History of Chicago. From the earliest period to the present time, Part 49

Author: Andreas, Alfred Theodore
Publication date: 1884
Publisher: Chicago, A. T. Andreas
Number of Pages: 1340

USA > Illinois > Cook County > Chicago > History of Chicago. From the earliest period to the present time > Part 49

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J. Y. Scammon obtained control of the building in 1842, at which time it was rebuilt or remodeled, and from that period on, underwent frequent changes. A hand- some block, modern in style, now stands on its former site. The building was, in 1857, a square three- story frame, the first floor occupied as stores, the second as offices, and the third as the " hall," so rich in historic lore. But with the rapid growth of the city in size and population came the advent of theatres, halls, churches and court-rooms ; and the "old Saloon Hall," having served its day and generation, was forced from its long- held prominence before the eyes of Chicago's citizens, and soon existed only in the memories of those to whom a simple mention of its name awakens a flood- tide of recollections.

CITY HALL .- In May, 1837, the Common Council leased a room in the Saloon Building, for their own use and for the accommodation of the Municipal Court. At the expiration of their five years' lease the city fathers moved to Mrs. Nancy Chapman's build- ing, opposite the jail, corner of LaSalle and Ran- dolph streets. The public square at this time, 1842, was fenceless, and presented such a dilapidated and barren appearance that citizens were urged to improve the park by individual exertion. In April a number of citizens did turn out with shovels, mattocks, etc., and .planted a few trees and built a fence. Henry Brown directed the work. But the public ardor seems to have cooled, although hot for a time, the Democrat, in May, noticing that "the fence around the public square, on Clark Street, stands like a good many politi- cians we wot of-but half whitewashed." J. Young Scammon and William H. Darris did much, about this time, to improve the appearance of the square.

In January, 1848, the Market Building on State Street was erected by the city, and was the first munic- ipal structure, the Common Council having heretofore rented their accommodations. The building was sit- uated in the center of State Street, fronting forty feet on Randolph and running north toward Lake Street one hundred and eighty feet. It was built of brick and stone, two stories in height. The first floor was laid out into thirty-two stalls. The second story was di- vided into four rooms, the one in the north end (twenty by forty feet,) arranged for a library, and the south room for the City Clerk's office. The center rooms, divided by a partition, with folding doors, one forty by seventy- two feet, the other forty by sixty-eight feet, were used by the Common Council and for other public purposes. The entire cost was $11,070. J. M. Van Osdel was the architect and superintendent. The Common Council occupied their new rooms for the first time November 13, 1848.

In 1850 the county and the city commenced to agi- tate the project of erecting a court-house, to be occu- pied jointly by them. In December of that year a reso- lution was adopted that the county pay three-quarters and the city one-quarter of the expense to be incurred in the purchase of grounds and the erection of a court house and jail. There was some disagreement as to where the buildings should be erected. In June, 1851, it was decided that one structure was to be erected, a combined court-house and jail. in the center of the square, the latter to be in the basement of the building. The Common Council agreed to unite with them in its construction. On September 12, 1851, occurred the impressive ceremonies of laving the corner-stone of the structure. The military and fire companies, Free Masons, Odd Fellows and members of the Mechanics Institute assembled at Dearborn Park, under command

. See Religious History.

181

CREATION OF THE CITY ..

of Colonel J B. F. Russell, Chief Marshal. The pro- cession was half a mile in length. The ceremonies of laying the corner-stone were conducted by Prof. J. V. Z. Blaney, Acting Grand Master of the Grand Lodge of

THE SECOND COURT-HOUSE.

Illinois Freemasons. After they had been concluded, a salute was fired by Captain Swift's artillery company. The splendid edifice was completed during the year 1853. The $111,000 expended upon it was borrowed upon the bonds of the county, having from seven to eighteen years to run, at ten per cent interest, payable semi-annually. Of this sum $60,000 was taken by R. K. Swift, of Chicago, the balance being furnished by Eastern capitalists. The walls of the structure were faced with gray marble, taken from the Lockport quar- ries, at a cost of $32,000. The building was three stories in height, with two domes and a cupola, the main part being one hundred feet square. There were projections from the north and south fronts, fifty by sixty feet each; also on the east and west fronts thirty- two by sixty feet each. As these projections were car- ried up the entire height of the building, its dimensions were one hundred and thirty feet north and south, and one hundred and sixty-four feet east and west. The stone steps at the north and south ends also added to the imposing appearance of the court-house, which covered an area of 17,000 square feet. In the basement of the building was the jail, and the jailor's dwelling rooms, the Sheriff's office, and the city watch-house. In the second story of the north and west corridors, were most of the city offices: the armory being in the east wing. The Common Council room was in the third story, op- posite the court-room. Its dimensions were fifty-six by sixty feet. The city arms surmounted the Mayor's chair. The Court of Common Pleas first occupied the edifice in February. John M. Van Osdel was the architect and superintendent. This structure served the city until it was swept away by the great fire of 1871.

FINANCIAL AFFAIRS .- Before Chicago had become a city, when any proposition was made to borrow money. the utmost consternation seems to have been

created. Several town officials had even resigned rather than sanction such recklessness. John S. C. Hogan voluntarily ceased to act as Treasurer, in June, . 1835, because the corporation was deterinined, as a sanitary measure, to borrow $2,000 in order to have the streets cleared up and the town otherwise made presentable and inhabitable. After the town people had fairly entered into the spirit of becoming a city, however, their old apprehensions gradually wore off be- cause of the constant repetition of those financial propo- sitions from the authorities. After a time such meas- ures were urged with general enthusiasm. The Chi- cago of that day commenced to draw confidently upon the Chicago of the future-and that confidence was her largest bank account in 1837. In January of that year W. Stuart, the Town Clerk, was ordered to draft a me- morial to the General Assembly for the passage of an act authorizing the Trustees to borrow the sum of S50,- ooo, to be used in permanent improvements. This, however, came to naught, and in March Chicago was incorporated as a city. As a city, just previous to the depressing times of 1837, Chicago commenced active operations with $1,993 in the treasury.

The City Treasurer received from the town, $2,814.29.

With many permanent improvements to be accom- plished, this was not a remarkably brilliant outlook for the young city of four thousand inhabitants. Among other things it was absolutely necessary that more effective provision should be made to guard the city against fire. Two more engines were needed. The streets required improvement, and their drainage de- manded attention. Mayor Ogden was chosen agent-of the corporation, and the Common Council appointed a finance committee, of which Peter Bolles was chairman. It was resolved to borrow $25,000, but to resolve is not always to accomplish. The city promised to redeem its pledge to the Branch Bank of the State of Illinois in five years. The proposition was not accepted, as witness the following note of "regret : "

" STATE BANK OF ILLINOIS, SPRINGFIELD, May 31, 1837. PETER BOLLES. EsQ.,

"Dear Sir : Your letter of the 18th, addressed to the president of this bank and proposing on behalf of the city of Chicago a loan from this bank of the sum of $25,000, has been laid before the di- rectors of the bank, and, I regret to have to state, declined.

" I am very respectfully, your ob't serv't,

"A. H. RIDGELY, Cashier."

It was evident that the State Bank of Illinois con- sidered the burden of carrying the "internal improve- ments " of the State of Illinois, already heavy enough, without taking it upon herself to foster the internal im- provements of the city of Chicago. Nevertheless, as this very respectful letter did not ease the municipal treasury by so much as a feather's weight, in June, 1837, city scrip was issued, of $1, $2 and $3 denomina- tions, bearing one per cent interest, which was to be received for taxes not exceeding $5,000. At this time the Treasurer's office was kept in the warehouse of Ex- Town Treasurer Dole.

The city authorities were not acting in harmony with the County Commissioners. The city was paying about $3.ooo annually for sustaining the Municipal Court, whose benefits were shared by the county, and until this arrangement was changed it was claimed that the Commissioners ought to take care of the city paupers. Chicago was receiving only about $1,000 from tavern and grocery licenses, supporting a $5,000 court, and now the county refused to take care of her paupers ! This was one of the obstacles which had to be sur- mounted during the hard times of 1837. City and

182

. HISTORY OF CHICAGO.

county, however, soon came to an amicable settlement of their difficulties, so that each bore a just proportion of the legal and eleemosynary burdens.

The finances of the city by the first charter were entirely in the hands of the Common Council, the Treasurer and Collectors being merely its clerks. The six Assessors were elected, but the Treasurer and Col- lector were appointed by the Common Council. The supplementary act of February 16, 1847, made the Treasurer and Collector elective officers. These pro- visions remained in force until February 18, 1857, when the treasury department was created, embracing, in addition to the above officers, the City Comptroller (appointed annually by the Mayor), and the head of the new department.

FISCAL POWERS .- By the first city charter the Com- mon Council had authority to raise a sufficient sum by tax on real and personal property, not exceeding one- half of one per cent upon the assessed value thereof, to defray the expenses of "lighting the city streets, sup- porting a night watch, making and repairing streets and bridges, and paying the operating expenses" of the city. The Common Council were given the usual powers with regard to making and assessing of streets and condemning property ; and could not remove a building exceeding $1,500 in value without the owner's consent. When property was to be condemned five commissioners were appointed to assess it and determine the damages and benefits. All taxes and assessments were to be considered a lien upon real estate, and in case of non-payment the premises could be sold at any time within the year from the time of filing the assess- ment roll with the Clerk. If the Common Council should direct the laying of sidewalks in front of any property, and the owner neglected to make them or keep them in repair, the city had authority to construct or repair them and assess the expenses against the lots. By the act approved February 14, 1851, reduc- ing the law incorporating the city, the Common Council was vested with the power to collect taxes not exceeding three and one-half mills on the dollar to defray the contingent and other municipal expenses ; . one-half mill to meet the interest on the bonded debt ; to levy and collect taxes, when required, to erect a city hall, markets, hospital and bridewell ; to lay out public parks or any other public improvements, and to defray three-quarters of the expenses of erecting street lamps and lighting the city. Improvements on canal and school lots and the wharfing privileges were to be sub- ject to taxation, the same as other real estate. In the processes of condemning private property for the open- ing of streets and alleys, and of improving the thorough- fares of the city, the Common Council were to appoint three commissioners to assess benefits and damages. In case of the non-payment of taxes or assessments the premises could be sold at any time within two years from the confirmation of the assessment by the Common Council, the right of redemption depending upon the payment in specie of double the amount for which the property was sold and all taxes accruing subsequent to the sale, with interest. In February, 1851, the Chicago City Hydraulic Company was incorporated, and to meet the exigencies of the occasion in February, 1854, an act was passed to enable the city to borrow $100,000 for the use of the water works and appointing a super- intendent of special assessments. It authorized the levying of a tax equal to one mill on the dollar of real and personal estate to meet the interest on the bonded debt.

By the act amendatory of that of February 14, 1851,

passed February 18, 1857, the office of City Collector was created, who was to be one of the officials con- stituting a treasury department. All orders for the col- lection of annual taxes and warrants for the collection of special assessments were to pass through his hands, and there were to be no more special collectors ap- pointed by the Common Council. The City Collector was to be elected · by the people and appoint his own assistants.

REAL ESTATE .- The two years preceding the panic of 1837 were noted for the wide-spread fever, which attacked the coolest blood, to speculate in real estate. The rise in values was tremendous. Fortunes were made almost in a day, and when the reaction came they were lost even more suddenly. It would be impossible to give anything like a clear picture of this portion of the city's history, since all was confusion and excite- ment. The most that can be done is to jot down items as they have been gathered from the files of the Ameri- can, and other sources, showing the business transacted at the land-office, and, in some cases, the comparison of prices of lots before the excitement, when the fever was at its height, and after the reaction had set in. The general reader can easily draw his conclusions from the details here presented.

In 1830 Jedediah Woolsey, Jr., bought of the canal commissioners Lot 9, Block 44, for $50. Alexander Wolcott purchased eight lots in Block I, during the same year, paying $692; also the east one-half, north- east quarter Section 9, Township 39, Range 14, (eighty acres), at $1.1272 per acre. John S. Wilburn bought Lot I, Block I, in 1830 for $60. John S. C. Hogan paid for Lots 1, 2, 5, and 6, $116, and in 1836 bought Lot 7, paying $12,000 for it with the greatest of alacrity. The above are specimens of some of the earliest purchases. In May, 1835, the land-office was opened. To the close of the sale the receipts amounted to $386,500, of which about $353,500 were for lands sold at auction and the balance under the pre-emption law. During the next month E. K. Hubbard and W. L. Newberry advertised sales of valuable. lots, the former having three hundred and fifty to dispose of. In October, A. Garrett announces in the American that from January 4 to the 27th of that month he has sold $1,800,000 worth of real and personal property. He had fitted up a large room on Dearborn Street and had an "auction room equal to any in New York or Phila- delphia."

In November the rate of assessment for the coming year was fixed by the town at one-half of one per cent. A lot fronting eighty feet on the water by one hun- dred and fifty feet on Dearborn, purchased for $9,000 in the spring of 1835, brought $25,000 in the succeed- ing winter. Says the American in April, 1836 : " There is a piece of land in Chicago, costing $62 in 1830, which has risen in value one hundred per cent per day. It sold last week for $96,700-one-quarter down and the remainder in six, twelve and eighteen months, at ten per cent." Charles Butler, of New York states, in a later issue, that "in 1833 one-quarter of Kinzie's ad- dition was offered for $5,500-worth then $100,000. In 1833 forty acres of land worth $400 could not be purchased in 1836 for less than $200,000. In 1834 the . Hunter property' was purchased for $20,000. In the spring of 1835 it was resold for $100,000. It is now (September, 1836) worth $500,000.

Notwithstanding which tremendous rise in values of real estate, in pursuance of a notice issued by N. H. Bolles, Town Collector, that all property would be sold upon which the corporation tax of 1835 remained un-

183

CREATION OF THE CITY.

paid, September 10, 1836, a great number of lots were advertised. Of those which appear in the American of October 1, one hundred and fifty-five were taxed less than $1 ; forty-two from Și to $5 ; ten from $5 to

N.H. Molly

$10 ; twenty-two between Sto and $25, and one at $39. In Wolcott's addition one was taxed $10.50 ; three be- ing $7.50 and Sro ; the remainder less than $7. In the North Branch addition no tax reached $1. In Waban- sia addition three lots which were advertised were as- sessed $2.50, $3.50, $7.50 ; in the "original town " one for $50.50 ; two for $30 each ; one for $19, seventeen for Sto, and eighteen less than ȘIo.

The reaction from the inflation of 1835-36 was set- ting in. In January, 1837, the town passed an ordi- nance relating to the sale of lots for taxes. It provided that the assessment on all taxable lots should be made annually, and the roll returned to the Board previous to October 1. The Town Collector was to notify the pub- lic by the 15th of that month that he would advertise all lots for sale upon which the tax remained unpaid on February 1. If not redeemed, the purchaser at the tax sale was entitled to the deed. In March, 1837, another · lot of " delinquents " appeared to have forgotten the value of Chicago real estate. In the "old town " most of the lots advertised for sale were taxed at $2.50 apiece-the highest $45. The highest tax upon a water lot in Kinzie's addition was $20; a dry lot $47.50. The majority of lots in Wolcott's addition were assessed at $2.50, the highest one at Sio; in Wabansia ad- dition, the highest $5, the majority at $1.25 ; in School Section 21 the highest $21, the majority at ȘI. In North Branch addition out of three hundred and eight lots advertised for sale the tax of only twenty- four reached $1.25, most of them being assessed at thirty-seven cents per lot. The taxes collected during the year ending May 1, 1837, amounted to $11,659.54, of which $2,661.26 was the balance assessed during 1835, and $8,998.27 the corporation taxes on real estate for 1836.

The panic of 1837 brought great distress to this community, and delayed the growth of Chicago as a city. Its reaction here was principally felt in real estate circles, it being almost impossible to dispose of land, at any price, during 1838. The canal improvement was really about all that sustained and encouraged Chicago for nearly ten years. Many people left the city in 1840. Although the hard times of 1837 and 1838 affected the sales at the land-office, as a "business institution," it was as persistently prosperous as any that can be named, from May 28, 1835, when it opened, to May 1, 1846, when it closed. Witness the figures :

1835.

370,043.38 acres

1836.

202,315.96

1845

3,065,022

10,691 27

11,077 5S

12,088

State

1846

4,521,656

16,045 41

15,825 So

14,169

City

IS47

5,849,170

13,179 SQ

18,159 01

16,859

City

1848

6,300.440

20,338 38

22,051 54

20,023

City

IS50

7.220.249

$,526,717

+140,590 84

63,355 87

34,000

Estimate

IS52

10,461,714

+126,035 00

76,948 96

35,734

City

IS53

16,841, 831 . +189,670 00

135,662 68

60,662

City

1854

24,302,239 ; +248,666 00

109,0SI 64

65,872

City

IS55

26,992,S93

+325,000 00

206,200 03

80,023

State

1856

36,335,201

+435,000 00

572,046 00

84,113

City

1857

35,991,732

: +535,000 00

430,190 00

93,000

Estimate

The growth of Chicago from 1842 to 1850 was slow.

In April, 1852, the city negotiated its first great loan-$250,000, payable in twenty years, through Dun- can, Sherman & Co., of New York City. This was on account of the inauguration of the new system of water works.

The growth of the city from 1850 to 1855 was mar- velous, and the confession is said to have been made by certain real estate men that though they "did their best" at representing the rise in land, the facts out- stripped their stories. It was during this period that Chicago inaugurated her grand system of water-works and drainage. Then, unfortunately, she experienced her great set-back, the panic of 1857. The city was so embarrassed that in September the Council ordered the issuing of $100,000 bonds. It was done and Comp- troller Hayes went to New York to negotiate them. After using his powers of persuasion for a week he returned, entirely unsuccessful in his mission.

By the winter of 1857 a large number of laboring men were out of employment, and the city authorities were called upon, in the midst of the most depressing times, to inaugurate public improvements and thus assist them financially. Special committees of the Common Coun- cil were appointed, who found it impossible to appro- priate money from the city treasury for charitable objects, without express permission from the Legisla- ture, and especially when the whole available means of the city were required to pay her current expenses and honorably meet her maturing indebtedness. Further- more, the city could not, as suggested, make advances through her credit to carry on public improvements then pending, for which assessments had not been collected, because all taxes had been collected to their full extent and were paid in so slowly that the Comptroller found it difficult to provide for the most necessary expenses. In the then state of the money market it was impossi- ble to raise money by a loan. The filling of Washing- ton Park, however, had been contracted for and would provide employment for a great number. Most of the improvements which could be ordered at that time would have to be made upon remote streets, and the assess- ments upon adjoining property would fall upon the poorer people. All that could be done, therefore, was for the city to hasten the construction of works for which orders had been passed and warrants issued.

The following table exhibits, in condensed form, the standing of the city, financially and otherwise, from 1837 to 1857, inclusive:

YEAR

PROPERTY VALUATION.

LIABILITIES OR BONDED DEBT.

TAXES COLLECTED.

POPU- LATION.

CENSUS.

1837

$ *236,842

$ 5,905 15

4,170

City

1838

*235,936

$ 9,996 54

8,849 86

4.000

Estimate

1839

*94,803

7,182 25

4.664 55

4 200

Estimate

1840

*94,437

6,559 63

4,721 85

4,479

U. S.

1841

*166,744

12,387 67

10,004 67

5,500

Estimate

18.42

*151,342

16,372 0I

9,181 27

6,590

Estimate

1843

1,441,314

12,655 40

8,647 89

7.580

City

1844

2,763,281

9.795 35

17,166 24

8,000

Estimate

1837-

15,697.87

183S.

87,891.43

1839.

160,635.70

1840.

142, 155.00

1342.

194.556.11

1843-

229,459.70

1844.

230,769.63

1845.

220,525.03

to May 1, 1846.

61,956.14

TOTAL.

2,054,592.16

*Exclusive of personal property.

Bonded debt.

IS49

6,676,64

36,333 20

30,045 00

23,047

138,593.16

1851

+03.395 60

25,270 $7

C'ity

184

HISTORY OF CHICAGO.

Governor Bross, in his " History of Chicago," makes the following comparison of the prices of land in 1830 and 1832 and compared with the same in 1853, only about twenty years thereafter. The figures are sugges- tive of the immense strides made by Chicago in every- thing material during this period :

FIRST PURCHASER.

DESCRIPTION OF LOTS.

BLK.

ORIGINAL PRICE.

PRESENT VALUE (1853).

Sept. 27, 1830.

B. B. Kercbeval.

Nos. 5 and 6 29

$ 109 00

$ 21,300

Mark Beaubien

3 and 4 3I

102 00

108,000

Thos. Hartzell.

115 00

62,700

do.

'35 00

10,000

Edmund Roberts and

Peter Medard.

100 00

13,000

Edmund Roberts.

45 00

40,000

William Jewett

5 and 6 28

21 00

17,000

James Kinzie do. do.

2, 3, 5, 7 & 8 21

418 00

131,000

J. B. Beaubien

do.

I, 2, 7 and 8 17

do.

346 00

450,000

. do.

do.

3 and 4 36

John Kinzie

5 and 6 32 2

119 00

163,000

do.

2, 7 and S 5

685 00

128,000

Thomas Ryan. .. Sept. 29, 1830.

42 00

30,000

Stephen Mack ...

7 and 8 43

53 00

57,000

April 3, 1832.

Thomas J. V. Owen

39 00

40,000 39,000

Jesse B. Browne

50 00

28,000

James Kinzie

34 00

18,000

P. F. W. Peck

78 00

42,500

April 5, 1832.

10 }

+70 00

83,300

John Noble

18 1

80 00

100,000

Hugh Walker. Sept. 3. 1832.

61 00

35,000

O. Goss, Washington Co., Vermont . .

70 00

18,000

Dec. 4. 1832.

53 00

50,000

NO. ACRES.

Thos. Hartzell, W. hf. N. E. qr. Sec. 9, T. 39 N., Range 14 E.

.. 80

124 00

800,000

Edmund Roberts and Benj. B. Kercheval, W. hf. N. W. qr. Sec. 9, T. 39 N., R. 14 E. Sept. 28, 1830.

.80

100 00

400,000

James Kinzie, E. hf. N. W. qr. Sec. 9, T. 39 N., R. 14. Sept. 29, 1830.

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History of Chicago. From the earliest period to the present time, Part 49

Author: Andreas, Alfred Theodore Publication date: 1884 Publisher: Chicago, A. T. Andreas Number of Pages: 1340

Author: Andreas, Alfred Theodore
Publication date: 1884
Publisher: Chicago, A. T. Andreas
Number of Pages: 1340