Col. Daniel Richards witnessed the construction of the Erie Canal and understood that there was great potential for a shipping hub in Red Hook, Brooklyn. The Atlantic Dock Company was chartered by New York State on May 6, 1840 with a plan for a protected deepwater basin for ships, docks and large warehouses. Richards became secretary of the company with James De Peyster Ogden as the first president. A little over a year later, June 3, 1841, construction on the first docks began. Stone warehouses, hoped to be fireproof, began going up in 1844. A steam powered grain elevator – the first of it's kind – was erected by Richards in 1846 to move large stores of grain to and from the ships and warehouses. By 1851, Col. Richards was no longer listed on the Board of the company. Soon thereafter James S. T. Stranahan became president and was still in charged around 1895 when the company merged with the other Brooklyn shipping piers and warehouse companies joined to form a trust called the Brooklyn Wharf and Warehouse Company.

A prospectus of the Atlantic Dock Company was published by the US Secratary of the Treasury in 1849 as part of their report on the Warehousing System a successful example that might be reproduced in other American ports.  

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For more information on the Atlantic Dock Company beyond what can be found in Red Hook Waterstories, the archives of the Center for Brooklyn History is a place to turn.  Their Atlantic Dock Company collection (call # 1978.151) has material from 1840-1886.

Below is a transcription of pages 6 -8 of the Prospectus of the Atlantic Dock Company

PROSPECTUS OF THE ATLANTIC DOCK COMPANY.

The "ATLANTIC DOCK COMPANY," is a body corporate by an act of the Legislature of the State of New York, passed May 6th, 1840; with a capital of $1,000,000, and with a right to commence the operations of the Company when one hundred thousand dollars are subscribed and paid in. The shares are one hundred dollars each; are deemed personal property, and are transferable on the books of the Company, either in person, or by authorized attorney.

 

The election for Directors is held on the 3d Monday in January in every year. Each shareholder is entitled to one vote at any such election, for every share of stock so held.

The object of the Company is to construct Docks, Bulkheads and Piers, forming a Basin to embrace a surface of about 42 acres, and a Hydraulic Dock within the same; to be located on the water-front in the Sixth Ward in the City of Brooklyn, near the South Ferry, as shown on the annexed Diagram

The location has been selected after thorough and careful soundings, and examination of the ground under water, which was found easy for excavation and free from rock; and also after considering its relative position and advantages to all the locations in and about the harbor of New York. The shores of New York, Brooklyn, and Jersey City, have all been examined by experienced and scientific gentlemen, and the result is that the present location possesses many required advantages over any other being easy of access and a short distance from the centre of business in New York. It would be impracticable to undertake such a work in New York on account of the high prices that the company would be obliged to pay for the property requisite for their use. The distance of this location from the centre of business and being on the opposite side of the river, cannot be deemed an objection, as it is not without precedence in other similar works, The "West India Docks," situated at Blackwall on the river Thames, are about 34 miles from the London Exchange, or the centre of the main business of London. The " Commercial Dock," one of the largest Basins of London, is situated on the south side of the Thames, while the bulk of business is transacted on the northerly side, where are also the Bank of England, Exchange, &c. &c. The ordinary tides of the Thames are about 20 feet, which renders the crossing at all hours difficult. In our harbor the ordinary tides are only 5 feet, and there are no impediments to crossing the East River at all hours. The expense also is trifling, and this will rapidly decrease under the present ferry regulations. The distance to the Company's Works from the Exchange (being only about 14 miles) and the crossing of the East River, therefore no objection to the location.

The land and water right designed for this object, contains about 80 acres. The surface of the Basin is to contain 42, acres. Piers are to be erected 150 feet wide, forming the front of the Basin on the stream, on which to erect warehouses with sufficient depth of water on both sides of the piers to moor the largest class of steam ships or merchant vessels.

The utility and necessity of the proposed improvements, must be evident from the following considerations.

First. That the main business of New York is now, and in all probability will for the next half century be transacted in and near Wall St., where are situated the Custom House, Exchange, Banks, Insurance Offices, &c

Second. That all the docks, from the Battery to Corlear's Hook on the East River, and as high up as Canal Street on the North River, are now full and crowded, and cannot afford additional accommodations.

Third. That the shipping interest will prefer going into Docks, and Basin at Brooklyn, rather than going up town on the New-York side further than the points before mentioned; especially when better accommodations are prepared for them.

Fourth. The benefit to shipping to be safely moored in a Basin against heavy gale winds which annually does more or less damage to vessels in port.

Fifth. That shipping in a Basin, with proper police regulations, are less liable to fire, robbery, and other depredations, and experience has shown that they are better preserved, especially in their rigging and cables, being better sheltered from the effects of the tides than those moorcd at the wharves or in the stream.

Sixth. The premium for insurance on vessels in port moored in this Basin, will probably be from 30 to 40 per cent. less than the present rates on shipping at our wharves.

Seventh. The erection of a Hydraulic Dock, within the Basin will enable the ship owner to haul up his vessel without the expense of a Steam Boat to tow her to, and from a rail way.

Eighth. From a use of these Piers, for warehousing goods, commerce will derive much advantage by expedition in the landing of merchandise, with a great reduction of expenses.

The facility for warehousing heavy goods on the Piers and around the Basin such as, iron, lead, dyewoods, tea, bags coffee, molasses, sugars, rums, wines, hides, cotton bales, wool, &c., which can be done direct from the ship's hold into the warehouse, would be a saving of 50 to 75 per cent, in cartage and all other expenses, including a re-delivery as has been computed by competent persons, after a careful investigation. To exemplify the foregoing, one fact amongst the many which daily occur, will be mentioned. An eminent eastern manufacturing house, recently purchased of one of our largest importing houses, one hundred tons of iron, which had been deposited in their store No. 119 Greenwich St., at the ordinary cartage expense of 50 cents per ton. The same expense (50 cents per ton) was incurred again in delivering it to the purchasers on board of an eastern packet, making one dollar per ton for cartage, besides additional expenses for labor. If on the arrival of this iron from a foreign port, it had been deposited in a warehouse on these Piers and when sold put direct on board the eastern packet, lying at the pier fronting the warehouse, the reader will perceive that two cartages and much extra labor would have been saved. This case will apply to most all other heavy goods.

Goods on these piers would be much safer from fires and depredations than goods in New York. All heavy articles stored here could be sold by sample, at the store or counting house of the merchant.

The saving in insurance on goods stored here in fire proof warehouses would also be very great.

A comparison of this work, with others of a similar kind, will present a favorable view of its utility and importance.

The West India Docks, or basins (as before mentioned) are located on the banks of the Thames at the Isle of Dogs, distance of about 3 1-2 miles from the Bank of England, or from the centre of the main business of London. The largest of these basins is about 890 yards in length. One contains about 25, and another about 30 Acres. The latter principally occupied by shipping returned from the West Indies, the former for vessels laid up in ordinary or taking in their outward bound cargoes. These Docks or Basins have proved a very successful undertaking, and highly beneficial to the original share holders. The West India Dock Company was incorporated with a capital of £1,200,000,($5,333,333.) The annual receipts of this company since its completion, over all disbursements, has paid its share holders 10 per cent. and many years since, it had a surplus capital, or reserved fund, of over £800,000 sterling. It is however, proper to remark that all the English docks and basins, have not been equally profitable, some of them not being so well located, do not yield more than 3 or 4 per cent per annum, while others pay better dividends.

If it can be said that some of the New York docks do not now pay a good return for their cost and repairs; this we think is owing to the system of leasing them. If an equitable tariff were put upon all goods landed on these docks, they would be more productive. The system of dockage requires a change to make it similar to the English, Boston, and other judicious and equitable modes of collecting wharfage on goods landed and delivered. This class of property would then become, as it should be, equally productive as other real estate in the business part of the city.

The cost of the European Docks, in comparison to the estimated expense of this work, taking into view the small difference existing between the tonnage of the two countries (as will hereafter be shown) and our want of shipping accommodations, affords a striking evidence of the necessity of the present undertaking, and that too, in view of a profitable investment. The "London Docks" (wet docks) are near London Bridge (or say 2 miles from the Bank of England) contain 20 acres, with warehouses around its margin, cost about nine millions of dollars.

The "Commercial Dock," which is the largest, is situated on the southerly side of the Thames, while the Custom House, Exchange, Banks, and the bulk of the business of London, is on the northerly side of that river. These docks were also built at a great expense.

The whole area occupied by the West India Docks, Basins, Warehouses, Quays, &c., includes about 295 acres. The St. Catharine's and London Docks, including the smaller basins in their neighborhood, and the "Commercial," with the smaller basins on the opposite shore of the Thames, occupy about 173 acres more. The Basins, Lock, &c. at Liverpool, occupy about 90 acres; making a total at the two ports, basin and dock accommodations of 558 English acres of ground.

The first wet dock or basin in the British empire, was constructed at Liverpool in pursuance to an act of Parliament obtained in 1708. At this period Liverpool was but an inconsiderable town, and the accommodation she has derived from her dock, is one of the circumstances that has done most, to promote her extraordinary increase in commerce, population, and wealth.

A comparison of the dock and shipping accommodations of the Port of New York, and its amount of shipping business, with the like accommodations of England and their amount of shipping; will show that a great deficiency exists in this important branch of public convenience in our port.

The number of American and Foreign Vessels which entered the districts of the United States, during the year ending 30th September, 1837. (see report of the Secretary of the Treasury) was 10,656, their tonnage, 2,065,423 tons, a large proportion of which entered the port of New York. The total number of vessels engaged in the foreign and colonial trade of the Kingdom of Great Britain, which entered inwards from all parts of the world in 1832, was 17,918 vessels, carrying 2,825,959 tons. These statements show the English tonnage but trifling over the American, whilst the superiority and extensiveness of their Docks far surpass those of ours.- The difference is striking and manifest.

Again, the dock and shipping accommodations at New York, can not even bear comparison with like accommodations either at Boston, or Philadelphia, in proportion to the tonnage of each port.

It is not an uncommon occurrence in New-York, for merchant vessels to be detained in port from one to fifteen days before they can secure a suitable berth for discharging, and then often times the best they can obtain is an outside one, obliging them to discharge their cargoes over the decks of two or three other vessels. The owner or consignee of the vessel, is not the only sufferer in this case. The consignee of the goods is unable to obtain hem, and frequently loses the sale of his merchandise, by the delay in the vessels obtaining a berth.

The erection of Piers in the North River to afford the needed accommodations, has heretofore been suggested. The Atlantic Dock Company can now bring forward a work which will afford equal accommodation, at a cost not exceeding one tenth of that of the North River Piers. The latter would necessarily cost some five millions of dollars, even should the Legislature grant the privilege. Again, the harbor of the North River to afford protection against prevailing or gale winds, will bear no comparison with the location of the Company's Basin. The Basin, after its completion, and the erection of large warehouses on the Piers, will afford the safest harbor from gale winds from all points of the compass, of any in New-York or its vicinity.

The cost of the proposed work, has been carefully estimated by competent persons, and also the value of the grounds, Basin and Piers when completed. The result gives a large profit to the Company. The cost will be here stated in gross under each item, as a detailed statement would be too voluminous.

First. The land and water-right designed for this object, containing about 80 acres, will cost the Company       ------------------ $152,600

Second. Piers and Bulkheads. The Piers, on which to erect warehouses, are to be 150 feet wide on the top, with sufficient depth of water on both sides to moor the largest class of vessels, together with the bulkheads around and forming the Basin, are estimated to cost. ------------ $199,609,43

Third. The excavation of the ground to form the Basin, and under the piers and bulkheads, as to give the latter a firm foundation; including the expense of grading the piers, and about 500 Lots to the profile of the streets, ready for Building improvement, which the company will own around the Basin; is estimated to cost --------------------  $272,317,64

Total estimated cost $624,527,07

 

ESTIMATED VALUE OF THE BASIN.

In order to arrive at some just conclusions as to the value of the Basin, it will be necessary to ascertain what accommodations it will be capable of affording to shipping, and by estimating its receipts for wharfage according to the present rates of New York and Brooklyn.