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"Pleasure Wheels" existed as early as the seventeenth century in Bulgaria and moved westward by the 1870's in America. Originally they were steam driven and made of metal or wood. They could carry up to fifty passengers and were 50 feet in diameter.

The ferris wheel came about during the plans for the Chicago fair. America was searching for a novel structure that would discount the Eiffel tower. The Americans felt that their pride was at stake because as a young country America promised "the greatest exposition that had ever been held on earth". The first suggestion was for the fair to be held under one roof. This proposal called for a 3,000 foot-diameter tentlike structure with a 1,000-foot-high center pole. As late as 1891 nothing that could contend with the Eiffel Tower had been proposed.

It was while George Washington Gale Ferris, Jr. had been living on a ranch and became fascinated with a large undershot waterwheel. He attended Renssalaer Polytechnic Institute and graduated with a degree in civil engineering. He became involved with bridge building and in 1885 was responsible for testing and inspecting iron and steel. Steel had just been introduced into bridge building and Ferris was an opportunity for a new business. He organized the G.W.G. Ferris & Company, which conducted mill and shipwork inspection and testing for others. By 1891, Ferris had experience in the specification, fabrication, testing and erection of steel structures.

His proposal for a giant wheel was met with mixed reactions. It wasn't until December 16, 1892 that the project was approved. The fair was to open on May 1, 1893. He had to raise $355,000 and locate, fabricate, and assemble 2,100 tons of material in a matter of months. The wheel was assembled in Detroit in components and then shipped to Chicago in 150 railroad cars in late March. The axle was the largest steel shaft ever forged and the centerpiece weighed 45 tons and was more than 45 feet long and 32 inches in diameter. The foundation consisted of eight 20-foot-square holes 35 feet deep.

The order and method of assembly was crucial and the responsibility fell on Ferris's partner, William F. Gronau. The wheel was essentially a gigantic bicycle wheel 250 feet in diameter. The passenger cars would be carried on a trusswork rim, the rim would be connected to the axle by two and a half diameter rods that acted like spokes. This first ferris wheel opened on June 21, 1893. It was ridden by 1.5 million fairgoers and consisted of 36 cars, the size of a trolley car, and had 40 swivel stools, and some passengers stood. The capacity of the wheel was 2,160 and as many as 38,000 people rode the wheel a day. It made a total of 10,000 revolutions during the 10 weeks it operated on the Midway Plaisance.

Six cars were loaded at a time, the wheel made 6 stops for new passengers and once loaded the wheel would make 1 complete revolution so each passenger would experience at least two revolutions during the 20 minute ride and it cost 50 cents. Ferris's wheel was a short-term financial success. After the world's Colombian Exposition was over the disposition of the wheel presented a new problem. It would have cost $150,000 to move and rebuild the wheel in NYC. During the spring of 1895 the wheel was reassembled on Chicago's North Clark Street but not enough visitors to support it. It was abandoned in 1904.