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Society for Establishing Useful Manufactures facts for kids

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Great Falls of the Passaic River
The amazing Great Falls of the Passaic River, showing the old turbine building from 1911.

The Society for Establishing Useful Manufactures (or S.U.M.) was a special company started in 1791. Its goal was to help build factories and industries along the Passaic River in New Jersey, USA. This company managed the powerful Great Falls of the Passaic River. They used the waterfall's energy to power mills. This helped the city of Paterson grow into one of America's first big industrial cities.

Over 150 years, the S.U.M. helped the area's industries change. First, they focused on cotton factories. Then, they moved to steel production. Finally, silk manufacturing became very important. Many historians see the S.U.M. as an early example of a public–private partnership. This is when a government and a private company work together.

History of the S.U.M.

Alexander Hamilton's Big Idea

The idea for the S.U.M. came from Tench Coxe. He was an assistant to United States Secretary of the Treasury Alexander Hamilton. Coxe convinced Hamilton that a special factory town could be built. Hamilton had seen the Great Falls of the Passaic River in 1778. He imagined it as a perfect spot for planned factories. The powerful waterfall could provide energy for machines.

New Jersey officially approved the S.U.M. company under Hamilton's guidance. Their job was to use the falls for this new city. Hamilton called it a "national manufactory." The company didn't have to pay property taxes for ten years. The S.U.M. then founded the city of Paterson near the falls. They named it after William Paterson, who was New Jersey's governor.

Hamilton hired civil engineer Pierre Charles L'Enfant to design the water system. L'Enfant also designed the layout of Washington, D.C. He created a system of canals, called raceways. These raceways would carry water to power the watermills in the new town.

Giving the S.U.M. special tax breaks was a new idea. It became a model for other public-private projects later on. Some people, like George Logan, didn't like these special benefits. They worried it would create social classes like in older countries.

How the S.U.M. Changed Its Plan

Paterson SUM middle mill race jeh
Middle mill race of three. The top race is on the left.

By 1796, the S.U.M. realized building its own factories was too slow. The money they made wasn't enough to cover their starting costs. In 1791, they hired Thomas Marshall. He claimed to be a factory expert from England. But his efforts were not successful.

So, the S.U.M. changed its plan. They started to promote real estate development instead. They leased land to other private companies. These companies could build their own factories. But the S.U.M. kept control of the falls as the power source. They owned the dams and raceways that supplied water to the factories.

This new plan worked very well. Managing the falls became a great way to make money. The area grew into a busy mill industry center. By 1815, thirteen water-powered cotton mills were running. Over 2,000 workers were employed there. Because of the S.U.M.'s success, Paterson's population grew from 500 in the 1790s to over 5,000 by 1820.

In 1830, the S.U.M. had a disagreement with the Morris Canal and Banking Company. This company was building a canal to connect the Passaic River to the Delaware River. The Morris Canal Company built a dam on the Rockaway River. This dam took water for their canal. It reduced the water flow over the Great Falls. This threatened the S.U.M.'s businesses. A court decision allowed the Morris Canal to be built. But it also made sure the falls still had enough water.

In 1834, a publisher named Thomas Gordon described how the S.U.M. used the falls. He wrote about it in his book, Gazetteer of the State of New Jersey:

A dam, about 4 and a half feet high, was built above the falls. It was strongly bolted into the riverbed rock. This dam turned the water into a canal. The canal was dug into the rock of the riverbank. From there, the water flowed into a basin. Through strong gates, it then supplied three canals. Each canal was on a different level, one below the other. This gave the factories on each canal a drop of about 22 feet. The amount of water could be controlled easily. The S.U.M. paid for keeping the dam, canals, and gates in good shape. They also managed the water flow.

How Local Industries Changed Over Time

During the 1800s, the successful factories attracted many immigrants. People from England, Scotland, Ireland, and other parts of Europe came. Many of them had experience working in mills. Some skilled workers even brought illegal copies of British factory designs. These designs were then used in Paterson.

By the 1830s, the textile mill industry in Paterson faced new challenges. Larger, steam-powered factories in New England became more powerful. So, Paterson's factories started making other things. They shifted to producing steel and locomotives (train engines). The Rogers Locomotive and Machine Works started in 1832. It was one of the first successful companies.

By the time of the American Civil War, making steel and locomotives was the main industry. In the 1880s, Paterson became the center of America's silk industry.

The S.U.M. continued to operate into the 1900s. But as factories left the area, the company declined. In 1945, the city of Paterson took over the S.U.M.'s charter and property.

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