THE OMAHA' SUNDAY BEE: MARCH 14, 1900.
8JESC
No. 8
The Pre - Exposition Period.
" "'if
It might be supposed that consolidation of the three prin
cipal street railway systems of Omaha into one organization
simplified the problem of financing electrification and other im
provements. This was true only in a measure. Immediate
advantages were almost nullified by other conditions affecting
city, state and nation.
The eight years preceding the Trans-Mississippi Exposi
tion constituted the most disheartening period in the entire
street railway history of Omaha. A brief recital of general
facts will make this statement clear, even to those who cannot
verify it by personal knowledge.
This city, from the final collapse of the real estate boom
until the Trans-Mississippi year, was veritably in the "slough
of despond." Business slackened, factories closed down, firms
went bankrupt, people moved away, fortunes in land and other
property were lost, the unemployed grew great in numbers and
dire in necessity, and the incomes of those lucky enough to re
tain incomes were seriously diminished.
At first, sectional and local, the
depression soon paralyzed the en
tire country. The panic of 1893
is historic and its aftermath long
and dreary, ineffably impressed in
the memory of those who endured.
The days of the public soup houses
will be remembered long.
Hard times in Omaha beginning
fully three years before the crash,
of 1893, gave this city much more
than its full share of privation com
pared with the country as a whole.
Capital for any purpose was next to
impossible to obtain.
The Omaha Street Railway Co.
at this particular time, found itself
confronted with the problem of in
stalling an electric power system
over about thirty miles of line, and raising money to pay for
the power machinery, new cars, motors, trolley wire and poles,
new track and roadway, the necessary engineering expenses and
labor and the hundreds of incidentals involved in such a work.
Once having seen and used the electric cars the public was
satisfied with nothing less. The horse car, long in high dis
favor, became absolutely taboed, and the costly cable tramways
no longer received even a particle of admiration. The demand
for electrification of the entire system vvas so strong that the
management could not have resisted it, even had it so desired.
In the face of financial difficulties that seemed insurmount
able, the company succeeded in changing over all the horse
lines to electric lines within three years. The cables were taken
out in 1894 and replaced with trolleys, the greater part of the
cable investment having been made valueless in less than eight
years. Besides the loss of capital in the tramways, operation
never paid. There were times on the Harney line, for instance,
when every nickel collected represented an expenditure of 8 cts.
Directors then, as now, held frequent meetings. Stock, for
financing the improvements, could neither be sold or used for
. collateral in borrowing money. Bonds, however, were some
times marketable provided they were sold for much less
than their face value. Many urgent demands for funds were
met by making short time loans with bonds as security, but
there were occasions when this expedient failed and individual
stockholders and directors were compelled to guarantee loans
personally in order to secure money for the company. Credit
is due certain local banks which tided the Company over
many ah emergency.'
The revenues of the company suffered severely, not alone
from the hard times, but from the bicycle competition during
v - i
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.$
Grand Court Trans-Mississippi Exposition
the fad of 1893-96. The bicycles were used for several years
by men, women and children as a common mode of transpor
tation.. Demands of the city for paving between and outside
of the rails increased in volume and added materially to in
vestment costs.
It is almost needless to say that during this time there were
no profits, real or imaginary, in dividends or otherwise. Neither
was the company able to establish a depreciation fund to pay
for renewals. It was hard to make necessary betterments and
maintain the existing property.
Tracks and rails, suitable for the horse cars were unavail
able for the heavier electric cars, and a 45-pound girder rail,
bonded, was submitted. The horse cars were too frail to hold
the heavy motors and mechanism of the electric cars. A few
of the better ones were remodeled, but the remainder was
scrapped and sold for junk prices less than $10 a car. Some
of the cable trailers were converted into trolley cars, but the
grip cars could not be changed over because of their pecu
liar construction.
In addition to electrifying the
system, the company made material
extensions of lines, built the car
house at Twenty-Fourth street and
Ames Avenue, started to vestibule
all cars for the protection of motor
men, practically re-constructed the
entire track and roadway, and took
over, electrified and operated a
number of small suburban horse
car lines.-These lines included the
following: ,
Metropolitan Street Railway Company Incorpo
rated January 5, 1891, by John A. Creighton, John A.
McShane, W. A. Paxton, E. S. Rood, W. C. Albright,
E. A. Cudahy and T. J. Mahoney. The company built
a small line in South Omaha An old financial state
ment shows that from November 28, 1891, to September
30, 1892, the road lost $658 in operating expenses.
Metropolitan Cable Company of Omaha Organ
ized by Kansas City people in connection with a land company. It built the original line in Dun
dee and operated it by horses.
Benson and Halycon Heights Railway This was a horse car line giving a half hour service
between Forty-fifth and Grant streets and Benson. It was built by E. A. Benson as a private
venture in connection with his real estate interests and was operated at a loss from the start. When
the burden became too heavy for Mr. Benson he transferred the property to the Omaha Street Rail
way Company. It continued to be a money loser for a number of years.
The Southwestern Street Railway Company The company built a small horse car line on
"West Leavenworth street and operated it in connection with real estate interests. Like other out
lying lines it was unprofitable from the start.
During the period of financial depression, electrification, reconstruction
and absorption, a reasonably good service was given by the company over a
city which had spread out over an immense area considering the size of its
population.
The Trans-Mississippi Exposition, as is well known, was a great success
and restored Omaha to its progressive course. The Omaha Street Railway
Company contributed its full share towards this success in handling the people
to and from the Exposition and about the city, besides subscribing liberally to
the enterprise.
By the exertion of determination and heavy expenditures the company
placed itself in good condition for transporting the crowds which visited
Omaha in 1898. The principal routes used to haul passengers to and from
the Exposition were by way of North Twenty-fourth Street and through
Sherman Avenue. These lines were looped in the business district and an
excellent service provided. The Dodge line cars were run direct from the
railroad stations to the grounds.
It was the general verdict that the company acquitted itself creditably
. during the Exposition and assisted materially in the convenience and comfort
of visitors, and also to give them a good impression of the city.
The revenue of the company in 1898 was more than twice as great as
that of the preceding year. For the first time in the local street railway busi
ness 30 years there was a surplus in the treasury greater than the immediate
financial demands. (
G. W. WATTLES, President,
Omaha and Council Bluffs Street Railway Co.
The Installment Next Sunday Will Outline Briefly the Development up to the 'Present.)