Phelps and Gorham Purchase

The Phelps and Gorham Purchase was the purchase in 1788 of the pre-emptive right to some 6,000,000 acres (24,000 km²) of land in western New York State for $1,000,000 (roughly equivalent to $20,000,000,000 in 2005). This was all land in western New York west of Seneca Lake between Lake Ontario and the Pennsylvania border. The purchasers were Oliver Phelps and Nathaniel Gorham, both of Massachusetts, and the seller was the Commonwealth of Massachusetts. (In some discussions of this subject elsewhere, the Phelps and Gorham Purchase refers to all 6,000,000 acres (24,000 km²) and in others it refers only to the 2,250,000 acres (9,100 km²) upon which Phelps and Gorham managed to extinguish Indian title. This comes about because although Phelps and Gorham purchased pre-emptive rights to all 6,000,000 acres (24,000 km²), they were only able to extinguish Indian rights—and obtain clear title—to the portion east of the Genesee River.)

Map of Phelps and Gorham Purchase 1802-1806

Colonial land rights

Following the American Revolution, western New York was to be eligible for development as soon as New York and Massachusetts reached a compromise settling their competing claims for the area. This occurred in December 1786 with the signing of the Treaty of Hartford. The treaty stated that New York would have sovereignty over the land, but Massachusetts would have the "pre-emptive" right to obtain title from the Indians.

By act of the Massachusetts Legislature, approved April 1, 1788, it was provided that: this Commonwealth doth hereby agree, to grant, sell & convey to Oliver Phelps and Nathaniel Gorham, for a purchase price of $1,000,000, payable in three equal annual installments (of certain Massachusetts securities then worth about 20 cents on the dollar), all the Right, Title & Demand, which the said Commonwealth has in & to the said "Western Territory" ceded to it by the Treaty of Hartford.

Council at Buffalo Creek

Phelps and Gorham wasted no time in exploiting their purchase. On July 8, 1788, Phelps met with Indians of the Five Indian Nations of the Iroquois Confederacy (including Mohawks, Oneidas, Onandagas, Cayugas, and Senecas) at Buffalo Creek to execute a deed or treaty for rights to a portion of their land. The description embraces only approximately the east one-third of the territory ceded to Massachusetts by the Treaty of Hartford, from the Genesee River as the west boundary to a point 'in the north boundary line of the State of Pennsylvania in the parallel of forty-two degrees north latitude at a point distant eighty-two miles west from the northeast corner of Pennsylvania on Delaware river.' (the Preemption Line). In addition, the agreement included a small tract of lands west of the Genesee running south from Lake Ontario approximately 24 miles (39 km) and extending west from the river 12 miles (19 km) from "the westernmost bend of the Genesee," with this western boundary paralleling the course of the Genesee. This 184,300 acre (746 km²) tract west of the Genesee was known as The Mill Yard Tract, so named because Phelps and Gorham asked the Indians for land west of the Genesee at the Falls so they could build a sawmill and gristmill. For this extinction of title, Phelps and Gorham paid the Indians $5,000, plus an annuity of $500. The area to which title was extinguished comprised some 2,250,000 acres (9,100 km²), including the Mill Yard Tract. That's .002 cents per acre.

Default

Due to Phelps and Gorham's default on the 1790 installment, the preemptive right to lands of the Phelps and Gorham Purchase west of the Genesee River, comprising some 3,750,000 acres (15,200 km²; 5,860 sq mi), reverted back to Massachusetts on March 10, 1791. On March 12, 1791, Massachusetts agreed to sell the pre-emptive right to the lands west of the Genesee to Robert Morris for $333,333,33. The land was conveyed to Morris in five deeds on May 11, 1791. At that time, Morris was the richest man in America, as well as a signer of the Declaration of Independence and financier of the American Revolution.

Morris then re-sold most of these lands in December 1792 and in February and July 1793 to the Holland Land Company (known as The Holland Purchase). Morris, however, reserved for himself 500,000 acres (2,000 km²; 780 sq mi) in a 12 miles (19 km)-wide strip along the east side of the lands acquired from Massachusetts, from the Pennsylvania border to Lake Ontario, known as The Morris Reserve. At the north end of the Morris Reserve, an 87,000 acres (350 km²; 136 sq mi) triangular-shaped tract ("The Triangle Tract") was sold by Morris to Herman Leroy, William Bayard and John McEvers, while a 100,000 acres (400 km²; 160 sq mi) tract due west of the Triangle Tract was sold to the State of Connecticut. In September 1797, Morris extinguished the remaining Indian title for all the lands west of the Genesee at the "Treaty of Big Tree" (Geneseo).

The Phelps and Gorham lands east of the Genesee River that had not already been sold were also acquired by Robert Morris in August 1790—some 1,200,000 acres (4,900 km²; 1,900 sq mi)—who re-sold them to The Pulteney Association.

See also

• Fellows v. Blacksmith, 60 U.S. 366 (1857)
• New York ex rel. Cutler v. Dibble, 62 U.S. 366 (1858)
• Seneca Nation of Indians v. Christy, 162 U.S. 283 (1896)
• Seneca Nation of Indians v. United States, 173 Ct. Cl. 917 (1965), on remand 28 Ind. Cl. Comm. 41 ($5,649,585.04 in compensation)

Additional Maps

Labeled Map showing Phelps & Gorham's Purchase (including the Mill Yard Tract)

References

• Laurence M. Hauptman, Conspiracy of Interests: Iroquois Dispossession and the Rise of New York State (2001).

External links

• Phelps & Gorham Treaty of July 4-8, l788, Historical Aspects of the, Rochester History magazine, by Blake McKelvey Vol 1 No(s)1 (January 1939) (PDF format)
• The Field Notes of Col. Hugh Maxwell's Pre-emption Line Survey in the Phelps and Gorham Purchase transcribed by John M. Robortella
• For Animations of these Land Acquisitions click Map Scene 5 Map animation by Dr. Robert Spiegelman