History of Ramsey County and the city of St. Paul, including the Explorers and pioneers of Minnesota, Part 55

Author: Warner, George E; Foote, Charles M., joint author; Neill, Edward D. (Edward Duffield), 1823-1893. Explorers and pioneers of Minnesota. 1n; Williams, J. Fletcher (John Fletcher), 1834-1895. Outlines of the history of Minnesota
Publication date: 1881
Publisher: Minneapolis, North Star Pub. Co.
Number of Pages: 684

USA > Minnesota > Ramsey County > St Paul > History of Ramsey County and the city of St. Paul, including the Explorers and pioneers of Minnesota > Part 55

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The Fuller House,subsequently the Internation- al, was completed this year, at a cost of $110,000, and was opened on September 25th. The builder and owner was Alpheus G. Fuller, who had re- ceived a bonus of $12,000 for building, and had the

lots donated by Wm. II. Randall and J. W. Bass. It did a prosperous business from the date of opening and continued to be the leading hotel of the city until it was destroyed by fire February 3d, 1869.

Itis stated that the close of 1856 saw the city almost doubled in population since the first of the year; the number of people registering at the hotels for the same period was over 28,000.

St. Paul was formed into a single school dis- trict, and a board of education created, consisting of nine members, three from each ward, with the mayor and president of the council ex-officiis members.

Preparations were made in the fall for the com- mencement of work on the St. Paul bridge, piles being driven for the piers in the river bed during the winter.

At this time every one dealt in real estate, and while there were plenty of honorable dealers there were also many who were quite the opposite. Of the latter description few had offices; they would therefore hang around hotels and other public places, and even board the incoming steamboats to offer their lots for sale. Much of this had no value at all, mere paper towns and cities, even in cases where clear titles could be given to the pro- perty. They did a thriving business, did many of the operators, and the proceeds of their specu- lations were mostly spent in fast and riotous liv- ing. One of the most conspicuous of these opera- tors had one of these paper towns located on Coon creek, then in Ramsey county, but now in Anoka county. He sold town lots at $100 each, and among the customers he found was his grand- mother. This lady had such an appreciation of their value that at her death she left them to him as a legacy, and though possessed of much property it was all she left to him. Everything was at the highest tide of apparent prosperity, and no one dreamed of the crash soon to come. All classes possessed the speculative mania, and nearly all were living beyond their means. Ele- gant equipages were to be seen on the streets, and costly entertainments were frequent and numer- ous. Many of the survivers of those times, now in almost humble circumstances, lived on a scale of from ten to fifteen thousand dollars per an- num, without counting the enormous sums that used to change hands over cards. The city was

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full of gamblers and as in all times like those they did a thriving business.

Money, however, was not in circulation in suf- ficient volume for the needs of business, and loans were usually effected at rates varying from three to five per cent. per month. The bankers doing business in the city then were eleven in all, and were as follows: Mackubin and Edgerton, whose office was under the Winslow House, at the Seven Corners; Irvine. Stone and McCormick, in the building lately occupied by the Farmers, and Mechanics' Bank; Wm. L. Banning & Co., on the south side of Third street, between Ex- change and Franklin streets; Meyer & Willius, two blocks above Bridge Square; Caldwell & Co., where George Palmes now has his store; Borup and Oakes, under the Merchants Hotel, on the Third street front; Truman M. Smith, under the old Fuller House; John Jay Knox and Co., where Sweeney's drug store now is; Marshall and Co., at the corner of Third and Cedar Streets; Parker Paine and Co., in a red brick building recently. torn down to make way for Mannheimer's building now going up; Bostwick, Pease and Co., just below Farker Paine and Co.'s; and lastly, Ira Bidwell and Son. These were all private banks, and there is no means of ascertaining the capital they had invested. Some of these banks were hard driven for currency, and all sorts of expedients were resorted to in order to furnish a circulating medium. City scrip, which was below par, was endorsed by the banks, and the simple endorse- ment restored its face value for purposes of cir- culation. Again, other banks bought the plates of defunct banks in the East, and endorsed the notes printed from these plates. It was the semblance of money, the notes having no value whatever, but it made a convenient circu- lating medium, and was rendered current only on account of the signature of the bank endorsing. A simple piece of paper would have answered all practical purposes, with the same guarantee, but these old bank notes looked better, that was all. The currency of state banks was all redeemed on demand, and a favorite method of early bank- ing, was for Eastern banks to furnish this cur- rency to frontier banks, on favorable terms, so that it would circulate for a long time before being presented for redemption. It was a per- fectly legitimate transaction, but it resulted in

throwing vast quantities of this money into the West, and the panic simply wiped its monetary value out of existence, reducing its nicely engraved representations of solvency to nothing.

The financial crisis burst with particular sever- ity upon St. Paul, and the universal distress it caused was greater and more wide-reaching in extent than in the East, in the same ratio that speculation had enhanced prices beyond anything anywhere else. There was little good money in circulation, real estate, which had heretofore been the standard credit and solvency, fell to be- low its actual value. No purchasers could be found at any price, and foreclosures were effected on every side. Universal ruin was everywhere apparent, immigration was suspended, and emi- gration took its place, judgments and executions were constantly being issued and made, all the banks had to suspend, causing the majority of business houses to fail. The stringency of the times was in exact relation to the so recently ex- isting " boom." As the month passed on the state of affairs became more and more serious, and the amount of suffering was beyond all cal- culation. So complete had been the demoraliza- tion of all classes that agriculture had ceased to have charms, and food products had to be im- ported, sufficient not being raised for anything like home consumption. This, therefore, added to. the miserable condition of things, as credit was gone and there was little actual money. The picture is a sad one to gaze upon, but happily its lesson was recognized, its trials accepted. the old pioneer spirit of patient toil and honest industry returned, and the lapse of years devoted to efforts of genuine industry have brought prosperity and happiness once more to the people, and the hum of industry and bustle of trade once more exer- cises its sway over the city.

A directory of St. Paul was issued August 1st, 1856, by Messrs. Goodrich and Somers.

In addition to the banks recorded above, the other business houses in existence were as fol- lows: Books-Combs and Brothers, C. Hamilton and Co., George Little. Boots and Shoes-Grant and Johnson, C. C. Hoffman. Builders-Kid- dell and Stanley, Mason and Craig, George Whea- ton, Wiley and Hill. Blacksmiths-A. H. Cav- ender, Durick and Brougher, Owen and Birdsall. Clothing stores-Jaroslawski and Co., M. Marks

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and Co. Dry goods-Cathcart and Co., A. T. Chamblin, Fonseca and Crawford, Forbes and Kittson, Wm. H. Klapp. Druggists-Bond and Kellogg, Morton and Pace, J. N. Schroeder, Wm. H. Wolff. Engineers and Surveyors-J. A. Case, Charles L. Emerson, Wellman and John- son. Feed stores-Drew and Co., Dunwell, Hartshorn and Colder. Forwarding and com- mission -- Blakely and Burbank, William Con- stans, Culver and Farrington, Wm. F. Perkins, Temple and Beaupre, Charles W. Woolley. Fruit stores-J. W. Foreman, Wm. Nixon. Fur deal- ers-Forbes and Kittson, A. L. Larpenteur, A. H. Mosley. Glassware and crockery-Richard Marvin, Wm. Nixon and Son. Grocers -- Wil- liam Constans, Culver and Farrington, Eddy and Banker, B. F. Irvine and Co., L. Krieger and Co., A. L. Larpenteur, Desire Michaud, Putnam and Rogers, Temple and Beaupre, N. E. Tyson, Charles W. Woolley. Hardware-Baker and Bangs, J. L. Farwell and Co., Markley and Kern, Charles E. Mayo. IIats and caps-Haslett and Thompson, A. H. Mosley, J. J. Shaw and Co. Hotels -- American House, S. Long, propri- etor; Luxembourg Hotel, M. Martin, proprietor; Merchants Hotel, E. C. Belote, proprietor; Min- nesota House, N. Pottgeiser, proprietor; Wins- low House, E. A. Deuel, proprietor. Insurance agents-S. S. Eaton, Charles L. Emerson. Iron Merchants- J. L. Farwell and Co., J. B. IIolmes, Nicols and Berkey. Jewelry stores-Samuel Fowler, Greenleaf and Chappell, Reese and Som- mer. Livery stables-Langley and Co., John Seesholt and Co. Liquor merchants -- F. Ambs and Co., James Daly, Dow and Co., Theobald Kiefer and Co., F. Linz, Desire Michaud, N. E. Tyson. Merchant tailors -- Connor and Son, John Edmundson, A. II. Levis, Mott and Palmes. Painters -- Terwilliger, Williams and Sons. Real estate dealers -- Wm. Brewster, Lyman C. Day- ton, Charles L. Emerson, B. F. Hoyt and Sons, Irvine, Stone and McCormick, Henry McKenty, MacKubin and Edgerton, Samuel G. Sloan, Tru- man M. Smith, Starkey and Petteys, D. C. Tay- lor and Co. Safes-William Constans, Nicols and Berkey, William F. Perkins. Saloons -- Old Napoleon Restaurant, Joseph Wittman, proprie- tor; Terrapin Lunch, T. B. Raymond proprietor. Auction-Kettering, Cleland and Co. Bakers -- Spence and Gies. Baths-J. G. Scholer. Book 21

binder-J. A. M. Hoisington. Chairs-Edwin Cole. Express -- Blakely and Burbank. Gun- smiths-Golcher and Simpson. House furnish- ing goods-King and Rich. Leather and find- ings-Kessler and Riehl. Photographs -- C. C. Tuttle. Pianos -- F. D. Somers. Printers -- Good- rich and Somers, Pioneer and Democrat office. Saddlery and harness-Martin Drew.

During the session of the legislature for 1857, the capital movers renewed their attempts to change the location of the state house, and were very nearly successful. A bill changing the seat of government to St. Peter on the Minnesota river, passed the house by a vote of eight to seven. By sharp maneuvering, however, it never became a law. The bill was sent to the senate to be enrolled. Joseph Rolette was chairman of the committee on enrolled bills, and the original bill and the enrolled copy passed into his posses- sion for purposes of comparison. After this Mr. Rolette was not to be seen, and the sergant-at- arms was ordered to find the honorable gentle- man from Pembina. It was a useless quest how- ever, and for one hundred and twenty three hours the council remained in session without recess, eating and sleeping in the hall of legislation wating for the return of the absent chairman. Time was getting precious, the session was nearly at the time beyond which it could not legally sit, so another bill was procured and enrolled. Both Mr. Brisbin, president of the council, and Mr. Furber, speaker of the house, refused to sign it, endorsing thereon their reasons for so doing. It was signed by the governor, however, and printed in the session laws of that year. No steps being taken to remove governmental offices, a writ of mandamus was applied for to compel the terri- torial officers to remove to St. Peter. Judge Nelson, after taking the matter under advise- ment, decided, that "there had been no law passed by the legislative power of the territory removing the capital from St. Paul to St. Peter," and, therefore, on that ground refused application made for the mandamus.

A special session of the legislature was called by Governor Gorman, for April 27th, to take cognizance of the enabling act, that had been passed by congress, February 26th, and the acts making a grant of land to aid in the construction of certain railroads.

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HISTORY OF RAMSEY COUNTY.

Elections were held on the first Monday in June for delegates to a convention, to assemble on the second Monday in July, at the capital. At the time appointed, two factions, a Republi- can and a Democratic one, were found to exist. Each proceeded separately for some time, until conferences restored harmony, and both parties adopted the same constitution. An election was held for state officers, and the adoption of the constitution, on the second Tuesday in October. An almost unanimous vote was cast in their favor.

The territorial officers held their offices until the state was formally admitted, which did not occur, however, until the next spring. The act was approved by the president, on May 11th.

Notwithstanding the severe state of affairs produced by the financial revulsion, the city council, on September 3d, subscribed $50,000 towards the funds for the construction of the St. Paul bridge, this enterprise having come to a halt from lack of means.

Gas was first introduced into the houses of the citizens during this period, September 19th, being the date of the completion of the works.

The census, taken in accordance with the pro- visions of the enabling act, showed the popula- tion of the territory to be 150,037, of which Ram- sey county contained 12,747, and St. Paul 9,973.

Many improvements in the city had been made before the crash came, 343 buildings having been erected, at a total cost of $591,500.

The hard times continued to intensify; tlie lack of currency was such as to prevent any extended business, unless recourse was had to the old method of barter.

Certain chartered railroad companies, with- out any capital, had obtained from the legis- lature the 4,500,000 acres of land donated to aid in the construction of railroads. These institutions now applied to obtain the credit of the state to aid in the building of these roads. There was an obstacle in the way-the constitution prohibiting the state to loan its credit to any corporation, but the obstacle was not a serious impediment; it could be amended and was so done, the people being anxious to ob- tain relief from any source, and this had been so placed before them that it appeared as if it would have the desired effect. It was intended to make

these bonds the basis of banking, and to issue upon that basis a currency, and as it was cur- rency that the people needed, their vote was ob- tained by such representations. The amendment was voted upon April 15th, and was decided for by an overwhelming majority in its favor. The section amended rcad as follows : "The credit of this state shall never be given or loaned in aid of any individual, association, or corporation; ex- cept that for the purpose of expediting the con- struction of the lines of railroads, in aid of which tlie congress of the United States has granted lands to the territory of Minnesota, the governor shall cause to be issued and delivered to each of the companies in which grants are vested by the leg- islative assembly of Minnesota, the special bonds of the state, bearing an interest of seven per cent. per annum, payable semi-annually in the city of New York, as a loan of public credit, to an amount not exceeding twelve hundred and fifty thousand dollars, or an aggregate amount to all of said companies not exceeding five millions of dollars." etc.

Two years later this was amended, absolutely prohibiting in future the loan of the credit of tlie state under any circumstance, and forbidding the issuance of more bonds. This was the origin of the now celebrated "Five million loan" the end of which has not yet been reached. The relief which this measure was expected to afford was not obtained. Trade was dull, harvests were poor, immigration had ceased, and state scrip had depreciated to forty cents on the dollar and no- body would advance money on the bonds. City scrip during 1858 was worth more than that of the state, but it was not at par by any means, as the following transaction would suffice to show: To pay $1,200 interest. due in December, on the Robert street sewer bonds, the mayor (N. W: Kittson) hypothecated and deposited with Borup and Oakes, $2,000 in city scrip. No security was taken for its return. Agreement was made to pay Messrs. Borup and Oakes, two and a half per cent. per month for the loan, for sixty days, and if interest and principal was not paid at expira- tion, authority was given them to auction off the $2,000 of city scrip in order to repay themselves for the loan. This was done by authority of the council to save the credit of the city.

The third ward was curtailed in its dimen-

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sions this winter, and the fourth ward created out of its shorn limits.

A gleam of light is seen in the fall of 1859. For the first time in its history Minnesota was able to export grain. Improvement becomes vis- ible and a slight growth in the city is noted, the Federal census of 1860 giving St. Paul 10,279 in- habitants. The total business transactions of the city amounted to the sum of $3,181,240, a large fall- ing off, indeed, from the volume reported for 1854. The value of furs exported from St. Paul this year was $161,022. Real and personal estate was valued at $5,771,201. In 1855 it was $2,380,467. From this time on the tide slowly but surely turned. The year 1860 did not see very great ad- vances made in the path of prosperity, but as time passed improvement is noted all the time, interrupted by relapses, perhaps, yet ever moving forward.

Among those to be ruined by the collapse of the bubble of speculation was one Wm. C. Gray. Rendered desperate by his failure, and being in straightened circumstances he committed forgery, was arrested, and in presence of many persons on Nov. 10th, 1860, he jumped from the middle of the large span of the bridge and sank to rise no more in life.

Telegraphic communication was opened this year with La Crosse, the first message over the wires being sent on August 9th. Near- ly all of the buildings on both sides of Third street, from Robert to Jackson streets, were destroyed by fire, nearly thirty business houses suffering from the calamity.

The first execution of a woman under the laws of the state took place this year, on March 23d, it being that of Mrs. Bilanski for the murder of her husband. Itis referred to more freely in the chapters devoted to Ramsey county.

The chief matters of interest during the years 1860 and 1861 are incident to the war of the re- bellion. Business had apparently taken some slight start, and hope in the future was felt, when the fall of Fort Sumter checked its progress for some time. The call for troops was nobly re- sponded to by Minnesota, and in a very short space of time the First regiment was ready, and despatched to the seat of war. Governor Ramsey was in Washington on official business at the time. HIe immediately called on the president, and was

the first of the state governors to offer the servi- ces of the people of his state towards checking the rebellion. When the second call for troops was issued, Minnesota again responded promptly, and, small as was her population, it is calculated that at the time of the Sioux outbreak in 1862, there were already five thousand of her citizens in the ranks of the army. A full account of these war times and the part Minnesota took in sup- pressing the rebellion, will be found commencing on page 132 of this work. So, too, the history of the troubles with the Indians will be found on the pages immediately following those devoted to the war period.

In the midst of these sad events, affairs tending to pave the way to future prosperity, were in progress, and the era of railroad building set in. The foreclosed franchises were conveyed by the state to new corporations, during the session of 1862, and the St. Paul and Pacific Railroad Com- pany commenced work in earnest, opening their road to public traffic, before winter set in, from St. Paul to St. Anthony. From this period on great progress was made in railroad construction , a subject which will be treated more fully on suc- ceeding pages.

The news of the close of the war was received in St. Paul with great rejoicings. The union vic- tories were commemorated in an appropriate man- ner, and a series of receptions was given to the regiments on their return.

The national bank system, which was inaugu- rated in 1863, helped St. Paul in a financial man- ner, as it led to the establishment of the First National Bank, its doors being thrown open for business on December 8th.

The generosity of the citizens of St. Paul was manifested in a magnificent manner by their con- tributions to war charities, it being reported that the entire amount raised during the war period was $225,000. The sanitary fair held January 9th, 1865, resulted in the collection of $13,000, leaving $10,000 after paying all expenses. The money was expended in relieving the necessities of the families of soldiers in the city.

With the close of the war came a period of great commercial activity, money was abundant, the tide of immigration once more set in, employ- ment was found for all that sought it. The population, according to the census taken in the

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summer of 1865, was 12,976 for the city of St. Paul. But these figures steadily grew larger and larger, at a rate of increase wonderful to behold.

In 1866 the Chamber of Commerce, which for some time previously had existed merely in name, was resuscitated, and its influence, since then has been exerted in every direction that would benefit the city.

A period has now been arrived at when the his- tory of St. Paul becomes simply the record of the erection of new buildings, of measures taken to improve the city, the growth of business, and es- tablishment of manufactures. These matters will be found to be treated fully in chapters follow- ing this, devoted particularly to a description of churches, schools, public institutions, railroads, manufactures, etc.

Several severe losses were occasioned about this time by fire. Among the buildings totally or partially destroyed were the Cosmopolitan hotel and ten other structures on May 26th, 1866; the Mansion house, corner of Wabasha and Fifth streets, on January 25th, 1867; the machine shops of the St. Paul and Pacific railroad, with a loss of $150,000, on June 22d, 1867; several buildings on Third street above Cedar, including the old St. Paul house on Bench street, on May 23d, 1867; Weede and Brother's wholesale grocery store on Third street, February 22d, 1867; a row of frame buildings on the corner of Third and Wabasha streets, on January 9th, 1868, on which was after- ward erected the fine block owned by P. F. McQuillan; Mackubin's block, with a loss of $120,- 000, on April 21st, 1868; the Rotary mill on May 22d, 1868; Christ church on August 8th, 1868; the International hotel, loss $125,000, on February 23d, 1869. Heavy as these losses were, however, they ultimately resulted in a gain to the city from an architectural point of view. The era of extensive building had set in and the whole face of the city was being changed. In 1869 the number of buildings was 509 at a cost of $1,395,727; in 1870, the number was 771, at a cost of $1,735,200; in 1871, 832, at a cost of $1,735,761; in 1872, 934 at a cost of $2,846,487.

The comfort of the citizens was much en- hanced, on August 23d, 1869, by the completion at that date of the city water works.

Commercial prospects were advanced by the completion of the Lake Superior and Mississippi

railroad to Duluth, August, of 1870. Many lines of railroad were now in operation, and the im- proved system of inter-communication made itself felt in many ways to the benefit of the city.

The population of the city was now 20,031, and the extent of streets in use, in which were more or less buildings, had a length of 125 miles.

Quite a series of improvements took place dur- ing the year 1872, besides the number of build- ings that were erected. A Board of Public Works was organized, consisting of five members, one from each ward. Five commissioners were ap- pointed by the district judge, with authority to pur- chase a tract of land suitable for a city park; they obtained for that purpose 260 acres of ground at Lake Como, the price for which was $100,000. This amount the city council obtained by the issue of bonds. Street railroads made their en- try on the scene, two miles being opened for traffic on July 14th. The St. Paul, Stillwater and Taylor's Falls railroad opened its lines for business in the early part of the year. The city limits were enlarged, and each ward divided into two election precincts. The date for the holding of elections was also changed, so as to occur at the same time the state elections were held.

The year of the panic, 1873, was one contain- ing few matters of interest. Building was checked to a considerable degree, but the banks all stood firm, few failures occurred, and those that did go under did not affect the community to any appreciable extent. The effects of the financial crisis were really not felt in this city until several years later, and then the influence it exerted was not nearly so severe upon trade as it was in the East. The harvests were good and these brought wealth into the state. The rail- road interest, however, suffered extremely, and construction ceased for some time.

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