From the November 1887 "Magazine of Western History", an article by Albert Hoppin
Edward P. Allis and His Life Work
It is now forty years since Charles S. Decker and James Saville, two young men from Dayton, Ohio, came to Milwaukee and laid the foundation of what has since grown to be the great industrial establishment known as the "Reliance Works" of Edward P. Allis & Co. These years have been eventful ones, full of vicissitudes, with many reverses and more of prosperity, in every change of which, either for good or ill, the Reliance works have taken their full share. In its present magnitude this great industry stands typical of the marvelous development in material wealth and general prosperity of the great northwest, and in its history one reads in a small scale the greater history of the vast section throughout which its name is almost a household word.The germ of the present immense works, as planted by the firm of Decker & Saville, consisted of a small stove foundry in which other foundry work was done in a small way, and a small machine shop. The works were located on the east side of what is now known as West Water street, a short distance above the present Oneida Street bridge, and had, as a sort of accompaniment, a millstone shop in which was manufactured the first pair of millstones ever made west of Lake Michigan. Small as the shops were at that time, they were the largest of the kind west of Buffalo, and the only ones where a full set of mill irons could be obtained. The buildings, which were wooden structures, stood upon leased ground, and the motive power was furnished by an eight inch cylinder engine. Concerning this engine, Mr. Frank Brunckhorst of Kewaunee, Wisconsin, who entered the Reliance works as draughtsman in 1854, writes, in 1885, that it was still running at that time and furnishing the power to drive a small saw-mill some nine miles west of Kewaunee. Although the institution was a small one, it proved to be too much of an elephant for the owners and they went to the wall during the hard times of 1857. The creditors took the works in hand, and they were run until 1860 under the management of Samuel S. Daggett, when they were purchased by Edward P. Allis, John P. McGregor and Charles D. Nash. The new owners took hold vigorously to build up the business and soon found out that more capital would have to be put into the enterprise to make it a success. As Messrs. McGregor and Nash had not any great faith in the future possibilities of the business, while Mr. Allis was a firm believer that the works would ultimately become very profitable, the partnership naturally dissolved and Mr. Allis having purchased the other interests immediately assumed a personal control and supervision that reached every detail of the business, and which, maintained with scrupulous fidelity during more than a quarter of a century, have resulted in the great growth and remarkable success of the Reliance works. From the very first Mr. Allis never wavered in his firm faithin the magnificent future possibilities, or wearied in his strong, energetic effort to make those possibilities practical realities. How well he has succeeded the history of the Reliance works and their present growing prosperity will serve to show.
At the time (1861) when Mr. Allis purchased the business it was of little magnitude, consisting entirely of general repairing and odd jobs. No attempt had ever been made to develop any line of systematic manufacture, and as the country was new, the trade was of small proportions. During the administration of Mr. Daggett the annual business done only amounted to the insignificant sum of thirty-one thousand dollars. At the expiration of four years Mr. Allis had, by strict attention and unflagging industry, more than trebled the volume of the business. During this time and for some years afterward he personally discharged all the duties of salesman, bookkeeper, correspondent and paymaster, the last being often the most difficult. The mechanical department was entrusted to Mr. A. G. Waldo, a good mechanic, who had entered the works while they were still under the ownership of Decker & Savilie, and who remained in charge of the works as foreman until his death, a few years after Mr. Allis became sole proprietor.
The business, at first almost a nullity, grew apace, one of the strong features of Mr. Allis' management being the fixed policy of always keeping the shops full of work and the men busy, no matter how small the margin of profit. The first important contract, and one which was undertaken solely on this policy, was that for furnishing the cast-iron chairs on which the rails of the old La Crosse railway first rested. The price realized was but barely above the price of the iron in the pig, but it kept the men employed. The first important machinery contract undertaken was that for the machinery for the first grain elevator built in Milwaukee. During all the years up to the present time this policy has been maintained, and the times have been few and far between when any man at the Reliance works has been laid off on account of lack of work. Now and for several years past the works have been at all times behind orders, although working night as well as day.
The original "Reliance Works" on West Water street soon became too small for the increasing requirements of the business, and in 1865, the buildings being very much overcrowded and entirely inadequate to the demands upon them, Mr. Allis purchased the present site and the new "Reliance Works" were built. The site chosen consisted of the three entire blocks lying between Clinton and Barclay streets and reaching from Florida street on the north to Pierce street on the south. Firm as was Mr. Allis' faith in the future of the works, it is doubtful if he then even dreamed that the time would come when this space would all be covered, or that the cry for more room would ever again disturb him. But every square foot, except what is necessarily occupied by railroad tracks and a very limited yard room, is now covered by two and three-story buildings, and still more room is needed.The old buildings were floated down the river on barges from West Water street, and put to subordinate uses in the new plant. Up to a year ago, some parts, rebuilt, remodeled and altered so as to be unrecognizable, were still in use, but the improvements of the present year have left little if any remaining. In addition to the old buildings a new machine shop and foundry were built. The former was erected on the southeast corner of Florida and Clinton streets, 60 x 140 feet, two stories high, with an attic or pattern loft under the roof. The foundry adjoined it on the east, but after a few years a larger and more commodious foundry was built on the Barclay street side and the old foundry was used as part of the erecting shop. During the present summer (1887) it has been entirely torn out, and a brick building erected in its stead. One of the last parts of this foundry to go was a small jib crane which was part of the original equipment, and which was retained in active service until the huge traveling crane in the new erecting shop was ready for use. The machine shop built in 1865 is still standing and in use, the first floor as a part of the machine shop and the second floor as a pattern shop. The motive power of the works at this time—1865—was a fifteen horsepower Ames portable engine, to which was soon added one of twenty-five horsepower, the pair running either singly or together as the necessities of the works required. At present over four hundred horsepower are required to drive the vast and complex mass of machinery contained within the works. This is one of the straws which show how the wind of prosperity has blown for the Reliance works.
Business was so prosperous in the new location that four years later—in 1869— Mr. Allis purchased the "Bay State" works of Walton & Goodnow. In the early days of Milwaukee one William Goodnow started a little machine shop and foundry on the northwest corner of Florida and Clinton streets. He was meeting with fair success, but when the Reliance works were located diagonally across from him, he, in a spirit of business rivalry, projected the Bay State shops, his design being to have the best and most completely equipped machine shop in the west. He accordingly purchased from John S. Harris the ground on the southeast corner of Lake' and Barclay streets and put up a three-story brick building, with engine-room, foundry and blacksmith shop adjoining. The whole establishment was equipped with an extensive outfit of tools, patterns, etc., and operations begun on a large scale. The plant was, however, far in advance of legitimate trade requirements at that time, and the owners became heavily involved and finally hopelessly bankrupt. After various unsuccessful attempts to continue the business by receivers and assignees, the works were finally sold to Mr. Allis, who purchased the property as a speculative investment. The "Bay State" works stood idle for several years, and were then leased to the Chicago, Milwaukee & St. Paul Railway Company for a time, and were used as the company's repair shops. At the expiration of the lease the works were refitted throughout and have since been operated in connection with the main works and under the same management.
In 1872 a department for the manufacture of cast-iron water pipe was added to the Reliance works, but it did not prove peculiarly successful and after a few years was abandoned, as it was found that the foundry could be made more profitable in other lines of work. The business, in common with all others, suffered during the dull times from 1873 to 1879, but in spite of many serious obstacles and in the face of great discouragement, work was continued without interruption. Since 1880 the growth of business and with it the growth of the works as a whole, has been phenomenal, and at the present writing this growth shows no signs of weakening. The question is no longer as to the maintaining of present proportions, but as to where the development will stop, or rather, whether it ever will stop. At present there is no indication of stop, and it apparently is only a matter of a few years when the famous works of Krupp and Armstrong will find a rival in size, though in a more pacific field, in the Reliance works of Edward P. Allis & Company
Unlike many large manufacturing establishments, the Reliance works are not confined to the making of one specialty. Several distinct lines of manufacture are followed, in addition to which the works enjoy probably the largest jobbing and repair trade in the west. The firm of Edward P. Allis & Company stands preeminent in the manufacture of steam engines, flour mill machinery and saw-mill machinery, and is rapidly building up an enviable reputation in mining machinery, heavy pumping engines and other lines. The various departments are under the charge of men who stand at the head of their trade, the whole being under harmonious management, and over the whole Mr. Altis still keeps as careful and vigilant supervision as when, in 1861, he first put his shoulder to the wheel and lifted the old Reliance works out of the slough of financial despondency. As fitting preface to a description of the works and on account of their historical connection with the subject matter, it may not be out of place to relate briefly the development of some of the special lines of manufacture for which the Reliance works are famous. Flouring mill work, which has of late years become one of the most important portions of the annual out put of the works, was in the early days, when Mr. Allis first took possession, small in amount, simple in character and was done entirely after plans furnished by local millwrights, each of whom was regarded by his immediate constituency as an oracle on mechanical subjects, and no two of whom agreed. This was while the art of milling was at a standstill and before milling inventors and milling engineers appeared. Each millwright had his own whims and fancies, which he carried out in his work, and as a consequence no two mills were alike. One feature they had in common, and that was that the iron work, waterwheels and mill-stones generally came from the Reliance works, and although flood, fire and the demon of change have destroyed most of the early work done, it is still possible to find in many mills in the state and the northwest, machinery which come from "Allises" twenty-five years ago and which has been steadily at work all this time, a fact which speaks highly for the character of the work turned out by the Reliance works at a time when good work was the exception to an almost general rule. The mill furnishing work at that time was unsatisfactory to -Mr. Allis, because it was so largely a matter of caprice on the part of the millwrights, and so wholly devoid of system or scientific knowledge. He was, therefore, constantly on the lookout for some specialty upon which he could build up reputation and business for the works. He had early secured the agency for the northwest for the Leffel water-wheel, which was rapidly displacing the overshot and primitive turbine wheels made by the Reliance works during their first few years' existence. This agency was one of Mr. Allis' fortunate hits and had much to do with placing the works on a permanent foundation. An immense number of the Leffel wheels were sold, over six hundred in one year. The manufacture of mill stones was also increased from an occasional "run" at first, to over three hundred runs per year. At length, about 1872, the art of milling began to undergo that radical change in processes which in the short space of ten years amounted to two complete revolutions, and Mr. Allis, ever on the alert, determined that the Reliance works should lead rather than follow the changes which he foresaw must come. He accordingly engaged Mr. W. D. Gray, now one of the most widely known milling engineers, as chief of the mill furnishing department, and sent him to Europe to learn all that could be learned of European practice which would benefit American millers The result of his visit was the introduction and adoption of the gradual reduction system of roller -milling in this country, the first complete roller mill in this country, called the Washburn Experimental mill, having been built under Mr. Gray's direction. Since its completion, the revolution in milling methods has been complete, and the work of the engineers and mechanics of the Reliance works is found in all the largest and best mills in America. Special machines have been invented from time to time as necessity demanded, and the establishment now turns out nearly everything in the line of machinery needed to equip the largest and most complete .mills, including roller mills, centrifugal reels, purifiers and other machines too numerous to mention. Instead of following the plans of local millwrights, the work is now done from plans made at the works by competent engineers and draughtsmen, and everything is systematically designed and the work put as nearly as may be upon an exact scientific basis. As the result, the firm of Edward P. Allis & Company stands beyond question at the head of the mill furnishing industry of this country, and the trade, both in the building of complete mills and in the furnishing of special machinery and supplies, is steadily increasing.
Another special department of the establishment has been equally successful. As the western country became gradually settled and cleared up, the water powers became more and more unreliable, which fact, in connection with the rapid growth of manufacturing industries all over the country, made it imperative that steam power should be much more extensively used. Not only this, but the increasing competition in all lines of manufacturing industry made it equally imperative that economy in the cost of production should be considered as of prime importance, and it was evident that the engine to meet the popular demand must be far superior to those in ordinary use at that time, which were of inferior construction and very wasteful of fuel. Mr. Allis, with his customary foresight, anticipated the demand and spent considerable money and much time in search for an engine of the highest type, which would meet the most exacting requirements of all classes of manufacturing establishments. He finally succeeded, and, in 1877, Mr. Edwin Reynolds, who had for ten or twelve years been connected with the Corliss steam engine works at Providence, Rhode Island, came to Milwaukee and took charge of the Reliance works as general superintendent. Under his charge the manufacture of the Reynolds' Corliss engine was undertaken and has met with the most flattering success, and these engines are now at work not only in the west but in all sections of the country. Nearly one thousand are now in use, of sizes ranging from twenty horse-power up to twenty-five hundred horse-power. The sales have constantly increased, and the record for 1887 will double that of any previous year. Ten years ago it was freely predicted that the manufacture of this type of engines in the west must fail, as the trade would not appreciate them or pay the difference in cost; but as a fact the general trade, following the lead of the Reliance works, has not only taken all the engines the works could build, but has also forced every other engine-builder of any note to imitate the example of Mr. Allis. Ten years ago the man who prophesied that New England manufacturers would come to Milwaukee to buy engines would have been laughed at for his pains; yet among the engines now building at the Reliance works, under Mr. Reynolds' supervision, are two large compound condensing and a two thousand horse-power quadruple expansion engine for New England cotton mills. Among the large work just completed are two twenty-five hundred horsepower engines and one of five hundred horse-power for the Edgar Thompson steel works at Pittsburgh, Pennsylvania, in which works are seven large blowing engines, also built by the Reliance works. Five large blowing engines are now building for Birmingham, Alabama. Among other work in the engine line built by the Reliance works may be mentioned the pumping engines at Milwaukee, St. Paul, Omaha, Allegheny City,Hannibal,Missouri, and Decatur, Illinois. The triple expansion engine recently put in position in the new high service station in Milwaukee, although in operation but a short time, has an unprecedented record for high duty.
As illustrating the general growth of the works, that of one department will be of interest. In the foundry, under the first five years of the present ownership, the daily "heats" or amount of iron melted were from one-half ton to three tons, the latter figure being reached only at rare intervals, so rarely, indeed, that it was the highest ambition of Mr. Allis to make the daily average equal it, and that when the output reached the limit of one thousand tons per year, it would fulfil his most sanguine expectations. In 1884 the output was over ten thousand tons. In December, 1886, over one thousand tons were melted, and it was not uncommon to reach sixty-five to seventy tons per day.
The sixth of January, 1887, the heat was over seventy-five tons. That night the first serious fire in the history of the Reliance works took place and the foundry was completely destroyed. Luckily, the favoring direction of the wind and the brick fire walls at either end of the foundry, together with the strong work of the city fire department, saved the balance of the establishment, and before the embers were cold plans were being made and steps taken to rebuild the burned portion on a • more complete and extensive scale than before. This work is now completed and the foundry melting fifty to sixty tons per day, which capacity will be increased as may be necessary. In addition another foundry has been leased and is melting about fifteen tons per day, while hundreds of tons of heavy work have of necessity been ordered outside. It was also determined at the same time to rebuild and enlarge the erecting shop and separate it from the machine shop by fire walls. This necessitated the removal of the general offices, and as a result the building of a new section of the works. At the same time a large amount of new and heavy machinery was ordered. The summer's work has therefore been a busy one, over a quarter of a million dollars worth of improvements having been added to the works. At the same time the works have been even busier than usual in keeping up with the demands of the ever increasing trade.
The improvements and additions to the Reliance works during 1887 have been so numerous and of such character as to entirely change the external appearance, and at the same time the internal arrangement has been much improved. It is impossible in the limits of a single paper to furnish a description sufficiently extended and comprehensive to give more than a general idea of the extent of the plant and the magnitude of the industry of which it is the visible manifestation. To the stranger visiting Milwaukee it is an interesting place, not only on its own account but because it is an exemplar of the mighty growth of the city and state in whose industrial history it holds such important place. Still its history would be incomplete did it not convey to the reader some idea of its present condition and extent. The external appearance of the works is correctly shown by the accompanying illustration.
Approaching the works from the north by way of Clinton street, the old machine shop, built in 1865, is first reached. Until the past few days, the main entrance to the works has been through one corner of this building. Now the visitor will pass south along Clinton street by the machine shop and blacksmith shop, until he reaches the main entrance to the new office building, which is located between Virginia and Park streets and nearly in the centre of the 1100 feet frontage on Clinton street. This building, built of cream-colored brick, is 225 feet long by 56 feet wide, at either end three stories and in the central portion four stories high. The first floor is used for a shipping-room with store-room at one side for stock work and small supplies. The second floor is filled with the main offices and draughting rooms, the former occupying the space at the south, and the latter at the north of the main entrance. This whole floor is finished in hard wood, oak and birch, including walls and ceiling, and for beauty of appearance, completeness of equipment, convenience and adaptability to the wants of the business, is not excelled in America. The third floor is used as a store-room for bolting-cloth and light supplies. The fourth floor of the central part of the building is to be fitted up as a dining-room for the convenience of the employees.
The main machine shop is 60 feet wide, and extends from Florida street south 350 feet. It is filled to overflowing with costly machinery, and every machine is busy; south of this shop is the blacksmith shop, 60x60 feet, with steam hammers, forges, etc. Between the blacksmith shop and the office building is a store-room for bar iron, 60 x 60 feet. The second floor of the main machine shop, for 140 feet from the corner of Florida street, is used as a pattern shop. Adjoining the main shop on the east, and fronting on Florida street, is the erecting shop. This shop consists of a central portion 60 feet wide and 140 feet long, and 50 feet from the floor to the under side of the roof chords. This portion is traversed by a traveling crane, which has a longitudinal travel of 120 feet, a transverse travel of 58 feet, and a clear lift under the hook of 39 feet, and is capable of lifting and carrying a load of thirty tons. Between this part and the machine shop is a floor 90 x 140 feet, twenty-one feet in the clear. On the Florida street side for a width of 70 feet, there is a second floor 70x90 feet, used for a tool room, where a force of expert mechanics are constantly employed in keeping the various machines and tools in repair, and in building new and special tools for the works. The entire first floor of the erecting shops is 140 x 206 feet.In the angle formed by the machine and erecting shops are located the engines and boilers for the main shops. The former is a 125 horse power Reynolds' Corliss engine. South of the erecting shop, on the Barclay street side is the new foundry, occuping the same ground as the one that burned last January. It is 128 feet wide, 375 feet long and in the centre has a clear span of 60 feet, 35 feet from the floor to under side of chords. This space of 60x375 feet is covered by two traveling cranes, each capable of lifting twenty tons, and which can be used together or separately as desired. The cupolas, core ovens, cleaning room and moulding floors for the lighter work are on either side of this central space, and are fitted up in the most complete manner possible. To the east of the main foundry building, and separate from it, is a three-story brick building 40 x 120 feet, containing the engine—a 150 horse power upright Reynolds' Corliss—boilers, core boxes, coke piles, etc., and to the south of this building are the sheds for sand, etc. South of the foundry and separated from the office building by a court 60 feet wide, is the building for storing patterns. It is a threestory brick building 110x122 feet, with brick fire wall through the centre, and fitted throughout to be as safe from damage by fire as possible. It was built in 1885, and is filled to overflowing with pat. terns, which have cost hundreds of thousands of dollars and which could not be replaced, if destroyed,by years of steady work.The block between Park and Piercestreets is nearly covered by frame buildings. The new machine shop, built in 1883, is 60 x 230 feet, two stories high, and is equipped for doing saw mill work, heater work and stock work on engines. Here are built the Hinkley band saw mills, saw mill carriages, edgers, trimmers, circular saw mills, etc. The band saw mill, designed by Mr. G. M. Hinkley, a thoroughly practical saw mill man, marks as important a change in the manufacture of lumber as did the roller mill in the manufacture of flour, or the Reynolds' Corliss engine in western steam using practice. By its use fifteen per cent. is saved over former methods, and the lumber is better sawed and freer from defects than either circular or gang sawed lumber. The Hinkley band mill was first put on the market in 1885, twenty-five having been sold that year and over fifty in 1886, while the trade for the present year will be even greater. To the south of this building are brick engine and boiler rooms, the engine being one hundred and fifty horse power. On the south of engine house is the carpenter shop, 60 x 300 feet, three stories high. The first section of this building, 208 feet long and two stories high, was put up in 1882. It was extended and a third story added in 1886, and at the same time a three-story addition, 32 x 112 feet, fronting on Barclay street, was built and is used for storage of machinery, etc., before shipment. The tracks of the Chicago, Milwaukee & St. Paul railway extend along the Barclay street side of the works, and by means of suitable side tracks and tracks through the yard, reach every portion of the works and give ample shipping facilities.The Bay State works, heretofore mentioned, consist of a brick building, 50 x 260 feet, three stories high. This is the original shop. Adjoining it on Barclay street is a one-story frame addition, 50 x 250 feet. This plant is used exclusively for manufacturing Gray's patent roller mills, of which nearly twenty thousand machines have been built and shipped, going to all parts of this country, as well as to England, Australia, New Zealand and South America. The Bay State works, devoted as they are to the manufacture of one special machine, fairly illustrate the magnitude of the milling industry of this country. The accompanying illustration clearly shows the external appearance of these works.The giant growth of the Reliance works from 1861 to 1887, including both years, can be partly shown by a comparison of the pay rolls and sales-books then and now. In 1861 the average force employed was about twenty men, the amount paid in wages was $14,000, while the sales for that year were only $29,000. In 1862 the sales only reached to $33,500, while the wages account was swelled to $20,000. The exceedingly large ratio of wages paid to amount received for the work is characteristic of the work done at that time, consisting as it did largely of repair work and small jobs, in which the labor was the most important item of cost. When the pipe shop was in operation this condition of affairs was reversed, and we find in 1874 that the wages paid was barely one-tenth of the sales; since that time the ratio of wages to sales has been steadily increasing. In 1884, with a force of something over one thousand men, the wages account amounted to over six hundred thousand dollars, the year's sales amounting to over two millions of dollars. For 1887, with an average force of about twelve hundred men, the amount paid in wages and the amount of sales will be somewhat greater than in 1884. A much larger amount of work will be turned out, but prices are lower and the introduction of improved methods of manufacture has avoided the employment of any great amount of new help or the cutting down of wages, the average of the latter being, if anything, higher now than in 1884.
When it is taken into consideration that a working force of twelve hundred men represents a population of at least five thousand, enough to make quite a pretentious city, and that of the $600,000 paid in wages nearly the whole amount is spent at home, the importance of a vast industrial establishment like the Reliance works as a factor in the industrial and commercial prosperity of the community of which it forms a part is apparent, and the good accomplished by one active, energetic, indefatigable and hard working man in the course of his business lifetime begins to be appreciated. It is also worthy to be noted that in all these years there has always been the most perfect harmony between employer and employees, strikes being unknown. Some of the men have, with their employer, grown gray in the service. There is no doubt that much of the remarkable success of the works is due to the care taken by the proprietor at all times to make the men feel that he is not only interested in their welfare, but that they, as well as himself, are directly interested in the welfare of the works.
To the history of the Reliance works there is little to add to make it a full record of the life of the owner, for since he became the owner he has been inseparable from the business and has in all things given it his first and most careful thought.
Edward P. Allis, the son of Jere and Mary Allis, was born at Cazenovia, New York, May 12, 1824. He graduated from Union college, Schenectady, in 1845, his education having been with a view to the practice of law. However, his tastes favored an active business life, and in 1846 he located at Milwaukee, where in connection with William Allen he opened a leather store at what is now 344 East Water street. The firm of Allis & Allen continued till 1854, during which time it built a large tannery at Two Rivers, Wisconsin. In 1854 Mr. Allis sold out his interest in the firm and in connection with John P. McGregor engaged in the real estate and brokerage business. In 1861 he came into possession of the Reliance works, as already stated, and from that time forward his business history is written in the history of the works.
In personal appearance Mr. Allis is of average height, rather slight, but very compactly and strongly built, and is capable of great physical endurance. He is quick in his motions, a rapid walker and his every action impresses one with the fact that he is firm of purpose and tireless in the pursuit of his business interests. He is quick to decide, relies upon his own judgment, has executive abilities of a high order, attends strictly to his business and expects everyone in his employ to do the same. He is quiet in manner, simple in his tastes and inclined to be reticent. He is a fine scholar, a great reader, and has always kept fully posted in all scientific, mechanical and political matters. In political faith Mr. Allis is a Republican and in full sympathy with that party, except upon the currency question. In this he believes in the greenback policy, as formulated by Henry C. Carey, and in 1887 headed the ticket of the Greenback party of Wisconsin as their candidate for governor. In his domestic relations Mr. Allis has been as fortunate as in his business life. In 1848 he married Margaret M. Watson of Geneva, New York. Mrs. Allis is a woman of much force of character, of superior attainments and great energy, and has been a help-mate in every sense of the word. They have a large family, and it would be hard to find a happier household.