Presque Isle: The Star City

Arthur Robinson Gould was born in East Corinth (a small town just north of Bangor) on March 16, 1857. His father (Robinson Gould) was a farmer and Arthur worked the farm and butcher business along side his father and brothers, Charles, John, and Walter.

His father passed away in May of 1872 when Arthur was only 15. His mother then decided to lease out the farm for which Arthur was happy as he did not enjoy farming.

Arthur’s first job was at the age of 14. He worked as a water boy for the construction crew of the European and North American Railroad.

Upon the death of his father, Arthur headed west to Ohio to seek his fame and fortune. What he received instead were some great lessons in life as he saw first hand what it was like to deal with men who were not honest or ethical.
He spent the last $780 of his savings to buy a harness shop only to then discover there was a $2,500 mortgage on the business.

He returned to Maine to learn that the farm lease had not gone well and resumed his father’s butcher business with a partner. During this time, he fell drastically ill with Typhoid Fever. The fever did not break for 31 days. When he recovered, he found out that his partner in the butcher business did not think he would recover and took off with all of the cash and disposable assets of the business.

He also invested $1,000 in a copper mine. It turned out that it was too expensive to mine and he lost that investment as well.

Arthur’s brother, Walter, stayed in Bangor and, in 1886, went to work for AL & RC Boyd on Hammond Street selling candy and fruit. After a few years learning the business, Walter decided to go into business for himself.

In 1875, Arthur went to work for his brother as a traveling salesman. Arthur was very good at this job. He was a good salesman, made friends easily, and gave good, sound business advice to his customers. His customers knew that they would receive fair treatment from Arthur and he assisted them in any way he could. He was known for being a modern thinker and far sighted. Because he was so good at his job, in 1878 his brother extended his coverage area to as far north as Fort Kent. This route also included Presque Isle.

Gould traveled to his customers’ sites by cart and horse. The trip from Old Town to Fort Kent would take five weeks round trip.

Gould’s brother, Walter, decided to sell his business while business was strong and he could maximize his profits. Walter was approached by a business man by the name of Okell to offer Drummond Tobacco products. As Walter had already decided to sell, he declined. Okell then asked if Arthur would be interested in selling the tobacco products since he had a well established sales route. Walter assured him that Arthur could sell any thing. Arthur was so successful in selling the tobacco products that Okell actually tracked him down to be certain the orders were real.

At that point, Walter agreed not to sell his business, but would become an inactive partner and Arthur would take over the business. The name of the business was then changed to A.R. Gould and Company.

Business continued to prosper. In 1884, Gould sold the candy portion of his business and focused on the sale of fruit, nuts, and tobacco products.

While working in Bangor, Gould met 19-year old Mary Frances Donovan at a series of dances. He began courting her and they were soon married.

Arthur’s friend, Harry Merrill, was in the banking business. Merrill respected Gould’s business acumen and offered him a partnership in the banking business. Merrill wanted to expand into Iowa, but Gould wished to remain in Maine.

Gould knew from his sales experience in Northern Maine that the area was in need of a bank, especially here in Presque Isle. He accepted the partnership with the intent on establishing a bank in Presque Isle.

Gould sold a portion of his business to his brother, John, keeping the remainder of his business with the intent of taking that part of his business with him as he moved to Presque Isle to keep him occupied until the bank was established.

Before Gould had a chance to re-locate, Merrill called the deal off. He had decided to get married and stay in Bangor. Gould decided to move to Presque Isle any way.

Arthur and his wife, Mary Frances, arrived in Presque Isle on November 20, 1886. Once here, he set up his business in the Stickney store. At the same time, he began a private banking business by lending money in the form of notes. His notes were for the term of one year, payable on November 1, with ten percent interest.

The banking business was so profitable that Gould intended to sell his tobacco business and go into banking full-time.

However, Gould had a chance meeting with Charles F.A. Johnson who was in the lumber business.

Johnson was thinking of retiring and thought perhaps Gould would be interested in his business. Gould asked for a tour of the mill. After the tour, the two stopped to sit on a log and talk. Gould felt that the mill was in poor shape and needed quite a few repairs and improvements. In light of these factors, he rejected Johnson’s proposal. Gould made a counter proposal and told Johnson if he accepted Gould’s offer, Gould would pay him in full in cash the next morning.

This was an unusual offer as most business men did not have that kind of cash available and the offer surprised Johnson. Gould further told Johnson that the offer was only good while the two sat on the log. Johnson accepted the offer and Gould was now in the lumber business.

The mill was powered by water from the dam across the Presque Isle Stream. Shingles, clapboards, and laths were shipped to the Boston market while boards and 2’ X 4’s were sold locally. At the time of purchase, the mill was equipped with a rotary, planer, lath, clapboard, and two shingle machines.

After being in business for a year, Gould replaced the saws and trimmers being used with new ones which substantially increased the mill’s output.

The Presque Isle Electric Company, formed in 1887, was located across the Stream and harnessed a small amount of electricity from the water rushing over the dam as well.

Gould suggested to them that, since the supply of water was unpredictable, they should move their operations to his side of the Stream and use his sawdust and waste as an energy source thus benefitting both businesses. The electric company did just that in 1891.

The electric company was still struggling to turn a profit and asked Gould for advice. He suggested that they could increase production by installing an additional generator. At the time, the company could produce power for 600 lights for which they charged 90 cents per light. The additional generator would furnish an additional 1000 lights.

The electric company asked Gould to take over the business as General Manager. He initially declined as he did not feel he knew the electric business. However, the company did not give up and kept asking.

He eventually agreed providing he was allowed to make the changes he felt were necessary. Gould increased the capacity of the electric company and cut rates in half. This increased the profits of the company as now more people were able to afford electric lighting for their homes and businesses.

Within two years of Gould taking over, the company was able to pay dividends.

In April of 1904, while Gould was in Bangor on business, he happened to read the morning local newspaper only to discover that while he had been gone, his mill had been completely destroyed by fire.

Instead of boarding his train that day, he immediately began making plans to restore the plant.

In 1905, while searching for lumber, he found a holding ground for lumber up on the Aroostook River towards Washburn. He had the idea of building a railroad from Presque Isle to Washburn to open up a new supply of timber for the mill and at a cheaper price. He approached the citizens of Washburn with the idea. The idea was a hit and pledges of aid and stock subscriptions began coming in.

Gould thought about the railroad idea. He felt that coal would be too expensive and thought an electric railroad was the way to go. He approached the group that controlled the Aroostook Falls in New Brunswick.

The Bangor & Aroostook Railroad saw this as a threat to business and expanded their lines through Washburn, Mapleton, Perham, Woodland, New Sweden, Wade, Castle Hill, and Chapman.

Gould was not swayed. He arranged for start-up capital for the power plant at Aroostook Falls and raised $20,000 from the people of Presque Isle to build a railroad building.

In the spring of 1906, building began on a power plant at Aroostook Falls in New Brunswick to supply much-needed power to northern Maine and New Brunswick. This was considered one of Gould’s most successful accomplishments. During the development of this plant, Gould took payment only for his expenses. The power plant opened in October of 1907. Members of the Maine and New Brunswick Power Company voted to give Gould $30,000 worth of treasury stock in the company for his services as well as a promotion.

Shortly after the completion of this project, Presque Isle Electric Company and the Maine and New Brunswick Power Company merged. Gould was paid $50,000 in the merger ($80 per share). In addition, Gould agreed to stay on and manage the company.

In 1926, a group of Chicago business men made a bid to buy the power company. Gould set the price at $2,000,000, or $400 per share. The offer was accepted.

In 1907, Gould provided the seed money and encouragement to replace the wooden bridge originally built across the Presque Isle Stream on State Street by Presque Isle founder, Dennis Fairbanks, with one constructed on concrete.

On July 1, 1910, the Aroostook Valley Railroad made its inaugural run between Presque Isle and Washburn. The line originally ran 10.8 miles from Presque Isle to Washburn. In 1911, an additional 11.3 miles were laid to reach New Sweden. With the approval of 7.13 miles on June 29, 1912, the city of Caribou was joined with the AVR and the line grew to service over 32 miles of the Aroostook County area.

The financing of the AVR was done through the issuance of stocks and bonds, which were paid off in 1952. Normal operations called for a train to make one round trip per day between Presque Isle and Caribou.

On July 1, 1910, the Aroostook Valley Railroad made its inaugural run between Presque Isle and Washburn. The line originally ran 10.8 miles from Presque Isle to Washburn. In 1911, an additional 11.3 miles were laid to reach New Sweden. With the approval of 7.13 miles on June 29, 1912, the city of Caribou was joined with the AVR and the line grew to service over 32 miles of the Aroostook County area.

The financing of the AVR was done through the issuance of stocks and bonds, which were paid off in 1952. Normal operations called for a train to make one round trip per day between Presque Isle and Caribou.

Although its primary purpose was to transport freight and goods, the Aroostook Valley Railway boasted a small passenger service. The passenger station was located on the corner of what is now Riverside Drive and State Street along the edge of the Prestile Stream.

In 1921, Gould built a two-story office building on the northwest corner of Second and State Streets to house his electric company and the Aroostook Valley Railroad offices.

Gould’s original plan was to have the railroad span 111 miles across the top of Maine. He has already secured the cooperation of the Canadian Pacific Railroad to guarantee the interest on bonds to pay for the project as well as the agreement of landowners for right-of-way.

The route was to go from Washburn to Lac Frontière where it would connect with the Quebec Central Railroad.
The survey for this planned route cost $110,000.

The World Wars put a damper on this grand expansion plan.

Gould sold his controlling interest to the Canadian Pacific in the late 1940s for $225 per share and agreed to stay on for a time as President. The Canadian Pacific discontinued use of electricity and switched to diesel.

As roadways improved, however, the needs for passenger services declined. Passenger service was discontinued in 1946. The last freight run was made in April of 1996. The engines and passenger cars were sold to collectors and the track lanes are now snowmobile trails.

Gould served in the Maine State Senate from 1921 to 1922.

During the summer of 1926, locals gathered at the Perry Opera House. Washburn attorney, Andrew “Jack” Beck and local attorney, Charles Daggett, spoke about Gould’s accomplishments and how he would be well qualified to run for the U.S. Senate.

His opponent, Fulton Redman, spent most of the year in New York and summers in Bar Harbor. He was also an avid supporter of the Ku Klux Klan.

In September of 1926, he was elected to the U.S. Senate as a Republican to fill the vacancy left when Bert M. Ferland passed away. He served in the U.S. Senate from November 30, 1926 until March 3, 1931. During his term in the U.S. Senate, Gould chaired the U.S. Senate Committee on Immigration.

While serving in the U.S. Senate, Gould fought hard and effectively for the benefit of potato farmers while serving as a member of the Committee on Agriculture.

One of his efforts paid off when he was instrumental in obtaining an increase on the tariff on Canadian potatoes entering the United States. This effectively assisted local farmers by reducing Canadian competition in the potato market.

While serving in the Maine State Senate, Gould chaired the Committee on the State School for Boys in South Portland. He felt that the school was badly needed.

He drafted legislation to bring the school to fruition. The bill was vetoed by the Governor.

Near the end of the legislative session, Gould saw his chance to re-introduce the bill. It passed the legislature. Gould personally took the bill to the Governor and told him that he so strongly supported this bill he would pay for half of the construction personally if the Governor signed the bill.

The bill passed. Gould personally oversaw the construction and paid for half.

The Arthur R. Gould School is on Westbrook Street in South Portland in the Long Creek Youth Development Center, formerly known as the Maine Youth Center.

Gould purchased 6,500 acres of timbered land on Hobart Hill, about four miles southwest of Presque Isle. Some of the timber was cleared and sold to the lumber company. Gould then built a cottage on the land.

Gould was very fond of the woods and enjoyed studying the native plants, flowers, and wildlife.

Arthur Gould passed away on July 24, 1946. He was interred in the Mount Pleasant Cemetery in Bangor.

Arthur and Mary Frances Gould had two sons, Arthur and Louis, and two daughters, Mildred and Marie.

Sources:

Graves, Richard A. III. Forgotten Times - Presque Isle’s First 150 Years. Presque Isle, Maine: Northeast Publishing, 2006.
Hall, Oliver L. The Man from East Corinth. Augusta, Maine: Kennebec Journal Print Shop, 1941.
http://en.wikipedia.org/wiki/Arthur_R_Gould