Wells Fargo & Company founded

Background. Henry Wells and William Fargo were key figures in the American express business, having previously consolidated competing firms to form American Express in 1850. Wells served as president and Fargo as secretary. Their companies competed with the Post Office by offering lower mail rates. The foundation for Wells Fargo & Company was laid when American Express directors, including John Butterfield, objected to extending operations to California.

Founding. In March 1852, Wells and Fargo established Wells Fargo & Company in New York City. This action was taken specifically because American Express leadership refused to expand services to California. The new company was designed to provide express and banking services to the rapidly growing region driven by the gold rush. The founders leveraged their existing experience in shipping, mail delivery, and stagecoach operations.

Early Operations. By the end of the California gold rush, Wells Fargo had become a dominant express and banking organization in the West. The company facilitated large shipments of gold and delivered mail and supplies. In September 1853, the company acquired Livingston, Wells & Company, its express and banking correspondent in Europe, though this acquisition later faced scrutiny regarding potential misrepresentations.