CHAPTER 2, PORTLAND & BANKING

PHOTO,PORTLAND, C. 1879

L.L. arrived in Portland, at age thirty-one, in the early summer of 1879. His new business card of that year listed him as "Agent for J.C. Ainsworth, R.R. Thompson, E.B. Babbit, Offices (at) 31 1/2 Front Street." These were the offices of the Oregon Steam Navigation Co., between Pine and Ash Streets, with the docks of the company on the river bank behind the building. George J. Ainsworth had preceeded L.L. to Portland, and had been made by 1877 chief executive officer (or superintendent) of the company. He was to introduce L.L. to progressive ideas which he was promoting, some frowned upon by his father, such as a newly arrived invention in the city. He had, quite bravely, bought in 1878 "the local rights of the telephone and sought to establish it in Portland." This was done in spite of the prevalent attitude of the time, that this "will never be anything but a curiosity and an interesting mechanical toy." (1918 article , Oregonian). "Skeptics were plentiful, and Captain Ainsworth and his telephone were not taken seriously." However, with some improvements, by August 2, 1878 the first telephone exchange was working. "The telephone made an instant and decided hit." Soon, "one- hundred had been installed in Portland and the number steadily increased." A bronze placque now marks the spot, where the first transmissions took place in the Western Union office of the New Market Block, North Wing, on First Avenue, just west of the Skidmore Fountain. Another investment of Capt. George in the following year, and of great interest to L.L., was his purchase of the newly constructed Klosterman Building, which he renamed the "Zeta Psi Block," in honor of the college literary society of which he and L.L. were early members.

It was the sale of the O.S.N.C. to Henry Villard in 1879 that was to change greatly the lives of Captain George and L.L. Hawkins. Sold for the then enormous sum of $5,000,000, it was to be reorganized, combining Villard's railroad interests with those of the steam navigation company. The combined companies were named "The Oregon Railway and Navigation Company." Villard soon recognized Captain George's abilities and "placed him in full charge of all the steamboats on the Columbia and Willamette rivers and on Puget Sound belonging to that company." The sale of the campany, plus the profits it had brought, made its owners enormously wealthy (Captain J.C. Ainsworth, R.R. Thompson, W.S. Ladd, C.E. Tilton, Jacob Kamm, S.G. Reed and Benjamin Stark). Both Ainsworth and Thompson wished to retire to other interests in California, and it was L.L. whom they asked to manage their assets, as well of those of E.B. Babbit. The office L.L. established for that purpose, moved out of the old O.S.N.C. Building into one owned by E.B. Babbit, located at "No 70 Oak Street"), at the S.E. corner of Oak and Fourth. Likewise, the newly formed O.R.N.C., as well as the Northern Pacific Railroad offices, conveniently, moved into the "Zeta Psi" Block, owned by Capt. George, on the S.W. corner of Front and "D" (later Davis). From this location were conducted businesses which embraced a territory extending from San Francisco to Alaska, and from Portland to the Thompson River, Montana. PHOTO ZETA PSI BUILDING. The Ainsworth investments, now handled by L.L. and Captain George, allowed his father, Captain J.C. Ainsworth,to retire to "Roselawn," the centerpiece of a luxurious estate outside of Oakland, California. SEE PHOTO OF BABBIT BUILDING.

Both J.C. Ainsworth and R.R. Thompson had extensive interests in the Northwest. As stated in the L.L. biography, "These interests were varied, including three vessels plying between Portland and the Orient, sheep ranches, ferries, etc. at the Dalles; a large amount of real estate at Portland, Tacoma, and other points. It was then that the career which gives him (L.L.) a place in this work began and for which all that preceded it had so well equipped him. The possibilities of any given situation, combination of circumstances or location, were grasped by him with the same quick perception that scented out obscure mountain trails. Among the achievements of those days were the clearing of the rapids on the Snake River; changing the Portage road between Celilo and The Dalles from narrow to broad gauge." The railroad at the falls, the first in the Northwest, had been built by the O.S.N.C in 1863 as a portage connection from the river below and above the rapids. It was for a six mile stretch that the gauge was to be changed. It took "five hours and twenty minutes, with no interruption of traffic, so accurately was the work planned and so carefully detachments of workmen placed at just the points and at just the right moment to give the results desired--no stoppage of trains and the quickest possible completion of the work." (Bio., Portland, Its History and Builders) Those who knew of this feat were impressed, leading to the often mentioned quality of L.L., that he seemed to be the master of any difficult problem.

For the clearing of the rapids on the Snake River, L.L. telegrammed his younger brother, Will, to come to Portland, as there were multiple business opportunities for an energetic young man of twenty one. Will had, by this time, graduated from Heald's International Business College in San Francisco, Ca. (1877). He was to arrive in the city with $75 to his name, but with a fortune in energy. His first work was "as keeper for graders on the O.W.R.& N. (Oregon, Washington Railway and Navigation Co.?) railway from Troutdale to the Cascade Locks."

Despite these occupations, which kept them constantly on the go, the two brothers entered a new world in Portland, far removed from their ranching days. Undoubtedly, their association with L.L.'s good friend, George Ainsworth, as well as the social status of the Ainsworth family, stood them in good stead. Both were decidedly genial social company, and could adapt quickly, it seems, to the changing occasion. Photographs of that time show them impeccably dressed for their new roles. One social event to which they were invited, "The Brown Reception," was chronicled in some detail by a Portland newspaper. As noted, "The dinner and reception given by Mr. and Mrs. Ira Brown in compliment to Captain Cyrus Noyes, Miss Parepa and Signor Liberati was one of the most pleasant society events of the past week. A more joyous party has rarely been assembled in Portland. After the refreshments had been served, later in the evening, the charming vocalist Miss Parepa, favored those present with some choice vocal selections, including 'The Last Rose of Summer,' and 'Way Down Upon the Suwanee River,' which were received with many demonstrations of Delight." It went on to describe a rendition of the "Spanish Fandango" on the banjo, by Miss Nellie Noyes, where "she exceeded herself." The hosts were also musically talented, both vocally and instrumentally, adding much vitality to the evening. "The reception was delightful in all respects. The genuine hospitality which goes so far toward making such an occasion enjoyable was conspicuous, and it is not often that such an event here has been marked by so much taste." Noted on the guest list were L.L. Hawkins and William Hawkins.

Another event in the same newspaper listed L.L. as a guest in the home of Mr. Eugene D. White, on the occasion of the latter's 39th birthday. There was a program for the evening in which "Professor E. J. Finck, Mr. L.L. Hawkins, Mr. R.R. Giltner and Dr. J.W. Hill" participated. After dinner, "guests adjourned to the dining room, where they were received by the hostesses, Mesdames White and Crowell, and sat down to an elegant banquet. The long table in the spacious dining room was aglow with its solid bank of LaFrance roses and sparkling cut-glass furnishings. Nearly three hours were delightfully spent in discussing the menu, and numerous toasts were given and responses made." Judging from the presence of several unmarried young ladies, it might suggest that they had found the newly arrived L.L. an attractive and eligible addition to their gatherings.

PHOTO -L.L. AND WILL, CIRCA 1880-1

It would seem that L.L., with the assistance of his younger brother, was indeed capable of organizing complicated transactions of any kind. Captain J.C. Ainsworth became very aware of these talents, as did his son, Captain George. Some of the company's more pressing needs in these early years took Will more and more to the "Inland Empire," and the areas of the Snake River, near lakes Coeur D' Alene and Pend d'Oreille, where the Northern Pacific Rail Road (N.P.R.R.) was extending its lines. This territory was huge, wild and largely unpopulated country, having passed through various territorial periods (Oregon, Utah, Washington, and Nebraska Territories, and Idaho became a state in 1889) With L.L. organizing the operation, laborers, and many of them, were secured to cut the railroad lines along the rivers and through the mountains. The O.S.N.C had made the river passage from Portland up into the Snake River possible, in part instigated by the enormous activity generated by the discovery of Gold in1860-61. It was, at first, the need to clear additional rapids up the Snake, so that the steam wheelers could get further upriver to the railroad construction, that brought L.L. and Will to the river to blast a passage. L.L. was, in addition to his other responsibilities, the Portland agent for California Vigorit Powder Co., and he knew how to handle it. After clearing the rapids, a new business was established to deal with the laborers, who were to be mostly Chinese. The new company was named,"W.J. Hawkins & Co., Contractors for Chinese Labor, And Dealers in Chinese Merchandise and Supplies." Sharing 1/4 interests with Will, were his brother, L.L. Hawkins, Captain J.C. Ainsworth, and George Ainsworth. In a letter to his brother, L.L. stated, "Captain George & Friend have chartered the Walla Walla to go to China and bring back 1000 Chinamen. The chartering will be done in the name of W.J. Hawkins & Co. You need not bother your head about it. We will look after the details. All I ask of you is to study the chine (Chinese) question carefully, so as to be able to handle them when the 1000 come. I am quite sure this business will develop into something worthy of careful consideration."(L.L. to W.J.H., Jan. 8,"82 letter) The Chinese arrived, via the Port of Seattle, with many others via Portland, where they were transported up the Columbia and Snake on O.S.N.C. boats. Will was in charge of these men, seeing that they were organized for the work, fed and clothed, paid on time, and treated humanely. In William J.'s notes written years later, he was to opine, "When contracted for (the) ship, L.L. was afraid." It was to be an incredible responsibility for his younger brother.

Will, by now age 23, accepted the challenge and was amazingly successful in his efforts. In all this he was being solidly supported in Portland by his brother, L.L. and Captain George Ainsworth. They extended the full-force of the company behind Will and did all that could be done to see that the railroad's time schedule and demands were met. On one occasion, according to his biography,"The railroad was unable to pay Mr. Hawkins for two months, after the time stipulated for payment. He had promised to pay his laborers on a certain date so he secured the necessary funds from various banks on his personal note. The railroad agreed to deliver supplies at reduced rates but failed to meet its agreement. In the emergency Mr. Hawkins brought in teams to carry supplies until such time as the railroad should keep its contract." The Chinese, aware of his plight, and of the fact that he paid them out of his own pocket when the railroad was unable to do so, were to find trust in this young man. He kept accurate accounts, paid them promptly, and, when asked by some to hold their earnings for safe keeping, he made the small office function as a bank. The Chinese were not to forget the man who looked after them, for, many decades later, in Portland, they were to continue doing business with him. From these beginnings, and in dealing with these men, the banking business for him and his partners was to emerge.

Will could stand on his own. Though quieter than his older brother, he shared the same resolve. He carefully thought out all his challenges. Trust and respect, no doubt, in this community of rugged individuals, and sometimes lawless excess, were gained in part by physical prowess in rough situations. Will had what was essential to survive in such rugged conditions, where skill with firearms and self protection were required at every step. The ranch years taught him how to survive, as it had for his older brother L.L., to master a horse, to protect himself-- to be a match to the sheer wildness of the place. As reported in a Helena newpaper, "Evan Morgan representing the Butte backers of Jim Bates, arrived in Helena yesterday, to make a match with Billy Hawkins for a kid glove fight to a finish." "The fight is for $500 a side and a guarantee of $500, and will be governed by Richard K. Fox's revised Queensberry rules. A forfeit of $250 was posted last night, and the balance will be put up the day preceding the fight. Both men will go into training at once for the event." It is not known who won! However, in the camps, someone who could fight when called upon, had a certain ring of protection around him.

(SEE PHOTO OF MINING CAMP)

Will's success led to further work for the Northern Pacific Railway. "Mr. Hawkins knowing of the extensive improvements of that road bought out a Chinese contractor who had contracted to furnish three hundred laborers. Seeing the possibility of handling more men he had the contract extended to five thousand for construction work on the Northern Pacific Railroad. He established a camp between Ainsworth on the Snake River and Lake Pend d"Oreille and secured financial aid from his brother, Colonel L.L. Hawkins, Captain J.C. Ainsworth and Captain George Ainsworth, each taking one fourth interest of the business.

In 1881, with the work on the railroad in full swing, the demands required more and better men to handle the requirements of the company. Their small company had been able to add force to their efforts by having the O.S.N.C. name behind it. When Captain George, back in Portland, wished to separate the Ainsworths' financial interests from those of the Oregon Steam and Navigation Company, he asked Will not to collect bills through the company, as a way to separate those interests. Collecting bills was tough, and it was not made easier by removing the O.S.N.C. name from billings. Captain George was to say in a December 1881 letter to Will."I cant (sic) tell you how sorry I am that you have had so many things happen to annoy and retard you in your business and particularly so that I should have added to your troubles by giving instructions not to collect bills through the company. This was done at the instance of the auditor of the company and upon my supposition that you had good and sufficient help ..." (Geo.Ain to Will, Dec. 30, '81) Some of the men sent to "The Front" had not performed well. Captain George then insisted that Will collect his bills as he had, and, secondly, he said, "I will give my undivided attention to sending you a first class man at the earliest possible moment." Thirdly, he offered to send an escort to handle the gold coin in transporting it back to Portland, and have Will hire six to twelve guards to protect the gold kept by Hawkins & Company. The most important man sent was J.H. (Jack) Marshall, who proved highly capable, and trustworthy.

An "accident" occurred at the bank in late 1882. According to a San Francisco newpaper article, the "store owned by W.J. Hawkins, & Co. was robbed of $600." During the robbery Will was wounded in the leg. Years later, his children would ask their father to show their young friends the scar remaining from the wound and the pistol, whose wooden handle had notches in it (men killed!). In a letter from Sarah Kinsey to L.L. in Feb. of 1883, family concern for Will in the Pend d'Orielle was heightened by another San Francisco newpaper article which they enclosed. It stated, "The lawlessness at the front is said to be unparalleled. Murder and robbery are common occurances. Recently a blast was set off in the river at Clark's fork, and eleven bodies came to the surface. Some of them had their heads crushed in and others their throats cut." Cabinet Landing was on the Clark's Fork River, which fed into Lake Pend d'Oreille. Will's bank and store was located at Cabinet Landing. But, he was holding his own.

SEE PHOTO, CABINET LANDING, CLARK'S FORK RIVER

Captain J.C. Ainsworth was very supportive of Will's fledging bank and its prosperity. With the same partnership as W.J. Hawkins & Co., he asked Will what his plans were for the future, and, as a result his indication of banking, the two Captains (J.C. and George J.) offered to be investors in the bank. By 1882, W.J. Hawkins & Co. was to evolve into Ainsworth, Hawkins & Co., Bankers, Eagle City, Idaho. Will became President, and J.H. Marshall, who had been found essential, continued as Cashier. Will was to recall, many years later, "It was through Leander that Capt. George J. Ainsworth gave me the means to start this business and I built it up myself." To establish a more substantial bank, $40,000 was carried by toboggan over "Old Baldy," the highest point of the Bitterroot Range, through fifteen feet of snow. To construct a building, Will paid $8.00 per log in its construction, plus $250 for 1000 whip-sawed lumber, considered "robbery" at the time. However, the bank could expect a $20 fee for exchanging a $100 bill. It also handled over 14,000 ounces of gold dust, with a commission of $1.50 per ounce. And, considering that 10,000 people came into the country that winter, there was indeed extensive banking activity. At another point, when the work force moved to Cabinet Landing on the Clark's Fork River, to the east of Lake Pend d'Oreille, there were 5000 men, who were, in effect, living in a moving city as the railroad extended the lines East. "All were men except twenty five, and all bent on making money"(Independent, Aug. 9, 1882). "In early June Cabinet Landing was referred to as the 'Front.' Hundreds of tents were strung all along the river for the workers. The temporary town had 33 saloons, one belongs to an Al White, reported to be formerly of Delmonico's of New York, which included a bar, restaurant, and a theater. It was called White's Hippodrome. Nighly four men and four women put on a free show. There were six other restaurants, a fearful hotel, a worn lodging house and others stores, plus the usual Wells Fargo. A big store for the Chinese was run by Hawkins and Co. Duboise and King ran the large wooden commissary for the NP and purchased much of their produce from the Walla Walla area which was the closest region for such items. The NP maintained several shops for their well-cared for horses" (Renz 1973:83-84). At this time Will's enterprises were comprised of eight stores, four bookkeepers, and forty clerks and supplied well over 5,000 men to the railroad construction sites. By December 10, 1882, Will was to write Agnes Parson, with whom he had continued his friendship since their childhood days, "All we see is a mass of men continually moving on to the front and the entire force is moved in times, numbering in all some eight thousand men of all nationalities. At present everthing looks very gloomy as the snow is quite deep and trains are blockaded so it is hard to get provisions. Another bad feature is the`(that) small pox is breaking out in the camps and every one seems down hearted. Yet they have to face the music. I am getting so used to being out in all kinds of weather so much and ovecoming difficulties that arise that nothing seems to faze me now, for my motto has always been, 'Where there is a will, there is a way.'"

SEE CABINET LANDING PHOTOGRAPH

In Portland, Capt. George resided in the old Ainsworth family home on a full city block between Third and Fourth, Oak and Pine. The mansion, originally constructed in 1862 by his father, was made grander with Second Empire Style roofs and additions. With him were his wife, Margaret, and his two children, Lawrence and Mable. Despite his full career in Portland, a major change in his career was to take place. "At his father's earnest request, he resigned his position in 1882 (from the ORNC) to take charge of his father's business" in California. This left most responsibility for the Ainsworth's Northwest interests in the able hands of L.L. Hawkins, who took full charge. Captain Ainsworth would remain in close touch with the family's affairs in Portland, but he would now be primarily involved in the California investments of his father which were wide and varied. The old Ainsworth mansion was then "leased (to the Arlington club) by Captain Ainsworth's partner and bank manager, L.L. Hawkins." In the Arlington Club history, L.L. was "a regular member who signed the constitution and By-Laws in 1882-1894." Later, "In the year of the panic (1884), he "offered the bank's safe for the club's valuables and papers." (ARLINGTON CLUB, AND THE MEN WHO BUILT IT, CENTENNIAL ANNIVERSARY )

SEE ETCHING OF CLUB IN HOUSE

Among the many papers to survive over the years, were the wonderfull letters exchanged by Will and Agnes Parson. Their correspondence began, tentatively, when they were very young, after they had left the school in Genoa run by Sara Kinsey, Will's step-sister. By the early 1880s their childhood friendship had considerably matured. Tentatively, and with great care, their letters to each other no longer began with "Dear Brother," or "Dear Sister," but with the fondest of personal terms. They were to be, between themselves, committed, if not officially engaged. In fact, Will was regularly sending funds for Agnes's living and school expenses. Their engagement, really known only to L.L., was to be of long duration, awaiting some outcome of Will's business efforts in Idaho. The railroad camps were rough and totally unpredicable, no place for Agnes to be. Despite their ardent efforts, correspondence was difficult, at best. Their letters were not deliverered for the longest time, having followed a meandering course from San Jose, via steamboats, stage, and additional steamboats, up the Columbia and Snake Rivers to arrive at last at the "Front." L.L., in Portland, would assist his brother as best he was able.. In L.L.'s letter of July 25, 1883 to Agnes, he wrote, " "Dear Aggie," as she was called, " Your's of the 19th at hand. Brother Will is here off and on like the dutchmans flee. He will be here tomorrow. I cannot say whether he is in Montana, Idaho, Washington Terr., or Oregon. But all letters directed here in my care will reach him soon. How do you do? Keep a stiff upper lip and be happy. I feel like a bivalve under six fathoms of seaweed. With best wishes, Yours Truly, L.L. Hawkins."

On September 8, 1883 the railroad lines were completed across the country, connecting the Oregon Railway and Navigation Company's lines moving East with those of the Northern Pacific crossing the country East to West. The connecting event, where the final "golden spike" was driven, took place at Gold Creek, Montana. Henry Villard, president of both the ORNC and the Northern Pacfic, was responsible for this monumental accomplishment. Will was to write Agnes in Sept. of 1883, "The last spike driving was a grand affair and completely upset all business in this City for about two weeks." Grand it was, with dignitaries from around the country. Generals Grant and Sherman were there, as well as George Pullman, of the Pullman coach building company, the governors of Montana, Idaho, Washington, and Oregon, and prominent citizens of Portland (W.S. Ladd, C.H. Lewis, Henry Failing, Dr. J.A. Chapman, U.S. Senator J.N. Dolph, Judge Deady and others ). Will Hawkins was there, in this grand occasion of spike driving, speeches and general celebration. But soon his efforts, on behalf of the railroads, was to continue elsewhere, and then, generally subside. Many new business opportunities were to keep him fully occupied, continuing the near frantic pace. As Will was to recall later, "After the last spike (was) driven on N.P., (he) took 3000 men to (the) Blue Mountain division, (where he) went in with R.M. Steel and David P. Thompson, Mrs. Teal's father, on (the) Oregon Construction Co. (He) stayed on the road to Huntington,. Here he sold out to Ore. Construct. Co." In January of 1884, Will was to write Agnes, "I have completed all my arrangements and feel quite settled now. (I) have made arrangements to start a National Bank in Portland and one in the mines of Montana, so it is my intention now to follow the Banking business for life. I had quite a long dream about you last night, though you were a little mite sick, and when I asked what the matter was, you said you "guessed it was love sickness." and that you could not help think of me all the time. Please tell me if you were unwell."

SEE PHOTO OF SPIKE

By July, 1884 Ainsworth & Co., Bankers, had been established in Portland, and had moved into the recently completed Ainsworth Block in Portland, at the Northwest corner of Third and Pine. "It is occupied by Ainsworth & Co. Bankers" "(Capt.) J.C. Ainsworth and George J. Ainsworth, Leander L. and Wm. J. Hawkins compose the firm, each having invested a quarter of the bank's assets." (1885 N.W. ILLUSTRATED MONTHLY) As announced in the Portland newspapers, "L.L. Hawkins, whom everybody knows favorably, is the manager." Will Hawkins remained at Eagle City (then to Murray) where Ainsworth, Hawkins & Co., Bankers (W.J. Hawkins, President, J.C. Marshall, Cashier) became a branch of the Ainsworth & Co., in Portland. The imposing, and very handsome cast-iron fronted, Ainsworth Block was a most suitable home for the newly established banking business. Costing $85,000, it was considered "the most substantially built block in the Northwest" and was designed by Clinton Day, a San Francisco architect. Day had ties to L.L. and Capt. George, being a 1867 graduate of the University of California, as well as the architect of some of the University's first buildings. He had also been doing graduate work at the same time as L.L. and George. In fact, to lay out the foundation stakes of "North Hall," L.L.'s class in surveying was solicited to do the work. The new Ainsworth Block in Portland was located on S.E. corner of the full block owned by Captain J.C. Ainsworth, where the old Ainsworth home still stood on the block's N.W. corner.

PHOTOGRAPH OF AINSWORTH BLOCK, OFFICES OF AINSWORTH & CO.

In May of 1884, Will was to write Agnes from Eagle City, where Ainsworth, Hawkins & Co., Bankers was then located, "We are doing nearly all the Banking business here, althoug (sic) there are two others." "Today we purchase 300 oz. of gold dust at $17per oz.. $5,100... is about the entire amount that is taken out per day. We have to be careful with our money for this is a tough place and have on hand from fifty to sixty thousand dollars. All the time. (I) have no very secure building and have to guard the coin in a log cabin. At night, six of us sleep around the safe and there is never less than four men in guard during the day. So, you can guess my mind is not always easy. There is no road in here yet. Provisions are hauled in by dog trains and pack mules. The dogs haul sleighs on the snow trails. There are no decent women here yet, or any person one could call a Lady, yet many of the lower class. In the evening some tweny band(s) of music play to gather the miners around the gambling tables." The town presents a lively appearance, but this will all be done away with as soon as the quartz mines are worked and they are quite numerous." "Will also pan out enough gold dust to make you a ring or any piece of jewelry you wish."

In May, when Agnes graduated from Normal School in San Jose, he was to write her, "(I) sent money as (a) graduation present. -- I congratulate you with with all my heart and it gives me joy to know you have accomplished so much. There is no way to explain how proud I am of you, and the exten of my good wishes for your future happiness, together with all the love that is possible to come from a heart placed in such a frame as mine which now regrets so bitterly that the power of speech is not at its command." Agnes' heart had been touched, and in their endearing letters to each other, which began in 1877, they planned for marriage. Their unusually long engagement was determined and delayed by the incredible business opportunities found in the wild camps of Idaho. But, at long last, on January 10, 1892 they married in San Francisco. The service was held at the residence of Agne's friend Mrs. Susan Braly on California Street. In the San Francisco paper of Jan, 18, it was described as a "charming wedding," "celebrated in a quiet but pleasant manner." Attending were a few friends and relatives, among whom was Agnes' mother, Mrs. John Parson. Captain and Mrs. J.C. Ainsworth were to send a handsome set of dessert plates (still enjoyed by the family). Agnes would no longer be teaching, as she had after her Normal School graduation, and they would depart within the week for Portland.

As bank President, L.L. was to continue the bank's support for emerging, but promising, businesses. The telephone business, owned and promoted by Capt. George, had proved a successful venture. Now, at about the same time period, electric power was being developed in the Portland area. In 1880, George Weidler, a former investor in the O.S.N.C, and engineer, "erected a dynamo in his sawmill on the Willamette River across from Albina. He was the first person to sell electric lighting in Portland when he ran a primitive transmission line to the nearby Ainsworth Dock in 1881." By March of 1884, Weidler, with three partners, was to organize the U.S. Electric Lighting and Power Company. The new partners included L.L. Hawkins, President of the Ainsworth & Co. Bank, businessman George Weidler, engineer P.F. Morey, and attorney Frederick V. Holman. L.L. Hawkins was elected as first president of the company. As an engineer, Morey was to generate power by coal-fired, steam-generated dynamos. Morey was to further develop electric power for Portland, when, in 1888, he organized the Willamette Falls Electric Co., with a capitalization of $1 million. Partial financing was supplied by the Ainsworth National Bank and through E.L. Eastham, an Oregon City capitalist. Assets of U.S. Electric were transferred to the new company, with investors being, Morey, L.L. Hawkins, D.P. Thompson, W.K. Smith, J.C. Moreland and Eastham. Assets had increased from $100,000 for the U.S. Electric Lighting Co. to $1 million for the Willamette Falls Electric Co. According to the bronze placque installed by the Lang Sang Society, June 3, 1962 in Lownsdale Park, "The world's first long distance high tension power line began operation between Portland and Willamette Falls by the Willamette Falls Electric Compny on June 3, 1889." As the new power source quickly developed, Morey, Holman, and Henry Failing formed the Portland General Electric Co., having bought all the assets of the Willamette Falls Electric Co. This occured August 6, 1892, just prior to the Panic of 1893.

Another invention, being proved of great usefullness, was the elevator. L.L. became President of the Hydraulic Elevator Company, organized in 1883 -- RESEARCH!

For the meantime, the bank continued to grow. "Already the bank is having heavy private and commercial deposits, and is quietly developing a large business." L.L. was elected President of the bank by its 4-party stockholders and, with $100,000 in initial capital, immediately set out with his full efforts to put the bank on a firm footing. By Oct. 27, 1885, Ainsworth & Co., Bankers, was organized into the Ainsworth National Bank, with L.L. as President, W.K. Smith, Vice President, and J.P. Marshall Cashier. In Eagle City, Ainsworth, Hawkins, & Co., became a branch of the Portland bank. After one year in business, the first "Report of Condition" in the local papers, Dec. 31, 1886, assets had increased to $379,341.64, no small sum for the time. These assets were to multiply many times over in the coming years, making the bank one of the more substantial in the City. In the Bank's history, L.L. Hawkins merited special mention for his work during this time. "Captain Ainsworth's trusted and able lieutenant in Portland was Colonel L.L. Hawkins, who was the first president of the Ainsworth National Bank. He managed the private bank of Ainsworth & Company, Bankers, before it was nationalized, and for four years prior to assuming these duties in 1881, assisted Captain Ainsworth in the management of other enterprises. Not afraid of hard work, faithful to a trust, possessed of resourcefulness, always interested in the things that helped Portland, sometimes a step ahead of his co-workers, never unwilling to follow the lead of another when convinced that the goal was desirable- these are a few of the qualities which made of Colonel Hawkins a leader in his day. Something just had to move when he put his shoulder to the wheel. His geniality and hospitality, along with many another fine traits, not to mention his courtly bearing, gave to many people the impression that he was a product of the South -- a southern gentleman- whereas he could lay no claim to nativity in Dixie."

By 1884, Will was to write Agnes, that he had "discontinued (the) banking business in

Eagle City and removed all our capital to Portland, for our business has so increased." "Marshall left me some five weeks ago in order to assist my brother in Portland."-- nearly swamped with clerical work. Our firm has had good business standing in this commuity and we have to leave so many good friends -- some from all over the world." "My brother, or I will say Leander, is anxious that I should relieve him of a portion of the work in Portland for it is hard to get anyone that can be trusted, so I am expect to take full-charge of the Safe Deposit business at the earliest convenience." Will was to remain, however, in Eagle City, then Murray, Idaho until February of 1886, when he, at last, was able to visit Agnes, meeting in San Francisco at the Palace Hotel. In his letter to Agnes (on Palace Hotel stationery) after the visit, "my thoughts have been with you since we parted last night. I scarcely closed my eyes, while today I am very much unfit for business. "

By March, from Murray, he wrote, "down with a fever, -- my thoughts have been with you continuously since we parted." In asking his brother, L.L., his impressions of Agnes, L.L. was to reply he had "as high a regard (of her) as any young lady he knew, and said you would make a good wife and was a person that would be true blue no matter if one met with misfortune and had to struggle for a living." Later, from Murray, "We must have something in our hive beside honey--something that rhymes with it --- and that we may have it???"

PHOTO, PALACE HOTEL.

Another initial investment loan provided by the Ainsworth National Bank, under L.L., was to the Portland Cable Railway Company, incorporated in July, 1887. The goal of the new company was "to stimulate building of homes on Portland Heights." (Hist. of Col. River Valley). Many fine houses had been erected there, but lot sales were limited by poor and indirect access. The extension of Market Street up the hill was steep and narrow, Montgomery Drive meandered, though at a good grade for carriages. The views of the city and the eastern mountains were, however, superb from this area. Thus, it was believed that the cable extension would resolve the limited development of the area (Ford St.Bridge, later Vista Ave. Viaduct, had not been constructed). To finance the company, the majority of the investment funds were provided through Ogden Mills, a financier with interests in New York and San Francisco. Other investors were T.G. Murphy, A.W. Wright, Jr., J.C. McCaffrey and Joseph P. Thompson. Bonds for the company were bought by San Francisco's Crocker Bank, making a total capitalization of $800,000. A City franchise was granted May 2, 1888, and the line was to run from the Union Depot up Fifth Street to Jefferson, then to Chapman, and up to Spring Street on Portland Heights. The prospectus was excellent. Unfortunately, unexpected costs had delayed the opening of the company for another year. An expensive trestle needed to be constructed, connecting Cable Street, at the bottom of the hill, with S.W. 17th at the top, where regular city blocks had been platted. In addition, an expensive power house was being constructed at the foot of the hill, which had had problems with its siting.

Captain George Ainsworth, after 1882, was in Oakland to assist his father in the latter's California investments. One, was the development of a large quantity of land on Santa Monica Bay at Rodondo Beach. With R.R. Thompson, his father's former O.S.N.C partner, now living in San Francisco, he was to make substantial improvements on the property, building a "large and expensive hotel and a railroad to Los Angeles, and invested about $2,000,000 in these enterprises." Captain George was the president and general manager of these companies..." While there, he invited L.L. to visit him. As the 1888 Portland paper was to state on his return:" Mr. L.L. Hawkins has just returned from a twenty day trip through California. He visited the Lake Tahoe region, (family visit), and then went to Los Angeles, from whence he went to Rodondo beach, eighteen miles distant, where Messrs. Ainsworth and Thompson have a tract of land of several thousand acres, and where they are building a fine hotel, bath houses, etc." The event recorded by the paper was not about business, but about an excursion in a steam launch on the ocean, where, "Mr. Hawkins enjoyed the sport of hunting porpoises, which, he says, far excels buffalo hunting, and which he considers the most exciting sport in the world." Unfortunately for Capt. George, after $3,000,000 was committed into the Rodondo Beach property, a later paper was to record, "it is generally believed that it has never yielded any return for the amount that has been sunk there. It was this investment that drew so heavily upon his (Capt. J.C. Ainsworth's) resources that he had to sell all of his Tacoma property, and he has only a little property left there now." (Dec.31, 1893 article in Sunday Examiner). Old Captain J.C. Ainsworth was, in every way he could, to assist his sons with their occupations. However in his personal Journal of early 1886, he had written, "I had hoped when I came to Cal. to be free from business, but a combination of circumstances have caused disappointment in this respect. To please my son George and to further his interest I have given a reluctant consent to many enterprisess that have resulted in more worry of mind than profit, and in consequence my health has suffered." And, "Unfortunately, circumstances have prevented my son George from engaging in any active business, and as a consequence he is unhappy and impatient to do something that will show results. Naturally over-sanguine he has been pursuaded to engage in many speculative schemes that have resulted in loss. This has discouraged him and the more so because the losses have been a tax on me with nothing tangible in sight by which he can recuperate. " It would seem such reserved statements about his son's abilities differed in opinion from the public perception of Capt. George as a respected and successful man in both his business and private affairs. Captain J.C.'s other two sons, J.C., Jr. and his brother Harry, were, as a result, encouraged "to select some occupation (when their education is finished) upon which they can enter as a life work," and to "stick to it." To further this, J.C. Jr. and Harry were assigned to work in the Central Bank of Oakland, of which Capt. J.C. was owner and President.

Of note in the banking world, the Portland banks had no clearing house in the early years.

In 1889 Portland was to have its first. According to the Association's minutes, "With a view to the establishing a Banker's Association or Clearing House, or both, in this city, a meeting of the Banks and Bankers of Portland is hereby called to be held at the parlors of the First National Bank on Saturday, May 18, 1889, at 4 o'clock P.M. Portland. Attending for the Ainsworth National Bank were L.L. Hwkins and J.P. Marshall. Of the ten original bank members, only three were to survive after 1894.

Despite lack of profit in some of the Ainsworth enterprises, the Ainsworth National Bank in Portland prospered, none the less, into the 1890s. The partnership was pleased, and L.L. Hawkins had become wealthy, not only by his astute handling of the bank's interests, but by his multiple business interests outside the bank. However, a great cloud was the enter the financial skies, the National Panic of 1893. According to bankers, the panic was caused by the Bland-Allison and Sherman Acts, which had clauses subsituting silver for gold, and silver had only half the value of gold. European investors lost confidence, withdrawing their investments in the country. As a consequence, "All the great trust companies and the bondholding creditor class of every community looked upon free silver coinage with exactly the same eyes and motives as did the Oregon money lender upon depreciated greenback currancy." Bonds were not being purchased and construction stopped on public improvements. This event would cause the markets to pull in, affecting all aspects of business. As a result of the public panic, seven Portland banks were to close their doors in one day. Foreign Banks, the First National, Merchant's National and the Ladd & Tilton Bank were to "weather the storm," as was the Ainsworth National, paying out every demand in gold coin. "The predicament in which banks found themselves , not only in Portland but elsewhere, was caused by inability to collect loans as fast as depositors wanted their money." ("The U.S. National Bank," McFarland). The Merchant's National, headed by its President, J. Lowenberg, did not have enough gold coin, but was able to meet the demand when Lowenberg paid out nearly his entire fortune to save his bank. Most devastating for banks and lending houses, were the "vast number of foreclosures of mortgages as well as actions and judgements; and it has been estimated that about one-half the real property in the country changed hands in consequence of such foreclosures and sherriffs' sales. And the city was nearly seven years in recovering from the losses and general disarrangement inflicted on property holders and business men."

Such was to be the effect on the Ainsworth National Bank. Of the enterprises funded by the bank through investment loans, as new additions to the City, cable railways, elevator companies, electric companies and the like, many were unable to repay their loans on demand. L.L Hawkins, as bank President, was the one to suffer the greatest consequences at the Ainsworth Bank. As Lowenberg had done, his personal assets were to go toward covering bank losses. To further exacerbate this difficult situation, Captain J.C. Ainsworth, his long-time patron and benefactor, was to pass away at "Roselawn" (Dec. 30, 1893). In his will of 1890, his widow, Fannie B. Ainsworth, and Capt. George were to serve as executors, with John S. Baker, his son-in-law, and L.L. Hawkins, his financial agent in Portland, to subsitute in case of their death. The subsitutes were contested, and John C. Ainsworth, Jr, and Harry B. Ainsworth were named.

The death of Captain J.C. Ainsworth, and the concurrent financial Panic of 1893, left the Ainsworth financial interests in Tacoma, Portland, Oakland and Rodondo Beach in considerable stress. The financial panic had come at an inopportune time. Both George, whose health was problematic, and J.C. Jr. were to return to Portland, soon after their father's death. In was in Portland where they had spent their youth, and it was in Portland where much of the family fortune was tied up in the Ainsworth National Bank and other wide-range financial investments. 1894 was a crucial year, then. Young J.C. Ainsworth, Jr., son by his father's third marriage, was 23 at this time, with only a few years of experience in the Central Bank of Oakland. His brother Harry had worked there, also, as a teller, and Capt. George had successfully led the construction of the Rodondo Beach deveopment, but was not finding it profitable. J.C., Jr. and Harry, having won status over L.L. as subsitute executors, were to press for control of the bank. By inheritance, they now held their father's shares in the company. Within months, L.L. was "to relinquish the presidency to John Churchill Ainsworth." The takeover came at a pressing time, with the '93 Panic, and it seems L.L. was to take full responsibility, as President, for the losses the bank had incurred. There was to be no sharing of the Panic losses, nor special consideration of those who had been so pivotal in the bank's origins, nor to those who had built it into a powerful institution over a ten year period. In the Memorandum of Agreement crafted by J.C. Jr., L.L. was to agree "to turn over his five- hundred shares of capital stock of the Ainsworth National Bank, and also three promissory notes of John Kiernan, aggregating the sum of sixty-five thousand dollars," plus other settlements amounting to over $250,000. It was to take a full year to sort out the settlement, done quietly and never to appear in the Portland papers. L.L. and J.C. Ainsworth (Jr.) signed the letter of Agreement, December 31, 1895. In May of 1896, on a sealed letter from the Ainsworth National Bank, in L.L.'s handwriting, it was to state, "This is to certify that L.L. Hawkins has this day acquitted himself of every and all obligations of what ever name or nature, either remote contingently, or otherwise to the Ainsworth National Bank and is held free and harmless from any and all personal liability up to this date." It was signed by J.P. Marshall, the faithful cashier of the bank, and Thomas Connell, a newly appointed Director. A rubber- stamped signature of J.C. Ainsworth was also ascribed to it. By 1900, L.L. was to release the Ainsworth estate of any demands he may have had against it. It was to take up until 1906 for all the complications to be behind him. He was to write on the file, now put aside for safe keeping: "All these papers are now dead and void, but must be kept for a possible reference. This is the last of the "Ainsworths.' Thank God." As for Will's stock and position as Manager in the bank, the takeover by J.C. Jr. held no promise for the future. He was pursuaded to sell his stock in the bank by his friend Percy Morgan, who had married an Ainsworth daughter. This amounted to about one-tenth of the worth of the company, considering the six additional stock holders who had been added to the ownership.

Another Ainsworth National Bank loan default was caused by the business failure of the five-year old Portland Cable Co, which went into receivership on August 30, 1892. By September, the bank, through its Cashier, J.P. Marshall, purchased ownership of the cable company at Sherriff's auction. It was immediately reincorporated, with new stockholders; C.H. Woodward, President, Ira B. Sturgis, Vice-President, and L.L. Hawkins, Treasurer. But by November, with the Panic of 1893 looming, the new company, itself, had gone into the hands of a receiver, only to be repurchased by W. K. Smith, A.W. Oliver, and A.H. Thompson. This sale was contested by L.L. In another complicated sherriff's sale, L.L. was to repurchase the company from W.K. Smith, A.W. Oliver, and A. H. Thompson. It appears that the Ainsworth National, headed by J.C. Ainsworth, Jr. had sought to minimalize its losses in its settlement with L.L.. By Sept. 1894, with the Panic of 1893 influencing all business decisions, and after much legal maneuvering, the company was sold at Sherriff's auction again for $41,718 to the San Francisco bondholders. It does not appear that L.L. was to recover any of his investments in the cable company's convoluted financial demise.

Capt. George had not been in good health for some time. Even before his father died, he

had hoped his health would improve in the Oregon climate. By October, his symptoms from anaemia had become worse, and, on Oct. 11, 1894, he passed away at his family home. His death had to be a sad one for L.L. --- his friend through college and graduate days at Berkeley, his sharing of interest in the Zeta Psi literary fraternity, their enthusiasm for taking on new inventions, and their trusted business relationships, were strong bonds forged and cemented over a twenty-five year period. The beginnings of the Ainsworth National Bank would not have occurred without the complete support of Capt. George. L.L. must have had all this in mind and heart when he attended George's funeral service. In the newspaper article of the following day, it stated, "The ceremonies at the house were plain but touching in their impressiveness. With hardly an exception, those present were old friends, schoolmates, or acquaintances of many years standing with the deceased, who had gathered to take final leave of one whose nobility of character and gentleness of spirit had endeared him to the hearts of all with whom he came in contact. Many handsome floral tributes were arranged about the casket, conspicious among them being a wreath of white roses encircling the figures '73,' the year in which he graduated from the University of California, a gift from Mr. L.L. Hawkins, a fellow classmate, and later Mr. Ainsworth's preceptor." (Oregonian, Oct. 1895)

Before George Ainsworth had died, he had secured a small personal loan, for reasons long forgotten, from L.L., his friend. According to the family story, collateral for the loan was in the form of several pieces of furniture, once belonging to his father, Captain J. C. Ainsworth. They included a tall rose-wood clock showing, in two dials, the time, day of month and month, and a Louis XV-style cherry game table with ormolu bronze mounts. After Capt. George's services, the loan was quietly put aside, not to be pressed on the grieving widow. The Ainsworth pieces, then, were to remain in the W.J. Hawkins household for over thirty years, surviving the death of L.L., and finally his brother, Will, in 1923. Then, after Will's death, J.C. Ainsworth, Jr. by then President of the U.S. National Bank, which had amalgamated with the Ainsworth National, paid a courtesy call on Will's widow, Agnes Hawkins, at their Myrtle Street home. After brief condolences were expressed, the story goes, J.C. asked if he could purchase back the clock and table, stating that he had grown up with them and would like them in the family again. Agnes Hawkins, who always stood with an imposing posture and spoke eloquently, was to respond politely that she would not part with them. Her children, too, she stated, had grown up with them, in fact, for over a longer period of time (30 years) than J.C., Jr. could have known them in the family home when he was young. J.C. was to depart, without the clock and table. After his departure, Agnes was to confide to her two daughters, who had been standing behind the portierres when this exchange occured, that "Mr. Ainsworth had come too soon." Only she knew, by now, the full circumstances of the bank takeover, and the dire consequences it had held for L.L., her brother-in-law, as well as for her beloved husband, when the connection to the bank which he had started in the wild railroad camps at Cabinet Landing, Idaho Territory, was severed.

File: LLHAWK5A Miss Daisy Ainsworth, whose marriage was to have taken place on the 10th inst., Mr. John C. Ainsworth, Miss Maude and Miss Belle, all of whom except Captain George reside at the family residence.

"Miss Daisy Ainsworth was the young lady who christened the cruiser Oregon when she was launched in San Francisco a few months ago. Her wedding was to have taken place on January 10th"

file:llhawk5a