The History of Jackson county, Missouri, containing a history of the county, its cities, towns, etc., biographical sketches of its citizens, Jackson county in the late warhistory of Missouri, map of Jackson county, Part 74

Author: Union Historical Company
Publication date: 1881
Publisher: Kansas City, Mo. : Union historical company
Number of Pages: 1068

USA > Missouri > Jackson County > The History of Jackson county, Missouri, containing a history of the county, its cities, towns, etc., biographical sketches of its citizens, Jackson county in the late warhistory of Missouri, map of Jackson county > Part 74

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One of the most exciting events since the close of the war occurred this year. It was the great railroad strike. which, beginning with the Baltimore & Ohio Railroad in July, swept over the country like a cyclone, causing much loss of property in Pittsburg and other cities, and demoralizing railway business serious- ly for some time. It reached Kansas City on the afternoon of the 23d of July, in the refusal of freight-train men to work further without an advance of wages. That night meetings of the strikers were held, and the next day a mob of lawless individuals, made up chiefly of idlers, paraded the streets and forbade working men generally to proceed with their work. This looked ominous, and aroused the people. Meetings were quietly held that night and measures taken to protect property. Capt. H. H. Craig promptly raised a company of men and had them sworn in as special police, to protect the city. This prompt preparation for the mob crushed the lawless spirit of that class of idle adventurers, who were evident- ly seeking to take advantage of the railroad strike, create disorder and destruc- tion, such as had prevailed in Pittsburg. The matter was thus confined to the railroad men and their employers, who succeeded in adjusting their difficulties so that freight business was resumed on the 30th of July. The passenger trains were not stopped at any time, as they carried the mails, and the strikers did not apparently seek a collision with the government authorities by stopping the mails. From this affair arose the Craig Rifles, which have since been quite an interesting military and social organization.

The Board of Trade Building, which had been begun in the fall of 1876, was so far completed that the daily meeting of the Board was removed to it July 28th. On the 2nd day of August the office rooms in the building were let at public auction, only members of the Board engaged in grain, produce, provision or

BANTA & BRAZEL SE KG

COATES HOUSE, KANSAS CITY, MO.

Kersey Coates, Proprietor.

Cor. Tenth and Broadway.

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HISTORY OF KANSAS CITY.

flour, being allowed to bid. The letting was at the rate of $13,270 per annum, or about twenty one per cent on the investment.

During the year 1877 there was considerable improvement in the city, re- lating more, however, to its general condition. The Board of Trade report for that year thus sums up some of its leading features :

" The population of Kansas City has been increasing rapidly for the past year and a half. The last estimate of population published in our city directory was in 1873, when it appeared that the population was 40, 740. I am informed by Mr. J. H. Ballenger, who compiles our directory, that the population in June of the year under review, was 41, 786, showing an increase since 1873 of 1,046. Mr. Ballenger also informs me that immediately succeeding the panic of 1873, the population fell off considerably-a fact attributable to the depression of in- dustrial interests and the cessation of public improvement. About July, 1876, this lost population began to come back to us, and by the beginning of 1877 the tenement houses of Kansas City were again full. Since that time, several hun- dred additional houses have been built and filled, and all vacant rooms over busi- ness houses have been occupied also : so that it is estimated that the new popula- tion coming within the past year and a half does not fall materialy short of eight thousand people.

" The movement of real estate likewise shows an improvement. There has not been so much improvement in the number of transfers, as in the better tone of the market, the higher valuation at which it is held, and the advance of rentals, which latter will average not less than fifty per cent.

" There has been no great enlargement of the industrial interest of the city, but estalishments previously existing are doing much more business and employ- ing a larger number of operatives, and are generally much more prosperous.

" The markets of Kansas City have experienced marked improvement during the year. The amount of property coming into them for sale has much increased, and, in many respects, was of improved quality. There has been an increase of merchants engaged in purchasing and forwarding the produce offered, and with the increase of men there was also an increase of money. The markets have been active during the year, and have sustained their former high valuations as compared with other markets."

The extension of transportation facilities, other than those mentioned already in this chapter, consisted of the extension of the Clay Center Branch of the Kan- sas Pacific Railroad to Clifton, and the extension of the Central Branch Union Pacific to Concordia. This latter road made its eastern terminus at Atchison, Kansas, but met with such competition in the Republican Valley, from the Clay Center Branch of the Kansas Pacific, that it was compelled to make rates to Kan- sas City, by the way of the Missouri Pacific from Atchison, and thus became vir- tually a Kansas City road. The Joplin Railroad was also built this year from Girard, on the Fort Scott and Gulf, and at the end of the year it was proposed to extend it to the line of the Fort Smith & Little Rock Railroad, in Arkansas, thus securing a through line to the Mississippi River at Chicot; by the latter road and the Little Rock, Mississippi River & Texas, which was then about to be completed between Little Rock and Pine Bluff.

THE EVENTS OF 1878.

The year 1878 began under very favorable auspices, and great activity and improvements were promised. These promises, however, were not fully realized, yet the year was an eventful one.

In January all the arrangements for the building of the extension of the Chicago & Alton Railroad were completed, except the procurement of the right- of-way through the city. An effort was made early in the year to find a route and procure right-of-way into the southeastern part of the city by the valley of

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HISTORY OF KANSAS CITY.

O. K. Creek, but it was found that the right-of-way was so expensive, and the grades so high, that it was abandoned, and about the Ist of July the company decided to adopt the route on which the road was subsequently built. Much difficulty was experienced in obtaining this right-of-way from the city, owing to the opposition of a few members of the city council. It was formally refused by a vote of that body July 17th, which led to a spirited public meeting at the Board of Trade hall on the evening of the 18th, at which the action of the council was severely commented upon by leading business men. The matter was brought up in the council again on the 8th of August and the right-of-way granted. The construction of the road meantime was progressing rapidly below, and on the 4th of December work was begun in the city limits by the contractor, Peter Soden.

BANK CHANGES AND SUSPENSIONS.

About the beginning of the year 1878 was a time of great strain upon the banking houses of Kansas City, owing to the fact that the winter was very mild and very wet, which retarded the movement of the grain crops, depressed hog packing, and hence the live stock market, and materially depressed all kinds of trade. Merchants and others who were customers of the banks could not, there- fore, meet their paper promptly, and, in addition to having to ask for extension, had also to seek further accommodation.

The Watkins Bank was consolidated with the Bank of Kansas City on the 8th of December, 1877, and from subsequent developments was not in a very strong position when it did so. This bank was originally established by H. M. Northrup & Co. in 1857, and was the first regular banking institution in Kansas City. It was conducted by Messrs. Northrup & Co. until 1864, when it was transferred by them to J. Q. Watkins & Co., and Messrs. Northrup & Chick went to New York, where they did a successful banking business until 1873, when they were so badly injured by the great panic of that year that they again came West. Mr. Chick became cashier of the Kansas City National Bank, which had been established in 1872. This bank was subsequently re-organized as a private bank, under the name of the Bank of Kansas City, with Mr. Chick as president. Thus the original bank, with the establishment of which he was connected in 1857, passed again into his hands, when the Watkins Bank was consolidated with the Bank of Kansas City in December 1877.

The event however that affected Kansas City most was the failure of the First National Bank, which occurred on the 29th of January, carrying down with it the Commercial National Bank, a fine little bank of one hundred thou- sand dollars capital. The history and character of the First National up to this time has already been given in these pages. It had come to be regarded as the great bank of Kansas City by all classes of people, and owing to its enterprising, liberal management there was not a line of trade, and scarcely a merchant or business man of any class, that was not indebted to it for favors. It had been its practice, since Mr. Howard M. Holden took the management of it, to foster all kinds of business. It had been a great promoter of the markets, and at this time was the leading source of accommodations for live stock and grain merchants and packers. Usually, in the latter part of the year it was liberal with these classes, and so enabled them to carry forward their business until they could begin to realize in the winter. The bad weather of this winter prevented them from meeting their engagements with it and its suspension was unexpectedly announced on the morning of January 29th. The same day the Commercial National closed, being weakened by a similar state of affairs and overborne by the drain that usually results to all Banks by the suspension of one so promi- nent as was the First National. This made a great sensation in Kansas City and the surrounding country, as the First National was the leading depository in Kan-

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HISTORY OF KANSAS CITY.'

sas City, for the country banks, but the sentiment of the people contained noth- ing of blame for the officers of the Banks. On the contrary, they were the recipients of universal sympathy for their loss, while the people deeply deplored the loss to the city of so valuable an institution. The expression of this senti- ment was so remarkable, and so different from that which ordinarily attends the failure of a bank that it merits a place in our history.

On the 30th of January, at a meeting of the Live-Stock Merchants, the following paper was adopted and signed :

KANSAS STOCK YARDS, January 30, 1878.

"We, the undersigned Live-Stock Commission Merchants, of Kansas City, Mo., in view of the suspension of the First National Bank, of our city, as announced in the morning papers, take this method of expressing our unquali- fied faith in the statement of the Bank officers that every depositor will be paid in full, and in this connection we wish to record our unbounded confidence in H. M. Holden, President of said Bank, as a just and upright man, of unimpeacha- ble integrity, and financial ability of the highest order, to which Kansas City and the country adjacent thereto as largely indebted for their rapid and solid growth.

[Signed] "W. H. Kingsbury & Co .; Quinlan, Montgomery & Co .; James H. Payne; J. T. Johnson & Co .; Gillespie, Reed & Co .; Shough & Clements ; Rogers & Rogers; White & Holmes; J. F. Foster; John F. Gregory ; Irwin, Allen & Co .; Rial, Cox & Co .; Stoller & Hill ; L. M. Hunter ; T. J. Allen; Barse & Snider; A. B. Mat- thews; L. V. Morse (Supt. Yards); Nofsinger, Harper & Co .; J. K. Proudfit ; W. B. Grimes."

On 'Change the grain merchants had a meeting and adopted the following resolutions :

"WHEREAS, Financial events in our city may lead to a feeling of uneasiness in business circles, and as this board has ample evidence as to the ultimate solvency of the First National Bank and the Commercial National Bank, therefore,

"Resolved, That our confidence in the integrity of the management of these banks is unimpaired, and we believe fully the statement of their officers, that all depositors and creditors will be paid to the utmost satisfaction of all demands, and we say this, that causeless panic and uneasiness may be prevented.

"Resolved, That such is our confidence in these institutions and their officers and stock-holders, that we hope for and desire an early resumption of business, and pledge ourselves to extend all the aid we can to that end-both to the man- agement and to the public."

At the annual election of the Board of Trade, about three weeks preceding these events, Mr. Holden had been unanimously elected president of that insti- tution. Hence, from a sense of delicacy, he sent his resignation to the board, on the 30th, the day following the suspension of the bank. This document was laid before the board on the Ist of February, when, on motion of E. R. Threlkeld, the board voted unanimously for the appointment of a committee to wait upon Mr. Holden and request its withdrawal. That committee in the discharge of this duty presented Mr. Holden with the following note, which further exhibits the sentiment prevailing in the community at the time :

" KANSAS CITY, MO., February rst, 1878.

" H. M. HOLDEN, EsQ., "President Board of Trade.

"Dear Sir :- At a meeting of the Board of Trade to-day, your resigna- - tion as president was tendered, and the undersigned were appointed a committee to return it to you with renewed assurances of our confidence and respect, and to inform you that it is the united wish of the membership that you reconsider your

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action, and withdraw your resignation, and that you continue in the office to which you were unanimously elected.

" We indulge the hope that you will cheerfully comply with this request. " Yours very respectfully,

[Signed. ]

"E. R. THRELKELD, N. J. LATSHAW, C. E. KEARNEY, J. D. BANCROFT, WEB. WITHERS."

A few days later, Feb. 4th, after people had taken time to reflect, the mer- chants and business men, who were not connected actively with either the live stock or grain markets, called a public meeting at the Board of Trade Hall, to express themselves concerning the matter. This meeting was largely attended and adopted the following resolutions :

"WHEREAS, A combination of circumstances which no reasonable sagacity could forsee or skill prevent has compelled the First National Bank of Kansas City to suspend, and

"WHEREAS, The officers of said Bank have assured the public that its assets are fully adequate to pay all depositors and creditors, and

"WHEREAS, The First National Bank has always stood ready to help the public and private enterprises of Kansas City and the adjacent country, and thereby has exerted a most potent influence in developing the business, commerce and resources of Kansas City and the country, therefore

-"Resolved, That we, the merchants and business men of Kansas City, inter- ested as patrons or depositors of the First National Bank, and in the interests and institutions effected by its suspension, have full and complete confidence in the officers of the bank, and in their assurances that all depositors and creditors will be paid in full.

"Resolved, That we believe the suspension of said bank was the result of circumstances that could not have been prevented, and that the officers of said bank are not in any respect blamable therefore,

"Resolved, That the loss we apprehend from said suspension is that incident to the reduction of our banking facilities, should the suspension become perma- nent, and the withdrawal, from the banking business in Kansas City, of the peculiarly wise and liberal management which has heretofore directed the affairs of the First National Bank, and though it exercised such a beneficent policy in developing the trade and commerce of Kansas City and the resources of the country commercially tributary thereto,

"Resolved, That inasmuch as we have ever regarded the First National Bank as peculiarly the friend of Kansas City, and the strongest supporter and promoter of our trade, that we cannot contemplate its permanent suspension and withdrawal from business except with apprehension of results of the most unfortunate character, and bordering upon public calamity, therefore we wish here to express our earnest hope that it may speedily resume business, and in that event we stand ready to give it the utmost support in our power."

The papers signed by a large number of depositors and expressing sentiments similar to the above were presented and read at the meeting.

The suspension of these banks was a severe blow to Kansas City. Owing to the mildness and dampness of the weather, merchants had been unable to dispose of the stock provided for their winter trade, and the products of the country were still unmarketed. Hence, in addition to being deprived of the assistance that might otherwise have been reasonably expected from the banks, the people sud- denly found themselves confronted with the necessity of repaying loans already secured, which caused no little embarrassment, depressed the markets, cut short the

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HISTORY OF KANSAS CITY.

supply of currency for a time, and stopped several enterprises which the people were inaugurating for the ensuing year.

THE BARGE LINES

Among the enterprises thus stopped, and the most important of all, was barge navigation on the Missouri River. The grain business had now attained such proportions that the people felt that this facility must be provided. To that end a meeting was held at the Coates House on the evening of January 17th, at which the matter was referred to a committee consisting of Messrs. H. J. Lat- shaw, C. H. Prescott, T. J. Lynde, R. W. Quade and F. J. Baird, for the pur- pose of maturing plans. Two days afterward, January 19th, another meeting was held at which this committee reported, recommending the organization of a Kansas City company with a capital of fifty thousand dollars, to own and operate the barges. The proposition was so favorably received that four thousand, five hundred dollars was subscribed at the meeting. Resolutions were adopted asking Congress for appropriations to remove snags and other obstructions from the channel ; and a committee of twenty was appointed to place the stock of the company. On the 20th this committee met at the Coates House and laid out their work, and on the 23d a large public meeting was held at the Board of Trade, which was addressed by Messrs. Col. Coates, H. M. Holden, Hon. Stephen A. Cobb, of Wyandotte, James M. Nave, H. J. Latshaw, Capt. A. J. Baker, T. K. Hanna, John Freeland and Capt. McClelland. The committee of twenty was making very satisfactory progress and had placed about twenty thou-' sand dollars of the stock, and had promises for ten thousand more when the banks failed, after which it was found impossible to place more of it. However, it was believed that the balance could be procured during the spring, and on the 12th of February a meeting of thesubscribers decided to organize the company and appointed Messrs. Latshaw and Lynde to prepare the papers. The work of this committee was reported at a meeting held February 14th, at which the com- pany elected as directors for the first year : Messrs. K. Coates, B. A. Sheidley, T. B. Bullene, T. J. Lynde, H. J. Latshaw, John Freeland, J. M. Nave, H. M. Holden, Thomas Corrigan, S. B. Armour, C. H. Prescott, D. B .- Powers and John J. Mastin. This company finding it impossible in the existing state of financial affairs to place the remainder of its stock, never filed its papers, but it partly accomplished its objects in another way. On the 20th of March, Messrs. Coates, Latshaw and Freeland went to St. Louis for the purpose of ascertaining if barges could be had. They did not succeed in finding barges that could be bought, but their mission brought them into communication with the Mississippi Valley Transportation company and with the Babbage Transportation company, and they both became so favorably impressed with the project that they sent fleets of barges to Kansas City that year. The first of these fleets to arrive at Kansas City was that of the Mississippi Valley Transportation company, and consisted of the steamer Grand Lake and three barges. It left Kansas City July 5th, taking out 83,540 bushels of corn. The barges connected with this fleet were very large for the river ; one of them left our wharf drawing six feet of water, yet there being a good stage of water at the time the fleet reached St. Louis in safety, and without material hindrance. The next fleet was the first of the Babbage company, and consisted of the steamer A. J. Baker and three barges. This fleet made three trips during the season. The first, July 27th, took out 62, 038 bushels of corn, the second, August 12th, took out 50,938, and the third, August 31st, took out 44, 198 bushels of wheat, and all were very successful. The cost of freight by these barges was, to the shipper, five and a half cents per hundred, including insurance, the railroad rate being about eight cents on corn and thirteen on wheat. It cost the barge companies about two and a half cents to carry the grain to St. Louis, and Capt. Lowery, of the Babbage company, estimated that grain could

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HISTORY OF KANSAS CITY.

then be carried from Kansas City to New Orleans at a cost to the shippers of seven cents, and pay a reasonable profit to the carriers. These facts were re- garded as a demonstration of the feasibility of barge navigation of the Missouri River.

THE FAILURE OF THE MASTIN BANK.

The city had fairly rallied from the effects of the failure of the First National and Commercial National Bank, when on the 3d of August the Mastin Bank failed. Prior to the suspension of the First National, that Bank and the Mastin were the two leading banks of the city, hence when the First National failed the Mastin took quite a leading position. Other banks, however, notably 'the Kansas City, and the Kansas City Savings Association, were brought into much greater prominence by that event. With the failure of the Mastin Bank in August these two became the leading banks. For a time, however, there was considerable embarrassment in business circles, for the lack of currency. The statement of the Mastin Bank at the time of its failure showed a large advance of money to the Water company and considerable investments in mines, and it was probably the tying up of its resource in this way, more than anything else that led to its failure. The capital of the other two banks mentioned was enlarged soon after the failure of the Mastin, and the Armour Bros. immediately began arrangements to establish another bank. This bank was opened for business on the 15th of September, in the room previously occupied by the Mastin Bank, in the Board of Trade, with A. W. Armour, Esq., as President, and C. H. Pres- cott, for many years previous auditor of the Fort Scott road, as cashier. It at once took a prominent position.

OTHER ENTERPRISES OF 1878.

On the 19th of January a number of leading citizens organized a Mining Stock Board for the purpose of locating here a market for Mining Stock. Col. C. E. Kearney was President, T. F. Oakes and H. M. Holden, Vice-Presidents, Col. John C. Moore, Secretary, and Mead Woodson, Treasurer. It tried to arrange for the opening of the Board May roth, but did not succeed, and before the close of the year passed into entire quiescence.

BLOODED STOCK SALES.

On the 15th of May there was opened here the first great sale of blooded cattle, the stock coming mainly from the blue grass regions of Kentucky. It was tried as a venture by parties owning the stock, and was so successful that it has been since maintained as a semi-annual sale. At this first sale two hundred animals were sold at an aggregate price of twenty-four thousand dollars. This and subsequent sales have brought into the country adjacent to Kansas City large numbers of blooded animals, the effect of which in the improvement of cattle is already perceived.

THE COURT HOUSE AND POST-OFFICE.

On the 8th of March, a bill authorizing the construction of a public building in Kansas City, for Post-Office and Custom House purposes passed Congress. It was introduced by Hon. B. J. Franklin, of this city, who at that time represen- ted this district in Congress, and provided for a building to cost two hundred thousand dollars, one hundred of which was appropriated at that session. Besides this bill for the benefit of Kansas City, Mr. Franklin secured the passage of a bill authorizing the holding of United States Courts in this city, and introduced a bill providing for the organization of the Indian Territory and its opening to settlement, for the passage of which he made great, but, unfortunately, unsuc- cessful efforts. In this latter he received the support of the people in unanimous resolutions adopted at public meetings and forwarded to him.

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The History of Jackson county, Missouri, containing a history of the county, its cities, towns, etc., biographical sketches of its citizens, Jackson county in the late warhistory of Missouri, map of Jackson county, Part 74

Author: Union Historical Company Publication date: 1881 Publisher: Kansas City, Mo. : Union historical company Number of Pages: 1068

Author: Union Historical Company
Publication date: 1881
Publisher: Kansas City, Mo. : Union historical company
Number of Pages: 1068