The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1858-05-11

accepted CN8e0 contract COPY
Of which we herewith transmit for your action thereon
II may be proper here to state that at the time the
contract OF sale made between the agents OF the
government and Franklin Steele, an arrangement
existed by which DR.. Archibald Graham, of Virginia,
John c. Mather and Rihcard Scheu and wife of New
York, were to be recognized, in conjunction with
Mr.. Steele, as joint owners Of the property when
purchased their respective interests were arranged
as follows Steele TO be entitled to one full third;
Graham, Mather Scheu, and wife, the remaining
twothirds; the parties to pay the purchase money
in proportion to their interests in the property. The
contract was made with Steele alone and the proof
is conclusive that the agents of the government
ignorant at the period of it's execution and for
some time subsequent thereto, that any person was
concerned or interested in this purchase except
Franklin Steele, the individual with whom the con-
tract was made
We now approach the last question arising upon
this evidence which requires our examnation-that
relating the value Of this property and the price
at which it was sold.
Was it sold by the commissioners for an adequate
All those who have any recollection of the defa-
matory publications which, during the last summer
and fall followed the contract of sale, will remem
Der how pertinaciousiy the idea was sought to be
impressed upon the public mind that property be-
longing to the government worth one million and a
half of dollars had been recklessly sacrificed for the
sum of 800 ,0O0 II was in vain that correct expo
mitted to the public; in vain that reference was
made to all the previous land sales of the country,
and the fact demonstrated that this reservation had
sold for higher price per acre than any parcel of
except, alone the Fort Dearborn reserve lying with
in the corporate limits of the city of Chicago; no
check could be given to the remorseess spirit of de-
traction, and the public mind continued to
est representations of the exaggerated value
of this property. At the opening Of Con-
gress q committee of investigation was asked,
amongst other matters, to ascertain the real value
hat
corded. In the progress of the investigation thus
ordered thirtyfour witnesses were examined touch
ing its value, of which number eight only have ex-
pressed the opinion that 1t sold below its true value
the property, in their judgment, was fairly worth
twentyfour have expressed the opinion that it sold
beyond its fair value.
That there should have been found some indivi-
duals ready to place an extravagant estimate upon
the Fort Smelling property is not at all remarkable.
It is well known that in the old and we'll settled
States, where property has acquired fixed and
stable value itgated case rarely arises before the
courts, involving the value of piece of property,
and especially if the passions and feelings of neigh
borhood have become at all excited in relation to it,
that most striking discrepancy of opinion may not
be observed. How much more might this be ex-
pected to be the case in newly settled Territory,
where the value of all property is in great measure,
speculative-where time has not yet established any
standard by which its real worth may be accurately
adudged and where, in this general condition of
the other with every development calculated to
excite hope or dependency! Still more might the
widest extravaganza of opinion be anticipated
where the subject of the inquiry is a property so
guine and imaginative minds, that 1t may, at some
future day, be the site of prosperous city. Town
and city locations are capital prizes in the grand
lottery of western land speculation. The rapidty
with which cities have sprung up, as by enchant-
ment, in some favored spot upon the lakes upper
Mississippi, the sudden and enormous wealth which
individuals have acquired by their successful loca-
ton, have had their usual effect to nfame the ina
gination and to direct all thoughts to the same
modes of profitable investment, Scarcely locality
can now be found on lake or river, or other water
course that its deluded proprietor does not fondy
dream that IL may, at some future day, prove the
site of fourishng city.
1t is not surprising, therefore, that some of the
witnesses examined in this case, seeing the rapid
growth Of such places az st. Paul, Minneapolis, and
st. Anthony, and imagining that Fort Smelling pos.
sesses equal superior advantages for city, have,
in their evidence expressed an extravagant opinion
Of its value. There are many facts connected with
Fort Smelling to favor such delusion Its situation
rivers-the impression for many years Sentertained
that such would be its future destinyits beautiful
location, its picturesque and striking scenery, the
embryo, were well calculated to dazzle the magma.
ton and blind them to the irreyersibe realities
around it.
II win thus be seen, by an inspection of the &C.
verstes are to lie in the testimony of the wit
nesses bearing upon the value of the property,
suits mainly from the impression which they have
respectively received as TO its eligibility as site for
a city, and believing such TO be its future destiny,
they think that element in its speculative value was
not sufficiently considered by the commissioners in
the price asked and obtained for the property.
The undersigned being without the benefit of any
personal knowledge of the locality in question and
not being gifted with the prophets wand 70 remove
the curtain which conceals the future, will not ven
ture to express personal Judgment as to what may
he the future destiny of this point at the confluence
of the Minnesota and Mississippi rivers But IT, upon
an occasion like the present, they 10 be controlled
In their opinions by the testimony laid before them,
they have no difficulty In saying that both the
weight Of opinion and the weight Of facts largely
preponderate against the idea that the Fort Smelling
reserve can ever be the site OF city.
The witnesses who have expressed the opinion
that the value of the is enhanced by the ad
vantages Of its position as town site are Hon.
Robert Smith. NJ. G. Smith, Adam ID. Stuart. T. G..
Hall, r. h. s. Todd. Cyrus Aldrich, Captain George
Thorn, Captain T. II. Simpson, and Matthew
johnson.
The witnesses who think that difficulties of an in.
supeabe character exist TO its becoming the site Of
a city are the Hon. 8. A. Douglas Hon. II. NJ. Rice,
Hon. Charles T. Stuart, Hon George l.. Becker, Col.
Lorenzo Thomas, us. A.; Colonel Francis Lee,
u: A.; Hezekiah Cullum, Madison. Sweetzer,
Moncure. Francis J. Rosser, Capt. j. A. Whithall,
US A.; VIM. J. Cullen, II. l.. Dousman, J. w.
Lynde S. A. Medsry, A. NJ. Fridley, b. w. Brisbois
Chas. III. Oaks, VIM. II. Forbes, and Geo. Culver.
The grounds for their opinions set forth by these
last named witnesses strike a. conclusive.
The Fort Smelling reserve Is situated about six
miles north of st. Paul, growing and fourishing
city Of 1000 inhabitants and about eight miles
south of st. Anthony and Minneapolis two prosperous
manufacturing towns, each with population at this
time Of from eight 10 ten thousand inhabitants.
Whatever may have been the advantages Of Fort
Smelling az q site for city, concur with the Hon.
stephen A. Douglas that IL II too late TO start
a new town 30 near TO those with q hope Of fairly
competing with them. The reservation Is too near
those other towns to become their rival and too Gar
off TO be laid out as addition to either Of them"
Many Of the other witnesses exhibit facts which,
10 great extent destroy the idea that rs natural
position ever adapted Il for town.
Hon. Henry ". Rice states:
In the early days Of the settlement Of that region the
only boats when ran upon the Upper Mississippi the
smallest class When the Gaena packets commenced