These exclusive rights for the navigation on American waters "by steam or fire" had previously been granted to the Fulton partnership by the Legislature of the State of New York.
The terms of the agreement set out that the grantees were to pay annually to the grantors one-half of all the net profits in excess of a dividend of 12 per cent. upon the investment. On the 16th of the next month a bill was passed in the Legislature of New York incorporating the "Ontario Steamboat Co.," but in consequence of the too early adjournment of the Legislature did not become law.
At this time, (February, 1816) the construction of the Canadian boat at Ernestown was well under way.
By an assignment dated August 16th, 1816, Lusher and others became partners with Smyth, and as a result it is stated (Hough—History of Jefferson County, N.Y.) "a boat was commenced at Sackett's Harbor the same summer."
Three weeks after the date of this commencing of the boat on the American side, or Sackett's Harbour, the Frontenac, on the Canadian side, was launched on the 7th September, 1816, at Finkle's Point.
In the description of this launch of the Frontenac given in the September issue of the Kingston Gazette, the details of her size are stated. "Length, 170 feet; beam, 32 feet; two paddle wheels with circumference about 40 feet. Registered tonnage, 700 tons." Further statements made are, "Good judges have pronounced this to be the best piece of naval architecture of the kind yet produced in America." "The machinery for this valuable boat was imported from England and is said to be an excellent structure. It is expected that she will be finished and ready for use in a few weeks."
Having been launched with engines on board in early September the Frontenac then sailed down the lake from Ernestown to Kingston to lay up in the port.
In another part of this same September issue of the Kingston Gazette an item is given: "A steamboat was lately launched at Sackett's Harbor."
No name is given of the steamer, nor the date of the launch, but this item has been considered to have referred to the steamer named Ontario, built at Sackett's Harbor and in consequence of its having apparently been launched first, precedence has been claimed for the United States vessel.
This item, "A steamboat was lately launched at Sackett's Harbor," develops, on further search, to have first appeared as a paragraph under the reading chronicles in "Niles Weekly Register," published far south in the United States at Baltimore, Maryland. From here it was copied verbatim as above by the Kingston Gazette, and afterwards by the Quebec Gazette of 26th Sept., 1816.