USA > Iowa > Wapello County > History of Wapello County, Iowa, Volume I > Part 27
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This gave great dissatisfaction, for a great portion of these lands was occupied by claimants who expected to buy their claims at $1.25 per acre, as others had done who had settled upon Government lands. This provision stirred up much ill feeling among the settlers. Public meetings were held and this part of the contract was condemned in the strongest terms ; and such were the feelings that there were apprehensions of serious difficulties if this part of the contract should be enforced. But when these excitements were at the highest, news came that Bangs Brothers & Company had failed, and probably their contract would be annulled, and this allayed the public feel- ing. Bangs Brothers & Company did not comply with their contract in furnishing means, and the work on the river did not go on, and the public expectation of a speedy completion of the proposed improvement vanished.
The officers of the improvement were appointed for only two years and at the expiration of their term of office Van Antwerp was reappointed com-
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missioner, and Paul C. Jeffries was appointed register. But these last ap- pointed officers held their trust but a short time, for during the past two years the work on the river had progressed very slowly. The contract with Bangs Brothers & Company had been declared forfeited and it was under- stood that other sources were to be looked to for going on with the work. The officers appointed by the governor not being successful in their under- taking, the Legislature, on the Ist of January, 1853, repealed the law author- izing the governor to appoint, and made these officers again to be elected by the people, and on the first Monday in the following April, Josiah Bonney, of Van Buren County, was elected commissioner, and George Gillaspy, register. And for the purpose of aiding the commissioner in conducting and concluding any contract on the subject of improving the river, the Legisla- ture appointed George G. Wright, of Van Buren County, and Uriah Briggs, of Wapello, his assistants, "with equal powers of the commissioner in making and determining such contract."
From past experience it was not deemed advisable to parcel out the work to many individuals, and consequently these officers were required by the Legislature not to make any contract, unless such contract stipu- lated for "at least one million three hundred thousand dollars to be faith- fully expended in the payment of the debts and liabilities of the improve- ment, and its completion to the greatest extent possible." And to this end, if it was necessary, they were authorized "to sell and dispose of all and any lands which had been or might hereafter be granted by Congress for the improvement of the river, and if it was neces- sary to effect a contract, they were authorized to convey the right to tolls and water rents arising from the improvement, for the length of time and upon such terms as they might deem expedient. But in disposing of the lands, they were not to contract them for less than one dollar and twenty-five cents per acre ;" and if no contract of this character should be made before the Ist of September, 1853, then the pay of all the officers connected with the work, except the register and one engineer, was to cease, and all operation connected with the work, except such parts as were under contract, were to be suspended until further action by the Legislature. The register was re- quired to put all unfinished work then under contract in such a condition as to prevent it from injury, and to see that all property of the state connected with the work was carefully preserved. If the register, at any time subse- quent, should receive propositions which he deemed sufficient for consider- ation, he was to submit the same to the commissioner ; and should a contract be made on the terms required by the Legislature, then the pay of the officers should commence and the work go on as though it had not been suspended.
The new commissioner, being conscientious about the expending of money, immediately after taking charge of the work, dismissed all the en- gineers except Guy Wells, the chief engineer, and employed no officer or other persons, except when the necessity of the work imperatively demanded
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it. There were in several places of the river snags and bowlders, which much obstructed the navigation and had become a source of much inconvenience and complaint ; but during the official term of Bonney the river was "cleaned of snags, bowlders and other obstructions to such an extent as to make the navigation of the river, at proper stages of the water, safe."
The commissioner and his associates, after assuming the duties of their trust, entered into correspondence with such persons and companies as they thought likely to embark in such an enterprise. And by this means they succeeded in eliciting the attention of capitalists to such an extent that a number of persons came to the state for the purpose of investigation. These persons, by an examination of the valley of the Des Moines personally, and making themselves acquainted with the resources of the country, on their return East imparted to others the undeveloped wealth and advantages of the valley, which was the means of bringing many good and enterprising citizens to the state. Among others who visited Iowa for the purpose of investigation was Henry O'Rielly, a man who had acquired some consider- able notoriety as a contractor in putting up telegraph wires, and he pro- posed to undertake the work. Such was the known reputation of O'Rielly as a contractor, that the commissioner and his associates commenced the negotiating of a contract. And "on the 17th of December, 1853, Henry O'Rielly, Esq., of New York, entered into a contract with the commission- ers, in which, for the consideration of the unsold lands belonging to the im- provement and tolls and water rents, and other profits arising from the work for the term of forty years, agreed to complete the entire work within a period of four years from the Ist day of July, 1854, according to the orig- inal surveys and specifications made by the engineers."
Immediately upon entering upon this contract, O'Rielly returned East and organized a company, under the laws of Iowa, called the Des Moines Navigation & Railroad Company, to which O'Rielly assigned his contract, himself being one of the officers of the company. On the 9th of June, 1854, by the consent and request of O'Rielly, and with the approbation of the officers of the River Improvement, the contract with O'Rielly was canceled and another contract was made with the Des Moines Navigation & Railroad Company. In this contract the company agreed to pay all outstanding debts against the Improvement within ninety days from the date of said contract, to settle and pay all damage suits against the State of Iowa on account of the prosecutions of said work to mill owners and others who have, or might thereafter, sustain damages on account of the same; to pay the salaries and expenses of the officers and engineers in charge of the work; to complete the improvement from the mouth of the Des Moines River to Fort Des Moines, in accordance with the original plans and specifications of the state engineer, by the Ist day of July, 1858; and to construct the whole work in such a manner as to assure the navigation of the same for the longest period
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of each year practicable, and to complete at least one-fourth of the work each and every year, commencing on the Ist day of July, 1854.
In consideration of this understanding, the commissioner agreed to convey to the company all the unsold lands belonging to the improvement, the use of the work, the tolls and water rents for the term of forty-one years. And afterward, in consideration of the company enlarging the works and making some other improvements in the navigation of the river, and also on account of there not being as large a quantity of land undisposed of be- low Fort Dodge as was understood to be by the commissioners and the com- pany at the time of making the contract, a majority of the commissioners, Bonney and Biggs, entered into an article of agreement with the company, in which they promised to extend the time of the company's use and control of the work to seventy-five years.
Under this contract, the public expected that the work would be immedi- ately commenced by the new contractors and speedily completed. The great expectations which at first had been raised by the contractors under the name of the Des Moines Navigation & Railroad Company, soon after they undertook the work began to diminish, for there soon arose disagreements and misunderstandings among themselves. The company had been or- ganized under the general incorporation laws of Iowa, and, consequently, was subject to the laws of the state. At the called session of the Legislature in 1856, Donald Mann, a stockholder of the company, memorialized the Leg- islature to correct the "manifold abuses" of which he charged the directors of the company to have been guilty. In this memorial he charged that the managers of the company. had in various ways "corruptly, and for corrupt purposes," violated the laws of the state, "greatly to the injury of the people thereof, and to the great loss and damage of the stockholders," and showed in detail wherein they had acted corruptly, and violated the laws under which the company was incorporated. Among other things he stated that, "for the purpose of deceiving the people and individuals in relation to their means," they had represented to the public and to individuals that there had been paid into the treasury "enormous sums of money, on account of stock sold, for much larger amounts than had been received. And the better to accomplish and maintain such deceptions, the managers (or a majority of them) caused to be issued certificates of stock to the amount of, nominally, six hundred and thirty thousand dollars, or 6,300 shares of $100 each, of which shares they had represented to the public and individuals that the holder had paid the sum of $100, amounting to $630,000, when, as a matter of fact, there was only five per cent paid on each share, by which means the public and many individuals were deceived."
Henry O'Rielly, the individual with whom the contract had first been made, a stockholder and one of the directors, also memorialized the Legis- lature for an investigation of the 'affairs of the company, in which he re- asserted the charges made by Mann, and stated that he held himself ready,
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if the Legislature would order an investigation of the doings of the company, to prove, from the records of the company and from other evidence, "that there was scarcely an important provision in the code of Iowa (applicable to corporations), scarcely an important point in the Des Moines Improve- ment laws, scarcely an important provision in the contract which the com- pany agreed to fulfill, scarcely an essential provision in its by-laws, or even in the charter which gave it legal existence, which had not been violated, and violated with a recklessness that will form a memorable feature in the history of Iowa."
A joint committee was appointed from both branches of the Legislature at the called session to investigate the alleged abuses, but, owing to the short time in which they had to act, it was impossible for them to make the neces- sary investigation. An attempt was made to create a committee for this purpose to act after the Legislature adjourned; but this failed, so that the alleged abuses passed by without examination at that time. These memori- als to the Legislature and the discussion of these matters by the newspapers greatly prejudiced the public mind against the company; and while these discussions were going on W. C. Johnson, president of the company, re- quested the governor to examine into its affairs, in person or by a commit- tee, and proposed to pay the expenses of such an examination. The gov- ernor did not feel disposed to comply with the request, but referred the matter to the Legislature, which convened the following December, and recommended that a committee should be appointed, with power to admin- ister oaths, and to send for persons and papers, with instructions to inquire into all the transactions of the former commissioners and registers of the Improvement.
This part of the governor's message was referred to a committee of twelve, consisting of members of both branches of the Legislature, who im- mediately proceeded to the discharge of their duties. After a careful and thorough examination, this committee reported that they did not consider- the contract made by the commissioners with the company a valid contract on behalf of the state, for the law which authorized the commissioner and register to make contracts required that any contract made by them, to be valid, must be approved by the governor, and that the subsequent law, which created two assistant commissioners, did not do away with the provision re- quiring the governor to approve of such contracts. And, as the contract made with the company had never been approved by the governor, they did not regard it as binding on the state. The committee also reported that the company had acted in bad faith, and violated their charter in many ways; and, among other things, they found that over $1,000,000 of full paid stock had been issued by the company, upon which had been received but $167,000, leaving a deficit of $833,000, for which certificates of full paid stock had been issued, for which not a farthing had been received by the company, which had been sold to innocent purchasers for a valuable consideration, who had
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purchased, believing its full value had been paid into the treasury of the company. The company had come far short of completing the amount of work which they were required to do under their contract, and their acts gave strong indications that their object was to expend money enough to get possession of all the available lands and then abandon the work : for more than one-half of the time which was given for completing the entire contract had expired, and on a work which was estimated to cost about $2,000,000, they had expended about $185,957.44 for an actual construction of the work, while the company claimed that they had expended $104,180.74 for inciden- tal expenses, the most part of which did not in any manner benefit the Im- provement. Yet the company claimed that they were entitled to land at $1.25 per acre in payment for the whole amount.
On the 2d of April, 1855, William McKay, of Polk County, was elected commissioner, and John C. Lockwood, of Louisa County, register; but in November, 1856, McKay resigned, and Edwin Manning, of Van Buren County, was appointed by the governor to fill his place. Manning bore the name of a good business man and close financier, and he was not willing to audit the claims for incidental expenses, as one for which the company were entitled to receive land; and this became a matter of dispute between the company and commissioner, and in order to have the matter adjusted, the president proposed to make an abatement of $72,000. But Manning did not feel disposed to settle the matter himself, and referred the whole claim to the Legislature.
Manning in his report to the Legislature showed that there had been sold by the state, through the board of public works, during the six years that the state prosecuted the work, about $75,000 worth of land; and for this sum only "three stone-masonry locks" and two dams had been com- pleted; and there had been certified to the Des Moines Navigation & Rail- road Company, by Bonney and Gillaspy, 88,853 19/100 acres of land, and by Mckay and Lockwood, 116,636 4/100 acres, at $1.25 per acre, making $256,861.53 worth of land, which had been disposed of to the present com- pany, a part of which amount was for old debts which they had paid.
The report of the committee and commissioner having been made to the Legislature, that body acting upon the premises that the contract which had been made by the commissioners with the company was not binding upon the state, on the 29th of January, 1857, passed an act by which there was to be a commissioner appointed by the governor, who, with the regular com- missioner, was authorized to contract for the speedy prosecution of the work, and it was made their duty to ascertain and pay off all just claims against the Improvement ; and they were authorized to contract with any company for the sale of all lands, tolls and water rents who would give satisfactory evidence and security for the completion of the Improvement. But they were not to bind the state by any contract further than the appropriation of the land and the income of the Improvement; and no contract made by the
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commissioners was to be valid until approved by the governor. And by this act, the offices of register and assistant commissioner were abolished and the register was required to deliver over to the state land office all books and papers in his office; and the register of the state land office was required to perform all the duties which the register of the Improvement had done. And by thus doing, the Legislature gave the Des Moines Navigation & Railroad Company to understand that they did not regard the contract made by them with the commissioners as binding upon the state, though by this act they made arrangements for auditing their claims and paying them their just dues.
About this time the question was brought up in the land department at Washington, as to the extent of this grant of land, and the opinion was made public that the original intention of Congress was to only give to the state the lands below the Raccoon Fork ; but a disposition was manifested to com- promise by the department recognizing as being in the grant all lands ad- jacent to the river within the state. But assumptions had heretofore met with success, and now those interested in the land grant claimed and contended that this grant embraced all the lands to the source of the river. This diffi- culty about the extent of the land grant, together with the action of the Leg- islature, nearly suspended all operations on the river and much was said by the company about enforcing their claims by law.
The commissioners appointed to audit and pay the claims against the Improvement did not succeed in adjusting the claims of the company, and the matter was again referred to the Legislature, and on the 22d of March, 1858, there was a joint resolution passed by the Legislature, defining the basis upon which the state would settle and the Des Moines Navigation & Railroad Company were given sixty days to consider whether they would accept of and ratify this proposition ; and if they did not, within that time, then it was made the duty of the governor to enjoin them from further pro- ceeding with the work of the Improvement. Also, on the same day of adopt- ing this resolution, there was an act passed giving all the lands which re- mained after settling with this company, "and also all the stone, timber and other materials turned over to the state by the company," to the Keokuk, Fort Des Moines & Minnesota Railroad Company, for the purpose of con- structing a railroad from Keokuk up the Des Moines Valley, to the northern line of the state, except the material which it might be necessary to use for the completion of the locks and dams at Croton, Plymouth, Bentonsport and Keosauqua, which the railroad company were to complete; and also, all debts which grew out of the Improvement, which at that time remained unsatisfied, or were in some manner provided for. But in this grant there was a provision made that it should not in any manner conflict with the lands which had previous to that time been given to the state by Congress for railroad purposes, which, on the 15th of July, 1856. had been given by the Legislature to the companies formed to build the four roads designated
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by the grant. But it was understood that these lands, having been donated by Congress for the improvement of the navigation of the River Des Moines, could not be diverted to the building of a railroad without the consent of Congress, and measures were immediately taken to get Congress to sanction the diversion ; but this attempt failed, so that the action of the Iowa Legis- lature did not avail the railroad company anything that session. The rail- road company determined to make another effort at the next session of Con- gress ; but before the time for this effort, another difficulty arose in the way of obtaining the lands for the Keokuk, Fort Des Moines & Minnesota Railroad Company.
In settling up the claims that the grants for improving the River Des Moines extended above the Raccoon Fork, the citizens of Iowa were united, until after the grant of lands by Congress for railroad purposes was made. After this the railroad companies became interested in the lands claimed for the River Improvement, and claimed that the grant did not embrace any lands above the Raccoon Fork, on which the citizens of Iowa were now divided, and both sides of the question were represented. Upon this phase of the case the officer of the land department at Washington had but very little hesitation in deciding against the claims of the River Improvement. After this decision was made the legal tribunals were resorted to, and a case was taken to the Supreme Court of the United States, where the same de- cision was given as in the land office.
On the 3d of March, 1860, there was an act passed abolishing the office of commissioner of the Des Moines Improvement, and George G. Wright, Edward Johnson and Christian W. Slagle were appointed a board of com- missioners for the purpose of ascertaining all the liabilities against the Des Moines River Improvement and against the State of Iowa, growing out of the Improvement. They were required to meet at Keosauqua and were clothed with power similar to the District Court, to hear and determine all claims growing out of the Improvement, and were authorized to sell all the interests of the state and all dams and improvements and the lands appertain- ing thereto. These commissioners proceeded with their duties, and with their labors closed all official acts, as far as the state was concerned, in applying the proceeds of .this land grant toward the improvement of the navigation of the River Des Moines.
This was a most magnificent grant, embracing some of the best lands in the state; and if the proceeds had been judiciously and properly expended, would have made a great thoroughfare for steamboats, besides affording an immense water power for driving machinery. But through the incom- petency of managing the means, and the intrigues of designing men, the whole of the lands below Raccoon Fork, and a large quantity above, were disposed of and very little practical good accomplished toward the naviga- tion of the river.
CHAPTER XXIV
CENTER TOWNSHIP
Wapello is in the fourth row of counties in Iowa west of the Mississippi River, and in the second row north of the Missouri line. It is twenty-four miles east and west and eighteen miles north and south, having twelve con- gressional townships and fourteen civil townships. The Des Moines River's average width is about six hundred feet. It enters the county at Eddyville, the northwest corner of the county, flows southeasterly and leaves this territory east of Eldon. Seven wagon bridges and four railroad bridges span the river within the county. The elevation of the land at Ottumwa is about six hundred and fifty feet above sea level.
The east part of Center Township is very near the center of the county. The township itself is composed of congressional township 72, range 14, except parts of sections 5, 6, 7, 8 and 9 south of the river, and sections 6, 7, 18, 19, 20, 21, 28, 29, 30, 31, 32 and 33 in township 72, range 13, and sections 1, 2, 3, 4, 5 and 6 in township 71, range 14. The north part of the township is prairie and fine bottom land. The south part is practically all bottom land. There is some hilly country near the river, west of the city. Underlying the land is considerable coal and limestone. The coal has been mined at Bear Creek and other places, both north and south of the river. The land is drained by Sugar Creek, Rock Branch and Bear Creek -all tributaries of the Des Moines.
There are 20,398 acres of farm land, which produce cereals of the usual varieties known to this latitude. The raising and feeding of live stock is an important industry of the farmers. Good, substantial farm buildings, fences, well-kept roads, telephone lines, rural mail delivery, and other mod- ern conveniences obtain in this locality; also good district schools and churches.
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