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Land, Lobbies, Railroads and the Origins of Duluth

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Land, Lobbies, Railroads and the Origins of Duluth MR. HARNSBERGER is a member of the history faculty in the University of North Dakota at Grand Forks. This article has been adapted from his unpublished study of Jay Cooke and the development of Duluth. Land, Lobbies, Railroads and the ORIGINS of DULUTH JOHN L. HARNSBERGER WHEN AMERICAN BUSINESS turned forts to implement this plan included a land westward in the decade after the Civil War, grant bill for the development of the Duluth it found that the course of empire followed harbor which would have given him and his a line of steel rails. Railroads led to land, associates a private empire at the bead of and land led to politics. The interplay of the lakes had the political climate of Minne­ these three factors is vividly illustrated in sota and the nation not brought about its the early development of Duluth, defeat. Northeastern Minnesota in the late 1860s Schemes for connecting by rail the water- was an area ready for settlement. At this borne commerce of the Great Lakes and the time, it attracted the interest of Jay Cooke, Mississippi River had their origin as early the Philadelphia financier, who observed as 1854. An abortive Minnesota land grant there a vast domain of timber, mineral, and law, passed by Congress in that year and agricultural resources. Easily accessible almost immediately repealed, contained pro­ through the Great Lakes, and little more vision for such a line.^ In 1857 the Minnesota than a hundred and fifty miles from the territorial legislature chartered the Nebraska head of navigation on the Mississippi, it and Lake Superior Railroad Company and seemed ripe for profitable exploitation by gave it a grant of swamp lands. This com­ Eastern and European capital. For nearly pany, like many another premature raihoad, twenty years a northern transcontinental never got beyond the paper stage. By 1861, railroad had been under discussion, -with an however, the exportation of small grains, outlet at the head of Lake Superior its logi­ particularly wheat, was becoming increas­ cal terminal, and there Cooke foresaw a ingly important to the economy of the state, great inland port, commanding a waterway and the need of central Minnesota for a which would link the resources of the North­ trade outlet to the East created pressures west with the industry of the East. His ef- which led to a legislative act reviving the company under a new name. The reorgan­ ized road, called this time the Lake Superior ^ United States, Statutes at Large, 10:302, 575. ^Minnesota, Special Laws, 1861, p. 201-213. and Mississippi Railroad, fell heir to the Federal laws of 1850 and 1860 granted to the swamp land grant of its predecessor.- Under various states the swamp lands within their borders. the active leadership of William L, Banning, See United States, Statutes at Large, 9:519, 12:3. September 1960 89 a St. Paul banker and real-estate dealer, a through the present communities of Pine group of Minnesota businessmen set out to City and Hinckley to the head of Lake Supe­ secure adequate funds for the new company. rior at Duluth. When Congress increased Since its swamp land grant of approximately the lands of all Minnesota railroads in 1856, 694,000 acres from the state was not in it­ the federal grant of the Lake Superior and self suflScient to attract Eastern capital, the Mississippi was raised to an estimated area promoters persuaded the St. Paul city coun­ of 960,000 acres. This, together with the cil to vote a subsidy of $250,000 to be raised state swamp lands, gave the road a total of by the sale of city bonds. If in addition the well over 1,600,000 acres — a small amount road could secure a federal land grant, the in comparison to the grants received by the St, Paul business group felt that it would transcontinental lines, but liberal consider­ stand a fair chance of attracting investors.^ ing the length of the road and the fact that Such a grant was certain to face vigorous it was to be built entirely within one state." opposition in Congress, primarily from the Approximately a third of the company's Wisconsin and Illinois railroads, which con­ acreage was in pine lands. Its most immedi­ trolled all transportation facilities between ate value was as a source of timber, both for Minnesota and the East in the early 1860s. construction of the road itself and for sale on Hostility was encountered also from several the market. In time, it was hoped, a connec­ Minnesota communities which had hoped tion would be made with the Sioux City to be terminals of a line from Lake Superior. Raihoad, and lumber could then be sent The charter of the Lake Superior and Mis­ through to the Missouri Valley, by-passing sissippi road specified St. Paul as its point competition with the large sawmills at Still­ of contact with the Mississippi River, arous­ water and Minneapolis.^ The raihoad pro­ ing jealousy in Minneapolis, St. Anthony, moters were also sanguine that lands cleared Anoka, and St. Cloud.* of timber would appeal to settlers and would command a higher price than uncleared gov­ To promote the introduction and passage ernment acres. In addition, the company of a land grant bill for "the construction of a raihoad from the city of St. Paul to the head of Lake Superior" a pressure group ^WiUiam W. Folwell, A History of Minnesota, was organized in Washington early in 1864 3:119n. (St. Paul, 1926); Sf. Paul Press, No­ under the leadership of Congressman Igna­ vember 21, 1863; Minnesota, Special Laws, 1864, tius Donnelly and Senator Alexander Ram­ p. 309—312. Some time later St. Louis County voted a subsidy of $150,000 to the Lake Superior sey of Minnesota. Such a bill was introduced and Mississippi Railroad. See Henry V, Poor, in the Senate, which passed it on March 10, Manual of the Railroads of the United States, and it later received the approval of the 1871-72, p. 116. ' R. J. Baldwin to Ignatius Donnelly, January House with an amendment providing that 25, March 3, 1864, Donnelly Papers, owned by the grant should be made to the state of the Minnesota Historical Society. Minnesota rather than directly to the Lake ^WiUiam P. Murray to Donnelly, December 21, Superior and Mississippi Railroad Company. 1863; DonneUy to Murray (copy), January 13, 1864, DonneUy Papers; Statutes at Large, 13:64. This amendment enabled the opponents of For a fuU discussion of this contest see Lester B, the line to make a last-ditch stand in the Shippee, "The First Railroad Between the Missis­ state legislature. The practical advantages sippi and Lake Superior," in Mississippi Valley Historical Review, 5:121-142 (September, 1918), of St. Paul as a transfer point prevailed in 'Statutes at Large, 13:526; Poor, Manual, 1871- the end, and the Lake Superior and Missis­ 72, p. 116. sippi won the day.^ 'Robert H. Lamborn to Jay Cooke, J, Hinckley Clark, and associates, November 3, 1869, Cooke The grant consisted of five alternate sec­ Papers, owned by the Historical Society of Penn­ tions of land on each side of the proposed sylvania in Philadelphia. The Minnesota Historical right-of-way, which was to follow a course Society has microfilm copies. Unless otherwise in­ dicated, Cooke Papers used in the preparation of parallel to the Wisconsin boundary and run this article are in the Pennsylvania collection. 90 MINNESOTA History A vietv of Duluth in 1871, .showing Minnesota Point and Superior Bay planned to develop townsites along the line for himself the prospects of northern Minne­ and to lay out a city at Duluth, thus sota and of the proposed railroad.^ greatly enhancing the value of the lands Cooke reached his destination dressed in affected. all the finery of an Eastern gentleman — "top hat, cloth shoes, long coat, colored IT WAS through Banning that Jay Cooke waistcoat, gold watch chain and stick" — became interested in the head of Lake Supe­ surprising the natives with his flamboyant rior and its projected railroad. As early as attire. From his headquarters at Superior, 1865 the Minnesotan, then president of the he explored Duluth Harbor in a canoe. As company, sought unsuccessfully to secure a traveler he admired the scenery, but as Cooke's backing. Though not a frontiersman a businessman he saw the possibilities of in the common sense of the term, Cooke had Duluth and of the proposed railroad, though long been aware of the possibilities offered the frontier village at the time had only by the West, and by 1866 he had acquired, about a hundred people. Its twenty crude through the agency of Banning, some in­ buildings, located on a strip of land between vestment in northern Minnesota pine lands. Lake Superior and the unbroken wilderness In June, 1868, the financier went by boat of northern Minnesota, included a school, from Detroit to the Duluth area to inspect a land office with little business, and the the lands he had purchased and to judge dwellings of a few hardy white men. Even within the state, the settlement was little "Henrietta M. Larson, Jay Cooke: Private Banker, 249 (Cambridge, 1936). known except by traders and fishermen of "Harlan Hatcher, The Great Lakes, 314 (New the Great Lakes region.^ York, 1944). Superior was estabhshed in the early 1850s by a group of Southerners as a "watering Upon returning to Philadelphia, Cooke place" and a land speculation scheme, but the began to consider seriously the financing of Civil War interrupted its growth. See George Fort the proposed railroad, and in the autumn Milton, The Eve of Conflict, 105 (Boston, 1934); of 1868 Jay Cooke and Company and E.
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