The hill owes its name to a semaphore, a windmill-like structure erected in September 1849, for the purpose of signaling to the rest of the city the nature of the ships entering the Golden Gate. Atop the newly built house, the marine telegraph consisted of a pole with two raisable arms that could form various configurations, each corresponding to a specific meaning: steamer, sailing boat, etc. The information was used by observers operating for financiers, merchants, wholesalers and speculators. Knowing the nature of the cargo carried by the ship they could predict the upcoming (generally lower) local prices for those goods and commodities carried. Those who did not have advance information on the cargo might pay a too-high price from a merchant unloading his stock of a commodity—a price that was about to drop. On October 18, 1850, the ship "Oregon" signaled to the hill as it was entering the Golden Gate the news of California's recently acquired statehood.