There is a New Town in Kansas

[W. Gray]

Below is transcribed from a copy of the Corporation Charter filed creating the Howard City Town Company with the Office of the Secretary of State of Kansas. Transcription is approximate due to the atrocious handwriting. Even blowing up a scan could not provide more legibility. So much for the fact, our ancestors had excellent handwriting.

"Howard City Town Company" Oct 14, 1870

1. We the countersigned, Joseph K. O'Neil, Samuel McFarland, xxxx K. McClure, A. Gxxx, Tazwell Dodd, of the County of Howard and State of Kansas, hereby associate ourselves together under the specific said title of the Howard City Town Company.

2. The object of said Association is to purchase, locate, and lay out a Town Site into Lots and Subdivisions xxxx to sell xxxx convey the service.

3. The location of said Town Site is [this section was particularly bad but was listing the specific location in Range Ten East, Township Twenty-nine South, section one in the County of Howard, State of Kansas.]

4. The office of said company shall be at "Howard City" in the County of Howard State of Kansas.

5. The time for which said association shall exist is ten years unless sooner dissolved according to the constitution said bylaws of said association.

6. The number of Directors of Said Association shall be five.

7. The five first named persons in these articles of incorporation shall constitute a Board of Directors for one year from date after the filing of the xxxx.

8. The capital stock of said association shall be ten thousand dollars said capital stock shall be divided into shares of fifty dollars each.

Signed
Joseph K. O'Neil
Samuel McFarland
xxxx K. McClure
Alfonso Gxxx
Tazwell Dodd


I, W. W. Neusley, hereby certify that Joseph K. O'Neil, Samuel McFarland, xxxx K. McClure, Alfonso xxxx, Tazwell Dodd personally appeared before me this 20th day of September 1870 and subscribed their names and was duly sworn to my service

W.W. Neusley
J. P. [Justice of the Peace]
Greenwood County, Kan


The ten thousand dollar valuation related to capital stock of the Howard City Town Company was a subjective figure, as stock shares would have, at least initially, a lower book value and market value. The town company (shareholders) made money by selling lots and would eventually have to go out of business. Lot prices, however, fluctuated greatly depending on the town's draw and this affected the shareholder income. At one time, the Howard City Town Company gave away lots provided the potential new owner agreed to build within a short time and agreed to stay for a minimum number of years. The appearance of a growing town helped to draw even more people who would have to pay for their lots at ever-increasing prices, thus increasing the stockholder's income.

Capital stock valuation, originally shown as twenty-five hundred dollars in the charter, was scratched out and replaced with ten thousand. This was by far the largest capital stock valuation for any town in Howard County. It was especially high for a "going nowhere" town that Howard City was until named five years later by law as the county seat of the new Elk County.

By comparison, Boston incorporated with stock valued at eight thousand dollars. Boston was close to the geographical center of Howard County, an excellent location for a county seat. The high amount coincided with the fact Boston was a "going somewhere" town, at least until the raid on Elk Falls and two subsequent Kansas Supreme Court decisions.

Elk Falls became the county seat of Howard County before there was ever a town company. The town was on the claim of R.H. Nichols. A town company incorporated in March 1870 with $1,020 capital stock valuation. Within five days, another group filed a separate Elk Falls Town Company charter with the state listing $400 capital stock valuation. Those two companies had no choice but to fight each other since they both wanted location at the Elk River falls and eventually one of those companies went out of existence. Elk Falls was not in the center of Howard County but used the falls as a symbol for justifying a county seat.

Greenfield capital stock valuation was eight hundred dollars.

Belleville had one thousand dollars capital stock value.

Howard City's original location where postal service and a few stores were established was two or three miles north of the present town site, on Paw Paw Creek. It was on a private claim. There was never a town company at this place. An individual could claim 160 acres at $1.25 an acre and there was nothing to keep him from forming a town company. A town company, however, could purchase 320 acres at $1.25 an acre. After filing the Howard City Town Company incorporation charter, the town company purchased the land, laid out the town, and began selling lots to anyone they could entice to Howard City, Kansas. Two of the five, though, had probably already individually staked a claim in order to reserve the spot and all five had shared in the $400 cost while waiting for the incorporation filing.

It is known that the motivation for changing the site of Howard City from the Paw Paw Creek site was to get as close to the geographic center of northern Howard County as possible. The stockholders were apparently anticipating a future division of Howard County. Although there were exceptions, the general custom was to locate the county seat in the county center to give every landowner time to get to the courthouse after milking in the morning and return by milking time in the afternoon.

The City of Howard incorporation of October 27, 1877, was a separate action for third class city status.