Benjamin Franklin Allen

Benjamin Franklin Allen (April 27, 1829 – April 14, 1914) was a member of Iowa's 29th Senate district, and Iowa's first millionaire. Allen owned multiple companies in Des Moines, then expanded to railroad companies and banks outside of Iowa. Most of his fortune was lost after investing the majority of his wealth into Cook County National Bank in Chicago, which later crashed, causing him to move to California and grow fruit. Allen is credited with contributing more in the early development of Des Moines in its early history.

Early life Allen was born in Salem, Indiana. Allen became an orphan at four years old, living with his grandfather in Ohio until he turned 17 when he enlisted in military service. Allen was a teamster in Mexico during the Mexican–American War. He travelled to Iowa in 1848 at 19 years old so he could collect an inheritance from his uncle, Captain James Allen, who was responsible for establishing Fort Des Moines, an army outpost, in 1843.

Career When Allen arrived in Iowa, he started making money as a merchant. In 1848, he opened a general store with Jonathan Lyon, and two years later in 1850 he started a sawmill with Charles Van. In 1851, Allen and R. W. Sypher bought a steamboat in St. Louis and brought it to Des Moines for trade. In 1855, Allen started banking in Des Moines, opening a bank and a real estate office. In 1857, the State Bank of Iowa opened with eight branches. Allen was a director for the Des Moines branch. During the Panic of 1857, Allen was able to rescue firms in Des Moines by making loans from his bank notes of Nebraska notes, gaining reputation as one of the leading bankers in the west. The same year, Allen built a two story brick house, in which the block it was built on was later turned into a hotel. In 1865, the branches were merged into the National State Bank.

Allen was elected to the Des Moines City Council in 1860 for the Second Ward. Allen would served as a senator in the Iowa state legislature. Allen represented Polk County during the thirteenth and fourteenth general assemblies. During the thirteenth general assembly, he was chairman for the Suppression of Intemperance. During the fourteenth general assembly, he was chairman for banks, and part of committees for Claims, Public Buildings, Railroads, and Ways and Means. Allen also helped secure legislation for the new capitol building.

In 1865, Allen directed and was a stockholder in the Rock Island Railroad, where he helped it reach Des Moines in 1867. Allen was able to buy property along a proposed railroad route west to the Missouri River, where he then established a land company to plot and sell town sites. Allen also organized a gas and a coal company after the Civil War ended. He started the first gas company in Des Moines at Second and Elm streets. Allen tried using coal and superheated steam to make hydro-carbon gas. Due to the retorts cracking under the extreme heat, the company switched back to conventional methods. He also organized a coal company with Wesley Redhead called the Des Moines Coal Company, with the shallow deposits being quickly exhausted. The same year he also started an insurance company with E. J. Ingersoll called Hawkeye Insurance Company. In 1871, Allen organized the Des Moines Water Company which had $300,000 of capital. From 1858 to 1876, Allen controlled monetary affairs in Des Moines, and was never harsh. At his height, Allen's fortune was estimated to be between $4–$12 million.

In 1873, Allen had significant debt due to borrowing the Rock Island Railroad trust funds for his own investments. Allen purchased controlling interest and became the president of Cook County National Bank in Chicago to try and pay off his court debts. Allen put most of his fortune into funding the bank, but in 1876, the bank crashed. The crash also affected many business men and regular people. This lead to a committee being selected for Allen and what property he would have to turn over, but the litigation left almost nothing for creditors to take. The legal proceedings over Allen’s estate dragged on into the mid-1880s. In the span of eight years he was tried twice for fraud and neither jury convicted him. He kept Terrace Hill and of grounds until 1884 when it was purchased for $60,000. Allen sold the rest of his fortunes and moved to Leadville, Colorado to try starting up a store, but failed. Allen then moved to California to grow fruit. He later worked as a forestry supervisor for the federal government, in which he was later dismissed due to graft.

Personal life and death

In 1854, Allen married Arathusa West and had six children. Half of his children outlived Allen, his daughter, and two sons named Frank and Harry. In 1866, Allen started construction of Terrace Hill. The house was constructed between 1866 and 1869, and cost $250,000 for its building and grounds. In 1869, Allen hosted a housewarming party, inviting 700 guests. Allen spent $6,000 for the party, and another $2,000 on food and flowers. After the Cook County National Bank collapsed, Allen was able to keep Terrace Hill until 1884, when the property was purchased by Frederick M. Hubbell for $60,000. Terrace Hill now houses the current governor of Des Moines, and is listed as a national historic landmark. Allen's wife died in February of 1876. Allen died on April 14, 1914, in Hollywood, California. His resting place is in Woodland Cemetery in Des Moines.