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William Hartnell was born in Backbarrow, England. At the age of 16, he was sent to the College of Commerce in Bremmen, but young William's study only lasted a year, due to the unexpected death of his father. To support his family, Hartnell took a job as a bookkeeper and accountant. In 1819, he arrived in Santiago, Peru, but soon left for Lima to open an office for his employer. While working in Lima, Hartnell met Hugh McColloch. The two became partners and headed for California to enter the hide business.

In 1822, the two men arrived at Monterey, which was the capital at the time. The men had agreed to a five-year contract for their business, with at least three of the years guaranteed that they be partners. Hartnell set out from Monterey attempting to get all the northern California missions to agree to three-year contracts. All but two of the missions agreed to sell their hides to Hartnell and McColloch. At the time, only a handful of foreigners resided in California. The two partners were able to secure the right to trade in any port in California; all other traders were only allowed to use the ports of Monterey and San Diego. In addition to the trading rights, California Governor Pablo Vicente Sola also gave the two partners land for their business venture. McColloch did not stay long, as he was called back to South America, leaving Hartnell alone to run the business.

In April 1825, Hartnell married Maria Teresa de la Guerra. Teresa was sixteen at the time of the marriage. Teresa's father was Don Jose de la Guerra y Noriega, who was considered the richest and most influential man in the Santa Barbara district. Through 25 years of marriage, the Hartnells had nineteen children and adopted five additional children.

The business started by Hartnell and McColloch became involved in tallow as well as hides. The hide and tallow business came to be a significant economic success in California; however, this did not prevent the partnership from failing. Hartnell was left with a total debt amounting to about $18,000. The entrepreneur did eventually pay off his debts. Even after the collapse of his partnership, Hartnell continued to work in the hide and tallow business.

Hartnell was able to secure 2,900 acres from the Spanish government for the purpose of ranching. Hartnell proved to be a good rancher, but the income from the ranch proved to be insufficient by itself. An adobe house was built on the property and is reported to be the first home in California to have glass windows. The ranch, called El Patrocinio de San Jose, was near the present-day city of Salinas, about 20 miles east of Monterey. The Hartnell family gained a reputation as gracious hosts who welcomed visitors to their home.

In late 1833, the educated Hartnell announced that he was going to open a post–secondary school on his ranch. In early 1834, the school began, with only fifteen students. Among the subjects taught were French, Spanish, German, Latin, reading, writing, mathematics, and philosophy. The school was located on the Hartnell ranch. Two buildings were erected that held a classroom, chapel, kitchen, and dormitory. The purpose of the school was to prepare students for study at a university. Due to low enrollment, the school lasted only two years. The Hartnell School was the first post–secondary school in California.

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