Bio of BACKUS, Edward Wellington (b.1860), Hennepin Co., MN ========================================================================= USGENWEB NOTICE: In keeping with our policy of providing free information on the Internet, material may be freely used by non-commercial entities, as long as this message remains on all copied material, AND permission is obtained from the contributor of the file. These electronic pages may NOT be reproduced in any format for profit or presentation by other organizations. Persons or organizations desiring to use this material for non-commercial purposes, MUST obtain the written consent of the contributor, OR the legal representative of the submitter, and contact the listed USGenWeb archivist with proof of this consent. If you have found this file through a source other than the MNArchives Table Of Contents you can find other Minnesota related Archives at: http://www.usgwarchives.net/mn/mnfiles.htm Please note the county and type of file at the top of this page to find the submitter information or other files for this county. FileFormat by Terri--MNArchives Made available to The USGenWeb Archives by: Laura Pruden Submitted: June 2003 ========================================================================= Copyright. All rights reserved. http://www.usgwarchives.net/copyright.htm ======================================================== EXTRACTED FROM: History of Minneapolis, Gateway to the Northwest; Chicago-Minneapolis, The S J Clarke Publishing Co, 1923; Edited by: Rev. Marion Daniel Shutter, D.D., LL.D.; Volume I - Shutter (Historical); volume II - Biographical; volume III - Biographical ======================================================== EDWARD WELLINGTON BACKUS - Vol III, pg 298-306 An outstanding figure in the paper and lumber industries of the middle North­west, if not in the entire country, Edward Wellington Backus has been continuously identified with the lumber trade for more than four decades, and with the paper trade for nearly two decades, always as a manufacturer and distributor of the product. Prom a small beginning in 1882, the now successor, Backus-Brooks Company, with its two dozen or more subsidiary and allied concerns, of which he has always been the active head, owes its growth and success chiefly to his initiative, guidance and force. Yet Mr. Backus gives full credit to Mr. Brooks, his son, Seymour, and other close associates for their share in the success which has followed their efforts. It might be interesting to note here that Mr. Backus now enjoys the distinc­tion of being the pioneer active lumber manufacturer of this state. He was born in Jamestown, New York, on December 1, 1860, his parents being Abel and Anna (Anderson) Backus. The father, who was of English origin, was in the service of Queen Victoria of England as first assistant to her chief landscape gardener when a young man of under twenty years and at the same time four of his brothers were in the English navy. The mother, Anna Anderson Backus, is of Scandinavian origin, both her father and grandfather being skilled mechanics of a high order. The parents removed from the Empire state to Red Wing, Goodhue county, Minnesota, when their son Edward was less than three years of age, where the father worked at his trade of stone mason. About four years later they removed to a farm on Featherstone Prairie, nine miles from Red Wing, which the father cultivated and, when time would permit, worked at his trade. In later years he came to Minneapolis, where he lived the remainder of his life, passing away in 1912 at the age of seventy-seven. His widow, who makes her home in Minne­apolis, has reached the age of eighty-six and still enjoys excellent health. In the acquirement of an education Edward W. Backus, the farmer boy, at­tended the little country school at "Burley's Corner" on Featherstone Prairie, and in 1878, when seventeen years of age, entered the class of '84 at the University of Minnesota, which he attended, off and on during the four years following, when his financial condition would permit, and completed his college course up to the junior year. Even at that age he was sufficiently self-reliant to decline any aid from his father, not even to the extent of one dollar, and worked his way while attending the University. Sometimes he worked off days on the University farm, then located in Southeast Minneapolis, sometimes on the Eustis brothers farm nearby, sometimes he carried newspapers. One year during his University course he cultivated a farm on shares and at the same time taught school during the winter months, in Vasa township, four miles from his home. In the early fall of 1881, after marketing the crop which he had harvested on the rented farm, he said a final farewell to his old home and the farming community in which he had passed his boyhood days and developed his wonderfully robust constitution. He felt he had graduated as a real dirt farmer and returned to Minneapolis with the money he had made teaching school and farming, amounting to nearly one thousand dollars, which in those days was a large sum, with the intention of com­pleting his college course. During that year he not only kept up with the studies of his college class, but made up for the time he had been absent in previous years. During this year he also assisted his brother, then a senior, to the extent of some three hundred dollars, so that he could complete his college course that year, which he did. After the completion of that college year and after all bills were paid, Edward found himself the possessor of just one five-dollar bill, and he then set about to get a job. He decided to learn either the flour business or the lumber business, then practically the only industries of importance in Minneapolis. He hoped his earnings the following year would enable him to return to the University in 1883 and by again doing double duty he could graduate with the class of 1884. In this he was disappointed, as in those days good positions in commercial business were few and far between and wages were low. When he finally succeeded in getting a position at small pay, he did not dare to let go of it for fear the opportunity to make real progress, as he saw it, might not soon come again, if ever. Therefore, one of the greatest disappointments of his life is that he did not graduate at the University of Minnesota. In the summer of 1882, at the age of twenty-one years, we find Edward Wellington Backus entering the lumber business as an employe of the firm of Lee & McCulloch of Minneapolis, at the modest salary of nine dollars a week. This was a new, small firm in the trade in this city, that had just completed the construction of a small, "one-circular" sawmill on the river, at Eleventh avenue Northeast Minneapolis, and had started sawing operations. Their invested capital was six thousand ($6000.00) dollars. Their cut of lumber the first year was slightly over one million feet. Mr. Backus opened the original set of books, also sold the first bill of lumber. He knew nothing about the business and realized that he must learn it by close application and so he set about the task with a determination to succeed. The assistance and instructions he received from Mr. Alexander S. McCulloch, the resident partner, were issued from the latter's bedside, where he was confined by serious illness. This condition continued and the following summer (1883) while still confined to his bed he offered his interest in the firm to Mr. Backus for three thousand ($3,000.00) dollars in cash. Mr. Backus had no money, but he had courage-and better still, found that even that early in his career his banker had confidence in him. The outcome was that Mr. H. P. Brown, cashier of the Commercial Bank of East Minneapolis, loaned him the full amount-three thousand dollars, at ten per cent interest-with which to take over Mr. McCulloch's interest in the firm, and shortly thereafter the firm name was changed to Lee & Backus. Judson W. Lee, the senior, non-resident partner, who had employed young Backus on one of his brief trips to Minneapolis, started him to work and then left the city to look after his other interests, having unbounded confidence in him from the outset. After taking him to the mill and lumberyard he handed him the keys and combination to the safe with the remark, "I feel sure you can learn this business and will be able to run it-I have other matters to look after. Now work out your own salvation." On his next visit a month or so later, lasting about an hour, he issued written authority, empowering young Backus to sign checks and power of attorney to sign notes. From that time until he sold out his interest to Mr. Backus in 1886 he was absent from Minneapolis, in California and elsewhere almost continuously-ten full hours in the office and about the works would more than cover the time he gave to that business. In the spring of 1886 he came back from California and said he wanted to close out his interests in Minnesota and go to the Pacific coast to live permanently. He asked for a balance sheet. It was given him and showed that his interest was worth forty thousand dollars. He said: "1 will take all of the real estate except the sawmill, which you must keep, at sixteen thousand dollars, four thousand cash and your notes for five thousand dollars each, due in one, two, three and four years at ten percent interest." The trade was made and the firm name changed to E. W. Backus & Company, although Mr. Backus was then the sole partner. It is, therefore, obvious that from the day Mr. Backus entered the service of Lee & McCulloch in the late summer of 1882, fate put upon his shoulders the responsibility of learning the lumber business, unaided, by his own efforts, taking a small, six thousand dollar sawmill, assembled from second­hand machinery throughout, and developing the business into its present organization-the Backus-Brooks Company, with its two dozen or more subsidiary and affiliated corporations owning property valued at tens of millions. From the very beginning the growth was rapid and constant; starting with the small cut of slightly over one million feet in 1882, it increased from year to year till in 1892; the lumber manufactured was over seventy-one million feet. Two years later it reached about one hundred million feet and remained there for several years. The expansion in capital was entirely from the profits of the business. During these years Mr. Backus sold the little "circular" sawmill and purchased two larger ones, one situated at the easterly end of the Plymouth Avenue bridge, the other on the river at the foot of Tenth avenue Northeast. Both of these he enlarged and rebuilt, putting them into the most modern condition with a yearly capacity of one hundred and twenty million feet. In 1893 Mr. Backus met his first serious setback. His was the greatest loss in the conflagration of August 13, 1893, which destroyed all the property on nearly fifty city blocks in Northeast Minneapolis, including three sawmills, two shingle mills, sash and door factories, planing mills, with all equip­ment, residences and nearly sixty million feet of lumber. That conflagration still stands as probably Minneapolis' greatest fire. In it Mr. Backus' loss included two sawmills with all equipment and nearly fifty million feet of lumber, all valued at over one million one hundred thousand dollars, with insurance of less than one-half that amount. With his manufacturing facilities swept away, Mr. Backus found it necessary to employ custom mills for the remainder of that year, with which to manufacture his logs into lumber. Simultaneously he began casting about to buy another sawmill plant. This opened up negotiations with Messrs. C. A. Pillsbury & Company which, after some months, resulted in the purchase from them early in 1894, of the sawmill plant and property located on the river at the foot of Thirty-second avenue North Minneapolis, which had formerly been owned by the defunct Northern Mill Company. This purchase, moreover, was only a small part of the transaction which Mr. Backus conceived and carried through, after his tremendous fire loss, in order to reestablish himself on a firm footing for the future. The work he did and the plans he laid during the months that intervened between the date of the fire in August, 1893, which virtually wiped out his business, and March, 1894, practically determined his future business career. His scheme was to secure control of the large holdings of pine timber, which he personally knew amounted to several billion feet, between Brainerd, Minnesota, and the international boundary, two hundred miles to the north, and then to build a main line railroad between these two points to insure profitable operating conditions. After he finally decided upon this plan of action he opened up negotiations with C. A. Pillsbury & Company and with Mr. T. B. Walker, who were by far the largest individual holders of pine timber in that section, their holding amounting to upwards of two billion feet; while the former company also held the legal title to the sawmill plant in Minneapolis. After negotiations had gone on for several months Mr. Backus received assurance from both of these interests that the property could be purchased on a certain basis, the details to be worked out promptly if convinced that he could finance? the project. Thereupon, in January, 1894, Mr. Backus invited a few of his Minne­apolis' competitors, together with one or two outside individuals, to join him in his proposed enterprise, with the result that the purchase was made by the syndicate which he organized, and as finally constituted, was composed of five lumber companies-E. W. Backus Lumber Company, Nelson, Tenney & Company, J. W. Day & Company, Carpenter-Lamb Company and Brainerd Lumber Company. In this syndicate the interest of Mr. Backus' company was thirty per cent. To this syndicate is due the credit for the construction and existence of what is now the Minnesota & International Railway (then Brainerd & Northern Railway) operating two hun­dred miles of main line between Brainerd, Minnesota, on the Northern Pacific Railway, and International Falls, Minnesota, on the Rainy River and international boundary. Immediately after closing the timber and sawmill purchase in March, 1894, Mr. Backus, representing the syndicate, sent surveyors into the field to locate the railroad and about two months later a contract was made with Foley Brothers & Guthrie to build the first division of the main line numbering about sixty miles. This division was rushed through to completion and put into operation before October 1st of that year and during the following ten months it transported to Brainerd nearly one hundred and fifty million feet of saw logs for the syndicate, in addition to conducting the ordinary business of common carrier which immediately sprang up along the line as soon as operations started. Thereafter extensions were made from time to time as lumbering operations required until 1906, twelve years after the first division was built, when Mr. Backus located and contracted with Dempsey & Dougherty for building the last thirty-four miles of main line into International Falls, Minnesota-the boundary terminal. Meantime in 1899, after the line had reached Bemidji, about ninety miles out of Brainerd, the Northern Pacific Railway Company had taken over the entire interest in the company formerly held by all the other syndicate members who joined Mr. Backus in the enterprise in 1894. After that change in ownership the Road was and still is operated by the Northern Pacific Railway, the same as if it was a part of that system, but Mr. Backus has always been on its board of directors. In 1906 he became impatient at the indiffer­ence shown by Northern Pacific interest in building the last thirty-four-mile gap to the international boundary, and organized the big Fork & International Falls Rail­way Company, with which to complete the line, but before it was completed the Northern Pacific interest repented and took it over. In 1894 Mr. Backus organized the E. W. Backus Lumber Company under the laws of Minnesota, of which he was made president, with a capital stock of six hun­dred thousand dollars. This corporation took over the business of E. W. Backus & Company and issued five hundred thousand dollars of its stock in payment there­for. Shortly thereafter Mr. Augustus E. Horr and Renselaer C. Leavift-father and uncle, respectively, of Mrs. E. W. Backus-joined the organization, each taking fifty thousand dollars of the remaining one hundred thousand dollars of treasury stock. In 1898 Wm. F. Brooks withdrew from the firm of Nelson, Tenney & Company, one of the syndicate members in the enterprise conceived by Mr. Backus in 1894, and on January 1, 1899, joined the E. W. Backus Lumber Company. Meantime, Mr. Leavitt had died and his interest had been taken over by Mr. Backus, who in turn sold an interest in the company to Mr. Brooks, who from that time up to the present, has worked very closely with Mr. Backus in all of their enterprises, and the following year the corporation name was changed to Backus-Brooks Company. In 1902 the Backus-Brooks Company, a three million dollar corporation, was organized under the laws of the state of Maine, with Mr. Backus as president. This corporation took over the business and assets of Backus-Brooks Company, the stock­holders receiving five shares in the new company for each share formerly in the old company. This close corporation continues today the same as when organized, the heirs of Augustus E. Horr, who died in 1908, having succeeded to his interest. In 1896 Mr. Backus departed slightly from the beaten path in the lumber business, which he had followed exclusively up to that time, and made a small investment in some mining claims in the Blue mountains near Sumpter, Oregon. He immediately developed this property, constructed a mill for the treatment of the ores and in 1897 organized the Columbia Gold Mining Company, of which he was president, and this corporation operated the property without cessation and successfully under his direction for twenty years, when he closed the mine on account of the excessive depths to which the workings had been carried and which then called for a complete change in mining methods. In 1900 he gave way to his natural pioneering instincts and went to Nome, Alaska, where he became interested in gold mining and then organized the Northern Mining & Trading Company, of which he was made president. These operations were under his personal supervision on the ground in 1900 and 1901. Thereafter operations were conducted for several years under his direction through a resident manager. In the late '90s Mr. Backus began to make his plans for the development of large industries on the international boundary, at the point which he had planned would be the terminus of the railroad which he had conceived after the big fire in 1893. He set about to secure the water power properties on both the Canadian and Minnesota sides of the Rainy river. He also began to acquire the necessary timber holdings in this section to justify the establishment of large paper mills and sawmills. In this he was successful and during the years 1903 to 1906, inclusive, he organized the following corporations, of which he was made president: First National Bank of International Falls, International Lumber Company, Rainy River Improvement Company, Ontario & Minnesota Power Company, Ltd., Keewatin Lumber Company, Ltd., and a number of smaller, subsidiary organizations. He also joined the Shevlin-Carpenter interests in the organization of the Rainy River Lumber Company, Ltd., of which he was made a director, but in this company held less than a majority interest. During this period he was also made a director of the Northwestern National Bank and has served on that board continuously up to the present time, a period of about twenty years. During these years large sawmill plants were erected and put into operation at Keewatin and Rainy River, Ontario, by the corporations named, while construction work was actively begun on the dam which extends from shore to shore in the Rainy river on the international boundary at International Falls, Minnesota, on the United States side and Fort Frances, Ontario, on the Canadian side; also on the hydro-electric power plants and pulp and paper mills. In 1907 the railroad from the south was completed to International Falls and put into operation. Also during the years 1907 to 1910, inclusive, Mr. Backus and his associates in Backus-Brooks Company organized the International Bridge & Terminal Company, the Minnesota & Ontario Power Company, and the Minnesota, Dakota & Western Railway Company, completed the power dam, hydro-electric plants, pulp and paper mills, sawmills; built nearly forty miles of main line railroad and terminals under the new Minnesota, Dakota & Western System, which now has nearly two hundred miles of single line track, and put all of these properties into operation. During the years 1911 to 1914, inclusive, he and his associates organized the Fort Frances Pulp & Paper Co., Ltd., the International Insulation Company, the Keewatin Fower Company, Ltd., of Kenora, Ontario, which embraced the ownership of the famous Norman Dam, at the outlet of Lake of the Woods; secured from the Ontario government timber concession tributary to this water power and also acquired the entire assets of the Shevlin interests in the sawmill plant and business located at Spooner, Minnesota, while at the same time selling to the same interests the Backus-Brooks Company minority holding in the Rainy River Lumber Company, Ltd. (at Rainy River, Ontario). During these years the paper mill at Fort Frances was built and put into operation. The newly acquired lumber business at Spooner, Minne­sota, was taken over and put into operation and plans for the immediate development of the water powers at Kenora with pulp and paper mills in connection therewith was put under way, but the World war temporarily prevented proceeding with this development. By this time the corporations which Mr. Backus' companies controlled had made such strides in the manufacture of news print paper that figured from a production standpoint, they stood second to only one other single plant in the world. In 1915 to 1917, inclusive, the Backus interest took over the sawmill and box factory plants of the Rat Portage Lumber Company, located at Kenora and consolidated same with the Keewatin Lumber Company, Ltd. They constructed at International Falls a kraft pulp mill and a mill for the manufacture of Universal Insulite, a patented by-product, which now bids fair to rival the lumber business. Late in 1917 Mr. Backus met his first serious illness, which lasted for nearly a year, although dur­ing this time he did not entirely relinquish his attention to the growing business of his operating companies. With his returning health in 1919 came his ambition for expansion and from 1919 to 1922, inclusive, he secured from the Ontario government large pulp wood and timber concessions and water powers, purchased the Municipal Hydro-Electric Power Plant from the Town of Kenora, which his company remodeled and enlarged; constructed and put in operation a pulp mill and is now completing the first paper mill unit in connection therewith. While it is true that the paper mills now under Backus-Brooks control are already classed as being among the largest in the world, yet Mr. Backus talks of them as being in their infancy. Under his companies' control are water powers and woodlands sufficient to justify an ex­pansion to double or even quadruple the present capacity, only waiting for the hand of the builder. Therefore, the future may reasonably expect the big work on which Mr. Backus has spent his life, to continue to expand. Mr. Backus married Miss Elizabeth Horr of this city. She was born in Maine and comes from a long line of prominent New England ancestors, among whom are Governor John Winthrop, Governor Thomas Dudley and Rev. Robert Jordan. Her mother, Mrs. Emily E. Horr, still lives on the old homestead in Southeast Minneapolis and enjoys excellent health. Mr. and Mrs. Backus have one son, Seymour W., aged twenty-seven, who is vice president and joint manager with his father, of all the companies of which his father is at the head. Seymour W. and his wife, Ruth Towle Backus, have two daughters, aged five and six years, respectively. Another son, Edward Raymond, was the unfortunate victim of a sad accident while hunting on Rainy lake, which cost him his life, immediately after his graduation from Yale College, with high honors. This biographical sketch shows how closely the business career of Mr. Backus for nearly twenty-five years was interwoven with the history of the lumber industry in Minneapolis. Mr. Backus' active participation in the lumber manufacturing business of Minneapolis came at a time-1882 to 1905-which embraced the period in which that industry was at its zenith and this city reached the point where it was the largest lumber manufacturing center in the world, a commanding position which it held for several years. Today it exists only in memory, for not a log is now being manufactured into lumber here. Strangely, too, that period and im­mediately preceding it marked the passing of most of the "Old Guard" in the in­dustry. Individuals, partnerships and corporations which had grown into large, prosperous institutions chiefly due to the almost unlimited supply of pine tributary to Mississippi waters which they had acquired cheaply preceding this period, together with favorable labor and operating conditions, either failed in business or retired to avoid sacrificing their valuable timber holding when the new crops of operators entered the industry with their push and up-to-date methods of manufacturing and marketing. The conspicuous newcomers in this group included the H. C. Akeley Lumber Company and its successor, the Itasca Lumber Company, E. W. Backus & Company, and its successors, E. W. Backus Lumber Company and Backus-Brooks Company, C. A. Smith & Company and its successors, the C. A. Smith Lumber Company, North Star Lumber Company and its successor, the S. C. Hall Lumber Com­pany, Hall & Ducey Lumber Company, Hall & Shevlin Lumber Company and the Shevlin-Carpenter Company, the Brooks-Scanlon Lumber Company, Carpenter Brothers Company and its successor, the Carpenter-Lamb Company. Of the old pioneer guard which numbered around twenty prosperous concerns when Mr. Backus made his entry into the industry in 1882, the only ones who remained until well on to the last was the Nelson, Tuthill Lumber Company, successor to Nelson, Tenney & Com­pany, and the Bovey DeLaittre Lumber Company, successor to Eastman, Bovey & Company. In 1904, when the end of the supply of pine timber on the Mississippi river, tributary to Minneapolis, was in sight, and the only holding of importance was that of the Northland Pine Company-a Weyerhaeuser organization-that company purchased the sawmill property of Backus-Brooks Company and operated it until about 1920, when the old whistle which had called the workers to duty for thirty-five years was sounded for the last time and the great lumber manufacturing industry of Minneapolis was dead forever. During this period and immediately preceding it, the principal obituaries recorded in the city's lumber manufacturing industry were the. following: W. B. Judd, Dr. Butler, Fred Clarke, Lamoreaux Brothers, C. D. Haven & Son, Jesse G. Jones, Fred J. Clark, Farnham & Lovejoy, Merriman, Bar­rows & Company, N. P. Clarke & Company, successors to Clarke & McClure, Northern Mill Company, Clough Brothers, McMullen & Company, Beedy & Bray, Bray & Robinson. Those who retired for lack of profits and in most cases under pressure were: Pettit, Robinson & Company, J. W. Day & Company, successors to Leonard Day & Sons, Henry F. Brown, Tibbitts & Russell, J. B. Bassett & Company, W. D. Washburn & Company and Washburn Mill Company, J. C. Kimball, Goodnow & Hawley and its successor, W. C. Goodnow and Goodnow & Lawther. Those who retired in good financial standing, but who were unwilling to sacrifice their standing timber were: J. Dean & Company, Camp & Walker, Dorilus Morrison and his successor, Morrison Brothers and Clinton Morrison, John Martin Lumber Company, Minneapolis Mill Company. Mr. Backus is a republican in politics and has always been an active worker in the local ranks of the party, but the honors and emoluments of office have never had any attraction for him. He was a presidential elector in 1904. His appreciation of the social amenities of life is indicated by his membership in the Minneapolis, Minikahda and Lafayette Clubs of this city and also in the Congressional Country Club of Washington, D. C., and the New York Athletic Club. When in the battle of life the city boy crosses swords with the country lad the odds are against him. The early rising, the daily tasks, the economic habits of the country boy prepare him for the struggle that must precede ascendency. The early training of Mr. Backus was that of the farm and the habits of industry and close application which he thus developed have constituted the foundation of his present success. His is the record of a strenuous life-the record of a strong individuality, sure of itself, stable in purpose, quick in perception, swift in decision, energetic and persistent in action.