A native of Ohio, he moved to Oregon in 1862 where he became postmaster of Portland and helped build a railroad line among other business ventures.

[4] Steel continued with this venture after leaving the post office and later incorporated the Metropolitan Railway Company with his brother.

[4] The railroad was an electric line that opened in January 1890 and initially ran from Portland to Fulton Park.

[4] Later named the East Side Railway, the line extended to Oregon City, but went bankrupt in 1898.

[5] In 1870, he won election to his first public office, Treasurer of Multnomah County, serving two years.

[2] He then was elected as chairman of the Oregon Republican Party's state central committee in 1876.

[6] Steel was elected to the Oregon State Senate in 1886 to represent District 20 in Multnomah County.