Alfred Kelley; his life and work

Front matter

SaP* mmX

1 1

ALFRED KELLEY

Chapter I. Early Tears

Birth and parentage — Removal to Lowville, ET. Y. — Education — Bound for Ohio — Dr. Kirtland's account of the journey — Cleveland in 1810 — Admitted to the Bar — Appointed Prosecuting Attorney 1

Chapter II. Legislative Service

Elected to the Legislature — Service on committees — Reports on proposed amendments to the Constitution of the "United States — Report on canals — Marriage — Re-elected to the Legislature — Efforts to abolish imprisonment for debt — Resolutions against slavery — Equalization of taxation — Investigation of the State Treasury — Disco very of frauds 6

Chapter III. Legislative Service Continued

Canals — A message from the Governor — Condition of the blacks — Elected to the Senate — A question about lotteries — Mr. Kelley's report thereupon 18

Chapter IV. Public Schools And The Public Lands

Public lands set apart for schools — Maryland's objections — Legislative report in full — Equal privileges claimed for all the States — Maryland demands her share — Resolutions transmitted to Governor and Legislature of Ohio — Views of New Hampshire 24

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Chapter V. The School Lands Question Continued

The Maryland and New Hampshire communications before the Ohio Legislature — The governor's message — Referred to a committee — Mr. Kelley chairman — A communication from Vermont — Mr. Kelley's report — An exhaustive argument — Rights and privileges of the several States — Maryland's position controverted 37

Chapter VI. The Ohio Canals

Mr. Kelley appointed a canal commissioner — His report on the subject — The considerations in favor — The Ohio market in 1822 — Mr. Kelley appointed acting commissioner — Proceeds to New York for study — Examination of routes — Preliminary surveys — Feeding public sentiment — The example of the Erie Canal 59

Chapter VII. Canal Commissi On Ership

Locating canal routes — The commissioners' report — Two routes proposed — The question of expense — A public debt— The Muskingum and Scioto route authorized by the Legislature — Mr. Kelley's forecast, sagacity, and prudence — Appointment as canal commissioner — Three dollars per day — The work commenced — Health impaired — Report for 1825 — Cost of the work. — Effect of the canals — Mr. Kelley's resignation as acting commissioner — Proposed inquiry into the accounts — The form of the proposal resented — Mr. Kelley's methods of management 69

Chapter VIII. Political Services

Removal to Columbus — Election to the Legislature in 1836 — Services — Election in 1837 — The State Debt — Chairman of the Finance Committee — Imprisonment for debt abolished — Political corruption of the times — Call for a Whig General Convention — Picturesque scenes — Entertaining delegates 94

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Table of Contents.

Chapter IX

MR. KELLEY AS A FINANCIER.

Financial distrust in 1840 — Mr. Kelley appointed Canal Fund Commissioner — The State embarrassed — Borrowing money e in England — Mr. Kelley's. course — The honor of the State at stake — Danger of repudiation — A crisis — Mr. Kelley's courage and skill 101

Chapter X. Repudiation Repudiated

Judge Swan's testimony to Mr. Kelley's services at this crisis — A stormy outlook — Mr. Kelley's personal liabilities — His letter to the Ohio State Journal — Repudiation repudiated — Mr. Kelley's triumph — His financial mission to Europe , 112

Chapter XI. A New Banking System

Retirement from office — Elected to the Senate — The currency and its reform — The United States Bank — The panic of 1837 — A State bank for Ohio — Mr. Kelley's views — Foundation of the present banking system 129

Chapter XII. Revenue Reform

Revision ^of the revenue system — Mr. Kelley's report —

Equalization of taxation — Sound economics 138

Chapter XIII. Equalization Of The Taxes

Continued financial troubles — Mr. Kelley's proposal for equalization of the taxes — A bold step — Mr. Edgerton's speech — Mr. Kelley's reply — His resolution adopted — The contest continued 148

Chapter XIV. Passage Of The Tax Law

Mr. Kelley's speech. — Passage of the bill in the Senate — Its

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Table of Contents.

passage in the House — Features of the law — The succeeding political controversy over it — Its success and effect .,163

Chapter XV. Railroad Building

The beginning of railroads — The Columbus and Xenia Railroad — Selling bonds in New York — The Cleveland, Columbus, and Cincinnati Railroad — The Cleveland, Painesville, and Ashtabula — Difficulties about gauge — A new battle of Erie — A strategic movement — Buying up a right of way — Mob-law at Erie — Mr. Kelley's '' Five Mile Farm." 174

Chapter XVI. Closing Tears

The fugitive slave law — Re-election to the Senate — Sessions of 1855-6 and 1856-7 — The improper use of the public funds — Investigation of treasury ; alarming disclosures — Bills to protect public funds — Bill to authorize payment of taxes semi-annually — Suggestion to Mr. Yaple as to public schools — Guarding the treasury — The new State House — Mr. Kelley's address of welcome — Close of his legislative career — The end 186

Chapter XVII. Personal Traits

Mr. Kelley's probity — Originating talent — Good judgment — Executive ability — Generous instincts — Literary tastes — Love of poetry — Scientific knowledge — Familiarity with, geography — Hospitality — Mr. Yaple's reminiscences — Business habits — Domestic traits — Recollections of Mathias Martin and Judge Swan — "Alfred Kelley's place in history " — Henry Clay's estimate — The last visit of his life— ''Just like him " 201

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ALFRED KELLET;

HIS LIFE AND WORK.

Chapter I. Early Years

1789-1810.

Birth and parentage. — Removal to Lowville, N". Y. — Education. — Bound for Ohio. — Dr. Kirtland's account of the journey. — Cleveland in 1810. — Admitted to the Bar. — Appointed Prosecuting Attorney.

■ The personal efforts and official life of the subject of this biography are so intimately blended with the development of the resources of Ohio, with its commercial and financial prosperity, and with the establishment and maintenance of its credit, that the following narration will necessarily include much of these departments of the history of the State. Mr. Kelley's mental characteristics, and particularly his originating talent, were such, that even when he was associated with others his seemed to be the controlling mind, and he alone was held responsible for results.

Alfred Kelley was born in Middlefield, near Middletown, Connecticut, November 7th, 1789. He was the second son of Daniel and Jemima Kelley, and inherited

Alfred Kelley ; his Life and Work.

characteristics from both parents. In him were combined intellectual force, tenacity of purpose, and a strong will, for which his mother's family was distinguished; with coolness, a disposition to thorough investigation, and an evenly balanced judgment, which were peculiarities of his father. His early associates were among the sturdy and well ordered inhabitants of New England, and he lived near enough to the Revolution to be affected by its general influence, and particularly by the attachment to home and country which naturally resulted from its privations and success.

The bo} r remained in Middlefield until the winter of 1798-9, when his parents removed with their family to Lowville, in the northern part of New York. The journey was long, and the country to which they were immigrating was new, even when compared with their New England home. Three or four white families comprised all the inhabitants except Indians. Here the father made favorable investments and accumulated a moderate property by industry and economy.

The son had all the educational advantages which the region in which he lived afforded. He attended the

o

common schools and was several years a student at the Fairfield Academy. His scientific and literary attainments are conclusive evidence that he was a thorough student, and availed himself of all the advantages which were within his reach. Early in his life he exhibited a preference for the legal profession, and his studies were directed accordingly. At some time during the year

Alfred Kelley ; his Life and Work.

1807 he entered the law office of Judge Jonas Piatt, one of the eminent jurists of the State of New York, under whose instruction he studied law until May in 1810, when he started for Ohio, in company with his uncle,. Judge Joshua Stow, and Jared P. Kirtland. Judge Stow was then a prominent and influential citizen of the State of Connecticut, and Mr. Kirtland was a medical student from the same State, and younger than Mr. Kelley. The two young men, like many others from New England and New York, were at that time seeking homes in Northern Ohio, which was then " the far West." Some traveled on foot, and others, as did this company, on horseback.

During the previous winter General Peter' B. Porter, then a member of Congress, representing a district in Western New York, made a speech, in which he advocated the construction, by the general government, of a canal from the Hudson River to Lake Erie. The public was much interested in the subject, and it was discussed often on the road, and at their stopping places. In a letter of Dr. Kirtland, in which he gives an account of the journey, he says :

"The suggestion in the public estimation was Utopiau, as it was in the opinion of the older members of our traveling company. Our journey was along the route subsequently selected for that great work. Mr. Kelley was a firm believer in both its importance aud practicability. It was the subject of almost constant debate, not only in our traveling coterie, but at most of our stopping places, and among all classes of people. On Mr. Kelley devolved the task of defending the

Alfred Kelley ; Ms Life and Work.

project, which he did on all occasions, with a skill and enthusiasm that excited the admiration of every one, but which entitled him to the rank of a monomaniac in the estimation of the older and conservative portions of his hearers. Conservatism was then the order of the day among statesmen, politicians, and financiers.

" His example and influence over myself during that journey I have felt through life. They were the best and most effective schooling I ever received. Bashful, timid, and unstable at that time, I could not fail to admire in him such prominent and opposite traits of character ; and though I was then prone to consider him as severe and dogmatical, yet I was a full believer in all he said, as well as secretly an admirer of his mode of doing. Of course I adopted, to some extent, him as. a model and oracle."

In the latter part of June, and in his twenty-first year, Mr. Kelley reached Cleveland and became one of its inhabitants. At that time Cleveland contained three framed and five or six log houses. Neither of the framed dwellings was finished. One person attended to all the business of the Post Office, the Recorder's Office, the Clerk of the Supreme Court, and the Court of Common Pleas.

At the first session of the Supreme Court held in Cuyahoga County, and in the year 1810, Mr. Kelley was admitted to the Bar, and at the first term of the Court of Common Pleas thereafter he was appointed Prosecuting Attorney, which office he continued to hold by successive appointments until 1822, when he resigned on becoming Canal Commissioner. Business came to him imme-

Alfred Kelley ; his Life and Work.

diately, and he soon practiced in many of the counties on the Reserve.

The Hon. Elisha "Whittlesey, who was often with him on the Circuit, in a letter on the subject, says :

"He was distiDguished in whatever business he undertook to perform." . . . "As a draughtsman he was accurate, and I question whether the records contain evidence of many, if they do any, defective bills of indictment, declarations, bills in chancery, or any other legal or equitable proceedings."

He was also an advocate of extraordinary force and

cogency, and when he relinquished his practice to take

charge of the construction of the Ohio Canal, it was as

large and lucrative as that of any attorney in that part

of the State.

Alfred Kelley ; his Life and Work.

Chapter II. Legislative Service

1814-1820.

Elected to the Legislature. — Service on committees. — Reports on proposed amendments to the Constitution of the United States. — Report on canals. — Marriage. — Re-elected to the Legislature. — Efforts to abolish imprisonment for debt. — Resolutions against slavery. — Equalization of taxation. — Investigation of the State Treasury. — Discovery of frauds.

In 1814, and as soon as he had arrived at the required age of twenty-five, Mr. Kelley was elected a member of the Legislature, and with William A. Harper represented Ashtabula, Cuyahoga, and Geauga Counties, which then comprised most of the Reserve. And although he was the youngest man in either branch of the General Assembly, the proceedings show that he was one of the most prominent and influential members.

He was re-elected in 1815. It was a common practice at that time, as it has been since, for the Legislature of one State to suggest an amendment of the Constitution of the United States, or propose some other general object, and request the approval of it by the Legislatures of the other States, and thus exert a combined influence upon Congress.

North Carolina, in pursuance of this custom, proposed an amendment requiring the " Legislatures of the several

Alfred Kelley ; his Life and Work.

States to district the same, for the purpose of appointing electors of President and Vice-President of the United States," instead of electing them all by a general ticket. The communication of the State of North Carolina was presented to the Legislature by the Governor with an accompanying message, and referred to a committee of five, of which Mr. Kelley was chairman, who, in behalf of the committee, reported as follows :

" The committee to whom was referred the resolution of the Legislature of North Carolina proposing an amendment to the Constitution of the United States requiring the Legislatures of the several States to district the same for the purpose of choosing representatives in Congress, and also for the purpose of appointing electors of President and Vice-President of the United States, have had the same under consideration, and are of opinion :

"That as representatives in Congress are elected for the purpose of acting upon all the various subjects which may come before the National Legislature, as well of a local as of a general nature, it is important that they should be intimately acquainted with the local situation, interests and sentiments of the particular section of the Union which they represent, and that the people should be able to know the qualifications of those whom they elect to represent them, and that the several States should be districted in the most advantageous manner to effect these important objects.

"Yet believing that this can be done, and that most of the States are districted for the purpose of electing representatives in Congress under the provision of the Constitution as it now exists, and that serious inconveniences might in many instances result from requiring absolutely the several States to be divided into a number of districts equal to the number of representatives to which each State may be entitled, and no more. Your committee are therefore of opinion, that it is unnecessary and inexpedient to alter the Constitution of the United States in this respect.

" Your committee are also of opinion that it would be impolitic to district the several States for the purpose of ap-

Alfred Kelley ; his Life and Work.

pointing electors of President and Vice-President, believing that it would be productive of no material advantages.

" Electors being chosen to perform one definite act only, the same necessity for their being acquainted with the local situations and interests of the different sections of the Union does not exist as in the case of representatives in Congress."

" Districting the States for the purpose of appointing electors, might also, by dividing a State, destroy that influence to which it is entitled and would otherwise possess, and would in many instances prevent a fair expression of the public will, and produce a choice of electors a majority of whom might act in opposition to the wishes of a majority of the citizens of the State for which they were appointed."

The Legislature declined to approve the proposed amendment.

The State of Georgia also recommended an amendment of the Constitution of the United States, by which the term of senators in Congress would be reduced from six to four years. This w T as also received from the Governor, referred to the same committee, and reported upon by Mr. Kelley as follows :

"The committee to whom was referred the resolution of the Legislature of the State of Georgia recommending an alteration of the Constitution of the United States reducing the term of service of senators in Congress from six to four years beg leave to report :

" That although your committee are fully impressed with the belief, that, in order to secure our natural liberties and privileges as well as to give toue and energy to the Government, it is of the utmost importance that the people should have frequent opportunities of expressing their sentiments and feelings upon National affairs, and of displacing such of their representatives as may be incompetent or dangerous, and of electing others to fill their places more able or less dangerous, yet to prevent the pernicious consequences of sudden and violent changes, to temper and regulate the force of popular impulse, to secure a proper degree of uniformity and stability to our National councils, they believe it to be

Alfred KeUey ; his Life and Work.

of equal importance that one branch of the general government should be composed of men who are not so immediately dependent upon popular opinion, who are subject to be less frequently changed, and a majority of whom may at all times possess the advantages of experience in legislative proceedings and a knowledge of the measures and policy of government. Your committee are also of opinion that it is inexpedient to change the principles of the Constitution, except to remedy material and palpable defects."

The Georgia proposition was not approved.

In 1816 Mr. Kelley was again elected to the Legislature, and with William Kerr represented the counties of Ashtabula, Geauga, Cuyahoga, and Huron. During this session a letter was received from DeWitt Clinton, one of the commissioners appointed by the State of New York for the purpose of ascertaining the practicability of connecting by a canal the Hudson with Lake Erie, calling the attention of Ohio to its importance as an outlet for its products, and suggesting that it should participate in the expense of the work. New York did not feel able to sustain the burden of such an undertaking ; and, as Ohio would be materially benefited by it, this proposition was made. The subject was referred to a committee of which Mr. Kelley was chairman ; and although the Legislature did not accede to the request the following extract from the report shows a full appreciation of the importance of the enterprise :

"From an examination of the subject submitted to their consideration, your committee are fully impressed with the belief that the making of a canal from the Hudson River to Lake Erie, is an object of the first importance to this State, and to the United States in general, both in a commercial

Alfred Kelley ; his Life and Work.

and political point of view. The facility which it will afford to the exportation of the surplus produce of our luxuriant soil, and the consequent encouragement of agricultural and commercial enterprise, are effects too obvious to pass unnoticed, and of too much importance to be neglected. As affording a safe, easy and expeditious mode of a mutual interchange of commodities between different sections of our common country, highly advantageous to all, — as increasing the commercial connections, friendly intercourse, and ties of interest, and by these means strengthening the bonds of union between remote parts of the Nation, the contemplated canal presents advantages vastly superior to those resulting from any work of the kind accomplished by the industry of man in any age or country."

Referring to Ohio, with the Lake on the north, and the Ohio River on the South, its climate, soil, and streams, he says :

" We are struck with its natural advantages, which, if improved by an enlightened and liberal policy, will render the situation of Ohio inferior to that of no State in the Union, or country in the world."

In the summer of this same year, and on the 25th day of August, Mr. Kelley was married at Martinsburgh, in Northern New York, to Mary Seymour Welles, the eldest daughter of Major Melancthon W. Welles, of that place. An account of her life ought to be written, for the double purpose of perpetuating the memory of her unusual attractiveness and usefulness, and also of preserving some account of the habits, manners, and domestic usages of that early period.

Mr. Kelley was again elected to the Legislature, in 1819, and, with Ebenezer Merry, represented the same counties — Ashtabula, Geauga, Cuyahoga, and Huron.

Alfred Kelley ; his Life and Work.

Down to this period, in the State of Ohio, and it is believed in every other State, and in Great Britain, imprisonment for debt was both authorized and practiced. Innocent and honest men were imprisoned for no other reason than that they were unfortunate debtors. The process issued without bond or other security on the part of the creditor. Cruel and even barbarous as it appears now, it was, at that time, a common and usual proceeding. At this session, and on the 24th of December, 1819, Mr. Kelley took the first step in the history of jurisprudence to relieve the innocent from this harsh and cruel practice. On that day he introduced a bill " To abolish imprisonment for debt." It contained also provisions, similar to those no.w in force, against fraudulent conveyances and other fraudulent acts of debtors which were intended to injure creditors.

The proposition seems to us obviously just, and we even wonder that such a practice ever prevailed. It was, however, so old and so interwoven with legal usages, that only a minority could be induced to favor Mr. Kelley's bill. He was so far in advance of public sentiment on this subject, that it required many years of education to satisfy even a majority of the injustice and inhumanity of allowing the imprisonment of an honest but unfortunate debtor at the will of his creditor.

After the defeat of the bill, Mr. Kelley wrote to a friend :

"The House has to-day disagreed, by a small majority, to my favorite bill, to abolish imprisonment for debt. I was not

Alfred Kelley ; his Life and Work.

disappointed, although at first a large majority seemed to favor it. The time will come when the absurdity, as well as inhumanity, of adding oppression to misfortune will be acknoAvledged."

At that early day, the aggressive and dangerous disposition of the slave-holders was exhibited in a determination to extend slavery into our free territories. The proceedings and discussions in Congress rendered it expedient for the Ohio Legislature to declare its opinion on the subject. Resolutions were therefore introduced for that purpose, and the Senate and House disagreed as to the form in which that opinion should be expressed. To settle that disagreement, a committee of conference was appointed, of which Mr. Kelley was a member, and prepared and procured the adoption by the committee of the following preamble and resolution :

"Whereas, the existence of slavery in our country must be considered a national calamity, as well as a great moral and political evil ; and whereas, the admission of slavery within the uew states and territories of the United States is fraught with the most pernicious consequences, and calculated to endanger the peace and prosperity of our country. Therefore,

Resolved by the General Assembly of the State of Ohio, That our senators and representatives in Congress be requested to use their utmost exertions to prevent the admission or introduction of slavery into any of the territories of the United States, or any new State that may hereafter be admitted into the Union."

As a member of the committee, he reported the preamble and resolution to the House, by which it was adopted unanimously.

At this session the inequality of taxation attracted

Alfred Kelley ; Ids Life and Work.

the attention of Mr. Kelley, and, on his motion, a standing committee on finance was appointed, of which he was made chairman. Xot long afterward, as such chairman, he submitted an elaborate report, in which he pointed out defects in the mode of valuing lands, which were then nearly the exclusive source of revenue, as well as in the method of assessing and levying taxes ; and recommended a mode of simplifying both.

At that time, land was divided into three grades, and was taxed by the acre, and not according to its value. In relation to this principle of taxation, as well as the method of assessing and collecting taxes, the committee reported :

"That they have taken into consideration that part of his Excellency's Message to them referred, as well as the various laws, now in force, relating to the revenue ; and from a diligent examination of the subject, your committee are convinced, that many defects exist in our present system of finance. Some of these defects affect the principles on which the taxes are levied ; but the more numerous, as well as more serious difficulties, appear to be in the method of assessing and collecting the taxes already imposed.

" The most' equitable, as well as the most simple method of raising a revenue from real property, is to levy a tax on lands, in proportion to their value. And were it not for the many difficulties which suggest themselves to this method of assessment, in the present situation of the state, your committee would feel no hesitation in recommending its adoption. The expense attending an actual valuation of all the various tracts of land within the state, and of equalizing such valuation amongst the different districts or sections of the state, so that the various tracts might be assessed in proportion to their relative, as well as real value, would be very considerable. In all new countries which are fast progressing in improvement, and where experience as well as adventitious circumstances are daily disclosing the important advantages pos-

Alfred Kelley ; his Life and Work.

sessed by local situations ; the real as well as relative value of property is so rapidly changing, that the necessity of a frequent revaluation, and general equalization, would greatly enhance the expenses of levying a tax. When all the lands within the state shall become subject to taxation, and shall have obtained something like a fixed and permanent value, and possibly before that period, this system may, with propriety, be adopted.

" There appear to be many serious defects in the present method of collecting the tax levied on lands, and making entries, alterations, and transfers, on the tax lists.

" The present system is, in the opinion of your committee, too complicated and intricate. Laws upon which all classes of community are required constantly to act, should be plain and simple, and should provide an easy method for rectifying mistakes when they occur. Your committee are aware of the difficulty of rendering any system of taxation, so complicated in its very nature, as plain and simple as would be desirable; yet they believe much might be done to remedy some of the most material defects of that which is now in force.

" Some further provisions to secure the purchasers of lands sold for the non-payment of taxes, an undisturbed possession and complete title, seem to be necessary, in order to render it safe to purchase lands so sold. . . .

" Your committee recommend to provide by law for strict regularity in all the proceedings to effect sales of land for non-payment of taxes, and that the deed of conveyance, bottomed on such sales, be declared, at least, prima facie evidence of title.

" Many of the errors which have crept into our tax lists, originate in the inability of the boards of commissioners, in many of the counties, to trausact business which requires so much care and exactness. Experience proves that the qualifications of a candidate to fill that office, do not always form a criterion of his success in the election."

At this session also the term of the Treasurer of State expired, and he was re-elected by a joint ballot of the Legislature. Not long after his re-election, suspicions arose in regard to the safety of the public funds, and a

Alfred Kelley ; his Life and Work.

special committee was appointed to examine the books of the Auditor and Treasurer. On the 7th of February, the committee reported a deficiency of §5,494.20, without recommending any action in relation to it. On the 11th of February, in secret session, a resolution was offered to prepare and report articles of impeachment against the Treasurer of State, which was laid upon the table. At this stage of the proceedings, it appearing that nothing was likely to be done to secure the funds then remaining in the treasury, Mr. Kelley offered a resolution which was amended and adopted as follows :

"Besolved, by the House of Representatives, that a committee of five members be appointed to examine the funds of the Treasury, and request the Treasurer to lock and seal the vault of the Treasury, and that said committee report, from time to time, to this House, any information they may think important."

Mr. Kelley was one of the committee, but not its chairman, and on the 16th the committee made a report from which it appears that they waited upon the Treasurer the day they were appointed, and he requested that the examination be delayed until the next day ; and an arrangement was made, on his suggestion, that the keys be divided between them. While in this situation, the committee thought it prudent " to keep an eye on the Treasury," and therefore a part of them kept possession of the Governor's room " for the night." The door of the Governor's room was opposite to, and across a small