Jump to content

Holland Land Company

From Alfawiki
Holland Land Company
Company typeSyndicate
IndustryLand speculation, real estate
Founded1789
FounderTheophile Cazenove (agent for Dutch firms)
Defunct1858
Headquarters
Philadelphia
,
United States
Area served
Western New York, Northwestern Pennsylvania, United States
Key people
Theophile Cazenove, Paul Busti, Joseph Ellicott, David A. Ogden
ProductsLand parcels for development and speculation

The Holland Land Company was a collective of Dutch financiers from Amsterdam, operating without formal incorporation and based in Philadelphia. This syndicate specialized in acquiring extensive American land parcels for development and speculative purposes. Active from 1789 until 1858, their most notable purchase was the western two-thirds of the Phelps and Gorham Purchase during 1792–1793, which later became known as the Holland Purchase. Additionally, they procured property in the northwestern region of Pennsylvania.

Because foreign nationals were prohibited from owning property in New York State without legislative consent, these investors entrusted funds to intermediaries who then acquired land in central and western New York. The company’s strategy focused on swift resale for profit but necessitated considerable investment in surveying, infrastructure such as roads, and canal construction to attract settlers. The syndicate played a role in shaping New York state policies to allow foreign land ownership, prevent new taxation, and promote infrastructure initiatives like the Erie Canal within their holdings. To support these objectives, the company aligned with Governor Dewitt Clinton’s political faction. Land transactions concluded by 1839 in New York and by 1849 in Pennsylvania, with the company’s dissolution completed by 1858.

In 1810, company attorney David A. Ogden secured pre-emption rights to remaining Seneca reservation lands from the Holland Land Company and established a separate group known as the Ogden Land Company. This new syndicate acquired a significant portion of Seneca lands throughout the 1820s and 1830s, often employing questionable methods.

Initial acquisitions

Dutch investment in American territories commenced during the period of the American Revolutionary War (1775-1783). By 1789, four Dutch firms—Pieter Stadnitski and Son, Nicolaas and Jacob Van Staphorst, P. & C. Van Eeghen, and Ten Cate & Vollenhoven—appointed financier Theophile Cazenove as their agent to handle land speculation purchases. Operating out of Philadelphia, these entities expanded to six firms by 1792 with the addition of Willem Willink and Rutger Jan Schimmelpenninck, culminating in the establishment of shares for the Holland Land Company in 1795. In 1791, Cazenove acquired territory north of the Mohawk River and central New York lands under what was called the Cazenovia Establishment for the initial four firms. The following year, he facilitated acquiring property in northwestern Pennsylvania representing all six firms.

Beyond real estate, Dutch investors also obtained American financial instruments such as the South Carolina Funded Debt and Massachusetts Deposit. They held interests in enterprises like the Pennsylvania Population Company and invested in canal projects including the Patowmack Canal, James River and Kanawha Canal, Santee Canal, Western Canal, and Connecticut Canal between 1791 and 1792.

The Holland Purchase

The parcel acquired by the Holland Land Company in Western New York was originally part of the Phelps and Gorham Purchase, situated west of the Genesee River. At that time, aboriginal title was held by the Seneca. Both New York and Massachusetts asserted pre-emption rights grounded in colonial charters; a 1786 agreement granted Massachusetts this entitlement. Subsequently, Oliver Phelps and Nathaniel Gorham purchased these rights from Massachusetts but defaulted in 1790 after failing to extinguish Native American claims. In 1791, financier Robert Morris, recognized as America’s wealthiest individual and a signatory of the Declaration of Independence, acquired the pre-emption right for $333,333.34 (equivalent to approximately $ today). Morris obtained roughly , divided into five sections encompassing all lands west of the Genesee except for a portion retained by Phelps and Gorham.

Facing financial pressures, Morris sold four parcels totaling between December 1792 and July 1793 to the Dutch syndicate through Cazenove and trustee Herman LeRoy. He kept a remaining tract—referred to as the Morris Reserve—a twelve-mile-wide strip extending across Western New York from Lake Ontario down to Pennsylvania. This holding represented a major component of Dutch investments in early American land speculation.

Treaty of Big Tree

Prior to transferring the title from the Holland Land Company, it was essential to resolve the Native American land claims. This was achieved through the 1797 Treaty of Big Tree, held near present-day Geneseo, situated south of Rochester. In August 1797, representatives from the Holland Land Company, Thomas Morris (son of Robert Morris), the Seneca Nation, and U.S. commissioner Jeremiah Wadsworth convened at Big Tree. The Seneca delegation was skillfully led by Mary Jemison. Several chiefs, including Red Jacket, Cornplanter, and Governor Blacksnake, resisted the sale of lands and pushed for designated reservations to preserve part of their territory.

The agreement, finalized on September 15, 1797, compensated Native Americans with $100,000 (equivalent to approximately $ today) for rights to nearly 3.75 million acres (15,000 km2), while setting aside about 200,000 acres (809 km2) as reserved lands for their continued use.

In 1802, adjustments were made to the borders of the Cattaraugus Reservation, and the company acquired a strip of Seneca territory along the Niagara River.[1]

Investors

With backing from Aaron Burr, the New York Legislature in 1798 permitted non-citizens to hold land directly. Subsequently, the trustees transferred ownership of the Holland Purchase to its actual proprietors.[2] Ownership was divided among three groups of proprietors who held their parcels as "joint tenants" with rights of survivorship—meaning that shares passed to surviving partners rather than heirs.

The initial conveyance excluded approximately 300,000 acres (1,200 km2), which were allocated to investors Wilhelm Willink,[3] Nicolaas van Staphorst, Pieter van Eeghen, Hendrick Vollenhoven, and Rutger Jan Schimmelpenninck. The remaining lands were transferred solely to Wilhelm Willink and his associates. Around two years later, title was reconveyed to these original five investors along with additional partners such as Wilhelm Willink Jr., Jan Gabriel van Staphorst, and Pieter Stadnitski.[3][4][5] Importantly, none of these financiers ever visited America.

Land surveys

In 1795, Joseph Ellicott was appointed chief surveyor. Beginning in 1798, he led a team that included his brother Benjamin, Augustus Porter, and approximately 130 workers who surveyed the Holland Tract over a period of three years at a total cost of US $70,921.69½ (equivalent to about $ today). Porter modified the northwest boundary of the Buffalo Creek Reservation so that the company controlled land surrounding Buffalo’s creek mouth.[6]

Company representatives

In 1799, Paul Busti took over from Cazenove as the General Agent. Originating from Milan and connected to Amsterdam through marriage, Busti collaborated with agents of Dutch descent such as John Lincklaen, Gerrit Boon, Adam Gerard Mappa, along with assistants Harm Jan Huidekoper and John Jacob Vanderkemp. Following Busti’s passing in 1824, Vanderkemp assumed the role of General Agent until the company’s assets were liquidated in the 1840s.

From 1800 until his resignation in 1821, Ellicott oversaw sales of the Holland Tract. His successors included Jacob S. Otto (1821–1827) and David E. Evans (1827–1837). Legal matters were handled by attorneys David A. Ogden and Thomas Ludlow Ogden.

Company activities

The firm established its principal land office in Batavia, New York, in 1801—later designated as the seat of Genesee County—and opened a secondary office in Danby, Vermont. Additional local agents operated in Mayville (1810), Ellicottville (1818), Buffalo (1826), Meadville, Instanter (Pennsylvania), two districts within Allegany County, Lancaster, Cazenovia, and Barneveld. Important documents were safeguarded either in fireproof vaults or bank facilities.

Challenges arose in marketing Pennsylvania lands due to their unsuitability for agriculture; meanwhile, northern New York parcels had been sold to private buyers by 1818.

Initial sales of Holland tracts commenced in 1804; however, friction developed because the fixed price of $2.75 per acre combined with substantial down payments was beyond the reach of many prospective settlers. To maintain positive relations, agents offered conditional sales featuring discounts, reduced initial payments, extended mortgage terms, or arrangements involving labor contributions.

To enhance land desirability, the company invested heavily in infrastructure projects including roads, irrigation systems, canals, and mills. Additionally, it allocated parcels at no cost for roads, inns, and churches. In 1802, plans were made for Buffalo’s inaugural street grid. Ellicott championed the establishment of Genesee County to transfer road maintenance responsibilities to a local government more aligned with company interests. Despite these efforts, from the 1810s onward settlers advocated for taxing nonresident landowners to finance public improvements. The company also supported construction of the Erie Canal to increase land values and donated 100,000 acres for its right-of-way; Ellicott served on the canal commission beginning in 1816.

During the 1830s, New York enacted a tax aimed at debts owed to foreign landowners such as this company. Consequently, lenient credit policies were discontinued and property deeds were sold to local investors who enforced collections more rigorously. This shift provoked violent reactions including attacks on offices in Mayville and Batavia in 1836.

By 1839 all lands in Western New York had been sold and the Batavia office was closed. Sales in Pennsylvania concluded by 1849, and the Philadelphia headquarters ceased operations in 1856. The company officially dissolved in 1858.

The town of Holland, New York derives its name from this company.

Ogden Land Company

In 1810, David Ogden secured the pre-emption right for the remaining Seneca reservation territories from the Holland Land Company. He later assigned this right in 1821 to a consortium known as the Ogden Land Company, which was headed by Robert Troup, Thomas Ludlow Ogden, and Benjamin W. Rogers. By 1826, this group arranged a treaty to acquire multiple reservation areas—including Caneadea, Canawagus, Big Tree, Squawky Hill, as well as sections of Gardean, Tonawanda, Cattaraugus, and Buffalo Creek Reservations—for a sum of $48,216. However, the Senate never ratified this agreement, and the Seneca Nation's attempt to reclaim these lands in Seneca Nation of Indians v. Christy proved unsuccessful.

Following Ogden’s passing in 1838, the company became involved in the Second Treaty of Buffalo Creek, which encompassed all remaining Iroquois lands within New York. Although this treaty was ratified, it faced significant controversy and allegations of fraud. Further alterations to the treaty were made through the Third Treaty of Buffalo Creek in 1842 and the Fourth Treaty of Buffalo Creek in 1857. In 1856, Seneca John Blacksmith initiated legal action against company representatives for forcibly removing him from his sawmill in Fellows v. Blacksmith, resulting in a court ruling unfavorable to the company.

By 1895, Charles Appleby—then the sole remaining trustee—erroneously asserted that the company possessed clear ownership of the Allegany and Cattaraugus Reservations. He attempted to sell these lands to the federal government for $300,000. Although Congress allocated funds for this transaction and Senator David B. Hill supported it, opposition in the House ultimately prevented its approval.

  1. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  2. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :3
  3. ↑ 3.0 3.1 Cite error: Invalid <ref> tag; no text was provided for refs named Redbook
  4. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :11
  5. ↑ Lua error in Module:Citation/CS1/Configuration at line 2123: attempt to index field '?' (a nil value).
  6. ↑ Houghton, 1920
Retrieved from "https://www.alfawiki.org/index.php?title=Holland_Land_Company&oldid=64988"