Anyone experiencing problems in meeting mortgage payments in the current economic crunch can understand the frustrations of 19th-century Niagara County residents who were hard pressed even to buy cheap land.
Some Western New Yorkers were driven so far as to take up arms against the powerful landowners, the Holland Land Company.
Through a series of economic and political maneuvers, five banking houses in Holland became owners of all Western New York land west of the Genesee River. They planned to reap untold profits by enticing pioneers to settle in this "wilderness" and selling them plots of land.
The firm chose Paul Busti to be the general agent from headquarters in Philadelphia. Surveyor and agent Joseph Ellicott headed the Western New York headquarters in Batavia.
The Holland Company first decreed that land was to be sold on either four- or six-year mortgages with one-third down for the four-year contract and one-fourth down for a six-year term. Land was offered at about $2.75 an acre.
The down payment was a little much for most pioneers moving west. In fact, most came here by walking or in wagons carrying all they owned. Money was scarce.
Ellicott, seeing how hard it was to make sales, contacted Busti to lower down payments. The company agreed to 10 percent down for small lots and 15 percent down for large land purchases. But even this proved onerous.
Records show one pioneer had but $4 to pay down. Ellicott then began accepting agreements of work for down payments. Many settlers helped open roads, construct saw mills, and so on.
In 1803, Ellicott urged that credit be extended for a 10-year period and Busti agreed to an eight-year term. In 1819, a depression hit the fledgling nation and the Holland Company began taking produce for monthly payments.
Despite an easing of land purchase terms, the company often found itself in trouble with the new settlers. One major problem was that the company sold lots on land contract and the settlers did not gain title until they paid the contract off.
Without title, the settlers technically were not landowners. And, under state law, only landowners could hold office and serve on juries. In the fall of 1819, a series of anonymous articles appeared in the Niagara Journal blasting the Holland Company's policies and served to further inflame residents.
Under state law, the Holland Company did not have to pay taxes on the value of the land until they were paid in full. A meeting was held in Niagara County on Oct. 28, 1819, to start a petition drive to tax the company's debt so roads and schools could be built.
Among leaders at the meeting were prominent pioneers Augustus Porter and Benjamin Barton, who, along with Peter B. Porter, operated the lucrative portage around the falls. While these wealthy businessmen may have been working for poorer settlers out of noblesse oblige, probably a greater incentive was a feud with Joseph Ellicott, who had tried to end Porter and Barton's transportation monopoly.
A bill to tax the land was introduced in Albany but failed passage in the state Senate. At this time, the Holland Company had collected only about one-fiftieth of a debt of $6 million owed. Joseph Ellicott was asked to resign and Busti picked Jacob S. Otto, a Philadelphia businessman, to take over. David E. Evans later replaced Otto and a more lenient collection plan was put into effect.
And the legislature finally passed a bill to tax the Holland debt in 1835. This prompted the Holland Company to sell out to Farmers Loan and Trust Company. Harsher collection terms were immediately instituted and threats of violence escalated.
About 300 men armed with guns, rifles and clubs attacked and destroyed the company office in Mayville in February 1836. On May 13, a mob of about 700 irate settlers marched on Batavia, but officials had time to assemble villagers and Sheriff Nathan Townsend rounded up 160 armed men.
This was enough to dampen the enthusiasm of the mob and the attack fizzled out. However, it had a beneficial effect because more lenient collection terms were initiated to placate the settlers. By the end of 1838 most of the settlers had paid off their debts and the turbulent days were over.
| Niagara Falls Reporter | www.niagarafallsreporter.com | April 13 2004 |