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About The farmers' alliance. (Lincoln, Nebraska) 1889-1892 | View Entire Issue (Feb. 8, 1890)
THE FAKMERS' ALLIANCE: LINCOLN, NEB., SATURDAY, FEB. 8, 1890. THE ALLIANCE. PUBLISHED EVERY SATURDAY MOSfHSS. - BY THE ALLIANCE P0BLISHIH8 CO. BOH ANNAN BLOCK ! Lincoln, - - - Nebraska. ; ' f-. J. BURRO WS : : . ; Editor. J. M. THOMPSON, Business Manager. EDITORIAL Alas, Poor Yorick. Many statesmen have bewailed "If I was soon done for I wonder what I was begun for," or words to that effect. And now our Dorsey, by whom Henderson and other western candidates claim they were de ceived or betrayed or sold out, for the ultra high protectionist, the extreme goldite and silver destructionist from the state of Maine, may utter the same wail. Dorsey was out-Hcroding Herod in his devotion to eastern interests and Wall street banking. He at once con sulted and was advised by the secretary of the treasury and comptroller of the currency, and made his plans as Wall street brokers wanted, and fired his little gun without seeming to Tcnow where it would strike. He demanded by a bill that the banks could issue more currency without giving addition al security or paying anything for it, and when his bantling was introduced in the house, the1 poor thing was kicked unmercifully. So was the dear parent. Some western members summarily pitched it out of the ring, and said it came there only to protect the wealthy banks and betray every other interest. We regret to see that Dorsey does not take this treatment kindly. But he says now he will favor issuing $300,000, 000 in bond?, at 2 per cent, to be issued only to bankers. Don't, George, don't. We have a large surplus, and are to-day giving bankers 25 cents on every dollar if they will let us pay our debt. After bankers like Dorsey have salted away $300,000,000 of our bonds, and the mon ey should hold out among tin people, so the treasury would be kept overflow ing, the same patriots will urge that we then give a premium of 25 per cent if the bankers will graciously accept pay ment of the new bonds. When will this class legislation end? this making the rich richer and the poor poor poorer bj' law? They seem to grow more unscrupulous and dishon est as they grow richer. Looking Backward. Our esteemed contemporary the Wes tern Rural sajrs that "human nature is making a determined kick against Ed ward Bellamy's book, Looking Back ward, in which he describes society a hundred years hence as being founded upon justice and the recognition of uni versal brotherhood." We must disagree with our brother. We do not choose to accept a perverted condition of society a condition of "ea ger, throbbing, cruel selfishness" as a fair exemplification of human nature. The wonderful success of the book is a specific rexudiation of such an idea of human nature. Looking Backward, in its portrayal of '-the heights of perfec tion and charity and love that it is pos sible for mankind to reach, is the finest delineation of the philosophy of Christ that many centuries have brought forth. That, is what the book is a por trayal of the theories of Christ love, charity, mutual help, the universal brotherhood of man. It is not the little romance that runs through it it is not its art, nor its literary purity, nor its line style, that has touched the popular heart. It is alone its masterly. presen tation of the tiutlis that Jesus Christ taught that has caused human nature to respond with a great throb, and give the book a welcome such as no other has received for ages. Our belief and trust in huinau nature Is implicit and Doundless. It is all we have to tie to, all we have to build upon. The recep tion of this book justifies our faith. The lessons of our daily lives justify it. Even under false conditions, where false standards prevail, honest trust in our fellow-men is seldom .. betrayed. One great fact which offers the com pletcst vindication of huinau nature stand out bold, and canuot be chal lenged. It is that the only true happi ness to be found in -this world conies from kindly association with our fellow beings from love and charity and be neficent wonts and deeds. Wealth brings not happiness.. Honors bring it not. Fame brings it not. What alone brings it? Love and charity. It cannot be said too often. Fill the lines and pages with it. Love and Charity! The love and charity that Christ ex pressed when He said "He who is with out sin among you, let him cast the first stone," or "Do unto others .as ye would that they should do unto you," or "For give them, Father! they know not what they do." Human nature is full of this it throbs and pulsates with it. It is often obscured, often almost obliterated by degrading conditions, but no human being lives from whose heart it may not flash out when occasion serves. And this is the human nature that has re sponded to Edward Bellamy's book, and made it such a grand success. To Our Correspondents. Boil it down. If you cannot get it all in one article of reasonable length, say one-half column, make two of it, and send them just as you want them printed. Do not ask us to edit them, or "cut them in two." We have on hand now enough communications to fill two issues, all of them of inordinate length- We really cannot print them, and it seems a pity. It is the short ar ticles which find readers; so. boil it down. - When the people get excited about railroad robbery how quick the "Inves tigate " gag is spiting. Paddock does it this time. Gov. Thayer's Appeal. Under the above caption the Omaha Bee of Jan. 30 criticises our proposition that the State Board should fix a rate on corn. It says: "Nobody knows better than the Ex-Presi dent of the Nebraska Farmers' Alliance mat our State Board of Transportation has no control over railroads beyond the boundaries of the state. Nobody knows better than .he does that the f reight rates between railroad stations in Nebraska and the export cities on the seaboard are only subject to regulation or revision by the Interstate commerce commis sion. And the Interstate commerce law does not even authorize the National commission to fix freight rates. All they can do is to en force the penalties imposed by the interstate commerce law against disci imlnation between localities equidistant, or shippers of like com modities, and the granting of rentes to fav ored patrons." That's solid. Now our proposition is that the State Board shall fix a local rate, not on corn alone, but on all grain and stock, and then appeal to the Inter state Commission for justice on a through rate. We accept the Bee's statement as to the powers of that com mission. We are now paying two cents per 100 more for hauling corn to Chi cago, 541 miles, than from Chicago to New York, 1,000 miles. The roads, by their combinations, are continuous lines to the seaboard. The discrimination is palpable and outrageous. On both points this matter comes squarely under the jurisdiction of the Interstate Com mission, and it has full power in the premises which the courts would sus tain. The law never granted in ex plicit terms the power to fix rates to our State Board, but it exercised that power and the court sustained it. Our claim is that it would have been dignified and proper, and probably effective, for the governor to set this machinery in motion. We further claim that the course pursued by the governor has been undignified and con temptible, and will have no result of any value. Is this robbery in rates a new thing? Has not Gov. Thayer been fully aware of it for years? Is there any special robbery in corn rates? How does it happen that he so suddenly rouses from the cushions of his Pullman sleeper to become the champion of the farmers and the humble suppliant to Mr. Holdredge? We can tell. It dawned upon his mind that there was a strong combination of farmers in this state which was likely to be an import ant factor in the next election, and he struck out to fool its members and make political capital for himself, and at the same time keep solid with the power that made Norval judge. That's exactly the size of it, and "nobody knows it" better than the Bee. No man in Nebraska has so little sympathy writh the great plain people as John M. Thayer. No man so cordially hates a reformer or anyone wrho proposes to change the existing order of things. No man is so entirely subservient to the railroad corporations, and more free in the use of their favors. "No one knoAvs" these truths better than than the Bee. But its anti-monopoly costume is easily dropped when any of its pets are concerned. Local Insurance Companies. County Mutual Insurance Companies are being formed in various parts of the state by the Alliances. The State Alliance, at its late meeting, instructed its Executive Committee to organize and incorporate a State Alliance Mutu al Insurance Co. The Committee has no discretion in this matter, its duty be ing to obey this mandate in an effective manner. County mutuals are at a great disadvantage in one respect They are necessarily wreak in numbers, while the office work, expense for printing, etc., is nearly as great as for a State Co. A State Co. will be much stronger, and will be able to pay its losses with a lower pt;r cent ot assess ment on its members. Would it not be better, instead of forming county com panies, to establish county agencies un der the supervision of the County Alii ance, to secure and supervise the busi ness in the county, and all become members of the State Co. Each County Co. will require as many officers as the State Co. Think of the army of em ployes which will be avoided by con centrating the business in one compa ny. Of course the object of the State Mutual is to furnish members of the Alliance with insurance at actual cost, not to make positions and pay salaries. Farm Mortgages Again. Our esteemed friend J. J. Jenkins seems to have mortgage on the brain lie has been investigating the mort gages of Sarpy county. He states that during the ten years from Jan. 1, 1879, to Jan. 1, 1889, ther Were only eight mortgage foreclosures in that county. We suppose he expects people to be lieve this. His other figures must be very reliable indeed. He does not in form us how many mortgaged farms were voluntarily surrendered to mort gagees in that time, nor how many were sold at private sale to avoid fore closure. But in any event Sarpy must be a money-lender's paradise. 1 A reliable authority in Fllmore coun ty gives twenty-eight as the number of foreclosures in that county for 1889 alone. This mortgage business having now been settled to Mr. J's satisfaction, we suggest that he turn his attention to corn rates. Or, if that fails to afford scope for his gigantic intellect, that he take up the problem, "Was Hamlet a woman?" A Terrible Accident :w- On Monday morning, Februarys, the house of Secretary Tracy, of Washing ton, was found to be on fire, and the in mates imprisoned by the flames. Mrs Tracy lost heir life in escaping. A daughter and a servant maid perished in the flames. A married daughter and her child were seriously injured in jumping to the sidewalk,, but will re cover. Mr. Tracy was nearly killed by suffocation. This was certainly a heart rending accident, coming suddenly up on a happy family. - The Question of Rates. The proposition has been made by certain newspapers, and has been sec onded by Gov. Thayer, that the farmers should hold public meetings and ad dress petitions to the railroad compa nies asking for a reduction of 5 cts per per 100 on the corn rate. We wish to caution all members of the Alliance in regard to this matter. We consider that to act upon the above advice would be extremely unwise. In the first place the benefit of the trifling reduction of 5cents per 100 on the corn rate would be almost equally divided betweenthe shipper and receiver of the corn. This would bring the advance at this end of the line to 2 cts per 100 lbs., orlj cts per bushel. 1ms is the ex treme advantage to be gained by that reduction, and it is not worth the pow der. But if onlv 5 cts reduction was asked for, the roads would probably grant only 2 or 3, in which case no ap preciable advantage would be realized. But at the same time, having granted this trilling reduction at the request of the governor or people, the roads will claim that it is reasonable, and that it was fixed by the people themselves, and the effort next winter to get the Iowa rates enacted into law would be serious ly prejudiced. Another reason is that the reduction should be on all kinds of grain and stock, and not on corn alone. And the reduction should be 10 or 15 cents per 100 instead of 5 cts. The rate from Chicago to New York, 1,000 miles, is 20 cts per 100. The rate from Lincoln to Chicago, 541 miles, is 22 cts, and 28 cents on stock. Who does not know that the western roads did not cost one third as much as the eastern, and that they can carry at a proportionately cheaper rate. And yet east of Chicago the charge is 2 cts per 100 less for 1,000 miles than between Chicago and Lin coin, 541 miles. Agnin, experience has shown that the only way to reduce freights is by law The roads fought the Iowa Alliance at every step, but have at last been com pelled to knuckle and accept the rates They will make no considerable reduc tion voluntarily, whether petitioned or not. This whole proposition to get a smal reduction especially on corn arose out of a politician's attempt to make politi cal capital. It assumes now the shape of an attempt to get the farmers to pul somebody's political chestnuts out of the fire. vve uo not nesitate to auvise every man who can safely house his corn to hold it as long as possible. No one knows the turn the market may take in the spring; but it is safe to say it can not go lower. Do not call any public meetings to petition the railroads. Discuss the question of rates in your Alliances, and perfect plans to elect members of the next legislature who will make the Iowa schedules legal rates in this state By this course you will maintain your own independence, and not be made cats' paws of the railroads and cunning politicians who are their tools ant henchmen. The duty of the State Board of Trans portation is to adopt the Iowa sched uies or local rates lor this state, ana then appeal to the interstate commis sion for justice on a through rate. The time will never be more opportune for such action than now. Unless the board shall cease its paltering, and jus tify its existence by some action show ing that it has a back-bone this will be tne last year it win occupy spacious rooms in the capitol. "In the Name of Justice." Under the above caption the Omaha Bee has an editorial in its issue of last Sunday in regard to corn rates and the condition of the farmers of Nebraska which contains some remarkable state ments, and shows very limited informa tion as to the actual condion of affairs. and their causes. We heartily concur in all the Bee says in favor of the farm ers of this state, and in the demand that they should have transportation at just rates. But the assumption of the Bee that their present condition is caused solely by high freights, and that a trifling concession on the corn rate would afford them any adequate relie is entirely erroneous. The Bee says: "It is a fact not to be concealed, and which it would be idle to deny, that business de pression is general throughout Nebraska. The obvious explanation of this is in the fact that the farmers, upon whose prosperity that of all other interests In the state largely de pends, are unable to market their most im portant cror the crop upon which they rely to meet their obligations and supply their ne cessities. Millions ot dollars are represented in the unmarketed staple of Nebraska, and could it be disposed of there would be an un precedented stimulus given to every depart ment of business in the state that would con tribute greatly to its progress and to the gen erai prosperity. Let us examine this a little. The nrst fact stated is obviously true. The busi ness depression is general, and is felt by all classes. We would inquire of the Bee whether this depression has only been felt since the ripening of the corn? On the contrary has it not been coming on for years? Have not values been going down, real estate been de pressed, and all kinds of business be coming more and . more stagnated for years past? Is it only since the corn ripened that the prices of all kinds o farm products have been less than the cost of production? If these things are true the "obvious explanation" the Bee gives for the business depression is not tne true explanation, ihe Uee very well knows it is not. No one better than the Bee know that the demoneti zation of silver and the contraction o the currency are the potent causes that have lowered prices and depressed al values have covered the farms of Ne braska and the chattels of the farmers with mortgages, and threatened every business - interest with - bankruptcy. But it ignores all this, turns its finan cial ' conscience . into the keeping of a national banker, and joins Thayer in a howl about the com rate and ; an at tempt to make . political capital out of pV when it knows that , the corn rate is an infinitisimal factor in the cause of hard times. ; 4 Let us see about this corn business. Suppose we have produced this year 50,000,000 bushels in the state. What proportion of this will be taken out of the state and sold? We have no statis tics to guide us on this point; but 25, 000,000 bushels is undoubtedly a large estimate. The per cent of our corn ex ported in 1881 was only 5.88. In 1887 it was 1.74. Of course to reach the fig ure we have named a large amount would have to be consumed in other states in this country. But at that fig ure, and at 15 cts a bushel, the sum it would bring into the state would be onlv $2,625,000. This is about the full amount that we will realize from the sale of corn. It would just about pay one-half of the interest on a debt of $50,000,000. We presume the Bee will not deny that there is as much debt as that in the state drawing interest. Of course we know there is very much more, but the Bee doesn't know it. Now the relief that Gov. Thayer proposes of five cents per 100. would amount to about 1J cents per bushel, and would aggregate $375,000, certainly a sum worth having, but a mere drop in the bucket as far as any substantial relief is concerned, and a very small basis for the "unprecedented stimulus" the Bee prophesies. It is not the corn that is sold that is a benefit to the farmers. It is sold at a loss every time. It is that which is fed, and converted into pork, beef, milk, butter, horses, mules and cattle, which enables them to stay on their farms and raise interest for the money kings. Has There Been a Contraction? Madrid, Jan. 31, 1890. Editor Alliance: Will you kindly answer these questions in the next is sue Of J. HE ALLIANCE: 1.. Has there been any contraction of the circulating medium in the eleven years from 1878 to 1889, and if so, how much? 2. Has the circulation per capita been decreased in this period of eleven years, from '78 to '79; . 3. And if there has been no contraction or decrease per capita, why do we require a larger volume or circulating medium? lours fraternally, ' ClIAS. PCRNELL 1. Ihere has been an absolute, net increase of circulation of about $349, 000,000 since 1878. 2. Ihe circulation per capita about the same that it was in 1878. is 3. There may be an absolute increase of money in circulation, and at the same time a very great relative con traction. This has been the case in this country, therefore the "if" of our cor respondent in his third question ren ders it "nugatory. The per cent o our increase oi currency has just about kept pace with our increase of population; but our increase of pro duction has largely outstripped both Taking the period from 1866 to 1888, there was a large absolute decrease oi money, ana tne relative in crease of population and production would be still more marked. The be ginning of the depression we are now suffering dates hack of 1878. Business failures increased from 2,780 in 1867 to 11,211 in 1885. Taking increased pro duction as a criterion, it will be seen at once why a largely increased volume o money is needed. We quote from an editorial in The Alliance: "In 1878 we produced of wool 211 million lbs., against 285 millions in 1886. We need ed 40 millions more money to handle our wool in '86 than we did in '78. We needed in '87 to handle our cotton 73 million dollars more than we did in '78 We needed 37 millions more to handle our pig iron than we did in '78." And so through petroleum, fermented liquors, sugar, tobacco, horses, mules oxen, swine, coal, etc., until the addi tional amount needed to handle our in creased production will amount to 1,500 millions of dollars. This contraction relative to produc tion has caused an enormous debt, and the growth of - this debt causes a need for more money. Our total debt is said to amount to 30,000 millions of dollars Evidences of debt are exchangeable like any other representative of wealth Bonds, mortgages, notes, are sold every day, and require as tangible a volume of money to exchange them as do wheat corn or cotton. We trust our corre sponcient can see wny we require a larger volume of money. An Interview With Leese. Lincoln, Neb., Feb. 4. Special to the Bee. In answer to the question "Why did you not go with the rest of the state board to Chicago?" Attorney Gen eral Leese said: "I did not go to Chicago with the other members of the state board be cause I do not propose to lower the dig nity of this great state by begging for our rates. The sword is in our hands. ana unless some immediate re'iei is given to the farmers of Nebraska, I pro pose to use it with a strong arm. Chi cago loses by the roads maintaining those exorbitant rates, for what little corn is sent to market from this state goes south. "ihe rate to Chicago, several years ago, was only 14 cents on corn, and now there is three times the amount o corn to haul and the rates are almost double. It is humilliating to see the state board of transportation running after the railroads when it has the power to bring them to time without leaving its office; but if it thinks other wise, all right. I am satisfied the rail roads will refuse to do anything, and if they do the hand -writing is on the wall." Another Alliance Paper.. We are informed that our Alliance friends in Washington are about to start an organ at Oaksdale. The Alli ance is booming in that region. Jawge (W. E. D.) solus. " Well, if we can get those extra bonds to bank on, I believe I'll let Laws or Connell be sena tor. Of course we must let Thayer be governor. 1 That's fixed." A Grave Charge, and its Refutation. The following article copied'from the Adams County Democrat has been started on its round of slander. We copy it and Mr. Thompson's letter in reply to the editor of the Democaat. No com ment seems necessary. 'In fact, per haps we ought to apologise for occupy ing space with it. But it will undoubt edly reach many of our friends who might think there' was some foundation for it if there was no contradiction. It now leaks out that Hon. H.' G. Armitage, who recently died at Kenesaw, was the vic tim of certain Alliance leaders who make their headquarters at Lincoln. Mr. Armitage, some months previous to his death, invested all his earthly possessions in a paper at Lin coln, called Thk Farmers' Alliance. This investment was made at tne earnest solicita tion and promise of Messrs. Burrows, Boot, '1 hompson and other Alliance leaders that they woum render au possiDie assistance. Mr. Armitage had implicit confidence, in , these men. They were brothers in the same cause. It now leaks out that no sooner had Mr. Ar mitage established the paper upon a paying oasis than these "brothers" commenced an operation to squeeze him out, and finally compelled him to accept about one-fourth the value of the plant, or have an opposition Daoer in the field. As to the truth of all this. the Democrat cannot vouch. If any part of it be true, tne persons guilty snouia explain. if they can. Editor Democrat: The above arti cle contains charges of so grave a na ture, and statements ' so entirely at va riance with the facts, that it seems pro per that I should make a statement in regard to the matter. - Mr. Armitage had a small newspaper outfit at Kenesaw. He was invited by Mr. Burrows, Chairman of the State Executive Committee, to move the same to Lincoln, and start an Alliance paper The consideration offered him was that the paper was to be made the official organ of the State Alliance, and that the state secretary would move his of fice to Lincoln and assist in editing the paper, and give all possible aid in ex tending its circulation among the Alli ances. Mr. Armitage embraced this of fer with great alacrity, no urgent solici tation being needed; and a contract be tween him and the state secretary em bracing those conditions was executed The contract was fairly carried out on both sides. Mr. Armitage no doubt did the best he could to make the paper a success. But instead of putting it on a "paying basis," in the first part of September he notified the chairman of the executive committee that he could not publish the paper any longer unless the committee furnished him the means to do so. This the committee had never proposed to do. It did not feel justified in maintaining a paper by money taken from the State Alliance. But this pre sented to Mr. Burrows the alternative of either seeing the paper which he had been instrumental in starting fail and stop, or of himself taking hold of it and carrying it forward. He was nearly sixty years old, was quite comfortable on his farm, and greatly averse to tak ing up the hard work of publishing and editing a paper. But rather than throw upon the Alliance the discredit of failure he chose to do so: He came to Lincoln and in partnership with myself, bought the plant of Mr. Armitage. In stead of "about one-fourth its value." we paid Mr. Armitage for the plant very much more than it was wrorth, in addition to assuming the obligations of the subscription list, and all the debts he had contracted. Mr. Armitage went out of Lincoln with considerably more money than he brought into it. No one had any thought of starting an opposition paper. No one could have been induced to do it. Mr. Bur rows did not want a paper. Instead of any "squeezing" being done, all parties regretted the failure of Mr. Armitage. As for Mr. Armitage having put the paper on a "paying basis," that difficult feat is not yet accomplished. Mr. Bur rows has had charge since Sept. 14, and has worked like a Trojan; but he has not taken out of the business enough money to pay his personal expenses for board, etc. The paper is paying for its white paper, mechanical labor and hired help, but not a dollar for its pro prietors. I trust, Mr. Editor, you will do me the justice to publish this statement in connection with your article; and that papers that copied your statements will also copy this. Yours, &c, J. M. Thompson, Sec. State Alliance. Latest Items. As we go to press word comes from the railroad magnates that "lower Ne braska corn rates are not yet obtained." Of course not. Think of the half-dozen fellows representing the Western Asso ciation complacently looking down on the governor between whiffs. "We'd like to oblige you, governor, but but." It's law these fellows want, and law they'll get, a belly-full, before long. Senator Paddock sees a small darkey in the wood-pile, and he comes up smil ing with a resolution to investigate! That has been the standard response to the cry of the people for relief for the past ten years. If Senator Paddock had come up to the chalk with an amendment to the interstate law, giv ing the commissioners full power to fix rates, to declare what lines are continu ous, and making it mandatory on that body to adjust tariffs on the principle of a fair compensation for services ren dered, we might have thought he was sincere. But investigate! Pah! The Secretary of Agriculture has just made an allotment of seeds to members of congress to palaver their constitu ents with; We had thought when this department reached the dignity ot a cabinet position this v tomfoolery would stop. ; ' ' ' . . . . The dead-lock in the Iowa legislature continues. - We hope it will oontinue till there's ice over the pit, if Allison can thereby be" defeated. " Defeat 'Allison! Defeat Allison! Gov. ; Thayer sends a protest to the committee of ways and means against any reduction of the , tariff on ' su gar. This is a stand-off. One-fourth cent a bushel on corn-rates down three cents a pound "on sugar up. 1 'No com ment needed. 'In the face of the present condition he gets off some "home -mar-kef'rot. . ' Facts About the U. P. Railroad. In reply to questions of T. W. H. Smith, we give the following general summary of facts about the U. P. rail road: . . . The following is a general statement ment of the aid extended to these com panies by the United States: , Bonds. 27,236,512 Union Pacific Kansas Paciflo Central Branch U. P. 6,303,000 1,600,000 1.628.320 Sioux City Pacific. Central Pacific 25,885,120 $64,623,512 Lands. Per Acres, acre. Amount. 11,309,844 1.25 $14,137,305 6,000,000 1.25 7,500,000 222,500 1.25 278,200 43.330 1.25 54.170 TJ.-P....... K. P C. B. TJ. P. 8. C. &P... O. P 8,000,000 1.25 10,0X1,000 W. P 453,794 1.25 587,243 Total 26,029,534 32.536,918 Total, bonds and lands ... 1 97,100,4 First. That the Union Pacific railroad. from Omaha to Ogden, was constructed under three contracts known as the "Hoxie contract," the "Ames contract," and the "Davis contract." Second. That through the interven tion of assignments made by the hold ers of these contracts to trustees, and through the intervention of a construc tion company known as the "Creoit Mobilier of America," the profits de rived from these contracts were se cured to the officers and promoters of the Union Pacific railroad itself. The persons who received these profits de termined the amount thereof by their own votes. Third. The result of these three con tracts was as follows: Cost to railroad company : Hoxie contract f 12.974,416.24 Ames contract 57,140,102.94 Davis contract 23,431.768.10 Total 93,546,287.28 Cost to contractors : Hoxie contract.... $7,806,183,33 Ames contract.... 27,285,141,99 Davis contract.... 15.629,633.62 50,720,658.94 42,825 328.34 To this fehould be added the am't naid Credit Mobilier on ac count of 58 miles 1,104,000.00 Total profit on construction 43,929,328.00 Fourth. The actual cost of construc tion nndpr these . three contracts was substantially equivalent to the proceeds of the first mortgage bonds of tne com pany and of the government bonds, as shown by the following table: m,4!f.nlnrtrghnn1c iaaiiAil JR27.21 3.000.00 Sold at a discount of 3,494,991.23 Net proceeds....".... 23,718,008.77 Government bonds Issued 27,236,512 00 Sold at a discount of 91,348.72 Net proceeds. 27,145,163.28 Arirres-ate net nroceeds of both classes 50,863,172.05 Cost of whole road to contractors 50,720,953.94 Difference between proceeds of bonds and cost.... 142,213.11 Fifth. That the actual profits realized from the three contracts, after reducing the bonds issued to their cash value and charging the stock issued at 30 cents on the dollar, were $23,360,819.81. These profits are stated as follows: Ames and Davis Contracts. . Bonds (cash value).... i Twenty-four million stock, at 30 Cash r. . $11,310,900.00 7.200,(KK).00 2,346,000.90 20,856,900.00 The profits on the Hoxie con tract, as before stated, were $6, 272,232.71. Treating all of this as stock, except $1,125,000 of first-mortgage bonds , divided as herein after stated, the profits, cash values, on this wou Id be as f ol lows I $1,125,000 on first-mortgage bonds, ct85 $5,147,232.71 stock, at 30 $965,250.00 1,544,169,81 Total cash profit 23,300,319.81 The statement of the construction ac count, contained in. the balance sheet of 1870, immediately after the comple tion of the road, is $97,273,549.06. " The immediate effect of this vast issue of pa per obligations on the financial posi tion of the company is manifest. With out referring to the stock, on which no dividends were declared for some years, it is apparent that the annual interest charge was vastly greater than it would have been had the road been con structed for a sum approximating the actual cost of construction. The actual amount of the payment for interest for the year 1870 was $4,749,350.52. (See Calhoun's report, volume 8.) Ihe grad ual effect of the absorption of the earn ings of the company by excessive pay ments lor interest, ana in subsequent years for dividends, was to weaken the financial condition of the Union Pa cific railroad company, and in time to bring about its insolvency, unless coun teracted by a large development of its business and an increase of its earning power. Simultaneously with the completion of the road, in May, 1869, the company found itself obliged to increase its bond- ea deot. Between the 31st of October, 1869, and the 7th of September. 1871, it issued income bonds to the extent of $9,457,000, for which it received $6,614, 600. During substantially the same pe riod it issued its first land-grant bonds, to the extent of $10,744,000, for which it received $6,230,050. The cost of reproducing the Union Pacific system is estimated by the in specting engineer of the commission at $120,000,000. Its liabilities amount to $225,633,964.96. Here, then, is an ex cessive capitalization of at least $105, 000,000. At present prices of railroad construc tion it is evident that from the proper ties themselves the government cannot recover within' one nundred and eight millions of the present value of the in debtedness owing to it by the bond aided companies, and any extension of the time for payment would be useless and would expose to further risk and depreciation the present inadequate se curity for the debt. The proposition of Gov. Thayer, sec onded by the Lincoln Journal and one or two other railroad papers, to say amen to his prayer to manager Holdredge, has fallen flat. The grangers are not to be caught with that kind of chaff this time. Another switchman killed. Every day every day! It is William McAn nelly this time. He leaves a wife and three children. Every time this hap pens the coroner's jury should return a verdict against the Company for man slaughter, until automatic couplers and all needed provisions for safety are made. ' Taxing Money. 1. Are national bank 'notes taxable the same as a horse or plow? 2. If I have $100 in greenbacks will I have to pay tax on the same? In other words, do I have to give theni in to the assessor? . b P.P.F. 1 Yes. 2 Yes. Its simolv amazing, the number of anti-monopolists among office-holders and politicians that organization among farmers makes. THE GRAIN RATE PROBLEM. A Demand for a Greater Reduction. T. W. Lowrey Writes an Open Letter to the Governor and Board of Transpor tation. He Insists That a Reduction of io Cents a . Hundred on all Grain will be the most just for all. An Open Letter. ' Lincoln, Neb., Jan. 28, 1890. Governor Iohn .V. Thayer and the 0Jlccrf of the State Board of Transportation. Dear Sins: I have noticed with much interest the various discussions on the rate question, also your lato re quest or letter to George W . Holdrcdgo pleading with him to make a five ceut reduction on 00.' I notice in the daity papers of this date that some promi nent railroad official told State Treas urer Hill that, t her vcauld be in a very short time a reduction on corn rates of 2 cents per 100 from here, 3 cents about about the center, ana t cents irom me western part of the state. This reduc tion will not. be satisfactory, anil it looks to me as if you and the board of, transportation should insist on a re duction of at least 10 cents per 100 not onlv on corn but on all kinds of grain and stock. Wheat and oats are now as low proportionately as corn in all mar kets, and we have an immense crop of oats yet to be marketed. There is no doubt but that it can bo shown that grain was earned by the railroads at least 8 to 10 cents per 100 cheaper than the existing rates several years ago. Compare our rates with the rates of northern or eastern hues ami compare the tonnage and you will see that our roads should not charge more than 10 cents per 100 on grain to Chicago. The rate from Chicago to New York via auy of the trunk lines is now 20 cents per 100. The distance is more than double on some lines and at least about 1,000 miles from Chicago to New York via the shortest line. The distance to Chi cago via the B. & M. is 541 miles, and why they should be allowed to charge more than 10 or 12 cents for hauling grain 541 miles is more than I can un derstand. They will say that eastern lines can afford to haul cheaper iu pro portion on per cent of tonnage., etc. I would like to have you and the honora ble board of transportation investigate this tonnage question and not take tlicir words for it. "Tonnage," why should they spring this questionV Is it not a fact that our railroads claim that they can't get cars to handle the business of fered them ? Are there not millions of bushels of grain being wasted on ac count of the railroads not furnishing cars to transport the same? If such is the case why say anything about "ton nage?" Does it not cost and did it not cost at least five dollars to build one of the trunk lines from Chicago to New York, through the mountains, to one dollar that it cost to build the C. B. & Q. or any of our prairie lines? No gov ernment lands were given to the trunk lines to assist them to build their lines, and our lines can run a train of thirty cars easier than the trunk lines can haul fifteen, consequently their operat ing expenses must be much less. I was informed by a high official of one of the trunk lines that the most money their line ever made was when they charged 15 cents for hauling grain to New York from Chicago and paid the terminal charges of 3 cents per hundred, lie member our lines pay no terminal charges and do not handle any of our grain except to haul it after being load ed. They also own interests ineleva- tors in Chicago and St. Louis, and arc also profited by them on the grain they haul. You will also remember that eastern lines charge no more for haul ing wheat than corn. We should insist on the same rate for all kinds of grain, as that was the custom on all eastern and southern lines prior to the inter state law. Hoping to hear from you and that you will investigate this mat ter thoroughly before you advise the acceptance of anything less than a 10 Cer cent reduction, as nothing less will e ' satisfactory to the farmers of this state . I know that should you and the board of transportation accept less, the railroads will claim the rate, to be a reasonable one, and will use it as evi-M denco against parties who will try to establish a fair rate through the court, setting up that the rate was accepted by the bpard of transportation as a rea sonable rate; and I for one citizen of this state, interested in the shipping and raising of grain, do protest against you or the board of transportation of this state accepting anything less than a 10 per cent reduction, on the grounds tbat the same will bo accepted as a rea sonable rate as far as local rates are concerned. The state board of trans portation has now the power to make rates, and they should at once proceed to make such rates as are reasonable. Some time ago I proposed to give Elder Howe to be donated to the poor of this city $100 if Attorney-General Leese would subpoena the 'witnesses I would name in the case of the consolidation of the A. & N. railroad with the B. & M. and I failed to show by such witnesses that rates have been mate rially advanced and competition de feated. I now will offer to donate $500 on the same terms. Hoping that I will be called upon to put up or shut up, I remain Yours truly, T. W. Lownv. Of Interest to Paxton & Gallagher. At a meeting of Eureka Alliance No. 849 and Alliance iso. 850, containing fifty-three and seventy-five members, a resolution was passed at each that they will not buy goods of Paxton & Galla gher, of Omaha, or of J. I). McNeely, of St Joe, or of any merchants that buy goods of them. I never saw such an awakening as now has hold of the farmers, ihere is a call for speakers all oyer this county. I have a call to address meetings in Clay, Adams. Nuckolls and Webster counties. Will speak in Webster this Thursday night and in Adams Saturday. Wo are organizing thoroughly around this point, and will soon be ablo to give you some solid news. Wo think the State Alliance made a mistake in waiting un til January for a meeting; for if we do anything in the next Legislature there should be a meeting in August or September to formulate some general J dan for action. Please speak to the 'resident and the Executive Commit tee, and talk the thing up while the iron is hot. and before the farmers go to their spring work. Fraternally, A. J . Okendohkf, Sec'y 849. In Relation to Paxton & Gallagher. Ithaca, Neb., Jan. 28, 1890. Editor Alliance : -I am instructed by the Ithaca Alliance No. 724 to for ward you the following resolutions and ask you to publish the same and send copy of paper to Paxton & Gallagher. Resolved, That we, the Ithaca Alli ance, of Ithaca, Saunders county, Neb.. (composed of seventy-six farmers) do indorse the action of the Ash Alliance; and further, we will not patronize any merchant who patronizes Paxton & Gallagher. V. A. Tracy, Sec'y.