Connecticut Land Company facts for kids
The Connecticut Land Company was a group of people who bought a huge amount of land in 1795. They wanted to sell this land to new settlers. This land was in a place called the Connecticut Western Reserve. This area is now part of Ohio.
After the American Revolutionary War, different states argued about who owned land to the west. The new United States government helped settle these arguments. Connecticut was given a large area of land in what is now northeastern Ohio. This land became known as the Western Reserve.
In 1795, the Connecticut Land Company bought about three million acres of this land. They planned to survey it and sell it to people who wanted to move there. In 1796, they started surveying the land and selling plots.
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Who Started the Company?
Fifty-seven rich and important men from Connecticut started the company. Oliver Phelps was the biggest investor and the main leader.
In 1796, another big investor, Moses Cleaveland, helped plan a new settlement. This settlement was on the banks of the Cuyahoga River. It later grew into the city we know today as Cleveland.
What Was the Company's Goal?
The Connecticut Land Company was created by private investors in 1795. Their main goal was to make money by selling land. They bought a large part of the eastern Western Reserve.
However, the company faced many problems. Poor management and political issues made it hard to sell land. This led to slow growth in the area. The company eventually failed in 1809.
Even though it didn't last long, the Connecticut Land Company was important. It helped develop the region. One of its biggest achievements was starting the settlement of Cleveland.
Important People in the Company
The company was owned by 35 different groups of buyers. These groups included 58 individual investors. Oliver Phelps was the most important person. He invested the most money and managed the whole project.
Another key person was Moses Cleaveland. He was one of the company's first directors. In 1796, he led the first survey of the Western Reserve. Moses Cleaveland also made a deal with the Iroquois people. They gave up their land claims east of the Cuyahoga River. He also founded the settlement named after him. Due to a map mistake, it later became known as "Cleveland."
How the Company Started
In 1795, the Connecticut Land Company paid the state of Connecticut $1.2 million. This money was for three million acres of its Western Reserve lands. The state used this money to pay for public education. This helped Connecticut improve its schools.
The land bought by the company was divided into 1.2 million shares. On September 5, 1795, the company made its rules. Each buying group got a share of the land based on how much money they invested.
The company wanted to make money by selling land to investors and settlers. Land was often sold many times before someone actually settled on it. Because land sales were slow, the company had to lower prices. They even gave away free land to encourage people to move there. These problems eventually led to the company's failure.
Why the Company Struggled
The Connecticut Land Company faced several problems.
Poor Management
One big problem was how the company was managed. They didn't have a good plan for selling the land. The company didn't even open a sales office in the Western Reserve. Without a strong sales effort, they struggled to sell land. By 1800, only about 1,000 people had settled in the region.
Political Problems
Another problem was political uncertainty. People weren't sure who had the right to govern the land. There were arguments between the Northwest Territory and Connecticut. They both claimed the right to control the land.
Also, the company wanted Connecticut to promise that the land titles were legal. But Connecticut refused to do this. Because of this uncertainty, many people decided not to settle there.
The U.S. government also didn't recognize the Western Reserve as part of the Northwest Territory until 1800. This meant settlers didn't get legal or military protection from the U.S. government.
The Quieting Act
On April 28, 1800, President Adams signed the Quieting Act. This law said that Connecticut had the right to govern the land. It also guaranteed that the land titles given by the Connecticut Land Company were legal. This law was supposed to encourage more people to settle there.
However, the company's poor management continued. So, not many new settlers came right away. The region didn't really start to grow until after the War of 1812.
The Company's End
Because of weak land sales and poor management, the Connecticut Land Company never made enough money. In 1809, just fourteen years after it started, the company went bankrupt. It was officially closed down.
All the remaining land was divided among the company's investors. At that time, the company still owed a lot of money.
