the market for small tractors and continued to
manufacture the same line of machines until 1929. It appeared that
the company never experienced financial hardships during its
lifetime. The Board of Directors held a meeting in 1929 to discuss
a proposed buyout by the Oliver Farm Equipment Company of Charles
City, Iowa. Oliver's offer was accepted, and the company was
sold. The management of Oliver disbanded the entire line of steam
and gasoline tractors of Nichols ands Shepard, and replaced them
with their own models, which consisted of the small four cylinder
variety. These tractors were marketed under the name Oliver-Hart
Paar, which had been derived from a takeover of Hart-Paar in 1916.
The popularity of these tractors, along with other implements
garnished a fine reputation and Oliver prospered through the Great
Depression until 1960 when the White Motor Company bought Oliver.
The history of another Michigan tractor manufacturer now
begins.
Port Huron
The earliest beginnings of the Port Huron Steam Engine and
Thresher Company have their roots in the city of Battle Creek. In
1851, a blacksmith named William Brown undertook custom
blacksmithing and foundry work. Soon overwhelmed with requests,
Brown constructed a small building and hired a few men to assist in
the work orders. Brown named his facility the Upton Manufacturing
Company. Gradually, Upton secured jobs related to the lumber
industry and agriculture as well.12
In 1875, a debate took place during a city council meeting in
Port Huron. The question of establishing a successful industry in
that city had gone unanswered for several months. Deciding to take
action, the city council concluded that such an industry was vital
to the growth of Port Huron. The council authorized the task of
securing a good business over to Charles E. Harrington, one of the
city's prominent citizens. Harrington, along with two
associates, met with several other citizens from Port Huron and
received verbal commitments to invest capital in the proposed
project.13 Knowing he had financial backing, Harrington
proceeded to Battle Creek specifically to visit the Upton
Manufacturing Company.
Harrington and Brown apparently struck a bargain, because three
years later, Upton Manufacturing relocated in Port Huron. A total
of fifty-one people subscribed for approximately $100,000 worth of
stock in the company. Brown retained a large minority interest in
the business, and functioned as plant manager because of his
experience in manufacturing. A building plan of various stages
accommodated the facility. By 1885, 20 buildings of different
heights and sizes were constructed on a 40 acre parcel near 24th
Street and the tracks of the Electric Light Railroad Company. A
board of directors came into existence at this time, and its first
officers were: President, Charles F. Harrington; Vice-President,
Henry Howard; Secretary and Treasurer, Frank A. Peavey: and
Superintendent, Rueben Shettler.14
In 1889, Upton Manufacturing Company employed 102 factory
assemblers/machinists, 15 traveling salesmen, and eight office
workers. The Upton line of agricultural machinery consisted of the
following:
Upton Horsepower available in two sizes
Upton Plain Portable engines available in three sizes
Upton Traction Engines including 'Longfellow' boilers came
in five sizes
Upton 'Combination' separators three sizes
New Port Huron separators in three sizes15
In the following years, the remaining stock of William Brown was
purchased, and the name of the company was changed to the Port
Huron Steam Engine and Thresher Company. During the early 1890s,
America experienced a depression and at several occasions the
company was on the verge of financial ruin. What appeared to save
the company from liquidation and receivership was a bicycling craze
that swept over America in the mid 1890's. The company
recognized the necessity for road improvements and repair for
bicyclists through the design and deployment of steam rollers and
road graders. This new line of machinery led to a meeting of the
first International Good Roads Congress in Port Huron on July 4,
1900 where the company provided the equipment and staged a
demonstration in road paving.16 More importantly
however, the road construction machinery propped up sagging sales.
The following figures give a yearly total of sales in dollars:
1897$300,273; 1898 $561,572; 1899$700,814; 1900$989,110; 1901
$l,110,000.17
The relatively swift turnabout in sales resulted in an attempted
takeover of the company in 1902. A group of Indiana businessmen had
traveled the Midwest and purchased a few agricultural manufacturing
firms; moreover, these companies had been absorbed and incorporated
into a single entity called the Thresher Trust. The Port Huron
Company called a meeting of all stockholders to ponder the question
of whether to sell out. The Secretary-Treasurer was so positive
that the company would be sold, that he presented several
possibilities to promote new businesses. However, Eugene and Edward
Moak, along with Edgar Vaness, addressed the stockholders and
proposed to remain in Port Huron and expand the business into other
areas such as manufacturing sawmills and corn shellers. The
stockholders embraced this alternate proposal, and voted to
purchase 40 acres of land on the St. Clair River from the Electric
Light Railroad Company.
1915 18 HP Keck-Gonnerman traction engine at Clarksville,
Michigan, owned by Melvin Lutten of Hamilton. August 2000.
This location was ideally situated near the river and rail lines
and also was served by an electric streetcar. By 1902, three new
buildings had been constructed. The largest facility was 300 feet
long and housed the thresher works. Extra space in this complex was
allocated for new offices, a medical facility to treat work related
injuries, and a post office. Electrified overhead cranes carried
heavy iron tonnage which resulted in greater efficiency and worker
productivity.18
Regional market expansion became a reality during 1905, as
branch houses sprang up in Des Moines, Iowa; Lincoln, Nebraska;
Minneapolis-St. Paul, Minnesota; Peoria, Illinois; and Logansport,
Indiana. A large staff of trained mechanics present out on the road
to effect repairs on all lines of Port Huron machinery. This
practice, also called experting, became commonplace in the tractor
industry. Looking to tap into foreign markets to secure contracts,
Port Huron had early success in the South American markets, but
collecting monies became difficult if not impossible; thus this
venture proved not to be as lucrative as first envisioned by the
company.
Like other traction engine manufacturers. Port Huron was forced
to complement their existing line through the development of a
gasoline tractor. The Port Huron gas tractor materialized in 1915,
after nearly three years of planning. All components were produced
by the company, with the exception of the engine, which was
purchased from an outside source. Unfortunately, the basic design
of the tractor, particularly the drive train, proved to be so poor,
that hardly any farmers wanted one. Instead of employing a standard
gear to gear transmission, Port Huron engineers incorporated a
friction drive mechanism which consisted of rotating fiber disks
driving against each other at perpendicular angles. When the
tractor was under a load, these disks produced excessive slippage
and disengaged the drive train. High fuel consumption and spark
plug fouling compounded the miseries of this seemingly cursed
tractor.19 Very few were built between 1917 and 1921 and
none are known to exist in this world today.
Facing growing financial instability, Port Huron authorized H.
W. Stevens who was a member of the Board of Directors, to journey
overseas to England in 1916. The purpose behind Stevens' voyage
was to persuade a wealthy friend originally from Port Huron, to
inject some badly needed cash into the sagging company. Because
England was in the midst of war, Stevens' request was politely
refused.20
The following year, President A. E. West and Treasurer J. I.
Sullivan formally acknowledged that overall sales had diminished,
and the attempt to break into the gasoline tractor market had not
been realized, because of flaws with the tractor. Continued
marginal sales forced the company into receivership in 1920. With a
skeleton work force, the company managed to manufacture threshing
machines until 1925. The company met its unfortunate end in 1928
and liquidated its inventory, also.21
The demise of the Port Huron Steam Engine and Thresher Company
epitomized the transitional crises which faced all tractor
manufacturers between 1910 and the Great Depression. Nichols and
Shepard survived because they adapted to meet changes in the
market. Companies like Port Huron failed, because they did not
comprehend the market and/or produced inferior machines that
garnered unfavorable reputation. The impact of these companies in
their communities and relationships with their workers will be
scrutinized next.
The enterprising men behind these companies were highly revered
in their communities. Not only did these industrial entrepreneurs
bring jobs to their cities, they also contributed to hospitals,
social clubs and even fire departments through philanthropic
endowments. Even though the companies instituted a Pullman type
system in their employee relationships, they seemed to value their
laborers to a higher degree than the steel magnates of this time.
In the 1870s, the Nichols and Shepard Company devised an unusual
social club and began a modest profit sharing scheme. An all
employees social club came to fruition under the heading of the
'Vibrator Social Club.' Each November, for over 40 years,
workers and managers alike boarded a train in Battle Creek that
carried them to remote areas in upper northern Michigan, where they
engaged in hunting and fishing exploits. Bernice Lowe, wife of a
participant gave this description of the 1877 foray: 'Club
members paraded about with feathers in their in their caps as they
showed off the quarry of the expedition. Included were no less than
48 deer, 23 turkeys, untold number of geese and ducks, along with
an abundance of over a dozen species of fish. Members then
proceeded to cook their prize catches as friends and relatives
gathered to partake in this lavish banquet which was fit for a
king.'22 The Port Huron Company sponsored several
Sunday outings for their workers.
Graham Sellers' M Rumely 26 HP compound under a full head of
steam at the National Threshers in Wauseon, Ohio, June 2000.
In 1887, the Nichols and Shepard firm began the practice of
annual distribution of some $50,000 worth of stock to loyal and
dedicated employees. The criteria for qualification was probably
based on tenure and good work habits. The rationale behind this
venture was that the affected employee had a vested interest in the
company, and would work toward achieving the aims of the company.
Another popular device used by these firms involved the
availability of cheap loans for that same loyal employee. Loans
were to be used for construction of a dwelling on company property
which was conveniently located near the factory complex. The Port
Huron Company aggressively pursued this endeavor and created a
mini-city complete with a park and electric streetcar. The
implications behind these gestures were that employees would stay
put and the chances that these workers would seek other employment,
unionize or become competitors them-selves, were
reduced.24
Therefore, unions were not surprisingly absent in most tractor
manufacturing firms. Most management teams printed company
newsletters through social clubs and often penned anti-union
editorials in local newspapers. The publicity of the 1873-1874 rail
strikes, as well as the Homestead and Pullman obstacles probably
reinforced owner prerogatives. The Nichols and Shepard Company
explained their anti-union position in a Battle Creek Examiner
editorial dated October 3, 1891.25 These sentiments
filtered throughout the community that when John Nichols died later
that year he was given an elaborate funeral with over 300
participants. Most businesses remained closed for three days as a
final tribute.26
The prospect for mobility within a company was not as restricted
as opportunities were in the steel and mining industries. Many
young men succeeded in fulfilling their apprenticeships as
machinists, and found careers as plant superintendents, mechanical
engineers, salesmen, and foremen. John and Horace Dodge completed
their apprenticeships with the Port Huron Company and left the firm
in 1898 to work for Henry Ford. 27
A final look at the tractor industry emphasizes the competition
that faced the Nichols and Shepard Company and the Port Huron Steam
Engine and Thresher Company. Annual improvements in carburetion,
cooling, and ignition systems drew the attention of farmers, and
resulted in more firms' entering the industry. Tractor
production doubled from approximately 2,000 units in 1907 to around
4,000 by 1910. Aggressive advertising in farm magazines contributed
substantially to this surge in sales. However, most machines were
too large for the small farmer, who relied on his loyal team of
horses.
The tractor industry grew phenomenally prior to World War I. In
1912, about 47 manufacturers produced almost 11,500 machines. By
1916, 107 companies sold nearly 30,000 units. This explosion in
tractor sales was due to high prices for agricultural commodities,
particularly in foreign markets. These profits and the idea that
tractors were changing American agriculture stimulated the
mechanization craze. Larger companies provided easy terms of
payment.
By 1925 approximately 165,000 units were constructed by 54
manufacturers.30
The turbulent boom and bust cycles of the 1920s effectively
weeded out unstable companies while stronger companies matured
financially because they correctly interpreted the market and
strove to improve the quality of their machines. The era of steam
passed into the twilight and within a few short years that faint
resiliency would be gone forever.
20 HP Keck-Gonnerman popping off steam while plowing at La
Grante, Indiana, August 12, 2000. Owned and operated by Herb
Swarm.
Endnotes
1. Knowles, Donald, Engineers and Engines February-March
1986, page 3.
2. Battle Creek Examiner, February 27, 1962.
3. IBID, Feb. 27, 1962.
4. IBID February 27, 1962.
5. IBID February 27, 1962.
6. Lowe, Bernice, 'A Persona! Diary of Battle Creek',
Willard Public Library, Battle Creek, Michigan.
7. Best sources are company catalog reprints in 1912 and
1922.
8. IBID, 1912, 1922.
9. Knowles, Donald, Engineers and Engines, February-March
1986 page 3. Reprinted company catalogs illustrate models.
10. Battle Creek Examiner, March 17, 1963.
11. Wendel C. H., 150 Years of International Harvester,
Crestline Publishing Company, Sarasota, Florida (1981) pages
258-260.
12. Moak, Eugene A., History of the Port Huron Steam Engine
and Thresher Company (1982) page 53.
13. IBID page 54.
14. Reprint from Factory Land Company (1986) page 3, courtesy of
Sara Larson and Eugene A. Moak.
15. Moak, Eugene A., History of the Port Huron Steam Engine
and Thresher Company (1982) page 54.
16. Port Huron Times Herald, July 5, 1900; also Moak, Eugene A.,
History of the Port Huron Steam Engine and Thresher Company (1982),
page 57.
17. Moak, Eugene A. History of the Port Huron Steam Engine and
Thresher Co., (1982) page 55.
18. IBID pages 58-59.
19. Wendel, C. A., Nebraska Tractor Tests (1985) page 34.
Tractor tested by University of Nebraska October 20-27, 1920, see
also Moak, Eugene A., History of the Port Huron Steam Engine and
Thresher Co., (1982) page 61.
20. Moak, Eugene A., History of the Port Huron Steam Engine and
Thresher Co. (1982) pages 60-61.
21. IBID page 64.
22. Lowe, Bernice, 'Personal Diary of Battle Creek,'
Willard Public Library, Battle Creek, Michigan.
23. IBID: see also Battle Creek Examiner March 17,
1963.
24. Reprint of Factory Land Company (1986) courtesy of Sara
Larson and Eugene A. Moak.
25. Battle Creek Examiner October 3, 1891.
26. Lowe, Bernice, 'Personal Diary of Battle Creek,'
Willard Public Library, Battle Creek, Michigan.
27. Moak, Eugene A., History of the Port Huron Steam Engine
and Thresher Co., (1982) page 55. Also, Gutman, Herbert G., Work,
Culture, and Society In Industrializing America(1976). Gutman
provides numerous examples of mobility in the steam locomotive
manufacturing industry, pages 211-229.
28. Knowles, Donald, Engineers and Engines, December-January
1986, pages 27-32.
29. Knowles, Donald, Engineers and Engines, February-March
1986 pages 26-27.
30. Knowles, Donald, Engineers and Engines, June-July 1986
page 27.
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Gates, Paul W., Agriculture and the Civil War, Alfred A.
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Gutman, Herbert G., Work Culture and Society In
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