machine-shops, and other industries, show the business resources of the place, which, although the oldest town in Oregon, is yet only a small one.
Oregon City, like Portland, has a good number of churches—Methodist, Episcopal, Catholic, Baptist, and Congregational. A seminary, and graded public school, besides two or three private schools, furnish educational facilities. A Government Land Office is located here, where the lands for the northern portion of the State are entered. The necessary transfer and handling of all freights intended for the valley, or coming from it, gave Oregon City formerly a great deal of business. The opening of the Oregon and California Railroad may divert a portion of this freight from the river, but there must always remain a much larger amount of the transportation of the valley which will seek the cheaper water-carriage.
Oregon City was first claimed by Dr. John McLaughlin, of the Hudson's Bay Company, in 1829, who commenced to build a saw-mill at the falls. Three log-houses were erected that winter, and timbers squared for the mill; but the building progressed no further at that time. Some portion of the land was planted to potatoes in the following spring; and in 1832 the mill-race was blasted. The houses built in 1829 were destroyed by the Indians, and replaced in 1838 by one small dwelling and store-house; and the square timbers for the mill were hauled upon the ground, but not put together that year. In the meantime the Methodist Mission asked, and obtained, permission to build upon the claim, which they did in 1840, erecting a dwelling and store-house in one; and Mr. A. F. Waller took possession of, and resided in, this building.
Disputes then arose as to the possession of the
