The GLEW was formed in 1902 to purchase Riverside Ironworks. Riverside was the short-lived successor to the venerable
Samuel F. Hodge & Company, which was well known for quality
steam engines and provided access to both marine and non-marine engine markets. Because of the Hodge Company, which was founded in 1863, and other companies like them, the
Detroit River community had become a hot bed for steam engine development. Antonio C. Pessano was elected as president and general manager for his engineering background and charismatic personality. The company realized that its Riverside yard had limited room and service docks. GLEW announced the purchase of a second shipyard in
Ecorse, Michigan, in 1903 which later became the River Rouge yard, named after its location near the confluence of
River Rouge into the
Detroit River. The GLEW again expanded in 1905 when it acquired the Columbia Iron Works in
St. Clair, and in 1912 when operations began at their
Ashtabula shipyard in Ohio. The company began with a capital of $1.5 million and a $500,000 bond issue. Within three years of GLEW's formation, Detroit built 50% of the tonnage of all ships in the
Great Lakes. The
Northwestern Mutual Insurance Company of
Milwaukee contracted the GLEW to build the first ‘
super freighter’ thus putting them on the map. Other orders of the same magnitude ensued which benefited the local economy. Hugh McElroy, general superintendent of the GLEW, stated that these contracts presented 1,300 new jobs and thereby tripled the company’s workforce. William Penn Snyder, president of Shenango Furnace Company of
Sharpsville, Pennsylvania, felt that the incorporation of GLEW ships would clearly change his smaller iron and steel industry into a leading competitor. Just as Snyder had hoped, the record-breaking freighter, SS
Shenango, helped dramatically expand the company. This relationship between the two companies led to the contract of more ships whereby even Elizabeth Russel, daughter of John Russel, vice president and treasurer of GLEW had the honor of christening the
SS William P. Snyder. ==Construction achievements==