The Challenge of New Markets and Techniques
Ironmakers in the Middle Atlantic states used canals and railways to reduce costs and expand the scale of production with new techniques based on mineral-coal fuel beginning in the 1820s. Salisbury forge and furnace proprietors, who still had teamsters hauling ore, fuel, and metal along dirt roads with wagons in summer and sleds in winter, knew that improved transportation systems would help them get their products to outside buyers. They were less aware that canals and railroads would eventually force them to confront new techniques adopted by ironmakers outside their district. Entrepreneurs in northwestern Connecticut had become interested in waterways as early as 1760, when they wanted to improve the Housatonic’s channel north to Massachusetts in order to float logs downriver to their sawmills. Although the General Assembly authorized a lottery to raise £300 for the project in 1761, the promoters accomplished nothing. The start of construction on the Erie Canal stimulated interest in building a canal along the Housatonic River that would open new markets for the northwest’s ironmakers. Urged on by John M. Holley and others, the Ousatonic Canal proprietors organized a company in 1822 to build from tidewater to Stockbridge, Massachusetts. However, when canal engineer Benjamin Wright’s survey showed the company would have to build enough locks to raise boats a total of 604 feet as they traversed the canal, the project’s supporters backed out. The promoters of the Sharon Canal project, intended to start in Sharon and go down the Oblong River into New York and thence follow the route later used by the Harlem Railroad, accomplished even less. John M. Holley had experienced railroad travel on his 1831 trip to Harpers Ferry. He and his neighbors realized that a railway up the Housatonic valley would gather traffic from the region’s ironworks and, with a connection to the Western Railroad in Massachusetts, open the first year-round route from New York City to Albany. (The railroad along the Hudson River between New York and Albany did not open until 1851.) Several of the region’s ironmasters, including J. M. Holley’s son A. H. Holley, helped raise funds for the construction of the Housatonic Railroad when the state issued a charter in 1836.