USA > Nebraska > Douglas County > Omaha > History of Omaha from the pioneer days to the present time > Part 13
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in the newspaper." "You know that that article is true: if you deny it, I'll prove it, and publish the evidence," replied Webster. Both returned to the main room of the store, where a large crowd had gathered. Among those present was United States Marshal Moore, who indulged in severe criticisms of the newspapers, and said that if any one of them attacked him as they had others. he would slice off the ears of the editors and cut out their tongues. Webster flushed with victory over a small man, inquired if the United States marshal was seeking a personal controversy with him, and if it was not time enough for him to make such threats when he was assaulted. Webster informed him that such threats would not prevent him, if the occa- sion required, from making such criticisms as were just. Presently Morton, the democratic candidate for congress, came in, and Webster said to him, "I am indebted to you for this assault. I ought to whip you. I think I can whip the whole democratic party for this." Mor- ton laughed the matter off, treating it as a joke, and making facetious remarks, as was his custom. He
then went away, and was soon after followed by Moore. Webster then repeated what had been said by Jonas Seeley that "Moore was only brave when furthest from danger. When he first came here he exhibited an arm full of scars, which he said he received in a bowie-knife duel, but the fact was that he got them while running a cotton-gin." At the hotel where they were both staying, Moore said to Morton, "Why didn't you whip Webster?" "You ought to whip him yourself if anybody ought to," replied Morton; "he has been making fun of you, as I am told, about those scars on your arm, which he says you got in a cotton-gin instead of in a duel." "Did he say that?" "Yes." "I'll make him take it back or I'll cut his ears off," said the blood-thirsty Moore. James G. Chapman heard this conversation, and at once went to Webster, who was still at the store, and cautioned him. Seeley and Hanscom were both there. The latter said to Webster, "You better get out on the sidewalk and stand up for I guess he means business." The whole party accordingly went out on the walk, and presently Morton and Moore were seen coming through the mud, regardless of sidewalks. Morton looked as if there was to be some fun, Moore looked serious, and with
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a knife was whittling a stick. "I understand you have been ridiculing me, and denouncing me as a coward," said Moore, as he advanced towards Webster. Quick as a flash Webster covered him with his revolver, and replied: "You have talked a great deal too much about cutting peo- ple's ears off and taking their tongues out, to come at me with a drawn knife and ask explanations. Stop where you are, or I'll kill you." Moore stopped. "Put up your knife." said Webster. "Put up your pistol," replied Moore. "I'll put up my pistol, but you must not pull your knife. If you do I'll kill you," said Webster. The weapons were finally put out of sight, and then Moore said: "I understand that you have been ridiculing me, denouncing me as a coward, and saying that I exhibited scars on my arm, rep- resenting that I got them in a knife duel, but that I really got them in a cotton gin. Did you say that?" "Irepeated to . the gentlemen here," said Webster, "a conversation between you and me, and said that I did not think you were very anxious for a personal controversy. Jonas Seeley, to whom you had exhibited those scars, and represented that you got them in a knife duel, told me that you got them in a cotton-gin." The words had hardly left Webster's mouth before Seeley sprang foward, and with elevated hand, said to Moore, "Yes, I told Webster that, and you coward, you know that it is true!" That ended the difficulty, as Moore had nothing more to say. It also ended demo- cratic bull-dozing in Nebraska. Hanscom and his brother- in-law, Seeley, were both Douglas democrats in those days. Seeley is dead, having died in California. Within a week after the above episode, Moore left Omaha and joined the rebel forces. He became a commissary in the confederate army
Finally, when the returning board met, to the amaze- ment of the republicans, they had returns from L'eau-qui- court county of 292 votes, all cast for Morton for congress, and for Bates for the council against Taffe. By counting these 292 votes Morton would have had a majority. By throwing them out Daily would have had a majority. Everybody knew it was a fraud. L'eau-qui-court county was so remote, however, that it was a difficult matter to immediately ascertain the facts and secure proof. The re- turn was counted and the certificate of election was given
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to Morton. The republicans. however, sent messengers to L'eau-qui-court county to obtain evidence of fraud. They induced some of the parties, who were engaged in the trans- action, to appear before George H. Armstrong, who was then probate judge of Douglas county, and testify. Arm- strong was then a democrat, but is now and has been for many years a republican. Complete evidence was secured. It was certified to by E. B. Chandler, who was clerk of the United States courts, and presented to Governor Black, who revoked Morton's certificate and gave another to Daily. The evidence implicated Captain J. B. Todd, who was the sutler at Fort Randall. He was a cousin of Mrs. Lincoln, whose husband was then a candidate upon the republican ticket for the presidency. This evidence showed that Cap- tain Todd, with three or four employes of his store, crossed the Missouri river, and opening a pretended voting place, voted upon fictitious names which they recorded, until they had cast 292 votes. The return was made up and sent to Governor Black's private secretary, and upon this return, as already stated, the board issued a certificate to Morton. Morton knew nothing of the issuance of the second certifi- cate by Governor Black until the meeting of congress, when to his surprise the clerk, in reading the roll, called the name of Daily as the delegate from Nebraska. This placed Morton in the attitude of a contestent, but congress awarded the seat to Daily.
CHAPTER XX.
OMAHA FROM 1856 TO 1866.
THE GOOD TIMES OF 1856-INFLATION OF THE CURRENCY- OMAHA LOOMS UP-A SEVERE WINTER-OMAHA GETS A CITY CHARTER IN FEBRUARY, 1857, AND PUTS ON METROPOLITAN AIRS-REAL ESTATE BEGINS TO WEAKEN-THE GREAT FINAN- CIAL BREAKDOWN-WILD-CAT BANKS-GENERAL DEPRES- SION-CITY SCRIP-THE PIKE'S PEAK EXCITEMENT HELPS THE CITY-LIVELY TIMES AGAIN.
During the year 1856 there was an inflation of the currency all over the country, fully equal to that im- mediately succeeding the close of the civil war in 1865 and
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1866. Times were good everywhere, and particularly so in Omaha. Everybody considered himself rich or likely soon to be. This state of affairs continued all through 1856. Real estate sold at high prices, and corner lots were in great demand at almost any figures. Speculation ran wild in Omaha, as it did in many other new western towns at that time, and everybody dabbled in real estate. Money was made easily and quickly. The motto was "quick sales and big profits." Omaha grew rapidly in population during 1856, and a large number of buildings were put up during that year.
The winter of 1856-7 was a very severe one and has ever since been considered the hardest season ever experienced in Omaha. The weather was fair through the fall, but on the 30th of November, a snow-storm commenced and con- tinued until the morning of the 3d of December, having fallen to the depth of three feet on the level. The weather was exceedingly cold after the storm, and remained so all winter, with the exception of a few days in February, 1857. The snow that had fallen at the very opening of the winter did not begin to go off till some time in the month of March. Mr. Thomas Swift, an old settler, says of that memorable winter that " the snow was from four to five feet deep on the level and was crusted over. An immense number of deer everywhere broke through the crust and were frozen to death. One man in Harrison county, Iowa, gathered 250 dead deer and piled them in one stack. Men traveled about with snow shoes and picked up the dead deer. A large number of cattle were frozen to death in the snow; one man losing between two and three hundred head. It began snowing hard on the first day of December, and con- tinued four days, the wind drifting the snow. In coming down from Dakota City to Omaha, I had to get out of the wagon and lead my team by a line. During the storm an Englishman, who had just come to Omaha, wanted to go to Barney O'Reilly's boarding house, at Twenty-first and Webster streets, and paying a man two dollars to accom- pany him and help him to carry his trunk, he started for the place. The only way they found the house was stumb- ling over the chimney, which stuck out of the snow only a few inches. In the spring I was at a place at St. Mary's, between Nebraska City and Council Bluffs. I started for
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Omaha in a storm and went only 200 yards, when I was obliged to turn back. On that day the Nebraska legislature adjourned. They had done nothing but charter wild-cat banks and town-site schemes, and they had nearly all started for Nebraska City, which was the best town in which to dispose of town-site stock. The speculative legis- lators were forty-eight hours in reaching St. Mary's, which was only twelve miles from Omaha. Nearly all of them had their ears, noses, hands and feet severely frozen."
Omaha, having reached a population of from 1,500 to 1,800, asked permission of the legislature to put on city clothes, and a charter was accordingly granted to her in Feb- ruary, the first election occurring on the first Monday in March, 1857. The result was as follows; Jesse Lowe, mayor; L. R. Tuttle, recorder: J. A. Miller, city marshal; Charles Grant, city solicitor; Lyman Richardson, city as- sessor; A. S. Morgan, city engineer; A. Chappel, health officer; A. D. Jones, T. G. Goodwill, G. C. Bovey, H. H. Visscher, Thomas Davis, Wm. N. Byers, Wm. W. Wyman, Thomas O'Conner, C. H. Downs, J. H. Kellom, James Creighton, councilmen. The council met and organized on the 5th of March, and the first ordinance passed was "to prevent swine from running at large." The first warrant was issued to Secretary Thomas B. Cuming for books and stationery furnished to the council.
In May, 1857, an ordinance was passed dividing the city into three wards as follows: 1st ward-all that part of the city lying south of Farnam street: 2d-all that part of the city lying between the north side of Farnam street and the south side of Capitol avenue; 3d-all that part of the city north of Capitol avenue *
The spring of 1857 opened auspiciously for Omaha in every respect. Real estate was held at as fancy figures as ever and was about as active as in the previous year. But in a short time, however, it began to get a little heavy and did not sell quite as readily. But there was more building during the spring and early summer of 1857 than in any previous year since the founding of the city. A large number of good houses were erected, which are still standing.
1869. 'Omaha became "a city of the first class " by legislative enactment February 9th, The city was divided into six wards, by ordinance, May 15 1869. In 1887, Omaha by an act of the legislature, was made "a city of the metropolitan class." The limits were enlarged and the city was divided into nine wards.
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The ever memorable financial break-down of that year commenced with the suspension of the Ohio Trust com- pany, which was followed by the failure of Illinois banks and others all over the west. There were numerous "wild- cat " banks in the territory of Nebraska at that time, as there were elsewhere in the new west. Two or three of these banks were located at Omaha, and one or more at every little village through the river counties. The bank that did the largest business in Omaha and Nebraska was the Western Exchange Fire and Marine Insurance company. This was the first banking institution established in Ne- braska under a charter from the legislature. It was started early in 1855, and from its organization it was greatly aided by the government deposits under the control of the gov- ernor. The bank was located in the building formerly occu- pied by the United States National bank, and was a branch of the firm of Greene, Ware & Benton, of Cedar Rapids, Iowa. who did business also at Council Bluffs and other points. Thomas H. Benton, jr., was president of the Omaha branch, Leroy Tuttle was the cashier, and A. U. Wyman was the teller. It is rather a remarkable fact that Tuttle and Wy- man each afterward held the office of treasurer of the United States, and each performed the duties of the office with marked faithfulness and ability. When Mr. Wyman re- signed from that position his accounts, which had involved the handling of hundreds of millions of dollars, was found to be correct within two cents. The missing two cents were soon afterwards discovered, making his accounts abso- lutely correct. Mr. Wyman is now vice-president of the Omaha National bank, and president of the Omaha Loan and Trust company. His father was the late W. W. Wy- man, one of the old settlers, who during his residence in Omaha was one of her most prominent citizens. Mrs. Wyman. his widow, and mother of Mr. A. U. Wyman, is still a resident of Omaha.
The Western Exchange Fire and Marine Insurance company failed on September 23, 1857. The president of the Western Exchange issued an address to the public set- ting forth that by reason of the losses incurred in the east, it became obvious that it was impossible for the institution to longer continue the payment of its liabilities. Under these circumstances it was deemed expedient for the inter-
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ests of all concerned to make an assignment of the assets of the bank for the benefit of its creditors. Enos Lowe, John A. Parker, Sr., and A. U. Wyman were appointed trustees, and the promise was made to close up the business at the earliest period, in the most equitable manner possi- ble. The assets, as set forth in the schedule. amounted to 8288,083.75, the most of which consisted of "bills receivable" - and "notes discounted." These purported to be "stock certificates" to the amount of $80,000; also $191.03 in specie. and $121 in the bills of insolvent banks.
Within a few months every Nebraska bank had closed its doors, with the exception of two or three. One of these banks that withstood the general pressure was called the Bank of Dakota and was operated by Augustus Kountze- one of the Kountze Bros., who now rank among the most prominent bankers in the country. This bank redeemed its entire circulation at par, which was considered quite a note- worthy circumstance at that time.
Of course the bursting of the speculative bubbles tempo- rarily checked the rapid advancement that was being made by Omaha, and men who had been flush soon found them- selves financially distressed. Business dragged heavily, the bottom was knocked out of real estate, and a general spirit of depression and despondency prevailed. It was so everywhere.
Among the papers which lie stored in the old dry goods boxes devoted to holding the relics of the old Western Ex- change Fire and Marine Insurance company, are bundles of checks signed by J. Sterling Morton in 1855, by Moses F. Shinn in 1856, and by Joseph Barker and George Barker in 1857.
Half a block east of this bank was located the Bank of Nebraska, which was organized June 7, 1857, with B. F. Allen, of Des Moines, as president. Mr. Allen was a promi- nent financier, who afterwards became president of the Cook County National bank in Chicago, which failed disastrously in 1875. The cashier of the Bank of Nebraska was Samuel Moffatt, a brother of D. H. Moffatt, now presi- dent of the First National bank of Denver, and a man of vast wealth; and who was also a stockholder and director of the Bank of Nebraska. In May, 1856, this bank col- lapsed with a balance on its cash book, to the credit of
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the bank, of $8.29. The Bank of Nebraska had issued $37,000 in currency, but redeemed every dollar. Among the items which were charged to the account of profit and. loss are four thousand dollars in worthless script, issued by the city of Omaha, which Allen left, and which is now in the vaults of the Omaha National, and a judgment for $2.00 against an old citizen of the state, who was recently elected to an important state office.
Mr. Thomas Swift, in recalling the "wild cat " days of 1857 gives an interesting reminiscence. "Everybody who had bills of 'wild cat' banks," he says "got badly stuck. They failed here and there and one after the other, and it was a remarkably exceptional day, when a man found himself without having one or more bills on broken banks. I remember that a party of eight of us went up to Dakota county to lay out an addition to St. John's. Everybody was there speculating in town lots and laying out town sites. In our party there were besides myself, Thomas O'Conner, John A. Creighton, Mike Murphy, Vincent Burkley. Pat Gurnet, and two others, whose names I cannot now recol- lect. We stopped at Tekamah over night. We got up early next morning and waked up the cashier of the Bank of Tekamalı, and five of us cashed in several hundred dollars each, receiving gold for our bank notes. We drew out between $2,500 and $3,000. Shortly after this the bank suspended, and we all thought we were lucky in having exchanged our paper for coin. This bank nad $100,000 in circulation and was doing a big business. I remember that after it suspended John M. Clarke offered $2,000 in bills of this bank for $200 in gold. A friend of mine named Baugh, who was keeping a small store, handed me $500 in bills one day while the banks were breaking, and said: 'Tom, take that and spend it for me in some way as quickly as possible, as I don't think it will be worth a cent in a few days.' I took the money over to Council Bluffs the next morning and bought bacon and corn with it. The bank which issued the bills closed its doors that afternoon."
During the summer of 1857 the city of Omaha issued $50,000 in city scrip for the purpose of completing the capi- tol, and when that amount was exausted, another $50,000 was issued making $100,000 in all. This scrip passed cur- rent at par during the time it was being issued, and until
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the capitol building was enclosed and a few rooms were made ready for occupancy. After that this scrip gradually fell until the discount was greater than the sum for which it would pass. A large amount of this scrip was either lost or virtually repudiated; at least it was never re- deemed except in the payment of taxes, for which some of it was used.
The financial depression continued through 1858, and in a still greater degree than ever. It is a fact that the popula- tion of the city decreased during 1858 and 1859, when it is said to have contained 4,000 people, and that it did not be- gin to increase again until 1860 and 1861.
The rich gold discoveries in Colorado?now gave a stimu- lus to western travel, from which Omaha derived a sub- stantial benefit from the time it began till it ceased, and it was this that gave her another start.
It was in 1858 that the first discoveoy of gold in Colo- rado was made by a small party of men on a stream which is now called Cherry creek, at a point where Den- ver was afterwards located. During the summer of 1858 there was considerable immigration to that region, and when enough men had gathered together they laid out a town and called it Auraria. Afterwards a town was built on the opposite side of the creek and called Denver, in honor of the then governor of Kansas.
In the spring of 1859 the immigration to Colorado greatly increased, and a large share of the travel and trade to and from the gold regions passed through Omaha, which gave a decidedly hopeful and cheerful turn to affairs. Business began looking up at once, and Omaha soon became an im- portant outfitting and starting point. Hundreds of wagons arrived at Omaha from the east every day, and after taking a rest here for a short time to replenish their sup- plies and outfit in good shape, they would resume their journey, with the words "Pike's Peak or bust" painted on their white wagon covers, Omaha merchants kept their stores open night and day, and every day in the week, Sun- days not excepted, being determined to make hay while the sun shone. Those were busy times and our merchants coined money rapidly. The Colorado immigration lasted till 1864, and Omaha was greatly benefited thereby.
It was in the summer of 1859 that William N. Byers,
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having secured a printing office, a wagon and teams, left Omaha for Denver. On the side of his wagon he had painted the name of his contemplated newspaper, "The Rocky Mountain News." which he established at Denver.
The first wholesale grocery house in Omaha was started in 1859, by Messrs. J. H. Lacey and John McCormick, under the firm-name of Lacey & McCormick. This firm got a large share of the Pike's Peak trade, and did a booming business during the few years it continued. "It was a busy time in Omaha in those days," says Mr. Lacey. "Our first stock was purchased in St. Louis in March, 1859, and reached here by steamboat just at the time everybody was rushing to Pike's Peak. The stock consisted largely of flour, sugar, coffee, sow-belly, a big lot of crackers (purchased of J. Garnean, who has since built a big factory in Omaha), baking powder, pick handles, dried apples, powder and shot. We also bought a large quantity of Julius Smith's 'Old Magnolia' whisky, one day from the rectifying tub, which cost 123 cents per gallon. The Pike's Peak stampede began in May, and for a while dampened Omaha's pros- pects, but it was of short duration. The 'Peak' became a reality, and with the increasing Mormon, California and Oregon immigration, which outfitted here, the military posts, the Pawnee and Omaha Indians, and ranches starting up on the Platte, made Omaha a booming town. All freighting was done by cattle and mules. Our streets for eight months in the year presented a busy and interesting sight. They were crowded with teams, bull-whackers, mule-drivers, ranchmen, Mormons, 'pilgrims,' and Indians. In the rear of our store, the building now being known as No. 1306 Farnam street, was the Methodist brick church, the site of which is now covered by the Omaha National bank building. We loaded all the freight trains in the alley, and at times we somewhat interrupted the pious pursuits of our old pioneer Methodists, Elder Shinn, Brother Tousley, Brother Selden and others, as well as the Presbyterians, who alternated services in the church. Sunday was the day on which every one wanted to load up and start, except the Mormons. All the ranchmen, freighters and traders, like Jack Morrow, Dan Penniston, Tom Keeler, and other pioneer plainsmen. would, on arrival in town, deposit with us their gold dust, gold, soldier checks, and furs, and take from two
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to four days 'to rest up,' which meant no rest for the wicked. They made 'Rome howl' sure enough. After hav- ing thoroughly 'rested,' the freighters would put in appear- ance, and then all would be rush and bustle, to get their trains in order, and they generally all wanted this done on Sunday, the day of rest. The space back of our store-the alley and the vacant lot alongside the old Tremont house, where the Academy of Music now stands-would be filled with bull-teams getting in shape and waiting to be loaded. You can form some idea of the 'music in the air,' caused by the pulling and backing up, the cracking and slashing with gads and whips, and the bull-whackers' oaths. Sometimes it was 'nip and tuck' between the bull-whackers on the outside and Elder Shinn on the inside of the church, to see who could shout the loudest, but to the elder's credit he held the fort, and as the racket increased outside the more fervent he became. How that pulpit ever stood the banging he gave it is a mystery, but the elder knew the element he had to wrestle with. On one occasion the boys 'held him a little too high.' He paused for a few minutes in his sermon, and came down from his pulpit and went outside and spoke very pleasantly, but very decidedly to one of the leaders. It was oil poured upon the troubled waters, sure enough. One of the bull-whackers said, 'Here, boys, this . won't do. Old Shinn is a good old coon, and runs a bully ferry (Shinn's ferry). We mustn't bother him any more.' Thereupon they quieted down, and the elder proceeded with his ser- mon without any more serious interruption. Soon after the elder had returned to his pulpit, I heard one of the bull- whackers, spread full length under his wagon, singing as if he never had a care:
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