HISTORY OF BAY COUNTY

BLOOM AND BLIGHT OF LOWER SAGINAW

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At this time the whole of the west bank of the river, from the mouth of the Kawkawlin to Willow Island, was an Indian reservation. John Riley’s reserve was the only other eligible point on the east side of the river, near its mouth, for a town. The late James Fraser, who had become one of the most noted land speculators of this region, was living at Saginaw; or, rather his family were, while his hoe was I the saddle. He was quick to find out property for which money could be made, and after the Portsmouth project was started he matured a plan for purchasing the Riley Reservation, upon which to lay out a town. His plan was to purchase the reservation, and organize a stock company which should lay out and build a town. John Riley, who was then living near Port Huron, was applied to for the purchase. His father had always advised him not to sell until he could get a large price for his land, and he refused to make sale upon any terms without the advice and consent of his father, who was then, and had been for many years, postmaster at Schenectady, N. Y. The elder Mr. Riley was sent for, and late in the Summer of 1836 he met John at Detroit and advised him to sell. Mr. Riley at this tie was over seventy years of age. The purchase was made by several prominent men in Detroit, the consideration being $30,000. Subsequently, the stock company was organized, as first contemplated. And was known as the “Sagina Bay Company.” The agreements and members of this company are set forth in the following instruments, which we copy in the belief that they should be given in this connection especially as the history of this company has frequently been incorrectly told:

ARTICLES OF ASSOCIATION.

Whereas, The lands and premises in the deed hereunto annexed, are held by Frederick H. Stevens, Electus Backus and John Hulbert, as trustees fr the use and benefit of the following owners of said lands in the shares and proportions mentioned in said deed, viz.:-Stevens T. Mason, Frederick H. Stevens, Andrew T. McReynolds, James Fraser, Horace Hallock, Electus Backus, Henry R. Schoolcraft, John Hulbert, Henry K. Sanger and Phineas Davis, and, whereas, it is the object, design, desire and intention of the said parties named to form a joint stock company in reference to said real estate, to improve the same, and lay out the town upon said land, and to dispose of lots therein. Now, therefore, be it known, in order more effectually to carry into successful operation the object and intention of said owners, to secure to each his just rights and privileges, and to promote harmony and facilitate the general operations of said company, we do hereby adopt the following articles of association for the government of said company, hereby mutually binding and pledging ourselves, our heirs, executors, administrators or assigns, to the faithful performance thereof, as follows:

ARTICLE 1. The name and style of said company shall be the “Sagina Bay Company.”

ARTICLE 2. The entire business, management and control of said company shall be, and the same is hereby entrusted and submitted to the management and direction of a board of seven directors, one of whom they shall elect president, who shall be stockholders in this company, and shall be elected by the stockholders as hereinafter provided; who shall hold their offices for one year, and until their successors be chosen; four of whom shall form a quorum for the transaction of business; who shall have power to survey and lay out a town on said lands, and to cause the survey to be signed and acknowledged and recorded by the trustees, and to make such improvements on said real estate, or any part, as to the may seem advisable, and to sell lots in said town when so laid out; also for us and in our name, to call upon the trustees a foresaid to convey all or any of said premises in such divisions or subdivisions and at such times and to such persons and with such covenants and agreements as they may think proper and my direct; also to appoint an agent or attorney who shall at all times act under the immediate directions and control of said directors, and at their pleasure to revoke said power or agency and appoint another in his stead; said directors shall also appoint a treasurer, who shall be under their immediate control and direction, who shall give bond with approved security in the penal sum of $25,000. Conditions, that said treasurer shall keep a faithful and accurate account of all receipts and disbursements and pay over all moneys when required to do so for the purpose of distribution or expenditure. It shall be their duty, and they are thereby authorized, empowered and required to employ some suitable person as secretary, whose duty it shall be their duty, and they are hereby authorized, empowered and required to employ some suitable person as secretary, whose duty it shall be to record in a book provided for that purpose , all acts and doings of said directors, or the stockholders of said company, and all transfers of shares in the joint stock, which said book shall be preserved and be open to the examination of all persons interested. Said directors shall also have power to fill any vacancy that may occur in their board by death or otherwise, which appointment shall continue until another shall be elected to fill the vacancy by the stockholders.

ARTICLE 3. The said trustees and their successors shall act in all respects according to the direction of said board of directors. In case any one or more trustees shall decline or omit to act in conformity with such directors he shall be deemed to have resigned, and all vacancies occurring by death, resignation to act, otherwise, shall be filled by the board of directors at their next regular meeting or at any special meeting for the purpose called.

ARTICLE 4. The property above described being the capital

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Stock of said company, shall be divided into two hundred and forty shares, and the evidence shall be a certificate, particularly describing the shares of the holder and the manner in which the same shall be transferable which certificate shall be registered in a book kept for the purpose, signed by the president and countersigned by the secretary, and shall be assignable by an endorsement, and bear date and time when the same shall be made. After being registered by the secretary, it shall entitle the holder thereof to the shares of stock therein mentioned, and the benefit and profit to result there from; and each and every stockholder shall be entitled to one vote for each share of stock, which he may own, on all business relating to said company.

ARTICLE 5. The first regular meeting of the stockholders of this company shall be holden on the first Tuesday of January, 1837, for the election of directors to serve one year, and shall annually thereafter meet on the first Tuesday of January for the election of directors, and to transact such other business as may be necessary to be done, and until the election for 1838, Stevens T. Mason, Frederick H. Stevens, Andrew T. McReynolds, Horace Hallock, Electus Backus, Henry R. Schoolcraft and John Hulbert shall be, and are hereby constituted directors. At all meetings each owner may appear and vote, in person or by proxy, with written authority. Should any cause prevent a meeting on the day above specified, or should a special meeting for that or any other purpose be requisite, it may be called by any person or persons owning or representing fifty shares of the capital stock of said company by giving notice for ten days previous in any paper printed in the city of Detroit.

ARTICLE 6. At any such meeting a majority of the whole stock shall form a quorum for doing business.

ARTICLE 7. All shares in said company shall be deemed personal property.

ARTICLE 8. No act of the directors shall be binding on the company unless four of the board concur therein.

ARTICLE 9. Two-thirds of the stockholders shall have power at any time to restrain, enlarge,, or entirely abolish the power thereby given to said directors or trustees.

ARTICLE 10. That as soon as there shall be in the treasury of said association a surplus of $6,000 or upwards, after payment of all claims and liabilities against, incurred by or made by said company by reason of the premises, and half-yearly afterwards the said board of directors shall declare and make a dividend among the stockholders thereof in proportion to their respective shares and interest therein, until said trust is would up, which dividends shall be made payable at the Michigan State Bank, in the city of Detroit, of which they shall give notice from time to time.

ARTICLE 11. And it is hereby further declared that for the more convenient transaction of business, Frederick H. Stevens is, and shall be, the acting trustee of said company, having full power to sign, seal, deliver and acknowledge all deeds for the use and benefit of said company, and the said John Hulbert and Electus Backus are declared to be co-trustees to act in case of the death, inability, or refusal of the said Frederick H. Stevens to sigh, seal and deliver and acknowledge the said deeds aforesaid, provided that the said co-trustees shall first execute to the said Frederick H. Stevens a power of attorney authorizing him to act as sole trustee for the purpose aforesaid. In witness thereof and of the faithful performance and observance of the foregoing articles of association, as well by the said parties whose names are herein inserted as by their legal representatives or assigns they have severally affixed their seals and set their hands, the day and year first above written.

Executed February 9, 1837.

DEED IN TRUST

This Indenture, made this twenty-third day of January in the year of our Lord, on thousand eight hundred and thirty-seven, between Stevens T. Mason, Frederick H. Stevens and Abby E., his wife, Electus Backus and Mary L., his wife, Horace Hallock and Elizabeth, his wife, Henry R. Schoolcraft and Jane J., his wife, John Hulbert and Maria E., his wife, James Fraser and Elizabeth, his wife , Andrew T. McReynolds and Elizabeth ., his wife, Henry K. Sanger and Caroline, his wife, Phineas Davis and Abigail, his wife of the state of Michigan of the first part and F. H. Stevens, John Hulbert and Electus Backus, of the state aforesaid of the second part. Whereas, the said parties of the first part stand seized and possessed as Tenants in common of all that certain pieces or parcel of land known and described as follows:--Beginning on the east bank of the Sagina River at the northwest corner of the John Riley Reservation, being also the southwest corner of the Nabobash Reservation; thence east by the north line of said Riley Reservation 35.82 chains; thence south three degrees west, so far that a line running thence north eight seven degrees west and thence northerly by the courses of river to the place of beginning shall cotain two hundred and forty acres in the following individual proportions and shares, respectively, to wit:--The said Stevens T. Mason of two sixteenths, Frederick H. Stevens of four-sixteenths, Electus Backus of one-sixteenth, Henry R. Schoolcraft and John Hulbert of one-sixteenth, James Fraser of one-sixteenth, Andrew T. McReynolds of four-sixteenth, Henry K. Sanger of one-sixteenth and Phineas Davis on one-sixteenth, and have agreed to associate themselves together and form a company under the name and style of the Sagina Bay Company, for laying out a town on said tract, and for other purpose under the conditions, limitations and agreements set in the Articles of Association hereunto annexed the said articles being hereby declared a part and parcel of this indenture for the completion thereof, and more fully to carry into effect their intentions as set forth in said Articles of Association, have severally named, constituted and appointed the said Frederick H. Stevens and Electus Backus as trustees, to act in behalf of all the above parties of the first part in holding, managing and conveying all the real estate belonging to them. Now this indenture witnesseth that the said several parties of the first part, for the is consideration of the premises and object herein before declared and the agreements, conditions and limitations aforesaid, and in further consideration of the sum of one dollar, to them well and truly paid, by the party of the second part, and receipt whereof is hereby acknowledged, have severally, according to their respective estates, herein granted, bargained, sold and conveyed, and by these presents do grant bargain, sell and convey unto the said arties of the second part, and to the survivor of them and to the successors and assigns, of said parties of the second part, and to the survivor of them and to such persons, his or their successors or assigns or the survivor of them, may at any time hereafter be constituted or appointed pursuant to the Articles of Association hereinafter set forth and referred to, all the above described pieces or parcels of land, premises and every of them, together with all privileges hereditaments and appurtenances thereunto belonging, and all the right, title, interests properties, and demand of the said parties of the first part, and each of them therein and thereto respectively. To have and to hold, te said bargained premises and every part thereof as aforesaid unto the said parties of the second part, and the survivor of them, their, and his, successors and assigns and the survivor the them and unto such others and additional trustee or successors as aforesaid, their and his successors and assigns forever, in trust for themselves and the said parties of te second part, subject to and upon the trust, limitations and conditions following, and to no other use, intent, or purpose. That is to say: the said Frederick H. Stevens, John Hulbert and Electus Backus, the survivors

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of them and such successors of them as aforesaid, and the survivor or successors of them, shall hold the said described lands and premises and other, hereby conveyed as trustees for themselves and the other several cestui que trusts as aforesaid and their legal representatives, according to their respective shares and interests therein, under the subject to the several provisions agreements, limitations and conditions contained within said Articles of Association which are hereunto annexed as part of this indenture, and shall do and perform all legal acts, of every kind, conformable to the said articles, and necessary to carry into effect the provisions thereof and make and execute all deeds and conveyances of sale of any part of the aforesaid lands and premises, pursuant to the requirements of the board of directors in said articles contained. Ant it is hereby declared all the aforesaid lands and premises shall be deemed joint stock and said company to be held and subject, and under and in conformity with the present articles of association with all amendments and alterations to be made therein and thereto, pursuant to the provisions in that behalf contained. And it is further declared and agreed that the said trustees, as well as those hereby created by this indenture, their successors and survivors of them and those hereafter to be chosen, shall derive no estate nor title to the said lands and premises by reason of this or any future conveyance, beyond a mere legal estate for the purpose of giving effect to the resolutions of the said board of directors, and that the said trustees, the survivors or survivor of them and their successors and assigns and said all other trustees, their successors or assigns the survivors or survivor, shall be bound to do all such legal acts and make and execute all such legal assurances of any part of the property belonging to said company, as the said board at its proper costs shall require. Provided the members of the said company shall be held bound for every personal covenant made or liability incurred in the execution of said trust, in pursuance of the articles aforesaid, and it is fully understood that the refusal of all or any of the trustees now or hereafter to be appointed, their successor or successors, assign or assigns, to perform such acts or make such assurances as aforesaid, shall be taken and deemed as a resignation, and the legal estate heretofore vested in him or them shall forever cease and determine, and be vested in the survivor of the said trustees, and in case of vacancy occurring from time to time among the said trustees, by death or resignation, or otherwise, the survivor or successor of them shall in all such cases hold the estate hereby created and conveyed, and be capable of doing legal acts until a new trustee is named, pursuant to the provision in that behalf in said articles of association contained, and until such new trustee or trustees shall be appointed.

The foregoing instrument was executed February 11^th, 1837.

This company caused 240 acres of this purchase in the northwest portion on the river to be surveyed and platted for a town, and named it Lower Saginaw. The boundaries of this embryo city were the present Woodside Avenue, the Saginaw River, a line about 400 feet south of and parallel with Tenth Street, and a line 100 feet east of and parallel with Van Buren Street.

It would seem that this formidable company had dreams of wealth as great as the fabulous price they paid for the land, for they commenced making extensive improvements to induce capitalists to invest in this new city by building a dock and warehouse, and a large hotel was framed and lumber provided for its completion , and yet the plans projected were but partially developed.

The finance bubble had swollen to the fullest extent about this time all over the West and East; the wild mania for speculation had culminated in the suspension of specie payment, because of the run upon all the banks for the specie with which o purchase the United States lands. This company were unable to “stand from under,” and were thus crushed in all their dreams of wealth, in the greatest crash in the finances this country ever knew. About the only one of the original company who survived, was James Fraser, whose race with Lower Saginaw was not yet run. After 1838 no further active operations were carried on by the company as first organized.

At Portsmouth, several sales of village lots had been made, and during the winter of 1836-37 a saw-mill was built by Judge Miller, B.K. Hall and Cromwell Barney, and a postoffice established. The financial revulsion visited the same fate upon 5hiw place as befell its neighbor and the glowing prospects of both were enveloped in darkness. From this time on the operations at these two points are told in the history of Bay City.

After the great financial crash the Legislature of Michigan passed a general banking law, afterward known as the “Wild Cat” system, which was intended to bridge over the “chasm,” but it only plunged the people into a deeper one. There were two banks projected to be organized under the law above referred to, and located within the present limits of Bay City, to-wit: - The Commercial Bank, of Portsmouth, to be located at Portsmouth, and the Saginaw County Bank, to located at Lower Saginaw. A banking house was built for the Saginaw County Bank, and bills were engraved for each of the banks, but none were put in circulation except some of those of the Saginaw County Bank that were stolen while in transit from the engravers in New York, and the names of fictitious officers signed to them. However, they were just as good as if they had been regularly issued under the law. The name “Wild Cat” was given the currency by an old fur dealer in Detroit, who, in assorting his furs, was accustomed to select his choice furs, and the refuse and unsalable portion, composed, in part, of wild cat skins, he would throw aside and call the pile “Wild cat.” After the bills issued under the law of 1837 became a circulating medium, in assorting his money he would select the Eastern money and the issues of the banks with special charters, and the other he would put into a parcel and label it “Wild Cat,” and from that the name became attached to that particular currency.

After every effort to keep the bubble inflated had failed, the people became more interested in devising means by which they could obtain livelihood than they were in building towns or making land speculations. Many, who a few months before were considered in affluent circumstances, found themselves without available means of support. The class that suffered least in the financial troubles were the farmers, which afterward induced many to turn their attention to that business, and they prospered finely along the rich alluvial bottom lands of the Saginaw.

SIX YEARS OF LANGUISHING.

During the interval between 1838 and 1844, all was quiet along the Saginaw. The movements concerning Lower Saginaw and Portsmouth, as towns, are given in the chapter of their history. The two hamlets were emphatically waiting for something to “turn up.” There were a few new comers. Dr. D. H. Fitzhugh purchased several parcels of land where West Bay City now stands, about 1840. In 1842, James G. Birney came in pursuit of solitude, and found it.

During the Winter of 1838-39, Gen Rosseau was engaged with his brother, Capt. Rosseau, and his uncle, Dr. Rosseau, in the performance of a surveying contract with the government, their work being the subdivision of townships in this vicinity. Other surveying was done by Louis Clawson, who arrived in the Spring, having a contract to survey territory up the shore.

In July, 1839, Stephen Wolverton arrived, commissioned to build a light house at the mouth of the river. He came on a small vessel, commanded by Capt. Stiles, and commenced the work which

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was afterwards finished by Capt. Levi Johnson of Cleveland Ohio. It was during this year that John Hulbert, the Indian paymaster, came to Lower Saginaw to make the last payment to the Indians for the purchase of their reservation. There were 1,700 Indians camped in the vicinity of the Globe Hotel. They remained about two weeks and received $80,000.

TOWNSHIP ORGANIZATION AND ELECTION.

Prior to 1843, this entire region was included in the township of Saginaw. In the Winter of 1843 the township of Hampton was erected, and included the Lower Saginaw region and territory north as far as Mackinaw. The name “Hampton” was selected by James G. Birney, that being the name of his wife’s country seat in New York State. The township was organized in the Spring, and the first election held at the Globe Hotel, April 1, 1843. This was an important meeting, a supervisor had to be elected. There is no tradition of any caucuses, no stuffing of the ballot box, no intimidation at the polls. Party spirit evidently ran high, for the contest was a close one. There were thirteen votes polled of which S. S. Campbell received seven and James G. Birney six; and Mr. Campbell was declared duly elected, to attend meetings of the county board at Saginaw, and paddle his own canoe both ways. The expenses of the township for the first year were about $60.

In 1855 the town of Williams was organized by the Midland Board, and comprised Town 14, 15, 16, north Range 3 east, and all of Arenac County.

INDICATIONS OF RUTURNING LIFE.

With the beginning of the year 1844 there appeared faint indications of returning life to the Lower Saginaw region. A start in the manufacture of lumber had been made by James McCormick & Son at Portsmouth, and in the Winter of 1844 James Fraser and Cromwell Barney built a mill at Kawkawlin, and other mills followed as narrated in the chapter of lumber history.

In 1847 an Indian Mission Church was erected on the Kawkawlin River. This was the first church built within the present limits of Bay County.