HISTORY OF BIRCH POINT INTERIOR
October 2011
The land known as the Birch Point Interior is the area of Birch Point and Birch Point First Addition located behind the lakeshore lots in this area and is therefore commonly called “The Interior”. The property begins at the junction of Birch Point and Birch Rock Roads, the latter being labeled as “Pine Road” or “Pine Place Road” on the official plat. It extends across Norway Road to the back of lakeshore lots at the end of the Point. This writing is an update of a History of Birch Point first written in 1992 and later updated as I had a chance to view and study documents prepared and preserved by the Trustees. These documents trace the activities of the Trustees in managing the property from its acquisition in 1926 to the present time. Also added is a brief overlook of the legal work done from 1999 to 2003 in obtaining clear title and ownership by the Birch Point Interior Association, Inc.
The present ownership of the property known as The Birch Point Interior dates back to September, 1926, when a group of foresighted men established a Trust to control the property. In general, the Trustees of the Birch Point Interior Association have kept meticulous records and I will try to outline the history of the management of this pristine bit of property, consisting of approximately eighty-eight acres of undeveloped forestland surrounded by lakeshore lots containing over eighty seasonal or permanent residences.
In the Abstract of Title, the first reference to this property is dated September 15, 1892, when the property was transferred from the "United States of America -To- John F. Towell" by Patent. The latest purchase by the Trustees of the present Birch Point Interior property was in September, 1926, and the seller is documented as "Charles K. Dickerman, Northland Outing Company". In the period from 1892 to 1926 there were various owners, foreclosures, and public sales. The names reappearing in the ownership during these years are The Public, August Fitger, Percy Anneke, John F. Towell, and Charles K. Dickerman. Of incidental interest, August Fitger is listed in the Duluth census of 1920 as being 65 years of age, having immigrated from Germany in 1870 and becoming naturalized in 1877. He is listed as a "brewer" and he founded the Fitger Brewery in Duluth. Fitger and Anneke operated The Saloon in the Fitger Brewery, Duluth, and moved the saloon and restaurant to its present site in 1914 when it was renamed the Pickwick. It is still operating as a fine drinking and eating establishment.
A Trust Agreement dated September 28, 1926 controlled the property in the Interior of Birch Point. This property, the inside lots of Birch Point and Birch Point First Addition, St. Louis County, Minnesota, was purchased by subscribers who each owned either 1/20th or 1/40th part of said property. We have the original Trust Agreements, one of which was signed by those having two shares of stock, and another signed by those having one share of stock, representing 1/20th share and 1/40th share, respectively. There were eighteen who purchased one share each and eleven who purchased two shares each. Shares were sold for $50 each. The property was said to be for sale for $1,800, and it was feared that "if sale is not made, there is a likelihood of timber being cut therefrom". They raised $1,682.50, enough to purchase the property for $1,502.35 with the balance left in escrow for payment of taxes. Over the next four years, the entire $2,000 was received and the minutes of a November 5, 1930, meeting of the shareholders mentions "receipts of $2,000, and expenditures of $1,980.93". Apparently it was originally envisioned that there would be twenty participants as they state "the original Trustee's agreement signed by the twenty individuals who originally conceived this undertaking", and then refer to "a list of the original subscribers, and the names of other parties who later subscribed for an interest in this tract of land". In reality, there is documentation of twenty-nine individuals participating in the purchase. The original Trustees were Birch Point property owners Martin Tuttle and C. C. Holley, both of Des Moines, Iowa.
The majority of property owners and Interior Interest owners were from Des Moines so most of the early meetings of the Association were held in Des Moines. The first documented meeting of the "owners of the acreage on Birch Point, Lake Vermillion, Saint Louis County, Minnesota" was held at the Grant Club, Des Moines, Iowa, on November 5, 1930. A financial report was given, the Trustees were "authorized to assess each interest a proportionate amount of a sum to pay the taxes for the next two years, and provide a small fund for contingencies". In an informal discussion, it was decided "the owners of this inside property as a group, should take no action, either for or against a road of any kind being constructed through this property". There was a serious discussion of the construction of a road and it was felt that "those who are opposed to such public road are mostly those who have built cottages on Birch Point for the enjoyment of their families, principally because of the present privacy, and considerable time before which this will be changed. Those who are in favor of a public road are represented by the individuals who bought lots as a speculation, and wish a better market in which to sell out at a profit". It is mentioned that permission to build such a road would have to be granted by A. C. Anderson, as it would cross his property. A. C. Anderson was owner and proprietor of Birch Point Inn and in 1930 the large main lodge was located near the present site of the Ashley cabin and had porches overlooking both Big and Daisy Bays at the narrowest portion of Birch Point, leaving virtually no way to route a road around this lodge. Birch Point Inn at that time was a very viable and successful resort and included all of the land on both sides of the Point from the area where the Public Access road leaves Birch Point Road, extending to include the property now owned by the Mike family, with the Crewse cabin (now Oberstar) being the first private property of Big Bay and the Cushman cabin being the first private property on Daisy Bay. Automobiles for cabin owners coming by road in the 1930’s were parked in Mr. Anderson's large garage that was just inside the Birch Point Inn property near the public access road. The vacationers then walked to their cabins from the garage.
The next documented “MEETING OF CERTIFICATE HOLDERS, OWNING Interior of Birch Point, LAKE VERMILLION, MINN." was held in the Assembly Room, Insurance Exchange Building, Des Moines, Iowa, on May 18, 1934. Finances were discussed and Mr. Holley was congratulated for arranging to have the taxes reduced from $45 per year to $21.33. It was decided that an assessment of $2 for each one share holder and $4 for each two share holder would cover taxes for at least a two year period. The board had been unable to collect assessments from several certificate holders and there was a cumulative delinquency of $18. It was decided that those certificates be sold after sending registered notices to those involved. "Removing of trees from the interior by someone unknown and ways and means to apprehend the thieves were discussed" and the subject of replacing and putting up new "NO HUNTING" signs was discussed and no action taken.
The next meeting of the Certificate Holders owning the Interior of Birch Point, Lake Vermilion, Minnesota, was held in the offices of attorney H. L. Bump, Crocker Building, Des Moines (Iowa), March 25, 1937. Finances were discussed and the "trustees were empowered to make an assessment of $2.00 on share holders owning 1/40 stock, and $4.00 on share holders owning 1/20 share of stock. It was estimated that this assessment would pay the taxes for two years". It was voted unanimously that Ben Purdue be written a letter warning him to discontinue cutting live timber on the interior of Birch Point. (Ben Purdue was a general handyman and caretaker who lived year around in a cabin located at the present site of Corinne Bonicatto’s lovely log home.) The assessment notice sent to certificate holders included a letter which stated "It may be of interest to you joint owners to know that we have owned this property of 88 acres for ten years. We have kept it in its wild native state. Deer and other wild life still exist, native shrubs, flowers still abound, and giant Norway and White Pine trees have been kept from the lumberman's axe. The cost for taxes has been insignificant, -
50 cents to $1.00 per year, per certificate holder".
In the late 1930's, road construction was started on Birch Point beyond Birch Point Inn when Herman Olson privately built a road to his property, Birch Rock, Daisy Bay. Leslie French built a road off of that one to build his cabin in 1940. In subsequent years the road was extended to Dr. Claude Chapman's cabin (now Hendrick’s) and eventually to Morris Stephens' (now Schuchat et al) property. All of this construction was done privately and in general followed the platted sixty-six foot road right of way. The Birch Point Inn lodge burned in the early 1930's allowing road construction to proceed across that private property with access eventually being legally permitted. There is no documentation that the Trustees were consulted regarding the road construction, though it was discussed at the March 22, 1950, meeting.
A special meeting of the Certificate Holders was held in the office of H. L. Bump, Crocker Building, Des Moines, Iowa, April 5, 1941. A fourth Tax Assessment was approved in the amount of $6.00 for share holders owning 1/20 share of stock and $3.00 for those owning 1/40th of stock in the interior, estimating it would pay taxes for two years. Request by Northern Electric Cooperative Association to string power light poles through the Interior was approved. "A. C. Anderson of Birch Point Inn made a proposal to the Interest Holders that he would pay the taxes for ten years on the Interior, starting a year from now, with the understanding that he would be privileged to construct paths and put up such signs at various points in the Interior as would be of interest to hotel guests in strolling about the Point." This was approved with the understanding he remove brush to reduce fire hazard. So far as I can tell, no payment was made by Mr. Anderson and there were no additions to the paths on the Point, one of which ran near the shore completely around the Point and the other ran to the end of the Point on the Big Bay Side, approximately where the Birch Point Road is now located. I don't recall any signs having been put up in the interior.
The next meeting of the Certificate Holders was held in the law offices of H. L. Bump, Central National Bank Building, Des Moines, April 8, 1948. The treasury had $14.71 and the taxes due were $30.64. An assessment of $8.00 for the 1/20 Interest and $4.00 for he 1/40 Interest Holders was approved. There was a discussion of a bill for $20.00 from Mr. Goode, proprietor of Birch Point Inn, for taking care of the road and guarding cottages near him. No action was taken on this matter.
The next minutes recorded are of a meeting of the "Certificate Holders" held in the law offices of Putnam, Putnam, and Putnam, in Des Moines, March 22, 1950. Max Putnam, a Birch Point property owner and Interior Certificate holder, was an attorney with that firm. The minutes of that meeting indicated that the taxes had escalated from $29.75 in 1947 to $66.62 in 1950! The money originally held in escrow had been spent for taxes and now assessments were made of the Certificate Holders and that year the 6th assessment was made and that was for $5 per share. Discussions at that meeting included formation of a nonprofit corporation to hold the property, possibility of making this portion of Birch Point a game refuge and posting it for "NO HUNTING", and a letter was read from J. E. Sandell "suggesting that the Interior be kept in its natural state if possible. This matter was discussed and seems to be the opinion of all present that this should be desired". There was discussion of a road on the Point, but no action was taken.
The next documented meeting was held in Des Moines on April, 11, 1952, at which time Max Putnam was asked to study the feasibility of forming a nonprofit corporation under Minnesota laws to take over the interior. Another assessment of $5 per share was made for payment of taxes, documented as the seventh assessment.
A meeting was held in Des Moines on March 15, 1956, at which the Trustees recorded time an interesting historic review. At that time they estimated that the "tax burden over 29 years has just been a little over $1.00 per year for the 2 (share) Interest Holders and half that for the 1 (share) Interest Holder". This refers to 1/20th owners and 1/40th owners. Also of interest in these minutes is reference to a "fund specially raised to send H. L. Bump and C. C. Holley to attend the Anderson lawsuit in Duluth several years ago". It is presumed that the lawsuit referred to had to do with road access to property on Birch Point which was denied private property owners by A. C. Anderson who owned Birch Point Inn and who desired control of traffic through his property. At various times a locked chain was placed across the Point at its narrowest spot and permission had to be granted by Anderson to get on the Point from that area. A modest fee was charged on occasion, and this practice continued with the subsequent owners of Birch Point Inn, Joe Stay and Jack Goode.
A special meeting of the Certificate Holders was held on May 29, 1958, at 720 Des Moines Building, Des Moines, Iowa, to appoint a successor Trustee to Martin Tuttle who by reason of health is required to resign. Max Putnam, Des Moines, was named successor trustee.
The next special meeting was held in the law office of Max Putnam, Des Moines, Iowa, on February 12, 1960. C. C. Holley and Max Putnam resigned as Trustees and Morris Stephens, Des Moines, Iowa, and L. M. Hatlestad, Duluth, Minnesota, were elected Trustees, and were to serve as our Trustees until 1992. The records were given to Mr. Stephens. In their notice of retirement, Putnam and Holley stated that they "hope that you (the Interest holders) will cooperate with the new Trustees in all matters pertaining to the Interior, that its natural beauty may be protected and safeguarded. Turned over to the new Trustees were:
1. Loose leaf record book
2. Two original Trust agreements
3. Deeds
4. Abstracts
5. Bank balance of $41.15
6. Book of Interior Certificates
7. Original blue prints
Stephens and Hatlestad acted as Trustees for greater than 30 years with only the Certificate Holders continuing to be assessed for taxes until 1963 when they decided to broaden the base and ask for contributions from other property owners whose property is adjacent to the Birch Point Interior. All such recorded property owners were contacted to determine if they would be agreeable to an assessment of five to ten dollars per year to help maintain the Interior in its natural state."
In 1965 the Trustees offered membership in the Interior Association for $100, as well as solicited donations of $20 from the 35 or 40 interested property owners. The Trustees wrote to 58 property owners and received $20 each from 16 owners, enough to pay the taxes of $313. Due to the poor response, the requested donation was increased to $35 in 1967.
A meeting was held at the summer home of Gordon and Ruth Amundson on August 6, 1978. This is the first documentation of a meeting being held outside of Des Moines, Iowa. At this meeting there was discussion of the road and power rights of way, legal status of the Trust, request for use of Interior property for tennis courts, desire of contributors to have financial reports, and proposed change of status of the Interior for tax purposes.
In the subsequent years the Trustees performed diligently in raising the money to pay the taxes. Helen Klingsporn was involved as Secretary/Treasurer of the Association and had not only solicited contributions, but was instrumental in obtaining tax reduction by having the property reclassified from "non-homestead seasonal recreational residence" to "non-homestead timber".
In 1991 Leo (Mike) Hatlestad and Morris Stephens resigned as Trustees and in 1992 named Helen Klingsporn, John Olson, Michael Hatlestad, Mark Moberg, and Bayard French as successor Trustees of the Interior Association. The new Trustees had their first meeting July 3, 1992, and named Joan Hatlestad as Secretary/Treasurer for two years. She prepared the minutes of that meeting and those minutes and minutes of subsequent meetings are available. Annual meetings have been held since 1992 at the Greenwood Township Hall in late July or early August.
In order to have a better understanding of the land controlled by the Trustees, an Ecologic Survey was authorized by the membership and was conducted by Steve Wilson of the Minnesota Department of Natural Resources in 1995. He produced an interesting and worthwhile survey that reinforced our respect for this precious forest. Copies of the survey are available by contacting a BPIA Director.