Omaha Daily Bee Newspaper, July 6, 1887, Page 4

4 THE DAILY BEE. PUBLISHED EVERY MORNING. TERMS OF SUBSCRIPTION | fly (Morniag Rdition) including Sunday ke, One Yosr. For Bix Months. For Throa Menths . The Omaha Sunday [k, mailed to any addross, Your. . AWA OFPicH, No. 014 AND 918 FARNAM STREFY. EW YORK OFFIOR, ROOM &, TRUAUNE BUILDING. ABEINGTON UFFICK, NO. 614 FOURTERNTH STREL, CORREAPONDENCE: Al sommunioations relating to news and odi- torisl matter shouid be adrressed to the Evt 201 OF TME Ban. BOSINGAS LETTERSE AN buriness lotters and romittances should be Addressed to Tum PUBLISHING COMPANY, OMARA. Drafts, checks and postofiice orders 0 bo made payable Lo the order of theeompany, THE BEE PUBLISHING COMPANY, PROPRIETORS, E. ROSEWATER, EprTon. THE DAILY BER. Sworn Statement of Utrcualation, Btate of Nebrasks, }s. s County of Douglas. . B. Tzschuck, secretary of The Bee Publishing Sompany, does solemnly swear that the actual circuiation of the Daily Bee Ln;'the week ending July 1, 1857, was as nesda; Thursday, June 50 . Friday, July 1 AVerare.....oooiie.t Gro, B. TzscHUCK. Sworn to and subseribed in my presence this 2d day of July, A. D, 1887, N. P. Frir, [SEAL.] Notary Public. Btate of Nebraska, | . Douglas County. | Geo. B. Tzschuck, belng first duly sworn, deposes and says that he is secretary of The Bee Publishing company, that the actual average daily circulation of the Daily Bee for the month™ of July, 1886, 12314 coples; for August, 1598, 12, les; for Septem , 13,080 coples; for October, 12,09 coples; for November, 1580, coples; for December, 1886, 13,237 o January 1887, 16,286 eoples; for 1887, 14,195 coples; for March. ies ‘ebruary, 14, ‘for April, 1857, 14,316 copies: for May, coples: 1m4‘2‘:1 coples; coplea. for June 1887, 14,147 Gro. B. TZ8CHUCK, Subseribed and sworn to before me this 1st day ot July A, D., 1857, [SEAL.| N. P. Frm, Notary Public. Tur breach of promino business is being reduced to a fine art Rev. Joun rER, of Richmond, is going to Europe. He will probably join Mr. Dana, and together they will con- vince the Englishmen that the sun do move. Tne Salvation army is having trouble in Kansas City, and the greenbackers are dissatisfied in fowa. The prospect for a good crop is the only thing that saves the country. —_— A7r Ouakland yesterday hail stones tell 80 much larger than the traditional hen’s ogg, that such a comparison is not in order. Our informant te'ls us they were ten and a half inches in circumference. NEW York complains of being tax- ridden. If some of her hoodle alder- men had been rail-ridden and sent on a freo excursion to Sing-Sing years ago, there would beno room for such a com- plaint. * that 1t will continue three months. Georgia has been afflicted with grasshop- pers, but this last calanuty stands alone, uncqualled even by the ravages of na- ture. — Jonn M. TaursToN brought back his Fourth of July oration with his fishing tackle and a job lot of wall-eyed piko, caught by Minnesota fishermen while John was on the look-out for the soar- gent-at-arms of the investigating com- mission. Poor Jim Dawes! There are none so poor to do him reverence. While every- body round about Crete was called out by the Chautauqua assembly to fire off an oratorical Fourth of July rockot, his ox-excellency was nover as much as mentioned. Ropublies are proverbally ungrateful, Tue Pacifi ing commission has been at Lincoln, and was entertained with that same old chestnut concerning California sugar being shipped to Omaha and thon back to Lincoln. This sugar story delivered in job lots of ten car- loads each, would go down. But when it comes in broken packages, 1t would stick even in tho throat of ex-Railway Commissioner Gere. Tue fact can not be successfully dis- vuted that,in the estimation of the royalty of England Mr. James G. Blaine has not a8 yet reached the high social altitude oc- cupied by our own distinguished eitizen, Colonel William Freeman Cody. It must nlso be remombered that the only public office Colonel Cody ever held was that of member of the Nebraska legislature and justice of the peace. Queer people that royal family. WaEN Governor Hill, of New York, appointed Colonel Fred Grant one of the quarantine commissioners for the city of Now York the republicau senate refused to confirm the appomtment. The repub- Lican leaders seem to realize that it was A wistake and may possibly affect them at the next clection. It is now proposed to nominate young Grant for secretary of state. The name of Grant is still worth several thousand votes in the em- pire state IN the event of the nomination and election of Allen G. ‘Ihurman as gover- nor of Ohio, if President Cleveland will put his ear to the ground about the middle of next Novembuor, he will hear democratic yell for the “old Roman" coming 1n fronr all parts of the country that may cause lim to decide positively about giving up the occupancy of the white house on the third of March. ‘I'nere may be a presidential candidate yet in that eld red bandana. THERE {8 only one way to cheek job- bery nnd boodling when municipal legis- lators bind themselvey together with public plunderers snd | administrative oflicers Iack the nerv. to interpose their autherity against jobbery, and that is by invoking the aid of the courts. It was very effective in defeatng the Holly watarworks and sandstone jobbers and affords the only safeguard against the boodle schewes of which that fraudulent Rounds & Taylor cootract is merely a ‘orerunner. The Vaoant Judgeship. 1f the reports from Washington ean be relied npon, the president has indioated his desire to appoint Secretary Lamar to & justiceship on the supreme bench, suc- ceeding the late Justico Woods. While it is a well established fact that Secretary Lamar 18 an able and brainey man, he is not the proper person for the place. In early life Mr, Lamar won some distinet- ion at the bar. What training has he had to fit him for a justiceship upon the highest judicial tribunal in the world? Mr. Lamar has not ben a practicing law- yer for almost twenty years. At the close of the war he was among the first of those whose fortunes had been cast with the confederacy to be elected to congress. From that day until the present he has constantly been a servant of the people, serving in the house of repres- entatives for 8 number of years, followed by his elevation to the United States senate where he remained until sclected by President Cleveland as a member of his palitical household. It is freely ad- mitted that Mr. Lamar is a student, but s studies are no part of the law, nor do they have any bearing upon civil juris- prudence. He 1s a student of literature, but not of law. There is still another more potent rea- son why the president should not make what we belicve would be an unwise selection in the person of the secretary of the interior. Mr. Lamar is not a man of ideas that can properly be termed prac- tical. He is a theorist, and full of dreams. In addition to this he1s a slave to the use of morphine, which renders him for days, and sometimes weeks ncapacitated for bvsiness, At Washington complaint is general that important business of the interior department bas for weeks gone unattended because of the sceretary's unfortunate habit, When Mr. Lamar was an “inmate” of the senate he was well known as the friend of railroads and the advisor for corporations. In other words, **a corpo- ration senator.” It the people of the country could be consuited, Mr. Lamar would not be made the successor of the late Justice Woods, The supreme court bemng the highest tribunal, and the court of the last resort, its bench should not be loaded down with paid attorneys from railroad corporations. ff the president 1s sincere in his expressed wish to sclect a person from the south, and a democrat, he can find any quantity of material; men who will wear the judieial robes with fidelity to the peopie, and honor te the position. Mr. J. Randolph Tucker, of Virginia, who served with distinction at the head of judiciary committee of the house for a number of rs, would be an excellent man for the placo. He is not a politi- cian, Heisa lawyer and one of the most learned at the south. He1s an hon- est man, and a man identified with the people, who was never the personal rep- resontative in congress of railroads or other corporations. 1f Scoretary Lamar is to be continued in the public service let him remain where he is. Lessons of a Bank Failure, The developments connected with the failure of the Fidelity bank of Cincin- natt are instructive and the lessons they impart ought not to be lost. They may indeed not be entirely new, 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 sufliclently careful and thorough. Take the example of the broken bank, which was literally gutted by the wheat speculators. A short time before its collapse it was visited by a bank aminer who found that its books show it to be in possession of a million dollars. But when he sought to ascertain the whereabouts of this sum he was simply given a pencil memoranda of amounts aggregating about a million dollars due the bank by the partias who it trans- pired a few days later had plun- dered the institutions, and the examiner scems to have been satisfied with this showing. He was not required to be. “The law gives these oflicials ample power minations as thorough asthey shall deem necessury. But the truth is thoy very rarely comply with the plain intent of the law. Some years azo an eastern bank was robbed by its cash- ier of several hundred thousand doila When he saw that exposure was inoevit- able he committed suicide, and in a lettor he left to the bank officers he samd there could be nothing more simple than to fool # bank examiner. Some of th oflicials are not quaiitied for the duti while most of them are content to per- form so much of their duties as they do understand in a mere perfunctory way Sharing perhaps in the general con denco that bank directors are keeping a vigilant watch and ward over the business of thoir banks down to the smallest detail, and doubtless - fluenced also by the fecling that a thorough investigation to confirm tho stutements of oflicials imght be offensive, the examiners are too often satisfied with the figures given them and a merely su- perticial examination. It should be un- necessary to say that the business of the examiner does not warrant him in giving uny consideration to his own or the pop- ular contidence, or in yielding to any sort of sentiment. The law exvects him to yerify every statement made to him, to see that the books accurately repre- sent the actual condition of the bank, and toreport the results of his examination as facts of his own knowledge. Other- wise the system can be of no real value as u trustworshy statement of the condi- tion of a bank, and might as well be abandoned. ‘The comptroller of the currency, who has been somewhat severely criticised in connéction with the Fidelity failure, but who probably cannot jusily be charged with being at fault, practieslly adimits that the local government examiuners cannot be relied upon to keep everything in proper condition, and he will review in his next report the recommendation made in that of Iast year, that besides the local examiners there be appointed some halt a dozen supervising examiners to be paid by the government, and not by the banks. The daty of these would be 1o review the work of the local ex- aminers, There can be mo doubt that such » plan would be likely to secure more satisfactory results than are ob- taned at present. It would certainly insure more careful investigation on the part of the local examiners, and it the supervising examiners were thor- oughly competeni men, wholly free from bank influence, danger from the shortcomings of the former, by rea- son of incompetence or any other cause, would be greatly reduced, It is very THE OMAHA DAILY BEE: WEDNESDAY. JULY 6. 188% certain that public faith in bank exam- inations as they are believed to be con- ducted at present is not very strong, and something needs to be done to restore it. The plan of the comptroller does not ap- pear to be open to any serious objec- tions. It would create a foew more gov- ernment oflicials and increase by a few thousand dollars the annual expendi- tures, but the people will not find fault with this if thereby the banks of the country shall be rendered more secure against such rascals as Harper and his fellow thieves. Another lesson of this failure is that the government should mnot be too ready to give its endorsement to new banks by making them depositories. Senator Sherman has expressed the opinion that no bank, such as the Fidelity was, should be made a government de- pository. The effect of such an indorse- ment by the government is to give a new bank a claim to public confidence which it has not earned by the only method that can establish and entitle it to confidence —n prolonged and successful business carcer. Finaliy, this failure suggests that the national bank act must be 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 unscrupulovs rascal who, like Harper, can find the means to start a bank. Rallway Extension. Since the first day of last January there has been 38,754 miles of railroad constructed in thirty-seven states and tertitories. In the list of states Nebraska stands fourth, the number of miles being constructed, 331. Kansas heads the list with a new mileage of 692 miles, This mileage is the work of seventeen roads while in this state it is confined to five. The next highest 18 Texas where cight roads have been constructed with 489 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 five ronds, 144 miles. Of the southern states Alabama, Georgia and Florida muake the best showing. The following table will show a summary of track lay- ing 1n each of the twenty yeara preceding the present: Year. Miles. 2,980 by first six months of 1887 shows nearly so great mileage as that built in 1884, and cousiderable more than that in 1885, and that it is greater than the mileage actu- ally added 1n about one-half of the last twenty years, The record of 1886 was surpassed only by that of 1882, but that of the present year secms to be in a f: way to outdo its immediate predecessors, and perhaps to exceed that of any previous year. It can be seen that In 1882 the new mileage of railways was greater than that of any year named in the table, and it was also greater than that of any year during the history of railroad building. The muleage above named does not in- clude the s Al hundred miles of sid- ings, but is contined to new main line tracks, ¥ Cable adyices from Rome announce that Archbishop Corrigan, of New 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 first instance in a number of years where excommunication has gone forth with such papal demonstra- tion to a member of the priesthood mn the United States. The original idea and custom ot excommunication in the church is not now in use, and is in fact obsolel There was a time when the person so excommunicated was deprived of all social and personal recognition from members of the chureh upon pen alty of thoir being also excommunicated. But such is not the case now. Excom- munication wus then incurred by thos who dealt with one who had been excom- municated “‘by name,” but Pope Pius IX, deliberately dropped this inhibition from the law wiel enumerating the censures incurred according to law. All canon- ists since 1669 have been taught that this censure has lately ceased, and in 1883 Pope Leo XIIL approved the public declaration of the congregation of the sacred inquisition that this censure as established by law had positively ceased to exis1. Now only the rites of the church, and the participation in any of the sacred du- ties are forbidden the person excommu- nieated. He can neither preach nor say the mass nor extend the sacrament, Neither can any member of the church engage with the excommunicant in such services. Boyond this the church, under the law as gived by Pope Leo XIIL, has no jurisdiction and could not take cog- nizance of any personal or social rela: tion. The person excommunicated is not supposed to either preach or engage whatsoever in any of the praotices of the chureh; that he will not be deprived of attending the services, or of indulging in such personal worship us he may elect. He can come to Intogthe church and par- nt prayer, but he cannot lift his voice s one of the church, WnEN Mayor Broatch approved the Rounds & Taylor printing contract with- out reading it, and without exacting an officral certificate from the city attorney that the contract was legally drawn, he was guilty of gross neghgence, to suy the least. But it was in power to ractify this blunder. The comtract which he had signed bad te go back to the council for its final approval. When he ascertained that the contract was not drawn in ac- cordance with the bid and learned through the city clerk that Cadet Taylor had withdrawn two of his bids which were evidently lower than the one on which the contract was awarded, it was his nuanifest duty to rescind his approval and send the contract back to the coun- cil with a message calling attention to the discrepancy between the bid and con- tract as drawn, But Mayor Broatck lacks stamina, He does not want to incur the ill will of the Rounds & Taylor gang of bulldozers and jobbers. He admits that the contract was procured by imposture and sharp practice, but he has not back bone enough to stand between the job- bers and taxpayers by exercising his un- questioned right undo the fraud to which he unwittijgly gave his sanction. Mayor Broatch nfi:ml serve two masters, He cannot serve the taxpayers and ac- commodate jobbers and boollers at the same time, The M. 1N Cheyenne Leader, The Umaha Ber is sweet sixteen. Started asa gratuitously distributed handbill it is now one of the most successful newspapers in the western countr) e Hale and Rearty. Butler County Press, The Omaha BEr celebrated its sixteenth birthday last week, 1t looks hale and hearty —Is neither “foundered,” sweenyed nor knee- sprung,—eats well, and is liable to flourish as the newsiest paper in tho state for many years. A good many people dislike Rose- water, but all like his paper. Success to the Bek. —ien Omaha as a Stock Market. York Times. As we have often remarked, home markets e the surest and the mnost enduring solu- tion of the transportation question for this country. 1t Omaha becomes a great me- tropolis, which It is almost sure to do, and other large cities build up in the state, a large amount of the product of the state will be consumed at home, and will comnand & much better price. lut more important still are the packing interests of our state, which are rapidly developing, Says the Omaha BER: “The business done atthe South Omaha stoek yards is rapidly assuming mammoth proportions. On Tuesday, 8,000 hogs were received, and Monday there were 6,500, All were ~old here. Besides the hogs, there are from 600 to 800 head of cattle sold per day. The Union stock yards bank transactions on Wednesday, amounted to over $500,000, These figures are evidence of the growing im- portance of Omaha as a live-stock market. ———— STATE AND TERRITORY, Nebraska Jottings. ‘The town cow in Plattsmouth must go —to the pound or pasture. M The horsethief is no longer abroad in Dundy county. He 18 1n jail. ‘I'ne_new Congregational church at Rushville wiil be dedicated noxt Sunday. Fremont intimates that Hastings is a bag of wind with the clapper-yalve wide open. ‘The Fremont postofice shows an in- crease of $1,500 in carnings the past fiscal year. Fremonters will be content if the Elk- horn Valley railroad shops are located there. Subscriber, Valiey county: General Drum first suggested the return of the rebel flags. The salvation lientenant in Beutrice, who shouted ‘fire” until his lungs quatled, was accommodated by a hose company and put out. Plattsmouth’s second cannery, that of Carruth & 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 Bierbower continues piling up fat fees in the federal building renely n- different to the clamorous lamentations f the faithful. ‘The once proud bird of liberty is laid up in a cyclone cave from the efleets of the assault of Colby, Howe and Cha; Even the dashing Colonel Sabin refuse: to write a mutual policy on his life. H. P. Alfoth, a Wymore brewer, 1s ac- d ‘of balancing his accounts by cre- ¢ them together with his brewery. He is meditating on ihe smooth side of a plank in jail. ; Sevel 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 sufliciently commodious to tal in all male residents und bachelors. Tooley, of Shelton, C wedding last jOyous occasion was remembered by friends who presented the couple with $25 in gold, a life se of a town lot and an order for the lum- ber to build a home. The Fremont stock v: placed orders for mate for the " con- struction ot the pens, a railroad and a olant will cover thirty-five acres and will accommodate 4,000 head of cattle and 4,000 head of hogs. Phe south rds company has rocket fi : he unfu s-tinted gossip trap 2 thusiasm of burning pow- r. A dismsatled rocket spied the gaping depths and swept away several yards of the outer reep, It couldn’t miss it. The Beatrice Democrat has made the cheering discovery that the Bee ‘s more guarded 1n its language in refer- ence to the Mutual insurance compx\n{. ‘I'ne Democrat would also discover, if it shot a glance beyond the boundary of the town, that the company has modiied its patent gouging process to the extent of taking in a num- ber of ‘“‘prominent citizens,” for adver- tising purposes, on the ground tloor. Is the Democrat on the hst? lowa Items, ‘T'he normal school builaing at Algona is about comploted. Free mail delivery has been inaugurated m Clinton and Muscatine. Seventy-five barks were seuttled by whe police of Cedar Rupijls last weck State Mine In: r Stout makes an enthusiasiic repoMibn the natural gas ithrie @u‘(y. Carroll is «lmnql large amount of building this years Among the improve- ments is a $10,000 Eolirt-house. Davenport turners laid the corner-stone for their new hall .o Sunday. A large number of visiting yiembers of the order from neighboring piaces were present. Miss Anna Schtsimm, of Burlington, went 1o her wind listen to the music of a serenade. S®M leancd too heavily against the blinds, ich parted and the young lady fell to h§ ground. The local Teport says sho wasd‘ 'much shocked by the fall.’” Daxota The cowboy amdsés himself in Dead- 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.”’ Delegates are being chosen to the di- vision statehood convention, to meet at Huron on the 13th inst. Lawrence county has eunough saloons to yield an annual revenue of $40,000 under the new license law. All Souls church, to be erected this year in Sioux Falls, will be 48 by 62 fect. The contract for the mason work has been let. Sim Nichols, n barber in Carbonate Camp, Black Hills, abused bhis young wife, who eloped with him a year 0, and the boys tarred and feathered him for it The young woman has gone to her parents in Central City. RACY RAILROAD ROMANCE. How Jay Gould Frightened a Lot of Boston Capitalis GOULD'S GORGEOUS GRIT An Interesting Agreement—A Man ‘Who Feared to Be Known in the Transactions—An Enter- taining Sketch. New York World: Jay Gould origin- ally became interested in Union Pacitic in 1874, having, as he states,learned from Horace F. Clarke, one of Commodore Vanderbilt's sons-in-law, that there seemed great possibilities for the property in the future. According to his own ac- count, in 1874 he bought 100,000 shares at about 80. Shortly afterwards Mr. Clarke died. Mr. Gould entered actively into the management, as is his custom with enterprises in which he embarks. He guve a great deal of time to it, and assisted the road finangially for some years, so that at the close of 1876-7 he held as much as 200,000 shares out of a total of about 860,000. The relations at this time existing hetween the Kansas Pacific and the Union Pacific were pe- cullar. The Kansas Pacific starts from Kansas City and has a general westerly direction parallel with the Union Pacitie, about two hundred miles south of going through a region of coun try where the elevation is mnot so great, and having a great many naturs| advantages. TReroad has been butchered, almost, so far as finances were concerned. It was subsidized by the government for the first 304 miles west of Kansas City, and from that point towards the west it had been built at haphazard, all the bonds and securities that could be put upon it in any shape having been issued to directors and to other parties whose position enabled them to get advantages out of the road; 1875-6 the Kunsas Pacitic wasa pitiabie spectacle. As Mr. Villard him- self described it in his evidence, it was “‘a forlorn concern.” Kvery mortguge was in defauit. and mortgages which had been made to fund coupons were in thoir turn defulated. The rond wus poorl constructed, 1ts business was very smai and it was in the last gasp of bankruptoy. ‘The construction of the read carried it as far west as Denver and from Denver 10 Cheyenne, which is nearly north, a distance of a little more than three hun- dred miles, there had been constructod what was known as the Denver Pacitic, as a connecting link. THE KANSAS PACIFIC POOL. The relations between these two_roads had been very hostile, the Kansas Pacific people trying to campel the Union Pa- citic people Lo prorate, so as to cnable them to share in such transcontinental business as they might bring ta Chey- enne and there deliver to the Union Pa cific. This wus resisted, and the rela- tions betweon the two companies led to anumber of similar contests m regard to traflic betwcen Donver and Cheyenne, the Union Pacitic having built a rival called the Colorado Central, snmplf; in a spirit of hostility to the Kansas Pacitic rond. About tie year 1877 Mr. Gould be- gan to take a lively interest 1n the secur- of the Kansas Pacitic. A scheme was formed to gather all the hetero- geneous mass of bonds, coupons, stock obligetions and floating debt of the Kansa ific, and convert it into a sin- gle s tv, the terms of con m - b it vu\.lm by commutation r: u s known as the Kansas Pa- pool. Mr. Gould was the most active member, and his interest was rep- rescnted by over $2,000,000 of what wers known as subordinated income bonds, 1 by him shorty before 1878, at & probably seding 10 cents on follar. The other active interest in this pool was known as the St. Louis This party consisted largely of s ot the Kansas Pacitic roud, and their interest was largely in the Kansas Puacitie stock. The g al feature of the plan was that the f mortgage on the road was not to be disturbed. The United States lien was also untouched,the two amount- ing to about 12,000,000, The succeeding bonds were scaled at 50 cents on the dol- inr, the subordinated incomes held by Mr. Gould at 30 cents. and the stock at 12 nts. The whole s of the securi- ties thus to be converted footed up about #17,000,000. 'The intendea result of the conversion was to transform the ties into ahout $5,000,000 of the ne curities. In the spring of 187 bought out all of the St. Lows peopie. The evidence taken before the commis- sioners contains tement of the terms of this purch: The vrincipal feature of his purchase was the stock of the Ka sas Pacific road, of which he had bought over 100,000 shares at 6} per cent. In the early spring of 18 Gould had ac- quired an intere cding 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 smuller amounts. TAKING IN THE ST. JO AND WESTERN. The St, Jo & Western is a railroad tending from St. Joseph on the Missouri river to Grand 1lsland, & point on the Union Pacitic distant about two hundred miles. ' Irond, in 1874-5, had pas throvgh ncial experience if possi- b trous than the Kansas Pa- The road was poorly built,scantil equipped,and its securities scarcely wortl iving rway. From the evidence tuken efore the commissioners 1t appears that m 1874-5 the first mortgage bonds sold as low as 6, and the stock and sub: securities came to be known as mings,”’ and passed without additional consideration 1n all transactions relating to bonds. In the springof 1879 M uld bought a controlling interest in this com- ny, securing btetween a million and a half and two millions of the bonds at 40, and abvout 15,000 shares of stock passed with the bonds, It apps the evidence taken before sioners th the securities pur- chased by Mr. Gould from time to time he allotted to those interested with him in the management of the Union Pacific a moderate proportion of his haldings at the price paid by him, su that in the sum- mer ot 1879 substantially all of the di- rectors of the Union Pacific were inter- ested as he was, but in much smaller amounts, 1n the stock of the Kansi 1= cifie, 1n its bonds, in the bonds of the St. Jo & Western and its stock. In the fall of 1879 the scheme for the consolidation of the Kunsas Pacitic witn Union Pacitie, which before thut time had been mere discnssion, under the influence of Mr. Gould took serious and tangible shape. A letter was written, signed by Gould, Dillon, Sage, Ames, Dexter and Atkins, addressed to Solon Humphreys and G. M. Dodge, requesting thom to ¢x- amine into the affairs of the two eom- panies and report suitable terms of con- solidation. This letter was dated October 23,1879, Up to this moment Mr. Gould had been an advocate of consolidation, but it was to be consolidation as b wished it. It appears from the evidene of the Boston directors that he and the Union Pacitic people and the Boston di rectors could not come to terms. Gould asked more then they were willing to concede, None of the witnesses were able to recollect the exact point of difler- except that Mr. Gould asked too h, and the negotiations werc broken . When, a few months [atter, the ne- Kotiations were carried to & successful conelusion, nono of thesa same witnosses could remember any concession made by Gould. They said he was ''m ciliatory’’ and “‘more ‘‘pliant,” but none of them could recall any change n the terms of consolidation, The essential money feature in the consohdation was, to Mr. Gould, thke Kansas Pacific stock, He had bought it at 6}, and he wished 1t recognized 1 the consolidated company at par. It 1sclear that the failure to agree, which oceurred in October, was due to the fact that the Boston directors of the Union Pacific de- clined to permit the Kansas Pacifio stock to be recognized at par. The Union Pa- cific for years had been paying dividends; the Kansas Pacitic had barely emerged from bankruptey, and the prices to which its securities had risen were simply the result of the accumulated purchases of Mr. Gould and his associstes. TIR LITTLE JOKER IN THE GAME. The failure ot this negotiation led to S0me consequences or groat importance. The Missouri Paciic, 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 Pacific. 'I'he Union Pacific Central branch and the Kunsas Central were partially constructed railroads be- tween the Kansas Pacific and the Union Pacitic, and extending westward. 1o 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 Pacific stock, and that the success of his overations de- pended upon his securing for that stock a_ guaranty of recognition that would give it an assured and permanent value. It appears from the evidence that im- mediately after the failure of the Octo- ber negotiation Mr. Gould went west, November 7, and apparently withont preliminary negotiation he bought from Governor Ames, of Massachusetts, a con- trolling terest in the Union Pacitic Cen- tral branch, paying therefore an average prices of ¥830 a share. It appears from Governor Ames’ testimony that the stock of this road, barely a year before that time had sold at 10, 15and 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 (iarrison, paying him for stock 750 per cent. Heo also bought the Kansas Central, paying for a control of the bonds and stock $479,000. Immediately after th transactions were consummated It bacame & public report that the Missouri Pacitic was to be extended through the Kansas Pacific, the Central branch and the Kansas Contral beyond Denver, through Loveland Pass to Ugden, and thence to the Pacitic ocean. The eftect of this information upon the Boston dicectors is graphically described by Governor Ames, He declares that he never saw & more frightoned people than these Boston directors when they heard that Gould was going to the Pacific ocean with the Missouri und Kansas Pacific railways. THE BOSTONTANS BADLY SCARET These Boston gentlemen at once began eries of pilgrimages to this city. Gould d absolute control of the situation. He wanted conselidation, but consolida tion according to hisown notions. Ifthe Boston people would accept 1t that way y could have it; if not, they could the competition of the Missouri Pa- stem extended to the Pacific ocean, »uld himself, when asked what the effect of this competition would have n on the Union Pacifie, declared im pressively, "It would have destroyed it."’ The negotiations between the Boston di- rectors and Mr. Gould culminated Js ary 14, 1830, at a meeting held at his dence in this city, where, as he declares, the Boston directors would not let him leave the room until he signed a paper agreeing that the consolidation should go through, There were present beside Gould at this interview Russell Sage, Sid ney Dillon, Frederick L, Ames, B. H. Baker, I, G. Dexter and Eli Atkins. The outcome was that Mr. Dexter drew up on a sheet of letter paper the follow- ing agreement, which all present signed: RKANSAS PACIFIC RAILWAY COMPANY, | T BroADWAY, NEW Yous, Jan. 14, 1850, { Memorandum for terms ol eoment for consolidation of Union Pacllic with Kansas Pacific, in which the Denver I & Western and Union Pacilic, vision, are included, all necessary pay an 1508 Pacific, w ets and properties and | par of their respe 0 and $10,000,000, ital of the Denyer Pacilic, ital of the Unioii . as the bew line W, ‘The Denver c capital, now an asset of the Kansas Pacilie, to he sed after con- version into railway for sl 3 St, ling interestin th siine, to be ho L rties now owning it at v tor bonds and at . d to be leased to the Union Pacs Jany for the inte; mortgage bodus or otherwise as may he de- termined, ‘I'he bridge at St. Josevl is to be bought of parties now owning controllin bond and shares of the P 5 with the shares throw Jayment to be miade cither in share Pacilic railway at par or Kansas Paciiie con- solidatea mortzage bonds at par, ‘I'ne Union Pacitic stern division, is to be taken at cost to Mr. Gould 1d for in same securiti J ¢, Viz., abont one- half in KansasjPacitie consolidated morigage bonds and one-half in new Union Pacilic 6 per cont, trust bonds, mnl I at par. k8., K H. Bk By the terms of this paper Mr. | secured for 40,000 full shures of Kansas Pacific stock that had cost not to exceed $250,000, $4,000,000; he for a like amount of St. .J. bonds that had cost him scured $1,500,000 nd Western 1,0005 he was in some 150,000 \ Central Branch pur Central sh in connection with the Missouri Pacilic ieme at extravagant figures by Mr d, dated e | therchy relieved of the bu 5 he had assumed. One of the pu present, with au unconscions realization of the gross impropriety of the business which was being transacted seems to have afraid to atlix his entire name and to have been willing only to identify lnm self with the travsaction by use of his initials, “R. 5.’ Ihe signing of this paper determined the consolidati Thers was no consul- tation of st rs, 1o submission to bourds, no corporate action. Goald had willed it in his house, and his will was January 16, two days after the was sigued, Humphreys and Dodge formal report advocating the con solidation on preciss the terms stated in the paper smgned January 4. The question naturally arises whether this was 4l unbinssed report or whether these gentlemen wi intluenced by Mr. Gould, { The extraordiy the Denver Pacilic stock referred to in the aper exvented at Mr. Gould's house was t\knn ont of the property pledged as se ed mort d further and mo curity for the Kanss consoli gage, is top well known 10 ne explanation. But the origin of ry proceohng by which | tive for that proeceding is made perfectly elear by this per, It was to be con verted into t v stook for the very | purpose of affording 4 tund out of which | Mr.Gould eouid receiye the price exucted | by him for his “trimmings.” Perhaps the most striking illustration of the unbounded ingenuity and fidelity of resources of thig man is to be found in the fact that while he was engineering to bring about this consolidation, but on his terms, he had to manage aftairs that every one of the gentlemen present, and who signed this paper, was a part owrer in the very seeurities for which ho was ox acting the pri named above, and every one of these men, in agreeing to Mr. Gould's terms, received a personal pe- cuniary benetit by selling their respective shares” of the St. Jo and Western bonds and stock,which Mr, Gould had preyi- ously made over to them at the prices he had himself paid, The amount of money 80 received by these gentlemen appes from the statements made by Mr. Gould to have been about $60,000 for each. The Denver Pacific stock business was completed January 23, the whole scheme was carried into effect, and Fobruary 16 following, Mr, Gould received for his share of the securities represented by him the full amouut thereof at par in the stock and bonds of the consolidated eompany. Mr. Gould in the course of his axamina- tion declared that when he effected the agreement of Janusry 14 he was not a director of either of the companies, though he declared that in his judgment there wouud have been nothing hnurornr in it, even if he had been a director. His resignation was not a pubhic act, Itap- pears to have been effectad January 10, fonr days before the signing of the paper, and to have been reported to the boar of directors January 24, only a fow hours before the consummation of the consoli- dation, by the terms of” which Mr. Geuld again bocame a director. The object of this resignation is diflicult to understand. The foregoing statement shows the sub- stantial history of the consolidation be- tween the Kansas Pacific and she Union Puacil It may be true that by reason ot the relations ~with these two roads held each other, and of the great natural resources of the part of the country which they traverse, that the consolida- tion has been a benefit to them. But the fact that men hotding positions of honor and trust in a great corporation like the Union Pacitic should permit themselves to vote into their own pockets the emor- mous sums which they themselves de- rived through the consohdation, is a mat. ter perhaps of greater importance to the community than the barren question of the pecuniary effect upon the corpora- tions themsolves, GOULD'S FURTHER WORK, Mr, Gould's dealings with the Union Pacific did not terminata with the con- solidation. He then had on hand an en- terprise relating to the construction of the Denver, South Park & Pacitic rail- way from Denver to Leadvitle, with ex- tensions beyond that point. Under the construction contract he had received the bonds and stock at & price ver mile whivh left such portion of the stock as was issued to him comparatively without cost. In January, 1881, without any corporate action of Uuion Pacific bonrd, thero ap- pearson the accounts of the company an entry by which 30,993 shares of the stock of this company are charged to the Union cat par. This entire con- sidera was puid to Mr. Gould in se- curities of the Union Pacifie,or in money, in the spring of 1881. Mr. Gonld's ledger account of the Kan: Pacific shows a balance due him from January, 1850, at the time of the consolidation, and arising out of the sale above referred to, of #5,300,008.28. ‘Chis balanca was eredited to Mr. Gould on the books of the consolidated company, and, togother with the price of the Denver & South rond, was paid over to Mr. Gould nsolidatod eompany either by tile issue of stock ov cash payments. Mr, Gould drew out of the Union Pa- i He realized out of his con- nection with it the sums recapitulated be- low—materially lesseningg, of course, the ability of the company to meet its obliga- tions to the government: From the sale of securities directly from himself to the which securiti 000, he receiv branch roads and their profit e For his shal bordina comes in the pool he received 1,500,000 they cost him $:200,000 c consolidated honds(of which he himself was the trustee,) at 15, when the market price ' was 95, thereby securlng a profit of ... Total profits. .. $9,450,000 Pozzoni s Complexion Powder pro duces ft and beautiful skin, It com- bines every clement of beauty and purity, Sold by druggists. ——— Tho Drink of the Gods. The water the citizens of Omaha are Leing mdulged in just now is a vast im provement on that which they have been tomed to, and the promise of the er works people has been abundantly This welc betterment 13 to new scttling added to the company ' eporter was shown samples of the water in test vials, of twelve and twenty hours stunding, ex- hibiting the difterent degrees ot clear- purity. experiments al- how indubitably that a con- enty-four hours will rystal- SKIN & BLOOD For clon Humors, 1 mples to Sero iug tho Skin and Seulp of Disfiguring utiny! Ttchi Crusr, Sealy Hond, a Skin and Blood e great 8Kkin o Skin B 5L CUTIOURA 1§ CUTICURA extern .y @ood Purifor, internally, are tnfatuble, MEL RE. 1 Al iy 1110 with skin disenses of s and iy never found - perm - iti], by the wivice ol i ndy (3 tend T our Yalumhlc COTcERs EAEDERL uwh tradl, using 8ix ot LYENTLWO boxes of ( bf CuTICUTE AL Cwhat T had heen 1 have s diflerent, ¥ erod with seabs and sor 1 bl triod oy . SUand wost. My case wis oonsidorod Thavo now not n purticle of Jaid my case is cousiderod 1iny suTering Wi henrd of i \ins, 8. A FEV L muss oxtond to thanks of one of my customers, who hius boen cured, by using tho Cuticura fomedies, of an old sire. cunsed Ly wlony spell of It yonra | o wond uppy 1o ws n doliar, lich s He 1L nsboro, Teun 0 everywh ere. ks VENT, § epirod by the Porres D kua Cnesiear Co., Boston, Mass. Send for How 10 Cony 818 Drevagis. GRUBS, hinstos: S iomisteioans Foxk HOW IT ACHES! Ridney Hip, 8¢ ine, wnd wll Khess relieved in %, Deontur, Mich. IE). UEEIRLS, Potter Iivg ana Chenical Co, Bustons