Till: OMAHA Sf.NDAV IIKK: MAlit'H 7. HW.
No. 7
Consolidation and Electrification
o
At the beginning of 1889 traction conditions in Omaha
were about as chaotic as they well could be. The Omaha
Horse Railway Company was operating 25 miles of horse
railway; the Omaha Cable Tramway Company about 6 miles
of double track cable tramway, and the Omaha Motor Rail
way Company was constructing an extensive, double track,
electric road covering 10 miles.
All three were militant. The Horse Railway declared
it would install both electric and cable lines. The Cable
Company announced its intention of building additional
lines and making itself a more formidable competitor. Both
concerns watched the construction of the electric lines with
keen apprehension.
The excess expenditure in investment and operation,
and the inconvenience and expense of double fares to the
people in competing street railways Were soon apparent to
all concerned. Competition ) between two lines was bad
enough; among three it would be intolerable.
There were strong men in both the' Horse and Cable
roads and each group saw the necessity of (Consolidation.
February 12, 1889, the Legislature passed a law permitting
the merger, which formally took place April 1, 1889. Both
companies' were incorporated in a new organization The
Omaha Street Railway Company on about equal terms.
The new directorate was made up of men on the boards
of old companies, as follows:
Frank Murphy
S. R. Johnson
W. W. Marsh
W. A. Smith
W. V. Morse
C. B. Rustin
Guy C. Barton
A. S. Paddock
B. F, Smith
Mr. Murphy was president, Mr. Johnson .vice-president,
Mr. Marsh treasurer, Mr. D. H. Goodrich secretary, Mr.
W. A. Smith general manager and Mr. F. A. Tucker gen
eral superintendent. v
The cable and horse railways henceforth were operated
as one system, transfers being exchanged, and the combined
efforts of the two former systems exerted towards improving
the service.
At the first meeting of the directors of the Omaha Street
Railway Company, April 3, 1889, the following resolution,
introduced by W. V. Morse and seconded by W. W.
Marsh, was adopted:
"Resolved, That the president and vice-president be instructed
"and requested to investigate the matter of electric street railways
"and to employ men and means to construct and equip an electric
"line from Hanscom Park to Leavenworth Street and on Leavenworth
"Street cast to Sixteenth; north on Sixteenth to Cuming; west on
"Cuming to Twenty-fourth; north on Twenty-fourth to point near
"what is known as the city limits."
At the same meeting Superintendent Tucker was in
structed to obtain "figures, estimates and drawings" for a
"complete cable line on South Twentieth Street from Harney
to Syndicate Park."
The new company thus affirmed its intention of follow
ing close in the wake of invention and giving battle to the
Motor Railway. The contest Between the two organizations
for certain privileges was intense, particularly for trackage
rights on the South Eleventh Street viaduct, on Lake Street
and other streets. Officers and employes of one company
were, shadowed at night by men of the other, lest surprises
might be sprung. The controversies were taken into the
courts delaying construction and hampering financing. In
general the public was painfully aware that competition ex
isted between the two organizations.
In May the Omaha Street Railway Company decided to
make a contract with the Sprague Electric Railway and Motor
Company for its system of power. A site for a power house
was bought at Nineteenth and Nicholas Streets, and contracts
awarded for engines, generators, cars and material for electri
fication. Letting contracts was one thing; paying for the goods
was another. When the Street Railway Company attempted to
market a 5 mortgage bond issue in New York on a90-cent
basis, it failed to sell a single security. Much more, favorable
terms did not tempt investors. President Murphy made spe
cial trips to New York in the effort to dispose of the bonds
without success.
. By midsummer, 1889, the directors were thoroughly dis
heartened, as is indicated clearly by the records. At one time
it was proposed to sell the bonds prorata to the stockholders
on a 60-cent basis, but this plan did not work and- on August
26th the president was authorized to borrow $400,000 "On such
terms as he could obtain and deposit bonds as collateral." ,
A contributing cause of the failure to sell bonds was, the
waning of the "boom," but the principal cause was the fact
that the Street Railway Company was not alone in the field
and was mdnaced by the competition of the Motor Railway.
Therefore, securities went begging.
Meanwhile the Motor Railway Company, also, had criti
cal financial problems to solve. Long before the road was put
in operation the public anticipated its consolidation with the
Street Railway, so logical was this course. About the time
electric service was first offered to the public, negotiations
were held between the two managements.
The result was the purchase of the t)maha Motor Railway-by
the Omaha Street Railway Company October 15, 1889.
The owners of the Motor Railway had made extniordi
jiary effort and sacrifices to create the property had taken
great risks in doing so and they were in position to drive a
good bargain.. They secured in the transaction a large profit
in stock, which, however, was of little value for years.
Prior to the purchase the Street Railway Company had
proceeded too far with electrification to draw back. It built
the brick power house at Nineteenth and Nicholas Streets,
electrified the Hanscom Park and North Twenty-fourth St.
line, and within a short time, placed in use its first installment
of electric cars, consisting of 20 motor cars and 10 trailers.
The power house was equipped with two Westinghouse en
gines of 250 horse power each, belt connected to Edison
generators.
Under the terms of purchase Dr. Mercer and J. J. Brown
became directors in the Street Railway Company. The
motor road's property was turned over November 2 and
unified operation, which has continued to the present day,
began November 4, 1889.
Competition caused the erection and equipment of two ex
pensive electric power houses and one cable power house where
there might have been but one, and duplication in many miles of
track, all of which could have been avoided had the people prefer
red to deal with and encourage the existing company, instead of
granting franchises to new organizations and inviting competition.
Fortunately the power systems of the two electric estab
lishments were such as could be worked together. For a
period of years the Nineteenth Street house was maintained,
as the chief power source and the-Twenty-second Street sta
tion used as a reserve.
With unification the immediate financial problems be
came somewhat easier despite the deflated "boom" and
approaching hard times. Electrification of the old horse
railway lines, therefore, proceeded swiftly.
: G. W. WATTLES, President,
Omaha and Council Bluffs Street Railway Co.
Next Sundays Installment Will Tell "Tk IWh'cnwiUh VnW.')
