Image provided by: University of Nebraska-Lincoln Libraries, Lincoln, NE
About The Alliance-independent. (Lincoln, Nebraska) 1892-1894 | View Entire Issue (May 18, 1893)
U th bet
In the west. It Is especi
ally valuable as a means
of reaching 'he farmers.
Its circulation Is as large
In Nebraska as the cir
culation of all the "farm
Give The Allianck
Indkpkndekt a trial if
you want good results.
From the History of ''The Best Banking
System the World Ever Knew."
FAILURES OF A SIHGLE WEEK.
Jmost a "Black Friday" in Wall Street.
' y Three Great National Banks
. j , and Dozens of Lesser Ones
Close Their Doors.
Where We are at Financially.
"The proof of the pudding is in the
The Lational banking system has long
been held up by old party demagogues
as "the best banking system the world
If that claim be correct, the experi
ence of the past few days proves that
' the world's acquantance with good
i'bankln j systems has been very limited.
VVlf One after another the great national
banks of the country fall with a crash
dragging down with them dozens of
lesser banks, and leaving the farmers,
laboring men, and merchants to mourn
the loss of their savings. When the
doors are closed the people are assured
I by the subsidized press that " the suspen-
sion is only temporary," "all depositors
1 will be paid in full" etc. But after a
! ? dreary wait of several week the truth,
like murder, "will out," and the people
find that their deposits , were either
stolen by swindling bank officers, or
squandered in doubtful speculations.
( . country is trembling on the verge of
j bankruptcy. Popular confidence is all
that upholds it, and that is fast giving
away. A general "run on the banks
would burst every bank in the United
States in twenty-four hours. In order
ly to bolster up public confidence and pre
Y vent a general run the subsidized press,
l i under the direction and control of the
V bankers, spreads false roports to allay
The following is an outline of a week's
experience with the national banking
system which the people of the U. S.
have just enjoyed:
Mav 4. Wall Street in a panic. Six
commission firms forced to make assign
ments. Great excitement. Wild fluctua
tions in price of stocks. National cord
age stock drops from 80 to G5, others
were hard hit.
May 5. Wall Street in a wild whirl
of excitement that recalls Black Friday.
Deacon S. V. White fails, and several
other firms assign. National cordage
drops from 65 to 42. Other stocks
suffer heavy decline. A mad scramble
wA among speculators, Vanderbilt, Drexel
I'Utiergan & Co , and other heavy capi-
' talista rush to the rescue to prevent a
' May 8. Chemtctl natioaal bank of
1 ., Chicago clones lU door. Capital stock
one million. Deposits 11,600,000. Bank
eiaainer takoa charge. This bank had j
I a branch on the World's Fair grounds,
which the fair managers had strongly
recommended to visitors and exhibitors.
The bank had thus secured many de
r polU from this class. The fair mana
V , gen will try to raise money to prevent
VklM to those who depot ud at the
f winch on the ground.
May 11. II U. Hoblntoa Company,
bankers and brokers, of Washington,
Delaware, forced to the wall. Llahlll
Ufsir0,0i0; nominal att tioo.oou.
May U.-The Capital National lUak
' . t . I II . ... I I.Llll.l .
w iuuiiB'ii ufwijucvi. i.m out lies
probably UH),000, , The Imtredlate
cause was th failure ttf the l'hm!cl
Natla4 of Chicago ta which taay had
Ma? 1 t.-Tbe Columbia National Unh
of Chicago supaded IteptelWatnouot
..Aka.uk.fe.t Ik U ill i . .. a.
3t sot all. The ridet Zlmrl Uwlg.
Jln U al preeldsat 44 a lot ( oaU
CVonatry baaks ta Uilaolt aid Lvltaaa
r : Q$ i)'J" . " l3
all of which are so connected with thA
Columbia that they are likely to be
Samta Clara, Cal., May 11. The
failure of the Bank of Santa Clara Is
now belisved to be complete, all the
assets having been wiped out. There
are well-grounded reports of fraud, In
volving men of reputed wealth and
much prominence in the eouoty and
throughout the state. The liabilities
will doubtless exceed 1300,000 of which
$170,000 was lost by loans on personal
security. Fraud is charged in connec
tion wi'h these personal loans.
The failure vlll probably ruin several
merchants and a number of farmers,
who, having full confidence in the bank
deposited in it all their funds.
May 12. The Chicago Times says:
In its fall the Columbia has brought
dowa nearly a dozen so-called "branch"
banks throughout Illinois, Indiana, and
Ohio, of which Zlmrl Dwiggins, presi
dent of the Columbia, was also presi
dent The wires were kept hot yester
day afternoon with announcements of
the failures of these country institu
tions that bad been organized by presi
dent DwigginB and Director Starbuck.
Among the country banks which top
pled over yesterday were:
The Dunkirk bank of Portland, Ind.,
Z. Dwigglns, president, failed for $70,
000.' The Commercial S tate bank of Russia
ville, Ind., and the Farmers' bank of
Greentown, Ind., Z. Dwiggins, president
failed for $60,000.
The Geneva bank of Geneva, Ind., Z.
Dwiggin,A president,-' liabilities un
known. The Brookston bank of Brookston,
Ind., controlled by the Columbia Na
tional; liabilities unknown.
The Bank of Morriston, Ind , under
the control of the Columbia National;
The Bankof Greenwood, Ind., under
the Bame control; liabilities unknown.
The Ottawa County bank at Elmore,
Ind., a branch of the Columbia, closed
its doors; the bank officials not to be
The private banking firm of Dwiggins
Starbuck & Co., of Williamsburg, O,
assigned. Laurence P. Good, expert
accountant, arrested for embezzlement.
Citizens' Bank of Hebron, Ind., offi
cers claim the suspension is only tern
porary. Citizen's Bsnk of Edwardsburg, Mich.
People of the town involved to the tune
Farmers' and Merchants of Casey, 111.
Bank of Brookville, Ohio., farmers
and merchants the principal losers.
Broker A. Kline of Chicago was forc
ed , to suspend operations, owing to
money matters affected by the closing
of the Columbia bank.
Beside? these banks which failed
yesterday are several under the Colum
bia National management scattorcd
throughout Indiana and Illinois whose
suspension is looked for at any hour.
The collapse of the Columbia National
has wrought ruin to depositors and
stock-holders in three states.
Other country bank failures not con
nected with the Columbia National are
reported as follows:
Charlevoix, (Mich ) bank; liabilities
Bnk of Itockford, Mich.
nank of Orlean. Ind.
May 13 -The I'lanklatoa lUak of
Milwaukee saved from wreck only by
bringing a large sum of money from
Chicago on a special traiin.
hm the Ztfhruog Glaat and I'alat Co
for paint, gla and glued a. H. K
corser of llb and M, trett, Lincoln
I'm North weetorn line to t'hlcio.
U raws. I at trains. Omc .LI
Our mUs ar UaWd carefully bafm
"iiuf mi irv. uriiimti, tin ratlin
IWhvr A 1'uwWr tav a stock of gva
era inervtiaadl la lawa, au rua
King aad Uulag big taalk hualam44
UImI iHHtatry. 1'arty wiahee la move
to Uhwla a4 will take a vrl clear
profwrty and Nilaac roh. He or
wrtta, liAMttER A low tin,
lloon 10, toil O ni.
LINCOLN, NEB., THURSDAY. MAY 18, 1893.
Condemns the Single Gold Standard, and
Declares tor Bimetalism
TEE WORLDS FOREMOST 8TATE8MA.N
Hon. W. B. Gladstone, Demands That
Money bs Made Cheaper and
London, May 2 The Currency Re
former reprint the following editorial
from a recent Issue of the Scotsman.
The whole matter is so fully set forth
in the Scotsman's editorial that no
further comment is necessary. It is as
MR. GLADSTONE ON BIMETALLISM.
Yesterday afternoon Mr. Gladstone
addressed a meeting of his constituents
in the Free Assembly Hall, Edinburg.
At an earlier hour a deputation from the
Edinburg Chamber of Commerce had
an interview with the right honorable
gentleman, and represented to him that
there bad been during the past lew
months a remarkable growth of public
opinion in favor of currency reform;
that the miners and other workingmen
in Mid-Lothian were now convinced that
bimetalism was the only remedy for
low wages, and the farmers that noth
ing else could save their industry from
ruin, and that similar views were now
prevalent all over the country, and
would undoubtedly exercise a strong In
fluence on votes during the approacaing
Such an authoritative expression of
the state of public opinion is never lost
on the responsive sympathies of the
prime minister, and in the course of his
afternoon's speech he referred to the
subject in the following terms:
"Now, I am sure we all have a most
profound veneration for the currency,
and there are at least three aspects in
which the subject might be regarded,
but as time Is at present of great value
you are familiar with the popular and
highly expressive .faying that time is
money, and it has a currency of its own
which we canuot, and at the time of life
at which I have now arrived.I especially
must cot disregard I shall content my
self with saying in a single word that
currency reform means bimetalism.
( Loud and prolonged cheering. ) 1 might
refer you to my former utterances on
this question, but though I am not
aware that any of the principles which
I have on previous occasions enunciated
are obsolete or inapplicable to existing
conditions, I am now in a position to say
that I regard bimetalism as a question
which is fully ripe for discussion, and
that we are rapidly approaching the
time when it must become ripe tor set
tlement on a broad and final basis-.
Gentlemen, we are bound to take Into
our consideration not only the limited
class of creditors for whom an appreci
ating standard of value has naturally a
strong and irresistlDle attraction; out
we must acknowledge it as tne duty of
a democratic legislature to supply the
muuh larger clas of people who re-
3uire money for the payment of their
ebts with a currency to which they
may have access on easier terms. (Loud
. It 1' essential, at the aauie time, to
provide a standard of value which shall
Leas little fluctuating as the variable
conditions regulating the supply and
the demand far the peolous metals will
permit. Now, it has been demonstrated
by Mr. Giffen and other high authori
ties that within the lat few years gold
has varied from to 25 per cent, and
from HO to 40 per cent, in relation to
othrr eoraniodltlea. The poople, whoa
judgment on alt such questions must
be final, guided by that divine Intui
tion which distinguishes thona whom I
may ca l thw d)1m from the more
artificially hwhiUIcI cotnpontnts of
society dealgoatod the clanat'e, have
arrived at the conclusion that to cor
rect the variable tendency of gold. It
must, as a standard of value and as a
legal medium for the Interchange of
CHimiiHHltltrs, b link! indtulubly
tt!t silver. It ha btn said that It
Pmi1 the wit of man to tlsli a
chm by which a tartalilo standard oi
value shall bo made If m fluctuating by
Unking it with another metal which Is
much mom varUhio,
M Alt v w tVi to AttuMrumi IT,
"Hut 1 aay there ar at least twenty
way ia which the ifoairw 1 end may t
avaleed, or at !atapprteb4 in sut'h
a degrv as ntay apprvdably allevlah
the trvwat uufavotWe e jadttkiua and
U will to the duty of any government
which you way rho Hi adwinUter
the affairs of this country to 0n4 a s.'a
and to provide far the debtors aod the
wsge earners of the country that
plentiful supply of current coin which
they most reasonably demand as an
elementary right, and at the same time
secure for farmers and other producers
tnose nigner prices lor their commoui
tes which they have an equal right to
insist upon. (Loud and prolonged ap
Truly we have the best banking sys
tem in the world for robbing deposi
tors of their bard earned savings.
Ingersoll says: ''Happiness is the in
terest which a good action draws."
That is a species of Interest which old
Shylock never heard of.
Nebraska has certainly been a boodlers'
paradise, but It is so no longer. The
exposed thieves should engage Poet
Lariat Griggsby to write a new Epio
under the old title "Paradlw Lost"
with Mosher for Satan,
No patriotio American citizen will
ever advise any man or class of men to
keep out Of po itics. It is tbe sacred
duty of every citizen to go actively in
to politics. He who will not go Into
politics is unworthy of citizenship,
For the benefit of the State Journal
we move to amend the last years' cam
paign cry of the prosperity shrlekers so
as to read as follows: ''Stand up for
Nebraska boodltn." Thus amended It
will do admirably for the coming cam
paign, i .
Some enterprising doctor should start
a gold-cure for the forgetting habit.
Several witnesses in the Impeachment
trial are sadly in need of treatment,
Bill Dortran will require about twelve
"shots" an hour lor several days to
bring him around.
If the Christian ministers of today
would emulate the example of Christ in
driving the money changers out of the
temple, the people might hear them
gladly as they did Christ. But as long
as ministers cater to the men who rob
the people, the masses will remain out
side the churches,
Col. Calhoun says the enemies of Col.
Rose water, led on by Col. Gere have
formed a plot to have President Cleve
land tend Col R. as cousul to the Congo
Free State. No U. S. consul has ever
returned from that country alive al
though twelve have been sent. The
plotters are simply working for har
mony. Tho worst thing the republicans can
say about the democrats just now is that
they haven't repealed the last great
financial measure of the g. o. p, "the
Sherman act". They say if the demo
crats don't do it at once, the country
will "go to the detonation bow-wows."
What queer results politics do bring
If the impeached state officers really
desire to be vindicated, why do they
and their attorneys and friends do all
in their power to suppress the truth
conceal and distort the facts? Such
efforts may possibly secure an acquittal
in the supreme court, but assures a
con via ion in the court of public opinion.
If they were honest men, tney would
not need to cover up anything.
Editor Gere of the State Journal has
shed several barrels of tfars over the
sad fate of poor old ex-Governor Butler
who was so cruelly and unjustly lin-
pcarhed twenty years ago lie i
afraid tbe same criminal blunder will bo
repealed in the case of the presentstate
'Rloer. If it is, arrangements should
be made to turn the lacbryma. out
pouring from tho Slate Journal offlcd
into ISalt creek to aaalat its slugiah
current In washing out the new chaum l
whhh is now being dug.
Rverv time a bank fill's the noonUi
are treated by tbe subsidized pres to
the same nauseous done: "Depositor
will be piid in full" 'Nonefd f.r
eiclteUient " ' Geueral business un
affected" "Other bank all right."
"The wortl la Bow thought to be over"
etc. A(l r several wrekt of suapenwi
and "hope dferrd that makelh the
heart sick" the deouotk r learn thu
truth which they supretd at tbe t'mtt
U; that the btuk won't pay over ku
cent on the duilar.
AS Im Pttr
A lkloa small boy's grs" lmalhar
a teaching htm a n pr the
siher niijhV It wa la versa and rat
Ju, n-pKn, Wid Mi
Ctrendma," salj the boy, 4o yot
iy that pray T' "W ell not eiaw
ly, ne saer4. Why' "Vau
llyoaaal t It ju J ha to let the
lltl'e lamb go aad say Keep the all
0mu" tUtatoa YraasertuV
The State's Evidence all in, and thelDe-
fente new at Work.
A STRONG 0A8E MADE OUT.
Outragsons Methods Bmploysd to Shield
the Impeached Officials Coach
More About tbe Cell Hoase.
Ao interesting point brought out Wed
nessday was that Bill Dorgan kept no
books while he superintended tbe cell
houM wwi k. Hopkins his auuouisor,
testifies that he opened the first set of
books kept in connection with tbe job.
John Latenser, one of the leading ar
chitects of Omaha estimated the cost
of the cell house at 124,484 allowing
500 for possible errors.
On Thurday the attorneys for the
Impeachment offered tbe record of tbe
evidence taken before the legislative
committee whica investigated the cell
house affair The correctness of the
record was established by the stenog
raphers who took down tbe proceedings'
Of course Webster objected strenuous
ly but tbe court said It was all right.
TBI ASYLUM FBAUD8.
The introduction testimony concern
ing the asylum frauds was continued
until Friday afternoon when the state
rested its case.
The following Is the summary of the
most interesting developments.
John Dorgan, a member of the White
breast Coal Co., was put on tho stand,
but refused to testify. lie said be was
under indictment by tbe Lancaster
county granl jury, and could not testi
fy without criminating himself , After
considering his case the court excused
The impeached officers bad hoped to
profit by the disappearance of the B. &
M. freight records, but in this they
were sadly disappointed. Fred Race
one of the experts employed by the
legislature last winter had copies of all
the important records. He bad se
cured them from the railroad officials.
A small army of railway officials
were put on the stand to identify these
copies and prove their correctness, all
of which was done to the satisfaction of
the court, and the copies wore accepted
instead of the missing records to tbe
great chagrin of 'John L. and his
clients. '1 bus a complete and satisfac
tory record of the coal actually shipped
to the asylum was made out.
THE COAL STEALS.
Fred Race was one of the state's best
witnesses. He was thoroughly famil
iar with asylum coal matters, and had
his evidence in excellent shape for pre
sentation. The attorneys tried hard to
break the force of his testimony but
failed completely. From the recrods of
the railroad company on the one band,
and the vouchers oa file at the state
house on the other, he made a state
ment of the coal (in tons) actually de
livered to the asylum, and of the
amount charged to tbe state by the
WnlteDreast t;oal (jo. The loilowlnir
Is his statement in tabulated form:
October. 1W0 547 173
November, 1WH)..., 879 Mi
December, IWK).... 749 S31
January, 1HHI Vitf m
February, IH91 . . . . 0A) S49
March, BJ 235
April, IKU1 40 141
June, Ihi w aw
Juiy.lWI 44IS IH3
AUKUHt, IMUl 4H9 m
September. IH9I 4ti7 1M
October, mi 7f l
November, l..,. 71 KM
Urn-ember, lxl.... 704 31
February, ltw!i...., Vt m
Total for 16 mo. smi Stta tn
No wonder John Dorgan as a mem
ber of the White-breast Coal Co. re
fused to testify!
The following are some of Mr. Kase's
an wers to qlesi ions w h ich show some
of the methods employed to defraud the
"The freight book shows that the first
car billed to Lincoln at 38 000 pounds
and billed out to th aayluta by the
Whlte-brvastCoa! company at 40,000;
tha neat car received at 30.000 and
billed out at 40,000, The other cars
showed the same dicrpancy la
"Now Mr. lUn said Mr, Larab rt
tia "vu may show In what particular
your tluUtiin wtr not correct,"
"The tar by llandaii, since
raaklug the drat tabulation. 1 Had
was n4 on the book, but to be on the
safe side 1 allowed It to the asylum. 1
tlnd last car U.vVk charge! to the aay.
lum a containing coal, wa loaded with
brja la April 1 found that the
vanl check showwl tarws rare contain
leg eual, but 1 tumid not Iraoo the car
the book at showing where they went,
Ta b sale th 1 credited ti th ay
lum, iit now 1 know ihey did not go
Hr. ll- a!au tUfid that he 84
U several lasiant-et found the saute
car number rtoorded twit e la one or ta
wk so short a tttaa that hy
could not possibly have gone to to.'
mine aad be) btvjght tack.
The government own
ership of railrouds and
That freight rates in
Nebraska be reduced tol
a level with those ia
force in Iowa,
The building by the
national government of
a great trunk line from
North Dakota te the
Qnlf of Mexico.
STEALS IN FLOVB.
The impeachment committee also
made out a very neat case la the mat
ter of flour charged to the state but.
never delivered at the asylum. 8. M.
Mills, manager for the flour firm of &
F. Johnson & Co. testified that the fira
of W. 1). Sewell (which bad the con
tract for furnishing flour to the asylum)
bought the flour of Johnson & Co. The
amounts bought of Johnson & Co. were)
compared with amounts charged to tho
state, and the discrepancy was found,
to be almost as great as that shown by
the figures on cosL But these figures
do not show the else cf the steal, for
large quantities wore stolen alter leav
ing Johnson & Co.'s store.
C. W. Kendall, the drayman who
hauled the flour to tbe aiylum testified
I usually took about one toa a load.
I always get tbe flour at Johnson's
store. ,r ' . ;
"Who received it at tbe asylum?"
"Nobody during 1891: it was not
weighed just dumped Into the, flour
"Did you always deliver all that you
"Not always. I was allowed one sacs:
of fifty pounds for each load."
"During novemDer ana isecemoerv
1891,did you leave flour at anj other
placft than at the asylum?"
"Yes. sir: actlnff under instructions of
Sewell. during November sad Decem
ber of 1891 I would lead up for the asy
lum and on the way out I would unload
a part at a store on Routh Tenth street;
sometimes I would leave 400 and some
times 1,000 pounds."
"How about January, 1892?"
"On January 5 I started out with
2,600 pounds, and left two sacks st my
house. The load was weighed out, bua ,
the wairoa was not weighed back. Oa
January 11 1 took another load out to
the asylum and delivered all that i
had started with. Beginning on Jan
uarv 5. 1892 the oeoole at the asylum
commenced to count tbe sacks, but
Erior to that time there was no account
ept of the delivery." i
After Januarvl. 1892 do you remem
ber of leaving any portions of the loads
at other places?"
"There was several times: I should
say four or Ave times at the Tenth
street store. Sometimes I would leave
eight sacks and sometimes twenty or
even more. I always did this under in
structions from Sewell,"
"Was there anv other time when you
did not deliver the amount of flour with.
which you started?"
"On December 28, 1891, 1 took out a
load and Sewell told me to put thirty-
sacks in my barn."
Did you dw this?"
"Yes. sir. I out the flour in my barn
and a few days later I hauled ten sacks
to the store on Tenth street, ten sacks
to Breckenrldfirs. a saloon man at Tenth
and N street and the balance to Hill, a
man living on N street."
"How did you get your pay.'"
"In floor; that was the agreement.'
PREFERRED THE ALLIANCE INDE
On Thursday copies of Bewick's fam
ous speech delivered last September
were offered in evidence. Copies of the
Bee, World-Herald and Alliance-1n-DEi'ENT
containing the speech were of
fered. The court took them under ad
visement. On Friday Judge Maxwell
ruled out all the reports except that
Dublished in tbe Alliancb-indxpend-
ent which was accepted.
THE STATE'S CASE CLOSED.
On Friday the prosecution completed
the introduction of testimony. Tho
impeachment committee and all others
who are interested in the sucsess of the
prosecution are well satisfied with the
work done. The cse made out is
stronger than the committee anticipat
THE DEFENSE BEOXRS.
John U. Webster of Lincoln spuko
for over two hours outlining the plan
of iefcne. It is the same as already
Indicated by the answers of the lot
peached state officers. The defense
will show aa tar as tney can tnai mere
was no crookedness at the penitentiary
or the asylum. Then they will claim
that tbe state omcers are not to niame
for what crookedness there may have
been. They wid luitlfy the state offi
cer In using the fcO0 on that junket
ing trip. They win try to snow mat it
was ImiHsasiVe for the member of the
board to look Into the details of every
thing on account of the many duties
thev have to perform etc. It la the
same old story the State Joureal has
The manner la which the lawyers fnf
the defense "coach" their w)tnee I
simply outrageous, tiofore going oa
ik at&nJ th wllamfciii for Ih deftiaaa
!. I nf tka f Iiiuimm fne llu tiro.
cutlua too) are put through a regular
A number of witness have Vms
ami nod hut nothing Impor'aat er
atartUag has beea brought out. The
asylum bok-kepr ami baker have
bt put oa the stand to prove that l
n.tur parens were eu vcrrwei trot
ilt LmI!hi1h La auk. The bakera
testimony rti'.ly eoatreltot his toU-
vtay twittr in leg's) five t4neitie
TaVtad of th trial etty be iookwl for
by the la! ol ail week.
Powered by Open ONI