Salley Kim Hist.

A341 Fall 2011 Professor Jane Haigh Date 10/16/11 Shelikhov, Baranov, and the founding of the Russian American Company This paper argues that Shelikhov and Baranov settled in Alaska mainly for economic reasons. They wanted to promote their business. By contrast, the Empress Catherine II, Emperors Paul I and Alexander I mainly supported Russian colonization in Alaska to give Russian Empire a political presence in North America. Grigorii Shelikhov, a European Russian, was born in Rylsk. At twenty-five years of age he settled in Irkutsk, where the Rylsk merchant Ivan Golokov hired him. In 1774 Shelikhov moved to Okhotsk. For the next eight years he was involved in ten fur trading companies. In 1795, Shelikhov won a partial monopoly over fur trade in Alaska and eastern Siberia. In 1799 the company he founded finally established itself as a full-fledged monopoly. It became, under the influence of Shelikhovs wife, Natalia, the Russian American Company, which was effectively and sometimes cruelly managed by Aleksander Baranov for nineteen years. Shelikhovs monopoly for fur trading and his wife then Baranov. At the beginning of his career as merchant, Shelokhov observed that promyshlenniki (Russian fur trappers in Siberia and Alaska) took more and more time and money to travel ever farther east in search of more luxurious pelts. In addition, competition among merchants seeking valuable furs appeared wasteful and inefficient. For these reasons, Shelikhov promoted creating a monopoly in the fur trade. Shelikhov formed a fur trading company with Golokov and

Golokovs nephew, Mikhail, to hunt furs in the Kuril Islands and Alaska. Unlike other promyshlenniki ventures, which were temporary, Shelikhov envisioned his company as engaging in a long-term operation. He arranged for Russian government to charter his company for ten years (Haycox 2002, p. 71). Shelikhovs vision for long-term fur trade supported by Russia was economic. Shelikhovs actions in Alaska had the potential to benefit the Russian Empire politically. Empress Catherine II saw this clearly. She realized that promyshlenniki had shown foreign powers that Russia had the ability to occupy part of the Northwest coast of America (Haycox 2002, p. 72). This was so even though promyshlenniki were not government agents. Although they sought profit from sea otter peltry, their presence in Alaska gave Russia a presence in North America that she wanted. This is evidence that Russian Empire Empress Catherine II supported Shelikhov because of the international presence he gave Russia in the New World. Her aim was political. Acting on his new Russian governing charter, in 1781 and 1782, Shelikhov invested in many voyages. One of his partners, Lebedev-Lastochkin, eventually became Shelikhovs most serious rival (Haycox 2002, p. 72). In time, LebedevLastochkin attempted to make permanent settlement in Alaska. Rivalry came between Shelikhov and Lebedev-Lastochkin when Shelikhov founded his own settlement. Their rivalry, fought over the sea otter peltry of Cook Inlet, lasted from 1784 to 1797. Shelikhov had rival based on business. Shelikhov did not want to lose money to Lebedev-Lastochkin. This is evidence that Shelikhovs primary aim in Alaska was economic, not political.

Both men wanted to develop permanent posts in Cook Inlet as part of longterm capitalist ventures. Neither was satisfied to send out isolated expeditions to collect pelts and sell them to lucrative Chinese markers. Rather each sought to form continuously profitable operation in Alaska. They both wanted to create monopoly in Alaska. This is more evidence that Shelikhov was mainly a businessman. In 1783 Shelikhov succeeded in founding a continuously profitable capitalist venture in Alaska. He sailed from Russia near Okhotsk with three ships. Shelikhovs ships carried 192 officers and crew and his wife Natalia Shelikhova. After proceeding to the Keril Islands, Shelikhov lost a vessel in storm and he and his crew were forced to winter on Bering Island. In the spring of 1784, they stopped in Unalaska before settling permanently in Kodiak. In Kodiak Shelikhov founded the first Russian post in Alaska. His post was located in Three Saints Bay on southwestern coast of the island (Haycox 2002, p. 72). Shelikhov settled in Kodiak in order to make money in the fur trade. For the next fifteen years Shelikhov oversees business in Kodiak. He called his business the Northeastern Company (Black 2004, p. 108). Only after ten years does Shelikhov finally defeat his rival, Lebedev-Lastochkin (Haycox 2002, p. 72). Lebedev-Lastochkins men scoured Cook Inlet and collected many valuable animal furs, and even set up a permanent settlement in present day Seldovia. Successfully he defeats his rival. By 1786 Shelikhovs men had searched for furs throughout Kachemak Bay in Cook Inlet. Shelikhov also sent hunting expeditions into Kenai Bay and

Chugach Bay (Haycox 2002, pp. 72-73). Shelikhovs goal was to collect furs. He was mainly a business man. After two years in Kodiak Shelikhov returned to Siberia (Irkutsk) and filed report (Haycox 2002, p. 73). In report his great ambitions become clear. In the first place, he claimed that he had to fight upwards of 4000 hostile Natives on Sahklidak Island. The actual number of Koniag warriors who resisted him and his attempts to force them into labor and levy a Government tax on them was not more than 400 men (Haycox 2002, p. 73). He fought and enslaved Natives and taxed them. Shelikhovs exploits served the interests of Russian Empire, proving to the Spanish, English, Americans, and others that the Russians intended to possess the Northwestern American coast north of Nootka. Shelikhovs post also served to extend to range of Russian trappers in North America (Haycox 2002, p. 73). On his return to Kodiak Shelikhov endeavored to send hunting parties just north of Spanish San Francisco. Sent message to other countries Russia wanted Alaska, which make Catherine happy. While in Irkutsk Shelikhov used his report to try to persuade Russian Empire to form monopoly in fur trade. This monopoly he would gladly manage. In support of his plans, Shelikhov argued that a monopoly could develop profitable trade with Japan, Korea, China, the Philippines, and India. Beautiful furs were in high demand in Asian markets, where fashionable clothing was prized. Shelikhov argued if Russia consolidated resources, trade could be continued with English,

Spanish, and indigenous Americans along North American coast (Haycox 2002, p. 73). He wanted the support to trade worldwide. Forming monopoly requires human labor and many resources. Shelikhov requested Russian Government to supply him with a government ship, a hundred soldiers, and a twenty-year loan of five hundred thousand rubbles. Shelikhov requested priests. He suggested founding schools for Alaska Natives. According to Professor Stephen Haycox, his requests were not at that time unreasonable. The size of his project was large, but the potential profits and political benefits of his project were large too (Haycox 2002 p. 73). As Haycox points out, the governor-general of all Siberia, Ivan Iakobi, endorsed Shelikhovs plan, which suggests that it was attractive to Russian officials and feasible (Haycox 2002, p. 73). Nonetheless, Empress Catharine II rejected Shelikhovs requests. Her difficulty found in idea of monopoly. She believed the European Enlightenment principle of fare trade. A monopoly violates that principle (Haycox 2002, pp. 7374). She felt unprepared to send one hundred of her soldiers to Shelikhov. She anticipated needing them to fight in war with Turkey and Sweden (Haycox 2002, p. 74). This is evidence that Catherine denied to support monopoly because of political reasons. Catherine value having Russian presence in America. She had already committed herself to financing an expedition, lead by Joseph Billings, to chart to Northwest coast (Haycox 2002, p. 74). Also, she continued to support the presence of Russian fur traders in Alaska.

While wintering in Irkutsk in 1789 through 1790, Shelikhov proposed to Aleksandr Andreevich Baranov to sail to Alaska and manage Shelikhovs company for him. Baranov, a merchant from Kargopol, had established glass factory and distillery in Irkutsk with his brother. Having experienced some business difficulties, Baranov agreed to Shelikhovs proposal and sailed for Alaska from Okhotsk in August 1790 (Haycox 2002, p. 81). Baranov comes in the picture also interested in business. The intrepid Shelikhov again presented his plans for monopoly to Empress Catherine II and sought financial and political support in St. Petersburg and Siberia. Fortunately for Shelikhov, a new governor of Siberia, Ivan Pil, was attracted to his plans. With Pils help Shelikhov was able to send an English shipwright, James Shields, to help Baranov in Kodiak (Haycox 2002, p. 81). In 1793, the Russian government gave Shelikhov laborers and missionaries to be sent to America. In 1794, Shelikhov acquired fifty-two additional craftsmen and peasants and their families. All were sent from Okhotsk to Kodiak, along with ten clergymen. Finally Shelikhov got some support and Baranov went out with more men. Baranov had a difficult voyage to Kodiak. In 1790, his ship wrecked while exiting Unalaska and he was forced to winter there. During the winter, he forced some Aleuts to labor at boast building and had three Aleut baidaras (large boats of skin) built. He traveled to Kodiak in one boat and directed the other two to seek out new hunting spots. In June, after a treacherous journey, Baranov

landed in Kodiaks Three Saints Bay (Haycox 2002, p. 81). He used Aleuts to work for his financial gain. Baranov was always effective and sometimes cruel, especially to Natives of Alaska. He moved the Russian settlement from Three Saints Bay, which he regarded as vulnerable to attack, to the location of present day city of Kodiak. He also had his English shipwright Shields build a large triple mast ship in the bay of present day Seward. He sent his chief lieutenant, Putrov, with hundreds Aleut kayaks along the coast of Yukutat, Lituya, and Icy Bays (Black 2004, p. 132). This was a show of force. Baranov wished to reveal to his potential competitors, including the Tlingit, Lebedev-Lastochkin and other would be traders, that he was a force. For some time Baranovs fur trappers had to compete with LebedevLastochkins trappers. Occasional outbursts of violence between the competing trappers occurred. But in 1795 Shelikhov received a limited right to have a monopoly on the Alaskan fur trade. After that Lebedev-Lastochkin did not fare well in the fur trade (Haycox 2002, pp. 83-84). Shelikhov had even bigger plans than limited monopoly, but none of them came to fruition. He died in 1795 of unknown causes. Rumors circulated that his wife and her lover had poisoned him (Haycox 2002, p. 84). After Shelikhovs death, Lebedev-Lastochkin and his friends attempted to break up the Shelikhov monopoly. However, this did not happen. Natalia Shelikhova was a capable and intelligent woman with powerful friends. She had Baranov. He continued to aggressively run the companys operations in the Cook

Inlet. Second, Shelikhova had close allies in Russian Court. Shelikhovs daughter married Nikolai Petrovich Rezanov (Black 2004, p. 105). Rezanov was a member of the lower nobility, he was well connected in court, and he maintained a keen interest in the success of Shelikhovs company in America. Rezanovs connections at court secured Shelikhov his original limited monopoly in 1795. From the Empresss point of view, this was no big favor for Shelikhov and Rezanov. Catherine saw how successful Baranov was. He practically established a monopoly in Alaska (Haycox 2002, p. 85). Catherine II Empress of all Russia died in 1796. Her son, Emperor Paul, ruled for a short while after her, but was executed in 1801 (Black 2004, p. 168). In 1797, Rezonov became secretary of state, and Paul elevated the Shelikhov family to the level of lower nobility (Black 2004, p. 106). Lebedev-Lastochkin business associate, Mylnikov, attempted to have charges brought against Shelikhova and her company. Rezanov over powered Mylnikov at court. By order of the Emperor, Mylnikov and Shelikhovas companies were merged. The United American Company born (Haycox 2002, pp. 85-86). In 1799 Rezanov convinced Emperor to put his full weight behind Shelikhovas company. At that time, Shelikhova achieved full monopoly of the fur trade. It was a joint-stock company in style of famous British East Indian Company (Black 2004, p. 106; Haycox 2002, p. 86). It was called the Russian American Company. The company represented both economic ambitions of the Shelikhov family and the intention of the Russian Empire to have long colonial presence in North American continent.

The Russian American Company (RAC) was a private enterprise. This benefited the Russian government. On the one hand, it protected them from foreign criticism. Conflict over North American possessions could be avoided by transferring responsibility to RAC. On the other hand, it saved them money, since the RAC was largely financially independent of the government (Haycox 2002, p. 89). The Shelikhovs and Baranov motivation behind RAC, whose investors populated the Russian government and included the Emperor Alexander I (the treacherous son of Paul), was profit alone. In the worst sense, the RAC, now managed by Baranov, was an exploitative, capitalist enterprise. Aleuts were subjugated like serfs, forced to hunt and sweat for their Russian lords. Aleut women were abused. The Orthodox Church attempted to soften the companys treatment of the Aleuts, but they could not always do so effectively (Haycox 2002, p. 94). The profit motive was out of control. Russian Emperor pleased to have RAC in Alaska to keep Spanish away. Baranov managed the RAC until 1818. He died in 1819. He went by the title Governor of Russian America (Haycox 2002, p. 38). Baranov became increasingly ambitious. He pushed the company into the Alexander Archipelago and fought bloody battles against Tlingits for possession of Sitka (Black 2004, p. 160-161). Baranov was motivated in part by a desire to possess southeastern territories to prevent the Spanish, English, and Americans from settling

permanently there and competing with his business interests. His interested were the same as the government. The Russian government was supportive of expansionist policies. However, it is not clear they would have wanted Baranovs actual methods. The distance from Kodiak to St. Petersburg is great. The RAC could not have been closely watched. This paper argued that Shelikhov and Baranov were motivated by business interests. Their interests were supported by the Russian Empire who wanted a political presence in North America.

Bibliography
Black, Lydia. 2004. Russians in Alaska. Fairbanks, Alaska: University of Alaska Press. Haycox, Stephen. 2002. Alaska: An American Colony. Seattle, Washington: University of Washington Press.