Omaha Daily Bee Newspaper, July 22, 1894, Page 11

ROBBED BY ROGUES Bupreme Court Uncovers the Gigantio Fraud | of the Decad SHAMEFUL STCRY OF LEGALIZED CRIME Pablic Robbed to Pay Interest on Fictitions Ind btedness, MODERN RAILROAD METHODS EXPOSED Bcme of the Reasons Why Investors Fail to Reap Dividerds, REAL COST OF RAILROAD CONSTRUCTION Unwritten History of the Financial Opera- tlons Covering the Construction of the Kansas-Colorndo Division of the Mis- Y. A\ no time in the history of the contest Petween the people and the corporations has the question of rallroad regulation been Tooked with 80 much Interest in N braska than during the past cight months. One year ago last March the braska legislature, after many failures after a bitter struggle, led ie passing a law fix.ng a maximum rate of charges to be levied by rallroad compsnies doing busi ness in the state. These rates, of cour applied only to local freight traffic, which, as all who are thoroughly conversant with the nature of railroad business in this state know, forms but a small percentage of the entire volume of business transacted by the railroad corporations now operating in Ne braska. And yet, in spite of the fact that the Interstate traffic which constituted mor than three-fourths of the business of Ne- braska roads was not affected in the slightest degree by the proposed maximum rate law, the railway managers bent every effort to prevent the passage of the bill. The man- agers themselves appeared before the house of representatives and the senate and made formal arguments agalust the proposed legis- lation. The general solicitors made similar arguments. The members of both branches of the leglslature who had been clected by railroad influence, stood up before the peo- ple and argued with well simulated earnest- ness, but with ill-concealed interest, against the proposal to restrict the exactions of the railroads, and the corridors of the state house swarmed with the pald lobbyists Who endeavored by persuasion, threats and attempted bribery to defeat the objects of the people. That the bill was not de- feated was due only to the steady, un- swerving, incorruptible loyalty of eighteen members of the senate, who stood like so many stone sentrles between the pecple and the corporate interests. It is not the purpose of this article to view the history of that memorable struggle or of the subsequent efforts of the railroad corporations to defeat the legislation thus enacted by an appeal to the federal courts It is simply referred to briefly by way of introduction to the subject matter which is to come. The one point made by the oppo- nents of the maximum rate law was that the rallroad companies were already unable by reason of excessive competition, extraor- dinary expenses, Immense fixed charges and low rates, to pay even interest on their legitimate indebtedness, to say nothing about dividends on stock. The reply to this plea came with direct- ness and with perfect truthfulness from the champions of the measure. It was answered that if the railroads were unable to pay in- terest and dividends it was not because of competition or low rates. The real cause of thelr fallure was the outgrowth of the illegal fraudulent and totally unwarrantable prac- tice of stock watering and the creation of fictitious Indebtedness. There is not a rallroad president in the United States who will candidly admit to tho public that the stock of his company is watered. He will not concede for an in stant that a single dollar of his compan indebtedness is of a fictitious nature. He will mantain strenuously that the stock and bonds issued by his company represent the actual cost of construction, equipment, renewals and repalrs and that the affairs of his company have been menaged with the strictest regard for the rights of the patrons. Fortunately, railroad presidents themselves sometimes fall out and it is then that the public is enabled to obtain fleeting glimpse: of the closely guarded secrets of the dire tory room. ILLEGITIMATE PRACTICES. For several years past there has been pend- ing In the district and supreme courts of Ne- braska a case embodying in its details the entire field of railroad construction, equip- ment, operation, and, it may be added, de moralization. Although this case has at tracted but small attentlon, it is a complete expose of the lllcgitimate practices of rail- road manipulators In the United States. It tears the veil from the hypocrisy of Wall street and uncovers to the public gaze the tull nature of the foundation for the rotten superstructure of modern railroad opera- tion. As a record of legalized robbery of the people it stands supreme. It will be dif- ficult to review In a single article adapted to the columns of The Bee all the features of the controversy of the case of John Fitzgerald against the Fitzgerald-Mallory Construction company and the Missouri Pa- cific railway company and others, but enough can be shown to give the people of Nebraska something of an insight into the methods of modern railway construc- tion and operation. This case was decided in favor of the plaintift by the supreme court a few weeks since. John Fitzgerald is well known to the peo- le of Nebraska as a rallroad builder. He has probably built more miles of railroad in the west than any one man, and at one time he had amassed a fortune by his opera- tions, and is still reputed one of the wealth- fest men In the state. In 1886 Mr. Fitz- gerald transferred the scene of his large operations from Nebraska to Kan: Form- ng a copartnership with S. H. Mallory of Towa, he undertook the construction of a lino of railroad through southern Kansas from the eastern boundary of the state to the Colorado line. This road was at first known as the Denver, Mem- phis & Atlantic, and was ostensibly organized as an original enterprise by parties who contemplated a line from Paebl Colo., to Memphis, Tenn. That the company Was really a creation of the Missourl Pacific Rallway company will be developed by atten- tion to the details of the project. On April 28, 1886, Fitzgerald and Mallory entered into a contract with the Deny Memphis & Atlantic Railroad company. that contract they agreed to construct the line from one end of Kansas to the other. They were to furnish all material and money, to do all the grading on the right of way, which was also to be pald for by themselves, furnish the rails, ties, ete., bulld all bridges, depots, sheds, sidetracks, ete. In addition to building the road Fitzgerald and Mallory agreed to equip the line with rolling stock to the value of $1,000 per mile as fast as the road was completed. For compensation they were to recelve the stocks and bonds of the new company at the rate of $16,000 per mile of capital stock and $16,000 per mil of first mortgage bonds. In addition to this remuneration Fitzgerald and Mallory were to receive all the bonds voted by county and municipal governments along the line of the proposed road In aid of the enterprise THE COST OF CONSTRUCTION, upon and In So far there was nothing in the contract that would open the eyes of the public as 1o the cost of rallway construction and equl ment. The public has been taught to be- liove that a western rallroad running over the prairie cannot be constructed 000 per mile. But mark what the foolish Messrs, Fits- ‘ and | oquipped for less than from $30,000 to $35,- | JULY 22, 189t gerald and Mallory did They signed an- other contracts on May 4, 1886, just six days after they signed the first contract. The second contract was with the president of the Missouri Pacific, the late Jay Gould. By this contract Fitzgerald and Mallory agreed to surrender to the Missourl Pacific all the stock and bonds of the proposed Denve Memphis & Atlantic Rallway company amounting to $32,000 per mile, and to go ahead and constrict the road according to the terms of the original contract for the consideration of $12,000 for every mile of road constructed and equipped. — The $1 000 per mile were to bz pald in the shape f Missourl Pacific 5 per cent bonds, secured the stocks and bonds of the proposed ver. Memphis & Atlantic railway ow see Just how foollsh and sighted Messrs, Fitzgerald and were They voluntarily surrendered a contract which they to recelve $32,000 per mile for constructing a certain railroad, and then bound themselves to go ahead with the construction of the same road under the samoe conditions for $12,000 per mile A clear loss of $20,000 per mile to Fitzgerald and Mallory rhaps it may be ima two well known and succ tractors backed out of thelr contract. But ¢ did nothing of the kind. They simply ad and bullt the road clear across the state of Kansas from to west and started the to running, and they are both of them millionaires yet With thess two contracts coples deposited wherever necessary truction of the road commenced. The stocks and bonds of the Denver, Memphis & Atlantic Railway company (an entirly fletitious corporation) were duly issued, signed and scaled at the office of the Denver, Mem phis & Atlantic Railroad company? — No. They were issued and signed in the offic of the Missouri Pacific at New York and the evidence and the findings of the district and supreme courts show that the so-called Denver, Memphis & Atlantic Railroad com- pany never exercised any control or posse sion of the sald stocks or bonds, The bonds were issued by the Missourl Pacific under the cover of the thinnest kind of a subterfu BOGUS STOCKS AND BONDS The bogus stocks and bonds (for by decisions of the courts the issue of was entirely fraudulent) once issued placed in the hands of a truste and construction of the road commenced. First the work was taken out of the hands of Fitzgerald and Mallory and placed under the control and direction of the Fitzgerald-Mal- lory Construction company. This company was organized with a capital stock of $1,- 500,000 and the shares were held by the following members of the company: John tzgerald, 1,600 shares; S. H. Maliory, 1,- 0; Jay Gould, 4,000; Sidney Dillon, 1,000; Russell Sage, 2,700 Morton, Bliss & Co., 00; George Gould, 500. It ‘will be thus seen that Fitzgerald and lory, who ostensibly built the road, held but a small interest in the contract and that it was owned and controlled by uld, Russell Sage, Sidney Dillon, and others, whose names have been tolerably well men- tioned in connection with the Missouri cific directory for many years. The construction company at ceeded with the construction of The line was built from Chetopa, Kan., to Larned, Kan., a distance or 272 miles, and from McCracken, Kan., to the Kansas-Colo- rado line, a distance of 138 miles, making a total mileage of 410 miles. The first ten miles were completed on June 15, 1887. A month later thirty miles had been com- pleted; on February 14, 1887, a total of 150 miles were ready for operation, and on August 1, 1887, the entire line of 410 miles was ready for the acceptance of the Missouri Pacific. By December 15 of that same year the Missouri Pacific did accept the entire sy tem, together with a number of branch lines constructed on the same basis. Of course the money for the construction of such an immense system was promptly forthcoming. Steel rails and oak tie not be bought upon extended credit and track- men and graders do not work on promises to pay. The Missouri Pacific furnished the 5 per cent bonds to the amount of $12,000 per mile, as agreed upon. Of course the bonds had to be converted into cash. This was accomplished more readily than one might imagine, in view of the condition of the bond market. Although Missourl Pacific b per cent bonds were worth 100 cents on the dollar at the time on Wall street, the Mis- souri Pacific graciously bought its own bonds at a discount of only 10 per cent, the entire issue being taken up by directors of the Mis- souri Pacif 90 cents on the dollar. Thi really left the construction company but $10, 800 per mile with which to construct a rail- road system reaching 100 miles across a great state, Just think of it, $10,800 per mile for buy- ing right-of-way, grading, buying steel rails and oak ties and laying them on the grade, building bridges and culverts over streams and rivers, building depots for the accommo- dation of freight and passengers, construct- ing side tracks and stock pens, coal chutes water tanks, roundhouses and turn table The Fitzgerald-Mallory Construction com- pany did all this successfully and, to all evi- dence, made a profit on the work. No men- tion is made of the agreement to equip the road with rolling stock to the extent of £1,000 per mile, because the construction com- pany was afterwards released from this obli- gation. “SPECULATIVE CONSTRUCTION.” Having traced the history of the case so far, let us see what the first practical re- sults have been. The Missourl Pacific has added 410 miles of well constructed railroad to its southwestern system at a cost of $10,- 800 per mile. On the qther hand it has re- ceived in stock, *‘fully paid up,” $16,000 per mile, and in bonds $16,000 per mile. The road cost the company $4,428,000 and the com- pany received back In stocks and bonds $13,120,000, a clear profit to the Missouri Pacific of §8,602,000 on the transaction. This is called “speculative construction.” Perhaps the reader may imagine by this time that the Missourl Pacific directory was satis fled with tha tolerably remunerative profits on its speculative venture. But if so, the reader hardly appreciates the uniimited ca- pacity of the average Missourl Pacifle dircc- tor for absorbing profits. The $8,602,000 made by the construction of the Denver, Memphis & Atlantic was but a small portion of the real profit made on the deal. According to the report of the directors of the Missourl Pacific railroad, extracts of which will be found in Poor's Railroad Manuel for the year 1888, the following operations had been decided upon: “In 1886 the Missouri Pacific Railway com- pany began the construction of a series of branch lines and extensions in order to pro- tect the company's property and insure its tuture growth.” In pursuance of this policy the company aid construct & branch line system, of which the Denver, Memphis & Atlantic was a part, The total mileage so con- structed was 1,073, and the total cost was Those are the figures furnished Poor's Manuel, and the reader who knows anything about Henry V. Poor knows that he never goes back of the returns furnished him by the railroad directors. So the figures given to represent the cost of the branch lines and extensions may be considered perfectly re- llable from a raliroad standpoint. There is not the least probability in world that the figures are too low. Now, mark what the directors of the Mis- sourl Pacific do first. We quote again from Poor's Manuel: To meet the expenditures the capital stock was increased from $30,000,000 to $45,000,000, )t which there was outstanding December 81, 1888, $43,974,850."" The capital stock creased to $50,000,000, penditures.” So, In order to build its branch line sys- tem, the Missouri Pacific lssued new stock to the amount of $20,000,000. The system {tself cost a trifle more than $20,000,000. The construction of the Denver, Memphis & At- lantic a part of the plan and according to the report of the directors themsel the cost of this road was met from the pro- ceeds of the new lssues of stock HOW THEY PAID FOR IT. Having thus taken another step, let us see how much the Denver, Memphis & Atlantic system cost the Missourl Pacific officials. First—It was pald for by new issues of stock, scld to directors of the Missourl Pa- cific below par. Second—It was paid for by the Issue of & per cent trust bonds to the extent of §12,000 per mile, Perbaps It may be seen farther on that the road was pald for twice. It certainly looks so at present, but it will be demon- strated that the road was pald for but once and that the directors of tie road who bullt short. Mallory by fned that the: ssful railroad con- ecast and con signed th the both were the once pro- the road. the was subs to meet cost uently in of ex- THE the line not only pocketed the proceeds of the additional stock Issued, but really robbed the Missouri Pacific stockholders of a part of the trust bonds issued But before leaving the subject of the trust bonds, let us digress but a moment. There were $14,000,000 of these b per cent trust bonds. The directors of the company report with a ccmplacency that brooked no conceal- ment that “the company has in its treasury as an offset to the foregoing construction ac- counts and inclusive of the securities under- Iying the trust cent_bonds, $29,000,000 of first mortgag \ds of the branch lines and $66,5: nomtnal value, of shares This means that every one of these branch lines were organized as independent systems by men who acted as mere figureheads of the Missourl Pacific wreckers. It also means that these branch lines so organized were capitalized to the extent of $66,537,607 and bonded for $20,000,000, every dollar of. which capital stock and bonded indebtedness was absorbed by Missourl Pacific officials before the Missourl Pacific showed itself in the transaction. It means that these shares and bonds had been sold to fnnocent third parties, to use the legal term, and that the investing public had been swindled out of nearly $90,000,000. And it means that the patrons of those branch lines were called upon to pay interest and dividends on this enormous mass of fictitious liability Is it small wonder that rates were “low that the company was unable fixed charges? STILL MORE RASCALITY. It was stated in this article that the money for the construction of the Denver, Memphis & Atlantie raflroad was promptly forthcoming. This statement needs some qualification. ~ An investigation of the facts proves that the directors of the Missouri P: cific who had agreed to turn over $12,000 of Missouri Pacific bonds for every mile of the road constructed parted with these securities with a reluctance that was pregnant with method, So slowly was the money advanced that it became necessary to borrow money to pay for labor and material. This money was borrowed from different persons, but ail of the lenders were stockholders in the Fitz- gerald-Mallory Construction company For instance, Jay Gould himself loaned the construction company $2,500,000, for which the construction company afterwards voted him and paid him interest to the amount of 62,000 out the proceeds of the bonds finally turned over to the company. To understand the matter thoroughly It will be necessary to look through the records of the directors’ meetings. Fortunately, these records are at hand. First, let it be explained that in addition to the Denver, Memphis & Atlantic railroad, the Fitzgerald-Mallory Construction company also built for the Missouri Pacific system certain other branch lines upon terms prac- tically similar to the ones upon which the original road was built. By reason of the construction of these additional branch lines the entire amount of Missouri Pacific bonds due the construction company, including those for the building of the Denver, Mem- phis & Atlantic, was $6,500,000. Of these bonds, $5,000,000 were disposed of from time to tinie by the orders of the board of direc- tors of the construction company. When the s completed the records showed eeds of the sale of the $5,000,000 bonds had all been exhausted, leaving $1,500,- 000 in bonds yet on hand. On September 22, 1887, at a_meeting of the directors of the Fitzgerald-Mallory Construction company, it was unanimously voted, on motion of Sidney Dillon, that a dividend of 100 per cent on the stock of the company be declared, payable in Missouri Pacific 5 per cent bonds. Here were the directors of the Missouri Pa- cific acting as directors of the construction company, deliberately robbing the Missouri Pacific of $1,500,000 and putting that amount into their own private pockets. This, it will be remembered, is a part of the proceeds of what is known in inner rail- way circles as “speculative construction.” There were a number of minor transactions which go to prove that Jay Gould, Russell Sage, Sidney Dillon and their co-laborers in the field of speculative construction were not out for their health. For instance, ,the Missouri Pacific trust bonds were sold to themselves at a discount of 10 per cent. There was a rakeoft of $500,- 000 on this item alone. PINCHED THEM AGAIN. Then again the Missour! Pacific agreed to transport material for the construction com- pany at a rate of three-fourths of a cent per ton per mile. When the bill was rendered it was discovered that the construction com- pany had been charged 3 cents per ton per mile. The overcharge amounted in the aggregate to $318,763.56. But in the meantime the interstate com- merce law had gone into effect. This made a_material difference, for the Missourl Pa- once raised a technicality. The nal rate of three-fourths of a cent per ton per mile was clearly a special rate granted to the construction company by Jay Gould himself. The interstate commerce act abolished all special rates and the Missouri Pacific management took advantage of the technicality to make an overcharge of $318,- 763.50. There are numerous minor steals in the history of the relations of the two companies, but compared to the main transaction they are of too trivial a nature to be referred to. The supreme court of Nebraska after con- sidering the case for more than six months rendered an opinon in which the Fitzgerald- Mallory Construction company was given a judgment against the Missourl Pacific for §764,942.08. The opinion was written by Hon. Frank Ryan of the supreme court com- mission and concurred in by the supremc court itself. The two other commissioners, Hon. Frank Irvine of Omaha and Hon. J. M. Ragan of Hastings, dissented from the opin- fon prepared by Judge Ryan. A review of the dissenting opinion will be unnccessary, for the material facts in the history of this most gigantic of all the frauds ever perj trated in the history of the railroad develoy ment of the west are not altered. But for the purposes of this article the comments of Judges Irvine and Ragan upon this case are worthy of the most serious and careful consideration of every citizen of the state as well as of the west. After reviewing the interests joined in the case, the dissenting opinion comments as follows: REBUKED BY THE “From these already 50 to COURT. observations and from facts upon which they are based the following conclusions seem inevitable. The whole business amounted to a device of the Mis sourl Pacific, or those having its control, to construct certain railroads in Kansas and Colorado, issue stocks and bonds vastly in excess of the value of the property, so man- ipulate them that whatever earnings might accrue would pass to the Missouri Pacific or to those favored stockholders therein, sc that the Missourl Pacific and those stock holders should receive all possible benefits from the transacticns and at the same time assume no burdens, leaving all the financial responsibility upon the construction com- pany and all the legal responsibility upon a rallroad company in favor of the state upon those local corporations which have been heretofore styled the original com panies and which ‘it is perfectly fair to characterize as purely paper and fictitious concerns and irresponsible devices for the purpose of exercising the rights granted by the states and assuming the obligations im posed upcn such corporations by the state and so relieving the real projector and pro- moter of the scheme from all actual re sponsibility. “The overissulng of stocks and bonds is in itselt a serious and probably sufMcient reason for characterizing the transactions as fraudulent. “The advantage stocks and bonds 1s who has ever been gate contracts of corporations and thos familiar with questions lately arising in regard to the reasonableness of rates fixed by the legislature or by commissioners for the carriage of frelght and passengers. Such overissues are perniclous in effect and in- defensible upon principle. No honest mo tive can be ascribed to such acts when knowingly committed Such instruments partake of the nature of false tokens. They are the instruments of deception and fraud They are intended to, and usually find their way Into the hands of innocent purchasers who ultimately find that they have parted with their money in exchange for depreciated securities whoso actual values, owing to the gigantic nature of the enterprises upon which they are based, and usually the remoteness of the fleld of operation, these purchasers are unablo to investigate. They lead to corporate bankruptey and often to the bankruptey and distress of inves tors. They form at once the urgent mo tive and the plausible excuse for excessive and unreasonable charges upon the patrons of the system in order to secure sufficient earnings to pay interest and dividends upon securities in excess of the productive capi tal invested, from ‘an manifest lled upon overissue of to any one to investi- TRUMPET OF DAME GRUNDY OMAHA DAILY BEE: SUNDAY, Weller's Famous Advice Reversed to Read Beware of VidZlerers." A SKELETON IN THE WIDOWER'S CLOSET Ano! Annn Gould the K tentl |y berg ~Words her Case of Boodle Drawing Ble ciplent of Murked Ate edo Wao Vo for to take advice tastes, world has Always better that digests Louise Betts looked seri- Weller slow than it Edwards the ously on the famous wa “Beware of the vidders!"” Consequently, were a second prophet to arise In his shoes and the marrying sisterhood to beware of the widowers, who would heed him? Indeed, 1s ther common proverb—set in eir- culation by crafty members of the widowers ake the writes never \ing of Mr. warn not a no doubt p:rsuasion—that best husbands? It is very hard to write of the widower and show him sufficient We of us who do not marry him— are apt to be un fair to him. He has every right to mourn nd every reason; and if his lamentations are more open and his bleeding heart takes a more prominent position on his sleeve than that of the bereaved wife, the differenc Is one of sex, and cannot be quarreled with. And Le has still more right, and still reason, to marry again if he chooses because he usually does choose, shall we, the flatter:d sex, indulge ungratefully in sar- casm? Habit is hard to break. and broken leaves us helpless; and it is doubtless nature” provision for superfiuous woman that when a man has grown accustomed to being married he finds singleness anything but blessedness. resp those on more to and the The girl who marries a widower need not think herself entering Into a path of roses whose seeds were thoughtfully sown by her predecessor. If he is aigood husband, it is in spite, and not because of his experience, and as for his having learned to understand women, the point always plead in his favor, that's exactly the trouble. ~Every joint in th feminine armor he has learned, and has a pebble to fit; he Kknows every approved method by which lovely woman gets her own way—and the antidote; while for getting his own way he has a vast fund of experimental knowledge to draw on. He has learned that a woman is not an angel—a dangerous point of enlightenment for a bridegroom to begin at—and that a man need not be one or any- thing near one to keep the affection of the all-enduring sex. Then—and this is not sentiment but plain fact—there is the spectral figure which (If I might say it without too hopeless a mix- ing of metaphors) invariably sticks in the throat of number two. I needn't say that it is number one. The woman hasn't been born who enjoys the thought of having a predecessor, or if she has, she has been re- moved to mor.appropriate surroundings and fitted with a crown and wings. Outside the comic paragraphs, I deubt if he audibly compares and quotes number one to her; inwardly, he can't help but do it, either favorably or unfavorably. And though the last state is, of course, much worse than the first, few of us would care for exactly the same foundation for our happiness a Helen Mar, the heroine of the immortal “Scottish Ciifefs,” on whom the noble Wallace bestows a temperate affection which cheers, but does not inebriate, based on her re semblance to his lamented Marion That's all. Who would dare to say more. with the noble army of consoled widowers gazing reproachfully at her and their brides indignantly inquiring: “Do you think I care for a word you say?" Bless your hearts, did you think I thought wou would? Go aliead, by all means, fol- lowed by every grain of rice and old -shoes on the premises—you'll need them all! All Paris Is talking of the very marked tention paid by Prince Francis Joseph of Battenburg to Miss Anna Gould, daughter of the late Jay Gould, whom he met for th first time at a grand dinner given by Mrs Ayer of Boston in the Bois de Boulogne, at the Pavilion d’Armenonville. Indesd the possibilities, and it may by added the proba bilities, of ‘a match between the American heiress and the young prince are being freely discussed on the banks of the Scine and in London. From a social point of view it would be undoubtedly the most brilliant match ever made by an American girl, says a recent Paris dispatch to the San Francisco Ex- aminer, for it would make her a sister-in- law of Queen Victoria’s youngest daughter, Princess Beatrice, who {s married to Henry, the elder brother of Francis Joseph of Bat- tenberg, and she would become a cousin of the emperor of Russia, the father of Prince Francis Joseph having been the favorite brother of the late czarina. In the event of a union of this kind there would be no such obstacles raised or the score of the difference in rank as in the pro- jected match between Prince Isenburg Fiers ten and Miss Pullman, for whereas Prin Isenburg belongs to a mediatized family. Prince Francis Joseph of Dattenharg is merely the offspring of a morgan atic union between his father, the late Prince Alexander of Hesse, and Mme. Hauke who was of Jewish origin, and who was rub- quentiy creatcd by the emperor of Austria princess of Dattenberg in her own right There could be no question, therefcre, of Prince Francis Joseph's contracting a mor- kanatic alliance, as his wife, no matter what her birth and origin, would be recog- nized at all the courts of Lurope &s a princess of Battenberg. Prince Joseph has absolutely no money ‘of his own, no carcer open to him and no fu ture save the possibility of a_ marriage with a rich wife. He formerly had a commis- sion in the Prussian army, but resigned it well as all his prospects of advancement in_order to accompany his eldest brother Prince Alexander, to Sofla, on tho latter being elected ruler of Bulgaria. When Prince Alexander lost his throne his young: brother was, of course, forced to leave the country along with him, and while the elder of the two had a fortune of his ow part of which had been bequeathed to him by his aunt, the late rina, whi favorite nephew he was, Francis Joseph had nothing, and became dependent on the charity of his relatives. Nor was his position improved in any way by the death of his father. The latter left uls entire fortune to the.elder of his sons, Prince Louls, who is a captain in the English navy, deputy inspegior, of fortifications at the” British admiralty, ;and married to a granddaughter of Queen Victorla, sister of the grand duke of HessgDarmstadt. Francis Joseph, who by the way is a god- son of the Austrian emperor, has an allow- ance of about $1,000 & year, and this Is probably the reason why for some time past he has been conspicyous among the chasseurs de dotsker (heircss hunters) at Paris, spend- ing most of his time, when not paying a visit at Battenberg, Windsor or Osborne, as the guest of his brothep Henry and of the latter's mother-in-law, Queen Victoria, Prince Henry himgglf was an heiress hun- ter at Paris prior to begoming the husband of Princess Beatrice, and was on the eve of becoming the son-in-law, of Mrs. Mackay Indced, there is a large mumber of American lelresses who have refused Prince Henry before he was accepted by Queen Victorla's youngest daughter, and became Knlght of the Garter, a *royal highness,” and a full- fladged colonel in the British army, whose recent coming has created such a pleasurable stir in England, finds his small hands filled with the accu mulated burdens of his august inheritanc Fortunately, the tiny brain does not have to reason it all out, says the New York Times, but his young mother must wish sometimes that fewer cares of state intruded upon her delighted enjoyment of this, her first-boi All his environment Is ancestral and in closo touch with his distinguished lineage. dven the swinging cradle In which the wee boy takes his long baby sleeps has held the infant forms of many of his royal grand uncles and aunts. It Is the one the queen had In the royal nursery for her own chi dren, and it is deemed proper and suitable that' this important successor in the line The royal baby, should heredity. The cradle swings from a graceful frame of rich old mahogany Inlaid with geld. Draperfes of handsome brocade of a deli- cate pearl tint are attac and_used to shut off intrusive draughts, The sheets for this downy nest are of fine Irish lawn, lace trimmed, the blankets are softest embrofd- ered Pyrenean wool and the coverlid matches the pearl brocade. The crown and three feathers which surmount the framework are further typical of the royal state of the small occupant, whos. baby eyes look out on many such suggestive emblems. The layette of the litile prince | farly delicate and dainty. Irish lir Spitalfields silk were used whenever it possible, and of the lace comes from Northampton. The work s exquisitely fine the robes given by the queen being pecul ly lovely. One rcbe is of Irish lawn hand- embroidered, and as fine in texture as the famous “woven wind” of India, and the other a rich cloak and hood of pure white zibelline, a beautiful silken material tiny hood forned with prince of Wales feathers in pure white ostrich tips. have a resting place dignified with pecul and was some immer dresses run mostly to ribbons You buy your ribbon, and then, if you have any money left, you buy a dress to wear with it, says the Boston Advertiser. A pretty bboned ' dress is m f cream challic with cream ribbon garr and incidentally, some lace, The challie, which is of the fine French manufacture which wears like fron and washes like muslin, is made with a plain flaring unlined sk'rt and a plain bodice gathered slightly at the waist into a belt; the sleeves of leg-of-mutton puffed on a thin lining. The bottom of the skirt has a row of cream wash ribbon put on in small Vandykes, and above It a scc ond row in long Vandykes that reach half way up the length of the skirt. At the top and bottom of these Vandykes a bow of the ribbon, which can, of course, be taken off when the dress is done up. A pretty cotton gown can be fashioned out of a soft pink zephyr gingham. The skirt, cut clear to the ground, is trimmed with 'four rows of white beading put straight arqund, and four rows, put on above, slightly lifted on the left side in simulated skirt fashion, where it is embellished a bow and ends of ribbons The neck of the bodice is low, and has double ruffles of with rows of the beading, on the edge, and slightly vandyked on the front. With long white gloves to meet the short puffed sleeves and a white hat trimmed with pink roses and black velvet, this makes an ideal gown for a lawn party. over with made a little the gingham onzales Hermosillo has been Diaz to the office of of Teocaltiche in Miss Maria G appointed by President postmistress at the town the state of Jalisco. Miss first woman that was ever appointed to an office in Mexico and the new departure has created a sensation among the women of the republic and probably marks the beginning of the woman's suffrage movement in Mex- ico. A correspondent of the Chicage Times ays that there is a sincere desire on the part of President Diaz and other high government officials to Bive the women a chamcs to enter upon nmew and broader ficlds of labor and usefulness, but the women are reluctant to ignore traditions and defy custom by secking entrance to new occupations. There are no societies in this country which have for their object the assisting of the women in having their rights recognized. It is be- lieved that the federal government will fol- low up the appointment of Miss Hermosillo with other appointments of women through- out the country to such positions as they are qualified to fill. 1f this is done the state governments would scon fall into line, and it would not be a great while before the doors of the mercantile and industrial estab- lishments would be thrown open to women smpress Bugenie, who was always the guest of the De Mouchys when she passed through Paris, has been on the occasions that she v our Ville Lumiere forced to put up at the Hotel Continental like a simple Cook’s tourist, where no one recognizes in the lame, old, broken woman, the once radiant empress of the French, says a Paris letter writer, quoted in the Phila- delphia Press. The old prophecy that used to affright her so, that her faie would be sadder than that of Marie Antoinette, some people think has been realized in her case, as she has outlived all that seemingly makes life worth living. However, luckily to herself, she does not agree with the sentimental theories of the outer world, for to an intimate friend she said the other day, “although I now drift on a sea of sorrow between two coffins’—a royally bad metaphor—"still I would not change lots with any one, for I have been the most radiant and courted of sovereigns.’ he lives in her past now, having alienated most of her {riends by her temper and her avarice. She was the curge of her dynasty, the instigator of the Franco-Prussian war and the direct cause of the Prince Im- perlal’s fatal expedition to Zululand, whither she drove him by her penuriousness and ceaseless exactions. That she is unconseicus of her own share In the ruin of her family is much the better for her; still, when she crawled past us at the Continental the other day all those who recognized her looked with a certain scrrow at the wreck of the most successful adventuress the world has ever known. York Advertiser d; whether the heroine of the little given below ever smiled again and its readers are still groaning in suspease. Thus runs the ohly heart-rending romance of the age: Hihe sun had sunk behind the hills, aud far and wide the purple gbadows thickeued into night. By the trellised gate, in the gloaming, the young man met the maid. Sweet and fare she was, strong was he. It was a new world to them now, for orly the evening before he had claimel her as b own, and she had acknowl2dged the cliim Is there a sweeter mom=nt in Lfe than this? He had not t say rawanc The New and brave and cen her all that day, and row this mecting came to her like a Lenwsen. “It has been the longest day in the year,” he said as he clasped her in his arms. How nice it was of him to make this re- mark. She loved him for it. The day had been long to her, as well. “Dear heart,” she sighed, and close, “why has it been so long Of ‘course she knew what answer he would give, but it is always sweet in love to hear the loved one tell what each one knows so well. '"Twas this that made her ask. Why has it been so long?" “Because—because,” he murmured, dally- ing with the thought, “because it Is the 21st of Jun And 0 her heart went broke on t cuddied fashion has reached and many of the Italian ladies m flying about on their wheels American women of fashion they ride enly in the early morning, «nd they do not ajpear in the public promenides, but enjoy ihe sport in some of the pretty parks and @rc just outside the city. Roman ladics ara fond of early morning strolls, and a correspondent deseribes a tollet which Is much worn by them befure noun It is of thin, coarsely woven, white waterial, and s cmlacatiy sensibly simple, ~ The skirt nas one, or at mmost, narrow frills of he sam2 al around the hem and the jacket is coat shaped and open in the front, showing a full shirt of white or colored cambric. The belt is of tan-colored leather, and the shoes and gloves are also tan colored. A coarse straw hat, with a few wild flowers car lessly grouped on the brim or a couple of blackbird's wings or a flight of butterflies compl.tes the toilet. The leather belt Is perhaps the most completely chic, but for young girls a broad sash cf soft surah, to matel the flowers in the hat, is much worn A large sunshade of ecru silk, with natural hendle, 18 at once a picturesque and defense against the sun and the The bicyeling Rome be seen Like ihc wood practical dust One of the June bridal couples In ancther city was prominently identified with a gay soclety set. Their companions attempted some tall joking on the imporiant day, which the young groom was willing ty zccept, draw ing the line only at trunk trimmings, he sald forcibly, as that meant an emparrassment to his bride, which bz wouldn't b The he kept as ecareful wath as possible for every other scheme, notably that of som trifiing with th riege which should take them to the rafllway station. Ia clreumvent this he had a second carriage in walting around the corner from the bride's house where the reception was held, intending to make an exchange Into it It any favors or | ribbons appeared on the first cne Everything was entirely normal, however, when the newly wedded palr came out to set off, and in the usual shower of rice and old slippers they drove away. As the carriage approached ‘the station, however, the young groom noticed what he thought to be the stupidity of his coachman in taking a turn and relning up with the bride's side of the carriage at the curb. He jumped fn front of her to assist her out, wondering that the usually careful driver should bave done it He guessed the reason, however, when he turned and realized, too, why the porters and attaches were smiling broadly. One side of the carrfage was elaborately and tastefully decorated; the wheel spokes on the outside set with white rosettes made from white Japan ese paper napkins, and ribbons and bows at every possible point on harness and carriag care being taken that not a glimpse could be seen from the other side. A tip to the conchman did the rest to The action of Olive her marriage to Mr Olive Schreiner, and Schreiner, who, since Cromwright, I8 Mrs whose hushand has ngly become Mr. Cromwright Schre according to his visiting cards, has aroised no end of newspaper comment. One fournal find that ft foreshudows the com- lications the 2 s likely to encounter carly in the twentieth century. ‘“The bright est reputation, the greatest fortune, the strongest nature, will prevail, and many a man will be lost to fame and friends behind his wife's name, Cur niticts will arise There will ba pre-nuptial speculations among friends of an evenly-matehed pair as to whether the cercmony which unites John Smith and Mary J will produce a_couple of Smiths or Joneses. A mur will come to have all the zest and une of a horse race, and combinations sold on it Another writer there would be a family rivalry in names instituted by elist, and “new nities for divorce sufts Borden of mother were of much rininty will be finds it easy to see that fine and novel fleld for this change regarding the South African nov- and_inviting opportu nd bitter contests,’ also Lizzie A father and is the subjeet death of her parents s the Andrew Rorde bu ner of Anawan and South f the rooms in the building was occupied by the local branch of the Young Woman's Christian mperance union, of which Miss Borden was, before the tragedy, an_ active member. While Miss Borden was in Ta ton jail the socicty Joined with the Woman Christian Temperance union in passing reso. lutions of sympathy. Since then her case has been rigidly excluded from socicty de- bate, and several of the members have snubbed her. She felt that she should not put up with insults from her tenants, and accordingly the Young Woman's Christian Temperance union has been compelled to scek quarters elsewhere. Fashion Tips. Tinted tulle makes a cool lining for an openwork lac hat. Coat effects strongly rival round-waisted costumes at the various watcring places this season. Mousquetaire gloves of undressed in light tan and gray shades are still with street and church dresses Very handsome are the silk-embroidered nun's veiling toilets trimmed with ccru lace in rich Venetian guipure designs Negliges of more expensive character are made of satin de Lyon, with accordian pleated ruffles edged with ecru laca for garnitures, In Paris white gloves are worn in the day time with dressy summer costumes. Peari- gray gloves with black stitehing are next in favor. Long, white undressed kid gloves are worn with full dress toflets, with sprays of maiden- hair fern and brier roses as a_garniture for Leghorn, chip and Neapolitan hats. Pale epple-green and softest primrose yel- low is a favorite combination this season, also lovely tints in rose or pale pink in com- bination with deep cream or pale apricot. The new coin bracelets are a half conces- sion to the popularity of the bangle circlet, which is not now worn. They are made ap- parently of haif dollars cut into halves and struug on the bracelet, with the straight and curved edges alternately out. A new shade in Paris is pelure d'ognon, in’ plain American, “onion peclings.” As usual, it is correctly named, for it holds the tints of the inner sheddings of the Bermudas —vegetable to perfection—from a pale green white to a limpid silver. Dotted crepon is still cne of the popular fabrics for summer, and is used by brides for calling dresses, dinners, etc. Silver blue, mauve, gray or old rose are popular tints. The overskirt with a row of lace insertion r an inch wide galloon is a favorite trim- ming for these gowns. Charming neglige waists of India mull and batiste are cut like an Eton jacket in the back, with long shawl-pointed fronts to be knotted like the ends of a fichu, These are trimmed with insertions and edgings of fine Valenciennes-patterned fancy lace, and have elaborate decorations about the neck and shoulders. Beige-colored crepon trimmed with guipure and velvet ribbon is a favorite beach for afternoon wear this season. It often an Eton jacket made wholly lace, but more frequently the lace forms epaulets or bretelles falling deep and full over the sleeve tops, the velvet girdle finished wi'h rosettes both back ‘and front. Changeable pin-dotted summer silks in soft summer tints are made with a belted waist with ecru lace yoke and bertha, and ored skirt trimmed with a lace flounce. The bell skirt is revived by Felix and other ar- tists for dresses of this sort, fullness at the edge being imparted by flounces, ruches or single rows of wide velvet overlaid with ecru guipure Fall River, murd:red comment Lecame Iding, at the cor. Main streets. One whose in 1802, By the heir to and _beautiful traw bonnet or kid used Feminine Notes, Cold asparagus with French now served as a first course at luncheons and dinners, Mrs, Martha G. Kimball, who lately died in Philadelphia, was the first person to sug gest the observance of a national Decora- tion day There is a report that Miss Vanderbilt, who is now In Paris with her parents, s engaged to the eldest son of an Irish noble- man and diplomat. The queen of Greece admiral in the world, vegular examinations and is able to navi- gate both sailing vessels and steamships. It is & good plan these hot, humid days to Keep a box of lime in the kitchen pantry as a purifier, and the 1st of August is not a whit too soon to begin the use of boflcd water as a precaution against fall fevers, The Infanta Eulalic must sigh at times for the royal hospitality of her American visit, Her pension nas been reduced, and she has gone to London, where she will live cconomically and bereft of much of her state Wellesloy girls found skirts much “in the w * when boating on the lake, and finally discarded them altogether in their rowing shells, their substitute being a very modest and tasteful adaptation of a gymnasium sult, After a long fight Mrs. Bilva Lockwood bas secured, through her cou ki decision from the courts permitting her to practice law in Virginia, and, of course, with her, any woman who can’ pass the examination necessary. One after another naries of this dcors for the aressing 1s or appetizer is the only woman She has passed the semi their the country weological are opening admission of wom The Cumberland Presbyterian seminary, at Le- banon, Pa., is one of the last o fail in line in this matte Sarah Bornhardt has not lost all her ec centricities, though she no longer sleeps in @ coffin. She appeared at a London recep tion the other afternoon—a very warm aftor oun it was, too—in a sealskin coat down to her heels, with high puffed sleeves b way of additional fur Frau Prof. Von Gizyskl of husband 18 the profe of ethics’ in the university, has formed a commission of German women to visit other countries for the purpose of studying the woman qu tion. Two of thess ladies are now in Lon don, Frau Hanna Bleber-Boehm and Frau Jeunette Schwerin, Says Mr. Howells In his “The higher education is part of the social ideal which we have derived from the past from Eurcpe. | . VISON Lot the life of lelsure, the life of the aristocrat which nobody of our generation lvads cept women. Our women rally hay use for the education of & gentleman, our men have none. Herlin, whose latest book sou but MME. M. YALE INDORSED BY CONGRESS, THE DRUGGIST® AND NEWSPAPERS OF THE WORLD, Id's Fair Medal and Diplomas Awarded. ME M. YALES WONDERFUL COMPLEXION REMEDIES. For Sale by Druggists Only. COUPON. M. Yule's Excelsior Complexion es for Purity und High-Olass 0 the Nutlonal Juages on Awards, marvelous beauty hi these reme At 4R « young and beauti- of 18, M. YALE'S own been eultivated with years of age she lool ful ny young beauty EXCEL SKIN FOOD, move wrinkles and A thin face plump. every Price Moth T nishes. Price tches and Sal- Absolutely $2.00 per ol to remove lowness and &l skin pure and free from Lot | case of Freckles Ine trated beautifier Im $1.00 per bottle. 101 HATR TONIC, The only medicine on_ earth known to return. Gray Hair 4 original and natural color without dye. Stops hair falling in 24 hourss: tes o lixuriont growth. Price, $1.00 per tle; 6 for $5.0, BXCELSIOR BLOOD TONIC, Purifies the Blood and Skin; acts on the liven, Price, $1.00 per bottle; 6 for 36.00. SXCELSIOR FERTILIZER. Cures constipation. Price, $1.50. EXCELSIOR EYE-LASH AND BROW GROWER. Creates n luxuriant growth, SXCELSIOR BUST FOOD. Develops a beautitul plump Price, $L60 and $3.00. GREAT SCOTT. EXCEL Price $1.00. neck and bost. on earth for the growth of superfluous hair. Price, $5.00. ALMOND BLOSSOM COMPLEXION CREAM. keeps the complextom ELIXER OF BEAU | Restores lost color to the skin, cultivates: natural rosy che $1.00, EXCELSIOR COMF SOAP, e, EXCELSIOR COMPLEXION FACE POWDER, SOLD AY ALL DRUG GISTS, A FULL 3 CARRIED BY KUHN & CO., and Douglas MERCHANT &'V 3 16th and_Howard:: KINSLER DRUG CO., " 16th and Farnam J. IUGHES, 24th and Farnam; GEORC DAVIS, Council Bluffs, and by’ all drugglsts, By wholesnle by E. H. BRUCE & CO, and RICHARDSON DRUG €O., Omaha. Mme. M. Yale, Beauty TEHPLE OF BERUIY, 146 STATE ST., GHIGAGO, IL. PUBLIC NOTICE, $50.00 REWARD. will be paid for the conviction of any one reprev. senting themselves as Mme. Yale or her agent. Mme. Yale has permanently closed her agency in this city and made arrangements with the druggists to control the sale of her remedies, Mme. Yale's remedies are sold and indorsed by all first class druggists. The public will eonfer a favor on Mme. Yale by notifying her of any statements made to the contrary. LJON¢s AND Leopards Perform at 3:20, 4:30, 9 and 10 p. m. today a$ Courtland Beach. MEYERS' AUTOMATIC BOILER CLEANER. Muanchester Mfg. Co., No. Munchester, Ind, strects, a Comptexion Special for removing all impuritiem trom_ boller; preventing ‘scaling, foamink, wlso tove all old scale, without the use of co ound or washing out. 8old strictly on guarantes fo give Watistaction, Correspondence solicit General _Western Office 105, Beo Bullding gnlulm. :ltb i 5 PARROTS, YOUNG CUBAN PARROTS ave arrived. Pr only $6 euch Do not forget that {ilese favored parrots are bug n few weeks e y year In Meason, Ana- that | you® canno Ohtain’ parrots - during - an other thme less than 312, Order quick and wocure & Bood melec N, Bach parrod Kol with n writien guarans fee 0 talk: GEISLER'S BIRD STORE, 416 N. 16th, Omuha, avings Bank Mechanical de S. W. Cor, 16th and Dodge Sts. 4 PER PAID ON BAVe INGS DEPOSIT 4% PER CENT 3 TO 6 MONTHS, 6 PER CENT. ON 6 MONTHS AND OV CENT INTEREST ON TIME CERTIFICATES= TIME CERTIFICATES= You unt dully only, Invited to come In and open an ace Banking hours 9 to 4 P, M. lay nights to recelve deposite Open Bat Gl b P M H. O, President, Vice FPes. Cashier, As't, Casblem DEVRIES, CADET TAYLOR W. B. TAYLOL, . A HANSEN,