PREAMBLE.
The design of this association is to raise a fund in Continental certificates, for the sole purpose and to be appropriated to the entire use of purchasing lands in the western territory belonging to the United States, for the benefit of the company, and to promote a settlement in that country.
Article 1st.—That the fund shall not exceed one million of dollars in Continental specie certificates, exclusive of one year’s interest due thereon (except as hereafter provided), and that each share or subscription shall consist of one thousand dollars, as aforesaid, and also ten dollars in gold or silver, to be paid into the hands of such agents as the subscribers may elect.
Article 2nd.—That the whole fund of certificates raised by this association, except one year’s interest due thereon, mentioned under the first article, shall be applied to the purchase of lands in some one of the proposed States northwesterly of the river Ohio, as soon as those lands are surveyed and exposed for sale by the Commissioners of Congress, according to the ordinance of that honorable body, passed the twentieth of May, 1785, or on any other plan that may be adopted by Congress, not less advantageous to the company. The one year’s interest shall be applied to the purpose of making a settlement in the country and assisting those who may be otherwise unable to remove themselves thither. The gold and silver is for defraying the expenses of those persons employed as agents in purchasing the lands and other contingent charges that may arise in the prosecution of the business. The surplus, if any, to be appropriated as one year’s interest on the certificates.
Article 3rd.—That there shall be five directors, a treasurer and secretary, appointed in manner and for the purposes hereafter provided.
Article 4th.—That the prosecution of the company’s designs may be the least expensive, and at the same time the subscribers and agents as secure as possible, the proprietors of twenty shares shall constitute one grand division of the company, appoint the agent, and in case of vacancy by death, resignation or otherwise, shall fill it up as immediately as can be.
Article 5th.—That the agent shall make himself accountable to each subscriber for certificates and invoices received, by duplicate receipts, one of which shall be lodged with the secretary; that the whole shall be appropriated according to articles of association, and that the subscriber shall receive his just dividend according to quality and quantity of lands purchased, as near as possibly may be, by lot drawn in person or through proxy, and that deeds of conveyance shall be executed to individual subscribers, by the agent, similar to those he shall receive from the directors.
Article 6th.—That no person shall be permitted to hold more than five shares in the company’s funds, and no subscription for less than a full share will be admitted; but this is not meant to prevent those who cannot or choose not to adventure a full share, from associating among themselves, and by one of their number subscribing the sum required.
Article 7th.—That the directors shall have the sole disposal of the company’s fund for the purposes before mentioned; that they shall by themselves, or such person or persons as they may think proper to entrust with the business, purchase lands for the benefit of the company, where and in such way, either at public or private sale, as they shall judge will be the most advantageous to the company. They shall also direct the application of the one year’s interest, and gold and silver, mentioned in the first article, to the purposes mentioned under the second article, in such way and manner as they shall think proper. For these purposes the directors shall draw on the treasurer from time to time, making themselves accountable for the application of the moneys agreeably to this association.
Article 8th.—That the agents, being accountable to the subscribers for their respective divisions, shall appoint the directors, treasurer and secretary, and fill up all the vacancies which may happen in these offices respectively.
Article 9th.—That the agents shall pay all the certificates and moneys received from subscribers into the hands of the treasurer, who shall give bonds to the agents, jointly and severally, for the faithful discharge of his trust; and also, on his receiving certificates or moneys from any particular agent, shal make himself accountable therefor, according to the condition of his bonds.
Article 10th.—That the directors shall give bonds, jointly and severally, to each of the agents, conditioned that the certificates and moneys they shall draw out of the treasury shall be applied to the purposes stipulated in these articles; and that the lands purchased by the company shall be divided among them within three months from the completion of the purchase, by lot, in such manner as the agents or a majority of them shall agree, and that on such division being made, the directors shall execute deeds to the agents, respectively, for the proportions which fall to their divisions, correspondent to those the directors may receive from the Commissioners of Congress.
Article 11th.—Provided, that whereas a sufficient number of subscribers may not appear to raise the fund to the sums proposed in the first article, and thereby the number of divisions may not be completed, it is therefore agreed that the agents of divisions of twenty shares each shall, after the seventeenth day of October next, proceed in the same manner as if the whole fund had been raised.
Article 12th.—Provided, also, that whereas it will be for the common interest of the company to obtain an ordinance of incorporation from the honorable Congress, or an act of incorporation from some one of the States in the Union (for which the directors shall make application), it is therefore agreed that in case such incorporation is obtained, the fund of the company (and consequently the shares and divisions thereof) may be extended to any sum, for which provision shall be made in said ordinance or act of incorporation, anything in this association to the contrary notwithstanding.
Article 13th.—That all notes under this association may be given in person or by proxy, and in numbers justly proportionate to the stockholder or interest represented.
These articles of agreement were unanimously adopted and subscription books were immediately opened. A committee was appointed, consisting of three members, to transact necessary business, and some other measures taken to advance the project of the association; but in spite of all the exertions made, there was but little progress in the affairs of the Ohio Company. When the next meeting was held—a little more than a year from the time of the first, that is, upon March 8, 1787—it was found that the total number of shares subscribed for was only two hundred and fifty. And yet, all untoward circumstances considered, that was probably a fair exhibit, and more than was expected. One active friend of the movement, General Tupper, was the greater part of the year in the west. The influence of the others was very largely counteracted by events of an alarming nature—the dissatisfaction which finally culminated in Shay’s rebellion. That civil commotion growing out of the imposition of heavy taxes upon the already impoverished people threatened for a time exceedingly dire results, but fortunately it was speedily quelled. It served as a startling illustration, however, of the great depression in New England, and of the desperation to which men can be driven by ill condition. Possibly the outbreak gave a slight impetus to the progress of the Ohio Company’s project, by way of increasing the disposition of some citizens to seek in the west a new home. General Tupper, whose immediate neighborhood was “deeply infected with the sedition,” returned from his second visit to the Ohio country in time to take a prominent part in subduing the revolt. The dawn of 1787 witnessed the pacification of the troubled country, but no marked increase in prosperity.
It was reported at the meeting held on the eighth of March at Brackett’s tavern in Boston, that “many in the commonwealth of Massachusetts, also in Connecticut, Rhode Island and New Hampshire, are inclined to become adventurers, who are restrained only by the uncertainty of obtaining a sufficient tract of country, collectively, for a good settlement.”
It was now decided to make direct and immediate application to Congress for the purchase of lands, and General Putnam, Dr. Manasseh Cutler and General Samuel H. Parsons were appointed directors and especially charged with this business. General Parsons had previously been employed to negotiate for a private purchase, had petitioned Congress, and a committee of that body had been appointed to confer with him. “To that committee,” says Dr. Cutler, “he proposed a purchase on the Scioto River,” but as the proprietors in Massachusetts “were generally dissatisfied with the situation and lands on the Scioto, and much preferred the Muskingum,” the negotiation was suspended. The directors now employed Dr. Cutler to make a purchase upon the Muskingum. It was considered desirable that the negotiations be commenced and the purchase consummated as soon as possible, as other companies were forming, the spirit of private speculation rapidly increasing, and there was a fear that the lands which the Ohio Company wished to possess would be bought by some other organization, or perhaps some part of them by individuals.
Just here the query arises: why were the New Englanders so anxious to purchase lands upon the Muskingum, rather than upon the Scioto, or elsewhere in the territory? To this question there are various answers. In the first place the greater part of the Federal territory was unfitted for settlement by the fact that it was occupied by the Indian tribes. None of these, however, had their residence in the lower Muskingum region, and it was only occasionally resorted to by them, when upon their hunting expeditions. Then, too, the people who proposed making a settlement beyond the Ohio were very naturally influenced by the proximity of well established stations upon the east and south of the river; they doubtless preferred the Virginians rather than the Kentuckians, as neighbors. The lower Scioto offered no more alluring an aspect than the lower Muskingum. The best bodies of lands on each river are fifty miles from their mouth. To penetrate so far into the interior, however, as the site of either Chillicothe or Zanesville would have been, at the time the Marietta settlement was made, was unsafe. The location of Fort Harmar, which we have seen was built in 1785–86, doubtless had its influence upon the Ohio Company. Thomas Hutchins, the United States geographer, who had formerly been geographer to the king of Great Britain, and had traveled extensively in the west, had said and written much in favor of the Muskingum country, and strongly advised Dr. Cutler to locate his purchase in this region. Other explorers and travelers had substantiated what Hutchins had said. General Butler and General Parsons, who had descended the Ohio to the Miamis, were deeply impressed with the desirableness of the tract of country now designated as southeastern Ohio, and the latter, writing on the twentieth of December, 1785, from Fort Finney (mouth of the Little Miami) to Captain Jonathan Hart, at Fort Harmar, said: “I have seen no place since I left you that pleases me so well for settlement as Muskingum.” General Benjamin Tupper doubtless added important testimony supporting that of Hutchins, Parsons, Butler and others. General Parsons, it has been asserted, became most strongly possessed of the belief that the Muskingum region was the best part of the territory, because one of the Zanes, who had been many years in the west, told him that the Scioto or Miami regions offered superior attractions, and he suspected that the old frontiersman artfully designed to divert attention from the Muskingum that he might have the first choice of purchase himself when the lands were put on sale. It is probable, too, that the prospect of establishing a system of communication and commerce between the Ohio and Lake Erie, by way of the Muskingum and Tuscarawas and Cuyahoga, and between the Ohio and the seaboard, by way of the Great Kanawha and the Potomac (a plan which Washington had thought feasible before the Revolutionary war), had its weight.
Alfred Mathews.