Omaha Daily Bee Newspaper, September 24, 1893, Page 13

- ~ PAUIRIC RAILWAY DEBT THE OMAHA DAILY BEE: UNDAY, EPTEMBER 9 L1893 TWENTY PAGES. ATRSIN | Are the People to Carry the Burden for the] Next Three SUALLTHEROAD BE BOUGH Objections to Cancell One Side and Argument Generations? IINBY TR COVERNMENT ation and Funding on in Favor of Winding the Road Up and Start- ing Ou The views oxpressed by the editor of Trr Hee relating to his idea of the best mode of solving the Pacific railway debt problem. as embodied in newspaper interviews at Salt Lake, Portlind and other Pacific const points, have elicited considerable comment on the part of the state press. A majority of Nebrask papers endorse Mr. Itosewater's views, whiloa few do not i, Among the latter is the Grand Island Independent, which during the past week has published §ts objections and its plan of settlement. Below w roduce the editorials of the Independent, which appeared under the cap- tion: “*Shall the Government Donate Fifty Millions of Dollars to the Union Pacific Railroad?" We also print side by side an excract from the testimony of Bdward Rosewater before the United States Pacific Railway commis- sion 1n 1856 1s published in the ofiicial report of the commission. A careful perusalof this testimony will enable any intellicent person to grasp the salient points of the proposition to settle the Pacific railroad debt by liquidation and dis- solution of existing partnership between the government and the road. The proposition 10 have the govornment buy in the road is discussed editorially in this issuo: L drand Istand Independent. Somo time ago we published a plan which Mr. Ed Rosewater stated in a Salt Lake interview as his proposition for solving the bt question of the Union Pacific. cone 1o Union Pacifio railroad proper is loaded down with heavy debts. The first mortgage, _according to his statoment, amounts to $33,000,000; the second mortgige, bolonging to the United States for money advanced and interest, which shoutd have been paid long ago but never has been paid, amounts to$55,000,000. The many and cxtensive branch lines of the Union Picific huve an indebtedness of $140,- 000,000 to be i The Union 1”icitic company has for a long time demanded of congress that it should extend the time for the payment of the § 000,000, which is near at hand, for another sixty or eighty years. This plan of the rail- road company is absolutely objectionable, ns it would keep the country traversed by that road under the oppressive control of that company, without giving the United States any guarantee for receving bettor payment than’ during the last quarter of a century. This plan found hardly any defender in or out of coneress, Now Mr. Rosewater proposes as a better scheme that the United States shall e “wiped out.” us e calls it; that means that the United States shall make a donation of these 5,000,000 o tho Union Pacific, which coull cusity have paid all its debts if the administration had not carelessly or intentionally allowed the grossest frauds for the benefit of private persons, who made millions out of these swindies to the ruin of the road. Such swindles ought not be re- warded by a donation of §5,000,000. That an cxtension of the time for payment would be in no way beneficlal to the people is sure enough. IL would lend a pretext for high ¢ and would not sccure the pay- ment of the debt. But where is the secur- ity for any more lenient treatmenv of the people if the people should make that large donution to the road. The history of the road makes it as good a8 corlain that, even after such an undeservedly liberal donation, the road will squander the money for the beneflt of its friends, who want to increase the number of their millions, and that it will continue to oppress the people with unreasonably high charges and with political corruption as before. I vs full well the history of the Union Pacitic from the beginning down to tho present; he knows that immense donations of land have been made by the United States to the Union Pacific and large loans of money, sufficient to construct the road with, and that the company, all this Jibarality wotwithstanding, has nover felt ny gratefulness toward the people and ever any pangs of romorse over the terrible swindles which ate up the substance of the road, plunged the company heels over head in debt and robbed the United States of its first mortgage, and Mr. Rosewater has for long rs denounced these outrages in the strongest language, Is there anything now that justifies M. Rosewater to a change of heart and makos him believe that the railrond company has been couverted into o highly moral boing that will bo moved to act with Christian liberality toward she people, after the peo- ple should again with great stupidity have presented it with another immease dona- tion? Wo hardly think that Mr. Rosewater is actuated by such a childlike considera- tion, Or docs Le think that the railroad can be bound by law and by certain conai- tions and stibulations made in connection Mr. Rosewater ki with the great donation to treat the people justly and fairly? The whole history of our railroad company, all its broken promises given tha. United States and the city of Omaha, all 1ts actions to break down or circumyent the law, its present not yet finished attempt to annul the max- imuin rate law, its undertaking to control our state by making 1ts smartest railroad lawyer a United States senator for Ne- braska and put another railroad lawyer into our supreme court, makes im; ible tho belief that the railroad company would usider itsolf subject toany new law or stipulation, and that it can bo successfully bound by such ties. Mr. Rosowater has too much experience to trust the company any more In the future than he has done in tie past. Wa consequently eannot under: justities the expectation that the peoplo of tho United States or the peoplo of Nobraska would bo benefited by adonation of §5,000, 000 mada by the people to said corporation. Such a donation would certainly be very beneficial to the Union Macitic and to ail those men who speculate on enriching them- selves with the millions in the hands of this company it would be a windfall. 1f they would make a plan for such repotition of our overnment's folly of twenty-five yoars ago t would be natural, but such’'a recommenda- tion coming from Mr. Rosewater is rather unoatural. The plan to lot the road be sold at a mort- fub{u foreclosure sale and buy it iu for the Jnited States to secure the #5,000,000—this plan, rejectea by Mr. Rosewater without auy kood reason, we shall consider av another e, 1L _The plan to buy in the road for the United States. if it should come to & mortgage sale of the Union Pacitie railroad, and if no com- petitor should bid enough for the property tosatisfy the government's second mort- g3ge, is rojocted by Mr. Rosowater without Ppresenting any good reasons for the rejection ofit. He only says it is the plan of “some tmpracticables'’ and that the road would prove “the biggest white elephant” the pao- ple of this country ever bought. Mr. Rose- water is not entitlod to pretond that his tand what diotion is truth and must be accepted withous' Sy Wridouce: " Aud " evidbsos 1 sy he has mot given. The t Anew, road would cost | it in,not more th us in roality, if wo buy | 000,000 of the first | | mortgage, 08 ac to the propositions | of the vailroad f Me. Rosewater we | would certainly lose the 55,000,000 of our government's second mortgiage, And for the $43,000,000, which ol vernment would have to assume or pay,it would get the prop | 1vl'l\‘ of the road. That we would have to | buy all the branch lines and assume the { 140,000,000 of debt they areloaded down with, as Rosewater intimates, is ine 0 | These branch roads do very little business | aud could not exist indevendent of the main road. They probably could soon be bought for very little monoy. ~And if not, the i United ‘States could build branch roads as | well and probabiy better than the Union sific he whole assertion of R. that the rond would be a “white elephant” to our wovern- ment evidently rests on the assumption that our government has not the ability to admin- ister 3 railrond either by running it them- selves or by leasing it to a company. But | such assumption is entively unwarranted and without any probability We assert that our government is as able as those foreign governments many of whom own and operate a large number of railroads with more satisfaction to the peoplo than our private railrond compunies do. Our govornment has always shown the greatest ability in operating our army, our mnavy, our finances, our postal de: partment, and R. himself is willing to trust it to tne administration of our telegraph and telephone systems. Why are theso new brauciies of our government work, which he proposes, no ‘‘white elephants?’’ And why should our government not be able to run a railroad in time of peace when it has been doing the same thing in time of war? It scems to us that Mr. Rosewater's plan of donating the 5,000,000 to the Union Pa- cific is the most unfortunate of all, and with- out any beuefit to the people, beneficial only to tho private corporation which receives the donation, and to those who would make millions out of it for themselves. 1 Plan of Settlement. OmaAHA, Sept. 20, 1887, —Testimony of Edward Rosewator before the United States Pacific Railway Commission. Volume 9, pages 1340-1355. Question—Have you considered the var- ious bills that were introduced_in cougress during tho last session, from time to time, as to the methods of settlement with the Union Pacific Railroad company? Answer—I have considered all the prop- ositions that bave from timo to time ema- nated either from thecompany,or the govern- ment directors,or from congressmen,that con- template the funding of the company’s debt ata low rate of interest. 1appeared before | the committee on judiciary of the United ! States senate, three years ago, to protest | against any such funding bill being enacted. | Proposed Extension of Time. The Chairman (Governor Pattison)—We | want your views as to the effect of an ex- | tension of timo by the government for the | payment of the debt of the railroad com- pany—the effect, I mean, in_ relation to the | community through which the road passes. Tie Witness—T claim that it would work a great injustice, and operate as a hardship | on the people thut are comvelled to bo patrons of this great system of railroads, 1 not only on the peoplo who patronize | this road. but on those who patronize any transcontinental road, to fund the Union Pacific debt by extending the time of ment for sixty or e ber of years. My reasons for opposing this proposition are that a large portion of this acbt was fraudulently contracted ; that it ropresents quadruple, or perhaps quintuple, the cost of any other road that could be bumilt to | duplicate this system; that in funding the indebtedness of ‘the road the government of the United States proposes to recognize as | valid the Credit Mobilier frauds, the thefts and misappropriations of the company under various managements, the mismanazed af- fairs of tho company and the reckloss o travagance that has characterized it under various administrations. recognizi valid all the: tions the vay- | ghty years or any num- In » fictitious and illeg: obliga- government proposes to place morteage upon the earnings and the pr not only of this generation, but of all the genorations that are to follow us. An Incubus Placed on the People. ! My opposition to this springs from n desirs to see tho people free from this incubue that has been placed upon them. It is for that reason that [ say it would bea great injustice to the peovle who are compelled to patronizo this road to fund the $0,- 000,000 in bonds, or about that sum, inde- pendent of the & 3,000 000, which alreaiy en- cumber this company as a first mortgage, and to compel the people of this western country for sixty or eighty years, or an in- definite period, to pay the interost on this enormous indebtednoss, and to nay gradu- ally every dollar of the principal, and be- sudes that, to paya_reasonable income on flctitious stocks which these companies have iss ued. An Injustice to Western Pe ople. Tf the people of the western soction of the country, and of the whole United States, are to contribute to the liquidation of theso enormous sums of money, borrowed and stolen, it Is a declaration that the govern- ment does not caro for their interest as much as it does for the parties who are now own- ers of that stock. If this stock is in the hands of innocent partios, as has boen repre- sented timo and again, if it is in the hands of orphans and widows. tho responsibility rests with thoso that made the purcha ses nslon WIIL Continue Extortio Ldonotseo why the power of congros should bo used to rob all the people of this country by levving upon them a continuous | tax upon fictitious values; aud further than that I claim that the extonsion of the debt of the Union and Central Pacific roads, or of the Union Pacifie, will continue during some time, if uot almost perp ) the extor- tlonate and high rates of trausportation which aro now also charged by competing companies. Because the Union Pacific, weighed down with an enormous debt, ‘would, after collecting its fixed charges, the interest on its bonded debt and a reasonable amount of divideud on its fictitious stock, be compelled to keep up high rates, and the other railroads that are now eompeting, such asthe B, & M. and the Atchison & Santa Fe, the Southern Pacific and every other road going across the continent, would naturally feel justified in keoping up the same rate, and when they should want to ocut under, knowing that the Union Pacific could not afford to cut below a cortain rate, they could keep up their exorbitant tolls. The Wu rlington System. 1 pelieve the Burlington tem has been built out of the profits made in Neoraska. 1 beliege the entire Burlington system, west of the Missouri river almost, has been ' built of the money wmade from land and that the eaormous sums of money made for that road have been made in its extension. They have -vnnl‘sw aud bouded the road up to the ut- most. If the Union Paoific roud went through a Process of Liguidation,or whatever you might | first sce whether the other fellow call it so that it should get down to an actual valuation of what it would bring in tha public market today, that road could re duce 1ts rates 5 per cent and still earn a ry reasonable income upon its investment at would be a great relief to the country It would give this section fair rates after ali these years of exorbitant tolls and oppres sive taxation. This state nas been enriched by the building of railroads, but it would have been three-fold as rich if it had becn properly treated. The wealth of this west era country today would have been three times what it is if it had not been for tho enormous contributions we have been com pelled to pay to the railroads Pinn of Settl Question—What would you propose as a basis of settlement? ment. Answer 1 have not personally gone far enough into the matter. But the first propo- sition | would make would be this: To do just what any other business man_would do if ho found himself in a condition to be com pelied partly to pay this debt, if he was the \dorscr of another man's note. He would had any- thing. Mr. Poppleton—But suppose the other | man had an incumbrance on his property? T'ho Witness—1f the other “fellow” v/as my wife [ would probably lot up on her, and let her out of debt, but in this case the pay ment must come from the people. That must not be lost sight of. Question—What is your plan? Answer—Well as I am not a_congressman senator and not obliged to solve this problom dividually, I have not given the subject such thought as it deserves. Recove Question.—Bearing in mind the interests of “this community, what plan would you suggest! Answer—The private interests of this community (speaking of Omaha as a community) might be to go on and keep up this inflation system, and verhaps let the management go on and squander all the money they ean in overy sort of way; but as proposition for the people of the western country and for the United States, who ar Lly to pay this bill finally, my 1dea would firat, to attempt to recover every dollar been improperty taken outof tho That may be very difiicult to do. 1f, believe, millions of money tave been 4 orig- of Misapplied Funas road. as | misapplied by the builders of the inally, and by parties who have controlleq it since, the government should attempt to go all itcan out of it. In the next place. it there are £36.000,0000f stock in the Union Pa- cific, and only 10 cents on thedollar has been paid in, the stockholdors should pay fn the difference between that amount and tho amount that the stock represents and if thoy donot_so pay it in, stock should be wiped out entirely mits face; then the ymmissioner Littler—That without re- gard to the fact that the present stockhold- crs paid 100 conts on the dollar for it? “I'ie Wituess— Without regard to anything. 1f 1 buy a stolen horse I have to give it up. Declsion of the Supreme Court. Mr. Poppleton—Do you know that the su- vremo court of the United States has de- cided that that cannot be done? “The Witness—If the supreme court of the United States wants to do something that is dishonest that is not my affair. My personal opinion is asked for, but my opinion is that this stock represents nothing but highway robbery in the first instinco; and having been issued by a set of highwaymen in the first instance the innocent partics must suf- fer. Liquidation of First Mortgage, Commissioner Littlor—Assuming tiat that is all so, give us your plan. The Witness—The first mortgage would be the first thing to liquidate, I presume the first mortgage bondholders would come 1n and claim the road or they would put it on sale. If the road,on that sale, does not bring the amount, the first mortgage bond- holders lose the difference between that and what they paid and the second morteage is wiped out altogether, and the people are re- lioved from paying this money, for it is all the same. If.on the other hand, the first mortgage s satistied, I want the govern- ment that is going to take this money out of the hands of the people to say at ouce that there is to be no further excuse for legalized robbery or for the expenditure of this money | for investigations and millions of money spent every year in looking after these thieves. 1" would bave theroad put to a sale and if it brought more than the first mortgage bonds, very good. Mr. Poppleton—Its debt would in that case be donated to the people of the west. The Witness —Its debt would be donated | to the peopleof the whole United States. There would be millions of people traveling over these roads that live east of the Mis- sissippi yiver. Just as soonas you reduco the taro here, for the people of the west you reduce it for all the people. That is my plan, and 1t would be the most effective plan | todoaway with tho systematic vlunderiug that has been goiug on all these y Question—f ars. you_any other vlan, sug- | gestion or information to offer to the com- mission? Auswer—There may be a good deal of in- formation that I eannot give without ha ing my attention ealled to it. Stll so far as solving the plan was concerned, and getting the money, I did not joke very much when I said what T should do if my wife had en- dorsed a note with me. I regard the woy- ernment and the people in the relation of man and wife in this matter. When a di- vorce is granted it should be perpetual There should be no more nonsense about it, and inasmuch as the people are to pay this money, T declare it is perfectly idiotic to zo to work and levy a tax on them for eighty years, or, in_other words, to_authorize the robbing of the people for that length of time If this road were sold and the stoek wiped out entirely, and tho new management had a raiiroad for what it is worth in the market, they would be able to give us rates of trans. portation that would revolutionize the w orn trafic. How the Koad Can Be Foroolosed. By Commissioner Littler: Question—Can you tell the commission how the road can’ ho sold out under fore- closure, so long as the company pays interest on its first mortgage bouds, and so long s the supreme court, holds thai_the money on tho bonds is not due until 1877 Answer—There is no nocessity whatever for the legislation that was contemplated When 1867 comes and congress meets and finds the country in the condition of second mortgage holders it will bo time enough to let the road go 1o the wall to be sold out, if it cannot be done sooner, although T have an idea that under tho report you can make to congress thero could bn Such a showing made as that the road can be sold out. There was enough under the Lawrence in- vestigation even to show that. But even if that were not so there is nonoed of legisla- Let the road go on for ten years T do not think it is 1507 though. tion now. longer. The Chairman—1805, 1505 and 1807, The Witness—Very well. T do not even then see the necessity of doing anything now. The objection T have to the bill 1s that it legalizes a fraudulent debt, Glve the Debt to the People, Mr. Popoleton—You want the government to give that to— The Witness (interrupting)—To tho people, 1f the people pay it, why not call it square atouce? Go intd the market and I sell the road for what it will bring, and let it be operated honestly, without uny gov- ernment interference whatever, Question—Have you any other suggestion? Answer—Nothing now, There are so many things that come up in vears of dis- cussion about a matter of this kind that they cannot be thought of on the spur of the moment. Reducing Capitalization of the Road to Actual Value, By Mr. Poppleton: Question—1f I understand you, your plan would be, practically, to let the road %o into bankruptey and be' closed out under the mortgages: i that way your idea is that the capitalization would be “brought down to its actual value when bid ‘n and reorganized; is that it? Answer—Yes, sir, that is my idea. My idea is that the railroaa should be brought down to the actual investment init; tha' is, whatever it might be worth today to replace its equipment and track. Ques tion—But if sold out under foreclosure of course it would go to the highest bidder? Answer—Yes. uestion—Is it not a matter of fact that under such foreclosure sales all property Boes at a very low figure? Answer—Yes. Question—That being o, then this road, after it had been canitalized on that auction block system, could afford to make the peo- | eapitalization of the Union Pacific ple of this country loiver competitors, could it not! Answer —Yes ne of the obje that is what I say, Thatis | 18 1 would have in viow How Foreclowre of Unisn Pacitic Wouold Affeet Othe: Rowds, Question ~In other ‘words, you think if this road wore driven into bankruptey by the government, it . would compel these other roads to go into bankruptey the long run, is that it? Answer—Not necessnrily, unlesa they are neumbered in the samo way. 1 do not be lieve thoy are. { Question Do you believe that there .o any teanscontinental; line that could bo op- ted in competition with an auction block and Cen tral Pacific roads withont going into bank- ruptey? Aunswer--1 think there are some because they own their own-bonds. Question —They pay interest nevertheless’ They pay tho interest out of excessive earnings and pay themselves dditional_income on them, an Question —Name the road. Answer —The Burlington road for one; the Atchison, Topeka & Santa Fo the second. Question and Union line capita would not se So you think that the Central Pacific roads, as a continental zed upon an_auction block basis, usly impair the value of thesa other roads or drive tnem into bankruptey? Answer—If you call their stocks worth what they are quoted at and regard their extravagant capitalization, it might impair it ivery man wno owned a block of it might consider himself worth as much as he was oefore. It would not drive him into bankruptey, but_would drive him into hon esty. That would be all istion —If their carnings wero not suffi cient to pay the iaterest on their debt and vay their” working expenses, they would have to go into bankruptey, would they nott Answer They would earn a reasonable in- como. What the Union s e Would Bring Under the Hammer. Question—How much do you think the Union Pacific road would bring under the hammer? Auswer —Probably 25,000 a mile ; probably more. By Commissi : Question—Does that include the branch lines! Answer—T only spoke of the main line and the Kansas Pucific, not the little side branches. Mr. Poppleton—That would be just about the first mortgage. Auswer—Yos, siv; that wouid not do any harm, would it? Question—If 1 understand you your idea is to “dissolve all partnershin between the government and the railroad at as early a day as possible: certainly in 1507, when the debt becomes due? Auswer—Yes, siv; just as soon as tho fivst mortgage become due, or as soon as the government can compel a liquidation, [ would compol a separation of the interests of the government and the road, divorce the road and the government. By Nir. Poppleton: Question—By sacrificing the interests of therond? By getting as much as thoy can from stockholders and everybody that haa been connected with it and” finally lotting therond go at whatever it will bring at public salet —_—— DeWitt's Witch Hazel Salve cures burns. el it LABOR AND INDUSTRY. With one excoption all the mills at Man- chester, N_ 1., are running on full timo. Most of the sawmills in Michigan closed by the financial svaro bave resumed opera- tions. The famous Amoskeag mills in New Hamp- shire, employing 5,000 hands, are about to resume. "The Ames Iron company has resumed work at the mine, near Ishpeming, Mich., with a full force. The first American tin was made in Con- necticut in 1770 The last was mado by the newspaper process at Columbus, O. “The nail machine was invented in 1775, At the present day it is cstimated that 4,000,- 000,000 vails are anwually made by ma- chinery in_Great Britain alone, and from a fourth'to a halfof this number in the United States. A Pittsburg dispatch says that out of sixty-four iron and steel mills in _the Ditts- burg district, thirty ar more are being opor- ated on a nonuirfon basis. Five years ago most of the mills were operated under the Amalgamated ociation’s rules and rates. Wayne county, Pennsylvania, is regretting the loss of its tanuing interest. In 1870 the county was the leading one of the United States in leather production. The business amounted to £,000,000 yearly. Now there is only one tanuery in the county. Operations haye been resumed in the Red Jacket shaft of the Calument and Hecla mine at Calumet, Mich, 1t was closed sey- eral mouths ago, when ten men were dashed to picees by mistake of the engmeer in reading the indicator. The water was pumped out last week, and the shaft will bo sunk o a depth of 5,500 feet. The famous labor organization, the Amal- gamated Association of Iron and Steel Workers, which for years comprised all workers in the iron mills of the country, is but a skcleton of its former self. It has lost fully one-half the mills formerly controlled, and the present financial stringeney, coapled with Innumerable desertions of members, threatens to end its existence for the pres- ent. A telegram from Pittsburg says the labor leaders of that city “will this weel begin cor © with the national oficials of every organization of the United States on the subject of a labor union, which witl em- brace within its ranks every association and union of working men in the country. The plan has been endorsed by T. V. Powderly, and it is believed will find aceeptance among laboring men everywhere. The men who ave started the ‘movement are confident such consolidation can be perfected.” W. G. Rochester, a young engraver at Ot- tawa, Can., says the report is true that he sold a patent for £0.000 to a firm in Ger- many. The patent is fora printing and lith- ographing machine that will make as many as thirty brintings of different colors at the same time if requived. something unknown in the history of printing. Mr. Rochester declines to give the names of the buyers, Ho is preparing to leave for Germany to su- perintend the construction of the first press, Pittsburg manufacturers yeurly consume about 6,500,000 tons of iron ore, the contracts for which are noarlyall made before Septem- ber. As an instance of the dull condition of the iron trade locally only one large firm has made a contract this year with tho ore pro- ducers. That firm is the Carnegio company, which has contracted for 100,000 tons of ore The mill owners do not care to risk making contracts at certain prices and undeigo the linbility of loss through a fall in the price of their manufactured products, - Don't forget to & few bottles of Cook's Extra Dry Imperial Champagne with you on YOur suwwer outing e roezing Polnts, es and becomes ice at 322 of Fahrenheit, whereas mercury only freezes at 30= below zero of Fahrenheit; olive oil, on the contrary, shows signs of congelation at from 40= to 45= of Fahrenheit. The three substances quoted being all liguids, the difference inthe loss of heat. requisite to bring them to solidification is very great in- deed. The action of heat on fluids or solids is equally various, Water boils at 212= Fahrenheit, lead melts at 6122 the fusing point of gold is 2,016=, and of iron 3,000=, e Miss Eugenia do Forrest, an actress of Sau dose, Cal., has received ‘the sanction the authorities of that city w wear trous y and proposes to obtain & legal right Lo ap® pear 1n thie same garb all over the country. eing an uumarried lady, Miss de Forrest is, of course, doubtfulof her rights. Thousands of married ladies aro wearing the trousers, whether the constituted authorities like it or not. Water free . Fred Pettigrew of Plorre, who has re- turned from compleling @ government sur- veylug coutract on the cedod lands west of Plorre, discovered large quantities of fine amber, 4nd has brought specimens to the city. He is reticent as to the whoreabouts of the find, ouly saying it is on the Grand river. He will go to Chicago to got the opinion of experts and return 1o develop the discovery, s s s LJARD TINES ARE UNKNOWN | - CONTINENTAL Ons Western Oity Which Has Not Falt the Effscts of the Goneral Daprassion DEAD¥OOD IN A PROSPEROUS CONDITION Tmmense Bodies of Freo Milling Gold Other Ores—The Present Year One ot Unusaal Activity in the Way of tmprovernent, Deanwoon, S. D., Sept. 25, ~(Special Tue Bee. | —There is ono city in the United States which this year has not heard the plaint of hard times—that city is Deadwood While Colorao, Utah, New Mexico, Arizona, Idaho and Montana towns and cities have feit the evil effects of the silver this city has continued on its march to pros- perity little caring whether another ounce of the white metal was produced or not T'he conditions which would injuriously af foct this city and the adjoining country or in a great measure interfere with its prosperity will not likely be expericuced for years to cowe; that would be the exhaustion of the immense bodies of free milling gold which everywhere abound, and whon time does arrive, if it ever should will be had to that class of the high grade refractory wold ores yot remaining un- treated, for time will then certainly have ro- veuled the secret of their treatment This 18 purely a gold country, and while silver mines abound, some of them of a very fair character, there is not now and has not in the past been very much avtention paid to s, ores that resort their development or working. Gold is the motal whose subtle power zives lifo and vim to the country and its people; it is the hope aud stay of the Hills and the rock on which 1ts foundation of future greatness has been builded. “True, other metals, precious and abound throughout the Hills. but section is to be found gold ¢ sure, 5o low in grade or so refractory in character that under existing conditions it would prove unprofitable to work them; but experiments are constantly being made with the view of finding a way to their easy and cheap reduction, and in many instances tho experimen >' meeting with considerablo success. When the problem is solved, and its solution cannot be far distant, this’ city and its tribu suntry will have entered upon an era of prosperity far exceeding the useful, in every 'S, s0me, 1o bo brightest dreams of its most sanguine - | habitant, Improvements Dur the Year, This year has been one of unusual activity in the city and the improvements at pr t under way give employment to thousur people. Streets are being graded and | tho water works improved and other munici pal work going on, while private cuterprise is giving steady omployment to large num- bers of mechanics and laborers; in fact, within the limits of the city idlencss is an unknown_vice and poverty an unheard of erime. ISvery one is kept busy, and the very air seems permeated with tho spirit of en- terprise and indust; To n stranger from the east the bustling activity and the everywhere apparent evi- dence of prosperity is a grateful change from the dreary languor which hard tines has enforced elsewhero. Deadwood owes much of its presont pros- perity to the enterprise of the men who, when doubted, still kept their faith in the richness of the Bald Mountain, Ruby Basin and Carbonate mines. For years thoy dug and delved, tested and experimented. It was & long wait, but their patience and faith was rewarded, and today some of the very men who first made locations of what ex- perienced mining men cousidered, at that time, worthless ground, are numbered among the wealthy men of the country. “The ores of these comps are of a refrac- tory character, and many thousands of dol- lars and years of time had beon speut before a process was found by which they could be workod with profit 10 their owners. The problem was solved at the Dakota School of Mines at Rapid City after many experiments, and resulted in tho. establishment at ouce of two large reduction plants in this eity for the treatment of the ore by the chlo- rination process with a combiucd capucity of about 300 tons duily. Shortly after an- other plant for working the ores was built, having a capacity of eighty tons daily; and today thereare in course of erection two more large establishments, which will raiso the capacity of the plants established here to nearly 1,000 tons daily. To secure the large anount of ore neces- sary to keep the plants in operation some means other than a resort to horses and wagous had to be obtained, and it was nov long before the management of two ereat lines of railroad were convinced that in Deadwood, even if the expense of building in here would be great, o profitablo business could be secyred, and the experiment would be worth trymg. With a little assistance from the people of the city the compunies made the venture, and today Deadwood has four lines of road, in constant and successful operation, centering within hor limits—two narrow guage and two broad guage lines. F'tom Deadwood branch linos extend to the mining districts of Bald Mouutain and Ruby Basin, Green Mountain and the Car- bonate camp, making a perfect network of rails through the Hills. Every mine of im- vortance in operation s touchod and its product brought to Deadwood for treatment. “The systems are being constantly extended with the_dovelopment of now mines, and al- though the problem of extonsion {5 a ditti- cult_one at 8, it i8 overcomo by tho engincering genius of those interested. Al of the Hills, The mineral resources of the Hills tapped by the lines are varied and extensive, and welude, besides gold and siiver, iron) tin, copper, nickel, ziuc, uranium, cobalt, asbes: tos, load and many others.. But chidtest of thesois the free milling gold ores which, while fucident to eyery section of the Hills, are found nowhere in such vast bodics as in the Whitewood discrict, within a few miles of Deadwood. At Lead City, working on theso ores, ave located the most gizantic gold mines the world has_ever known, the colebrated Homestake mines. New propor- ties are being opened up evory duy and it is a froquent oceurrence to hearof a rich strike being wade in other propert Aother mineral that has been attracting much attention from Deadwood parties aro the deposits of asbestos which have latoly been discovered on Silver creck, about fif- teen miles from this city, by J. T Gilmore and his partners while prospecting for sil- ver. Asbestos, as every student of geology knows, is & mineval fibre of the hornblendo variety. It derives its name from a Grook word, " which sig “indestructible by fire,” The uses to which it is put are many, and of late years it has come o bo an almost indispensable urticle in the building of fir proof structures. This is not the only dis- covery of the miucral wool, as it is called, that has been made in the Hills, but mention ismade of it from the fact that its owners have done considerable development upon their claims, and the characterof the fibre atall depths is of & very high order, as is also that of the other claims on which any work has been dore at all. The Hills asbes- tos differs from the Canadian, at present ono of our greatest sourcesof supply, in that the fibre is longer aud more easily soparated, favoring more in this respoect tho Italian production, which is conceded to be the best, All these mines and mining districts are tributary to Deadwood, and all of the busi- ness transacted in them is done through this city. 1t is the clearing houso for the entire northern hills, and participates in the profit and trade of the entire country ory yoar adds to 1ts wealth and importance. it is today the only mining town in the west that can boast, without fear of vontradiction, that it does not kuow what the term “hard times” means A Resou - slmudists Satan, whose real nawme is Samumacl, or Eblis, was origin- ally an angel with six wiugs. Heis also known as the old serpent, the devil, Beelzebub, the unclean spirit, Leviatban und Asael. According to the By Swiss girls io the time of William Tell were married in o bright-colored gown, plaia apron, red hose, bridal wreath and stom acher, on which the bride’s name and the date of her birth were engraved in large leteoss, agitation, | sold, Notice the sample windows. | $2.00. |this week. pants at 50c, 75¢ and | CLOTHING HOUSE. THIS WEEK to | Great Special sale of - Men's Business Suits At $10.00. In double and single breasted sack ch simere and worsted suits, over 1000 suits to be Samples are shown in our windows. not, cas- MEN’S FANCY Worsted Pantaloons $2.15. of $2.75 Pantaloons in our They will be on sale Monday, To 'get a pair at this price means that you save just LIGHT WEIGHT Overcoats 10.00. 150 handsome black melton overcoats, clegantly trimmed, a regular $15 garment, this week $10. Overcoats at 5[][] 150 light meltons in two elegant shades at $5.00 You will pay $10.00 in other places for the same goods. Boys Department. SPECIALSAL EON MONDAY Boys’ short pant suits $3 and $3,50, in | double breasted cheviots and cassimeres. Bovs’ Knee Pants, 50c, 75¢, $1. 100 pairs of boys’ fall weight cheviot knee L. NNUBIALITIES, are fashionable in “Golden rod" wedaings Pennsylvania. “Know all mon by theso presents,” would b very appropriate on a wedding certificase. In many parts of Java tho brido shows her subjection by wushing the foet of the groom. The ougagement of Miss McAllister, daughter of Ward MeAllister of Now York, to Mr. A. Nelson Lewis of Phila- delphia is reported. Mr. Watts: Iwonder if a woman ever does get too old to marry? Mrs. Watls: That's pretty b 1 Lo answer. Age does not always bring wisdom. He (sadly)— Why do your parents oppose our engagement, Nellio? She—-Oh, that's all right. Igot them to do it just for the suke of a little excitement,” announced of Miss daughter ol Jenkins The engagement is Dorothy Van Schaick, Van Snhaick, to Rovert Kelly, youngest son of Eugene Kellv of New York city, At Roman marriages the wedding ring was placed on the thumb. At modern North An.crican woddings the ring is placed upon tho third finger and the husband is placed under the bride’s thumb, Another American girlis to marry into the nobility of Great Britain. The wedding of Lord Terence Johin Templo Blackwood, sec ond son of the earl of Dufferin and Ava, to Miss Flora Davis of Now Yori is announced for the early purt of Octobor. he Rarensof Burmah have their mar- riages ata funeral feast. When a villager dics his remains are temporarily disposed of until one or more marriages can be arranged, when they are disintorred, & great foast made and the fuucral services properly ver- formed. The m rriage of Miss Helen Murphy of San Francisco to Don Vicente I Dominguez, son of Senor L. L. Dominguez, the Argen tine winister to Great Britain, took place in Londou on the 18th, the ceremony bainz per formed by Cardinal Vaughan, The wegling was very private. The bride wis fiven away by Sir Charles Russell, tho attorney general, For the first time in the history of base ball a wedding took place on tha diamond, and Miss Rosa Smith of Cincinnati gains the unique title of the first bride of the dia mond. Just before the game botween th Cincinnatis and Baltimores last Tuesday Louis Rapp led Miss Smith to the home plate, and in the presence of the audicuce they were made man and wife. The wedding of the oldest daughter of the prince regent of Bavaria and the Archduke Joseph Augustine of Austria will take pla on November 15. I'he bride 1s & little ore than 15 years old and the bridegroom is 21 Marrlages betweou mombers of tho Bavar CONTINENTAL CLOTHING HOUSE. ian Wittelsbachs and the Hapsburgs hay- beon especially numerous, Prince Luitpold, vand father of the fuwure archt duchess, married a Hapsburg princess, ns did also lis two eldest sons, Princo Ludwig and Prince Luitpold. 1t is said that the emperor of Austria intends to rovive the title of Palatino of Hungary, which has beon dormant for some time, for the bonefit of the young archduke after his marriage. Snerld General Grant formed the determina- tion to move southward from the wilder- ness on Saturday, May 7, 1864, hoping to plant his army ‘betwoon Genoral Lee and Richmond by a movement from pottsylvania court house, fifteen milos southeast of the wilderness battlefield, The infantry were not to march until nightfall, but the trains were sent Lo Chancellorsville during the afternoon, This movement of the traing apprisod the confederatos of Grant's withdrawal, but not of his objective point. 1t wus by accident that Anderson’s confederate corps marched toward Spottsylvania that night. General Lee, secing that Grant was moving somewhere, instructod s0n, who wi Andor- s in temporary command of Longstreot's corps, to be in roadiness to move to Spottsylvania in the morning but Anderson, not having u good plac to bivouae (the woods being on fir moved onward that night. Meanwhile Philip H., Sheridan, with his cavalry, wnich had cut loose from the army of the Potomac two days be- fore, crossed the South Anua river, cap- tured Ashland station and destroyed w great lovof storcs. Ho then resumed his advance toward Richmond. Gaeneral Stuart had massed all his confederate cavalry ut Yellow Tavorn, a few milos north of Richmond. Here Sheridan at- tacked him on the 11th, Ln this passago of arms between the ablest cavalry leaders of the rival armies, General J, K. 3. Stuart was killed. Having gained 4 decided advantage Genersl Sheridan pushed on to the outer fortifications of Richmond, The first line was carried by Custer’s brigade. Crossing the Chickahominy at Meadow bridge Sheri- dan regained the main army of Genoral Gr nt on May 14 -~ - olll will attempt “Hamlet” and during this season. - DeWitt's Witch Hazel Salve cures pilea. James O'N S Richeliow