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The Failed Entrepreneur Who Founded New York by James S Henry Hudson The Failed Entrepreneur who Founded New York By James S. Kaplan archetypal driven corporate entrepre- private entrepreneurs and executives neur who took tremendous risks in working not for the government, but In 2009 there was an elaborate cer- pursuit of fame and fortune. His failed their own personal profit. emony marking the 400th anniversary voyages laid the way not only for the To the Muscovy Company, the of the discovery of New York Harbor founding of the New York City, but most promising unexplored routes to and the Hudson River by the explorer also in certain respects the modern India and the Far East would be from Henry Hudson. Although perhaps not international commercial economy in the north. These routes had the advan- as elaborate as the Hudson Fulton a way that few people realize. tages of being shorter, and therefore Tricentennial of 1909, last year’s cel- In reality, virtually nothing defini- cheaper, than those closer to the equa- ebration was heavily promoted by the tive is known about Hudson’s life tor. They were also safer, since the Dutch government and Dutch business prior to 1607, when he captained his southerly routes were controlled by interests, following a resurgence of first ship, or after the day in 1610 the Spanish and Portuguese. The com- scholarship about New York’s Dutch when his mutinous crew put him and pany’s early voyages were successful roots, which fundamentally go back a handful of others (including his son) in establishing trade routes through to Hudson’s third voyage in 1609 out to sea without provisions in Hud- Russia to Moscow, though they sus- when he was the first European to son Bay and left them to die. tained tremendous losses. But by 1600 sail into New York harbor and up the What is known is that he was born the company’s backers began to sub- river that today bears his name. in England, probably around 1565- scribe to the belief — by then common Ironically, Hudson was an English- 1570. Not much is known about his among the English, Dutch and even to man who except for this one voy- parents, but sources believe that his some extent Spanish explorers — that age worked exclusively for English grandfather, also named Henry, may there was a “northwest passage” from corporations. Although most people have been one of the founders of the Europe to the Indies that could bypass know Hudson’s name because of the Muscovy Company that sent Hudson the long trip around the southern Hudson River, few know much about on his first two voyages seeking a route capes of South America or Africa. Hudson the man or what and who he to China. Whoever could find this water passage represented. Surprisingly, large por- The Muscovy Company, origi- to the East would have wealth and tions of his life remain unknown, even nally named the Company of Mer- fame beyond imagination. to scholars. And there are darker turns chant Adventurers for the Discovery It is in this context, in 1607, that in his life story that are often ignored, of Lands, Territories, was a private Henry Hudson first appeared as the presumably because they do not befit enterprise formed by London’s lead- captain of a ship called the Hopewell, his image of an intrepid explorer wor- ing merchants and explorers to open chartered by the Muscovy Company. thy of founding the world’s greatest trade routes to the East and discover His plan was to sail over the North city. Accounts of his life often omit the new colonies. When it was formed Pole to China, and thus establish a fact that one year after he discovered in 1552, most of the lucrative trade short water route to the East. Even the Hudson River, Hudson’s crew routes with the Americas, India, Japan given that many geographers at the mutinied and murdered him and his and China were controlled by the time believed that because there was son, that his sailing to America and Spanish and Portuguese. The English daylight all day in the summer, the discovery of New York on his most wanted to get in on the action. arctic’s temperature might be warmer famous third voyage was in direct From the point of view of Queen at the polar caps than it actually is, defiance of his contract with the Dutch Elizabeth and her successor, James I, the idea was insanely visionary. The East India Company which employed who lacked the wealth or power of prospects of success were so slim and him, that on his return from that the European monarchs in Catholic the risks so large that it is amazing voyage to England the British govern- countries, a private company of mer- that an enterprise with the experience ment had him arrested and almost chants like the Muscovy Company of the Muscovy Company would ever charged with treason for working for provided an ideal vehicle for financing finance such an effort again. Yet the the Dutch, and that all four of his such activities at private expense. But fact that they did indicates the obses- voyages failed to achieve their objec- unlike the state-sponsored voyages of sion of both Hudson and his backers tives or provide his backers with the Spain and Portugal, the main purpose to find, at any cost, a new route to the short-term return on investments that of the Muscovy Company’s explora- riches of India and China. ORBIS he had promised and they expected. tion was to make a profit for its back- Around May 1, 1607, Hudson sailed C Nevertheless, Hudson’s largely ers. Thus, it represented a new form out of the British port of Gravesend unknown story is a fascinating and of organization — the private com- and headed north. Fortunately for important one because he was an pany — and would be run in effect by modern-day New Yorkers, he turned ©Bettmann/ www.moaf.org 27 Financial History ~ Fall 2010 orbis C © Illustration of Henry Hudson descending the Hudson River. Published in the April 12, 1856 edition of Ballon’s Pictorial Drawing—Room Companion. around after reaching a point further rather than going directly across the backers were no longer interested in than any ship had ever gone north, North Pole, Hudson planned to sail financing his voyages, and he report- or would for another 150 years. He along the northern coast of Norway edly sank into depression. But in the wisely decided that his wooden ship and Russia to an archipelago north autumn of 1608, Hudson was invited would not penetrate the polar ice caps, of the Ural Mountains called Novaya to dinner at the Dutch consulate in and returned to England. Although he Zemlya. This route made more sense London, where a representative of the did find what would later prove to be than his first, but also had tremendous Dutch East India Company asked if he lucrative whaling grounds, the voyage risks. Some years earlier three ships would be willing to travel to Holland was a complete failure in terms of its that the Muscovy Company had sent to meet with the company’s directors. objective of reaching China. on a similar route had never returned. At the time, Holland was begin- However, in 1608, the Muscovy As on his first voyage, Hudson’s ship ning to supplant Portugal as one of Company management decided to was blocked by huge ice floes and he the major trading nations with the Far finance a second attempt by Hudson to was forced to turn back. East. This was in part because of its find the Northwest Passage.T his time, After his second failure, Hudson’s superior banking structure, and in part Financial History ~ Fall 2010 28 www.moaf.org because the legal structure through By May, he had reached the coast Passage had failed, and he returned which it traded, using privately-owned of Norway near Novaya Zemlya, but downriver to the Atlantic Ocean. He trading companies on the English the ship was blocked by fog, high did, however, write that this was as model, was more efficient than the winds and ice. The mixed crew of fair a land as he had ever seen and pur- government-run enterprises of the English and Dutch sailors grew quar- ported to claim it for the Dutch East Catholic European powers. Although relsome, particularly the Dutch, who India Company. A member of the crew England had been Holland’s military were not used to the arctic weather. noted the tremendous potential of such ally in wars with Spain, the two coun- Hudson was able to squelch threat- an area for settlement. tries were becoming commercial rivals ened mutinies by promising to sail By October 4, at the apparent urg- in the competition for world trade and south to try to find a route to China ing of his unruly crew, Hudson sailed colonies. The Dutch East India Com- through America. Just before the voy- back across the Atlantic. For reasons pany was as interested as the Muscovy age, Hudson had received maps and that are not entirely clear, he landed Company in finding a cheaper route to news from his friend, John Smith, the at Dartmouth, England and imme- the East, but apparently did not have English explorer who had established diately sent word to his backers in sea captains of Hudson’s experience. the Virginia colony, indicating that Holland of his return, recommend- Thus, Hudson was in effect a highly- there were many inlets north of Vir- ing that he make a return voyage to skilled out-of-work executive who was ginia, and that the Indians spoke of a North America to find the Northwest willing and eager to work for what- significant river between Virginia and Passage the following March.
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