380 
 
 <&&2\l 
 
 Illmoi& Internal Improvements 
 
 1818-1848 
 
 JOHN H. KRENKEL
 
 ^
 
 Illinois Internal Improvements 
 1818-1848
 
 Illinois Internal Improvements 
 
 1818-1848 
 
 By 
 JOHN H. KRENKEL 
 
 Professor of History 
 
 THE TORCH PRESS 
 
 Cedar Rapids, Iowa 
 
 1958
 
 Copyright 1958 by 
 John H. Krenkel 
 
 PRINTED IN THE UNITED STATES OF AMERICA 
 BY THE TORCH PRESS, CEDAR RAPIDS. IOWA
 
 
 TABLE OF CONTENTS 
 
 chapter page 
 
 Preface ....... 7 
 
 I River AND Road Improvement, 18 18-1836 . 9 
 II The Illinois and Michigan Canal . . 26 
 
 III Evolution of the General System of 1837 47 
 
 IV Administration and Construction of the 
 
 Internal Improvement System . . 77 
 
 V Canal Construction and Finances . .110 
 
 VI Financing the Internal Improvement Sys- 
 tem . . . . . . .126 
 
 VII As A Political Issue, i 837-1 842 . . .150 
 
 VIII Solution of the Debt and Canal Problems 177 
 
 IX Liquidation of the Internal Improvement 
 "'^ Debt ....... 200 
 
 r appendices 
 
 -r A Final Report of Trltstees of Illinois and 
 
 Michigan Canal . . . . .218 
 
 '"' B Appraisal of Internal Improvement Property, 
 
 j> 1844 
 
 f^_ C State Indebtedness Funded 
 
 D Arrears of Interest Funded in 1857 
 
 ; E Indebtedness Bought With Land Fund . 
 
 j' F Indebtedness Bought With School Fund 
 
 < G Interest Fund — One and One-half Mill Tax 
 
 CN H State Debt Fund — Tw^o Mill Tax 
 
 ^ i. u 
 
 219 
 
 220 
 
 221 
 
 . 222 
 
 . 222 
 
 ^ 223 
 
 224
 
 6 ILLINOIS INTERNAL IMPROVEMENTS 
 
 I Amount Paid by Illinois Central Railroad 
 
 Into State Treasury . . . .225 
 
 Bibliography 228 
 
 Index ........ 237 
 
 MAP 
 
 Illinois in 1838 Showing Roads and Proposed 
 
 Canal and Railroads . . . Facing p. 70
 
 PREFACE 
 
 THIS study is an attempt to portray the problem of 
 internal improvement development in Illinois during its 
 frontier stage. Hampered by meager resources, the state 
 accomplished little more than laying out roads and declaring 
 certain streams navigable prior to 1836. Although an Illinois 
 and Michigan canal was long considered, construction did not 
 begin until credit became available during the boom of 1836. 
 With the advent of railroad building in eastern states, pro- 
 posals for the construction of railroads by chartered com- 
 panies was begun in Illinois. The inability of the corporations 
 to raise money and the feeling then prevailing throughout the 
 country that transportation monopolies should not be placed 
 in the hands of private companies led to a demand for state 
 construction of internal improvements. These factors, to- 
 gether with the example of other states and the speculative 
 spirit current in 1836 induced the state of Illinois to under- 
 take an extensive system of public works far too costly for 
 her resources and out of proportion to the needs of a frontier 
 people. 
 
 The depression which followed the speculative period and 
 the flood of bonds from other states undertaking similar pro- 
 grams of internal improvements made Illinois securities un- 
 salable by 1840, so that construction on the public works had 
 to be discontinued. For several years the state groped blindly 
 for a solution of the debt problem resulting from the internal 
 improvement system. Finally, by 1848 the completion of the 
 Illinois and Michigan Canal and the decision to bear the bur- 
 den of increased taxation assured the payment of the debt. 
 After the failure of the system of 1837 the construction of 
 internal improvements was left to private enterprise, and dur- 
 ing the decade of the fifties chartered companies built an 
 extensive railroad system for Illinois. The success of the pri-
 
 8 ILLINOIS INTERNAL IMPROVEMENTS 
 
 vate companies as contrasted with the failure of the state can 
 be explained by the better times, the liberal policy of the fed- 
 eral government in granting land to the companies, and the 
 increased wealth and population of the state in the fifties as 
 compared with the thirties. 
 
 The writer wishes to acknowledge those who extended aid 
 in this study. Miss Margaret Norton, former Illinois State 
 Archivist, deserves much credit for making available so effi- 
 ciently the manuscript documents in the State Archives Divi- 
 sion, and for offering suggestions concerning the location of 
 other materials. The index which she had made for the senate 
 and house journals of the state legislature greatly simplified 
 an otherwise laborious task. Dr. Paul M. Angle, director of 
 the Chicago Historical Society Library, extended many cour- 
 tesies and accommodations. The writer also wishes to express 
 his appreciation for the courteous assistance given him by the 
 librarians of the Illinois State Historical and University of 
 Illinois libraries. Finally, the writer owes a debt of gratitude 
 to the late Theodore Calvin Pease, under whose guidance the 
 study was inaugurated. His patient and scholarly criticism re- 
 sulted in many constructive contributions. 
 
 August, 1957. 
 
 John H. Krenkel
 
 CHAPTER I 
 
 RIVER AND ROAD IMPROVEMENT, i8 18-1836 
 
 THE problem of improved means of transportation was 
 one of the most difficult questions confronting the state of 
 Illinois upon its admission to the union in 1818. Not only was 
 it one of the earliest problems, but one of the most persistent. 
 
 Improved transportation facilities were a prime necessity 
 in a new state seeking to attract settlers to develop its re- 
 sources. Immigrants would not come to a state which did not 
 have close and cheap commercial connections with the more 
 thickly populated areas. Homes could not be established and 
 farms could not be improved until means of communication 
 were set up with the outside world to bring in tools and equip- 
 ment. The cost of carrying merchandise to the interior over 
 long and difficult routes increased the price so as to make im- 
 ports prohibitive. After having established his home in the 
 new state, the farmer needed a system of communications to 
 connect him with an entrepot in which to market his surplus 
 produce and from which it might be transported to the ulti- 
 mate consumer in the industrial centers of the East. Bulky 
 farm products could not pay high transportation charges and 
 compete in the eastern seaboard markets. The facilities of 
 Illinois in 1818 were limited either to the navigation of the 
 river system that net-worked the state or to the use of the 
 muddy prairie roads. It was the effort to improve these con- 
 ditions so as to relieve the economic burdens of transportation 
 which led to the general movement for internal improvements 
 in Illinois. 
 
 The numerous rivers which flowed along its boundaries or 
 crossed the state in every direction formed the earliest means 
 of transportation for the people of Illinois. The first settlers 
 came by land or by way of the Ohio river from the east and 
 by the Mississippi river from the south. A much used land
 
 lO ILLINOIS INTERNAL IMPROVEMENTS 
 
 route crossed the Blue Ridge mountains at Ward's Gap in 
 western Virginia, led through eastern Tennessee and Ken- 
 tucky, and reached the Ohio river at Cincinnati from whence 
 that stream was used for the remainder of the way. After the 
 federal government laid out the National Road that route 
 became the most popular of all land routes. 
 
 Foreign products consumed within the state were brought 
 in via New Orleans by keelboats, pushed at great labor with 
 long poles against the strong current of the Mississippi by the 
 hardy boatmen of that day, or carried by wagons over the 
 Allegheny mountains from Philadelphia to Pittsburgh or from 
 Baltimore to Wheeling, thence in flatboats floated down the 
 Ohio and landed at convenient points to be taken again by 
 wagons to the final points of destination. Such surplus prod- 
 ucts as the state produced were generally floated down the 
 Mississippi river to New Orleans. Most of these shipments 
 were intended for the supply of the local market there, since 
 but a trifle of the staple articles of Illinios found a market in 
 foreign countries. Any temporary scarcity in the New Orleans 
 market was soon supplied, for the products of Illinois had to 
 compete with those from Ohio, Indiana, Kentucky, Tennessee, 
 and Missouri. The farmer of Illinois in 1818 generally under- 
 took to be his own merchant and trader. After having pro- 
 duced a quantity of corn, flour, bacon, and such products, he 
 would build a flat-bottomed boat on the shore of the nearest 
 river or large creek, load his wares into it, and with several 
 neighbors or hired men to assist him set out upon the long, 
 tedious journey to New Orleans. The return home was per- 
 formed on foot during territorial times, but by 1 8 1 7 steamboat 
 facilities began to be available on the Mississippi. 
 
 Many broad rivers such as the Illinois, the Kaskaskia, the 
 Wabash, the Embarrass, the Saline, and the Big Muddy, 
 afforded some means of communication with the interior of the 
 state. It was along these waterways that the first settlers set 
 up their homes. The streams were their only means of contact 
 with the world. 
 
 The limitations of communication by land compelled the
 
 RIVER AND ROAD IMPROVEMENT, 1818-1836 II 
 
 people of Illinois to rely for the most part upon river trans- 
 portation until the coming of the railroads. Flatboats and 
 keelboats were used on practically every river of the state, at 
 least during high waters. 
 
 At the time of the admission of Illinois into the union the 
 steamboat was coming into use on the western rivers.^ Not 
 only the Ohio and Mississippi, but many of the smaller streams 
 as well had steamboat traffic. In January of 181 8, Morris 
 Birkbeck. wrote that, "Steam-boats already navigate the Wa- 
 bash: a vessel of that description has this winter made Its way 
 up from New Orleans to within a few miles of our settlement. 
 They are about building one at Harmony." - Regular packets 
 made their way up the Wabash as far as Terre Haute and 
 Lafayette during the late eighteen twenties.^ Packets from 
 Terre Haute, St. Louis, New Orleans, and Louisville made 
 regular daily calls at Shawneetown.* 
 
 In the central part of the state the Illinois river was naviga- 
 ble as far up as Peoria and even as far as Ottawa during high 
 water. By 1830 occasional steamers ascended to Peoria and 
 by 1837 regular packets plied between Peoria and St. Louis. ^ 
 Even the smaller rivers of Illinois served as arteries for the 
 transportation of freight. The trip of the steamboat Talis- 
 man up the Sangamon river to the Springfield landing In 1832 
 Is an example.*' 
 
 With the streams playing such an important role in the 
 economic life of the state. It Is to be expected that proposals 
 were made for their improvement at an early date. The first 
 general assembly enacted a law on March 22, 18 19, authoriz- 
 ing a lottery to raise funds for the improvement of the Wabash 
 at the Grand Rapids by digging a canal. ^ As might have been 
 
 1 Archer Butler Hulbert, JVaterivays of JVestivard Expansion, the Ohio River 
 and Its Tributaries {Historic Highisiays of America, volume IX, Cleveland, 
 1903), 139. 
 
 -Morris Birkbeck, Letters from Illinois (Philadelphia, 1818), 55. 
 
 3 The Tippecanoe and the Fairy made regular trips. Illinois Gazette, May 
 8, 1830. 
 
 '^ Ibid., December 12, 26, 1829, June 26, 1830. 
 
 ^Illinois Intelligencer, November 19, 1831 ; Peoria Register, July i, 1837. 
 
 ^ Sangamo Journal, July 12, 1832. 
 
 " Laivs of Illinois, 1819, 257-59; Journal of the Senate of the State of Illinois, 
 1819, 164, 184, 190, 240. Cited hereafter as Senate Journal.
 
 12 ILLINOIS INTERNAL IMPROVEMENTS 
 
 expected the means provided by this scheme proved completely 
 inadequate. 
 
 The lottery having proved a failure, the legislature passed 
 another act in 1822 relative to the improvement of the Wa- 
 bash/ The governor was authorized to appoint one or more 
 commissioners on the part of the state to act in conjunction 
 with such commissioners as the state of Indiana might appoint 
 for the purpose of examining the obstructions in the river. 
 The governor was to transmit the report of the commissioners 
 to the general assembly at its next meeting. The sum of 
 $5,000 was appropriated to carry the act into effect.^ 
 
 Indiana failed to cooperate, and at its next session the legis- 
 lature passed an act to incorporate the Wabash Navigation 
 Company.^" This company was allowed a capital stock of 
 $100,000, none of which was ever sold. During this session of 
 I 824-1 825 a law was also passed to provide for improvement 
 in the navigation of the Sangamon river." A fund was to be 
 created for the purpose, by the county commissioners opening 
 books for subscriptions. The county courts were authorized to 
 levy a tax of not less than one-fourth per cent nor more than 
 one per cent on all taxable property in the counties crossed by 
 the Sangamon, if the majority of the male citizens of the coun- 
 ties concerned, should petition the county commissioners to 
 impose such a tax. Payment of the tax in labor was allowed. 
 
 The following year the proponents of internal improve- 
 ments hit upon still another scheme for improving the rivers 
 of the state. A proposal was made to sell portions of the 
 Gallatin and Vermilion county salines for the purpose of im- 
 proving the Wabash. On December 26, 1826, the legislature 
 sent a memorial to Congress requesting Congressional appro- 
 val of the plan.^" Two months later a law was enacted appoint- 
 ing Daniel W. Beckwith, Achilles Morgan, and Amos Williams 
 commissioners to select 10,000 acres of the Vermilion saline, 
 
 ^ Laivs of Illinois, 1823, 72; Journal of the House of Representatives of the 
 State of Illinois, 1822-1823, 35, 54. Cited hereafter as House Journal. 
 '•> Lav:s of Illinois, 1823, 167. 
 
 '^'^ House Journal, 1824-1825, 221, 246, 275; LaiJis of Illinois, 1825, 96-icx>. 
 '1 House Journal, 1824-1825, 120, 131, 165; Laivs of Illinois, 1825, 48. 
 ^'- House Journal, 1826-1827, 117, 157.
 
 RIVER AND ROAD IMPROVEMENT, 1818-1836 13 
 
 should Congress consent to the sale of the salt lands/^ All net 
 proceeds arising from the sale of such lands were appropriated 
 to improve the navigation of the Great Wabash. The money 
 was to be disbursed in conjunction with Indiana, when that 
 state should set apart and appropriate funds for the purpose. 
 The members of the legislature were going to make sure that 
 no money received from the sale of the salt lands would lie 
 idle, so they distributed appropriations with a lavish hand.^* 
 
 The legislature in 1826 received petitions from the residents 
 of several counties requesting river improvement for naviga- 
 tion purposes. The inhabitants of White and Wayne counties 
 asked for removal of obstructions in the Little Wabash. A 
 select committee reported a bill which failed of adoption. ^° 
 The citizens of Pope county petitioned that Big Bay creek be 
 declared a public highway. The committee on internal im- 
 provements of the house of representatives made an adverse 
 report. ^^^ When the residents of Union, Alexander and John- 
 son counties asked for removal of obstructions to navigation 
 in the Cache river, the house committee on internal improve- 
 ments declared that the condition of the treasury made impos- 
 sible an appropriation for this purpose." 
 
 In the general assembly of 1 828-1 829 the committee on 
 internal improvements of the senate made a report recom- 
 mending the improvement of the Kaskaskia river. ^* It was 
 pointed out that as early as 18 19 keelboats were brought up 
 the Kaskaskia from the Mississippi, as high as Carlyle, a dis- 
 
 13 Lflifj of Illinois, 1827, 358. 
 
 1* An act passed February 15, 1827, provided that as soon as $20,<X)0 was 
 realized from the sale of lands in the Vermilion saline, the sum of $1,000 was 
 appropriated toward the improvement of the Big Muddy river. A law enacted 
 in 1829 appropriated the proceeds of sales after those of the first 10,000 acres 
 as follows: $1,000 to the navigation of the Little Wabash; $700 to a state road, 
 Vandalia to Golconda ; $2,000 to the Kaskaskia river; $1,000 to the Sangamon 
 river; $800 to the Macoupin river and roads in Greene county; $2,000 to the 
 Vermilion river; $800 to bridge Bruetts and Sugar creek, and roads in Edgar 
 count}'; $800 to Big creek, Stony creek, Mill creek, and the bottom between 
 Stony and Bohn's creek; $1,000 to Rockson, Hudson, Sugar and La Motte creeks, 
 and the bottoms thereof; $1,600 to improvements in Lawrence county. Ibid., 
 1827, 359, and 1829, 147-48. 
 
 ^^ Senate Journal, 1828-1829, 175-79. 
 
 1*= Ibid., 23, 36. 
 
 1" Ibid., 29, 41. 
 
 1*^ Ibid., 175-79.
 
 14 ILLINOIS INTERNAL IMPROVEMENTS 
 
 tance of lOO miles. It was further shown that flatboats laden 
 with produce for the New Orleans market were regularly 
 floated down the river. The committee recommended that 
 Congress be memoralized for a donation of land, and reported 
 a bill.''' The legislature responded with the act of January 23, 
 1829, which created a board of commissioners consisting of 
 Shadrach Bond, Edward Newsham, Samuel Morrison, Hart- 
 shorn White, Charles Slade, and William Lee D. Ewing.-'^ 
 An appropriation of $2,000 was made out of the money re- 
 ceived from the sales of the Vandalia lots and $2,000 from 
 the proceeds when the Vermilion county saline lands were to 
 be sold.-^ No money became available from the sale of the 
 saline lands, and the other $2,000 was diverted from its in- 
 tended use, and appropriated to the counties of Randolph, 
 Perry, Monroe, Washington, St. Clair, Clinton, Fayette, 
 Marion, and Bond. The board created for the Improvement 
 of the Kaskaskia reported to the general assembly In 1835 
 that It had transacted no business because of lack of funds. '^ 
 Since there was no reason for continuing the existence of the 
 board, the legislature enacted a law on January 16, 1836, 
 authorizing it to dissolve.-^ 
 
 A bill to improve Macoupin and Apple creeks passed the 
 senate but was defeated in the house during the 1 828-1 829 
 session.-* 
 
 The complete failure of all former schemes for the Improve- 
 ment of the Wabash, resulted in a recrudescence of discussion 
 on the subject in 1833. The general assembly passed a resolu- 
 tion requesting Governor Edward Coles to communicate with 
 the governor of Indiana to learn If the cooperation of that 
 state might be expected.-^ After an exchange of letters had 
 established a confidence In the willingness of Indiana to co- 
 
 1^ The committee likewise recommended that Congress be memorialized for 
 a grant to improve the Sangamon, Macoupin, and Big Muddy rivers. Ibid., 179. 
 
 -^ Laivs of Illinois, 1829, 124-25. 
 
 -1 The auditor's report of December 8, 1828, shows that the amount received 
 from the sale of Vandalia lots from November lo, 1826, to November 30, 1828, 
 was $3,287.10. Ibid., 246. 
 
 -- Senate Journal, 1825-1826, 184. 
 
 -^ Laivs of Illinois, 1836, 244. 
 
 -•* House Journal, 1828-1829, 90. 
 
 -^ Ibid., 1832-1833, 83, 143, 212.
 
 RIVER AND ROAD IMPROVEMENT, 1818-1836 15 
 
 operate, the legislature passed an act which stipulated that 
 $12,000 should be expended if the state of Indiana would ap- 
 propriate an equivalent sum, on or before March 4, 1834.-® 
 Indiana accordingly approved a law on February i, 1834, 
 appropriating $12,000 to match the sum appropriated by 
 Illinois.-^ The reports of the auditor of public accounts, show 
 that warrants amounting to $11,686.71 were drawn on the 
 treasury from November 30, 1833, to November 30, 1835, 
 for the improvement of the Wabash.-^ 
 
 Interest in the improvement of the Sangamon was stimulated 
 when the steamboat Talisman ascended the river to the Spring- 
 field landing in 1832. George Forquer had a letter published 
 in the Sangamo Journal^ July 12, 1832, addressed to the voters 
 of Sangamon county, in which he pointed out: 
 
 The recent experiment made by the steamboat, Talisman, in ascend- 
 ing the river to the Springfield landing, has disclosed how far its 
 navigable capacities may be improved. A few 1000 dollars would 
 enable steamboats of from 50 to 80 tons burden, for about 5 months 
 in the year to run from Beardstown to this place in 24 hours. This 
 done, and the Sangamo would add as much to our commercial facil- 
 ities as a canal from here to the Illinois. The means for this project 
 might come from the proceeds of the sale of the saline lands. The 
 Legislature by the acts of 1827, and 1829, has provided for the sale 
 of all the Vermilion and 30,000 acres of the Ohio saline lands. 
 
 An act providing for the improvement of the Sangamon 
 river eventually passed the legislature, February 12, 1835.'^ 
 Lack of funds, however, resulted in no appropriation at this 
 time. 
 
 The precedent set by the federal government in 1822 in 
 granting lands to the state for the construction of an Illinois 
 and Michigan canal ^° resulted in a flood of demands for land 
 to aid in the improvement of various rivers. In the 1 830-1 831 
 session of the legislature memorials were addressed to Con- 
 gress for donations of land to aid the state in the improvement 
 
 -^ Laivs of Illinois, 1833, 609-11. 
 
 '^''Illinois Advocate, March 29, 1834; House Journal, 1834-1835, 16. 
 
 "^^ Laivs of Illinois, 1835, 243, and 1836, 282. 
 
 -^ House Journal, 1834-1835, 453, 513, 550. 
 
 3" United States Statutes at Large, III, 659. Although the question of an 
 Illinois and Michigan canal was consistently considered by the state legislature 
 no action was taken until the boom period of 1836.
 
 l6 ILLINOIS INTERNAL IMPROVEMENTS 
 
 of the Kaskaskia and Embarrass rivers. ^^ During i 834-1 835 
 numerous requests were made of the federal government. One 
 memorial to Congress asked for a donation of land worth at 
 least $2,000 to improve the Cache river in Johnson and Alex- 
 ander counties.^- Other requests sought appropriations for 
 clearing out obstructions to navigation from the Mississippi, 
 Illinois, Wabash, and Kaskaskia rivers. ^^ Only the Mississippi, 
 however, received any attention from the federal government 
 at this time. 
 
 River transportation, important as it was, could not meet 
 the needs of a large part of the state. Highly desirable land 
 lay in the interior between streams which could be occupied 
 only when improvement was made of facilities for travel and 
 transportation by land. Then, too, the distance from one place 
 to another by water was often several times as great as that 
 by land. It was for this reason, in early territorial times, that 
 travel began to trickle overland from various points on the 
 Ohio to the settlements on the Mississippi. By 1818 a number 
 of overland routes had been put into use in the southern part 
 of the state. One of the first roads to be developed led from 
 Fort Massac, situated on the Ohio a short distance below the 
 mouth of the Tennessee, to Kaskaskia on the Mississippi. By 
 1818 this route had been largely superceded by the roads lead- 
 ing from Golconda and Shawneetown to the state capital. 
 From Kaskaskia northward a number of roads were in use; 
 one followed a circuitous route through the American Bottom 
 via Prairie du Rocher and Cahokia to Illinoistown opposite 
 St. Louis, while another followed a direct route through Belle- 
 ville to Edwardsville. One of the best known roads of the 
 time was the "Goshen Road" extending from Shawneetown in 
 a direct route via Carlyle to Edwardsville and Alton. A line 
 of travel across the state from Vincennes to St. Louis joined 
 the Goshen Road at Carlyle and coincided with it for several 
 miles. A branch of the Vincennes-St. Louis road left the 
 main line near the center of the state and led in a southwest- 
 
 31 House Journal, 1830-1831, 367. 
 
 ^- Ibid., 1834-1835, 407, 498; Senate Journal, 1834-1835, 37, 63. 
 ^^ House Journal, 1834-1835, 37, 81-84, 400; Senate Journal, 1834-1835, 37, 
 63. 372, 442.
 
 RIVER AND ROAD IMPROVEMENT, 1818-1836 17 
 
 ward direction toward Kaskaskia. One other important road 
 extended from Shawneetown northward through Carmi to the 
 EngHsh settlement.^* Besides the main highways crossing the 
 state there were, in addition, numerous trails radiating out 
 from the towns through the surrounding country or connecting 
 small settlements with the through roads or with navigable 
 streams. 
 
 Although there was considerable travel on the main routes 
 during the dry season and in winter when the ground was fro- 
 zen, they were in reality little more than trails worn by use. 
 In many places the trail through the wilderness became so 
 indistinct that the traveler had difficulty in following It. The 
 amount of grading and other improvements that had been 
 made on even the most frequently used roads was almost 
 negligible. It was not that the people did not care for better 
 means of transportation, but the frontiersman had to spend 
 all his time in maintaining a roof over his head and wresting a 
 living from the soil, and he had no money to pay wages to 
 laborers for road building. 
 
 The need of improvement was evident, and the first state 
 legislature proceeded to pass "an act for opening, repairing, 
 improving, and regulating roads and highways." However, 
 the condition of the state treasury did not permit the appro- 
 priation of any money for actual improvements. The road law 
 of 1 8 19 declared all roads laid out under the territorial legis- 
 lature to be public roads and highways. ^^ The county commis- 
 sioners courts were vested with general superintendency over 
 the public roads and highways within their respective counties. 
 The law further provided that the county commissioners were 
 to appoint supervisors, who were given the power to call on 
 all males between the ages of eighteen and fifty in their pre- 
 cincts to perform labor upon the roads, causeways, and 
 bridges to keep them in good order. Every such person failing 
 to appear for labor when called upon was to pay one dollar 
 
 ^•* Solon J. Buck, Illinois in 1818 {Centennial History of Illinois, introductory 
 volume, Springfield, 1917), 59, 114; Arthur C. Boggess, The Settlement of Illi- 
 nois, ijyS-lSso {Chicago Historical Society's Collection, volume V, Chicago, 
 1908), 125, 157. 
 
 ^^ Lav:s of Illinois, 1819, 333-44.
 
 l8 ILLINOIS INTERNAL IMPROVEMENTS 
 
 per day for each day's absence. No person should be com- 
 pelled to work on the public roads more than five days in a 
 year. Every supervisor was to be entitled to a compensation 
 of one dollar and a half for each day actually employed plus 
 five per cent of all monies collected in his district for road 
 purposes. Supervisors neglecting their duties were to be sub- 
 ject to a fine of twenty-five dollars for each offense. The coun- 
 ty commissioners were empowered to contract for the building 
 and repairing of bridges and causeways when the construction 
 was beyond the capacity of the supervisors and their assistants 
 to perform. New roads were to be opened only upon the peti- 
 tion of at least twelve house-holders resident in the county. 
 The costs of viewing and surveying the road had to be borne 
 by the petitioners, unless the road was of public utility, when 
 the costs were to be paid out of the county treasury. 
 
 The road law of 1819 was amended many times during the 
 succeeding twenty years. In 1821 the duties of the supervisors 
 were further defined and their compensation reduced to one 
 dollar per day for each day's employment over and above the 
 five days service required of every male resident of the county 
 between the ages of eighteen and fifty. ^^ They were still en- 
 titled to receive five per cent of the road money collected in 
 the county. 
 
 The general assembly of 1 824-1 825 made a number of very 
 significant changes in the road law.^^ The amount of labor on 
 roads required of the male residents of the county was reduced 
 from five to two days a year, and the minimum age of those 
 subject to call was raised to twenty-one. The compensation of 
 the supervisors was restored to one dollar and a half per day; 
 however, they were no longer entitled to the five per cent of 
 the county road money which they had formerly received. No 
 new road was to be ordered opened by the county commis- 
 sioners unless there were thirty-five petitioners, except in coun- 
 ties of not more than three hundred voters, where only fifteen 
 were required. Most important, was the provision which em- 
 
 3*^ Ibid., 1821, 167-69. 
 
 ^~ House Journal, 1824-1825, 63, 189, 255, 290, 297; Lav:s of Illinois, 1825, 
 130-34-
 
 RIVER AND ROAD IMPROVEMENT, 1818-1836 1 9 
 
 powered the county commissioners to levy a road tax. This 
 was the first tax for road purposes provided for by state law. 
 The new tax, the maximum rate of which was fixed at one-half 
 per cent, was to be collected by the supervisors in their respec- 
 tive districts by November i, annually. Any person unable or 
 unwilling to pay the tax was allowed to discharge it in labor 
 on the roads. 
 
 In 1827 all previous laws providing for the opening, repair- 
 ing, and regulating of roads were repealed and a new law 
 passed. Practically the same provisions of the former laws 
 were incorporated, except that the section on compulsory road 
 labor allowed a person to be exempt if he furnished a substi- 
 tute equally able as himself to perform his work.^^ The mini- 
 mum age of those required to do labor was again put at 
 eighteen and the amount of work at five days per year. An 
 amendment passed in 1831 reduced the amount of compulsory 
 labor required to three days in a year, but whenever, in the 
 opinion of the county commissioners court of any county that 
 was found to be insufficient, the commissioners could authorize 
 the supervisors to call upon every taxable inhabitant to per- 
 form an additional amount of labor on the roads at the rate 
 of not more than one day for every one hundred dollars worth 
 of real and personal property he might possess in the county.^^ 
 
 A new law was enacted in 1835 which embodied virtually 
 the same provisions as the law which it repealed.**" On January 
 18, 1836, an amendment was added to allow the counties to 
 spend larger sums for the improvement of roads. ^^ The county 
 commissioners were authorized to expend on roads any sum 
 not exceeding one-third of the amount received into the county 
 treasury in the current year immediately preceding the time of 
 expending such sums of money. 
 
 In addition to the general road laws the state legislature 
 also passed special laws providing for the opening and im- 
 
 ^^ Ibid., 1837, 340-46. 
 
 ^^ House Journal, 1830-1831, 254, 356, 366, 498, 511, 536; Laivs of Illinois, 
 1831, 158-62. 
 
 '^o Senate Journal, 1834-1835, 145, 268, 316, 356, 441; Laivs of Illinois, 1835, 
 129-39. 
 
 ^^ Ibid., 1836, 207.
 
 20 ILLINOIS INTERNAL IMPROVEMENTS 
 
 provement of particular roads.^- The first of such acts, ap- 
 proved on March 24, 18 19, provided for the appointment of 
 five commissioners, James Hall, John Bradshaw, Isaac D. 
 Wilcox, John Henry, and Alexis Doza, to view and mark a 
 road from Golconda via Brownsville to Kaskaskia. The com- 
 missioners were to receive two dollars per day from the treas- 
 uries of their respective counties while they were employed in 
 viewing and marking the road. At the same session of the 
 legislature an act was approved authorizing the county com- 
 missioners of St. Clair and Madison counties to appoint three 
 persons in each county whose duty it should be to lay out a 
 road from Illinoistown to Six Mile Prairie. 
 
 It will be seen that different principles were followed in 
 providing for the appointment of persons to lay out the roads, 
 in the first act they were appointed by the legislature, and in 
 the second by the county commissioners courts of the counties 
 through which the road was to pass. In general the former 
 method was followed for long roads and the latter for local 
 roads. 
 
 In 1 82 1 the United States road from Shawneetown to Kas- 
 kaskia was declared a public highway with the provisions of 
 the general road law of March 29, 18 19, applicable to it in all 
 respects."*^ It may appear unnecessary that a road surveyed by 
 the United States government be declared a public highway 
 by the state, but the act served a useful purpose, for it placed 
 upon the county commissioners the duty of keeping the road in 
 repair under the same penalties as were imposed for neglect 
 of other highways within their jurisdiction. 
 
 At the first session of the legislature provision was made 
 for the removal of the seat of the state government from 
 Kaskaskia to the newly-platted town of Vandalia on the upper 
 waters of the Kaskaskia river, halfway between the Missis- 
 sippi and the Wabash. The new capital immediately became 
 the radial point for the road system of Illinois. The general 
 
 *- House Journal, 1819, 123, 132, 137, 150, 180, 201; Senate Journal, 1819, 71, 
 76; LaiMS of Illinois, 1819, 239, 297. 
 
 *^ House Journal, 1820-1821, 294., 302, 312, 327, 340; Laiis of Illinois, 1821, 
 148.
 
 RIVER AND ROAD IMPROVEMENT, 1818-1836 21 
 
 assembly of 1 822-1 823 approved eight laws providing for the 
 location of roads from Vandalia to Golconda, Shawneetown, 
 Kaskaskia, Covington, Palestine, Alton, Illinoistown, and to 
 the Vincennes-St. Louis highway.^* The Vandalia-Kaskaskia 
 road, connecting the first and the second capitals of the state, 
 was surveyed and laid out in 1824. 
 
 The session of 1 822-1 823 also established roads from 
 Shawneetown to the Gallatin saline, from Covington to Amer- 
 ica via Brownsville and Jonesboro, from McCalla's to Vin- 
 cennes, from Fairfield to the Wabash opposite Harmony, from 
 Fairfield to Carmi, and from Mount Vernon to the Gallatin 
 saline."*^ 
 
 The first roads were established in central Illinois in 1825, 
 when Sangamon county had just been formed, and Springfield 
 was beginning to become a village of some importance. The 
 general assembly at this session laid out two roads leading 
 from Springfield, one to the Illinois river, and another to Paris 
 in Edgar county.*^ Ten more roads were established in the 
 southern part of the state — Fayette county line to Crawford 
 county, Gallatin county saline to Littleton's Ferry, McCalla's 
 bridge to Vincennes, Illinoistown to the bluffs, Vandalia to St. 
 Louis, Columbia to Illinoistown, Prairie du Rocher to Ca- 
 hokia, Paris to Wakefield's settlement, Vandalia to Carrolton, 
 and Carmi to Shawneetown.^^ Provision was also made for 
 surveying and locating the National Road across Illinois. 
 Commissioners were appointed who decided on a route from 
 the state line at Vincennes to the bank of the Mississippi river 
 opposite St. Louis via Lawrenceville, Evans', McCalla's, 
 Maysville, Elliott's, Meisenhamer's, Lewis', Piles', Salem, 
 Carlyle, Scott's Post Office, Lebanon, and Hathaway's. Most 
 places mentioned were farm homes ; all towns on the route were 
 small. Several years later the National Road was rerouted 
 through Illinois from Terre Haute, Indiana, through Van- 
 dalia. 
 
 ^'^ Ibid., 1832, 123, 124. 
 
 ^= Ibid., 1823, 98. 124, 143. 
 
 ^^ House Journal, 1824-1825, 48, 115; Laiis of Illinois, 1825, 35, 81. 
 
 *' Ibid., 15, 22, 56, 60, 61, 104, 105, 107, 115.
 
 22 ILLINOIS INTERNAL IMPROVEMENTS 
 
 In 1827 four roads were declared to be state highways — 
 Mount Vernon to Carlyle, Springfield to Peoria, Carlyle to 
 Springfield, and Equality to Ford's Ferry on the Ohio river.^^ 
 
 In 1 828-1 829 and following sessions the number of roads 
 established by the legislature was so great it would be mon- 
 otonous to enumerate all of them. For example, in 1829 
 seventeen new roads were laid out, in 1831 twenty-two, in 
 1833 fifty-one, in 1835 forty-one, and in 1836 thirty-eight. 
 
 It was not until 1831 that the first roads were established in 
 the northern part of the state. Settlement of that area had 
 lagged because of inaccessibility and the diflSculties with the 
 Indians. In 1831 the legislature appointed commissioners to 
 view and mark roads from Alton to Galena, from Springfield 
 to Rock Island, and from the Wabash opposite Vincennes to 
 Chicago/^ Galena became an important road terminal be- 
 cause it was located in the heart of the lead mining district of 
 northwestern Illinois. Chicago was just beginning to come into 
 prominence as the objective of settlers who came from New 
 York and New England by way of the Erie Canal and the 
 Great Lakes, and as the eastern terminus of the projected Illi- 
 nois and Michigan Canal. 
 
 The general assembly bestowed its favors lavishly but some- 
 what capriciously in laying out new roads. Establishment of a 
 straight route across the state was often delayed for many 
 years, because only a small portion of it was located at any one 
 session of the legislature. Some roads were of great length 
 leading from one end of the state to the other, while others 
 simply led from one farmhouse to another. Sometimes one 
 county received an unusually large proportion of the roads 
 established, because its representatives were able to accom- 
 plish some shrewd bargains. Sangamon county after 1832 is 
 an example. 
 
 Despite the numerous laws enacted by the legislature for 
 establishing roads, transportation facilities and land travel 
 remained in a wretched condition. No amount of legislation 
 
 •^^ Ibid., 1827, 347. 
 
 *^ House Journal, 1830-1831, 319, 349, 354; Senate Journal, 1830-1831, 273, 
 275, 310; Laiis of Illinois, 1831, 137, 144, 157.
 
 RIVER AND ROAD IMPROVEMENT, I 8x8-1 836 23 
 
 could improve and maintain roads, and it was not to be ex- 
 pected that the state could appropriate large sums for such 
 purposes when the annual revenue with which to pay the entire 
 expenses of the government was less than one hundred thou- 
 sand dollars. In fact, but few direct appropriations were made 
 out of the state treasury prior to 1837 ^^^ the improvement 
 of highways; perhaps the largest item was the $300 appro- 
 priated in 1829 for the improvement of that section of the 
 Vincennes-Carlyle road lying between McCalla's bridge and 
 the Muddy Fork.^° The cost of practically all highway con- 
 struction was placed upon the counties; even the salaries of the 
 commissioners appointed by the state came from the county 
 treasuries. The amount of grading and other work done upon 
 the roads in that day was very limited as compared with pres- 
 ent day standards of construction. The surveyors of the 
 Chicago-Vincennes road reported in 1832 that the total cost 
 of its improvement would be but $31,658.35 ! ^^ The road was 
 225 miles in length. 
 
 A number of attempts were made by the state to obtain aid 
 from the federal government for road improvement purposes. 
 In 18 19 the general assembly passed a resolution requesting 
 the representatives in Congress to use their exertions to pro- 
 cure the passage of a law authorizing a survey of the public 
 lands in Illinois through which the National Road would pass, 
 and to appropriate the proceeds arising from the sale of such 
 lands to the opening and improving of the road.^" Several 
 proposals were made in the legislature during the session of 
 1 830-1 83 1 for memorials to Congress requesting grants of 
 land and appropriations from the two per cent fund for the 
 following roads : America to Vandalia, Terre Haute to Quincy, 
 Chicago to Vincennes, and St. Louis to Vincennes." In 1834 
 
 ^<^ Ibid., 1829, 127. 
 
 ^1 Internal Improvement Records (27 volumes, Illinois State Archives, 
 Springfield), XXVII, no paging. 
 
 ^'- Senate Journal, 1819, 221, 222. 
 
 53 House Journal, 1830-1831, 239, 260, 279, 354, 376, 456. The act of Congress 
 admitting Illinois into the Union as a state in 1818 provided that two per cent 
 of the net proceeds from sales of public lands within the state was to be reser\ed 
 for the construction of roads leading to the state. United States Statutes at 
 Large, III, 430.
 
 24 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Joseph Duncan, the Illinois representative in the lower house 
 of Congress, introduced a bill which would have granted the 
 state a strip of land 120 feet wide plus one section for each 
 mile of the length of the Chicago-Vincennes road to be used 
 for the improvement of that highway.^^ All requests for aid 
 from the federal government were refused. President Jackson 
 having marked out the policy of the administration by his veto 
 of the Maysville Turnpike bill in 1830. 
 
 Road construction by private companies was tried at an 
 early date, but it never met with much success. On January 12, 
 1825, the Allison Turnpike Company was incorporated for the 
 purpose of opening a turnpike from the Wabash river opposite 
 Vincennes to Lawrenceville/^ This company, capitalized at 
 $10,000, was unable to dispose of its stock. In 1826 two turn- 
 pike companies were incorporated. The Wabash and Missis- 
 sippi Turnpike Company was given a charter to construct a 
 road across the state from Vincennes to St. Louis, and the 
 Alton, Jacksonville, and Galena Turnpike Company was to be 
 permitted to construct either a turnpike or railroad from Alton 
 to Galena.^" The former was allowed a capital stock of 
 $500,000 and the latter $1,000,000, and both were given the 
 liberty to increase their capital from time to time. Like most 
 private companies incorporated at this time to construct in- 
 ternal improvements, they never found buyers for their stock. 
 
 One of the most difficult problems which the people of a 
 pioneer state had to face was the provision of means for cross- 
 ing the numerous streams. Wherever possible a ford was used 
 but there were many streams which could not be forded. 
 
 The first general assembly of Illinois sought to solve the 
 problem by enacting ferry and toll bridge laws in which the 
 county commissioners were given general supervision over the 
 ferries and bridges in their respective counties." The commis- 
 sioners were authorized to grant licenses to any individual or 
 individuals to erect toll bridges or to operate ferries on any 
 stream whenever the public convenience should require it. No 
 
 •'* Chicago Democrat, July 23, 1834; Sangamo Journal, July 5, 1834. 
 ^^ Laivs of Illinois, 1825, 88. 
 
 ^^' Senate Journal, 1835-1836, 25; Laiis of Illinois, 1836, 115, 120-29. 
 ^' Ibid., 1819, 28-30, 300.
 
 RIVER AND ROAD IMPROVEMENT, 1818-1836 25 
 
 license was to be granted for a longer period than twenty 
 years. The owner of the land bordering on the stream was to 
 have the preference in erecting such a bridge or ferry. The 
 commissioners were given the power to fix the rates of tolls 
 and ferriage. The operators of ferries were to be free of road 
 work and of military service. A bond for the safe performance 
 of his duties was to be given the ferry operator. Public car- 
 riers of the United States, the governor, and all military 
 officers were exempted from paying tolls. According to the 
 law ferries were to be in operation from sunrise to sunset: 
 
 Provided, however, that all ferry-keepers shall be obliged at any 
 hour of the night if required, except in case of evident danger, to give 
 passage to all public expresses above recited, and to all persons re- 
 quiring the same on their tendering and paying double the rate of 
 ferriage allowed to be taken during the daytime. 
 
 In addition to this general law, special acts were also passed 
 from time to time in which the legislature authorized the con- 
 struction of a particular bridge or the operation of a certain 
 ferry. 
 
 The year 1836 marks the end of one period, and the open- 
 ing of another in the development of internal improvements 
 in Illinois. Up to that time no comprehensive work was under- 
 taken; the total of all expenditures for internal improvements 
 paid out of the state treasury amounted to only $24,338.03 
 for the ten year period from November 30, 1826, to Novem- 
 ber 30, 1836.^* During the ten years following, the state bor- 
 rowed millions of dollars in an effort to build an extensive sys- 
 tem of railroads and an Illinois and Michigan canal. It was a 
 period characterized by the hysteria and wild optimism of a 
 boom, the gloom and despondency of the subsequent depres- 
 sion, and the hopefulness and sobriety of the eventual recovery. 
 
 58 Yhe expenditures were as follows: 
 
 Appropriated for improvement of the Kaskaskia river, 
 but diverted to the use of Bond, Clinton, Fayette, 
 Marion, Monroe, Perry, Randolph, and Washington 
 
 counties $ 2,cxx3.oo 
 
 Expended on bridges 3,328.50 
 
 Expended on roads 7,322.82 
 
 Expended on the Wabash river 11,686.71 
 
 These figures are taken from the auditor's biennial reports for the years 1828 
 to 1836 included in the La^vs of Illinois.
 
 CHAPTER II 
 
 THE ILLINOIS AND MICHIGAN CANAL 
 
 THE project of a canal to connect the waters of Lake 
 Michigan and the Illinois river was one of the first pro- 
 posals In the development of internal improvements in Illinois. 
 A mere glance at the map of Illinois must convince even the 
 casual observer that the union of Lake Michigan and the 
 Illinois river by a canal, should be an object of easy accom- 
 plishment as well as of great commercial importance. And so 
 it seemed to its early advocates. During the wet season the 
 south branch of the Chicago river and the Des Plaines branch 
 of the Illinois were connected by a slough through which a 
 boat could pass. Even in the dry season there was a portage 
 of but three miles. Nothing more seemed necessary to render 
 this communication useful to commerce than to deepen the 
 passage from the Chicago river to the rapids of the Illinois. 
 
 Interest in this project was not confined to the limits of the 
 state, nor did the idea originate there. Its early advocates 
 thought of it as a part of a general scheme of internal im- 
 provements which would provide some means of cheap trans- 
 portation between the new West and the eastern seaboard. 
 The manufacturers of the East understood clearly that unless 
 the cost of transporting goods from the Atlantic seaboard to 
 the West was reduced, the Mississippi valley would either be- 
 come economically independent or direct its trade to the south 
 through New Orleans. Even during the French regime the 
 attention of the settlers was directed to the importance of the 
 Illinois-Michigan portage and trading establishments were 
 erected to take full advantage of it. 
 
 The idea of a canal connecting the Illinois river with Lake 
 Michigan was probably first suggested by Peter B. Porter of 
 New York. In 1810 he made a report to Congress In which 
 he outlined a plan for connecting the West with the eastern
 
 THE ILLINOIS AND MICHIGAN CANAL 27 
 
 seaboard along the Great Lakes-Hudson river route by a 
 series of canals.^ He particularly pointed out the ease with 
 which a canal could be constructed between the Illinois river 
 and Lake Michigan. During 18 14 two articles appearing in 
 Niles Register also made mention of the subject." 
 
 The War of 1812 demonstrated to federal officials the Im- 
 portance of connecting the Mississippi river with the Great 
 Lakes by a waterway. In 18 16 a tract of land extending from 
 Lake Michigan to the Illinois river was obtained from the 
 Indians. NInian Edwards who was one of the commissioners 
 that negotiated the treaty afterwards reported that "the In- 
 dians were induced to believe that the opening of the canal 
 would be very advantageous to them, and that, under author- 
 ized expectations that this would be done, they ceded the land 
 for a trifle." ^ Major Stephen Long, a United States Army 
 engineer, submitted a report to the Secretary of War on March 
 4, 1 8 17, In which he said that "a canal uniting the waters of 
 the Illinois with those of Lake Michigan may be considered 
 the first of importance of any In this quarter of the country, 
 and at the same time, the construction of It would be attended 
 with very little expense compared with the magnitude of the 
 object." ^ Two years later a similar report was made by 
 Richard Graham and Joseph Philips. In 18 19 John C. Cal- 
 houn, the Secretary of War, directed the attention of Congress 
 to the canal on account of its Importance to military measures, 
 and pointed out that the improvement could be made at very 
 small expense.^ No action was taken on the project at this time 
 because the East and the South were opposed to internal im- 
 provements undertaken in the West by the federal govern- 
 ment. President Monroe, too, was opposed, because he be- 
 lieved that it would be unconstitutional for the United States 
 to finance such an undertaking. Thus it was not until after a 
 state government was set up In Illinois and the local interests 
 
 ^Annals of Congress, 11 Congress, 2 Session, II, 1388-93. 
 -Niles Register, VI, 394, 417. 
 
 3 Ninian Edwards, History of Illinois from ijjS to l8s3 ; and Life and Times 
 of Ninian Edivards (Springfield, 1870), 99. 
 
 ^American State Papers, Miscellaneous, II, 555. 
 ^ Ibid.; Illinois Gazette, February 17, 1820.
 
 28 ILLINOIS INTERNAL IMPROVEMENTS 
 
 aroused that any definite move was made toward the achieve- 
 ment of the project. 
 
 In the first general assembly of the state unsuccessful efforts 
 were made in both houses to pass bills authorizing the appoint- 
 ment of commissioners who were to ascertain the practicability 
 of constructing an Illinois and Michigan canal." After some 
 spirited discussion both houses of the second legislature con- 
 curred in a resolution requesting the Congressional delegates 
 to work for the passage of a law authorizing the state to con- 
 struct the canal through the public lands granting to the state 
 the use of the two per cent road fund as well as a donation of 
 public lands of one section in width from the mouth of the 
 Chicago river to where the canal would strike the Illinois 
 river for financing the project.^ Congress responded with a 
 law on March 30, 1822, authorizing the construction, and 
 granting a strip of land for the canal, but only ninety feet 
 additional on each side instead of the donation as requested.^ 
 The grant was to be void if the survey was not made within 
 three years and the canal completed in twelve years, or the 
 land used for other purposes than provided for in the act. 
 Governor Shadrach Bond in his message to the general assem- 
 bly on December 4, 1822, recommended that the state take 
 immediate steps in order to avail itself of the provisions of 
 the Congressional act.° On February 24, 1823, the legislature 
 approved an act appointing Emmanuel J. West, Erasmus 
 Brown, Theophilus W. Smith, Thomas Sloo, Jr., and Samuel 
 Alexander, commissioners to lay out a route for a canal, and 
 to estimate its cost.^° The commissioners employed two civil 
 engineers, Justus Post and Rene Paul, to make the surveys and 
 estimate the cost of the canal. ^^ Estimates made by the en- 
 
 '^ House Journal, 1819, 144; Senate Journal, 1819, 130, 136. 
 
 ''Ibid., 1820-1821, 100, 102, 106, 115; House Journal, 1820-1821, 95, 200, 201. 
 
 ^Annals of Congress, 17 Congress, i Session, 2586; United States Statutes at 
 Large, III, 659. 
 
 ^ House Journal, 1822-1823, 13. 
 
 '^'^ Laivs of Illinois, 1823, 152. 
 
 '1 Report of the Canal Commissioners of Illinois to Governor John R. Tanner, 
 1900 (Springfield, 1901), 61. This report has included on pages 60 to 214 inclu- 
 sive a reprint of all the documents relating to the history of the Illinois and 
 Michigan Canal from 1822 to its completion. Cited hereafter as Report of the 
 Canal Commissioners, 19CX).
 
 THE ILLINOIS AND MICHIGAN CANAL 29 
 
 gineers placed the cost at from $639,000 to $713,000 for the 
 work,^- 
 
 In his message of November 26, 1824, Governor Edward 
 Coles suggested that a fund be created and that the state un- 
 dertake construction of the canal/^ The members of the legis- 
 lature, however, could see no means available for construction 
 by the state. The committee on Internal improvements of the 
 house reported a bill which was enacted Into a law on January 
 17, 1825, whereby a private corporation was created consist- 
 ing of Edward Coles, Shadrach Bond, Justus Post, Erasmus 
 Brown, William S. Hamilton, Joseph Duncan, and John 
 Warncock, who were to receive all lands which the United 
 States might grant and all donations which private persons and 
 the various states might make in aid of the undertaking/* 
 This Illinois and Michigan Canal Company, which was to 
 have a capital of $1,000,000, was to complete the canal by 
 January i, 1835. All tolls were to go to the company for fifty 
 years, after which the state might buy the canal for the sum 
 expended on its construction plus six per cent Interest annually. 
 The canal was to have a width of forty feet at the top, twenty- 
 eight feet at the bottom, and a depth of at least four feet. 
 
 The plan providing for the construction of the canal by a 
 private company met with strong opposition from friends of 
 Internal Improvements owned and controlled by the state. 
 Congressman Daniel P. Cook, Illinois' lone delegate in the 
 House of Representatives bore the brunt of the attack. In an 
 address published In the Illinois Intelligencer on November 15, 
 1 825, he urged a repeal of the act. He outlined a plan whereby 
 the state might construct the canal by borrowing money on the 
 credit of the school lands and the three per cent school fund. 
 He also suggested that a grant of land from the national gov- 
 ernment and the probable Increase of population and of com- 
 merce would enable the state to finance the canal from the 
 tolls received. In taking a stand against the private company 
 he argued that It would be dangerous to allow a transportation 
 
 ^'-Senate Journal, 1824-1825, 17; House Journal, 1825-1826, 80. 
 
 ''■^ Senate Journal, 1824-1825, 17. 
 
 ^* House Journal, 1824-1825, 229, 295; Laivs of Illinois, 1825, 184.
 
 30 ILLINOIS INTERNAL IMPROVEMENTS 
 
 monopoly in private hands. He further pointed out that the 
 private company might get control of the politics of the state. 
 The EdwardsviUe Spectator took up Cook's arguments and 
 called attention to the fact that even the friends of the act had 
 to admit that its provisions were too unfavorable to the state. ^^ 
 Even on such favorable terms capitalists would not buy the 
 company's stock without a grant of land from Congress.^® The 
 directors of the company, having failed to dispose of the stock 
 and believing that Congress would be more willing to make a 
 donation of land to the state than to a company, surrendered 
 their charter on January 12, 1826.^" The legislature which was 
 meeting in special session to redistrict the state repealed the 
 canal act two weeks later. ^* 
 
 In the meantime Cook had made repeated attempts in Con- 
 gress to get a bill passed for a grant of land to the state. 
 There was a current feeling in Illinois that members in Con- 
 gress from Louisiana and Mississippi fought against the grant 
 because they feared that trade would be deflected from New 
 Orleans, should the Illinois and Michigan Canal be con- 
 structed.^® John C. Calhoun opposed the grant because he 
 wanted the other states to have a part in the enterprise."" In 
 spite of this opposition, repeated memorials from the state 
 legislature and renewed efforts on the part of Cook resulted in 
 the act of March 2, 1827, whereby Congress granted the state 
 one-half of the land to a depth of five sections on each side of 
 the projected canal, reserving each alternate section for the 
 United States. ^^ The canal, to be begun in five years and com- 
 pleted in twenty, was to be a highway open to the United 
 States government without toll. Throughout the state of Illi- 
 nois the grant was regarded as a brilliant triumph for those 
 
 "^^ Ediuardsville Spectator, December 3, 1825. 
 
 "^^ House Journal, 1826, 15. 
 
 '^''Senate Journal, 1826, 41. 
 
 "^^ House Journal, 1826, 41, 57, 75, 103. 
 
 '^^ Illinois Intelligencer, March 25, 1825. 
 
 ^ The EdivarJs Papers; Being a portion of the Letters, Papers, and Manu- 
 scripts of Ninian Edivards, E. B. Washburne, editor (Chicago Historical Soci- 
 ety's Collection, III, Chicago, 1884), 267. Cited hereafter as Ed-ziards Papers. 
 
 -^ House Journal, 1826-1827, 121; Congressional Debates, 1826-1827, appen- 
 dix, 18.
 
 THE ILLINOIS AND MICHIGAN CANAL 3 I 
 
 favoring a liberal internal improvement policy on the part of 
 the national government. ■- 
 
 At the following session of the state legislature, Governor 
 Ninian Edwards proposed that the canal be constructed on a 
 loan which might be effected on a pledge of the canal lands. "^ 
 On January 29, 1829, an act was passed which provided for a 
 board of commissioners, who were to fix the route of the canal, 
 select the alternate sections of land granted by the national 
 government, and, after having laid off the land in tracts and 
 town lots, sell it at public sale.-* With the funds thus obtained, 
 the commissioners were to construct a canal forty feet wide at 
 the summit water line, twenty-eight feet wide at the bottom, 
 and four feet deep. Edmond Roberts, Gershon Jayne, and 
 Charles Dunn, the commissioners selected under the act, pro- 
 ceeded to select the lands and have a survey made by a United 
 States government engineer.-^ The towns of Chicago and 
 Ottawa were laid out, and public sales held at Springfield on 
 April 19, 1830, and at Chicago on September 27, 1830, to 
 dispose of the lots."*' Less than $18,000 was obtained from 
 the sale of lots and canal lands at these and subsequent sales."' 
 
 The canal project first became a political issue of importance 
 in the gubernatorial election of 1830. The opponents of Wil- 
 liam Kinney tried to show that he could not be trusted on the 
 canal issue. It was charged that he might at any time turn 
 against the project for political expediency. He was accused of 
 having delivered a speech against the canal in Union county 
 in 1826 when he was a candidate for lieutenant-governor. 
 John Reynolds, on the other hand, was declared to be a friend 
 of the canal whether he be speaking at Galena or at the mouth 
 of the Wabash river.-* Reynolds was elected governor. 
 
 ^'-Illinois Intelligencer, April 21, 1827. 
 
 -^ House Journal, 1828-1829, 8. 
 
 24 Lait'j of Illinois, 1829, 14-18. 
 
 -^Illinois Gazette, January 9, 1830; Report of the Canal Commissioners, 
 1900, 75-80. 
 
 -^Illinois Intelligencer, April 10, 1830; Kaskaskia Democrat, June 30, 1830; 
 Illinois Gazette, March 6, September 25, 1830. 
 
 -- Seven lots in Ottawa sold for $162.00, one hundred twenty-four lots in 
 Chicago for $4,357.00, and 10,746.17 acres of land for $14,405.83. Report of the 
 Canal Commissioners, 1900, 87. 
 
 -'Kaskaskia Democrat, June 30, 1830; Illinois Gazette, July 24, 1830.
 
 32 ILLINOIS INTERNAL IMPROVEMENTS 
 
 The canal act of 1829 proved to be unworkable, and In 1831 
 the general assembly amended It.~" The governor was to ap- 
 point one of the commissioners as an acting commissioner who 
 was to be constantly employed on the canal route so as to 
 increase the efficiency of the board. This revised act raised 
 the question of the practicability of improving the navigation 
 of the Illinois river by dams and locks below the Fox to the 
 rapids in lieu of the lower section of the canal, and suggested 
 the use of the Calumet as a feeder between the Chicago and 
 Des Plaines rivers. It also raised the important question 
 whether a railroad might not be of more public utility than a 
 canal. 
 
 The suggestion that a railroad might be built instead of a 
 canal started a discussion which continued for several years. 
 James Bucklin, an engineer employed by the commissioners to 
 examine the canal route, reported that a canal would be too 
 expensive and would present engineering difficulties.^^ He 
 thought the route extremely favorable for the construction 
 of a railroad. Bucklin computed the comparative costs at 
 $1,601,695.83 for a canal elevated ten feet at the summit 
 level and fed by feeders, $4,043,086.50 for a canal at the lake 
 level, and $1,052,488.19 for a railroad. 
 
 At a meeting of St. Clair county citizens assembled at Belle- 
 ville on January 14, 1832, resolutions were adopted express- 
 ing the sentiment that a railroad was preferable to a canal.^^ 
 
 -^ House Journal, 1830-1831, 395, 479, 518, 545; Laws of Illinois, 1831, 39. 
 Meanwhile the citizens of Alton had become highly enthusiastic over the pros- 
 pect of an Illinois and Michigan canal. The Illinois Advocate reported on 
 October 21, 1831, that a Mr. Enoch C. March had recently brought goods to St. 
 Louis from New York by way of the Erie Canal and the Lakes to Chicago, 
 whence they were transported in wagons to the Illinois rapids, and then by 
 steamboat to St. Louis in twenty-five days. This was about two-thirds of the 
 time required to send them over the mountains or by way of New Orleans. The 
 expense was one-third less than by New Orleans. This report led a citizen to 
 write the editor that the Illinois and Michigan canal would open a new and 
 extensive market competing with New Orleans for all agricultural products of 
 Illinois. The writer further stated that Alton, because of the peculiar advan- 
 tages of its location, was destined for a rapid growth, and to an early successful 
 rivalry with St. Louis itself. Alton would command the trade of the upper 
 Mississippi and the Illinois with all their tributary streams, since it occupied 
 the first and only satisfactory site on the Mississippi below the mouth of the 
 Illinois river above St. Louis. Illinois Advocate, November 11, 1831. 
 
 '•'■" House Journal, 1834-1835, 225-32; Illinois Advocate, October 7, 1831; 
 Santjamo Journal, December 29, 1831. 
 
 •■" Sangamo Journal, January 26, 1832; Illinois Advocate, February 24, March 
 2, 1832.
 
 THE ILLINOIS AND MICHIGAN CANAL 33 
 
 J. H. Pugh, the acting canal commissioner, made a long report 
 in which he gave arguments favorable to a railroad.^" He con- 
 tended that a railroad would cost less than $800,000, while the 
 canal would cost two or three million dollars. He went on to 
 show that a canal would present almost insurmountable en- 
 gineering problems because of the difficulty of getting a feeder 
 at the summit and the excavation through rock for much of 
 the route. 
 
 Various proposals were made at this time to turn the canal 
 lands over to a private company which would construct a rail- 
 road. The Illinois Patriot presented a plan whereby a railroad 
 would be constructed by a company with the state a stock- 
 holder.^^ At a public meeting held at Vandalia on January 24, 
 1832, resolutions were passed expressing the view that the 
 work ought to be done by an incorporated company. ^^ Gov- 
 ernor Reynolds in his message to the legislature on December 
 4, 1832, expressed the opinion that a railroad constructed by 
 a chartered company was the only plan for accomplishing a 
 communication between Lake Michigan and the Illinois river 
 which gave any promise of success.^^ 
 
 In the general assembly session of 1 832-1 833 the railroad 
 project appeared to be gaining favor in preference to a canal. 
 On December 20, a memorial was sent to Congress requesting 
 an act enabling the state to apply the donation of land made 
 in 1827 to a turnpike or railroad instead of a canal. ^^^ It was 
 explained that since the passage of the act of March 2, 1827, 
 the state had caused the route of the canal to be surveyed and 
 the cost of the work to be estimated, from which it appeared 
 that the expense would greatly exceed the amount originally 
 contemplated; that a railroad or turnpike would be less ex- 
 pensive and could be constructed in much less time. Congress 
 very obligingly responded with an act on March 2, 1833, by 
 which the state was authorized to use the lands granted for 
 the canal in building either a railroad or canal as the legisla- 
 
 ^- Sangamo Journal, July 12, 1832. 
 
 33 Reprinted in the Sangamo Journal, February 9, 1832. 
 
 ^'^ Ibid., March 8, 1832. 
 
 35 House Journal, 1832-1833, 21. 
 
 ^^ Ibid., 1832-1833, 139.
 
 34 ILLINOIS INTERNAL IMPROVEMENTS 
 
 ture might elect, ^^ The time for commencing and completing 
 the work was extended for five years. 
 
 The legislature in the meantime repealed all laws providing 
 for the construction of a canal. The board of canal commis- 
 sioners was abolished, and its incumbents were required to pay 
 over all money in their possession belonging to the canal fund 
 to the treasurer of the state, and to turn over to the auditor 
 of public accounts all papers, vouchers, and books of their 
 transactions.^® 
 
 The attorney-general, auditor, and treasurer were required 
 to examine and adjust the books of the canal commissioners. 
 The report to the legislature on August 30, 1834, by James 
 Semple, attorney-general, James T. B. Stapp, auditor, and 
 John Dement, treasurer, disclosed a balance of $1,988.77 
 against the treasurer of the canal commissioners.^'' 
 
 A bill to incorporate an Illinois and Michigan railroad com- 
 pany passed the house, but was tabled by the senate.^" 
 
 During 1833 little Interest was displayed in either a canal 
 or railroad except in the northern part of the state. At a pub- 
 lic meeting of Cook county residents held at Chicago on 
 August 7, a committee of five was appointed to draft a resolu- 
 tion to be addressed to the governor, calling upon him to con- 
 vene the legislature during the winter for the purpose of 
 adopting measures to begin an Illinois and Michigan rail- 
 
 ^"^ Congressional Debates, 1832-1833, appendix, 26; United States Statutes at 
 Large, IV, 662. 
 
 ^^ Laii's of Illinois, 1833, 113. The failure of the commissioners to raise funds 
 from the sale of canal lands is well demonstrated in the report made by James 
 B. Campbell, treasurer of the board of canal commissioners: 
 
 Monies received on sales of canal lands in 1830 $13,704.64 ^ 
 
 Monies received on sales of canal lands in 1831 500.23 
 
 Monies received on sales of canal lands in 1832 4,594.00 
 
 Total amount received on sales of canal lands 18,798.87 ^ 
 
 Payments made by the treasurer 14,704.07 
 
 Balance left after payments by the treasurer 4,094.80 ^ 
 
 Unpaid orders of the board on treasury to 
 
 February 12, 1833 1,269.00 
 
 Balance after payment of outstanding orders $ 2,825.80 ^ 
 
 Sangamo Journal, March 2, 1833. 
 ^^ Senate Journal, 1834-1835, 96. 
 *'^ House Journal, 1832-1833, 633, 726.
 
 THE ILLINOIS AND MICHIGAN CANAL 35 
 
 road.^^ The Sangamo Journal pointed out that there was not 
 enough money in the treasury to pay the expense of an extra 
 session.^- The Galenian, however, was optimistic about obtain- 
 ing funds for internal improvements from England. In an 
 editorial on November 8, 1833, the paper asserted that: 
 
 It appears from an extract, this day published from a London paper 
 that large sums of money can be had in England at 4%, by any of 
 the United States, who may wish to expend the same on internal 
 improvements. Why then, should the Illinois and Michigan railroad 
 or canal, be longer delayed ? The legislature should be forthwith con- 
 vened for the purpose of having that necessary work immediately 
 commenced. The present want of funds is no reason for longer delay, 
 when they can be so easily obtained and if a much higher percent were 
 required we still say let the work proceed. The present population of 
 our state have undergone all the labors, and endured all the privations 
 incident to the settlement and improvement of a new country for 
 which they can never be repaid. All they have done and suffered will 
 redound to the benefit of posterity. The succeeding generation, there- 
 fore, enjoying all the advantages of the labors of their fathers, may be 
 justly made responsible for any debts incurred for the improvements, 
 so necessary to the present and future prosperity of our state. 
 
 The Chicago Democrat, established in November, 1833, 
 took up the canal project as one of its chief objectives. In an 
 editorial on December 24, the new paper pointed out to the 
 farmers of southern and western Illinois that they should 
 want the canal as an outlet to the eastern market for their 
 produce. 
 
 Closely related to the canal project was the problem of 
 constructing a harbor at Chicago. As early as 1829, Edmond 
 Roberts of the canal commission had discussed the need of 
 harbor facilities at the Lake Michigan end of the projected 
 canal. In a letter to Governor Edwards on December 4, he 
 pointed out that an appropriation from Congress for the con- 
 struction of a harbor at the mouth of the Chicago river would 
 have a beneficial effect on the sale of the canal lands."*^ The 
 
 ^^ Sangamo Journal, September 28, 1833; Illinois Advocate, September 28, 
 
 1833- 
 
 ^'-Sangamo Journal, August 17, 1833. 
 
 •*3 Edmond Roberts to Ninian Edwards, December 4, 1829, Ediiards Papers, 
 465.
 
 36 ILLINOIS INTERNAL IMPROVEMENTS 
 
 endeavors of the Illinois delegation in Congress resulted in 
 an appropriation for a Chicago harbor, construction of which 
 was undertaken in 1834."** The mouth of the Chicago river 
 was dredged to a width of eighty feet and to a depth of seven 
 or eight feet, and a pier was constructed extending into the 
 lake on the north side of the river. The improved harbor 
 facilities resulted in a rapid increase in the number of vessels 
 making Chicago a port of call.^^ 
 
 The canal project again received vigorous support during 
 1834. On June 28, George Forquer sent a communication to 
 the Sangamo Journal outlining a proposal for the incorpora- 
 tion of a company to construct the canal on the following 
 terms: the company to own the canal for fifty years, the tolls 
 to be fixed by law, the state to surrender to the company all 
 her canal lands, the company to finish the work within six 
 years, and the state to reserve to herself the right to purchase 
 the canal of the company at any time after ten years from its 
 completion at cost and six per cent interest less the value of 
 the canal lands. The Chicago Democrat clung persistently to 
 the idea of a canal constructed and owned by the state.'**' It 
 charged that the proposal for a railroad constructed by a pri- 
 vate company was the scheme of New York speculators who 
 wanted the canal lands donated to a company which they would 
 control. The cost of a canal could not possibly be more than 
 $2,000,000, the Democrat claimed. It contended that James 
 Bucklin's estimate on the cost of a railroad was far too low. 
 Most people of Chicago appeared to prefer a canal to a rail- 
 road. Residents of the city assembled at a public meeting on 
 October 30, 1834, decided in favor of a canal after a discus- 
 sion on the comparative advantages of railroads and canals."*^ 
 A memorial was adopted recommending that the state borrow 
 the money and construct the canal. 
 
 Joseph Duncan, elected governor in 1834, was one of the 
 
 "^* Chicago Democrat, February i8, August 13, 1834; United States Statutes at 
 Large, IV, 703. 
 
 ^^ Chicago American, September 26, November 21, December 5, 1835. 
 
 *^' Chicago Democrat, April 30, November 19, December 17, 1834; Sangamo 
 Journal, November 29, 1834. 
 
 '^'' Ibid., November 22, 1834.
 
 THE ILLINOIS AND MICHIGAN CANAL 37 
 
 warmest advocates of a canal constructed by the state. In his 
 inaugural address he presented a lengthy argument on the ad- 
 vantages of a canal over a railroad.** He pointed out that a 
 canal would give great commercial advantages to the territory 
 lying within the basins of Lake Michigan and the Illinois and 
 Mississippi rivers, and that farmers could carry their own 
 products to market and would thus be independent of the 
 monopoly of railroad transportation. He suggested that the 
 canal be made sufficiently wide for steamboat navigation, with 
 the exception of the summit level where the cut could be made 
 wider at a later date. His confidence in the success of the 
 project was so great that he anticipated more revenue from the 
 tolls than would be needed for the canal, and suggested that 
 the surplus might be appropriated for the purpose of educa- 
 tion. 
 
 In the session of the legislature during 1834 and 1835 most 
 members were agreed that something should be done, but there 
 was great diversity of opinion as to how it was to be accom- 
 plished. First, there was the question of whether a railroad 
 or canal should be built, secondly the question of whether the 
 construction should be done by a company or by the state, and, 
 finally, the question of whether the faith of the state or merely 
 the canal lands were to be pledged to the enterprise if the state 
 were to undertake construction. The committee on internal 
 improvements of the house reported that a canal would be pref- 
 erable to a railroad, and expressed the opinion that such work 
 ought to be owned and controlled by the state.'*'' The same 
 committee of the senate also declared in favor of a canal, but 
 it recommended that the construction be by a private com- 
 pany. ^° When a bill was introduced providing for the con- 
 struction of a canal by the state with a loan on which the credit 
 of the state was pledged a heated debate ensued. The oppo- 
 nents of state credit argued that if the canal lands were as 
 valuable as was claimed they should be sufficient to attract the 
 required capital. The supporters of the measure replied that 
 
 '^^ House Journal, 1834-1835, 28-31. 
 
 "^^ Ibid., 1834-1835, 229. 
 
 ^^ Senate Journal, 1834-1835, 228-35.
 
 38 ILLINOIS INTERNAL IMPROVEMENTS 
 
 eastern capitalists were not aware of the true value of the 
 lands. The bill was amended before it passed on February 9, 
 I 835, so that the credit of the state was not pledged/^ Thomas 
 Ford in his History of Illinois states that the amendment was 
 passed because Governor Duncan delivered a special message 
 to the legislature in which he declared that the loan could be 
 obtained upon the pledge of canal lands alone." The opposi- 
 tion against the canal act came chiefly from the members of 
 the legislature representing the southern portion of the state. 
 There may have been some truth in the charge of the Chicago 
 Democrat that the southern part of the state was against any 
 enterprise which would help the progress of the north, since 
 the final vote on the canal bill shows a strictly north and south 
 division. ^^ 
 
 The canal act authorized the governor to negotiate a loan 
 not to exceed $500,000, "solely on the pledge of the canal 
 lands and tolls"; and the stock to be called the "Illinois and 
 Michigan Canal Stock," and in no case to be sold for less than 
 par.^* A canal board of five commissioners, to be appointed by 
 the governor with the advice of the senate, was created to con- 
 struct a canal forty-five feet wide at the surface, thirty feet 
 wide at the base, and of sufficient depth to insure a navigation 
 of at least four feet. 
 
 Ex-Governor Edward Coles was appointed president of the 
 board of canal commissioners, and delegated to negotiate the 
 loan.^^ He found that eastern capitalists were unwilling to sub- 
 scribe to the loan because the state had failed to pledge its 
 faith for the payment of principal and interest.^'' Since in- 
 terest rates in this country at that time were higher than five 
 per cent, it would be necessary ultimately, to dispose of the 
 
 ^^ House Journal, 1834-1835, 459, 470, 501, 503, 519; Senate Journal, 1834- 
 
 1835, 249, 483, 484. 
 
 ^-Thomas Ford, History of Illinois (Chicago, 1854), 180; Senate Journal, 
 1834-1835, 223. 
 
 53 Chicago Democrat, December 24, 1834. The final vote in the house was 
 40 to 12, with only southern members voting against the bill. House Journal, 
 1834-1835, 503. 
 
 '•>^ Laivs of Illinois, 1835, 222-29. 
 
 ^5 Letter of Governor Duncan to Coles, March 20, 1836, House Journal, 1835- 
 
 1836, 12, 13. 
 
 ^^ Chicago Democrat, May 27, 1835; Illinois Advocate, June 10, 1835.
 
 THE ILLINOIS AND MICHIGAN CANAL 39 
 
 Stock in Europe where money was available at that rate. 
 European bankers, however, would not make a loan with un- 
 der-developed lands in the interior of the United States as the 
 only security/' The financiers could not be expected to take 
 Illinois lands without the backing of state credit since other 
 states had pledged their faith in support of loans for similar 
 purposes/® 
 
 On April 28, 1835, Coles wrote Governor Duncan that he 
 had become convinced that the loan could be raised only on a 
 pledge of the faith of the state for the payment of the principal 
 and interest/^ When this information reached the state, friends 
 of the canal began to agitate for a special session of the gen- 
 eral assembly that a law might be passed to make the canal act 
 conform with the wishes of the financiers. For this purpose 
 and to reapportion the state. Governor Duncan convened a 
 special session of the legislature in December, 1835. The 
 governor, in his message, displayed an unbounded optimism 
 in the canal enterprise. "" He recommended a loan on the faith 
 of the state and the sale of canal lands from time to time to 
 pay the interest. He called attention to the prices received by 
 the federal government at the sale of its alternate sections of 
 land along the canal route in the previous June, and estimated 
 the value of the lands and town lots owned by the state at from 
 one to three million dollars. Thus, he concluded that the debt 
 could in no case become a charge on the state treasury. He 
 went on to point out that he had but recently left Congress, 
 and thought he knew the disposition of that body well enough 
 to count on an additional grant of land if it should be found 
 that the donation already made was not sufficient to pay all 
 the expenses incurred in the construction of the canal. 
 
 The legislature displayed the same enthusiasm as the gov- 
 ernor. The senate committee on internal improvements pre- 
 sented a report which recommended that a loan be negotiated 
 on the credit of the state. ®^ The committee estimated the total 
 
 ^' House Journal, 1835-1836, 14-18. 
 
 5- Letter of John Delafield to Coles, April 20, 1835, Ibid., 1835-1836, 19-21. 
 
 ^^ Ibid., 1835-1836, 14-18. 
 
 ^^ Senate Journal, 1835-1836, 7. 
 
 ^'^ Ibid., 1835-1836, 97-103.
 
 40 ILLINOIS INTERNAL IMPROVEMENTS 
 
 value of all canal lands and lots at $1,909,415.00, and be- 
 lieved that this sum with the Income of the water power which 
 would be developed would be entirely sufficient for the sug- 
 gested plan of financing the canal. The debates on the bill 
 which was introduced turned on the question as to whether the 
 canal commissioners should be elected by the joint ballot of 
 the two houses of the legislature or whether they should be 
 appointed by the governor with the advice of the senate. If 
 the Whig accounts are to be believed the Democrats wanted 
 election by the legislature so that they could place their own 
 partisans in office since they were in control of both houses.*'- 
 
 The act as finally passed on January 9, 1836, made pro- 
 visions for the negotiation by the governor of a loan of 
 $500,000, reimbursable In i860, with interest at six per cent 
 payable annually, and "the faith of the state was irrevocably 
 pledged for the payment of the stock thus created, and the 
 interest accruing thereon." ^^ The money borrowed, the pre- 
 miums arising from the sale of stock, the proceeds of the canal 
 lands and lots, and all revenue arising from the canal, were to 
 constitute a fund to be used for canal purposes, and for no 
 other. A board of three canal commissioners, to be appointed 
 by the governor with the advice of the senate, was created. 
 The commissioners, removable for cause, were to hold office 
 until January i, 1837, after which they were to be appointed 
 biennially as the legislature should direct. One of the commis- 
 sioners, who was to be designated as the acting commissioner 
 and general superintendent, was to receive a salary of $1200 
 annually. The other two commissioners, who were to act as 
 president and treasurer, respectively, were to be paid three 
 dollars per day when actually employed. 
 
 The canal was to be not less than forty-five feet wide at the 
 surface, nor less than thirty feet at the base, and was to have 
 a navigable depth of at least four feet of water. It was to be 
 supplied with water from Lake Michigan and such other 
 sources as the commissioners might think proper. Immediate 
 
 ^- Sangamo Journal, December 19, 1835. 
 
 ^^ Senate Journal, 1835-1836, 106, 181, 221; Laivs of Illinois, 1836, 145-54.
 
 THE ILLINOIS AND MICHIGAN CANAL 4I 
 
 Steps were to be taken for the construction of the canal. The 
 commissioners were to hold public sales of town lots in Chi- 
 cago and Ottawa. Townsites were to be selected along the 
 route of the canal and laid off into lots to be sold. 
 
 Governor Duncan proceeded to appoint a canal board con- 
 sisting of General William F. Thornton of Shelby county as 
 president, Colonel Gurdon S. Hubbard of Cook county as 
 treasurer, and William B. Archer of Clark county as the acting 
 commissioner. The senate approved the appointments on Jan- 
 uary 13, 1836.^* The board organized at Vandalia on January 
 15, and at the first meeting appointed Joel Manning of Jack- 
 son county as its secretary. At a subsequent meeting Edward 
 Smith of Wabash county and Edward B. Talcott of Chicago 
 were appointed assistant engineers, and the acting commis- 
 sioner was authorized to engage the services of William Good- 
 ing as chief engineer, which was done shortly afterwards.*'^ 
 
 The commissioners soon became convinced that the mag- 
 nitude of the undertaking had been generally miscompre- 
 hended. The largest estimate that had been previously made 
 was that by James Bucklin for $4,043,066.50 as the cost of a 
 canal fed by Lake Michigan. The commissioners soon became 
 satisfied that four million dollars would be wholly inadequate, 
 and before they had determined on any definite plan, they saw 
 that if the spirit of the law stipulating that "the canal shall be 
 supplied with water from Lake Michigan, and such other 
 sources as the commissioners may think proper," was to be 
 adhered to, double that sum would be required. After the con- 
 sideration of a number of plans, the commissioners adopted 
 the advice of William Gooding to construct a lake-fed canal 
 sixty feet wide at the water level, thirty-six feet wide at 
 the bottom, and deep enough to maintain a minimum of 
 six feet of water. The cost of such a canal was estimated at 
 $8,654,377.51 by Gooding.^'' The commissioners adopted the 
 
 ^^ Senate Journal, 1835-1836, 294, 295. 
 
 ^5 Letter of W. F. Thornton to Joel Manning, January 15, 1836, Illinois and 
 Michigan Canal Letter-Book, 1836-1845, i; letter of W. B. Archer to William 
 Gooding, January 19, 1836, ibid., 5; letter of Joel Manning to Edward Smith, 
 April 6, 1836, ibid., 7; letter of Joel Manning to Edward B. Talcott, April 6, 
 1836, ibid., 8. 
 
 ^^ Report of the Canal Commissioners, 1900, 118-29.
 
 42 ILLINOIS INTERNAL IMPROVEMENTS 
 
 deep-cut plan because they felt that the additional expense 
 involved in building the canal larger in the beginning was 
 justified because a forty foot canal would in all probability 
 have to be enlarged within a number of years and would be 
 far more costly than the original work. The work on the 
 canal was laid out into divisions. The Summit division was 
 thirty-four miles and 35.78 chains long, the Middle division 
 was thirty-seven miles and 55.80 chains long, and the Western 
 division was 29 miles and 55.20 chains long, making a total of 
 loi miles and 66.78 chains for the total length of the canal.^^ 
 
 The commissioners thought it a good policy to begin con- 
 struction at Chicago because they were required by the canal 
 act to hold a sale of lots at that place on June 20, 1836, and 
 it was naturally assumed that the lots would bring higher 
 prices if active operations were going on there at the time of 
 the sale. Accordingly on June 6, contracts were awarded for 
 eighteen sections of the Summit division. The commissioners 
 had intended to contract for more, but since the proposals on 
 many sections were far above the estimates of the engineers, 
 they had to be rejected. The abnormally high prices of pro- 
 visions and supplies and high wages prevailing at the time 
 resulted in much hardship on the contractors. A number of 
 the contracts had to be abandoned, although such an act en- 
 tailed the forfeiture of a penal bond amounting to five per cent 
 of the original contract.*'^ 
 
 The first ground for the canal was broken on July 4, 1836, 
 amid imposing ceremonies.*'^ The occasion was publicly cele- 
 brated at Chicago by a large assembly of people before whom 
 speakers pictured in glowing colors the future of Chicago and 
 the state of Illinois. Not much progress was made upon the 
 construction of the canal during 1836. The operations were 
 chiefly confined to preparatory work, such as building houses 
 for the laborers, erecting machinery, and procuring imple- 
 ments and other supplies.'" A large part of the canal route 
 
 ®^ Each division was subdiv'ided into sections of varying length. 
 
 ^^ Ibid., 1900, 115. 
 
 ^^ Chicago Democrat, July 6, 1836. 
 
 '''^Report of the Canal Commissioners, 1900, 143.
 
 THE ILLINOIS AND MICHIGAN CANAL 43 
 
 lay through marshy ground, inundated in the spring and fall, 
 rendering it difficult of access. The amount of money which 
 had to be expended on roads leading to the work was very 
 high. The region in the vicinity of the canal route was sparsely 
 settled, and lacked many of the essential materials required 
 by the contractors, such as tools and machinery, gun-powder 
 for blasting rock, chains and cordage for pumps, cranes and 
 railways, and staple provisions for the sustenance of the work- 
 men. A large part of the supplies had to be imported from the 
 eastern seaboard. 
 
 Before the summer of 1836 was far advanced, the commis- 
 sioners decided that some more work must be placed under 
 contract or very little progress would be made upon the canal 
 for the year. On August 14, work on the Western division 
 was advertised for contract, and on October 20, proposals 
 were accepted at a small advance upon the estimates for twelve 
 sections, including the steamboat basin. ^^ The scarcity of 
 laborers and floods in the Des Plaines valley prevented much 
 progress being made on either portion of the work under con- 
 tract during late summer and fall months.^" In an effort to 
 attract laborers to the canal work, the commissioners had ad- 
 vertisements inserted in eastern papers offering wages of from 
 $20 to $26 per month." 
 
 No difficulty was experienced in obtaining funds for the 
 canal during its first year. In January, Governor Duncan 
 secured a loan of ten thousand dollars at six per cent interest 
 from the State Bank of Illinois.^* The amount was amply suffi- 
 cient to meet all necessary expenses prior to the June sale of 
 the Chicago lots, when the bank was reimbursed in principal 
 and interest. Of the $500,000 loan authorized by the canal 
 act, Governor Duncan negotiated $100,000 in New York at 
 a premium of five per cent, which he thought too low and de- 
 
 ''^ Illinois State Register, September 2, 1836; Report of the Canal Comis- 
 sioners, 1900, 143. 
 
 ^- Quarterly report of the canal board to the governor, May 8, 1837, Senate 
 Journal, 1837, 28. 
 
 ■^3 Niles Register, L, 388. 
 
 ^* Letter of Governor Duncan to Thomas Mather, president of the State Bank, 
 January 9, 1836, letter of Thomas Mather to Governor Duncan, January 9, 1836, 
 Illinois and Michigan Canal Letter-Book, 1836-1845, 1-3.
 
 44 ILLINOIS INTERNAL IMPROVEMENTS 
 
 clined a larger amount at that rate."'' The sales of lots had 
 very dififerent results than those of 1830. The real estate 
 market in Chicago was in the midst of an extraordinary boom 
 which the prospect of an early construction of the canal served 
 to intensify. The sale held at Chicago on June 20, resulted 
 in the disposal of 415 lots, many of which brought a substan- 
 tial amount above the valuation. Of these, forty were for- 
 feited because the purchaser failed to make the first payment 
 under the terms of sale which provided for one-fourth cash 
 and the residue in three annual installments bearing six per 
 cent interest, payable annually, in advance. After deducting 
 for forfeitures, the sale amounted to $1,355)755, one-fourth 
 of which, together with a year's interest on the other three- 
 fourths, was paid to the treasurer and by him deposited in the 
 branch of the State Bank at Chicago. The sale at Ottawa took 
 place on September 26, when seventy-eight lots were offered 
 and all sold for a total of $21,358, more than $2000 in excess 
 of the valuation. The cash received, amounting to $6,300.65, 
 was deposited in the bank by the treasurer of the canal board. 
 The State Bank made possible the heavy sales of lots by grant- 
 ing the purchasers liberal loans for making the first payment." 
 Thus even the first payment in many cases was made with bor- 
 rowed money. Many purchasers found themselves in diffi- 
 culty when the next installments came due because the tighten- 
 ing of the money market and the generally unsettled financial 
 conditions in 1837 prevented further borrowing from the 
 State Bank or from other sources." 
 
 The bright prospects for a rapid progress on the canal con- 
 
 ^^ He sold the remaining $400,000 in 1837. Message of Governor Duncan, 
 December 9, 1836, House Journal, 1836-1837, 15. 
 
 "''^Illinois State Register, May 27, August 12, 1836; Sangamo Journal, July 
 9, 1836; Report of the Canal Commissioners, 1900, 116. 
 
 "" During a special session of the legislature in 1837 an act was passed for 
 the relief of purchasers of canal lands and lots who were in default to the state 
 so that their purchases would not be forfeited as provided by the canal act of 
 January 9, 1837. The act approved on July 12, 1837, provided that purchasers in 
 default could make payment to the state as follows: On October i, 1837, pay all 
 interest due upon their debts according to the terms of sale; on October i, 1838, 
 and October i, 1839, pay the interest due and 10 per cent of the principal which 
 may be due; and on October i, in each and every year thereafter, pay the 
 interest due and 20 per cent upon the principal until the whole amount shall be 
 paid. Laijjs of Illinois, 1837, special session, 9-10.
 
 THE ILLINOIS AND MICHIGAN CANAL 45 
 
 struction were considerably dimmed during the 1 836-1 837 
 session of the legislature when an attack was made upon the 
 deep-cut plan adopted by the commissioners as being entirely 
 impracticable because it was beyond the financial ability of the 
 state to accomplish. The house committee on internal improve- 
 ments in a report made on January 21, 1837, claimed that the 
 plan for the canal adopted by the commissioners should be 
 changed because, the sum which would have to be expended 
 in building the canal was too large, the time required for 
 construction would be unduly long, great difficulties of con- 
 struction would be encountered, and a better plan could be 
 adopted." The committee placed the cost of the canal at 
 $13,253,875.15, or over four and a half million more than the 
 estimate of Engineer William Gooding. It proposed that the 
 Calumet river be used as a feeder rather than the deep-cut 
 on the Summit level, and that the canal should terminate at 
 Lake Joliet, slack water navigation to be provided by means 
 of locks and dams in the Des Plaines river. The recommenda- 
 tions of the committee resulted in an act being passed on 
 March 2, 1837, to amend the "act for the construction of the 
 Illinois and Michigan Canal" of January 9, 1836." The 
 amended act provided that the commissioners should require 
 a survey of the canal route by a competent engineer to ascer- 
 tain the practicability of changing from a deep-cut to a canal 
 fed by feeders on the Summit division. ^° Benjamin Wright of 
 New York, was accordingly appointed as the special engineer 
 to resurvey the canal route, ®^ and in a report submitted to the 
 board of canal commissioners on October 28, 1837, Wright 
 warmly supported the deep-cut plan, and recommended the 
 completion of the work on the plan adopted by the commis- 
 sioners.*" 
 
 The act of March 2, 1837, supplementing the canal law of 
 January 9, 1836, provided for other changes in addition to 
 
 ~^ House Journal, 1836-1837, 329-59. 
 
 "9 The bill passed the house by a vote of 78 to 2. Ibid., 1836-1837, 663. 
 ^'^ LaiL's of Illinois, 1837, 40. 
 
 ^^ Letter of William F. Thornton to Benjamin Wright, July 4, 1837, Illinois 
 and Michigan Canal Letter-Book, 1836-1845, 40. 
 
 ^-Report of the Canal Commissioners, 1900, 173-92.
 
 46 ILLINOIS INTERNAL IMPROVEMENTS 
 
 the resurvey of the canal route. ^^ The governor was to nego- 
 tiate a further loan of $500,000, when advised of its necessity 
 by the commissioners. Additional sales of Chicago lots were 
 also to be undertaken to the amount of $1,000,000, In order 
 to promote competition between the contractors, no bond was 
 to be required, but from fifteen to thirty per cent on the esti- 
 mates was to be reserved until the final completion of their 
 jobs. The judge of the circuit court was authorized to appoint 
 three commissioners who were to act as a board for the ap- 
 praisement and determination of all questions of damages 
 arising from the construction of the canal. Finally, the canal 
 commissioners were to be elected by a vote of both houses of 
 the legislature in joint session, and subject to its control, in- 
 stead of receiving their appointment from the governor and 
 being subject to his control, as their predecessors had been. 
 The new board of canal commissioners, elected by the legisla- 
 ture on March 3, 1837, consisted of William F. Thornton, 
 president, Jacob Fry, acting commissioner, and John A. Mc- 
 Clernand, treasurer.^* 
 
 By 1837 the Illinois and Michigan Canal was but one of a 
 great number of works which the state had undertaken for the 
 development of its transportation facilities. How the legisla- 
 ture in 1 836-1 837 adopted a general system of internal im- 
 provements to be constructed by the state when private capital 
 had failed to appear in sufficient abundance to develop the 
 numerous projected works, is a long story, involving such fac- 
 tors as the delusive spirit of speculation rampant in 1836 en- 
 gendered by a redundant paper money circulation, the activities 
 of the speculators and local interests, the newspaper agitation, 
 and the fear of being outstripped In economic progress by 
 other states which had adopted public works programs. 
 
 ^^ Laivs of Illinois, 1837, 39-44- 
 
 ^■^ Senate Journal, 1836-1837, 612-15.
 
 CHAPTER III 
 
 EVOLUTION OF THE GENERAL SYSTEM 
 
 OF 1837 
 
 THE year 1836 marks the zenith of a speculative boom 
 which had been gathering momentum throughout the 
 country for several years. The substitution of a loose system 
 of unlimited credit for old conservative banking and business 
 methods fostered a spirit of speculation which seized people 
 in all walks of life. The inflated paper currency of the state 
 banks brought a rise in prices which gave a false conception of 
 values. People everywhere were diverted from sane business 
 operations by the expectation of making a fortune out of 
 speculative deals. The demand for land and town lots became 
 a near-madness. Normally conservative businessmen, farmers, 
 lawyers, mechanics, and day laborers believed that every plot 
 of ground which they might buy could be sold in a few months 
 or a year at fabulous prices. They had become dissatisfied with 
 the slow, scant profits of legitimate, patient industry, and were 
 infected with the lure of quickly acquired wealth. 
 
 In Illinois, the speculative boom struck first at Chicago, and 
 was the means of building up that place from a mere trading 
 post into a city of several thousand inhabitants in three or four 
 years. A sleepy village was suddenly transformed into a bustling 
 city. Scores of new buildings were put up every month. ^ The 
 stories of sudden fortunes circulating in the east brought an 
 influx of strangers greatly in excess of the city's living accom- 
 modations. A scarcity of provisions sent prices skyrocketing. 
 The mad scramble for town lots caused them to double and 
 even triple in price during the course of a few months. For 
 example, lots which sold for $9,000 early in 1835 were held 
 for $25,000 by the end of the year.- Few people bought for 
 
 1 Chicago Democrat, June 18, 1834. 
 
 -Chicago American, August 15, 1835; January 2, 1836.
 
 48 ILLINOIS INTERNAL IMPROVEMENTS 
 
 cash or with the idea of placing a building on the lot; their 
 one aim was but to resell at a greatly advanced price. 
 
 The speculative spirit spread to all parts of the state. The 
 rapid development of Chicago inspired emulation by other 
 towns, and resulted in the plotting of new towns all over the 
 state. Public land sales in Illinois increased at an astounding 
 rate. From 354,010 acres entered in 1834, the amount in- 
 creased to 2,096,623 acres in 1835, and to 3,199,703 acres in 
 I 836.^ Only a small part of the purchases were made by actual 
 settlers. Speculators bought the land with the idea of reselling 
 it to emigrant farmers or of plotting it into towns and dis- 
 posing of the lots at public sale. Frequently, maps of the new 
 towns were taken to eastern cities and auction sales of lots held 
 far from the place of location. In many cases a few buildings 
 were erected in such boom towns only to be abandoned when 
 the depression came. An account of all the dead towns of Illi- 
 nois which lived for a short time during the thirties would 
 make a voluminous and very interesting chapter in the state's 
 history. 
 
 The wave of speculation created an optimistic spirit in the 
 people of Illinois which led them to undertake the construction 
 of a system of internal improvements in 1837 far in excess of 
 the state's resources. The farmers and businessmen as well as 
 the speculators felt that the great need of the state to assure 
 its future prosperity was an improved means of transportation, 
 to facilitate immigration, and to bring the interior within the 
 range of markets. It was thought that a general system of 
 internal improvements constructed on the credit and faith of 
 the state would result in such a great added wealth as to make 
 the payment of the debt very easy in the future. The sentiment 
 of most people of the state was well summed up by the 
 Galenian in the statement that "it will be more easy to raise one 
 million of money 20 years hence, than the tenth part of that 
 sum at the present time." * It seemed that the improved facil- 
 ities of travel and transportation would so increase the popula- 
 
 3 Theodore Calvin Pease, T/ie Frontier State, 18/8-1848 {Centennial History of 
 Illinois, II, Springfield, 1918), 177. 
 ^ Galenian, November 8, 1833.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 49 
 
 tion and wealth of the state, and consequently its revenues, 
 that payment of annual interest and speedy liquidation of the 
 principal of the debt, would not be burdensome. 
 
 The example of the internal improvements undertaken by 
 other states gave the people of Illinois an incentive to adopt 
 similar measures. They could see no reason why Illinois should 
 be permitted to lag behind other states in the development of 
 transportation facilities. The level prairies of the state, they 
 contended, were especially adapted for railroads and artificial 
 waterways, and the construction of such works would be far 
 less expensive here than in Massachusetts, New York, Penn- 
 sylvania, or Indiana. The Chicago Democrat pointed out that 
 other states would far outstrip Illinois in wealth and pros- 
 perity, if she did not shake off her apathy.^ The example of 
 the Erie Canal, which was opened in 1825, seemed to furnish 
 proof of the success that awaited state construction of internal 
 improvements. So successful was the Erie Canal that the com- 
 missioners of the canal fund were able to announce in 1833 
 that they were then ready to pay off and cancel the stock which 
 was not to be due until 1837. As an inducement to the holders 
 of the stock to surrender it and receive payment four years 
 before the period fixed for its redemption, the commissioners 
 offered to pay a premium of five per cent upon the five per cent 
 stock and a premium of eight per cent upon the six per cent 
 stock of 1837.^ 
 
 In 1825 and 1826, Pennsylvania began its extensive state 
 system of roads and canals to reach the Ohio, the central part 
 of New York, and the Great Lakes.' The main line of this 
 system united Philadelphia with Pittsburgh by a horse railway 
 to Columbia, then by canal along the Susquehanna river and 
 its tributary, the Juniata, to Hollidaysburg, where stationary 
 engines pulled cars over a series of inclined planes across the 
 thirty-six miles of mountains, to the western section of the 
 canal at Johnstown, and so along the Allegheny to Pittsburgh. 
 
 ^ Chicago Democrat, December lo, 1833. 
 
 ^ Sangamo Journal, October 5, 1833. 
 
 ~ Illinois Advocate, October 24, 1831; G. S. Callender, "The Early Trans- 
 portation and Banking Enterprises in Relation to the Growth of the Corpora- 
 tions," Quarterly Journal of Economics, XVII, 133.
 
 50 ILLINOIS INTERNAL IMPROVEMENTS 
 
 This system was in operation by 1835. According to reports 
 reaching Illinois the Pennsylvania system was a great success.^ 
 
 Ohio, too, had in 1825 undertaken a state system of canals 
 connecting the Ohio river with Lake Erie.^ The trunk line 
 began at Portsmouth and followed the valleys of the Scioto 
 and the Cuyahoga to Cleveland, while another canal connected 
 Cincinnati with Dayton via the Miami river. By branches 
 connecting with the Pennsylvania canals, this system of water- 
 ways gave Ohio alternative outlets for its surplus products. 
 Transportation costs seemed to have been lowered consider- 
 ably. Wheat which sold for 25 to 37 cents per bushel in central 
 Ohio in 1825 brought double the amount in 1832 when the 
 canal began to be effective, and it sold for a higher price a 
 hundred miles west of Pittsburgh than it did sixty miles to the 
 east of that city, where water transportation was lacking.^*^ 
 
 When several of the neighboring states adopted internal 
 improvement systems in 1836, the people of Illinois became 
 uneasy lest their state suffer in the march toward progress. It 
 was pointed out that immigrants would not come to a state 
 which did not improve its transportation facilities. The Illi- 
 nois State Register gave notice that a law had passed the legis- 
 lature of Ohio, creating a board of public works for the 
 construction of such canals, railroads, and turnpikes as the 
 legislature might from time to time direct. ^^ A law enacted 
 in Maryland also received wide publicity in Illinois. The 
 Maryland law provided for a system of internal improvements 
 financed by an $8,000,000 loan on the credit of the state. ^" 
 Most disturbing to Illinois people was the fact that Indiana, 
 their nearest neighbor, had embarked upon an extensive pro- 
 gram of canal and railroad construction. 
 
 ^ Sangamo Journal, October 24, 1835. 
 
 ^ Sangamo Spectator, October (?), 1827; February 13, 1828; Callender, 
 loc. cit., 155. 
 
 I*' Ernest Ludlow Bogart, Internal Improvements and the State Debt in Ohio 
 (New York, 1924), 83-85. 
 
 ^^ Illinois State Register, April 22, 1836. 
 
 1- The loan was to be spent on the following works: $3,000,000 on the Balti- 
 more and Ohio Railroad, $3,000,000 on the Chesapeake and Ohio Canal, 
 $1,000,000 on the Eastern Shore Railroad, $500,000 on a canal from the District 
 of Columbia to Baltimore, and $500,000 on a like canal to Annapolis, Ibid., 
 April 22, 1836; Chicago Democrat, June 29, 1836.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 5 I 
 
 The Internal improvement system adopted in Illinois in 
 1837 was not so hastily conceived as is generally thought. 
 Practically every improvement incorporated into that system 
 had behind it a history of some length. River improvement 
 was not new to Illinois. ^^ The leading railroads of the system 
 had been discussed for several years, and various attempts had 
 been made for their construction by private companies. The 
 state took up the subject of railroad construction only after 
 private companies failed to raise the required capital. A re- 
 view of the various local projects for internal improvements 
 proposed between 1830 and 1836 will show the background 
 behind the system adopted in 1837. 
 
 The first proposal for a railroad in Illinois was made in 
 1829, when a projected railroad leading from Pittsburgh to 
 the head of steamboat navigation on the Illinois river and on 
 to the Mississippi was under discussion.^* On January 21, 
 1 83 1, Jacob Ogle of St. Clair county introduced a bill in the 
 legislature proposing the survey of a route for a canal or rail- 
 road crossing the American Bottom from the bluffs to the 
 Mississippi river opposite St. Louis. After having been passed 
 by the house, the bill was approved by the senate on January 
 28, 1 83 1. Thus the first law with reference to the subject of 
 railroads was put on the statute books of the state. The act 
 provided for the appointment of commissioners who were to 
 make a survey In order to ascertain the practicability and prob- 
 able expense of constructing a canal or railroad.^^ The com- 
 mission was to make a report to the next legislature. 
 
 In I 83 1 projects for a transverse railroad crossing the state 
 from east to west in the central part began to be agitated. A 
 public meeting of the citizens of Adams county was held at 
 Quincy on November 25, 1831, for the purpose of considering 
 the propriety of memorializing Congress to construct a rail- 
 road from Buffalo, New York, to the Mississippi river. ^*' The 
 meeting adjourned to November 28, when it re-assembled 
 
 13 Supra, 11-16. 
 
 1'* Galena Ad-vertiser, September 14, 1829. 
 
 1^ House Journal, 1830-1831, 293, 325, 339, 381 ; Senate Journal, 1830-1831, 294, 
 305, 327, 338; Laii-s of Illinois, 1831, 44. 
 '^^ Sangamo Journal, December 22, 1831. 
 
 -cQitV OF «-UNOia
 
 52 ILLINOIS INTERNAL IMPROVEMENTS 
 
 and passed a memorial to be presented to Congress. On De- 
 cember 28, 1832, a Jacksonville meeting endorsed the project 
 of a transverse railroad, while considering the construction of 
 a railroad from Jacksonville to the Illinois river. ^^ The meet- 
 ing passed a resolution requesting the state legislature to incor- 
 porate a company to construct the Jacksonville-Illinois river 
 road, and called upon the congressional representatives to use 
 their influence to induce the federal government to build a 
 railroad from some eastern city to the Mississippi. 
 
 As a candidate for the general assembly in 1832, Abraham 
 Lincoln declared in favor of a railroad from the Illinois river 
 to Jacksonville with an extension to Springfield but thought 
 that the estimated cost of $290,000 would preclude the con- 
 struction.^^ He suggested that to improve the Sangamon river, 
 making it navigable for boats of twenty-five to thirty tons 
 would be a better plan, and cited his flatboat trip down the 
 river as evidence in support of his suggestion. 
 
 During the 1 832-1 833 session of the legislature two pro- 
 posals were made to incorporate railroad companies. Samuel 
 S. Pierce of Greene county asked leave to introduce a bill in 
 the house providing for the incorporation of a company to 
 construct a railroad from Carrolton to Alton, and Gurdon S. 
 Hubbard of Vermilion county sought to incorporate a com- 
 pany to build a railroad from Lake Michigan to the Illinois 
 river. ^^ Nothing came of either proposal. 
 
 In 1834 the project of a canal or railroad from the Missis- 
 sippi to the Wabash river gained many adherents; however, 
 it incurred the hostility of the friends of the Illinois and 
 Michigan Canal. The Alton Spectator and the Beards tozun 
 Chronicle were foremost in the ranks supporting a connection 
 between the Mississippi and a point on the Wabash convenient 
 to the Indiana canal. The Spectator contended that by this 
 means a straight line of communication would be opened to 
 Lake Erie, and an outlet created better adapted to the wants 
 of the state than the route contemplated by Lake Michigan.-" 
 
 ^- Ibid., January 5, 1832. 
 
 '^'^ Ibid., March 15, 1832. 
 
 ^^ House Journal, 1832-1833, 371, 411. 
 
 '^^ Sangamo Journal, April 19, 1834; Alton Spectator, April 24, 1834.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 53 
 
 It argued that Lake Erie was free from ice much sooner in 
 the spring and did not close as early in the fall as either Lake 
 Michigan or Huron, that a dangerous and circuitous voyage 
 through those lakes would be avoided, and the distance to 
 Buffalo would be lessened several hundred miles. The Chicago 
 Democrat replied that the products of Illinois could be carried 
 by the Michigan canal at about half the cost that would accrue 
 on the other route, and that the time for a shipment to reach 
 the eastern markets would be the same,^^ which led the Specta- 
 tor to ask why so much sensitiveness was displayed by the 
 people of the north, if they really believed that to be true.-- 
 
 There were those who were in favor of both projects. 
 George Forquer, representing Sangamon county in the senate, 
 pointed out that the state stood pledged to the inhabitants of 
 the northern part of the state to go on with the Illinois and 
 Michigan Canal, but that he could not conceive that those cir- 
 cumstances should prevent the state from engaging in any 
 other public works of equal importance.-^ He suggested that 
 a railroad be constructed from the Wabash river via Danville, 
 Decatur, Springfield, Beardstown, and Rushville, to the Mis- 
 sissippi at Quincy. His plan proposed that the railroad be 
 built by a private company, and that the state legislature 
 memorialize Congress to grant to such a company a pre-emp- 
 tion right to purchase one-half, if it chose, of all vacant lands 
 lying within five miles of either side of the railroad line, at 
 the rate of seventy cents per acre, and to grant to all actual 
 settlers a pre-emption right to purchase the other half of the 
 lands which may be vacant, at the same price of seventy cents 
 per acre. The Alton Spectator claimed Forquer proposed the 
 scheme in order to advance the chances of Springfield in ob- 
 taining the state capital.-* The Sangarno Journal^ a staunch 
 supporter of Forquer's plan, remarked that the thing which 
 would most advance the interests of Alton was a railroad 
 which would make it the depot and market of the Sangamon 
 
 '1 Chicago Democrat, April 30, 1834. 
 
 -^ Sangamo Journal, May 10, 1834. 
 
 -^ Ibid., June 28, 1834; Chicago Democrat, August 6, 1834. 
 
 ^'^ Alton Spectator, August 26, 1834.
 
 54 ILLINOIS INTERNAL IMPROVEMENTS 
 
 country.-'' "A railroad from Springfield to Alton would do lO 
 times more toward building up the latter town, than the seat 
 of government, the national road, the loan office, and the state 
 prison added together. If Alton could be made the depot of 
 the productions of the Sangamon country, she would of neces- 
 sity become an important town, and in our opinion she cannot 
 be without it," the Journal advised the Alton Spectator. 
 
 The project of a railroad connecting the Mississippi with 
 the Wabash received a great deal of attention after Forquer's 
 proposal became known. James Adams in his campaign for 
 governor in 1834 advocated either a railroad or canal. -^ Act- 
 ing-Governor William L. D. Ewing in his message to the 
 legislature of 1 834-1 835 remarked that a railroad commenc- 
 ing at the intersecting point of the Indiana canal on the Wa- 
 bash river, and terminating at an eligible location on the 
 western extremity of the state, would cross a country of great 
 fertility.-^ Meetings were held in various counties during 1835 
 to urge the construction of a cross-state railroad. At Bloom- 
 ington in McLean county a meeting was held on November 24, 
 and a resolution passed requesting the legislature to ask Con- 
 gress for a grant of land for an Illinois and Ohio river rail- 
 road. Two days later a gathering at Decatur urged the con- 
 struction of the Wabash-Mississippi line."^ Delegates from 
 Adams and Schuyler counties met at Quincy on December 7, 
 to take measures for pressing forward the project of a railroad 
 from the Wabash and Erie Canal to Quincy via Springfield and 
 Jacksonville.-^ A suggestion was also made for a railroad 
 from Quincy to the Ohio via Vandalia. 
 
 A scheme of locating the western terminus of the transverse 
 railroad at Alton gained many supporters during 1835. On 
 March 28, nearly 1000 people gathered at Springfield for the 
 purpose of adopting measures relative to the construction of 
 a railroad from Springfield to Alton. ^" George Forquer made 
 
 "^^ Sangamo Journal, November 15, 1834. 
 
 2^ Ihid., July 12, 1834. 
 
 ^'' House Journal, 1834-1835, 18. 
 
 -^ Sangamo Journal, November 21, 1835. 
 
 "^^ Ibid., December 19, 1835. 
 
 ^'^ Ibid., April 4, 11, 25, 1835.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 55 
 
 a long speech In which he portrayed the possible advantages 
 to be gained by the Sangamon country from such an enterprise. 
 He looked upon the project as the first step in the completion 
 of a line from the Mississippi to the Wabash and Erie Canal. 
 Before adjourning, the Springfield meeting appointed dele- 
 gates to attend an assembly of delegations from several coun- 
 ties to be held at Carlinville on the first Monday in May. The 
 Carlinville convention took place as scheduled, with delegates 
 present from Sangamon, Macon, Macoupin, and Madison 
 counties. The chief accomplishment of the convention was the 
 appointment of a committee, headed by J. T. Hudson, to sur- 
 vey the route and estimate the cost of the projected Alton- 
 Springfield railroad. The committee accordingly employed 
 General W. B. Mitchell, of Pennsylvania, to make the sur- 
 
 In the meantime speculation on the route of the projected 
 railroad from Springfield to Alton had already commenced. 
 In the new town of "Woodburn," laid out on the route, town 
 lots were selling for thirty dollars. "And where is Wood- 
 burn?" inquired the Sangamo Joui-nal.^- This and many other 
 places had been plotted since October of the previous year, 
 when the project of an Alton and Springfield railroad was first 
 discussed in the press. 
 
 General W. B. Mitchell made a report on September 10, 
 1835, of his survey of the Alton-Springfield route. ^^ He esti- 
 mated the cost of the railway at $491,847.56, or an average 
 of $6,831.21 per mile. The estimates of the amount of busi- 
 ness that the road would do were extremely optimistic, not to 
 say extravagant. It was thought that the country would fur- 
 nish 37,346 tons of freight annually, assuming that each of 
 the three thousand farms exported every year one hundred 
 bushels of wheat, two hundred of corn, and one hundred of 
 oats, twelve hogs, and five cattle. Imports would amount to 
 12,500 tons annually, it was estimated. A total annual revenue 
 of $224,930 was predicted, with Sangamon county contribut- 
 
 ^'^ Ibid., May 9, 23, June 27, 1835. 
 
 ^- Ibid., April 11, 1835. 
 
 ^^ Illinois Advocate, October 7, 1835; Sangamo Journal, October 3, 1835.
 
 S6 ILLINOIS INTERNAL IMPROVEMENTS 
 
 ing $172,052, Macoupin county, $32,880, and Madison coun- 
 ty, $20,000. 
 
 At the same time projects for railroads were taking form 
 in other parts of the state. A railroad from Chicago to Vin- 
 cennes first began to attract interest in 1834. One proposal 
 provided for a road about three hundred miles in length, 
 including branches from Iroquois to Lafayette, Danville 
 to Covington, Georgetown to Eugene, and Paris to Terre 
 Haute.^* 
 
 The project received serious attention during the 1 834-1 835 
 session of the general assembly. A company was incorporated 
 with three million dollars of capital to construct a railroad via 
 Danville, Paris, and Palestine. ^^ Thirteen directors, chosen 
 annually, were to direct the affairs of the company. Each coun- 
 ty was to be entitled to a director, provided the county or 
 citizens thereof, should own stock to the amount of at least 
 $5,000, and no person was to be eligible to the office of direc- 
 tor unless he held stock to the amount of $200. Any grant of 
 land given by the federal government to aid in the construction 
 of the railroad was to be the property of the company, to be 
 disposed of as it deemed proper. Construction was to be com- 
 menced and at least $25,000 expended within three years, and 
 the work was to be finished within eight years from the passage 
 of the act. During the following summer subscription books for 
 stock were opened, but the response of investors did not allow 
 the commencement of construction at that time.^*^ 
 
 The Chicago and Vincennes Railroad was not the only com- 
 pany granted a charter at this session of the legislature. Upon 
 the petition of the people of Morgan county for a railroad, a 
 company was incorporated to construct a railroad from Jack- 
 sonville to Meredosia on the Illinois river." The company, 
 whose affairs were to be directed by a board of five, was 
 allowed a capital of $100,000, with the liberty of increas- 
 
 ^■* Chicago Democrat, July 9, 1834. 
 
 ^^ House Journal, 1834-1835, 232, 257, 290, 318; Senate Journal, 1834-1835, 
 211, 251, 271; Laivs of Illinois, 1835, 88-94. 
 
 ^^ Chicago American, September 26, 1835. 
 
 ^"^ House Journal, 1834-1835, 270, 334, 376, 464; Senate Journal, 1834-1835, 
 326, 389, 440; Laivs of Illinois, 1835, 197-204.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 57 
 
 ing that amount from time to time. The charter was ex- 
 tremely liberal, giving the company the privilege to fix the 
 rates of toll, to construct a lateral road to Naples, and to 
 receive volunteer grants of land or property from the federal 
 and state governments and from individuals. 
 
 A number of other railroad projects were considered by the 
 general assembly. Resolutions were offered in the house in- 
 structing the committee on internal improvements to investi- 
 gate the practicability of granting charters to companies for 
 the construction of railroads from Mount Carmel to Alton, 
 from Shawneetown to Lower Alton, from Cairo to the Illinois 
 and Michigan Canal, from the Wabash river to the Illinois 
 river, from the Mississippi opposite St. Louis to the St. Clair 
 coal mines, and from the Wabash Canal to Quincy. The inter- 
 nal improvement committee reported that all the projects were 
 thought inexpedient.^^ Other action by the legislature on the 
 subject of railroads included memorials addressed to Congress 
 requesting a donation of land of five sections per mile to con- 
 struct a railroad from Maumee bay on Lake Erie to the rapids 
 of the Illinois river, and an appropriation for the survey of a 
 route and a donation of land for a railroad from Logan's 
 Point on the Wabash to Quincy on the Mississippi.^'' 
 
 The project of a central railroad, which was to become the 
 backbone of the system of 1837, began to take form in the 
 fall of 1835. On October 16, Sidney Breese, resident of Kas- 
 kaskia and judge of the circuit court, wrote a letter to the 
 Illinois Advocate suggesting the construction of a railroad 
 from the junction of the projected canal with the Illinois river 
 to the confluence of the Ohio and Mississippi."*'^ Breese thought 
 that Congress would donate the state a liberal tract of land 
 for the railroad. A series of meetings in support of the project 
 was held during the fall months in central and southern coun- 
 ties of the state."*^ At all these meetings resolutions were 
 
 ^^ House Journal, 1834-1835, 220, 237, 242-44, 298, 361. 
 
 ^^ Senate Journal, 1834-1835, 149, 186, 368, 442; House Journal, 1834-1835, 
 
 423, 4S4-. 
 
 •^'^ Chicago Democrat, October 28, 1835; Sangamo Journal, October 31, 1835. 
 
 *i In Shelby county, October 19 and 20, and November 18; in Fayette county, 
 October 26; in Macon county, November 11; and in Jackson county, December 
 2. Illinois Advocate, October 21, 28, December 17, 1835; Sangamo Journal, 
 October 31, 1835; Chicago Democrat, November 4, 1835.
 
 50 ILLINOIS INTERNAL IMPROVEMENTS 
 
 passed urging the construction of a central railroad. There 
 was a general expression of sentiment that the accomplish- 
 ment of the project would restore to southern Illinois her 
 former pre-eminent position In the economic and political life 
 of the state. 
 
 Such widespread Interest in a central railroad called for 
 some action on the subject by the legislature. On December 
 1 6, 1835, William L. D. Ewing proposed in the senate that a 
 committee of three be appointed to inquire into the expediency 
 of the state undertaking the work, or of creating a company, 
 in whose stock the state would participate to the amount of 
 one-third or two-fifths.^" He further proposed that the com- 
 mittee be Instructed to report a memorial addressed to Con- 
 gress requesting the passage of a law granting the state each 
 alternate section of land which might remain unsold on March 
 I, 1836, and within five miles of the central railroad route, 
 or to grant to the state the right of pre-emption to all the lands 
 within those limits at a sum less than the current minimum 
 price of the public lands. A committee consisting of Benjamin 
 Bond (Monroe county), William Williamson (Macon coun- 
 ty), and Ewing (Fayette county), was accordingly appointed. 
 The following day John S. Hacker, of Union county. Intro- 
 duced a resolution declaring that it would be expedient to con- 
 struct the central railroad, and that the state should effect a 
 loan of a sum sufficient to commence both the railroad and the 
 contemplated Illinois and Michigan Canal.^^ 
 
 A law was finally enacted on January 16, 1836, incorporat- 
 ing a company to undertake the construction of the central 
 railroad."** The act named fifty-eight incorporators, many of 
 whom were among the most prominent men of the state. The 
 company was capitalized at two and a half million dollars with 
 the privilege of a million dollar Increase when necessary. The 
 directors of the company were authorized to fix the rates for 
 tolls, with the reservation that If a net income of over twelve 
 
 ^^ Senate Journal, 1835-1836, 48-49. 
 
 ^3 The resolution was read and laid on the table on the motion of Senator 
 Cyrus Edwards of Madison county. Ibid., 1835-1836, 58. 
 
 ^■^ House Journal, 1835-1836, 265, 325, 346, 358; Senate Journal, 1835-1836, 
 119, 195, 264, 279; LaiLS of Illinois, 1836, 129-35.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 59 
 
 per cent was produced the legislature could reduce them so 
 that not more than twelve per cent on the cost should be re- 
 alized from the operation of the railroad. There were pro- 
 visions In the act allowing for the construction of a lateral 
 road to Belleville, and the extension of the main line to Galena. 
 No other railroad was to be authorized to be built within ten 
 miles of the central road within fifty years. 
 
 The general assembly of i 835-1 836 was anything but par- 
 simonious In chartering railroad companies. In addition to the 
 Illinois Central fifteen other companies received charters, 
 Including the Belleville and Mississippi ; the Pekin, Blooming- 
 ton, and Wabash; the Mississippi, Springfield, and Carrolton; 
 the Alton, Wabash, and Erie; the Central Branch-Wabash; 
 the Galena and Chicago Union; the Wabash and Mississippi; 
 the Shawneetown and Alton (via McLeansboro, Mount Ver- 
 non, and Carlyle) ; the Alton and Shawneetown (via Edwards- 
 ville, Lebanon, Nashville, Frankfort, and Equality) ; the 
 Mount Carmel and Alton; the Wabash and Mississippi Union; 
 the Warsaw, Peoria, and Wabash; the Waverly and Grand 
 Prairie; the RushvIUe; and the Pekin and Tremont.*^ The 
 ease with which these charters were passed shows how the 
 legislature had become Infected with the optimistic and specu- 
 lative spirit current at the time. Practically every application 
 for a charter was granted, and in boom times like those of 
 1836 no section would sit back to see Its neighbor gain an 
 advantage by acquiring a much needed means of communica- 
 tion. 
 
 A system of railroads based on these charters would have 
 differed from the railroads of the present because they were 
 centered mostly at Alton rather than at St. Louis. For some 
 time Alton had aspired to be the commercial rival of St. Louis. 
 It was argued that Illinois should not continue to contribute 
 to the building up of a city outside the state at the expense of 
 her own towns. By 1831 most people of Illinois were sym- 
 pathetic toward Alton's ambitions even though they continued 
 to trade at St. Louis for the most part. In that year the legis- 
 
 *^ Ibid., 1836, 3, 8, 12, 16, 21, 24, 36, 46, 51, 54, 64, 76, 81, 85, 90.
 
 60 ILLINOIS INTERNAL IMPROVEMENTS 
 
 lature adopted a memorial requesting the congressional dele- 
 gates to use their influence to secure the routing of the Na- 
 tional Road through Alton rather than through St. Louis on 
 its extension to the capital of Missouri/*' It was believed that 
 a great commercial emporium would grow up at the point 
 where the National Road crossed the Mississippi river. When 
 railroads began to be projected in Illinois, the rivalry of Alton 
 and St. Louis played an important part in determining routes. 
 Most of the state acquiesced in routing railroads toward Alton 
 rather than St. Louis except for the southern quarter, a region 
 directly tributary to the latter city. The incorporators of the 
 railroads chartered in 1836 were singularly lacking in fore- 
 sight because they sought merely to connect the rivers or the 
 towns within the state rather than make their lines connecting 
 links in a nation-wide transportation system. 
 
 The contents of the numerous railroad charters of 1836 are 
 only of passing interest because no work was ever completed 
 under them. No two of the charters were alike because no 
 general plan was followed in drawing them up, and each one 
 embodied the particular interests of the incorporators. Usual- 
 ly the charters were granted for a limited period of forty to 
 sixty years, but in some cases the only limitation was the reser- 
 vation of the right of the legislature to purchase after a stated 
 interval of years, and sometimes there was not even that. 
 Where the state was allowed to take over the property after 
 a period of years, payment had to be made either for an ap- 
 praised value, or for the cost plus a fixed annual interest or for 
 cost plus cumulative interest. Several of the charters con- 
 tained provisions allowing the legislature to regulate rates, 
 but only, if after a term of years the profits of the company 
 exceeded a certain percentage. For example, the legislature 
 could reduce rates on the Illinois Central when they produced 
 a net income of over twelve per cent.^^ The charters generally 
 contained a provision for forfeiture in the event the road was 
 not begun or completed in a specified number of years. Some- 
 
 ^^ House Journal, 1830-1831, 190, 210, 375, 406. 
 *'' Laivs of Illinois, 1836, 132.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 6 1 
 
 times the rate at which construction had to progress was elab- 
 orately specified; the Wabash and Mississippi Union road, 
 for instance, was to be commenced within five years, one-fourth 
 finished in ten years, one-half finished in fifteen years, and all 
 finished in twenty years.*" The amount of capital stock was 
 usually specified, but the right for an increase was often 
 allowed, sometimes without limitation, as in the case of the 
 Warsaw, Peoria, and Wabash."*^ In the Mount Carmel and 
 Alton charter the state was given the privilege of subscribing 
 to one-third of the stock if done within the space of two 
 years/° Sometimes provision was made for a specified division 
 of the stock among the stockholders. A few charters contained 
 a clause providing for reports to the legislature, but generally 
 this was not required. The charters of 1 835-1 836 are signif- 
 icant only because the system of 1837 was composed largely 
 of lines projected by them. 
 
 If a railroad system had been constructed under these ex- 
 tremely liberal and diverse charters, the state would have been 
 faced with a problem of regulation of the greatest complexity 
 imaginable. Fortunately, all of them were either forfeited or 
 surrendered within a short time. During the summer of 1836 
 books of subscription for stock were opened in practically 
 every town of the state as well as in eastern cities." The in- 
 corporators failed to secure the large sums asked for, and 
 what little money was invested never returned to the pockets 
 of the shareholders.®" 
 
 The failure of private interests to raise the capital required 
 for undertaking the various internal improvement projects led 
 directly to the adoption of a general system by the state in 
 1 837. It gave to the friends of state ownership a most decisive 
 argument. For several years sentiment had been growing in 
 favor of a state owned and controlled system of internal im- 
 provements. As early as November, 1833, Illinois newspapers 
 
 ^»Ibid., 1836, 65. 
 ■^^ Ibid., 1836, 77. 
 ^^ Ibid., 1836, 56. 
 
 ^^ Illinois State Register, February 24, April 29, May 13, August 26, 1836. 
 ^- If all the railroads which had been incorporated had sold their stock the 
 aggregate would have amounted to $15,000,000.
 
 62 ILLINOIS INTERNAL IMPROVEMENTS 
 
 noticed that London papers published statements that large 
 sums of money could be had in England by any of the states 
 wishing to improve their transportation facilities. ^^ 
 
 In 1834 several candidates seeking public office stated their 
 position on the question of an internal improvement system.^* 
 Joseph Duncan, who took a strong stand in favor of internal 
 improvements, was elected governor. In his message to the 
 legislature on December 3, 1834, he stated that "the present 
 is a favorable time to commence a general system of internal 
 improvements. Our State is comparatively in its infancy, and 
 if roads, trackways, railroads, and canals, are now laid out, 
 they can be made straight between most of the important 
 points, with very little expense and difficulty, compared with 
 what will result, if their location is postponed until lands in- 
 crease in value, and settlements are formed on the roads which 
 are now In use, or are daily making." ^° He made particular 
 mention of the construction of the Illinois and Michigan Canal 
 and the improvement of the Illinois and Wabash rivers, and 
 expressed the hope that federal aid might be forthcoming. In 
 the session of the legislature which followed, George Forquer 
 made a proposal that the state effect a loan of $3,000,000 and 
 undertake the construction of the canal, the railroad from the 
 Wabash to Quincy, and the Central Railroad.^*' The sug- 
 gestion had to be dropped, however, because the railroads 
 were regarded as possible rivals to the canal, William J. 
 Gatewood, of Gallatin county, argued that the state could not 
 undertake more than one of the works, and that the canal 
 should get the preference. ^^ 
 
 During 1835 further schemes for an internal improvement 
 system were evolved. On October 16, Sidney Breese suggested 
 a plan whereby the north would get the Illinois and Michigan 
 Canal and the central and south the Central Railroad, from 
 which lateral branches would soon be constructed to the Wa- 
 bash and Mississippi rivers.®* He believed that Congress 
 
 ^^ San gam Journal, November 2, 1833; Galenian, November 8, 1833. 
 
 ^* Illinois Advocate, June 26, July 5, 1834; Sangamo Journal, July 5, 1834. 
 
 ^^ House Journal, 1834-1835, 29-31. 
 
 ^'^ Chicago Democrat, December 30, 1835. 
 
 ^'^ House Journal, 1834-1835, 264; Sangamo Journal, January 17, 1835. 
 
 58 Chicago Democrat, October 28, 1835.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 63 
 
 would donate land for the railroad, and that the state should 
 pledge its credit. To avoid jealousies he suggested that the 
 two works be begun simultaneously. The editor of the San- 
 gamo Journal commented that he could see no reason why the 
 state should spend two and a half million dollars on the Cen- 
 tral Railroad and yet refuse to construct the Wabash and 
 Mississippi road/^ A letter appearing in the Journal of No- 
 vember 28, 1835, endorsed Breese's plan and suggested that 
 railroads should also be constructed from Alton to Shawnee- 
 town, from the Wabash and Erie Canal to Quincy, from 
 Chicago to Vincennes, and from Springfield to xA.lton. This 
 enlarged scheme approached the outlines of a system for the 
 whole state. On December 7, 1835, residents of Adams and 
 Schuyler counties met at Clayton to discuss the subject. ®° 
 Resolutions were passed pledging support to the transverse 
 line from the Wabash to Quincy, to the canal, and to the Cen- 
 tral Railroad. The meeting pointed to the examples of New 
 York, Ohio, Pennsylvania, and Indiana in internal improve- 
 ments, and that the seemingly great debts of those states were 
 fast being liquidated by the receipts from tolls. 
 
 In the 1 835-1 836 session of the general assembly Cyrus 
 Edwards saw the mistake of haphazardly granting charters to 
 private companies. Consequently, he offered a plan for a con- 
 certed system of works which would embody three or four of 
 the major lines. On January 2, he proposed that the committee 
 on internal improvements be instructed to report bills for the 
 incorporation of companies for railroads from the Wabash 
 and Erie Canal via Danville, Decatur, and Springfield to 
 Quincy; from the termination of the Illinois and Michigan 
 Canal via Bloomington to Decatur; and from Alton, via 
 Edwardsville and Equality to Shawneetown.*^^ His plan would 
 have authorized the governor to effect a loan for a state sub- 
 scription of one-third of the stock as soon as the company 
 should have subscribed the remaining two-thirds, and would 
 have reserved the right of the state to buy out the company on 
 
 ^^ Sang am Journal, October 31, 1835. 
 ^^ Illinois Advocate, January 20, 1835. 
 ^'^ Senate Journal, 1835-1836, 154, 198.
 
 64 ILLINOIS INTERNAL IMPROVEMENTS 
 
 certain specified terms within a limited period. Several days 
 later he amended his resolution so as to allow an extension of 
 the canal and Decatur line through Springfield to Vandalia 
 where it would connect with the Kaskaskia which might be 
 made navigable in the future when funds became available. 
 The plan proposed by Edwards was seriously wanting in fore- 
 sight because it would have merely constructed railroads to 
 connect the navigable rivers and the small cities within the 
 state, and would not have opened direct connections with the 
 great centers of population outside the state. 
 
 After the adjournment of the legislature in 1836, the Chi- 
 cago Democrat expressed regret that so many private com- 
 panies had been chartered. **- It contended that the most im- 
 portant improvements should have been combined into a gen- 
 eral system and construction undertaken by the state. It 
 pointed out that the state might have created a board of in- 
 ternal improvements similar to the plan adopted In Indiana. 
 
 In 1836, when the private companies failed to dispose of 
 their stock, the movement for a general system of internal 
 improvements constructed by the state gained fresh impetus. 
 During the election of that year the press and the candidates 
 quite generally espoused the movement. "Let's elect repre- 
 sentatives who will borrow money to make internal improve- 
 ments," cried the editor of the Illinois State RegisterJ^^ In 
 response to the charge of the Quincy Argus that the Whigs 
 were opposed to internal improvements, the editor of the 
 Quincy JVhig replied that "to judicious and reasonable schemes 
 of internal Improvement, no men can be more friendly than 
 the Whigs." " That the people were Interested In the subject 
 was demonstrated by the Internal improvement convention 
 which assembled at Nashville on July 11 and 12, with dele- 
 gates present from Gallatin, Franklin, Jefferson, Madison, St. 
 Clair, Perry, and Washington counties. '^^ A resolution was 
 passed declaring that the revenue laws be amended so as to 
 
 ^'- Chicago Democrat, February lo, 1836. 
 '^^ Illinois State Register, June 24, 1836. 
 ^■* Quincy fV/iig, June 2, 1836. 
 '^^ Illinois State Register, October 28, 1836.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 65 
 
 tax each person according to the value of his or her property. 
 It was pointed out that New York, Maryland, Pennsylvania, 
 Ohio, and Indiana had spent millions for internal improve- 
 ments. The convention demanded that the state undertake a 
 general system since the private companies had not been able 
 to sell stock. The state election of August 19, 1836, placed 
 men in office favorable to extensive state enterprises. 
 
 The universal and incessant discussion on the internal im- 
 provement subject began during the fall of 1836 to take the 
 form of popular instructions to the newly-elected legislature. 
 Meetings were held in many counties for that purpose, and 
 delegates appointed to a convention called to meet at the state 
 capital simultaneously with the meeting of the legislature in 
 December.*'^ Typical of the numerous county meetings was 
 that held on November 19 at Springfield.*'^ After a series of 
 long speeches, resolutions were adopted declaring that the 
 legislature should enact a law providing for a general system 
 of internal improvement to be constructed by the state, and 
 that the governor should be authorized to borrow not to ex- 
 ceed $10,000,000 on the pledge of the credit of the state. 
 
 The internal improvement convention which met at Van- 
 dalia, December 5 and 6, 1836, simultaneously with the con- 
 vening of the legislature, was well attended.®^ The delegates, 
 some of whom were members of the general assembly, repre- 
 sented the various sectional wants of the state with the wildest 
 enthusiasm. After two days deliberation, during which "pos- 
 sibilities were argued into probabilities, and the latter into 
 infallibilities," they finally embodied their conclusions in a 
 group of resolutions demanding of the legislature the improve- 
 ment of the larger rivers and the construction of a system of 
 railroads by the state. The cost of the system, which was 
 estimated at $10,000,000, was to be paid for by the sale of 
 state bonds. 
 
 Governor Duncan in his message to the legislature reiterated 
 
 ^^ Sangamo Journal, August 27, November 26, 1836; Chicago Democrat, 
 December 7, 1836. 
 
 ^" Sangamo Journal, November 26, 1836. 
 '^^ Illinois State Register, December 8, 1836.
 
 66 ILLINOIS INTERNAL IMPROVEMENTS 
 
 his belief in the necessity for internal improvements.*'^ He 
 was not, however, in favor of their construction by the state, 
 but urged the passage of a general law providing that the 
 state take a certain amount of the capital stock in all canals 
 and railroads undertaken by private companies. 
 
 Internal improvements monopolized the interest of the 
 tenth general assembly. The subject was opened on December 
 14, when three separate proposals were made. William 
 Thomas of Morgan county proposed a resolution in the senate 
 instructing the committee on internal improvements to inquire 
 into the expediency of organizing a board of public works for 
 the purpose of embarking upon a state constructed system of 
 improvements. ^° John D. Whiteside of Monroe county offered 
 a resolution declaring that $150,000 should be appropriated 
 to be divided between the counties, in proportion to their 
 population, for the purpose of improving the public high- 
 ways.''^ Stephen A. Douglas of Morgan county presented a 
 resolution in the house calling upon the internal improvement 
 committee to report a bill providing for the completion of the 
 Illinois and Michigan Canal, a railroad from the termination 
 of the canal to the mouth of the Ohio, a railroad from Quincy 
 to the Wabash and Erie Canal, the improvement of the Illinois 
 and Wabash rivers, and the survey of such other works as 
 might be considered of utility.^" This system was to be con- 
 structed by the state with money obtained from a loan on the 
 state's credit and sales of canal lands. 
 
 Three days later Mark Aldrich of Hancock county pro- 
 posed that the house committee on internal improvements be 
 instructed to inquire into the expediency of the state subscrib- 
 ing to one-third or more of the capital stock of any or all of 
 the private companies chartered at the previous general assem- 
 bly.''^ On the same day Senator Cyrus Edwards proposed a 
 joint inquiry by the internal improvement committees of the 
 two houses as to the expediency of providing a system for the 
 
 '^^ House Journal, 1836-1837, 15-19. 
 ''^Senate Journal, 1836-1837, 45. 
 71 Ibid. 
 
 "^'•^ House Journal, 1836-1837, 36. 
 ~^ Ibid., 1836-1837, 69.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 67 
 
 whole State, the interest on the loan required to be paid from 
 the distribution fund.'* The report of the joint committee re- 
 sulted in both houses passing resolutions requesting grants of 
 land from Congress. 
 
 On December 23, 1836, Edward Smith of Wabash county 
 proposed a resolution urging the house committee on internal 
 improvements to report a bill providing for a general system 
 constructed by private companies but with the state cooperat- 
 ing in the management and subscribing one-half of the stock." 
 This plan contemplated the creation of a board of fund com- 
 missioners to negotiate the loans required for the stock sub- 
 scriptions and a board of public works to have joint manage- 
 ment over the railroads with the directors of the companies. 
 The state was to reserve the right to purchase the whole of the 
 railroad property after the expiration of twenty-five years 
 from January i, 1837. 
 
 The house internal improvement committee reported on 
 January 9, but its proposals differed a great deal from the plan 
 suggested by Smith. ^'^ The committee recommended the adop- 
 tion of a general system to be constructed by the state, declar- 
 ing the action of the recent convention with representatives 
 fresh from the people should convince the house that the 
 sentiment throughout the state was favorable. It pointed out 
 the brilliant examples of other states and forecast an even 
 greater opportunity for Illinois. The committee argued that 
 the system was demanded abroad as well as at home and that 
 the flow of immigration would cease if it were not adopted. 
 It declared that previous surveys could be dispensed with be- 
 
 ''^ Senate Journal, 1836-1837, 87, 89, 127. 
 
 ^5 Smith proposed the completion of the Illinois and Michigan Canal ; the 
 improvement of the Illinois, Wabash, Kaskaskia, Rock, and Little Wabash 
 rivers; the improvement of the Great Western Mai! Route; and the cooperation 
 of the state with private companies in the construction of railroads from the 
 western terminus of the Illinois and Michigan Canal to the mouth of the Ohio, 
 from Peoria via Bloomington and Paris toward Terre Haute, from Quincy to 
 the Wabash and Erie Canal, from Mount Carmel to Alton, from Shawneetown 
 to Alton, and from the Wabash and Erie Canal to Alton. House Journal, 1836- 
 1837, 97-102. 
 
 '^'■Ibid., 1836-1837, 202-15; Illinois State Register, January 12, 1837. The 
 committee recommended complete state ownership and construction. The plan 
 was more conservative than that offered by the Vandalia convention in regard 
 to the extent of the system.
 
 68 ILLINOIS INTERNAL IMPROVEMENTS 
 
 cause exact estimates of cost could be made in a country of 
 uniform topography like Illinois, and that if the routes were 
 surveyed first, the state could not buy the adjacent lands at the 
 United States government price. A general system of internal 
 improvements was within the policy and means of the state 
 according to this most hopeful and assuring report. 
 
 The committee recommended that a loan of $8,000,000 be 
 authorized by the legislature, that a board of fund commis- 
 sioners be created, and that a fund for internal improvements 
 be established to consist of all monies arising from loans, tolls, 
 rents of land and hydraulic powers, interest on stocks, sale of 
 state lands entered for the works, a portion of the deposits 
 received from the national government, and such portions of 
 the annual land tax and other appropriations as might be 
 found necessary from time to time to meet payment of interest 
 on loans. It was pointed out that the value of land subject to 
 taxation in 1836 amounted to $5,335,041, and that by 1842 
 the state might count on twelve million acres of taxable land 
 to help meet the debt. A board of public works was to be 
 created for the purpose of promoting and superintending the 
 various improvements. The railroads were to be begun at 
 intersections with navigable streams and important towns and 
 to be extended in both directions from them, and put into 
 operation as soon as five or more miles could be completed 
 from those points. The committee recommended the expendi- 
 ture of $100,000 each on the Great Wabash, the Illinois, and 
 the Rock, $50,000 each on the Kaskaskia and Little Wabash, 
 $100,000 on the Great Western Mail Route, $3,500,000 on 
 the Central Railroad, $1,600,000 on the Southern Cross Rail- 
 road, and $1,850,000 on the Northern Cross, for an aggre- 
 gate sum of $7,450,000. The cost of the railroads was esti- 
 mated at $8,000 a mile or less. The committee incorporated 
 its proposals into a bill entitled "an act to establish and main- 
 tain a general system of internal improvements," and pre- 
 sented it to the legislature for adoption. 
 
 On January 23, the bill was reported back to the house, 
 where it was subject to lengthy discussions and many proposals
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 69 
 
 for changes.'^ An attempt by Alpheus Wheeler of Pike county 
 to destroy the system by striking out the enacting clause was 
 defeated by a vote of 9 to 70, the opposition to the bill coming 
 largely from the members representing the lower Military 
 Tract and the southern counties. A move by William Lane of 
 Greene county to obtain a referendum on the bill at the next 
 election was defeated 20 to 59. Richard Bentley of Bond 
 county then sought to decrease the size of the system by strik- 
 ing out all works and appropriations, except the Central and 
 the Wabash and the Mississippi railroads, which was denied 
 by an 1 1 to 67 vote. 
 
 When the bill came up for consideration the next day, 
 Wheeler moved to amend by striking out the enacting clause, 
 and providing for the appointment of an engineer who was to 
 make a survey of the proposed works and make a report to 
 the following session of the legislature. This amendment was 
 defeated by the usual division of votes. The bill was then 
 advanced to the third reading by a vote of 62 to 18. After 
 being read the third time it was referred to a committee of the 
 whole on January 27. A final attempt to condemn the system 
 was made by a representative from Schuyler county, William 
 A. Minshall, who proposed to pronounce it inexpedient and to 
 create a board of internal improvements to employ the en- 
 gineers who were to examine the several routes and report 
 how far they conflicted with charters previously granted by the 
 legislature, and how far the several routes conflicted with each 
 other. The proposal was decided in the negative by a vote of 
 22 to 62- The amendments were usually supported by mem- 
 bers interested in further additions to the bill, and by Whigs 
 who were opposed to improvements constructed by the state 
 rather than by private companies. The bill finally passed the 
 house on January 31, by a vote of 61 to 25, the opposition as 
 usual coming from members representing the lower Military 
 Tract and the extreme southern counties. 
 
 On February 16, the internal improvement committee of 
 the senate reported the bill with amendments. ^^ Of the amend- 
 
 ~~ House Journal, 1836-1837, 363-70, 375, 413, 430, 441, 443. 
 "•^Senate Journal, 1836-1837, 445-52, 464-66, 469-75, 487, 490.
 
 70 ILLINOIS INTERNAL IMPROVEMENTS 
 
 merits added in the committee, two were voted down by the 
 senate, one of which proposed a railroad from Havana to 
 some eligible point on the Central line and the other proposed 
 appropriations to the Winchester, Linnville, and Jacksonville, 
 and to the PIttsfield and Mississippi Railroad companies. 
 
 Many amendments providing for additions to the system 
 proposed in the senate were defeated, including proposals for 
 a railroad from Peoria to Oquawaka, a continuation of the 
 Central Branch railroad to Alton, a turnpike from Ford's 
 Ferry to Chester, $50,000 to Improve the Big Muddy, $25,000 
 to improve the Embarrass, $50,000 for the Chicago-Vincennes 
 road, and a railroad from some point on the Illinois Central 
 to Shawneetown. Two important additions were made by the 
 senate. The amendment adding a railroad from Bloomington 
 to Mackinaw with branches from the latter point to Peoria 
 and Pekin, was adopted by a vote of 23 to 16. The amend- 
 ment for appropriating $200,000 to counties not receiving 
 any benefit from other provisions was passed 31 to 9. 
 
 A number of unsuccessful attempts to destroy the system 
 were made In the senate. A proposal by Levin Lane of Hamil- 
 ton county to lay the bill on the table until December i, and 
 to print 10,000 copies for distribution among the people was 
 decided in the negative by 14 to 25. William O'Rear's pro- 
 posal for a popular vote to be held on the first Monday in 
 August barely lost, 20 to 20. The bill was advanced to the 
 third reading by a vote of 25 to 15, and passed on February 
 21, by a similar vote. Upon being reported back to the house 
 with the senate amendments, Parven Paullin of Pike county 
 moved to amend the bill by providing for an election on the 
 first Monday in June to let the people decide whether or not 
 the system should be adopted. The proposal was defeated 30 
 to 55. The house concurred In the senate amendments by a 
 vote of 62 to 22 on February 23.^^ 
 
 '^ House Journal, 1836-1837, 675. As finally passed, the act appropriated 
 $10,250,000, divided as follows: for rivers — Great V^abash, $100,000; Illinois, 
 $100,000; Rock, $100,000; Kaskaskia, $50,000; Little Wabash, $50,000; for Great 
 Western Mail Route from Vincennes to St. Louis, $250,000; for railroads — 
 Illinois Central, $3,500,000; Southern Cross, Alton to Mount Carmel and Alton 
 to Shawneetown, $1,600,000; Northern Cross, Quincy to Indiana state line,
 
 Ft
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 7 I 
 
 On the same day Edwin B. Webb and John McCown, the 
 representatives of White county, made a protest and ordered 
 it spread upon the journal of the house. The protest declared 
 that there could be no advantage in plunging the state into 
 debt, the interest of which would amount to ten times the 
 ordinary revenue; that out of state people would profit most 
 by the advance in price of lots and lands along the railroad 
 routes. It pointed out that the successful works of New York 
 and Pennsylvania afforded no fair example or precedent, for 
 there they were intended to connect cities of large wealth, 
 business, and population, while the works proposed by Illinois 
 were but a bold attempt to create cities and attract population 
 and wealth. Finally, it condemned the use of logrolling as a 
 means to secure the adoption of the bill.^° 
 
 On February 25, the council of revision returned the bill 
 without its approval. ^^ Judges Thomas C. Brown and Samuel 
 D. Lockwood objected to the provision which provided that 
 vacancies in the board of public works were to be filled through 
 appointment by the remaining members of the board, which 
 they thought an infraction of section eight of the third article 
 of the state constitution authorizing the governor to fill such 
 vacancies. They also pointed out that by limiting the term of 
 office of the fund commissioners to the second Monday in 
 December biennially, an interval might result without incum- 
 bents, and they suggested that the fund commissioners be con- 
 tinued in office until their successors were appointed. In con- 
 curring Judge Theophilus W. Smith admitted that there might 
 be other objections which he would leave for the general 
 assembly to decide. Governor Duncan concurred in the ob- 
 jections, and in addition questioned the bill on the ground of 
 expediency, contending that "such works could only be made 
 safely and economically in a free government, by citizens or 
 
 $1,850,000; Central Branch, Hillsboro to Terre Haute, $650,000; Peoria and 
 Warsaw, $700,000; Alton, Hillsboro and the Central, $600,000; Belleville to 
 Southern Cross, $150,000; Bloomington to Mackinaw with diverging branches 
 to Pekin and Peoria, $350,000; and for counties not furnished with a railroad 
 or canal, $200,000. Laii-s of Illinois, 1837, 131-36. 
 
 ^'J Illinois State Register, March i, 1837; House Journal, 1836-1837, 680-83. 
 
 ^^ Ibid., 1836-1837, 720-24.
 
 72 ILLINOIS INTERNAL IMPROVEMENTS 
 
 by independent corporations, aided or authorized by the gov- 
 ernment." He feared the danger of interference in elections 
 and the likehhood of undue influence over the legislature by 
 those In management of the system. 
 
 The house Immediately proceeded to amend the bill so as to 
 remove the provisions objectionable to Brown and Lockwood 
 and repassed it by a vote of 53 to 20. On February 27, the 
 senate concurred in the house amendments and passed the bill 
 23 to 13. The council of revision gave Its approval on the 
 same day.^- 
 
 The manner In which the Internal Improvement bill was 
 passed deserves some attention. Writers on Illinois history 
 have uniformly claimed the system was adopted only after 
 logrolling and vote trading on the part of scheming and adroit 
 politicians.^^ That the picture has been overdrawn Is fairly 
 evident. That many members of the legislature would not vote 
 for the system until the projects of their own districts were 
 included is probably true; as for example, the northern part 
 of the state favored improvements for the south so that the 
 representatives from that section would give continued sup- 
 port to the canal. The charges, however, that the city of Alton 
 surrendered her claim to the seat of government for three 
 railroads, that the Sangamon county delegation bartered its 
 votes to the friends of Internal improvements in exchange for 
 support to Springfield as the seat of government, and that the 
 counties without railroads and river improvements were bribed 
 by a donation of $200,000, have not been proven by conclu- 
 sive evidence. 
 
 A critical examination of the legislative journals does not 
 tend to show that these charges are true. To say that the 
 counties not otherwise provided for by the system received the 
 $200,000 as a bribe for their support is rather far fetched 
 because the votes of the members from those counties were not 
 
 ^^ Ibid.y 1836-1837, 723, 735, 739; Senate Journal, 1836-1837, 531. 
 
 83 Ford, op. cit., 183, 186-87; Frederick Gerhard, Illinois As It Is (Chicago, 
 1857), 84; John Reynolds, My Oivn Times, Embracing also a History of my Life 
 (Belleville, 1855), 508; Alexander Davidson and Bernard Stuve, History of 
 Illinois, 1763-1884 (Springfield, 1884), 438-39; Pease, op. cit., 201-05; William 
 E. Baringer, Lincoln's I'anJalia (New Brunswick, New Jersey, 1949), 87-109.
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 73 
 
 needed to pass the bill. When the amendment for appropriat- 
 ing the $200,000 was added on February 21, the bill had al- 
 ready passed the house and the test vote indicated quite clearly 
 that it would also pass the senate.^ 
 
 The evidence on the connection between the internal im- 
 provement system and the location of the seat of the govern- 
 ment is likewise quite inconclusive. Attention might be called 
 to the fact that of the fifteen senators who voted against the 
 internal improvement bill, eight voted for locating the seat of 
 government at Springfield.*^ Similarly in the house, such op- 
 ponents of the internal improvement system as Revill W. 
 English (Greene county), John Harris (Macoupin county), 
 William A. Minshall (Schuyler county) , Samuel G. Thompson 
 (Randolph county), Edwin B. Webb (White county), and 
 Alpheus Wheeler (Pike county), voted for Springfield, while 
 a large number of friends of the system cast their ballot 
 against Springfield.^^ It might also be pointed out that Senator 
 Whiteside, who first proposed an amendment for appropriat- 
 ing funds to the counties not otherwise provided for in the bill, 
 voted not for Springfield, but for Alton. ®^ If Alton had given 
 up her claim for the seat of government, the Madison county 
 representatives would not have continued to vote for that city 
 as they did on February 28, 1837, during the balloting for 
 locating the seat of government.'^* 
 
 It is more likely that Alton received the terminals of three 
 railroads because it was the largest city within the state on the 
 Mississippi river. This is in accord with the policy of building 
 internal improvements to connect the streams and the large 
 towns within the state. It is also in line with the movement of 
 that day to build up Alton as a rival to St. Louis. The charters 
 granted to the private companies during the 1 835-1 836 session 
 of the legislature had Alton as the termini of four of the roads, 
 while not a single one of the charters provided for a cross- 
 state road terminating at St. Louis. Thus it will be seen that 
 
 ^Senate Journal, 1836-1837, 46+, 467. 
 ^^ Ibid., 1836-1837, 475, 546-51. 
 ^^ House Journal, 1836-1837, 443, 675, 757. 
 ^''Senate Journal, 1836-1837, 444, 550. 
 ^^ House Journal, 1836-1837, 752-57.
 
 74 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Alton was generally regarded as the future railroad center of 
 the state even before the internal improvement system was 
 originated. It might also be pointed out that the friends of 
 Alton had a reason for favoring Springfield next to Alton as 
 the location for the seat of government. Federal law pro- 
 vided that the National Road was to pass through the capital 
 of Illinois. If Vandalia were to remain the capital the Na- 
 tional Road would almost certainly be routed westward 
 through St. Louis, or if a town in the northern part of the 
 state were to be the chosen, the road would probably cross the 
 Mississippi river north of Alton. The location of the seat of 
 government at Springfield, however, would very likely result 
 in the routing of the National Road through Alton, or at least 
 so it was thought at that time. 
 
 It is probable that the Sangamon county delegation made 
 some bargains, but to say that "the whole state was bought 
 up and bribed" as did Thomas Ford in his History of Illinois^ 
 is certainly going too far. Ford's account of this topic no 
 doubt was prejudiced, since as a Democrat in politics he was in 
 opposition to the "Long Nine" of Sangamon county. Later 
 writers apparently accepted the Ford version without a critical 
 study of the evidence as presented by the vote in the general 
 assembly. While Ford sought to make villains of the "Long 
 Nine," others stressed a relationship between the adoption of 
 the internal improvement system and the location of the capi- 
 tal in an effort to build up Abraham Lincoln as a shrewd politi- 
 cian. It might be remarked, incidentally, that large internal 
 improvement systems were adopted in other states without 
 changing the location of the seat of the government. 
 
 In looking for the reasons why an act providing for an 
 internal improvement system was passed in 1837, the strong 
 antimonopoly feeling prevailing in the country at that time 
 must be taken into consideration. Sentiment for the state 
 ownership of transportation facilities was particularly strong 
 in the western states with large Democratic majorities. The 
 individualistic farmer feared that he would be charged exces- 
 sive tolls on canals and railroads built and operated by private
 
 EVOLUTION OF THE GENERAL SYSTEM OF I 837 75 
 
 companies. When the depression wrecked the numerous state 
 systems undertaken in 1836 and 1837, government ownership 
 lost favor. 
 
 The adoption of a general system for internal improve- 
 ments on February 27, 1837, met with almost universal ac- 
 claim throughout the state. People everywhere were antic- 
 ipating a flow of population into the state with an attending 
 increase in business activity and rise in the price of land.^^ The 
 opposition was confined quite largely to those whose pet proj- 
 ects were not incorporated into the system, or to those, who, 
 like Governor Duncan, fav^ored the construction of internal 
 improvements by private companies authorized and aided by 
 the government. The system was not a party measure because 
 of the unanimity of the people in demanding it. Opposition 
 was personal and sectional rather than political. 
 
 That the legislature had involved the state in a program of 
 public works too costly for her resources and out of proportion 
 to the needs of a frontier people is not to be denied, but to 
 question its integrity of purpose is unjust. Popular sentiment 
 so far as it had been expressed had given countenance and 
 sanction to the action of the legislature in embarking upon 
 public enterprises which were deemed necessary to advance the 
 prosperity of the state by affording facilities for trade and 
 intercourse. 
 
 It was a widely accepted idea that the success of public 
 works had been demonstrated in other states. John A. Mc- 
 Clernand, of Gallatin county, speaking in the legislature on 
 January 31, 1837, during the debate on the internal improve- 
 ment bill declared that the state of New York had shown the 
 success and advantage of such works. ^° In January, 1835, 
 McClernand stated. New York had completed at her own ex- 
 pense 539 miles of canal navigation costing $11,488,035.99. 
 The tolls that she realized from the Erie and Champlain 
 canals alone for the year ending September 30, 1 834, amounted 
 to $1,772,364.80. Pennsylvania, in January, 1835, Mc- 
 Clernand went on to say, had in successful operation eight 
 
 ^^ Illinois State Register, March 6, 1837; Lacon Herald, December 13, 1837. 
 ^° Illinois State Register, March 17, 1837.
 
 76 ILLINOIS INTERNAL IMPROVEMENTS 
 
 canals, opening 601.71 miles of canal navigation, and 118.27 
 miles of railway, making a total of 720 miles of internal 
 improvements owned by the state. The whole cost of these 
 works according to the governor's message of 1835 was 
 $22,114,915.41, and the tolls for the year 1835 exceeded a 
 million dollars, McClernand disclosed. He then pointed out 
 that the canal system of Ohio amounted to nearly 400 miles, 
 and the tolls received for the year ending October 31, 1834, 
 aggregated $290,791.12. Indiana, too, had embarked on a 
 splendid system of internal improvements, McClernand ar- 
 gued. 
 
 The example of successful public works in other states had 
 convinced the people that they must bestir themselves without 
 delay, if they expected to place Illinois in a position of high 
 rank among the states. In this they were using poor judg- 
 ment because the successful works of New York and Pennsyl- 
 vania afforded no fair example since they were intended to 
 connect large cities and passed through settled areas, while 
 the works projected in Illinois depended on the uncertainty of 
 future development in the areas which they crossed. 
 
 At the time of adoption of the system there was a feeling 
 of almost unbelievable optimism among the people of the state. 
 During a speech delivered in the house of representatives on 
 January 30, 1837, John Hogan of Madison county produced 
 estimates to show that bank dividends expected to be ten per 
 cent would give the state $300,000 per year to pay interest on 
 bonds; premiums on loans were estimated from five to ten 
 per cent,^^ If need be a surplus revenue of $500,000 might be 
 obtained by the levy of a two mill tax on real estate. Interest 
 accruing on this surplus would amount to $45,000 per year, 
 Hogan declared. By 1847, he thought, the system would be 
 self sustaining when the tolls would amount to five per cent of 
 the entire cost. Any enterprise, no matter how adventurous 
 and chimerical, seems possible, however, in such a boom period 
 as ushered into existence the internal improvement system of 
 
 1837- 
 
 ^^ Ibid., March 24, 1837.
 
 CHAPTER IV 
 
 ADMINISTRATION AND CONSTRUCTION OF THE 
 INTERNAL IMPROVEMENT SYSTEM 
 
 THE act of February 27, 1837, created a board of com- 
 missioners of public works, consisting of seven members, 
 one from each judicial district, to be elected biennially by the 
 general assembly meeting in joint session, and to continue in 
 office for two years, for the purpose of promoting and super- 
 vising the various improvements/ An oath of office and a 
 penal bond of twenty thousand dollars was required of each 
 of the commissioners, none of whom was allowed to retain in 
 his hands more than $20,000 at any one time. The board was 
 authorized to hold semi-annual meetings on the first Monday 
 of June and December at the seat of government, and at the 
 first meeting to be convened on or as soon as convenient before 
 the first Monday in April a secretary was to be appointed and 
 one member of the board elected president. At the semi-an- 
 nual meetings, the commissioners were to determine the gen- 
 eral outline of operation, divide the work among the members, 
 examine and audit accounts, make estimates of probable costs 
 which were to be entered on the books and copies sent to the 
 fund commissioners, and make out reports of their proceed- 
 ings for the governor to lay before the legislature. The mem- 
 bers of the board were allowed to receive as a compensation 
 for their services the sum of five dollars per day for each day 
 necessarily employed in the discharge of their duties. 
 
 The board was authorized to employ engineers who were to 
 examine and survey all the public works of the state except the 
 Illinois and Michigan Canal. Construction on the works was 
 to be executed by contract; each job of work, for which due 
 notice was to be published and sealed proposals received, was 
 to be let to the lowest responsible bidder. The contracts were 
 
 1 Laixs of Illinois, 1837, 121-51.
 
 78 ILLINOIS INTERNAL IMPROVEMENTS 
 
 to provide for forfeiture in case of noncompliance, abandon- 
 ment, or neglect by the contractors, and no subletting was to 
 be permitted. During the progress of construction, estimates 
 of the probable amount of work actually done by the contrac- 
 tors on each respective job, were to be made by the engineer in 
 charge of the work at stated periods not to exceed two months, 
 and there was to be paid to the contractor a sum not less than 
 sixty per cent on the amount of the work actually performed, 
 and the balance was to be retained as a security to the state 
 for the faithful performance of the contract until the work 
 was to be accepted if done according to contract, and the 
 balance paid in full to the contractor. In paying the contrac- 
 tors, the commissioners were to give drafts drawn on the board 
 of fund commissioners, signed by the president of the board or 
 the president protempore and countersigned by the secretary, 
 payable to the order of the acting commissioner, and specify- 
 ing on the face of the draft the particular work to which it 
 was to be applied. 
 
 The board of commissioners of public works was empow- 
 ered to receive grants and releases of land, and to enter and 
 purchase on the behalf of the state any public lands lying 
 within five miles of the probable route of any of the public 
 works, which in the opinion of any two members of the board 
 would be materially enhanced in value by the construction and 
 completion of the contiguous work. Both commissioners and 
 engineers were required to take an oath to keep secret all in- 
 formation they might receive relating to lands or choice town 
 sites, that other persons might not enter or purchase them to 
 the disadvantage of the state. Any violation of this provision 
 was to be deemed a misdemeanor, punishable by a fine not to 
 exceed $5,000 and disqualification of further holding office. 
 
 The railroads were to be built on the most direct and eligible 
 routes between the termini specified in the act. Construction 
 on the various railroads was to be commenced simultaneously 
 at each end, and at important towns and intersections with 
 streams progress was to be made in both directions. This pro- 
 vision, which was one of the greatest weaknesses of the entire
 
 ADMINISTRATION AND CONSTRUCTION 79 
 
 system, was inserted in order that no one section would obtain 
 an advantage over another, and because it was thought that 
 portions of the roads leading to towns and streams completed 
 first would be more productive of revenue than one continuous 
 line. Railroads or branches built by individuals or corpora- 
 tions could be connected with the state works. Finally the 
 board of commissioners was empowered to adopt and enforce 
 such rules and regulations as might be deemed necessary and 
 expedient to carry into full effect the provisions of the act. 
 
 The first board of commissioners of public works elected by 
 the two houses of the legislature meeting in joint session on 
 March i and 2, consisted of Murray McConnel, William 
 Kinney, Elijah Willard, Milton K. Alexander, Joel Wright, 
 James W. Stephenson, and Ebenezer Peck.- At its first meet- 
 ing held in Vandalia, April 2-6, the board elected William 
 Kinney, president, and G. W. Caruthers, secretary, and divided 
 the state into four districts for engineering purposes.^ One 
 principal engineer, who was to be paid a salary of $3,000 
 annually, was appointed by the board in each district. The 
 acting commissioner of each judicial circuit was allowed to 
 employ as many assistant engineers as were deemed necessary. 
 A general office, styled the "Central Internal Improvement 
 Office of the State of Illinois," was established at Vandalia, 
 as well as one district office in each of the four engineering 
 districts. A resolution passed on April 5, set forth the sums 
 which the board expected to expend by September i, as two 
 and a half per cent of the amount appropriated on the rail- 
 roads, $125,000 on the Great Western Mail Route, $50,000 
 on the Great Wabash, and five per cent of the amount appro- 
 priated on the other rivers. After having drafted instructions 
 to the engineers in regard to surveys of the different works, 
 the board adjourned until June. 
 
 Work on the railroads was delayed by the private companies 
 
 -House Journal, 1836-1837, 789-90, 812-13; Senate Journal, 1836-1837, 578, 
 
 597-99- 
 
 ^Illinois State Register, April 7, May 5, 1837; Internal Improvement Records, 
 VIII, 2. The board of public works decided to pay the secretary a salary of 
 $1000 per year. He was to be paid quarterly out of the internal improvements 
 fund.
 
 8o ILLINOIS INTERNAL IMPROVEMENTS 
 
 which neglected to rellquish their charters. The board of com- 
 missioners reported at their June meeting that the Illinois 
 Central and the Alton and Shawneetown companies had failed 
 to surrender their acts of incorporation.'* These delays caused 
 a loss of money as well as of time because some of the en- 
 gineers in the employ of the state remained idle until the 
 charters were finally released. 
 
 Section fifty-three of the internal improvement act of Feb- 
 ruary 27, 1837, provided that construction of the Northern 
 Cross Railroad should begin immediately.^ That route accord- 
 ingly received the prompt attention of the commissioners. The 
 survey of the section between Springfield and Jacksonville was 
 begun on May 1 1 and completed in June.*' Proposals for bids 
 were asked for on June 8, and the first contracts were let on 
 July 10, when James Dunlap, Miron Leslie, Charles Collins, 
 and Thomas T. January were declared the successful bidders 
 to undertake construction of that section of the road extending 
 from Springfield to the Illinois river.'' 
 
 In the meantime surveys of other roads had been com- 
 menced; the report of the board of public works for June 
 stated that the Northern Cross, the Mount Carmel and Alton, 
 and two sections of the Central Railroad had been placed un- 
 der survey,* By fall surveys were either completed or in prog- 
 ress on all the railroads and on the Great Western Mail 
 Route.^ 
 
 Not many contracts for construction work were let during 
 1837. On August 25, contracts were to be let for that portion 
 of the Great Western Mail Route between Belleville and St. 
 Louis, but the bids were so much higher than the estimate of 
 the engineer that commissioners Kinney and Willard, who 
 
 '^Illinois State Register, June lo, 1837; Senate Journal, 1837, special session, 
 
 ^ LaiL's of Illinois, 1837, 151. 
 
 '^Illinois State Register, June 10, 24, 1837. 
 
 ~ Ibid., June 10, 1837. The original of the contract for the Jacksonville- 
 Meredosia railroad is preserved in the vaults of the state library, archives 
 division, Springfield. 
 
 '^ Ibid., June 10, 1837. 
 
 '* Hennepin Journal, September 28, 1837; Illinois State Register, July 15, 
 September 15, November 4, 24, 1837. Manuscript accounts of the surveys are 
 preserved in the vaults of the state library, archives division, Springfield.
 
 ADMINISTRATION AND CONSTRUCTION 8 I 
 
 were in charge of the letting, rejected all proposals, and ad- 
 vertised another letting on October 9.^° Consequently, on that 
 date the levee and macadamizing on the American Bottom was 
 let to Wistanley and Duffy, and improvements at Silver Creek 
 to Isaac Dement, for proposals slightly higher than the en- 
 gineer's estimates." Other bids were rejected because they 
 were too high. An additional letting was held for the North- 
 ern Cross road on October 31, when the section between 
 Springfield and the Sangamon river was awarded to Reuben 
 Radford, James F. Reed, J. M. Early, and John Calhoun." 
 Three days later ten miles of the Pekin and Bloomington Rail- 
 road were placed under contract. ^^ The work was divided 
 among numerous contractors of very limited resources, and 
 since the prices of materials and provisions and the salaries of 
 laborers w-ere so high, they were unable to fill their obligation 
 and had to forfeit their contracts. The total expenditures by 
 the commissioners on all public works up to December, 1837, 
 amounted to $82,277.82, the larger part of which was spent 
 on surveys.^* 
 
 At the December meeting, the board of commissioners de- 
 cided to place 266 miles of railroad under contract during the 
 ensuing six months, to be distributed among the different roads 
 as follows: for the Illinois Central, from Cairo northward 
 twenty miles, from the Illinois river eleven miles in both 
 directions, from Galena southward twenty miles; for the 
 Alton and Shawneetown, Shawneetown to Equality twelve 
 miles; for the Alton and Mount Carmel, Alton to Edwards- 
 ville fifteen miles, Mount Carmel to Albion eighteen miles; 
 for the Southern Cross, from Alton eastward twelve miles, 
 from state line via Paris westward eighteen miles; for the 
 Northern Cross, Quincy to Columbus fifteen miles, Danville 
 westward eighteen miles; for the Peoria and Warsaw, from 
 
 ^'^ Ibid., September 15, 1837. 
 ''^^ Ibid., October 27, 1837. 
 
 ^- Ibid., Nov^ember 24, 1837; Illinois Republican, November 8, 1837. 
 '^'•^ Illinois State Register, September 22, November 24, 1837. 
 1* Report of the board of public works, December 1837, Ibid., December 29, 
 1837; Sangamo Journal, January 12, 1838.
 
 82 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Peoria westward twelve miles; and for the Pekin and Bloom- 
 ington, Pekin to Fremont (previously let) ten miles. ^^ 
 
 The competition among the contractors at the lettings was 
 usually very keen. For example, a total of 353 bids were re- 
 ceived at the lettings held on April 17 for the twenty-four 
 miles put under contract on the Peoria and Warsaw line.^® 
 Out of state contractors often received more contracts than 
 the local bidders, because there were but few firms within the 
 state that possessed adequate resources to undertake the expen- 
 sive preliminary work of importing equipment and supplies. 
 When eighteen miles of the Central Branch Railroad were 
 put under contract on March i, there were successful bidders 
 from Ohio, Indiana, Maryland, and New Hampshire. ^^ At 
 the lettings for the Peoria and Warsaw road, all the successful 
 bidders, with one or two exceptions, were from a distance. ^^ 
 The contracts generally called for larger expenditures than the 
 engineers had estimated. For the twenty miles on the Galena 
 end of the Central Railroad let on May 12, the contracts 
 amounted to $33,929, which was $3,878 over the engineer's 
 estimate.^'' The northern end of the Central was one of the 
 less expensive routes. The average cost for preparing the 
 roadbed on most of the lines averaged well above $4,000 per 
 
 "^^ Illinois State Register, December 9, 1837. Contracts let during 1837 in- 
 cluded the following: Alton to Edwardsville, February 15; eighteen miles west- 
 ward from Danville, February 22; eighteen miles from state line via Paris 
 toward Charleston, March i ; Mount Carmel to Albion, March 8; Shawnee- 
 town to Equality, March 15; twelve miles on each end of Peoria and Warsaw 
 Road, April 17; twenty miles northward from Cairo, May 7; twenty miles 
 southward from Galena, May 12; Quincy to Columbus, May 15; eleven miles on 
 each side of Illinois river of the Illinois Central, June 25 ; three miles southward 
 from Vandalia, August 13; three miles at Meredosia, August 15; three miles of 
 Naples branch, August 15; portions of Great Western Mail Route, August 16 
 and 18; three miles northward from Cache river, August 23; two miles of 
 Central at Embarrass river, September 4; superstructure and depot at Shawnee- 
 town and Equality, September 10; three miles between Fairfield and Albion, 
 October 18; thirteen miles eastward from Alton, two miles of Alton and Mount 
 Carmel road in Clinton county, three miles between Lebanon and Edwardsville 
 (relet), and Lebanon to Salem not heretofore let, October 22; twenty-three miles 
 of superstructure northward from Cairo, November 17. Ibid., December 1837- 
 December 1838. 
 
 '^^Lacon Herald, April 28, 1838. 
 
 ^"^ Illinois State Register, March i6, 1838. 
 
 18 LflfOM Herald, April 28, 1838. 
 
 "^^ Illinois State Register, June i, 1838. Many of the original contracts are on 
 file in the vaults of the state library, archives division, Springfield.
 
 ADMINISTRATION AND CONSTRUCTION 83 
 
 mile. For example, lettings on the Peoria and Warsaw road 
 averaged $4,124.41 per mile.-*' The contracts, of course, did 
 not include the cost of the iron and the work of laying down 
 the track. All the contracts contained provisions specifying 
 the time within which the work had to be commenced and the 
 date at which it was to be completed. 
 
 While equipment and provisions were scarce and high in 
 price, the supply of labor was adequate. ^^ Laborers received 
 sixteen or eighteen dollars a month and board." The high 
 prices forced a number of the contractors to forfeit their con- 
 tracts. Relettings had to be held on October 31, 1838, for the 
 superstructure on the western division of the Southern Cross 
 Railroad and for portions of the grading on the Great West- 
 ern Mail Route through the American Bottom.-^ 
 
 The total mileage of railroads under contract by December 
 I, 1838, amounted to two hundred ninety-three and three- 
 fourths miles, according to the semi-annual report of the board 
 of public works. -^ The contracts provided for the construction 
 of the superstructure on thirty miles, and for grading only on 
 the residue. A total of one hundred five miles of grading had 
 been completed. The board estimated the average cost at 
 $12,500 per mile for all expenses of the roads under contract. 
 This is in contrast to the estimate of $8,000 per mile made by 
 the house committee on internal improvements in 1837 when 
 the bill to establish the system of internal improvements was 
 introduced in the legislature. The board further estimated the 
 mileage of the railroads to be constructed at 1,341 }i and their 
 total cost at $11,470,444.50, It pointed out that this sum 
 exceeded the original estimate because the roads were found 
 to be longer than had been expected. The report of the fund 
 commissioners shows that a total of $1,142,027.75 had been 
 expended on the various projects to December of 1838. At 
 the same time the sum of $144,700 had been paid the counties 
 
 ~°Jbid., March i6, 22, May 4, 1838; Lacon Herald, April 28, 1838. 
 -1 Illinois State Register, June 15, 1838. 
 ^~ Ibid., July 6, 1838. 
 
 -^Internal Improvement Reports, 1838-1839, report of the board of public 
 works, December 26, 1838, 76, 79. 
 ^■1 Ibid., 8-12.
 
 84 ILLINOIS INTERNAL IMPROVEMENTS 
 
 which were not to share In the benefits of the internal im- 
 provement system.-^ 
 
 A project for improving the American Bottom received 
 much attention in 1838. In 1837 the legislature had created a 
 board of managers to conduct a lottery for the purpose of 
 raising funds to be expended in draining the lakes and ponds 
 and in constructing roads in the bottom lands extending along 
 the Mississippi from Wood river to the Kaskaskia. The presi- 
 dent of the board made a report in April of 1838, which cited 
 the many benefits which would accrue from the accomplishment 
 of the project. At the same time a suggestion was made that 
 the individuals owning land situated in the American Bottom 
 should submit to a tax of one dollar per acre on the amount 
 of land they held. The board of managers of the lottery also 
 induced Adam Snyder to introduce a bill In Congress seeking 
 a grant of all the drowned or unentered lands in the bottom 
 to the state. The project to improve the American Bottom 
 failed because the promoters were unable to sell the lottery 
 tickets, even though advertisements announcing their sale were 
 widely circulated for three or four years.-*' 
 
 River improvement was also receiving its share of attention. 
 On May 12 contracts were let at Dixon for constructing a 
 stone lock and three-fourths of a mile of canal along the lower 
 rapids of the Rock river. From August 10 to 22 bids were 
 received by Milton K. Alexander and Thomas H. Blake, com- 
 missioners for the states of Illinois and Indiana, at their office 
 in Mount Carmel, for the construction of a steamboat lock 
 and a dam across the Wabash river at the foot of the Grand 
 Rapids.-' The work was to cost upwards of $150,000. Colo- 
 nel William C. Greenup, principal assistant engineer for the 
 second judicial district, reported to William Kinney on July 17 
 that surveys of the Kaskaskia river had been completed from 
 its mouth to the city of Vandalia.-^ He estimated that the 
 
 -^ Sangamo Journal, January 12, 1839. 
 
 -^Illinois State Register, December 7, 1838; Illinois State Lottery, 1839, a two 
 page circular; Chicago Democrat, July 17, 1840. 
 
 -'' Illinois State Register, March 9, June i, August 3, 1838. 
 -^ Ibid., July 13, August 24, 1838.
 
 ADMINISTRATION AND CONSTRUCTION 85 
 
 river could be improved for 180 miles of Its course so as to 
 give it a navigable depth of three feet at a cost of $19,536.79. 
 The people of Athens displayed their interest in the project by 
 giving a large public dinner in honor of engineer Greenup and 
 commissioner Kinney at the conclusion of the surveys."^ No 
 really worthwhile improvement was accomplished on any of 
 the rivers. 
 
 As construction was undertaken on the railroads terminating 
 on the eastern boundary of the state, it was seen that they 
 would be practically useless without connections with their 
 intended termini in the state of Indiana. At their meeting held 
 in December, 1837, the commissioners of public works passed 
 resolutions requesting the state of Indiana to build railroads 
 from the Wabash and Erie Canal to the state line in the direc- 
 tion of Danville, from New Albany on the Ohio to a point on 
 the Wabash opposite Mount Carmel, and from Terre Haute 
 to the state line to connect with the Central Branch Railroad 
 In Illinois."" The question was taken up for consideration by 
 the legislature In its session during 1 838-1 839. A joint resolu- 
 tion was passed by the two houses requesting the legislature of 
 Indiana, then in session, to take some action in regard to the 
 extension of the Northern Cross and the Central Branch rail- 
 roads to their intended terminals. ^^ If Indiana was unwilling 
 to undertake the construction, a request for a grant of the right 
 of way was made to allow Illinois to do it. A law was passed 
 at the same session authorizing the board of public works to 
 survey and construct the continuation of the eastern ends of 
 the Northern Cross and the Central Branch railroads Into In- 
 diana as soon as they were officially Informed that the state 
 of Indiana had granted the right of way.^- 
 
 The rapid progress made on the various railroads In 1838 
 and the apparent success of the system led to numerous de- 
 mands for Its enlargement. Such demands continued to be 
 heard from sections which had failed to have their projects 
 
 -^ Ibid., August 10, 1838. 
 
 ^^ Ibid., December 9, 1837. 
 
 ^^ House Journal, 1838-1839, 86; Senate Journal, 1838-1839, 64, 66. 
 
 ^- Laivs of Illinois, 1839, 96.
 
 86 ILLINOIS INTERNAL IMPROVEMENTS 
 
 incorporated into the system in 1837 as long as the state could 
 borrow money to carry on construction. In spite of forebod- 
 ings of difficulty in state finances, the general assembly of 
 1 838-1 839 not only did not repeal or modify the extensive 
 system, but in an amendatory law, made further specific appro- 
 priations and authorized additional works involving an outlay 
 of nearly a million dollars. ^^ The new appropriations included 
 $50,000 to improve the Rock river; $150,000 for the Little 
 Wabash; $20,000 for the Great Western Mail Route; 
 $100,000 for a railroad from Rushville to the Illinois river 
 at Erie; $20,000 for the Big Muddy river; $7,000 for the 
 Embarrass river; $5,000 for the Spoon river; and $10,000 for 
 a road from Cahokia creek to Kaskaskia. In addition to these 
 specific appropriations, authorization was made for extending 
 the improvement of the Illinois river up to the city of Ottawa 
 and the construction of a lateral branch railroad from some 
 eligible point on the Alton and Shelbyville line between Hills- 
 boro and Alton to Carlinville in Macoupin county. The same 
 act permitted the board of public works to extend the time 
 prescribed to contractors for completing their contracts, when- 
 ever, in the opinion of the board and the acting commissioner 
 on the line, the interest of the state would not be injured by 
 the extension. 
 
 Suggestions for enlarging the internal improvement system 
 were also made by the board of public works. In a report 
 made to the house of representatives on January 1 1, 1839, the 
 board recommended that a turnpike be constructed from 
 Charleston to the Wabash river and that either a canal or 
 railroad should be built around the Des Moines rapids in the 
 Mississippi river. ^* The house committee on internal improve- 
 ments could not recommend construction of the latter work by 
 the state, but suggested that a private company might build 
 it. No action was taken by the legislature on either project. 
 
 The desire for internal improvements caused many private 
 enterprises to be projected at the same time as the state sys- 
 
 ^^ Ibid., 1839, 89-95, 285. 
 
 ^* Internal Improvement Reports, 1838-1839, report of the board of public 
 works relative to the survey of a route from Charleston to the Wabash river, 2.
 
 ADMINISTRATION AND CONSTRUCTION 87 
 
 tern. A Beardstown and Sangamon canal was a popular proj- 
 ect in the Sangamon country. On December 28, 1835, a 
 company with a capital of $300,000 was chartered to under- 
 take the construction of a canal from Beardstown to the San- 
 gamon and then to improve the river through Sangamon 
 county into Macon county. ^^ A year later engineer William 
 Pollock, who had surveyed the route, reported to the directors 
 of the company that such a canal would cost $811,082.^^ In 
 1837 and again in 1838, the project received favorable notice 
 in the Springfield papers. 
 
 Among the other projects was one for a railroad from Alton 
 to Springfield. The Sangamo Journal pointed out in an edi- 
 torial on November 24, 1838, that the importance of this 
 enterprise was not duly considered when the legislature passed 
 the internal improvement law. It declared that the railroad 
 then under construction from Springfield to the Illinois river 
 was of little real advantage because in dry weather the Illinois 
 became closed to navigation so that the produce from Sanga- 
 mon county would have to be taken to Alton in wagons as 
 formerly. A public meeting held at Alton on November 30, 
 1838, passed a resolution stating that it was desirous to have 
 the Alton and Springfield railroad identified with the general 
 improvement system of the state. 
 
 Private enterprises in other sections of the state included 
 a project for a railroad from Bloomington to Rock Island by 
 way of Hennepin.^^ In the southern part of the state the vil- 
 lage of Caledonia sought to rival Cairo as the terminal of the 
 Illinois Central Railroad. At the special session of the legisla- 
 ture in 1837 a company was chartered to construct a railroad 
 from Caledonia on the Ohio, to intersect the Central at Jones- 
 boro or some convenient point south of Jonesboro.^^ It was 
 thought that since Caledonia was located on high ground it 
 would have an advantage over Cairo which was situated in a 
 
 35 Lfl'U'j of Illinois, 1836, 97-101. 
 
 ^^ Illinois State Register, September 15, 1837; Sangamo Journal, January 6, 
 1837, July 7, 1838. 
 
 ^' Alton Telegraph, May 9, December 8, 1838. 
 
 ^^ Laivs of Illinois, 1837, special session, 36-39; Illinois State Register, June 
 15, 1838.
 
 88 ILLINOIS INTERNAL IMPROVEMENTS 
 
 marsh at the confluence of the Ohio and the Mississippi. The 
 stock of the Caledonia Railroad Company was put on sale in 
 New York on July i6, 1838, but there were no buyers. An 
 interesting enterprise though not of any great significance was 
 the railroad constructed by Ex-Governor Reynolds and some 
 of his friends from lUinoistown to the Mississippi opposite St. 
 Louis. ^^ This railroad, built with wooden rail and operated 
 by horse-power, was used to convey coal from the bluff to the 
 bank of the Mississippi whence it was ferried to St. Louis. 
 
 The administration of the internal improvement act was 
 attended by much difliculty because of the provision which re- 
 quired simultaneous construction everywhere at once and the 
 people living along those sections which were not immediately 
 put under contract soon became impatient and sought to bring 
 pressure upon the commissioners for a letting of contracts on 
 the line in which they had an interest. The first of numerous 
 meetings held to rush construction on particular projects met 
 at Springfield on April 10, 1837, for the purpose of calling on 
 the people living along the line of the Northern Cross Rail- 
 road to make "a long pull and strong pull and a pull together" 
 for that particular road.'*'' 
 
 An assembly of Union county residents held at Jonesboro 
 on July I, passed a resolution declaring that the Illinois Cen- 
 tral Railroad Company should surrender its charter so that the 
 state could begin construction on the Central Railroad.*^ On 
 November 21, delegates from Wayne, Edwards, and Wabash 
 counties met at Mount Carmel to memorialize commissioner 
 Milton K. Alexander for an early letting of contracts on the 
 eastern end of the Alton and Mount Carmel Railroad.'*- It 
 was pointed out that the Mount Carmel and Alton Railroad 
 Company was the first private company to give up its charter 
 involving works of the state system. 
 
 The people along the Peoria and Bloomington Railroad 
 were especially active in pushing their interests. At a meeting 
 
 ^^ Ibid., September 15, 1837, March 2, 1838. 
 ^^ Sangamo Journal, April 15, 1837. 
 *^ Illinois State Register, July 14, 1837. 
 *■- Ibid., December 22, 1837.
 
 ADMINISTRATION AND CONSTRUCTION 89 
 
 held at Peoria on January 29, 1838, a committee was ap- 
 pointed to communicate with William Kinney and inquire as to 
 why the railroad from Peoria to Bloomington had not been 
 put under contract/^ The committee sent a letter on February 
 7, to which Kinney replied on February 24, that the contract 
 would be let in due time. He sought to quiet his petitioners by 
 pointing out that the southern part of the state was not com- 
 plaining even though it had not received a fair share of the 
 contracts. They, however, carried their grievance to the legis- 
 lature when it convened in December. The senate sent the 
 board of public works a resolution calling for information in 
 relation to the difficulty."** The board reported on January 28, 
 1839, that it had been following a course of distributing the 
 work on the various roads in the different parts of the state so 
 as not to give any one work or any separate portion of the 
 state an advantage over another; in making this distribution 
 it was found that nine miles was all that in justice could be 
 awarded to the road in question. The senate laid the report 
 on the table. 
 
 On May 12, 1838, residents of Fayette county met at Van- 
 dalla in an effort to speed up construction on the Illinois Cen- 
 tral Railroad.*^ Resolutions were passed expressing gratifica- 
 tion at the vigorous prosecution of the work at the extremes 
 of the road, and requesting the board of public works to put 
 a portion of the railroad under contract at Vandalia, the "cen- 
 ter" of the project. Commissioner Kinney forthwith adver- 
 tised a letting on August 13 for three miles of the road at 
 Vandalia."**" 
 
 In a number of instances serious problems arose in connec- 
 tion with locating the routes of the various railroads. The 
 internal improvement act made no provision except that they 
 were to be built on the most direct and eligible routes between 
 their specified termini. It was intended that the final decisions 
 were to be made on the advice of the engineers by the board 
 
 ■^^ Ibid., March 30, 1838. 
 
 ** Reports General Assembly, 1838-1839, letter of William Kinney to the 
 Senate, January 28, 1839, i. 
 
 '^^ Illinois State Register, May 18, 1838. 
 *^ Ibid., June 29, 1838.
 
 90 ILLINOIS INTERNAL IMPROVEMENTS 
 
 of public works. It was but natural that local interests should 
 seek to have the railroads located to their own advantage. 
 
 The first case arose in connection with the routing of the 
 Northern Cross through Jacksonville. After the contracts had 
 been let providing for the construction of the railroad on a 
 route alongside the town, the inhabitants of Jacksonville made 
 a request that it should be routed through the principal street 
 with a depot on the public square.^^ The board of public works 
 in their biennial meeting of December, 1837, issued a report 
 stating that the request could not be met for a change would 
 involve the state in expenses which might have been avoided 
 if the people of Jacksonville had made their wishes known at 
 an earlier date. Still dissatisfied, the people of Jacksonville 
 assembled in a public meeting to present their grievances. 
 Murray McConnel, the acting commissioner for the first judi- 
 cial district was in attendance and assured the gathering, that 
 if, after the resurvey which he intended to have made, the 
 engineers should find the proposed route through the town 
 better than the original one, he would endeavor to have the 
 route altered. When the engineers reported adversely on the 
 change, the people of Jacksonville again met and appointed a 
 committee to comunicate their sentiments to McConnel. In an 
 exchange of letters during April and May, 1838, the commit- 
 tee claimed the public square route would be cheaper by 
 $29,000, and charged McConnel with laying out the route so 
 that the railroad would pass his house. In his reply McConnel 
 stated that the route through the square would be 600 feet 
 longer and cost $1,700 more than the line originally adopted, 
 and in any case, one commissioner alone could not change the 
 route. 
 
 Another case involving the Northern Cross road pertained 
 to the crossing of the Illinois river. When a rumor was heard 
 that the Illinois might be crossed at Naples instead of Mere- 
 dosia, the inhabitants of Mount Sterling met in a public meet- 
 ing on January 1 1, 1838, to make a protest.^* A committee was 
 
 *'^ Ibid., December 9, 1837, February 2, May 25, 1838. 
 *^Ihid., March 2, 1838.
 
 ADMINISTRATION AND CONSTRUCTION 9 1 
 
 appointed to call upon William Kinney to convene a special 
 meeting of the board of public works to put the road under 
 contract from the Illinois river to Mount Sterling. Kinney 
 replied on January 27 that were the board to meet at the call 
 of Mount Sterling, it would have to meet at the request of 
 every village in the state. 
 
 The board of public works had to contend with local inter- 
 ests at two points in locating the route of the Illinois Central. 
 On May 24, 1838, the citizens of Galena held a meeting and 
 appointed a committee of five to communicate with James W. 
 Stephenson, commissioner of the sixth district, concerning the 
 location of the termination of the Central road on the eastern 
 bank of the Fever river.*^ The committee in its communica- 
 tions to Stephenson stated that nineteen-twentieths of the 
 people of Galena wanted the railroad to terminate on the 
 western bank of the river. On May 28 the trustee of the town 
 sent a protest to the commissioners, who replied that no termi- 
 nation had been decided on and that the action of the citizens 
 of Galena had been premature. Stephenson recommended that 
 a depot should be built on both sides of the river. The legisla- 
 ture decided the question on March 4, 1839, by passing an 
 act authorizing the board of public works to locate the north- 
 ern terminal of the Illinois Central on the west side of the 
 Fever river and routing the railroad across the river at 
 some point between Lampkin's ferry landing and Frederick's 
 Point.'° 
 
 The location of the southern end of the Central road from 
 Vandalia to Cairo also created a conflict among local Interests. 
 After the board of public works had decided on the route and 
 let twenty-three miles of contract, the citizens of Alexander 
 county presented a petition to the legislature in an effort to 
 secure a rerouting.^^ The house committee on internal im- 
 
 '^^ Internal Improvement Reports, 1838-1839, report of the board of public 
 works to the house of representatives, January 29, 1839, 5-9. 
 
 50 Laivs of Illinois, 1839, 99. 
 
 ^'^ Illinois State Register, February 5, 8, 1839; Internal Improvement Reports, 
 1838-1839, report of the select committee on the proposed change of the southern 
 termination of the Centra! Railroad submitted to the house of representatives, 
 January 28, 1839, 1-6.
 
 92 ILLINOIS INTERNAL IMPROVEMENTS 
 
 provements, to which the petition was referred, recommended 
 that the route should not be changed as it would add $200,000 
 to the cost of the road. It pointed out that a change would set 
 a bad precedent, and result in a general movement for altera- 
 tions. The question was then referred to a select committee 
 for consideration. James Copeland of Johnson county report- 
 ing for a majority of the select committee, recommended that 
 the railroad should deviate from a straight line south of Van- 
 dalia, so as to pass through Salem, Mount Vernon, Frankfort, 
 and Vienna, all of which were county seats. He also strongly 
 recommended a termination at some point on the Ohio between 
 its mouth and the Grand Chain so as to avoid six miles of em- 
 bankment varying from eight to more than twenty feet in 
 height together with an expensive bridge over the Cache river 
 which would be necessary if the road was to terminate at Cairo 
 according to the original plans. °" A bill embodying these 
 recommendations was introduced in the house but failed to go 
 to the third reading.^^ 
 
 The city of Cairo deserves some attention because of its 
 connection with the internal improvement system. The idea 
 of a city at the confluence of the Ohio and Mississippi rivers 
 originated in 181 8 when John Comegys of Baltimore, Shad- 
 rach Bond, and others entered 1800 acres of land at the mouth 
 of the Ohio, and obtained from the territorial legislature a 
 charter under the name of the "City and Bank of Cairo" for 
 the purpose of building a city which would be the commercial 
 depot for the western states.^"* Arrangements were being made 
 by the company to secure capital abroad, when the sudden 
 death of Comegys, the master spirit of the enterprise, stopped 
 further action and the land reverted to the government. 
 
 In 1835, D. B. Holbrook, Sidney Breese, David J. Baker, 
 Miles A. Gilbert, and others entered the forfeited bank tract, 
 
 52 In a minority report R. G. Murphy of Perry county contended that the route 
 chosen by the board of public works was but 155 miles in length while the 
 change would mean an increase to i6s miles and an additional expense of 
 $80,000. He pointed out that the state had already expended $40,000 and made 
 contracts binding on the state amounting in the aggregate to $277,794. Ibid., 9-10. 
 
 ^^ House Journal, 1838-1839, 296, 427. 
 
 ^■^ Laivs of Territorial Illinois, 1818, 72-82.
 
 ADMINISTRATION AND CONSTRUCTION 93 
 
 and by chartering the Illinois Central Railroad Company in 
 1836 they hoped to build a railroad from the termination of 
 the Illinois and Michigan Canal to the mouth of the Ohio 
 with Cairo as its southern terminus developing into a great 
 commercial metropolis.''^ When the state created the internal 
 improvement system in 1837, the Illinois Central Railroad 
 Company relinquished its charter with the understanding that 
 the Central Railroad of the state system would terminate at 
 the "City of Cairo." '^ Holbrook and his fellow promoters 
 then made further purchases of land and incorporated the 
 Cairo City and Canal Company. The act of incorporation 
 authorized the company to lay off its land into lots for a town 
 to be known as the "City of Cairo," to construct levees and 
 embankments for the security of the city, and to construct a 
 canal through the city to the Cache river. ^^ A large loan was 
 negotiated in England in 1836 and expended on drydocks, 
 levees, mills, foundries, and stores by Holbrook and his asso- 
 ciates.^^ By deceiving the members of the general assembly 
 who were unacquainted with local situations of the country, 
 they had gotten the name of Cairo inserted in the act of 1837 
 as the terminating point of the Central Railroad. When the 
 state undertook to construct that road, they insisted on the 
 termination remaining at Cairo even though the state was to 
 be compelled to raise an embankment to a height of from eight 
 to twenty feet over eight miles of alluvial bottom, build an 
 expensive bridge over the Cache river, and raise the depot in 
 the city many feet, whereas, if the bill had become a law with- 
 out naming any particular point, the railroad could have been 
 located on better ground and terminated on land that never 
 
 ^^ Illinois State Register, December 13, 1836; Laivs of Illinois, 1836, 129-35. 
 
 ^® Letter of D. B. Holbrook to the house of representatives, December 22, 
 1836. Included in miscellaneous assembly papers now in possession of the state 
 library, archives division, Springfield. 
 
 ^^ Laivs of Illinois, 1837, 302. 
 
 ^^ Illinois State Register, December 28, 1838, February 5, May 10, 1839. A 
 letter written on February 3, 1841, by S. Howard to W. Strickland, a Phila- 
 delphia architect, and published in the Sangamo Journal on April 9, 1841, de- 
 scribed the progress made on the City of Cairo at that time. Five hundred men 
 were employed on building the levee. Two sawmills and a foundry were in 
 operation. A drydock and two steamboats were under construction. Three 
 stores were completed and doing business.
 
 94 ILLINOIS INTERNAL IMPROVEMENTS 
 
 overflowed. °'' With the collapse of the Internal improvement 
 system the enterprise at Cairo also failed. 
 
 That the administration of the internal improvement system 
 would be attended by instances of misconduct was to be ex- 
 pected. It was utterly improbable that among the great num- 
 ber of public officers and agents required to carry on such an 
 extensive system that there would not be some who would 
 prove unfaithful to the trust imposed upon them. Some of the 
 commissioners were guilty of neglect and mismanagement, if 
 not of outright fraud, in conducting the affairs of their office. 
 At the 1 838-1 839 session of the legislature a joint select com- 
 mittee, consisting of William Gatewood, John S. Hacker, 
 Orville H. Browning, and William A. Richardson from the 
 senate, William F. Thornton, John Calhoun, Jeffrey Robinson, 
 John J. Hardin, William W. Roman, Joseph Naper, and 
 Augustus C. French from the house, was appointed to investi- 
 gate charges of fraud and incompetence which had been 
 brought against some of the commissioners. ^° A majority of 
 the committee presented the senate on February 20, 1839, with 
 a report which listed the charges that had been brought against 
 the various commissioners during the investigation, but made 
 no comment or recommendation, except to express the opinion 
 that the practice of the commissioners of expending money on 
 other works than those for which it was drawn should be cor- 
 rected.^^ The report was laid on the table. 
 
 A minority of the select committee, consisting of Browning, 
 Roman and Hardin, made a lengthy report on March i, in 
 which they discussed the different charges made against vari- 
 ous internal improvement officials.*^" The first case before the 
 Investigating committee concerned the purchase of a tract of 
 land in Meredosia of James E. and Daniel Waldo by Murray 
 McConnel, while he was acting commissioner of the first judi- 
 
 ^^ Internal Improvement Reports, 1838-1839, report of the select committee on 
 the proposed change of the southern termination of the Central Railroad sub- 
 mitted to the house of representatives, January 28, 1839, 5. 
 
 ^'^ House Journal, 1838-1839, 150, 153; Senate Journal, 1838-1839, 117, 126. 
 
 ^"^ Ibid., 1838-1839, 371; Reports General Assembly, 1838-1839, report of the 
 joint select committee appointed to examine the offices of the fund commissioners 
 and the board of public works, 3-10. 
 
 62 Ibid., 124-30.
 
 ADMINISTRATION AND CONSTRUCTION 95 
 
 cial district. During the investigation a bond was produced 
 purported to have been executed by McConnel to the Waldos 
 on January 5, 1837, in which he agreed that if they would buy 
 the tract of land in question from Joseph Duncan at a sum not 
 exceeding $25,000, he would take one-third of the purchase 
 at cost. This bond, it was admitted, was executed by Mc- 
 Connel. A question arose, however, as to the time of its execu- 
 tion. The date of the bond was prior to the passage of the 
 internal improvement law or the election of the commissioners. 
 James Waldo testified that it was written by himself on April 
 21, 1837, and was antedated because, in a contract which he 
 and Daniel Waldo had made a short time previous with Mc- 
 Connel for the purchase of the land, he had been requested by 
 McConnel to date it in January so as to circumvent the forty- 
 seventh section of the internal improvement law which pro- 
 hibited commissioners from purchasing property situated ad- 
 jacent to the line of the railroads. There was a provision in 
 the bond permitting Duncan to exclude a number of lots which 
 he intended to donate to Illinois College. Ex-Governor Dun- 
 can testified that his intention to donate the lots to Illinois 
 College could not have become known to McConnel or Waldo 
 until the sale was made in April, 1837. Obviously then, that 
 provision could not have been put into the contract if it had 
 been made in January. 
 
 The Northern Cross Railroad, as first located in the town 
 of Meredosia in 1837 by McConnel, passed through the land 
 he had purchased of Duncan. After the contracts were let, 
 there was some dissatisfaction with the location of the road 
 on the part of the contractors, and, at their request, the board 
 of public works authorized the chief engineer to locate it 
 where he thought best. He accordingly changed the line so as 
 to strike the Illinois river much lower down. By this altera- 
 tion of the route, no part of the land purchased by McConnel 
 adjoined the railroad, and he repeatedly displayed his dis- 
 pleasure at the change. The minority of the select committee 
 expressed the opinion that if the railroad had continued to 
 remain as first located, there would have been a direct viola-
 
 96 ILLINOIS INTERNAL IMPROVEMENTS 
 
 tion of the forty-seventh section of the internal improvement 
 act. The antedating of the bond and the fact that the contract 
 with the Waldos was made before the road was located was 
 fairly conclusive evidence of an intention on the part of Mc- 
 Connel to evade the act for the purpose of private pecuniary 
 advantage. 
 
 A second charge made against McConnel accused him of 
 locating the Naples branch of the Northern Cross Railroad so 
 as to make the route longer and more costly by $18,000 than 
 the one recommended by the principal engineer. The report 
 of Browning, Roman, and Hardin expressed the opinion that 
 the commissioner acted improperly in selecting the longer 
 route contrary to the advice of the chief engineer. 
 
 In a third charge McConnel was accused of having violated 
 the fiftieth section of the internal improvement act, because 
 he did not obtain the relinquishment of the right of way of the 
 Naples and Jacksonville Railroad Company before the North- 
 ern Cross Railroad was located down Wolf Run. Since it had 
 a charter for constructing a railroad through Wolf Run from 
 Jacksonville to Naples, and had expended some money on the 
 road, the company claimed the state could not build a railroad 
 to either Naples or Meredosia from Jacksonville without pay- 
 ing it damages. Miron Leslie, the president of the company, 
 suggested to McConnel that the state should take over the 
 route held by the company and pay it for the work done.*'^ 
 The evidence presented in the investigation brought out the 
 information that the two owners and controllers of the Naples 
 and Jacksonville Railroad Company, Leslie and Collins, had 
 been contractors on the Northern Cross road between Jackson- 
 ville and Meredosia, and that soon after the contract was 
 let in July, 1837, they commenced work on their own road 
 through Wolf Run. Later they gave up their contract after a 
 large part of the work had been done, and then they claimed 
 damages from the state for constructing the Northern Cross 
 road over the very ground which they themselves had worked. 
 The minority committee expressed the view that such a scheme 
 
 '^^ Internal Improvement Reports, 1838-1839, report of the board of public 
 works, December 26, 1838, 43-44.
 
 ADMINISTRATION AND CONSTRUCTION 97 
 
 to make money out of the state should have been discoun- 
 tenanced by the commissioner. 
 
 The final charge against McConnel involved the purchase 
 of a lot in Jacksonville on the immediate line of the Northern 
 Cross Railroad. The purchase was supposed to have been 
 made a few days prior to the location of the road being pub- 
 licly made known. S. C. Fogus, the former owner of the lot, 
 testified that if he had known the road was to be located where 
 it was, he would not have sold for the price which he obtained 
 for the land. McConnel appeared to have been guilty of a 
 direct violation of the provisions of the forty-seventh section 
 of the internal improvement act in making this purchase. 
 
 The committee was requested also to inquire whether Wil- 
 liam Kinney, the commissioner of the second judicial district, 
 had violated the eighteenth section of the internal improve- 
 ment act in changing the location of the Great Western Mail 
 Route in Belleville and at other points. The evidence pre- 
 sented to the committee showed that the change was demanded 
 by a majority of the citizens of the town. The question was 
 raised in this case whether a commissioner had the right to 
 change the location of a road to a more costly route when 
 private citizens agreed to make up the difference in cost be- 
 tween the two locations. The minority of the committee ex- 
 pressed the view that such a practice was exceedingly improper 
 because it would create a tendency to make private citizens bid 
 against each other for the location of a route. John Murray, 
 who requested the inquiry, did not charge Kinney with corrup- 
 tion, but thought that the law had been violated by an improper 
 interpretation. 
 
 Charges were also brought forward against the engineer 
 and commissioner in charge of the lettings made for the Peoria 
 and Warsaw on April 17, 1838, for improper conduct in not 
 giving the work to the lowest responsible bidder. The final 
 charge presented to the committee came from James Oakley 
 and Egbert Dewey, and accused A. R. Parker, resident en- 
 gineer on the Quincy and Meredosia route, of "incompetency" 
 — "neglect of duty" — "blindly yielding to the unwarrantable
 
 98 ILLINOIS INTERNAL IMPROVEMENTS 
 
 demands of individuals for work under contract, without re- 
 gard to rights and interests of the state" — "making false 
 returns of bills of expense" — and "a course of conduct to 
 assistant engineers insulting and dishonorable." ®* 
 
 The legislature took no action on the charges against the 
 commissioners, but laid the reports of the committee on the 
 table. Whig papers, including the Alton Telegraph, the Mount 
 Carmel Herald, the Sangamo Journal, and the Illinoisan 
 tended to play up the charges against the board of public 
 works, while the Democratic press, headed by the Illinois 
 State Register, was inclined to discount them. 
 
 Two years later another select committee was appointed to 
 investigate the contract for the improvement of the upper 
 rapids on the Rock river made on June 8, 1839, by John Dixon, 
 commissioner of the sixth judicial district, with E. G. 
 Nichols. "^^ The committee consisting of William J. Gatewood, 
 John Hamblin, and George W. Harrison, made a report of its 
 findings to the senate on February 19, 1841. The evidence 
 presented at the investigation disclosed that the bids for the 
 work on the Rock river had been let on May 29, 1839, while 
 the contract was dated June 8, 1839. Frederick R. Dutcher 
 testified that Nichols' bid had been for about $55,000 which 
 made it considerably lower than the engineer's estimate of 
 $60,000. The investigation disclosed, however, that Nichols' 
 contract as filed in the ofiice of the board of public works was 
 for $78,161.10. The contract was in the handwriting of Smith 
 Gilbraith, who was the private secretary of commissioner 
 John Dixon at the time of the letting. In the winter of 1839- 
 1840 Gilbraith and Nichols had formed a partnership and in 
 April, 1840, Gilbraith took over one-fourth of the Rock river 
 contract from Nichols. According to the testimony of Samuel 
 M. Bowman, Gilbraith made $8,000 out of the contract. 
 
 The select committee in its report recommended that the 
 attorney general take such steps to investigate further the 
 
 ^Reports General Assembly, 1838-1839, senate, report of the joint select 
 committee appointed to examine the offices of the fund commissioners and the 
 board of public works, 130. 
 
 ^^ fbid., 1840-1841, senate, 443-45.
 
 ADMINISTRATION AND CONSTRUCTION 99 
 
 contract as he might think best to arrive at the correct infor- 
 mation. With that the investigation was dropped. 
 
 As the year 1839 opened construction on the public works 
 system was being pushed forward at a rapid rate. Many addi- 
 tional contracts were let for work on the various lines.*'*' Dur- 
 ing the six months from December i, 1838, to June i, 1839, 
 expenditures by the board of public works amounted to 
 $672,808.27.*'' 
 
 The term of office for the first commissioners of the board 
 of public works expired on March i, 1839. Accordingly, on 
 February 19, the two houses of the legislature met in a joint 
 session to elect a new board, which resulted in the election of 
 Jesse B. Thomas for the first judicial district, John Hogan 
 for the second, Elijah Willard for the third, Milton K. 
 Alexander for the fourth. Hart Fellows for the fifth, John 
 Dixon for the sixth, and Ebenezer Peck for the seventh dis- 
 trict.^* Thus four members of the old board were re-elected. 
 The new board consisted of three Democrats, three Whigs, 
 and one independent.®^ 
 
 During the summer of 1839 the internal improvement fund 
 became exhausted because the fund commissioners were un- 
 able to make further sales of state bonds. On June 12, John 
 Tillson, one of the fund commissioners, wrote to Milton K. 
 Alexander to advise him that the board of public works should 
 let no more contracts until funds could be provided.^*' Pro- 
 posals that the contractors be paid In state bonds met with 
 disfavor because it was felt that such a measure would depress 
 state credit so that all hope of selling the bonds in the future 
 would be gone." The board of public works held a special 
 meeting at Springfield on August 22 and adopted an order 
 suspending all work under contract which did not form a con- 
 tinuous line of work."" 
 
 ^♦'Report of the board of public works, June 21, 1839, Illinois State Register, 
 August 24, 1839. 
 «" Ibid. 
 
 ^'^ House Journal, 1838-1839, 445-49; Senate Journal, 1838-1839, 355-60. 
 ^^ Illinois State Register, February 22, 1839. 
 ''^Reports General Assembly, 1839-1840, senate, 453. 
 ^1 Sangamo Journal, August 9, 1839. 
 ''-Reports General Assembly, 1839-1840, senate, 153.
 
 lOO ILLINOIS INTERNAL IMPROVEMENTS 
 
 The contractors were to receive payment for the work done 
 and for the losses which they incurred as result of the suspen- 
 sion of construction. Governor Carlin warmly endorsed the 
 action of the board and expressed regret that such action had 
 not been taken sooner.'"' Operations were suspended on prac- 
 tically all works by December of 1839. The board of public 
 works reported at that time that a total of $2,625,803.39 had 
 been spent on the public works and that $6,269,813.56 would 
 be needed to complete the system.'^* 
 
 Numerous requests for a special session led Governor Carlin 
 to convene the general assembly on December 9, for its first 
 meeting in Springfield. ^° After nearly two months of wran- 
 gling the legislature passed an act on February i, 1840, to 
 abolish the board of fund commissioners and the board of 
 public works. ^"^ A new board of public works of three members 
 was created, and empowered to settle and adjust all liabilities 
 incurred under the internal improvement system and to give 
 drafts to the contractors for the amounts due them. All en- 
 gineers and agents of the state were to be paid and discharged 
 except those needed to decide on the amount due the contrac- 
 tors, and any property belonging to the state which could not 
 be used or which would depreciate was to be sold. On the same 
 day that the act was approved the two houses of the legisla- 
 ture met in a joint session and elected to the new board, John 
 Hogan, Hart Fellows, and Josiah Beall, all Whigs. ^' 
 
 During 1840 those contractors who continued to work on 
 their contracts were paid in scrip. ^^ By December only two 
 contracts had not been surrendered, one of which was held 
 by N. Kennedy for work on the Central Railroad north of the 
 
 "^Illinois State Register, September 7, 1839. 
 
 '■* Reports General Assembly, 1839-1840, house, 314-25. 
 
 ''^ Alton Telegraph, October 26, 1839. 
 
 '^ Lav:s of Illinois, 1840, 93-96. 
 
 ~~ Illinois State Register, February 5, 1840; Senate Journal, 1839-1840, 242. 
 
 '^^ The total amount of scrip issued during 1840 by the board of public works 
 was $1,342,372.82. Only part of this was paid for actual work performed during 
 the year. $361,072.05 was due the contractors for back work performed the 
 previous year. $147,694.40 was awarded the contractors for cancelling contracts. 
 Internal Improvement Records, XVIII, 134-35; Reports General Assembly, 1839- 
 1840, senate, 131 ; 1840-1841, house, 146. In October, 1840, Springfield merchants 
 accepted the scrip at eighty-one and one-fourth cents on the dollar in payment 
 of goods. Illinois State Register, October 9, 1840.
 
 ADMINISTRATION AND CONSTRUCTION ID I 
 
 Illinois river at Peru, and the other by James F. Reed and 
 Samuel S. Brooks for work on the Alton and Mount Carmel 
 road between Alton and Edwardsville." 
 
 The report of the board of public works for December, 
 1840, showed that a total of $4,107,746.99 had been spent on 
 internal improvements/" The expenditures for the various im- 
 provements had been as follows: 
 
 Northern Cross Railroad $1,354,212.69 
 
 Illinois Central Railroad 1,016,904.89 
 
 Alton and Mount Carmel Railroad 353,599-67 
 
 Peoria and Warsaw Railroad 257,532.87 
 
 Alton and Shawneetown Railroad 183,434.83 
 
 Alton and Shelbyville Railroad 140,108.29 
 
 Central Branch Railroad 132,492.79 
 
 Bloomington and Mackinaw Railroad 104,985.28 
 
 Naples Branch Railroad 22,081.51 
 
 Rushville and Erie Railroad 6,370.01 
 
 Belleville and Lebanon Railroad 390.48 
 
 Rock river 123,991.09 
 
 Illinois river 82,781.09 
 
 Little Wabash river 46,530.59 
 
 Kaskaskia river 13,060.71 
 
 Great Wabash river 12,977.13 
 
 Embarrass river I93-50 
 
 Great Western Mail Route 244,547.43 
 
 Charleston and Wabash Turnpike 11,552.14 
 
 When the general assembly met in 1 840-1 841 all construc- 
 
 "^ Report of the board of public works, December 15, 1840, Reports General 
 
 Assembly, 1840-1841, house, 107-12. 
 
 ^^ Ibid., 112. John D. Whiteside, state treasurer, reported to the house of 
 
 representatives that a total of $78,898.31 had been expended for buildings on 
 
 the railroads, as follows: 
 
 Central office — Springfield $ 3,988.90 
 
 Office — Jacksonville 31287.55 
 
 Office — Jonesboro 3,000.00 
 
 Office — Warsaw 450.00 
 
 Depot — Shawneetown 17,195.52 
 
 Depot — Meredosia 13,335-99 
 
 Depot — Equality 1 1,237.86 
 
 Depot — Naples 9,730.29 
 
 Depot — Morgan City 5,454.13 
 
 Engine house — Meredosia 6,994.75 
 
 Engine house — Jacksonville 4,123.32 
 
 Engineer office — Wolf Run 200.00 
 
 Whiteside reported that the cost of right of way for the railroads amounted to 
 
 $70,910.91. He reported that the cost of dam sites on the Little Wabash and 
 
 Rock rivers was $55,751.50. Ibid., 133, 136-41.
 
 102 ILLINOIS INTERNAL IMPROVEMENTS 
 
 tion work had stopped on the public works system. An act was 
 passed to abolish the board of public works and to stop the 
 further issue of state scrip or drafts.-^ The treasurer of the 
 state was to adjust the accounts of the commissioners and ap- 
 point agents to take care of the state property. John D. 
 Whiteside, state treasurer, accordingly appointed Elijah Wil- 
 lard, F. G, Murray, Cornelius Ludlum, and Isaac Dement.®^ 
 
 On February 26, i 841 , the legislature enacted a law appoint- 
 ing the auditor, the treasurer, and the secretary of state a 
 board of auditors to settle the accounts of the contractors 
 whose claims had not been passed upon or rejected by the 
 board of public works. ^^ The auditors were also to settle with 
 the engineers who had been in the employ of the state and who 
 had not received compensation for their services.^* Thus was 
 the internal improvement system brought to an end, but the 
 problem of paying the principal and interest on a huge debt 
 remained to be solved. ^^ 
 
 Of the large internal improvement system only one railroad, 
 that leading from Meredosia to Springfield on the Northern 
 Cross line, was actually completed. The surveys of this sec- 
 tion of the Northern Cross were begun in May, 1837, and the 
 contracts for the construction were awarded on July loth by 
 commissioner Murray McConnel.*" Construction was to be 
 started by August i, and the contractors were to supply the 
 road with locomotives and cars ready for use at cost de- 
 livered.®^ On July 20, 1837, the contractors placed an ad- 
 vertisement in a Jacksonville newspaper for "one thousand, 
 good sober and industrious" workers.** The pay for the 
 laborers was to be $20 per month with board. 
 
 Construction on the road was carried on steadily during the 
 
 81 Laius of Illinois, 1841, 166-67. 
 
 ^-Reports General Assembly, 1840-1841, senate, 390. 
 
 *3 LaiJis of Illinois, 1841, 38. 
 
 *•* The auditors reported to the governor on February 7, 1843, that claims 
 amounting to $83,244.52 had been allowed the contractors. Reports General 
 Assembly, 1842-1843, house, 385-90. 
 
 ^■■^ On December 8, 1842, the internal improvement debt was $6,014,749.53, 
 exclusive of the canal debt. Ibid., 1842-1843, senate, 22. 
 
 *^6 Supra, 80. 
 
 ^^ Reports General Assembly, 1838-1839, senate, 48-49. 
 
 ^^ Illinois Patriot, July 20, 1837.
 
 ADMINISTRATION AND CONSTRUCTION IO3 
 
 remainder of 1837 and throughout 1838. By December, 1838, 
 grading was practically completed between Meredosia and 
 Jacksonville, although a heavy embankment was necessary at 
 the Illinois river. ^^ Construction on the superstructure was 
 begun in January, 1838. Lineal mud sills or wooden sills of 
 oak, locust or walnut hewn to a width of eight inches and a 
 thickness of six inches were laid and on these cross ties were 
 placed. In February the first longitudinal stringers were laid 
 upon which the iron scrap rail was spiked.^** The scrap rail 
 consisted of strips of iron, two and a half inches wide and five- 
 eights inches thick. 
 
 James M. Bucklin, the construction engineer, recommended 
 the use of heavy iron rails instead of the strips of scrap iron." 
 The legislature had provided for the cheaper rails so no 
 change could be made by the board of public works. The use 
 of the light rail was unfortunate. It caused the operators of 
 the trains continuous trouble by coming loose from the timbers. 
 
 The gauge of the Northern Cross track was four feet, nine 
 inches. This differed slightly from the specifications of the 
 legislature, which called for a width of four feet, eight inches. 
 Engineer Bucklin felt justified in making the change however, 
 and thought he had not violated the spirit of the law since four 
 feet, nine Inches was the gauge used for most railroads in the 
 United States.^' 
 
 Shipments of railroad Iron arrived in Illinois from England 
 in the spring of 1838.''^ The first rails were laid In May of 
 that year. Many of the spikes used for fastening the rails were 
 of poor quality and had to be discarded.®* 
 
 By November, 1838, nine miles of track had been laid from 
 
 ^^ Reports General Assembly, 1838-1839, house, report of the board of public 
 works, December 26, 1838, 21. 
 
 ^''Ibid., 70. 
 
 9i/*/i., 32. 
 
 92 Ibid. 
 
 9^ The board of public works made an effort to get Congress to pass a law 
 to allow the importation of railroad iron duty free for the internal improvement 
 system. Letters were sent to each of the members of Congress from Illinois 
 requesting that they use their influence to get a law passed. Congress took no 
 action. Illinois State Register, January 25, 1838. 
 
 '•>* Reports General Assembly, 1838-1839, house, report of the board of public 
 works, December 26, 1838, 32. The railroad iron cost $54 per ton. Sangamo 
 Journal, June 2, 1838.
 
 I04 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Meredosia east toward Jacksonville. The Experiment, the 
 first locomotive that ever turned a wheel in the Mississippi 
 valley, was placed on the track at Meredosia, November 8, 
 1838.''' On that day the locomotive was given a trial run over 
 the nine miles of track, with Governor Duncan, commissioner 
 Murray McConnel, contractors James Dunlap, Charles Col- 
 lins, Miron Leslie, and Thomas T. January, and the chief 
 engineer, George P. Plant, on board. 
 
 Construction on the line toward Jacksonville reached the 
 halfway point at Morgan City by July, 1839.^^ The en- 
 tire twenty-four miles between Meredosia and Jacksonville 
 was completed by the end of the year at a total cost of 
 $436,233.33.°^ This figure includes the expenditures on loco- 
 motives, cars, engine houses, depots, and right of way. The 
 total cost for construction of track alone from Meredosia to 
 Jacksonville was $396,000.''^ 
 
 Soon after the first locomotive was put on the line, another 
 locomotive and some passenger, baggage and freight cars ar- 
 rived and were put into use. During the first year of operation 
 the contractors were the major patrons of the road. The 
 charges paid for hauling supplies being used in construction of 
 the line made up nearly ninety per cent of the receipts during 
 1839.^^ 
 
 Regular payments, generally monthly, were made by the 
 board of public works for construction from 1837 to 1839.^*^'^ 
 
 ^^ Illinois State Register, November 9, 1838. The locomotive weighed eight 
 and one-half tons. It was shipped from Philadelphia by ocean to New Orleans, 
 thence up the Mississippi river to St. Louis, and from there by way of the 
 Illinois river to Meredosia. 
 
 ^6 Report of the board of public works, December 13, 1839, Reports General 
 Assembly, 1839-1840, house, i6o. 
 
 ^'^ Report of the board of public works, January 8, 1840, Ibid., 1839-1840, 
 senate, 228. 
 
 ^^ Ibid., 1839-1840, senate, 427. The original estimate of cost made by James 
 M. Bucklin in July, 1837, was $246,215.90. Ibid., 1838-1839, senate, report of the 
 joint select committee of investigation appointed to examine the offices of the 
 fund commissioners and board of public works, 51. 
 
 99 Report from the board of public works, January 8, 1839, Ibid., 1839-1840, 
 senate, 228. An advertisement was put regularly for several months in the 
 Illinois Advocate during the latter part of 1839 concerning the passenger service 
 between Meredosia and Morgan City. The train made two trips daily, leaving 
 Meredosia at 7:00 A.M. and 2:00 P.M., and leaving Morgan City at 9:00 A.M. 
 and 4:00 P.M. 
 
 ^''oibid., 1838-1839, senate, abstracts of disbursements by the commissioners of 
 public works, 6-22.
 
 ADMINISTRATION AND CONSTRUCTION IO5 
 
 When the internal improvement fund became exhausted dur- 
 ing the summer of 1839, some contractors suspended opera- 
 tions on the work they had in progress. Others continued their 
 construction with the hope that the state could soon provide 
 funds. Construction on the Northern Cross line was suspended 
 in March, 1840."^ 
 
 During the special session of the legislature called to un- 
 tangle the Internal improvement problem, an act was passed 
 on February i, 1840, which ordered the board of public works 
 to settle with the contractors/"" Payment was to be made for 
 work done and the contractors were allowed to make claims 
 against the state for losses suffered through the suspension of 
 construction. The firm of January and Dunlap whose contract 
 on the Northern Cross line was terminated before completion 
 was awarded $15,000 for damages/°^ 
 
 Operation of the short line from Meredosia to Jacksonville 
 proved to be unprofitable. For the six months period from 
 June 20, 1840, to November 20, 1840, William H. Delph, the 
 engineer in charge of the road, reported $1,744.02 in receipts 
 and $1,849.32 for operation expenses plus $400 to $600 for 
 repairs.^** Supporters of the internal improvement system 
 agitated for completion of the Northern Cross Railroad from 
 Jacksonville to Springfield, It was argued that if the road was 
 not extended to tap the business of Sangamon county, the line 
 from Meredosia to Jacksonville would have to be abandoned 
 and thus all the money already spent would be lost. 
 
 At the 1 840-1 841 session of the legislature a law was passed 
 providing for the completion of the Northern Cross line to 
 Springfield,^"^ The act approved on February 26, 1841, re- 
 quired the governor to pay over to the fund commissioner as 
 many canal bonds as the canal fund was indebted to the inter- 
 nal improvement fund."® The fund commissioner was author- 
 
 '^^'^ Ibid., 1840-1841, second session, senate, 319. 
 
 ''■^- LaiL's of Illinois, 1840, 93-96. 
 
 i"'^ Reports General Assembly, 1840-1841, second session, house, 145. 
 
 ^'^^ Ibid., 1840-1841, second session, senate, 59. 
 
 ^05 Laivs of Illinois, 1841, 194-95. 
 
 106 Permission for a loan of $300,000 to the canal fund from the internal 
 improvement fund had been granted by an act of the legislature on January 12, 
 1839. Ibid., 1839, 41.
 
 I06 ILLINOIS INTERNAL IMPROVEMENTS 
 
 ized to apply $100,000 of these bonds toward the completion 
 of the Northern Cross from Jacksonville to Springfield. A 
 supplementary act approved on February 27, provided that 
 none of the profits arising from the operation of the road were 
 to be used for other purposes until the interest was paid on 
 the $100,000 bonds. ^°^ John D. Whiteside, the fund commis- 
 sioner, appointed Edmund D. Taylor and John Henry as 
 agents to superintend the building of the road."^ On March 
 22, the agents awarded the contract to John Duff, John A. 
 Keedy, John Taylor, and Marvellous Eastham, contractors of 
 Springfield. ^°^ The agreement provided for the payment of 
 eighty-nine thousand-dollar canal bonds to the contractors for 
 completing the railroad to Springfield. When it was found 
 advisable during construction for a change from trestle work 
 to embankment and stone in the bridging of the Brier fork of 
 Mauvaisterre creek, the contractors were given six more 
 bonds for the additional work. Thus the cost of completing 
 the line from Jacksonville to Springfield was $95,000, con- 
 siderably less than the estimate of $135,000 made in Decem- 
 ber, 1840.^^° It Is to be noted that the payment was not made 
 in cash, but in bonds which were selling at a considerable dis- 
 count at the time. 
 
 Construction was begun soon after the contract was let and 
 the road was completed within ten months. On February 14, 
 1842, a train, making the first trip the length of the road, car- 
 ried a shipment of flour and pork consigned by Opdyke, Tins- 
 ley and Company for New Orleans. ^^^ The train ran on a 
 schedule of leaving Springfield every Monday, Wednesday, 
 and Friday, and leaving Meredosia every Tuesday, Thursday, 
 and Saturday. A steamer, the Mungo Park, plied regularly 
 
 ^^"^ Ibid., 1841, 199. 
 
 108 pund commissioner's minutes of the Northern Cross Railroad, March 6, 
 1841, Internal Improvement Records, VII, no paging. 
 
 i"'-* Letter of John Duff to E. D. Taylor and John Henry, March 22, 1841, 
 Ibid.; agents' minutes, March 24, 1841, Ibid.; Illinois State Register, March 12, 
 April 2, 1841. 
 
 ^^^ Reports General Assembly, 1840-1841, second session, senate, 319; author- 
 ization for change at Brier Fork by Taylor and Henry, June 4, 1841, Internal 
 Improvement Records, VII, no paging; receipts by John Duff for bonds, Ibid. 
 
 ^^^ Illinois State Register, February 18, 1842; Sangamo Journal, March 12, 
 1842; Quincy Whig, March 26, 1842.
 
 ADMINISTRATION AND CONSTRUCTION IO7 
 
 between Meredosia and St. Louis so as to make connection 
 with the train. ^" Freight listings preserved in the Illinois State 
 Archives show that the railroad was used primarily by shippers 
 of staple commodities, including wheat, flour, salt, whiskey, 
 molasses, boots and shoes. Sand, barrels, and furniture were 
 also shipped. Revenue from passenger travel was somewhat 
 less than from freight, although during some months the yield 
 was almost the same. 
 
 Operation and repair costs amounted to more than the 
 revenue received from the railroad. During 1841, according 
 to the report of H. G. Rew, operating superintendent, revenue 
 totaled $7,060.20 and the expenses amounted to $7,433.99.^^^ 
 After completion of the road to Springfield in 1842, revenue 
 perhaps doubled, but expenses increased even more.^^* 
 
 In a short time the track and engines needed repairs. Re- 
 placement parts had to be sent either from Cincinnati or St. 
 Louis. Since the income from the road was insufl^cient to pay 
 the cost. Commissioner John D, Whiteside decided to aban- 
 don operation by the state and lease it to the highest bidder."^ 
 Accordingly on May 13, 1842, John B. Watson and J. M. 
 Morse became the lessees, agreeing to pay the sum of $10,300 
 per year rental. ^^^ 
 
 Private operation likewise proved unsuccessful; Watson and 
 Morse soon found the cost of repairs to be greater than the 
 income, and surrendered their lease to John D. Whiteside, 
 fund commissioner."^ 
 
 The lease abandoned by Watson and Morse was taken up 
 in July, 1842, by S. M. Tinsley and Company, who agreed to 
 pay $10,000 a year for four years; $6,000 to be paid in current 
 
 ^^^ Sangamo Journal, March 11, 1842. 
 
 113 Reports General Assembly, 1842-1843, house, 242. 
 
 ii* Revenue reports by Superintendent H. G. Rew, Executive Records, Illinois 
 State Archives, Springfield. 
 
 115 Agitation for private operation of the line began soon after its completion 
 to Springfield. On March 25, 1842, the Sangamo Journal carried an editorial 
 which declared: "We are every day more and more satisfied that works of this 
 character never ought to be under the control of the state; they are likely to 
 be manged with far less economy in the hands of the state than by private 
 individuals." 
 
 11^ Report of the fund commissioner, December 26, 1842, Reports General 
 Assembly, 1842-1843, senate, 77; Sangamo Journal, May 13, 1842. 
 
 ^^'^ Reports General Assembly, 1842-1843, senate, 77.
 
 I08 ILLINOIS INTERNAL IMPROVEMENTS 
 
 funds and the remainder in state indebtedness. The new 
 lessees soon saw that they had made an unprofitable deal. In 
 September, 1843, ^" agreement was reached by which Tinsley 
 and Company were allowed to give up their lease. ^^* 
 
 In the meantime, the legislature provided that the governor 
 was to sell the railroad. ^^® Failing to sell the road, Governor 
 Ford had it leased at public auction in April, 1843. The suc- 
 cessful bidder was John Taylor, who paid one year's rent of 
 $2,000 in state indebtedness."" The lease provided that 
 Taylor could use either steam power or horse power, but if 
 steam power was used the speed limit was to be six miles an 
 hour between Springfield and Jacksonville and only four miles 
 an hour over the older part of the road between Jacksonville 
 and Meredosia. The limitations on speed are an indication of 
 the extremely poor condition of the road and equipment. Dur- 
 ing the first year of operation, the trip between Springfield and 
 Jacksonville had been made at an average speed of fifteen miles 
 an hour. According to the recollections of George McConnell, 
 steam power was abandoned during 1844, and mules were used 
 to pull the cars."^ 
 
 When his lease expired in April, 1844, Taylor was not in- 
 terested in a renewal. An agreement was then made April 7 
 with Cornelius Ludlum and William D. Baxter, whereby they 
 were to pay a rental of $160 a month during the spring, sum- 
 mer and fall, but a lesser amount to be agreed on for the 
 winter months.^"- The lessees could use either steam or horse 
 power, but the speed limit with steam was to be five miles an 
 
 ii** Communication from the governor to the general assembly, December 29, 
 1844, Ibid., 1844-1845, house, 147. The governor secured the surrender of the 
 lease on the condition that Tinsley and Company should receive a reasonable 
 compensation for the repairs which they had made on the road. In 1849, the 
 legislature passed an act authorizing the payment of $3,000 to Tinsley and 
 Company. Reports General Assembly, 1848-1849, senate, 99; Laivs of Illinois, 
 1849, 36. 
 
 '^'^^ Ibid., 1843, 193. 
 
 1-0 Communication from the governor to the general assembly, December 29, 
 1844, Reports General Assembly, 1844-1845, house, 147. 
 
 1-1 "Recollections of George McConnell," Transactions of the Illinois State 
 Historical Society, number 13 (1903), 148. 
 
 1'-- Communication from the governor to the general assembly, December 29, 
 1844, Reports General Assembly, 1844-1845, house, 148; report of the fund com- 
 missioner, December 24, 1846, Ibid., 1846-1847, house, 22. The original of the 
 agreement is in the possession of the state library, archives division, Springfield.
 
 ADMINISTRATION AND CONSTRUCTION IO9 
 
 hour between Springfield and Jacksonville and three miles an 
 hour for the older part of the road. Under this lease a total 
 of $480 was paid in rent, which the state expended for repairs. 
 
 Upon the expiration of the Ludlum and Baxter lease, May 
 I, 1845, Lamb and Company of Meredosia took charge of the 
 railroad for several months.^"^ Ludlum and Baxter again as- 
 sumed operation in November, 1845.^"* The terms of the 
 lease provided for no cash rent, but the lessees were to spend 
 $250 per month in repairs except during the winter months. 
 After November, 1846, all attempts at further leasing were 
 abandoned, but Ludlum continued to use the railroad until it 
 was sold by the state in 1847.^"^ 
 
 Numerous mistakes were made in the construction and ad- 
 ministration of the internal improvement system. Construc- 
 tion on all roads simultaneously was a serious error. So many 
 jobs undertaken at one time increased the cost as shortages were 
 created. The estimates of costs were far too low. That por- 
 tion of the Northern Cross Railroad completed cost nearly 
 twice the amount estimated. Perhaps the errors in estimating 
 costs were due in part to lack of experience in railroad building. 
 
 Administration by the board of public works was cumber- 
 some and subject to political influences. Election of the board 
 members by the legislature was attended by politics. The 
 board was subject to political pressures when laying out the 
 routes and letting the contracts. 
 
 ^'^ Illinois State Register, May 9, 1845. 
 
 !'■* Report of the fund commissioner, December 24, 1846, Reports General 
 Assembly, 1846-1847, house, 22. 
 
 125 For the terms of sale see page 204.
 
 CHAPTER F 
 
 CANAL CONSTRUCTION AND FINANCES 
 
 CONSTRUCTION on the Illinois and Michigan Canal 
 was carried on simultaneously with the internal improve- 
 ment system. When the working season opened in i 837, it was 
 confidently expected that canal construction would proceed at 
 a rapid rate. The amount of money available appeared ample. 
 On March 2, the legislature authorized the governor to bor- 
 row an additional half million dollars on the credit of the 
 state. On May 4, the treasurer of the canal fund reported 
 $297,081.53 in cash on deposit in the Chicago Branch of the 
 State Bank.^ In June the second installment of payments on 
 the Chicago and Ottawa lots fell due, which would bring in 
 $385,591.39 more. Thus a total of $1,182,672.92 was counted 
 on as being available for the work of the year. 
 
 The work of the season had but barely started, however, 
 when the state, like the rest of the nation, was struck by the 
 Panic of 1837. To protect itself the State Bank of Illinois, 
 on May 24, suspended specie payments. It had on deposit 
 $390,384.89 of the canal funds at the time." Within the next 
 month the second installment of payments on the Chicago and 
 Ottawa lots would fall due, and over $385,000 more would 
 become a deposit in the Chicago Branch of the State Bank, 
 unless some other provision were made for its disposal. The 
 charter of the State Bank contained a provision that, if the 
 suspension of specie payments should continue for more than 
 
 1 Report of the treasurer of the Illinois and Michigan Canal, May 4, 1837, 
 Senate Journal, 1837, special session, 24. 
 
 2 At the time of suspension the State Bank was indebted to the state in the 
 amount of $979,504.40, as follows: 
 
 Capital Stock held by the state $100,000.00 
 
 Agreement to pay Wiggins loan 100,000.00 
 
 State deposits in the bank 388,669.51 
 
 Canal funds held in Chicago Branch 285,834.89 
 
 Canal fund on New York loan and premium 105,000.00 
 
 Message of Governor Duncan, Ibid., 9.
 
 CANAL CONSTRUCTION AND FINANCES 1 1 I 
 
 sixty days, the charter would be forfeited.^ Such an event 
 would tie up the canal funds during an indefinite period of 
 liquidation which might mean the abandonment of the project 
 altogether. To forestall that possibility Governor Duncan 
 called a special session of the legislature on July lo, during 
 which an indefinite suspension of specie payments was legal- 
 ized.* By this action the canal funds were saved and operations 
 on the canal proceeded without interruption. 
 
 During the first half of 1837 construction on the canal was 
 retarded by a lack of laborers.^ Unfavorable weather and high 
 waters also caused serious delays. Inability of the contractors 
 to provide the laborers with tools was another factor in slow- 
 ing down the work. Many contractors sought and obtained 
 more work than they could handle. In some cases they over- 
 rated their means or ability, but with others the intention was 
 to sublet contracts at a profit. Several contracts were forfeited 
 and had to be relet. 
 
 Operations on the canal proceeded more rapidly during the 
 fall and winter of 1837. Laborers became more plentiful. 
 Wages were lower. The average wage during the latter part 
 of 1837 was twenty dollars per month, six dollars per month 
 less than the preceding year. Expenditures for work on the 
 canal from December i, 1836, to December i, 1837, were 
 $180,536.87 on the summit division, and $166,363.46 on 
 the western division. The total amount disbursed was 
 $346,899.33 
 
 By December, 1837, according to the report of William 
 Gooding, chief engineer, work had been placed under contract 
 as follows : 
 
 Summit division — 18 miles and 25 chains 
 
 Amount of estimates $2,011,232.03 
 
 Amount of contracts 1,925,364.33 
 
 Less than estimates $ 85,867.70 
 
 ^ Laivs of Illinois, 1835, 13; 1836, 238. 
 
 * Senate Journal, 1837, special session, 9; Laius of Illinois, 1837, special ses- 
 sion, 6. 
 
 s Report of William Gooding, chief engineer, to the board of canal commis- 
 sioners, December, 1837, Illinois State Register, June i, 1838.
 
 112 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Western division — 12 miles and 66 chains 
 
 Amount of estimates $ 186,200.36 
 
 Amount of contracts 187,143.18 
 
 More than estimates $ 942.82 
 
 Fox river feeder, 4 miles and 35 chains, 
 including darn and guard lock 
 
 Amount of estimates $ 77,451.74 
 
 Amount of contracts 74,700.37 
 
 Less than estimates $ 2,751.37 
 
 Total length of line let during the year — 
 35 miles and 46 chains 
 
 Amount of estimates $2,274,984.13 
 
 Amount of contracts 2,187,207.88 
 
 Less than estimates $ 87,776.25 
 
 All the summit division except 12 sections and nearly all the 
 western division below Marseilles had been put under con- 
 tract. Most lettings during 1837 were at amounts below the 
 estimates. 
 
 Construction during 1838 was carried forward with such 
 vigor that by December the entire line of the canal was under 
 contract from the Chicago river to the termination at La Salle 
 except for some twenty-two miles of the shallow cut between 
 Dresden and Marseilles and slightly more than a mile in the 
 Saganaskee swamp which had to be deferred until it could be 
 drained through a series of sections below it.® Governor 
 Duncan reported in his message to the legislature on Decem- 
 ber 4, that several sections of the western division were com- 
 pleted and others far advanced." Expenditures on the canal 
 to December 13, 1838, amounted to $1,432,445.43 of which 
 $986,355.85 had been disbursed since December i, 1837.^ 
 
 The offices of the Illinois and Michigan Canal were moved 
 
 ^Reports General Assembly, 1838-1839, report of the board of canal commis- 
 sioners, December 13, 1838, 7. 
 
 '' House Journal, 1839-1840, 13. 
 
 ^Reports General Assembly, 1838-1839, report of the board of canal commis- 
 sioners, December 13, 1838, 15-16.
 
 CANAL CONSTRUCTION AND FINANCES II 3 
 
 during 1838 from Chicago to Lockport.^ Locating the head- 
 quarters near the center of operations resulted in economies to 
 the contractors and the state. Lockport was wholly unim- 
 proved so that offices had to be constructed on canal land. Two 
 offices cost $2,900 each. The canal commissioners established 
 a store at Lockport from which the contractors were furnished 
 supplies not obtainable in the canal region.^" The cost of the 
 supplies was deducted from the contractors' monthly estimates. 
 No more contracts were abandoned after supplies were thus 
 made available. 
 
 At the close of 1838 approximately one and a half million 
 dollars had been raised on behalf of the canal. The two loans 
 authorized by the acts of January 9, 1 836, and March 2, 1 837, 
 had yielded a return of $1,036,21 1.67.'' Up to December 13, 
 1838, the sum of $444,292 had been realized from the sale 
 of canal lands and lots.^- Thus far the income had proved 
 sufficient to meet all costs, but at the beginning of 1839 the 
 canal treasury was depleted. The canal commissioners esti- 
 mated that operations for the year 1839 would require ex- 
 penditures of a million and a half dollars, and those of 1840, 
 two million dollars." A small part of these sums might 
 possibly be derived from the sale of canal lands but to rely on 
 that source beyond the interest to be paid on loans, the com- 
 missioners thought to be a questionable policy. 
 
 The legislature then in session after studying the report of 
 the commissioners passed a series of laws in behalf of the 
 canal. By an act approved on January 21, 1839, the fund 
 commissioners were authorized to loan the canal fund the sum 
 of $300,000 from the internal improvement fund." The loan 
 
 ^ Report of the board of canal commissioners to the general assembly, Decem- 
 ber, 1838, Senate Journal, 1838-1839, 243. 
 
 ^^ Reports General Assembly, 1838-1839, report of the board of canal commis- 
 sioners, December 13, 1838, 6. 
 
 ^'^ Ibid., 53. The proceeds of the two loans were as follows: 
 
 500,000 at 5% premium $ 525,000.00 
 
 500,000 at par 500,000.00 
 
 Interest on deposits 11,211.67 
 
 Total proceeds $1,036,211.67 
 
 '^-Ibid., 15. 
 ^^Ibid., 16. 
 !■* Lrtii-j of Illinois, 1839, 41.
 
 114 ILLINOIS INTERNAL IMPROVEMENTS 
 
 was to be refunded on or before the following June i, with 
 interest to be paid the Internal improvement fund at the rate 
 of six per cent from the date of the loan to the time of repay- 
 ment. On February 23, a loan of $4,000,000 bearing six per 
 cent interest, was authorized to be negotiated by agents ap- 
 pointed by the governor/^ United States Senator Richard M. 
 Young and Ex-Governor John Reynolds were appointed by 
 Governor Carlin as the agents to negotiate the loan.^® To 
 facilitate the sale of canal lands, an act was passed to make the 
 terms more favorable to purchasers." In future sales only ten 
 per cent of the purchase price need be paid at the time of pur- 
 chase, and the balance, upon which six per cent interest was to 
 be paid annually, would be due in twenty years. Sales were 
 to continue until $400,000 was raised. A fourth act empow- 
 ered the canal commissioners to sell water power to propel 
 machinery for manufacturing purposes.^* By still another act 
 provision was made for the dedication of lots, in towns situated 
 on canal lands, to public purposes, the objective being to add 
 to the value of the state owned lands.^'' The canal commis- 
 sioners were to donate to religious societies or congregations 
 lots whereon to erect houses of worship. One lot was to be 
 granted to every society or congregation upon the condition 
 that such society would erect a church or chapel, and use and 
 occupy the lot for that and no other purpose. The commis- 
 sioners were also to designate not exceeding four lots in each 
 town on which the Inhabitants might erect school houses for 
 the use of common schools. 
 
 15 The act provided that the state irrevocably pledged its faith to provide 
 sufficient resources and means with which to pay the interest accruing upon the 
 bonds as it became due, and to reimburse the principal when it became due; and 
 it irrevocably pledged as security for this purpose, all the lands which had been 
 granted or which might be granted to the state by the United States to aid in 
 the construction of the canal; and it pledged the canal with all its appurtenances, 
 and the revenue arising from the use of the canal, as well as all premiums which 
 might be obtained from the sale of bonds and certificates of stock created by the 
 act, and the rents and profits from the canal lands as well as from water 
 privileges upon the line of the canal. Ibid., 1839, 168. 
 
 I*' The appointment of Reynolds by Governor Carlin was severely criticized 
 by the Whigs, who wanted Ex-Governor Duncan to be chosen. The Democratic 
 press defended the appointment. Illinois State Register, April 19, 1839; Sangamo 
 Journal, April 23, 1839; Daily Chicago American, June 3, 1839. 
 
 ^"^ Laws of Illinois, 1839, 177-82. 
 
 IS I hid., 150-53. 
 
 -^^Ibid., 196.
 
 CANAL CONSTRUCTION AND FINANCES II5 
 
 In April, 1839, Reynolds went east to sell canal bonds. He 
 was joined in New York by Rawlings and Oakley, fund com- 
 missioners of the state. In spite of a scarcity in the money 
 market, Reynolds and Rawlings were able to negotiate two 
 loans. On April 23, they contracted a loan of $300,000 with 
 John Delafield, president of the Phoenix Bank of New York.^° 
 These bonds were sold for the special purpose of raising money 
 to be applied to the payment of the $100,000 due from the 
 canal fund to the internal improvement fund. The terms of 
 this loan, which were unfavorable to the state, provided that 
 $50,000 was to be paid fifteen days after the delivery of the 
 bonds, and the balance was to be paid in monthly installments 
 of $50,000 beginning August i. After having paid $150,000, 
 Delafield was unable to make further payments."^ Agents of 
 the state became involved in a long controversy with Delafield 
 over the return of the bonds which remained unpaid, some of 
 which had been sold to third parties. ^^ 
 
 The second contract was made on April 26, for a loan of 
 $1,000,000 from Thomas Dunlap, president of the United 
 States Bank of Philadelphia."^ By this agreement the state was 
 to be paid the proceeds of the loan in monthly installments of 
 $100,000 each with ten dollar bank notes of the United States 
 Bank.^* The state was to deliver 1000 bonds of 225 pounds 
 sterling each to the bank by July i, 1839. 
 
 Governor Carlin was highly displeased with the terms of 
 the contract. In a letter to Young on July 1 1, 1839, he pointed 
 out that since the contract provided for payment of principal 
 and interest in London, the state would suffer a loss of nearly 
 $300,000 on the deal."^ His figures were based on a rate of 
 exchange ten per cent in favor of London. He asserted that 
 with the annual interest amounting to $60,000, the exchange 
 
 "^Reports General Assembly, 1839-1840, senate, 37-38. 
 
 -1 Letter of Governor Carlin to the speaker of the senate, December 2, 1840, 
 Ibid., 1840-1841, senate, 255. 
 
 '- For an account of the Delafield loans controversy and settlement see 
 Chapter VI. 
 
 -3 Message of Governor Carlin, December 10, 1839, House Journal, 1839- 
 1840, 19. 
 
 -* Reports General Assembly, 1839-1840, senate, 38-39. 
 
 -■''Letter of Carlin to Young, July 11, 1839, Ibid., 1839-1840, senate, 380-81.
 
 Il6 ILLINOIS INTERNAL IMPROVEMENTS 
 
 on that sum would amount to $6,000 yearly, and in thirty years 
 add to the interest, the large sum of $180,000. At the same 
 rate of exchange on payment of principal, $100,000 more 
 would be added to the state's loss. Another $12,500, equal 
 to six per cent on $500,000 for five months, would be lost in 
 interest to be paid on several installments before the money 
 was received. These sums, together with the expense to be 
 incurred in transporting the money to Illinois, would add up 
 to a total loss of $300,000 for the state. It would be better 
 to postpone the construction of the canal than make any more 
 such contracts, Carlin thought. Total receipts from this loan 
 amounted to $976,396.67. 
 
 Construction was being carried forward so rapidly on the 
 canal during 1839 that expenditures far exceeded the income 
 from the loan which Reynolds had made. By June i, there 
 was a deficit of $208,000 against the canal fund, and disburse- 
 ments were running at approximately $150,000 per month, an 
 excess of $50,000 over the monthly installments to be received 
 from the United States Bank.-" To meet this deficit Governor 
 Carlin placed $500,000 of the state bonds in the hands of 
 William F. Thornton, president of the board of canal com- 
 missioners, to be sold in the local market. Thornton was able 
 to sell $100,000 of these bonds at a premium of one per cent, 
 but was unable to dispose of the remainder on satisfactory 
 terms. In July, arrangements were made with the State Bank 
 of Illinois to furnish the state sufficient funds, supplementary 
 to the installments from the United States Bank, to maintain 
 work on the canal during the remainder of the year without 
 any reduction in the program. 
 
 After having become convinced that the American bond 
 market offered no more possibilities, the agents of the state 
 went to Europe seeking loans on behalf of the canal. They 
 found prospects for raising money no better in England. 
 Reynolds wrote Governor Carlin on July 28, 1839, that the 
 American states had almost $100,000,000 of bonds on the 
 
 -"Message of Governor Carlin, December 10, 1839, House Journal, 1839-1840, 
 18-19.
 
 CANAL CONSTRUCTION AND FINANCES II7 
 
 London market."" Young informed the governor by letter on 
 September 19, that the best offer he could get for bonds was 
 ninety cents on the dollar.-* Reynolds spent several weeks in 
 travel on the continent, where according to his own account 
 he was much more interested in sight-seeing than in trying to 
 negotiate loans. -^ He had very little financial ability and his 
 mission to Europe showed that Carlin had used poor judgment 
 in appointing him as a special agent of the state. 
 
 On his return to the United States, Reynolds on September 
 18, 1839, arranged with the State Bank for the sale of 
 $1,000,000 in canal bonds. ^° The agreement provided for 
 bonds in $225 denomination, to be paid for in monthly install- 
 ments of $50,000 to $75,000; the last payment to be made on 
 April I, 1 841. On September 19, Reynolds contracted with 
 Anson Banks, president of the Farmers' and Mechanics' Bank 
 of Onondaga, for the sale of $500,000 more stock." Under 
 this contract the state was to deliver 100 bonds on December 
 I, 1839, and 25 bonds every 30 days thereafter until all were 
 delivered. The bank was to pay the state $25,000 on Febru- 
 ary I, L840, and $25,000 every 30 days thereafter in five 
 dollar notes until the whole sum was paid. These arrange- 
 ments were less favorable to the state than for any loan that 
 had been made. Governor Carlin withheld his approval so 
 that neither of these agreements went into effect. 
 
 In the meanwhile, Young had entered into negotiations in 
 London with Wright and Company for a loan. On October 
 30, 1839, Young made an agreement with the firm for the sale 
 of $1,000,000 in canal bonds. ^- The contract called for the 
 deposit of one thousand sterling bonds drawing six per cent 
 interest with Wright and Company to be sold for a minimum 
 
 -" Letter of Reynolds to Carlin, July 28, 1839, Reports General Assembly, 
 1839-1840, senate, 372. 
 
 -** Letter of Young to Carlin, September 19, 1839, Ibid., 1839-1840, senate, 
 385-86. 
 
 -9 John Reynolds, My Oivn Times, Embracing Also a History of My Life 
 (Belleville, 1855), 522-58. 
 
 ^^ Reports General Assembly, 1839-1840, senate, 41. 
 
 ^"^ Ibid., 1839-1840, senate, 41-42. 
 
 ^- Message of Governor Carlin, December 10, 1839, House Journal, 1839- 
 1840, 19; Reports General Assembly, 1842-1843, senate, 172.
 
 I l8 ILLINOIS INTERNAL IMPROVEMENTS 
 
 of ninety-one per cent. The bonds were drawn at a face value 
 of 225 pounds sterling but were to yield only $1,000 in the 
 United States although the exchange rate between England 
 and Illinois might be as high as fourteen per cent. The con- 
 tract stipulated that these bonds should be replaced by others 
 of like amount and rate but bearing interest payable semi- 
 annually instead of annually as soon as the new bonds could 
 be struck off and sent to England. ^^ Wright and Company 
 were required to advance but $250,000 on the bonds, and if 
 more than ninety-one per cent could be obtained from them, 
 the surplus, not exceeding four per cent, was to be retained by 
 the bankers as a commission.^* If the bonds sold for more than 
 ninety-five per cent, the excess was to be equally divided be- 
 tween the state and the brokers. 
 
 American bankers looked upon this sale of canal bonds as 
 being favorable to the state. Samuel Jaudon, agent of the 
 United States Bank in London, stated that Young deserved 
 great credit for selling the bonds so well, since Illinois bonds 
 of i860 and 1870 were selling in England at that time for 
 seventy-eight per cent.^^ In Illinois the sale was looked upon 
 with less favor. 
 
 At the special session of the general assembly convened by 
 Governor Carlin on December 9, 1839, to consider the internal 
 improvement problem, several committees investigated the 
 sale of canal bonds to Wright and Company. The judiciary 
 committees of the two houses acting as a joint committee to 
 examine the contracts by the state agents made a report to the 
 senate on January 20, 1840, in which they recommended the 
 repudiation of the agreement with Wright and Company made 
 by Young as well as the transactions in internal improvement 
 bonds.'*' 
 
 ^3 The semi-annual payment of interest was made legal by an act of the 
 general assembly on February i, 1840. Laivs of Illinois, 1840, 93. Wright and 
 Company failed before the new bonds could be delivered. 
 
 3-* Wright and Company advanced only 30,000 pounds on deposit of the bonds. 
 By the terms of the contract this yielded the canal funds $145,188. Message of 
 Governor Carlin, December 7, 1842, Senate Journal, 1842-1843, 6. 
 
 35 Letter of Jaudon to Young, March 18, 1840, Reports General Assembly, 
 1840-1841, senate, 362. 
 
 '^^ Senate Journal, 1839-1840, 146; Reports General Assembly, 1839-1840, 
 senate, 161-72; Ibid., house, 149-52.
 
 CANAL CONSTRUCTION AND FINANCES II9 
 
 The house finance committee was divided on the question 
 regarding legality of the contract with Wright and Com- 
 pany.^^ The majority reported a resolution declaring the 
 contract as unauthorized by law and void. It estimated the 
 loss to the state at $294,000. The minority reported a resolu- 
 tion which expressed the opinion that the best interests of the 
 state would be served by ratifying the contract which Young 
 had made with Wright and Company. It declared that at the 
 prevailing rate of exchange the state would receive $1,028,082 
 for the million dollars of bonds, and that in repayment the 
 interest, exchanges, and commission would be only six and 
 seven-tenths per cent. 
 
 The action of the Illinois legislative body in questioning 
 the legality of the Wright loans naturally had a harmful effect 
 on the financial interests of the state in England. The recom- 
 mendation of the joint judiciary committee that the contracts 
 be repudiated forced Wright and Company to cease operations 
 for a time even though the general assembly did not adopt the 
 report. ^^ Governor Carlin felt that he could not assume the 
 responsibility of ratifying the contract after the strong expres- 
 sion of disapprobation by the legislature.^^ The canal contrac- 
 tors, however, assented to an arrangement suggested by Young 
 whereby they would continue to work and receive in payment 
 canal bonds which they could hypothecate with Wright and 
 Company, according to the terms of the contract that had been 
 made on October 30, 1839."*" Young continued to urge upon 
 the governor the necessity of confirming the contract, so that 
 finally, Carlin yielded, and on May i, 1840, gave his assent to 
 the transactions.^^ He weakly defended his action with the 
 assertion that the sale was probably the best and most favor- 
 able that could be effected to enable the state to meet the accru- 
 ing liabilities on account of the canal, but he still protested 
 
 3^ Report of the finance committee on the Wright and Company loan, Ibid., 
 1839-1840, house, 123-28, 131-34. 
 
 ^'^ Letter of Wright to Young, March 18, 1840, Ibid., 1840-1841, senate, 360. 
 *^ Letter of Carlin to Young, February 19, 1840, Ibid., 1840-1841, senate, 363. 
 4<> Letter of W. B. Ogden to Young, March 7, 1840, Ibid., 1840-1841, senate, 
 
 364- 
 
 41 Letter of Carlin to Young, May i, 1840, Ibid., 1840-1841, senate, 374.
 
 120 ILLINOIS INTERNAL IMPROVEMENTS 
 
 that the sale was not at par within the meaning of the act 
 under which the bonds were issued. 
 
 The contract with Wright and Company was not to be con- 
 summated, however, for in November of 1840, the financial 
 house closed its doors, having gone bankrupt. The state re- 
 covered part of the money realized from the sale of canal 
 bonds by the banking house to third parties.*" The unsold 
 bonds held by Wright and Company at the time of their failure 
 were surrendered to the state through an order of the London 
 Court of Review issued on January 12, 1842; 215,000 pounds 
 sterling of canal bonds and 166,950 pounds sterling of internal 
 improvement bonds were delivered to Michael Ryan, agent of 
 the state, who brought them from Europe and turned them 
 over to Governor Thomas Ford.*^ 
 
 Throughout 1839 construction on the canal proceeded with- 
 out interruption in spite of the financial difficulties. Expendi- 
 tures for the year amounted to $1,517,479.16.** This was the 
 largest amount disbursed for construction of the canal during 
 any year. 
 
 Since the amount of money raised by the sale of bonds was 
 insufficient to meet the liabilities of the state to the contractors 
 for work completed, the canal commissioners resorted to the 
 issuance of checks payable at such time as the necessary funds 
 should become available. Such checks, printed in denomina- 
 tions of $1.00, $2.50, $5.00, $10.00, $20.00, $50.00, and 
 $100.00, were generally accepted at par since it was thought 
 that funds would be provided for their redemption within a 
 few months.*' Scrip in this form to the amount of $616,870.70 
 was issued during 1839. 
 
 In its efforts to find means to continue work on the canal, 
 the legislature during the session of 1 839-1 840 passed a law 
 
 *- For a more detailed account see Chapter VI. 
 
 ■*'^ Report of John D. Whiteside to the house, February 25, 1843, Reports 
 General Assembly, 1842-1843, house, 238; Illinois and Michigan Canal bonds 
 returned by Wright and Company, Internal Improvement Records, XX, 113-29. 
 
 ■•■' Report of the board of canal commissioners, December 21, 1840, Reports 
 General Assembly, 1840-1841, senate, 69. 
 
 *' Report of the board of canal commissioners, December 10, 1839, Ibid., 
 1839-1840, house, 53; Ibid., i86o-i86i, volume I, 434.
 
 CANAL CONSTRUCTION AND FINANCES 12 1 
 
 on February i, authorizing the canal commissioners to issue 
 the contractors checks bearing six per cent interest and payable 
 whenever funds became available.''*' Under the provisions of 
 this act checks were issued during 1840 to the amount of 
 $409,448.70."' 
 
 In order to increase the marketability of canal bonds, the 
 legislature approved another act the same day authorizing the 
 commissioners to sell enough lands and lots to pay the interest 
 on the canal loans."^ The terms prescribed for the sale of tim- 
 ber lands were one-fourth cash with the remainder to be paid 
 in three annual installments. On prairie land only one-tenth 
 of the price was payable at the time of purchase and the re- 
 mainder was due in twenty years. Interest at the rate of six 
 per cent was to be paid on the deferred payments. 
 
 Due to the extreme scarcity of money, the demand for canal 
 lands was very limited. Sales extending over a period from 
 June 30, to July 13, resulted in the disposal of 460 acres of 
 woodland averaging $12.54 per acre and 7,043 acres of prairie 
 land averaging $8.61 per acre.*'' Certificates to the amount of 
 $60,775.57 were granted purchasers on deferred payments. 
 The sale of land yielded only $7,387.06 in cash payments, 
 nearly all of which were paid in canal scrip. The commis- 
 sioners abandoned the effort to raise money by this means, 
 when it was found impossible to continue the sale without a 
 reduction In the price of land such as would prove detrimental 
 to future sale of bonds. 
 
 With the failure of the state to raise funds and with the 
 prospect of construction on the canal being abandoned, the 
 contractors held a meeting at Lockport on June 27, 1840, and 
 proposed to take $1,200,000 of state bonds at par and bear 
 
 *^ Laivs of Illinois, 1840, 79; report of the board of canal commissioners, 
 December 21, 1840, Reports General Assembly, 1840-1841, senate, 73. 
 
 ■*" Additional scrip was issued by governors Ford and French from 1843 to 
 1849 to pay balances due contractors and for damages resulting from termina- 
 tion of contracts to the amount of $318,229.97. Report of the senate finance 
 committe, Ibid., 1860-1861, volume I, 417. 
 
 *^ Laivs of Illinois, 1840, 79. 
 
 •49 Report of the board of canal commissioners, December 21, 1840, Reports 
 General Assembly, 1840-1841, senate, 74.
 
 122 ILLINOIS INTERNAL IMPROVEMENTS 
 
 the discount at which they would have to be sold.^° The canal 
 contracts had been made at a time when prices were so high 
 that the contractors could lose twenty-five per cent in 1840 
 and still make a profit. William F. Thornton, president of the 
 board of canal commissioners, and W. B. Ogden and George 
 Barnett, contractors, were appointed a special committee to 
 carry on negotiations with Governor Carlin. The proposition 
 made by the contractors was acceptable to the governor and 
 he approved the appointment of Thornton as their agent. 
 
 In July, Thornton took to London $500,000 of canal bonds 
 belonging to the state and $1,200,000 of bonds which had 
 been accepted by the contractors. The law under which the 
 state bonds were issued prohibited Thornton from selling them 
 below par, but the bonds belonging to the contractors could be 
 sold at a price as low as seventy-five per cent. None of the 
 state bonds were sold, but an agreement was made to sell 
 $1,000,000 of the contractors' bonds to Magniac, Smith and 
 Company of London at a rate of eighty-three." Thus it was 
 made possible for work to continue on the canal, but at a 
 diminished rate. 
 
 Although there was no immediate prospect of being paid, 
 contractors continued at work during 1841 with a somewhat 
 smaller labor force." On September 20, 1841, contracts were 
 let for forty-six sections of the canal between Dresden and 
 Marseilles. ^^ The work was accepted at $386,676, which is in 
 contrast to the $548,121.37 estimate of 1836. Such contrac- 
 tors as were able to pay their own expenses continued at work 
 and accepted state bonds until the depreciation became so 
 great as to make that method of payment impracticable. A 
 total of $197,000 in bonds was paid in this way during the 
 latter part of 1841 and the early months of 1842.^* Another 
 
 so Message of Governor Carlin, November 26, 1840, House Journal, 1840- 
 1841, 25; Reports General Assembly, 1840-1841, senate, 30-54; Daily Chicago 
 American, July i, 1840. 
 
 ''1 Chicago IVeekly Tribune, August 22, 1840; Illinois State Register, Septem- 
 ber 4, 1840; Reports General Assembly, 1 840-1 841, senate, 30, 50-54. 
 
 5- Report of the board of canal commissioners, December 15, 1842, Ibid., 
 1842-1843, house, 135. 
 
 ^^ Illinois State Register, October 8, 1841. 
 
 54 Message of Governor Thomas Ford, December 8, 1842, House Journal, 
 1842-1843, 30.
 
 CANAL CONSTRUCTION AND FINANCES I 23 
 
 method of payment consisted of checks drawn by the contrac- 
 tors in favor of their creditors against the canal commissioners. 
 Such orders became negotiable after having been formally 
 accepted and recorded by the secretary of the canal board. A 
 rapid depreciation of the orders put a stop to that method of 
 payment after about $46,000 had been issued. ^^ 
 
 After the failure of the State Bank in February, 1842, the 
 critical financial condition of the state prev'ented any further 
 construction on the canal. William Gooding, the chief en- 
 gineer, reported on December i, 1842, that a total of 
 $4,909,492.03 had been expended on the canal, and that 
 $3,098,169.29 would be required to complete the unfinished 
 work.^^ 
 
 Administration of the Illinois and Michigan Canal from 
 1837 to 1842 can be traced briefly. On February 19, 1839, 
 the legislature re-elected the incumbent commissioners to their 
 offices, William F. Thornton as president, John A. McClernand 
 as treasurer, and Jacob Fry as acting commissioner.^' The 
 resignation of McClernand on May 30, 1839, brought some 
 difficulty in choosing a successor.^^ When Governor Carlin 
 appointed John Calhoun, the Whig papers claimed the appoint- 
 ment was unconstitutional because Calhoun had been a member 
 of the legislature at the time when the salary of the canal 
 treasurer was increased. To settle the question on constitu- 
 tionality the governor removed Calhoun and appointed David 
 Prickett about whom there was no question. ^^ 
 
 The financial difficulties in 1839 led to a demand for a de- 
 crease in the number of officials employed on the canal as a 
 measure to cut expenses. In an editorial on September 21, the 
 Qiiincy JVhig charged that an excessive number of officials 
 
 ^° Report of the board of canal commissioners, December 15, 1842, Reports 
 General Assembly, 1842-1843, house, 65. 
 
 ^6 Report of the board of canal commissioners, December 15, 1842, Ibid., 
 1842-1843, house, 114. 
 
 5' House Journal, 1838-1839, 450-51 ; Senate Journal, 1838-1839, 360-62. 
 
 ^^ Illinois State Register, May 31, August 10, September 21, 1839; Sangamo 
 Journal, August 2, September 27, 1839. 
 
 ^9 The appointment was only a temporary one until the legislature would 
 convene. Prickett was subsequently elected by that body on February i, 1840. 
 House Journal, 1839-1840, 321, 336-38; Sangamo Journal, September 27, 1839.
 
 124 ILLINOIS INTERNAL IMPROVEMENTS 
 
 and the high salaries being paid was in part responsible for 
 the cost of the canal so greatly exceeding the original estimates 
 of the engineer. On January 4, 1840, the senate passed a 
 resolution requesting a report from the canal commissioners 
 concerning the number of engineers and other employees. In 
 reports to the senate on January 6 and 13, William F. Thorn- 
 ton listed the employees as follows i*'" 
 
 Chief engineer, William Gooding $3,500 per annum 
 
 Resident engineer, Edward W. Talcott 2,000 " 
 
 Resident engineer. Ward B. Burnett 2,000 " 
 
 Nine assistant engineers, each 1,250 " 
 
 Secretary of the canal board i,750 " 
 
 Clerk to the secretary of canal board 1,000 
 
 Clerk to the treasurer of canal board i,000 
 
 Temporary clerk in engineer's office 800 " 
 
 Two land agents, each 4 per day 
 
 Seven rodmen, each 50 per month 
 
 The aggregate salaries amounted to approximately $30,000 
 a year. On March 31, 1840, four of these employees were 
 dropped from the service of the state. ®^ From that date until 
 1842, when all construction stopped, the number of canal em- 
 ployees remained practically unchanged. 
 
 Democratic members of the general assembly during the 
 1 840-1 841 session made charges of neglect and mismanage- 
 ment against the canal commissioners. President William F. 
 Thornton, upon hearing of the charges, wrote a letter to the 
 house of representatives on December 4, requesting an imme- 
 diate investigation and promising to make available all books 
 and papers of the commissioners.*'" A resolution providing for 
 the appointment of a committee to conduct an investigation 
 passed the house but was tabled in the senate.®^ The Sangamo 
 Journal charged the Democrats wanted a committee appointed 
 to conduct an inquiry into the commissioners' activities during 
 the recess of the legislature in order to create some jobs for 
 
 ^^ Reports General Assembly, 1839-1840, senate, 429-31. 
 "^ Report of the Canal Commissioners, 1900, 194-95. 
 
 '''-House Journal, 1840-1841, 77; Ninaiia/i Gazette, January 2, 1841 ; Peoria 
 Register, December 25, 1840. 
 
 ^^ Senate Journal, 1840-1841, 82, 88.
 
 CANAL CONSTRUCTION AND FINANCES I 25 
 
 members of their party/* More likely they hoped to discredit 
 the canal commissioners and thus ruin their likelihood of being 
 chosen again in the forthcoming election by the legislature. 
 
 On February 19, 1841, the two houses of the legislature 
 met in joint session to elect the new board of commissioners, 
 which resulted in Isaac N. Morris being chosen president, 
 Jacob Fry, acting commissioner, and Newton Cloud, treas- 
 urer/^ Morris was a Democrat, and Fry and Cloud were 
 Whigs. The Sangamo Journal claimed Morris was elected 
 solely on the recommendation of Governor Carlin to carry out 
 party arrangements.^^ The difference in political allegiance 
 led to a conflict between Morris and Fry. When the former 
 sought to remove some of the canal engineers. Fry opposed 
 him. Newspapers throughout the state took up the argument 
 with the Illinois State Register backing Morris and the Whig 
 papers supporting Fry.®^ 
 
 Democratic papers in towns along the canal route, notably 
 the Chicago Democrat and the Ottawa Free Trader likewise 
 attacked Morris. Apparently they were disgruntled because 
 the legislature had elected a president of the canal commission 
 from Quincy instead of from their section of the state.®* 
 
 On the whole the Illinois and Michigan Canal was well ad- 
 ministered by the board of canal commissioners; much better 
 at least than was the internal improvement system by the cum- 
 bersome board of public works. On neither, however, did the 
 problems of administration even approach the difficulties of 
 finance. 
 
 ^^ Sangamo Journal, December 18, 1840. 
 
 ^^ House Journal, 1840-1841, 433-38. 
 
 ^^ Sangamo Journal, March 5, 1841. 
 
 ^''Illinois State Register, September 9, 1841. 
 
 ^s An article appearing in the Quincy tV hig, August 13, 1842, stated that 
 John Hise, editor of the Ottaiia Free Trader, charged Morris with letting a 
 contract on the canal to an individual in Grundy county for about $10,000 more 
 than the offer of other bidders. The purpose of the contract, according to Hise, 
 was to heal a division in the ranks of the party resulting from the rival aspira- 
 tions of William Stadden and Michael Ryan for nomination as the candidate 
 for state senator. Editor Hise further asserted that Morris called on friends 
 of William Stadden a short time before the county convention to inform them 
 that if Stadden could be prevailed upon to support "his policy," that he would 
 cause Ryan to withdraw from the contest.
 
 CHAPTER VI 
 
 FINANCING THE INTERNAL IMPROVEMENT 
 
 SYSTEM 
 
 THE internal improvement act of February 27, 1837, pro- 
 viding for the construction of 1300 miles of railroads and 
 the improvement of the larger rivers, created a board of three 
 fund commissioners to handle the finances of the system. The 
 commissioners, who were to be elected biennially by a joint 
 vote of the general assembly, were empowered "to contract 
 for and negotiate all loans authorized by the legislature on 
 the faith and credit of the state for objects of internal im- 
 provements, on the best and most favorable terms," and "re- 
 ceive, manage, deposit, and apply all monies arising from such 
 loans." ^ They were to make quarterly reports to the auditor 
 of public accounts or to such other ofiicer as the legislature 
 might direct, and to appoint a secretary to keep a complete 
 record of all their transactions. Each of the commissioners 
 was allowed a compensation of five dollars per day for each 
 day necessarily employed in the discharge of his duties. The 
 first board of fund commissioners, elected by the legislature 
 on March i, 1837, consisted of Charles Oakley, Moses M. 
 Rawlings, and Thomas Mather. - 
 
 To finance the program of internal improvements the legis- 
 lature authorized a loan of $8,000,000 to be made on a pledge 
 of the state's credit.^ The advocates of internal improvements 
 had no doubt but that the system would pay for itself. They 
 assumed that the state bonds would sell at a premium of about 
 ten per cent and that the dividends would not only pay the 
 interest on the bonds but would even yield a surplus."* The tolls 
 on the roads when completed were expected to yield an income 
 
 "^ Laivs of Illinois, 1837, 121-22. 
 
 -House Journal, 1836-1837, 787; Senate Journal, 1836-1837, 576. 
 
 " Laivs of Illinois, 1837, 137. 
 
 "^ House Journal, 1836-1837, 202-15.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM I 27 
 
 sufficient to meet the payments on the principal of the debt. 
 It was alleged that the system would aid in multiplying the 
 population and wealth of the state, that huge acreages of land 
 would be sold and thus increase the land tax, a part of which 
 could be used to pay the interest on the debt if the other 
 sources of income should fail. 
 
 The seeming prosperity of the State Bank, which had de- 
 clared a dividend of nine per cent in 1836, prompted the mem- 
 bers of the legislature to make the banks useful to the state 
 in its new undertaking. It was thought that if the state owned 
 a large amount of the bank stock, the dividends could be used 
 to finance the internal improvement projects. Accordingly, an 
 act was passed on March 4, 1837, providing that the capital 
 of the State Bank be increased $2,000,000, the stock to be 
 subscribed by the state. ^ By the same act the capital stock of 
 the Bank of Illinois located at Shawneetown was to be in- 
 creased $1,400,000, of which $1,000,000 was reserved for the 
 state and $400,000 for private subscriptions. The fund com- 
 missioners were authorized to negotiate a loan not exceeding 
 $3,000,000 to enable the state to subscribe to the bank stock, 
 when the banks should have notified the state of their accept- 
 ance of the increase in stock. The Bank of Illinois was given 
 the privilege of establishing branches at Alton, Jacksonville, 
 and Lawrenceville. Additional directors, five for the State 
 Bank and nine for the Bank of Illinois, were to be elected by 
 the legislature on behalf of the state." This still left a ma- 
 jority of directors to the private stockholders, although the 
 state owned more stock than did the private owners. The 
 banks were made the fiscal agents of the state. All public 
 revenues and the money borrowed by the fund commissioners 
 to carry on internal improvements were to be deposited in 
 these banks, who were to pay such interest on the deposits as 
 they might agree upon with the fund commissioners. No 
 
 ^ Lanvs of Illinois, 1837, 18-22. The capital of the State Bank was increased 
 from $1,500,000 to $3,500,000 and that of the Baniv of Illinois from $300,000 to 
 $1,700,000. 
 
 •^ An act passed on March 2, 1839, repealed the provision providing for 
 election by the general assembly, and authorized appointment by the governor 
 with the advice and consent of the senate. Ibid., 1839, 233-34. 
 
 I
 
 128 ILLINOIS INTERNAL IMPROVEMENTS 
 
 charges for disbursement of the state funds were to be made 
 by the state banks. The dividends accruing upon the stock 
 held by the state were to be applied in payment of the interest 
 upon loans made to the state to carry on internal improve- 
 ments.^ The banks were to give quarterly statements of their 
 financial condition to the fund commissioners and reports to 
 the general assembly at regular and called sessions.* Needless 
 to say the banks accepted the proposal of the state for the 
 increase in capital.^ 
 
 When the internal improvement program was adopted the 
 state had no funds on hand with which to begin work. On 
 April 4, 1837, William Kinney, a member of the board of 
 public works, inquired of the fund commissioners what pros- 
 pect there was of procuring funds to enable the board to begin 
 construction on the various improvements. ^° A temporary loan 
 of $20,000 was secured by the commissioners from the State 
 Bank to make possible the undertaking of surveys without 
 delay. The commissioners also drew an order on the auditor 
 for $50,000.^^ Thus they were able to forward the first checks 
 of $10,000 each to the members of the board of public works 
 on April 15.^- 
 
 The fund commissioners went to New York In May expect- 
 ing to dispose of the Internal Improvement bonds at favorable 
 terms. They advertised in several New York newspapers that 
 bids would be received for loans, and were much disappointed 
 on the day set for the opening of bids to find that no offers 
 were made.^^ On returning to Illinois, the commissioners 
 found the State Bank willing to take 1765 bonds of $1000 
 
 ^ During the special session of July, 1837, the legislature passed a supple- 
 mentary act providing that the bank stock was pledged to redeem any loan 
 made for internal improvements. Ibid., 1837, special session, 5. 
 
 8 Ibid., 1837, 21. 
 
 ^ Letter of N. H. Ridgely, cashier of the State Bank, to the fund commis- 
 sioners, July 7, 1837, Internal Improvement Records, VIII, 5-6; letter of Mather 
 and Oakley to Levi Davis, state auditor, December i, 1837, Ibid., IX, 5. 
 
 I'j Letter of Kinney to the fund commissioners, April 4, 1837, Internal Im- 
 provement Records, VIII, i. 
 
 ^1 Report of the fund commissioners to Levi Davis, state auditor, June, 1837, 
 Ibid., IX, 3. 
 
 ■^^-Ibid., IX, I. 
 
 13 Ibid., IX, 5.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM I 29 
 
 each and the Bank of Illinois ready to take 900 bonds of the 
 same denomination in exchange for the bank stock for which 
 the state had not yet subscribed. $335,600 had been paid the 
 banks, leaving the sum of $2,664,400 due on the $3,000,000 
 subscriptions which the state had promised/* Thus the 2,665 
 bonds of $1000 each would meet the amount due. The banks 
 were allowed to dispose of the bonds at par." 
 
 A second attempt to dispose of bonds in the New York 
 market was more successful. The commissioners were able to 
 make the following sales :^^ 
 
 Nicholas Biddle 1000 bonds of $1000 each $1,000,000 
 
 James Irvine 1000 bonds of $1000 each 1,000,000 
 
 Hall and Hudson 100 bonds of $1000 each 100,000 
 
 Boorman and Johnson 100 bonds of $1000 each 100,000 
 
 The last two sales were for cash on delivery of the bonds, and 
 the first two were paid for at the rate of $150,000 per month. 
 The sale of stock to Boorman and Johnson was made at a pre- 
 mium of five per cent.^^ A short time later four $1000 bonds 
 were sold to Lt. Levy.^* 
 
 The report of the fund commissioners made to the general 
 assembly on December 24, 1838, showed that the internal 
 improvement fund had received by that date: $477,919.14 
 from the state treasurer, $4,869,000 from the sale of bonds, 
 
 14 At the 1836-1837 session of the general assembly a law was passed direct- 
 ing the governor to draw upon the treasurer for the surplus revenue which had 
 been appropriated to the school fund in subscribing to the stock of the banks. 
 In this way $235,600 had been subscribed to the State Bank, and $100,000 to the 
 Bank of Illinois, a total of $335,600. Laii's of Illinois, 1837, 18; Reports General 
 Assembly, 1838-1839, house, report of the fund commissioners, December 24, 
 1838, I. 
 
 15 The Bank of Illinois was able to sell its bonds, but the State Bank could 
 not dispose of its bonds so that in reality it had little more liquid capital than 
 it had before its capital was increased. Illinois State Register, October 26, 1839. 
 
 ^'^ Reports General Assembly, 1838-1839, house, report of the fund commis- 
 sioners, December 24, 1838, 4; letter of Nicholas Biddle to the fund com- 
 missioners, October 17, 1837, Internal Improvement Records, VIII, 23; report 
 of the fund commissioners to Levi Davis, state auditor, December i, 1837, Ibid., 
 IX, 5. 
 
 1" In accordance with the agreement made with Boorman and Johnson on 
 October 13, 1837, $40,000 of these bonds were to be used in payment of railroad 
 iron. The firm was to furnish iron two and one-fourth by five-eights inches 
 weighing twenty-two tons to the mile. The iron was to be delivered in three 
 lots during 1838. One per cent was to be charged for commission and tow and 
 a half per cent for freight. Ibid., VIII, 19-21, 24. 
 
 ^^ Reports General Assembly, 1838-1839, senate, report of the fund com- 
 missioners, December 13, 1838, 3.
 
 130 ILLINOIS INTERNAL IMPROVEMENTS 
 
 and $321,084.78 from premiums, dividends, and interest, 
 amounting to a total of $5,668,003.92.^" Disbursements made 
 from the fund consisted of $3,000,000 for bank stock, 
 $1,142,027.05 paid on drafts of the board of public works, 
 $144,700 paid to the counties in which no improvements had 
 been made,-'* $292,250 for interest, $6,000 for salaries of the 
 fund commissioners, $58,552.74 for iron and locomotives, and 
 $4,870 for incidental expenses. The unexpended balance, 
 amounting to $1,019,604.04, was on deposit in banks, and was 
 drawing interest at the rate of six per cent.-^ It was used by 
 the banks like other similar deposits, and was paid upon the 
 checks of the commissioners at any time and in such sums as 
 they might choose to draw. 
 
 The terms of office for the original members of the fund 
 commission were due to expire on March i, 1839, The two 
 houses of the legislature, therefore, met in joint session on 
 February 26, to elect new members."' Moses M. Rawlings and 
 Charles Oakley were re-elected and John Tillson was chosen 
 as the third member. 
 
 ^'''Senate Journal, 1838-1839, 108-09; Reports General Assembly, 1838-1839, 
 house, report of the fund commissioners, December 24, 1838, 2-8. 
 
 20 The board of public works had expended this money as follows: 
 
 Illinois River $ 5,100.00 
 
 Rock River 2,300.00 
 
 Kaskaskia River 2,279.37 
 
 Great Wabash River 2,316.00 
 
 Little Wabash River 3.799-76 
 
 Great Western Mail Route 94,932.07 
 
 Northern Cross Railroad 521,420.25 
 
 Central Railroad 200,117.38 
 
 Central Branch Railroad 56,789.09 
 
 Peoria and Warsaw Railroad 83,370.84 
 
 Bloomington and Mackinaw Railroad 43,075.72 
 
 Alton-Mt. Carmel and Alton-Shawneetown 
 
 Railroads 126,516.57 
 
 $1,142,027.05 
 
 21 The money was on deposit in the following banks: 
 
 Bank of the United States $ 4.384 
 
 Bank of Illinois 280,228 
 
 State Bank of Illinois 630,022 
 
 Vandalia Branch Bank 104,968 
 
 Report on funds by William J. Gatewood, secretary of the board of public 
 works, December, 1838, Illinois State Register, December 28, 1838. The report 
 appearing in the State Register has a discrepancy of .$2.04 as compared with the 
 report by the fund commissioners published in the Reports General Assembly, 
 1838-1839, house, report of the fund commissioners, December 24, 1838, 2-8. 
 --Illinois State Register, March 1, 1839.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM 131 
 
 The rapid construction on the internal improvement system 
 during 1839 soon exhausted the million dollars or so available 
 at the beginning of the year. The fund commissioners once 
 more went to New York in an attempt to sell stock. On May 
 7, 1839, Rawlings and Oakley sold $283,000 in state bonds 
 to John Delafield.-^ By the terms of the contract Delafield 
 promised to pay for the bonds in five installments of $50,000 
 each on the first of December, February, March, April, and 
 May, and one of $33,000 on the first of June, 1840. The state 
 was to pay interest on the bonds beginning May 7, 1839, the 
 day the agreement was made. The contract was extremely 
 unfavorable to the state. 
 
 During September further sales of bonds were made in 
 smaller amounts, including $50,000 to the Farmers' and Me- 
 chanics' Bank of Onondaga, $100,000 to the Bank of Com- 
 merce of Buffalo, $100,000 to the Erie County Bank of 
 Buffalo, $100,000 to the Commercial Bank of Buffalo, 
 $150,000 to the Atlantic Bank of New York, and $100,000 
 to January and Dunlap of Illinois, contractors on the North- 
 ern Cross Railroad."* By the terms of these contracts 
 the bonds were to be paid for in installments of $10,000 
 to $22,500 each at intervals of one to six months. None of 
 the agreements was fully carried out except that of January 
 and Dunlap who paid for the bonds in work done on the North- 
 ern Cross Railroad under their contracts on that line. The 
 Onondaga Bank was a swindling concern and never made pay- 
 ments on the bonds. -^ The Atlantic Bank of New York closed 
 its doors soon after the contract was made but the bonds were 
 returned to the state without loss.-'' The other banks after 
 each had paid $10,000 in cash at the time of purchase found 
 themselves unable to keep their agreements, and either re- 
 
 -2 Contract of Oakley and Rawlings with Delafield, May 7, 1839, Internal 
 Impro'vement Records, VIII, 93; Reports General Assembly, 1839-1840, house, 
 
 363- 
 
 -■* Internal Improvement Records, VIII, 74-88. 
 
 -5 Letter of R. F. Barrett to Governor Carlin, January 3, 1841, Reports Gen- 
 eral Assembly, 1840-1841, senate, 341. 
 
 -^Internal Improvement Records, VIII, 102.
 
 132 ILLINOIS INTERNAL IMPROVEMENTS 
 
 turned the bonds or paid in scrip for those which they 
 retained.-^ 
 
 After having exhausted the possibilities of the New York 
 money market the fund commissioners went to London in an 
 effort to dispose of more internal improvement stock. ^^ On 
 August 22, 1839, Rawlings and Oakley made a contract with 
 John Wright and Company of London. ^^ By this agreement 
 the fund commissioners contracted to deliver on or before Jan- 
 uary I, 1840, stock of the state to the amount of $1,500,000, 
 in bonds of $1000 each, bearing interest at the rate of six per 
 cent, payable annually. Wright and Company agreed to make 
 advances totaling $250,000 during the months of February, 
 March, and April. They were authorized to pay $500,000 of 
 the bonds to Thompson and Forman for railroad iron which 
 Rawlings and Oakley had bought from that firm.^° The re- 
 mainder of the bonds were to be sold by Wright and Company 
 at not less than par estimated according to the existing rate 
 of exchange between England and the United States. The 
 contract also gave Wright and Company the option on the 
 flotation of a further sum of bonds to make an aggregate of 
 $4,000,000.^^ 
 
 At the special session of the general assembly convened by 
 Governor Carlin on December 9, 1839, to consider the inter- 
 nal improvement problem, some of the bond transactions made 
 by the financial agents of the state were put under a severe 
 scrutiny. The judiciary committees of the two houses acting 
 
 -^ Message of Governor Carlin, November 26, 1840, House Journal, 1840-1841, 
 21 ; Reports General Assembly, 1840-1841, senate, 5; Internal Impro'vement 
 Records, VIII, 102. 
 
 -s Letter of John Tillson, fund commissioner, to William J. Gatewood, July 
 30, 1839, Ibid., VIII, 1x3. 
 
 -^Reports General Assembly, 1839-1840, senate, 114, 393-409. 
 
 ^0 Thompson and Forman agreed to furnish the state 9,500 tons of railroad 
 iron at nine pounds ten shillings per ton. The first shipment to the value of 
 $50,000 was to be made as soon as the bonds were delivered to Wright and 
 Company. Memorandum of the agreement of Rawlings and Oakley with 
 Thompson and Forman, Ibid., 1839-1840, senate, 409-13. 
 
 ■^1 The reason Wright and Company were willing to take Illinois internal 
 improvement stock when other banking houses refused it can be explained by 
 the fact that they were so largely interested in Cairo City where the Illinois 
 Central Railroad was to terminate. Wright and Company had made loans to 
 the Cairo City and Canal Company which was engaged in building extensive 
 embankments to protect Cairo City from the floods of the Ohio river. Chicago 
 Democrat, September 25, 1839; Illinois State Register, October 5, 1839.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM 1 33 
 
 as a joint committee to examine the contracts negotiated by 
 the state agents made a report to the senate on January 2O, 
 1840, in which they recommended the repudiation of the 
 agreements with Wright and Company, Thompson and For- 
 man, and John Delafield.^- 
 
 The report stated that the state would not receive par for 
 the bonds on which the principal and interest were payable in 
 London with the exchanges as high as nine per cent between 
 London and New York, and five per cent between New York 
 and Illinois. It pointed out that with $90,000 due in interest 
 every year upon the $ i ,500,000 in bonds sold by Rawlings and 
 Oakley, the state would need the sum of $102,600 with which 
 to make the payment at the rate of exchange then prevailing. 
 In the thirty years that the bonds were to run, the state would 
 lose the sum of $376,000 in interest alone on $1,500,000 of 
 bonds, the committee argued; therefore, the state would be 
 compelled to pay more than the legal rate according to the law 
 under which the bonds were authorized. The committee went 
 on to show how the state would suffer large losses because the 
 agreement stipulated that the expense of making the contract 
 with Wright and Company should be borne by the state; that 
 the charges of all contracts made by Wright and Company for 
 the sale of the bonds to other persons should be paid by the 
 state; that all remittances of money, to and from England, 
 whether for the payment of interest or principal should be at 
 the risk and expense of the state; that the state should pay 
 Wright and Company one per cent for handing over the In- 
 terest on the bonds after the money was furnished them; and 
 finally, that the state should throughout the period of thirty 
 years, pay for semi-annual advertisements to be made in 
 London papers for the benefit of the coupon holders In Eng- 
 land. 
 
 In repudiating the contract with Delafield, the committee 
 pointed out that nine months of interest was to be paid upon 
 the whole sum of $283,000 before one cent of it had been 
 
 ^'-Senate Journal, 1839-1840, 146; Reports General Assembly, 1839-18+0, 
 senate, 161-72; Ibid., 1839-1840, house, 149-52.
 
 134 ILLINOIS INTERNAL IMPROVEMENTS 
 
 received by the state, and before the last Installment was paid, 
 the state would have paid interest for one year and one month 
 minus seven days upon the whole amount. Thus the state 
 would have to pay a bonus of $14,000. 
 
 In the senate, the committee on internal improvements con- 
 sidered all contracts which had been made by the fund com- 
 missioners for the sale of bonds since March i, 1839.^^ A 
 report by chairman John S. Hacker of that committee made 
 on March i, 1840, took the form of a reply to the report made 
 by the joint judiciary committee of the two houses. It con- 
 tended that unfavorable rates of exchange would not cause 
 the bonds to be sold below par; even so, the exchange might 
 be in favor of Illinois by 1870. The Delafield loan was upheld 
 on the grounds that it was made on more favorable terms 
 than any other loan at that time or for months after. The 
 final argument of the committee was that the repudiation 
 of the contracts would result in the entire abandonment of 
 the internal improvement system and a complete loss of 
 $4,783,000, the whole amount of bonds sold since March i, 
 
 1837. 
 
 When the resolutions of the joint judiciary committee came 
 
 up for consideration in the senate on January 31, they were 
 adopted by a vote of 21 to 18.^"* The next day, on the motion 
 of William H. Davidson, the senate decided to reconsider, 
 22 to 18. On a division of the resolution, the first two on the 
 Wright and Company and the Thompson and Forman con- 
 tracts were defeated by a vote of 18 to 22, and the one on the 
 Delafield contract was beaten by 19 to 20.^^ 
 
 There was a strong sentiment In this session of the legisla- 
 ture for a repeal of the internal improvement system. Finally, 
 after much wrangling an act was passed on February i to 
 abolish the board of fund commissioners and the board of pub- 
 lic works. ^** The act provided that one fund commissioner was 
 
 3^ Report of the committee on internal improvements, March i, 1840, Ibid., 
 1839-1840, senate, 209-20. 
 
 ^* Senate Journal, 1839-1840, 224. 
 
 '^^ Ibid., 1839-1840, 235. 
 
 ^^ Laivs of Illinois, 1840, 93-96.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM I35 
 
 to be elected to perform the same duties as the board had 
 previously, except that he could not sell state bonds nor bor- 
 row money on behalf of the state. The commissioner was 
 authorized to receive and take charge of the railroad iron 
 purchased in Europe and pay duty on it, to receive back all 
 bonds from persons failing to comply with their contracts and 
 to register and burn the bonds, to audit and settle the accounts 
 of the previous board of fund commissioners and board of 
 public works, and to bring suit against each member in arrears 
 in the Sangamon county circuit court. On the same day the 
 legislature elected Richard F. Barrett to fill the new office of 
 fund commissioner." 
 
 The action of the general assembly in questioning the legal- 
 ity of the Wright loans naturally had a harmful effect on the 
 financial interests of the state in England. The recommenda- 
 tion of the joint judiciary committee that the contracts be 
 repudiated compelled Wright and Company to cease opera- 
 tions for a time even though the general assembly did not 
 adopt the report.^^ Governor Carlin felt that he could not 
 assume the responsibility of ratifying the contracts after the 
 strong expressions of disapprobation by the legislature.^'* 
 
 In November of 1840, Wright and Company became bank- 
 rupt.*" The failure of the Wrights can be attributed largely 
 to an overloading in American stocks. They took such securi- 
 ties at a time when other English banking houses avoided them. 
 The Wrights claimed their downfall was caused by opposing 
 bankers and brokers who induced the Bank of England to 
 withdraw its support when most needed." More likely the 
 Bank of England withdrew its aid to protect itself rather than 
 with any malign intent toward Wright and Company. The 
 
 ^'^ House Journal, 1839-1840, 334-36. 
 
 38 Letter of Wright to Young, March 18, 1840, Reports General Assembly, 
 1840-1841, senate, 360. 
 
 39 Letter of Carlin to Young, February 19, 1840, Ibid., 1840-1841, senate, 363. 
 ■*o The failure did not become known in Illinois until late in December. W. F. 
 
 Thornton, president of the board of canal commissioners, to the speaker of the 
 senate. Governors' Letter Books, 1840-1854, edited by Ewarts B. Greene and 
 Charles M. Thompson {Collections of the Illinois State Historical Society, 
 Volume VII, Springfield, 1911), 26. 
 
 ■*! Letter of Samuel Allison to Governor Carlin, December i, 1840; Reports 
 General Assembly, 1840-1841, senate, 311.
 
 136 ILLINOIS INTERNAL IMPROVEMENTS 
 
 attitude of the Illinois general assembly and of Governor 
 Carlin on the bond contracts undoubtedly served to make the 
 position of the Wrights more difficult at a critical moment. 
 
 When the London banking house closed its doors, a large 
 sum of money realized from the sale of state bonds had not 
 been turned over to the state. In Illinois it was the general 
 opinion that no loss would be encountered by the state.*" This 
 did not prove to be the case for the state had to share the loss 
 along with the other creditors of Wright and Company. In 
 August, 1 84 1, John D. Whiteside, who succeeded Barrett as 
 fund commissioner, engaged Emery, Sewell and Moore, solici- 
 tors in London, to recover from the assignees of Wright and 
 Company the amount due the state." The claim of the state 
 was for 41,625 pounds sterling of internal improvement bonds 
 and 23,625 pounds sterling of canal bonds, which the brokers 
 had sold for 52,776 pounds sterling and for which no settle- 
 ment had been made. The sum of $100,000 was eventually 
 received by the state as its share of the dividends from the 
 bankrupt firm."" The unsold stock remaining in the hands of 
 the Wrights at the time of their failure was surrendered to 
 the state through an order of the London Court of Review 
 Issued on January 12, 1842.*^ 
 
 The contract with Thompson and Forman for railroad iron 
 likewise proved very unfortunate for the state. The agree- 
 ment stipulated that Wright and Company should pay Thomp- 
 son and Forman for the Iron out of the proceeds of the 
 $1,500,000 state bonds for which they were agents.*^ In the 
 event that the brokers should not be able to make a sale of 
 the bonds, Thompson and Forman were to receive from them 
 bonds at par value as collateral security for all shipments of 
 
 *- Alton Telegraph, January 9, 1841. 
 
 *3John D. Whiteside to the house, February 22, 1843, Reports General As- 
 sembly, 1842-1843, house, 238. 
 
 ^ Reprint of a letter appearing in the Neiv York Herald from state senator 
 Michael Ryan, Illinois State Register, October 27, 1843. 
 
 ■*■'' 215,000 pounds sterling of canal bonds and 166,950 pounds sterling of 
 internal improvement bonds were delivered to the agents of the state. Report 
 of John D. Whiteside to the house, February 22, 1843, Reports General Assem- 
 bly, 1842-1843, house, 238; Illinois State Register, March 25, 1842. 
 
 ^'^ Reports General Assembly, 1839-1840, senate, 409-13.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM 1 37 
 
 iron made to Illinois. The first shipment of iron to the value 
 of 10,000 pounds sterling was paid for by the Wrights from 
 the sale of bonds.^' Other shipments were made in July and 
 August of 1840, amounting to 10,357 pounds sterling, for 
 which Wright and Company delivered to the iron merchants 
 fifty-two Illinois six per cent bonds with a face value of 
 $52,000, as security to them as agreed upon in the contract. 
 
 When construction on the railroads was terminated in 1840, 
 Barrett wrote to Thompson and Forman requesting them not 
 to ship the iron as they were required to do by their contract, 
 but to store it. Thompson and Forman replied that they had 
 made arrangements for the fulfillment of the contract in every 
 respect, and that they could not without serious inconvenience 
 to themselves, comply with the request to store the iron. In- 
 stead of sending forward the whole amount of iron, 9,500 
 tons, as they had indicated in their letter, they only shipped 
 1,990 tons. In the meantime Barrett made a freight arrange- 
 ment with Blaine, Tompkins, and Barret, a firm at St. Louis, 
 and paid them $50,000 in advance for such services.*^ When 
 the iron was not forthcoming the state lost $33,000 to the St. 
 Louis firm because of the non-fulfillment of the contract."*^ 
 
 Under such circumstances Thompson and Forman later pre- 
 ferred a claim of damages against the state for about $54,000, 
 which they alleged was due them in consequence of the non- 
 fulfillment of the contract on the part of the state. In reality 
 they themselves had abandoned the contract. They also ap- 
 plied to the Court of Review at London to obtain a lien upon 
 $1,000,000 of bonds remaining unsold in the hands of Wright 
 and Company. The court granted an order and with its con- 
 
 ^'' Ibid., 1852-1853, house, 333-35. 
 
 *® Report of the select committee appointed by the house to examine the 
 accounts of R. F. Barrett, fund commissioner, February 6, 1843, Ibid., 1842-1843, 
 house, 209-14, also 238, 391. 
 
 49 John D. Whiteside sought to recover the $33,000 for the state from 
 Barrett. He proposed to submit the question to arbitration for settlement, which 
 Barrett declined. Suit was then brought in the Sangamon county circuit court. A 
 select committee appointed to examine the accounts of fund commissioner Barrett 
 reported to the house of the state legislature on February 6, 1843, that Barrett 
 should be absolved of all blame and censure in the case. The committee ex- 
 pressed the opinion that Barrett's course was governed solely by the intention 
 to serve the best interests of the state. Ibid., 1842-1843, house, 214.
 
 138 ILLINOIS INTERNAL IMPROVEMENTS 
 
 sent the bonds were sent to the United States In 1849, "^^^ 
 phiced in the hands of Howland and Aspinwall of New York, 
 subject to the order of the court in England. After several 
 unsuccessful attempts for an agreement, the case was finally 
 settled in 1859 when the state legislature passed a law author- 
 izing the governor to make a payment of $32,312.17 on condi- 
 tion that Thompson and Forman should cause to be delivered 
 to the governor or his agent for cancellation all bonds in their 
 possession/" The total number of bonds thus delivered 
 amounted to $1,088,000. 
 
 Soon after the adoption of the internal improvement system 
 a movement was started to secure land from the national gov- 
 ernment to aid in building the railroads. During the special 
 session of the legislature in 1837 William J. Gatewood re- 
 ported a memorial from the senate committee on internal 
 improvements with the request that Congress grant the state 
 the right of way over the public lands for the several routes, 
 or to grant to the state the right to purchase any quantity of 
 lands adjacent to the several railroads, at a credit of ten years, 
 without interest, not exceeding 500,000 acres, or to grant to 
 the state without sale such quantity. The memorial was ap- 
 proved on July 21.^^ At the next session of Congress, Richard 
 M. Young introduced a bill in the United States Senate grant- 
 ing to Illinois the right of way through the public lands for the 
 railroads of the internal improvement system. After being 
 reported by the committee on public lands, the bill was post- 
 poned indefinitely by the Senate." 
 
 During the 1 838-1 839 session, the legislature passed a joint 
 resolution requesting the Illinois Senators and Representatives 
 in Congress to use their influence to procure the passage of a 
 law granting to the state a portion of the vacant lands along 
 the routes of the several railroads. ^^ A bill introduced by 
 Young was approved by the United States Senate on February 
 
 ^^ Laivs of Illinois, 1859, public, 19; Alton Daily Morning Journal, February 
 19, 1853. 
 
 ^^ Illinois State Register, August 7, 1837; Laivs of Illinois, 1837, special ses- 
 sion, IIO-II. 
 
 5- Congressional Globe, 25 Congress, 2 Session, 73, 91, 96, 430. 
 
 ^^ House Journal, 1838-1839, 439; La<ws of Illinois, 1839, 293.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM I 39 
 
 8, 1839, but got nowhere in the House of Representatives.^* 
 Young met with less success in the next, the twenty-sixth Con- 
 gress. His bill to grant the right of way for the railroads 
 through the public lands to the state was laid on the table after 
 being reported by the committee on roads and canals in the 
 Senate/" 
 
 A grant of land by Congress at this time would have been of 
 little benefit to the state. The lack of money made the sale 
 of land even more difficult than bonds. 
 
 The contractors on the internal improvement system con- 
 tinued to work on their contracts during 1839 even though 
 the fund commissioners failed in securing funds to pay them. 
 On August I, Governor Carlin wrote a letter to the president 
 of the Bank of Illinois seeking a short term loan of $300,000 
 to pay the contractors the estimates due them.^*' In a second 
 letter on August 23, he suggested that he would be willing to 
 deposit $500,000 in state bonds with the bank as collateral 
 security.^' On September 11, John Marshall, president of the 
 Bank of Illinois, agreed to place to the credit of the fund com- 
 missioners and subject to their drafts on his bank, $100,000 on 
 October i, and a like amount on November i.^* The $200,000 
 loan was to be repaid in New York when funds became avail- 
 able to the state, interest was to be charged from the time the 
 money was placed to the credit of the fund commissioners until 
 the day of payment, and $500,000 in bonds was to be placed 
 with the bank as security. On September 14, the board of pub- 
 lic works agreed on behalf of the fund commissioners, who 
 were absent, to repay the loan in New York in installments of 
 $50,000 each on the first day of December, February, March, 
 and April following.'^ 
 
 Much difficulty was experienced in repaying the loan to the 
 bank as the fund commissioners were working at cross-pur- 
 s'* Co«^r<'jj?onrt/ Globe, 25 Congress, 3 Session, 165, 169, 180. 
 
 ''^ Ibid., 26 Congress, 1 Session, 82, 536. 
 
 ^^ Reports General Assembly, 1839-1840, senate, 149. 
 
 3" Letter of Governor Carlin to the Bank of Illinois, August 23, 1839, Internal 
 Improvement Records, VIII, 78. 
 
 =^ Letter of Marshall to the fund commissioners, September 11, 1839, Ibid., 
 VIII, 81. 
 
 S9 Letter of Hogan and Willard to the Bank of Illinois, September 14, 1839, 
 Ibid., VIII, 79.
 
 140 ILLINOIS INTERNAL IMPROVEMENTS 
 
 poses. When the $200,000 loan was negotiated with the Bank 
 of Illinois, an agreement was made by Rawlings and Oakley 
 with Delafield authorizing the bank to draw on him as the 
 installments fell due from the $283,000 loan which he had 
 made to the state on May 7, 1839/" After Rawlings anH 
 Oakley left New York, Tillson directed Delafield not to pay 
 any drafts that might be made on him by the bank. Conse- 
 quently, when the bank presented a draft on Delafield in New 
 York, payment was refused. *'^ Tillson defended his action on 
 the grounds that the money from Delafield was needed to pay 
 interest on the debt.®" On December 17, Rawlings and Oakley 
 wrote to Delafield ordering him to pay the drafts drawn on 
 him by the Bank of Illinois.®^ They pointed out that Tillson 
 had no authority to change any contracts that a majority of 
 the fund commissioners had made. Delafield not only refused 
 to pay the drafts of the Bank of Illinois, but stopped payment 
 on the state bonds altogether. He claimed that he had been 
 promised that no more bonds would be placed on the market; 
 but more bonds had been offered, causing them to decline to 
 sixty-two cents on the dollar so that he could not dispose of 
 those in his possession.^ Delafield had paid only $150,000 
 on the $583,000 internal improvement and canal bonds which 
 he held. 
 
 A long period of negotiation followed in which the fund 
 commissioner sought to make terms with Delafield for the 
 surrender of the bonds to the state. ®^ On May 6, 1840, Dela- 
 no Letter of Rawlings and Oakley to Delafield, December 17, 1839; Reports 
 General Assembly, 1839-1840, senate, 447; Internal Improvement Records, VIII, 
 100, 128. 
 
 *■'! Letter of Marshall to Oakley, October 26, 1839, Ibid., VIII, 100; Reports 
 General Assembly, 1839-1840, senate, 447. 
 
 "-Letter of Tillson to Gatewood, October 28, 1839; Internal Improvement 
 Records, VIII, 99. 
 
 ^'^ Reports General Assembly, 1839-1840, senate, 447. 
 
 "* Letter of Delafield to Rawlings and Oakley, January 31, 1840, Internal 
 Improvement Records, VIII, 138-40. Both Oakley and Reynolds denied having 
 made a promise to Delafield not to offer any more state bonds for sale in the 
 United States. Oakley even claimed that Delafield had not even requested such 
 a promise. Letter of Oakley to Barrett, September 14, 1840, Ibid., X, 89; letter 
 of Reynolds to Barrett, September 24, 1840, Ibid., 96. 
 
 "•''Letter of Delafield to Barrett, May 6, 1840; Barrett to Delafield, May 21, 
 1840; Delafield to Barrett, May 23, 1840; Barrett to Delafield, May 26, 1840; 
 Delafield to Barrett, June 23, 1840; Barrett to Delafield, July 2, 1840, Ibid., X, 
 30-34-
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM I4I 
 
 field offered to pay $260,000 for the bonds which he held. 
 Barrett refused the offer, stating that the state could not take 
 seventy cents on the dollar for bonds which would have to be 
 repaid at their face value. On May 23, Delafield again made 
 a proposal in which he offered to return the bonds which had 
 not been disposed of and pay the state whatever had been 
 received for the bonds that had been sold. Barrett refused 
 this offer likewise, and countered with a proposal that the state 
 would repay with interest the $150,000 received from Dela- 
 field on the condition that all the 583 bonds be returned. 
 When the offer was declined, Barrett began a suit in the United 
 States Circuit court for the southern district of New York to 
 prevent Delafield from disposing to innocent third parties of 
 the bonds which he held in his possession. The court granted 
 an injunction to prevent further sales and ordered a receiver 
 of the bonds to be appointed. It was also pointed out in the 
 court's decision that the contract was illegal because the bonds 
 had been sold on credit. ®® 
 
 In 1 841, John D. Whiteside, fund commissioner of the state 
 succeeding Barrett, made an agreement with Delafield where- 
 by the latter gave four promissory notes of $57,361.73 each, 
 due one, two, three, and four years respectively after April 21, 
 1 841, in payment of half of the bonds for which he had not 
 settled with the state.^^ For the other half of the bonds, John 
 Tillson gave four similar notes as well as assigning to the state 
 the entire stock of the "Quincy House" in Quincy, Illinois. ®® 
 Tillson's interest in the Delafield debt at this time suggests 
 that he may have had previous dealings with Delafield in state 
 bonds. Neither Tillson nor Delafield were able to meet the 
 obligations incurred in the agreement, and the state once more 
 prosecuted its claim against Delafield under the injunction 
 previously obtained against him. All the bonds were finally 
 
 ^'^ Illinois State Register, August 21, November 6, 1840; Sangamo Journal, 
 September 17, October 23, 1840; Internal Improvement Records, X, 50, 74, io6. 
 
 ^"'Reports General Assembly, 1842-1843, house, 225-37, 255-57; Ibid., 1844- 
 1845, senate, 189-90. 
 
 68 The state became owner in April, 1847, of the "Quincy House," estimated 
 to be worth $100,000, in settlement of the claims against John Tillson. Com- 
 munication from Governor Augustus C. French, January 27, 1849, Ibid., 1848- 
 1849, house, 75.
 
 142 ILLINOIS INTERNAL IMPROVEMENTS 
 
 returned except those which had been sold to third parties. 
 These, the state paid in full when it assumed payment on the 
 internal improvement debt. 
 
 The loan from the Bank of Illinois was an expedient which 
 eased the situation for only a short time. By January of 1840, 
 the state was once more in arrears in its payment to the con- 
 tractors to the amount of $361,072.05.®'' During the following 
 year the board of public works proceeded to pay for the work 
 done on the internal improvements by issuing the contractors 
 checks payable at such time as the necessary funds should be 
 provided. A total of $1,342,372.82 of such checks were given 
 out by the board. In 1841 the board of auditors, created to 
 settle the accounts of the contractors, issued $82,011.82 more 
 of the checks, making a total of $1,424,384.64 in all of inter- 
 nal improvement scrip. ^° 
 
 By 1840 the problem of providing the interest on the state 
 debt had become more important than the question of how 
 more funds might be obtained to complete the internal im- 
 provement projects. Until that time premiums on bonds, in- 
 terest on deposits, and dividends from bank stocks had been 
 sufficient to pay the interest charges on the state loans. "^ In 
 July of 1840 the interest due on state bonds held in London 
 was paid out of 20,000 pounds sterling received from Wright 
 and Company under the contract of October, 1839. To meet 
 the interest payable on that date in New York, Colonel 
 Mather, president of the State Bank of Illinois, loaned the 
 state the sum of $30,000.'- 
 
 During the fall of 1840 the problem of meeting future 
 interest payments appeared increasingly difficult. Governor 
 Carlin convened the legislature two weeks early for the session 
 of 1 840-1 841, for the purpose of finding some means to pro- 
 
 "" Report of William Prentiss, secretary of the board of public works, made 
 to the senate, January 8, 1840, Ibid., 1839-1840, senate, 131. 
 
 '"Internal Improvement Records, XVIII, 134. 
 
 "' Receipts from those sources consisted of $146,696.99 from premiums of ex- 
 change and interest on deposits, $323,150 from dividends from stock in the State 
 Bank, and $147,500 from dividends from stock in the Bank of Illinois, Reports 
 General Assembly, 1839-1840, senate, 119. 
 
 "- Message of Governor Carlin, November 26, 1840, House Journal, 1840- 
 1841, 26.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM 1 43 
 
 vide for the payment of the interest due on January i, 1841. 
 In his message Carlin expressed the opinion that there was no 
 way to pay the interest except by the hypothecation or sale of 
 state bonds below par/^ He went on to point out, however, 
 that the policy of paying the interest out of the borrowed 
 money must soon be stopped, and the only alternatives which 
 he could suggest were an increase of the banking capital and 
 a resort to direct taxation. 
 
 The time in which the legislature had to act on the interest 
 problem was very short. The plan most favored seemed to be 
 that of hypothecation of bonds for whatever they would bring 
 in the market. There was some sentiment for repudiation, 
 especially upon those bonds for which the state had not re- 
 ceived full payment. Much resentment was expressed against 
 the acts of the fund commissioners in selling bonds on credit 
 and for less than their face value. There were some members 
 of the legislature who argued that the state was not bound 
 to pay interest on bonds for which the state had not received 
 face value, while others insisted that the state was in honor 
 bound to do everything in its power to meet its obligation; if 
 the agents of the state had erred, the state was responsible 
 for their acts. The extended debate almost prevented any 
 definite action being taken, but a law was finally passed on 
 December 14, authorizing the fund commissioner to hypoth- 
 ecate internal improvement bonds to an amount not to exceed 
 $300,000, the proceeds of which were to be applied to the 
 payment of all interest legally due on the public debt.^* 
 
 Even with this law allowing hypothecation of bonds Rich- 
 ard F. Barrett, the fund commissioner, experienced great diffi- 
 culty in obtaining the money necessary for the interest. After 
 much effort he secured $40,000 from the United States Bank, 
 $25,000 from Elisha Riggs, and $29,410 from Nevins, 
 Townshend and Company for only ninety days with thirty 
 days grace. '^ He had to hypothecate 300 thousand dollar 
 
 '^^ Senate Journal, 1840-1841, 10. 
 
 '^'^ Illinois State Register, December 18, 23, 1840; Laivs of Illinois, 1841, 108. 
 "5 Report of Barrett to the senate, January 7, 1841, Reports General Assem- 
 bly, 1840-1841, senate, 327; Ninaivah Gazette, January 30, 1841.
 
 144 ILLINOIS INTERNAL IMPROVEMENTS 
 
 bonds, and allow Interest at the rate of seven per cent. If the 
 bonds were not redeemed at the end of 120 days they were to 
 be sold at auction for what they would bring. The bonds 
 were redeemed without any loss to the state on May 8, 1841, 
 by John D. Whiteside, who succeeded Barrett as fund com- 
 missioner.'*^ 
 
 After having provided for the emergency of meeting the 
 interest payment due January i, the legislature set about 
 devising means for additional state revenue. In February a 
 law was passed authorizing a tax of ten cents on each $100 
 of real and personal property of all citizens.^' The proceeds 
 of the tax were to be set aside as an "Interest fund" and were 
 to be used for the payment of Interest on the state debt. Since 
 such a tax would provide for only a small part of the Interest 
 payments, the governor was authorized to issue bonds to raise 
 funds for the remainder. The bonds were to be sold by the 
 fund commissioner at the best price obtainable. 
 
 In June, 1841, fund commissioner Whiteside made an agree- 
 ment with Macallster and Stebblns of New York to hypoth- 
 ecate with them interest bonds of $1000 each at the rate of 
 $400 per bond or forty cents to the dollar. ^^ He delivered to 
 the firm 804 bonds with the understanding that they were to 
 pay $321,600 on the interest due on the state debt, and that 
 they would not dispose of the bonds unless sold at seventy-five 
 per cent of their par value. Furthermore, they were to sell no 
 more than to reimburse the advance which they had made to 
 the state under the direction of the fund commissioner. On 
 behalf of the state, Whiteside promised that the loan would 
 be refunded within six months and that three and a half per 
 cent Interest would be paid on It during that period. Macalls- 
 ter and Stebblns paid $286,443.33 on the interest of the state 
 debt In July, and of this $24,882.50 was returned In the form 
 
 ~^ Report to the senate of John D. Whiteside, fund commissioner, December 
 26, 1842, Reports General Assembly, 1842-1843, senate, 73; Internal Improve- 
 ment Records, IX, 80. 
 
 '' Laivs of Illinois, 1841, 166-67. 
 
 ^^ Report of Whiteside to the senate, December 26, 1842, Reports General 
 Assembly, 1842-1843, senate, 75; Sangamo Journal, October 22, 1841.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM I 45 
 
 of a protested bill on October 9/^ As the price of Illinois 
 bonds declined after the contract, which was made on June 17, 
 Macalister and Stebbins asked for more security and took into 
 their possession forty-two more $1000 bonds and $67,215.44 
 of scrip, so that they held a total of $913,215.44 in state 
 liabilities as collateral security for the loan of $261,560.83. 
 The firm had to pledge these bonds in various amounts with 
 different brokers and banks in order to raise the money which 
 it had loaned the state. ""- 
 
 When the fund commissioner was unable to repay the loan 
 in December, the creditors of Macalister and Stebbins pro- 
 ceeded to sell the bonds in their possession in an effort to 
 satisfy the advances which they had made to that firm in order 
 that it might loan the $261,560.83 to the state. Five hundred 
 and thirty-five of the state bonds selling at fifteen to twenty 
 cents on the dollar netted only $89,877.24. 
 
 During the 1 842-1 843 session of the general assembly, 
 Macalister and Stebbins applied to the state for relief. A joint 
 select committee was appointed to conduct an investigation at 
 which John D. Whiteside and Charles Macalister testified. 
 After hearing the testimony of these two men the committee 
 adopted resolutions denying the right of the fund commis- 
 sioner to hypothecate bonds under the existing laws of the 
 state, but recommended that the holders of the bonds in ques- 
 tion be paid pro rata for the amount advanced to the state on 
 them.^^ After much discussion the legislature passed a law on 
 March 4, 1843, authorizing the auditor to pay Macalister and 
 Stebbins the sum of $261,500 with interest from June 17, 
 1 841, in installments of $20,000 to be paid in 1844, and 
 $50,000 annually thereafter, until the whole amount was paid; 
 provided, that Macalister and Stebbins should surrender the 
 bonds and other state liabilities in their possession to the 
 
 "^ Macalister and Stebbins statement to the senate, Reports General Assem- 
 bly, 1842-1843, senate, 197. 
 
 *^^' Peoria Register and Northiue stern Gazetteer, January 14, 1842. 
 
 s^ Report of the joint select committee to whom was referred the memorial 
 of Charles Macalister, February 25, 1843, Reports General Assembly, 1842-1843, 
 senate, 185-98; Illinois State Register, January 14, 1842; Sangamo Journal, 
 January 7, 14, February 4, 25, 1842.
 
 146 ILLINOIS INTERNAL IMPROVEMENTS 
 
 auditor.^" This act to settle the account of Macalister and 
 Stebbins was not carried out, as the bonds which they proposed 
 to return were no longer subject to their control.®^ The 
 Macalister and Stebbins transaction involved the state for 
 many years in a dispute concerning the question of disposal of 
 the bonds to third parties. 
 
 After July, 1841, the state defaulted on its interest pay- 
 ments, and its bonds fell to fifteen cents on the dollar. In six 
 years Illinois had accumulated a debt of nearly ten and a half 
 million dollars on account of internal improvements. No 
 project had been completed. The Illinois and Michigan Canal 
 still lacked more than one-fourth of completion. Some prog- 
 ress had been made on the entire railroad system, as construc- 
 tion had taken place simultaneously on all roads, but only the 
 fifty-nine mile section from Springfield to Meredosia was com- 
 pleted. This section of railroad costing $900,000 proved of 
 no benefit as neither the state nor private interests to whom 
 it was leased could operate it profitably. 
 
 When construction came to an end, the exact amount of 
 obligations which the state had incurred in behalf of the sys- 
 tem was not definitely known. The devious financial arrange- 
 ments to which the state's agents had resorted in securing 
 loans resulted in much uncertainty concerning the disposition 
 and the state's liability in regard to the various bond issues. A 
 summarization of the internal improvement system's financing 
 discloses the state's obligations to have been as follows: 
 
 Certificate of indebtedness issued to the 
 banks in January, 1838, in payment 
 of bank stock — 1765 bonds sold to 
 
 State Bank of Illinois $1,765,000.00 
 
 900 bonds sold to Bank of Illinois-.. 900,000.00 
 
 $2,665,000.00 
 
 Internal improvement stock sold by the 
 fund commissioners in January, 1838 — 
 
 ^-Senate Journal, 1842-1843, 330, 456; Laiis of Illinois, 1843, 287. 
 83 Message of Governor Ford, December 3, 1844, Reports General Assembly, 
 1844-1845, senate, 9.
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM 1 47 
 
 1000 bonds to Nicholas Biddle 1,000,000.00 
 
 1000 bonds to Irvine & Beers 1,000,000.00 
 
 100 bonds to Hall & Hudson 100,000.00 
 
 100 bonds to Boorman & Johnson.. 100,000.00 
 
 4 bonds to Lt. Levy 4,000.00 
 
 Internal improvement stock sold by the 
 fund commissioners in May, 1839 — 
 283 bonds to John Delafield 
 
 Internal improvement stock sold by the 
 fund commissioners dated July i, 
 1839, and only partially paid for, 
 except the first item — 
 300 bonds to January & Dunlap.... 
 
 50 bonds to A. H. Bangs 
 
 100 bonds to Erie County Bank .... 
 100 bonds to Bank of Commerce .... 
 100 bonds to Commercial Bank — . 
 
 2,204,000.00 
 
 283,000.00 
 
 300,000.00 
 50,000.00 
 100,000.00 
 100,000.00 
 100,000.00 
 
 150 bonds to Atlantic Bank 150,000.00 
 
 800,000.00 
 
 Internal improvement stock disposed of 
 by the fund commissioners to Wright 
 & Co., London, dated July i, 1839 — 
 293 bonds of £225 each sold to 
 Wright & Co. 
 33 bonds of £100 each sold to 
 
 Wright & Co. 
 52 bonds of £225 each paid to 
 Thompson & Forman 
 185 bonds of £225 each pledged by 
 
 Wright & Co. 
 214 bonds of £225 each left with 
 
 Wright & Co. 
 1668 bonds of £100 each left with 
 
 Wright & Co. 
 Bonds amounting to £214,950 left 
 with Wright & Co., on which 
 Thompson & Forman obtained 
 a lien, on account of a balance
 
 148 ILLINOIS INTERNAL IMPROVEMENTS 
 
 due them for railroad iron. A 
 total of £337,500, equal at $4.44 
 per pound sterling to 1,500,000.00 
 
 Internal improvement stock issued to 
 provide for the settlement of debts 
 incurred on account of internal im- 
 provements, pursuant to the act ap- 
 proved, February i, 1840 — 
 180 bonds to Nevins, Townshend & 
 Co., and E. Riggs in exchange 
 for internal improvement scrip.. 180,000.00 
 
 20 bonds to Nevins, Townshend & 
 Co., for payment on interest 
 
 January i, 1840 20,000.00 
 
 50 bonds to M. B. Sherw^ood for 
 
 paper of Galliopolis Bank to pay 
 
 freight on railroad iron 50,000.00 
 
 50 bonds to Nevins, Townshend & 
 
 Co., in exchange for internal 
 
 improvement scrip 50,000.00 
 
 100 bonds hypothecated to U, S. 
 
 Bank 100,000.00 
 
 100 bonds to M. B. Sherwood in 
 
 exchange for scrip 100,000.00 
 
 21 bonds left wMth Nevins, Town- 
 shend & Co 21,000.00 
 
 78 bonds deposited with the State 
 
 Bank 78,000.00 
 
 200 bonds hypothecated with the 
 
 State Bank 200,000.00 
 
 799,000.00 
 
 Illinois and Michigan Canal bonds dated 
 July I, 1837 — 100 bonds applied 
 to the completion of the Northern 
 Cross Railroad, Springfield to IMere- 
 dosia 100,000.00 
 
 Internal improvement stock issued to 
 provide for the payment of interest 
 on the debt, pursuant to the act ap- 
 proved February 27, 1841 —
 
 FINANCING THE INTERNAL IMPROVEMENT SYSTEM 1 49 
 
 50 bonds to the State Bank 50,000.00 
 
 804 bonds hypothecated to Mac- 
 
 alister & Stebbins 804,000.00 
 
 854,000.00 
 
 Internal improvement scrip issued for 
 
 the relief of contractors — 
 
 Scrip issued pursuant to act approved 
 
 February 3, 1840 1,342,372.82 
 
 Scrip issued pursuant to act ap- 
 proved February 26, 1841 82,011.82 
 
 $1,424,384.64 
 
 The Illinois indebtedness of the 1840's may not appear as 
 a heavy obligation today, but to the people of a frontier state 
 struggling through the bog of a depression, it presented an 
 almost insurmountable difficulty. In 1842 the state of Illinois 
 was able to collect but $98,546.14 in taxes for the general 
 expenses of government, while interest charges on the state 
 debt amounted to nearly $800,000 annually.^* These figures 
 portray clearly the seriousness of the situation. 
 
 For several years the state groped blindly for a solution of 
 the debt problem. The hard times which made the debt appear 
 even more burdensome led some people to despair of preserv- 
 ing the state credit and to demand repudiation. The state ap- 
 peared to be enmeshed in a difficulty from which it could not 
 extricate itself. The gloom prevailing in Illinois and other 
 states with similar difficulties during the early 1840's presents 
 a striking contrast to the buoyant optimism of 1836. 
 
 ^* Biennial report of the auditor of public accounts, December i, 1850, Reports 
 General Assembly, 1851, senate, 87.
 
 CHAPTER VII 
 
 AS A POLITICAL ISSUE, 1837- 1842 
 
 SUPPORT for the internal improvement system in the 
 various sections of the state sprang from a diversity of 
 motives. Friends of the Illinois and Michigan Canal sustained 
 the system in order to insure continued support from the south- 
 ern part of the state for the canal. The lead mining region in 
 the northwest was favorable because the line of the Central 
 Railroad from the termination of the canal to Galena would 
 give it a direct connection to the eastern markets via the Great 
 Lakes. The central portion of the state lent its support, 
 though not very enthusiastically. The areas adjacent to the 
 Northern Cross Railroad hopefully looked forward to the 
 time when that line should give them a direct outlet to the east 
 by the way of the Wabash and Erie Canal. 
 
 In southern Illinois, however, the system had its most vocif- 
 erous advocates. The people of "Little Egypt" hoped that the 
 system of railroads would help them to regain the ground 
 which they had lost to the northern part of the state during 
 the preceding decade. Since the opening of the Erie Canal, 
 the northern sections had received more immigrants than the 
 south, and it was thought the railroads might once more turn 
 back the tide of emigration to the latter. The Illinois Central 
 Railroad with its various branches and crossroads was ex- 
 pected to direct much of the trade to the state southward since 
 it gave an outlet to the year-round river transportation on the 
 Mississippi. 
 
 Opposition to the system came principally from those sec- 
 tions of the state which would derive no benefits. Counties 
 along the Mississippi in the lower Military Tract were in 
 opposition because they already had an outlet through the 
 river. Greene county had no interest in the system for the 
 same reason. The areas in the southwestern part of the state
 
 AS A POLITICAL ISSUE, I 837-1 842 15I 
 
 tributary to St. Louis were singularly neglected when the act 
 was passed, and their voice was raised loudly in protest against 
 the system. 
 
 A repeal of the public works program was suggested as 
 early as the special session of the legislature in 1837. Gov- 
 ernor Duncan, the inveterate opponent of the internal im- 
 provement system, recommended repeal in his message to the 
 legislature on July 1 1,^ He was, however, in favor of carrying 
 forward the work on the canal. He thought the other projects 
 should be constructed by private individuals and companies 
 aided by the state. The Alton Spectator charged that the gov- 
 ernor wanted to grant the credit of the state to individuals and 
 incorporated companies in order to enable himself and a few 
 others to monopolize the transport business of the whole 
 state. ^ Bills introduced for the repeal of the system were laid 
 on the table in both houses of the general assembly — in the 
 senate the vote was 19 to 12 — in the house 52 to 34.^ The 
 internal improvement committee of the senate reported a 
 resolution stating that it had "undiminished confidence in the 
 practicability and incalculable advantages of the system of 
 internal improvements throughout the state as adopted at the 
 last session of the Legislature." * 
 
 The unsettled financial condition of the country inaugurated 
 by the suspension of specie payments in May, 1837, caused 
 some people to question the propriety of continuing with the 
 public works program. The Vandalia Free Press, for instance, 
 said that it was time for the people to pause, and calmly and 
 dispassionately to inquire into the condition of the state before 
 progressing with the system of internal improvements.^ It 
 pointed out that the interval of a few months had done very 
 much to change the prospects of the system's probable success. 
 
 The internal improvement question became an issue in the 
 election of August, 1838, when a new governor and members 
 
 ^ Senate Journal, 1837, special session, 11. 
 '^ Alton Spectator, July 20, 1837. 
 
 ^ House Journal, 1837, special session, 63, 74; Senate Journal, 1837, special 
 session, 67; Illinois State Register, July 14, 1837. 
 "* Senate Journal, 1837, special session, 96. 
 ^ Sangamo Journal, October 21, 1837.
 
 152 ILLINOIS INTERNAL IMPROVEMENTS 
 
 of the legislature were to be elected. The Democrats claimed 
 that the Whig candidates were hostile to the public works 
 program/' "Cyrus Edwards, the Whig candidate for governor 
 is against the internal improvement system," the Illinois State 
 Register charged. Thomas Carlin, the Democratic candidate 
 for governor, declared that he was in favor of internal im- 
 provements constructed and owned exclusively by the state, 
 and should he be elected he promised to do all within his 
 power to facilitate the construction of the projects which had 
 been undertaken. '^ 
 
 In a long editorial on January 20, 1838, the Sangamo Jour- 
 nal decried the fact that the Democrats sought to make a "Van 
 Buren party measure" out of the internal improvement system. 
 The Journal claimed that the Democratic state convention was 
 managed by four commissioners of the board of public works, 
 Ebenezer Peck, James W. Stephenson, Murray McConnel, 
 and Elijah Willard. 
 
 The election of Carlin, the Chicago Democrat proclaimed, 
 showed that the people approved of the system and were 
 determined to finish it.* To the Qtiincy Whig the election of 
 Carlin had a different meaning. It declared that "to the inter- 
 nal improvement system are the Whigs of this state indebted 
 for the loss of their governor, not that the people were op- 
 posed to the system, for that was not a question, but through 
 the influence which it has had in introducing into our state a 
 mass of foreigners as laborers, unacquainted in a great degree 
 with our laws, with our state policy, and the privilege even 
 which they enjoy as voters." ^ 
 
 On October 12, the Illinois State Register asserted that the 
 Whigs were planning to make a party machine of the internal 
 improvement system at the next session of the legislature, and 
 that if they could not succeed in getting possession of every 
 office connected with the public works, their next policy would 
 be to destroy the whole system. 
 
 *^ Illinois State Register, February 9, March 9, 1838. 
 
 " Circular of Thomas Carlin addressed to the people, Ibid., August 3, 1838. 
 
 ^ Chicago Democrat, September 26, 1838. 
 
 9 Quincy Whig, September i, 1838.
 
 AS A POLITICAL ISSUE, I 837-1 842 I53 
 
 Governor Joseph Duncan upon his retirement opposed the 
 system more strongly than ever. In his farewell address to 
 the general assembly on December 4, he declared that his stand 
 had undergone no change as expressed in his objection to the 
 passage of the act, and his recommendation of its repeal at 
 the special session of July, 1837. He pointed out that the 
 chief objections which he had to the passage of the bill were 
 the effects the system would have on the purity of elections 
 and the action of the legislature. Then he went on to say that 
 "the short time that has elapsed has verified the soundness of 
 those objections; and when the whole system shall have been 
 completed, and thousands of officers, engineers, agents, and 
 laborers, shall have the same common interest in sustaining or 
 opposing any measure which may effect their pay or pecuniary 
 interests, they will not only, as was the case at the last called 
 session, have representatives in your legislature, but will be 
 here in numbers sufficient, openly or covertly, legally or ille- 
 gally, to control its actions." " 
 
 The new governor in his inaugural address expressed the 
 opinion that the success of the internal improvements in other 
 states left no doubt of the wise policy and utility of such a pro- 
 gram for Illinois. He predicted, "it will open new channels of 
 commerce and trade, furnish a means of transporting products 
 of labor to market, develop natural and hidden resources of 
 the country, stimulate the enterprise and industry of the peo- 
 ple." He approved the policy adopted by the legislature for a 
 system constructed and owned exclusively by the state, but he 
 would have recommended less extensive improvements and 
 the construction of the most important works first; however, 
 since nearly $2,000,000 had been expended already, the sys- 
 tem should be completed, but the most rigid economy should 
 be used in the expenditure of the state's funds." Carlin's 
 message led the Sangamo Journal on January 5, to inquire 
 what the governor meant by "modification," "does he mean 
 curtailment or classification?" 
 
 1° Message of Governor Duncan, December 4, 1838, House Journal, 1838- 
 1839, 10. 
 
 11 Message of Governor Carlin, December 7, 1838, Ibid., 1838-1839, 28.
 
 154 ILLINOIS INTERNAL IMPROVEMENTS 
 
 The legislature did not heed the advice of Governor Carlin. 
 Instead, it authorized the enlargement of the system rather 
 than its curtailment. Additional works were projected in- 
 volving an outlay of nearly a million dollars. ^- 
 
 However, the session was not without proposals for cutting 
 down the ambitious program of 1837. In the senate, William 
 Ross of Pike county, moved the adoption of a resolution that 
 the committee on internal improvements be instructed to in- 
 quire into the expediency of changing the system based upon 
 the construction of railroads into turnpikes. The resolution 
 was adopted but the committee was soon after discharged from 
 further consideration.^^ Various proposals were made for 
 classifying or curtailing the system.^* William Gatewood of 
 Gallatin county, in speaking against the classification bill 
 offered by Peter Butler, gave warning that if the progress on 
 the internal improvement system was checked, southern Illi- 
 nois would retaliate against the canal which in former years 
 it had supported.^^ Byrd Monroe of Clark county made a very 
 sensible proposal in the senate that all work put under con- 
 tract in the future should begin a continuous line commencing 
 at the terminating points of the various routes.^*' 
 
 The house committee on internal improvements was still 
 optimistic over the prospects of the public works program, and 
 in a report on February 16, 1839, expressed the opinion that 
 the system was "within the means of the state to complete 
 without embarrassment to the people or arresting her career 
 of greatness and prosperity." " When the bill to incorporate 
 the Albion and Grayville Railroad Company was introduced 
 in the house, the committee reported that it was inexpedient 
 for the legislature to authorize corporations or individuals to 
 
 ^^ Laivs of Illinois, 1839, 89-96, 285. 
 
 "^^ Senate Journal, 1838-1839, 40, 63, 135. 
 
 i-* By Augustus C. French of Edgar county, House Journal, 1838-1839, 359, 
 419. By Wyatt B. Stapp of Warren county. Ibid., 1838-1839, 361, 556. By John J. 
 Hardin of Morgan county. Ibid., 1838-1839, 441, 510. By John Henry of Morgan 
 county, Ibid., 1838-1839, 214, 399. By Peter Butler of Warren county, Senate 
 Journal, 1838-1839, 269, 277. 
 
 '^^ Illinois State Register, March 15, 1839. 
 
 '^^ Senate Journal, 1838-1839, 220. 
 
 1^ Reports General Assembly, 1838-1839, report of the committee on internal 
 improvements to the house, February 16, 1839, 3-5.
 
 AS A POLITICAL ISSUE, 1837-1842 I 55 
 
 construct railroads which might come into competition with 
 similar works in course of construction under the state system 
 of internal improvements.^^ 
 
 Supporters of the system were awakening to the fact that 
 additional funds would have to be found if it was to be com- 
 pleted. A letter published in the Peoria Register from a New 
 York correspondent stated that while the London market was 
 flooded with state stocks, Illinois might secure loans if a direct 
 tax were provided to insure the payment of the interest.^^ 
 Taxation, however, would be bitterly opposed by the people 
 of the state. Abraham Lincoln suggested a plan of financing 
 the public works program by a speculation in the unsold land 
 of the national government. -'' He introduced a resolution ask- 
 ing permission of Congress for the state to buy all the public 
 lands in Illinois. There were at that time about twenty mil- 
 lion acres of unsold government land in the state which would 
 cost $5,000,000, if purchased at twenty-five cents an acre. 
 Lincoln thought that the state could borrow the money to pay 
 for the land, sell it at a dollar and a quarter an acre, and use 
 the proceeds to pay the principal and interest on the loan as 
 well as the interest on the internal improvement loans until 
 the public works would yield a profit. The house and senate 
 passed the resolution, but the national government refused to 
 accept the plan. 
 
 Early in 1839, public sentiment began to turn against the 
 internal improvement system. Partly responsible was the taxa- 
 tion law passed at the preceding session of the legislature, 
 providing for a levy of twenty cents on each hundred dollars 
 of real and personal property in the state. -^ The proceeds 
 from the tax were to be used to meet the ordinary expenses of 
 the government. This tax had no direct connection with the 
 public works program, but many people feared that it was the 
 beginning of direct taxation to pay the interest on the rapidly 
 
 ^^ Interna! Improvement Reports, 1838-1839, report of the committee on inter- 
 nal improvements to the house on the Albion and Grayville Railroad, January 
 2, 1839, 1. 
 
 ^^ Peoria Register, January 19, 1839. 
 
 -'^Illinois State Register, February 19, 1839; House Journal, 1838-1839, 600. 
 
 -1 Laivs of Illinois, 1839, 9.
 
 156 ILLINOIS INTERNAL IMPROVEMENTS 
 
 accumulating debt. In commenting on the revenue law, the 
 editor of the Lacon Herald said that he agreed to devising 
 some plan for augmenting the income of the state to meet the 
 ordinary expenses of the government, but that he could not 
 acquiesce in any direct taxation to sustain the system of inter- 
 nal improvements." 
 
 During the spring and summer of 1839, a series of county 
 meetings were held to demand a special session of the legisla- 
 ture to repeal the system. At a meeting in Bond county on 
 March 16, a resolution was adopted condemning both the 
 revenue law and the internal improvement system.-^ The 
 resolution referred to the $200,000 distributed among the 
 counties without railroads as "hush money," and recommended 
 that the county return its share to the state since it was a 
 "bonus bribe intended to influence acquiescence in a premature 
 and ruinous system of railroads." A. P. Field, the secretary 
 of state, in addressing the assembly declared that the system 
 had been founded on specious promises and calculations of 
 profit which could never be realized. The expense of complet- 
 ing the canal and the railroads was estimated at $21,000,000, 
 which would place an insupportable burden on the state. The 
 meeting appointed a committee which was to request the gov- 
 ernor to call a special session of the legislature. In a letter 
 addressed to Governor Carlin on May 27, 1839, this com- 
 mittee wrote that the people were not consulted when the sys- 
 tem was established and they would never consent to taxation 
 to support public works. 
 
 A Montgomery county meeting held at Hillsboro on April 
 I, adopted a resolution declaring that the projected internal 
 improvements were unwise and injudicious and that they would 
 impoverish the state and load the people with taxes. "^ A com- 
 mittee was also appointed to prepare a petition to the governor 
 requesting a special session of the legislature. Similar meet- 
 ings were held in Morgan, Hancock, Pike, Madison, White, 
 
 22 Lacon Herald, April 20, 1839. 
 
 -^Illinois State Register, March 22, 29, June 28, 1839; Chicago Democrat, 
 April 24, 1839. 
 
 -* Illinois State Register, April 19, 1839.
 
 AS A POLITICAL ISSUE, I 837-1 842 157 
 
 Crawford, Warren, Adams, Peoria, and La Salle counties.-^ 
 The Adams and Warren county meetings passed resolutions 
 proposing classification with the state concentrating its efforts 
 on the most promising part of the system. The meeting held 
 at Peru adopted a resolution stating that the canal should be 
 pushed to keep faith with the national government which had 
 donated large tracts of land, but that the railroads should be 
 classified, with the Central Railroad getting the preference for 
 immediate construction. At Peoria the opinion was expressed 
 that the railroads should be abandoned and the canal com- 
 pleted. 
 
 Occasionally, however, a word was spoken in behalf of the 
 system as it stood. Residents of Edgar county meeting at Paris 
 on June 3, 1839, declared themselves by a 261 to 60 vote in 
 favor of continuing the public works. They also passed a 
 resolution requesting the governor not to call a special session 
 of the legislature.^^ 
 
 The issue of a special session to repeal or modify the public 
 works program was taken up by the newspapers. The State 
 Register claimed that the demand for a special session was a 
 Whig scheme to break up the system and elect a member of 
 their party to the United States Senate. It was against abandon- 
 ing this work and thought that only retrenchment was needed. 
 In taking a stand against classification it brought forward a 
 scheme by which the people might decide every year what sum 
 they would spend upon improvements. Classification would 
 result in repeal, the Register declared, for "strike off a single 
 work, or classify a single road into a second or third class, and 
 you make the friends of such road the mortal enemies of the 
 whole system, and they will go for repeal." ^^ 
 
 The Whig papers were generally in favor of calling a spe- 
 cial session. The Daily Chicago American strongly urged that 
 something be done to stop the internal improvements.-'' It 
 
 -^ Alton Telegraph, May 11, 18, 24, 1839; Illinois State Register, June 14, 21, 
 November 30, 1839; Quincy IVhig, July 6, September 7, 1839; Sangamo Journal, 
 August 16, 1839. 
 
 ^^ Illinois State Register, June 21, 1839. 
 
 ^~ Ibid., April 5, 18, June 21, July 6, 1839. 
 
 ^^ Daily Chicago American, Pvlay 29, June 18, 1839.
 
 158 ILLINOIS INTERNAL IMPROVEMENTS 
 
 declared that the mass of the people wanted a special meeting 
 of the legislature to repeal the system. At least $3,000,000 
 more would be spent on the improvements before the next 
 regular session unless something was done quickly to stop the 
 work. The American declared that the legislature was not to 
 blame for the system as nearly everyone had favored it in 1837 
 when money seemed plentiful and the people had thought that 
 the system could be completed without an increase in taxes. 
 The change in the financial condition of the country had put a 
 different light on the whole thing. 
 
 The Qiiincy Whig was especially vociferous in its demand 
 for a special session.-'* It contended that there had been a 
 revolution in public opinion against the system since the legis- 
 lature had last met in the regular session. It recommended 
 that the laborers and contractors should be paid after which 
 the whole system should be suspended. The Whig was in 
 favor of building some internal improvements such as good 
 turnpike roads, but it was against taxing the people to pay for 
 building 1300 miles of railroad which it denounced as the 
 "grand Van Buren system." 
 
 The sentiment toward the Illinois and Michigan Canal was 
 generally favorable for continuing the project. The Alton 
 Gazette was an exception. In an editorial on July 30, the paper 
 declared that when the state should attempt to curtail or 
 modify her system of internal improvements, the first to be 
 dropped should be the canal, a single mile of some portions of 
 which cost more than fifty miles of railroad.^*' It asked why 
 the people of other sections of the state should be deprived of 
 the benefits resulting from improvements when they were likely 
 to be taxed for the construction of a canal less than one hun- 
 dred miles in length. 
 
 When Governor Carlin finally decided in November to call 
 the legislature to meet on December 9, a number of the news- 
 papers changed their position. The Whigs began to doubt the 
 wisdom of calling a special session, though they still professed 
 
 -^ Quincy JVhig, July 6, October 5, November 23, 1839. 
 2° Reprinted in the Sangamo Journal, August 9, 1839.
 
 AS A POLITICAL ISSUE, I 837-1 842 I 59 
 
 to favor classification. It appears that the Whigs sought to 
 place responsibility for the special session on the governor, al- 
 though they had been most insistent in demanding that one be 
 called. The Sangamo Journal and the Qiiincy Whig charged 
 Governor Carlin with inconsistency. In July, they declared, he 
 had been an uncompromising friend of the system, but now he 
 was an opponent and friendly to classification. Some of the 
 Democratic papers backed up Carlin, while others opposed 
 him. The Chicago Deftiocrat, which criticised the governor 
 for calling the special session, was censured for this attitude 
 by the State Register, which felt that the criticism was dis- 
 respectful to the governor and wholly unmerited. The Regis- 
 ter declared it would be time enough to censure him after he 
 had given his reasons for calling the legislature together; the 
 governor doubtless knew better than any editor the wishes of 
 the people In this matter, and he had only done his duty in 
 calling the legislature together to discuss the internal improve- 
 ment program. Democratic leaders at the beginning of the 
 session disclaimed any responsibility for calling the general 
 assembly, and they were inclined to let Carlin explain the rea- 
 sons and suffer the consequences of having called it.^^ 
 
 In his message to the general assembly Carlin gave as his 
 reasons for calling the special session, the demand of the peo- 
 ple for a modification of the internal improvement law, and 
 the necessity of doing something to arrest the costly expendi- 
 tures on what appeared to be unnecessary work.^" He stated 
 that he had always thought the system too extensive for the 
 resources of the state, and recommended that in the future all 
 labor and expenditures be concentrated upon the most useful 
 and promising roads, and upon the improv'ement of such of 
 the larger rivers as might be navigable by steamboat, and to 
 suspend operations and expenditures on other works until the 
 more important were completed. The governor gave a sum- 
 mary of the financial condition of the state, estimating the 
 total state debt on account of internal improvements at that 
 
 ^^ Illinois State Register, October 12, November 9, 16, 1839; Sangamo Journal, 
 September 28, November 15, 1839; Quincy Whig, September 14, 1839. 
 ^'-Senate Journal, 1839-1840, 9-12.
 
 l6o ILLINOIS INTERNAL IMPROVEMENTS 
 
 time as $9,752,000, and predicting that the debt would amount 
 to $21,846,444.50 on completion of all public works author- 
 ized by law. He concluded with the declaration that some 
 members of the legislature would be unwilling to suspend the 
 projects of their own district but he hoped that selfish interests 
 would be sacrificed for the welfare of the state. 
 
 When the special session got underway it soon became ap- 
 parent that there was little unanimity of opinion on the internal 
 improvement question. Proposals varied from outright repeal 
 to continuation of the system as it was then constituted. Early 
 in the session, Wyatt B. Stapp, representing Warren, Knox, 
 and Henry counties, offered resolutions in the house which 
 denounced the system in harsh words. He declared that the 
 people of the state of Illinois viewed with just indignation and 
 alarm the extravagant and reckless manner in which many 
 millions of dollars had been expended upon works from which 
 there was little prospect of any benefits. He charged that the 
 people had been led to believe that the cost of the system would 
 not exceed $8,000,000, that they had been deluded into think- 
 ing that they were to have railroads to every corner of the 
 state without being taxed one cent, and the dividends on bank 
 stock and the income from railroads would not only provide 
 the interest on all sums paid for the construction of the system 
 but would also produce sufficient revenue to defray the ordi- 
 nary expenses of the government. Instead, there was a debt 
 of more than $11,000,000 with the work barely begun, and 
 if the system was to be completed, ruin and desolation, and a 
 debt of at least $40,000,000 would be the result. Stapp moved 
 that a bill be reported by the committee on internal improve- 
 ments, repealing the internal improvement law and dismissing 
 the officers of the system in the pay of the state. Robert Smith 
 of Madison county asked that the resolutions be laid on the 
 table, which was carried by a vote of 43 to 40.^^ 
 
 Various propositions were placed before the senate for ex- 
 tricating the state from its embarrassment. William H. David- 
 son of White county proposed a suspension of all operations 
 
 ^^ House Journal. 1839-1840, 28-30.
 
 AS A POLITICAL ISSUE, I 837-1 842 161 
 
 upon the public works until 1841, In order to give the people 
 of the state an opportunity to express their views upon the 
 propriety of continuing the system by the choice of such in- 
 dividuals at the next general election as would reflect their 
 sentiments upon the question In the legislature.^* He stated 
 at the time the system was adopted the people had believed It 
 could be carried without resort to taxation, that the bank 
 dividends, the premium upon bonds, and other sources would 
 be sufficient to defray the Interest on the sum borrowed until 
 after the works were completed, when they could support 
 themselves and pay off the principal on the cost of construc- 
 tion. Now that the deranged monetary affairs of the country 
 had dried up those resources, the people should have a chance 
 to decide whether they wanted to continue the works, since 
 they would have to bear the cost. 
 
 Senator John S. Hacker of Union county was In favor of 
 suspending work on the less Important parts of the system and 
 completing the remainder. ^^ He denied that the resources of 
 the state were dried up or that its resources had wholly failed, 
 but he admitted that the system was an extravagant one. He 
 argued that If the whole system were abandoned there would 
 be nothing to show for the money expended, while if some of 
 the works were completed there might be enough revenue to 
 pay the interest on the principal borrowed. He asked if the 
 senators were "willing to saddle upon their constituents a debt 
 of $4,000,000 with not a dollar's worth of property to show 
 for money expended." Senator Byrd Monroe, representing 
 Clark and Coles counties, made similar pleas for curtailment. 
 He proposed to abandon 600 miles of railroad, and to repeal 
 nearly all the appropriations made at the last session of the 
 legislature, so as to reduce the cost of the system more than 
 $5,000,000 and leaving a balance of approximately $4,000,000 
 to be expended. 
 
 John Moore of McLean county introduced a resolution In 
 the house which proposed to instruct the committee on internal 
 
 ^'^ Senate Journal, 1839-1840, 23, 34-35; Illinois State Register, January 8, 
 1840. 
 
 ^^ Senate Journal, 1839-1840, 129; Illinois State Register, January 15, 1840.
 
 1 62 ILLINOIS INTERNAL IMPROVEMENTS 
 
 improvements to report a bill for completing certain public 
 works and abandoning others.^*' The resolution asked for com- 
 pletion of the Illinois Central and Northern Cross railroads, 
 the Great Western Mail Route, and the improvements on the 
 Great Wabash, Illinois, and Rock rivers. Moore proposed, 
 too, the reorganization of the board of public works and the 
 board of fund commissioners so as to reduce the number of 
 commissioners on each board. 
 
 The system had a consistent champion during the debates in 
 William J. Gatewood of Gallatin county." He declared that 
 if the state abandoned the improvements, private companies 
 would seize the works and appropriate them for their own use. 
 Charters had once been granted to companies for constructing 
 railroads along the routes of the Central, the Alton and 
 Shawneetown, the Alton and Mount Carmel, and the North- 
 ern Cross roads. Gatewood charged that those people most 
 clamorous against the system were deliberately attempting to 
 get the state to abandon the works so that these companies 
 might be revived to receive the benefit of the work which the 
 state had done. 
 
 Numerous proposals were made for the completion of one 
 certain work while all others were to be dropped.'^ In nearly 
 all such proposals individuals sought to complete works in 
 their own districts. When Joseph Naper of Cook county 
 introduced a bill to reduce the number of railroads to one, 
 John Crain of Washington county moved that the Illinois 
 Central be the road selected for completion. Isaac P. Walker 
 of Vermilion county, likewise, offered a bill to reduce the sys- 
 tem to one railroad. Two amendments were proposed for the 
 Walker bill. Robert McMillan of Edgar county moved that 
 the road selected be one running east and west across the state, 
 while Milton Carpenter of Hamilton county asked that it be 
 the Central Railroad. John Dawson of Sangamon county 
 proposed to keep in effect only that provision of the internal 
 
 ^^ House Journal, 1839-1840, 46. 
 ^'^ Illinois State Register, January 15, 1840. 
 
 ^^ House Journal, 1839-1840, 46, 211-15, 250, 258, 283, 284, 287, 299; Senate 
 Journal, 1839-1840, 149, 150.
 
 AS A POLITICAL ISSUE, I 837-1 842 1 63 
 
 improvement act relating to the Northern Cross Railroad. 
 James H. Lyons, representing Champaign county, would have 
 completed only the eastern portion of the Northern Cross line 
 from Sydney to the Wabash river. Robert Smith of Madison 
 county sought to have the Terre Haute, Shelbyville and Alton 
 Railroad completed, and James Rawalt, the Fulton county 
 representative, asked for the construction of the Peoria and 
 Warsaw Railroad from Peoria to Canton. 
 
 Some members of the house proposed bills providing for 
 continuation of river improvement In their district. Comple- 
 tion of the Rock river project was sought by James Craig of 
 Jo Daviess county. Joseph W. Churchill of La Salle county 
 wanted work to continue on the Illinois river. Joseph G. 
 Bowman, the Wabash county representative, asked for com- 
 pletion of the Great Wabash project under compact between 
 Illinois and Indiana. In the senate, Robert Blackwell, repre- 
 senting Effingham, Fayette, and Clay counties, introduced a 
 bill to provide for completion of the Great Western Mail 
 Route. 
 
 Finally, a bill to repeal the act "to establish and maintain 
 a general system of internal Improvements" was passed. The 
 bill was introduced In the senate on December 28, by William 
 Weatherford, representing Morgan, Scott, and Cass counties, 
 and after many unsuccessful attempts at amending to retain 
 portions of the system In which different senators had a special 
 interest, it passed the senate on January 20 by a vote of 21 
 to 19. Eight days later the bill passed the house, 47 to 35.^^ 
 The bill did not become a law, however, through a technicality. 
 When It was on its way through the senate an amendment was 
 offered providing that no money should be paid for the right- 
 of-way except where a railroad may be completed.^" The 
 amendment was adopted, but not copied onto the bill, and left 
 on a separate sheet of paper. When the bill was read In the 
 house the proviso was not with It, having been lost or ab- 
 
 ^^ House Journal, 1839-1840, 22, 264; Senate Journal, 1839-1840, 64, 133, 134, 
 
 153. 155- . , 
 
 *o Letter of John J. Hardin of Morgan county to the Peoria Register reprinted 
 in the Lacon Herald, February 19, 1840.
 
 164 ILLINOIS INTERNAL IMPROVEMENTS 
 
 stracted by someone. Upon its return to the senate after 
 having passed the house, the speakers had their names stricken 
 from the bill, when it became known that the amendment was 
 missing. Davidson introduced an order requiring the speakers 
 to sign the bill. The order was laid on the table, however, by 
 a vote of 20 to 19 with the lieutenant-governor, Stinson H. 
 Anderson, casting the deciding ballot.^^ Thus the bill to repeal 
 the system was defeated. 
 
 When it was supposed that the system was repealed, an act 
 was passed to settle with the contractors and wind up the sys- 
 tem.^" The old board of public works and the board of fund 
 commissioners were abolished. They were replaced by one 
 fund commissioner and three commissioners of public works. 
 The act provided that construction might continue under the 
 old contracts, but that no new work was to be let until pro- 
 vided for by future legislation. In commenting on the work 
 of the special session, the State Register declared that "the 
 system of internal improvements, concerning which the legis- 
 lature was called together, is undoubtedly unrepealed." ^^ 
 
 By the close of 1839 complete abandonment of the internal 
 improvement system was becoming increasingly acceptable 
 throughout the state. A number of Democratic county conven- 
 tions passed resolutions demanding cessation of work on the 
 railroad system.^* The Democratic state convention, conven- 
 
 ^^ Senate Journal, 1839-1840, 230-31. 
 
 "^^ House Journal, 1839-1840, 293, 316; Laivs of Illinois, 1840, 93-96. 
 
 ■'•' Illinois State Register, February 5, 1840. 
 
 "^^ Ibid., November 23, 30, December 7, 1839; January 4, April 10, May 29, 
 1840. Scott county Democrats meeting at Winchester on November 2, 1839, 
 passed a resolution expressing their unqualified opposition to the system of 
 internal improvements. A week later the Peoria county Democrats declared, 
 "we are opposed to the further prosecution of the useless and unproductive 
 scheme of the railroad system." The Lee county meeting at Dixon on November 
 16, favored classification, with river improvement, the Central Railroad, and the 
 two Cross railroads in the first class. The following day the Democratic con- 
 vention in Sangamon county went on record against further increases in the state 
 debt. On November 19, the convention held at Greenville in Bond county added 
 its disapproval. The Democrats assembled at Brownsville in Jackson county on 
 November 23 passed a resolution declaring that since to complete the whole 
 system seemed impossible without ruinous taxation, the internal improvement 
 program should be curtailed ; that the Central Railroad was the most important 
 of ail the works and should be completed, while the state was bound to complete 
 the Illinois and Michigan Canal because of the land grant from the national 
 government. A convention meeting at Danville on the same day also advised 
 reduction. Menard county Democrats also gave their disapproval to any further 
 work on the railroad system.
 
 AS A POLITICAL ISSUE, 1837-1842 165 
 
 ing in December at Springfield, however, made no recom- 
 mendations in regard to the internal improvement system. 
 
 Both parties sought to place the blame of the state debt on 
 their opponents. The Quincy Whig tried to show that the 
 Democrats were not only the first supporters of the internal 
 improvement system, but until it began to grow unpopular 
 with the people, were completely identified with it as a party. 
 The Quincy Argus rejoined with the argument that the editor 
 of the Whig was ignoring the fact that two-thirds of all Whigs 
 in the legislature in 1837 voted for the measure.*^ 
 
 Most Whigs believed the problem of the state debt could 
 be solved only with the aid of the national government. The 
 Sangamo Journal stated in an editorial on July 24 that the only 
 solution was the passage of Henry Clay's distribution bill. 
 Whig proposals for assumption of state debts by the national 
 government met the determined opposition of Governor Car- 
 lin. In a letter to Richard M. Young, United States Senator 
 from Illinois, Carlin declared: 
 
 I must repeat were I in Congress I would vote against any and 
 every measure tending that way, were it even to save Illinois herself. 
 Should the government assume the debts of Illinois must she not 
 assume the debts of all other states and of course contribute a like 
 amount to states not indebted, and the whole country become over- 
 whelmed and enslaved."*" 
 
 During the summer of 1840 the canal question became an 
 issue in Cook county politics. A disagreement in the Demo- 
 cratic convention led the disgruntled group to charge that the 
 Democratic ticket was anti-canal. When an independent canal 
 ticket was nominated, the Whigs chose no candidates, but gave 
 the canal ticket their support. The regular Democratic ticket 
 won; John Pearson was elected senator over James Turney, 
 and Ebenezer Peck, Albert G. Leary, and Richard Murphy 
 representatives over W. B. Ogden, John Wilson, and G. A. O. 
 
 '^^ Quincy fVhig, August i, 1840; editorial of Quincy Argus reprinted in 
 Illinois State Register, January i, 1840. 
 
 "IB Carlin to Young, February 18, 1840, Governors' Letter Books, 1S40-1855, 
 edited by Evarts B. Greene and Charles M. Thompson {Collections of the 
 Illinois State Historical Library, Volume VII, Springfield, 1909), 8.
 
 l66 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Beaumont. The Chicago American charged that the canal 
 laborers were responsible for the defeat of the canal ticket.^^ 
 
 Since the state had no funds on hand to meet the interest 
 payment falling due January i, 1841, the legislature was con- 
 vened on November 23, more than a month ahead of schedule, 
 in order to give it time to provide means for paying the in- 
 terest. 
 
 In his message Governor Carlin recommended that a bill be 
 passed authorizing the hypothecation or sale of bonds below 
 par to pay the interest due on January I, 1841.^^ He suggested 
 that an effort be made to secure for the state some of the pro- 
 ceeds from the sale of public lands to meet future interest 
 payments. He recommended, therefore, that the general as- 
 sembly instruct the Illinois delegation in Congress to use their 
 influence to procure passage of John C. Calhoun's bill ceding 
 to the states the public lands lying within their respective 
 limits, on the condition of their paying into the national treas- 
 uary, on February i, annually, one-half of the proceeds aris- 
 ing from the sales and reserving the other half to themselves. 
 The governor further proposed the sale of canal lands to pay 
 the interest on the canal debt. 
 
 In discussing the problem of providing means for paying 
 the interest on the debt, the Quincy Whig asserted there were 
 but two courses open to the state: taxation or repudiation.^^ 
 "Let us pay now and our credit will rise," the Chicago Tribune 
 declared. ^° It expressed regret that the governor had not 
 favored direct taxation in his message. The Sparta Democrat 
 warned that any increase in taxes would meet with serious 
 opposition, but admitted that taxation would eventually be 
 adopted to pay the state debt.^^ Richard F. Barrett, the fund 
 commissioner, sent a communication to the legislature, re- 
 questing that taxation or some other permanent provision be 
 
 ■*' Chicago Weekly Tribune, June 27, July 18, 1840; Daily Chicago American, 
 June 25, July 27, 30, August 5, 1840. 
 
 ■*8 Message of Governor Carlin, November 26, 1840, House Journal, 1840- 
 1841, 9-16. 
 
 ■*» Quincy Whig, December 26, 1840. 
 
 50 Chicago Weekly Tribune, December 5, 1840. 
 
 ^^ Sparta Democrat, December 11, 1840.
 
 AS A POLITICAL ISSUE, I 837-1 842 I 67 
 
 adopted to provide for future interest payments/" He pointed 
 out that the state credit could not be sustained much longer 
 by borrowing. Such expressions favoring taxation, however, 
 were the exception rather than the rule. 
 
 After passing a law to provide for the payment of the in- 
 terest due on January i by the hypothecation of state bonds, 
 the legislature proceeded to consider the problem of meeting 
 future interest payments. Many proposals were made, but 
 none seemed to have enough advocates to secure their adoption 
 by the legislature. The house finally appointed a select com- 
 mittee of nine to study the problems of providing for the pay- 
 ment of the interest, the disposition of the system of internal 
 improvements, and the continuance of the canal. The com- 
 mittee made its report on February 27.^^ 
 
 Taking up the disposition of the railroad system first, the 
 committee recommended that the plan submitted by the com- 
 mittee on internal improvements be adopted. This plan pro- 
 vided for the total suspension of all operations upon the 
 several works, for the reservation to the state of all lands and 
 rights acquired under the system from forfeiture to the in- 
 dividuals or corporations from whom they were obtained, and 
 for the sale of all the perishable materials and iron belonging 
 to the state. The select committee further concurred in the 
 plan to give up the railroads to private companies upon the 
 condition that the work done by the state should be valued, 
 that the company should expend a sum equal to the valuation 
 and then half as much as would be necessary to complete the 
 work before the state should be called upon to contribute any- 
 thing further in its prosecution, after which, the state and the 
 company were to be joint proprietors and participate in the 
 profits of the system. 
 
 In its recommendations for providing means to pay the in- 
 terest, the select committee concurred with the finance com- 
 mittee in its plan for taxing the salaries of state ofiicials and 
 
 ■'■- Letter of Barrett to the legislature, January 7, 1841, Reports General 
 Assembly, 184.0-1841, senate, 330. 
 
 5'^ Report of the select committee of nine, February 27, 1841, Ibid., 1840-1841, 
 house, 389-97.
 
 l68 ILLINOIS INTERNAL IMPROVEMENTS 
 
 members of the medical and legal profession and for a grad- 
 uated tax upon deeds and other instruments of writing to be 
 recorded. It did not, however, concur with the committee on 
 finance in its proposals to tax merchants. The select committee 
 further proposed that, in addition to the taxes already laid, 
 the sum of twenty cents should be collected on every $ioo of 
 property, and that in valuation of real estate the minimum 
 should be fixed at four dollars an acre. Since the revenue to be 
 derived from taxation would not be available for some time, 
 the committee recommended that the governor should be 
 authorized to issue interest bonds in such amount as would be 
 absolutely necessary to raise funds for the payment of interest 
 and the redemption of bonds hypothecated. 
 
 The committee further recommended that a law should be 
 passed to legalize the suspension of specie payment by the 
 State Bank, upon the condition that the bank should advance 
 to the state the sum of $100,000 annually, until the next reg- 
 ular meeting of the general assembly. This bank bonus was 
 to be applied to the payment of state debts other than those 
 due the bank. 
 
 For the canal the select committee recommended a steady 
 and rapid progress toward completion. To finance the project 
 the state should issue $3,000,000 more bonds to be sold. 
 
 The legislature eventually passed a law to provide addi- 
 tional state revenue. A tax of ten cents on each $100 of real 
 and personal property was levied, and the fund raised by this 
 means was set aside for the payment of interest on the state 
 indebtedness. The minimum valuation of any lands subject 
 to taxation was fixed at three dollars an acre. A law also was 
 passed authorizing the governor to issue bonds which the fund 
 commissioner was to sell at the best price possible to raise 
 funds for paying the interest. Another act abolished the board 
 of public works and appointed the state treasurer to adjust its 
 accounts. Finally, a law was passed providing for the com- 
 pletion of that part of the Northern Cross Railroad between 
 Springfield and Meredosia. Thus, the internal improvement 
 system was completely disposed of, but the problem of paying
 
 AS A POLITICAL ISSUE, 1837-1842 I 69 
 
 the interest on the debt was not solved. The legislature ad- 
 journed without making any provision for the continuation of 
 work on the canal. °^ 
 
 The Whig papers bitterly denounced the general assembly 
 after it adjourned. The Vandalia Free Press declared that 
 after a session of ninety-eight days nothing had been accom- 
 plished, that a "more useless expenditure of time and money 
 had never occurred in the annals of American legislation." " 
 In the north both Whig and Democratic papers attacked the 
 Cook county delegation for failing to secure funds to complete 
 the Illinois and Michigan Canal. The Whig papers charged 
 that the partisanship of Pearson, Peck, Leary, and Murphy 
 alienated the friends of the canal in the legislature and foiled 
 their efforts to secure any measures for its completion. It was 
 stated that their own party failed to sustain the Cook county 
 representatives in behalf of the canal, and when they worked 
 for the election of a partisan canal commissioner the Whigs 
 became disgusted and withdrew their support from the canal. 
 The Sangamo Journal remarked that Cook and Will counties 
 were reaping the bitter fruit of seed planted by their own 
 hands. ^® 
 
 The friends of the canal did not give up hope of its com- 
 pletion. Meetings were held in northern counties and resolu- 
 tions drafted requesting the governor to call a special session 
 of the legislature for the purpose of devising means to con- 
 tinue work on the canal. ^' Northern newspapers likewise took 
 up the appeal for a meeting of the legislature, and some of 
 them demanded the resignation of the Cook and Will county 
 members in the hope that more efficient ones might be elected 
 to represent the canal region in the special session. Papers in 
 the southern part of the state opposed a meeting of the legis- 
 
 ^* Laies of Illinois, 1841, 165, 166, 194. 
 
 55 Editorial reprinted in Sangamo Journal, March 19, 1841. 
 
 ^^ Alton Telegraph, February 13, 1841 ; Daily Chicago American, January 14, 
 February 15, March 18, 1841; Ninav:ah Gazette, March 6, 1841 ; Sangamo 
 Journal, March 26, 1841. 
 
 5^ Counties holding meetings included Marshall, La Salle, DuPage, Bureau, 
 Stark, Putnam, and Peoria counties. Illinois State Register, April 2, 1841 ; 
 Ninaixah Gazette, March 13, 1841; Sangamo Journal, March 26, 1841; Chicago 
 Weekly Tribune, May i, 1841.
 
 lyO ILLINOIS INTERNAL IMPROVEMENTS 
 
 lature, although the Belleville Advocate declared that the 
 canal would be of advantage in marketing products of that re- 
 gion. Wheat was selling in Chicago at a dollar a bushel, while 
 south of Sangamon county the price was only fifty-eight to 
 sixty-three cents. The difference occurred because the products 
 could be shipped east from Chicago by a continuous water 
 route, the Advocate pointed out, and if the Illinois and Mich- 
 igan Canal were completed, the southern part of the state 
 would enjoy the same advantage.^* 
 
 Governor Carlin expressed the opinion that a called session 
 would be inexpedient because he thought nothing would be 
 done for the canal since the legislature had the same members 
 as at the previous session. He was in favor of selling more 
 state bonds to raise funds for the continuation of work on the 
 canal. 
 
 The Whigs generally opposed further sales of bonds. To 
 support their arguments they pointed to clippings from the 
 New York Herald stating that the hypothecation of bonds to 
 Macalister and Stebbins had destroyed the credit of the state.®^ 
 The Sangamo Journal argued that while the canal should be 
 completed, the state could never do it through the sale of 
 bonds, but that if the canal were put in the hands of a private 
 
 s^ Clipping from the Belleville Advocate printed in the Illinois State Register, 
 October 15, 1841. 
 
 58 In June, 1841, John D. Whiteside, fund commissioner, made an agreement 
 with Macalister and Stebbins of New York to hypothecate with them interest 
 bonds of $1000 each at the rate of $4CK) per bond for forty cents to the dollar. 
 He delivered to the firm 804 bonds with the understanding that they were to 
 pay $321,600 on the interest due on the state debt, and that they would not dis- 
 pose of the bonds unless sold at seventy-five per cent of their par value. White- 
 side promised that the loan would be refunded within six months, and that 
 zVi per cent interest would be paid on it during the period. Macalister and 
 Stebbins paid $261,560.33 on the interest of the state debt in July. As the 
 price of Illinois bonds declined after the contract, Macalister and Stebbins 
 asked for more security and took into their possession forty-two more $1000 
 bonds and $67,215.44 in scrip, so that they held a total of $913,215.44 in 
 state liabilities as collateral security for the loan of $261,560.83. The firm had 
 to pledge these bonds in various amounts with different brokers and banks in 
 order to raise money loaned the state. When the fund commissioner was unable 
 to repay the loan in December, the creditors of Macalister and Stebbins pro- 
 ceeded to sell the bonds in their possession in an effort to satisfy the advances 
 which they had made to that firm in order that it might loan the state the 
 $261,560.83. Five hundred and thirty-five of the state bonds selling at fifteen 
 to twenty cents on the dollar netted only $89,877.24.
 
 AS A POLITICAL ISSUE, 1837-1842 I7I 
 
 company it would soon be completed.*"' The State Register 
 opposed this plan on the ground that the state would not 
 receive any revenue from the completed canal with which to 
 pay the interest on the state debt.*'^ 
 
 The heavy debt and the hard times which made it seem even 
 more burdensome led some people to despair of preserving 
 the state credit and to demand repudiation. Meetings were 
 held in Bond, Montgomery, and Scott counties to protest 
 against additional taxation to pay the state debt. At the Bond 
 county meeting held early in 1841 a memorial was adopted, 
 which Richard Bentley, the county's representative in the 
 house, presented to the legislature. The reasons assigned for 
 repudiation in the petition were that the debt was contracted 
 by the legislature without the consent of the people, that the 
 issue of bonds by the state was in violation of the Federal 
 Constitution which prohibits issuing bills of credit, and that 
 to levy a tax to pay interest would be ruinous. After two 
 attempts at reading were refused, Bentley withdrew the peti- 
 tion.^- 
 
 The doctrine of repudiation was quite generally denounced 
 by the newspapers of the state, but accusations were hurled 
 back and forth in an attempt to place opposition papers on the 
 defensive. When the Sangamo Journal published accounts of 
 the repudiation meetings without any comment, the Chicago 
 American expressed a regret and asked the Journal if it en- 
 dorsed the proceedings of those meetings. The State Register 
 declared that the Journal had stated that the state must choose 
 between repudiation or taxation, and since taxation sufficient 
 to pay the debt was impossible, the Journal must be willing to 
 follow a policy of repudiation. The Journal on the other hand 
 could point out that a proposed anti-repudiation plank in the 
 Democratic state platform had been tabled. Perhaps the only 
 paper in the state which espoused repudiation was the Battle 
 Axe^ a sheet without much influence. The Alton Telegraph, 
 
 ^'^ Alton Telegraph, November 13, 1841 ; Ninaivah Gazette, April 17, 1841; 
 Sangamo Journal, September lo, October 22, November 19, 1841. 
 ^1 Illinois State Register, November 26, 1841. 
 ^- Ibid., April 2, December 24, 1841 ; Sangamo Journal, January 21, 1841.
 
 172 ILLINOIS INTERNAL IMPROVEMENTS 
 
 however, was not far from repudiation when it declared that 
 the payment of interest should stop unless the bondholders 
 would take still more bonds at par.®^ 
 
 After July, 1841, the state defaulted on her interest pay- 
 ments and her bonds fell to fourteen and fifteen cents on the 
 dollar. Eastern papers often copied articles from Illinois 
 newspapers discussing repudiation thereby further depressing 
 the credit of the state. Statements were frequently heard in 
 Illinois that the fear of taxation was driving immigration to 
 other states.^''* The Sangamo Journal brought forward figures 
 to show that taxes in Illinois were not as high as in surround- 
 ing states. It pointed out that in Ohio a two dollar tax was 
 paid on every $100 of assessed property, in Indiana something 
 like one dollar was paid on the same amount of property and 
 besides, a poll tax was levied there, and in Missouri one per 
 cent was collected on property as well as heavy license taxes, 
 while in Illinois the taxes in no cases exceeded eighty cents on 
 $100 of assessed property.*'^ It must be remembered that other 
 western states had heavy debts as well as Illinois.'"' Indiana 
 had stopped interest payments some time before Illinois, and 
 the state of Mississippi had adopted a policy of outright 
 repudiation. Thus the financial confusion was general through- 
 out the country, and Illinois was in no worse plight than many 
 of her sister states.®' 
 
 During 1841 and 1842 many proposals were made for 
 rescuing the state from her plight, but in all of them a per- 
 sonal, sectional, or party interest can be detected. The San- 
 
 '^'^ Alton Telegraph, November 13, 1841 ; Daily Chicago American, January 
 12, 1841 ; Illinois State Register, October i, 29, November 5, 1841 ; Sangamo 
 Journal, January 21, June 11, November 19, December 25, 1841. 
 
 "■* Contrary to common belief that the population of Illinois remained prac- 
 tically stationary from 1840 to 1845, a substantial increase took place. The 
 increase of thirty-nine per cent was a higher percentage than in most other 
 states. Chicago Democrat, January 13, 1846; Reports General Assembly, 1846- 
 1847, house, 48. 
 
 ^^ Sangamo Journal, May 20, 1842. 
 
 <><' Pennsylvania had a debt of $40,000,000; Alabama, $11,500,000; Louisiana, 
 $23,871,000; Mississippi, $12,500,000; Indiana, $15,000,000; Ohio, $13,724,755; 
 and Michigan, $5,000,000. Only seven states were without debts — all small 
 eastern states. Article reprinted from New York Herald in Illinois State Register, 
 April 23, 1841. 
 
 ^'^ Ibid., August 20, 1841 ; Sangamo Journal, October 29, December 17, 1841.
 
 AS A POLITICAL ISSUE, I 837-1 842 173 
 
 gamo Journal consistently maintained that if Clay's distribu- 
 tion bill were adopted the state would receive sufficient funds 
 from the public lands to enable her to pay the interest on the 
 debt and complete the public works.*'* The State Register 
 opposed Clay's Bill on the ground that the policy of distribut- 
 ing the proceeds from the sale of public lands among the states 
 would tend to destroy state sovereignty and consolidate power 
 in the national government."^ Whig papers quite generally 
 were favorable to the distribution bill as a party policy. The 
 Chicago American revived Governor Duncan's plan of internal 
 improvements constructed by private companies to whose stock 
 the state would make subscriptions.'" It also proposed drastic 
 economy in government and taxation to pay the interest on the 
 bonds. From the northeastern section of the state emanated 
 a plan for applying to Congress for further donations of land 
 to be sold and the proceeds used for finishing the canal." At 
 a meeting held at Ottawa, a petition was drawn up and for- 
 warded to Senator R. M. Young, who was to present it to the 
 United States Senate. The petition made a request for 492,8 1 8 
 acres of land, an amount equal to that which had been received 
 by the state of Ohio. It was the general opinion that if the 
 canal could be completed, the revenue which might be derived 
 from the tolls would furnish a fund which might be applied 
 to the payment of the interest on the state debt. Many Demo- 
 crats still clung to the hope that more bonds might be sold. 
 The Sangamo Journal claimed that the Quincy Herald was the 
 only opposition paper which opposed issuing more bonds. '- 
 
 Early in 1842 the State Register offered a plan proposing 
 that the debt be paid by a sale of lands, railroad iron, and 
 other state property. Bonds and other evidences of state in- 
 debtedness were to be received in payment of the property 
 to be sold. The plan also proposed a separation of the state 
 from the banks, to be effected by a withdrawal of the bonds 
 
 ^'^ Ibid., January 22, April 16, May 14, 21, June 11, 1841. 
 ^^ Illinois State Register, May 21, 1841. 
 ''^ Daily Chicago American, May 11, 1842. 
 
 ''^ Alton Telegraph, April 30, 1842; Chicago Democrat, February 18, 1842; 
 Sangamo Journal, February 11, 1842; Illinois State Register, February 18, 1842. 
 '^-Sangamo Journal, December 17, 1841.
 
 174 ILLINOIS INTERNAL IMPROVEMENTS 
 
 held by the banks. A dispute arose over the authorship of this 
 plan. The Sangamo Journal claimed that William H. Hender- 
 son, the Whig candidate for lieutenant-governor, was the 
 author and that the Register had stolen the plan. To these 
 accusations the Register replied that William Gatewood should 
 have the honor of the authorship since he had suggested the 
 plan four months previously, and it charged that a statement 
 embodying the plan had been stolen from his office about 
 December 20, 1841. 
 
 The Register and the Journal also engaged in an argument 
 as to the amount of the state debt, the Register insisting that 
 the bonds sold by the bank, the appropriated school fund, the 
 federal deposit, and all bonds irregularly sold might be de- 
 ducted to the amount of six million dollars, and leaving a 
 debt of $10,213,089. The Journal contended that the debt 
 was at least $17,000,000. The Whig papers apparently took 
 delight in pointing out that such an enormous debt had been 
 contracted during a Democratic administration. The Ottawa 
 Free Trader charged that false statements printed in the Whig 
 papers found their way into the columns of eastern journals, 
 where they were magnified so as to result in a loss of faith in 
 the credit of the state by American and European capitalists.'^ 
 With such irrelevant arguments and impractical schemes as 
 were presented the question could not be settled. 
 
 At a public meeting held in Springfield a committee was 
 appointed which gave a rather able report of the debt situa- 
 tion. The total of the state debt was estimated at fifteen and 
 a quarter million dollars. The committee reported that the 
 only available income at the command of the state consisted 
 of the revenue from the state tax. This they estimated as 
 sufficient to meet the current expenditures of the government, 
 but no more. The committee believed to the fullest extent in 
 the obligation of the state to pay all her debts, but the neces- 
 sity of circumstances compelled her to defer payments until 
 practical measures could be adopted after a thorough examina- 
 
 '^ Daily Chicago American, January 19, 1842; Illinois Gazette, February ir, 
 1842; Illinois State Register, January 21, February 4, 1842; Sangamo Journal, 
 December 10, 1841.
 
 AS A POLITICAL ISSUE, 1837-1842 175 
 
 tion of the state's resources. The return of better times would 
 result in an increase in population and wealth so that the pay- 
 ment of the debt through taxation would not place too heavy 
 a burden on the people. It was also pointed out that savings 
 might be made by economy in public expenditures.'"* 
 
 The debt problem and the continuation of the canal became 
 the chief issues in the election of 1842. Whig county meetings 
 generally passed resolutions opposing the issue of any more 
 bonds for any purpose whatever.^® The Democrats demanded 
 completion of the canal more emphatically than the Whigs.'® 
 The Quincy Whig charged that the Chicago Democrat wanted 
 a Democrat nominated who was favorable to the canal, be- 
 cause the canal supported 5,000 laborers, a sufficient number 
 to keep Illinois from voting for a Whig candidate for Presi- 
 dent.^^ When the Democratic papers of northern Illinois pro- 
 posed to make the canal a party measure, the State Register 
 and the Illinois Gazette warned that the entire Whig press of 
 the southern part of the state would oppose the canal and 
 destroy all hope of its completion." 
 
 The position of the gubernatorial candidates on the internal 
 improvement question was the subject of much debate. The 
 Democrats tried to show that Duncan, the Whig candidate, 
 was the cause of the difficulty in which the state found Itself 
 because he had been governor at the time the system of inter- 
 nal improvements was adopted. At Jacksonville on April 29, 
 Duncan delivered a long speech to refute the charge that he 
 had been originator of the system, and quoted his former acts 
 and speeches to show that he had always favored construction 
 of public works by joint-stock companies.'^ The Whigs de- 
 clared that Thomas Ford, the Democratic candidate, was in 
 
 "^"^ Ibid., January 28, 1842. 
 
 "5 Tazewell county, November 13; Madison county, November 20; McLean 
 county, November 27 ; and Scott county, December 4. The Tazewell and 
 McLean county meetings approved completion of the Illinois and Michigan 
 Canal by the state. Ibid., December 3, 17, 31, 1841. 
 
 ''^Illinois State Register, November 19, 26, December 3, 1841. 
 
 "^ Quincy Whig, November 6, December 11, 1841. 
 
 '•^Illinois Gazette, December 10, 1841; Illinois State Register, September 24, 
 1 841. 
 
 ~^ Ibid., April 8, 1842; Sangamo Journal, April i, 15, May 13, June 3, 1842.
 
 176 ILLINOIS INTERNAL IMPROVEMENTS 
 
 favor of completing the canal when speaking in northern 
 Illinois, and against it in his address in the southern part of 
 the state. '° 
 
 In stating his views on the debt and canal questions, Joseph 
 Duncan had no solution to offer but merely told what he would 
 not do.''^ He opposed further sale of bonds at less than par 
 to continue work on the canal, and would not advise an in- 
 crease in taxation to pay the interest on the debt. He pro- 
 posed to sell all state properties and bank stock, receiving 
 state indebtedness in payment. Being a good Whig he thought 
 that the return of his party to power would bring a prosperity 
 which would enable the state to meet its liabilities. He looked 
 to the national government for aid, rather than for the state 
 to work out its own solution. He promised additional land 
 grants for the canal and aid from the distributive fund if the 
 people would place the Whigs in power. 
 
 The views of Ford were not well known as he had not been 
 actively engaged in state politics prior to his nomination for 
 the governorship. During the campaign he opposed any fur- 
 ther sale of state bonds. He insisted that the state must ac- 
 knowledge its just debt and make provision to pay it.**- The 
 election of Ford gave the state an aggressive executive, who, 
 with the aid of better times, was able to work out a solution 
 of the state's difficult situation. 
 
 ^^ Illinois Gazette, July 23, 1842; Illinois State Register, July 29, 1842; San- 
 gamo Journal, July 22, 1842. 
 
 ^^ Illinois State Register, May 13, 1842; Sangamo Journal, March 4, 1842. 
 ^-Illinois Gazette, July 30, 1842; Illinois State Register, July 22, 1842.
 
 CHAPTER r I I I 
 
 SOLUTION OF THE DEBT AND CANAL 
 PROBLEMS 
 
 WHEN the general assembly convened in December of 
 1842, the state of Illinois was in a position where a 
 decision had to be made on the internal improvement problem. 
 Some permanent provision would have to be made to pay the 
 interest on the state debt If the credit of the state was to be 
 restored. Governor Carlin, in his farewell address to the 
 general assembly, took a pessimistic view of the situation and 
 offered no practical solution.^ In an attempt to assign the 
 responsibility for the state's plight, he charged that Illinois 
 as well as other states had been induced to adopt an extrava- 
 gant system of internal improvements by the wild spirit of 
 speculation engendered by a lavish and reckless issue of paper 
 money by the banks. He estimated the debt at $1 1,171,379.65 
 upon which the legislature would have to provide for the pay- 
 ment of interest. He declared that the sale of state lands 
 could not be relied upon to meet interest payments since there 
 was no money available to invest in land, and taxation also 
 was impossible in consequence of a disappearing circulating 
 medium, a declining tax roll, and popular disapproval. Thus 
 dismissing all hope of making any permanent provision for 
 the payment of interest, Carlin claimed that the only possible 
 solution of the problem was to reduce the principal of the 
 debt by surrendering the lands and other property of the state 
 to the bondholders. He denounced the plan of the Whigs to 
 distribute the proceeds from the sale of the public lands among 
 the states as being unwarranted by the Constitution. He 
 recommended a separation of the banks from the state, and a 
 rigid supervision of the banking institutions in the future. In 
 closing he apologized for his gloomy view of the state's con- 
 
 1 House Journal, 1842-1843, 16-33; Senate Journal, 1842-1843, 11-27.
 
 I 78 ILLINOIS INTERNAL IMPROVEMENTS 
 
 dition and expressed the hope that his successor might work 
 out a solution. 
 
 Thomas Ford, who had suddenly risen from a backwoods 
 judge to the position of chief executive, showed a remarkable 
 grasp of the state's condition in his inaugural address. He 
 frankly stated the responsibility of the state to pay its debts, 
 while asking for patience on the part of the creditors until 
 rehabilitation of the state's finances could be accomplished.^ 
 The total of the state debt he placed at $15,187,348.71. In 
 presenting his program, Ford let it be known to the people of 
 the state that no oppressive taxation was to be levied; at the 
 same time he sought to convince the creditors that the people 
 were determined to pay the debt. He recommended that the 
 creditors be given at a fair valuation all the land of the state 
 in order to diminish the debt as much as possible. He urged 
 the immediate completion of the canal so as to enhance the 
 value of the canal lands and to give the state a source of 
 revenue for paying the interest on the debt. He recommended 
 that the canal be completed on the "shallow cut" plan. In 
 conclusion he asked for strict economy in governmental ex- 
 penditures and that the banks be closed if they could not 
 resume specie payments within a short time. 
 
 With such a strong message from the governor, the legisla- 
 ture was inspired to make a sincere effort to rescue the state 
 from its embarrassment. The bank question was taken up 
 first. On December 12, a joint resolution was passed author- 
 izing the governor with the assistance of the auditor and fund 
 commissioner to enter into negotiations with the Bank of 
 
 2 Message of Governor Ford, December 8, 1842, House Journal, 1842-1843, 
 38-51. Ford estimated the total state debt as follows: 
 
 Internal improvement debt $ 6,014,749.53 
 
 Canal debt 4,436,4o8.cx) 
 
 Bonds issued to purchase bank stock 2,665,000.0x3 
 
 Surplus revenue deposited to account of state by 
 
 United States 447,919.00 
 
 Amount due school fund 335)592-oo 
 
 Due school, college, and seminary fund 472,492.18 
 
 Due State Bank for paying auditor's warrants .... 294,190.00 
 
 Due Bank of Illinois on settlement 369,998.00 
 
 Bonds issued to build a state house at Springfield.. 121,000.00 
 
 Total state indebtedness $15,187,348.71
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 79 
 
 Illinois and the State Bank for the purpose of ascertaining 
 upon what terms an amicable dissolution between the state and 
 the banks could be effected.^ In reply to a communication from 
 the state officials, the directors of the State Bank sent a letter 
 on December 21, in which they signified their willingness to 
 exchange state bonds and scrip for bank stock, on the condition 
 that the general assembly would allow the bank the use of its 
 charter for liquidation and with the further privilege of re- 
 taining its charter if specie payments were resumed within a 
 reasonable time.* Similarly, on January 17, James Dunlap, 
 agent of the Bank of Illinois, sent a communication to the 
 house of representatives suggesting a plan to dissolve the con- 
 nection of the state with the Bank of Illinois.^ 
 
 Accordingly, laws were passed for putting the State Bank 
 and the Bank of Illinois into liquidation and providing in each 
 case for the surrender to the state of the bonds which they held 
 in exchange for the stock in the institution owned by the state.^ 
 The State Bank surrendered bonds and certificates amounting 
 to $2,073,501.51 which the governor burned on February 9, 
 1843, ^^ front of the state house in presence of the general 
 assembly." State indebtedness to the amount of $501,745.36 
 was similarly delivered by the Bank of Illinois and burned by 
 the governor on March 4,^ The governor also made a contract 
 with the Bank of Illinois for the delivery of the residue of 
 $500,000 of state indebtedness, with interest, within one year 
 from February 27, 1843. When the bank failed to keep its 
 agreement, the legislature passed a law in 1845, authorizing 
 
 3 Joint resolution relative to the disconnection of the state from the banks, 
 December 12, 1842, Laivs of Illinois, 184.3, S^i- 
 
 * Reports General Assembly, 1842-1843, senate, 94. 
 
 ^ Ibid., 1842-1843, house, 202. 
 
 6 Laivs of Illinois, 1843, 21-35. 
 
 ' Register of the bonds delivered to the governor by the State Bank on Jan- 
 uary 27, 1843, Internal Improvement Records, XX, 9-54. The state still owed 
 the State Bank some money after the exchange of bonds and stock was concluded. 
 Under the provisions of the eleventh section of the liquidation law of 1843, 
 Governor Ford appointed Richard M. Young and Stephen A. Logan, arbitrators, 
 who on August 14, 1845, made an award of $85,380.45 in favor of the bank. 
 Report of Governor Ford as fund commissioner ex officio, January 2, 1847, Re- 
 ports General Assembly, 1846-1847, senate, 19-38. 
 
 8 Register of the bonds delivered to the governor by the Bank of Illinois on 
 February 28, 1843, Internal Improvement Records, XX, 55-68; Alton Telegraph, 
 March 11, 1843.
 
 l8o ILLINOIS INTERNAL IMPROVEMENTS 
 
 a settlement with the state within four years. ^ Thus the settle- 
 ment with the banks reduced the state debt approximately 
 three million dollars. 
 
 Further to liquidate the debt the general assembly passed 
 an act authorizing the sale of all state lands and property ac- 
 quired in connection with the internal improvement system. ^'^ 
 Such purchases could be paid for in evidence of state indebted- 
 ness as well as in gold and silver. The office of fund commis- 
 sioner was abolished and the governor was appointed as ex 
 officio fund commissioner to settle all suits, debts, or contracts 
 involving the state on account of internal improvements." 
 
 Another act authorized the governor to demand and receive 
 from all persons or companies such bonds as might have come 
 into their possession and remained unsold, and also to receive 
 from all agents of the state all bonds, scrip, or other evidence 
 of state indebtedness which might have come in their hands in 
 pursuance of sales, exchanges, or liquidations.^- All bonds 
 received by the governor were to be cancelled and filed in the 
 office of the secretary of state, and a report giving the amount 
 and description of such bonds was to be made at the commence- 
 ment of the next session of the general assembly. 
 
 No provision was made toward paying the interest through 
 taxation; in fact, the tax rate was reduced to twenty cents on 
 the hundred. The legislature did, however, pass a resolution 
 stating that it fully recognized the legal and moral obligations 
 of discharging every debt contracted by any authorized agent 
 of the state, and that the revenue and resources of the state 
 would be appropriated for that purpose as soon as they could 
 be made available without oppressing the people. ^^ 
 
 By far the most important act of the session was that which 
 provided for the completion of the Illinois and Michigan 
 Canal. The plan for completing the canal as embodied In the 
 act of February 21, 1843, seems to have been suggested by 
 
 9 Report of Governor Ford, March 2, 1843, Reports General Assembly, 1842- 
 1843, house, 419; Laivs of Illinois, 1845, 248. 
 1" Ibid., 1843, 191-93. 
 11 Ibid., 1843, 147-48. 
 ^- Ibid., 1843, 42, 147, 339. 
 13 Ibid., 1843, 335-36.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS l8l 
 
 Justin Butterfield In the summer of 1842 when he mentioned 
 it in a letter to Arthur Bronson, of New York, one of the large 
 holders of canal bonds. ^^ A short time later Michael Ryan, 
 chairman of the committee on canals and canal lands in the 
 state senate, went to New York and discussed the plan with 
 some of the capitalists who held Illinois bonds. ^^ The bankers 
 displayed a willingness to accept the plan and suggested terms 
 on which they would make a loan. 
 
 The committee on canals and canal lands of the senate took 
 up the scheme when the legislature met. In a report on Jan- 
 uary 5, the committee showed that according to the estimate of 
 William Gooding, chief engineer, the canal could be completed 
 on the "shallow cut" plan for $1,600,000, whereas the work 
 would cost $3,098,169,29 to complete under the plan by which 
 construction had been done.^*^ In recommending the adoption 
 of the proposal which had been suggested for completing the 
 canal, the committee pointed out that a completed canal would 
 yield a revenue to offset a portion of the interest charges the 
 state was then unable to meet. 
 
 The act providing for the completion of the canal did not 
 pass without opposition. Members of the general assembly 
 representing southern Illinois declared that their section of the 
 state would be taxed while only the northern counties would 
 benefit.^^ A number of Whig papers in southern Illinois, of 
 which the Alton Telegraph was the most outspoken, made a 
 concerted attack on the proposed canal loan. The Telegraph 
 declared it would be taking the property sacredly pledged for 
 the payment of the $5,000,000 already expended and placing 
 it In the hands of trustees to be used for the reimbursement of 
 a debt to be created for the completion of the canal. ^"^ This it 
 claimed as unjust to the earlier canal bondholders. The canal 
 
 1* Thomas Ford, History of Illinois (Chicago, 1854), 295. 
 
 ^^ Illinois Gazette, December 3, 1842. 
 
 16 Report of William Gooding, December i, 1842, Reports General Assembly, 
 1842-1843, house, 114; report of the committee on canals and canal lands, Jan- 
 uary 5, 1842, Ibid., 1842-1843, senate, 82-85. 
 
 '^~ Chicago Democrat, March 21, 1843; Illinois State Register, March 17, 24, 
 1843. 
 
 '^^ Alton Telegraph, January 7, February 4, 25, March 4, 1843.
 
 I 82 ILLINOIS INTERNAL IMPROVEMENTS 
 
 should have been given over to a company to complete, the 
 Telegraph maintained. It declared that assumption of the 
 state debts by the national government was the only way of 
 escape for the indebted states, and that opposition would mean 
 political death to any candidate for office, thus showing that 
 opposition to the canal measure was partisan and induced by a 
 desire to have the state adopt the Whig program of federal 
 assumption and distribution. 
 
 The canal act authorized the governor to negotiate a loan 
 of $1,600,000 on the pledge of the canal property and its tolls 
 and revenues. ^^ Holders of canal bonds and other evidences of 
 state indebtedness were to be given the preference in subscrib- 
 ing to the loan. The canal was to be turned over to three 
 trustees, two of whom were to be chosen by the subscribers to 
 the loan, and one to be appointed by the governor. The trus- 
 tees were to operate the canal for the benefit of the subscribers 
 and other bondholders until the indebtedness to them was paid 
 in full. After the payment of incidental expenses, the income 
 of the canal was to be disbursed, first, on the interest of the 
 loan, secondly, on interest of other canal bonds held by sub- 
 scribers to the loan, thirdly, on interest of canal bonds held 
 by non-subscribing bondholders, and fourthly, on the payment 
 of the principal of the loan. Many provisions were put into 
 the act to safeguard the interests of the state, including limita- 
 tions on the sale or lease of the lands, lots, and water power 
 of the canal. 
 
 In accordance with the provisions of the canal act. Governor 
 Ford appointed Michael Ryan, a state senator from La Salle 
 county and a former engineer upon the canal, and Charles 
 Oakley, a former fund commissioner, as agents of the state to 
 negotiate the $1,600,000 loan."'' When $3,000 was borrowed 
 from the school fund to finance the agents on their mission, 
 Governor Ford became the subject of an attack by the Alton 
 Telegraph.-^ The agents proceeded to New York, where they 
 
 "^^ Laivs of Illinois, 1843, 54-61. 
 
 -^Illinois State Register, March 31, 1843; Reports General Assembly, 1844- 
 1845, senate, 175. 
 
 -1 Alton Telegraph, April 22, 1843.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 83 
 
 received assurances that the American creditors would sub- 
 scribe their proportion of the loan. Through the aid of David 
 Leavitt, president of the American Exchange Bank of New 
 York, which owned $300,000 canal bonds, the American credi- 
 tors were called together and made their subscriptions amount- 
 ing to $600,000,^^ In the prospect of success thus presented, 
 canal bonds of the state gradually advanced from fifteen cents, 
 the low point of the previous autumn, to thirty-eight cents on 
 June 2, 1843.'' 
 
 In Europe, Oakley and Ryan found the foreign creditors less 
 inclined toward a favorable view of the proposed loan. On 
 June 27 the London Times urged the bondholders to consider 
 carefully whether the security offered by the state was such as 
 to justify a further advance. The European bankers may have 
 been influenced by the Whigs in America who were working 
 against the loan for political reasons. Michael Ryan in a letter 
 to the Ottawa Free Trader wrote that letters from the United 
 States had been received in London advising the capitalists 
 there not to lend Illinois a dollar. In a bitter denunciation of 
 the attempts to defeat the loan, he said, "I suppose the princi- 
 pal motive which induced these heartless wretches to make this 
 effort was to defeat the state in her attempts to pay her debts, 
 and thus favor the Whig project of assumption." "* The 
 charge of Ryan is given some support by an editorial which 
 appeared in the Alton Telegraph declaring that "because we 
 have dared to warn capitalists abroad from loaning this state 
 another dollar, while under the control of the repudiating 
 rascals that now misgovern it, such papers as the Ottawa Free 
 Trader charge us with opposition to the canal." -^ At the same 
 time it reiterated its stand in favor of completion of the canal 
 by the national government. 
 
 When Ryan and Oakley were on the verge of giving up their 
 mission in despair. Baring Brothers, and Jardine and Com- 
 
 '- Report of Michael Ryan, December 13, 1844; Ibid., 1844-1845, senate, 89- 
 96; Illinois Gazette, June 3, 1843; Illinois State Register, June 9, 1843; Illinois 
 Statesman, June 12, 1843. 
 
 '^Illinois Gazette, June 24, 1843. 
 
 -■* Letter of Ryan reprinted in the Illinois Gazette, October 14, 1843. 
 
 -^ Alton Telegraph, July 29, 1843.
 
 184 ILLINOIS INTERNAL IMPROVEMENTS 
 
 pany, two of the largest creditors of the state, decided to make 
 an investigation of the state's proposal.-*' They commissioned 
 Abbott Lawrence, Thomas W. Ward, and William Sturgis of 
 Boston to appoint two competent men to examine the canal 
 and its property, and to report to them accurate data as to its 
 sufficiency as security for the loan. The Boston committee 
 chose as agents to examine the canal. Captain William H. 
 Swift, an engineer of the United States army, and Ex-Gover- 
 nor John Davis of Massachusetts, a Whig politician who at 
 the time was considered as a candidate for the vice-presidency. 
 
 Davis and Swift inspected the canal during the winter of 
 1843-1844;-^ and on March i, 1844, made an elaborate re- 
 port, recommending the loan as a safe investment.-* They 
 found the net canal debt amounted to $4,847,402.83. As the 
 assets of the state, Davis and Swift listed 230,476 acres of 
 land which they estimated would be worth ten dollars an acre 
 at the completion of the canal, and 3,493 lots in Chicago, 
 Lockport, La Salle, and Ottawa, valued at $1,900,000. The 
 canal itself was estimated to be worth five million dollars. 
 Besides the $9,204,670 of property, it was thought that 
 $75,000 to $100,000 a year might be expected from the rental 
 of water power, and canal tolls would reach $363,865.25 by 
 the second year of operation.-^ Thus, the report confirmed 
 substantially the claims which Ryan and Oakley had made for 
 the canal. 
 
 Ryan returned to England with the report of Davis and 
 Swift, only to find the English creditors demanding further 
 guarantees from the state. The bondholders steadfastly re- 
 fused to make the loan until the legislature should adopt a 
 system of taxation to provide an income for the payment of 
 
 -^Illinois Gazette, November 4, 1843; Illinois Statesman, November 27, 1843; 
 Illinois State Register, November 10, 1843; Sangamo Journal, November 9, 1843. 
 
 -''Illinois Gazette, December 9, 13, 1843; Illinois State Register, January 5, 
 1844. 
 
 '8 Report of Governor Davis and Captain Swift, March i, 1844, Reports 
 General Assembly, 1844-1845, house, 313-80. 
 
 -"The estimate of the earning capacity of the canal was far too high, as 
 shown by the earnings when completed. The tolls for 1849, the second year of 
 operation, amounted to $118,375.72. Report of the board of trustees of the 
 Illinois and Michigan Canal, December i, 1849, Ibid., 1850-1851, house, 182.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 85 
 
 a part of the accruing Interest on the debt.^° In the meantime, 
 Governor Davis, at the suggestion of Abbott Lawrence, pro- 
 ceeded to London to confer with the English bankers. Michael 
 Ryan made a charge which was taken up by the Democrats 
 in IlHnoIs that the Whigs were attempting to frustrate the 
 settlement of the debts of Illinois In order that In the presi- 
 dential campaign of 1844 the Whigs might have another 
 argument for the assumption of state debts. ^^ Ryan claimed 
 that Governor Davis on all occasions while abroad expressed 
 a confident belief In the election of Henry Clay, and that he 
 gave such assurances about aid being rendered to the Indebted 
 states that the bondholders decided to delay their subscrip- 
 tions until the United States should be redeemed from the 
 power of the Democrats by the election of Clay.^- As proof 
 that Governor Davis created this feeling in London, Ryan 
 quoted from Baring Brothers' letter dated October 18, 1844: 
 "It is true that under Democratic administrations since Gen- 
 eral Jackson, the public in Europe have suffered severely from 
 the suspension of all payments in various American securities, 
 and that they are disposed to attribute their misfortunes to 
 the party in power, and to hope that Mr. Clay may assume a 
 higher tone on the question of public faith." ^^ The English 
 bankers vehemently denied the charges preferred by Ryan.^^ 
 Governor Davis and the Boston committee cannot be easily 
 absolved of guilt In the matter. Certainly many Whig papers 
 in Illinois opposed the proposed canal loan and openly pro- 
 claimed that the state could not be saved from repudiation 
 without Whig success and the adoption of assumption by the 
 national government. ^^ When the Democrats were kept in 
 power at the November election, the important question re- 
 mained as to whether the state would comply with the demand 
 of the bondholders for additional taxation. 
 
 ^^ Sangamo Journal, July 25, 1844. 
 
 ^^ Illinois State Register, November 22, 1844. 
 
 ^- Chicago Democrat, November 27, December 25, 1844, September 24, 1845 ; 
 Illinois State Register, December 20, 1844; Sangamo Journal, December 26, 
 1844; Reports General Assembly, 1844-1845, senate, 133. 
 
 ^^ Illinois State Register, October 10, 1845. 
 
 34 Letter of Baring Brothers to Michael Ryan, Ford, op. cit., 376. 
 
 ^^ Illinois Gazette, September 14, November 29, 1844; Sangamo Journal, May 
 30, August 29, September 12, 19, 1844.
 
 I 86 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Two months or so before the legislature was to convene, 
 William G. Wait of Bond county addressed a letter to Gov- 
 ernor Ford through the columns of the Illinois State Register, 
 bitterly denouncing taxation to pay the public debt.^^ The 
 governor gave a reply in which he presented a clear exposition 
 of the embarrassed condition of the state and from which he 
 declared there was no honorable hope of escape except by 
 taxation." He said the people were called upon to choose one 
 of two evils — repudiation or taxation. His choice was taxa- 
 tion, not immediate severe taxation, but such as could be borne 
 by the people. He suggested that the first tax be collected in 
 1845, ^"^ that small yearly increases be made thereafter. He 
 also recommended that a large portion of the land tax which 
 was going to the counties should be transferred to the state. 
 The governor's letter was extensively republished in news- 
 papers, and received general commendation except from a few 
 rabidly partisan Whig papers. David Leavitt, of the Ameri- 
 can Exchange Bank of New York, was greatly encouraged, 
 and joined Colonel Oakley, who was still in the east, to go to 
 England to reopen negotiations for the loan.^^ 
 
 In his message to the general assembly on December 3, 
 1844, Governor Ford demanded immediate action on the taxa- 
 tion question in order to allay the fears of the people who 
 apprehended oppressive taxation and to restore confidence in 
 the creditors abroad. ^^ As the legislature set about its work 
 Michael Ryan again made a plea for a tax. On December 9, 
 he wrote Governor Ford that the bondholders would not com- 
 plete the subscription of the $1,600,000 until the legislature 
 passed a law levying a mill tax, the proceeds of which should 
 be applied to the payment of the interest."*" 
 
 The members of the legislature were very much divided in 
 
 36 Letter of Wait to Governor Ford, September 26, 1844, Illinois State 
 Register, October 25, 1844. 
 
 37 Letter of Governor Ford in reply to Wait, October 16, 1844, Ibid., Novem- 
 ber 25, 1844. 
 
 ^^ Sangamo Journal, November 28, 1844. 
 
 39 Message of Governor Ford, December 3, 1844, House Journal, 1844-1845, 
 10-20. 
 
 *^ Reports General Assembly, 1844-1845, senate, 89-96.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 87 
 
 their opinions upon the proper measures to adopt concerning 
 the canal. Alfred W. Cavarly proposed in the senate that the 
 state complete the canal through taxation and the issue of 
 scrip. He wanted the state to retain complete control over the 
 canal. William Fithian of Vermilion county offered a plan to 
 organize a company to complete the canal by giving it the 
 canal, the canal lands, and all other lands, railroads, and rail- 
 road property owned by the state. In addition he proposed to 
 give the company $1,000,000 in bonds bearing six per cent 
 interest on the condition that it would complete the canal, and 
 surrender to the state half her indebtedness in fifteen years 
 and the other half in thirty years. Richard Yates suggested 
 that the internal improvement and statehouse debt be refunded 
 at three per cent, and that taxation be used to raise revenue to 
 pay the interest and to create a sinking fund for paying the 
 principal."*^ 
 
 In advocating a one mill tax, the house finance committee 
 declared that it would give the people of the state self-respect, 
 and would create confidence in the state abroad."*'- The pro- 
 posal to levy a one mill tax met with determined opposition 
 from the members of the legislature representing the southern 
 and eastern sections of the state. Many complaints were made 
 during the course of the session that the legislature was under 
 the dictation of the bondholders. In a speech delivered in the 
 house of representatives on February 4, Orval Sexton of 
 Gallatin county denounced the scheme of increased taxation 
 as a system of plunder which would sell his constituents into 
 the hands of English bankers and brokers.^^ He declared that 
 it was tyrannical for the members from the canal region to 
 try to impose taxation upon the people of the whole state for 
 a project which would benefit only one section. Stephen G. 
 Hicks of Jefferson county and Braxton Parrish of Franklin 
 county made similar statements. Andrew J. Kuykendall, rep- 
 resenting Johnson and Massac counties, declared that if he 
 
 ^'^ Chicago Daily Journal, January 13, 16, 1845; Illinois State Register, Jan- 
 uary 10, 1845 ; Sangamo Journal, March 6, 1845. 
 
 *- Reports General Assembly, 1844-1845, house, 129-42. 
 ^^ Illinois State Register, February 21, 1845.
 
 I 88 ILLINOIS INTERNAL IMPROVEMENTS 
 
 could be satisfied that the passage of the tax bill would induce 
 the bondholders to advance $1,600,000 for the completion of 
 the canal, he would give it his hearty support, but he feared 
 their aim was not to prosecute that work but to speculate upon 
 the credit of the state. He pointed out that positive assurance 
 was not given that the bondholders would advance the money 
 if the tax were levied.^^ 
 
 The vote upon the tax measure was almost entirely along 
 sectional lines. The northern portion of the state was for the 
 tax, and the southeastern counties, and Adams and Hancock 
 along the Mississippi in the west were against it.*^ Democratic 
 papers accused the Whigs of opposition, but in fact most of 
 the enemies of the measure were southern Democrats. A 
 greater proportion of Whigs than Democrats voted for the 
 measure in both houses of the legislature."*® 
 
 The tax law as finally passed on March i, 1845, provided 
 for a levy of one mill upon each dollar valuation of property 
 transferred from the county to the state tax.*^ In 1846 the 
 rate was to be increased to a mill and a half and thereafter to 
 remain at that figure. The proceeds of the tax were to be put 
 in an interest fund and the governor was required to make 
 semi-annual payments of interest beginning July i, 1846, pro 
 rata, on all the canal bonds and internal improvement bonds, 
 excepting those hypothecated with Macalister and Stebbins. 
 At the same time a new canal law was passed repeating the 
 provisions of that enacted at the previous session.** News of 
 the adoption of these acts was received enthusiastically along 
 the canal route. Public meetings passed resolutions thanking 
 Oakley, Ryan, Leavitt, and Governor Ford for their work on 
 behalf of the canal. The Joliet Signal declared that the people 
 of northern Illinois would not readily forget the steady and 
 
 ** Ibid., February 28, March 14, 1845. 
 
 45 The vote on the tax bill was 21 to 20 in the senate, 66 to 39 in the house. 
 Senate Journal, 1844-1845, 400; House Journal, 1844-1845, 577. 
 
 ^'^ Chicago Democrat, February 5, 1845; Illinois State Register, March 14, 
 1845; Alton Telegraph, February 8, 1845; Sangamo Journal, January 2, 1845. 
 
 47 Laivs of Illinois, 1845, 44. 
 
 4s Ibid., 1845, 31-32.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 89 
 
 unfaltering support which Governor Ford had given the rev- 
 enue measure/'' 
 
 The new loan for the canal was made promptly after the 
 state took the action to assure the payment of its debt. By 
 April I, the New York and Boston bondholders had com- 
 pleted their subscription/" Within a month the European 
 bondholders had acceded to the arrangements of the legisla- 
 ture and ratified the contract for the loan/^ Twelve and a 
 half per cent of the money was to be paid on May 27, and the 
 residue as soon as it was needed. The bondholders elected 
 Captain Swift and David Leavitt as trustees, and Governor 
 Ford appointed Jacob Fry on behalf of the state. In June, the 
 canal, its land and appurtenances, were conveyed by the gov- 
 ernor to the trustees and active preparations begun for the 
 resumption of work.^- On July 22, the former contractors 
 were allotted the work on the sections which they had had 
 under their old contracts,^^ and on August 18, those sections 
 not preempted by the former contractors were let to the "low- 
 est responsible bidders." " These contracts were let at much 
 lower figures than those of 1836, when prices in the canal 
 region were extraordinarily high. In 1845 prices of goods and 
 supplies ranged from twenty-five to sixty per cent of what they 
 had been in 1836. Portions of the work were left at figures 
 substantially lower than the engineer's estimates. ^^ 
 
 Considerable time had to be spent in making preparations for 
 the resumption of the actual work of construction because much 
 
 *^ Chicago Daily Journal, March 3, 7, 1845; Illinois State Register, March 
 28, 1845. 
 
 50 Letter of J. H. Palmer to Colonel Oakley, April i, 1845, Ibid., April 18, 
 1845. 
 
 51 Letter of David Leavitt to Governor Ford, Ibid., May 23, 1845. 
 
 ^- Alton Telegraph, June 14, 1845; Chicago Democrat, June 4, 18, July 9, 
 1845; Illinois Gazette, August 2, 23, 1845; Quincy Whig, July 23, 1845; Illinois 
 State Register, February 6, 1846. 
 
 53 The canal act of February 21, 1843, provided that when work was re- 
 sumed on the canal the former contractors were to have priority of right in 
 securing the contracts on their old sections, but on revised estimates to be made 
 by the chief engineer of the board of trustees. Laivs of Illinois, 1843, 60. 
 
 54 Report of the canal trustees to Governor Ford, December i, 1845, Illinois 
 State Register, February 6, 1846. 
 
 55 A section of work estimated at $171,700 was let for $148,100. Report of 
 the canal trustees, December i, 1846, Reports General Assembly, 1846-1847, 
 house, 122.
 
 190 ILLINOIS INTERNAL IMPROVEMENTS 
 
 deterioration of the unfinished work had taken place during 
 the period of abandonment. Floods and an unusual amount of 
 sickness among the laborers delayed construction considerably 
 during 1845 ^"^ 1846.^^ The people living along the canal 
 often displayed an impatience with what they thought was an 
 unnecessarily slow prosecution of the work." Much dissatis- 
 faction also prevailed throughout the state with the conduct 
 of Swift and Leavitt, the trustees elected by the bondholders. 
 Shortly before the legislature of 1 846-1 847 adjourned, each 
 branch addressed a letter to Governor French, complaining in 
 pointed terms that the trustees appointed by the bondholders 
 very seldom visited their work which had resulted in delay in 
 its progress. ^^ Protests were also made against the salary of 
 $5,000 paid the trustees, whereas the state trustee received 
 only $2,000.^^ Leavitt and Swift were re-elected in 1846 by 
 the foreign bondholders. ^"^ Their re-election was remonstrated 
 against by the American bondholders, because of their non- 
 residence on the work and the large salaries which they had 
 voted themselves." 
 
 ^^ Message of Governor Ford, December 7, 1846, Senate Journal, 1 846-1 847, 7. 
 
 ^^ Ottaiva Free Trader, January i, 1847. 
 
 ^^ Illinois State Register, June 17, 1847. 
 
 ^9 Alton Telegraph, October 4, 1845. In 1849 the bondholders reduced the 
 salary of the trustees from $5,000 to $2,500 and the salary of Edward B. Talcott, 
 the chief engineer, was reduced from $2,500 to $2,000. The title of the latter's 
 office was changed to general superintendent. Illinois State Register, April 26, 
 May 21, 1849. 
 
 ^^ Ibid., June 11, 1847. 
 
 81 Leavitt increased his unpopularity in 1849 when he brought forward a 
 claim of $40,000 as a commission for negotiating the $1,600,000 loan in 1845. 
 The bondholders would not allow the claim, and he renounced it temporarily in 
 order to be re-elected trustee. In 1854 Leavitt obtained the depositions of a 
 number of New York and local bankers, stating that the two and a half per cent 
 commission was a reasonable charge. Governor Matteson, after some hesitation, 
 approved the claim and certified it to the canal trustees. Josiah McRoberts, 
 the state trustee, drew a check for the amount but withheld it until the claim 
 could be approved by the board, which had to be done by mail as the members 
 lived far apart. Captain Swift objected to the allowance, and McRoberts did 
 not act further. Thus the matter rested until the administration of Governor 
 Bissell, when C. R. Ray replaced McRoberts. The governor approved the claim 
 and Ray paid it out of the canal fund, to which Swift made a vigorous protest. 
 Bitter attacks were made on Ray for his action by the newspapers of Illinois, 
 and the English bondholders directed their agent in the United States to institute 
 a suit against Leavitt, in the supreme court of Massachusetts, for the recovery 
 of the money received by him from the trust fund. By an agreement made on 
 February 11, 1859, the case was referred to L. N. Barlow and John C. Green of 
 New York for arbitration. Being unable to agree on an award, the arbitrators 
 appointed Edwin Bartlett as umpire. Finally, on January 19, 1863, the umpire
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS 191 
 
 In 1847, Governor French appointed Charles Oakley as the 
 trustee on behalf of the state to succeed Jacob Fry.*^- The 
 Whig newspapers claimed that Oakley was appointed as the 
 result of a political agreement in which the price of French's 
 nomination as governor had been the removal of Jacob Fry 
 as trustee. "^^ Soon after his appointment Oakley began a quar- 
 rel with the other trustees whom he accused of incompetence, 
 neglect of duty, and taking excessive salaries. At a bond- 
 holder's meeting held in New York on October 18, 1847, 
 Oakley made a report in which he charged Leavitt with non- 
 cooperation and William Gooding, the chief engineer, with 
 incompetence. Later Swift and Leavitt conducted an investi- 
 gation at Chicago in which Oakley refused to take part, 
 charging that a fair and impartial hearing was out of the 
 question. He then resorted to the use of articles in newspapers 
 to attack his colleagues and the chief engineer. In a report 
 made to the legislature, Leavitt and Swift held that the charges 
 against Gooding were false. The Illinois State Register termed 
 the report a white-washing, while the Illinois Journal declared 
 it triumphantly vindicated the chief engineer from all charges 
 made against him.*** Later Governor French appointed Judge 
 Caton to conduct an investigation. After taking the testimony 
 of numerous witnesses concerning the charges preferred 
 against Gooding, Caton returned a lengthy report of nearly 
 300 pages to the governor, who removed Gooding and had 
 Edward B. Talcott, the assistant chief engineer, promoted to 
 the office of chief engineer. '^^ The death of Charles Oakley 
 late in 1848, caused a vacancy on the canal board which was 
 
 announced an award by which Leavitt was allowed $10,000 with interest from 
 May I, 1845 to January i, 1863, and ordered to return $31,853,33 to the trust 
 fund, and pay the costs of the suit and $1,000 as compensation to the arbitrators. 
 On February 4, 1863, Leavitt paid over to the trustees of the canal the amount 
 of $31,853.33 plus interest of $210.57 for one month and four days. Illinois State 
 Journal, January 26, 1859; report of Swift to the house concerning the suit 
 against Leavitt, February 26, 1863, Reports General Assembly, 1862-1863, volume 
 I- 833-37. 
 
 ''- Illinois State Register, January 29, 1847. 
 
 ^''■^ Chicago Daily Journal, December 19, 1846, January 25, February 2, 1847; 
 Illinois Journal, December 9, 1847. 
 
 ''"^ Illinois State Register, November 5, 1847; Illinois Journal, December 9, 23, 
 January 13, 1847; Reports General Assembly, 1848-1849, house, 316-71. 
 
 •5^ Illinois State Register, March 24, 31, 1848.
 
 192 ILLINOIS INTERNAL IMPROVEMENTS 
 
 filled by the appointment of Ex-Lieutenant-Governor Wells.®® 
 As the Illinois and Michigan Canal neared completion, 
 Chicago made strenuous efforts for aid from Congress for its 
 harbor. The Illinois delegation in Congress did not give their 
 united support and were unable to achieve the results that 
 might have been expected. In fact, the Chicago harbor ques- 
 tion produced a division in the Democratic party in Illinois. 
 The difficulty arose from the fact that individual congressmen 
 represented the diverse and conflicting interests of the various 
 parts of the state. John Wentworth of Chicago was interested 
 primarily in lake harbors, while Orlando B. Ficklin and Robert 
 Smith desired the continuation of the Cumberland Road, and 
 John A. McClernand sought the improvement of navigation 
 on the Ohio and Mississippi. At the session of Congress of 
 I 845-1 846, Wentworth had an appropriation of $12,000 in- 
 serted in the river and harbor bill for the Chicago harbor. 
 He gave warning to his colleagues that the appropriations for 
 the Cumberland Road and the ship canal to the Illinois river 
 might cause Polk to veto the bill.®^ Wentworth expected sup- 
 port from the east for the bill, and believed that the opponents 
 of improving lake harbors were from the south and west. 
 When Polk vetoed the bill on constitutional grounds, he was 
 supported by McClernand and Ficklin who voted against the 
 bill. The veto brought a storm of protest from a large part 
 of the Illinois press. The Whig papers generally compli- 
 mented Wentworth for his efforts to get the bill passed, and 
 denounced Polk in strong terms. ®^ A sandbar at the mouth of 
 the Chicago river was named Mount Polk. The Democratic 
 papers were sharply divided on the veto. Those of the north- 
 ern portion of the state, particularly the Chicago Journal, 
 joined the Whigs in their denunciation of Polk. On the other 
 hand, the Democratic papers in the southern part of the state 
 
 ^'^ Ibid.y January 20, 1849. The Illinois Journal favored the appointment of 
 Thomas Ford to fill the vacancy caused by the death of Oakley, Illinois Journal, 
 January 17, 1849. 
 
 ^"^ Alton Telegraph, March 21, 1846; Chicago Democrat, March 11, 30, 1846; 
 Congressional Globe, 29 Congress, i Session, 354. 
 
 ^^ Alton Telegraph, March 14, April 4, 1846; Chicago Daily Journal, March 
 28, May 26, 1846; Congressional Globe, 29 Congress, i Session, 438, 479, 506, 
 522, 527.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 93 
 
 and in the counties along the Mississippi approved Polk's 
 action.®^ 
 
 The veto resulted in a non-partisan movement of protest 
 which culminated in the river and harbor convention of 1847. 
 The Whigs engaged heartily in the movement to protest the 
 veto, because internal improvements by the national govern- 
 ment was a good Whig doctrine, and those Democrats in the 
 localities affected by the loss of the river and harbor bill were 
 ready to join them. The convention meeting at Chicago on 
 July 5, 1847, adopted a resolution calling on Whigs and 
 Democrats alike to apply to every candidate for Congress the 
 test of loyalty to river and harbor appropriations. Delegates 
 from eighteen states were present at the convention. A me- 
 morial adopted by the convention requesting river and harbor 
 appropriations was presented to Congress on June 19, 1848.'° 
 
 Meanwhile repeated attempts were made to secure an addi- 
 tional grant of land from Congress for the Illinois and Mich- 
 igan Canal. James Semple in the Senate and John Wentworth 
 in the House introduced bills to such an effect during the 1844- 
 1845 session of Congress. The efforts to secure the grant were 
 repeated at later sessions."^ A correspondence took place be- 
 tween the trustees of the canal and the commissioner of the 
 general land office, commencing in February, 1850, upon the 
 subject of an additional grant of land for the canal. The claim 
 was made under the principle established by the act of Con- 
 gress of May 9, 1848, granting to the state of Indiana "a 
 quantity of land, which, together with the land already re- 
 ceived and held by said state, for the construction of the 
 Wabash and Erie Canal, will make the full amount equal to 
 one half of five sections in width on each side of the canal." ''- 
 On March 19, 1851, the Secretary of the Interior decided that 
 
 ^^ Chicago Democrat, August 18, 1846, July 2, 1847; Illinois State Register, 
 April 3, August 21, September 4, 1846. 
 
 ''^Chicago Daily Journal, September 15, 24, 1846; Chicago Democrat, 
 September 29, 1846, May 4, July 13, 1847; Congressional Globe, 30 Congress, 
 I Session, 852, 853, 867. 
 
 ~^ Ibid., 29 Congress, i Session, 124, 713; Ibid., 28 Congress, 2 Session, 62, 
 149; Ibid., 29 Congress, i Session, 171; Ibid., 29 Congress, 2 Session, 32. 
 
 '-Reports General Assembly, 1850-1851, house, 313.
 
 194 ILLINOIS INTERNAL IMPROVEMENTS 
 
 the case of the Illinois and Michigan Canal was analogous to 
 that of the Wabash and Erie, but as Congress was then in 
 session it was considered expedient by the secretary to have 
 the additional grant confirmed by law. Accordingly, a bill was 
 prepared for that purpose and introduced in the Senate, but 
 it was lost in the rush of business. Congress eventually passed 
 a law on August 3, 1854, authorizing the grant, in which the 
 state received 32,895 acres." 
 
 Finally, in April of 1848, the Illinois and Michigan Canal 
 was completed, twelve years having elapsed since the construc- 
 tion began. ^* The arrival of the first boat at Chicago from 
 Lockport was hailed by thousands with demonstrations of joy. 
 The occasion was enlivened by the music of many bands and 
 fervent and appropriate speeches. "The long anticipated era 
 has at length arrived when the waters of Lake Michigan and 
 the Mississippi mingle together," the Illinois Gazette joy- 
 fully announced. The opening of the canal imparted to north- 
 ern Illinois the many benefits which had been anticipated. By 
 July, of 1848, seventy canal boats were in operation, and many 
 more were needed to supply the demand. A deficiency of ves- 
 sels on the upper lakes delayed for a time the development 
 of the canal traflic to its fullest extent. By the close of 1848, 
 however, such deficiencies had been remedied. The canal be- 
 came an important route for the transportation of lumber 
 from the Great Lakes region and merchandise from the East 
 to the Illinois river towns and the nearby interior settlements. 
 The farm products from the canal region and the Illinois river 
 valley, and tropical products from the New Orleans and St. 
 Louis markets were transported via the canal to Chicago on 
 their way to the consumer in the northern and eastern parts 
 of the country. The canal was of greatest benefit, however, 
 to the nearby towns which experienced great increases in pop- 
 's ////no/^ State Register, September 28, 1854; Reports General Assembly, 
 1854-1855, 421; Congressional Globe, 33 Congress, i Session, 28, 44, 248, 2171, 
 2182, 2185. 
 
 '^^ Beardsto'U'n Gazette, May 5, 19, 1848, October 25, 1848; Illinois Gazette, 
 April 22, July 15, October 21, 1848; report of the board of trustees of the 
 Illinois and Michigan Canal, December i, 1848, Reports General Assembly, 
 1848-1849, house, 515.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 95 
 
 ulatlon and in the variety and amount of business. Chicago, 
 especially, made a remarkable growth/^ 
 
 With the completion of the canal, the trustees were faced 
 with the problem of paying the debt. The total cost of the 
 canal upon its completion in 1848 amounted to $6,468,854.25. 
 Expenditures to 1845 when the canal was turned over to the 
 trustees amounted to $5,039,248.04 of which $4,674,637.23 
 had been paid for construction and $364,610.81 for contingent 
 expenses.'*' The trustees expended $1,429,606.21 in complet- 
 ing the canal and in constructing the necessary feeders from 
 the Fox, Kankakee, and Calumet rivers to furnish a water 
 supply." 
 
 These sums, however, do not represent the entire amount of 
 the canal debt. At the canal's completion, the debt stood at 
 more than eight million dollars. Governor French in his mes- 
 sage to the legislature on January 2, 1849, reported the total 
 canal debt with interest amounted to $8,042,622.^^ 
 
 To summarize the financing of the canal, the state had sold 
 bonds to the amount of $5,383,000, and had issued scrip of 
 various kinds to the amount of $1,390,549.37. The sale of 
 bonds had been as follows: 
 
 500 bonds of $1000 each, sold by Gov. Duncan to the 
 
 State Bank, payable in New York $ 500,000.00 
 
 500 bonds of $1000 each, sold by Gov. Duncan to the 
 
 State Bank, payable in New York 500,000.00 
 
 300 bonds of $1000 each, sold by Gen. Rawlings to 
 
 John Delafield, payable in New York 300,000.00 
 
 1000 bonds of £225 each, sold by Gen. Rawlings to 
 
 the U. S. Bank, payable in London 1,000,000.00 
 
 "^ For an account of the benefits derived from the canal see James W. Putnam, 
 Illinois and Michigan Canal, A Study in Economic History (Chicago Historical 
 Society's Collection, volume X, Chicago, 1910), 92-125. 
 
 "•^^ Report of the board of trustees of the Illinois and Michigan Canal, Decem- 
 ber I, 1846, Reports General Assembly, 18+6-1847, house, 98-100. 
 
 '" Final report of the board of trustees of the Illinois and Michigan Canal, 
 April 30, 1871, Ibid., 1872-1873, volume I, 8. 
 
 '^ Message of Governor French, January 2, 18+9, Ibid., 1848-1849, senate, 7. 
 During 1848 the trustees had paid $169,165.48 on account of principal and in- 
 terest on the $1,600,000 loan, so that the debt stood somewhat higher than 
 $8,042,622.00 in April when the canal was completed. Report of the board of 
 trustees of the Illinois and Michigan Canal, December i, 1848, Ibid., 1848-1849, 
 house, 376.
 
 196 ILLINOIS INTERNAL IMPROVEMENTS 
 
 100 bonds of £225 each, sold by Gen. Thornton to 
 
 various contractors, payable in New York 100,000.00 
 
 150 bonds of £225 each, sold by Wright & Co., Lon- 
 don, under a contract made by R. M. Young 
 
 and John Reynolds, payable in London 150,000.00 
 
 1000 bonds of £225 each, sold by Gov. Carlin to canal 
 contractors, and by their agent Gen. Thornton 
 to Magniac, Smith & Co., London; which were 
 exchanged by Magniac, Smith & Co., for 450 
 bonds of £100 each, and 600 bonds of £300 
 each, payable in London 1,000,000.00 
 
 197 bonds of $1000 each, sold by canal commissioners 
 
 to canal contractors, payable in New York 197,000.00 
 
 $1,600,000 loan, sold by the canal trustees to various 
 
 canal bond subscribers i, 600,000.00 
 
 Total bonds sold $5,383,000.00 
 
 Canal scrip and checks had been issued and put into circu- 
 lation as follows: 
 
 Non-interest bearing scrip issued during 1839 in de- 
 nominations of $1.00, $2.50, $5.00, $10.00, 
 $20.00, $50.00, and $100.00 $ 616,870.70 
 
 Interest bearing checks, dated Mar. i, 1840, issued 
 
 during 1840 409,448.70 
 
 Contractors accepted orders, introduced by the canal 
 
 commissioners in May, 1841 46,000.00 
 
 Scrip issued by Gov. Ford and Gov. French to contrac- 
 tors for damages, under act of Feb. 21, 1843.... 230,000.00 
 
 Scrip issued by Gov. French to pay balance due contrac- 
 tors, under act of Feb. 16, 1847 70,530.91 
 
 Scrip issued by Gov. French to various persons for dam- 
 ages, etc., 1847-1849 17,699.06 
 
 Total amount of scrip put in circulation $1,390)549-37 
 
 In 1847 '^^ ^ct was passed allowing the exchange of canal 
 scrip for canal bonds. ^^ The governor was authorized to issue 
 bonds bearing six per cent interest for principal, and non- 
 interest bearing certificates for arrears of interest, to all 
 holders of scrip presenting it for refunding. Consequently, 
 
 ''^ La<ws of Illinois, 1847, 165.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 97 
 
 1018 bonds of $1000 each were issued for scrip surrendered.^" 
 A considerable portion of the scrip had already been redeemed 
 through purchases of canal lands. Only a small amount of 
 scrip remained unredeemed or unfunded. 
 
 Thus the original canal debt amounted to $6,773,549.37. 
 This sum did not comprise the entire canal debt, which was 
 increased by the accumulation of interest, operating expenses, 
 and the monetary and banking conditions prevailing in the 
 country during the period of trust. The sum of $2,155,622.38 
 was paid by the trustees in the discharge of the arrears of 
 interest on the registered bonds, and $2,457,276.46 was used 
 by the trustees for the operating expenses of the canal. The 
 sum of $14,563.52 was lost by the trustees through bad cur- 
 rency and bank failures, and between 1848 and 1871 a total 
 of $370,864.42 was expended for premiums on gold with 
 which to pay the interest and principal of the canal bonds pay- 
 able in London. ^^ 
 
 In 1859 two attempts were made to defraud the state. 
 Holders of $1 14,000 of Macalisterand Stebbins bonds made an 
 effort to have them refunded under the refunding law of 1 847.*- 
 The liability of the state on these bonds under the law passed 
 in 1849 by the general assembly to liquidate the Macalister 
 and Stebbins bonds at 26 cents on the dollar plus interest was 
 but $45,000. If the refunding had succeeded the state's liabil- 
 ity would have been $192,683. 
 
 In the other case, the fraud consisted of the refunding of 
 $223,065.50 of ninety day redeemed and unused canal scrip, 
 dated May i, and August i, 1839.*^ It seems that the scrip 
 involved in this fraud was boxed up in 1839 after having been 
 redeemed and deposited in the vault of the Chicago branch of 
 
 ^0 Report of the senate finance committee, Reports General Assembly, 1860- 
 1861, volume L +16. 
 
 ^1 Report of the canal commissioners, December i, 1872, Ibid., 1872-1873, 
 volume I, 8. 
 
 ^'-Illinois State Journal, July 20, August lo, 1859; Illinois State Register, 
 January lo, i860. 
 
 ^"^^ Illinois State Journal, February 9, 16, April 27, Maj- 4, June 29, July 6, 13, 
 1859; Illinois State Register, April 25, 1859; Theodore Calvin Pease and James 
 G. Randall, editors, The Diary of Orville Hickman Broivning, volume \, 1850- 
 1864 {Collections of Illinois State Historical Library, volume XX, Springfield, 
 1925), 349-55-
 
 198 ILLINOIS INTERNAL IMPROVEMENTS 
 
 the State Bank, and was regularly, through a number of years, 
 delivered over by the outgoing canal officers to their succes- 
 sors. In 1853, Josiah McRoberts, the state canal trustee, took 
 the boxes containing the scrip to LaSalle, where he left them 
 in charge of Governor Joel A. Matteson to take to Springfield. 
 Early in 1859, Jacob Fry, a former canal trustee, discovered 
 that a large part of the scrip had been exchanged in 1857 for 
 new state bonds. All the bonds were in the possession of Ex- 
 Governor Matteson when the fraud was discovered. He 
 claimed that he bought the bonds, but never made any attempt 
 to show who had sold them to him. In February, 1859, the 
 finance committee of the senate conducted an investigation and 
 made a report of the evidence which it received, but forbore 
 to express any opinion of the guilt or innocence of anyone con- 
 cerned in the fraud. ^* In April, the grand jury of Sangamon 
 county considered the case, but took no action except to order 
 that all evidence presented in the investigation should be pub- 
 lished.^^ The Republicans charged that the grand jury and the 
 legislative committee had whitewashed Matteson for political 
 reasons. Although he maintained that he had "unconsciously 
 and innocently been made the instrument through whom a 
 gross fraud upon the state has been attempted," Matteson 
 turned the bonds over to the state so that no loss was suffered. 
 The funds with which the debt was paid off were derived 
 from sales of canal lands, from tolls received on the canal, 
 from the Illinois Central Railroad fund, from rents of lands 
 and water power, from interest on the canal funds when de- 
 posited in banks, from interest on the unpaid installments on 
 the lands sold, and from several minor sources including the 
 sale of wood, timber, and stone, the sale of old machinery and 
 implements, and favorable exchanges. The $4,706,482.68 
 derived from the sales of canal lands was the largest income 
 received from any one source by the trustees. Tolls and col- 
 lections amounted to $4,405,658.27. 
 
 **■* Report of evidence before the senate committee on finance in relation to 
 the fraudulent canal scrip, Reports General Assembly, 1858-1859, volume I, 
 657-819. 
 
 '^s Canal Scrip Fraud, Minutes of t/ie Proceedings of the Sangamon County 
 Grand Jury in the Investigation of the Case (Springfield, 1859), 1-60.
 
 SOLUTION OF THE DEBT AND CANAL PROBLEMS I 99 
 
 By April 30, 1 87 1, the entire canal debt was paid off except 
 for $13,000 of bonds which the holders had failed to present 
 for payment. When the trust was dissolved on May i, 1871, 
 and the canal turned over to the state, the trustees reported 
 a cash balance of $95,742.41. During the twenty-three years 
 in which the trustees held the canal, a total of $1 1,009,507.41 
 passed through their hands with a small loss of but $14,563.52, 
 w^hich was lost through bad currency and bank failures. ^^ Ap- 
 parently the canal finances were well administered by the board 
 of trustees. 
 
 *^^ Report of the canal commissioners, December i, 1872, Reports General 
 Assembly, 1872-1873, volume I, 8.
 
 CHAPTER IX 
 
 LIQUIDATION OF THE INTERNAL IMPROVE- 
 MENT DEBT 
 
 UNLIKE the canal, the internal improvement system of 
 1837 did not return an income to pay off its debt. The 
 sale of the system's property and land which was authorized 
 by the legislature on March 4, 1843, brought returns of less 
 than one million dollars to the state. Payments on the pur- 
 chases were made for the most part in depreciated state bonds 
 and scrip. 
 
 Soon after the act was passed authorizing the sale of the 
 improvement system property, Governor Thomas Ford sold 
 to Joel A. Matteson four hundred tons of railroad iron at 
 forty-five dollars a ton, payable in state bonds. ^ The iron was 
 to be transported by the Ohio river, the Ohio Canal, and the 
 Great Lakes to Michigan, where it was to be used on the 
 Central Railroad of that state. As the state of Illinois had 
 never paid the duties on the importation of the iron, it was 
 seized at Cincinnati by the United States revenue officers, and 
 detained until the fall of 1843 when release was secured. 
 Since Matteson was put to considerable expense in paying 
 storage and watchmen, and paying a high rate of freight after 
 the water in the river had fallen, Governor Ford returned to 
 him three one thousand dollar bonds which had been given in 
 payment of the iron.- 
 
 The railroad timber in possession of the state in 1843, was 
 sold by Robert Smith. ^ Virtually nothing was received by the 
 
 ^ Alton Telegraph, July r, September 23, 1843; Reports General Assembly, 
 1844-1845, house, 148; Ibid., 1846-1847, house, 21. 
 
 -Internal Improvement Records, XX, 112. 
 
 3 John M. Kelly and Robert Smith were appointed by Milton Carpenter, state 
 treasurer, to sell the state property. Reports General A ssembly, 1842-1843, senate, 
 170. Smith was a resident of Alton and a former member of the general assem- 
 bly. In 1842 he was elected to the United States House of Representatives 
 where he served three consecutive terms, 1843-1849, and a fourth term, 1857- 
 1859.
 
 LIQUIDATION OF IMPROVEMENT DEBT 20I 
 
 State as the expenses were almost equal to the proceeds of the 
 sales. The Alton Telegraph charged that Smith bought most 
 of the timber himself with state scrip and sold it for good 
 currency."* 
 
 On February 23, 1843, the legislature authorized the gov- 
 ernor to make a deed conveying title to two lots in Shawnee- 
 town to E. J. Durbin as soon as the balance due was paid in 
 scrip or bonds. ^ The lots had been sold to Durbin on Septem- 
 ber 4, 1 841, by John M. Kelly, who had been appointed by 
 the state treasurer as agent to take charge of all the property 
 purchased by the state on account of the internal improvement 
 system east of the third principal meridian. The sum of 
 $2,912 had been paid for the lots with an unfinished depot 
 building. Durbin had paid ten per cent at the time of purchase 
 and was now ready to pay the balance in state scrip. 
 
 On September 4, 1843, William L. D. Ewing, state auditor, 
 gave notice to holders of internal improvement bonds and 
 scrip that all the remaining state property acquired on behalf 
 of the internal improvement system would be offered at public 
 sale to the highest bidder at the office of the auditor on the 
 first Monday in April, 1844.® The property to be disposed of 
 consisted of about 210,000 acres of land situated in the Dan- 
 ville, Chicago, and Dixon land districts which had been donated 
 to the state by the national government, and about 42,000 
 acres of land entered by the state under the provisions of the 
 internal improvement law and situated on or near the routes 
 of the projected railroads. The land was to be sold in eighty 
 acre tracts. In addition to the lands, the state mills at Carmi 
 and New Hav^en were to be sold as well as the Northern Cross 
 Railroad between Springfield and Meredosia, including the 
 depots and buildings at Springfield, New Berlin, Jacksonville, 
 Morgan City, and Meredosia, and also two locomotives, and 
 all baggage and passenger cars, and other fixtures pertaining 
 to the railroad. Payment of the property purchases was to be 
 made with internal improvement bonds and scrip of the state 
 
 * Alton Telegraph, July 15, 1843. 
 
 ^ Laivs of Illinois, 1843, 172. 
 
 ^ St. Clair Banner, January 16, 1844.
 
 202 ILLINOIS INTERNAL IMPROVEMENTS 
 
 or with gold and silver coin. Some of the land was sold, but 
 the mills and the railroad received no bids. 
 
 The Carmi and New Haven mills had been purchased by 
 the state to facilitate the improvement of the Little Wabash 
 river for steamboat navigation. On August i, 1839, Elijah 
 Willard, of the board of public works, had purchased of 
 Charles J. Weed, 18.53 acres of land including the Carmi mill 
 property for the sum of $20,000, and on August 3, 1839, the 
 same commissioner bought of E. H. Gatewood, Alexander 
 Kirkpatrick, and Moses M. Rawlings, 27.03 acres of land, 
 including the New Haven mill property for the like sum of 
 $20,000.^ The Little Wabash river was to be fitted for steam- 
 boat navigation by building locks and dams at the principal 
 shoals, and making such changes in the stream bed as might 
 be necessary. The state spent $6,530.24 in making surveys 
 and removing timber growing near the water's edge. Con- 
 tracts for building locks and dams at Carmi were let, but no 
 work was done. In compliance with an act of the legislature 
 passed February 27, 1841, John D. Whiteside, the fund com- 
 missioner, had made contracts on May 5, 1851, renting the 
 mill at Carmi to Reuben Emerson for two years at a yearly 
 rental of $400, the mill at New Haven to John Wood on the 
 same terms.* No payments were made on these leases. The 
 tenants showed no interest in maintaining the properties and 
 let them deteriorate, so that within a few years they were not 
 worth $10,000.'' On January 14, 1847, Governor French 
 recommended that the mills be sold for what they would 
 bring.^° He pointed out they were constantly decreasing in 
 value with no income. 
 
 The Northern Cross Railroad between Springfield and 
 Meredosia had been completed in 1842. After several months 
 during which the state operated the road at a loss, it was 
 leased. ^^ Private operation, too, proved unsuccessful. The 
 
 ''Reports General Assembly, 1846-1847, house, 302. The mills at New Haven 
 were erected in 1811, and those at Carmi in 1815. 
 
 ^ Ibid., 1842-1843, house, 77; Ibid., 1844-1845, house, 150. 
 
 3 Report of the select committee, February 2, 1847, Ibid., 1846-1847, house, 302. 
 
 1" Communication of Governor Ford to the senate, January 14, 1847, Ibid., 
 1846-1847, senate, 291. 
 
 11 For an account of the leasing see Supra, 107-09.
 
 LIQUIDATION OF IMPROVEMENT DEBT 203 
 
 legislature passed an act on March 4, 1843, authorizing the 
 governor to sell the railroad.^- When Governor Ford failed 
 to sell the road, he had it leased at public auction in April, 
 
 1843. The successful bidder, John Taylor, paid one year's 
 rent of $2,000 in state indebtedness. The following year the 
 road was leased to Cornelius Ludlum and William D. Baxter. 
 Under this lease a total of $480 was paid in rent, which the 
 state expended for repairs.^" 
 
 In 1845 t^he Sangamon and Morgan Railroad Company was 
 incorporated by the legislature for the purpose of disposing of 
 the Springfield and Meredosia road. The company was to 
 organize when $234,000 was subscribed in state indebtedness 
 as payment for the road." Governor Ford opened subscrip- 
 tion books for ten days at Springfield and Jacksonville." No 
 buyers appeared. After two years of inquiries Ford could find 
 no purchasers at home, in the east, or abroad.^*' In a com- 
 munication to the legislature on December 10, 1846, he pro- 
 posed a new valuation, and recommended sale of the railroad 
 iron as it was likely to be stolen since the road was no longer 
 being used.^^ 
 
 The general assembly passed an act on February 16, 1847, 
 directing the governor to sell the road at public auction to the 
 highest bidder for legal evidence of state indebtedness.^® 
 Macalister and Stebbins bonds were not to be accepted. Pay- 
 ments were to be made on the day of sale. In accordance with 
 this act. Governor French sold the Springfield and Meredosia 
 Railroad to the highest bidder on April 26, 1847, ^t the state 
 house in Springfield for the sum of $21,100. The successful 
 bidders were Nicholas H. Ridgely and Joel A. Matteson, 
 bankers of Springfield.^^ The full sum of $21,100 was paid 
 
 12 Lav:s of Illinois, 1843, 193. 
 
 13 Communication from the governor to the general assembly, December 29, 
 
 1844, Reports General Assembly, 1844-1845, house, 148; report of the fund 
 commissioner, December 24, 1846, Ibid., 1846-1847, house, 22. 
 
 ^■^ Senate Journal, 1844-1845, 286, 346, 425, 431; Laiis of Illinois, 1845, 150-54. 
 13 Communication from Thomas Ford in relation to the Meredosia Railroad, 
 December 10, 1846, Reports General Assembly, 1846-1847, senate, 133. 
 16 Ibid. 
 
 ^■^ Ibid., 134- . 
 
 ^^ Laivs of Illinois, 1847, 109-11. 
 1^ Copy of deed, sale of Northern Cross Railroad to Joel A. Matteson and
 
 204 ILLINOIS INTERNAL IMPROVEMENTS 
 
 on the day of sale. The deed of conveyance delivered on June 
 30, 1847, stated that the buyers were to acquire: 
 
 All that part of the Northern Cross railroad, lying between Spring- 
 field and the Illinois river, and the right and title of the State to the 
 land on which said road was constructed, together with the right of 
 way, acquired or possessed by the State, including the depot, engine 
 house, shop and lots on which they are situated, in Springfield; the 
 depot and lots on which it stands in Berlin ; the frame house erected 
 in Jacksonville, for offices, and the lots on which it stands ; the engine 
 house and turn-table near Jacksonville, and the lot on which they are 
 situated ; the depot in Morgan City, and the lots on which it stands ; 
 the engine house, turn-tables and depot at Meredosia, and the lots on 
 which they are situated ; the ground on which said road was located, 
 north of the public square, in Jacksonville; the lateral road to 
 Naples ; the depot in Naples and the lots on which it stands ; with all 
 the appurtenances to the lots, road, buildings, and offices, above 
 enumerated, together wuth all the locomotives, engines, cars, and 
 other implements used upon said road, the purchaser to have, hold, 
 use, and enjoy the same. 
 
 Thus the only railroad completed under the internal im- 
 provement system was sold for approximately one-fortieth of 
 its original cost. On July 5, 1847, Matteson transferred his 
 interest in the road to Ridgely, and on September 24, 1847, 
 Ridgely sold out to the Sangamon and Morgan Railroad Com- 
 pany.-" After considerable rebuilding, the railroad was again 
 put in operation on July 26, 1849.-^ Changes were made in the 
 route so that Naples replaced Meredosia as the Illinois river 
 terminal and the tracks were taken out of the public square in 
 Jacksonville and laid through the north part of town as pro- 
 vided in the original survey. After several changes in name 
 and ownership the Northern Cross became a part of the pres- 
 ent Wabash Railroad Company. 
 
 Meanwhile the sale of other state property acquired in con- 
 nection with the internal improvement system met with little 
 success. William L. D. Ewing, state auditor, reported on 
 
 Nicholas H. Ridgely, Letters of a Public Nature from the Secretary of State, 
 volume VII, December 17, 1840-June 6, 1850, no paging. 
 
 -0 H. J. Stratton, "The Northern Cross Railroad," Journal of the Illineis 
 State Historical Society, volume XXVII, number 2 (July, 1935), 50. 
 
 -' Illinois State Register, January 7, November 10, 1848, July 26, 1849.
 
 LIQUIDATION OF IMPROVEMENT DEBT 205 
 
 December i6, 1844, that 19,938.19 acres of land had been sold 
 for $73,199.15.^- Lands still unsold amounted to 234,055.83 
 acres with an appraised value of $1,290,709.71. Other inter- 
 nal improvement property remaining unsold included the 
 Carmi and New Haven mills valued at $46,545, ten acres of 
 land in Cairo and three-fourths acres in Equality not appraised, 
 and lots at Shawneetown, Paris, Jacksonville, Meredosia, New 
 Berlin, Springfield, and Decatur. 
 
 Sales of land during 1845 and 1846 brought the total 
 amount sold by December i, 1846, to 91,749.30 acres. -^ Dur- 
 ing the next four years sales proceeded even more slowly so 
 that by December i, 1850, the state had disposed of only 
 120,923.36 acres, with 130,428.34 acres remaining unsold. ^"^ 
 
 On February 7, 1851, the general assembly passed a law 
 suspending the sale of state lands so that they would not have 
 to compete with the land being sold by the newly chartered 
 Illinois Central Railroad Company, and the bounty lands 
 granted to the soldiers by the national government after the 
 Mexican War.'^ 
 
 In 1853 Governor French recommended that the state lands 
 again be put on sale.^'' He stated in his annual message that 
 when the legislature withdrew the lands from the market, the 
 act was a wise one, but the policy of withholding from sale was 
 no longer needed. In accordance with the governor's recom- 
 mendation, a law was passed on February 14, 1853, directing 
 the auditor to sell all lands within twelve months to the highest 
 bidder for gold and silver; no land was to be sold for less than 
 $3.50 per acre except that appraised for less than that figure, 
 which was to be sold at its appraisal.-^ The lands were to be 
 offered for sale at county seats in which they were located. 
 
 " Appraisement of state property laid before the senate by William L. D. 
 Ewing, auditor, December i6, 1844, Reports General Assembly, 1844-1845, 
 senate, 142. 
 
 -^^ Report of the auditor, Thomas H. Campbell, December i, 1850, Reports 
 General Assembly, 1850-1851, senate, 44. 
 
 24 Ibid. 
 
 ^^ Laivs of Illinois, 1851, 23, 204. 
 
 -•5 Message of Governor French, January 3, 1853, Reports General Assembly, 
 1852-1853, senate, 10. 
 
 -^ Lmus of Illinois, 1853, 231-34.
 
 206 ILLINOIS INTERNAL IMPROVEMENTS 
 
 One year after the lands had been offered at public sale, the 
 price was to be reduced fifty cents on every acre left unsold. 
 At the expiration of every successive year a similar reduction 
 in price was to be made on all lands until sold, but in no case 
 was any sale to be made for less than $1.50 an acre. All money 
 received from the sale of lands was to be invested by the gov- 
 ernor in bonds, scrip, or other state indebtedness. The gover- 
 nor was to cancel all such indebtedness. 
 
 The act of 1853 provided that any person having become 
 an actual settler on any forty or eighty acre tract being offered 
 for sale by the state previous to the entry or selection of such 
 land by the state, was entitled to the right of pre-emption to 
 any such tract or tracts of land, not exceeding eighty acres, 
 extending to the period of two years from the passage of the 
 act, at the price of $1.25 per acre, with six per cent interest 
 annually from the date of entry or selection by the state until 
 paid for by the person having such pre-emption right. The 
 owner of any improvement, at the time of the passage of the 
 act, on any forty or eighty acres being offered for sale by the 
 state, was entitled to the right of pre-emption to any such 
 tract not exceeding eighty acres extending to a period of two 
 years from the date the act was passed, at the price per acre 
 of the last appraisement made by the authority of the state. 
 Every person claiming pre-emption was to file a claim within 
 six months. Any lands to which pre-emption rights were estab- 
 lished within the time specified by the act, were not to be 
 offered at public sale until the pre-emption right had expired. 
 On February 10, 1855, ^^e legislature passed an amendatory 
 act continuing in full force the right of pre-emption for one 
 year after February 13, i855.-^ 
 
 The state lands were not sold as rapidly as expected. By 
 December i, 1854, there were still 48,578.15 acres unsold.-^ 
 In 1857 the act of 1853 was amended by extending the time 
 of sale until all the lands were sold.^'' Persons having the right 
 
 -^ Laius of Illinois, 1855, public, 45. 
 
 -3 The state auditor's annual report, December i, 1854, Ibid., private, page 
 xxxvi. 
 
 ^'^ Ibid., 1857, public, 61.
 
 LIQUIDATION OF IMPROVEMENT DEBT 207 
 
 of pre-emption were allowed six months to prove their claims. 
 
 By November 30, 1858, all saleable state lands were sold.^^ 
 A total of 122,396.92 acres had brought $516,646.30 In bonds 
 and scrip, and 127,530.51 acres had been sold for $419,598.25 
 in gold and silver.^- Other state property which was sold In- 
 cluded the Quincy House and the salt wells and coal lands In 
 the Gallatin county saline reserve. ^^ 
 
 The sale of state property liquidated less than one-eighth 
 of the Internal Improvement debt. Most of the state's obliga- 
 tions had to be met through direct taxation. Proceeds from 
 the one and a half mill tax authorized in 1845 ^''^t became 
 available for Interest payments on July i, 1846, when about 
 $30,000 was applied.^* While this sum was equal to but a 
 small part of the payment falling due. It demonstrated to the 
 bondholders that the state was disposed to take up the burden 
 of paying Its obligations. 
 
 When the legislature convened for the 1 846-1 847 session. 
 Governor French In his message suggested registration and 
 refunding of the state debt to facilitate payment. ^^ He pointed 
 out that an uncertainty hung over the exact amount of the 
 state's liabilities creating a vague apprehension In the minds 
 
 31 A total of 1,424.27 acres remained unsold. Internal Improvement Records, 
 XVIII, 140. 
 
 ^- Ibid., 140-41. The land had been acquired by the state for internal im- 
 provements as follows: 
 
 Donated to the state by the national government — 
 
 Chicago land district 90,022.88 acres 
 
 Dixon land district 77>390-32 " 
 
 Danville land district 41,646.85 " 
 
 Total land donated 209,060.05 acres 
 
 Land purchased by the board of public works — 
 
 Central Railroad 17,153.22 acres 
 
 Alton-Shelbyville Railroad 16,563.14 " 
 
 Alton-Mt. Carmel Railroad 7.535-29 " 
 
 Alton-Shawneetown Railroad 1,040.00 " 
 
 Total land purchased 42,291.65 acres 
 
 Total amount of land acquired 251,351.70 acres 
 
 Reports General Assembly, 1850-1851, senate, 44. 
 ^^ Laivs of Illinois, 1847, 114-15. 
 ^■^ Illinois Gazette, July 25, 1846. 
 
 3s Message of Governor French, December 9, 1846, Senate Journal, 1846- 
 1847, 15.
 
 208 ILLINOIS INTERNAL IMPROVEMENTS 
 
 of the people that the efforts being made to meet a portion of 
 it were of little avail, and that to correct this, some course 
 should be adopted to determine the true amount of the debt. 
 He declared that all the state bonds and scrip, except the canal 
 debt, should be converted into uniform transferable stock. 
 For the arrears of interest due upon the bonds, a deferred 
 stock of similar character, differing only in that it bore no 
 interest for a number of years, was recommended. The ex- 
 pense of refunding, French thought, would be less than the 
 loss already suffered from counterfeiting the coupons, and 
 would possess the advantage of reducing the whole debt into 
 a clear and tangible form. 
 
 In accordance with the recommendation of the governor, 
 the legislature passed two funding acts, one authorizing the 
 funding of state bonds, and the other the state scrip and ac- 
 crued interest on the debt.^*' Considerable opposition arose 
 against the funding of the accrued interest on the ground that 
 it would in effect cause the state to pay compound interest after 
 1857, when the interest bonds were to begin bearing interest. 
 Within three years practically the entire debt, excluding that 
 of the canal, was refunded in uniform securities, which greatly 
 simplified the debt, and prevented further serious losses from 
 the counterfeiting of the bonds. ^^ 
 
 During the period of serious financial embarrassment when 
 the state was desperately seeking increased revenues, appeals 
 were made to Congress for a removal of the restriction which 
 the state had accepted at its admission into the union that no 
 tax could be imposed upon the land sold by the national gov- 
 ernment within her limits for five years after sale. Sidney 
 Breese in the Senate and John Wentworth In the House con- 
 sistently made efforts to remove the restriction, until Congress 
 finally acceded.^^ Consequently, on February 19, 1847, the 
 
 ^^ Ibid., 1846-1847, 95, 205, 226, 310, 324, 350, 363, 376; Laivs of Illinois, 
 1847, 161, 165; Illinois State Register, March 5, 1847. 
 
 ^'^ Alton Telegraph, October i, 1847; Illinois State Register, January 6, July 
 12, 1849. 
 
 '^^Congressional Globe, 28 Congress, 2 Session, 38, 99; Ibid., 29 Congress, 
 I Session, 221, 378, 1079; Ibid., 29 Congress, 2 Session, 52, 68, 121, 128; United 
 States Statutes at Large, IX, 118.
 
 LIQUIDATION OF IMPROVEMENT DEBT 209 
 
 legislature passed a law providing that all lands sold in the 
 future by the national government within the state should be 
 immediately subject to taxation.^" This measure materially 
 increased the revenue of the state, as after the Mexican War, 
 the distribution by the national government of land warrants 
 among the soldiers as bounty caused a large quantity of land 
 to be thrown on the market. 
 
 In 1847, the constitutional convention meeting to frame a 
 new constitution for the state took up the problem of provid- 
 ing additional means to pay the debt. Judge Stephen A. Logan 
 submitted a proposal to invest the school fund in state bonds 
 at their market value.'*- He contended that the school fund 
 could be doubled by this financial operation if the bonds could 
 be bought by the state at fifty cents on the dollar, which was 
 the approximate market price of Illinois bonds at the time. 
 The State Register in commenting on the proposal declared 
 that such a measure would set a precedent for repudiation. 
 The Sangamo Journal on the other hand, favored the plan, 
 and suggested that a poll tax which would bring in about 
 $133,000 annually should be adopted to build up the school 
 fund and invested in state bonds. *^ 
 
 On August 25, the finance committee reported that the con- 
 stitution should provide that the general assembly levy an- 
 nually a tax of not less than three mills on every dollar's 
 worth of personal and real property within the state, the pro- 
 ceeds of which should be applied to the payment of the in- 
 debtedness of the state.^- Cyrus Edwards of Madison county 
 moved that the levy be two mills instead of three. The new 
 constitution as framed had an article providing for a tax of 
 two mills on the dollar, to be applied to the creation of a fund 
 to be apportioned annually on January i and paid over pro 
 rata upon all state indebtedness, other than canal and school 
 
 ^^ Laivs of Illinois, 1847, 83. 
 *^ Illinois State Register, July 2, 1847. 
 
 41 Arthur Charles Cole, editor, The Constitutional Debates of 1847 [Collec- 
 tions of the Illinois State Historical Library, volume XIV, Springfield, 1919), 
 
 ^74-89- ... . . 
 
 ^-Illinois State Register, September 3, 1847; Constitutional Debates of 1847, 
 
 885-87.
 
 2IO ILLINOIS INTERNAL IMPROVEMENTS 
 
 indebtedness, in extinguishment of the principal/^ The total 
 internal improvement debt in July of 1847 amounted to 
 $8,164,981/-* 
 
 The first proceeds from the two mill tax became available 
 on July I, 1848.'''' A payment of six dollars was made on each 
 $1000 bond, which amounted to but one-fifth of the interest 
 falling due on that date. It soon became apparent that the 
 method of applying the proceeds from the two mills tax was 
 unsatisfactory. Bondholders were required to present all 
 bonds at the treasury on January i of each year to secure 
 endorsement for payment of but $18 or $20 on each $1000. 
 In 1849 ^^^ again in 1850, the governor in his annual message 
 suggested that the proceeds from the tax should be used in 
 the purchase of state bonds at the market price. He felt that 
 such a policy would have the effect of increasing the market 
 value of the bonds.^*^ In compliance with the governor's recom- 
 mendation, the legislature adopted a resolution in 1851 to sub- 
 mit a constitutional amendment to a vote of the people.^^ The 
 proposed amendment would have granted to the legislature the 
 discretion of using the funds arising from the two mill tax in 
 the purchase of state bonds in the open market at current rates, 
 instead of keeping the money in the treasury until the first of 
 January in each year, then to be apportioned and paid pro rata 
 at a par valuation on the bonds presented, regardless of their 
 price in the market. When the amendment was presented to 
 the people at the general election of November, 1852, it failed 
 to receive the required number of votes. 
 
 In spite of the failure of this amendment, the state was 
 enabled by other means to buy bonds in the open market. A 
 series of acts by the legislature provided for the use of various 
 funds to buy state indebtedness. It was by this means that a 
 large part of the debt was finally liquidated. 
 
 ^3 Emil Joseph Verlie, editor, Illinois Constitutions (Collections of the Illinois 
 State Historical Library, volume XIII, Springfield, 1919), 98-99. 
 
 •** Communication from Governor French to the constitutional convention, 
 July 8, 1847, Illinois State Register, July 15, 1847. 
 
 45 Illinois State Register, July 21, 1848. 
 
 *^ Ibid., May 15, 1851. 
 
 •*7 Laws of Illinois, 1852, 198.
 
 LIQUIDATION OF IMPROVEMENT DEBT 2 I I 
 
 On February 12, 1849, a law had been passed authorizing 
 the governor to use such sums of money as might be received 
 from the general government for the school fund of the state 
 in purchasing state indebtedness.** In 1853, ^" ^^^ was passed 
 requiring that any unappropriated or surplus funds in the treas- 
 ury, or which in the future might be received from any sources 
 of revenue, or from the sale of state lands or other property, 
 should be applied to the purchase of the indebtedness of the 
 state, except such indebtedness as might not have been fully 
 recognized by the laws of the state/^ It was in accordance with 
 this act that state bonds were purchased with a part of the 
 funds received from the Illinois Central Railroad Company 
 which under the terms of its charter had to give the state seven 
 per cent of its gross revenues/" On February 19, 1857, an act 
 was passed providing that surplus funds arising from the two 
 mill tax after the payment of the amount due on the principal 
 of such bonds as might be presented on January i, annually, 
 should be applied by the governor in the purchase of indebted- 
 ness of the state in the manner provided for in the "act to 
 provide for reducing the state debt" approved in 1853. 
 
 In 1857 the state was able to pay its annual interest in full 
 on all its indebtedness.'- This it had not been able to do dur- 
 ing the ten years which had elapsed since the debt was re- 
 funded in 1847, ^^^ hence there was a sum of back interest 
 which had not been paid. An act, therefore, was passed in 
 1857 directing bonds to be issued for the interest which had 
 accrued between the years of 1847 and 1857." These bonds 
 were not to bear interest until January i, i860, but at that 
 date they were deemed to be principal. Thus there were three 
 kinds of state indebtedness for which "internal improvement 
 bonds" had been issued — the first class for principal, redeem- 
 able in 1870; the second for interest which accrued prior to 
 
 *^ Ibid., 1849, 70. 
 ^^ Ibid., 1853, 200. 
 
 ^^ Illinois Journal, January- 22, 1851; Senate Journal, 1850-1851, 237, 265, 266. 
 For 1855 and 1856 the railroad was required to pay five per cent. 
 51 La^i•s of Illinois, 1857, public, 100. 
 ^^ Illinois Journal, November 17, 1858. 
 53 Lait'j of Illinois, 1857, public, 104.
 
 212 ILLINOIS INTERNAL IMPROVEMENTS 
 
 July I, 1847, ^^^ which became due July i, 1857; and the 
 third for interest which accrued between 1847 ^^^ 1^57' '^^'^ 
 which were redeemable at the pleasure of the state after Jan- 
 uary I, i860. 
 
 A number of events from 1855 to 1859 threatened to cost 
 the state considerable losses in the payment of its debt. On 
 January i, 1855, news came to Illinois that Julius Wadsworth, 
 the interest paying agent of the state in New York had become 
 bankrupt.^* There was in his hands at that time the sum of 
 $226,643.25 in state funds. Governor Matteson appointed 
 Uri Osgood to institute proceedings in the supreme court of 
 the state against the securities of Wadsworth to recover the 
 funds belonging to the state. In the arguments before the 
 court the defense declared that Wadsworth was not the agent 
 of the state, but the agent of the governor, and that he did not 
 have to account to the state for funds placed in his hands by 
 Governor Matteson. It was replied on the part of the state 
 that the law which required the governor to pay out the money 
 necessarily implied that he should appoint an agent as it was 
 impossible for him to do it in person, and therefore, the ap- 
 pointment of an agent was contemplated by the law. Before a 
 decision was rendered by the court, however, Wadsworth pro- 
 posed to pay the interest funds in his hands with state indebted- 
 ness, dollar for dollar. Governor Matteson accepted the offer, 
 and on January 10, 1857, John Moore, state treasurer, re- 
 ported that he had received $226,643.25 from Wadsworth in 
 full discharge of his obligations to the state. ^^ In the legisla- 
 ture the Republicans charged that Matteson had made a prac- 
 tice of placing state funds in the hands of the interest paying 
 agents several months before interest payments were due in 
 order that they might speculate with the funds. ^'^ Democratic 
 leaders and papers throughout the state observed strict silence 
 on the subject. The Wadsworth failure resulted in a law being 
 
 ^* Illinois State Register, July 12, 19, 1855, July 24, 1856; message of Gov- 
 ernor Joel A. Matteson to the general assembly, Reports General Assembly, 
 1856-1857, volume I, 8. 
 
 55 Special report of Moore to the general assembly, January 10, 1857, Ibid., 
 1856-1857, 153-57, volume I, 153-57- 
 
 56 Vermillion County Press, July 27, 1857.
 
 LIQUIDATION OF IMPROVEMENT DEBT 213 
 
 passed in 1859 providing that the state maintain no transfer 
 agency in New York, but that the state treasurer should make 
 the interest payments and that the governor should pay the 
 principal on the state bonds," 
 
 In 1859 an attempt was made to defraud the state. Holders 
 of $114,000 of Macalister and Stebbins bonds made an effort 
 to have them refunded under the refunding law of 1847.^^ The 
 liability of the state on these bonds was but $45,000, whereas, 
 if the refunding had succeeded it would have been $192,683. 
 The Macalister and Stebbins bonds need some explanation. 
 In 1 841 when the state was without funds to make interest 
 payments, the legislature authorized the governor to issue 
 bonds to raise money, the bonds to be sold by the internal im- 
 provement fund commissioner at the best price obtainable. °^ 
 
 In June, 1841, the fund commissioner, John D. Whiteside, 
 made an agreement with Macalister and Stebbins of New 
 York to hypothecate with them interest bonds of $1000 each 
 at the rate of $400 per bond or forty cents to the dollar. "^^ He 
 delivered to the firm 804 bonds with the understanding that 
 they were to pay $321,600 on the interest due on the state 
 debt, and that they would not dispose of the bonds unless sold 
 at seventy-five per cent of their par value. Furthermore, they 
 were to sell no more than to reimburse the advance which they 
 had made to the state under the direction of the fund commis- 
 sioner. On behalf of the state, Whiteside promised that the 
 loan would be refunded within six months and that three and 
 a half per cent interest would be paid on it during that period. 
 Macalister and Stebbins paid but $286,433.33 on the interest 
 of the state debt on July i, and of this $24,872.50 was re- 
 turned in the form of a protested bill on October g.*^^ As the 
 price of Illinois bonds declined after the contract was made 
 on June 17, Macalister and Stebbins asked for more secur- 
 
 ^'^ Laivs of Illinois, 1859, 192. 
 
 ^'* Illinois State Journal, July 20, August 10, 1859; Illinois State Register, 
 January 10, i860. 
 
 59 Laivs of Illinois, 1841, 166-67. 
 
 ^0 Report of Whiteside to the senate, December 26, 1842, Reports General 
 Assembly, 1842-1843, senate, 75; Sangamo Journal, October 22, 1841. 
 
 °i Macalister and Stebbins statement to the senate, Reports General Assembly, 
 1842-1843, senate, 197.
 
 2 14 ILLINOIS INTERNAL IMPROVEMENTS 
 
 ity and took into their possession forty-two more $1000 
 bonds and $67,215.44 of scrip, so that they held a total of 
 $913,215.44 in state liabilities as collateral security for the 
 loan of $261,560.83. The firm had to pledge these bonds in 
 various amounts with different brokers in order to raise the 
 money which it had loaned the state. **- 
 
 When the fund commissioner was unable to repay the loan 
 in December, the creditors of Macalister and Stebbins pro- 
 ceeded to sell the bonds in their possession in an effort to 
 satisfy the advances which they had made to that firm in order 
 that it might loan the $261,560.83 to the state. Five hundred 
 thirty-five of the state bonds selling at fifteen to twenty cents 
 on the dollar netted only $89,877.24. During the i 842-1 843 
 session of the general assembly, Macalister and Stebbins ap- 
 plied to the state for relief. A joint select committee was 
 appointed to conduct an investigation at which John D. White- 
 side and Charles Macalister testified. After hearing the testi- 
 mony of these two men the committee adopted resolutions 
 denying the right of the fund commissioner to hypothecate 
 bonds under the existing laws of the state, but recommended 
 that the holders of the bonds in question be paid pro rata for 
 the amount advanced to the state on them.^^ After much dis- 
 cussion the legislature passed a law on March 4, 1843, author- 
 izing the auditor to pay Macalister and Stebbins the sum of 
 $261,500 with interest from June 17, 1841, in installments of 
 $20,000 to be paid in 1844, and $50,000 annually thereafter, 
 until the whole amount was paid; provided, that Macalister 
 and Stebbins should surrender the bonds and other state liabil- 
 ities in their possession to the auditor.*'* This act to settle the 
 account of Macalister and Stebbins was not complied with 
 since the bonds which they proposed to return were no longer 
 subject to their control.*'^ 
 
 ^-Peoria Register, January 14, 1842. 
 
 ^3 Report of the joint select committee to whom was referred the memorial 
 of Charles Macalister, February 25, 1843, Reports General Assembly, 1842-1843, 
 senate, 185-98; Illinois State Register, January 14, 1842; Sangamo Journal, 
 January 7, 14, February 4, 25, 1842. 
 
 ^Senate Journal, 1842-1843, 330, 456, 534; Laii's of Illinois, 1843, 286. 
 
 65 Message of Governor Ford, December 3, 1844; Reports General Assembly, 
 1844-1845, senate, 9.
 
 LIQUIDATION OF IMPROVEMENT DEBT 2 I 5 
 
 At Its 1 844-1 845 session the general assembly adopted 
 a joint resolution authorizing the governor to accept the 
 Macalister and Stebbins bonds in discharge of debts due the 
 state at the rate of twenty-six cents on the dollar.''^ On Feb- 
 ruary 10, 1849, ^ ^^w was passed empowering the governor 
 to issue liquidation bonds of not less than $1000 each, payable 
 after the year 1865 and bearing interest at the rate of six per 
 cent, to the holders of Macalister and Stebbins bonds at the 
 rate of twenty-six cents on the dollar when amounts of not less 
 than $20,000 of those bonds should be surrendered.^'' By 
 1865 all of the bonds had been exchanged except one hundred 
 twenty. On February 15 of that year a law was passed stipu- 
 lating that the state would pay for the remainder of the bonds 
 at the rate of $248.13 on the $1000 until January i, 1866, 
 but after that date the privilege of redeeming them would be 
 forever forfeited.®^ In his message to the legislature on Jan- 
 uary 17, 1867, Governor Richard J. Oglesby reported that all 
 of the Macalister and Stebbins stock had been paid.^^ Thus 
 after twenty-five years this source of annoyance to the state 
 was finally settled. 
 
 After 1859 payments were made regularly on the state debt 
 without any more difficulty, although the indebtedness was 
 increased by the sale of two million dollars in war bonds to 
 aid the state in financing its part in the Civil War. On Novem- 
 ber 12, 1880, the governor issued a proclamation calling in 
 the last of the bonds, and on January i, 1881, John C. Smith, 
 the state treasurer, paid them in New York,^° The sum of 
 $23,600 remained unpaid on October i, 1882, since it had 
 not been presented for payment even though called in for re- 
 demption. Thus after forty years the state was relieved of 
 the burden which had caused it so much embarrassment. 
 
 It would seem that Illinois experienced great difficulties in 
 
 ^'^' Laivs of Illinois, 1845, 371. 
 
 ^^ Ibid., 1849, 43-45. 
 
 ^^Ibid., 1865, public, 89. 
 
 s'-* Message of Governor Oglesby, January 17, 1867, Reports General Assem- 
 bly, 1866-1867, senate, 4. 
 
 "0 Report of Edward Rutz, state treasurer, November i, 1882, Ibid., 1882- 
 1883, volume I, 24, 26.
 
 2l6 ILLINOIS INTERNAL IMPROVEMENTS 
 
 liquidating the internal improvement debt. In comparison 
 with other states, however, It did very well In meeting its 
 obligations. Ohio, for example, with greater resources and 
 population when the indebtedness was contracted did not make 
 the final payment until 1902 even though its debt was no 
 greater than that of Illinois. ^^ Mississippi, Louisiana, Mary- 
 land, Pennsylvania, Indiana, and Michigan repudiated part of 
 their debt in varying amounts. 
 
 In explaining the relative success of Illinois in handling the 
 debt problem Governor Ford deserves much credit for the 
 courageous manner In which he faced the state's financial diffi- 
 culties. Under his leadership the legislature inaugurated a 
 program which eventually solved the debt problem. The large 
 income which the state received from the Illinois Central Rail- 
 road was another Important factor In paying the debt." Ap- 
 proximately twenty-five per cent of the state's indebtedness 
 was liquidated with the money received from the privately 
 owned railroad. Most important, though, in explaining the 
 solution of the financial difficulties are the better times and 
 increased wealth. A study of the following table will show 
 how it became possible for the state to pay the Internal im- 
 provement debt." 
 
 
 Assessed value of 
 
 
 
 Net amount 
 
 
 real estate and 
 
 Amount of 
 
 
 collected for 
 
 Year 
 
 personal property 
 
 tax charged 
 
 ordinary expenses 
 
 1839 
 
 $ 58,889,525-00 
 
 $ 117,779-05 
 
 $ 
 
 106,201.03 
 
 1840 
 
 58,752,168.00 
 
 117,821.28 
 
 
 105,411.61 
 
 1841 
 
 70,196,053.00 
 
 210,498.10 
 
 
 189,404-52 
 
 1842 
 
 72,605,424.00 
 
 108,908.08 
 
 
 98,546.14 
 
 1843 
 
 72,416,800.00 
 
 144,833-60 
 
 
 134,754-55 
 
 1844 
 
 75,757.765-00 
 
 151,495-53 
 
 
 140,917.83 
 
 1845 
 
 82,327,105.00 
 
 246,981.22 
 
 
 229,617.08 
 
 1846 
 
 88,815,403-43 
 
 311,1 18.00 
 
 
 290,075.08 
 
 ■'i The state debt of Ohio amounted to $15,573,000 in 1841. Bogart, op. cit., 
 174, 232. 
 
 "- For the amount of money received by the state from the Illinois Central 
 Railroad see Appendix I. 
 
 "•' Data for this table was obtained from the biennial reports of the auditor 
 of public accounts.
 
 LIQUIDATION OF IMPROVEMENT DEBT 217 
 
 1847 
 
 92,206,493.96 
 
 339,779.53 
 
 314,830.66 
 
 1848 
 
 102,132,193.97 
 
 379,232.01 
 
 344,422.93 
 
 1849 
 
 105.432,752.13 
 
 612,428.19 
 
 578,763-81 
 
 1850 
 
 119,868,336.37 
 
 702,076.17 
 
 593,142-81 
 
 I85I 
 
 137.818,079.30 
 
 834,495-60 
 
 700,951.26 
 
 1852 
 
 149,294,805.00 
 
 909,472-87 
 
 791,749.40 
 
 1853 
 
 225,159,633-00 
 
 1,116,993-37 
 
 962,282.09 
 
 1854 
 
 252,756,568.00 
 
 1,279,089.87 
 
 1,190,021.18 
 
 1855 
 
 334,398,425-00 
 
 2,260,904.90 
 
 2,097,951-43 
 
 1856 
 
 349,951,272.00 
 
 2,368,741.81 
 
 2,199,814.43 
 
 1857 
 
 407,477,367.00 
 
 2,750,346.01 
 
 2,515,501.08 
 
 1858 
 
 403,140,321.00 
 
 2,739,429.90 
 
 2,446,576.77 
 
 It win be seen that the state enjoyed a steady and rapid 
 increase in property valuations after 1843. Even more Im- 
 portant was the increase In taxes which the state could collect. 
 It doubtless was less burdensome for the people to pay more 
 than two and a half million dollars in taxes during 1857 than 
 it had been to pay only ninety eight thousand dollars in 1842.
 
 APPENDICES 
 
 APPENDIX A 
 
 FINAL REPORT OF TRUSTEES OF ILLINOIS 
 AND MICHIGAN CANAL* 
 
 Amounts Received Between June 26, 1845, and April 30, 1871 
 
 Loan of 1,600,000 dollars, principal and interest $ 1,601,891.90 
 
 Canal bonds, sales, protection, etc 4,706,482.68 
 
 Construction of canal feeders, etc 2,132.25 
 
 Maintenance and repairs of canal and feeders 111,003.97 
 
 Tolls, collections, inspection, and salaries 4,405,658.27 
 
 Interest and exchange 181,412.07 
 
 Premium on gold for dividends on bonds 923.27 
 
 General expenses and contingencies 3.00 
 
 Total $11,009,507.41 
 
 Amounts Expended Between June 26, 1845, and April 30, 1871 
 
 Loan of 1,600,000 dollars, principal and interest $ 2,153,771.31 
 
 Construction of canal feeders, etc 1,429,606.21 
 
 Canal bonds, sales, protection, etc. 115,523.23 
 
 Arrears of interest on registered bonds 2,155,622.38 
 
 Principal of registered bonds 2,195,463.67 
 
 Maintenance and repairs of canal and feeders 1,853,049.61 
 
 Tolls, collections, inspection, and salaries 160,462.71 
 
 Canal damages, flowage, etc 22,163.32 
 
 General expenses and contingencies 421,600.82 
 
 Interest and exchange 21,073.80 
 
 Losses on "wildcat" currency, counterfeit bills, 
 
 broken banks, etc 14,563.52 
 
 Balance in hands of treasurer of the board of 
 
 trustees, April 30, 1871 95,742.41 
 
 Total $11,009,507.41 
 
 * Report of canal commissioners, December i, 1872, Reports General Assem- 
 bly, 1872-1873, volume I, 8.
 
 APPENDICES 219 
 
 APPENDIX B 
 
 APPRAISAL OF INTERNAL IMPROVEMENT 
 PROPERTY, 1844* 
 
 DESCRIPTIOX OF PROPERTY ACRES V^ALUE 
 
 Lands on Central Railroad valued by 
 
 E. Adams and J. M. Kelley 16,538.00 $ 131,560.00 
 
 Lands lying in Shelby and Coles counties 
 
 valued by W. Williamson 11,658.05 27,510.50 
 
 Lands lying in the Danville district valued 
 
 by D. Markley, agent 3,760.00 33,200.00 
 
 Lands selected by D, Markley in the Dan- 
 ville district, pursuant to an Act of 
 
 Congress, approved March 19, 1842 2,496.11 11,920.52 
 
 Lands in the Danville district 39,744.19 133,458.12 
 
 Lands in the Dixon district 78,189.73 451,583.05 
 
 Lands in the Chicago district 96,144.70 337,161.17 
 
 Depots, buildings, materials, work done, and 
 
 right of way on the Northern Cross 
 
 Railroad, from Springfield to the Illinois 
 
 river, valued by E. Adams and F. Doyle.. 234,515.50 
 
 House and lot in Jonesboro, valued by 
 
 E. Adams and J. M. Kelley 3,000.00 
 
 One lot of ground in Mt. Carmel 45.00 
 
 One lot of ground in Danville 250.00 
 
 Part lot 4, block 3, in Quincy 250.00 
 
 Carmi Mills 1 5,000.00 
 
 New Haven Mills 15,000.00 
 
 One lot in Jacksonville i,ooo.oo 
 
 Land on Rock river 7.00 15,000.00 
 
 Total number of acres valued 248,544.78 $1,410,453.86 
 
 Total amount sold 19)938. 19 73,i99-i5 
 
 Lands in the Chicago district not valued 5,463.24 
 
 Remaining unsold 234,069.83 $1,290,709.71 
 
 OTHER LAND AND LOTS NOT VALUED 
 
 Ten acres of land in Cairo City. 
 
 Three-fourths acre of land in Equality. 
 
 Lots number 11 75, 11 76, and 11 78 in Shawneetown. 
 
 * Report of Auditor William L. D. Ewing, on appraisement of state property, 
 December 16, 1844, Reports General Assembly, 1844-1845, senate, 142.
 
 220 ILLINOIS INTERNAL IMPROVEMENTS 
 
 One-half of lot number 272 in Shawneetown. 
 One lot of ground in Paris. 
 
 Lots in Jacksonville, Meredosia, New Berlin, Springfield, 
 and Decatur donated. 
 
 APPENDIX C 
 
 STATE INDEBTEDNESS FUNDED * 
 
 175 Bank and internal improvement bonds — State 
 
 Bank of Illinois $ 175,000.00 
 
 Written bonds issued to State Bank of Illinois 5,180.45 
 
 790 Bank and internal improvement bonds — Bank 
 
 of Illinois 790,000.00 
 
 2991 Internal improvement bonds (board of fund 
 
 commissioner) 2,991,000.00 
 
 4 Internal improvement bonds destroyed by fire, 
 
 Strachan and Scott 4,000.00 
 
 455 Internal improvement bonds signed by 
 
 R. F. Barrett, fund commissioner 455,000.00 
 
 530 £225 sterling internal improvement bonds at 
 
 8% exchange 572,400.00 
 
 33 £100 sterling internal improvement bonds at 
 
 8% exchange 15,840.00 
 
 49 Illinois and Michigan Canal bonds (Northern 
 Cross Railroad bonds) funded under 
 
 special act 49,000.00 
 
 Internal improvement scrip issued by Hogan 
 
 and Prentiss 420,379.08 
 
 Internal improvement scrip not found 6,300.00 
 
 Drafts on fund commissioner by board of 
 
 public works 82,733.88 
 
 Scrip issued to G. B. Redman by Governor French.... 1,200.00 
 
 Scrip issued by board of auditors. Shields, 
 
 Carpenter, and Trumbull 20,416.70 
 
 New internal improvement stock certificates 
 issued to M. Kennedy on account of scrip 
 
 in hands J. Holford 38,215.44 
 
 92 State house bonds or stock for public buildings 92,000.00 
 
 $5,718,665.47 
 
 * Report of senate finance committee, Reports General Assembly, 1860-1861, 
 volume I, 418-20.
 
 APPENDICES 22 1 
 
 APPENDIX D 
 
 ARREARS OF INTEREST FUNDED IN 1857 * 
 Presented for Funding 
 
 Arrears of interest on new internal improvement 
 
 stock certificates $1,770,025.43 
 
 Arrears of interest on three year old internal 
 
 improvement bonds 2,399.49 
 
 Internal improvement scrip funded — principal 
 
 $3,953.22, interest $10,679.53 14,632.75 
 
 Arrears of interest on Illinois and IVIichigan 
 
 Canal stock 1,184,604.62 
 
 Illinois and Michigan Canal scrip funded — principal 
 
 $674.05, interest $693.12 1,367.17 
 
 $2,973,029.46 
 
 INTEREST STOCK OF 1 857 ISSUED 
 
 113 bonds, numbers i to 113 inclusive, issued for arrears 
 of interest on canal stock being in the form of canal 
 bonds of 1847, but printed in red across the face 
 designating them as being issued under the act of 
 February, 1857, and not to draw interest until Jan- 
 uary, i860 $ 113,000.00 
 
 262 bonds, numbers i to 262, issued for arrears of inter- 
 est and being in the form of new internal improve- 
 ment stock certificates of July i, 1847, printed in 
 red across the face, designating them to be interest 
 stock issued under the act of February, 1857, ^^'^ 
 
 not to draw interest until January, i860 262,000.00 
 
 2522 bonds, numbers 623 to 2783 inclusive, interest stock, 
 
 new plate dated May i, 1857 2,582,043.28 
 
 $2,957,043.28 
 
 Less bond number 2077 returned and cancelled 1,815.00 
 
 $2,955,228.28 
 Certificates of state indebtedness for balances over 
 even thousands and for sums under one thou- 
 sand dollars and balances on the funding book 
 certificates taken up December 30, i860, except 
 
 $2,674.53 17,801.18 
 
 $2,973,029.46 
 
 * Report of senate finance committee. Reports General Assembly, 1860-1861, 
 volume I, 426-27.
 
 222 ILLINOIS INTERNAL IMPROVEMENTS 
 
 APPENDIX E 
 
 INDEBTEDNESS BOUGHT WITH LAND FUND* 
 
 New internal improvement stock certificates $145,754.82 
 
 Interest bonds of 1847 15,550.62 
 
 Illinois and Michigan Canal bonds, 
 
 one bond of 1837 $ 1,000 
 
 one bond of 1839 1,000 
 
 eleven bonds of 1841 11,000 
 
 seventy bonds of 1847 70,000 
 
 nine sterling £225 bonds 9,720 92,720.00 
 
 Illinois and Michigan Canal scrip and checks, 
 
 of March i, 1848 $ 9,311.56 
 
 of 1842 and subsequently 705.50 
 
 Governor's scrip 844.42 
 
 ninety day canal checks 900.00 11,461.48 
 
 Internal improvement scrip 1,641.93 
 
 Illinois and Michigan Canal interest certificates 33,082.01 
 
 $300,210.86 
 
 * Report of senate finance committee. Reports General Assembly, 1860-1861, 
 volume I, 420. 
 
 APPENDIX F 
 
 INDEBTEDNESS BOUGHT WITH SCHOOL FUND* 
 
 New^ internal improvement stock certificates $ 65,615.26 
 
 New^ internal stock interest bonds 19,302.07 
 
 Illinois and Michigan Canal bonds, 
 
 one bond of 1847 $ 1,000.00 
 
 twenty-six sterling £225 bonds .... 28,080.00 29,080.00 
 
 Illinois and Michigan Canal scrip, 
 
 of March i, 1840 $37,300.00 
 
 of 1842 and subsequently 61.50 
 
 Governor's scrip 289.72 37,651.22 
 
 Internal improvement scrip, Hogan and Prentiss 963.57 
 
 $152,612.12 
 
 * Report of senate finance committee, Reports General Assembly, 1860-1861, 
 volume I, 421.
 
 APPENDICES 
 
 223 
 
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 224 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
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 APPENDICES 
 
 APPENDIX I 
 
 225 
 
 AMOUNT PAID BY ILLINOIS CENTRAL RAILROAD 
 INTO STATE TREASURY * 
 
 GROSS 
 PERIOD EARNINGS PERCENT 
 
 From March 24, 1855, to 
 
 Oct. 31, 1855 $ 595,031.86 
 
 For six months ending 
 
 April 30, 1856 ...^ 630,580.02 
 
 For six months ending 
 
 Oct. 31, 1856 922,053.30 
 
 For six months ending 
 
 April 30, 1857 925,386.69 
 
 For six months ending 
 
 Oct. 31, 1857 1,234,986.00 
 
 For six months ending 
 
 April 30, 1858 860,796.56 
 
 For six months ending 
 
 Oct. 31, 1858 1,024,996.78 
 
 For six months ending 
 
 April 30, 1859 830,538.42 
 
 For six months ending 
 
 Oct. 31, 1859 1,056,668.35 
 
 For six months ending 
 
 April 30, i860 1,151,608.00 
 
 For six months ending 
 
 Oct. 31, i860 1,384,923.67 
 
 For six months ending 
 
 April 30, 1861 1,213,348.00 
 
 For six months ending 
 
 Oct. 31, 1861 1,318,906.47 
 
 For six months ending 
 
 April 30, 1862 1,063,790.61 
 
 For six months ending 
 
 Oct. 31, 1862 1,967,275.18 
 
 For six months ending 
 
 April 30, 1863 1,809,068.97 
 
 * Report of John C. Smith, treasurer, November i, il 
 Assembly, 1880-1881, volume I, 33. 
 
 AMOUNT PAID 
 
 INTO THE STATE 
 
 TREASURY 
 
 5 
 
 5 
 
 5 
 
 5 and 7 
 
 7 
 7 
 7 
 7 
 7 
 7 
 7 
 7 
 7 
 7 
 7 
 7 
 
 $ 29,751-59 
 31,529.00 
 46,102.56 
 59,196.82 
 86,499.02 
 60,225.76 
 
 71,749-77 
 58,137-68 
 73,966.78 
 80,612.56 
 96,944.66 
 84,934.36 
 92,323-45 
 74,465-34 
 137,709.26 
 126,634.83 
 
 Reports General
 
 226 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 AMOUNT PAID BY ILLINOIS CENTRAL RAILROAD 
 INTO STATE TREASURY {Cont'd) 
 
 GROSS 
 PERIOD EARNINGS 
 
 For six months ending 
 
 Oct. 31, 1863 2,482,282.12 
 
 For six months ending 
 
 April 30, 1864 2,429,358.23 
 
 For six months ending 
 
 Oct. 31, 1864 3,363,69948 
 
 For six months ending 
 
 April 30, 1865 3,436,483-38 
 
 For six months ending 
 
 Oct. 31, 1865 3,656,228.56 
 
 For six months ending 
 
 April 30, 1866 2,935,738.55 
 
 For six months ending 
 
 Oct. 31, 1866 3,165,343.63 
 
 For six months ending 
 
 April 30, 1867 2,595,566.99 
 
 For six months ending 
 
 Oct. 31, 1867 3,383,400.57 
 
 For six months ending 
 
 April 30, 1868 2,780,043.05 
 
 For six months ending 
 
 Oct. 31, 1868 3,339,921.01 
 
 For six months ending 
 
 April 30, 1869 2,999,196.41 
 
 For six months ending 
 
 Oct. 31, 1869 3,642,708.06 
 
 For six months ending 
 
 April 30, 1870 3,068,850.81 
 
 For six months ending 
 
 Oct. 31, 1870 3,568,070.85 
 
 For six months ending 
 
 April 30, 1871 3,026,072.73 
 
 For six months ending 
 
 Oct. 31, 1871 3,595,540.32 
 
 For six months ending 
 
 April 30, 1872 3,158,597-62 
 
 AMOUNT PAID 
 INTO THE STATE 
 PERCENT TREASURY 
 
 7 
 
 173,759-75 
 
 7 
 
 170,055.08 
 
 7 
 
 235,458.96 
 
 7 
 
 240,553-84 
 
 7 
 
 255,936.00 
 
 7 
 
 205,501.70 
 
 7 
 
 221,574-05 
 
 7 
 
 207,574-05 
 
 7 
 
 236,838.04 
 
 7 
 
 194,603.01 
 
 7 
 
 233,794-47 
 
 7 
 
 209,943-75 
 
 7 
 
 254,989-56 
 
 7 
 
 214,819-56 
 
 7 
 
 249,764.96 
 
 7 
 
 211,825.09 
 
 7 
 
 251,687-82 
 
 7 
 
 221,101.83
 
 APPENDICES 
 
 227 
 
 AMOUNT PAID BY ILLINOIS CENTRAL RAILROAD 
 INTO STATE TREASURY {Cont'd) 
 
 GROSS 
 PERIOD EARNINGS 
 
 For six months ending 
 
 Oct. 31, 1872 3,167,924.49 
 
 For six months ending 
 
 April 30, 1873 2,932,653.13 
 
 For six months ending 
 
 Oct. 31, 1873 3,189,832.63 
 
 For six months ending 
 
 April 30, 1874 2,535,046.43 
 
 For six months ending 
 
 Oct. 31, 1874 3,098,760.13 
 
 For six months ending 
 
 April 30, 1875 2,575,133.82 
 
 For six months ending 
 
 Oct. 31, 1875 2,792,952.20 
 
 For six months ending 
 
 April 30, 1876 2,519,443.07 
 
 For six months ending 
 
 Oct. 31, 1876 2,566,351.07 
 
 For six months ending 
 
 April 30, 1877 1,996,359.60 
 
 For six months ending 
 
 Oct. 31, 1877 2,522,953.86 
 
 For six months ending 
 
 April 30, 1878 2,160,421.99 
 
 For six months ending 
 
 Oct. 31, 1878 2,417,173.81 
 
 For six months ending 
 
 April 30, 1879 2,137,648.88 
 
 For six months ending 
 
 Oct. 31, 1879 2,512,028.08 
 
 For six months ending 
 
 April 30, 1880 2,368,395.46 
 
 Total amount paid State ... 
 
 AMOUNT PAID 
 INTO THE STATE 
 PERCENT TREASURY 
 
 221,754.71 
 205,285.72 
 223,288.28 
 
 177,453-25 
 216,913.21 
 180,259.37 
 195,506.65 
 167,361.01 
 179,644.57 
 
 139,745-17 
 176,606.77 
 151,229.54 
 169,202.17 
 149,635.42 
 175,841-96 
 165,787.68 
 5,104,656.19
 
 BIBLIOGRAPHY 
 I 
 
 MANUSCRIPT DOCUMENTS 
 
 Illinois State Library, Archives Division, Springfield 
 
 Agreement for leasing completed section of Northern Cross Railroad to 
 Cornelius Ludlum and William D. Baxter, April 7, 1844. 
 
 Contracts for the construction of the Illinois Central, Northern Cross, 
 Peoria and Warsaw, Alton and Shawneetown, and Rushville and 
 Erie railroads. 
 
 Deed for Sale of Northern Cross Railroad to Joel A. Matteson and 
 Nicholas H. Ridgely, Letters of a Public Nature from the Secre- 
 tary of State, volume VII, December 17, 1840-June 6, 1850. 
 
 Illinois and Michigan Canal Letter-Book, 1836- 1845. 
 
 Internal Improvement Records. 27 volumes. Numbered in 1934 by the 
 State Archivist. 
 
 Register of canal bonds, 1847, volume I. 
 Register of blank bonds received from Thomas Carlin, late governor 
 
 and prepared by him to be issued on account of the Illinois and 
 
 Michigan Canal, act of March 2, 1843, volume II. 
 Register of bonds, acts of 1859, volume III. 
 Fund commissioner, arrears of interest funded, 1857-1859, volume 
 
 IV. 
 Record of state bonds and internal improvement scrip, 1837-1840, 
 
 volume V. 
 Reports of accounts with Wadsworth and Shelton, state interest 
 
 commissioners, 1846-1855, volume VI. 
 Record, Northern Cross Railroad, fund commissioner's proposals, 
 
 1841, volume VII. 
 Fund commissioners, letters received, 1837-1840, volume VIII. 
 Fund commissioners, letters forwarded, 1837-1840, volume IX. 
 Fund commissioners, letters, internal improvement account, 1840- 
 
 1843, volume X. 
 Illinois and Michigan Canal bonds and other evidences of state
 
 BIBLIOGRAPHY 229 
 
 indebtedness presented under the act of February 21, 1843, in 
 
 subscription for the $1,600,000 canal loan, volume XI. 
 Register of Illinois and Michigan Canal bonds surrendered, 1857,' 
 
 volume XII. 
 llinois and Michigan Canal report of the claims commission of 
 
 1856, testimony on sale of bonds, volume XIII. 
 llinois and Michigan Canal Register of indebtedness, 1845, volume 
 
 XIV. 
 llinois and Michigan Canal Register of indebtedness, 1847, volume 
 
 XV. 
 llinois and Michigan Canal Register of indebtedness, 1843, volume 
 
 XVI. 
 
 llinois and Michigan Canal subscribers to the loan, 1847, volume 
 XVII. 
 
 Report of the state indebtedness investigation committee, 1859, 
 volume XVIII. 
 
 Report of the state indebtedness investigation committee, 1859, 
 volume XIX. 
 
 State indebtedness bonds surrendered, 1843, volume XX. 
 
 Board of auditors of state house claim commission, 1841-1853, 
 
 volume XXI. 
 Account of drafts of commissioners of public works, 1840, first 
 
 district, volume XXII. 
 
 Account of drafts of commissioners of public works, 1840, second 
 district, volume XXIII. 
 
 Account of drafts of commissioners of public works, 1840, third 
 district, volume XXIV. 
 
 Register of internal improvement scrip, registered and marked 
 "genuine," act of Februarv 28, 1847, section eight, volume 
 XXV. 
 
 Terre Haute and Alton Railroad, articles of association and sub- 
 scription, 1850, volume XXVI. 
 
 Survey of state road, Vincennes to Chicago, 1832, volume XXVII. 
 
 Miscellaneous general assembly papers, 1818-1848, includes petitions, 
 letters, reports, resolutions, communications, and messages. 
 
 Releases of right of way for the Northern Cross, Alton and Shelbyville, 
 Alton and Mount Carmel, and Pekin and Bloomington railroads. 
 
 Revenue reports by Superintendent H. G. Rew for the Northern Cross 
 Railroad, Executive Records.
 
 230 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Surveys of the railroad routes of the internal improvement system of 
 1837 reported by the engineers and surveyors. 
 
 Vouchers of the board of public works. 
 
 II 
 
 PRINTED FEDERAL AND STATE DOCUMENTS 
 
 Illinois 
 
 Illinois Constitutions, edited by Emil Joseph Verlie (Collections of the 
 Illinois State Historical Library, volume XIII, constitutional series, 
 volume I), Springfield, 19 19. 
 
 Internal Improvement Reports, 1838-1839, 2 volumes, Springfield, 1839- 
 1840. Consists of reports of the board of public works. 
 
 Journal of the Convention, assembled at Springfield, June y, 1S47, 
 . . . for the purpose of altering, amending or revising the Constitu- 
 tion of the State of Illinois, Springfield, 1847. 
 
 Journal of the House of Representatives of the State of Illinois, 1818- 
 1857, published at the state capitals, 1818-1857. Cited as House 
 Journal. 
 
 Journal of the Senate of the State of Illinois, 1818-1857, published at 
 the state capitals, 1818-1857. Cited as Senate Journal. 
 
 Laws of Illinois, 1 8 19-1857, published at the state capitals, 18 19-1857. 
 
 Laius of Illinois Territory, 181 8, Kaskaskia, 181 8. 
 
 Reports made to the Senate and House of Representatives of the State of 
 Illinois, 1838-1883, Springfield, 1838-1883. Cited as Reports Gen- 
 eral Assembly. 
 
 Report of the Canal Commissioners of Illinois to Governor John R. 
 Tanner, 1 900, Springfield, 1901. Contains a documentary history 
 of the Illinois and Michigan Canal from 1822 to 1848. 
 
 United States 
 
 American State Papers, Miscellaneous, 2 volumes, Washington, 1834. 
 
 Annals of Congress, 1 818-1824, Washington, 1 854-1 856. 
 
 Congressional Globe, 1833-1854, Washington, 1837-1854. 
 
 Register of Debates in Congress, 1824-1837, Washington, 1825-1837. 
 Cited as Congressional Debates. 
 
 United States Statutes at Large, volumes III-IX, Boston, 1846- 185 1.
 
 BIBLIOGRAPHY 23 1 
 
 III 
 
 NEWSPAPERS AND PERIODICALS 
 
 The files of the newspapers used in this work are preserved in the Illinois 
 State Historical Library, the Illinois Historical Survey, and in the 
 libraries of the Chicago Historical Society and the University of 
 Illinois. For a complete bibliography of Illinois newspapers, as well 
 as for additional data on those here listed, see: Scott, Franklin W., 
 Newspapers and Periodicals of Illinois, 181 4-187 Q {Collections of 
 the Illinois State Historical Library, volume VI, bibliographical 
 series, volume I), Springfield, igio. 
 
 Alton Daily Morning Journal, 1 853, Alton, Illinois. 
 
 Alton Observer, 1836-1838, Alton, Illinois. 
 
 Alton Spectator, 1832-1840, Alton, Illinois. 
 
 Alton Telegraph, 1836-1850, Alton, Illinois. Its title was changed 
 April 3, 1841, to Alton Telegraph and Democratic Review. 
 
 Beardstown Chronical, 1834, Beardstown, Illinois. 
 
 Beardstown Gazette, 1 847- 1848, Beardstown, Illinois. 
 
 Chicago American, 1835-1839, Chicago, Illinois. Continued as Chicago 
 Daily American after 1839. 
 
 Chicago Daily American, 1839-1848, Chicago, Illinois. 
 
 Chicago Daily Journal, 1 844- 1 848, Chicago, Illinois. 
 
 Chicago Democrat, 1 833- 1848, Chicago, Illinois. 
 
 Chicago Weekly Tribune, 1840-1841, Chicago, Illinois. 
 
 Edwardsville Spectator, 1 819-1826, Edwardsville, Illinois. Photostatic 
 copies in Illinois Historical Survey. 
 
 Galena Advertiser, 1829-1830, Galena, Illinois. 
 
 Galenian, 1 832- 1836, Galena, Illinois. 
 
 Hennepin Journal, 1837-1838, Hennepin, Illinois. 
 
 Illinois Advocate, 1 83 1- 1 832, Edwardsville, Illinois, and 1832- 1833, 
 Vandalia, Illinois. Its title was changed to Illinois Advocate and 
 State Register, 1833- 1 835, then to Illinois State Register and Illi- 
 nois Advocate, 1836, and to Illinois State Register and People's 
 Advocate, 1836- 1839. 
 
 lUinoisan, 1837-1844, Jacksonville, Illinois. 
 
 Illinois Gazette, 1819-1830, Shawneetown, Illinois. Photostatic copies 
 in Illinois Historical Survey.
 
 232 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Illinois Gazette, 1 841-1848, Lacon, Illinois. 
 
 Illinois Intelligencer, 1818-1820, Vandalia, Illinois. Photostatic copies 
 in Illinois Historical Survey. 
 
 Illinois Journal, 1847-1855, Springfield, Illinois. It became the Illinois 
 State Journal in 1855. 
 
 Illinois Republican, 1837, Springfield, Illinois. 
 
 Illinois State Journal, 1 855- 1 859, Springfield, Illinois. 
 
 Illinois State Register, 1 839-1 860, Springfield, Illinois. 
 
 Illinois State Register and People's Advocate, 1836- 1 839, Springfield, 
 Illinois. It became the Illinois State Register in 1839. 
 
 Illinois Statesman, 1843-1844, Jacksonville, Illinois. 
 
 Kaskaskia Democrat, 1830, Kaskaskia, Illinois. 
 
 Lacon Herald, 1837-1840, Lacon, Illinois. 
 
 Morgan Journal, 1847-1854, Jacksonville, Illinois. 
 
 Niles National Register, volume VI and L, Baltimore, 1814, 1836. 
 
 Ninawah Gazette, 1840-1841, Peru, Illinois. 
 
 Ottawa Free Trader, 1847, Ottaw^a, Illinois. 
 
 Peoria Register, 1842-1845, Peoria, Illinois. 
 
 Peoria Register and Northwestern Gazette, 1837-1842, Peoria, Illinois. 
 It became the Peoria Register in 1842. 
 
 Quincy Herald, 1848, Quincy, Illinois. 
 
 Quincy Whig, 1836- 1 848, Quincy, Illinois. 
 
 St. Clair Banner, 1844, Belleville, Illinois, 
 
 Sangamo Journal, 1 832- 1 847, Springfield, Illinois. It became the Illinois 
 Journal in 1847. 
 
 Sangamon Journal, 1831-1832, Springfield, Illinois. Its name was 
 changed to Sangamo Journal in 1832. 
 
 Sangamo Spectator, 1827- 1828, Springfield, Illinois. 
 
 Sparta Democrat, 1840, Sparta, Illinois. 
 
 The Times, 1839- 1843, London, England. 
 
 Vandalia Free Press and Illinois JVhig, 1 839- 184 1, Vandalia, Illinois. 
 
 Virniillion County Press, 1857, Danville, Illinois.
 
 BIBLIOGRAPHY 233 
 
 IV 
 CONTEMPORARY ACCOUNTS 
 Birkbeck, Morris, Letters from Illinois, London, 18 18. 
 Birkbeck, Morris, Notes on a Journey in America, from the Coast of 
 Virginia to the Territory of Illinois, London, 18 18. 
 
 Canal Scrip Fraud, Minutes of the Proceedings of the Sangamon Coun- 
 ty, Illinois, Grand Jury in the Investigation of the Case, Springfield, 
 1859. 
 
 Circular of the Illinois Commissioners to the Holders of Illinois Stock, 
 May 2S, 1843, New York, 1843. 
 
 Cole, Arthur Charles, editor. The Constitutional Debates of 1847 {Col- 
 lections of the Illinois State Historical Library, volume XIV, con- 
 stitutional series, volume II), Springfield, 19 19. 
 
 Duncan, Joseph, Scrapbook of Joseph Duncan, fifth governor of Illinois. 
 Contains newspaper clippings, extracts from state documents, and 
 manuscript notes. ^/' iJy/A 
 
 Edwards, Ninian, The Edwards Papers: Being a portion of the Letters, 
 Papers, and Manuscripts of Ninian Edwards, edited by E. B. 
 Washburne (Chicago Historical Society's Collection, volume III), 
 Chicago, 1884. Cited as Edwards Papers. 
 
 Ford, Thomas, A History of Illinois from its Commencement as a State 
 in 18 18 to 1847, Chicago, 1854. 
 
 Gerhard, Frederick, Illinois as it is, Chicago, 1857. 
 
 Governors' Letter-Books 1818-1834, edited by Evarts B. Greene and 
 Clarence W. Alvord {Collections of the Illinois State Historical 
 Library, volume IV, executive series, volume I), Springfield, 1909. 
 
 Governors' Letter-Books 1840-1853, edited by Evarts B. Greene and 
 Charles M. Thompson {Collection of the Illinois State Historical 
 Library, volume VII, executive series, volume II), Springfield, 
 1911. 
 
 Henshaw, David, Letters on the Internal Improvement and Commerce 
 of the West, Boston, 1839. 
 
 Illinois State Lottery, i83g, drawing of the Illinois State lottery author- 
 ized by the legislature to raise funds for the purpose of draining the 
 ponds and lakes in the American Bottom, Alton, 1839. 
 
 Oliver, William, Eight Months in Illinois, with Information to Immi- 
 grants, edited by Walter M. Hill, Chicago, 1924.
 
 234 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Pease, Theodore Calvin, and James G. Randall, editors. The Diary of 
 Orville Hickman Browning, volume I, 1 850- 1 864 {Collections of 
 the Illinois State Historical Library, volume XX, Lincoln series, 
 volume II), Springfield, 1925. Cited as Browning Diary. 
 
 Reynolds, John, My Own Times, Embracing also a History of my Life, 
 Belleville, 1855. 
 
 BIOGRAPHY AND REMINISCENCE 
 
 Edwards, Ninian, History of Illinois from iyj8 to 1833; and Life and 
 Times of Ninian Edwards, Springfield, 1870. 
 
 Hamilton, H. E., Biographical Sketch of Gurdon Saltonstaff Hubbard, 
 Chicago, 1908. 
 
 Palmer, John M., Personal Recollections of John Ai. Palmer, Cincin- 
 nati, 1 90 1, 
 
 Putnam, Elizabeth Duncan, The Life and Services of Joseph Duncan, 
 Governor of Illinois, 1834-1838 (Reprinted from Illinois State 
 Historical Society Transactions), Springfield, 1921, 
 
 Snyder, John F., Adatn W . Snyder and his Period in Illinois History, 
 1870-1842, Virginia, Illinois, 1806. 
 
 Wentworth, John, Congressional Reminiscences: Adams, Benton, Cal- 
 houn, Clay, and Webster {Fergus Historical Series, number 2), 
 Chicago, 1882. 
 
 VI 
 
 ARTICLES IN LEARNED PUBLICATIONS 
 
 Boyland, Josephine, "Illinois Highways, 1700- 1848, Roads, Rivers, Fer- 
 ries, Canals," Illinois State Historical Society, Journal, 1933, vol- 
 ume XXVI, numbers i and 2. 
 
 Callender, G. S., "The early transportation and banking enterprises in 
 relation to the growth of the corporations," Quarterly Journal of 
 Economics, volume XVII. 
 
 Fairlie, John A., "The New York Canals," Quarterly Journal of 
 Economics, volume XIV. 
 
 Lee, Judson Fiske, "Transportation. A Factor in the Development of 
 Northern Illinois Previous to i860," Illinois State Historical Soci- 
 ety, Journal, volume X.
 
 BIBLIOGRAPHY 235 
 
 Stuve, Bernard, "The state internal improvement venture of 1837- 
 1838," Illinois State Historical Society, Transactions, volume VII, 
 1902. 
 
 VII 
 
 MONOGRAPHS AND SPECIAL WORKS 
 
 Ackerman, William K., Early Illinois Railroads {Fergus Historical 
 Series, number 23), Chicago, 1884. 
 
 Anderson, Alexander D., The Mississippi and its Forty-four Navigable 
 Tributaries, Washington, 1890. 
 
 Andreas, A. T., History of Chicago, volume I, Chicago, 1885. 
 
 Baringer, William E., Lincoln's Vandalia, A Pioneer Portrait, New 
 Brunswick, New Jersey, 1949. 
 
 Bogart, Ernest Ludlow, Internal Improvements and the State Debt in 
 Ohio; an Essay in Economic History, New York, 1924. 
 
 Boggess, Arthur C, The Settlement of Illinois, 1778-1830 (Chicago 
 Historical Society's Collection, volume V), Chicago, 1908. 
 
 Buck, Solon J., Illinois in 18 18 {Centennial History of Illinois, intro- 
 ductory volume), Springfield, 191 7. 
 
 Conger, John Leonard, editor, History of the Illinois River Valley, vol- 
 ume I, Chicago, 1932. 
 
 Dowrie, George W., The Development of Banking in Illinois 1817-1863 
 {University of Illinois Studies in the Social Sciences, volume XI, 
 number 12), Urbana, 1913. 
 
 Gates, Paul Wallace, The Illinois Central Railroad and Its Colonization 
 Work {Harvard Economic Studies, volume XIII), Cambridge, 
 Massachusetts, 1934. 
 
 Hulbert, Archer Butler, Waterways of Westward Expansion, the Ohio 
 River and its Tributaries {Historic Highways of America, volume 
 IX), Cleveland, 1903. 
 
 Mason, Edward G., editor, Early Chicago and Illinois (Chicago His- 
 torical Society's Collection, volume IX), Chicago, 1890. 
 
 Pease, Theodore Calvin, The Frontier State, 18 18-1848 {Centennial 
 History of Illinois, volume II), Springfield, 1918. 
 
 Pooley, William V., The Settlement of Illinois, 1830-1850 (Reprinted 
 from Bulletin of University of Wisconsin, history series, volume I), 
 Madison, 1908.
 
 236 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Putnam, James W., The Illinois and Alichigan Canal, A Study in 
 Economic History (Chicago Historical Society's Collection, volume 
 X), Chicago, 1 910. 
 
 Thompson, Charles Manfred, A Study of the Administration of Thomas 
 Ford, Governor of Illinois, 1842-1846 (Reprinted from Illinois 
 Historical Collections, volume XIII), Springfield, 1912. 
 
 Wentworth, John, Early Chicago {Fergus Historical Series, number 7 
 and 8), Chicago, 1878. 
 
 Young, J. S., A Political and Constitutional Study of the Cumberland 
 Road, Chicago, 1904. 
 
 VIII 
 
 GENERAL ACCOUNTS 
 
 Bancroft, Horace H., Illinois, Springfield, 191 8. 
 
 Blanchard, Rufus, History of Illinois, Chicago, 1883. 
 
 Brown, Henry, The History of Illinois from its First Discovery and 
 Settlement to the Present Time, New York, 1844. 
 
 Brown, William H., Early History of Illinois {Fergus Historical Series, 
 number 14), Chicago, 1852. 
 
 Carpenter, William H. and T. S. Arthur, The History of Illinois from 
 its Earliest Settlement to the Present Time, Philadelphia, 1854. 
 
 Church, Harry Victor, Illinois: History, Geography, Government, Bos- 
 ton, 1925. 
 
 Davidson, Alexander, and Bernard Stuve, A Complete History of Illinois 
 from 1673 to 1874, Springfield, 1884. 
 
 Mather, Irwin F., The Making of Illinois: A History of the State from 
 the Earliest Records to the Present Time, Chicago, 191 7. 
 
 Moses, John, Illinois, Historical and Statistical, Comprising the Essen- 
 tial Facts of Its Planting and Growth as a Province, County, Ter- 
 ritory and State, 2 volumes, Chicago, 1889- 1892. 
 
 Parrish, Randall, Historic Illinois, Chicago, 1905. 
 
 Robinson, L. E., History of Illinois, New York, 1909.
 
 INDEX 
 
 Adams, James: candidate for governor, 
 
 54- 
 
 Adams county: meetings in, 51, 54, 63, 
 157 ; politics of, 188. 
 
 Albion (111.) : 81. 
 
 Albion and Grayville Railroad Co.: 
 154, 155 n. 
 
 Aldrich, Mark: 66. 
 
 Alexander, Milton K.: elected commis- 
 sioner, 79, 99; receives bids, 84; 
 memorialized, 88. 
 
 Alexander, Samuel: 28. 
 
 Alexander county: river improvements, 
 13, 16; railroad to, 91. 
 
 Allegheny mountains: 10. 
 
 Allegheny river: 49. 
 
 Allison Turnpike Co.: 24. 
 
 Alton (111.): roads to, 16, 21, 24; atti- 
 tude on canal, 32 n. ; railroads to, 52, 
 53-55, 57. 63-64,67 n., 70, 81, 87; as 
 rival of St. Louis, 59-60, 74; politics 
 in, 73-74; bank at, 127. 
 
 Alton and Mount Carmel Railroad: 
 contract for, 81, 88, loi ; expendi- 
 tures for, loi, 130; in politics, 162; 
 land for, 207 n. 
 
 Alton and Shawneetown Railroad: 59, 
 80; contract for, 81; expenditures 
 for, 101, 130; in politics, 162; land 
 for, 207 n. 
 
 Alton and Shelbyville Railroad : branch 
 of, 86 ; expenditures for, loi ; land 
 for, 207 n. 
 
 Alton and Springfield Railroad: 87 
 
 Alton, Jacksonville and Galena Turn- 
 pike Co.: 24. 
 
 Alton Spectator: on canals, 53 ; on rail- 
 roads, 54; in politics, 151. 
 
 Alton Telegraph: on misconduct 
 charges, 98; on debt, 171-172 ; on 
 canal loan, 182, 183; on sale of rail- 
 road timber, 201. 
 
 Alton, Wabash, and Erie Railroad: 59. 
 
 America (111.) : 21, 23. 
 
 American Bottom: road through, 16; 
 railroad across, 51 ; improvements 
 at, 81, 83, 84. 
 American Exchange Bank of New 
 
 York: 183, 186. 
 Anderson, Stinson H.: 164. 
 Annapolis (Md.) : 50 n. 
 Apple creek: 14. 
 Appropriations: for improvement study, 
 
 12; for river improvement, 15, 68; 
 for railroads, 68; for internal im- 
 provements, 70; for counties, 70, 73; 
 for public works, 86. 
 
 Archer, William B.: 41, 41 n. 
 
 Athens (111.) : 85. 
 
 Atlantic Bank of New York: 131, 147. 
 
 Baker, David J.: 92. 
 
 Baltimore (Md.) : canal to, 50 n. ; men- 
 tioned, 10, 92. 
 
 Baltimore and Ohio Railroad: 50 n. 
 
 Bangs, A. H. : 147. 
 
 Bank of Commerce of Buffalo: 131, 
 147. 
 
 Bank of England: 135. 
 
 Bank of Illinois: stock increased, 127; 
 directors, 127; buys bonds, 129, 139- 
 140; state funds in, 130 n. ; loan 
 from, 142; debt to, 178 n. ; separa- 
 tion from state, 178-179; liquidation 
 of, 179. 
 
 Bank of the U. S.: See United States 
 Bank. 
 
 Banks, Anson: 117. 
 
 Banks: state, 47, 127-148; in New York 
 City, 114; in Philadelphia, 114; in 
 Illinois, 116; capital stock, 127-128; 
 in politics, 168, 173; separation from 
 state proposed, 173, 178-179; super- 
 vision of, 179; legislation on, 179; 
 surrender bonds, 179; failures of, 
 199. See also names of individual 
 banks. 
 
 Baring Brothers: 183, 185. 
 
 Barlow, L. N.: 190 n. 
 
 Barnett, George: 122. 
 
 Barrett, Richard F.: letter to Carlin, 
 131 n. ; fund commissioner, 135, 166; 
 cancels iron shipment, 137; sued, 
 137 n. ; refuses Delafield offer, 141; 
 bond sales by, 143-144. 
 
 Bartlett, Edwin: 190 n. 
 
 Battle Axe: 171. 
 
 Baxter, William D.: 108, 203. 
 
 Beall, Josiah: 100. 
 
 Beardstown (111.) : 15, 53. 
 
 Beardstown and Sangamon canal: 87. 
 
 Beardstoivn Chronicle: 52. 
 
 Beaumont, G. A. O.: 165-166. 
 
 Beckwith, Daniel W. : 12. 
 
 Belleville (111.): road to, 16; meeting 
 at, 32 ; railroad to, 59.
 
 238 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Belleville Advocate: 170. 
 
 Belleville and Lebanon Railroad: loi. 
 
 Belleville and Mississippi Railroad: 59. 
 
 Bentley, Richard: 69, 171. 
 
 Biddie, Nicholas: 129, 147. 
 
 Big Bay creek: 13. 
 
 Big creek: 13 n. 
 
 Big Muddy river: means of communi- 
 cation, 10; improvement funds, 13 n., 
 70, 86. 
 
 Birkbeck, Morris: 11. 
 
 Bissell, Gov. William H.: 190 n. 
 
 Blackwell, Robert: 163. 
 
 Blaine, Tompkins, and Barret: 137- 
 
 Blake, Thomas H.: 84. 
 
 Bloomington (111.): meeting at, 54; 
 railroad to, 67 n., 70, 87, 88. 
 
 Bloomington and Mackinaw Railroad: 
 loi, 130 n. 
 
 Blue Ridge mountains: 10. 
 
 Boats: See Flatboats, Keelboats, Steam- 
 boats. 
 
 Bond, Benjamin: 58. 
 
 Bond, Shadrach: as commissioner, 14. 
 29; as governor, 28; founder of 
 Cairo, 92. 
 
 Bond county: receives funds, 14, 25; 
 meeting in, 156, 171; politics of, 
 164 n.; mentioned, 69, 186. 
 
 Bonding: of ferry operators, 25; of 
 canal contractors, 42, 46; of public 
 works commissioners, 77; for land 
 purchase, 95. 
 
 Bonds (state) : European market for, 
 39, 116-120, 122; sales of, 99, 115- 
 122, 128, 129-149, i66; used as pay- 
 ments, 100, 120-122, 2CXD, 201 ; for 
 canals, 113-123, 195-197; collateral 
 for, 114, 145; American market for, 
 116; investigation of sales of, 118, 
 133, 140-141 ; land price effect on 
 sales, 121; price of, 126, 133, 142, 
 145, 172, 183, 209; interest on, 142- 
 144, 182; marketing methods, 131- 
 132, 141-142; payments on, 142, 145; 
 hypothecation of, 143-145, 166-167, 
 170, 213; for interest payments, 167- 
 168, 211 : for state house, 178 n. ; ex- 
 change for bank stock, 179; disposi- 
 tion of unsold, 180; bought with land 
 sale proceeds, 206; counterfeiting of 
 coupons, 208; state purchase of, 210- 
 211 ; types of, 211-212; for Civil 
 War, 215. 
 Boom of 1836: psychology of, 46; 
 establishes Chicago, 47; land specu- 
 lation in, 48, 55 ; engenders improve- 
 ment system, 48; railroad chartering 
 in, 59 ; mentioned, 76. 
 
 Boorman and Johnson: bonds sold to, 
 
 129 ; debt to, 147. 
 Boston (Mass.): 184. 
 Bowman, Joseph G.: 163. 
 Bowman, Samuel M.: 98. 
 Bradshaw, John: 20. 
 Breese, Sidney: suggests railroad, 57; 
 
 Illinois and Michigan Canal, 62 ; in 
 
 early Cairo, 92 ; as senator, 208. 
 Bridges: at Bruetts and Sugar creeks, 
 
 13 n. ; toll, 24-25; over Cache river, 
 
 92, 93- 
 Bronson, Arthur: 181. 
 Brooks, Samuel S.: loi. 
 Brown, Erasmus: 28-29. 
 Brown, Judge Thomas C: 71-72. 
 Browning, Orville H.: to investigate 
 
 frauds, 94; minority reports of, 94- 
 
 97- 
 
 Brownsville (III.): road to, 20, 21; 
 meeting at, 164 n. 
 
 Bruetts creek: 13 n. 
 
 Bucklin, James: report on canals, 32, 
 41 ; report on railroads, 36, 103 ; 
 recommends heavy rails, 103. 
 
 Buffalo (N. Y.) : railroad from, pro- 
 jected, 51; banks of, 131; men- 
 tioned, 53. 
 
 Bureau county: 169 n. 
 
 Burnett, Ward B.: 124. 
 
 Butler, Peter: 154. 
 
 Butterfield, Justin: 181. 
 
 Cache river: obstructions in, 13; rail- 
 road to, 82 n. ; canal to, 93; bridge 
 over, 92, 93. 
 
 Cahokia (111.): 16, 21. 
 
 Cahokia creek: 86. 
 
 Cairo (111.) : 57; railroad to, 81, 82 n., 
 87, 92-94; advantageous location, 
 93; origin and charter, 93; English 
 interest in, 132 n. ; land in, 205. 
 
 Cairo City and Canal Company: 93, 
 132 n. 
 
 Caledonia (III.) : 87. 
 
 Caledonia Railroad Company: 88. 
 
 Calhoun, John: railroad contractor, 81 ; 
 on investigation committee, 94; as 
 canal commissioner, 123. 
 
 Calhoun, John C. : as Sec'y of War, 27, 
 30; land legislation of, 166. 
 
 Calumet river: as canal feeder, 32, 45, 
 195. 
 
 Campbell, James B.: 34 n. 
 
 Campbell, Thomas H.: 205 n. 
 
 Canals: at Wabash river, 11; report 
 to Congress on, 27; financing of, 29- 
 31. 34. 38-40, 41, 43-46, 1 10-124; 
 legislation on, 29, 31, 32, 33-34, 37-38. 
 40, 45-46, 67 n.; costs of, 29, 32, 36,
 
 INDEX 
 
 239 
 
 40, 45, 87, 156; lands for, 28, 30, 
 114; tolls, 29; dimensions, 29, 31, 41, 
 42; commissioners, 28, 31, 34, 38, 40, 
 41-43; as railroad rivals, 33-34, 37, 
 62; construction material, 43; in 
 Penna., 49-50; in New York, 49, 75; 
 in Ohio, 50; at Rock river, 84; in 
 Sangamon county, 87; at Cairo, 93; 
 canal bonds for Northern Cross Rail- 
 road, 105-106; debt for, 178 n. 
 
 Canton (111.) : 163. 
 
 Carlin, Gov. Thomas: appoints loan 
 agents, 114; attitude on bond sales, 
 115, 118, 119, 122, 135; requests 
 bank loan, 139; convenes legislature, 
 142, 158-159; favors state owner- 
 ship, 152, 153; elected, 152; favors 
 improvements system, 153-154; on 
 state finances, 159-160; opinions on 
 debt, 166, 177-178; message of, 166, 
 177; favors canal completion, 170; 
 bonds sold by, 196; mentioned, 100, 
 118, 131 n., 132 n. 
 
 CarlinviUe (111.) : 55, 86. 
 
 Carlyle (111.): on Goshen Road, 16; 
 on National Road, 22 ; railroad to, 
 
 59- _ 
 
 Carmi (III.): road to, 17, 21; mill at, 
 201-202, 205 ; locks and dams at, 202. 
 
 Carpenter, Milton: 162. 
 
 Carrolton (111.) : 21, 52. 
 
 Caruthers, G. W. : 79. 
 
 Cass county: 163. 
 
 Caton, Judge John D. : 191. 
 
 Central Branch -Wabash Railroad: 
 chartered, 59; branch proposed, 70; 
 appropriation for, 68 ; contract for, 
 82; Indiana connection, 85; expendi- 
 tures on, loi, 130. 
 
 Central Internal Improvement Office: 
 
 79- 
 
 Central Railroad: surveys, 80; cost of, 
 82 ; construction delayed, 89 ; ter- 
 minus of, 91, 93 ; contract, 82 ; ex- 
 penditures on, loi, 130; in politics, 
 150, 157, 162, 164 n. ; lands for, 207. 
 
 Central Railroad (of Mich.) : 200. 
 
 Champlain canal: 75. 
 
 Champaign countv: mentioned, 163. 
 
 Charleston (111.) : 86. 
 
 Charleston and Wabash Turnpike: 
 
 lOI. 
 
 Chesapeake and Ohio Canal: 50 n. 
 
 Chester (111.) : 70. 
 
 Chicago (111.) ; roads to, 22-24; town 
 laid out, 31 ; prices of lots, 31 n., 
 184; meeting at, 34, 36; harbor at, 
 35-36, 192-193; canal from, 36, 43; 
 land sales at, 44; boom in, 47-48; 
 railroad to, 56, 63; bank at, iio, 
 
 197-198; first canal boat to, 194; as 
 trade center, 194-195 ; growth of, 
 195; land district, 201, 207 n. ; men- 
 tioned, 41. 
 
 Chicago American: on improvement 
 system, 157-158; on politics, 166; on 
 debt, 171, 173. 
 
 Chicago and Vincennes Railroad: 56. 
 
 Chicago Democrat: on canal project, 
 36, 49, 53; in politics, 38, 125, 159, 
 175; on railroads, 64; on improve- 
 ment system, 152. 
 
 Chicago river: as part of Illinois and 
 Michigan Canal, 26, 32, 112. 
 
 Chicago Tribune: 166. 
 
 Chicago-Vincennes road: 70. 
 
 Churches: 114. 
 
 Churchill, Joseph W. : 163. 
 
 Cincinnati (Ohio) : terminus of land 
 route, 10; canal to, 50; iron seized 
 at, 200. 
 
 Civil War: 215. 
 
 Clark county: mentioned, 41, 154, 161. 
 
 Clay, Henry: 185. 
 
 Clav county: 163. 
 
 Clayton (111.): 63. 
 
 Cleveland (Ohio) : 50. 
 
 Clinton county: receives funds, 14, 
 25 n. ; railroads to, 82 n. 
 
 Cloud, Newton: canal commissioner, 
 125. 
 
 Coal: mines, 57, 207; as freight, 88. 
 
 Coles, Gov. Edward: on cooperation 
 with Indiana, 14; suggests canal 
 plan, 29; canal commissioner, 38; 
 negotiates canal loan, 38-39. 
 
 Coles county: i6r. 
 
 Collins, Charles: as railroad contrac- 
 tor, 80, 96 ; rides first train, 104. 
 
 Columbia (111.) : 21. 
 
 Columbus (111.) : 81. 
 
 Comegys, John: 92. 
 
 Commerce: See Economics. 
 
 Commercial Bank of Buffalo: 131, 147. 
 
 Commissioners: improvement boards, 
 12, 14; boards dissolved, 14, 34, 164; 
 duties of, 17, 19, 31, 126-127; wages, 
 20, 23, 40, 126; for canals, 31-33, 34, 
 38, 40-41, 46, 123-125 ; for railroads, 
 51; of improvement funds, 71, 180; 
 pressure on, 88; in politics, 162. See 
 also Public works commissioners. 
 
 Communications: 9-1 1. 
 
 Congress: memorials to, 12, 14, 16, 30, 
 33> 51. 58, 138-139; requests for road 
 aid, 23-24; canal reports to, 27; land 
 grants, 28, 30-31, 67, 193-194; Illi- 
 nois delegate to, 29, 193 ; Chicago 
 harbor appropriation, 35-36, 192 ;
 
 240 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 land legislation, 138-139, 166, 193- 
 
 194- 
 
 Contracts: for bridges and causeways, 
 18; for canals, 43, 111-113, 122, 189; 
 for public works, 77-78, 82 n., 100; 
 for railroads, 80-83, 88-89, 102; bids 
 rejected, 81; forfeited, 81, 83, iii; 
 let out of state, 82; let during 1837, 
 82 n.; provisions of, 83, 86; investi- 
 gations of, 97-99 ; issuance suspend- 
 ed, 99; payments on, 100, 121-122, 
 139, 142; subletting of, in; for 
 bonds, 130-146; for locks and dams, 
 202. 
 
 Cook, Daniel P.: 29-30. 
 
 Cook county: meeting of residents, 34; 
 politics of, 165, 169; mentioned, 41, 
 162. 
 
 Copeland, James: 92. 
 
 Corruption in improvement system: 
 
 94-99- 
 
 Counties: bear road costs, 23; appro- 
 priations for unimproved, 70, 72-73, 
 83-84, 130, 156. 
 
 Covington (111.)'- 21, 56. 
 
 Craig, James: 162. 
 
 Crain, John : 162. 
 
 Crawford county: 21, 157. 
 
 Cumberland road: 192. 
 
 Cuyahoga river: 50. 
 
 Dams: on Wabash river, 84; cost of 
 sites, loi n. ; at Carmi, 202. 
 
 Danville (III.) : railroad to, 53, 56, 63, 
 81, 85; meeting at, 164 n. ; land dis- 
 trict, 201, 207 n. 
 
 Davidson, William H.: 134; legisla- 
 tive proposals, 134, 160-161, 164. 
 
 Davis, John: examines canal, 184; in 
 London, 185. 
 
 Davis, Levi: 129 n. 
 
 Dawson, John: 162. 
 
 Dayton (Ohio) : 50. 
 
 Debt and interest: problem of pay- 
 ments, 102 n., 142 ; methods of fund- 
 ing, 143-145, 166-168, 201-215; de- 
 fault on interest, 146, 172, 185; debt 
 itemized, 146-149; taxing for, 155, 
 166, 180; amount of debt, 159-160, 
 174, 177-178, 207; in politics, 165, 
 171-176; bonds for, 168; repudiation 
 of, 171, 216; compared with other 
 states, 172, 216; in Mississippi, 172; 
 Gov. Duncan's plan for, 173; able 
 report on, 174-175; urgency of, 177; 
 legislative action on, 178-180; re- 
 duction of, 179-180; of Illinois and 
 Michigan Canal, 184, 195-196, 198- 
 199; Gov. Ford's views on, 178, 186; 
 liquidation of, 200-218; registration 
 
 and refunding, 207-208 ; types of, 
 211-212; paid off, 215. 
 
 Decatur (III.): railroad to, 53-54, 64; 
 meeting at, 54; lots in, 205. 
 
 Delafield, John: New York banker, 
 115; buys bonds, 131, 140-142, 147, 
 195; contract questioned, 133-134; 
 gives notes, 140; sued, 141. 
 
 Dement, Isaac: 81-102. 
 
 Dement, John: state treasurer, 34. 
 
 Democrats: newspapers, 98; as com- 
 missioners, 99, 125 ; criticize Reyn- 
 olds' appointment, 114 n. ; charge 
 canal mismanagement, 124-125; 1838 
 electioneering, 152; state convention, 
 152; attitude on improvement sys- 
 tem, 74, 152, 164-165, 174; opinions 
 of Gov. Carlin, 159-160; blamed for 
 debt, 165; county meetings, 164 n. ; 
 in Cook county, 165-166; critics 
 of legislation, 169; antirepudiation 
 plank, 171 ; divided on Chicago har- 
 bor issue, 192-193; mentioned, 40, 74, 
 185, 212. 
 
 Des Moines rapids: 86. 
 
 Des Plaines river: on Illinois and 
 Michigan Canal, 26, 32 ; locks and 
 dams in, 45. 
 
 Des Plaines valley: 43. 
 
 Dewey, Egbert: 97. 
 
 District of Columbia: 50 n. 
 
 Dixon, John: 98-99. 
 
 Dixon (111.) : contract let at, 84; meet- 
 ing at, 164 n. ; land district, 201, 
 207 n. 
 
 Douglas, Stephen A.: 66. 
 
 Doza, Alexis: 20. 
 
 Dresden (111.): 112, 122. 
 
 Drydocks: 93. 
 
 Duff, John: 106. 
 
 Duncan, Gov. Joseph: introduces land 
 bill, 24; favors improvements, 36- 
 37, 62, 65-66, 75 ; appoints canal 
 board, 41 ; secures funds, 43 ; sells 
 land in Meredosia, 95 ; rides first 
 train, 104; calls special session, in; 
 opponent of improvement system, 
 151, 153; blamed for debt, 175; 
 political views, 175-176; mentioned, 
 29. 39, 71, 112, 114 n. 
 
 Dunlap, James: railroad contractor, 
 80; rides first train, 104; buys bonds, 
 131; debt to, 147; as bank agent, 
 179. 
 
 Dunlap, Thomas: United States Bank 
 president, 115. 
 
 Dunn, Charles: 31. 
 
 Du Page county: 169 n. 
 
 Durbin, E. J.: 201. 
 
 Dutcher, Frederick R. : 98.
 
 INDEX 
 
 241 
 
 Early, J. M.: 81. 
 
 Eastern Shore Railroad: 50 n. 
 
 Eastham, Marvellous: 106. 
 
 Economics: access to markets, 9-10; 
 Illinois exports, 10; marketing of 
 products, 10, 49 ; importance of 
 rivers, 11; improvement funds, 12, 
 13 n., 25; auditor's reports, 15; trade 
 of Mississippi valley, 26; of canals, 
 26-27, 110-125, 194-195; monopolies, 
 29-30, 74; cost of transportation, 
 32 n. ; costs of canals versus rail- 
 roads, 33; speculation in 1836, 46-49, 
 55, 71 ; boom period, 46-49, 55, 59, 
 76; credit, 47, 99, no, 149, 171; of 
 Erie canal, 49 ; railroad transporta- 
 tion, 55, 105-109; railroad capital- 
 ization, 58-59; state control of rail- 
 roads, 58, 61-62; railroad charters, 
 58-59; state ownership of internal 
 improvements, 61-62, 67, 75; of in- 
 ternal improvements, 68 ; depression 
 period, 75, 149; bidding and con- 
 tracts, 77-78, 82-83; private enter- 
 prise competition, 86-88 ; railroad 
 stock sales, 88 ; scrip issuance, 100, 
 102; tariff on iron, 103 n. ; rental of 
 railroad, 107-109; Panic of 1837, 
 no, 151; deflation, 122; psychology 
 of economic conditions, 158; finan- 
 cial confusion, 171-172; property 
 values increase in Illinois, 217. See 
 also Appropriations, Bonding, Fi- 
 nancing, Labor, Money, and Scrip. 
 
 Edgar county: roads in, 13 n. ; meeting 
 in, 157; mentioned, 21, 154 n., 162. 
 
 Edwards, Cyrus: offers improvements 
 plan, 63, 66-67; Whig candidate, 
 152; proposes tax rate, 209; men- 
 tioned, 58 n. 
 
 Edwards, Gov. Ninian: 27, 31. 
 
 Edwards county: 88. 
 
 Edwardsville (111.): road to, 16; rail- 
 road to, 59, 63, 81, 82 n., loi. 
 
 Edivardsville Spectator: 30. 
 
 Effingham county: 163. 
 
 Elliott's (111.): 21. 
 
 Embarrass river: as means of com- 
 munication, 10; improvement funds, 
 70, 86 ; railroad to, 82 n. ; expendi- 
 tures on, loi ; mentioned, 16. 
 
 Emerson, Reuben: 202. 
 
 Emery, Sewell and Moore (solicitors) : 
 136. 
 
 English, Revill W. : 73. 
 
 English settlement: 17. 
 
 Equality (111.): railroad to, 59, 63, 81; 
 railroad buildings at, loi n. ; land 
 in, 205. 
 
 Erie (111.): 86. 
 
 Erie Canal: route to West, 22; com- 
 pared with Illinois problems, 49; 
 tolls from, 75; effect on Illinois, 150. 
 
 Erie County Bank of Bufltalo: 131, 147. 
 
 Eugene (111.) : 56. 
 
 Europe: funds for Illinois improve- 
 ments, 35, 38-39, 93 ; market for 
 canal bonds, 116-120, 122, 132, 133, 
 135-138, 155, 183-188, 189; iron 
 from, 130, 132, 136-139; effect of 
 American politics, 185; internal im- 
 provement bonds sold, 147-148; canal 
 bonds sold, 195-196. 
 
 Evans' (111.) : 21. 
 
 Ewing, William Lee D.: as improve- 
 ments commissioner, 14; message to 
 legislature, 54; railroad interest, 58; 
 as state auditor, 201, 204-205. 
 
 Experiment (locomotive) : 104. 
 
 Fairfield (111.): 21, 82 n. 
 
 Fairy (steamboat) : 11 n. 
 
 Farm products: as railroad freight, 55, 
 107; carried by canal, 194. 
 
 Farmers: on frontier, 10; need of 
 transportation, 48 ; views on im- 
 provements, 74. 
 
 Farmers' and Mechanics' Bank of 
 Onondaga: 117, 131. 
 
 Fayette county: funds for, 14, 25 n. ; 
 road to, 21; meeting at, 57 n., 89; 
 mentioned, 58, 163. 
 
 Federal government: refuses road aid, 
 23-24; opposes canals, 27; attitude 
 on internal improvements, 30; ex- 
 empt from tolls, 30; debt assumption 
 plan, 182; revenue officers seize iron, 
 200. 
 
 Fellows, Hart: appointed to board of 
 public works, 99, loc. 
 
 Ferries: 24-25. 
 
 Fever river: 91. 
 
 Ficklin, Orlando B.: 192. 
 
 Field, A. P.: 156. 
 
 Financing: lottery, 11-12, 84; of 
 roads, 13 n., 18-19, 23-24; tolls, 24- 
 25; of canals, 29-31, 34-35, 36-40, 41, 
 43-44, 110-123, 182-189; European 
 funds, 35, 39, 93 ; of land sales, 44, 
 114, 121; of improvements, 51, 61, 
 63-71, 72, 75-76, 99, 126-149; of rail- 
 roads, 56, 58, 68; of contractors, 83; 
 of public works, loi ; use of canal 
 bonds on railroads, 106; of Illinois 
 and Michigan Canal, 110-123, 182- 
 189, 195-196, 198-199; politics of 
 debt and interest, 171-176; state use 
 of federal funds, 178 n. ; of state 
 debt, 200-217. See also Banks, Bonds,
 
 242 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Debt, Economics, Foreign exchange, 
 Interest rates, Money, and Scrip. 
 
 Fines: 17-18, 78. 
 
 Fithian, William: 187. 
 
 Flatboats: on Ohio river, 10; built by 
 farmers, 10; on Kaskaskia river, 14; 
 trip in, by Lincoln, 52. 
 
 Floods: in Des Plaines valley, 43; of 
 Ohio river, 132 n. ; on Illinois and 
 Michigan Canal, 190. 
 
 Fogus, S. C: 97. 
 
 Ford, Gov. Thomas: quoted, 38; as 
 Democrat, 74; regarding Lincoln, 
 74; receives canal funds, 120; pol- 
 itics of, 175; election of, 176; views 
 on debt, 178, 186; favors taxation, 
 186; scrip issued, 195; sells iron, 
 200; handling of debt problem, 188- 
 189, 2i6; mentioned, 122 n., 182, 203. 
 
 Fording of streams: 24-25. 
 
 Ford's Ferry: 22, 70. 
 
 Foreign exchange rates: between Eng- 
 land and United States, 118, 132; 
 mentioned, 115-116, 119. 
 
 Forquer, George: on river improve- 
 ment, 15; proposes canal plan, 36; 
 favors improvement projects, 53-54. 
 62. 
 
 Foundries: 93. 
 
 Fox river: as canal feeder, 112, 195; 
 mentioned, 32. 
 
 Frankfort (111.) : 59. 92- 
 
 Franklin county: 64. 
 
 Fraud: in public works, 94-98; in 
 canal bonds and scrip, 197-198. 
 
 Frederick's Point: 91. 
 
 Freight rates: state control of, 58, 60; 
 mentioned, 200. 
 
 Fremont (III.) : 82. 
 
 French, Gov. Augustus C: fraud in- 
 vestigator, 94; complaints to, 190; 
 investigation by, 191 ; scrip issued, 
 195; recommends mill sale, 202; debt 
 refunding plan, 207; mentioned, 
 141 n., 154 n., 195, 203, 205, 207 n. 
 French regime in Illinois: 26. 
 Fry, Jacob: as canal commissioner, 46, 
 123, 125; as canal trustee, 189; in 
 politics, 191 ; discovers scrip fraud, 
 198. 
 Fulton county: 163. 
 
 Galena (111) : road to, 22, 24; railroad 
 
 to, 59, 81, 91; mentioned, 31. 
 Galena and Chicago Union Railroad: 
 
 59- 
 
 Galen'ian: 35, 48. 
 
 Gallatin county: delegates at improve- 
 ment convention, 64; mentioned, 62, 
 75, 154, 162, 187. 
 
 Gallatin saline: 21, 207. 
 
 Gallipolis Bank: 148. 
 
 Gatewood, E. H.: sells state New 
 Haven mill, 202. 
 
 Gatewood, William J.: favors canal, 
 62; fraud investigator, 94, 98; opin- 
 ions on improvement system, 154, 
 162; debt retirement plan, 174; 
 mentioned, 130 n., 132 n., 138, 140 n. 
 
 Georgetown (111.) : 56. 
 
 Gilbert, Miles A.: 92. 
 
 Gilbraith, Smith: 98. 
 
 Golconda (111.) : road funds for, 13 n. ; 
 road to, 16, 20, 21. 
 
 Gooding, William: canal engineer, 41; 
 makes estimates, 45, 181; reports of, 
 111-112, 122; salary, 124; incom- 
 petence charged, 191. 
 
 Goshen Road : 16. 
 
 Graham, Richard: 27. 
 
 Grand Rapids of the Wabash: 11. 
 
 Great Lakes: transportation by, 22, 49, 
 150, 200. 
 
 Great Western Mail Route: improve- 
 ment of, 67 n. ; funds for, 68, 70 n., 
 79, 86; surveys, 80; contract, 80, 
 82 n., 83; route change, 97; expendi- 
 tures on, loi, 130 n. ; in politics, 162, 
 163. 
 
 Green, John C: 190 n. 
 
 Greene county: road funds for, 13 n. ; 
 mentioned, 52, 68. 
 
 Greenup, Col. William C: 84. 
 
 Greenville (111.) : 164 n. 
 
 Grundy county: 125 n. 
 
 Hacker, John S.: railroad proposal, 
 58; fraud investigator, 94; favors 
 curtailment, 161. 
 
 Hall, James: 20. 
 
 Hall and Hudson: 129, 147. 
 
 Hamblin, John: 98. 
 
 Hamilton, William S.: 29. 
 
 Hamilton county: 70, 162. 
 
 Hancock county: meeting in, 156; pol- 
 itics of, 188; mentioned, 66. 
 
 Hardin, John J.: fraud investigator, 
 94; minority report, 94, 96; men- 
 tioned, 154 n., 163 n. 
 
 Harmony (Ind.):2i. 
 
 Harris, John: 73. 
 
 Harrison, George W.: 98. 
 
 Hathaway's (111.) : 21. 
 
 Havana (111.) : 70. 
 
 Henderson, William H.: 174. 
 
 Hennepin (111.): 87. 
 
 Henry, John: road commissioner, 20; 
 railroad agent, 106; mentioned, 
 154 n. 
 
 Henry county: 160.
 
 INDEX 
 
 243 
 
 Hillsboro (111.): railroad to, 71 n., 86; 
 
 meeting at, 156. 
 Hise, John: 125 n. 
 Hogan, John: view of improvements 
 
 system, 76; as commissioner, 99, 100. 
 Holbrook, D. B.: 92-93. 
 Hollidaysburg (Penna.) : 49. 
 Horse railway: 49, 88. 
 Rowland and Aspinwall: 138. 
 Hubbard, Col. Gurdon S.: 41, 52. 
 Hudson, J. T.: 55. 
 Hudson creek: 13 n. 
 
 Illinois: early transportation in, 9-25; 
 legislation and funds for rivers and 
 roads, 11-25; seat of state govern- 
 ment, 20, 53, 72-74; settlement lags 
 in north, 22; politics in southern, 58, 
 69-70, 89, 150, 181, 188; historians' 
 views on politics, 72-74; public 
 works districts, 79; debt of, 142-143, 
 146-149, 155, 159-160, 165-167, 171- 
 176, 177-180; state revenue, 144, 
 216-217; default on interest pay- 
 ments, 146, 172; politics in lead min- 
 ing region, 150; politics in central, 
 150; revenue of, 144, 160, 216-217; 
 politics in northern counties, 169, 
 181; population of, 172 n. ; state 
 house, 178 n., 187; governmental 
 economy, 178 ; liquidation of debt, 
 200-217; constitutional convention, 
 207-208 ; property values increase, 
 217. 
 
 Illinois Advocate: 57. 
 
 Illinois and Michigan Canal: land for, 
 15. 29, 30-31, 38, 39, 41, 44, 113, 193; 
 question considered, 15 n., 26; ter- 
 minus, 22, 45 ; route of French por- 
 tage, 26; early interest in and plans 
 for, 27; financing of, 27-31, 34-35, 
 38-39, 41, 43-46, 110-124, 148-149, 
 168, 173, 181-189; legislation on, 29- 
 31, 32, 34. 37-38, 39-40, 45-46, 113- 
 114, 168, 181-182; surveys for, 28, 
 33, 41, 45-46; documents on, 28 n. ; 
 private funds for, 29, 36; dimen- 
 sions, 29, 38, 41, 42, 178; effect on 
 South, 30; public attitude on, 32 n., 
 35-37, 158; engineering problems, 32, 
 45; versus railroad, 32-34, 36-37; 
 water for, 40, 195; divisions of, 42; 
 contracts for, 42-43, 122, 189; con- 
 struction progress, 42-43, 110-112, 
 116, 120, 122-123, 189-190, 194; pol- 
 itics of, 62-63, 150, 158, 164 n., 165- 
 166, 175-176 ; railroad to, 63, 67 n., 
 93; offices of, 112-113; payments for, 
 120-122; officials, 123-124, 189-191 ; 
 administration of, 123-125, 199; mis- 
 
 management charged, 124-125 ; com- 
 pletion recommended, 168-169, 175, 
 178; Whig opposition to, 175; debt 
 of, 178 n., 184, 195-197, 198-199; 
 legislation for completion, 180-182; 
 bond prices, 183; inspection of, 184; 
 valuation of, 184; earning capacity, 
 184 n. ; trustees, 189-192; completed, 
 194; first use of, 194; benefits of, 
 194-195; debt itemized, 195-196; 
 operating expenses, 197; methods of 
 funding debt, 198. 
 
 Illinois Central Railroad: financing, 62, 
 68, 70 n.; politics of, 63, 150, 162; 
 branch road, 70; contracts, 81, 82 n., 
 89; terminus, 87, 93; route of, 91-94; 
 expenditures for, 101, 130 n. 
 
 Illinois Central Railroad Company 
 (chartered 1836) : incorporated, 58- 
 59; rate control, 60; surrender of 
 charter, 80, 88, 93 ; attacked, 88. 
 
 Illinois Central Railroad Company 
 (chartered 1850): lands of, 205; 
 state revenue from, 211, 216. 
 
 Illinois College: 95. 
 
 Illinois Gazette: 175, 194. 
 
 Illinois Intelligencer: 29. 
 
 Illinois Journal: 191. 
 
 Illinois Patriot: 33. 
 
 Illinois river: communication medium, 
 10; navigability, 11, 32; obstruc- 
 tions, 16; road to, 21; canal from, 
 26-27; railroad to, 51, 55-56, 80, 81, 
 100-101 ; improvement of, 66, 67 n., 
 86 ; funds for improvement, 68, 70 n. ; 
 closed in dry weather, 87 ; expendi- 
 tures on, 101, 130 n. ; in politics, 162, 
 163; products of valley, 194. 
 
 Illinois State Register: on internal im- 
 provements, 50, 64; on misconduct 
 charges, 98; in politics, 125, 152, 157 
 174, 175; on canal financing, 171 
 on debt, 171, 173, 209; letter in, 186 
 on canal administration, 191. 
 
 Illinoisan : 98. 
 
 Illinoistown (111.) : road to, 20, 21 ; 
 railroad to, 88. 
 
 Immigrants: to Illinois, 9-10, 47; at- 
 tracted to Illinois, 9-10, 47, 50; to 
 northern Illinois, 150; fear taxation, 
 172. 
 
 Indiana: products of, 10; river im- 
 provement in, 12, 15; internal im- 
 provement plans, 50, 65, 76, 163 ; 
 bidders from, 82 ; requested to build 
 railroads, 85; taxes in, 172; default 
 on interest, 172; debt of, 172 n., 216; 
 mentioned, 21. 
 
 Indiana canal: 54-55. 
 
 Indians: 22, 27.
 
 244 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Interest rates: in England, 35, 132; in 
 United States, 38 ; in legislation, 40, 
 51 n., 114, 215; in Illinois, 43; in 
 New York, 43, 144; on state war- 
 rants, 121. See also Debt. 
 Internal improvement fund: commis- 
 sioners, 106, 126, 130, 134-135, 136; 
 loan to canal fund, 113-114; finan- 
 cing of, 126-130; disbursements from, 
 130; receipts for, 129-130; single 
 commissioner for, 134-135; men- 
 tioned, 105. 
 Internal improvement system: finan- 
 cing of, 62-71, 72-73, 75-76, 126-149; 
 Act of 1837, 67-75, 126; public ap- 
 proval of, 75, 76 ; provisions of act, 
 68-70, 126; administration and con- 
 struction, 77-109; enlarging of, 86, 
 154; collapse of, 94; misconduct in, 
 94-99 ; ended, 102 ; debt of, 102 n., 
 142-143, 146-149, 159, 177-178, 178 n., 
 200-217; mistakes of administration, 
 109; effect on state growth, 127, 150; 
 construction progress, 131, 138; 
 sentiment for repeal of, 134; debt 
 itemized, 146-149; politics of, 150- 
 176; supporting motives, 150; op- 
 position to, 150, 155-156, 164; cur- 
 tailment of, 154, 156, 160; need for 
 funds, 155; variety of opinion in 
 legislature, 160; repeal bill loses on 
 technicality, 163 ; legislative com- 
 mittee to study, 167-168; extrava- 
 gance of, 177; lack of revenue, 200; 
 sale of assets, 201-202, 203-207. 
 
 Internal improvements: Illinois back- 
 ground, 9, 51; in other states, 49-50, 
 63, 65, 75-76 ; as immigrant attrac- 
 tion, 49; by private financing, 61, 87- 
 88, 151; as state projects, 64-72; 
 conventions for, 64-65 ; promotion 
 meetings, 64-65 ; engineer to survey 
 problems, 69 ; opponents of, 73, 75 ; 
 politics of, 150-176. See also Canals, 
 Public Works, Railroads, Rivers, 
 Roads. 
 
 Iron: for rails, 103; rails from Eng- 
 land, 103, 129 n. ; spikes, 103; ex- 
 penditures for, 129 n., 132; prices of, 
 132 n.; payment for, 137-138; ship- 
 ment of, 137; debt for, 147-148; sale 
 of, 200; seized for non-payment of 
 duty, 200; mentioned, 135. 
 
 Iroquois (111.) : 56. 
 
 Irvine and Beers: 147. 
 
 Irvine, James: 129, 147. 
 
 Jackson, Pres. Andrew: 24, 185. 
 Jackson county: meeting in, 57 n. ; 
 politics of, 164 n. ; mentioned, 41. 
 
 Jacksonville (111.) : railroad to, 52, 54, 
 56-57, 80, 90, 96-97, 103-104; rail- 
 road rerouted in, 90; railroad build- 
 ings at, 101 n., 201; bank at, 127; 
 Duncan speech at, 175 ; lots in, 205. 
 
 Jacksonville-Meredosia Railroad: con- 
 tract preserved, 80 n. ; completed, 
 103-104. 
 
 January, Thomas T. : railroad con- 
 tractor, 80; rides first train, 104; 
 buys bonds, 131; debt to, 147. 
 
 Jardine and Co.: 183-184. 
 
 Jaudon, Samuel: 118. 
 
 Jayne, Gershon: 31. 
 
 Jefferson county: 64. 
 
 Jo Daviess county: 163. 
 
 Johnson county: improvements in, 13, 
 16 ; mentioned, 92. 
 
 Johnstown (Penna.) : 49. 
 
 Joliet Signal: 188. 
 
 Jonesboro (111.) : road to, 21 ; railroads 
 to, 87; meeting at, 88; railroad 
 buildings at, 101 n. 
 
 Juniata river: 49. 
 
 Kankakee river: 195. 
 
 Kaskaskia (111.) : road to, 16-17, 20-21, 
 86; as state capital, 20; mentioned, 
 57- _ _ 
 
 Kaskaskia river: means of communica- 
 tion, 10; funds for improvements, 
 13 n., 68, 70 n. ; improvements 
 recommended, 14, 15-16, 64, 67 n. ; 
 obstruction, 16; railroad to, 64; road 
 to, 84; survey of, 84-85; expendi- 
 tures on, 101, 130 n. ; mentioned, 20. 
 
 Keedy, John A.: 106. 
 
 Keelboats: on Mississippi river, 10; 
 general use, 11; on Kaskaskia river, 
 
 Kelly, John M. : 201. 
 
 Kennedy, N.: 100. 
 
 Kentucky: land route through, 10; 
 products of, 10. 
 
 Kinney, William: as candidate for 
 governor, 31 ; as commissioner, 79, 
 89, 128; rejects bids, 80-81; on rail- 
 road routes, 90-91, 97; investigated, 
 97-98; mentioned, 84, 89. 
 
 Kirkpatrick, Alexander: 202. 
 
 Knox county: 160. 
 
 Kuykendall, Andrew J.: 187. 
 
 Labor: on public roads, 17-19; on 
 roads, ferry operators exempt, 25 ; 
 on canals, 43, 123-124, 190; on rail- 
 road construction, 81, 83, 102; tools 
 for, 111; vote of, 153, 166; in pol- 
 itics, 175. 
 
 Lacon Herald: 156.
 
 INDEX 
 
 245 
 
 Lafayette (Ind.) : 11, 56. 
 
 Lake Erie: canals to, 50, 52; railroads 
 to, 57. 
 
 Lake Huron: 53. 
 
 Lake Joliet: 45. 
 
 Lake Michigan: canal from, 26-46, 53; 
 railroad from, 52. 
 
 Lamb and Co.: 109. 
 
 La Motte creek: 13 n. 
 
 Lampkin's ferry: 91. 
 
 Lands: public, 12-13, 23, 28 ; for canals, 
 15, 27-29, 30-31, 37-39, 40, 166, 173, 
 193-194; inaccessible to rivers, 16; 
 sales of, 23, 31, 35, 44, 95, 113, 114, 
 121, 155, 166, 177, 182, 198, 201, 204- 
 207; school and church, 29, 114; 
 prices, 42, 48, 53, 55, 95, 201, 205, 
 206 ; speculation, 47-48 ; for rail- 
 roads, 53-54, 56, 58, 138-139; for 
 internal improvements, 68, 207 n. ; 
 values, 68, 184; payments for, no; 
 timber, 121 ; valuation for taxing, 
 168; funds from, 173; for debt pay- 
 ment, 177-178, 211; legislation on 
 disposal, 180; bounty, 205, 209; pre- 
 emption, 206; donated by federal 
 government, 207 n. ; taxing of gov- 
 ernment, 208-209 I warrants for, 209. 
 See also Taxation. 
 
 Lane, Levin: 70. 
 
 Lane, William: 69. 
 
 La Salle (111.): canal terminal, 112; 
 lots in, 184; scrip stored at, 198. 
 
 La Salle county: meeting in, 156-157; 
 mentioned, 163, 169 n., 182. 
 
 Law: of internal improvement act, 71- 
 72; investigations of corruption, 94- 
 99 ; suits, 137 n., 141. 
 
 Lawrence, Abbott: 184, 185. 
 
 Lawrence county: 13 n. 
 
 Lawrenceville (111.): road to, 21, 24; 
 bank at, 127. 
 
 Leary, Albert G. : 165. 
 
 Leavitt, David: aids bond sale, 183, 
 186; as canal trustee, 189-192; un- 
 popular, 190 n. ; fee for loan negotia- 
 tion, 190 n. 
 
 Lebanon (111.) : road to, 21 ; railroad 
 to, 59, 82 n. 
 
 Lee county: 164 n. 
 
 Legislation: for river improvement, 12, 
 14, 15; Act of 1829, 14; on road im- 
 provement, 17-23 ; on ferry operation, 
 24-25 ; on Illinois and Michigan 
 Canal, 29-30, 32, 37-38, 40, 45-46, 
 113-114, 181-182; on railroads, 51, 
 56-59, 105-106; on internal improve- 
 ments, 62-73, 100, 134-135, 154, 160- 
 164; on public works, 105; on banks, 
 127-128, 179-180; on public lands. 
 
 138, 194, 205-206; on bonds, 143, 145, 
 180, 196, 214-215; control of, 153; 
 on interest payments, 167; on debt, 
 178-182, 206, 211; on taxation, 186- 
 188, 209-210; on Chicago harbor, 
 192. 
 
 Leslie, Miron: railroad contractor, 80; 
 president of railroad, 96 ; rides first 
 train, 104. 
 
 Levees: on American bottom, 81; at 
 Cairo, 93. 
 
 Levy, Lt. : 129, 147. 
 
 Lewis' (111.) : 21. 
 
 Licenses: for bridges and ferries, 24- 
 25. 
 
 Lincoln, Abraham: favors railroad, 52; 
 build up as politician, 74; suggests 
 financing plan, 155. 
 
 "Little Egypt": 150. 
 
 Little Wabash river: funds for im- 
 provement, 13 n., 68, 70 n., 86; im- 
 provement suggested, 67 n. ; expendi- 
 tures on, loi, 130 n. ; mills on, 202, 
 205 ; locks and dams, 202. 
 
 Littletton's Ferry: 21. 
 
 Lockport (111.): canal offices at, 113; 
 contractors meet at, 121-122 ; value 
 of land, 184; opening of canal, 194. 
 
 Locks in waterways: 84, 202. 
 
 Lockwood, Judge Samuel D.: 71-72. 
 
 Locomotives: first in Mississippi val- 
 ley, 104; expenditures for, 130; sale 
 of, 201. 
 
 Logan, Stephen A.: 179 n., 209. 
 
 Logan's Point (on Wabash R.) : 57. 
 
 London (Eng. ) : See Europe. 
 
 London Court of Review: 136, 137. 
 
 London Times: 183. 
 
 Long, Maj. Stephen: 27. 
 
 "Long Nine" of Sangamon county: 74. 
 
 Lottery: for improvement funds, n-12, 
 84; fails, 84. 
 
 Louisiana: 172 n., 216. 
 
 Louisville (Ky.) : 11. 
 
 Lower Alton (III.) : 57. 
 
 Ludlum, Cornelius: appointed agent, 
 102 ; railroad lessee, 108, 203. 
 
 Lyons, James H.: 163. 
 
 McCalla's (III.): 21. 
 
 McClernand, John A.: elected commis- 
 sioner, 46, 123; speaks on improve- 
 ments, 75-76 ; resigns, 123 ; favors 
 river improvement, 192. 
 
 McConnel, Murray: elected commis- 
 sioner, 79; on changing of railroad 
 routes, 90; misconduct investigated, 
 94-97 ; awards contracts, 102 ; rides 
 first train, 104; at Democratic con- 
 vention, 152.
 
 246 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 McConnell, CJeorge: 108. 
 
 McCown. John: 71. 
 
 McLean county: meeting in, 54, 175 n. ; 
 mentioned, 161. 
 
 McLeansboro (111.) : 58. 
 
 McMillan, Robert: 162. 
 
 McRoberts, Josiah: 190 n., 198. 
 
 Macalister, Charles: testifies, 145, 214; 
 memorial of, 145 n. 
 
 Macalister and Stebbins: agreement 
 with, 144; request more collateral, 
 145; payment to, 145, 214; debt to, 
 149; as bond holder*-, 203, 213-215; 
 mentioned, 170 n., 188, 197. 
 
 Mackinaw (111.) : 70, 71 n. 
 
 Macon county: delegates from, 55; im- 
 provements in, 87; mentioned, 57 n., 
 58. 
 
 Macoupin river: funds for, 13 n. ; im- 
 provement of, 14, 14 n. 
 
 Madison county: road in, 20; delegates 
 from, 55, 64 ;• anticipated railroad 
 revenue from, 56; meeting in, 156, 
 175 n. ; mentioned, 58 n., 76, 160, 163, 
 209. 
 
 Magniac, Smith and Co.: 122, 196. 
 
 Manning, Joel: canal board secretary, 
 41, 41 n. 
 
 March, Enoch C: 32 n. 
 
 Marion county: 14, 25 n. 
 
 Marseilles (III.) : canal progress near, 
 112, 122. 
 
 Marshall, John: Bank of Illinois presi- 
 dent, 139, 140 n. 
 
 Marshall county: 169 n. 
 
 Maryland: law on improvements, 50; 
 bidders from, 82; debt of, 216. 
 
 Mather, Thomas: bank official, 43 n. ; 
 elected fund commissioner, 126; loan 
 to state, 142. 
 
 Matteson, Gov. Joel A.: approves 
 Leavitt claim, 190 n. ; involved in 
 scrip fraud, 197-198; buys iron, 200; 
 buys railroad, 203-204; on Wads- 
 worth bankruptcy, 212. 
 
 Maumee bay: 57. 
 
 Mauvaisterre creek: 106. 
 
 Maysville (111.) : 21. 
 
 Maysville Turnpike Co.: 24. 
 
 Meisenhamer's (111.) : 21. 
 
 Menard county: 164 n. 
 
 Meredosia (111.) : railroad to, 56, 80 n., 
 90-91, 95-96, 102-104; sale of land 
 '") 9S'96 ; railroad buildings at, 
 loi n., 201 ; railroad operation be- 
 gins, 104; lots in, 205. 
 
 Mexican War: 205, 209. 
 
 Miami river: 50. 
 
 Michigan: debt of, 172 n., 216; rail- 
 road iron for, 200. 
 
 Military: officers exempt from tolls, 25; 
 canal importance to, 27. 
 
 Military Tract: 69, 150. 
 
 Mill creek: 13 n. 
 
 Mills: at Carmi and New Haven, 201- 
 202, 205. 
 
 Minshall, William A.: 69, 73. 
 
 Mississippi (state): 172, 216. 
 
 Mississippi river: as immigrant route, 
 9-10; obstructions, 16; road to, 21, 
 84; canal from to Great Lakes, 
 26-27; Des Moines rapids, 86; rail- 
 road to, 88 ; transportation outlet, 
 150. 
 
 Mississippi, Springfield, and Carrolton 
 Railroad: 59. 
 
 Missouri: competitive products, 10; 
 property tax, 172. 
 
 Mitchell, Gen. W. B.: 55-56. 
 
 Money: paper currency, 46-47, 177; 
 scrip, 100, 102, 120; specie payments 
 suspended, no, 168; market, 113, 
 115; scarcity of, 121; deflation, 122, 
 199; domestic exchange rate, 133; 
 shipment risks, 133. See also Foreign 
 exchange. 
 
 Monopoly: on transportation, 29-30; 
 feeling against, 74. 
 
 Monroe, Byrd : 154, 161. 
 
 Monroe, Pres. James: 27. 
 
 Monroe county: funds for, 14, 25 n. ; 
 mentioned, 58, 66. 
 
 Montgomery county: 156, 171. 
 
 Moore, John: 161-162, 212. 
 
 Morgan, Achilles: 12. 
 
 Morgan City (111.) : buildings at, 
 loi n., 201 ; railroad construction 
 reaches, 104. 
 
 Morgan county: petition for railroad, 
 56; meeting in, 156; mentioned, 66, 
 154 n., 163, 163 n. 
 
 Morris, Isaac N.: canal commissioner, 
 125, 125 n. 
 
 Morrison, Samuel: 14. 
 
 Morse, J. M. : railroad lessee, 107. 
 
 Mount Carmel (III.) : railroad to, 57, 
 67 n., 81, 85; meeting at, 88; men- 
 tioned, 84. 
 
 Mount Carmel and Alton Railroad 
 Co.: stock of, 61; gives up charter, 
 88. 
 
 Mount Carmel Herald: 98. 
 
 Mount Sterling (111.) : 90-91. 
 
 Mount Vernon (III.): road to, 21, 22; 
 railroad to, 59, 92. 
 
 Mungo Park (steamboat) : 106-107. 
 
 Murphy, R. G.: 92 n. 
 
 Murphy, Richard: 165. 
 
 Murray, F. G. : 102. 
 
 Murray, John: 97.
 
 INDEX 
 
 247 
 
 market 
 packets 
 
 aper, Joseph: 94, 162. 
 aples (III.) : railroad to, 57, 82 n., 
 90, 96, 2CX4.; railroad buildings at, 
 loi n., 204. 
 
 aples and Jacksonville Railroad: 96. 
 aples Branch Railroad: loi. 
 ashville (111.) : railroad to, 59; inter- 
 nal improvement convention, 64-65. 
 ational Road: used, 10; laid out in 
 Illinois, 21; land request for, 23; 
 routing of, 60, 74. 
 
 evins, Townshend and Co.: interest 
 funds loaned, 143 ; debt to, 148. 
 ew Albany (Ind.) : 85. 
 ew Berlin (111.) : 201, 205. 
 ew England : 22. 
 ew Hampshire: 82. 
 ew Haven (111.) : mill at, 201-202, 
 205. 
 
 ew Orleans: imports via, 10; 
 for Illinois products, 10; 
 from, 11; shipment time via, 32 n. ; 
 tropical imports via, 194. 
 ew York (city) : as bond market, 43, 
 115, 128-131, 138, 139, 140-141, 144- 
 145 ; court action in, 141 ; meeting at, 
 191. 
 
 ew York (state): settlers from, 22; 
 internal improvements in, 63, 75. 
 eiv York Herald: 170. 
 ewsham, Edward: 14. 
 ewspaper opinions: on canals, 27, 
 32 n., 35-36, 46, 123-125, 158, 169- 
 170, 181-183; on railroads, 33, 35, 
 53-55' 63, 87, 107 n.; on internal im- 
 provements, 49, 62, 64, 151-152, 157- 
 159; on misconduct investigations, 
 98; on canal politics, 123-125, 166, 
 i75i 183, 191; of Gov. Carlin, 153, 
 159; on taxation, 166, 172. 186, 188; 
 on legislation, 169 ; on debt and in- 
 terest, 170-172, 186. 
 ichols, E. G. : 98. 
 lies' Register: 27. 
 
 orthern Cross Railroad: funds for, 
 68, 70 n., 105-106; construction of, 
 
 81, 102-106; bids and contracts, 8i- 
 
 82, 82 n., 97, 104-106; Indiana con- 
 nection, 85; promotion of, 88; route 
 of, 90-91, 95-97; expenditures for, 
 101, 104, 105-106, 130 n. ; only line 
 completed, 102-104, 168; gauge of, 
 103 ; rolling stock and equipment, 
 104, 204; schedules, 104 n., 106; pas- 
 senger service, 104 n., 106-107; in- 
 come, X05, 107; financial results, 105, 
 107; freight carried, 107; operation 
 and repair costs, 107-109; state 
 operation stopped, 107 ; rental losses, 
 107-109, 202-203 ; condition of road, 
 
 108; horse operation, 108; sale by 
 state, 108, 201, 203-204; bonds of, 
 148; in politics, 150, 162-163, 164 n. ; 
 mentioned, 131, 146. 
 
 Oakley, Charles: elected fund commis- 
 sioner, 126, 130; in Europe, 132-133; 
 dealings with Delafield, 140, 140 n. ; 
 as loan agent, 282-286; as canal 
 trustee, 191-192; mentioned, 188. 
 
 Oakley, James: 97. 
 
 Ogden, W. B.: letter of, 119 n. ; canal 
 contractor, 122; as candidate, 165. 
 
 Ogle, Jacob: 51. 
 
 Oglesby, Gov. Richard J.: 215. 
 
 Ohio (state): products from, 10; in- 
 ternal improvements in, 50, 63, 76 ; 
 bidders from, 82; taxes in, 172 j debt 
 of, 172 n. 
 
 Ohio Canal : 200. 
 
 Ohio river: as route of immigrants, 9; 
 Ford's Ferry on, 22 ; transportation 
 to, 49; canals to, 50; railroad to, 57, 
 67 n., 92; floods, 132 n. ; mentioned, 
 200. 
 
 Ohio saline lands: 15. 
 
 Opdyke, Tinsley and Co.: 106. 
 
 Oquawaka (111.) : 70. 
 
 O'Rear, William: 70. 
 
 Osgood, Uri: 212. 
 
 Ottawa (111.): sale of lots, ii; town 
 laid out, 31; prices of lots, 31 n., 
 184; mentioned, 86, 173. 
 
 Oita'u:a Free Trader: in politics, 125, 
 183; on debt, 174; letter in, 183. 
 
 Palestine (111.) : 21, 56. 
 
 Panic of 1837: no, 151. 
 
 Paris (III.): road to, 21; railroad to, 
 56, 67 n., 81; meeting at, 157; lots 
 in, 205. 
 
 Parker, A. R. : 97. 
 
 Paul, Rene: 28. 
 
 Paullin, Parven: 70. 
 
 Pearson, John: 165. 
 
 Peck, Ebenezer: public works commis- 
 sioner, 79, 99 ; at Democratic con- 
 vention, 152; elected as representa- 
 tive, 165. 
 
 Pekin (111.) : railroad to, 70, 71 n., 82. 
 
 Pekin and Bloomington Railroad: 71 n., 
 82. 
 
 Pekin and Tremont Railroad: 59. 
 
 Pekin, Bloomington, and Wabash Rail- 
 road : 59. 
 
 Pennsylvania: transportation from, 10; 
 internal improvements in, 49-50, 63, 
 75-76; debt of, 172 n., 216. 
 
 Peoria (111.) : river boats at, 11 ; roads 
 to, 22 ; railroad to, 67 n., 70, 71 n.,
 
 248 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 81-82; meeting at, 88-89; opinion on 
 improvement system, 157. 
 Peoria and Bloomington Railroad: 88- 
 
 89. 
 
 Peoria and Warsaw Railroad: funds 
 for, 71 n. ; contract for, 82, 82 n., 97; 
 roadbed cost, 83; expenditures for, 
 loi, 130 n. ; in politics, 163. 
 
 Peoria county: meeting in, 156-157; 
 politics of, 164 n.; mentioned, 169 n. 
 
 Peoria Register: 155. 
 
 Perry county: funds for, 14, 25 n. ; 
 delegates from, 64; mentioned, 92 n. 
 
 Peru (111.) : 101. 
 
 Petitions for roads: 18. 
 
 Philadelphia (Pa.): 10, 49. 
 
 Philips, Joseph: 27. 
 
 Phoenix Bank of New York: 115. 
 
 Pierce, Samuel S.: 52. 
 
 Pike county: meeting in, 156; men- 
 tioned, 69, 70. 
 
 Piles' (111.) : 21. 
 
 Pittsburgh (Pa.) : 10, 49. 
 
 Pittsfield and Mississippi Railroad: 70. 
 
 Plant, George P.: 104. 
 
 Politics: regarding canals, 29-30, 31, 
 38, 63, 123-125, 150, 154, 157, 181- 
 182; regarding internal improve- 
 ments, 62-74, 109, 150-176; in south- 
 ern Illinois, 58, 69, 181, 187-188; of 
 railroad routes, 89-93, 150, 157-158; 
 of public works commissioners, 99 ; 
 election of 1838, 151-152; labor vote 
 in, 152; pork barrel, 162; of state 
 debt, 171-175, 188, 212; election of 
 1842, 175; of Chicago harbor, 192- 
 193. See also Democrats, Republi- 
 cans, Whigs. 
 
 Pollock, William: 87. 
 
 Pope county: 13. 
 
 Population: 172 n. 
 
 Porter, Peter B.: 26. 
 
 Portsmouth (Ohio) : 50. 
 
 Post, Justus: 28-29. 
 
 Prairie du Rocher: 16, 21. 
 
 Prentiss, William: 142 n. 
 
 Prices: of land, 31, 44, 53, 55. 121, 201- 
 202, 205-207 ; in boom times, 47"48 ; 
 of materials, 81, 83; of bonds, 126, 
 133, 141, 144-145, 172; of wheat, 
 170; in 1845, 189. 
 
 Prickett, David: canal commissioner, 
 
 123. 
 Public carriers: 25. 
 Public Lands: See Lands. 
 Public works: engineers, 77, 78, 84, 97, 
 100; contracts, 77-78, 80 n., 81-82; 
 salaries and wages, 77, 79; bidding 
 on, 78; payments for, 78; state dis- 
 tricts, 79 ; appropriations for, 79, 86 ; 
 
 surveys, 80; expenditures for, 81-82, 
 99-100, loi ; financing of, 83, 99; 
 investigations of corruption, 94-99 ; 
 progress of, 99, 102; boards abol- 
 ished, 100, 102; claims adjustments, 
 I02, 105. See also Internal improve- 
 ments. 
 
 Public works commissioners: board of, 
 77, 86, 162, 164; election of, 77, 79, 
 99, 100; duties, 77-79; meetings, 77, 
 79, 85 ; penalties for disclosing in- 
 formation, 78; personnel, 79; re- 
 ports, 83; to build railroads in In- 
 diana, 85; pressure on, 88-89; '"" 
 formation requested of, 89; commis- 
 sioners investigated, 94-99 ; term of 
 office, 99 ; new board elected, 99, 100. 
 
 Pugh, J. H.: 33. 
 
 Putnam county: 169 n. 
 
 Quincy (111.): road to, 23; railroad 
 agitation in, 51 ; railroad to, 53, 57, 
 63, 66, 67 n., 81 ; mentioned, 125. 
 
 Quincy Argus: 64, 165. 
 
 Quincy Herald: 173. 
 
 Quincy House: 141, 207. 
 
 Quincy Whig: in politics, 64, 158, 165, 
 175; on canal, 123-124; on improve- 
 ment system, 155, 159; on state debt, 
 r66. 
 
 Radford, Reuben: 81. 
 
 Railroads: supplant river transporta- 
 tion, 11; versus canals, 32-33, 36-37, 
 62-63; horse railway, 48, 88, 108; in 
 Illinois, 51, 54-63, 67-71, 74; to the 
 West, 51-53; cost of, 52, 55, 82-83, 
 90, 92, 96, loi, 107, 130, 156; finan- 
 cing, 53, 56, 58, 68, 70 n., 71 n. ; 
 survey for, 55, 80-81 ; assembly at 
 Carlinville, 55; organization of com- 
 panies, 56-57; charters, 56-57, 59, 73, 
 79-80; land for, 56-58, 138-139, 201; 
 legislation on, 58-72; routing of, 60, 
 78, 89-92, 95-97; in national scene, 
 60, 64; terms of charters, 60-61; 
 state to purchase property of, 67 ; 
 land speculation, 71 ; of East com- 
 pared with Illinois, 71 ; method of 
 building, 77-79; construction delays 
 79-80; surrender of charters, 80 
 bidding and contracts, 80-84, 88 
 mileage constructed, 81, 83; expendi- 
 tures for, 83 ; Illinois-Indiana con- 
 nections, 85 ; construction progress, 
 86, 106, 146; wooden rails, 88; pro- 
 motion pressure, 88-94, 97- ^^' 
 terials for, 88, 103; gauge of, 103; 
 equipment, 104; rolling stock, 104, 
 201; operation costs, 107-109; speed
 
 INDEX 
 
 249 
 
 limits, 108; in politics, 150, 156-157; 
 in competition with state projects, 
 I54"i55; report favoring suspension 
 of, 167; timber sold, 200-201; men- 
 tioned, 87-88, 200. See also Freight 
 rates, Iron, specific railroad names. 
 
 Randolph county: 14, 25 n. 
 
 Rawalt, James: 163. 
 
 Rawlings, Moses M. : in New York, 
 115; elected fund commissioner, 126, 
 130; in Europe, 132-133; dealings 
 with Delafield, 140, 195 ; sells mill, 
 202. 
 
 Ray, C. R. : 190 n. 
 
 Reed, James P.: 81, loi. 
 
 Republicans: 198, 212. 
 
 Rew, H. G.: 107. 
 
 Reynolds, Gov. John: elected, 31; con- 
 structs railroad, 88 ; as loan agent, 
 114; goes east, 115; mentioned, 33, 
 116, 196. 
 
 Richardson, William A.: 94. 
 
 Ridgely, Nicholas H. : letter of, 128 n. ; 
 buys railroad, 203-204. 
 
 Riggs, Elisha: 143, 148. 
 
 Rivers: improvement of, 9-16, 51, 84- 
 85, 202; for transportation, lo-ii; 
 proposals for improvement, 11-12; 
 obstructions, 12, 16; federal aid for 
 improving, 16; cost of improve- 
 ments, 84-85, loi, 130 n. ; appropri- 
 ations for work on, 86 ; in politics, 
 162-163. ^f^ ^1^0 specific names of 
 rivers. 
 
 Roads: financing of, 13 n., 65, 84, 86; 
 improvement of, 16-25; in Illinois, 
 16-17; condition of early, 17, 22-23; 
 declared public, 17; law of 1819, 17- 
 18 ; labor on, 17-18 ; opening of new, 
 18; payment for, 18-19; duties and 
 pay of supervisors, 18; petitions for, 
 18 ; law of 1827, 19 ; law of 1835, 19 ; 
 county expenditures for, 19; state 
 commissioners, 20; officials, 20; fed- 
 eral road declared public highway, 
 20; from Vandalia, 21; establish- 
 ment of, 21 ; earliest in central Illi- 
 nois, 21; as state highways, 22; 
 earliest in northern Illinois, 22 ; 
 length of, 22; cost of, 23-25, loi, 
 130 n. ; land grants for, 23-24; pri- 
 vate construction, 24; stream cross- 
 ings, 24; turnpike, 70, 86, loi. See 
 also Great Western Mail Route and 
 National Road. 
 
 Roberts, Edmond : 31, 35. 
 
 Robinson, Jeffrey: 94. 
 Rock Island (111.) : 22, 87. 
 
 Rock river: improvement proposed, 
 67 n. ; funds for improvement, 68, 
 
 70 n., 86; canal at rapids of, 84; 
 investigation of contract, 98 ; ex- 
 penditures on, loi, 130 n. ; in politics, 
 161, 162. 
 
 Rockson creek: 13 n. 
 
 Roman, William W. : fraud investiga- 
 tor, 94; minority report, 94, 96. 
 
 Routes of transportation: river and 
 land, 9-10; overland, 16-17. 
 
 Rushville (111.) : 53, 86. 
 
 Rushville and Erie Railroad: loi. 
 
 Rushville Railroad: 59. 
 
 Ryan, Michael: as loan agent, 120, 182- 
 185; in politics, 125 n. ; promotes 
 canal completion, 181; mentioned, 
 136 n., 188. 
 
 Saganaskee swamp: 112. 
 
 St. Clair coal mines: 57. 
 
 St. Clair county: funds for, 14; road in, 
 20; meeting in, 32; delegates from, 
 64; mentioned, 51. 
 
 St. Louis (Mo.): road to, 21, 24, 73; 
 railroad to, 51, 57, 80; Alton as 
 rival of, 59-60, 73-74; iron ship- 
 ments via, 137; mentioned, 11, 16, 
 88, 194. 
 
 Salaries: See Wages. 
 
 Salem (111.): road to, 21; railroad to, 
 82 n., 92. 
 
 Saline river: 10. 
 
 Salt lands: sale of, 12-13, ^3 n., 15; 
 fail to sell, 14; wells sold, 207. 
 
 Sangamo Journal: letter in, 15; on 
 canals, 36, 169, 170; on railroads, 53, 
 55i 63, 87; on misconduct charges, 
 98; in politics, 124, 152, 174; on im- 
 provement system, 153, 159; on state 
 debt, 165, 171, 172-174, 209; on tax- 
 ation, 171-172; mentioned, 35. 
 
 Sangamon and Morgan Railroad Co.: 
 203-204. 
 
 Sangamon county: political bargaining, 
 21 ; railroad to, 55 ; produce of, 55- 
 56; improvements in, 55, 87; politics 
 in, 72, 74, 164 n. ; "Long Nine" of, 
 74; circuit court, 135, 137 n. ; grand 
 jury, 198; mentioned, 15, 53-54, 162. 
 
 Sangamon river: steamboat on, 11; 
 taxation of lands, 12 ; funds for im- 
 provement, 13 n., 14 n. ; improve- 
 ment legislation, 15 ; improvement 
 of, 52; railroad to, 81. 
 
 Sawmills: 93 n., 201-202. 
 
 Schools: lands, 29, 114; funds, 129 n., 
 178 n., 182, 209. 
 
 Schuyler county: delegates from, 54; 
 meeting in, 63 ; mentioned, 69. 
 
 Scioto river: 50.
 
 250 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Scott county: politics of, 164 n., 171, 
 175 n. ; mentioned, 163. 
 
 Scott's Post Office (111.) : 21. 
 
 Scrip: for payments to contractors, 100, 
 142; amount issued, 100 n., 149, 195, 
 196; acceptance of, 100 n. ; issuance 
 stopped, 102; warrants, 120; as pay- 
 ment for bonds, 131; as loan col- 
 lateral, 145, 214; exchange for bank 
 stock, 175; retirement of, 180; fraud 
 on, 197; used for payment, 201-202; 
 bought with land sale proceeds, 205 ; 
 mentioned, 187, 200. 
 
 Semple, James: 34, 193. 
 
 Sexton, Orval: 187. 
 
 Shawneetown (111.): river boats at, 
 11; road to, 17, 21; railroad to, 57, 
 63, 67 n., 70, 81 ; railroad buildings 
 at, loi n.; bank at, 127; lots in, 201, 
 205. 
 
 Shawneetown and Alton Railroad: 59. 
 
 Shelby county: 57 n. 
 
 Sherwood, M. B.: 148. 
 
 Sickness: 190. 
 
 Silver creek: 81. 
 
 Six Mile Prairie: 20. 
 
 Slade, Charles: 14. 
 
 Sloo, Thomas, Jr.: 28. 
 
 Smith, Edward: as canal engineer, 41; 
 improvements plan proposed, 67. 
 
 Smith, John C. : 215. 
 
 Smith, Robert: as legislator, 160, 163; 
 as congressman, 192, 200 n. ; prop- 
 erty sale agent, 200. 
 
 Smith, Judge Theophilus W.: 28, 71. 
 
 Snyder, Adam: 84. 
 
 Southern Cross Railroad: funds for, 68, 
 70 n. ; contract for, 81, 83; in politics, 
 164. 
 
 Sparta Democrat: i66. 
 
 Speculation: in Chicago, 47; in 1836 
 boom, 47-49, 55; prevention of, 78; 
 plan suggested by Lincoln, 155; in 
 lands, 155; spirit of affects expendi- 
 tures, 177. 
 
 Spikes for railroads: 103. 
 
 Spoon river: 86. 
 
 Springfield (111.): steamboat at, 11; 
 landing, 15; roads from, 21-22; land 
 sales at, 31; railroad to, 52, 54-55, 
 63-64, 80-81, 87, 102; as capital, 53, 
 73-74; improvement convention at, 
 65; meeting at, 88, 100, 174; scrip 
 acceptance in, 100 n. ; railroad build- 
 ings at, loi n., 201 ; Democratic con- 
 vention at, 165; state house bonds, 
 178 n. ; lots in, 204; mentioned, 198. 
 
 Springfield and Meredosia Railroad: 
 203-204. 
 
 Stadden, William: 125 n. 
 
 Stapp, James T. B.: 34. 
 
 Stapp, Wyatt B.: 154 n., 160. 
 
 Stark county: 169 n. 
 
 State Bank of Illinois: canal financing 
 by, 43, 116; indebtedness of, no; 
 charter provision, iio-iii; failure 
 of, 123; dividends of, 127; stock 
 owned by state, 127, 178 n. ; direc- 
 tors, 127; buys bonds, 128; state 
 funds in, 130 n. ; loan from, 142; 
 debt to, 149, 178 n., 195 ; in politics, 
 168; separation from state, 177; 
 liquidation of, 179; scrip held by, 
 197-198. 
 
 Steamboats: on Mississippi, 10; on 
 Wabash, 12; at Springfield, 15; at 
 Chicago, 36; canal basin for, 43; 
 lock for, 84; constructed at Cairo, 
 93 n. 
 
 Stephenson, James W.: as commis- 
 sioner, 79, 91 ; at Democratic con- 
 vention, 152. 
 
 Stony creek: 13 n. 
 
 Strickland, S. Howard: 93 n. 
 
 Sturgis, William: 184. 
 
 Sugar creek: 13 n. 
 
 Susquehanna river: 49. 
 
 Swift, William H.: examines canal, 
 184; as canal trustee, 189-191; dis- 
 approves Leavitt claim, 190 n. 
 
 Sydney (111.) : 163. 
 
 Talcott, Edward B.: as canal engineer, 
 41, 41 n. ; salary of, 124; salary 
 cut, 190 n. ; promoted, 191. 
 
 Talisman (steamboat) : 11, 15. 
 
 Taxation: for river improvement, 12; 
 for roads, 18; payment by labor, 19; 
 rates, 19, 155, 168, 186, 187-188, 209; 
 for internal improvements, 64-65, 84, 
 155. 156, 158; of land, 68, 127, 208- 
 209 ; for public debt, 143, 144, 166, 
 180, 207; revenue from, 149, 216- 
 217; collections, 149; for interest 
 payment, 155, 168, 173, 177, 184, 187- 
 x88, 210; of salaries and deeds, 168; 
 valuation for, 168; protests on, 171; 
 in other states, compared, 172 ; sole 
 source of state income, 175; imprac- 
 tical in depression, 177; opposed by 
 Gov. Ford, 178; bondholders de- 
 mand for, 186; poll tax proposed, 
 209. 
 
 Taylor, Edmund D. : 106. 
 
 Taylor, John: railroad contractor, 106; 
 lessee of railroad, 108, 203. 
 
 Tazewell county: 175 n. 
 
 Tennessee: 10. 
 
 Terre Haute (Ind.) : packets at, 11;
 
 INDEX 
 
 251 
 
 road through, 21, 23; railroad to, 56, 
 67 n., 85. 
 
 Terre Haute, Shelbyville, and Alton 
 Railroad: 163. 
 
 Thomas, Jesse B.: 99. 
 
 Thomas, William: 66. 
 
 Thompson, Samuel G. : 73. 
 
 Thompson and Forman: supplies iron, 
 132, 137; contract with, 133-134, 136; 
 claim on state, 138; debt to, 147. 
 
 Thornton, Gen. William F.: appointed 
 commissioner, 41, 46; investigates 
 corruption, 94; sells canal bonds, 
 116, 196; negotiates contract ad- 
 justments, 123 ; mentioned, 41 n., 
 45 n., 124, 135 n. 
 
 Tillson, John: fund commissioner, 99; 
 elected commissioner, 130; gives 
 notes, 141 ; pledges "Quincy House," 
 141; mentioned, 132 n., 140. 
 
 Tinsley, S. M., and Co.: 107. 
 
 Tippecanoe (steamboat) : 11 n. 
 
 Tolls: bridge, 24; canal, 29-30, 75-76, 
 173, 184, 198; railroad, 58, 76, 126- 
 127; from internal improvements, 
 63 ; amount of, 198. 
 
 Transportation: on Illinois frontier, 9, 
 32 n. ; expense of, 9, 32 n., 50, 53; 
 of products by water, 10; of freight, 
 II) 55; by land, 16; Illinois to East, 
 26; via Great Lakes, 32 n. ; desire 
 for improvement in, 48 ; effect on 
 prices, 50; on Illinois and Michigan 
 Canal, 194. 
 
 Turney, James: 165. 
 
 Union county: Cache river improve- 
 ments requested, 13; politics in, 31; 
 assembly of residents, 88; mentioned, 
 58, i6r. 
 
 United States Bank of Phila.: loan by, 
 116, 143; London agent, 118; state 
 funds in, 130 n. ; debt to, 148, 195. 
 
 Vandalia (111.) : road from, 13 n., 21, 
 23; sale of lots, 14; as state capital, 
 20, 74; National Road through, 23; 
 meeting at, 33, 41, 79, 89; railroad 
 to, 64, 82 n., 91 ; improvement con- 
 vention at, 65, 76 n. ; public works 
 office at, 79. 
 
 Vandalia Branch Bank: 130 n. 
 
 Vandalia Free Press: 151, 169. 
 
 Vermilion county: mentioned, 52, 162, 
 187. 
 
 Vermilion river: 13 n. 
 
 Vermilion saline: sale of lands in, 12, 
 13 n., 14, 15. 
 
 Vienna (111.) : 92. 
 
 Vincennes (Ind.) : roads to, 16, 21, 23- 
 
 24; railroad to, 56, 63. 
 Vincennes-Carlyle road: 23. 
 Vincennes-St. Louis highway: 21. 
 Virginia (state) : 10. 
 
 Wabash and Erie Canal: railroad to, 
 54"55. 59> 63, 66, 67 n., 85; in pol- 
 itics, 150. 
 
 Wabash and Mississippi Railroad: 
 chartered, 59 ; charter provisions, 
 61 ; favored by Bentley, 69. 
 
 Wabash and Mississippi Turnpike Co. : 
 24. 
 
 Wabash Canal: 57. 
 
 Wabash county: delegates from, 88; 
 mentioned, 41, 66, 163. 
 
 Wabash Navigation Co.: 12. 
 
 Wabash Railroad Co.: 204. 
 
 Wabash river: as communication route, 
 10, 53; steamboats on, 11; improve- 
 ment of, 12-14, 66, 67; obstructions, 
 16; road to, 20, 22, 24, 86; railroad 
 to> 52, 55, 57, 62; funds for improve- 
 ment, 68, 70 n., 79; dam and lock in, 
 84; expenditures on, loi, 130 n. ; in 
 politics, 162, 163 ; mentioned, 31. 
 See also Little Wabash. 
 
 Wadsworth, Julius: 212. 
 
 Wages: for road labor, 18; for com- 
 missioners, 20, 23, 40, 126; for canal 
 labor, 43, iii; for public works 
 officials, 78, 79; for engineers, 79, 
 124; for railroad labor, 81, 83, 102; 
 for canal employees, 124; for canal 
 trustees, 190. 
 
 Wagons: 10, 32 n. 
 
 Wait, William G.: 186. 
 
 Wakefield's settlement: 21. 
 
 Waldo, Daniel: 94-95. 
 
 Waldo, James E.: 94. 
 
 Walker, Isaac P.: 162. 
 
 War of 1812: 27. 
 
 Ward, Thomas W. : 184. 
 
 Ward's Gap (Va.) : 10. 
 
 Warncock, John: 29. 
 
 Warren county: meeting in, 157; men- 
 tioned, 154 n., 160. 
 
 Warsaw (111.) : loi n. 
 
 Warsaw, Peoria, and Wabash Rail- 
 road: 59, 61. 
 
 Washington county: funds for, 14, 
 25; delegates from, 64; mentioned, 
 162. 
 
 Water power: income from, 41; sale 
 of, 114; limitations on sale or lease 
 of, 182; rental fee, 184, 198. 
 
 Waterways: See Canals, Great Lakes, 
 Rivers. 
 
 Watson, John B.: 107.
 
 252 
 
 ILLINOIS INTERNAL IMPROVEMENTS 
 
 Waverly and Grand Prairie Railroad: 
 
 59- 
 
 Wajme county: 88. 
 
 Weather: wet season, 26; affects canal 
 construction, 43; floods, 43, 132 n., 
 190; rivers dry, 87. 
 
 Weatherford, William: 163. 
 
 Webb, Edwin B. : 71, 73. 
 
 Weed, Charles J.: 202. 
 
 Wells, Ex-Lt. Gov.: 192. 
 
 Wentworth, John: on Chicago harbor, 
 192 ; on lands for canal, 193 ; on 
 taxing of government lands, 208. 
 
 West, Emmanuel J.: 28. 
 
 Wheat: 55, 170. 
 
 Wheeler, Alpheus: 69, 73. 
 
 Wheeling (W. Va.) : 10. 
 
 Whigs: accuse Democrats on appoint- 
 ments, 40; on improvement system 
 bill, 69; newspapers, 98, 123; as 
 commissioners, 99, 100, 125 ; de- 
 fend Reynolds' appointment, 114 n. ; 
 candidates, 152, 174, 175; attitude 
 on improvement system, 152, 157-158, 
 164, 181 ; opinions of Gov. Carlin, 
 158; blamed for debt, 165; opinions 
 on debt, 165, 177, 181 ; in Cook coun- 
 ty, 165; critics of legislation, 169; 
 oppose bond sales, 170, 175 ; favor 
 land distribution, 173; influence on 
 European bankers, 183, 185; favor 
 Chicago harbor, 192; mentioned, 184, 
 185. 
 
 White, Hartshorn: 14. 
 
 White county: meeting in, 156; men- 
 tioned, 71, 160. 
 
 Whiteside, John D.: on county funds, 
 66, 73 ; as state treasurer, loi n., 
 
 102 ; fund commissioner, 106, 107, 
 136, 137 n., 144, 202; report of, 
 120 n. ; agreement with Delafield, 
 141 ; agreement with Macalister and 
 Stebbins, 144, 170 n., 213; testifies, 
 145; mentioned, 136 n. 
 
 Wilcox, Isaac D. : 20. 
 
 Will county: 169. 
 
 Willard, Elijah: elected commissioner, 
 79, 99; rejects bids, 80; appointed 
 agent, 102 ; at Democratic conven- 
 tion, 152; buys mills, 202. 
 
 Williams, Amos: 12. 
 
 Williamson, William: 58. 
 
 Wilson, John: 165. 
 
 Winchester, Linnville, and Jackson- 
 ville Railroad : 70. 
 
 Winstanley and Duffy: 81. 
 
 Wolf Run: railroad in, 96, loi. 
 
 Wood, John : 202. 
 
 Wood river: 84. 
 
 "Woodburn" (III.): 55. 
 
 Wright, Benjamin: 45. 
 
 Wright, Joel : 79. 
 
 Wright (John) and Co.: buys bonds, 
 117-118, 196; contract questioned, 
 117-118, 132-133, 135; fails, 119, 135- 
 136; interest in Cairo, 132 n. ; sued, 
 136; lien on bonds held by, 137-138; 
 interest on state bonds, 142 ; debt 
 to, 147. 
 
 Yates, Richard: 187. 
 
 Young, Sen. Richard M.: appointed 
 agent, 114; letter to, 115, 165; in 
 Europe, 116-119; offers land bill, 
 138-139; as arbitrator, 179 n. ; men- 
 tioned, 173, 196.
 
 UNIVERSITY OF ILLINOIS-URBANA 
 380K882ILL CDDI 
 
 ILLINOIS INTERNAL IMPROVEMENTS 1818-184 
 
 3 0112 025307395