J L.
j.' '-art' 1 "
MnHDAY. FEBB. 1, 1932 . -.
PLATTSIIOUTH SEM - WEEKXY JOURNAL
PAOZ TWO
Early History
. of Plattsmouth
is Recounted
Continued from page one.
half of the $200,000 in bonds with
coupons attached providing that the
Commissioners would agree to levy
taxes annually to pay interest on
bonds not surrendered and further
agree to deliver to the Burlington for
cancellation, the penal bond held by
the county in the amount of $300,
(Mt) to guarantee execution of the
original contract.
The Commissioners then offered a
c.iuntcr compromise wherein they
agreed to guarantee payment of
$100,000 of the bonds and accrued
intierest and surrender the penal
hond as proposed by the Burlington
hut asked in addition that the com
pany surrender coupons to the
amount of $20,000 on the bonds t
le retained by the company. This
amended compromise was acceptable
to the Burlington and the demurrer
to the Commissioners suit was with
drawn but the company asked that
tiie compromise be incorporated into
an order of ccurt and this was so
done and signed by District Judge
George B. Lake.
The $100,000 in bonds were paid
ty Cass county as agreed and the
county has no bonded indebtedness
today.
The controversy between the city
and the Burlington presented the
rr.cst difficult problem of the three.
The whole matter revolved around
these two issues: the inability cf the
city to pay and the allegations that
the Burlington had failed to fulfill
its contracts with the county -and
city.
It is interesting to note that on
3Iay 17. 1ST3, City Treasurer Wm.
"Wintersteen reported to the Council
that he could find no" record of the
issuance of the $50,000 in bonds to
the Burlington but had found record
cf acceptance of the bonds by the
railroad company on page 22 of Jour
nal "B" of the city council and fur
ther that two years interest was due
April 15. 1S72 amounting to $10,
000. The Burlington annually paid
its city taxes in surrendered coupons
but this amount by no means offset
the interest due as may be seen from
the tax payment made June 28. 1873.
amounting to about $2,000. It will be
recalled that the first two years of
interest was remitted by the com
pany as a part of the contract so the
first interest payment was not due
until 1873.
In order thai the city might have
an official record of the bonds issued
to the Burlington, the City Clerk
was authorized to go to the offices
r.f the company and make a copy of
the bonds and coupons. January 24,
1S74. a copy was obtained and re
corded on page 521 of . Journal 'B"
so that three years after the city en-'
tered into ah-agreement with')tJri
Burlington, it made an official rec
crd of the negotiation. The record
cf the Council gives no reason why
this preoauticn had not been taken.
It may have been an oversight or
inexcusable carelessness.
Ocir.g into the year 1874, the in
vestigator finds the financial condi
tion of the city in a worse plight
than ever. April. 22. 1874. the re
port of the City Clerk showed inter
est in arrears to the Burlington
amounting to $15,000. Deducting
frcni this. $2,069.21 in taxes paid by
the company in coupons, left an un
paid balance due to the company of
$12,930.79.
With three years unpaid interest
due to the railroad, it is not sur
prising that Vice-I'resident Perkins
wrote to the Council July 27, 1874
asking some action on the delinquent
xupons. Realizing the- inability of
the city to pay, the Council on July
25th had already passed a resolution
asking the Burlington to surrender
all delinquent coupons and the city
would guarantee payment cf all m
icrest after 1S75. Mr. Perkins sug
gested in reply that if the company
granted this concession that tho
BAYER.
is always AE H
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Aspirin is the trade-mark of Bayer manufacture of monoaceticacideste
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surrendered" coupons ought to be
placed in trust to guarantee future
payments. The Mayor appointed a
committee of five councilmen to at
tempt a compromise. They were:
Pollock, Johnson, Wayman, Carruth
and Nichols.
On August 3, 1874, Mr. Thomas
Pollock as chairman of the compro-'
mise committee read a lengthy re
port to the council in which the views
cf the city were fully set forth. The
report reviewed the voting of the
bonds in 1869 as made "in good faith
by the citizens of Plattsmouth who
trusting in the representations made
to secure such vote, viz. that the
management of the said railroad
company should be such as to pro
mote the growth and prosperity of
the city not only voted bonds as
above said to aid in the construction
of the road, but in addition, t . .
freely donated to said railroad com
pany 200 lots." The report further
pointed out that it was through the
efforts of the citizens of Plattsmouth
that a grant of land from the state
had been obtained for the right-of-way
and "thus did the citizens of
Plattsmouth give evidence of their
faith in the representations of the
company and of their desire to aid
said company so far as in their power
they could, and up to the time when
said railroad commenced in its agree
ment, the citizens of Plattsmouth al
ways showed a disposition to help
said company." The case for the
city further claimed that the bonds
were issued on condition that the
Burlington would establish and oper
ate within the corporate limits its
main shop. and "should here have
its headquarters and principal offices
and make this the Initial point ror
the maintenance and operation of
said road." Concluding its report.
the committee "finds that the said
railroad company has not in good
faith carried out the conditions on
which it received such aid from the
city but that the spirit of the writ
ten contract and the vernal agree
ments have been disregarded: That
instead of retaining its real estate
in the city, donated by our citizens
and which was intended and expect
ed would give the said company an
additional motive to use its influence
lo advance the prosperity of the city" j
the land was sold at public auction
shortly after it was deeded to the
company.
The Burlington was also charged
with not building as large a shop
plant as "our people expected, though
ample ground was given." It was
complained that the passenger depot
was to be located at the foot of Alain
street but that it had been built
further up the river "under a bluff
where passengers cannot see our
city." The Company was reminded
that Plattsmouth was to be "the in
itial point but that it is merely a
way station and Omaha is the real
initial point." It was charged that
Plattsmouth trains were known as
stub trains" and that with Omaha
as the initial point of the road.
Plattsmouth merchants had been de
prived of through express rate prf-'
vileges. Tne report canea ine at
tention of the Council to the promise
that the Burlington would use its
influence "to enhance the real estate
values of Plattsmouth, but whether
from hostility or other motives" real
estate values in Plattsmoutn naa
steadily depreciated. "These viola
tions of the letter and spirit of the
agreements have caused hostility in
Plattsmouth and coupled with It is
the uneasiness that the shops will
be moved." The report urged that
as Plattsmouth was the largest ship
ping point in the state for produce
and live stock "that it deserves some
consideration aside from the con
tract." For these reasons, the committee
recommended that in view of the
failure of the Burlington to perform
the obligations contained in the writ
ten and verbal contracts and the
implied understandings, that if the
road attempted to make forcible col
lection of delinquent interest that
"we will raise the question of for
feiture of the bonds." The report
was adppted and a copy ordered sent
to Vice-President Perkins. No far
ther progress was made toward a
compromise and nothing was done
Genuine Bayer Aspirin, the kind
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users have proven safe for more
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the word genuine.
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physicians and druggists every
where. It doesn't depress, the
heart. No harmful after-eflecU
follow its use.
Bayer Aspirin is the universal
antidote for pains of all kinds.
. 1"J1 '.ti UJ !.' air
during 1875 as far as the record
shows. In other words, the record
shows no report between the report
Just reviewed dated August 3. 1874,
and a new report made on June 3,
1876.
The readers attention - should be
called here to the facts bearing out
the premise made at the opening of
the chapter: that there was consid
erable difference of opinion as to
what Plattsmouth expected the Burl
ington to do and what the railroad
company actually planned to do for
Plattsmouth. Furthermore, it should
be noted here that the Council re
port of August 3rd refers in several
places to "expectations," "implied
agreements" and "verbal contracts"
which are not a part of the written
contract as reproduced on a preced
ing page. Most of the details which
are enumerated in the Council's, re
port are not a part of the written
agreement except in a general way
and it was upon the written article
that the bonds were delivered. It
does some conclusive .that those. in
dividuals who carried on the negot
iations with the railroad company
did have the same Interpretation of
the contract as is contained in- the
report to the Council by Mr. Pollack
but the written contract is not at all
clear when it conies to a question' of
binding the railroad on these points;
On June 3. 1876, or almost two
years later, the Council again took
official notice of the problei.i of pay
ment of delinquent interest on the
Burlington bonus. The 'Conciliation
Committee as it was now called, en
tered a long report on the record on
this date which was not nearly so
militant nor criitcal of the railroad
crmtianv r.s the rencrt of 1S74. The
Committee (stated that it had esamin-
ed the proncsition submitted to the
voters March 30. IS 69. and voted on
April 24, 1S69, and also the resolu
tion of the Council of June 3. and
the acceptance of the railroad com
pany dated June 15. 1869 and that
it had, discovered that under the call
of the election, only 40 of the
bonds were to be delivered when the
first ten miles was completed: 40
more when the second ten miles whs
finished and the remainder v-ieu tne
line was completed to the west end
cf the county. This wis a feature
tnat the report of 1874 had not
brought out for it will be recalled
that the bonds were all delivered
prior to any construction work. The
report .of 1S76 pointed out an addi
tional fact which had not been ar
gued in the report or 1S74. This
was that the Burlington was requir
ed by the federal charter to locate
their initial point at a place south
of the Platte river and that "the
company has disregarded that fact
. . . whether this can be substan
tiated or shown up is a matter that
the committee is unable to say. The
Committee urged that this point be
investigated "altho it does not in
the least affect the question of our
bonds" and the Committee expressly
stated that it would not make any
statement relative tothe validity. of
tWe bonds- under the,, execution. of
tbe contract.-- -3 ' 'A' "
, The Committee also raised the'fol
lowing question relative to a con
test with the Burlington: Can the
Mayor or Council now alter the ar
rangements under which the bonds
were voted? Can this present council
annul acts of its predecessors whe
ther they were legal or not? Can
this Council compromise contrary to
the original proposition without a
vote of the people? Has the company
complied with the contract of is there
other considerations apart from the
original contract? In view of these
facts and questions, the Committee
made this recommendation: that the
city levy a tax beginning in 1876
to pay the interest and principal on
bonds providing the company will
surrender all interest coupons due
and unpaid except a number suffi
cient to pay taxes due the city and
agree "to maintain in the corporate
limits of the city of Plattsmouth
there general and principal business
offices, passenger and freight depots
and the other necessary buildings na
turally belonging or pertaining to
said railroad company's business."
This clause was an important one
in the minds of the Council though
it is clear that it was not a part of
the original written contract. Now
the Council was trying to make this
point sure. On June 8th a letter to
Mr. Perkins stated the proposed com
promise of the city as just outlined.
But this letter was much more con
ciliatory than the correspondence of
1874. In his reply on June 20, Mr.
Perkins said, "I echo heartily the
wish that proceedings at law may
be avoided." But he came to the
point immediately in regard to in
cluding a clause in the compromise
binding the company to maintain its
business headquarters at Platts
mouth by saying tersely, I consider
it hardly practicable o attach new
conditions now. The bonds are sub
ject to the conditions upon which
they were voted and no other." He
reminded the Council that the ques
tion at the moment was, "If the back
coupons are returned, what security
do we have that future interest will
be paid?" Mr. Perkins suggested as
before, that the delinquent coupons
be put in trust or under an order of
court as a. guarantee of future pay
ments. In closing he expressed the
opinion that, "we can. manage, tbi?
matter harmoniously leaving the
conditions upon which the bonds
were issued undisturbed." It was
clear that the company was not go
ing to retreat from its written con
tract as far as it had bound itself
to perform certain things. Any re
quest on the part of the city to the
Burlington was invariably followed
by a demand from the company for
more ground. In this, way, the
amounts' which the city asked to be
refunded were kept at a minimum.
June 30, 1876, a letter was received
asking' for more lots for the shops
and the Council as usual instructed
the Mayor and Clerk to go to Burl
ington and assure them they could
have the required land. July 1, the
Conciliation Committee reported
again to the Council and recom
mended that the city bind il&elf by
an order 'of court" .to" pay ; theyfttture
interest if the Burlington would sur
render the delinquent coupons. The
recommendation ..was tabled.
On July 7, 1876, the Mayor report
ed to the . Council n reference to
his trip to Burlington. He spoke in
a very conciliatory manner and ex
pressed sympathy to the railroad
company over the loss of their shops
by fire. The proposition which he
made to the President of the Burl
ington was this: If the company
would remit the delinquent coupons,
the city would bind- itself to pay as
afore mentioned; would furnish ad
ditional lots for tracks and buildings
and would close 2nd street north of
Main for a new depot site.
Mr. Perkins stated in reply to this
preposition that "while the .amcijnt
which the company, is asked to sur
render is large, aggregating $200G0,
I am disposed for the sake of a final
settlement on our "bond 'difficulties
without litigation to accept and with
the understanding that the reason
for asking now the surrender 'of so
I large an amount due to the railroad
company is the inability of the city
to pay and not because any claims
that the railroad company has failed
in any of its obligations." The Coun
cil ordered the report adopted and
thereby agreed tr a Isurrender of the
claims that the Burlington had vio
lated the contracts.
But in a letter a few days later,
Mr. Perkins displayed a change cf
viewpoint. He wrote "we will have
to spend $20.0uQ for new shops when
we could replace the old for $2,500.
We can't do this and $20,000 is a
good deal to give up. We must have
at least $7,500- of back interest."
He closed his letter ith the pointed
admonition: "Time flies." That the
railroad c ompany expected to press
the matter or a pan easa settlement
was indicated in a telegram from Mr.
i Perkins to the council informing them
that "if we fail to compromise, all
I can ask is the company's legal
rights." Immediately, a moticn was
made in the Council to grant the re
quest of the railroad company. Ne
ville, Heffner and. Wells voted fav-
c.rablv but Wechback. Donnelly and
Guthmann voted "no" and since
tthere was an ecinal division. Mayor
! Livingston cast a negative vote and
the motion was lost.
There is net another single refer
ence to this controversy in the Jour
nal of the Council covering the per
iod from the vote on the above mo
ticn in July, 1876. and June 14,
1877. Again the investigator isat
a loss to understand why these mat
ters were not "made a matter of rec
ord. It is interesting to note that on
the latter date, just referred ,to, the
City Clerk reported to the Council
that an examination of the Council
Journal revealed no record of the ac
ceptance by Mr. '.Perkins of the pro
position of the city already stated but
that his letter of acceptance had been
found and was dated September 27,
1876. A motion was made and agreed
to that Mr.. Peikins letter be made
a' matter, of -record. ..This communi
cation repeated t he issues of the
compromise as $jvibl'siy referred to:
That the city Jwowtd ."' guarantee all
interest after July 3, 1876; that the
company .would surrender all de
linquent coupons and erect new shops
upon ground donated by the city;
that the company would move the de
pot providing certain streets were
closed. Mr. Perkinsstated also that
building on the. shops had already be
gun and that the -coupons would be
surrendered as '3n s the attorneys
could arrange it..
, Shortly afterward. Mr. James G
Taylor, Assistant Treasurer of the
Burlington appeared before the coun
cil and surrendered eoupons tar. the
value of $19,600 and he was is
sued a receipt for the same. The
coupons were burned and the first
phase of the bond controversy was
closed. The city had succeeded in
getting $19,600 of its obligations
removed but the donation of addition
al lots and closing of streets would
make a sharp reduction in the
amount returned by the Burlington.
The company did' agree to erect new
shops and relocate the depot but the
city had donated the ground at addi
tional expense. As far as the city's
allegations were roncerned in refer
ence to the Burlington violating the
contracts, the Council was forced to
admit that the reason for a compro
mise was "Inability to pay" and not
that "the company has failed in any
or its obligations." It s very doubt
ful if the city could have ever gotten
any favorable results iroin a suit to
compel the performance of the writ
ten contract above what was actual
ly specified. -Tco many vital consider
ations had been left to "verbal con
tracts," "implied agreements" and
"understandings."
But the compromise was only tem
porary. Again the acute financial
distress of the city precipitated a re
currence of the controversy. A report
was made to the Council December
7, 1S78 showing tne bonded indebted
nes of the city and which amply il
lustrated the financial distress of the
municipal treasury.
Total Bonded Debt $ 94,976.56
Unpaid Interest 8.335.7S
Warrants outstanding 8,500.00
Total .$111,312.34
City share of County and
precinct bonds ' 33,000.00
. r U44.S14.34
' The valuation cf . real estate In
Plattsmouth was, fixed at $237,132
and personal property at $201,350
making a total valuation ot $438,
482. In 1S71, the total valuation
was $595,552 showing a drop by
1878 of $157,070.
On February 22. 1879. a Council
committee on city debts reported that
the city could not meet its -obligations
and recommended as honorable
compromise and the Mayor was in
structed to correspond with the cre
ditors. Oh April 5th. a Committee of
Ten was appointed to seek a solu
tion of the city's financial distress.
It was composed of: ' Dr. R. R. Liv
ingston, C. Parmele, S. M. Chap
man. L. D. Bennett, F. S. White, A.
Vfr McLaughlin, F R.- Guthman.' B.
G. Dovey, M. L. White and Dr. John
Black. On April 12th. Councilman
Pepperberg off ered ja resolution - ex-
pressing in Mayor Johnson's efforts
to solve the financial problem and
pledged the co-operation of the Coun
cil to any honorable method to re
lease Plattsmouth from the financial
embarrassments It was enduring.
On March 15. 1879, the Commit
tee to whom was referred the com
promise matter reported that a let
ter had been received from Mr. Per
kins, now President of the Burling
ton, stating that he would be glad
to have a conference on the bond
and interest question and that he was
coming to Plattsmouth soon and
would arrange to meet with members
of the Committee. A short time
later, Mr. Perkins d'd come to Platts
mouth and the Committees met with
him in his private car and offered him
a settlement at the rate of 50 cents on
the dollar. Mr. Perkins agreed to ac
cept this providing the other credi
tors would do tie same. But, the
Committee reported, the holders cf
the high school bonds would not
agree to any kind of compromise.
The Council still wanted to affect
some sort cf compromise with the
railroad company as the bonds on
the high school had not yet become
the troublesome matter which was to
harass the city officials and towns
people in later years. The immediate
question wrs payment on the Burl
ington hopds. On June 2. 1S79 a
committee composed of Mayor John
son, R. C. Cushing and J. V. Wech
back was authorized to meet the
Burlington officials end agree to a
final settlement. No report from thi3
committee is recorded but on July 2,
1879 the Council approved an appro
priation cf $4 00 for more lots to be
donated to the railroad company.
And on July 14 a resolution was in
troduced in the Council stating that
the Burlington had agreed to de
liver back the original $50,000 in
bonds in return for a new issue cf
$25,000 in finking fund bonds. There
were to run for twenty years at 6
annual interest. The city also agree.'
to furnish free cf cost, additional
lots and a right-of-way to the pro
posed new bridge across the Mis
souri river. It was estimated that the
cost of ground to be donated to the
railroad would amout to $2,000. The
city did not have $2,000 and we be
hold the most unusual case of the
Eurlington lending the city $2,000
at 8 interest to buy tnia property!
Instead of reducing its indebtedness
to the railroad, the city borrowed
money from the Burlington to enable
the city to make the railroad a do
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fl Qreat 'flariely
Do you know that more than
1,500 years ago,' St. Valen
tine's Day was first observed
in England, Scotland and
France on the same plane it
is observed today, only greet
ings were written by hand
and given to the friends, and
at party gatherings these
were placed in baskets and
drawn out thus you found
your valentine!
Valentines
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Bates Book & Sftafcionaeiry Sta-e
nation! In this instance, the dra
matic borders on the comical.
With the money which the Burl
ington had loaned the city, the Coun
cil proceeded immediately to acquire
the necessary property. But this was
found to be a slow matter to consum
mate. A committee composed of
Thos. Pollock. J. V. Wechback, and
G. W. Fairchild was appointed to
have the compromise bonds printed.
In addition to the expense in
reaching a compromise, five memhers
of the Conciliation Committee i-.ir.i-ed
in bills to the Council for amounts
ranging from $6 to $10 each for
"service rendered in getting the
right-of-way." The Fin-", e Com
mittee to whom the claim was re
ferred recommended that these !r.;.:'.u
be referred back to the Co::cilir.ti:v.
Committee for reconsideration ia it
was expected that they were to serve
without charge. On October 11.
1879, Councilman Pollock, Fairfield .
- 1 A . .1 4 !
anil t'epFerners were inturucitu m
p rc pi re an ordinance giving the
Burlingtoir a right-of-way to the new
bridge. But the whole matte:" went
over into the next year with '! any
final execution of the comprrr.-.i"2.
(To Be Continued)
Chinese Launch
an Attack Upon
Japanese Force
Threat of the Chinese Forces to Turn
Guns cr. International Settle
ment Grave Menace
Important developments in
the
Shanghai situation today were:
A sudden and determined
counter-attack, launched by the
Chinese in Shanghai, forced the
Japanese to drop back from
hrdwon position in the native
city.
Two battalions of reinforce
ments were rushed ashore from
Japanese 6hips in the Whangpo
river to meet this new show of
fight from Shanghai's defend
ers. The Japanese command
said the Chinese had brought
field guns into position and had
dropped a number of shells about
their headquarters alongside the
international settlement.
Eight more United States de-
Are More
Easily Selected Today
than 1,500 years ago, as you will find at
our store one of the most complete lines
ever displayed in Plattsmouth, at from-
31 to
Very Beautiful in Design and Colors and "
for Every Member of the Family
Make Your Selections Early!
Excellent Line
Don
All Peaces
Corner VZZtU end Main Ctrcst
etroyers at Manila were reaay
to sail for Shanghai. President
Hoover kept a close eye on the .
crisis, and Secretary Stimson
said American and England had
protested against possible occu
pation of the international set-
tiement. ,
Danger of soviet Russia enter
ing the field against Japan was
raised when Russia refused per
mission for the Chinese-Russian
railway to transport Japanese
troops to Harbin to fight Cbl
nese - The League cf Nations coun- .
ell decided to order an investiga
tion of the situation. At Tokio
Japan made a veiled threat of ,
withdrawal from the league;
The native city of Chapei was Jike
a huge bonfire and the flames were
rionrlng the international settlement.
Manila, Jan. 30. Eight mare.
American destroyers made ready to-,
day to leave on chort notice lo Join
four others which sailed yesterday
to meet any emergency threatening
American lives and property in
China.
Stores for an extended voyage
were put aboard in the last few days
although Shanghai, 1,340 miles, is
but two days distance lo ,fast de
stroyers under favorable' conditions.
There were rumors of possible
trouble between the large Chinese
colony and the much feared Japajies?,
but the ccnsul general of the , re
spective nationalities decried ' such "
alarmist reports.
Officers cf the cruiser Waldeck
Rousseau, chief French warship in
the Far east, said she probably would
be kept in commission instead of be
ing retired as scheduled, in view of '
the emergency. The cruiser, which
had been here on a visit of courtesy,
sailed Friday, at midnight, hearing
Governor General Pierre Pasquier
back to Indo-China after a five-day
visit.
PLAN NEW HASTINGS BANK
Hastings An attempt is being
made to reorganize the, First Nation
al bank, which closed last fall. May
or Madgett 6aid Wednesday he and
a committee cf the chamber of com- '
merce had been working on a plan
together with several bankers from
Omaha, Lincoln and Kansas City.
Details are not yet complete, how-'
ever, and the work will continue un
til the scheme is ready for presenta
tion to a depositors committee.
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