In 1849, Hannah partnered with A. Tracy Lay and James Morgan, both other Chicago lumbermen, to found Hannah, Lay and Company, a lumber firm with property at the head of the
Grand Traverse Bay and along the
Boardman River, then known as the "Ottawa River". This property was purchased from Horace Boardman, a native of
Naperville, Illinois. Boardman, a wealthy farmer, sailed to the bay in 1847, and built a small
sawmill. In 1851, Hannah, Lay & Co. purchased the sawmill from the Boardman family, and began cutting 50-60 thousand acres of land in the Boardman River valley. Hannah's company improved the now-dilapidated mill, increasing its investment and promise, thus attracting workers and settlers to Northwest Michigan. In 1853, the only operating post office in the Grand Traverse Bay region was the one located at
Old Mission, which was then known as "Grand Traverse". While in
Washington, D.C. in 1852, A. Tracy Lay, one of Hannah's business partners, had succeeded in getting the U.S. Post Office to authorize a new
post office at his sawmill settlement, which was to be known as "Grand Traverse City", after the eponymous bay. Lay proposed this name for its post office, but the
Post Office Department clerk suggested dropping the "Grand" from the name, as to limit confusion between this new office and the one at nearby Old Mission. Lay agreed to the new, shortened name of "Traverse City" for the post office, and the village took on this name. As
Traverse City grew, Hannah, Lay & Co. offered more jobs, such as general mercantile and banking. By 1856, the company was the largest employer in the area, essentially making Traverse City a
company town; anyone who desired a job with Hannah, Lay & Co. would receive one in Traverse City. The company built much of the infrastructure along Front Street and the Boardman River, a majority of which still stands today. == Political career ==