See portrait at right - gent is presumed to be (not proven): Knut (AKA Knud AKA Knudt) Peterson, 1820-1898 - seated outside the furniture store, then operated by his son, John C. Peterson (Johan[n] Carl), at 503 N. Lincoln Ave, Chicago, IL., circa 1890, but before 1898. The building has survived, albeit that the number has changed (in use as a commercial art gallery, ca. 2015).
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Knut was born in Norway. The 1860 census shows him living in Chicago Cook County with his family, as "Peter Knutson". The 1870 census shows him living in Chicago Cook County with his family and possibly 2 other families. His occupation was ship carpenter. He owned $2000.00 in real estate and had a personal estate of $500.00 and was a citizen of the United States. He emigrated in 1853 with his immediate family.

Note: 1870 Census - Peter Ellefsen (AKA Ellifsen) Male age 33 years old occupation Sailor, Real estate worth $6000.00 and personal estate worth $500.00 married to Caroline Peterson.

SOURCE: Research effected by Randall Seiler.
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The (American) family name evolved to: "PETERSON" and is believed to have hailed from his father's second 'given-name' (as per Norwegian naming traditions). Becoming "Peterson" in the USA - and so, it remained. i.e. Knud Peder Knudson (as per the old Norwegian records), hence: Peder as a given-name in Norway became Peter, and then the surname PETERSON (for his children) in America (apparently, his preference over the given-name Knut, at some stage).
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We find, "Knut Peterson", as a Ship's Carpenter (per US Census records) was from Sannidal, Telemark county, Norway. Knut (AKA Knud) was buried on June 19, 1898. (See: Cook County IL., Report of Death, record: 11322, 662. Death certificate signed and completed 17-Jun-1889).
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Married: Jensine Jensdatter, born 27-Apr-1820 in Kragerø, Telemark, Norway. They were married in Norway. They resided in Chicago after immigration to USA in 1853 (date, per Norwegian records). "Jennie" is buried at the side of her husband. She died on 24-Mar-1892 (See: Cook County, IL., Physician's Certificate of Death, record: 14304, 4188. Death certificate signed and completed 24-Mar-1892). Her burial took place on 05-Apr-1892, following the death of Grace Myrtle Peterson (grandchild, aged 2 years, 1 month, and 8 days).

Note that the grandmother and grandchild were buried on the same day. The cemetery record notes the comment: "Scarlet Fever". Grandma is in grave 7, child is in grave 8. Jensine "Jennie" died at 503 Lincoln Avenue, Chicago. At that time, 503 Lincoln Avenue was the address of a Furniture Store operated by their son, John Charles Peterson. Also buried in this family plot are: John Charles Peterson ("Johan Carl Peterson", grave 10), and his wife, Bertha Gielow-Peterson (grave 11), as well as several siblings and children.
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We are left to surmise upon the following: there is evidence to support a former spelling of the family surname as "Pedersen" (son of Peder) - that spelling appears on the Graceland Cemetery records, and also on the 1853 emigration records from Kragerø, Telemark, Norway where his departure is listed as: "Knut Peder Knutsen Smedsbukt, 32 years of age, Tømmermann (carpenter), Sannidal" [see below]. i.e. Knut Peder (Peter) Knutsen (son of Knut) from Smedsbukt (farm, place-name), near to Sannidal, in Telemark county, Norway.

Peter appears to have been his naming preference, and was also (perhaps) a attempt to (slightly) "American-ize" both his given-name and his son's surname. In any case, PETERSON became the de-facto spelling for ALL of his descendants in America.
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Name source: death certificate of John C. Peterson, his son.
Married: Jensine "Jennie" Jensdatter
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"EMIGRATION FROM THE KRAGERØ AREA 1853"
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Knut Peder Knutsen Smedsbukt 32 years
Occupation: Shipstimb.
m. Sannidal
+ Jensine Jensdatter 32 years - Sannidal -
+ Karen Marie 9 years - Sannidal -
+ Johan Karl 7 years - Sannidal -
+ Nils Peder 4 years - Sannidal -
+ Karoline Jensine 1 years - Sannidal -

SOURCE: [link]
http://home.online.no/~kjendal/1853.html
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Name: Knud Peterson
Residence: Chicago, Cook, Illinois
Birthdate: 1820
Birthplace: Norway
Relationship to Head: Self
Spouse's Name: Jennie Peterson
Spouse's Birthplace: Norway
Father's Name:
Father's Birthplace: Norway
Mother's Name:
Mother's Birthplace: Norway
Race or Color (Expanded): White
Ethnicity (Standardized): American
Gender: Male
Martial Status: Married
Age (Expanded): 60 years
Occupation: Carpenter
NARA Film Number: T9-0192
Page: 495
Page Character: C
Entry Number: 2871
Film number: 1254192
Household Gender Age
Knud Peterson M 60
Spouse Jennie Peterson F 60
Child Frank Peteron M 17
Child Lizzie Peterson F 23

SOURCE: US Federal Census 1880, Cook Co., IL.
Source [link]: https://familysearch.org/pal:/MM9.1.2/MHGF-NQF/p_353844368
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CHILDREN:
i. Karen Peterson, b.~1844, Sannidal, Telemark, Norway, d.????.
ii. Johann Carl (John Charles) Peterson, b.31-Mar-1846, Sannidal, Telemark, Norway, d.10-Aug-1918, Chicago, Cook C., IL.
iii. Nils "Nickolous" Peterson, b.~1849, Sannidal, Telemark, Norway, d.1926, Chicago, Cook Co., IL. (wife Caroline).
iv. Paulina Peterson, b.~1850, Sannidal, Telemark, Norway d.????.
v. Karoline Jensine Peterson, b.~1852, Sannidal, Telemark, Norway, d.????, probably: Chicago, Cook Co., IL.

[All of the "above" were born in Norway, the family immigrated to USA in 1853, settled in Chicago. Whereas, all of the "below", were born in Chicago.]

vi. Elizabeth "Lizzie" Peterson, b.11-Sep-1856, Chicago, Cook Co., IL., d.11-Jun-1880, Chicago, Cook Co., IL.
vii. Joseph Peterson, b.1860, Chicago Cook Co., IL., d.28-Feb-1866, Chicago, Cook Co., IL.
vi. Benny Peterson, b.1860, Chicago Cook Co., IL., d.1861, Chicago Cook Co., IL.
vii. Frank Linn Peterson, b.04-Mar-1863, Chicago Cook Co., IL., d.23-Apr-1940, Havre, Hill Co., MT.
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Internment at Graceland Cemetery Chicago Illinois June 19, 1898. Internment number 65412. Burial plot, listed under name of "Knud Pedersen" on Graceland Cemetery record, Chicago, IL.