USA > Illinois > Lee County > Early Lee County, being some chapters in the history of the early days in Lee County, Illinois > Part 8
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The Galena Gazette of August 31, 1839, contains an item, taken from the Chicago American of August 23, saying that James P. Dixon had just passed through Chi- cago on his way home after an unsuccessful search for Hamlin ; that he went to Louisville, thence to Portsmouth, thence through Ohio towards Canada until business com- pelled him to return home, and that he found no trace of Hamlin after the latter had left Louisville.
In the "Biography of John Dixon," in the Dixon Tele- graph of July, 1876, and reprinted by Kurtz in his His- tory of Dixon and Palmyra, in speaking of this matter, appears this :- "James P. Dixon and Smith Gilbraith started in pursuit, traveling by stage coach through many of the Eastern States, but they returned without success. Soon after James and Elijah Dixon renewed the search, traveling in Canada and the Eastern and New England States, striking his trail once in Connecticut, but again
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EARLY LEE COUNTY
losing it, they returned to Dixon without recovering any- thing. In the meantime Mr. Dixon had raised the money and paid the amount to the State. Sometime afterwards Hamlin drew a prize of $25,000 in a lottery. With this and his other ill-gotten gains, he returned boldly to Ga- lena, and opened a store. Mr. Dixon at once instituted suit and recovered judgment for the $11,500 and interest. The sheriff closed out all of Hamlin's goods that he could get possession of, which paid the costs and expenses of the search for Hamlin, and a few hundred dollars of the stolen money."
This is inaccurate in some respects. Mr. Dixon com- menced his suit, as already shown, July 20, 1839, which must have been before James P. Dixon made his first trip and long before Hamlin opened a store in Galena. That suit, being, as it was, prosecuted to a judgment, would bar any other suit, and Judge Drummond would have so advised Mr. Dixon, and it is not at all probable that the suit mentioned in the quoted matter was brought.
In the files of the estate of Smith Gilbraith in the County Court of Lee County is a paper purporting to be a statement of cash paid to Smith Gilbraith and others by John Dixon. One item reads thus:
"July 26, 1839. Paid S. Gilbraith to go after Hamlin $170."
The Dixon Telegraph of July 27, 1876, has a letter from Thomas S. Hubbard, Monticello, Iowa, saying that he was employed in the division engineer's office at Dixon at the time Hamlin took this money, and that James P. Dixon caught Hamlin in Baltimore where he had just drawn a prize in a lottery and then and there collected the amount stolen, "but Mr. Dixon had already paid us all up." For the reasons already stated, it is apparent that Hubbard is wrong so far as the payment by Hamlin is concerned.
The Board of Public Works held a meeting August
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HAMLIN'S CONFESSION
27, 1839, and the record of that meeting, in part, reads as follows :-
"Mr. Peck presented the following communication from Orrin Hamlin to John Dixon, Esq. to wit :
Louisville, July 15, 1839.
Mr. Dixon, DEAR SIR :
I take my pen in hand to inform you of an event that you little expect. I proceded in relation to the draft as you directed me ; deposited it and took a cer- tificate of the same, and called on my return and got the money. After drawing the money it struck me that I could make a first rate speculation by go- ing back to Louisville and buying up Mineral Point money, Cairo and Dubuque, which was selling at a discount of 4. 5 and 10 per cent. discount. Accord- ingly I started on a boat up the river (forever to my shame be it spoken), and on my way there I got en- gaged in playing poker for the first and last time in my life for money. I got a hand I supposed to be the best in the pack, and I commenced betting. and my opponent backed me up, until he got up to eight thou- sand dollars, and then called me, and to my astonish- ment and ruin he held the best hand, whereas mine was but the second best. Judge of my feelings at the time-it nearly turned me mad. I resolved in my mind during the night what was to be done- return I could not, so I resolved to send for my family and leave the country. until by the means of the balance I could return and pay you, which if the Lord lives. and my soul lives, shall be done as soon as any honest business will enable me to do so. I hope you will let my work all be measured and give me credit for per cent. and all. and let my brother know to what extent I am deficient-it is better for laborers to lose a part than you all. I intend leaving this country al- together for some length of time-but you need not be afraid but what you will get the money some time not far distant, for I swear by the holy Evangelist that if I am permitted to live. I will earn the money and pay you every farthing: but for the sake of my connections, do not be harsher with character than
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you can help to sustain yours, for I do believe I am still honest (but been very imprudent) and you shall vet say so if I live. It will be useless to follow me, for my plan of leaving is so well executed I shall leave no traces behind, for I could not look an acquaintance in the face again until all things are righted again. I have sent for my family, but have concealed all this affair from them. They will be here today or tomorrow. My business is all arranged in regard to my private affairs, which is not in a very prosperous condition, nearly all mortgaged for about half its worth. which I expect will have to be sacrificed. I am afraid you will lose your office by my imprudence, but if you do I will try and make amends for it: for the works are short lived. for there is eight millions of Illinois bonds thrown in market in Europe with- out a prospect of getting a dollar. With regret I bid you adieu, and when we meet again I am in hopes you will have good reason for a return of your friend- ship, which has been so grossly abused by your
I do not know what to say
ORIN HAMLIN.
John Dixon, Esq.
We, the undersigned, do hereby certify that we have examined the original as written by Orin Ham- lin, that we are acquainted with his handwriting, and that the within is a true copy thereof.
A. M. HUNT, H. B. STILLMAN, RUDOLPHUS ROUSE.
Peoria, July 28. 1839.
Which was read and ordered to be filed. On motion of Mr. Peck the following preamble and order was adopted, to wit:
Whereas, proof has been made to the satisfaction of this Board, that Orin Hamlin a contractor on the Central railroad in the 6th Judicial Circuit, has received from the Commissioner a large amount of money over and above the sum due him; and whereas said Commissioner has no means of obtaining the receipt of said Hamlin to his estimates ;
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JUDGMENT
Therefore ordered that the Secretary of this Board cer- tify on the estimate of the Engineer that the amount of said estimate should be properly credited to John Dixon, Commissioner of the 6th Judicial Circuit."
When he made his final settlement with the State, Mr. Dixon was credited with payments to Hamlin aggregat- ing $4,923.44 as though made in August, 1839, and it is reasonably safe to assume that these payments were made pursuant to the action of the Board of Public Works, and that Mr. Dixon charged this amount against Hamlin.
The attachment suit brought by Mr. Dixon was allowed to slumber until June 18, 1841, when, as appears from the Jo Daviess County records, he obtained a judgment in the case against Hamlin for $3,055, and costs. On December 14, 1841, Alexander Young, then Sheriff of that county, reported the judgment "satisfied in full." This clearly disproves the statement that Mr. Dixon "re- covered judgment for the $11,500 and interest," and there is no record of any suit by Mr. Dixon against Hamlin in Jo Daviess County, except this attachment suit.
That Hamlin did return to Galena is shown by a letter written, October 7, 1840, by Smith Gilbraith to Major James Sterling in which Gilbraith, speaking of this mat- ter, says-"I am going to Galena this week to see Hamlin who owes him (Dixon) yet $5,000." Considering this in connection with the fact that judgment was taken for but a small part of the claim, it seems very clear that Hamlin must have paid a good part of the debt before the judgment was rendered.
That there was difficulty in collecting this judgment is evident from the sworn statement of plaintiff's attor- ney, which reads as follows:
"On the 18th day of June A. D. 1841, I obtained a judgment in favor of John Dixon vs. Orin Hamlin before the Jo Daviess Circuit Court for the sum of three thousand and fifty five Dollars ($3055). On this judgment an execution issued & a levy was made
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EARLY LEE COUNTY
& some property sold by the sheriff. I find by my memorandum book that on the 27 day of September 1841 the sum of two thousand six hundred 31/100 Dollars were paid to me by the sheriff which sum ($2600. 31/100) I paid to Mr. Gilbraith on the 14th day of October 1841 as by the order of Mr. Dixon which I think I still have in my possession. Of course this amount of $2600.31 did not pay up the judgment and there was a stable sold & bought in in the name of Mr. Gilbraith to whom Mr. Dixon had committed the whole business. This stable was afterwards sold by Mr. Gilbraith at auction I think some time in April 1842. The stable brought $405. Mr. Montgomery was the auctioneer. Out of this sum of $405 Mr. Montgomery paid me one hundred Dollars ($100) on the 2d day of May 1842. There was something paid out of this sum of ($405) for ground rent & for the expenses of sale. It appears by the receipt of Mr. Gilbraith which I have seen that on the 16th day of May 1842 Mr. Montgomery paid to Mr. Gilbraith the sum of ($254.77) two hun- dred fifty four 77/100 Dollars-which I suppose was the proceeds of the sale after deducting the $100 paid me and the expenses of sale & the ground rent. It seems that Mr. Gilbraith received on this judgment of Mr. Dixon vs. Hamlin $2855.08 being the amount paid him by me and Mr. Montgomery as above stated I paying him $2600.31 & Mr Montgomery $254.77.
All of which is true to the best of my knowledge, recollection & belief.
THOMAS DRUMMOND.
STATE OF ILLINOIS JO DAVIESS COUNTY
Sworn to & subscribed before me this 3d day of August A. D. 1843, as witness my hand & the official seal of the Circuit Court of Jo Daviess County. (Seal.) Attest WM. H. BRADLEY Clerk of Circuit Court of Jo Daviess County."
Hamlin was elected sheriff of Peoria County in Aug- ust, 1828, and county commissioner in 1834. In 1833 the
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HAMLIN AT PEORIA
county court of Peoria County granted a permit to Alvah Moffat, Aquila Moffatt and Hamlin to erect a mill dam across Kickapoo creek, in what afterwards became Lime- stone township, and they built what was long known as the Monroe mill. In 1836 Robert Little, Augustus Lang- worthy and Hamlin laid out the town of Detroit, on the bank of the Illinois about six miles above Peoria. In 1843 he built in Peoria the county's first steam flouring mill. It would appear that Hamlin did not remain in hid- ing very long, for on December 8, 1840, Hart Fellows, Commissioner of Public Works for the 5th Judicial Cir- cuit, paid him $2,177.91 for construction work, but the report does not disclose anything more of the matter and we do not know where the work was performed. The reference, in his letter, to his brother prompts the thought that he may have been a brother of John Hamlin of Peoria.
THE DIXON HOTEL COMPANY.
In 1837 the people of Dixon felt the need of a hotel that would be more in keeping with the town. Some of her enterprising business men conceived the idea of forming a corporation that would build and operate a modern, up- to-date hotel. They prepared and sent to Vandalia, then the capital of the State, a bill for "An Act incorporating the Dixon Hotel Company," which, having passed both houses of the legislature, received the Governor's ap- proval March 2, 1837.
This Act declares John Atchison, James Evans, Charles S. Boyd, John Dixon, William C. Bostwick, Smith "Gal- breath," James P. Dixon, L. S. Huff, John Brown, and their associates and successors, a corporation for the term of twenty years, under the name of the "Dixon Ho- tel Company." It placed the capital stock at twenty thousand dollars, appointed Evans, Boyd, "Galbreath" and James P. Dixon commissioners, to receive subscrip- tions for the capital stock, and empowered the company to purchase and hold land on which it could build and operate a hotel during the term of the corporation's life.
Boyd lived in Bureau county and was a brother-in-law of John Dixon. Atchison and Bostwick lived in Galena, the former being a director and the latter cashier of the Galena branch of the State Bank. Bostwick afterwards studied law and was admitted to the Illinois bar in 1842. Possibly the company thought it could obtain funds from the State Bank, as that seems to have been an easy thing to do.
This Act does not, either by express grant or by im- plication, authorize the company to issue any notes or bills with the intent of circulating them as money. An examination of the original bill, which still remains on file in the office of the Secretary of State, shows that when the bill was presented to the legislature it contained a
(103)
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ISSUED BILLS
section, numbered two, specifically giving the corporation power to issue such bills, but that section was stricken out, and the bill was passed without any such provision.
The fact that the movers in the enterprise asked for a grant of such power may have prompted in their minds the thought that as the bill passed it did give that au- thority. At all events, whatever the reasoning may have been, the company did issue such bills and some of them are still in existence. The bills that have survived are in the denominations of one, three and five dollars. One of them is shown here. These notes had nothing-what- ever to do with the work on the old central railroad.
All of them that have come to our knowledge were pay- able to "N. Biddle or bearer". Students of United States history need not be told that this fictitious payee was the head of the Bank of the United States.
The company built the foundations for the original part of what is now the Nachusa Tavern, and then stop- ped work, its money being spent, and its energies ex- hausted.
In 1853 another corporation, with a capital of ten thousand dollars, built the original Nachusa House on these foundations, the house being opened to the public for business December 10, of that year.
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THE ILLINOIS AND ROCK RIVER RAILROAD COMPANY.
The complete failure of the state's internal improve- ment scheme was a hard blow to Dixon, but her enter- prising business men were resourceful and soon evolved a plan that they fondly believed would secure to them some of the advantages they hoped to secure from the construction of the Central Rail Road. They appealed to the legislature and secured the passage of "An Act to provide for the construction of a railroad from La Salle to Dixon," which was approved February 27, 1841.
This act created a corporation to be known as the Illi- nois and Rock River Rail Road Company, to exist for a term of fifty years, with a capital stock of five hundred thousand dollars, divided into fifty dollar shares, and authorized it to construct and operate a railroad from La Salle "to the village of Dixon, in the county of Lee," terminating at such points on the Illinois and Roek Riv- ers as the company might select.
It appointed Horatio Newhall of Galena, Michael Ken- nedy of La Salle county, William Wilkinson and Dr. Oli- ver Everett of Dixon, commissioners to receive subserip- tions for the capital stock.
The act empowered this company to take possession of such roads or parts of railroad as had been constructed by the state, and to use them, and all materials of the state thereon, in the construction of the proposed railroad, but carefully provided that such possession was not to be taken until all the improvements made by the state and all the materials of the state had been valued by some competent engineer, and the amount so found by the engineer to be their value should be considered as so much capital stock of the company owned by the state. The state agreed, by the terms of the aet, to furnish such necessary iron for a single track railroad as it had on hand.
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STOCK SUBSCRIPTIONS
It was further provided by the act that if the company did not complete its line within five years, or did not expend at least ten thousand dollars in twelve months after its organization, and at least ten thousand dollars in each twelve months thereafter, then the railroad and all the property of the company should revert to and become the property of the state.
The commissioners opened subscription books and re- ceived some subscriptions, and caused receipts to be is- sued to the subscribers, one of them being shown here. Having obtained some money by this method, the com- pany undertook to complete the railroad, but was unable to do this, as it could not obtain the necessary capital.
Enough of receipt No. 1 remains to show that it was for $10, paid by Harrison, was dated the same day and was signed by Keeler. The ornamental work at the left end varies from that shown above.
Illinois and Rock River Rail-road Company,
Otis Certaes that 17220 Ricorrere or bearer. is entitled to a credit on the purchase of stock in the ILLINOIS AND ROCK RIVER' RAIL-ROAD COMPANY, to the amount of . HM: DOLLARS.
By order of the President and Directors, No. 4 drie 14 - 182, 2.
In its chapter on the town of Amboy, Hill's History of Lee County, p. 304, in speaking of the old Central Rail- road, says :
"Dr. Harrison, of Peru, took a contract to build part of the line, and sent a force of laborers here in the fall of 1841 to renew the grading which had been begun four or five years before and worked upon at intervals afterward. He started a bank in Peru and issued circulation; but one day somebody went down and demanded specie for his paper, and was
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EARLY LEE COUNTY
refused. When news of this reached the gang of men up here they dropped their tools, and the sun never rose on a resumption of the work. Harrison's paper was in the hands of the people in this section, where it has remained so long that its 'staying qual- ities' are fully and forever established. It was known as 'Bangs' railroad money', and is a reminiscence of 'wildcat' banking, and of the old Central 'wild- cat' improvement."
On page 471 of the same work, in the chapter on the town of May, speaking of John Darcy, who settled in that town in 1840, we find this :
"About this time Mr. Darcy worked a few weeks on the old State railroad, then being graded through May. Mr. Darcy, like many others, received nothing for his labor but some worthless paper issued by a certain A. H. Bongs (Bangs) of La Salle, who had started a bank there."
When the company suspended work the laborers be- came very indignant, and in their rage seized Bangs and dragged him through the streets. Serious injury would have been done to him but for the intervention of others who put him in a skiff and sent him down the river. (Beebe, History of Peru.)
A reading of Beebe's History of Peru induces the be- lief that the author thought "Dr. Harrison" was an unscrupulous quack.
Anson H. Bangs was president of the Bank of the United States at Syracuse, New York, as well as of the Farmers & Mechanics' Bank of Onondaga, at Fayette- ville, New York.
From the report made to the legislature, in 1840, by Governor Carlin, it appears that the State had sold its internal improvement bonds, to the amount of fifty thou- sand dollars, to A. H. Bangs & Co., who were connected with the Onondaga Bank, and who obtained possession of these bonds without making any payment for them, and then sold them or some of them, to third persons,
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TIME EXTENDED
whose names the Governor was unable to learn. He advised that suit be brought against Bangs to restrain the sale of the bonds, so far as that could be done, and to compel payment for them.
There was presented to the Thirteenth General As- sembly a petition reciting that under the act providing for the incorporation of the Illinois and Rock River Rail Road Company, the commissioners named in that act opened books for stock subscriptions and it was all taken by A. H. Bangs, who thereafter acted and was recognized as the president of that company; that the company, through Bangs, let contracts for the construc- tion of the road and that work to the amount of ten thousand dollars was done thereon by the petitioners; that "the company did not pay a single cent to any contractor or workman" and that both the company and Bangs had absconded and disappeared. The prayer of the petition was that the state estimate the work the petitioners had done and charge it to the amount ex- pended by the state on that part of the Central Rail Road. The petition was sent to the committee on internal im- provements, and, on February 27, 1843, laid on the table.
All the signers of this petition were residents of La Salle county. The petition does not show in what locality the work mentioned was done.
The legislature passed, and there was approved on March 6, 1843, "An Act to extend the time for the completion of the Illinois and Rock River Rail Road," which provides that the time for the construction of the road shall be extended until five years after the final completion of the Illinois and Michigan canal, and it authorizes the company to extend its line beyond "the village of Dixon" and to terminate it at some point on the Mississippi River.
On May 16, 1843, Governor Thomas Ford wrote D. H. T. Moss, Esq. :
"I am obliged to you for the information contained
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EARLY LEE COUNTY
in your letter of the twelfth instant; and I accord- ingly empower you to sell any of the timber or stone or other materials, on or near the line of the railroad between La Salle and Dixon, either at publie or pri- vate sale, according to your best judgment; also to change the places of the publie sales heretofore di- reeted. I also authorize you to settle with any and all persons who may have used any such materials ; and to sue for the same, in case they refuse to ac- count, at fair and reasonable prices, and pay for the same."
June 16, 1843, Governor Thomas Ford wrote to George W. Gilson, Esq., as follows :
"In answer to your letter I beg leave to state that I have been informed that the officers and agents of the Rock River Rail Road Company have been selling the materials of the road for their own use and without intending to make the road. This, if true, is a fraud on the State and of a piece with the villainy practiced everywhere upon the publie inter- ests. I desire you to inform the president of that company and all others interested that it is my in- tention to have actions at law commenced here in Sangamon county against all persons found commit- ting those frauds."
Gilson had been an engineer in the employment of the state and in November, 1838, had charge of the construc- tion of the old Central Railroad south of La Salle.
This letter was evidently written when the Governor was not fully advised as to the facts in the case. It brought a letter from H. P. Woodworth, writing in behalf of the company.
June 23, 1843, Governor Ford wrote to Woodworth as follows:
"I received your letter of the 20th instant and am much gratified that the Illinois and Rock River Railroad Co. has been organized in good faith and with the intention of making the road. I heartily wish you success. It appears from your letter that this is the day which has been appointed by Mr. Moss for the sale of the timber, stone, &c.
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SCHEME ABANDONED
"I am sorry that you or some other person did not write me sooner. I did not know who the com- pany were, and from my advices I could not but be- lieve that a pretended company existed who were about to commit great frauds on the State. If, how- ever, I could have been furnished with the informa- tion contained in your letter in time I would have ordered Mr. Moss to delay proceedings until the matter could have been inquired into. If you see Mr. Moss, and he has not yet sold, show him this let- ter and request him to desist until I can further in- quire into the matter."
Woodworth had been principal engineer of the state on the northern division of the old Central Railroad. From this letter it would seem that he had become con- nected, in some capacity, with the Illinois and Rock River Rail Road Company.
We have found no evidence indicating that the Gov- ernor made further "enquiry," or that anything more was done in the matter. It is common knowledge that the road was not built.
THE FIRST BAPTIST CHURCH.
Kurtz's History of Dixon and Palmyra, p. 6, says :
"May 28, 1838, 'The First Regular Baptist Church of Dixon and Buffalo Grove was organized at Buffalo Grove, Thomas Powell moderator, the following named persons were the original members : Houland Bicknell, Rebecca Dixon, Elizabeth Bellows, Jerusha Hammond, Sarah Kellogg, Martha Parks and Ann Clarley."
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