In the 35 years before Ellis Island opened, over eight million immigrants arriving in New York had been processed by New York State officials at Castle Garden Immigration Depot in lower Manhattan, just across the bay. The Federal Government assumed control of immigration on April 18, 1890 and Congress appropriated $75,000 to construct America's first Federal immigration station on Ellis Island. Artesian wells were dug, and landfill was hauled in from incoming ships' ballast and from construction of New York City's subway tunnels, which doubled the size of Ellis Island to over six acres. While the building was under construction, the Barge Office nearby at the Battery was used for immigrant processing.
The first federal immigrant inspection station was an enormous three-story tall structure, with out-buildings, built of Georgia pine, containing all of the amenities that were thought to be necessary. It opened with celebration on January 1, 1892. Three large ships landed on the first day and 700 immigrants passed over the docks. Almost 450,000 immigrants were processed at the station during its first year. On June 15, 1897, a fire of unknown origin, possibly caused by faulty wiring, turned the wooden structures on Ellis Island into ashes. No loss of life was reported, but most of the immigration records dating back to 1855 were destroyed. About 1.5 million immigrants had been processed at the first building during its five years of use. Plans were immediately made to build a new, fireproof immigration station on Ellis Island. During the construction period, passenger arrivals were again processed at the Barge Office
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