The Riches and Ruin of John Sutter

A whisper among a small party of laborers building a sawmill 40 miles from Sutter's Fort started one of the most wild and crazy events in American history...

The men under supervision of carpenter James Marshall had been working through 1847 beside the south forth of the American River in California.  On January 23, 1848, Marshall decided to make one of his periodic tests of the millrace by letting the sluice gates open all night and allowing the river water to run through. The following morning he noticed tiny yellow specks at the bottom of the millrace.  He made a few simple tests and was convinced he had found gold.

A workman on the site made a note, "Monday 24th -- this day some kind of mettle was found in the tail race that looks like gould first discovered by James Martial." 

Four days later Marshall visited Sutter's Fort and broke the news.  More tests confirmed the gold, but John Sutter was not happy.  He had build a Baron like feudal domain in the heart of California and his word was law.  He was wealthy, satisfied and had no desire to change his easy life.  He knew if word got out his kingdom would be invaded by hordes of prospectors who would destroy his land.

Sutter had been an unsuccessful speculator in Switzerland and America, coming to America in 1830.  He was charming, generous and persuaded the Mexican governor of California to grant him 50,000 acres east of San Francisco Bay.  There he built a huge farming, ranching and trading empire.

Sutter tried to keep the discovery a secret, but word got out in San Francisco where most of the 800 residents were skeptical at first.  It took several months for the idea to be even checked out. 

Sutter spent his final years asking Congress to reimburse him for land taken by prospectors.  He was never granted compensation and died in 1880 at the age of 77 a much less wealthy man that those that discovered gold.






Next time...Entrepreneur Sam Brannan
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On this Day in Pioneer History:  "On June 29, 1835, determined to win independence for the Mexican State of Texas, William Travis raises a volunteer army of 25 soldiers and prepares to liberate the city of Anahuac.