T . ,
A-.- i
The AMiancc-In
s-1'nt
The Alliance-Independent
) iK x itY;. y )vT im'i" J Lot
Advoca'ei
Is the btst
f 1 I In I - ' -
in i - . ... i
The gv- n
er"Mi of i - nd
telegraphs.
That fni I-
Nebrasfca I d i
a level wil - in
force 'n 1 -
Tbe bull-
national ?o of
a grat trap' '- m
North ! ' th
Gulf of Me
PI '
Advertising medium
In the west. It ia especi
ally valuable as a means
of reaching 'he farmers.
Its circulation is us laree
in Nebraska as the cir
culation of all the "farm
jocrnala" combined.
Give Thk Allianck
Indepkndknt a trial if
you want good results.
;
J A- U
m m r r i i r ' -1 i
! jr., ' r . :?
1
C '' x5v, wt . r J " 111
.a.
- VOL. IV.
WEECKBD AND RUINED.
t:
Another Chapter Added to the Exposure of
Republican Corruption.
CAPITAL NATIONAL BANK FAILS.
nf Pftonle Mourn
Over $230,000 of the State's Mo mey Goes with
The Rest
IT NOW LOOKS LIKE A
Evidences of Crooked Dealing on the Part of State Officers.
"Work for Another Grand Jury. How Hill and
Bartley Have Tried to Unload their
Responsibility.
'IThere's something rotten in the state
of Denmark." Shakespere.
The public was startled on Monday
morninsr bv the announcement that the
national bank examiner droppea in on
Sunday and went througn tne oooks.
... . i i l
As a result on Monday morning a notice
was posted on the door announcing the
failure of the bank.
The news spread and soon a crowd of
hundreds had collected in front of the
bank at the corner of 11th and O Sts.
Although strenuous efforts were made
by the newspapers and men of financial
standing to make depositors believo
they would not suffer loss, deep anxiety
was depicted in many faces. Among
the depositors are hundreds of people
In moderate circumstances, to whom
the loss of even a hundred dollars
means months of hard labor to regain.
There are dozens of others engaged in
business whose deposits represent all
their ready cash for the conduct of their
business. There are others, who are
well-to-do whose deposits run away up
into the thousands.
Chief among the depositors is the
f "state of Nebraska. The amount of the
. L.1J 1 4Vt Vnnl. rAa
State s money ueiu uy iuio uouiv
J. . 1 a, A.1m nrm IhAmnof
liable eports. Lancaster Co. is also a
dei -tor to the extent of $30,000, and
rW Av of Lincoln to the tune of $6,000.
he capital national bank
. organized about eight years agoon
ruins of what was known as the
irsh Harvester bank. It has been
"A finer a verv lar?e business. The capi
tal stock was $300,000 fully paid up.
The principal stock-holders are C. W
Mosher, $65,000; R. C. Outcalt, $35,000;
W. HI Walsh, $15,000: E. P. Hamer,
$9,000; C. E. Yates, $11,500; D. E.
Thompson, $5,000; B. Lombard Jr., $10,
000; A. P. S. Stuart, $15,000; The Hol
mes estate, $15,000: R. O. Phillips, $10,
000. It is rumored that some of the
stock-holders got rid of their stock in
fjyne to save themselves, but the truth
this ha? not yet been verified.
The directors of the bank are C. W.
Mosher, C. E. Yates, H. J. Walsh, R.
O. Phillips and Henry Guerner.
The officers are: President. C. W.
Mosher; Vice-president, H. J. Walsh;
Cashier, R. C. Outcalt.
r EXTENT AND CAUSES OE THK FAILURE.
fThe reports published in the dailies
are somewhat conflicting. The Bee of
Tuesday morning says:
"The paper of the Capital National
,went to protest on Wall street Saturday
-i . . . . i . . i . i
ana mis J act, coming 10 me mujuuuu ui
of the assistant treasurer of the United
Rotates in that city, he wired the comp
troller or currency at Washington, who
immediately telegraphed Bank Exami
ner Griffith to take possession at once.
On arriving here the examiner called
the directors of the bank together, and
on looking ever the books, found that it
would require $257,000 more cash than
there was at hand to bring the assets up
to the official requirements, in order
that the bank might be opened Monday
morning.
Inasmuch as the stockholders are
liable, for double the amount of their
stock, they will be held for this amount
the capital stock being $300,000.
Neither Mosher nor Outcalt will be able
to meet this demand, and some of the
Other stockholders will be ruined by
the demands thus made upon them."
One reoort verv generally circu-
ated Is that the penitentiary co
.act formerly held by C. W. Mosher
as the chief cause of this disaster. It
the Loss of
Tkeir Earnings.
GIGANTIC CONSPIRACY.
Ia pointed out that Boss Stout, who
held this contract for several years, was
financially ruined by it. And that
Mosher his successor, was forced to
assign the contract to W. H. Dorgan
to save himself from the same fate.
This report makes a good many people
smile. Why men with means should
spend thousands of dollars corrupting
legislatures to secure a contract, and
thousands of dollars more to prevent
other legislatures from annulling a
contract which drags everybody who
touches it down to financial ruin, is
more than the average man can under
stand. It seems evident that this re
pert is set afloat by parties connected
with Mosher as a ''stock explanation,"
but it is one which utterly fails to ex
plain. DARK SUSPICIONS.
During the past thrf e days dark sus
picions have ibeen awakened in the
minds of many, and these suspicions
have growno deeper as fact after fact
has come to light.
On Monday January 23, there were
filed in the county clerk's office a num
ber of mortgages on the property of
Mosher and Outcalt, the principal stock
holders. These mortgages bear dates
several weeks old, most of them having
been made out in December. Among
them is a chattel mortgage on Moaber's
household goods for $2,500 dated Dec.
27: a bill of 6ale on some fine horses
given by Outcalt for $12,500 dated Deo
24; deeds by Mosher conveying three
lots to Henry Mansfield for $20,000
dated December : deeds by Mosher
conveying certain other lots to W. II
Dorgan for $7,500 dated Dec. 19; a deed
by Outcalt conveying a quarter section
of land to D. E. Thompson for $10,000
dated December 27.
Thus it appears that these men had
foreseen what was coming, and had ar
ranged before hand to put all ' their
property out of their hands. The fact
that several of these transfers were
made to D. E. Thompson and W. H
Dorgan deepens the suspicion of crook
ed dealing for these men are largely
connected with Mosher and Outcalt in
various financial enterprises.
THE STATE'S MONEY.
But the facts which cause the darkest
suspicions are those connected with the
deposit of the state funds in the bank
rupt institution.
When Treasurer Hill was examined
by the house committee two years ago.
and refused to tell where he kept the
state funds, the rumor was started, and
believed by many, that Hill had de
posited this money iu various banks
over the state, and that he could not
call it in without ruining some of the
banks. It was then believed that the
Capital National was one of these banks
When the law was passed by the legis
lature of 1891, requiring public fund3
to be deposited in banks, the friends of
the bill had to concede, In order to get
it through, that the law should not go
into effect until' the terms of all the
treasurers then elected should expire.
This concession was demanded particu
larly by the friends ot treasurer Hill
Since then Hill has had two years in
which to straighten up his affairs.
At the close of his term a few days
ago he turned over the office to his sue
cessor, Mr. Bartley. At the same time
the new law wont into effect. Mr.JEIill
is supposed to have turned over the
LINCOLN, NEB., THURSDAY.
funds in rash to his successor, I lit as a
matter of fact most of the funds were
turned over in the form of certificates
of deposit in various banks among
which ws the Capital National. The
impossibility of his turning over the
funds in cash in the case of thl Innk
is evident: For every oent of cash in
the bank would not have been sufficient
to pay half the state's deposit. Accord
Ing to the last published statement
the Capital National ha 1 then lest than
$60,000 cash on hand.
What then was the situation facing
both Hill and Bartley? It was this:
About $230,000 of the state's money was
deposited in a bank that was on the
verge of failure. If Hill made a de
mand for this money, the bank must
fail, and he would be responsible under
under his official bond for the money.
If Bartley accepted the certificate of
deposit, and relieved Hill, he would
have to shoulder the burden, and be
responsible under his bond. Here was
$230,000 either absolutely lost to the
state, or in great danger of being lost.
Was theiany way by which both the
outgoing incoming treasurer could
escape the responsibility
for this loss? There wa a way, and
thev were not slow in seeing it and
taking advantage of it.
The law of 1891 proyides that when
deposits have been made in banks
which give approved bond the state
TREASURER SHALL HOT BE RESPONSI
BLE FOR SUCH deposits. How easy
it could be arranged to go through the
form of depositing this money in the
Capital national, accepting bond, and
relieving the state treasurer from all
responsibility. Then if a loss should
follow, it would fall upon the state, and
the blame could be heaped on the law
passed by the "fool farmers." Tt looks
as though
A CONSPIRACY
had been deliberately entered into to
rob the state of $230,000, and at the
same time shield the guilty parties
from criminal responsibility. I a sup
port of this theory the following facts
are submitted:...
Immediately upon his Installment in
to the office, Treasurer Bartley made
haste to arrange for the Capital Na
tlonal to take a deposit of state funds
not to exceed $350,000 under the law of
of 1891. This law requires banks re-
recelvlng such deposits to give bond to
the state for twice the sum deposited
therein. Such bond must be approved
by the governor, se cretary of state and
the attorney-general. In this case the
Capital National put up a bond for the
sum of $700,000, and here aro the
names of the bondsmen:
C. W. MOSHER, president of the
Capital National bank.
R. C. OUTCALT, cashier of the Cap
ital National bank.
Not another nBme! ,
The president and cashier of the
bank were accepted as bondsmen for
the bank itself !
This bond was taken to Secretary
Allen and Attorney-General Hastings.
Each approved of it. ' .
Then it was taken to Gov. Crounse
and here it the story he tells In an In
terview published in the World-Herald
on Tuesday: .
"The bond was brought to me by
Secrets.ry of State Allen for my ap
proval. It bore at the time othe ap
proval of Secretary of State Allen and
Attorney-General Hastings. Believing
that they as old officers, were acquain
ted with the standing of the bank, I
asked Allen respecting It and he ex
pressed his belief in the sufficiency of
the bond. I noticed that the makers
had not qualified ot added an oath as to
their financial standing, or that they were
worth the sums specifitd in it. I spoke
to Allen respecting it. He said the
law did not require it, but I Baid it
should be returned for the required
oath. In this General Hastings and
Secretary Allen agreed, and the oaths
were supplied before signing by me. I
have been advised and I understand
both the attorney general and secre
tary of state were informed that the
banks of Lincoln generally regarded this
bank as solvent and perfectly responsible
for any deposit that might be lodged vith it.
Upon the Information I had and after
exacting the oath I did as to the suf
ficiency of the bondsmen, I concluded
under the circumstances I was justified
In adding my approval to that of the
other officers."
In what kind of light docs this place
Allen and Hastings? It should be re
membered that THEY ARE BOTH PROM
INENT OFFICERS IN LINCOLN BANKS.
Is It possible that Allen and Hast-
Continued on last page.)
JANUARY 26. 1893.
SENATORIAL
CONTEST
The Independent Bally in Solid Phalanx
To the Support of J. H Powers
STILL THE EUD IS NOT IN SIGHT-
Republicans and Democra Is Scatter their
Votes The U. P Withdraws
John M, Thurston
PROGRESS OF THE CONTIEST.
Last Thursday a good natured rpec
tator at the capitol remarked that ihc
senatorial contest reminded him of the
practic game indulged In by ba.l players
before the umpire takes his place and
yells "play ball." it did indeed look
during the first three days of the con
test as though the members of all par
ties wore simply pi lying. Complimen
tary votes were cast for a large num
ber of candidates wkom nobody ever
thought of electing and there appeared
to be no effort among the members of
any party to get together.
But on Friday came a decided change.
The game began in earnest, and tne
independents set the example of get
ting together and proceeding to busi
ness in a business like way.
On Thursday night mo of the in
dependents had got together ia cau
cus. They decided to nominate a can
didate by the two-thirds rnle. After
several ballots John H. Powers secured
the necessary two-thirds and was de
clared the nominee. Although nearly
a dozen Independents were absent from
the caucus, they fell in line on Friday,
and gave John H. Powers 53 votes.
Dobson of Fillmore alone voting for
McKelghan. Kyner of Douglas, a re
publican, also Voted for Powers mak
ing 54 votes In all, or 13 less than the
number necessary to elect. The re
publicans votad about the same as Jm-
tore, faaaocK getting m, Majors ju,
Thurston 5, and the rest scai tering.
The democrats cast 5 vote a for Boyd, 5
for Keiper and the rest scattering.
On Saturday the situation was un
changed. Powers received the solid
vote of his party, and the republicans
and democrats scattering as before.
On Monday when the joint conven
tion met there was a good deal of
anxiety felt by the Independents lest
the republicans might succeed in
electing a man. Quite a number of
members had gone home to spend Sun
day. On Saturday a nunberof "pairs"
had been announced. A rumor was
afloat to the effect that the republi
cans had telegraphed all their mem'
ber8tobe present oo Monday, inas
much as the independents who bad
gone home were not expected back till
Monday afternoon, it appeared. possl-
ble that the republicans mighv WJe a
numerical majority of the con , nd',u;
When the con mention met at ncatet '
question arose whether a majaot
whole number was required to elect
The United States statute was read and
re-read half a dozen times, discussed,
translated, co us trued and explained in
as many ways as there were speakers
on the subject, several motions and
points of order were made, but no vote
taken, lhe lieutenant Governor nnauy
settled the whole matter by declaring
that a majority of a quorum was suffici
ent to elect Finally af ver an hour had
been consumed In this way, a ballot
was taken. The fears of the independ
ents were entirely groundless, for the
republicans were as badly divided as
ever, and could not have united on any
candidate even if they had had votes
enousrh to elect, which was not the
case. The vote stood ai rouows:
Powers 43, addock 27, Majors 10,
Boyd 4, Bryan 4, and the rest scatter
ed among sixteen candidates. 1 wenty
seven were either absent or paired.
THURSTON WITHDRAWS.
Quite a flutter was created in politi
cal circles an Sunday evening by the re
port that John M. Thurston had with'
drawn from the senatorial race. Al
though Thurston had at no time polled
over five votes, he was looked upon as
a positive and influential candidate who
might at any time develop great
strength. Monday morning's papers
contained the following letter from the
Union Pacific's silver tongued orator:
Omaha, Neb., Jan. 25, 1893. To My
Republican Friends: When I consented
to become a candidate for senator, I did
ho nnon mv neraonal resDonsibilltv.
knowing of no reason why I might nbt
aspire to represent the people oi tne
state of Nebraska. I am advised, how
eter, that the affairs of my client may
suffer If I persist in mv candidacy.
I owe to those great interests whieh
I represent professionally, an absolute
loyalty with which my personal amDi
tlons have no right to interfere. Mov
ed therefore, by the highest consldera
tlons of duty, I withdraw from the
senatorial contest. My chief regret is
that I disappoint and perhap 'jmbar
rass my friends, whose good opinion I
value more than political preiermeni.
JNO. M. THURSTON.
The client referred to Is the Union
Pacifio railroad company which pays
Mr. Thurston about twice what Unci
Sam pays senators for tbeir distinguish
ed services. There Is a good deal of
speculation regarding the reasons that
have prompted Mr Thuro to
tMs letter. But throw who un-U-r---the
"inside" workingsof the "ma-" "
see in it the hand of the great
ratioi that h- owned and conr I
nearly all of Nebraska's sena'or- h.-h-the
utate was organized. Paddk .h
the Union Pacific's favorite cam! .,
twelve rears ago wh"n Thomas L. Ki-n-bali
aid Holden $1642 for bi ' -r v
as a newspaper t-ditor and otheri- i
the election of a United States nen '
At that time he was defeated by V,a
Wvckthiough divisions in the r .. .s,
of the railroad tools elected
islature. From that "the Union f'u i
fic's political manager" mh m d
son. Now they don t want to b hM
responsible for another defeat. II- inw
they cannot afford to have two candi
dates in the field. As they think ih.-iM
is a greater possibility of electing Pl
dock they have withdrawn Thurston.
TUESDAY'S BALLOT.
On Tueday every member of bot't
houses was in his place excapt
Farrell (dem) of Dodge who M suff .-ri g
from a severe attack of inflammatory
rheumatism and has not been prcs i
tor several tUj. There was very lilt
change in the situation. The vol
stood: Powers 54. Paddock 29, Maim
13, Boyd 5, C. J. Greene of Omaha 5
and the rest scattered among seente-
candidates Paddock seems to be lo
ing instead of gaining, and Majors i
making slow but steady gains.
WEDNESDAYS VOTE
was almost identical with that of Tues
day. The independents hav held n
caucus this week.
MISSOURI LAWMAKERS.
A BUI Introduced for Holding a Constl
tDtinnal Convention.
Jefferson Citt, Mo., Jan. 25. -In
the senate, Rouaer of Knox, intro
duced, by request of the state geolo
gist, a resolution, authorizing the
printing of 3,000 additional , copies of
the geologist's biennial report of the
minerals, etc., and mineral waters of
the state. The resolution was laid
over. A bill of rather wide scope
was introduced by Senator Burks.
It creates the office of circuit
firosecuting attorney, in all circuit
udicial districts in the state aside
from those counties which alone con
stitute one or more judicial districts,
and provides for such attorney, who
shall be elected for official terms of
six years, a salary of $1,500 per year
besides giving him the usual fees up
on conviction of criminals. It reduces
the salary of county attorney in
each county one-third, and with
draws all fees in certain
classes of cases. Yeater, of Pettis, in
troduced a bill providing for an elec
tion to be held on the 5th day. of next
September, submitting to the people
the question: "Shall a constitutional
convention be called in this state for
the purpose of revising and amending
the constitution?" The bill fixes the
manner of holding such convention
and the election of delegates thereto,
I5y a vote of 10 to 13 the Hatch an
ti-option bill was endorsed by the
house.
Among the new bills introduced the
following are of interest:
Mr. Miller, for the taxation of deeds
of trust held by foreign corporations;
Mr. Robyn, requiring all trains to stop
at county seats; Mr. Tattun, for hold
ing a state constitutional convention;
Mr. Smart, changing the primary elec
tion law as applicable to Kansas City by
requiring all political nominations to
be made on the same day and at the
same place; Mr. .Drobelle, requir
ing legal advertisements in St. Louis
nd Kansas City to bo inserted in daily
papers that have a circulation therein
of at least five per cent of the total
population; Mr. Snider, reducing max
imum freight rates twenty-five per
cent on all classifications of freight;
Mr. Bond, providing that weekly ad
vertisements of divorce publications
for four weeks shall be deemed suffi
cient notice.
Three More Alton Victims.
St. Louis, Mo., Jan. 25. Three
more deaths yesterday at St Joseph's
hospital, Alton, 111., increased the
death roll of Saturday's horror to
twenty. The additional dead are:
James N. Murray of Upper Alton, I1L,
county assessor, aged 40. He leaves a
family. Charles Halier, a farmer,
aged 21; Joseph Hermann, whose suf
ferings have been heretofore detailed.
Of the injured it is asserted by physi
cians that fully twelve more are ex
pected to die in a few hours.
StHmboul's Record Rejected.
Chicago, Jan. 25. Stamboul's per
formance of 2:07i made on the Stock
ton, Cal., track, November 23 last, a
mile that crowned him king of trot
ting stallions, has been rejected by
the American trotting register associa
tion. Kremlin, who covered a mile at
Nashville, Tenn., in 2:07 J, on Novem
ber 12, according to the register, is the
acknowledged trotting king.
Colonel William A. Backer Gone.
Chicago, Jan. 24. Colonel William
A. Rucker, pay department of the
United States army, died yesterday of
pneumonia, ne was 63 years of age
and the uncle of Mrs. Philip Sheridan.
MO. 83
BALLOTING IS BEGUN
THE THREE HOUSt-S OF KAN
SAS VOTE FOR A SE.NATOW.
BUT ACCOMPLISH 10fM BTlf.
The Republicans Civ Ad A most Thai
roll Strength PopoltaU ScUter Thefar
. Totes Among Several Candidate
Coban m m Dark Hor
FroTialoni of the Mew
. Senate Loan Bill
' Topkka, Kan., Jan. 23. At 12 o'clock
Lieutenant G - Daniels An
nounced to the senate that the flow
for the first vote for United State
senator had come. The reading clerjc
then read the law on the subject aaul
the voting began. There se d to be
but little outside Interest ' ae gal
leries were almost empty.
The Republican aenat rs cast their
fifteen votes for J. W. Auy, the caucus
nominee. Judge Frank Duster re
ce'ved ten Populist votes as follows:
Senators Baldwin, Cook, Forney, Jum
per, King, Leeds, Leedy, Eodgera,
3. W. ADT.
Shearer and Smith. John Martin re
ceived votes front Senators Armstroiyr,
Dumbauld, Helm, Belmic, Landls and
True. State Chairman John W. Breld
enthal also received six votes as fol
lows; Henators Bowling, Dexmison,
Householder, Reed, EeiCey and 8 in.
There were three scattering votes,
Senator Taylor voting for S. 8. King,
Mr. Dillard, the Fort Scott Democrat,
for J. D. MeCleverty and Ed Oltoyan
of Wichita for Bailey P. Waggener.
After the vote was taken, Senator
Lucien Baker moved to ad
journ until the Populists knew
"where they were at" This was done.
The Republican house call ad the. roll
for a ballot on United States senator
as the clock was striking 12. Sixty-!
responded, Ady receiving 62, "JJd
O'Bryan 2, Ed Carroll 1, Perkins-1.
Wilson, Republican, was not in the
halL Chambers and Rosenthal voted '
for O'Bryan, Meagher for Carroll and
Sherman, Republican, for Perkina
Rosenthal wanted to vote for John
Martin but was subjected to consifier
able embarrassment by protniwnt
Democratic politicians who pulled and
hauled at him. Finally the counsel of
his friend Chambers prevailed and
he voted for O'Bryan.
The Republican house having bal
loted foftienator, the Populists took a
vote resulting as follows: J. W. Breid
enthal 19, M. W. Cobun 11, Fsank
Doster 14, W.'- C Jones 1, Dr. Godfrey
Borer 1, Dr. H. R. Walling 1, Charles
Robinson 1, J. M. Senter 1, John Mar
tin 9, S. S. King 3, Harrison Kelley 1,
John G. Otis 1, W. A. Harris 1, J.'D.
MeCleverty 1 Total 65. .
i nuinan "Out. ot the Contest.
Omaha, Neb., Jan. 24. In nn open
'etter made public to-day, John M.
Thurston formally withdraws from
the senatorial contest. He declare
that the interests of his client, t!
Union Pacific railway company, de
mand his entire attention. Governor
Crounse is coming forward as a dark
horse for the Republicans.
Largest Flue Works on Earth Burne.l.
Elwood, Ind., Jan: 21. The"Mc"Betb
lamp flue works, the largest of the
kind in the world, were burned las;
night The warehouse was saved
The fire originated from too higii
natural gas pressure. Over 600 "men
are tnrown out oi employment iat
' loss is estimated at $100,000; fully Id-
3
sureu.
Teamsters Indulge la a Fatal Quarrel.
Kaxsas City, Ma, Jan. 24. Virj
Chester Rees of the Market Sguari
grocery company, shot and mortallv
wounded J. O. Wade, a wagon drive
for the Midland Dairy company. Tht
' two men were driving wagons an.
met iu a narrow alley, and tfafre "war
let Rees pass.
J
