Fulton Jockeys for a Stronger Position in His Steamboat Enterprise

Robert R. Livingston, the first chancellor of New York State and negotiator of the Louisiana Purchase, was enthralled with the concept of invention. Claiming that to be his “hobby horse,” he held several patents for a means of diminishing the friction of spindles on millstones and for manufacturing paper from riverweed. However, Livingston was talented neither in the theory nor practice of mechanics, and his inventions generally did not work. Thus, he collaborated often with others who had the scientific experience to implement his visions.

One such idea was steam navigation and one such collaborator was Robert Fulton, with whom Livingston became acquainted with after his arrival in Paris in 1801. Livingston was there to fulfill his duties as minister to France under President Thomas Jefferson. Fulton, having originally landed in Europe to study portrait painting, had for the previous ten years concentrated his efforts on engineering, earning the respect of the international science community for his improved methods of raising boats on canals and for his pioneering in submarine design. While still in Paris, the two became deeply immersed in steamboat experimentation. They built a steamboat on the Seine in Paris during 1803, but it sunk. The engine and boiler were fished out of the river and put in another boat.. Though she moved through the water and was considered a wonder by those who saw her, she was a disappointment to both Fulton and Livingston. They determined, when they returned to America, to make another effort with a larger boat to sail on the Hudson River. Essentially, Livingston would supply the money and Fulton would do the work. Livingston had persuaded the New York State Legislature to give him the exclusive privilege of “navigating all boats that might be propelled by steam, on all waters within the territory or jurisdiction of the State, for the term of twenty years,” so they started out with the asset of a very valuable monopoly.

Their agreement was formalized into a partnership, one that would last the remainder of Livingston’s life. The two would be equal partners, but Livingston would advance the funds to build the steamboat. If the enterprise failed, Fulton would eventually have to reimburse Livingston for half the costs. If the steamboat operation succeeded, Fulton would be put his time into obtaining a patent and would receive “reasonable expenses” as his compensation over and above his partnership share. The agreement ensured that neither partner would lose control of their shares to outsiders, and also stipulated that if either partner died, an heir holding all of his shares would be considered an active partner. However, should there be two heirs, the surviving original partner would be given two votes to balance the joint heirs. An agreement of such depth, planning for future contingencies, including death, was unusual for the time.

In July of 1807 Livingston and Fulton’s dream of a steam-powered boat was realized. The first successful steamboat ran from New York to Albany, meeting the requirements of the New York State grant and perfecting their monopoly. Thr following winter, the steamboat was completely rebuilt. The hull was made wider, a new boiler installed, and accommodations for passengers were added. Scheduled steamboat service on the Hudson River began in 1808. Before long, five boats, including a ferry to New Jersey were running on the Hudson under Livingston’s grant. Another boat was soon plying the Mississippi, and additional boats were under construction.

Robert Livingston died in February of 1813 after experiencing a series of strokes. Even though he and Fulton possessed a monopoly on New York State’s waters, they were continually building new steamboats and had accrued nearly $167,000 in partnership debts. With his partner’s death, Fulton was faced with the challenge of negotiating Livingston’s assets with his heirs, and relations with Livingston’s family members were abrasive. Moreover, Livingston’s widow and two sons-in-law were obliged by the estate to divide Livingston’s share into three equal parts, giving none of them the twenty shares necessary to be a voting partner. Dr. William Wilson was the executor of the Chancellor’s estate. A friend of the family, Dr. Wilson also was used as an administrator of the family’s landed property.

The Livingstons owned an iron foundry, and Fulton once stipulated that “iron work in the best manner” be used to build their steamboats. It is apparent that Livingston supplied iron from his foundry for the construction rather than buying it on the open market, and that Livingston was given credit for the iron’s value from Fulton in order to assess their respective partnership distributions. After Livingston’s death, an issue arose as to who the final allocation of funds for the iron, and Fulton bargained for both the money and additional leverage with his heirs. Here Fulton supplies Wilson with the necessary papers to indicate that the iron credit was to be charged back to the estate.

Autograph Letter Signed, New York, November 18, 1813, to Doctor Wilson. “The estate of the Chancellor [Livingston] is to be charged with the Iron credit having been given by me to him in Settling our accounts. You will please to show the annexed to Mr. Edward P. [Livingston].” Wilson penned on the overleaf: “Mr. Livingston will look to the enclosed letters and inform me if anything is necessary for me to do. W.W.” Research indicates that in the past decade, just eighteen Fulton documents and letters have reached the auction marketplace, and just one related to his attempt to maintain control of the steamboat enterprise and its finances.