The Dalles Chronicle, The Dalles, OR., June 2, 1959, page E2
Includes an illustration map of North Dalles
SHOE FACTORY: A STORY OF BOOM AND BUST
One of the shrewdest of the fortunate-seekers who flocked
into the West before the turn of the century, lured by a raw land and the
hope for quick profits, was a minister turned entrepreneur who came to The
Dalles in 1880.
Wasco County in Oregon and Klickitat county in Washington
knew the Rev. O.D. Taylor not as a man of God but as the "Father of Grand
Dalles," the promoter of what has been called one of the greatest land swindles
in the mid-Columbia region since the Indian treaties.
Taylor's ambition was to build a city where Dallesport
now stands, to sell "lots" to investors at premium prices, to create industry
and commerce and presumably to retire as overseer and patron saints of the
growing community.
And he prayed on the restlessness and the loose, long-boned
spirit of the times by proclaiming his vision and pamphlets and brochures
crafted to attract the capital of rich and modest investors alike.
The city was never built. The hulk of an enormous boot
and shoe factory, erected by Taylor and abandoned after several weeks of
production, stood for many years. Taylor did, however, acquired the savings
of investors lured by his advertisings of the visionary city. And he went
scott-free when a case brought against him was thrown out of court.
Taylor came to The Dalles as a representative of the
Baptist Missionary Society. He was pastor for a time of the small Baptist
church and a leader in church missionary work.
Bought 2,000 Acres
But while he preached in The Dalles, Taylor was buying
land across the river. He borrowed lavishly from local banks to finance his
acquisitions until by 1890 he held some 2,000 acres of land on the north
bank of the Columbia.
Taylor's plan was simple. Here, on the dry, open country
broken by an occasional outcropping of basaltic-rock and rising in rolling
hills to the steep gorges of the Cascade foothills to the west, he proposed
to develop "a great city," a "hive of industry," a metropolis to rival Seattle
and Spokane. He called it North Dalles, then Grand Dalles.
In 1890 Taylor incorporated the Interstate Investment
Co. in Portland, with a capital stock of $150,000, under his personal direction
as a general manager. The company was authorized to buy land from Taylor
and his wife and sell it to any and all as lots in the future city, North
Dalles.
Interstate Investment circulars began to appear in Oregon
and middlewestern cities, announcing that "North Dalles is the natural outlet
of a country RICH in RAW MATERIALS which has only waited the MAGNETIC TOUCH
OF CAPITAL."
"9,500 Square Miles of Valuable Farming Land must pay
tribute to - North Dalles, North Dalles, North Dalles," the brochures trumpeted.
"DON'T BE A CLAM!" One leaflet warned: "Buy a lot in this property now."
And people, for the most part small investors from the
Middle West, read and bought. Preachers, school teachers, a would-be newspaper
publisher, whose descendants still live in the area, and others who wanted
a small safe investment bought up lots in the "city."
Map Published
Taylor drafted and published a map of North Dalles, showing
imaginary railroads converging on the city and strangely, locating the city
within a stone's throw of the mouth of the Klickitat river, whereas the river
actually spills into the Columbia nine miles downstream from the site of
the North Dalles.
"We deal only in facts," one of Interstate pamphlets
explained.
Appearing on the map were parks where only dwarf oaks
were growing, arterials and boulevards where there was nothing but dry stubble
and sand dunes.
To Taylor's credit as a salesman, he gathered some $9,000
from people of Wasco and Klickitat counties, even though the contrast between
his inaccuracies and assumptions and the barren land which was graced only
with several stunted oaks was apparent to any causal observer.
Taylor quickly gathered the reins of his growing corporation
into his own hands. As president and general manager of Interstate he paid
his wife and himself handsomely for the land the corporation sold as lots.
In 1891 he revamped Interstate Investment, renamed it
Interstate Improvement Co. and put up for sale of half a million dollars
more stock. He abandoned the name "North Dalles" as too modest a descriptive
title to contain his vision, and "Grand Dalles," began to appear on company
literature.
Was Chief Salesman
Taylor opened offices in Mid-western cities, installed
himself as chief salesman and collected 25 percent on every lot he sold.
Besides his commission on sales, he appropriated $300,000 worth of stock
to himself and his wife as "trustees" of the corporation.
And in 1881 Taylor announced to the world that "A MAMMOTH
BOOT AND SHOE FACTORY will be an operation
employing OVER 500 WORKMEN."
Interstate collected a $10,000 "bonus" from people in
Wasco and Klickitat counties, and a huge frame building began to rise on
a promontory overlooking the Columbia.
Mechanical lathes an awls were ordered and installed,
some 50 expert shoemakers were imported from the east, and the factory began
to turn out shoes and boots.
But several weeks later work stopped when employees learned
they could expect no money for their time. The Portland contractors who built
the factory clamored for payment, and a factory supply company demanded money
for the equipment installed in the building. Neither received any money from
Interstate.
The failure of the great shoe factory foreshadowed the
fate of the Grand Dalles.
In 1892 two men arrived from Michigan to survey and develop
"lots" each had bought within "city limits" at Grand Dalles. Apparently neither
liked what he saw. The two, Dr. Daniel Cornell and J.P. Rorick, obtained
an indictment of Taylor on 60 counts.
Ordered Released
In 1895 Taylor was arrested, and soon afterward released
on a cash bond furnished by attorneys he hired. Trial action dragged on until
the Supreme Court in 1902 ordered Taylor released on a legal technicality.
What remained after Taylor's gamble was little enough:
A visitor to the site of Grand Dalles reported in 1904 "A drearier, more
desolate looking array of shacks and rock piles and drifting sand banks,
cannot be found in the Northwest
Not over a score of people living
in the immediate vicinity of the Grand Dalles."
The only lasting change wrought by Taylor's venture is
the small group of men and women who are descendants of the investors and
who still live in and around The Dalles.
Grand Dalles, "Destined to rival its sister cities of
Spokane, Tacoma and Seattle," somewhere got lost in the shuffle.
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© Jeffrey L. Elmer