Ohio Company of Associates

Ohio Company of Associates

Company type	Land development enterprise
Industry	Land development
Founded	March 1, 1786 (1786-03-01) in Boston, Massachusetts, United States
Founder	Rufus Putnam, Benjamin Tupper, Samuel Holden Parsons, Manasseh Cutler
Fate	Ceased operations by 1796 after dividing shares among members
Area served	Northwest Territory, United States
Key people	Rufus Putnam (designer of Marietta), Samuel Holden Parsons (director), Manasseh Cutler (director), Winthrop Sargent (secretary)
Products	Land sales and settlement development in the Northwest Territory

The Ohio Company of Associates, commonly known as the Ohio Company, was a land development enterprise recognized for founding the earliest enduring non-Indigenous settlement beyond the Allegheny Mountains. In 1788, they established Marietta, Ohio, which became the first lasting community within the newly formed Northwest Territory of the United States.

Formation of the company

Between March 1 and 3, 1786, a group of entrepreneurs—Rufus Putnam, Benjamin Tupper, Samuel Holden Parsons, and Manasseh Cutler—assembled in Boston, Massachusetts to create the Ohio Company, with the objective of developing lands along the Ohio River. The company's leadership included Parsons, Putnam, and Cutler as directors, with Winthrop Sargent serving as secretary. Subsequently, James Mitchell Varnum, Griffin Greene, and Robert Oliver joined the board.

Government negotiations

Cutler engaged in discussions with the Congress of the Confederation to obtain land rights, collaborating with William Duer, then Secretary of the Treasury Board and leader among New York speculators keen on encouraging western expansion. Facing financial needs, Congress supported land sales that facilitated passage of the Northwest Ordinance, which banned slavery and allocated parcels for education and religious purposes.

The Ohio Company's acquisition was authorized by the Northwest Ordinance of July 13, 1787, along with an Act dated October 23, 1787 permitting contracts for at least one million acres. On October 27, 1787, under Treasury Secretary Duer's oversight, the Ohio Company agreed to purchase 1.5 million acres located at the confluence of the Ohio and Muskingum rivers for $1 million in government securities valued at roughly 12 cents per dollar. This agreement designated one section per township for public schooling, another for religious use, and reserved two townships for a university.

A subsequent agreement granted an option to acquire additional land northward between the Ohio and Scioto rivers adjacent to their original holdings. This territory was preempted by Cutler and Sargent on behalf of themselves and others as part of the speculative Scioto Company. On July 27, Congress approved a grant of approximately five million acres for $3.5 million payable in U.S. securities. Cutler and Sargent divested half their stake to Duer and his partners to share potential profits or losses equally. Unlike the speculative Scioto Company—which failed to complete its purchase—the Ohio Company actively pursued plans for genuine settlement.

Since full payment of $1 million was not feasible initially, the company paid $500,000 upfront and accepted a reduced tract of 750,000 acres plus reserved townships dedicated to education and ministry lands—totaling about 913,833 acres—referred to as the First Purchase. Although surveyed privately, this land followed township and section layouts consistent with federal surveys conducted under the Land Ordinance of 1785.

Establishment of Marietta, Ohio

In 1788, General Rufus Putnam designed Marietta as Ohio's first permanent settlement. The Ohio Company sent settlers from New England into the Northwest Territory, initially acquiring lands within what are now Washington, Meigs, Gallia, Lawrence, and Athens counties.

During hostilities in the Northwest Indian War, including incidents such as the Big Bottom Massacre, Congress in 1792 designated a buffer zone called the Donation Tract, encompassing much of present-day Washington and Morgan counties. Numerous company members utilized army bounty warrants to claim federal lands totaling .

Later that same year, through these bounty warrants and applying a one-third discount for less desirable parcels, the company procured an additional in Morgan, Hocking, Vinton, and Athens counties. This acquisition is known as the "Second Purchase" or Purchase on the Muskingum; unlike earlier agreements, it did not reserve sections for educational or religious purposes.

By 1796, after dividing its shares among members, the Ohio Company ceased operating as a land development entity.

TRACT	AREA (acres)	AREA (Hectares)
First Purchase	913833	369816
Second Purchase	214285	86718
Donation Tract	100000	40469
Total	1228118	497002

External links

• Ohio Company of Associates Manuscripts and Records - Marietta College