The first ship built by the Delaware Works was a 1,605-ton cargo ship,
City of San Antonio—fittingly built for C. H. Mallory and Co., whose proprietor Charles Mallory would eventually become a business partner of Roach and one of his major customers.
Pacific Mail contracts with troops bound for the
Philippines during the Spanish–American War of 1898. In 1872, the
U.S. Congress awarded the
Pacific Mail Steamship Company a $500,000 annual subsidy to operate a
steam packet service between the United States and the
Far East. Pacific Mail thereupon decided to upgrade its entire fleet of aging, wood-hulled
sidewheel steamers by replacing them with modern iron-hulled screw steamships. The Roach yard received a major boost when it won contracts to build nine of these new vessels for the company. The first two of these ships, the passenger-cargo vessels
Colon (2,686 tons) and
Colima (2,906 tons), were delivered in November 1872 and April 1873 respectively, but in the spring of 1873, Pacific Mail informed Roach that it was unable to meet its obligations. Pacific Mail's president and another company director had depleted the company's cash reserves with a
stock manipulation scheme, and then absconded with a large sum of money after the scheme fell through. To make matters worse, stock speculator
Jay Gould, in an attempt to gain control of the company by driving down its share price, subsequently persuaded the U.S. Congress to rescind Pacific Mail's $500,000 subsidy. Roach was put in a difficult position since he had several Pacific Mail steamships still on the slipways, but he managed to delay his own creditors and renegotiate the Pacific Mail contract, reducing the latter's monthly obligations from $75,000 to $35,000. In 1874, the Roach shipyard launched the Pacific Mail passenger-cargo steamers
City of Peking and
City of Tokio. At 5,033 gross tons each, these were by far the largest iron merchant steamships built to that date in the United States and almost twice the gross tonnage of the previous largest, the Cramp-built
Pennsylvania class. In fact they were the largest gross-tonnage steamships in the world behind the experimental British ship
Great Eastern (which was a commercial failure) and they remained the largest American-built steamships for a number of years. Between 1873 and 1875, Roach also completed the contracts for the remaining five Pacific Mail ships,
City of Panama,
City of Guatemala,
City of San Francisco,
City of New York and
City of Sydney. He eventually built more ships for Pacific Mail, however, this early negative experience led him to reject future shipbuilding contracts sought on terms.
Other early customers Roach had founded the Delaware shipyard in anticipation of a boom in iron shipbuilding in the United States. He was soon to discover that he had seriously underestimated the conservatism of American shipping lines, most of whom were content to continue ordering the familiar wooden-hulled
paddle steamers in spite of the proven advantages of iron hulls and
screw propulsion. In order to attract more business, Roach tried reducing the entry cost of purchase by offering to buy shares in the ships he sold, taking a corresponding ratio of their future earnings as part payment for their construction. In this way he found himself gradually accumulating substantial interests in a number of different shipping lines. Three shipping lines whose owners understood the advantages of iron ships and who became repeat customers of the Roach shipyard in its early years were the Ocean Steamship Company, the
Ward Line and the Mallory Line. For Ocean Steamship, which ran a line between
San Francisco and
Portland, Oregon, Roach completed another three ships for the company between August and November 1882—the 2,670-ton passenger freighters
Tallahassee,
Chattahoochee and
Nacoochie. The Roach yard completed the 2,265-ton sister ships
Niagara and
Saratoga for the Ward Line in 1877. The following year, the yard completed the 2,426-ton
Sarataga II for the same company, and in 1879 completed the 2,300-ton
Santiago. Another passenger-freighter, the 2,300-ton
Cienfuegos, was completed for the Ward Line in 1883. The Roach shipyard built a dozen ships for Mallory between 1872 and Roach's retirement in 1887. They included ten passenger freighters, ranging from the 1,486-ton
City of Waco, built in 1873, to the 3,367-ton
Nueces, completed in 1887, the others being
State of Texas (completed 1874),
Rio Grande (1876),
Colorado (1879),
Guadalupe and
San Marcos (1881),
Lampasus and
Alamo (1883), and
Comal (1885). In 1880, Roach finished construction of the coastal passenger steamer
Columbia for the
Oregon Railroad and Navigation Company.
Columbia was the first ship to utilize a dynamo and the first structure other than
Thomas Edison's
Menlo Park, New Jersey laboratory to use the
incandescent light bulb. Due to the complexity of Edison's new lighting systems, the final installations of the Edison equipment on board
Columbia were completed by Edison's personnel in
New York City. In 1881, Roach partnered with a business rival,
William Cramp & Sons, to form the
Iron Steamboat Company, which built a number of iron ferries of around 900 tons gross each to replace the wooden ferries still operating in New York Harbor. The Cramp yard built four of these ferries and the Roach yard built three—
Signus,
Cepheus, and
Sirius. A notable vessel built by the yard in this period was the "night boat"
Pilgrim for the
Fall River Line, which was fitted with the largest simple walking beam engine ever installed in a steamboat.
Brazil Line Rutherford B. Hayes and members of the
U.S. Congress, the ship proved too large for her intended purpose and was soon sold. Roach also built ships for a shipping line of his own. In 1879, with Mallory as a minor partner, he established the
United States and Brazil Mail Steamship Company to operate a line between the U.S. and Brazil, through which he expected to foster America's export trade by the use of fast and reliable modern steamships. Roach hoped that the Brazil Line would be the first step in the creation of a vast global transportation network with John Roach & Sons at the center. Accordingly, he constructed two new 3,000-ton ships for the line,
City of Rio de Janeiro and
City of Para. Roach invited President Rutherford B. Hayes and the entire U.S. Congress to the launch of
City of Para in 1878, but to his consternation, his attempts to secure subsidies from the U.S. and Brazilian governments were both to meet with failure. Meanwhile, Mallory's misgivings that the ships were too big for the available trade proved correct, and Roach was faced with cutthroat competition from a British shipping line. After several years of increasing losses, he was forced in 1881 to sell the ships and wind up the Line. Roach was not quite ready to concede defeat however. The following year, he organized a new Brazil Line with another investor, and built three new passenger freighters for it -
Advance and
Finance, both of 2,600 tons, and the 2,985-ton
Allianca. The new Brazil Line would struggle on for a number of years without ever making a profit, before finally failing in 1893. Roach lost almost a million dollars on the first Brazil Line alone, and the failed venture was to leave his shipyard chronically short of operating capital. The shortage of cash would eventually become a critical problem for the yard.
U.S. Navy contracts to 1876 in 1898. Roach was left with a $200,000 unpaid bill and was forced to keep the warship in his shipyard for five years at his own expense before the government agreed to pay for the ship's completion. For the first dozen years of its operations, the Roach shipyard was by far the U.S. Navy's biggest contractor. Between 1873 and 1885, the yard received almost $4 million in contracts from just one Navy department, four times as much as the next largest contractor. Unfortunately, Naval contracts in this era often turned out to be liabilities for shipyards, and this would also prove to be the case for John Roach & Sons. The Delaware River Works completed its first job for the Navy—an engine for —in 1873. In 1874, a war scare over the
Virginius incident with Spain prompted the Navy to hastily initiate a rebuilding program. As part of this program, the Roach yard secured contracts for the repair of four Civil War
monitors: , , and . The same year, the yard launched two
Alert-class
gunboats for the Navy, and , and supplied the engine for the third, . but when the Hayes administration came to power in 1877, it quickly canceled all the
Amphitrite contracts except that for
Miantonomoh which was already almost completed. Roach was left with an unpaid $200,000 bill on
Puritan, and was forced to keep the unfinished vessel in his shipyard at his own expense until 1882 when the government finally appropriated funds for its completion.
Expansion of facilities A U.S. shipbuilding boom beginning in 1880 encouraged many American shipyards to upgrade their facilities, and John Roach & Sons was no exception. In 1880, Roach expanded the facilities of the Chester Rolling Mill by adding a new blast furnace. The new furnace eventually allowed the production of 300 tons of steel weekly, in addition to the 700 tons of pig iron and 300 tons of iron plate the mill was already producing. Roach also added machinery to the mill for the rolling of steel plates. Roach had recognized the growing demand for steel products in the U.S. economy, and in 1880 he established the
Combination Steel and Iron Company downriver from his Chester shipyard, which began production in January 1881. He soon discovered however that U.S. steelmakers could not keep up with national demand, so he also established his own steel manufacturing company, the
Standard Steel Casting Company, which began production early in 1884. All these new facilities would soon be utilized for supplying steel to his shipyard.
ABCD ships The
Garfield administration, which came to power in 1881, proved more sympathetic to the idea of revamping the dilapidated Navy than the previous administration. After many months of indecision, the government decided to go ahead with the completion of the earlier
Amphitrite class, and additionally approved the construction of a new group of four all-steel warships, consisting of one 4,300-ton protected cruiser, two 3,000-ton cruisers and one dispatch vessel. These four ships would eventually become known as the "ABCD ships" after their names—
Atlanta,
Boston,
Chicago and
Dolphin. The government issued public tenders for construction of the ships in June 1883, and on 3 July it was announced that John Roach & Sons had won all four contracts. Roach immediately went to work on construction of the ships, but continual design changes submitted by the Navy, in addition to shortages of the high quality steel demanded by Navy inspectors, soon had construction falling well behind schedule. Roach found himself faced with mounting financial losses. A fire in the shipyard and the loss of two steamers in which Roach had part ownership depleted cash reserves still further. By the time the first ship to be completed,
Dolphin, was ready for her final sea trials in early 1885, a new
Democratic administration under
Grover Cleveland had come to power. In spite of
Dolphin passing her sea trials, the new administration, which suspected Roach of receiving favors from the previous
Republican administration, found a pretext to declare the
Dolphin contract void. Roach, by now a terminally ill old man, placed his company into receivership a short time later. He later explained that the voiding of the
Dolphin contract made it impossible for him to secure a loan to continue his business since he still had another three Navy vessels on his slipways whose contracts might also be declared void. Fearing a public backlash from the bankruptcy of the nation's biggest shipyard,
Secretary of the Navy William Whitney moved quickly to limit the political damage. All four ABCD ship contracts were declared "valid but forfeit" since the shipbuilder had failed to complete the work in the allotted time. Navy officials subsequently took charge of the Roach shipyard and its workforce, and the remaining three vessels, , and , were completed over the next 22 months, during which time all other work at the shipyard was prohibited. The Roach family would later initiate a $330,151 lawsuit against the government for losses incurred by John Roach & Sons during this period. The case was finally settled in 1898 when the government made a special appropriation to pay the claim. In spite of the heavy criticism initially levelled at them from many different quarters, the completion of the four ABCD ships—the Navy's first steel vessels—was later hailed as the "Birth of the New Navy", and all four vessels were to provide many years of reliable service. ==John Baker Roach Presidency, 1887–1907==