The history of Lee county, Iowa, containing a history of the county, its cities, towns, &c., Part 63

Author: Western historical co., Chicago. [from old catalog]
Publication date: 1879
Publisher: Chicago, Western historical company
Number of Pages: 898

USA > Iowa > Lee County > The history of Lee county, Iowa, containing a history of the county, its cities, towns, &c. > Part 63

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" At the August election, in 1849, the officers of the Board of Public Works were to be again elected, and the old officers were desirous of holding on to their offices, and Sample made great efforts to have the old officers renomi- nated by the State Convention for candidates before the people. Those who were in favor of issuing bonds for the speedy completion of the work were in favor of re-electing the old Board ; those who were against this measure were opposed to them. Among those who took an active part against the old Board was Van Antwerp, and his opposition was particularly made against Sample, which got up much ill-feeling between them. Van Antwerp, to accomplish his ends before the convening of the Convention, prepared a stricture on Sample's political acts, which showed him up in no very enviable light. Van Antwerp went to Iowa City, where the Convention was to be held, a short time before it convened, and had his strictures printed in handbill form, and on the morning of the Conven- tion circulated copies all over the city, so that a copy found its way into the hands of every delegate. This had the effect to beat Sample and the other officers of the Board, and William Patterson, of Lee County, was nominated

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HISTORY OF LEE COUNTY.

for President ; Jesse Williams, of Johnston, for Secretary ; and George Gillaspy, of Wapello, for Treasurer.

" These individuals were all elected, entered upon the duties of their trust, and with energy undertook to complete all the work which had been put under contract. But they soon found that they could not sell lands fast enough to meet their expenditures, and had to suspend a portion of the work. But they did not do this until they had contracted a large amount of debts, which they had not the means to pay. The new Board, on making settlements with the contractors, not having the money to pay them, issued bonds or certificates of indebtedness, pledging the lands for their payment, and binding the Board to redeem them as soon as they had the means to do it. So the new Board, with- out the sanction of law, did what the old Board had tried to get the Legislature to authorize them to do by law, and for which policy they were turned out of office and others put in their place. Those contractors who were stopped from going on with their work claimed damages; legal proceedings were had and some of them recovered large amounts.

" The course pursued by the new Board met with much censure from the public and the newspapers; particularly the Whig press was very severe in its strictures. The course which had been pursued by the Board of Public Works made the improvement of the river Des Moines a prominent matter before the Legislature, which convened in December, 1850. The issuing of bonds did not meet with the approval of that body, and a law was passed abolishing the offices of President, Secretary and Treasurer, and the offices of 'Commissioner and Register of the Des Moines River Improvement ' were created, which, instead of being elected by the people, were appointed by the Governor, by and with the consent of the Senate.

" As soon as the law abolishing the Board of Public Works went into effect, the Governor appointed Ver Plank Van Antwerp, Commissioner, and George Gillaspy, Register of the Improvement, who, on the 9th of June, 1851, entered into a contract with Bangs Brothers & Co., of New York, in which they stip- ulated to complete the whole work, from the mouth of the river to the Raccoon Fork, in four years from the time when for the improvement of the river a con- firmation should be secured of the extension of the grant of land above that point. When the contract was closed, Bangs Brothers & Co. and the officers of the Improvement went to work and succeeded in getting the Land Department of the General Government to reconsider the decision in which it had been held that the grant of land only extended to the Raccoon Fork, and obtained a decis- ion that it extended to the northern boundary of the State, which gave hopes that the river would soon be made navigable. On the first reception of the news, there was much rejoicing, but when the details of the contract with Bangs . Brothers & Co. were made public, it was found that the contract provided that the lands below the Raccoon Forks were not to be sold for less than $2.00 per acre, and those above for not less than $5.00.

" This gave great dissatisfaction, for a great portion of these lands was occu- pied 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 their highest, news came that Bangs Brothers & Co. had failed, and probably their contract would be annulled, and this allayed the public feeling. Bangs Brothers & Co. did not

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HISTORY OF LEE COUNTY.

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 re-appointed Com- missioner, and Paul C. Jeffries was appointed Register. But these last appointed 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 & Co. had been declared forfeited, and it was understood 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 undertaking. the Legislature, on the 1st of January, 1853, repealed the law authorizing 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 Com- missioner, and George Gillaspy. Register. And. for the purpose of aiding the Commissioners in conducting and concluding any contract on the subject of improving the river, the Legislature appointed George G. Wright, of Van Buren County, and Uriah Biggs, 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 Legis- lature not to make any contract, unless such contract stipulated for at least $1.300.000 to be faithfully expended in the payment of the debts and liabilities of the Improvement, 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 necessary 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 $1.25 per acre :' and if no contract of this character should be made before the 1st 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 operations connected with the work. except such parts as were under contract. . were to be suspended until further action by the Legislature. The Register was required 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 con- nected with the work was carefully preserved. If the Register, at any time subsequent, should receive propositions which he deemed sufficient for con- sideration, he was to submit the same to the Commissioner : and should a con- tract 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 engineers, except Guy Wells, the chief engineer, and employed no officer or other persons, except when the necessity of the work imperatively demanded it. There were in several places of the river snags and bowlders, which much obstructed the nav- igation. and had become a source of much inconvenience and complaint : but during the official term of Bonney, the river was ' cleared 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.'

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HISTORY OF LEE COUNTY.

"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 suc- ceeded 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 considerable notoriety as a contractor in putting up telegraph wires, and he proposed 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 con- tract with the Commissioners, in which, for the consideration of the unsold lands belonging to the Improvement, and tolls and water rents and other profits aris- ing from the work, for the term of forty years, agreed to complete the entire work within the period of four years from the 1st day of July, 1854, according to the original 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 Navi- gation & 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 con- tract was made with the Des Moines Navigation & Railroad Company. In this contract, the Company agreed to pay all outstanding debts against the Improve- ment within ninety days from the date of said contract, to settle and pay all damages against the State of Iowa, on account of the prosecution of said work, to mill-owners, or 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 1st 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 each year practicable, and to complete at least one-fourth of the work each and every year, commencing on the 1st day of July, 1854.

" In consideration of this understanding, the Commissioner agreed to con- vey 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 below Fort Dodge as was understood to be by the Commissioners and the Company 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

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HISTORY OF LEE COUNTY.

expectations which at first had been raised by the contractors, under the name of the 'Des Moines Navigation & Railroad Company,' soon after they under- took the work began to diminish ; for there soon arose disagreements and mis- understandings among themselves. The Company had been organized 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 Legislature 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 Com- pany 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 incorpo- rated. 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 'enor- mous sums of money, on account of stock sold, for much larger amounts than had been received. And, the better to accomplish and maintain such decep- tions, the Managers (or a majority of them) caused to be issued certificates of stock to the amount of, nominally, $630,000, or 6,300 shares of $100, for cash, 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 fact, there was only 5 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 Legisla- ture 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, if the Legis- lature 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 Improvement laws, scarcely an important provision in the contract which the Company 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 necessary 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 memorials to the Legisla- ture 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, the President of the Company, requested the Governor to examine into its affairs, in person or by committec, and proposed to pay the expenses of such an examination. The Governor did not feel disposed to com- ply 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 administer oaths and to send for persons and papers, with instruc- tions to inquire into all the transactions of the former Commissioners and Reg- isters of the Improvement.

Milward. theRogers

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HISTORY OF LEE COUNTY.

" This part of the Governor's message was referred to a committee of twelve, consisting of members of both branches of the Legislature, who immediately proceeded to the discharge of their duties. After a careful and thorough exam- ination, 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 Com- missioners, did not do away with the provision requiring 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 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 incidental expenses, the most part of which did not, in any manner, benefit the Improvement. 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 a 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 Com- pany and Commissioner, and, in order to have the matter adjusted, the Presi- dent 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 Legis- lature.

" 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 completed ; and there had been certified to the Des Moines Navigation & Railroad Company, by Bon- ney and Gillaspy, 88,853 19-100 acres of land, and by Mc Kay and Lock wood, 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 Company, 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

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HISTORY OF LEE COUNTY.

State, on the 29th of January, 1857, passed an act by which there was to be & Commissioner appointed by the Governor, who, with the regular Commissioner, was authorized to contract for the speedy completion of the work. and it was made their duty to ascertain and pay off all just claims against the Improve- ment ; 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 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 Reg- ister 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 compromise by the department recognizing as being in the grant all lands adjacent 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 difficulty about the extent of the land-grant, together with the action of the Legislature, nearly suspended all operations on the river, and much was said by the Company about enforcing their claims by law.

" The Commissioner's 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 was 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 proceeding with the work of the Improvement. Also, on the same day of adopting this resolution, there was an act passed giving all the lands which remained 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 Rail- road Company for the purpose of constructing 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 Cro- ton, Plymouth, Bentonsport and Keosanqua. 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, con- flict 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, 1855, had been given by the Legislatures to the companies formed to build the four roads desig- nated by the grant. But it was understood that these lands, having been

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HISTORY OF LEE COUNTY.

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 Legisla- lature did not avail the Railroad Company anything that session. The Railroad Company determined to make another effort at the next session of Congress ; but before the time for this effort, another difficulty arose in the way of obtain- ing the lands for the Keokuk, Fort Des Moines & Minnesota Railroad Com- pany.

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The history of Lee county, Iowa, containing a history of the county, its cities, towns, &c., Part 63

Author: Western historical co., Chicago. [from old catalog] Publication date: 1879 Publisher: Chicago, Western historical company Number of Pages: 898

Author: Western historical co., Chicago. [from old catalog]
Publication date: 1879
Publisher: Chicago, Western historical company
Number of Pages: 898