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Alexander McKenzie, the Northern Pacific's political agent in northern Dakota, demonstrated the power of outside corporate interests when he conspired with Nehemiah Ordway, the corrupt Republican governor of the Dakota Territory, in 1883 to transfer the territorial capital from Yankton to Bismarck, a town located on the railroad's main line. Hard feelings regarding the relocation motivated residents of southern Dakota Territory to push for the creation of two separate states.

On November 2, 1889, President Benjamin Harrison signed legislation admitting both North Dakota and South Dakota into the Union.

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