THE OMAHA DAILY BEE : WEDNESDAY. JULY 6. 1887 ;
I I
THE DAILY BEE.
PUBLISHED EVERY MORNING.
TCRMS or gomcntrno * !
Dnflr ( MnrnU * Kdltlon ) Including Hundar
Our. , Onn Voar . 110 00
For Six Month * . C 00
) 'orThr < vi Months . 4 . Z 60
Tli * Omaha Hmxlav linn , mailed to anjr
nddteu , One Voar . S 00
OHAHA OrrtcB , No. nu AND old FARVAM
YOBK orrtrn. n < ) W f > , Tntiii'vp. ntnimva.
All oommunloations relating to nawft nod odt-
torl l nmlt r MioulU bo atMruMod to thu Km-
ion or TMK Bit.
A n bti tno | n letter * find romlttnnco * should ba
rtddroMod to Tim lln Puuumu.su COMPANT ,
OMAitA. Draft * , chuck * anil po Mortice order *
to bo made pajrabta to the ord r of tU company ,
TBE BEE POBLISIIINTcipm , PROPRIETORS ,
E. IKMRWATKR. EPITOK.
THE PAI1/T BEE.
Sworn Statement of Circulation.
State of NchrasVa. I . .
Connty of Doiulas. f s < "
Oco. B. Tzuchucif , secretary ot Tha I ee
Publishing company , does solemnly swear
that the actual circulation ot UIB Dally Itee
for the week ending Julr It 1887 , wai as
follows :
Batnrclav..lunp 35 . M.MO
Sunday , -Mine 2T > . 14'JOO
Monday. .Juno 27 . 14or >
Tupirtay , Juno 28 . M.U5 (
Wednesday , Junn29 . U.040
Tliursday , Junu.'iO . 14,020
1'rlday , July 1 . 13 , i
Averatro . 1 4. 150
ORO. B. IV.irnttcK.
Sworn to and subscribed in my presence
this 2d day of July , A. D. 1887.
1887.N. . I' . Fun. ,
rSKAL.1 Notary 1'ubllc.
State of Nebraska , I
DotiKlas County , f ss
Geo. li. Tzschuck , being first duly sworn ,
dcposM and sa > s that he Is secretary of The
Hco Publishing company , that the actual
vcrnco dally circulation of the Dally lice for
the month of .July , ISbO , 12,314 copies ;
for Aiifftist. 188 , 13,4ftt conies ; for Sentcm-
IXT. 11WO , 13,030 copies ; for October , iBfaC ,
12,089 coplw ; for No vein her. 1880 , 13M8 :
copies ; for December , IbW. . WSr7 copies ; for
January 1887 , UV-W1 eoplc < t ; for February.
1887 , 14,194 copies ; for ftfarch. 1B87 , 14,400
copies ; for April , 1837 , 14lOcopies : ) ; for May ,
1887. H,2'- : copies ; for June 1837 , 14,147
copies.
OKO. n. TxscirucK.
Subscribed and sworn to before mo this 1st
day ot July A. D. , 1S77.
[ HEAL. | N. 1' . FiciL. Notary Public.
TIIK broach of promise bumnorH is
being reduced to a fine art.
HKV. Jotrw JASPEU , of Richmond , is
going to Europe. Ho will probably join
Mr. Dana , and together they will con
vince the Englishmen that the sun do
move.
TIIK Salvation army is having trouble
in Kansas City , and the Kroonbuckord are
dissatisfied in Iowa. The prospect for a
good crop is the only thing that saves the
country.
AT Oakland yesterday hail stones fell
so ranch larger than the traditional hon's
egg , that such a comparison is not in
order. Our informant tt'ls ' us they were
ten and : i half inches in circumference.
NEW YOKK complains of being tax-
ridden. If some of her boodle aldermen -
men had been rail-ridden and sent on n
free excursion to Sing-Sing years ago ,
there would bo no room for such a com
plaint.
THE Georgia legislature convenes in
extra session to-day , and it is predicted
that it will continue three months.
Georgia has been allliolcd with grasshop
pers , but this last calamity stands alone ,
unequalled oven by the ravages of nu-
turo.
JOHN M. TiiuitsTON brought back hla
Fourth of July oration with his fishing
tackle and a job lot of wall-oyod piku ,
caught by Minnesota lisliormon while
John was on the look-out for the soar-
gont-at-arms of the Investigating com
mission.
Poem Jim Dawesl There are none so
poor to do him reverence. While everybody -
body round about Crete was called out
by the Clmutauqita assembly to lire on"
nn oratorical Fourth of July rocket , his
ox-excellency was never as much as
mentioned. Republics are provorbally
ungrateful.
TIIK Pacitic Investigating commission
lias been at Lincoln , and was entertained
with that same old chestnut concerning
California sugar being shipped to Omaha
and then back to Lincoln. This sugar
alory delivered In job lots of tou car
loads each , would go down. But when
it comes in broken packages , it would
tick even in the throat of ex-llailway
Commissioner Gore.
THE fact can not bo successfully dis-
Dutod thatin ; the estimation of the royalty
of England Mr. James U. lilaino has not
ns yet reached the hltrh social altitude oc
cupied by our own distinguished cili/.on ,
Colonel William Frcuman Cody. It must
nlso bo remembered that the only public
office Colonel Cody over held was that of
juembor of the Nebraska legislature and
justice of the peace. Queer people that
royal family.
WIIKX Governor Hill , of Now York ,
appointed Colonel Fred Grant one of the
quarantine comm'mslonors for the city of
Now York the republican senate refused
to confirm the appointment. The repub
lican lenders seem to realize that it was
n mistake and may possibly n licet them
nt the next election. It is now proposed
to nominate young Grant for secretary
of state. Thu name of Grant is htill
worth several thousand votes in the WH
pire btato.
IN tlio event of thn nomination and
election of Allen G. Tlmrir.tin as gover
nor of Ohio , if Prrsidout Cleveland will
put Ma car to the ground about the
middle of next November , ho will hear a
ilcmouratlo yell for the "old Roman"
coming m from all parts of the country
that may cause him to decide positively
nbout giving up the occupancy of the
white house on the third of March ,
There may bo a presidential eiiiutidatt
yet in that eld red bandana.
TIIKIIE U only ono way to checfc job
bcry and boodlmg when municipal legis
lators bind themselves together vrltl
public plunderers mid v administrative
ullicera lack the ncrvt ) to interpose thoii
jiuthority ugaiust jobbery , and that it bj
invoking the aid of the courts. It was
very Directive in defoatmg the Ilollj
waterworks and sandstone jobbers ami
affonl. the only safeguard against th <
boodle t > chctrn m of which that iruuduloul
Hounds & Taylor contract Is merely t
! oreruuner <
Th Vacant
If the reports from Washington can bo
relied upon , the president has indicated
his dcslro to appoint Secretary Lamar to
n justiceship on the supreme bench , suc
ceeding the late Justice Woods. While
It is a well established fact that Secretary
Lamar is an sblo and bratnny man , lie Is
not the proper person for the place. In
early life Mr , Lamar won some distinct
ion al the bar. What training has ho had
to lit him for n justiceship upon the
highest judicial tribunal in the world ?
Mr. Lamar has not bon a practicing law
yer for almost twenty years. At the close
of the war ho was among the lirst of
those whoso fortunes had been cast with
the confederacy to bo elected to congress.
From that day until the present
ho has constantly been a sen-ant of the
people , scrying in the house of repres
entatives for a number of years , followed
by his elevation to the United States
senate whcro ho remained until selected
by President Cleveland as a member of
his political household , It la freely ad
mitted that Mr. l.nmar Is a student , but
his studies are no part of the law , nor do
they have any bearing upon civil juris
prudence. Ho is a student of literature ,
but not of law.
Thcro Is still another more potent rea
son why Iho president should not make
what wo believe would bo an unwise
selection in the person of the secretary of
the interior. Mr. Lamar is not a man of
ideas that can properly bo termed"prac
tical. Ho Is a theorist , and full of dreams.
In addition to this hois a slave to the use
of morphine , which renders him for days ,
and sometimes weeks incapacitated for
bvsincss. At Washington complaint is
general that important business of the
interior department has for weeks gene
unattended because of the secretary's
unfortunate habit.
When Mr. Lamar was an "inmate" of
the semite he was well known as the
friend of railroads and tlio advisor for
corporations , in other words , "a corpo
ration senator. " It the people of the
country could be consulted , Mr. Lamar
would not bo made the successor of
the late Justice Woods. The supreme
court being the highest tribunal ,
and the court of the last resort ,
its bench should not be loaded
down with paid attorneys from railroad
corporations. If the president is sincere
in his expressed wish to select n person
from the south , and a democrat , he can
Hnd any quantity of material ; men who
will wear the judicial robes with fidelity to
the people , and honor to the position.
Mr. J. Randolph Tucker , of Virginia ,
who served with distinction at the hi-ad
of judiciary committee of the house for a
number of years , would bo an excellent
man for the place. IIo is not a politi
cian. He is a lawyer and ono of the
most learned at the south. He is an hon
est man , and a man identified with the
people , who was never the personal rep
resentative in congress of railroads or
other corporations. If Secretary Lamar
is to bo continued in the public service
lot him remain where ho is.
of n Unnk Failure.
The developments connected with the
failure of the Fidelity bank of Cincin
nati are instructive ] and the lessons they
impart ought not to bo lost. They may
indeed not bo entirety now , but they are
not therefore the loss impressive. Per
haps the most salient of these lessons is
that the system of bank examination is
not sulliolently careful and thorough.
Take the example of the broken bank ,
which was literally gultml by the wheat
speculators. A short time bc-foro its
collapse it was visited by a bunk ex
aminer who found that its books showed
it to bo in possession of a million dollars.
Hut when ho sought to ascertain the
whereabouts of this sum ho was simply
given a pencil memoranda of amounts
aggregating about a million dollars due
the bank by the vnirtias who it trans
pired a few days later had plun
dered the in&titutious , and the examiner
seems lo have been satisfied with this
showing IIo was not required to bo.
The law gives th ese otllcials ample power
to make their examinations as thorough
as they shall doom necessary. 15ut the
truth is they very rarely comply with tlio
plain intent of tlio law. Some years airo
an eastern bank was robbed by its c.ish-
ier of several hundred thousand dollars.
When ho saw that exposure was inevit
able ho committed suinido , and in a letter
ho loft to the bank olllccrs ho .said there
could bo nothing more simple than to
fool % bank examiner. Some of these
otlicials are not quniiliod for the duties ,
while most of them arc content to per
form so much of their duties as they do
understand In a more perfunctory way.
Sharing perhaps In the general confi
dence that bank directors are keeping
n vigilant watch and ward over
the business of their banks down
to the smallest detail , and doubtless m-
iluenced also by the feeling that a
thorough investigation to confirm the
statements of otlicials might bo oll'cnsive ,
the examiners are too often satisfied with
the llgurcs given them and a merely su
perficial examination. Jt should bo un
necessary to say that the business of the
examiner deus not warrant him in giving
any consideration to his own or the pop
ular contidouco , or in yielding to any
sort of sentiment. The law expects him
to verify every statement made to him ,
to see that the books accurately repre
sent the actual condition of the bank , and
to report the results of his examination
as facts of his own knowledge. Other
wise the system can bo of no real value
as a trustworthy statement of the condi
tion of a bank , and aiight as well be
abandoned.
The comptroller of the currency , who
has been somewhat severely criticised in
connection with the Fidelity failure , but
who probably cannot justly bo charged
with being at fault , practically admits
that thq local government examiners
cannot bo rolled upon to keep everything
in proper condition , and ho will review
in his next report the recommendation
madn in that of last year , that besides
the local examiners there be appointed
some half a do/.cn supervising examiners
to bo paid by the government , and not
by the banks. The duty of these would
be to review the work of the local ex
aminers. There can be no doubt thai
such a plan would be likely to secure
more uatiffnctory results than are ob-
mined at present. It would certaiulj
insure more careful investigation on the
part of tbo local examiners , and il
the supervising examiners were thor
onglily competent men , wholly free
from bank influence , danger from
the shortcomings of the former , by rea
son of incompetence or any other caunc ,
would bo greatly reduced , It U verj
certain that public faith In bank exam
inations as they are bollovod to bo con
ducted at present is not very strong , and
something needs lo bo done to restore it.
The plan of the comptroller docs not ap
pear to bo open to any serious objec
tions. It would oroato a few more gov
ernment olliclals and increase by a few
thousand dollars the annual expendi
tures , but the people wilt not find fault
with this if thereby the banks of the
country shall bo rendered more secure
against such rascals as Harper and his
fellow thieves.
Another lesson of this failure is that
the government should not bo too
ready to give its endorsement to now
banks by making them depositories.
Senator Sherman has expressed the
opinion that no bank , such as the Fidelity
was , should bo made n government de
pository. The effect of such an indorse
ment by the government is to give a new
bantc a claim to public conlidcnce which
it has not earned by the only method that
can establish and entitle It to confidence
H prolonged and successful business
career. Finally , this failure suggests
that the national bank act must bo made
stronger , with safeguards against such
bold swindling as it disclosed , in order
that the banking system shall not be
available for the use and abuse of any
unscrupulous rascal who , like Harper ,
can Hnd the means to start-a bank.
Hallway Kttenslon.
Since the first day of last January
there has been 3,751 miles of railroad
constructed in thirty-seven states nnd
territories. In the list of states Nebraska
stands fourth , the number of miles being
constructed , U31. Kansas heads the list
with a new mileage of 092 miles.
This mileage is the work of seventeen
loads while in this state it is confined to
live. The next highest is Texas where
eight roads have been constructed with
48 ! ) additional miles.
The third highest Is Indian territory
with four roads , having built 443 miles ,
Dakota territory seven roads , 304 miles ;
California five roads , 158 miles ; Missouri
live roads , 144 miles. Of thu southern
states Alabama , Georgia and Floritta
make thu best showing. The following
table will show a summary of track lay
ing in each of the twenty ycara preceding
the present :
It will bo seen that the record for the
lirst six mouths of 1887 shows nearly so
great mileage as that built in 1884 , and
considerable more than that in 1881 , and
that it is greater than the mileage actu
ally added in about one-half of the last
twenty years.
The record of 1880 was surpassed only
by that of 1882 , but that of the present
year seems to bo in a fair way to outdo
its immediate predecessors , and perhaps
to exceed that of any previous j'ear. It
can be seen that In 188'i the now mileage
of i ail ways was greater than that of any
year named in the table , nnd il was also
greater than that of any year during the
history of railroad building.
The mileage above named does not in
clude the several hundred miles of sid
ings , but is confined to new main line
tracks.
Dr. McOlyiiu I xcoiiiinunlcated.
Cable advices from Rome announce
that Archbishop Corrigan , of Now York ,
has been directed by the papal conclave
to excommunicate Dr. McGlynn , and
publish the decree in the Catholic jour
nals throughout the world. This does
not come unexpectedly to the rebellious
doctor , for in declining to answer the
summons of the papal father to appear
before him in Rome previous to the 2nd
ot this month , was equivalent to a recog
nition of the decree.
This is the lirst instance in a numbci
of years where excommunication ha-i
gone forth with such papal demonstra
tion to a member of thu priesthood m the
United States. The original idea and
custom ot excommunication in the church
is not now in use , and is in fact
obsolete. There was a time when the
person so oxcommunio.itod was deprived
of all soeial and personal recognition
from members of the church upon pen
alty of their being also excommunicated ,
lint such is not-the case now. Excom <
muuication was then incurred by those
who dealt with ono who had been exconv
munlcatod "by nmo , " but Pope Pius IX ,
deliberately dropped this inhibition from
the law wiuiii enumerating the censures
incurred according to law. All canon
ists since 1UU9 have been taught that this
censure has lately ceased , and in 1831
Pope Leo XIII. approved the public
declaration of the congregation of the
sacred inquisition that this censure a ;
established by law had positively ceaseil
to exist.
Now only the rites of the church , and
the participation in any of the sacred du
ties are forbidden the person excommu
nicated. He can neither preach nor saj
the mass nor extend the sacrament
Neithci can any mombcr of the church
engage with the oxcommnnicant in sucli
services , Beyond this the church , uudoi
thu law as ghcd by Popu Leo XI1L , lias
no jurisdiction and could not take cog-
ni/.ance of any personal or social rola *
tion.
tion.The
The person excommunicated is no1
supposed to cither preach or cngagi
whatsoever in any of the prnntfces of tin
church ; that he will not bo deprived ol
attending the servleos , or of indulging in
sucti personal worship as he may elect ,
He can come to IntoQtlui church and par
ticipate In silent prayer , but ho caunoi
lift his voice as ono of the church ,
WHKN Mayor Uroatch approved the
Rounds & Taylor printing contract with
out reading it , ana without exacting nt
ollioal certificate from the city attornej
that the contract was legally drawn , he
was guilty of gross negligence , to say the
least. Hut it was in his power to rectify
this blunder. Tbo contract which ho had
signed Uad to go back to the council foi
Us final approval , When he ascertained
that the contract was not drawn in ao
oordanco with the bid and learned
through the city clerk that Cadet Tayloi
had withdrawn two of his bldi which
wore evidently lower than the one on
which the contract was awarded , it was
hi * manifest duty to rescind his approval
and sand the contract back to the coun
cil with a message calling attention to
the discrepancy between the bid and con
tract M drawn , but Mayor Broatck lacki
stamina. Ho dons not want to Incur the
ill wilt of the Rounds & Taylor gang ot
bulldozers and jobbers. Ho admits that
the contract was procured by imposture
and sharp practice , but ho has not back
bone enough to stand between thu job
bers and taxpayers by exercising his un
questioned right to undo the fraud to
which he unwittlnily gave his sanction.
Mayor Uroatch iWjnot serve two masters.
Ho cannot serve the taxpayers and ac
commodate jobbers and booilers at the
same time.
4
The MiJiif i Succe ful.
Cti < V < ne "Lfiultr.
The Umtha BF.K Is sweet sixteen. Started
M a gratuitously distributed handbill U Is now
one of the most successful newspapers In the
western country.
H lc and Hearty.
liutler County Prw.
The Omaha KER celebrated Its sixteenth
birthday last week , It looks halo and heartr
Is neither "foundered , "sweenyed nor knee-
sprung , etts well , and Is liable to flourish as
the newsiest paper In ttu > state for many
years. A good many people dislike Hose-
water , but all like his paper , Success to the
Omalin an n Stock Market.
1'orfc Time * .
As wo have often remarked , homo markets
are the surest and the most enduring solu
tion of the transportation question for this
country. It Omaha becomes a gicat me
tropolis , which It Is almost sure to do , and
other large cities build up In the state , a
largo amount of the product of the state will
be consumed at home , and will command a
much better price , lint more Important still
are the packing inteinsts of our .state , Which
nre rapidly developing Says the Omaha
UKK :
"The business done at the South Omaha
stock yards is rapidly assuming mammoth
proportions. On Tuesday , 8,000 hogs were
received , nnd Monday there wore 0NX ) . All
wcro > old heie. Hesldes the hoas , there are
from 000 to 800 head ot eattlo sold per day.
The Union stock yaids bank transactions on
Wednesday , amounted to over 8500,000.
These figures are evideiico of the growing im
portance of Omaha as a live-stock market
STATK AND TRUR1TOHY.
Nebraska
The town cow in Plattsmouth must go
to the pound or pasture.
OThe horsothiof is no lonnor abroad in
Dundy county. Ho is in jail.
The now Congregational church at
Hushvillo will bo dedicated next Sunday.
Fremont intimates that Hastings is a
bag of wind with the clapper-valve wide
open.
The Fremont postoflico shows an in
crease of | 1GOO in earnings the past fiscal
year.
Fremonters will bn content if the Klk-
horn Valley railroad shops arc located
thcro.
Subscriber , Valley county : General
Drum lirst suggested the return of the
rebel llags.
The salvation lieutenant in Hcatnco ,
who shouted "lire" until his lungs
quailed , was accommodated by a hose
company and put out.
Plattsmouth's second cannery , that of
Carruth * Ss Co. , is operating on string
beans and peas , with 100 acres of corn
and thirty acres of tomatoes in reserve.
To several anxious democrats : Mar
shall Hierbower continues piling up fat
tee.s in the federal 'building serenely in-
dilVerent to the clamorous lamentations
of the faithful. "
The once proud bird of liberty is laid
up in a cyclone cave from the ellects of
the assault of Colby , Howe and Chase.
Even the dashing Colonel Sabin rctuses
to write a mutual policy on his life.
ll. P. Alfoth , a Wymoro brewer , is ac
cused of balancing his accounts by cre
mating them together with his browery.
He is meditating on ihe smooth side of a
plank in jail.
Soycr.il absent minded individuals at
Hastings finally acknowledged to the
board of equalization that they owned
from $20,000 to $40,000 more of the
world's goods than showed up in the
assessor's books.
The Hungry Looking club , a late insti
tution in Fremont , limits its membership
to real estate agents. The club quarters
are not sulUciently commodious to take
in all male residents and bachelors.
Mr. and Mrs. J. Tooley , of Shelton ,
celebrated their golden wedding last
Wednesday. The joyous occasion was
remembered by friends who presented
the couple with $25 in gold , a life lease
of a town lot and an order tor the lum
ber to build a home.
The Fremont stock yards company has
placed orders for material for the con
struction ot the pens , a railroad and a
hotel. The olant will cover thirty-live
acres and will accommodate .1,000 head
of cattle and 4,000 head of hogs. The
packing house will be built directly south
ot the yards.
The Listener has gene out in a sky
rocket li// . In a moment of mute fren/.y
he unfui led his torquois-tlnted gossip trap
to catch the enthusiasm of bnrning pow
der in midair. A dismutlcd : rocket
spied the gaping depths and swept away
several yards of the outer roe p. It
couldn't miss it.
The Heatrico Democrat has made the
cheering discovery that the I&F.K & "is
more guarded in its language in refer
ence to the Mutual insurance company. "
The Democrat would also discover , if it
shot a glance beyond the boundary
of the town , that the company
has modified its patent gouging
process to the extent of taking in a num
ber of "prominent citi/cns , " for adver
tising purposes , on the ground tloor. Is
the Democrat on the list ?
Iowa Items.
The normal school building at Algona
is about completed.
Frcomail delivery has boon inaugurated
in Clinton and Muscatine.
Sovonty-livo barks were soutlled by vho
police of Cedar H pWs last week.
State Mine Insp pror Stout makes an
enthusiastic report lfim the natural gas
wells of Guthrlo cdluity.
Carroll Is doing' largo amount of
building this ycar&-Among ' the improve
ments is a flO.OOO court-house.
Davenport turners laid the corncr-stono
for their now hall { OH Sunday A largo
number of visiting ipombcrs of the order
from neighboring Jfpcos were present.
Miss Anna SoIiKuim , of Uurlincton ,
went to her windowio listen to the music
of a seronado. SW [ < leaned too heavily
against the blndsrHiIch ! parted and the
young lady fell to { hi ground. The local
report says she wMJ' nuoh shocked by
the fall. " ya
Dakota.
The cowboy amtfsfr himself In Deadwood -
wood by shooting dogs , even at their
master's heels ,
Custer boasts of a supply of water "as
clear as amber , cold as ice , and as pure
as angel tears.1
Delegates are being chosen to the di
vision statehood convention , to meet at
Huron on the 18th inst.
Lawrence county has enough saloons
to yield an annual revenue of $40,000
under the new liccnso law.
All Souls church , to bo erected thlsyear
in Sioux Falls , will bo 48 by 03 feot. The
contract for the mason work has been let.
Sim Nichols , a barber m Carbonate
Camp , lilaok Hills , abused his young
wife , who eloped with him a year ago ,
and the boys tarred and feathered him for
it The young woman has gone to her
paruits m Central City.
RACY RAILROAD ROMANCE ,
How Jay Gould Frightened a Lot of Bouton
Capitalists.
GOULD'S GORGEOUS QRIT
An Interesting Agreement A Man
Who Feared to He Known In
the Transactions An Kntcr-
Skotuli.
Now York World : Jay Gould origin-
nlly became Interested In Union L'acilio
in 1871 , having , as ho states.loarncd from
lloraco F. Clarke , one of Commodore
Vanderblll's sons-in-law , that thcro
sooined great possibilities for the property
in the future. According to his own ac
count , in 1874 ho bought 100,000 shares
at about 30. Shortly afterwards Mr.
Clarke died. Air. Gould entered actively
into the management , as is his custom
with enterprises In which ho embarks.
lie cruve a great deal of tlmo to it , and
assisted the road financially for some
7ears , so that at the close of 1870-7 ho
held ns much as 300,000 shares out of n
total of about atiO.OOO. The relations at
this time existing between the Kansas
Pncilic and the Union 1'acitio were pe
culiar. The Kansas Pacific starts from
Kansas City and lias a general westerly
direction parallel with the Union Pacific ,
about two hundred miles south of it ,
going through a region of coun
try wlicro the elevation is not
so great , and having a great many
natural advantages. Tito road has boon
butchered , almost , so far as finances
wore concerned. It was subsidi/.cd by
the government lor the lirst 301 miles
west of Kansas City , and from that point
towards the west it had been built at
hapha/.ard , all the bonds and securities
Unit could bp put upon it in any shape
having been issued to directors ami to
other parties whoso position enabled
them to get advantages out of the road ;
so that 187.1-0 the Kansas Pacific was a
pitiable spectacle. As Mr. Villard him
self described it in his evidence , It was "a
forlorn concern. " Every mortgage was
in default , and mortgages which had
been mudo to fund coupons were in tiuiir
turn defulatod. The road was poorly
constructed , its business was very small
and it was in the lastgasu of bankruptcy.
The construction of the road carried it
as far west as Denver and from Deliver
to Cheyenne , which is nearly north , a
distance of a little more than three hun
dred miles , there had been constructed
what was known as the Denver Pacific ,
as a connecting link.
TIIK KANSAS 1'ACIFIO TOOL.
The relations between these two roads
had been very hostile , the Kansas Pacific
people trying to compel the Union Pa
cific people to prorate , so as to enable
them to share in such transcontinental
business as they might bring to Chey
enne and there deliver to the Union Pa
cific. This Has resisted , and the rela
tions between the two communes led tea
a number of similar contests in regard
to tratlie between Denver and Clioyenno ,
the Union Pacific having built a rival
railed the Colorado Central , simply in a
spirit of hostility to the Kansas Pacilic
road. About tlio year 1877 Mr. Gould be
gan to take a lively interest in the secur
ities of the Kansas Pacilic. A scheme
was formed to gather all the hetero
geneous mass of bonds , coupons , stock
obligrtions and lloating debt of the
Kansas Pacific , and convert it into a sin
gle security , the terms of conversion be
ing lived by commutation rates bused
upon the value of these various secur
ities. This was known as the Kansas Pa-
cilip pool. Mr. Gould was the most
active member , and his interest was rep
resented by over 2,000,000 of what were
known as subordinated income bonds ,
purchased by him shorty before 1878 , at a
price probablv not exceeding 10 cents on
the dollar. The other active interest in
this pool was known as the St. Louis
aity. This party consisted largely of
olliccrs ot the Kansas Pacific road , and
their interest was largely in the Kansas
Pacitif ; stock.
The general feature of the plan was
that the iirst mortgage on the road was
not to be disturbed. The United States
lien was also untouched , the two amount-
inn to about if 12,000,000. The succeeding
bonds were scaled at 60 cents on the dollar
lar , the subordinated incomes held by
Mr. Gould at 150 cents , and the stock at
13J cents. The whole mass of the securi
ties thiin to be converted footed up about
$17,000,000. The intended result of the
conversion was to transform these securi
ties into about $5,000,000 , of the now se
curities. In the spring of 1871) Mr. Gould
bought out all of the St. Lotus people ,
The evidence taken before the commis
sioners contains a statement of the terms
ot this purchase. Tim principal feature
of his p'urchaso was the stock of the Kan
sas Pacilic road , of which ho had bought
over 100,000 shares at itj per cent. In the
early spring of 1871) ) Mr. Gould had ac
quired an interest exceeding 100,000
shares of Kansas Pacific stock at a cost of
a little over $300,000 , $2,000,000 of subor
dinated bonds at a cost of not over
$200,000 , , besides having an interest in va
rious other securities of this company of
smaller amounts.
TAKING IN TUB ST. JO AND WKSTKItN.
The St. Jo & Western is a railroad ex
tending from St. Joseph on the Missouri
river to Grand Island , a point on the
Union Pacific distant about two hundred
miles. The railroad , in 1871-5 , had passed
through a financial experience if possi
ble more disastrous than the Kansas Pa
cilic. The road was poorly built , scantily
equipped , : uid its securities scarcely worth
civing rway. From the evidence taken
before the commissioners it appears that
in 1871-r , > the lirst mortgage bonds sold as
low as 0 , and the stock and subsequent
securities c.uno , to bo known as "trim
mings , " and passed without additional
consideration in all transactions rclutititr
to bonds. In the .sprint : of 187i > Mr. ( iould
bought a controlling interest in this com
pany , securing between a million and a
iialf and two millions of the bonds at10 ,
and about 15,000 shares of stock which
passed with the bonds. It appears from
the evidence taken before the commis
sioners that out of the securities pur
chased by Mr , Gould from time to time
ho allotted to those interested with him in
the management of the Union Pacilic a
moderate pronoitlon of his lioldings at
the price paid by him , su that in the sum
mer ot 1870 substantially all of the di
rectors of the Union Pacilic were inter
ested as ho was , but in much smaller
amounts , in the stock of the Kansas Pa
cific. in its bonds , in the bonds of the St.
Jo iV : Western and its stock.
In the fall of 187 ! ) the scheme for the
consolidation of the Kansas Pacific wiiu
Union Pacific , which before that time had
been mere discussion , under the influence
of Mr. Gould took serious and tangible
snapo. A letter was written , signed by
( iould , Dillon , Sago , Ames , Dexter and
Atkins , addreficd to Solon Humphreys
and G. M. Dodge , requesting thorn to ex
amine into the a flairs of the two com
panies and report suitable terms of con
solidation. ' 1 his letter was dated October
23,1879. Up to this moment Mr. Gould
had been an advocate of consolidation ,
but it was to bo consolidation as ho
wished it. It appears from the evidence
of the lioBton directors that ho and the
Union Pacific people and the Boston di
rectors could not coma to terms , ( iould
asked more then they wore willing to
concede , None of the witnesses wore
able to recollect the exact point of ( infer
ence. except that Mr. Gould asked too
much , and the negotiations were broken
oil' . When , a few months latter , the ne
gotiations were carried to a successful
conclusion , none of Iheso. same wltnossw
could remember any concession rnado bj
Gould. They said ho was "ruoro con
" " " " ' non <
dilatory" nmt "more "pliant'but
of the.m could recall any change in the
terms of consolidation ,
The essential money feature In tlu
consolidation was , to Mr. Gould , the
Kansas Pacific stock , lie had bought if
at Oh and ho wished it rccognlmt in the
consolidated company at par. It is clear
that the failure to agree , which occurred
in October , was dun to the fact that the
Boston directors of the Union Pacific declined -
clined to permit the Kansas Pnolllo stock
to bo recognized at par. The Union Pa
cilic for years had been paying dividends ;
the Kansas Pacific had barely emerged
from bankruptcy , and the prices to which
its securities had risen were simply the
result of the accumulated purchases of
Mr. Gould and his associates.
TIIK T.1TTI.K JOKKIl IKTIIK OAME.
The failure ot this negotiation led to
some consequences or great importance.
The Missouri Pacilic , then in the substan
tial ownership of Commodore Garrison ,
extended from St. Louis to Kansas City ,
on the same general parallel of latitude
as the Kansas Pacilio. The Union Pacilic
Central branch and the Kansas Central
were partially constructed railroads be
tween the Kansas Pacilic and the Union
Pacitic , nnd extending westward. To
fully appreciate the succeeding events , it
must be remembered that Mr. Gould was
at this moment the owner of an enormous
interest in the Kansas Pacilic stock , and
that the success of his operations de
pended upon his securing for that stock
a guaranty of recognition that would
give it an assured ami permanent value.
It appears from the evidence that im
mediately after thn failure of the Octo
ber negotiation Mr. ( iould wont west ,
November 7 , and apparently without
preliminary negotiation ho bought from
Governor Amos , of Massachusetts , a con
trolling interest in the Union Paoilic Cen
tral branch , paying therefore an nverage
prices of $831) ) a sliaro. It appears from
Governor Amos' testimony that the stock
of this road , barely a year before that
time had sold at 10,15 nnd 20 cents on
the dollar , and it also appears that
within a few months of this sale the stock
was bought at par. The road had never
paid or earned a dividend. November
13 Mr. Gould , also apparently without
preliminary negotiation to anv extent ,
purchased the Missouri Pacific from
Commodore- Garrison , paying him for
stock 750 per cent. Ho also bought the
Kansas Central , paylnc for a control of
the bonds nnd stock 1170,000.
Immediately after these transactions
were consummated it boc.unu & public
report that the Missouri Pacific was to be
extended through the Kannaa Paoilic , the
Central branch and the Kansas Central
beyond Denver , through Ixivolantt Pass
to Ogdcn , and thence to the Pacilic ocean.
Tliu ell'cct of Urn information upon the
Boston directors is graphically described
by Governor Amos. Ho declares that ho
never saw a more frightened people than
these Boston directors when they heard
that Gould was going to thn Pacitic octmn
with the Missouri and Kansas Pacific
railways.
Tin ; nosroMANs nAm.v SCARED.
Thpso Boston gentlemen at once began
a series of pilgrimages to this city. Gould
had absolute control of the situation.
Ho wanted consolidation , but consolida
tion according to his own notions. If the
Boston people would accept it that way
they could have it ; if not , tliev could
have the competition of the Missouri Pa
cilic system extended to the Pacilic ocean ,
Mr. Gould himself , when asked what the
ollect of this competition would have
been on the Union Pacilic , declared im
press ely , "It would have destroyed it. "
The negotiations between the Boston di
rectors and Mr. ( iould culminated Janu
ary 11 , 1880 , at a meeting hold at his resi
dence in this city , where , as ho duuhire.s ,
the Boston directors would not let him
leave the room until ho signed a paper
agreeing that the consolidation should
go through. There were present bcsldo
Gould at this interview Kussell Sage. Sid
ney Dillon. Frederick L. Ames , K. II.
HaKcr , K. G. Dexter and IClisha Atkins.
The outcome was that' Mr. Dexter drew
up on a shi'ot of letter paper the follow
ing agreement , which all present signed :
KANSAS PACIFIC KAII.WAY COMPANY , I
7a HnoAiWA.r ) , Niw : YOKK , , J n. 14 , IbM ) . f
Memorandum for ttmns ot uirtmiiont ) lor
consolidation of l < nlun Tactile with Kansas
J'acilic , ill which the Denver Pacific , % . Joe
it Western anil Union I'adlic , eastern di
vision , are Included , all necessary papers and
any furthnr au'ieenients to hn prflpm > d by
.Indigo Dillon on his rntuin. The Union anil
Kansas Partite , \\lth all their icspecthe as
sets and properties nnd liabilities , : uo to bo
put toirether : it p.ir of their respective eapl-
taU-8Jfl,7iaJto ( : , uid MU.OOO.ooo , to which Is
to bo added the capital of the Deliver i'.icltli1 ,
S , OUO,0 < X ) , inaklnu the capital of the Union
Pacllic Itallw.iy company , ns the uow line
shall be called. S.7.i,702SJO.
The Denver I'.icluc capital , now an asset
of the Idinsas I'.icllic , to ho useil after coii-
\ersion Into Union I'.iclhe rallwav slock to
pay lor shares and bonds of St. .loo it
\Vestci n railroad and St. , luti In Idee , as
hereafter stated , nnd for other iiurpuies.
The St. Jot ) \Vustuinuilro.id lirst
inortcaire bonds and .stock , to the extent of a
controlling interest in the sauiu , to foe boiiu'ht
ot patties now owning it at pat tor liomls anil
§ 0 t\ share for stock payment to IK >
made In Union Pacific lailway stucl ; at par.
The road to be leased to the Union Pacific
railway coni | > uiy lor tlui Interest on the lirst
mortKSRH bed n s or otherwise as may bo de
termined. Tlio liridiie at .St. Justuili is to ho
hoimht of parlies now owning controlling in
terest In the bond and shares of the same at
pur tor bonds wittiitho shares thrown In , anil
payment to be made cither In shaiesnf Union
I'acllic railway at par or Kansas 1'adhc con
solidated mortgage hands at par.
The Union Pacilic eastern division , Is to
betaken at cost to Mr. ( iould and paid tor in
sniiic securities that he gave , viz. , about one-
hall In Katis.isJI'ndlic consolidated mortgage
bunds and one-half in new Union I'aeihcii
per cent , tilist bonds , both at par.
K. S , ,
JAY < ! ouLi ) ,
FIIKU'K U AMK.H ,
1 * 11. HAKIM : ,
F. < S. lK\ri.it ,
iilUN'KY DlM.OX ,
K. A'IMMs.
TIIK KFKKCT OK THIS AGUnKUKNT.
Uy the terms of this paper Mr Gould
secured for ' 10,000 full shares of K-insas
Pacilic stock that had cost not to exceed
$250,000 , $ t,000,000 , ; he secured $1,500.000
for a like amount of St. Jo and Western
bonds that hud cost him $ G'U,000 ' ; h was
also enabled to turn in some 150,000
shares of St Jo & Western -jtock which
had cost him nothing at f'-io a shiirc. The
Central Branch purchase ami tlio Kansas
Central purchase , which had been taken
in connection with the Missouri 1'acilio
scheme at extravagant ligtircn by Mr.
( iould , went turned uver to the consoli
dated company , and Mr. Gould was
thereby relieved of the burdens he hud
assumed. One of Iho parlies present ,
with uu unconscious reali/.alion of the
gross impropriety of the business which
was being transacteds < ! < mis to have b jn
afraid to ativ ! his entire name uml to
Irwo been willing onlv to identify him
self with the transaction by use of his
initials , " 11. S. "
1 he signing of this paper determined
the consolidation. Them was no consul
tation of stockholders , no submission to
boards , no corporate action. Guuld had
willed it in his house , and his will was
law. January 10 , two days after the
piper wn .signed , Humiihrevsand Dodge
made a fjnual report advocating the con
solidation on precisely the terms stated
in the p-iper tugnnd January 14. The
question naturally urises whether this
WHS an unbiassed report or whether these
gentlemen were inllueneed by Mr. Gould ,
The extraordinary procto'lnig by which
the Denver Pacilio stock referred to In the
p.tpcr executed at Mr. Gould's house was
taken out of I hit property pledged as se
curity for the Karis-ts consolidated mort-
Cajre , Is top well known to need further
explanation. But th origin of nnd mo
tivu for that proceeding if madw perfectly
clunr by this p.\per. It was to bo von-
vert d into thn now stool : for the very
nurpoto of aflbrdlug a fund out of which
Mr.Uould could receive the price exacted
by him for his branch roads and their
"trimmings. "
1'crlwpa the most striking Illustration
of the unbounded ingenuity and fidelity
of resources of this man Is to bo found in
the fact that while ho was engineering to
brlntr about this consolidation , but on hi *
terms , ho had to manage all'airs that ovei y
one of the gentlemen present , uml who
signed this paper , was a part owner in
the very securities for which ho wad exacting -
acting the prices named above , and every
one of these men , in agreeing to Mr.
Gould's ' terms , received a personal pe
cuniary bonolit by sollincr tholr respective
shares of the St. Jo nnd Western bond ?
nnd stock , which Mr. Gould had previ
ously made over to them at the prices ho
had himself paid. The amount of money
so received by these gentlemen appears
from the statements made by Mr. Gould
to have been about $00,000 for each.
The Denver Pacific stock business was
completed January 21) ) , the whole scheme
was carried into oiled , and February 10
following , Mr. Golild received for bin
share of tlio securities represented by him
thn full amount thereof nt par in the stock
and bonds of the consolidated company.
Mr. Gould in tlio course of his examina
tion declared that when ho effected the
agreement of January 11 ho was not a
director of either of the companies ,
though lie declared that in his judgment
there would have been nothing improper
in it , oven if ho had boon a director. Ills
resignation was not n public act. It ap
pears to have been cflcct'jd January 10 ,
four days before the signing of the paper ,
and to hnvo been reported to the board
of directors January 24 , only a few hours
beforii the consummation of the consoli
dation , by the terms of * which Mr. Gould
again became a director. Tim object of
this resignation is ditlicult to understand.
The foregoing statement shows thu sub
stantial history of the consolidation between -
tweon tlio Kansas Pacilio and the Union
Paoilic. Jt may bo true that by reason of
the relations with thosu two roads
held each other , nnd of the great natural
resources of tlio part of tlio country
which they traverse , that the consolida
tion has been a benefit to them. Hut the
fact that men holding positions of honor
and trust in a great corporation II ko the
Union Pacitic should permit themselves
to vote into their own pockets the enor
mous sums which they themselves de
rived through the consolidation , is n matter -
tor perhaps of greater importance to Iho
community than the barren question oi
the pecuniary ell'cct upon the corpora
tions themselves.
nouLn's pint i HER WOKK.
Mr , Gould's dealings with the Union
Pacilio did not torminatu with the con
solidation. Ho then had on hand an en
terprise rolatintr to thn construction of
the Denver. South Park A Pacilic rail
way from Denver to Londvlllu , witti ex
tensions beyond that point , under the
construction contract he hml received the
bonds and stock at a priceuer mile whiuh
left such portion of the stock as was
issued to him comparatively without cost.
In January , 1881 , without any corporate
action of Union Pneillc ; board , thcro ap
pears on the accounts of the company
an entry by which 'M.'J'M shares of tlio
stock of this company tire charged to the
Union Pacilic at par. This cntlro con
sideration was paid to Mr. Gould in se
curities of the Union Paeilie.or In money ,
in the spring of 1881. Mr. Gould's lodger
account of the Kansas Pacific shows a
balance due him from January , 18SO , at
the time of the consolidation , and arising
out of the sale above referreil to. of
! ? 5,3'iM8.28. ) ) This balance was credited
to Mr , Gould on the books of the
consolidated company , and , together
with the price of the Denver iV South
Park road , was paid over to Mr , Gould
by the consolidated company either by
the is.sue ot stock oi ca-h payments.
Mr. Gould drew out of the Union Pa
cilic in 18HJJ. Ho re.-ili/.ud out of his con
nection with it the sums recapitulated be
low materially lessoning , of course , the
ability of the company to meet its obliga
tions to the government :
From the sale of securities illroctly
110111 himself to the company ,
which securities cost him Sl,0 ( > 0-
000 , he ifcolved § b,000,000 , la-ttlnn
apiolitof § 4,030,000
Kor 40,000 scares ol lull stoek of the
Kansas Pacilic , which cost him
S'JW.OOO , ho leccived 31,000,000 :
piotit 3,750,000
For his share of soborilinatcil In
comes In the pool ho received
Sl.w.o.eOO ; they cost him yjiw.000 ;
pioiit 1,300,000
And he took , without any apparent
.sanction of the bu.ud oi directors ,
52,000000 of thu Kansas Pacific
consolidated bonds ( \\hlrliho
himself xvas the trustee , ) at 75 ,
when tlio market price WHS W ,
thereby securing a prolit of -100,000
Total pioflts 50,450,000
Po/5/.oni s Complexion Powder pro
( luces a soft and be.uitiful skin. It com
bines every element of beauty and purity.
Sola by druggists.
Tlio Drink of ItnClods. .
The water the citi/ons of Omaha are
being indulged in just now is a vast im
provement on that which they have boon
accustomed to , and the promise of the
water works people his ; been abundantly
fulfilled. This welcome betterment is
wholly duo to the large now settling
basin llint has ju.-t been added to the
company's plant. A lii ! : 10porter was
shown samples of the water in to t vials ,
of twelve and twenty hours standing , ex
hibiting the dilt'ereiit degrees ot clear
ness and purity. Tim experiments al-
icady made show indubitably that a con
tinuous settling of twenty-four hours will
render this water as clear uml crystalline -
line us spiing water.
SKIN- BLOOD
l liinc * Prom IMmiilc * lo St-ro
ftilu fiu'cd by < ; iiliuiru. :
] * ( cIciitiBiiiK'llHiHklnmul fculixif Dlnllinirlriff
Humors , for nUnrlnir Jtcliliur , HurnliiK mid
liilliUiiiiiHtlon.fDi-ciirliiK Iho Hint Hyiin lomg or
IV/uiim , I'sorlntila , Milk Uiusi , M my I loud ,
> ciunilii , mid other lulmrltcd Hkln nnil Illoiol
DI'pNsm. I urn um tinKirnt 8kln Cure , and
CuricutiA Soil1 , tin ( iriiilMIo | hkln Ik-initlllur
cUoiii.illv , nn I iutu UIM KKSOI.-V i.\r , itic IIHW
lilund I'ui.ito. , Intuinull ) , niclnfuiialjle.
A COMI'I.RTK
I IIHMI eulTuro'lnlliiiT II I o wltlipkln iNnftcfiof )
Iltlui nt , Kimls nnil hum n vcr found purni
mint roliuf , until , liylliu ii'hkoc/l u litily ( i IrnU I
iiTd jmir valimtiln Ciinoou v lii ntKiu.f , I irttvu
Ihcm u ilinurouirli trill , iiilnu Mt Imttlos or thu
UrruiMiA llisui.x t.M-two IMIJOH nt ( JUTICUUA ,
iml teti'ii i-nkin of rimcuii v HIIAI' , undilic ro-
mlt wiii jii,1vlmt I Itn'l IICCTI tolrt II woulil bo
ncciupldtp curt1.
IIKAI ) , r\GB AND III IV HAW.
I commrncuil fi list ) your Ciitlcum Ittniuillcn
Bit July. Jly linml mm fucu ami MHIKI putts of
my U.dj worualmret mw. My head wux ror-
I'tnd with ( "c hK : i ml snics , n ml my HUTmlnir wim
Startii ! . 1 Inid trlixl uvmylliliur 1 Imd lii'iild of
In tlio oust Mini \ u t. JI > .BM was oonflldoiud
n M > r > liail one. Iliiuoimw not n gmrlkln ol
' > : in humor about luo.iuul nir catct l > considered
unr. < lt < riiii
Mill. S. li. WIIIITI.K , Doimtur , Mluh.
A nviu.suiin ( juiir.n.
I inuxr ounnd to ) ou the thaukx of ono of
HIT cjiiMoiinr" , who him linen cm id , hy ualii ?
tlio ( Jntlciirn rimudlloi , of 1111 old wire , cmid
liy 11 IOIIM upof ! ) hlukncjsor fiivnr nlidit yonrft
afr . llu wu so Imd ho wns fmirful ho ivonM
liuvti lo burn hU Ian umimtiitiiU.hut U Immir to
Diiy tin U rmw onliroly well Bound ub ilollur ,
lliinuiii | ctM nit ) to UHOhld immu , which I H. II.
( 'iifou , inuiL'liiint , < > r tills | ilauu ,
JOHN V. MINIMI , llruxtfint , tUlmboro.Tniui.
flinicimv Hr.MUMKS uro bold uvnrywh oro.
rlcu , CoriouiiA , M conUi IU.HH.VKNT , $ l.flO :
OAi',21 ranti. l'rt > | mruil liy tlio I'OTTVii D iii.'ct
M ) < 'iijin < ] .u. Co , l.'ciHon , MBS ) , fend lor
How TO (2iMiv HKIN
RDIIDC I'lmi.li'H . , Bkin lllciiil hf , and Iliitiy
U ( ill DO ; Ilumorit , cured by ( Jl'iiouiiA H > U'
HOW IT ACHES !
Muck Allies Itlilnuy I nine. | lf | > ,81 < !
nnil Client rnlnn , and nil gtialm und
\V , ikli i < riillctxd In nnu inlii lu by
tii ! < Cutluurii AnlUI'uIn I'iutlT At
druuk-IMa , li.'i corns , IIvo tor fi.'f )
1'otter Jiii'f ' ir.u ChuBlcul Co.Uo < lou.
