James Rutledge, a native South Carolinian who co-founded New Salem with John Camron, erected a building as a residence in 1828. Once New Salem began to prosper, he converted it to an inn or tavern where travelers could enjoy a meal and bed. By law, tavern rates were fixed at 37-1/2 cents per day for a meal and overnight stay. The Rutledge family left New Salem in early 1833. Nelson Alley purchased the tavern and rented it to Henry Onstot and later Michael Keltner. In 1837 Alley sold it to Jacob Bale, who by this time oper-ated both the carding mill and the saw and grist mill. The Bales used it as a residence for many years. By 1880 it had decayed to ruin.