Ohio Company of Associates facts for kids
The Ohio Company of Associates, often called the Ohio Company, was a group of people who bought and sold land. Its members are known for being the first non-Native American group to settle permanently west of the Allegheny Mountains. In 1788, they started Marietta, Ohio. This was the first lasting settlement of the new United States in the Northwest Territory.
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Starting the Ohio Company
The Ohio Company was created in Boston, Massachusetts, in early March 1786. Key founders included Rufus Putnam, Benjamin Tupper, Samuel Holden Parsons, and Manasseh Cutler. They met to plan how to settle the land near the Ohio River.
In March 1787, Parsons, Putnam, and Cutler became directors. Winthrop Sargent was chosen as secretary. Later, James Mitchell Varnum and Richard Platt also joined the leadership team.
Working with the Government
The Ohio Company needed to buy a large amount of land from the government. Manasseh Cutler went to New York to talk with the Congress of the Confederation. Congress was the government of the United States at that time.
Cutler worked with William Duer, who was part of the U.S. Treasury. Duer and his friends were interested in seeing the western lands settled. Congress also needed money badly. Selling land was a good way to get it.
This led to important decisions for the new territory. The Northwest Ordinance, passed in July 1787, made it illegal to have slavery there. It also set aside land for public education and for supporting religious leaders.
Buying the Land
The Ohio Company's first big land purchase happened in October 1787. They agreed to buy 1,500,000 acres (about 6,000 square kilometers). This land was located where the Ohio and Muskingum rivers meet. It stretched from near present-day Marietta, Ohio to almost opposite Huntington, West Virginia.
The company paid $1 million using government securities. These securities were like special government IOUs. The agreement also set aside land in every township for public schools. Other land was reserved for religious uses and for a university.
The Ohio Company also had an option to buy more land. This second area was between the Ohio River and the Scioto River. However, this part of the deal was mostly for speculators (people hoping to make a quick profit). This group was called the Scioto Company. Their contract eventually ended because they didn't buy the land. The Ohio Company, however, had a real plan to settle the area.
The Ohio Company paid its first $500,000 installment. But they could not raise the second $500,000. So, they ended up buying a smaller amount of land. This was about 750,000 acres (3,000 square kilometers). When you add the land for schools and religious uses, the total was about 913,833 acres (3,698 square kilometers). This was called the First Purchase.
Settling 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 the Northwest Territory. Their first land purchase included parts of what are now Washington, Meigs, Gallia, Lawrence, and Athens counties.
Challenges and More Land
Settling the area was not easy. There were conflicts with Native Americans during the Northwest Indian War. One sad event was the Big Bottom Massacre. Because of these difficulties, Congress gave the Ohio Company an extra 100,000 acres (400 square kilometers) in 1792. This land, called the Donation Tract, was on the northern edge of their first purchase. It acted as a buffer zone to protect the settlers.
Many members of the company had army bounty warrants. These were like vouchers given to soldiers for their service. They could exchange these warrants for federal land. This added up to about 142,900 acres (578 square kilometers).
Later in 1792, the Ohio Company bought another 214,285 acres (867 square kilometers). This land was in what are now Morgan, Hocking, Vinton, and Athens counties. They used their bounty warrants for this Second Purchase. Unlike the First Purchase, this land did not have sections set aside for schools or religious uses. This area is also known as the Purchase on the Muskingum.
By 1796, the Ohio Company divided its shares among its members. It 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 |
See also
- Hildreth, Samuel Prescott – a historian who wrote about pioneers
- Historic regions of the United States
- Ohio Company Land Office
- Ohio Lands
