"And the said parties of the second part for themselves their Hrs and their associates do hereby covenant promise and agree that they the L Assigns or their Associates or some of them shall and will well and tre the s Tract of land hereby contracted for such sums in Gold or Silver or s of the U. S as the quantity of Land comprized in the s tract after dea several parts excepted as afsa shall amount unto at 2/3 of a Dollar P'à allowance of 1/3rd of a dollar being made from the sum of a Dollar P Ar able to" certain resolutions of Congress "for bad Lands and incidental ch SEC. 101. In his diary of October 27, 1787, Dr. Cutler wrote: "This day completed our contract with the Board of Treasury for millions of acres of land, and Major Sargent and myself signed the Agreement on parchment in two distinct contracts; one for the Ohiot and the other for the Scioto Company. The greatest private entz made in America." 99 14 SEC. 102. The land (in this paragraph called the July 23, 1787 th the grant of which it was reported, by the above mentioned Committee of Messrs. Carrington, King, Dane, Madison and Benson, in their re tioned in Section 78, supra, of this Historical Statement, that the boeri sury be authorized and empowered to contract, was at the time es. contain 3,500,000 acres though later surveys showed said land to Coule acres.15 It will be recalled that under date of July 27, 1787, (see Section Historical Statement) there appears a resolution in the course of w resolved that the board of treasury except and reserve out of any Cor”. may make for the tract described in the above mentioned report = in Section 78 of this Historical Statement a quantity of land around joining each of certain towns amounting in the whole to ten thous... SEC. 103. The land (in this paragraph called the Ohio Company trac under the terms of the above mentioned Indenture executed under date e 27, 1787, (see Section 99, supra) between SAMUEL OSGOOD, WALTER LI and ARTHUR LEE Esquires (the Board of Treasury for the United S America) -- of the one Part and Manassah Cutler and Winthrop 8.“, as Agents for the Directors of the Ohio Company of Associates so cale. other part", the People of the United States or the Congress thereof officer or officers as shall be duly authorized for that purpose were and conveyance to grant, convey and assure to the parties of the secr in said Indenture their Heirs and Assigns for ever "(as Agents to the D of and in trust for the persons composing the said Ohio Company of A-according to their several rights and Interest under the said Asses included 1,500,000 acres of land besides the several townships, lots an of land mentioned in said Indenture "to be reserved or appropriated to purposes - - " 18 SEC. 104. The land (in this paragraph called the Scioto tract) which to reservations and exceptions set forth in the above mentioned Indent cuted under date of October 27, 1787, (see Section 100, supra) "between Osgood Walter Livingston and Arthur Lee Esq's (the Board of Tr the U. S. of America) ---- of the one part, and Manassah Cutler and W Sargent for themselves and their associates of the other part", the of the first part therein agree, in effect, to grant unto the parties of the part therein, is in said Indenture termed "the whole of the said tract in the s resolutions of Congress to be contracted for except what is e for by the s hereinbefore mentioned Indre”. 19 The meaning of the term "the sd resolutions of Congress", as said used in the quotation last above set forth, may be drawn from the f in said Indenture first in this Section 104 mentioned the only ment (* appears prior to said quotation, of resolutions of Congress is contaire cerpts, below quoted in their respective order, from said Indenture, I (a) "Whereas the Congress of the U. S. afs" in and by their several res and votes of the 23d & 27th days of July last past", (b) "s resoluties "such resolutions" and (d) "the Resolutions of Congress afs"" The meaning of the term "s" hereinbefore mentioned Indre" in that quotation in this Section 104 which reads "the whole of the said tract mentioned in the s resolutions of Congress to be contracted for except what is contracted for by the s' hereinbefore mentioned Indre" may be drawn from a portion of the Indenture first in this Section 104 mentioned which portion appears earlier than does said last hereinabove set forth quotation and is contained in the below set forth excerpt, as follows: "Whereas the Congress of the U. S. afs in and by their several resolutions and votes of the 23 & 27th days of July last past did authorise and empower the Board of Treasury afores to Contract with any Pson or Psons for a Grant of a tract of Land which shall be bounded by the Ohio from the mouth of the Sioto to the intersection of the western boundary of the 7th range of Townships then surveying thence by the s" boundary to the Northern Boundary of the 10th Township in the s range thence by a due west line to the Scioto and thence by the Scioto to the place of beginning, upon the Terms for the considerations, and subject to the reservations and exceptions in the s" resolutions specified And whereas the s Board of Treasury have pursuant to such resolutions agreed to contract with the s" parties of the 2a part for the s tract of Land part thereof they as agents for the Directors for the Ohio Company of Associates so called have actually contracted for by an Indre bearing equal date with these presents 99 21 SEC. 105. By instrument purporting to have been entered into October 29, 1787, it was agreed between "Manasseh Cutler & Winthrop Sargent, for themselves, & others their associates, & William Duer of the State of New York for himself & others his associates, that they the said Cutler and Sargent do for themselves & associates, assign & make over to the said William Duer & his associates their Heirs and assigns one equal moiety of the tract" described as follows: "Beginning at the mouth of the Scioto on the Eastern Side thereof, thence running along the Ohio to the place where the Western Boundary Line of the seventeenth Range of Townships, to be laid out according to the Land ordinance of Congress of the 20th May, 1785: will touch the said River, thence running Northerly on the Western Boundary Line of the Said seventeenth Range of Townships as far as the Western line of the said Tract so as aforesaid contracted for by the Said Manasseh Cutler & Winthrop Sargent as Agents for the Directors of the Ohio Company and their associates shall or may extend thence due East to the Western Boundary Line of the Said seventh Range of Townships, thence along the same to the Northern Boundary of the tenth Township from the Ohio, thence due West to the river Scioto, & thence along the Said river to the place of beginning, being the whole of the Tract mentioned in the Resolution of Congress of the 23d of July last, except what is contracted for by the Said Manasseh Cutler & Winthrop Sargent as Agent for the Directors of the Ohio Company, & their associates." 11 22 Said instrument further states: "And it is hereby agreed upon & understood by the parties that the property in the residue of the general Tract, as above described, is to be considered as divided into thirty equal Parts or Shares, of which thirteen Shares are the Property of William Duer, in which he may admit such associates as he may judge proper & thirteen shares are in like manner the property of the Said Manasseh Cutler & Winthrop Sargent : that the other four shares may be disposed of in Europe at the Direction of an Agent to be sent there for the purpose of negotiating a Sale or Loan as above mentioned: & if not disposed of: to be equally divided among the Parties to this writing." 123 SEC. 106. Immediately following the statement that "Cutler and Sargent also signed a contract in 1787 on behalf of the Scioto Company." (said contract being, according to the understanding of the Senator by whom this Historical Statement is filed, the Indenture executed under date of October 27, 1787, "between Samuel Osgood Walter Livingston and Arthur Lee Esq" (the Board of Treasury for the U. S. of America) --- of the one part, and Manassah Cutler and Winthrop Sargent - -- for themselves and their associates of the other part"), Dr. Treat, in his work on The National Land System 1785-1820 (1910), mentions 1 Carter, on, cit., II, 85. Belote. Theodore Thomas. "The Scioto Speculation and the French Settlement at Gallipolis." University Studies. Published by the University of Cincinnati (1907), Series II. vol. III, No. 3, 65-67. 23 Ibid.. 66. 67. "The troubled history of that ill-starred speculation - - -” 24 Albert Bushnel! Hart says "The Scioto Company, managed by speculators, undertook to buy three and a half million acres, but never took any." 11 25 SEC. 107. Letter from the Virginia Delegates to the Continental Congress, to the Governor of Virginia reads in part as follows: "NEW YORK, November 3d, 1787. 66 We are happy in being able to present to the View of your Excellency and the Legislature a prospect of an early and considerable reduction of the domestic debt by Sales of Western Territory. Seven Ranges of Townships have been surveyed agreeably to the Ordinance of the 20th of May 1785, containing upwards of one Million of Acres, about one hundred and Twenty thou sand Whereof have been sold for some what more than the average price of one dollar per Acre in public securities. these Ranges extend west from the place of beginning directed in the Ordinance nearly down to Muskingum. But a mode of Sale has lately presented itself which promises a more Rapid progress while it will exempt the United States from the greatest part of the expence that would attend a strict pursuance of the Ordinance, without Materialis departing from it. Companies of Adventurers have come forward with propositions for large Tracts, and a Contract is actually made with Messrs. Sargent and Cutler, in behalf of a considerable Company from the Eastern States, for all the Country between the Seventh Range of Townships, and Sciota, from the Ohio North, as far as a due West line to be extended from the Northern boundary of the Tenth Township. the whole of this tract is supposed to contain about five Millions of Acres. The terms are, that the United States, shall at the public expence, Survey and mark the external boundaries, and ascertain the Contents of the Tract, the Company to lay it out, at their own expence, into Townships and Sections, agreeably to the Ordinance, subject to the reserves therein described, except that one of the Sections for future Sale shall be granted forever for the purposes of Religion, and that two Complete Townships shall be granted forever for the purposes of an University. All other Lands within the Tract, to be paid for, without any abatement whatever for bad Land, at the price of two thirds of a dollar per Acre in public Securities, excluding interest, half a million of dollars to be paid upon closing the Contract, and possession taken so far as that payment will cover; and afterwards payment and Occupancy to go on, pari passu, at certain periods, under Certain Stipulations of reciprocal assurance. Army Rights for Military bounties are made Receivable in payment of the purchase money, in the proportion of one Seventh part, but as Lands are Set apart and to be Surveyed, for Satisfying these Bounties, more to the advantage of the Claimants, it is not likely that many of these Rights will be rendered in discharge of this debt. "Another offer is made by Judge Symmes and his associates from New-Jersey, for about two and an half Millions between the little and great Miami's, upon the same terms. Congress have Authorised the Treasury Board to close with this proposition, but it is not yet compleated; upon these two Contracts being carried into full effect they will take up, as may be seen by the Statement inclosed, upwards of three Millions and an half of dollars, even upon a suppesition that the full proportion receivable in Bounty Rights, be actually rendered. Two other propositions have been made, whereupon Congress have given the Treasury Board a general Authority to sell by Contract; provided that no tract so disposed of shall contain less than one Million of Acres, making the Terms of Sargent and Cutlers purchase the ground, with deviations as to the grants for Religion, and an University, unless the Contract be for an equal quantity This mode of Sale is calculated to relieve the United States of much expence, and present Appearances are, that our people will soon feel the domestic deht considerably lightened, by it. "This great fund for the extinguishment of the National debt, has lately received a probable augmentation, by a Cession from South Carolina of a Tract that will, it is supposed, be eventually within the limits of that State, containing about half a Million of Acres on the Missisippi, upon running the lines lately stipulated in the adjustment of her disputes with Georgia."* 24 Treat, 58. See also Dawes, Major E. C., "The Beginning of the Ohio Company and the Scioto Purchase", Ohio Archaeological and Historical Publications (1895), vol. IV, 14, ff. 25 Essentials in American History (copyright 1905, 1919) 193. 26 Burnett, E. C., Letters of Members of the Continental Congress, VIII, 670, 673, 674. SEC. 108. Endorsement on a memorial of William Newbold and sixteen other persons reads: "N. 90 Geo. Morgan for purchase 2 Mill Acres W terry Read 13 May 1788 May 14 Referred to the board of treasury to report Acted on June 20th 1788".27 In the course of said memorial, which is dated May 1st 1788, the memorialists by their agent George Morgan express the desire for themselves and their associates to contract for and to purchase two million acres of land "(saving & reserving to the Inhabitants of Kaskaskias, Prairie du Rocher, Fort Chartres, S Phillips & Kahokia, & all others having just Claims, their respective Rights within the said Boundaries, to be determined as Congress shall direct) for which your Memorialists by their said Agent will engage to pay on similar Terms granted by Congress to other Companies, or on such other Terms as their Agent may deem more advantageous to their Interest." 19 28 Entry in Committee Book, Papers C. C., No. 190, folio 190, under date of May 14, 1788 reads: Board of treas" Messr". Newbold & others by G. Morgan to report for purchase of 2 Mill. acres land. To the left of said entry is "Report Endorsement on a report of the Board of Treasury reads "104. Report of Board of treasy on Meme G Morgan Ent. Read 23 May 1788 Referred to Mr Williamson M' Dane M' Carrington Mr Kearny M' Wingate see Journal June 20th 1788": Said report of the Board of Treasury is as follows: 29 "The Board of Treasury to whom was referred the Memorial of George Morgan and his Associates for the purchase of a Tract of Land in the Illinois Country. "Beg leave to refer Congress to their Report of the 18th March 1788 on the application of I. Woods and Garret Rapelje of the "It is necessary however to observe, that the principles of that Report (so far as they relate to the probability of the execution of the proposals of Mess" Woods and Rapelje) are in a great degree invalidated, by the respectable association, in whose behalf the present Memorial is presented; the private property of the parties, being we presume fully adequate to a compliance with their proposed Contract. "Under the above circumstances, the Board are of opinion, that it would be adviseable to enter into a Contract with Mr Morgan, and his associates, on the same terms, as have been agreed on, on the application of Royal Flint and Joseph Parker; should Congress judge it adviseable (previous to the termination of the approaching Treaty) to enter into any further Contracts for Lands, where the Indian Title has not been extinguished. "With respect to the application of the Memorialists on the Form of Government which they wish to be Established, within the proposed purchase; the Board forbear to make any observations as they presume this Object (being of a positive nature, and not necessarily connected with the Business of their Department) was not intended by Congress to form part of the subject in Reference. "All which is humbly Submitted. "224 MAY 1788." Samuel Osgood Entry in Committee Book, Papers C. C. No. 190, folio 192, under date of May 23, 1788 (which date appears in column entitled "Appointed", which column is between Papers C. C., No. 41, VI, folio 499. Papers C. C., No. 41, folios 496-498. Papers C. C., No. 138, II, folio 176. J. C. C., XXXIV, 177. See also J. C. C., XXXIV, 151. column headed "Byer" and she headed "Committees") and: repertively beaded Seger Vittees", and "Subjects", res fard of treasury ↑ GG Morgan & others The report of board of treas of getracts for sale of Wester Part of Treasury is as follows, namely. as referred to report to d Ter inte tide for the sale of Lands ⠀ ⠀ Cf the 20 & 27th July, 2 and 2 Sen Kal I Necsequence of the Res Board of the intentions of M their proposed Cont in the Wabash-which zet (he presumes Sasenbers to complete the P sai Cortract with Messrs F suggested from the tan SSL arises from the I st the case of the other ment with Messrs. Flint in the same grounds "Samuel Og vó Walter LS is as follows: ement, there was amson. [Mr. Nathan ♪ 1- Paine Wingate] to Issueiates, respecting a eg leave to report"." ertain resolves. An tract with any pers wach shall be bounded as r. p. t. II, 110, 111. VIL 111. XXXIV, 213. |