The keenest of all disappointments was the postponement of railroad building. A score or more of chartered companies could not borrow enough ready cash to pay for their surveys. A generous congressional act of 1857, engineered by Delegate Rice, had made the Minnesotians of all classes joyous. That act bestowed on the territory and expectant state a grant of public lands equal to nearly a ninth of its whole area, to aid in the building of railroads. It is probable that this benefaction was all the more willingly bestowed because the territory had three years before been deprived of a noble grant by no fault of her own. The act did not convey the lands to the state, but made the state a trustee for four different railroad “interests” each aspiring to build its portion of a system of roads coextensive with the state.
The legislature of 1857, in the extra session already mentioned, accepted the trust created by the congressional grant, recognized the four companies to construct each its part of the system, and pledged to each its allotted lands as they should be earned by the completion of successive twenty-mile stretches of road. With a bird in the bush the Minnesota people were childishly happy. They saw a thousand miles of railway as good as built, spreading population far and wide and carrying the produce of an empire to waiting markets.
It was a good fortune for the territory that the organic law gave it no power to run in debt. It was equally unfortunate that a corporation created by it could and did run in debt. In the same February of 1851 in which Delegate Sibley secured from Congress the reservation of the two townships of land to endow a university, the Minnesota legislature created the University of Minnesota, to be located at or near St. Anthony’s Falls. The act provided for a board of twelve regents to be elected by the legislature in joint session, in classes for six-year terms. The gentlemen immediately elected, among them Sibley, Ramsey, Rice, North, and Marshall, commanded, as they deserved, the confidence of the people. The board organized on the last day of May, 1851, and resolved to open a preparatory department as soon as possible. One of their number, Franklin Steele, gave a bunch of lots in St. Anthony’s Falls near the site of the well-known Winslow Hotel, later occupied by the Northwestern Industrial Exposition building; others subscribed money; and a few books were thrown in to be the nucleus of the library. In a wooden building 30 by 50 feet, two stories and a basement, the preparatory school was opened on November 26. It continued a useful existence till the close of 1854. By this time the regents, among whom there had been changes of personnel, became desirous to open the “university proper.” In that year they had located through competent experts several thousand acres of the lands reserved by Congress on the best pine in the Stillwater district. The lands they could not sell, but they did despoil them by selling the “stumpage,” and used the money as collected for university purposes. They bought the heart of the present campus, twenty-five acres, more or less, for $6000, paying cash $1000 and giving their notes for the remainder. The stumpage receipts were too small and came in too slowly to warrant large expenditures for development. On February 28, 1856, the legislature authorized the regents to borrow $15,000 on twelve per cent. bonds secured by mortgage on the campus; $5000 to pay the balance due on the campus, $10,000 for a building. In August of the same year the board, much deteriorated by a late election, voted by a majority of one to close a contract for a building to cost $49,000, to be completed within eighteen months. When a year later, almost to a day, the panic struck, the building was nearly complete and large sums were due the contractors. The sales of pine stopped and collections for previous sales ceased. The concern was bankrupt and so remained for nearly a decade. A paragraph of the state constitution, retained against no slight opposition, confirmed the location of the university and devolved all university lands and endowments then existing or to be thereafter granted on the “University of Minnesota.”
The closing year of Minnesota’s territorial existence was diversified by an Indian butchery, horrible indeed in its immediate incidents, but especially noteworthy for its contribution to later atrocities. For many years a renegade band of the Wah-pé-ku-te tribe of the Sioux had wandered in the Missouri valley under the leading of one Inkpaduta (Scarlet Point). In the spring of 1857 these Indians were hunting in northwestern Iowa, and on March 6 or 7 fell upon the little settlement of Spirit Lake in Henderson County, murdered some forty persons, as estimated, and carried four women into captivity. Marching on the little hamlet of Springfield, some fifteen miles to the north, in Martin County, Minnesota, they found but few victims, because a refugee from Spirit Lake had arrived before them. The news of these outrages did not reach Agent Flandrau at the Lower Sioux agency till the 18th. Upon his requisition, Captain Alexander Bee, commanding the little garrison at Fort Ridgely, with his company of infantry, led a lively but fruitless pursuit of Inkpaduta, who had gone off to the Missouri. It was well understood that so long as the miscreant held the four women, no punishment could be inflicted on him. In May two young annuity Sioux, who had been hunting westward, brought one of the women (Mrs. Markle) into the agency. They had bought her with their horses and guns, and asked $500 each as reward, which Agent Flandrau and Missionary Riggs paid, half in cash and half in a promissory bond of extraordinary character which the traders cashed. This generosity had its intended effect to call out volunteers for the rescue of the other captives. Two capable Christian Sioux were selected, furnished with transportation and plenty of Indian goods and sent out. After six days’ march they came upon the dead body of one of the women, and presently learned that another had been put to death. In a camp of Yanktons they found the fourth, Miss Gardiner, and bought her for two horses, seven blankets, two kegs of powder, a box of tobacco, and some trinkets. Only one half of the $10,000 appropriated by the Minnesota legislature was needed to cover the cost of these rescues.
The Indian authorities, local and national, now resolved to visit Inkpaduta with just punishment, and decided upon the plan of enlisting volunteers among the annuity Sioux to pursue and capture the scoundrel and his band. Few or none offered themselves. Summer came on and 5000 Indians had gathered about the agencies for the annual payment. A number of councils were held, in the course of which the agent threatened to withhold the payments until Inkpaduta had been brought in. This threat had some effect, but presents of blankets and provisions had more. At length, on the 22d of July, an expedition of 106 Indians and four half-breeds was started for the James River country. It returned August 3, bringing two women and a child as prisoners, but no Inkpaduta. In vain did Major Cullen, superintendent of Indian affairs for the territory, who had come to the Sioux agencies, insist that Inkpaduta should be brought in, and by the Indians themselves, and declare that there would be no payment of money, goods, or provisions till the murderers should be in his hands. The Sioux, although by this time on the verge of starvation, would not stir. They were sullen and defiant. A special agent sent from Washington advised the superintendent to make believe that the Indians had done all they could, and might therefore be paid off. It was late in September when the Indians got their money and goods and marched off to their fall hunts. They had had their way with the agents of the Great Father, and suspected that he was not so powerful as they had been told he was. He had not been able to run down Inkpaduta and his little band. What could he do against the great Sioux nation of many thousands?
The new constitution of Minnesota closed with a supplementary “schedule” of provisions temporary in nature. All territorial rights, actions, laws, prosecutions, and judgments were to remain in force until proper action under state authority. All territorial officers were to continue their duties until superseded by state authority. A referendum of the constitution was ordered for October 13 (1857), at which time all the officers designated by the constitution were to be elected under the existing territorial election law. Every free white male inhabitant of full age, who should have resided in the state for ten days before the election, was authorized to vote. Section four of the enabling act required the United States marshal, so soon as the convention should have decided in favor of statehood and admission, to take a census of the population. This was not completed during the life (forty-two days) of the convention. It being, therefore, impracticable to divide the state into congressional districts, it was made a single district. In the belief that the population must be near 250,000, provision was made for electing three representatives in Congress. The completed census yielded the disappointingly small total of 150,037. Governor Medary and two delegates were made a canvassing board.
While the constitution was acceptable to all, the two parties put forth all possible effort to capture the offices. The canvass showed the vote on the ratification of the constitution to be: Yeas, 36,240; nays, 700. The Democrats obtained a majority of the legislators and nearly all the state and national officers. The candidates for the governorship were Sibley and Ramsey, the former winning by the slender majority of 240 in a total of 35,340. The claim was made that this majority was obtained by irregularities in making the returns, but there was no contest.
The schedule had fixed the early date of December 3 for the assemblage of the legislature, in the expectation shared by all that within a few days thereafter Congress would admit the new state to the Union, and her senators and representatives elect to their seats. A half year, however, was to run by during which Minnesota, as described by Governor Sibley, hung like the coffin of the prophet of Islam between the heavens and the earth. The legislature met, December 2, 1857, and in joint convention, by the close vote of 59 to 49, decided to recognize Mr. Medary as “governor.” In his message he recognized the body as a state legislature. Still there was doubt about the legal status of the houses, and there was little desire to undertake business which might turn out to be illegitimate. The Republican members entered formal protests against any legislation. There was, however, one bit of business which the Democratic majority felt could not be postponed; and that was the election of two United States senators. That was virtually settled in caucus. Henry M. Rice, as everybody expected, was nominated without opposition. The second place, for the short term, went, after several ballotings, to General James Shields, who was a newcomer and little known in Minnesota. He had served with distinction in the Mexican War, filled many offices in his former state of Illinois, and served a term in the Senate of the United States. It was a bitter pill for such Democratic wheel-horses as Sibley, Brown, and Gorman to swallow. Franklin Steele never forgave Rice for failing, as he claimed, to throw the election to him. Shields was everybody’s second choice, and the expectation was that his personal influence in Washington would procure many good things for the state.