Howell Works (later Allaire Iron Works)

Howell Works (later the Howell Works Company) was a bog iron-based production facility for pig iron which was established in New Jersey in the early 19th century by American engineer and philanthropist James P. Allaire. It is notable as one of the earliest American examples of a company town.

Allaire purchased the Howell Works property to provide pig iron for his Allaire Iron Works in New York, which was at the time a leading manufacturer of marine steam engines. The Howell Works also manufactured its own lines of cast iron products. Allaire eventually transformed the Howell Works into an almost completely self-sufficient community, with its own housing and food supply for the workforce, its own post office, church, school and company store, even its own currency.

After bog iron was made redundant by the increasing availability of iron ore, Allaire closed the Howell Works and eventually retired there with his family. The property remained in private hands until being bequeathed to the state in 1941. Today, the Howell Works is a registered historic site known as Allaire Village.

Background

James Peter Allaire founded his first company, a brass foundry, at 462 Cherry Street, New York, in 1804. In 1807, Allaire received an order from steamboat pioneer Robert Fulton for brass fittings for the '' North River Steamboat'', the world's first commercially successful steam-powered vessel. Allaire subsequently became interested in marine steam engine technology, and in 1815 he established a plant in New York for the production of such engines, the Allaire Iron Works.

Allaire soon ran into supply problems with his new ironworks. With little demand in the United States for the high quality pig iron necessary for building marine steam engines, the local pig iron industry was in its infancy and unable to supply him with either the quantity or quality he required. The best quality pig iron was imported from the United Kingdom, but high tariffs made it too expensive to purchase.

Allaire's solution was to become a manufacturer of pig iron. In 1821, a friend and business associate of Allaire's, Benjamin B. Howell, began leasing a bog-iron furnace in Monmouth County, New Jersey, which was known as Monmouth Furnace. After Howell informed Allaire of the property, Allaire decided to raise the capital to purchase it. On 27 April 1822, he purchased the furnace along with of the surrounding land from its owner William Newbold for the sum of $19,000. The purchase of the entire property was motivated by the availability of resources for iron-making as well as its proximity to a river passage to New York City.

Allaire's initial capital raising fell through and Newbold promptly sued for the balance, but Allaire was able to refinance. He took full possession of the property in 1823. He renamed the property Howell Works, in honor of Benjamin Howell.James Peter Allaire
, Allaire Village website.

Operational period, 1822-1850

The property purchased by Allaire contained a large swathe of swampland — from which the renewable resource of bog iron was harvested — along with forests to process for charcoal to fuel the bog iron conversion. Allaire eventually purchased an additional of woodland to increase the supply for charcoal making.

Workforce

The basic workforce was divided into three different groups:
*ore raisers for mining the bog iron from the swampland,
*woodchoppers and woodsetters for charcoal production, and
*furnace workers, who included casters and molders.

Because of the area's isolation, Allaire realized he had to provide virtually all the facilities of a small town to satisfy the daily needs of his employees. Consequently, he hired additional artisans: a blacksmith, carpenters, brickmakers to supply bricks for new buildings on the grounds, farmers to grow food and raise cattle, millers, bakers, butchers and so on. In effect, Allaire built an almost entirely self-contained community.

Financial restructure

In 1824, Allaire sold 50% of the Works to his brother-in-law John Haggerty, who in turn sold his share of the business in 1827 to Thomas P. Wallworth. Allaire and Wallworth incorporated the business in 1828 as the Howell Works Company, with a capital of $150,000. By 1833, Allaire was the sole owner once again.Allaire Family Papers, 1808-1901
, processed by Lois R. Densky and edited by Gregory J. Plunges, The Monmouth County Historical Association.

Post office and company scrip

In 1831, the Howell Works secured a US Postal contract and opened its own Post Office. In the same year, the New Jersey Legislature passed an act prohibiting the use of "tickets" - in effect, banning the use of currencies other than the state's official currency. Allaire had been planning to issue his own scrip prior to passage of the act. In 1832, he initiated a test case.

The courts found that the Allaire scrip did not violate the Act because they were "due bills" (IOU's). Allaire began issuing his workers the scrip, which was redeemable at the company store on the grounds, as well as accepted as payment by businesses in the local area. The scrip was issued in a variety of denominations, from tokens worth a few pennies to notes with a value of between $1 and $10.Company Scrip and Tokens
, Allaire Village website.

Transportation hub

As Allaire's business grew, Howell Works became a major transportation center. In 1833 Allaire upgraded the original wooden carriage house, built in 1825, with a larger brick building. He established a stagecoach company that ran a freight-wagon line between Howell Works and his depot at Eatontown Dock (modern-day Oceanport

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