Chicago and the Old Northwest, 1673-1835 / A study of the evolution of the northwestern frontier, together with a history of Fort Dearborn

by Milo Milton Quaife

From 1808 until the beginning of the War of 1812 there were thus twelve factories in operation. At each was stationed an agent, or factor, and at most an assistant, or clerk, as well. The salaries of the former prior to 1810 ranged from $750 to $1,250, in most cases not exceeding $1,000; the pay of the latter from $250 to $650; in both cases subsistence was granted in addition.[736] In 1810 the superintendent of the trade estimated that of the total amount of $280,000, which had been invested in the business, $235,000 still remained; the loss in the capital invested to this date was therefore, in round numbers, $45,000.[737] The four-year period ending in 1815, on the other hand, in spite of the disturbance to trade which attended the operations of the War of 1812, produced a profit of almost $60,000.[738] Approximately three-fourths of this gain was swallowed up in the destruction, during the war, of the factories at Chicago, Fort Wayne, Sandusky, Mackinac, and Fort Madison; but this was the fortune of war and not in any way the fault of the system.

[736] Ibid.

[737] Ibid.

[738] Report of Crawford, Secretary of War, March 13, 1816, ibid., II, 26-28.

The establishment of a factory at Chicago was determined upon in the spring of 1805, and on March 19 Ebenezer Belknap of Connecticut was commissioned as factor.[739] The factory at Detroit was to be abandoned and the goods and furniture for the factor's dwelling to be removed to Chicago.[740] To supplement the stock of goods for the Indian trade removed from Detroit an initial invoice of new goods to the value of eight thousand dollars was ordered to be sent to Detroit for the Chicago factory.[741] Belknap's instructions shed much light upon the practice followed when a new factory was to be established. He was to receive a salary of $1,000 a year and in addition to this $365 in lieu of subsistence.[742] He was empowered to employ, if necessary, a "principal clerk" at a salary not to exceed $500; if a young man could be procured for the place at a salary of $200 or $300, this was to be done. When a new factory was established an allowance to the factor of $200 for household furniture and domestic utensils and $25 yearly for the same purpose after the first year was made. Since Belknap was to take over the outfit of the Detroit factory his initial allowance for this purpose was reduced to $100.

[739] Belknap's commission, Indian Office, Letter Book B, 69. In some cases two or more of these letter books are designated in the same way. In such cases the volume in question can be determined by taking account of the dates of the contents.

[740] Ibid., 72, War Department (unsigned) to Belknap, April 12, 1805; ibid., 438, Dearborn to John Johnston, June 3, 1805.

[741] Ibid., 68, John Smith to William Davy, April 12, 1805.

[742] Belknap's commission, ibid., 69; his instructions, April 12, 1805, ibid., 72.

The establishment of the Chicago factory was not unattended with difficulties. Munroe, the Detroit factor, was indisposed to surrender the public property in his possession, and much embarrassment was experienced on this account.[743] Scarcely had Belknap had time to proceed to his destination when warning came to the War Department that his character was not what it should be.[744] Our information concerning the difficulty is but scanty, but the outlines of the situation are clear. An investigation into the fitness of Belknap for the position was instituted,[745] and as a precautionary measure it was decided to appoint a "suitable character" as his assistant, with instructions to report faithfully to the War Department concerning the character and conduct of his superior.[746] Apparently the investigation confirmed the charges against Belknap, for before the end of November the choice of a successor to him was being considered,[747] and on December 31, 1805, the luckless factor's services at Chicago terminated.[748] He was superseded by Thomas Hayward, who had been acting as his assistant since the third of the preceding October. Belknap proceeded to Washington, and in a preliminary interview with his superiors gave such an account of himself as to imbue them with the belief that partisan rancor had been responsible for the charges preferred against him.[749] With this our information concerning the matter abruptly terminates, and we can only hope that the fuller investigation established his innocence of the charge against him.