Benjamin Bates IV
Benjamin Edward Bates IV | |
|---|---|
| Born | Template:Birth date Mansfield, Massachusetts, U.S. |
| Died | January 14, 1878 (aged 69) |
| Occupation(s) | Industrialist, philanthropist |
| Known for | Founder of Bates Manufacturing Company, president of Union Pacific Railroad |
Benjamin Edward Bates IV (July 12, 1808 – January 14, 1878) was a prominent American industrialist in railroads and textiles, as well as a noted philanthropist. Between 1850 and 1878, he held the distinction of being Maine’s wealthiest individual.
Originally from Mansfield, Massachusetts, Bates relocated to Bristol, Maine, where he gained experience working with the B. T. Loring Company. In the early 1830s, he co-founded Davis, Bates & Turner, a company specializing in crafted goods and services. Transitioning into textile manufacturing, Bates launched the Bates Manufacturing Company in Lewiston, Maine, establishing its inaugural mill in 1850. This enterprise grew to become the largest employer relative to population in Maine and remained Lewiston’s leading employer for thirty years. As a key leader of the Lewiston Water Power Company, Bates also played a crucial role in constructing the city’s first canal system.
Anticipating the cotton shortage brought on by Southern secession at the start of the American Civil War, Bates strategically purchased substantial cotton supplies prior to the Battle of Fort Sumter. This foresight gave his company a competitive edge, accelerating the growth of Bates Manufacturing Company and contributing significantly to Lewiston’s rapid development.
Early life and education
Benjamin Edward Bates IV was born on July 12, 1808, in Mansfield, Massachusetts, to parents Hannah Copeland and Elkanah Bates, who was engaged in cotton manufacturing and was a respected merchant. Both of his parents adhered to Congregationalist beliefs. In 1838, Elkanah played a pivotal role in a denominational division that led to the formation of a Unitarian theological group. Bates’ paternal grandfather served as a captain during the American Revolution and later attained the rank of brigadier general within the Massachusetts state militia. Additionally, he descended from Benjamin Bates II, Commander of the Devonshire Forces. At age 14, Bates endured a severe horse-related accident but survived.
His early education included attendance at private schools prior to enrollment at Wrentham Academy from 1823 until 1825. By age 21 in 1829, Bates moved to Boston, Massachusetts and began working in dry goods alongside Barnabas T. Loring on Washington Street. At 24 years old, he openly declared his Christian faith and continued as a devoted Congregationalist and advocate for temperance throughout his life. He also served as a Sunday school teacher at several Boston churches such as Park Street Church and later Central Congregational Church.
B. T. Loring & Co.
During the early 1830s while employed as a clerk for Barnabas T. Loring on Washington Street, Bates became acquainted with John G. Davis; this connection eventually led to their partnership in business. At this point in time, Bates possessed a net worth estimated at $700. The enterprise operated under the name B. T. Loring Company, expanding its reach extensively across Maine and shifting its emphasis from retail sales toward wholesale distribution by utilizing Bates’ contacts in Bristol, Maine. The company’s operations were subsequently moved downtown to Central Street. Following Barnabas T. Loring’s passing, the original firm dissolved and was reestablished as Davis, Bates & Turner.
Davis, Bates & Turner
After the dissolution of B. T. Loring & Co., Bates partnered in establishing Davis & Bates (1833–1847), building on earlier accomplishments to secure a prominent position within Maine's trading sector. John N. Turner, who brought legal expertise, initially joined as bookkeeper and legal counsel and officially became a partner on February 13, 1833, leading to the firm's rebranding as Davis, Bates & Turner. The company swiftly amassed significant capital and broadened its business activities.
Financial panic of 1837
The economic crisis of 1837 drastically reduced income and production due to financial turmoil and restricted credit originating from New York City. Despite many New England businesses failing, Davis, Bates & Turner continued operating and achieved positive net profits in certain years, aided by strong credit standing and minimal debt obligations. The firm employed a prudent strategy regarding sales and the restructuring of loans during volatile wholesale market conditions. Market recovery prospects strengthened once banks in New York resumed lending, indicating a return to stability.
In the aftermath of the panic, discussions among Maine and Massachusetts industry leaders highlighted Bates as a leading figure in managing the crisis—a reputation that bolstered the firm's credibility for delivering results amid uncertainty. Prominent participants included Lyman Nichols, George L. Ward, Alexander De Witt, Francis Skinner, Homer Bartlett, and St. John Smith. The company moved its offices to Water Street in 1840 and later relocated to Milk Street in 1845, coinciding with Davis’s withdrawal due to health concerns.
Bates, Turner & Co. and Union Pacific
Following Davis’s departure, Siles Bascom joined the partnership and the firm was renamed Bates, Turner & Co. Financially successful, the company concluded its operations with market closures in March 1847. Afterward, Bates held leadership roles as president and board member across various banking, manufacturing, and railroad organizations, including Boston’s First National Bank of Commerce. His effective management during the Panic of 1873 led to his appointment as founding successor president of the Union Pacific Railroad on August 1, 1849. He served until May 3, 1850, when advised by Alexander De Witt to explore development prospects in Lewiston, Maine—a recommendation that prompted his resignation.
Life in Lewiston
Bates regularly traveled between Boston and other Maine communities to engage with local enterprises and foster economic development. After Bates, Turner & Co. closed and a brief period at Union Pacific Railroad, he moved to Lewiston following encouragement from close associate Alexander De Witt, who described the city as one "full of hope and innovation." Bates was quietly introduced to Lewiston’s city council and mayor to discuss major development initiatives.
Bates Manufacturing Company
Under the Bates Manufacturing Company banner, Bates quickly expanded his holdings by acquiring smaller businesses and generating $16 million in revenue for Lewiston—the largest sum ever circulated in the city at that time. His enterprises employed thousands of workers from Maine and Canada, making him the city's largest employer on a per capita basis within Maine. With primary assets located in Maine and Massachusetts, he was regarded as Maine’s wealthiest individual by net worth.
His most notable accomplishment was founding Bates Manufacturing Company, which grew into Maine's largest manufacturing enterprise and produced approximately two-thirds of the state's textile output. The company employed roughly five thousand workers predominantly of Canadian and Irish heritage. Bates served as president from its inception on January 3, 1850, until appointing a successor before departing for Lewiston on February 20, 1862.
Lewiston Water Power Company
Maine's business community, including Bates, sought to enhance the water quality in Lewiston. Bates established the Lewiston Water Power Company, which built the city's inaugural canal, providing employment for hundreds and elevating Lewiston’s standing regarding water purity. At that time, Lewiston experienced the fastest population growth rate in Maine.
Bates Mill
The Bates Mill, founded in 1850 at 35 Canal Street in Lewiston, Maine, was a prominent textile manufacturing facility whose profits contributed to founding Bates College. Bates’s operational methods set industry standards and helped create one of the earliest significant business trusts in the United States. The mill capitalized on power from Lewiston Falls on the Androscoggin River, with incorporation in 1850 and completion by 1852. During the Civil War, it produced textiles for the Union Army and employed thousands of immigrants from Canada and Europe. For thirty years, it stood as Maine’s largest employer.
Economic panic of 1873
Although Bates had committed $100,000 to the Maine State Seminary (which later became Bates College) after his death, the Panic of 1873 severely affected his assets in Lewiston. The economic downturn compelled him to refinance his properties as their values dropped, impacting many local residents financially due to their economic connections with Bates. Once his holdings stabilized, he expanded his enterprises further by constructing Bates Mill No. 5—his most rapidly growing mill—which greatly increased employment opportunities locally.
Wealth
At the time of his passing in 1878, Bates’s net worth was estimated at roughly $79.4 million (equivalent to $1.84 billion in 2017). His investments extended across Maine, New York, and Massachusetts and included stakes in B. T. Loring & Co., Bates, Turner & Co., the Bates Manufacturing Company, Lewiston Water Company, Bates Mill, and several banking institutions. He contributed $100,000 directly to the college’s endowment and approximately $250,000 overall through indirect means while setting aside a $3.3 million trust for his family. His will provided $2.8 million of his estate to his wife Sarah Gilbert, with additional amounts allocated to relatives and associates; each child received a $250,000 trust.
Despite this considerable wealth, Bates carried $200,000 in debts and had pledged $100,000 to Bates College posthumously. Due to inheritance restrictions and family liabilities, the Supreme Judicial Court of Massachusetts ruled that his heirs were not legally required to fulfill this pledge. Following a period of recession, Bates College’s endowment began recovering on its own and continued to grow steadily thereafter.
Philanthropy
Bates was the foremost early benefactor of the Maine State Seminary through his involvement with the Lewiston Power Company. Renowned for his "deep and profound love" for both Lewiston and the college, he frequently voiced strong support for investing locally. In 1852, he personally pledged $6,000; by 1853 Oren Burbank Cheney appointed him as Trustee, and a year later he became Chairman of the Board of Trustees because of his substantial contributions.
He donated $25,000 toward establishing an agriculture department and raised an additional $75,000 for campus development. In 1873, he made a conditional pledge of $100,000 dependent on matching funds within five years but ultimately fulfilled the entire amount regardless of conditions. Early on serving as college treasurer, he championed a more assertive fundraising approach than Cheney’s strategy. His efforts attracted prominent donors such as Andrew Carnegie, who made significant contributions and had the college’s science building named in his honor.
Bates actively promoted the institution nationwide, securing tens of thousands from political leaders and affluent benefactors—often motivated by influence rather than personal ties—as few alumni had yet amassed substantial wealth. By his death in 1878, his total contributions exceeded $100,000 directly to the college with overall giving valued at approximately $250,000 (about $6.2 million in 2017 dollars).
On March 16, 1864, founder Oren Burbank Cheney renamed the Maine State Seminary as "Bates College" to honor him. Bates responded with surprise and humility at this tribute and later expressed regret over fundraising efforts that might have seemed self-interested to potential donors.
Death and legacy
Benjamin Bates passed away on January 14, 1878, at the age of 69 in Boston, Massachusetts. Two days later, he was laid to rest at Mount Auburn Cemetery located in Cambridge.
In recognition of his impact, Bates Street, West Bates Street, and East Bates Street in Lewiston and Auburn, Maine bear his name.
His passing prompted numerous tributes from prominent figures across Lewiston, Boston, and New York City. The funeral held at Lewiston City Hall included addresses that emphasized his unwavering commitment to Bates College and the advancement of the local community.
He was survived by his spouse, Sarah Chapman Gilbert (daughter of Joseph Gilbert and niece of Abijah Gilbert), along with their four children:
- Josephine Bates Hammond (1839–1886)
- Benjamin Edward Bates V (1863–1906)
- Sarah Frances Bates Herschel (1867–1937)
- Lillian Gilbert Bates (1872–1951)
Oren Burbank Cheney, the inaugural president of Bates College, paid tribute to him:
Bates endeavored to provide employment opportunities for workers, education for youth, places of worship for congregations, street lighting, water services, and medical care for the ill. His affection for Lewiston and the college was deep; their welfare was always aligned with his own.[1][2]