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Despite being one of the largest cities in Ohio at the time, the Ohio & Erie Canal passed by Lancaster. On February 6, 1826, numerous citizens petitioned the State of Ohio to charter a private company to construct a lateral canal. The charter was granted 2 years later to the Lancaster Lateral Company. In July, 1827, a local surveyor named Samuel Carpenter was hired to plan the route. Carpenter had the canal laid out by early 1829. Construction didn't begin until 1831, due to failed contracts and a lack of laborers. The Lancaster Lateral was officially opened on July 4, 1834. The Lancaster Lateral met the Ohio & Erie Canal at Carroll and terminated at Lancaster. The 9 mile canal contained 2 canal locks, both of which were constructed of wood. One was located at Carroll and the other at Lancaster. The canal locks were shallow, and the canal was narrow, but it served it's purpose. |

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The Hocking Valley was rich in natural resources, but the lack of good transportation for those resources kept the markets small. In 1835, Athens County and Hocking County sent a local salt manufacturer named Calvary Morris to the State House to represent them. Morris was able to convince the State of Ohio that a canal through those counties would bring prosperity not only the Hocking Valley, but other areas of the state as-well. The canal board sent Samuel Carpenter to the Hocking Valley to determine if the extension was actually worth financing. Carpenter only had to travel a short distance before realizing the region's worth. The coal alone convinced him. In 1836, the State of Ohio agreed to finance the project. The original idea was to canalize the Hocking River, much like the Muskingum. However, that idea proved to be impossible. In July, 1836, the State of Ohio was authorized to purchase the Lancaster Lateral. A plan was set forth to extend it to Athens. Construction began on the first section (Lancaster to Enterprise) in the early part of 1837. The second section (Enterprise to Nelsonville) was started in the fall of 1837. The final section (Nelsonville to Athens) wasn't started until 1839. |

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Problems delayed the construction from day one. The main reason for the delays was the state's financial problems. The Panic of 1837 caused investors to stop paying their contractors. Laborers were also hard to find due to all of the canal projects going on simultaneously. The first section of the canal was completed in 1839, followed by second section in 1840. The third section took the most time to complete. The canal reached Monday Creek in 1841, Chauncey in 1842, and Athens in 1843. A grand opening celebration took place at Athens on October 20, 1843. |

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The canal helped the Hocking Valley prosper, but it was short lived. In 1869, The Columbus and Hocking Valley Railroad began running through the region. This competition eventually led to the demise of the Hocking Valley Canal. The 1873 Flood destroyed much of the canal below Logan. The Chauncey to Athens section was abandoned after the flood. The Nelsonville to Chauncey section was abandoned in 1876. The Carroll to Nelsonville section was still used up until 1894. Much of the sandstone from the canal locks were sold to anyone interested. The Hocking Valley Canal was 56 miles long, with 26 lift locks, 5 guard locks, 34 culverts, 8 dams, and 1 aqueduct. |
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