John Jacob Astor incorporates the American Fur Company

Background. John Jacob Astor was a German-born American businessman who made his fortune primarily through the fur trade. By 1808, he had established an international empire mixing furs, teas, and silks. The Embargo Act of 1807 disrupted his import/export business by closing trade with Canada, prompting him to seek government permission to establish a new fur trading venture.

Incorporation. With the permission of President Thomas Jefferson, Astor established the American Fur Company on April 6, 1808. The company was founded to sell furs, skins, and buffalo robes. It began as a venture to control fur trading, eventually expanding into the Western United States and the Pacific coast, though the initial incorporation occurred in New York.

Commercial Context. Before the incorporation, Astor had worked in the fur trade, purchasing raw hides from Native Americans and reselling them. He had also contracted with the North West Company. The American Fur Company was established to capitalize on the lucrative trade in furs, competing against British companies like the North West Company and the Hudson's Bay Company.