Indiana Canal Company
Encyclopedia
Indiana
Indiana is a US state, admitted to the United States as the 19th on December 11, 1816. It is located in the Midwestern United States and Great Lakes Region. With 6,483,802 residents, the state is ranked 15th in population and 16th in population density. Indiana is ranked 38th in land area and is...
side of the Ohio River
Ohio River
The Ohio River is the largest tributary, by volume, of the Mississippi River. At the confluence, the Ohio is even bigger than the Mississippi and, thus, is hydrologically the main stream of the whole river system, including the Allegheny River further upstream...
. After several attempts, and possible sabotage by a supporter of the Louisville and Portland Canal
Louisville and Portland Canal
The Louisville and Portland Canal was a canal bypassing the Falls of the Ohio in the Ohio River near Louisville, Kentucky. It opened in 1830, and was operated by the Louisville and Portland Canal Company until 1874, and became the McAlpine Locks and Dam in 1962 after heavy modernization.Although...
, the project was ended.
History
As the Midwestern United StatesUnited States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
became populated by American settlers, they began to farm produce down the Ohio River to the Mississippi River
Mississippi River
The Mississippi River is the largest river system in North America. Flowing entirely in the United States, this river rises in western Minnesota and meanders slowly southwards for to the Mississippi River Delta at the Gulf of Mexico. With its many tributaries, the Mississippi's watershed drains...
and New Orleans to be sold. Along this entire route there was only one obstacle, the Falls of the Ohio, a series of rapids between Clarksville, Indiana
Clarksville, Indiana
Clarksville is a town in Clark County, Indiana, United States, along the Ohio River as a part of the Louisville Metropolitan area. The population was 21,724 at the 2010 census. The town, once a home site to George Rogers Clark, was founded in 1783 and is the oldest American town in the Northwest...
, and Louisville, Kentucky
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
. At that location goods had to be unloaded from boats, transported by land to below the falls, and reloaded. This caused a considerable delay for transportation and led to the early growth in the area which responded by creating enterprises to accommodate the needs of moving the goods. The expense caused by the need to transport goods overland for the three mile stretch was considerable and the price incurred by Cincinnati goods alone was estimated to cost over $50,000 annually.
As early as 1790 it was proposed that a canal be built around the falls so that shipping could easily bypass the rapids. Both Indiana and Kentucky competed to be the first to build a canal, knowing whichever side built the canal would receive a large economic boost. Early promoters of the project included Josiah Stephens and Benjamin Hovey, both of whom believed the canal would create a rapid influx of wealth to Indiana.
First company
Indiana began formal plans to build a canal before Kentucky, authorizing the first Indiana Canal Company on August 24, 1805. The charter was considered favorable, fixing tolls between two and five dollars. The company's board members were made up mostly of men from Clarksville and included Aaron BurrAaron Burr
Aaron Burr, Jr. was an important political figure in the early history of the United States of America. After serving as a Continental Army officer in the Revolutionary War, Burr became a successful lawyer and politician...
, Davis Floyd
Davis Floyd
Davis Floyd was an Indiana Jeffersonian Republican politician who was convicted of aiding American Vice President Aaron Burr in the Burr conspiracy. Floyd was not convicted of treason however and returned to public life after several years working to redeem his reputation...
and George Rogers Clark
George Rogers Clark
George Rogers Clark was a soldier from Virginia and the highest ranking American military officer on the northwestern frontier during the American Revolutionary War. He served as leader of the Kentucky militia throughout much of the war...
. The Indiana Territory
Indiana Territory
The Territory of Indiana was an organized incorporated territory of the United States that existed from July 4, 1800, until November 7, 1816, when the southern portion of the territory was admitted to the Union as the state of Indiana....
granted the company $120,000 in starting money, and the enterprise raised more than $1.2 million from private sources.
The company surveyed a route around the falls through a deep, downhill ravine that began near the mouth of the Cane Run creek and continued downhill past the falls, where it opened back into the Ohio River Valley. The plan was to dam the creek near its mouth at the Ohio River, forcing it down into the ravine where it would wash out the valley creating a natural canal. The redirected creek could then be connected to the Ohio River by a lock. The surveyors believed that this route would be far easier to build and cheaper than the cost of digging a route on the opposing side of the river.
The initial company failed before the construction was begun and completely fell apart after the Aaron Burr conspiracy
Burr conspiracy
The Burr conspiracy in the beginning of the 19th century was a suspected treasonous cabal of planters, politicians, and army officers led by former U.S. Vice President Aaron Burr. According to the accusations against him, Burr’s goal was to create an independent nation in the center of North...
was revealed. Floyd was briefly jailed for part in the plot, and Burr was charged with treason and jailed. Many believed the company was a front to gather funds for Burr's failed plot, but it was never proven that any money was misappropriated as the treason charges were dropped on lack of evidence and no further inquiry was made.
Second and third company
In 1816 Indiana created a second canal company. GovernorGovernor of Indiana
The Governor of Indiana is the chief executive of the state of Indiana. The governor is elected to a four-year term, and responsible for overseeing the day-to-day management of the functions of many agencies of the Indiana state government. The governor also shares power with other statewide...
Jonathan Jennings
Jonathan Jennings
Jonathan Jennings was the first Governor of Indiana and a nine-term congressman from Indiana. Born in Readington, New Jersey, he studied law with his brother before immigrating to Indiana in 1806 where he took part in land speculation...
, who was intent on increasing the economic viability of the new state, saw the canal as a way to quickly enhance Indiana's economy. This time the charter for the company provided $1 million in starting funds and gave the board a wider representation from Indiana's now larger population to prevent any possible graft
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
by local members. The charter allowed the company to fix it own tolls and run a lottery
Lottery
A lottery is a form of gambling which involves the drawing of lots for a prize.Lottery is outlawed by some governments, while others endorse it to the extent of organizing a national or state lottery. It is common to find some degree of regulation of lottery by governments...
to increase funding. The company was not able to draw enough investments for the project and in 1818 a third canal company was created and merged with the second.
The third company was granted an even broader charter and more funds were voted for the project. By 1819 the company had progressed enough to begin construction. The Cane Run was dammed and forced into the ravine as planned by the first company. The canal was expected to be 2.75 miles long with an average depth of 45 feet and a width that narrowed from 100 feet across at the top to 500 feet across at the bottom.
Work was progressing well along until the dam failed. Maurice Thompson
Maurice Thompson
James Maurice Thompson was an American novelist.-Biography:Raised on a Georgia plantation, Thompson first pursued a career as a lawyer. In 1871 he opened a law practice with his brother, William Henry Thompson...
claimed that someone from the rival canal company in Louisville had sabotaged the dam. Portland newspapers had been criticizing the canal and many of its residents were openly opposed to a construction of any canal, knowing that without the necessity to transport good overland, Portland's businesses would not be needed anymore. It is also possible the earthen dam was the victim of muskrat
Muskrat
The muskrat , the only species in genus Ondatra, is a medium-sized semi-aquatic rodent native to North America, and introduced in parts of Europe, Asia, and South America. The muskrat is found in wetlands and is a very successful animal over a wide range of climates and habitats...
s who destroyed millions of dollars worth of Indiana canals in the 1830s by burrowing through them. The subsequent Panic of 1819
Panic of 1819
The Panic of 1819 was the first major financial crisis in the United States, and had occurred during the political calm of the Era of Good Feelings. The new nation previously had faced a depression following the war of independence in the late 1780s and led directly to the establishment of the...
made raising additional funds difficult, and without the means to continue construction the company folded.
Aftermath
Without the funds to repair the dam and begin construction again, the project was allowed to languish. The Indiana General AssemblyIndiana General Assembly
The Indiana General Assembly is the state legislature, or legislative branch, of the state of Indiana. It is a bicameral legislature that consists of a lower house, the Indiana House of Representatives, and an upper house, the Indiana Senate...
raised the topic again in 1824 and a commission was appointed, who's members included Christopher Harrison
Christopher Harrison
Christopher Harrison was the first Lieutenant Governor of Indiana, serving with Governor Jonathan Jennings. Harrison was briefly acting governor while Jennings' was conducting negotiation with the native tribes in northern Indiana, and later resigned from office over a dispute with Jennings...
, to study the feasibility of trying to restart the project. After reporting on their findings, the commission was ended. The General Assembly discussed restarting the company but no action was again undertaken to attempt to build a canal on the Indiana side of the River. The debate ended in 1825 when the Louisville and Portland Canal
Louisville and Portland Canal
The Louisville and Portland Canal was a canal bypassing the Falls of the Ohio in the Ohio River near Louisville, Kentucky. It opened in 1830, and was operated by the Louisville and Portland Canal Company until 1874, and became the McAlpine Locks and Dam in 1962 after heavy modernization.Although...
secured federal funding, which virtually guaranteed its success. It was completed in 1831 and was instantly very profitable. The L & P Canal was still in operation in 2008 as part of the McAlpine Locks and Dam
McAlpine Locks and Dam
The McAlpine Locks and Dam refers to the series of locks and the hydroelectric dam in Louisville, Kentucky at the Falls of the Ohio. They are located at mile point 606.8 and control a 72.9 mile long navigation pool...
.
In 1867 & 1868 a detailed and comprehensive study was conducted by the United States War Department on the feasibility of a "Ship canal around the falls of the Ohio". A report was submitted to congress in 1869 but was never acted upon.
The loss of the canal was a local disaster for Clarksville. Local industry had been building with the expectation that Clarksville would become a major trading hub. The project had focused state attention on the improvement of the area and now many of the state plans where ruined. The state prison had been established in Jeffersonville so criminals could be used to labor on the canal, and other favorable projects had been granted to the area to improve the possibility of a canal. The loss left Clarksville to languish and into a population decline, whereas Jeffersonville began to grow quickly. Seeing the prosperity the L & P Canal brought, Indiana decided to build a series of Canals across the northern part of the state including the Wabash and Erie Canal
Wabash and Erie Canal
The Wabash and Erie Canal was a shipping canal that linked the Great Lakes to the Ohio River via an artificial waterway. The canal provided traders with access from the Great Lakes all the way to the Gulf of Mexico...
.