I have received the _Wisconsin History Bulletin_[95] for
August. It would be interesting to know just how much money
Daniel Webster gave for lots in Madison, for lands
throughout this state and Iowa, for capital stock in the
railway company from LaFontaine and what the evidence of
such payment is. Not that I am disposed to charge the
godlike Daniel with graft, at least no more than his
associates and compeers were chargeable with at that period.
W. A. P. MORRIS,
_Madison, Wisconsin_.
So far as we can ascertain, Webster’s investments, or speculations, in
Wisconsin property were perfectly legitimate and not influenced by
political considerations. In his own account thereof, after saying
that he wished to resign, and was not permitted to do so, he says:
“So, seei’g, then, that I must do something with a view to future
means of liv’g I entered on _Western investments_, partly in company
with Col. Perkins, partly in a company of which Gov. Cass was Chief,
and partly on my own account. These investments were made by faithful
& careful agents, principally in agricultural lands of excellent
quality, in Ohio, Illinois, Michigan, & Wisconsin. Prospects of profit
seemed fair, at the time, & I purchased as far as means & credit would
go.”
George Wallace Jones, in his _Autobiography_, tells of walking along a
street in Washington soon lafter the erection of Wisconsin Territory,
of which he was congressional delegate. Webster overtook him, invited
him to his house, and entered into conversation with him on the
subject of investments. Jones became one of Webster’s agents. In
cooperation with Webster he made about $20,000 and Webster sold his
holdings to the United States bank of Philadelphia for $50,000. Jones
states that Webster owed him $15,000 when he died, but as he had made
a good thing by him, he never pressed the debt.
With regard to the Madison investment, the amount should be $3,000 and
not $5,000 (this was a typographical error). In the biography of Jones
is a reference to a letter dated December 24, 1836 from Judge Doty
speaking of the association of proprietors for Madison and stating
that these were twenty-four in number, each of whom paid in $100. By
February, 1837, the dividends on the sales were $170 a share. On the
strength of this showing, Jones sold his share to Webster for “about
$3,000.”
The only thing that looks like political influence is in connection
with the entries of mineral lands in southwestern Wisconsin. Moses M.
Strong, whose papers are in the Society’s possession, came to
Wisconsin in 1836 as the agent of Hon. Henry Hubbard, United States
senator from New Hampshire, and made large investments for him and
some of his friends. Part of the entries made by Strong for Hubbard
were upon reserved mineral lands, which were not open to general
entry, but were leased by the government. Hubbard tried to get some
decision, the precise nature of which is not evident, from the United
States land commissioner, concerning these mineral lands, and in the
course of his correspondence with Strong he mentions Webster’s name,
and says he will see the commissioner. There is no evidence that this
was in any way an improper proceeding or influence.
As George W. Jones was Webster’s agent in southwestern Wisconsin,
Morgan L. Martin seems to have been his agent in the eastern part of
the state. In the early part of 1837 Martin went east to be married
and incidentally arranged what business he could. In New York he met
Webster and interested him in the lands along Fox River and upon Lake
Winnebago, describing the projected railroad from La Fontaine, a
“paper” city on Fox River, to Winnebago City, another of like
importance on the northeastern shore of Lake Winnebago. This railroad,
if built, would have been thirteen miles in length, and was planned to
transport freight around the Winnebago Rapids at what is now Neenah.
This La Fontaine Railroad Company was the first in the Territory to
secure a charter, which was granted by the legislature at Belmont,
December 3, 1836. Martin succeeded in firing the imagination of
Webster by his description of the importance of the Fox-Wisconsin
waterway, and March 24, 1837, Webster wrote him from New York to
invest $5,000 in the stock of the railroad (Wisconsin Mss. 5C83). June
28, 1837 Martin replied (_Ibid_, 110) saying that the capital stock
was $50,000 “of which we do not think it necessary to call in over
one-half. Doty took 20. I put you down for 10 & took the balance
myself. I conceived you would prefer that amount since it would only
require to be paid the sum for which you authorize me to draw on you.”
Martin goes on to discuss the liberal terms of the charter, which they
were planning to have amended by still more liberal provisions at the
next legislature. He discusses land grants along the right of way. The
engineer they expect has not yet arrived. He closes with a cordial
invitation to Webster to visit Green Bay and be his guest.
The negotiation seems to have ended at this point. The panic of 1837
came on and Martin was badly hampered by his connections with the bank
of Green Bay and by his large speculative enterprises. No action was
ever taken on the railway charter, and in all probability Webster was
never called upon for his subscription to the company’s stock.
[95] This contained a short article on “Daniel Webster a
Wisconsin Investor.”