USA > Illinois > Champaign County > A Standard history of Champaign County Illinois : an authentic narrative of the past, with particular attention to the modern era in the commercial, industrial, civic and social development : a chronicle of the people, with family lineage and memoirs, Volume I > Part 34
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accept the release; the House passed a bill accepting the release and refused to adopt the Senate measure. A large majority of the members of each body favored accepting the repeal of the Great Western charter, but so far in the session the Holbrook proposition was the only reason- able measure before the Legislature and many preferred to retain the Cairo Company rather than to be entirely without a means of building the road.
ROBERT RANTOUL, CREATOR OF THE ILLINOIS CENTRAL
At this stage of the contest affairs were entirely altered by a bus- iness-like memorial presented by Mr. Robert Rantoul of Massachusetts, acting in the interest of a group of wealthy New York and Boston cap- italists. In brief the plan of the memorialists was as follows: The Legislature should create a corporation and surrender to it the federal land grant. In return the corporation agreed to build a railroad "equal in all respects to the railroad running between Boston and Albany with such improvements thereon as experience has shown to be desirable and expedient, to complete the road by July, 1854, and to pay to the state ...... per cent of the gross receipts in return for the land." The memorialists were men of considerable capital and had had experience with railroad promotion in other parts of the country. On the whole they made a more favorable offer than could have been expected.
Coincident with the transmission of this memorial Mr. Gridley introduced in the Senate a bill "for an act to incorporate the Illinois Central Railroad." On February 5th Mr. J. L. D. Morrison offered a substitute for the original bill and on the next day it passed by a vote of 23 to 3. Four days later it passed the house by an almost unanimous vote of seventy-two to two, and was immediately signed by Governor French.
The passage of the charter through both houses was not as easy as the vote indicates. Shortly after the receipt of the memorial the whole matter was referred to a committee and the members, in con- nection with Mr. Rantoul and Colonel Bissell, the representatives of the promoters spent considerable time in preparing the measure. As the duration of the session was limited to forty days the Holbrook interests made every effort to delay the bill and during the last week of January and the first of February it looked as if their efforts would meet with success. At last, as noticed above, the bill was passed by both houses only a few days before the close of the session. The main difficulty came in the selection of a route and the Legislature was finally forced to leave the exact location of the road to the incorporators. The other point of conflict was the percentage to be paid the state. This was finally fixed at seven per cent of the gross receipts, but at the same time, the company was freed from paying any state or local taxes.1
1 In the original memorial the amount paid to the state was left vacant. It was proposed in the House that 10 per cent be given, but the company, through the efforts of Robert Rantoul and Representative Bissell, managed to reduce the percentage to 7. The real reasons for the action of the Legislature in this matter are not known and in his campaign for election as governor Colonel Bissell was accused of having obtained the reduction to the disadvantage of the state.
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With the incorporation and construction of the Illinois Central ended the long struggle to secure railway communication for the interior of the state. The way was blazed for new railroads in all sections of Illinois and their completion opened up to settlement the hitherto unoccupied counties. The economic isolation of the interior ceased and the state became an economic whole.
Politically, the effects were equally far reaching. The construction of the "Central" and the chartering of other companies satisfied the need of good transportation and the demands of the interior counties for internal improvements carried on by the state died away as the need became less and less. The important, and at times dominating, issue of state construction of canals and railroads, which entered so deeply into the political life of the commonwealth from 1830 to 1850, ceased to be of popular interest. The construction of the railroads and the broadening influence of improved communication also elim- inated from the field the celebrated question of "State policy," for twenty-five years a bone for contention between the northern and southern counties. In brief, the chartering of the Illinois Central marks the close of the political agitation for state internal improve- ments. After 1851 these matters which had repeatedly agitated the community disappeared and their places were taken by other questions.
To Dr. Bronson's paper a few facts should be added in elucidation of the charter requirements imposed by the state upon the Illinois Central (and which have been faithfully performed), as well as to more closely connect the great corporation with the localities of Champaign County, the interests of which were so fostered by its coming.
After a thorough discussion of all the interests involved, sections were incorporated into the charter requiring the company to pay five per cent of its gross receipts into the state treasury semi-annually ; exempting railroad lands from taxation and the stock of the railroad for six years; after which an annual state tax was to be levied on the railroad properties, and should that exceed three-fourths of one per cent per annum, such excess should be deducted from the before men- tioned gross receipts; provided the five per cent on the gross railroad receipts and the state taxes to be paid do not amount to seven per cent of the gross receipts of the company, in which case the difference, up to seven per cent shall be paid by the company into the state treasury.
RELATIONS OF THE ILLINOIS CENTRAL WITH THE STATE
In pursuance with these charter provisions, the first four semi- annual payments made to the state treasury by the Illinois Central Company consisted of five per cent of the gross earnings; since April 30, 1857, the payments have been made on a basis of seven per cent of
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the gross earnings. The first semi-annual payment, made October 31, 1855, amounted to $29,751.59; this sum had been increased to $718,- 705.01 on October 31, 1915. The total paid into the state treasury in the past sixty years is $36,973,294.38. In a few instances, as in 1895 and 1896, the Illinois Central Company has advanced the semi-annual payments months before they were due, and thus relieved the state from a deficit in the treasury. By an opinion of the attorney general of the state the provisions of the railroad charter apply to the Illinois Central Railroad from Cairo via Centralia to La Salle, over 300 miles; from La Salle via Galena to Dunleith, over 146 miles; from Centralia to Chicago, nearly 250 miles. The charter does not apply to any roads leased, purchased or built by the company other than the 697.5 miles referred to.
The Illinois Central Company listed its property with the auditor of public accounts from 1855 to 1859, but from that year until the spring of 1906 did not do so, claiming that the seven per cent of its gross earnings was the maximum amount which it was required to pay into the state treasury. Since 1906 the railroad company has listed its property with the auditor, and after paying five per cent of its gross earnings and the state taxes, makes up any deficit which may there- after occur up to seven per cent of its gross receipts. The state of Illinois and the Illinois Central have, on the whole, been harmonious partners.
ACTUAL SURVEY AND CONSTRUCTION
Now, as to the actual work of survey and construction-an engineer- ing party, organized at Chicago, May 21, 1851, began the preliminary survey of the Chicago branch and before the end of the year that line was surveyed and staked. The grading was completed in 1852. In May, 1853, the section from La Salle to Bloomington was opened to the public, and in July of the following year the first train entered West Urbana from Chicago, 128 miles. The Illinois Central depot, which had been commenced a year previous, was ready for the reception of travelers. In August following the arrival of the Illinois Central train, the old mail coach was abandoned and Postmaster A. P. Cun- ningham commenced to use the railroad for communication by letter and newspaper.
WEST URBANA (CHAMPAIGN ) FOUNDED
Soon after the completion of the line to the central part of the county, T. R. Webber, as master in chancery and under a decree of
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the Circuit Court, platted and sold that portion of the Busey estate north of Springfield Avenue between First and Wright streets. This was followed by the platting of the land between Neil and First streets, by the Illinois Central Railroad, which is now the main business section of Champaign. Soon afterward, Jeffrey A. Farnam and Nathan M. Clark, two construction engineers of the newly built railroad, and John P. White, made an addition to West Urbana under the firm name of Farnam, Clark & White. In that addition fifteen acres were set apart for a public park, the first in the county and known as White Park.
If the depot be excepted, the Illinois Central erected the first build- ing in the business part of what is now Champaign. It was the tempor- ary building used by its corps of construction engineers at the north- west corner of First South and Market streets. This was soon followed by the first general store erected by John C. Baddeley, on North Neil Street, which the proprietor opened in October, 1854. Mr Baddeley was the postmaster also. From this time on, West Urbana grew apace.
JUST BEFORE THE RAILROAD CAME
Judge J. O. Cunningham came into the county while the workmen were grading the Illinois Central from Chicago, and thus pictures con- ditions during that raw period: "In 1853, twenty years after this became a county, I first saw these beautiful landscapes then almost in a state of nature, and determined to make this my future home. Except in the limited increase in population, the county has made but little advancement in twenty years. From two postoffices, Van Buren and Ludington, afterward changed to Homer, the number had increased to five only. None of the streams were bridged except the Salt Fork at Homer. The roads were little better than traces across the prairies and through timber belts, with but little improvements in the lanes in the way of grading and culverts. The settlements were confined to the groves and timber belts almost exclusively. I only remember a few farms opened a mile from the timber. The road from Urbana to Mahomet-from timber to timber-had perhaps not to exceed six farms opened upon it. Few could be found who were daring enough to assert that these prairies would ever be settled. Lands could be had at from a few cents per acre for government lands under the graduation law to $10 per acre for choice improved locations. There were, perhaps, five or six cheap church buildings, one of which was in Urbana, and not to exceed a dozen schoolhouses of all kinds. No railroad, or other
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public means of conveyance, touched the county, although the Illinois Central was located and partly graded. Transportation to the county was conducted entirely hy private conveyance, and mostly from the Wabash towns, to which merchandise was brought from the eastern cities by canal and by river steamers."
RAILROAD LANDS DRAW SETTLERS
The result upon the growth of the Champaign County population which followed from the throwing upon the market of large tracts of railroad lands was most marked after the line had been fairly projected into its territory. The land thus donated to the Illinois Central by the state (given to the commonwealth by the Congressional Act of 1850) amounted to 2,595,000 acres, lying within fifteen miles of its road.
On the 12th of October, 1854, the following announcement appeared in the Urbana Union, issued by John Campbell, land agent of the Illinois Central : "The lands of the Illinois Central Railroad Company, situated upon and within fifteen miles of the Chicago branch of their road, and extending from a point in Effingham County, known as the north boundary of township six, north of the base line, to a point in Iroquois County on the north boundary of township number twenty- eight, north of the base line, are now offered for sale.
"The limits above mentioned include lands situated in the counties of Jasper, Effingham, Cumberland, Coles, Moultrie, Piatt and Cham- paign, and a part of Iroquois, Livingston and Shelby.
"The character of these lands is too well known to require descrip- tion or comment in commending their quality. Persons having made application for any of these lands, and all others wishing to purchase or obtain information as to the quality of particular tracts and terms of sale, are requested to apply at the office of the undersigned at the Urbana Depot, where plats of the land may be seen and information in reference to these lands cheerfully given."
CONGRESS ATTEMPTS TO REGULATE LAND PRICES
Many pamphlets had already been distributed in the more settled section of the east, assuring settlers upon the railroad lands not only a competency from the first, but a prospective fortune; it was the old story of the progressive and unchecked accumulation of eggs and chickens. Congress also took a hand in another direction, by attempt-
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ing to regulate the prices of public lands, and in August, 1854. had passed what was known as the Graduation Law. By its terms the prices of all public lands remaining unsold were reduced and graded according to the periods in which they had been on the market. Those which had been opened to settlement ten years or upwards were reduced to one dollar per acre; those fifteen years or upwards, to seventy-five cents; twenty years or upwards, fifty cents; twenty-five years or upwards, twenty-five cents, thirty years or upwards, twelve and a half cents per acre. Under this statnte many obtained cheap lands and made for themselves good homesteads; as, at that date, there were many tracts in the county which, owing to their remote location, had been rejected by both homeseeker and speculator. It is a fact that some of the lands which originally sold for 121/2 cents per acre are now marketable at from $100 to $125 per acre.
INCREASE OF POPULATION IN CHAMPAIGN COUNTY
The ultimate result both of this exploitation of the railroad lands, and the efforts of the national authorities to protect the interests of homeseekers in regulating the prices of public lands, was to start a rush of emigration from the eastern states to the timber lands and prairies of Illinois. Even the prairie townships of Champaign County, like Stanton, Harwood, Ayers and Crittenden, east of the Illinois C'entral, and Colfax, Brown and East Bend, west of the line, which up to the time of its coming had been practically without population, soon showed signs of life, while the prairie neighborhoods of the timber belts and the groves themselves received a new population in colonies. As many of the newcomers were not practical farmers, such additions were not always advantageous to the county.
In the latter class were not a few settlers on the railroad lands ; and when family sickness, and frosts, and blights, the Civil War and other unforeseen hindrances appeared, many returned discouraged to the East. Many others remained and earned their homesteads and repu- tations in the new country. It is justice to the Illinois Central to add that it was always lenient and even generous in its dealings with those who purchased its lands at an early period, and were unable to meet the terms of the purchase.
Until the coming of the Illinois Central there was virtually no settlement in what are now Rantoul and Ludlow townships except the farm opened by Archa Campbell at Mink Grove. But the building of the railroad promptly stimulated settlement, especially in the neigh-
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borhood of what is now the village of Rantoul. A large colony from northern Ohio came in 1857, and both Rantoul and Tomasboro became stations on the Illinois Central. Further north Pera station (now Ludlow) had been established at an earlier date. Both Tolono and Pesotum were stations established in the '50s, a land office being in operation at the former place in 1855. Savoy became a station through the activities of the great Dunlap fruit farm and nursery which was established at that point in 1858.
What is now the Champaign and Havana branch of the Illinois Central, after passing through several transformations, in September, 1886, was sold under foreclosure to the Illinois Central. The stations west of Champaign are Bondville and Seymour, in Scott Township. The line extends from Champaign to Havana, Mason County.
The Rantoul division of the Central, from Leroy, MeLean County, to the Indiana state line, was chartered in 1876 as the Havana, Rantoul & Eastern Railroad. It was built as a narrow-gauge line, operated as - such in 1881, and afterward changed to standard. Under other names it was several times in the hands of a receiver, and in 1886 was absorbed by the Illinois Central. It crosses the main line of the Central at Rantoul and, besides Fisher, its stations are Lotus, Dewey, Gifford and Penfield.
THE WABASH RAILROAD
The Wabash Railroad in Illinois is based upon the old Northern Cross Railroad, projected as a part of the Internal Improvement scheme of 1837. The section from Springfield to the Illinois River at Meredosia, Morgan County, fifty-eight miles west, was completed in 1842. It was operated for a time by mules, but it was finally aban- doned as an enterprise ahead of the times and an unprofitable under- taking. In 1847 the line was sold to Springfield capitalists, then trans- ferred to New Yorkers, who organized the Sangamon & Morgan Railroad, reconstructed the road in part, and opened the line for bus- iness in 1849. In 1856 several Ohio and Indiana companies were con- solidated as the Toledo, Wabash & Western Railroad, and two years later a reorganization was effected as the Great Western Railroad Company-not to be confused with the old corporation by that name which died a natural death just before the Illinois Central was gal- vanized into life by Senator Douglas.
It was at this period of its history that the line was built through southern Champaign County. Old Sidney, which had been platted in 1837 as a foreordained station on the Northern Cross Railroad finally
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came to its own, over twenty years later, as a station on the Great Western. Philo, midway between Sidney and Tolono, was similarly honored ; as were eventually Sidney, Tolono, Sadorus and Ivesdale. A branch of the Wabash cuts through the northwest corner of the county; stations Foosland and Lotus.
The Wabash system was mainly an outgrowth of the Wabash, St. Louis & Pacific, the consolidation of its eastern and western divisions under the present name having been effected in 1889.
THE BIG FOUR
The Big Four came into existence in 1889-90 through the consoli- dation of the Cincinnati, Indianapolis, St. Louis & Chicago, the Cleve- land, Columbus, Cincinnati & Indianapolis and the Indianapolis & St. Louis railway companies, with certain leased lines in Illinois. It was constructed through Champaign County as the Indianapolis, Bloom- ington & Western in 1869. Ten years later it was sold under fore- closure, in 1881 was consolidated with the Ohio, Indiana & Pacific Railroad, in 1887 took the name of the Ohio, Indiana & Western, and in February, 1890, was reorganized as the Peoria & Eastern Railroad and leased to the Cleveland, Cincinnati, Chicago & St. Louis Railway. It is an east and west line passing through two central tiers of townships, its stations being Ogden, St. Joseph, Urbana, Champaign and Mahomet. The large shops at Urbana were opened in April, 1871.
CHICAGO AND EASTERN ILLINOIS
The Chicago & Eastern Illinois was chartered in 1865 as the Chi- cago, Danville & Vincennes Railroad, its main line being completed in 1872. It was sold under foreclosure in 1877 and reorganized as the Chicago & Nashville, but later in that year took its present name. In 1894 it was consolidated with the Chicago & Indiana Coal Company. On the main line in Champaign County are the stations of Bongard, Block, Sidney, Tipton, Royal and Gerald. It crosses the Big Four about a mile east of St. Joseph. The branch which passes through the southeast corner of the county accommodates Long View and Broadlands.
ILLINOIS TRACTION SYSTEM
The Illinois Traction system passes east and west near the center of the county, south of the Big Four and Illinois Central, taking in
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Ogden, St. Joseph, Mayview, Urbana, Champaign, Staley, Bonville, and Seymour, with designated local stops between these points. It is linked with Danville and the Indiana electric system on the east and is con- nected with Decatur and the western and southwestern lines to Spring- field and St. Louis. Champaign is the headquarters of the Illinois Traction system and the home of its president and general manager, William B. Mckinley. The other officers are Charles Dilley, vice- president ; George M. Mattison, treasurer, and H. J. Pepper, manager.
URBANA AND CHAMPAIGN RAILWAY, GAS AND ELECTRIC COMPANY
Officially, the local system is known as the Urbana and Champaign Railway, Gas and Electric Company, and the wide scope of its corporate activities is indicated by the title. The original corporation was the Champaign and Urbana Gas Light and Coke Company, which was incorporated February 18, 1867, by John Faulds, Daniel Gardner, Thomas A. Cosgrove, C. R. Griggs, John G. Clark and C. M. Sherffy. Gas was first supplied to the people of Champaign in September, 1869.
On the 25th of the same month Edward Ater, Daniel Gardner, Clark R. Griggs and others organized the Urbana and Champaign Horse Railway Company, as incorporators, with a capital of $10,000. The first street cars were run by mules in 1863.
In March, 1889, the United Manufacturing Company was formed and authorized, under its charter, to manufacture brick and tile, steam heating apparatus and chemicals and drugs, as well as electric light machinery, and to supply power, water and light. It took over the old water works constructed under the franchise of 1884 and the plant of the Western Electric Light Company, which had been in operation since September, 1885. Both of these plants had been built and developed by Mr. McKinley, who was the moving power in the organiza- tion of the United Manufacturing Company. In 1890 he was elected president of the reorganized Urbana and Champaign Railway, Gas and Electric Company, and the electric railway at once took first place in the general scheme.
WILLIAM B. MCKINLEY
Probably no man is better known in Illinois as a promoter and consolidator of public utilities than William B. Mckinley. Between 1890 and 1900 he built or reconstructed electric roads in Springfield and Defiance, Ohio; Bay City, Michigan; and Joliet, La Salle, Gales- burg, Quincy, Danville and Decatur, Illinois; besides the Champaign
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and Urbana Electric Railway. Since then, aside from his congressional work, he has given his attention largely to the development of inter- urban electric systems in Illinois and Indiana, one of his completed enterprises having been the joining of the system which centers at Champaign with the Danville and Decatur lines to the east and west, respectively. The Danville, Urbana and Champaign Railway Company was granted a franchise in 1901, and the line opened to Danville in 1903. In 1907 the system was extended west to Decatur. This section is said to be the only interurban line in the country operating sleeping cars.
In December, 1890, an ordinance was passed by the City Council of Champaign granting the Urbana and Champaign Railway, Gas and Electric Company the right to light the streets of that place, and a similar privilege was accorded the corporation by the municipal author- ities of Urbana. The first are lamps were used in Urbana during 1893 and in Champaign during 1896.
The water supply of the Twin Cities is controlled by the Champaign and Urbana Water Company, so that transportation interests are what remain to the great corporation which has had a continuous history of sixty years. For many years H. J. Pepper has been its active and resident manager.
For three or four years, during the '90s, B. F. Harris, now presi- dent of the First National Bank of Champaign, owned and operated the street railway, gas and electric system of the two cities. He sold out his interest to Mr. McKinley, who enlarged and improved the system and has stood at the head of the ownership ever since.
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