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Ohio Company of Associates facts for kids

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Ohio Lands
Map of Ohio showing the boundaries of the Ohio Company Purchase on the lower right.
ForTheOhio
Pioneer wagon

The Ohio Company of Associates, also known as the Ohio Company, was a special group of people who bought and sold land a long time ago. Its members are famous for being the first non-Native American group to live permanently west of the Allegheny mountains. In 1788, they started a town called Marietta, Ohio. This was the first lasting settlement of the new United States in the area known as the Northwest Territory.

How the Company Started

The Ohio Company was created between March 1 and March 3, 1786. Four important people, Rufus Putnam, Benjamin Tupper, Samuel Holden Parsons, and Manasseh Cutler, formed it in Boston, Massachusetts. They met at a place called The Bunch-of-Grapes tavern. There, they talked about setting up new towns near the Ohio River.

Later, on March 8, 1787, Parsons, Putnam, and Cutler were chosen to lead the company. Winthrop Sargent became the secretary. More leaders joined later, like James Mitchell Varnum and Richard Platt. After some leaders passed away, others like Griffin Greene and Robert Oliver took their places.

Working with the Government

Manasseh Cutler was sent to New York to talk with the Congress of the Confederation. This was the government of the United States at the time. Cutler's job was to help the company get a claim on a large piece of land.

While in New York, Cutler worked with William Duer. Duer was an important person in the U.S. Treasury. He and his friends were investors who wanted to see people settle west of the Appalachian Mountains. The government really needed money back then. Selling land was a great way to get it.

Because of these land sales, the government also made some important rules. These rules were put into the Northwest Ordinance. They said that slavery was not allowed in the new territory. They also set aside land for public education (schools) and for supporting religious leaders.

The Northwest Ordinance and Land Deals

The Ohio Company's land purchase was made possible by two main things. First, the "Ordinance for the Government of the Territory of the United States Northwest of the River Ohio" was passed on July 13, 1787. This is usually called the Northwest Ordinance. Second, a law on October 23, 1787, allowed Congress to sell large areas of public land.

On October 27, 1787, the Ohio Company's land deal was finalized. Their first contract was to buy 1,500,000 acres (about 6,000 square kilometers) of land. This land was located where the Ohio and Muskingum rivers meet. It stretched from near present-day Marietta to almost opposite Huntington, West Virginia. They paid $1 million using government papers. These papers were worth about 12 cents for every dollar in actual money.

The contract also had special rules. One section of land in every township (a small area of land) was set aside for public schools. Another section was for religious uses. Two whole townships were saved for a university.

Ohio-scioto lands
The land the Scioto Company wanted to buy is shown in red. The land the Ohio Company wanted to buy (1,500,000 acres) is in blue. The land the Ohio Company actually bought is in green, including the First Purchase, Second Purchase, and Donation Tract.

The company also had an option to buy more land. This was between the Ohio and Scioto rivers. However, this second option was mostly for a different group called the Scioto Company. The Scioto Company was more interested in making quick money from land sales. Their deal didn't work out, and they never bought any land. The Ohio Company, however, had a real plan to build settlements.

The Ohio Company paid its first $500,000. But they couldn't raise the second $500,000. So, they ended up buying a smaller amount of land. This was about 750,000 acres (about 3,000 square kilometers). Plus, they got the two townships for colleges and the special sections for schools and religious uses. This first purchase totaled about 913,833 acres (about 3,698 square kilometers).

Building Marietta, Ohio

In 1788, General Rufus Putnam designed the layout for Marietta. This became the first permanent settlement in what is now the state of Ohio. The Ohio Company sent pioneers from New England to this new territory. Their first land purchase included parts of what are now Washington, Meigs, Gallia, Lawrence, and Athens counties.

Challenges and More Land

Life was not always easy. There were difficulties with Native Americans during the Northwest Indian War. One sad event was the Big Bottom Massacre. Because of these problems, Congress gave the company an extra 100,000 acres (about 405 square kilometers) in 1792. This land was on the northern edge of their first purchase. It was meant to act as a protective barrier. This area is called the Donation Tract.

Many members of the company had special papers from the army. They could trade these papers for federal land. This added up to about 142,900 acres (about 578 square kilometers).

Later in 1792, the Ohio Company bought another 214,285 acres (about 867 square kilometers). This land was in what are now Morgan, Hocking, Vinton, and Athens counties. This second purchase did not include land set aside for schools or religious uses. It is also known as the Purchase on the Muskingum.

By 1796, the Ohio Company divided its shares among its members. It then stopped being an active land company.

Land Area Acres Hectares
First
Purchase
913833 369816
Second
Purchase
214285 86718
Donation
Tract
100000 40469
Total 1228118 497002

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