George Wellington "Cap" Streeter (1837 – January 22, 1921) was born near the town of Flint, Michigan. From 1886 to 1921 Streeter spun lies, forged legal documents and used violence to wrest 186 acres (0.75 km2) of Lake Michigan shoreline away from its rightful owners. Failing in his efforts to defraud the wealthy landowners, he then turned to robbing the poor by selling them land that he did not own. This prime real estate in Chicago is today nonetheless known as Streeterville.
During a storm on July 10, 1886, the former Mississippi River boat captain and circus owner ran his steamboat, the 35-ton Reutan, onto a sandbar 451 feet (137 m) off Chicago's north shore near the foot of Superior Street.
Unable to move the vessel, which slowly silted into place, Streeter claimed it made up the independent "United States District of Lake Michigan" and thereby was not subject to the laws of Illinois or Chicago.
Ever since the downtown clean-up after the Great Fire in 1871, Lake Michigan had been used as a dump by building contractors looking to get rid of backfill and general rubble. Streeter invited such contractors to dump their rubble on the sandbar where the Reutan sat, extending the size of his land considerably. Over time, this landfill connected the Reutan to the city. As the landmass grew, collecting more dumped rubble as well as silt from the lake, Streeter began to issue deeds to the land to others who saw themselves as "homesteaders" in the growing city of Chicago. City planners and founders saw otherwise.
That summer, industrialist N.K. Fairbank, who claimed rights to the area, arrived to inform Streeter he was an illegal squatter and would have to leave. Streeter chased Fairbank off with a shotgun. Shortly thereafter, Streeter also chased away the constables who had come to evict him. Further attempts to remove them were met with gunfire and pots of scalding water. After one such raid resulted in his arrest for assault with a deadly weapon, Streeter was acquitted on the grounds that birdshot was not considered deadly.
Although Fairbank sued Streeter in 1890 and won, Streeter maintained his hold on the District, which was now home to prostitutes, the homeless and other "undesirables." In 1892, it was estimated that the land was worth around $300,000, a substantial sum in that era.