Garren Wellington
(1880-1951)
Garren Wellington grew up in posturing contrasts; on the one hand following
his father in the timber business, from this he learned drive, yet on the other hand
Garren was the "prize child" that Lannan and Irma always wanted and thus
Garren was tutored and stressed on education and higher society of life. By the time
Garren was 17, all this posturing started to take its toll on a young man trying
to grow up in the world. Garren initially began his college education at 17 enrolled
at the newly founded Stanford University as the founder of the school had many dealings
with Lannan Wellington. Garren was fascinated by constitutional law and was an initial
member of the law school program which is exactly what his parents wanted him to
do, yet in this very structured environment Garren wasnt very happy and after his
first year of school the cap blew off when upon one of Garrens return visits home
he announced he was leaving school to join the service. This announcement crushed
Garrens mother and Garren might nearly have been crushed by Lannan as well; Lannan
Wellington stood a solid 6'2 and 240 pounds of Irish temper, yet Garren stood even
taller at nearly 6'4 and was determined to stick with his decision though a bit of
compromise was reached.
Garren joined the washington state reserve in 1897 and
agreed to continue going to school as well; however, in 1898 the reserves were called
to duty and Garren was stationed in Manila where he saw action in three battles.
Lannan and Irma were fit to be tied with all of this however Garren returned safely
in less than a year having more than his fill for action and independence and returned
to Stanford shortly after.
Garren completed his law degree in 1905 with a minor
in business finance, he was then invited to take advanced studies at Cornell University
out east. The Stanford school had been chaired by professors from Cornell and in
fact Garren took a vacation seminar at Cornell in the summer of 1904. Somewhere in
the visit of 1904 and 1906 Garren met a young Cornell student named Francis Norrine
Cauley, Norrine was the youngest daughter of a well to do railways owner on the east
coast and for Garren and Norrine it was love at first site; so much so that Garren
asked for Norrines hand in marriage during his visit and the two were married
in 1906.
Garrens extended stay did cause some riffs at home, Lannan and Irma
were not present for their only sons wedding and while Garren got along great with
Norrines father Algier Cauley, his extended departure from home caused Lannan to
rethink some business decisions.
Garren would later explain this to his mother
as consumption of love, and honoring the committment he made to his new wife Norrine
in allowing her to finish school, but this would drastically change in 1907 when
Lannan Wellington fell ill. Garren returned to the estate with his new bride and
helped care for Lannan until November of that year when Lannan passed away.
Here's
Norrine Cauley Wellington as a sophomore at Cornell University 1907
**
At the ripe age of 27 Garren was set to be head of Wellington Timber but he
soon was shocked to find out that his father had made a few changes in his absense;
yes Garren would be in charge eventually, but he would have an intern period with
which all decisions would have to be approved by Irma, and a guy named Walter "Bull"
Krauser, Bull Krauser had been the right hand guy for Lannan for years, nobody knew
timber and the mill better than Bull Krauser and Garren would have to prove he was
capable of running the business.
This set up was Garrens first real world test
and he handled it quite brilliantly. Garren had an excellent resource in his father
in law Algier Cauley, Algier had a European education and an east coast business
sense that Garren valued. Garren took a white flag mentality with Bull Krauser letting
Krauser be the point man for solving labor issues which were a hot topic at that
time, Garren in fact made Bull Krauser "the face" of Wellington Timber
which played well to his favor.
Finally, Garren was the perfect son to Irma bringing
home a proper and very endearing daughter in law to the family in Norrine, by 1909
Irma waived her proxies to Garren and he was in fact now the head man of Wellington
Timber. Another nice touch was the announcement that Norrine was pregnant and in
1910 Irma held her first grandchild Liam Trestan Wellington.
Garren's initial moves with the Timber
company upon his reign were significant and far reaching.
Garren embarked on a
3 part plan to set the course for the future of the timber company, the first phase
was the issue of growth. Lannan had not invested much in regrowth of timber and had
lost nearly 60 percent of his timber crop. Garren implemented a replanting operation
to replace timber at a pace of 3 to 1 over what had been depleted, but Garren didnt
have time to wait for trees to grow, he needed more timber right away, which meant
he needed more land. To the west of the Wellington holding was a large mountainous
area full of woodland that had been inherited by an absent yet wealthy French emmisary.
Garren ended up buying the entire 1800 acre holding at nearly twice its market value
however he felt the production would outweigh the cost over time.
Garren was also
able to capitalize on part of the soil conservation program in which public grants
were given for forest replinishment thus offsetting the land costs.
*
Phase
two of Garrens plan was the railroad, not so much with building them, but the ability
to use them. Garren propositioned his father in law with investing on independent
railways in the west and Garren would use these railways exclusively for transport
of all his timber. Algier Cauley expanded on this notion buying 3 independent railways
that would cover most all the pacific northwest and all the way back to the midwest.
Garren would get a generous cut rate shipping price at 30 cents on the dollar based
on full shipments and Algier Cauley would receive a 15 percent cut of the profit
on each shipment , the agreement would last for a period of 10 years and was very
user friendly for Garren however Algier Cauley liked Garrens business savvy and wanted
to see him succeed.
**
Phase three of Garrens plan was land leasing and captial
investment. Garren was able to obtain thousands of acres of new timberland in the
north and leased the timber rights, replenished the stock and had both a waterway
as well as railways to transport the timber, this once again allowed him to expand
the markets for his business without having to bear the cost of the land itself,
it also allowed Garren to invest in retooling the timber mill, add a second mill
at Wellington and also build a lumber mill northward near the leased acreage.
*
Within
5 years time, Garren had better than tripled revenues for the Wellington Timber company,
he employed more people than ever before and was the talk of the town.
Garren's
education, drive and business savvy had served him well, but he would face his first
real crisis soon thereafter.
Here's Norrine
at the front study of the Wellington Estate 1923
The next few years would bring difficulty
to Garren and Norrine when in 1913 Norrines mother passed away, Norrine miscarried
what would be their second child that same year, then in 1914 Irma Wellington passed
away followed by the passing of Norrines father Algier in 1915.
Norrines older
brother Reinhart inherited the railway lines from his father, Reinhart was not close
to his sister or Garren and upon his taking over immediately suspended the previous
agreement between Algier and Garren.
Reinhart had some railways of his own and
had secured much higher rates for shipping and informed Garren that the new rate
would be 80 cents on the dollar, which was still a discount in Reinharts mind. This
infuriated Garren and he couldve sued his in law for performance of the contract,
but Garren chose not to do this and agreed to Reinharts price, at least for now,
yet Reinhart may have been better to have Garren sue him as Garren would take a more
tacit approach that would spell disaster for Reinhart Cauley.
**
Garren initially
harvested heavy timber holding nearby and paid Reinhart for the transport but Garrens
biggest customer demands were to the north at this time thus he focused on harvesting
the leased land to the north utilizing waterways to transport the timber. The cost
difference was marginal but Garrens objective was to bleed the revenue away from
Reinhart, in fact Garren had moved over 40 percent of his transport needs within
the first year. Garrens next move was an agreement with one of Reinharts competitors
with Garren in essence leasing the railway company for additional transport routes,
this took another 20 percent away from Reinhart.
Finally in 1917 the United States
declared war on Germany and Garren wasted no time securing agreements with the government
for timber supply and Garren was now also able to secure timber transport with the
government propped Pacific Union Railway at a rate of 50 cents on the dollar based
on volume; Garren was not obligated to use any particular amount of Reinharts rail
service during the 10 year period, the agreement only applied when Garren needed
the transport and Garren no longer needed the transport, gone for Reinhart was the
80 cents price and gone was the 15 percent cut of the profits.
Reinharts greed
cost him dearly as he could not secure any significant railway business during this
time while Garren was on the verge of monopolizing the entire Pacific west timber
industry.
In 1919 World War I ended with the Treaty of Versailles. Garren dominated
the timber industry and had turned the tables on his brother in law Reinhart.
Garren
later suggested that Reinhart accept an in kind buyout offer from Union Pacific to
which Reinhart eventually did, at a rate of 23 cents on the dollar.
Here's
a photo of