Encyclopedia of Mississippi History Comprising Sketches of Counties, Towns, Events, Institutions and Persons, Vol. II, Part 122

Author: Dunbar Rowland
Publication date: 1907
Publisher: Madison, Wis. : S.A. Brant
Number of Pages: 1020

USA > Mississippi > Encyclopedia of Mississippi History Comprising Sketches of Counties, Towns, Events, Institutions and Persons, Vol. II > Part 122

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A third tract east of Bear creek and south of the Tennessee river, joining the Virginia company tract on the west, bounded on the south by the 34th parallel, and running east from the Tombig- bee 120 miles, bounded on the north by "the north line of this State," and the Tennessee river, was to be granted on the same conditions to Zachariah Coxe, Thomas Gilbert and John Strother and associates, called the "Tennessee company ;" 3,500,000 acres for $46,875.

It was provided that the grantees "shall forbear all hostile at- tacks on any of the Indian hordes, which may be found at or near the said territory, if any such there be," language which verged on the humorous, considering the situation of the frontier; "and keep this State free from all charges and expenses which may attend the preserving of peace between the said Indians and grantees, and extinguishing the claims of the said Indians under the authority of this State," which practically meant that the com- panies would maintain a military establishment and treat with the Indians, which they made preparations to do. It was after- ward claimed by the companies that it was the understanding that any credit paper of the State would be received in payment, except the "rattlesnake money." The minority of the legislature made a protest, claiming that more advantageous offers had been made,

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payable in tobacco and other property and paper issues and public securities. (Moultrie vs. Ga., U. S. sup. court).

The act proposed to convey the right of pre-emption to almost the whole of the lands of the Choctaws and Chickasaws and part of the Cherokee and Creek land. The attitude of the United States government was, "that although the right of Georgia to the pre- emption of the lands should be admitted to its full extent, yet should the State, or any company or persons claiming under it, attempt to extinguish the Indian claims, unless authorized thereto by the United States," such action would be repugnant to the treaties of Hopewell and Seneca, the constitution of the United States, and the law regulating trade and intercourse with the In- dians. Chappell observes that the transaction amounted to a license to the companies to go and make a conquest at their cost and risk; that the terms of the act professed ignorance whether the Indians were at or near the land, and made the pretense of for- bidding "hostile attacks on them," when the settlement itself was bound to be regarded as a hostile act. "Such was too much the logic and ethics toward the Indians of that period of mingled dread and exasperation in Georgia." But giving such provisions of the act their most favorable interpretation, "still they were unavoid- ably mere empty, ineffective words," as Georgia was not able in any sense to make them good.

O'Fallon, "general agent for and proprietor with, the South Carolina company, through the whole western territory of the United States and in New Orleans and Pensacola," as he called himself, made his headquarters at Louisville. He sought to involve George Rogers Clark in the enterprise, but did not succeed further than marrying the general's daughter. Col. John Holder, a noted Kentucky pioneer, was persuaded to become military commander. When these agents applied to Wilkinson for assistance, that wily agent-in-chief of Spain, amazed at the letters and certificates they presented, his breath quite taken away by the audacity of the scheme, finally was convinced that the documents were not for- geries and proceeded to attempt to manipulate the enterprise in the interests of his employers.

The company's agents, Cape and Holder, were advised from Charleston October 1, before the act was passed, (according to Gayarre, III, 222) that "everything was already settled with our sister State of Georgia and with all parties concerned here." and the essential thing to do was "to take possession of and settle the land at once." Holder was urged to go down as soon as possible "with your complement of emigrants, and form the establishment as agreed on," because it would materially help the sale of land to say that settlements were already begun. Holder was told to make friends with the Indians and tell the Spaniards that their in- terests were-"intimately connected and inseparable," that they would "form a highly advantageous rampart for Spain. . . . At all events, take possession, exhibit this letter and even our contract to the Spaniards, and conceal nothing from them." Gen-

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eral Wilkinson, in Kentucky, knew about the project long before the act was passed. On January 4, 1790, he wrote to Moultrie and the others that he had talked it over with Governor Miro on his last trip to New Orleans. He advised the company that they could not possibly make a settlement before the next fall, and meanwhile they must send an able representative to confer with Miro, as nothing could be done without his favor and his influence with the Choctaws. Holder, Wilkinson informed Miro, was under his pro- tection, and Cape he had loaned $3,000, and both were "insignifi- cant creatures." O'Fallon was a man of education, but flighty and vain. He had asked authority of the company to take charge of the project himself, and would "experience no difficulty in adding their establishment to the domains of his Majesty."

Governor Miro was disposed to look at the project as "taking a foreign state to board with us." He did not understand that the settlement would form part of the United States, and thought that if the South Carolina company succeeded, "all the hopes of the United States (for limits at 31°) would vanish, or at least they, would find it no trifling enterprise to send an army to gain that point." He wrote to Spain a discussion of the matter, being at a loss what stand to take. "These people," he said, "are imbued with the conviction that these lands belond to them by purchase, and, in order to obtain them, they may momentarily accept all sorts of conditions. But would they not violate them, as soon as they should find themselves powerful enough to do it with impunity?"

He began preparations to erect a new fortification, at Walnut Hills, the key to the lower Mississippi valley. Meanwhile he noti- fied Moultrie and his associates, through Wilkinson, that Spain was in possession, and until the question of limits were settled, an attempt to sieze any part of the land would be an act of hos- tility. "It would be exceedingly painful to me to march with arms in my hands against citizens of the United States." It appears that the companies urged the treaties of Hopewell and Seneca as basis of title of Georgia, the same treaties that Georgia had repudi- ated by act of legislature. Wilkinson advised the Carolinians that their Indian title was "not worth a pinch of snuff," and Miro said that a concession of land based on the treaties "is a chimera."

August 25, 1790, President Washington sent out a proclamation calling attention to the laws and treaties and requiring all persons to govern themselves accordingly. But this did not appear to dis- courage the enterprise. O'Fallon suggested to the president that it would save trouble to turn over to him the regulation of trade and treaties with the Choctaws and Chickasaws. Lieut. John Arm- strong, in Kentucky, in the latter part of 1790, heard of several per- sons organizing companies for the Yazoo country. O'Fallon, talk- ing to him, took lightly the president's proclamation, saying that "many of the gentlemen of Congress were concerned in the busi- ness," and offering to read a letter from one. On September 16. O'Fallon completed the organization of the "Yazoo battalion," with which a regular contract was made by him in behalf of the

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Carolina company, the troops to be paid by grants of land. It was provided as an encouragement to women who might go with the battalion, that 500 acres should be given to the first one to land and 500 "to her who shall bring forth the first live child." The battalion roster shows: John Holder, colonel; Thomas Kennedy, lieutenant-colonel ; Henry Owen, major; Ebenezer Platt, captain of horse; Thomas Reynold, captain of artillery ; John McIntire, captain of infantry; and Martin Nall, John Sappington, Charles Hazelrigg, Francis Jones, Philip Alston, James Dromgold and Joseph Blackburn, captains of riflemen.

In the back parts of Virginia and in East Tennessee the talk was of a settlement by the Tennessee company, which advertised by poster, September 2, 1790, from Augusta, Ga., that an expedi- tion would leave the confluence of the Holston and French Broad January 10, 1791, to open up for free distribution 480,000 acres south of the Tennessee, also, to sell land on the north side, called the Bent. At this time the Cherokees were gathering at their "greatly beloved town, Estanaloee," on the waters of Mobile, to deliberate on the treaty offered by Governor Blount, of the Terri- tory South, and the request that they aid the United States in the war with the Northern Indians. They sent a messenger to the president protesting against the proposed invasion of their lands. Another proclamation was issued forbidding the enterprise. It appears from Pickett's Alabama that the expedition did not get off until May, 1791, when a party floated down in flatboats to Mussel Shoals, under the command of Zachariah Coxe, built a blockhouse on an island, and prepared to do a land office business.

In 1790 the United States had made a treaty with Chief McGil- livray of the Creeks, who was notified by Ensign Heth in 1791 that the United States "disapprove entirely of the projected set- tlements . . under the Yazoo companies." Heth was in- structed to assure McGillivray that if the companies, in defiance of the president's two proclamations on the subject, persisted in making settlements, "they will be considered to all intents and purposes entirely without the protection of the United States." Coxe and his party found themselves very lonesome before they had been long at Mussel Shoals, when a war party of Cherokees arrived under the command of Chief Glass. They agreed to de- part and the buildings were burned.

Writing to Philip Nolan February 14, 1791, General Wilkinson said that O'Fallon was at Frankfort, "making wonderful exer- tions;" he had engaged George Rogers Clark to command his troops, and had made "extensive contracts for provisions, negroes, horses, etc. The company offering me 20,000 acres as a compli- ment, but I finally refused it." (Minor papers.) O'Fallon, how- ever, was suppressed by General St. Clair, under orders from the secretary of war.

Edmund Phelan was sent by the South Carolina company as its agent to Natchez, through the Indian country, piloted by Thomas Basket, an Indian trader, who was to be the official interpreter.

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They arrived at Natchez September 25, 1790, expecting to meet O'Fallon and Holder with settlers and lumber for houses, and goods for the Indians, after which Phelan and Basket were to pre- pare the Choctaws for a settlement at Walnut Hills and on the Yazoo. Early in 1791 Commandant Gayoso showed Phelan a let- ter he had received from O'Fallon saying they would be down shortly. But they never came.

The report of Madison, Gallatin and Lincoln, in 1803, was, that the Carolina and Virginia companies "did, within the two years, tender in payment to the treasurer of the State the whole amount of the purchase money in evidences of the public debt of the State. The payment was refused on the part of Georgia. The money which had been deposited by the Virginia Yazoo company was withdrawn; but the South Carolina company instituted, before the Supreme court of the United States, a suit against the State, which was terminated by the amendment to the constitution rela- tive to the suability of States."

When Georgia ceded the western lands, the South Carolina and Virginia companies claimed indemnification for a violation of con- tract on the part of Georgia, attempting to prove by collateral evidence that it was the intention of the legislature that they pay in State certificates of debt. Included in this evidence were their own petitions for the passage of the act, and the protest of the minority of the legislature, made principally, it was alleged, be- cause the payments were to be made in depreciated certificates. The commissioners decided (1803) that they had no equitable claim either for the land or for compensation. The claim was carried before Congress and a committee of the house sustained the judg- ment of the commissioners in January, 1804.

Yazoo Land Companies, 1795. The land companies of 1795 were not called Yazoo companies officially, but the whole transaction was popularly known as the Yazoo Fraud. In his vigorous de- scription of these speculations, Chappell (Miscellanies of Georgia) asserts that the attitude of "Washington's stern course and true teaching" regarding the act of 1789 had a tendency to create a healthy public sentiment. But the campaign to acquire the public lands for speculation was renewed, or rather continued with little pause by those who had lost considerable money in the enterprises of 1789-91. The legislature of 1793 was besieged for a renewal of grants, but, says Chappell, it "proved itself staunch and altogether impregnable." But, following this, the speculators were informed through James Gunn, United States senator from Georgia, that Spain was likely soon to relinquish those claims in the West, which covered not only the Yazoo line, but all of the Georgia pretensions. For this reason, in 1794, the year before the treaty was made, the speculators "were industriously occupied in perfecting their schemes, in tampering with the elections to the legislature, in en- listing men of influence far and wide, and in getting up funds for the purpose of corruption and paying for the lands." The first proposition for the purchase of the Yazoo lands came on the 12th

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of November, 1794, from Albert Gallatin, Alexander J. Dallas and Jared Ingersoll, by their agent, John Wereat. This agent proposed to purchase all the country included in the conditional sale made to the South-Carolina Yazoo company, in 1189, at a price something over $66,000. (Quoted by John Randolph from Georgia House journal.)

When the legislature met in November, Gunn was reelected to the senate. Randolph of Virginia said in a speech on this subject in the national house of representatives, January 1, 1805, that the funds for sustaining the enterprise were furnished from Philadel- phia and New York and perhaps Boston, and the direction of these resources devolved upon Gunn. "His reelection was to be con- sidered as evidence that the temper of the legislature of Georgia was suited to their purpose and his Northern confederates were to take their measures accordingly. In proof of this fact, no sooner was the news of his re-appointment announced in New York than it was publicly said in a coffee-house there, 'Then the western territory of Georgia is sold.'"

Four companies petitioned for grants and they made a combina- tion and satisfactory partition among themselves of nearly all the land west of the Alabama and Coosa rivers. One bill to grant their demands was passed and vetoed by Governor Matthews, after which a second bill was passed and signed by the governor January 7, 1795. The bill passed by force of bribery, in the house by a vote of 19 to 9, and in the senate 10 to 8. A long preamble asserted the claims of the State to the western lands, and declared that "notwithstanding" the act of Congress to regulate trade, etc., with Indians, and the treaty of New York, the State of Georgia was in full possession and full exercise of the jurisdiction and territorial right, and the fee simple and the right of pre-emption of vacant lands and the right to sell the same, were in the State of Georgia. The act provided for the extinguishment of Indian claims north of the St. Mary's river, and "for the purpose of raising a fund for car- rying this act fully into effect," the grants to the companies pur- ported to be made. It was provided that each company should pay in gold or silver "or bank bills of the United States or such warrants as are made payable," and part was paid previous to the passage of the act. The balance was to be paid by November 1, following, when a grant should be executed conveying the title in fee simple to the persons composing each company, "as tenants in common and not as joint tenants.'

The main grant was to the Georgia company, James Gunn, Matthew McAllister, George Walker, Zachariah Coxe, Jacob Wald- burger, William Longstreet and Wade Hampton, for $250,000. Their grant was to begin on the United States line of 31° at the Mobile river, extend up the Alabama and Coosa to latitude 34°, and on the Mississippi river extend from latitude 34°, south to 32º 40'. Below the western part of this tract, between the Tombig- bee and Mississippi, a tract between 32° and 40' and 31° 18' was granted to the Georgia Mississippi Company, composed of Nicho-

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las Long, Thomas Glasscock, Ambrose Gordon, Thomas Cum- ming and their associates. A strip of land twenty-five miles wide off the north side of the old grant of the Virginia Yazoo company. that is, off the north end of the present State of Mississippi, was granted to John B. Scott, of the Virginia company, who, with John C. Nightingale and Wade Hampton and others, took the name of the Upper Mississippi company. The old Tennessee Company, appeared to be revived under the same name, Zachariah Coxe and Matthias Mather being named as members, and granted the same lands as before. The amount of land included in these grants was estimated by the companies in their petition to the leg- islature as 21,250.000, but subsequently at nearly 40.000.000. The prices paid were $250,000 by the Georgia company, $155,000 by the Georgia Mississippi company, $35,000 by the Upper Mississippi company, and $60,000 by the Tennessee company. The Georgia company was to reserve a million acres for the use of citizens of Georgia; and the other companies among them, another million. This seems to have been done to secure the governor's approval of the second bill. "All the members, both in the senate and the house, who voted in favor of the law, were, with one single excep- tion (Robert Watkins, whose name does not appear) interested in, and parties to, the purchase." (Report of Madison commission, Amer. State Pp., I, 122). On page 128 of the same is a list of the persons to whom the Georgia company disposed of land before the act was passed, for the purpose of raising a fund "to effect the purchase of the same." This is headed by Hon. James Wilson, of Philadelphia, a prominent member of the Federal constitutional convention and supreme court, 750,000 acres, and the whole list calls for 3,000,000 acres. A second list is of subshares for land which it was found "necessary to distribute to a variety of citi- zens" beforehand, in order that the benefit of the purchase "should be as generally diffused as possible." This list, including names of members of the legislature, calls for nearly 7,000.000 acres. So that the company really paid, for the grant, $250,000 to the public treasury, and something like a third of the land elsewhere, for what it got.

Chappell notes that Patrick Henry took no part in this project, but suffered some loss of reputation for his connection with the enterprise of 1789. Nathaniel Pendleton, Federal judge in Georgia, was active in organizing the companies; Senator Gunn was a great power in pushing the enterprise to success through the legislature. bullying and cajoling in turn (White's Statistics, p. 50) ; Robert Goodloe Harper, of South Carolina, a member of congress, had an interest of 131,000 acres ; Col. Wade Hampton, promoted to general in 1809, had "a much more colossal interest than any other man," but with a sagacity that made him regarded "as a prince of spec- ulators," disposed of his interests at "a hugh profit" in less than a year. (Chappell and White.) Hampton had three shares and Gunn two in the Georgia company, which was divided into ten

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shares. Consequently, they together had title to about a third of the entire territory sold.

The several companies made their payments to the Georgia treasury in full, and the grants were completed in due form. The terms of the transaction were carefully devised to make a title easily sold. The members of the company were tenants in com- mon and not joint tenants. The main company, or Georgia com- pany, of which Gunn and Hampton owned half the ten shares, sold the greater part of the territory in large tracts by metes and bounds to various parties, and, after the subsequent commotion began, surrendered to the State what remained unsold. The whole tract granted to the Georgia Mississippi company (in southern Missis- sippi and Alabama) was divided into 1,600 equal undivided shares, and sold in January, 1296, at 10 cents an acre, to the New-England Mississippi company, composed of citizens of Massachusetts. The Scott, Nightingale and Hampton tract in upper Mississippi was divided into twelve equal undivided shares. The others sold out to Hampton, and he sold to various citizens of South Carolina. The tract granted the Tennessee company was divided into 420 shares, besides several hundred thousand acres deeded by Coxe alone. The statement of Secretary Madison in 1805 was that there were at least twelve hundred purchasers under the four companies.

President Washington communicated copies of this act and the State Troops act to Congress, February 17, saying: "These acts embrace an object of such magnitude, and in their consequence may so deeply affect the peace and welfare of the United States, that I have thought it necessary to lay them before Congress." A committee reported that the acts contemplated an infringement of the law of the land and advised the president to permit no in- dividuals or States to make treaties with the Indians, for the ex- tinction of title to land. The State of Georgia was thrown into great excitement by the passage of the act and the subsequent campaign to secure its repeal. It is stated by chroniclers that some members who voted for it were driven into exile, others assassi- nated. Chappell denies this, saying that they were simply con- signed to "social ostracism and infamy." He admits, however, that Robert Thomas, who seemed to be picked out as the one re- sponsible for the majority of two in the senate, fled from his home and was followed and killed by some one.

The State constitutional convention of May, 1795. controlled in the interests of the companies, declined to take action upon the protests against this legislation, and adjourned. calling the election of another convention in 1797. James Jackson, one of the United States senators for Georgia, who had been offered half a million acres, but had refused, resigned from the senate to enter upon a fight to destroy the scheme, in which he succeeded, so far as legislation could effect his purpose. Col. Benton wrote of him : "The defeat of the Yazoo Fraud was the most signal act of his legislative life, for which he paid the penalty of his life, dying of

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wounds received in the last of the many duels which his undaunted attacks upon that measure brought upon him." He secured the election of a legislature that passed an act February 13, 1796, which, with elaborate whereases, asserted that the legislature had no authority to convey and was induced to do so by fraud and corrup- tion, declared the act of 1795 null and void, and the land "the property of the State, subject only to the right of treaty of the United States, to enable the State to purchase, under its pre- emption right, the Indian title to the same." It was enacted that all mention of the proceedings should be expunged from the rec- ords of the State, and "that the enrolled law or usurped act shall then be publicly burned in order that no trace of so unconstitu- tional, vile and fraudulent a transaction, other than the infamy attached to it by this law, shall remain in the public offices." Rec- ords of the State, and "that the enrolled law or usurped act shall recording or admission of papers in evidence prohibited. The money paid was ordered returned.

February 15 a bonfire was started in front of the statehouse, at Louisville, Ga., by use of a lense, so that "fire from heaven" might do the deed. The legislature marched out in solemn procession and circled round the fire, heads uncovered. The obnoxious papers were solemnly passed from the committee to the president of the senate, to the speaker, to the clerk, to a messenger, who threw the documents in the fire, exclaiming "God save the State and long preserve her rights, and may every attempt to injure them perish as these corrupt acts now do." (Evans, History of Georgia.)

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Encyclopedia of Mississippi History Comprising Sketches of Counties, Towns, Events, Institutions and Persons, Vol. II, Part 122

Author: Dunbar Rowland Publication date: 1907 Publisher: Madison, Wis. : S.A. Brant Number of Pages: 1020

Author: Dunbar Rowland
Publication date: 1907
Publisher: Madison, Wis. : S.A. Brant
Number of Pages: 1020