In the fur-trade era South Dakota was successively attached to territorial governments in Indiana, Louisiana, Missouri, Michigan, Wisconsin, Iowa, and Minnesota, and finally Nebraska. As Minnesotans prepared for statehood in the 1850s, two land companies were formed, the Dakota Land Company in Minnesota and the Western Town Company in Iowa, each wanting to secure desirable land in the anticipated Dakota territory. By spring 1857 both companies had built separate communities at the site of present-day Sioux Falls. After Minnesota became a state in 1858, the settlers, though fewer than 50, tried to set up a territorial government, but the federal government refused to recognize it.
By early 1861, however, hundreds of settlers had migrated to the region, establishing communities at Vermillion, Yankton, and Bon Homme and occupying farms in the surrounding lands. On March 2, 1861, President James Buchanan signed the act establishing Dakota Territory, which included all of present-day North and South Dakota, as well as large portions of Wyoming and Montana. President Abraham Lincoln (1861-1865) appointed his personal physician, William Jayne, as first territorial governor, and recognized Yankton as the capital. Lincoln’s cousin by marriage, John B. S. Todd, won election as the first territorial delegate to the U.S. Congress. "South Dakota" © Emmanuel BUCHOT, Encarta, Wikipedia
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