(john Nicholson) Pennsylvania Population Company - Feb 14, 2015 | Early American History Auctions In Ca
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(JOHN NICHOLSON) Pennsylvania Population Company

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(JOHN NICHOLSON) Pennsylvania Population Company
(JOHN NICHOLSON) Pennsylvania Population Company
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Colonial America
Asylum Company John Nicholson Signed Letter Regarding Accounting Mistakes as Secretary Just Months Before Being Sent to Prison
(JOHN NICHOLSON). President of “The Pennsylvania Population Company,” Secretary of the “Assylum Company” and was the Pennsylvania State Comptroller General, who controlled 500,000 acres of land and in 1800, Nicholson died in debtor’s prison.
June 18th, 1798-Dated, Federal Period, Manuscript Retained Copy Letter, Secretarially Signed, “J Nicholson,” regarding accounting mistakes he made as Secretary of the Asylum Company, Very Fine. This easily readable financial letter is 8” x 11” nicely written in brown ink on period laid paper, being written just months before Nicholson would find himself sent to debtors prison. Some sealed splitting along some folds, boldly and well written in rich brown ink. It reads, in full:

“June 18th, 1798 --- D[ear] Sir, --- From the aggregate of the foregoing acct. which I take to be right you see how inadequate the sum named between us was at the time of my transfer of my right in certain assylum shares to you was*. I have his day credited you in my books with this acct. save the first 5 items which were formerly entered. I have omitted to make entry of the last $150 a balance of $300 for the Commonwealth new loan *cause in the civil suit because you have my note therefor. If I have omitted aught in the preceding acct. impute it to my want of law knowledge and be so kind as to suggest it. Some payments were made you ment[ione]d on acct. of salary as Sec. of the Assylum Co. If you approve we will carry them to acct. with me. That company are perhaps better security than you friend. Copy --- (Signed) ---- J. Nicholson”.

An extraordinary letter by John Nicholson, admitting to significant financial improprieties as mistakes and hoping to correct the shortchanged account. The final sentence warns of his lack of funds and financial problems going forward that ultimately led to his being sent to prison.
John Nicholson was born in Wales, and emigrated to Philadelphia prior to the American Revolution. He engaged in a variety of business enterprises, including button, iron, and glass manufacturing, and real estate developments. In 1778 he became clerk to the Board of Treasury of the Continental Congress. Congress accepted his resignation on March 12, 1781, when he entered the service of Commonwealth as one of the auditors for settling the accounts of the Pennsylvania Line. A year later, on April 13, 1782, the legislature appointed him to the newly-created Office of Comptroller General, which had broad powers to manage the financial affairs of the state. These powers were further increased as other duties and offices were conferred upon him; in 1785 he was authorized to collect and receive taxes, and in 1787 he was also made escheator general, to liquidate the estates of those attainted of treason.

Under the reopened Federal Loan of 1792, Nicholson exchanged some $60,000 in "New Loan" certificates for federal securities. Not only had the comptroller general picked up these certificates for next to nothing, but they were not regarded as state debt to be redeemed. It was this state of affairs that caused the State House of Representatives to resolve on April 5, 1793, to impeach John Nicholson, to institute a suit against him for the recovery of funds which he had allegedly diverted, and to appoint a committee to examine his accounts and make a report. The committee, which was made up of Benjamin R. Morgan, Albert Gallatin, and Cadwallader Evans, reported him a public defaulter to a large amount. The trial in the State Senate was protracted and confusing. The House prosecutors were unable to muster a two-thirds vote against him on any of seven counts. In fact, a majority voted in his favor on all but two charges. Nicholson was acquitted but in 1794 resigned all his public offices.

He then became the partner of Robert Morris in land speculation and development. With Morris he promoted the development of Washington, D.C. and formed the Asylum Company involving hundreds of thousands of acres on the Susquehanna as a haven for French refugees. With James Greenleaf and Morris, he created in 1795 the North American Land Company, which claimed to have as its capital six million acres of land in Pennsylvania, Virginia, North Carolina , South Carolina, Georgia, and Kentucky. Nicholson was also involved in the formation of the Pennsylvania Population Land Company, the Pennsylvania Land Company, the Territorial Land Company, the North Carolina Land Company, the South Carolina Land Company, the "Kentucky" Land Company, and the Georgia Land Company.

Early in the winter of 1799-1800, Nicholson was imprisoned for debt. He died on December 5, 1800, leaving a wife, eight children, and more than four million dollars in debts.


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(JOHN NICHOLSON) Pennsylvania Population Company

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