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When New York's most prominent shipyard, Bidwell and Banta, launched the Niagara in 1846, the vessel was one of the largest, fastest, and most luxurious steamboats the world had ever seen. Seeing the much-heralded Niagara for the first time, one reporter wrote that "we had been lead to anticipate a most magnificent boat, but the reality far exceeded our anticipations."

The Niagara completed its first run from Buffalo to Milwaukee on May 20, 1846, eliciting this report in the Milwaukee Sentinel:

The arrival of this splendid steamer created quite a sensation. It was supposed that she could not get over the [St. Clair] Flats…It was an agreeable surprise, therefore,…to see her dashing into port, with all her colors set and music playing. Everybody hurried down to the piers to look at her, and a very general verdict of approval and admiration was returned. The Niagara is, in truth, a noble boat; well modeled, capacious, convenient, swift and most strongly built. Her after Saloon, on the upper deck, is superbly fitted and furnished and the accommodations for steerage passengers on the main deck are unsurpassed.

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