The Record · Chapter Two, the long version · Act One
The Ditch Came First
Chicago wasn’t founded. It was ordered, about a hundred and fifty years before anybody filled the order.
By Jason C. Wandel and Claude @claudeai for Chicago Register · Saturday, October 17, 2026

This is the first of three parts on how the canal came before the city, from 1673 to the 1830s. It goes deeper on ground Chapter Two covers.
Every city likes to say it was founded. Somebody brave walks into the wilderness, plants a flag, and a town grows up around his good idea.
Chicago wasn’t founded. It was ordered. And the order went in about a hundred and fifty years before anybody got around to filling it.
Start with the mud. Six miles of wet prairie southwest of where the Loop sits now, between a lake that drains to the Atlantic and a river that drains to the Gulf of Mexico. In spring you could paddle across it. In August you carried your canoe. The nations who lived here had been using that crossing for longer than anyone can count. Whoever controls a crossing like that controls everything that has to cross it.
In 1673 a fur trader named Louis Jolliet was led across it by the people who used it. He went home and told the French government they should dig a ditch through it. Lake to river. Montreal to New Orleans by boat.
That’s the first thing a European ever officially said about Chicago. Not “what a place.” A construction pitch.
The French never dug it. The British never dug it. Then the Americans showed up, and they did something smarter than dig. They started buying the ground the ditch would need, one bite at a time, years before they had a shovel.
1795. A treaty takes a six mile square at the mouth of the Chicago River. 1803. The Army builds Fort Dearborn on that square to guard the crossing. 1810. A New York congressman named Peter Porter asks Congress to pay for canals tying the Great Lakes to the Mississippi. 1816. Another treaty takes a strip 20 miles wide from the lake to the Illinois River. That strip is the canal route. The nations who gave it up got $1,000 in goods a year for twelve years. The same year, an Army engineer named Stephen Long walks the crossing and tells the War Department the ditch will work.
Still nobody digging. Just paper, piling up in the right order.
Then 1818, the best move of the whole game, and almost nobody knows it happened.
Illinois is about to become a state. Its northern border is set to run straight west from the bottom tip of Lake Michigan. Draw that line on a map today and Chicago lands in Wisconsin. Illinois’s man in Congress, Nathaniel Pope, gets the line moved about 60 miles north. On the record he gives two reasons. Keep the future canal inside one state. And tie Illinois to New York through the lakes, instead of to the South through the river. Fourteen counties and a lake port change hands with one amendment.
Nobody had dug a foot of ditch. Pope moved a state line to catch it anyway.
1825. New York opens the Erie Canal. Shipping costs from the East drop about 90 percent. Now the far end of the lakes isn’t the edge of nowhere. It’s the last stop on New York’s ditch, and New York money starts to notice.
1827. Congress hands Illinois 284,000 acres along the canal route to sell and pay for the digging. Land taken by treaty, sold to cover the bill.
Then the funny part. Nobody wanted it.
The canal commission put the land on the market at $1.25 an acre and couldn’t move it. So they did what you do when the farmland won’t sell. They invented towns. In 1830 they had a surveyor named James Thompson draw one at the mouth of the river. Fifty eight blocks. Lots for sale. The streets on his map include a Canal Street and a Clinton Street, named for the New York governor who built the Erie.
The town was a fundraiser. The map was the sales flyer.
It still didn’t sell. Three years of lots brought in about $18,800. Running the sale cost about $14,700. The men selling Chicago barely cleared their own expenses.
The ground was never worthless, though. It was occupied. Thousands of Potawatomi, Odawa and Ojibwe people still lived across northern Illinois and up the lake. You can’t sell a town to New York while the people who live there still hold title to everything around it.
Which brings us to a tavern on a Saturday in August.
On 5 August 1833, thirteen men in a settlement of a few hundred people met to decide whether to become a town. Twelve said yes. One man, Russell Heacock, said no. Five days later twenty eight men walked into Mark Beaubien’s tavern, the Sauganash, and elected five trustees. Two days after that, the trustees picked their president. Thomas J.V. Owen.
Owen was the federal Indian agent. His deputy agent was his brother in law, and the brother in law voted too. So did Jean Baptiste Beaubien, an agent for John Jacob Astor’s American Fur Company, whose son won a seat on the board.
Six weeks later, in September, Owen sat down at the treaty council in that same town as one of the three men representing the United States. Across the table sat the Potawatomi, Odawa and Ojibwe. When they got up, about five million acres around Chicago had changed hands.
The table had a floor above it. In 1830 President Andrew Jackson had signed the Indian Removal Act. Treaties like this one ran through the War Department, and the secretary of war in 1833 was Lewis Cass, the Michigan governor who had spent years making them.
The nations’ side of the paper is in the treaty too. It lists the chiefs and headmen who signed, each name followed by the words “his x mark.” To-pen-e-bee. Ob-wa-qua-unk. N-saw-way-quet. Wah-bou-seh. Shim-e-nah. Dozens more. The same treaty paid two men who stood between the two sides, Billy Caldwell and Alexander Robinson, $5,000 apiece and money every year for life. Caldwell’s other name was Sauganash. The tavern where the town elected its trustees was named for him.
The treaty said the Illinois land was due as soon as it was ratified, and that the people on it would be “removed at the expense of the United States.” Five years later the Potawatomi of Twin Lakes, Indiana, were marched to Kansas under guard. More than 40 died on the road, 28 of them children. That march is in Chapter Two.
Same man. Same town. Six weeks apart. Running the town, then running the deal that gave the town something to sell.
Nobody hid any of this. The trustee votes are printed in the city’s oldest histories. The treaty has Owen’s name on it. They just never get put in the same paragraph.
Then the money landed.
That same year a New York banker named Isaac Bronson and his sons, working with New York Life Insurance and Trust money, bought close to a third of a million acres across eight states. Chicago was in the pile. A Connecticut man named Walter Newberry arrived and started buying. In 1835 a New York state senator named William Ogden came out to look at a Chicago tract his brother in law had bought sight unseen for $100,000. He took one look at the swamp and called it “the grossest folly.” That summer the ground dried out and he sold a third of it for more than the family paid for the whole thing.
He quit the New York state senate and stayed. Two years later he was Chicago’s first mayor.
Ogden gets called a visionary. So does just about every man in this story. Fair enough. They could all see it. Jolliet could see it in 1673. Seeing it was never the hard part.
The hard part was getting somebody else to pay for it. So far the bill had been paid in land taken from the nations, a state line moved by an amendment, and a town drawn up to sell. The ditch itself still didn’t exist.
Next comes the digging, and the question every one of these men already had an answer to before the first shovel went in. Whose money?
Who decided where your town would go, and who was in the room when they did?
The scoreboard
Who got paid
- Thomas J. V. Owen. President of the town in August, the government’s man at the treaty in September
- The fur company and the traders in the treaty camp. Their claims, paid out of the nations’ own sale
- Billy Caldwell and Alexander Robinson. $5,000 apiece and a payment every year for life
- The New York buyers. Bronson’s acres and Ogden’s swamp, sold for more than the whole thing cost
Who pays
- The Potawatomi, Odawa and Ojibwe. About five million acres, and a removal clock
- The nations of the 1816 strip. The canal route, for $1,000 in goods a year for twelve years
- The Potawatomi of Twin Lakes. Their homes, and more than 40 lives on the road to Kansas
Read it yourself
- The Treaty of Chicago, 1833, full text. Every signer, every payment, the removal clause.
- The Indian Removal Act, 1830. The law, its text and what followed.
- Illinois’ Northern Boundary. Illinois State Historical Society, on how Pope moved the line.
Sources
The record
- National Park Service, Illinois and Michigan Canal historical report (Porter 1810, Long’s survey, the 1827 land grant, the 1830 to 1832 sales). Treaty of St. Louis, 1816. Illinois State Historical Society, Illinois’ Northern Boundary. WBEZ, Erie Canal 200th anniversary and Chicago, 27 October 2025. Andreas, History of Chicago, on the 1833 votes, voters and trustees. Treaty of Chicago, 26 September 1833, Kappler’s text via the Kansas Historical Society. Indian Removal Act, 28 May 1830. Miller Center, Lewis Cass as secretary of war, 1831 to 1836. Wikipedia, Sauganash Hotel; Thomas J. V. Owen; Isaac Bronson; Walter Loomis Newberry; William Butler Ogden. Classic Chicago Magazine, William Ogden. The Record, Chapter Two, for the canal commissioners’ sales accounts and the 1838 removal from Twin Lakes.
Read next
Chapter Two, The Ditch and the Deed1763 to 1849, the short version.
Our HistoryThe chapters, the rules and the corrections.