Amber Waves of Grain...

By 1892 there were almost one hundred recognized great Bonanza Farms operating in the Red River Valley of North Dakota and Minnesota. The Amenia and Sharon Land Company stands out as one of the most successful of the Bonanzas, being the first to implement tenant farming on a large scale, and to circumvent outside controlled markets by creating their own subsidiary market operations. This success is due to the management of Herbert Fuller Chaffee, labeled by historian Dr. Hiram Drache as “the king” and “the managing genius” of the Bonanzas.

King of the Bonanza

When his father died in 1892, Herbert Fuller Chaffee inherited the leadership of a company that was in conflict over its goals and strategies. The “western faction”, mostly the Chaffee/Reed family now living in North Dakota, wanted to continue farming, reaping their profits from the fertile soil; the “eastern faction” wanted to realize their profit on immediate re-sale of the company land. In the meantime, H.F. was forging ahead with his own plans for expanding the business into profitable adjunct operations.

He had planned new elevators nearer to the company fields that lay south of Amenia, and now was devising a plan to get a railroad spur to service those elevators as well. The cost of hauling all that grain by wagon was not lucrative, and having ready access by rail would boost his profits. H.F. attempted to secure a deal for a spur line with both James Powers of the Northern Pacific Railroad and with James Hill of the Great Northern Railway. The Northern Pacific had no interest in building the branch line, and the Great Northern was restricted from doing so by a standing agreement with Northern Pacific to build no railroad parallel to the NPRR’s main line. It is told that H.F. was about to leave James Hill's office, with his hand on the doorknob, when Hill spoke to him again. "Mr. Chaffee," Hill said, "it occurs to me that I never agreed not to buy a parallel line."

That was enough for H.F.C. In collaboration with Frank Lynch, a local financier and A&S Land Co. stockholder, he formed the Red River Valley and Western Railroad Company, raised capital, acquired right of way, and built 12 miles of track. He then sold the track and the corporation to Hill for a nice profit.

The ‘eastern faction’ had opposed the new rail line, and continued to demand sale of the lands. The ‘western faction’ would not back down from its commitment to develop the land, and the schism in the company became litigious. By 1895, when the railroad to Chaffee was completed, a formal agreement was reached, and the company split in two. The ‘easterners’ took their share of assets, representing 367 of the original 994 shares, and withdrew. The ‘westerners’ retained the name of the original company along with their portion of assets, equal to 627 shares. Thus, most of the land originally owned by the Amenia and Sharon Land Company was now really a family farm in the hands of the son and grandsons of E.W. Chaffee. The “new” Amenia and Sharon Land Company was ready to enter a new era under the management of the so-called “King” and “Genius” of the Bonanzas.

Glory Days

H.F. implemented immediate changes in the organization and business plan of the company. With most of the stockholders now members of one large family, the increased profits were enjoyed through increased salaries, and instead of sowing dividends back into the company, stockholders began expanding their own personal ventures. H.F. Chaffee also decided it was time to expand the manor house to accommodate his growing family. The renovations were extensive in 1895; and in 1906, as the town of Amenia grew into a thriving village, the manor was renovated again, into a stunning mansion at the edge of the town park.The most significant change, however, was instituting a tenant system of farming. Under Eben’s management, the A & S Land Company had been operated as one big farm with one supervisor and many foremen; the company owned all the equipment and hired and managed all the labor. Under H.F.’s new system, the company farm was sub-divided into smaller units of 320 to 640 acres each. These individual farms were then leased out to tenant farmers who could take the farm which best suited their own labor supply and capital. The company headquarters still furnished their high-quality seed and managed overall crop planning and farming methods, but each tenant farmer was responsible for the labor and teams necessary to get the work done properly, and to return half of its crop to the company. Detailed records were kept for each farm so that any weakness in land or operations could be detected quickly. Each individual tenant farmer had an annual meeting with headquarters to review and settle finances and discuss farm practices before a new year’s lease was entered into. This strict company management, along with the care involved in selecting tenants, allowed the company, and the farmers, to be successful. Many tenants stayed with the company for decades.

At the turn of the century, as other Bonanza farms began to break up and sell off due largely to increasing labor problems and the attending social pressures, as well as to take advantage of the rise in land values, the A & S Land Company was going strong because of its efficient farming system. One problem many Bonanza owners struggled with was finding and keeping farm laborers. It was recognized that this was because, with most Bonanza farms, there was no community in which small farmers could build families. The Bonanza farm owner, with his large house in the middle of extensive land holdings, was “not a social animal with his neighbors”. Much of his social life included “city guests” from Minneapolis/ St.Paul or from eastern cities. Immigrant families were not inclined to move into an area that was left silent and deserted for half the year, as the big landowners left their storage barns in the charge of the foreman and went to spend their winters somewhere else.

The Amenia & Sharon Land Company, with its successful tenant system, was intentional not only about creating a profitable business model, but also about creating community. Safe-guarding the welfare of its tenant families was a primary consideration. “It has been the avowed effort of the Company to develop its farming enterprise on a scientific basis; to make profits for its tenants as well as for itself; to encourage the growth of a community life which should be an honor to the State. The principal stockholders of the Company still live in the same community with their tenants. They belong to the same religious and recreational organizations as do their tenants. Their children go to the same school with tenants’ children.” The little town of Amenia, ND was vibrant with families, children and community activities. The company records show that H.F. and Carrie Chaffee made certain to distribute gifts to all the tenant families’ children for birthdays and Christmas. Carrie, an accomplished musician, gave piano and violin lessons to area children.

Bigger and Better

Besides tenant farming, H.F. Chaffee’s vision for the company also included policies of major expansion. Realizing the need for a better commercial outlet for his grain, and recognizing the profit available in a private commercial market, he interested John Miller, former first governor of the state of North Dakota, to join with him in forming a new company whose purpose was “…the buying and selling of grain… and owning and operating of elevators.” The John Miller Company was incorporated in 1896, with headquarters in Amenia and offices in Duluth, with H.F. Chaffee, Treasurer, and his nephew, Walter Reed, as Secretary.

After becoming a grain broker, H.F. also incorporated his elevator chain, in 1902, as the Amenia Elevator Company, again with H.F.Chaffee and Walter Reed as officers, controlling, in all, 26 elevators in North Dakota, Minnesota and Wisconsin. The first business of these elevators was, of course, company trade, but it was only natural that they should also be open to the public for greater profits, and over the years these elevators were often a greater source of profit than the farms.

H.F. also organized other corporations to handle the business of grain for seed, buying and selling real estate, farming equipment, livestock, handling lumber and coal, managing power and telephone, a hotel, and by 1906, he also got into the commercial milling business, creating the Chaffee-Miller Milling Company of Casselton. This firm was to mill company wheat for commercial sale. Thus, Chaffee, at some point, controlled every aspect of his business, from acquiring and tilling the land and selling seed, to producing, selling and transporting flour. In all, there were thirty-two separate firms and two company towns associated with the Amenia and Sharon Land Company. And the sixty-one separate tenant farms owned by headquarters. The “King” of the Bonanzas had created a glorious realm, and he presided with wisdom, mastery and vigor, often putting in long 80-hour weeks. The company, and the company towns, grew and prospered.

To read more about Herbert Fuller Chaffee and his wife Carrie T. Chaffee, click here for his biography.

CHAPTERS OF OUR STORY

Introduction

Chapter 1: Chaffee Origins

Chapter 2: From the Mayflower to the Ousatonic

Chapter 3: From the Hills to the Plains

Chapter 4: E.W.C. and the A&S Land Company

Chapter 5: Herbert Fuller Chaffee - Genius of the Bonanza

Chapter 6: End of an Age