"In the year 1841, feeling the necessity of having mills erected that could supply the settlement with flour and lumber, a number of the inhabitants formed themselves into a joint stock company, for the purpose of supplying the growing wants of the community. [Many of the farmers were obliged to leave their farms on the Willamette, and go six miles above Vancouver, on the Columbia River--making the whole distance about sixty miles--to get their wheat ground, at a great loss of time and expense.] The company was formed, and proceeded to select a site. They selected an island at the falls of the Willamette, and concluded to commence their operations. After commencing, they are informed by Dr. McLoughlin, who is at the head of the Hudson Bay Company's affairs west of the Rocky Mountains, that the island is his, and that he (although a chief factor of the Hudson Bay Company) claims all the lands at the east side of the Willamette, embracing the falls down to the Klakamus river, a distance of about two miles. He had no idea, we presume, that the company would succeed. However, he erected a shed on the island, after the stuff was on the island to build a house, and then gave them permission to build under certain restrictions. They took the paper he wrote them, containing his conditions; but did not obligate themselves to comply with the conditions, as they did not think his claim just or reasonable.
"Many projects had been started by the inhabitants, but, for want of means and encouragement, failed. This fate was predicted for the Milling Company. But, after much labor and difficulty, they succeeded in getting a saw mill erected, and ready to run; and entered into a contract to have a grist mill erected forthwith. And now, as they have succeeded, where is the Hudson Bay Company? Dr. McLoughlin employs hands to get out a frame for a saw mill, and erect it at the Willamette falls; and we find, as soon as the frame is up, the gearing which has been made at Vancouver is brought up in boats; and that which caused a feeble company of American citizens months of toil and embarrassment is accomplished by the chief factor of the Hudson Bay Company in a few weeks; (he has men and means); and it is said by him, that in two weeks his mill will be sawing. And what will be the consequences? Why, if the Milling Company sell for $15 per thousand, he can sell for $12; if they reduce the price to $10, he can come to $8, or $5, or $2 per thousand. He says he will have a grist mill started as soon as he gets the saw mill in operation.