History of the city of Omaha, Nebraska, Part 15

Author: Savage, James Woodruff, 1826-1890; Bell, John T. (John Thomas), b. 1842, joint author; Butterfield, Consul Willshire, 1824-1899
Publication date: 1894
Publisher: New York, Chicago, Munsell & Company
Number of Pages: 1020

USA > Nebraska > Douglas County > Omaha > History of the city of Omaha, Nebraska > Part 15

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Resolved, That deeds of trust be executed in the manner provided in Ordinance No. - , con- veying to , as trustee, the public property of said city, not otherwise pledged or appropriated, to be held by him in trust as security for the redemption of the scrip issued.

The Mayor's authority as to the issuance of city scrip was extended at a special ses- sion held August 29th, when the following proposition was received, and the issuance of $50,000 authorized:

"We, the undersigned, do hereby agree to receive from the Mayor of the City of Omaha, of the scrip to be issued by the city, the amount set opposite our names, and to protect the same for nine months from the date of the scrip, for ten per cent interest for the nine months, to be promptly redeemed in currency, provided the amount issued shall not exceed $30.000, unless protected by a responsible party who shall stamp the same. and redeem it either in Omaha City or the City of Council Bluffs, but in no event shall the issue exceed $50,000. It is understood that this agreement shall not be binding on us until arrangements be entered into to protect the whole amount issued. (Signed,)

A. U. Wyman, W. E. F. & M. Ins. Co. . .. $5,000

Samuel Moffatt, Cashier Bank, Nebraska . . 5,000

Bank of Tekamah, F. M. Akin, Cashier 5,000

F. Gridley & Co 3,000

G. C. Monell 3,000

Banking House. S. E. Rogers & Co., B. B.

Barkalow, Cashier 3,000

William Young Brown 3,000

John McCormick & Co. 2,000

This proposition was accepted by the Council, and the Mayor empowered to close the contract.

At a meeting held September 22d, an additional $10,000 worth of scrip was

OMAHA CITY SCRIP AND BONDS.

ordered printed, to be loaned to the Hotel Company, " upon their giving satisfactory security to the city that they will pay all expenses incurred in printing, procuring and issuing said scrip, to protect the circu- lation of said scrip, and redeem the same and deliver it up to the city authorities at the end of one year, provided the said com- pany procure the concurrence of the bankers with whom the city has made contract, before the resolution shall take effect."

The bankers evidently made no objection, for the loan was made, and the Mayor instructed to take security on the property of the Hotel Company " for the sum of $10,000 heretofore agreed upon, " thus making the total amount of city :crip issued $60,000. In the meantime the financial disaster of 1857, which affected the entire country, was bringing peculiar hardship to the new metropolis of Nebraska. November 10th of that year a resolution was adopted, reciting that the Farnam Street Hotel Com- pany had displayed remarkable energy in the erection of their hotel " under the most depressing circumstances, owing to the un- precedented pressure in the money market, and conseqent stagnation in business and decline in the value of real estate," and asked that the time for the completion of said building be extended from January Ist, 1858, to June 1st of that year.

December 14th, a resolution was adopted favoring the issuing of city bonds to the amount of $50,000, and declaring against a proclamation previously issued by the Mayor for an election to be held December 24th, on a proposition to issue $60,000 in bonds to redeem city scrip to that amount; also directing the City Recorder to notify Messrs. Westwood, Hay & Whitney to print no more Omaha scrip, except by order of the Council. At a meeting held the following day, the Mayor was directed to issue his proclama- tion for an election to be held December 26th, to pass upon the question of issuing bonds to the amount of $57,500 to redeem

city scrip, and the City Recorder was di- rected to have 2,000 affirmative ballots printed and 500 negative. When the bal- lots cast at said election were counted, it was found there were 598 in favor of and 43 against the bonds, a total of 641 votes cast at an election of so much importance, that it may be deemed a fair showing of the voting strength of Omaha at that time.

Notwithstanding the "unprecedented pres- sure in the money market, decline in the value of real estate," etc., the Omalia coun- eilmen of those days retained their lofty aspirations, and their energy and zeal suf- fered no abatement. March 30, 1859, Dr. George L. Miller was elected " to proceed to Washington and use the best efforts to procure the passage of acts of Congress to reimburse the City of Omaha for money expended on the capitol building ; to locate the Surveyor General's office in the City of Omalıa ; to locate the Pacific Railroad north of the Platte River and in the Platte valley ; to make Omaha the military depot for the Utah war; to make an appropriation for the removal of snags from the Missouri River; to make the City of Omaha a port of entry; to make the postoffice at Omaha a distribut- ing office, and to aid and assist in the enacting of such other acts as may be to the advantage of the City of Omaha."

Hopeful words these, and hopeful, enthu- siastic and courageous hearts back of them! A task of generous proportions this, en- trusted to one who has continued for more than thirty years since that date laboring to develop and promote the highest interests of the city which claimed his affection and loyalty in the days of his energetic young manhood, and which has since witnessed no abatement of his ardor. To the zeal, energy, confidence and ability of the chosen few who attended to the public affairs of Omaha in those early days of difficulty, hardships, poverty and privation, can be directly traced much of the prosperity which has attended her in these later years, and in none of their

HISTORY OF THE CITY OF OMAHA.

recorded acts are those qualities more clearly shown than in the instructions thus given their ambassador to Washington.

But there was very little in the treasury in those days. The Treasurer was directed to receive only gold and silver in the redemption of lots sold for non-payment of taxes; and a committee, appointed to inquire of that official why he had not complied with an order by the Council to pay the claim of one Shennehan to a small amount, received the reply that he had previously been directed " to reserve the first $500 received as a special fund to pay the expenses of the poor and the land office trials."

Certain repairs being demanded on the capitol building, a special committee was appointed to investigate the matter, whichi committee reported that "it would require $150 to make the necessary repairs; and, taking in consideration the large amount already expended by the city to preserve from total ruin the materials of which it was erected, and the indifference manifested by the general government to reimburse the city, together with the embarrassing state of the financial affairs of the country in general, and of this city in particular, it would be neither wisdom nor policy for the city to incur any further expense on the capitol building, until other demands were paid; and your committee recommend that no further action be taken at this time." The report was adopted.

But the desperate condition of the city finances is probably more clearly shown in certain proceedings had by the Council, August 10th, 1858, than elsewhere in the Clerk's records. An ordinance, of which, unfortunately, but a brief mention is made ( hence its provisions cannot be given), had been previously referred to the judiciary committee; and, at this meeting of the Coun- cil, Mr. Thomas Davis, chairman, presented the following: " The committee on judici- ary, to whom was referred the ordinance providing for the payment of city warrants,

would respectfully report that they have had the same under consideration and would recommend that the bill do not pass, for the reason that your committee are fully of the opinion that the bill is a virtual repudiation of the debt of the city, known as the scrip debt, which has been ratified by a vote of over two-thirds of the citizens." Mr. M. W. Keith, of the same committee, took an entirely different view of the situation, and thus reported: "In the first place the city cannot proceed to make any improvements of streets and bridges, payment of its ofli- cers, relieving of the poor, or even burying the dead, in those cases of citizens who are so unfortunate as to die poor, unless we re-establish the eredit of the city by paying its legitimate indebtedness in preference to any other class of claims. The undersigned is fully of the opinion, from information derived from citizens, that nine-tenths of the citizens are in favor of the bill now under consideration, and therefore he respectfully recommends that the report of the chairman be laid on the table and that the bill do now pass and become a permanent ordinance of the city." The Keith report was adopted.

November 30th, 1859, O. D. Richardson and John H. Sahler were appointed a com- mittee to go to Washington and urge certain legislation in behalf of the city, and were voted $1,000 for their expenses, and later on they were authorized to expend money " upon contingency of success to an amount not to exceed $3,000." These gentlemen proceeded to Washington, where they spent some time, and upon their return presented the following report:

In pursuance of your appointment, we re- paired to Washington and consulted with our delegates upon the best mode of effecting the passage of the bill to remunerate the City of Omaha for the outlay upon the capitol ; the bill for an appropriation for the completion of the capitol ; the bill for the bridging of the Loup Fork : the bill allowing the Mayor to pre-empt outside the 230 acres, and the bill appropriating lands for railroads in the Territory. etc. After

SEEKING FEDERAL REIMBURSEMENT.

agreeing upon the course to be pursued, we devoted our time and best energies to the business we had in charge.

The several bills were introduced and referred to the committees and, as a general thing. they met with a favorable reception, none denying the justness of our claims, but we were met with the fact that there was a short session, with scarcely time to pass the bills in their regular order, and even if there was, there was no money in the treasury. Aside from these obstacles there seemed to be a strong disinclination on the part of a majority in Congress, especially in the House, to do the business before them and which the pub- lic interests demanded. This was manifested by long speeches on things relevant and irrelevant and by constant calling for the yeas and nays at almost every opportunity. Notwithstanding all this we succeeded in getting two of our bills reported, the one appropriating $33 000 for a pen- itentiary and the one appropriating $30,000 for the completion of the capitol. These, under the rules of the House (in bills appropriating money), must be referred to the committee of the whole, and they were so referred, but were never reached in their order, and, though a strong effort was made to pass them by tacking them to another bill, that effort failed. In addition to the fore- going matters we were often at the general land office to put our lands in market, both those within the city limits and throughout the Terri- tory. The Secretary of the Interior decided that all lands should be put in market by the 10th of July.

The subject of the division of our Territory came up after we arrived there. Several persons appeared there to represent those favorable to the measure. When the subject had been referred to a committee we appeared before the committee and stated our reasons against the proposed dis- memberment. and the absurdity and injustice of such dismemberment were so apparent that the committee reported adversely to the purpose of the bill.

We very much regret that we could not accomplish more for the benefit of the Territory and city than we did, but we believe the failure of the passage of our bills was not owing to any want of labor or effort on our part, but to causes over which we had no control, and which were manifest to all who were familiar with the trans- actions of the late Congress.

Later on Doctor Lowe presented the fol- lowing additional statement:

TO THE CITY COUNCIL OF OMAHA :

Gentlemen: Under a commission of your prede- cessors, of December 21, 1858, I proceeded to Wash- ington in the winter of 1858 and 1859, to urge upon the general land office prompt action in considering and canceling. the private preemptions illegally made within the corporate limits of the city and to do what else I could iu matters of interest to Omaha, which were then pending in Congress. I reached Washington about the 20th of January, and, remained there until the 4th of March, 1859, devoting all my time to the objects of my mis- sion, and succeeded in obtaining a hearing and favorable decision of much the larger and most important portion of the cases; but, not being able to get all of them taken up within that time, and being unable to remain longer, I employed M. Thompson, Esq., to attend to the remaining cases; and having no money to pay him I agreed to send him a deed for five of my own lots, within the limits of Council Bluffs, where the titles were complete, for $250. This I have done, as you will more satisfactorily learn from his own acknowl- edgment. herewith submitted, and I now respect- fully ask to be reimbursed therefor. I disclaimed at the outset any compensation for my time and services, but I cannot afford to give also the money actually paid out for necessary personal expenses in going and returning, aud for my board while there. Therefore I submit the follow- ing charges and ask their allowance in cash or its equivalent, viz : Paid to Thompson for city, $250; actual expenses going to and returning from Washington, $120 ; board forty-two days, at $1.50 per day $63-$433." The doctor was voted an equal number of lots in Omaha to reimburse him for the Council Bluffs lots, which he had deeded away. and in addition was given $183 in cash, on account of his expenses.

In November, 1864, the following was presented and adopted, as the report of a special committee, appointed in that behalf. TO THE CITY COUNCIL :

Your committee, to whom was referred the proposition to employ P. W. Hitchcock, Esq, to procure from Congress an appropriation to reim- burse the city the money expended by it in completion of the capitol building, respectfully report that they have had the matter under con- sideration and have had interviews with Mr. Hitchcock and others interested in the subject ; that in consequence of his position they do not deem it advisable to enter into the engagement proposed, and we understand Mr. Hitchcock him- self to be understood as desiring no compensation

HISTORY OF THE CITY OF OMAHA.

for himself, but only necessary means to receive the support of influential parties in aid of the measure. We believe Mr. Hitchcock will aid this matter to the utmost of his ability, out of regard to his position as delegate elect and interest in the affairs of our city, and so understood him to state; and we think his aid will be much more efficient in supporting some other person than it would be under the engagement proposed. Mr. J. M. Woolworth is to be in Washington this winter, on professional business, and he would undoubt- edly enter into like engagements and at the same time have the aid of Mr. Hitchcock in the matter. It seems to your committee likely to meet with more success if entrusted in the first instance to the hands of some person whose official position did not seem to compromise his honor. No per- son can doubt the justice of the claim made upon the government, nor the advantage to the city of securing the appropriation.

Your committee, therefore, present the follow- ing resolutions :

WHEREAS, In order to complete the capitol of this Territory. the City of Omaha issued scrip to a large amount, which was expended for that purpose under the promise of Governor Izard. the agent of the United States, that they would reim- burse the city the sum so expended, which, as yet, the government has failed to do, and by reason of large claims made against the city on account of these said scrip, our credit is greatly impaired.

Resolved, That J. M. Woolworth, Esq., be and hereby is appointed the agent of the City of Omaha in this behalf, and is empowered to use all proper means to obtain from the United States the funds to liquidate the sums so expended, and to that end this committee and the proper officers of the city make to him a power of attorney, authorizing him so to act in the premises, and that for his services he receive twenty-five per cent of the sum which he may obtain from the United States for said purpose, he to receive no other compensation for his services, whether he succeed or fail in the said business.

Resolved, That whatever sum is realized for the benefit of the City of Omaha from the general government in accordance with the foregoing res- olution shall, when received, be applied to the settlement of the claims against the city arising from the completion of the capitol by the said City of Omaha, and for re-imbursing the city for its outlay upon said capitol, and such equitable manner as the City Council may determine.

These gentlemen having all failed to accomplish the object in view, September 27,

1865, a resolution was adopted giving to " Samuel Clinton, of Iowa, a power of attor- ney to solieit an appropriation by the United States government to refund the money expended upon the capitol building, by the City of Omaha," and for his services he was to receive twenty-five per cent of the money collected. And again. January 9th, 1867, O. P. Hurford was appointed the agent of the city to prosecute this claim for money expended on the capitol building, and was to receive as compensation the twenty-five per cent, which seemed to be the regular figures in fixing the remuneration to be received by the various parties designated by the city to make periodical assaults upon the National Congress. A year later a reso- lution was adopted by the Council revoking the authority previously given Samuel Clin- ton, James M. Woolworth, "and any and all persons" to whom such authority had been granted, and full power was conferred upon .1. J. Poppleton to represent the city in the premises; and in Juue, 1869, all pre- vious appointments were revoked, and David L. Collier was selected by the Council as the proper man to colleet thuis money from the general government. All these efforts proved futile, however, the government at Washing- ton adding to a long list of instances of its injustice to individuals and communities by ignoring entirely the claim the City of Omaha had upon it for the large sum expended in providing a capitol building for the Territory.

The amount appropriated by the general government for the erection of a Capitol building was 850,000; the City of Omaha expended $60,000 additional, and in his message to the Legislature in 1859, Governor Izard stated that a further sum of $30,000 would be required to complete the building in good shape, and recommended memorial- izing Congress to that effeet, when, in his opinion, the amount required would be promptly voted by the National law makers. The building never was completed, but

T RAKLI

LOOKING NORTHWEST FROM FIFTEENTH AND FARNAM STREETS, 1876.

RECORDS OF INTERESTING LEGISLATION.

served the purpose until the capitol was moved to Lincoln in 1867, and a few years later was torn down to give place to the High School building, as elsewhere referred to at length.

These old records are full of interesting facts. For instance, Omaha, in those early days, seemed to be threatened very fre- quently with outbreaks of hydrophobia in an epidemic form, and legislation of the most vigorous character was directed against the dogs of that period. Mr. Charles P. Birkett, after he came into the Board, was particularly active in this direction. Then there was much fear of small pox. In July, 1857, the following resolution was adopted:

WHEREAS, The small pox has commenced to prevail in the City of Omaha ; and,

WHEREAS, It is currently reported and be- lieved that said disease prevails to a considerable extent among the Indiaus temporarily staying in and about said city, and among the Mormon emi- grants passing through said city on their way to the west, and that the said disease has been intro- duced by said Indians and Mormons ; now, there- fore, be it

" Resolved, That the City Marshal be instructed and required forthwith to cause said Indians to remove from and remain outside the corporate lim- its of said city, and also to cause such Mormon emi- grants as may be camped within the said limits to remove without the same, unless it shall satis- factorily appear to the City Marshal and the City Physician that said camps are not infected with said disease; and that the City Marshal be in- structed to immediately notify the officers and proprietors of the ferry boat. plying between Om .ha and Council Bluffs, that said boat will not be allowed to carry over and land, within the corporate limits of said City of Omaha, any trains of emigrants coming from the east, until this order is annulled; and in enforcing the above orders the City Marshal is hereby vested with all the powers granted in the ordinances creating his said office, for the purpose of making arrests, quelling riots, and other like duties."

In the winter of 1857-8 the following was adopted:

WHEREAS, It has but recently come to the knowledge of the members of the Council that it is in contemplation by certain parties to open a

saloon in one of the rooms in the basement story of the Territoriat Capitol building ; and,

WHEREAS. We believe that the establishment of such an institution in the place named is an insult upon the dignity of the Territorial Legisla- ture soon to convene in said building, and that it will be detrimental to the reputation of the City of Omaha, and injurious to its future prospects ; therefore, be it

Resolved, By the City Council of Omaha that we hereby instruct, empower and direct the pres- ent superintendent of said building to proceed forthwith to take measures to prevent the estab- lishment and opening of said saloon in the place named, and for that purpose he will. if necessary call in the aid of the City Marshal, with such aides as the Marshal may deem necessary.

Upon this resolution, Aldermen Kellom, Byers, Downs, Davis, Creighton and Vis- scher voted in the affirmative, and Aldermen Wyman and O'Connor in the negative.

Various suggestions were made as to means to increase the city funds, including schemes to sell all of the city property, including Jefferson Square; and, in 1858, the City Solicitor (George I. Gilbert, Esq.,) presented a report on that subject, adverse to the proposition, in the course of which he cited instances in the cities of Detroit, C'in- cinnati and Allegheny, where sales of the city property had been made by the munici- pal authorities of those cities, and deeds given to purchasers, and in some instances the parties had erected buildings upon the property purchased; that legal measures were subsequently resorted to for the recov- ery of the property by others. on the part of the cities mentioned, and the courts vacated the deeds, and declared the buildings that had been erected on the property a public nuisance. Steps were afterwards taken to dispose of various lots owned by the city, but Jefferson Square was not included. At that time that block of ground was esti- mated to be worth $4,000, or $500 per lot. (The property is now valued at 8400,000.) At one time it was proposed to use lots 3, 4, 5 and 6, in this block, for publie school purposes, but the scheme was not carried into effect.

HISTORY OF THE CITY OF OMAHA.

All sorts of enterprises calculated to ben- efit the city were encouraged in the most liberal manner. 1n 1859, three hundred lots were donated by resolution to " Messrs. Irv- ing & Co., said lots supposed to be of the average value of $200 per lot, upon condi- tion that said Irving & Co. will keep and maintain during the continuance of their contract with the United States, at or within two miles of the City of Omaha, a deposit (depot?) for the reception and delivery of goods to be transported by them for said government."

.June 11, 1860, a committee was appointed to prepare a memorial to Howell Cobb, Sec- retary of the Treasury of the United States, in relation to repairing the damages done the capitol building by the late storm; and at the same meeting of the Council the Mayor was directed to issue a notice, to be recorded in the office of the Register of Deeds, warning all persons to not purchase from D. C. Sutphen lot 3, in fractional sec- tion 23, township 15, range 13, " the same being within the incorporated limits of the City of Omaha, and the title to the same having been illegally obtained by the said Sutphen." The tract referred to in this " warning" lies near the river bank, and consists of a trifle over 31 acres. Mr. Sutphen obtained his patent for the land, but it was afterwards annulled, and Mr. Durant filed on it on behalf of the Union Pacific Com- pany; the land was ordered sold at public auction, and Mr. Sutphen bid it in at a dol- lar and a quarter an acre, Additional difficulty was experienced, however. Mr. Sutphen's money being tendered him by the land officers at Washington, Mr. Byron Reed became interested in the matter, and the result was that a second patent was granted Mr. Sutphen, with the understand- ing that he was to deed an nndivided half of the property to Mr. Reed, which he did.

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History of the city of Omaha, Nebraska, Part 15

Author: Savage, James Woodruff, 1826-1890; Bell, John T. (John Thomas), b. 1842, joint author; Butterfield, Consul Willshire, 1824-1899 Publication date: 1894 Publisher: New York, Chicago, Munsell & Company Number of Pages: 1020

Author: Savage, James Woodruff, 1826-1890; Bell, John T. (John Thomas), b. 1842, joint author; Butterfield, Consul Willshire, 1824-1899
Publication date: 1894
Publisher: New York, Chicago, Munsell & Company
Number of Pages: 1020