Yazoo land scandal
Encyclopedia
The Yazoo land scandal, Yazoo fraud, Yazoo land fraud, or Yazoo land controversy was a massive fraud
perpetrated from 1794 to 1803 by several Georgia
governors and the state legislature. They sold large tracts of land in what is now the state of Mississippi
to political insiders at very low prices. Although the law enabling the sales was overturned by reformers, the land claims were challenged in the courts for years, reaching the US Supreme Court. In the landmark decision, Fletcher v. Peck
(1810), the Court ruled that the contracts were binding and the state could not retroactively invalidate the earlier land sales. It was one of the first times the Court had overturned state law.
The Yazoo land fraud is often conflated with the Pine Barrens speculation
. This involved Georgia's high-ranking officials making multiple gifts of grants of land for the same parcels, grants amounting to three times more land than existed in the state of Georgia. This real estate speculation occurred about the same time as that in Mississippi.
. Pent-up land hunger meant that settlers were eager for new territory. Governor George Mathews
signed the Bourbon County Act, which organized Bourbon County, Georgia in the area of the Mississippi and Yazoo
rivers. This area included the site of the present-day city of Natchez, Mississippi
. At the same time, a secret society called the Combined Society was formed; the members' sole purpose was to make money by land speculation. They wanted to acquire land at low prices for resale, and used influence with politicians to accomplish that end.
Georgia appointed civil and judicial officers for the new county, but under pressure from the U.S. government, Georgia dissolved Bourbon County in 1788. The U.S. government opposed Bourbon County for several reasons. At the time, a portion of the land was also claimed by Spain
, and claims to the area by the Choctaw
and Chickasaw
Native American
tribes had not been extinguished. The Combined Society eventually faded away.
The second chapter began in 1789 when three companies, The South Carolina Yazoo Company, The Virginia Yazoo Company, and the Tennessee Company were formed to buy land from the Georgia legislature. Governor Telfair signed a deal to sell 20000000 acres (80,937.2 km²) of land to the Yazoo companies for $207,000, or about 1 cent per acre. The deal fell through when the companies attempted to pay with worthless old currency. The Virginia Yazoo Company was headed by Patrick Henry
.
In 1794, four new companies: the Georgia Company, the Georgia-Mississippi Company, the Upper Mississippi Company, and the new Tennessee Company, persuaded the Georgia state assembly to sell more than 40000000 acres (161,874.4 km²) of land for $500,000. Many Georgia officials and legislators were to be stockholders in these companies. On January 7, 1795, Governor George Mathews signed into law a bill authorizing the sale of the 40000000 acres (161,874.4 km²), known as the Yazoo Act.
When the details were revealed, public outrage was widespread, and people protested to federal officials and Congressmen. Jared Irwin
and U.S. Senator James Jackson
led the reform efforts: Irwin was elected Governor of Georgia and, less than two months after taking office, signed a bill on February 13, 1796 nullifying the Yazoo Act. The state burned all copies of the bill except for one that had been sent to President George Washington
. Jackson resigned as Senator to run for office as next Governor of Georgia. He was elected and took office two years later.
But the matter was not over. The state refunded money to persons who had purchased land, but some refused the money, preferring to keep the land. The state did not recognize their claims, and the matter was to wind through courts for the next decade. In 1803 the state ceded to the U.S. all claim to lands west of its present border, along with the legal disputes.
The matter reached the U.S. Supreme Court in 1810. In the landmark Fletcher v. Peck
decision, one of the first times the Court overturned a state law, the Court ruled that the land sales were binding contracts and could not be retroactively invalidated by the state by passage of superseding law.
, the governors and legislature of Georgia made overlapping land grants, effectively granting three times more land than existed in the state. Although land grants were supposed to be limited to 1000 acres (4 km²) per individual, the state awarded multiple grants of 1000 acres (4 km²) to certain persons.
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
perpetrated from 1794 to 1803 by several Georgia
Georgia (U.S. state)
Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788...
governors and the state legislature. They sold large tracts of land in what is now the state of Mississippi
History of Mississippi
The state of Mississippi's history goes back beyond American statehood to ancient Native American times.-Native Americans:At the end of the last Ice Age Native American or Paleo-Indians appeared in what today is the South. Paleo Indians in the South were hunter-gatherers who pursued the mega fauna...
to political insiders at very low prices. Although the law enabling the sales was overturned by reformers, the land claims were challenged in the courts for years, reaching the US Supreme Court. In the landmark decision, Fletcher v. Peck
Fletcher v. Peck
Fletcher v. Peck, , was a landmark United States Supreme Court decision. The first case in which the Supreme Court ruled a state law unconstitutional, the decision also helped create a growing precedent for the sanctity of legal contracts, and hinted that Native Americans did not hold title to...
(1810), the Court ruled that the contracts were binding and the state could not retroactively invalidate the earlier land sales. It was one of the first times the Court had overturned state law.
The Yazoo land fraud is often conflated with the Pine Barrens speculation
Pine Barrens speculation
From 1789 to 1796, Georgia governors George Walton, Edward Telfair and, George Mathews, while in office, made gifts of land grants covering more than three times as much land as Georgia then contained...
. This involved Georgia's high-ranking officials making multiple gifts of grants of land for the same parcels, grants amounting to three times more land than existed in the state of Georgia. This real estate speculation occurred about the same time as that in Mississippi.
History
The Yazoo land scandal had two chapters. It had its origin in 1785, soon after the United States' victory in the American Revolutionary WarAmerican Revolutionary War
The American Revolutionary War , the American War of Independence, or simply the Revolutionary War, began as a war between the Kingdom of Great Britain and thirteen British colonies in North America, and ended in a global war between several European great powers.The war was the result of the...
. Pent-up land hunger meant that settlers were eager for new territory. Governor George Mathews
George Mathews (Georgia)
George Mathews was an United States planter, merchant, and pioneer from Virginia and western Georgia. He served in the Continental Army during the Revolutionary War then settled in Georgia. He served as the 20th Governor of Georgia, one term in the U.S...
signed the Bourbon County Act, which organized Bourbon County, Georgia in the area of the Mississippi and Yazoo
Yazoo River
The Yazoo River is a river in the U.S. state of Mississippi.The Yazoo River was named by French explorer La Salle in 1682 as "Rivière des Yazous" in reference to the Yazoo tribe living near the river's mouth. The exact meaning of the term is unclear...
rivers. This area included the site of the present-day city of Natchez, Mississippi
Natchez, Mississippi
Natchez is the county seat of Adams County, Mississippi, United States. With a total population of 18,464 , it is the largest community and the only incorporated municipality within Adams County...
. At the same time, a secret society called the Combined Society was formed; the members' sole purpose was to make money by land speculation. They wanted to acquire land at low prices for resale, and used influence with politicians to accomplish that end.
Georgia appointed civil and judicial officers for the new county, but under pressure from the U.S. government, Georgia dissolved Bourbon County in 1788. The U.S. government opposed Bourbon County for several reasons. At the time, a portion of the land was also claimed by Spain
West Florida
West Florida was a region on the north shore of the Gulf of Mexico, which underwent several boundary and sovereignty changes during its history. West Florida was first established in 1763 by the British government; as its name suggests it largely consisted of the western portion of the region...
, and claims to the area by the Choctaw
Choctaw
The Choctaw are a Native American people originally from the Southeastern United States...
and Chickasaw
Chickasaw
The Chickasaw are Native American people originally from the region that would become the Southeastern United States...
Native American
Native Americans in the United States
Native Americans in the United States are the indigenous peoples in North America within the boundaries of the present-day continental United States, parts of Alaska, and the island state of Hawaii. They are composed of numerous, distinct tribes, states, and ethnic groups, many of which survive as...
tribes had not been extinguished. The Combined Society eventually faded away.
The second chapter began in 1789 when three companies, The South Carolina Yazoo Company, The Virginia Yazoo Company, and the Tennessee Company were formed to buy land from the Georgia legislature. Governor Telfair signed a deal to sell 20000000 acres (80,937.2 km²) of land to the Yazoo companies for $207,000, or about 1 cent per acre. The deal fell through when the companies attempted to pay with worthless old currency. The Virginia Yazoo Company was headed by Patrick Henry
Patrick Henry
Patrick Henry was an orator and politician who led the movement for independence in Virginia in the 1770s. A Founding Father, he served as the first and sixth post-colonial Governor of Virginia from 1776 to 1779 and subsequently, from 1784 to 1786...
.
In 1794, four new companies: the Georgia Company, the Georgia-Mississippi Company, the Upper Mississippi Company, and the new Tennessee Company, persuaded the Georgia state assembly to sell more than 40000000 acres (161,874.4 km²) of land for $500,000. Many Georgia officials and legislators were to be stockholders in these companies. On January 7, 1795, Governor George Mathews signed into law a bill authorizing the sale of the 40000000 acres (161,874.4 km²), known as the Yazoo Act.
When the details were revealed, public outrage was widespread, and people protested to federal officials and Congressmen. Jared Irwin
Jared Irwin
Jared Irwin served twice as elected Governor of Georgia and . He first was elected to office as a reformer based on public outrage about the Yazoo land scandal. He signed a bill that nullified the Yazoo Act, which had authorized the land sales...
and U.S. Senator James Jackson
James Jackson (politician)
James "Left Eye" Jackson was an early Georgia politician of the Democratic-Republican Party. He was a member of the U.S. House of Representatives from 1789 until 1791. He was also a U.S. Senator from Georgia from 1793 to 1795, and from 1801 until his death...
led the reform efforts: Irwin was elected Governor of Georgia and, less than two months after taking office, signed a bill on February 13, 1796 nullifying the Yazoo Act. The state burned all copies of the bill except for one that had been sent to President George Washington
George Washington
George Washington was the dominant military and political leader of the new United States of America from 1775 to 1799. He led the American victory over Great Britain in the American Revolutionary War as commander-in-chief of the Continental Army from 1775 to 1783, and presided over the writing of...
. Jackson resigned as Senator to run for office as next Governor of Georgia. He was elected and took office two years later.
But the matter was not over. The state refunded money to persons who had purchased land, but some refused the money, preferring to keep the land. The state did not recognize their claims, and the matter was to wind through courts for the next decade. In 1803 the state ceded to the U.S. all claim to lands west of its present border, along with the legal disputes.
The matter reached the U.S. Supreme Court in 1810. In the landmark Fletcher v. Peck
Fletcher v. Peck
Fletcher v. Peck, , was a landmark United States Supreme Court decision. The first case in which the Supreme Court ruled a state law unconstitutional, the decision also helped create a growing precedent for the sanctity of legal contracts, and hinted that Native Americans did not hold title to...
decision, one of the first times the Court overturned a state law, the Court ruled that the land sales were binding contracts and could not be retroactively invalidated by the state by passage of superseding law.
Pine Barrens speculation
During the same period, in what was called the Pine Barrens speculationPine Barrens speculation
From 1789 to 1796, Georgia governors George Walton, Edward Telfair and, George Mathews, while in office, made gifts of land grants covering more than three times as much land as Georgia then contained...
, the governors and legislature of Georgia made overlapping land grants, effectively granting three times more land than existed in the state. Although land grants were supposed to be limited to 1000 acres (4 km²) per individual, the state awarded multiple grants of 1000 acres (4 km²) to certain persons.
See also
- List of federal political scandals in the United States
- List of state and local political scandals in the United States
- Historic regions of the United StatesHistoric regions of the United StatesThis is a list of historic regions of the United States.-Colonial era :-The Thirteen Colonies:* Connecticut Colony* Delaware Colony* Province of Georgia* Province of Maryland...
Further reading
- Cadle, Farris W. Georgia Land Surveying History and Law (1991). Athens, Ga.: University of Georgia Press.
- Magrath, C. Peter. Yazoo: Law and Politics in the New Republic. The Case of 'Fletcher v. Peck'. (1966). Providence, R.I.: Brown University Press.
External links
- Report of the committee to the Georgia House of Representatives, recommending consideration of proposals from private companies for the sale of western lands, December 9, 1794. One of many Yazoo Land Fraud documents in the Georgia Archives.