Following the election and Minnesota's soon-to-be statehood, the company then turned to advocating for president
James Buchanan to establish the
Dakota Territory, hoping to establish a Democrat-led monopoly over the territory. The newspaper 'Minnesotian' warned that the Dakota Land Company aimed to "gull Congress into passing an organic act, and Buchanan will be only too glad of an opportunity to reward a dozen or two hungry Democratic leeches with fat offices, good pay, and nothing to do." On 24 October 1857, members of the Dakota Land Company held a meeting in Sioux Falls and decided that instead of waiting for permission from Buchanan or congress, the settlers in the area would meet in the paper town of
Medary and assemble their own territorial government. In May of 1858, the unrecognized territorial government sent Alpheus G. Fuller as territorial delegate to congress. His admittance was supported by
Thomas L. Harris, who believed the falsified population number of 10,000-15,000 residents in the territory. Fuller described a densely populated area, already populated with large towns and fully settled. The
House Committee on Elections refused to seat Fuller. Worsening the situation for the Dakota Land Company were the
Dakota themselves. Nearly all settlement outside of Sioux Falls was illegal, and as there was no authority willing to negotiate with them, Medary and
Flandreau (two paper towns that the Company had moved people to as to increase legitimacy) were burned. Medary on June 10, 1858, and sometime a few days later, Flandreau as well. Governor Sibley proposed the State of Minnesota raise a militia for revenge. No such militia was assembled. Around this time, Samuel J. Albright founded the Dakota Democrat newspaper. However, as Albright was an owner of the Dakota Land Company, the true purpose of the newspaper quickly became advertising land deals in the territory, and most copies were simply sent to be sold in eastern states to attract settlers. On September 18, 1858, Dakota Land Company owners declared that an election for a territorial government would be held on October 4th. Henry Masters was declared governor after the election, which was entirely fabricated by the Company. The election procedure was as follows; On election day, three or four men would set out in wagons, arriving to the various 'precincts', often locations with no people at all, write down a number of names, who were claimed to be future settlers. In reality, zero ballots were cast. In November of 1858 the 'Squatter Legislature' assembled. The Company-owned Legislature sent Fuller to congress to legalize the territory, and a bill to do so was proposed by Minnesota Democrat
Henry M. Rice. The Bill would not pass committee. In June of 1859, the Dakota Land Company raised its flag over every settlement and landmark it controlled, asserting that it had complete control over the territory. Despite achieving its goal of a political monopoly over the territory, the company had neglected its actual business practices, leaving it with a balance of just $25.10 (as reported by Secretary Samuel Wigfall) by 1859. On September 13, 1859 another election with entirely fraudulent elections was held, this time electing Jefferson P Kidder to go to congress. It would take him until 12 April 1860 to arrive, and he was once again turned down. The scheme finally collapsed when the 1860 census returns were released, revealing that the entire territory had a population of 2,376. President Buchanan would finally officially found the Dakota Territory on March 2, 1861. However, incoming Republican president
Abraham Lincoln would legally appoint all offices, ending Company control. ==Legacy==