Raccoon Village, which is prominently identified with the early history of Jefferson Township, was located in the south east corner of the township, on the North bank of the Wabash and Erie canal, and originally consisted of a brick house with two rooms and a number of log cabins, all erected by the Government for the occupation of the Indians.

The place was named in honor of Chief Raccoon, who occupied the brick house referred to. After the advent of the white people, the land was sold, and the brick house passed into the hands of Jesse Vermilyea. When the canal was built, this place became a landing, to which farmers hauled their produce for shipment, and spring usually found immense piles of logs and wood here ready for transportation.

The place was also a favorite resort for idlers, and her on a pleasant Sunday in summer, a crowd of men and boys would generally be found smoking and discussing the topic of the day.
Ghost towns of Huntington County. Doris M. Chambers.

Near the site of Allen County Road and US 24, stood the Native American Village of White Raccoon. The area served as a landing for the canal before it was deserted in 1882. For untold years it was on the portage between the St., Mary's River and the place on the Wabash River known as The Forks of the Wabash.

North on County Line Road is the Blee Manse built in the 1860's by the brothers Lathan, James, John, and Thomas Blee. James Blee joined with Charley Stephel in shipping timber, logs, hoop poles, grain and similar cargo by canal boat. Their boat Plow Boy hauled whiskey exclusively and was known up and down the line. For a time, the Blee Manse served as a church for where Mass was celebrated for Catholics in the area by Rev. Father Benoit of Fort Wayne. Father Benoit was said to have been loved and admired greatly by the Indians of White Raccoon village. When the Miami were moved to lands in Kansas in 1847, Benoit traveled with them offering comfort and consolation to them during their evacuation.
Wabash & Erie Canal Notebook Thomas E. Castaldi. Old Fort News. 1992

The canal was finished from Fort Wayne to Huntington, a distance of twenty six miles, and so level was the country that there were only one or two canal locks required in that distance.
History of Wabash County - 1884 - Page 106

There is a tale about an eatery on this section of the waterway. The establishment became renowned for its fine food. As time went on, passengers started disappearing from the canal boats. It was believed that the eatery had something to do with the phenomenon. Under the cover of darkness the sheriff and his deputies checked over the surrounding area near the waterside restaurant. They found a human body and then several others. According to the tale, some of the establishment's delicious food was actually human flesh"
Miami Wabash & Erie Canal Country, Harry G. Black 1991 page 20.
Note: This is the only accounting of this fable that I have been able to find, and thus its' veracity may be suspect, however it makes for a good story!