A.R. Gould: His accomplishments made city prosper

Dick Graves, Special to The Star-Herald, Special to The County
17 years ago
    Much of the text which you are about to read concerning Arthur Gould’s life is derived from the book, “The Man From East Corinth,” written in 1941 by Oliver L. Hall. I have attempted to extract parts of Gould’s history from the book, which I considered to be of prime importance and perhaps most interesting to the readers. Nowhere on the planet Earth (except from this book) can one derive such information on the life of Gould, which includes his business relationships and his numerous achievements.

Presque Isle was supremely blessed with the arrival of Gould and his wife, Mary Frances, in 1886 after deciding that Presque Isle might be the place to continue his business dealings; he had spent much time there working for his brother and, despite the harsh winters, liked the area. Besides, he thought, the area needs me.
Anyone who has more than a trifle interest in the history of Presque Isle should take it upon his or herself to hunt down a copy of “The Man From East Corinth” and read it. Hard to say how far our fair city would have or could have come if it were not for Sen. Gould.
No local history of P.I. could be completed if only mere mention of Arthur R. Gould were made. Yes, there’s been a handful of “lions” pass through our village in the last 200 or so years, but only one has left a glittering trail of accomplishments far beyond the abilities of most. Bridges, trestles, trains, lumber, electricity … all the “brain children” of one man. Despite his business endeavors and connections, Gould found time to serve the communities he represented in Washington as a U.S. Senator. No one person has done so much for our community; he made much of it possible for us to be here and to prosper as we have. His successes allowed us to be successful, his accomplishments allowed us to further accomplish what was required to eventually be a highly prosperous community. I fear the knowledge of Senator Gould’s success are mostly forgotten. This is my attempt to re-establish the memory of “The Man From East Corinth.” This is his story.
Arthur Robinson Gould was born in East Corinth, Maine, just a few miles north of Bangor in 1857. His father operated a successful farming operation with cattle, sheep, hogs and of course, horses. Along with raising critters, which provided food in abundance for the family, his father also drove cattle and sheep to nearby Bangor for shipment to other markets. A slaughterhouse was kept behind the farmhouse for home and commercial activities. Young Arthur, along with his brothers, worked beside his father and, although he truly didn’t like farming, learned all aspects of farming and much about horses.
Arthur was only 15 when his father passed on. They had had a very close and devoted relationship. In the next few years, Arthur left the farm after the farm was leased out, relieving him of his farming obligations and went west. He experienced a series of business failures mainly due to what were described as rogue partners who somehow swindled him out of monies earned and saved. In the meantime, his brother, Walter, had sought his fortune in Bangor and in 1866 entered the employ of a store on Hammond Street which sold candy and fruit. A few years later, Walter made the decision to go into business for himself and did so eventually buying out another business. He later sold confectionery, tobacco and fruit and did well.
In 1875, Arthur went to work for his brother selling candy and tobacco. He became a traveling salesman vending his wares up north along the Penobscot River through Lincoln, Lee, Springfield, Kingman and Mattawamkeag. Arthur proved to be a superb salesman making friends easily, and offering good and sound advice to storekeepers. He was farsighted and eventually the people he did business with came to rely on his advice and good judgment. Walter realized his brother’s talents and extended his route to far northern Maine to Fort Kent. His mode of travel was a cart and horse. He knew horses well, growing up on his father’s farm, which had many. His route would take five weeks from Old Town to Fort Kent. Winters were especially brutal and often Arthur had to shovel his way out of snowdrifts to reach his next point along his appointed rounds. That route included Presque Isle.
Together, with his brother’s successes along the Penobscot and beyond, Walter’s business flourished. But hearing of newly planned competition around the area, which could eventually eat into his business, coupled with his conservative nature, Walter made the sound business decision to sell his operations while business was good and to maximize his profits while time was on his side. At the same time, Walter was approached by a large tobacco distributor wishing that he could take on this fine line of tobacco, but Walter had to refuse; his business was being sold, his brother up north cleaning up his territory. The gentleman named Okell, who represented the Drummond Tobacco Co., asked if perhaps his brother would be interested in selling the tobacco line; it was obvious that would be a good move because Arthur’s route had been established north of Old Town all the way to Fort Kent. Walter informed Okell that his brother could sell anything, anytime. Arthur accepted the lucrative offer made by Okell – one-half of Arthur’s salary plus expenses, if he carried the Drummond line. Arthur did so well at selling the tobacco line that his boss, Okell, became suspicious and chased him down at Molunkus to verify the tremendous number of orders which were rolling in.
The orders were verified much to the delight of Okell and, at that point, offered him an even more lucrative proposal of a full-time job, $1,200 a year salary plus expenses in the Boston area. Because of their different business attitudes, Walter’s very conservative and non-progressive nature when business was good and Arthur’s very progressive attitude towards business, Arthur and Walter reached an agreement: The business would not be sold, Walter would step down and become a passive owner while Arthur would step up and operate the business, but only with a free hand. They agreed.  Walter moved on to California and the firm became known as the A.R. Gould and Co. Walter had all the respect of his brother and knew he could fully trust his business decisions.
Business prospered. In 1881, Gould rented a building on Essex Street. The building contained 3 floors and to each floor he assigned a different piece of his operation: the first floor was occupied by his candy department, the second for storage and the third was reserved for candy manufacturing. In 1884, he sold his candy operation and devoted his time to the sale of tobacco products, fruit and nuts.
During his business years in Bangor, he met a young 19-year-old girl named Mary Frances Donovan. They married soon after and set up housekeeping on Essex, but soon purchased an interest in a home on Fourth Street. There they lived until their move to Presque Isle in 1886.
Arthur had a friend, Harry Merrill, who was in the banking business. Merrill liked Gould and his business acumen and proposed that perhaps Gould would like to enter the banking business with him. Merrill was talking about expanding to the state of Iowa, but Gould liked his birth state and expressed a desire to remain. Having spent much time way up north while working for his brother, Gould knew that the Aroostook area was in need of a bank, especially a place called Presque Isle. He knew Presque Isle well and liked the area, despite its harsh winters. He sensed that Presque Isle was ripe for expansion and a bank would be just the thing for that expansion. After accepting a partnership with Merrill in a Presque Isle banking venture, he sold a portion of his business to his brother, John, deciding that he would take the remaining portion of that business with him to Presque Isle to keep him busy until the banking project was completed.
Before Gould and his wife could make a move north, Merrill informed him that the deal was off due to his up-and-coming marriage and his decision to remain in Bangor. Another setback for Gould, but he had made his mind up to go to Presque Isle in any case; nothing could now deter him from that move. He and Mary Frances arrived in Presque Isle in November of 1886 with little or no plans to establish a bank. He had done well financially and had no intentions of doing less in the next phase of their lives.

The Lumber Years

Gould and his wife arrived in Presque Isle one November day in 1886 as Mother Nature gently laid two inches of snow at the ground as a welcome mat. Certainly, Mr. Gould was not an unknown to the villagers; he had done tobacco business with the merchants in the years shortly before. He and his wife brought with them a carload of goods from his portion of the Bangor operation. Without delay, he rented space in the so-called Stickney store and began doing business. The Stickney store was located on the west side of Main Street just south of the intersection of State and Main and apparently was the only brick building in town. At the same time he set about to continue his tobacco business, he engaged in the private banking business. He lent money in the form of notes; all payable at the end of one year with a 10 percent interest and all bore a date of Nov. 1. The money lending trade prospered so much, in fact, that he made his mind up to sell the tobacco business and go full force into the lending business. Fred Barker owned a grocery store right on the northeast corner of State and Main (space once occupied by the Northern National Bank); Gould rented space there for his new office.
In the spring of 1888, Gould was met on the street by a gentleman named C.F.A. Johnson. Johnson had prospered in the lumber business and, in conjunction with Thomas Phair, had owned the building on the opposite corner. The mill Phair and Johnson had owned together was on the east side of the river just north of the present-day State Street Bridge. Phair and Johnson had recently divided up their commonly held property, which included another mill in Washburn. Johnson took the Presque Isle mill, while Phair took sole ownership of the Washburn property. Johnson had been contemplating retiring and figured Gould would be an interested party in getting into the lumber business. Johnson informed Gould that he was willing to sell the mill at a fair price and asked if he might be interested. Gould invited Johnson to walk down to the mill for a short inspection and, afterwards, talk the matter over.
It certainly wasn’t apparent at the time, but this chance meeting of the two men was the first step into an empire of lumber, electricity and railroading. They sat down upon a log after the short inspection and Gould asked for Johnson’s proposal. His proposal was not at all satisfactory; the mill was in poor shape and needed many repairs and improvements. Johnson asked for a counter proposal; it was many thousands of dollars less than Johnson had asked for. Gould continued that if he accepted the offer, he (Johnson) would have his cash in full in the morning. Cash payments were a bit uncommon in those days; few businessmen had that kind of money hanging around. Johnson was taken by surprise. Gould added that he (Johnson) had only a very short time to accept the offer because the offer was good only as long as they sat on the log; the offer would expire if not accepted by the time Gould stood. The offer was accepted. Gould was in the lumber business.
The Aroostook Lumber Co., as it was called, was operated by waterpower from the small dam, which crossed the Presque Isle Stream. All short lumber (shingles, clapboards and laths) was somehow shipped to Boston, no doubt, on the Canadian Pacific Railroad on Academy Street. The long lumber (boards and 2x4s) was sold to the locals. After a year of operation, Gould replaced old saws and trimmers with new, increasing substantially the output of the mill.
An electric company, the P.I. Electric Co., had already been formed in 1887. It was on the opposite side of the stream; water rushing over the dam operated the generators, which in turn produced a small amount of current. Gould suggested that, because the supply of water was unpredictable and because he had lots of potential fuel in the form of sawdust and waste, that the electric company come across the stream and install a steam plant; both enterprises would benefit. The company accepted the plan and did, in fact, move across. But despite the fuel being supplied, the electric company continued to lose money. The dynamos were at capacity, but could only furnish 600 lights. The company officials became discouraged from the lack of profit. They asked Mr. Gould for advice. He suggested they install another alternator to increase production … that would service 1,000 lights, lower cost per unit and bring more customers on board. They asked if Gould would take over the electric operation, but he admitted he didn’t know the business and perhaps wasn’t qualified to do so. They asked again and finally Gould accepted the position of general manager, but only on the condition that he was allowed to make the changes he thought necessary. They accepted.
Gould quickly increased capacity and in doing so, cut rates in half. This afforded many more the opportunity to acquire electric lighting for their businesses and homes. Gould at the same time was building small homes for his employees on lots he purchased for $50. Gould furnished the framing and buyers completed their homes with their own labor. One day a stockholder offered to swap one share of stock (worth $500) for a partially completed house and lot. Gould accepted the swap. Other discouraged stockholders asked for the same deal and before it was over, Gould had acquired nine-tenths of the total outstanding shares of stock of the electric company. As Gould continued his improvements, in two years the company was paying dividends.

The Gould Electric and AVR Years

One of Gould’s most successful accomplishments was the development of the power plant at Aroostook Falls in New Brunswick. In Gould’s hands, this engineering feat was accomplished in short time. Actual work on the plant, which when finished would supply much-needed electric power to northern Maine and New Brunswick, began in the spring of 1906. Power was turned on in October of 1907. Gould had devoted most of his time to the project and for all the devotion of time and genius, Gould had only been paid for his expenses, but during a meeting of the Maine and New Brunswick Power Co., members voted to give Gould $30,000 worth of treasury stock in the company in payment for his services and promotion.
Shortly after, the Presque Isle Electric Co. and the Maine and New Brunswick Power Co. merged. Directors of the power company agreed to pay Gould $50,000 or $80 per share. Gould accepted stock equivalent and stayed on to handle the company for several years after. In 1926, a consortium of Chicago capitalists made a bid for the power company. A certain Mr. Pierce representing the consortium met with Gould and asked if he’d be willing to sell and what the price might be. Gould responded that the sale would go through at $2,000,000 or $400 per share. The offer was accepted and Gould secured the necessary stock from the stockholders.
Perhaps the major impetus to developing large amounts of electric power to this area was hatched from his notion that sooner or later his (Gould’s) supply of lumber for his mill beside the Presque Isle Stream would be exhausted one day, perhaps even in the short future. His present supply arose from the land close to the shores of the stream.
The supply was finite and now the landowners were charging high prices for raw timber; his future reserve was in jeopardy and Gould knew that at the present high cost of raw material, he would no longer be able to make a profit at the mill. An idea occurred to him in the year of 1905 that would alter the local landscape for the next 40 years. In searching for other supplies of logs, he discovered a holding ground for lumber up on the Aroostook River about 5 miles out of Presque Isle toward Washburn. This was in the very early years at the turn of the century.
His idea was to build a railroad through the woods from Presque Isle to the holding grounds near Washburn; he then could open up new territory for a new supply of timber for his mill and at a cheaper price to boot. He approached the citizens of Washburn about this idea; the idea was immediately accepted and pledges of aid and stock subscriptions followed.
Gould, after contemplating the railroad concept for a time, realized that a coal-fired railroad would be too expensive and certainly unjustifiable for the undertaking. Electric power, he thought, would be more than justifiable. He then entered into negotiations with the party who controlled Aroostook Falls in New Brunswick. This was to be a gigantic undertaking, and in retrospect, could only have been achieved by such a person as Gould. He arranged for start-up capital and hired surveys to be done. Many thought that the project would, in fact, not deliver the necessary amount of power for the scope of the project, but Gould disagreed and continued. He also needed the support of Presque Isle people. That support came in the form of $20,000, a good amount of money back in 1905 or so. This money would be used to support the funding for the building of the railroad, providing the power was available for the Aroostook Falls Project.
The Bangor and Aroostook Railroad, of course, opposed this idea and immediately set out, in order to protect its interests, to build extensive additions to its line through Washburn, Mapleton, Perham, Woodland, New Sweden, Wade, Castle Hill and Chapman. Gould not only would have his railroad now, but had forced the hand of the B&A Railroad to develop other railroad extensions to places they were sorely needed.
With the Aroostook Falls power project completed, Gould had power to run his electric train line from Presque Isle to Washburn, his raw material supply for his lumber mill now secured in conjunction with a new passenger service between the two towns. The opening of the newly named Aroostook Valley Railroad came July 1, 1910 in Washburn. A motion was made for all people of Presque Isle to adjourn to Washburn to help in the glorious celebration. All shops, offices and many houses in Presque Isle were closed. Many rode the brand new AVR railroad to Washburn, while others traveled by teams of horses and a few others by automobile. At about noontime, bands began to play, throngs of people gathered on Main Street, a banner floated across Main Street, which read “Welcome Gould.”
At 2 o’clock in the afternoon, Gould arrived, accompanied by other railroad officials, in his private car. As Gould alighted from his car, the crowd cheered tumultuously. After several speeches by several local and state dignitaries, Gould was escorted to the podium. Despite his reluctance to deliver public oratory, he did, in fact, speak and well he did. He outlined the facts and figures of electric railroad transportation showing that its application was superior over steam.
Eventually, due to passenger service demand, the Aroostook Valley Electric Railroad was extended to New Sweden and later to Caribou. The Aroostook Falls Project, despite the adverse opinion of many when first conceived, continued on to supply the whole Aroostook County with electric power and was and has been one of this area’s greatest and proudest achievements.
Thirty-six years later, due to the popularity of automobiles, the AVR RR discontinued its passenger service in 1946. Sometime in the late 1940s, the railroad was purchased by the Canadian Pacific and the electric mode was discontinued in favor of diesel locomotion. The AVR passenger station on Riverside where the Red Cross was recently located was closed and the station was granted to the city to use as needed. The tracks, which ran from the passenger station to the engine house on Dyer Street, were dismantled; the cement stanchion which supported the tracks as they crossed the river is still standing as if symbolizing a sturdy tribute to a once viable and healthy railroad, which vastly influenced the early development of Presque Isle and surrounding areas.

The Political Years

In the spring of 1920, Arthur Gould was inveigled to be a candidate for state senator. Despite his reluctance to spend winters in Augusta and to leave his many successful businesses in Presque Isle, he bowed to the request. He followed with no effort to be nominated or elected. Besides, he had no desire to do public oratory, at which he felt he wasn’t very good. But in September Gould led the ticket for nomination representing the Republican Party. At that time Percival Baxter was governor of the state of Maine, having succeeded the death of Gov. Frederick Parkhurst of Bangor, who had taken ill directly after delivering his inaugural address and died a month later. Baxter had been the president of the Senate.
Gould won his nomination, but not by a landslide; Delmont Emerson of Island Falls lost to Gould by only 14 votes and Leander Tuttle of Caribou by 257 votes.
Gould and Baxter were diametrically opposed on many issues. Baxter believed that government should be responsible and in control of public utilities. Gould firmly believed that the water works, sewer and, in some cases, the town’s own lighting systems should be controlled by private individuals. Gould also believed that government was ill-adapted at running railroads, hydro-electric plants, sawmills and growing potatoes — individuals could, no doubt, do better.
In 1926, U.S. Sen. Bert Fernald passed away. Again, Gould was asked to be a candidate to fill the vacancy for the Republican Party. Percival Baxter, also a prominent Republican and whose governorship expired in January of 1925, threw his hat into the ring. No doubt, most thought, Gould would lose the nomination against such a prominent person as Baxter.
A speaking campaign would not be Gould’s idea of running for nomination; he allowed that he would leave the oratory for others who campaigned on his behalf. At times he would have to approach the podium and speak, but those times were short and to the point. His slogan was “More Business.”
In the summer of 1926, a hometown gathering in Presque Isle took place at Perry’s Theatre on the southeast corner of State and Main streets. After a buffet luncheon, Washburn attorney Andrew “Jack” Beck spoke with deep feeling about Gould’s wondrous local accomplishments and just how qualified Gould would be to be a U.S. senator. Local attorney Charles Daggett then spoke in absolute favor of Gould in his quest to represent the state of Maine in Washington. At the end of the gathering, Gould was introduced as “Aroostook’s choice and the next U.S. senator from Maine.” There was great applause.
Despite Baxter’s great optimism and Gould’s party’s pessimism, Gould himself harbored nothing but optimism; that’s just the way he was in everything he endeavored. Gould won the primary mainly because of the votes harvested in Penobscot and Aroostook counties. Maine voters were amazed by the primary victory; they had given him practically no chance against Baxter.
After the primaries, Gould plunged into the campaign for election. His opponent was an attorney, Fulton Redman, who spent most of the year in New York, summer months in Bar Harbor and listed his voting residence in Ellsworth. Redman openly had the support of the KKK which had a considerable following in Maine at that time. But all was not good at first. There was a charge by a prominent member of the KKK that Gould had exceeded his legal spending limit when running in the primaries. At the same time it was demanded of the U.S. Senate Investigating Committee to look into an alleged bribe given to the premier of New Brunswick by Gould in 1912. Gould denied these 11th-hour charges. Before a hearing, the charges were found unsubstantiated and dismissed.
The following Monday, Nov. 29, 1926, Gould was elected U.S. senator in a resounding defeat for his opponent. Later, he was sworn in by Vice President of the United States Dawes. Gould would serve four years as a U.S. senator. He was once asked if he had ever gleaned a smile from President Calvin Coolidge, also known as ‘Silent Cal.’ Gould remarked, “I’ll be damned if I ever did.”
Gould passed away in July of 1946, at his home on Dyer Street. Sen. and Mrs. Gould were parents of two daughters, Mrs. Mildred Shields of Presque Isle and Marie Wildes of Dallas, Texas; and two sons, Arthur and Louis, plus several grandchildren. Both sons were deceased at the time of the Senator’s death. Charles Eber, grandson-in-law of Gould and husband of Gould’s granddaughter, Maxine, still lives on the western side of the Presque Isle Stream, Gouldville, named after the Senator. Two great-grandchildren, Claudette and Arthur ‘Buzzy,’ were in high school at the same time I attended.
As a last and lasting tribute to Sen. Gould, the new hospital on Academy Street was dedicated and named the A.R. Gould Memorial Hospital in January of 1960.
If more history about the life of Sen. Gould is desired, please pick up a copy of “The Man From East Corinth” by Oliver Hall. The vast majority of my information for this series on A.R. Gould was derived from this source.
Thank you for reading Forgotten Times.
Any comments can be directed to my e-mail me at rag111@webtv.net.