[12] Encouraged by his uncle's descriptions of the lush lands of the Western Reserve,[12] Alfred's eldest brother, Datus, traveled to the nascent settlement of Cleveland in early 1810.

[48] Kelley was also one of five members of the legislature appointed to a special committee to investigate financial malfeasance by Hiram M. Curry, the Ohio State Treasurer, and his predecessor, William McFarland, both of whom had incurred substantial deficits, embezzled funds, and exhibited incompetence.

They frequently communicated with New York Governor DeWitt Clinton and those building the Erie Canal, and circulated glowing reports about construction progress and the ease with which financing was obtained.

[59] On January 31, 1822,[52] the Ohio General Assembly passed legislation authorizing the appointment of a commission to investigate the feasibility of building the canal proposed by Governor Brown.

They examined[71] and surveyed routes,[60][j] collected data, wrote economic studies, and analyzed construction techniques to determine the best means of building the canal.

The hope was that, as segments of the canal became operational and substantial toll income was generated, the bonds would become more attractive and the interest rate on future offerings would necessarily fall.

Kelley tried to have the map published by a printer in the state of Delaware, but was embarrassed to discover that the Ohio General Assembly claimed copyright of his document.

The high quality work, lack of corruption, and budget-conscious construction impressed investors, making it easier to sell canal bonds in the future.

Clay had proposed the "American System", an economic program consisting of high tariffs, strong banking regulation, and federal subsidies for infrastructure improvements like roads and canals.

[107] The other faction, led by Clay and John Quincy Adams, favored high tariffs, believing they would prevent specie from going overseas and thus allow banks to expand capital and credit.

[108] Clay ran against Jackson for the presidency in 1824, but John Quincy Adams won the nation's highest office after the election was thrown into the House for resolution.

[114] Columbus and Franklin County were Democratic strongholds, however,[34] and Democratic-controlled newspapers accused Kelley of making immorally high profits from his banking business, speculating on real estate, and enriching himself by ensuring that the Ohio & Erie Canal passed near his land.

[138][w] The remaining stock was sold to prominent Ohioans such as Jacob Burnet, David T. Disney, John H. Groesbeck, Simon Perkins, Elisha Whittlesey, Micajah Williams,[142] and Alfred Kelley.

Among the Ohioans on the board were Jacob Burnet,[137] David T. Disney,[143] Calvin Pease,[137] Simon Perkins,[143] Benjamin Tappan, Allen Trimble, Joseph Vance,[137] Elisha Whittlesey, Micajah Williams,[143] and Alfred Kelley.

The Canal Fund commissioners were able to eliminate some of the current and accumulated liability by selling $1.3 million ($38,400,000 in 2023 dollars) in bonds at an average discount of about one-third (netting just $858,000).

[182] Kelley and the other fund commissioners, however, turned a blind eye when Ohio banks issued scrip in smaller denominations to meet the needs of contractors and workers.

When word of the bond sale became known in Ohio, Kelley's political opponents accused him of selling out the state in order to enrich his wealthy British business associates.

[174][ak] With the crisis over, the Ohio General Assembly reorganized the Canal Fund Commission in March 1843, and Kelley resigned from the board after the law passed.

[196] Despite the attacks on Kelley during the crisis, conservative Democrats joined with Whigs in the General Assembly to pass a resolution retroactively approving every measure he had taken to avoid default by the Canal Fund Commission.

One of nine original incorporators of the company,[216] Kelley became involved with the scheme because of the extensive construction management and financial knowledge he had gained while building the Ohio & Erie Canal.

[222] With private investors unwilling to take a risk on the line, Kelley convinced city and county governments along the route to sell bonds and use the money to invest in the C&X.

[225] He personally went to New York City to sell C&X bonds, and raised enough money to not only complete construction of the railroad but also to buy locomotives and rolling stock to equip it.

[231][233] The C&X began generating substantial profits, and Kelley personally negotiated an agreement with the Little Miami Railroad which ensured an excellent working relationship between the two lines for many years.

[244][243][245][am] Kelley immediately began speaking with his colleagues in the banking and finance fields, and by early September 1847 indicated to the board that a favorable response had been found among investors in New York City.

[247] To ensure that the new charter did not lapse, on September 30, 1847, Kelley and other members of the board of directors went to Cleveland's Scranton Flats and ceremoniously filled a wheelbarrow with earth to symbolize the start of construction.

He began his tenure as president by urging the board of directors (composed of wealthy Ohioans) to show faith in the business by purchasing company bonds.

[281][282] The stockholders met for the first time on August 1, 1849, and elected Herman B. Ely, George G. Gillett, Alfred Kelley, Tappan Lake, David R. Paige, Peleg P. Sanford, and Samuel L. Selden to the initial board of directors.

Kelley used these revenues to subsidize the construction of other important railroads in Ohio, which in turn gave him leverage to forge operating agreements with the CC&C once they opened.

[307][308] The Erie Gauge War erupted, in which state and local authorities as well as mobs attempted to prevent completion of the Lake Shore Division.

By April 1853, the situation had so deteriorated that Kelley considered bypassing Erie altogether and connecting the CP&A to existing railroad lines which routed traffic through Pittsburgh.