DANIEL WEBSTER’S WISCONSIN INVESTMENTS
I have received the Wisconsin History Bulletin[95] for August. It would be interesting to know just how much money Daniel Webster gave for lots in Madison, for lands throughout this state and Iowa, for capital stock in the railway company from LaFontaine and what the evidence of such payment is. Not that I am disposed to charge the godlike Daniel with graft, at least no more than his associates and compeers were chargeable with at that period.
W. A. P. Morris,
Madison, Wisconsin.
So far as we can ascertain, Webster’s investments, or speculations, in Wisconsin property were perfectly legitimate and not influenced by political considerations. In his own account thereof, after saying that he wished to resign, and was not permitted to do so, he says: “So, seei’g, then, that I must do something with a view to future means of liv’g I entered on Western investments, partly in company with Col. Perkins, partly in a company of which Gov. Cass was Chief, and partly on my own account. These investments were made by faithful & careful agents, principally in agricultural lands of excellent quality, in Ohio, Illinois, Michigan, & Wisconsin. Prospects of profit seemed fair, at the time, & I purchased as far as means & credit would go.”
George Wallace Jones, in his Autobiography, tells of walking along a street in Washington soon lafter the erection of Wisconsin Territory, of which he was congressional delegate. Webster overtook
him, invited him to his house, and entered into conversation with him on the subject of investments. Jones became one of Webster’s agents. In cooperation with Webster he made about $20,000 and Webster sold his holdings to the United States bank of Philadelphia for $50,000. Jones states that Webster owed him $15,000 when he died, but as he had made a good thing by him, he never pressed the debt.
With regard to the Madison investment, the amount should be $3,000 and not $5,000 (this was a typographical error). In the biography of Jones is a reference to a letter dated December 24, 1836 from Judge Doty speaking of the association of proprietors for Madison and stating that these were twenty-four in number, each of whom paid in $100. By February, 1837, the dividends on the sales were $170 a share. On the strength of this showing, Jones sold his share to Webster for “about $3,000.”
The only thing that looks like political influence is in connection with the entries of mineral lands in southwestern Wisconsin. Moses M. Strong, whose papers are in the Society’s possession, came to Wisconsin in 1836 as the agent of Hon. Henry Hubbard, United States senator from New Hampshire, and made large investments for him and some of his friends. Part of the entries made by Strong for Hubbard were upon reserved mineral lands, which were not open to general entry, but were leased by the government. Hubbard tried to get some decision, the precise nature of which is not evident, from the United States land commissioner, concerning these mineral lands, and in the course of his correspondence with Strong he mentions Webster’s name, and says he will see the commissioner. There is no evidence that this was in any way an improper proceeding or influence.
As George W. Jones was Webster’s agent in southwestern Wisconsin, Morgan L. Martin seems to have been his agent in the eastern part of the state. In the early part of 1837 Martin went east to be married and incidentally arranged what business he could. In New York he met Webster and interested him in the lands along Fox River and upon Lake Winnebago, describing the projected railroad from La Fontaine, a “paper” city on Fox River, to Winnebago City, another of like importance on the northeastern shore of Lake Winnebago. This railroad, if built, would have been
thirteen miles in length, and was planned to transport freight around the Winnebago Rapids at what is now Neenah. This La Fontaine Railroad Company was the first in the Territory to secure a charter, which was granted by the legislature at Belmont, December 3, 1836. Martin succeeded in firing the imagination of Webster by his description of the importance of the Fox-Wisconsin waterway, and March 24, 1837, Webster wrote him from New York to invest $5,000 in the stock of the railroad (Wisconsin Mss. 5C83). June 28, 1837 Martin replied (Ibid, 110) saying that the capital stock was $50,000 “of which we do not think it necessary to call in over one-half. Doty took 20. I put you down for 10 & took the balance myself. I conceived you would prefer that amount since it would only require to be paid the sum for which you authorize me to draw on you.” Martin goes on to discuss the liberal terms of the charter, which they were planning to have amended by still more liberal provisions at the next legislature. He discusses land grants along the right of way. The engineer they expect has not yet arrived. He closes with a cordial invitation to Webster to visit Green Bay and be his guest.