History of the city of Omaha, Nebraska, Part 96

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 96

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It did not require a very lengthy consid- eration by those determined to venture upon the experiment of establishing stock yards and packing honses near Omaha, on a scale commensurate with their ideas of what the undertaking would need, to determine upon a site for a plant and for a town as well. Simultaneously, and before any capital had been pledged for the purpose, at least two enterprising men had, without each other's

knowledge, looked with "longing eyes " upon the open country immediately south of Omaha, believing it to be the point of all others suited to the purpose. And there, it may be premised, in 1884, stock yards were commenced; there afterwards, a town was platted; and there, subsequently, packing houses were established; the place, as a whole, having as early as 1883, been named by the parties most interested, "SOUTH OMAHA."* But we anticipate.

In the fall of 1882, Alexander H. Swan, an extensive cattle owner in Wyoming, de- cided, if possible, to establish large stock yards at or near Omaha. There was, in his mind, no doubt of the propriety of such an undertaking when viewed from a financial standpoint; and he at once proceeded to act upon his convictions. ITis plan was confided to Leverett M. Anderson,t who seconded, with zeal, the undertaking. The first pre- liminaries were arranged through a corres- pondence between the two. The infant plan was to secure about two hundred acres of land immediately south of the city, at what was then known as " the Summit," on which to build, not only stock yards, but packing houses and canning establishments. But soon the ideas of these men changed as to the purchase of two hundred acres; for, in May, 1883, arrangements were completed between them whereby Anderson was authorized to contract for-or rather, to secure options npon-more than eighteen hundred acres, embracing a large part of the area now con- stituting the City of South Omaha. Asso- ciated with him in this work was C. R. Schaller.

The land wanted, included a number of farms lying south and southwest of Omaha. The negotiations with these farmers were, necessarily, conducted with much caution, as publicity would have prevented the per- fecting of the scheme. Several months were spent in details.

The farmers and other owners of this land, mostly in that part of Douglas precinct now included within the corporate limits of South Omaha, did not part with their pos- sessions for a song. Smooth-tongued agents were not able to convince them that a good, sound price-such a price as farms well cul- tivated as theirs might bring if wanted by cultivators of the soil, adding to it a fair

*The Drovers Journal, December 31, 1892.

+Now (January, 1893) living at 1919 Burt Street, Omaha.

597

ORIGIN AND OPENING OF THE UNION STOCK YARDS.

amount for the fact of nearness of location to Omaha-ought to be all they could rea- sonably ask. Most (if not all) of them saw their opportunity and profited by it.

By the middle of August, eighteen hun- dred and seventy-five acres and a fraction had been secured, for which a total price of 8312,972.73 was subsequently paid-an av- erage of $167 an acre, nearly .*

So far, Mr. Anderson had put up all the money-over ten thousand dollars-and as- sumed all liabilities; but soon Mr. Swan came to the rescue, aided by a number of Omaha capitalists whom he had interested in the undertaking-prominent among them being William A. Paxton,t already men- tioned; and in a short time over forty thous- and dollars had been paid on the various contracts with the farmers. "Surely men who could pledge themselves to an outlay of so many thousands of dollars on an experi- ment (if experiment it was) were men who had the ' courage of their convictions.' It is just such men as these, who have followed on in the course of empire westward, and have made the West-' the vast, illimitable, changing West!'- what it is to-day."}

Growing out of these preliminary move- ments was the formation of two companies, in all respects legally distinet from each other, one of which, "The Union Stock Yards Company of Omaha (Limited)," was organized in Omaha, December 1, 1883, for the purpose of establishing stock yards, such as it was thought would, in the end, answer all the needs of the market at this point, however much the business might inerease.

The articles of incorporation of this new stock yards company, asserted, among other things: "That we, Alexander II. Swan, William A. Paxton, John A. Creighton, Peter E. Iler, John A. MeShane, Thomas Swobe and Frank Murphy, have associated ourselves together for the purpose of being incorporated under the laws of the State of Nebraska :- that is to say, subdivision enti- tled ' corporations' of chapter entitled ' cor- porations,' being chapter sixteen of the

Compiled Statutes of Nebraska of 1881; and, for the purpose aforesaid, we have adopted the following articles of associa- tion: First. The name of this corporation shall be 'Union Stock Yards Company of Omaha (Limited).' Second. The princi- pal place of transacting the business of this corporation shall be the City of Omaha, in the County of Douglas and State of Ne- braska. Third. The general nature of the business to be transacted by said corporation shall be the purchase and sale, the feeding and caring for, slaughtering, dressing, pack- ing and holding for sale, selling, and selling for others, of live stock, including cattle, hogs, sheep and horses, and shipping by refrigerator cars and otherwise, of meats and the product thereof, and doing generally the business of a stock yards and whatever is incident or in anywise related to or usually connected therewith."

The capital stock was fixed at one million dollars, which could be increased by vote of the stockholders. Business was to com- mence when seven hundred thousand dollars of stock had been subscribed, and as that amount was already taken it was stipulated that operations were to commence on that day (December 1, 1883) and continue until the first day of December, 1950, a period of sixty-seven years. The stock was divided into shares of one hundred dollars each. There were twenty-eight subscribers: nine of whom held 400 shares each, §360,000; one of whom held 300 shares, 830,000; one of whom held 250 shares, $25,000; ten of whom held 200 shares each, $200,000; three of whom held 150 shares each, $45,000; five of whom held 100 shares each, $40,000. Total, twenty-eight subscribers, 7,000 shares, $700,- 000 .*

The company immediately organized, by the election of W. A. Paxton, president; Alexander II. Swan, vice-president; John II. Donnelly, secretary; James M. Wool- worth, attorney. The board of directors consisted of W. A. Paxton, A. H. Swan, Frank Murphy, B. F. Smith, P. E. Iler, John A. McShane and Thomas Swobe. At the election of officers for the company the next year, the following persons were chosen: A. HI. Swan, president; M. A. Upton, secretary ;

*See, post, Chapter III.

+" In December [November], 1883, Mr. Swan made overtures to William A. Paxton, with a view of getting him and his friends in (maha, interested in the scheme. At that time, Mr. Paxton was interested in the stock yards at Council Bluffs. After carefully considering the matter he concluded to go into the South Omaha enterprise, and at the same time induce hia friends among the wealthy men of Omaha to invest."- Sorenson's History of Omaha, p. 317.

# The Drovers Journal, December 31, 1892.

*" In 1883 a number of capitalists recognized that as Omaha was the center of the finest corn producing region on the contl- nent, it nught to be a great live stock market and pork packing center. They formed the Union Stock Yards Company, on a [paid up] capital of $700,000 .- South Omaha Daily Tribune, De- cember 31, 1892.

598

HISTORY OF SOUTH OMAHA.

W. A. Paxton, treasurer. For 1885, the persons elected were John A. McShane, president; W. A. Paxton, vice-president; J. C. Sharp (who had previously been appointed), secretary and treasurer. Since then, at each annual election (the first Mon- day in December), the gentlemen last men- tioned have been re-elected.

After the organization in 1883 of the "Union Stock Yards Company, of Omaha (Limited)," one of the first things, of course, to be looked after was the purchase of suita- ble grounds for the stock yards. Naturally enough there was no particular haste, but due deliberation in this matter, as it was one of paramount importance. The choice was finally made and a tract purchased of Alexander H. Swan and others (who liad then formed a land syndicate) .* This trans- action took place February 21, 1884. The land-one hundred and fifty-six and forty- eight hundredths acres -- was a part of sec- tion four, in township fourteen north, of range thirteen east, of the sixth principal meridian of the government survey, all in what is now the City of South Omaha, the amount paid for the land being $78,250. The boundary lines of this tract commenced at the southwest corner of the section before mentioned, running thence north along the west line of said section four, 1,650 feet, thence east parallel with the south line of said section four, 4,060 feet, to the west line of the right-of-way of the Union Pacific Rail- road Company, thence southeasterly along the west line of said right-of-way 970 feet, to a point 802 feet north of the south line of said section four, and to the south line of lands conveyed by Fred Drexel to Leverett M. Anderson; thence south 65}º west, 1,934 feet to the quarter section corner on the south line of said section four; thence sonth 7010 west, 980 feet; thence south 713º west, 602 feet; thence north 23° west, 554} feet to the south line of said section four; thence west 924 feet to the place of beginning, con- taining one hundred and fifty-six and forty- eight hundredths acres.t

But the first property actually purchased by the company, was the interest of W. A. Paxton in the Council Bluffs stock yards,

already mentioned. Paxton, at the time just preceding the organization of the Union Stock Yards Company of Omaha, December 1, 1883, had over $100,000 interest in the Council Bluffs yards and Nelson Morris, of Chicago was also a part owner of them. It was a condition precedent to the taking stock by the former in the new Omaha com- pany that the latter were to purchase, at a stipulated price-$110,000-his interest in the Iowa property-paying in stock $50,000 and in cash $60,000; and the stipulation was faithfully carried out.

It may seem surprising that the men who constituted the new organization should have been willing, upon what was a mere experi- ment, to invest so largely in the enterprise, But they understood from official reports that the number of cattle, sheep and horses, on various farms and ranges in the West, at that time, which would seek naturally, the markets of the East largely through Omaha, were, in-

Cattle.

Sheep.

Horses.

Wyoming

521,213

450,225

11,975

Colorado

791,492

1,091,443

42.257

Montana

428,279

279,277

35.114

Idaho

191,157

117,320

24.300

Washington.

198,184

388,983

45,848

Oregon

598,015

1,368,162

124.107

Utah

132,655

523,121

38,131

Nebraska

1,113,247

227,453

204 864

Kansas.

1,033,133

629,671

430,907

Dakota.

206,783

85,244

41,670

In addition, there were in Arkansas, Mis- souri, Texas and New Mexico, 8,032,009 head of cattle; 9,248,519 sheep; and 1,633,- 262 head of horses. At least twenty-five per cent. of these would reach the northern ranges in the fall of the year 1884 (to say nothing of the corn-fed cattle of western Iowa, that would seek an Omaha market), if proper opportunities were offered for handling stock at this point .* Not only most of this immense number of cattle, sheep and horses, but an enormous number of hogs also, might be better marketed here, than farther east. In or near Omaha, then, it was clear to the minds of these men, that stock yards, on a large scale, were demanded; and they proceeded to act upon (for they had the courage of) their convictions,

"The best practicable place on the tract was chosen for the creation of pens, and work was commenced on the eighth day of April, 1884, under the immediate direction of William A. Paxton, the president of the #See the Chicago Times of March 18, 1884.

*A full account of this syndicate is given in Chapter III. following.

+The Union Stock Yards Company divided the payments for the tract as follows; 156% acres land @@ $500, for which they were to pay, cash $1,250; 6 notes for $12,500 each, $75,000. Total, $78,250. These notes were to be made payable one on the first dsy of June and December, 1884, '5 and '6.

599

ORIGIN AND OPENING OF THE UNION STOCK YARDS.

company, who must be considered the real founder of South Omaha-a man exten- sively known as having a big purse but a bigger beart." A large force of men and teams were employed, and soon a ramarka- ble transformation was wronght on the "Drexel Tract," a portion of which con- stituted the company's purchase. Many ob- stacles had to be overcome.

"The first point of attack by the workmen under the eye of Mr. Paxton, was the low swamp or marshy slough that extended from the present west end of the stock yards to what is now the George H. Hammond Com- pany's packing house.

"The work was continued uninterruptedly, and with such success, not only in grading and filling, bnt in making pens (the pens then covered about ten acres, and five thousand cattle could have been handled daily), and arranging other conveniences, that by the first day of August the yards, under the superintendency of John F. Boyd, were sufficiently completed to have received live stock had any arrived on that day. But none reached the place until the thir- teenth, at noon, when a train of twenty-five cars, by the Union Pacific Railroad, came in, loaded with 531 cattle. The consignor was F. Walcott, of Medicine Bow. * * *

"The hay furnished the cattle was 3,750 pounds, and the next day (August 14, 1884), the stock was reshipped, in twenty- five other cars, on the Rock Island Railroad, bound for Chicago-six of the cars having twenty-two head each, and nineteen taking each twenty-one head. Thus it was, that the Union Stock Yards of Sonth Omaha entered upon its successful career, and " The Union Stock Yards Company of Omaha (Limited)" booked its first consignment of cattle.

"The first hogs received at the stock yards was on August 27, 1884, by way of the Union Pacific Railroad. The consignors were Black & Nash, of Kearney, Neb., the hogs being consigned to themselves at Chi- cago, and were shipped in cars No. 5,097 (fifty-six hogs) and No. 16,525 (fifty-two hogs). They were reshipped by way of the Chicago and Milwaukee Railroad, the same day, and were fed in the yards four bushels of corn, for which four dollars was charged.

"Now, let us listen to some of the ‘pro- phetic voices' concerning the new stock yards. This is what C. F. Goodman, presi-

dent of the Omaha Board of Trade, said, at the close of 1883: 'The recent forming of the Union Stock Yards Company, of Oma- ha, composed of large and enterprising capi- talists, for the purpose of doing a general stock yards business, near [but outside] the southern limits of this city, and to establish slaughter and packing houses, are destined to exceed our most sanguine expectations; and while this enterprise is yet in embryo, it is already beginning to make itself felt over the country tributary to this city.'

"And this is the language of Thomas Gib- son, secretary : 'Our stock yards and pack- ing interests, just now so largely increasing, will help immensely to swell our population and extend the limits of Omaha; and this board will use every means available to assist these new companies in their advance- ment, and in securing any desired public improvement which will facilitate business in opening the avenues of connection be- tween their establishments and the business center of our city.'"*

As a forecast of the future, a writer, soon after the stock yards had been made ready for occupation, had this to say:

" While it is not necessary that the crack of the cowboy's whip should be sounded con- tinually in the vicinity of the shambles, it is important that all great cattle grounds should have as convenient facilities for reaching the demand markets as is consist- ent with the proper raising and growth of cattle. It was this reason, among others, that induced some of the leading and most enterprising capitalists of Omaha, many of whom are leading stockmen, to establish a stock yard there. No city in the west offered better inducements, especially because of its extra fine railroad conveniences, nearness to the cattle grounds, and suitability in all other respects. So honorable, business-like, feasible and fair did the original founders of this company enter upon their business, that they were soon joined by some of the most active and enterprising capitalists in the East, as well as in England and Scot- land. To-day it is one of the strongest and most important corporations of the kind in the world, and there is not the slightest doubt but the extent of its business will fully justify operations on the largest possible scale, and the heaviest investments. *

* The Union Stock Yards Company is certainly

*The Drovers Journal, December 31, 1892.

600

HISTORY OF SOUTH OMAHA.

one of the most creditable industries ever established in the Central West. * * * It has an authorized capital of one million dollars and 260 acres of land located exactly three and a half miles southwest of Omaha."*

Six days before the stock yards were de- clared ready for business, the directors (July 25, 1884,) purchased the residue of the stock of the Council Bluffs Company, so that the Union Stock Yards Company of Omaha, be- came sole owner of both.t

Enough has already been stated to clearly show that the year 1884 was the one in which was established, in what is now the city of South Omaha, the Union Stock Yards, by " The Union Stock Yards Com- pany of Omaha (Limited)." It was the year in which the " Magic City " was really founded; and the day (April 8th) of that year (the date of breaking ground by the Union Stock Yards Company), is appropri- ately the day to celebrate as South Omaha's anniversary.#

At the same time that the stock yards were being urged forward, there was another undertaking in the hands of the company. A building (not large, as the people of South Omaha would now look upon it) was erected for packing purposes, and leased to a responsible firm in Detroit for a term of three years. It was the beginning (as will hereafter be shown) of a great industry built up in the immediate vicinity of the yards.§

*The Leading Industries of the West (1884), pp. 27, 28.

"" The stock of thia [the Council Bluffs] company, which was $400,000, par value, was hought by the atockbolders of the Union Stock Yards Company, as a private investment, for $75,000, and was turned iu to this [latter] company by them at a par value of $350,000, this amount to apply on their subscriptions to the capital stock of this company. (See resolution unanimously adopted at a directors' meeting, held July 25th, 1884 ."-From the re- port of M. A Upton, secretary, fur the year ending November 15, 1884. The secretary adds: "The purchasers of the stock of the Transfer Yards [at Council Bluffs] constituted the whale of stockholders of the Union Yarda [of Omaha] and none others."

t" South Omaha dates its founding on that day [April 8, 1884] which. it is believed, beginning with the 8th of April, 1894, will he duly celebrated [at the end of ] each successive ten years; at least, it should he."-The Drovers Journal, December 31, 1892.

¿ The " Dressed Meat and Packing Concerns," of South Omaha, will form the auhject of a subsequent chapter.

It has already been explained that num- erous obstacles had to be removed before the " opening day " of the stock yards. Not the least of these was the obtaining of sufficient water. It was at first forced in by steam pumps, from wells sunk at the pens and from a pond adjacent; but, it may be premised, this plan afforded only a limited supply, and other means had to be resorted to. A small stream was found, over a mile away, in a northeast direction, which was fed by springs. Across this stream, on land owned by the syndicate before spoken of, a dam was thrown, and a small lake formed, of clear, cold water. From this, at a large ex- pense, hereafter to be more particularly mentioned, the water was conveyed to the yards. But even this (so great was soon the demand) proved ineffectual in the end, and the American Water Works Company, of Omaha, finally came to the relief, and the cattle of the yards " drink Missouri River water the same as common folks."*

NOTE .- The credit of giving to South Omaha the popular name of the " Magic City" belongs to J. B. Erion, who, in an address read before the Board of Trade. used the words, which (so far as the writer of this history can find) was their first application to this place. It is true, the same name had been applied to Lincoln. also to Hast- ings, but, in neither case, with that fitness as when given to South Omaha; and, as to those places. it was soon discontinued.

"Such is South Omaha of to-day. Four years ago her site was a cornfield. Her future is an unknown quantity. Situated as she is. however, in the heart of the great corn belt, centrally located on the great overland route between ocean and ocean, in the ' happy medium' of lati- tude, where she does not freeze in winter nor scorch in summer, there is the indication that cer- tain commercial greatness is in store for her. With her past so near the present, truly has she earned the title of the 'Magic City '."-M. A. Up- ton. in Mag. of Western Hist., Vol IX (April, 1889), p. 681.

*J B. Erioo, in The Eagle, April 25, 1891. See. also, an ar- ticle by M. A. Upton, in Mag. of Western Hist., Vol. IX (April, 1889), p. 681.

CHAPTER II.

PROGRESS AND PRESENT CONDITION OF THE UNION STOCK YARDS.

Although the business at the Union Stock Yards did not spring into enormous propor- tions at a single bound, yet the volume transacted from August 13, 1884, to the end of November was gratifying. The receipts were as follow: cattle, 86,095; hogs, 1,402; sheep, 3,479; horses, 447. Total, 91,423. The car loads were as follow: cattle, 4,245; hogs, 25; sheep, 34; horses, 20. Total 4,324. There was received during August, 516 car loads; September, 1,265; October, 1,907; November, 636. This stock was dis- posed of as follows: Shipped over the Chi- cago, Rock Island & Pacific, 1,419 car loads; Burlington & Missouri River Railroad, 1,228; Chicago, Milwaukee & St. Paul, 757; Chicago & Northwestern, 516; Wabash, 84; Missouri Pacific, 22; Union Pacific Railway, 148; driven out, 150 car loads. Average net earnings per car, $2.373.

A recent writer, in recording pioneer events connected with the stock yards, says:

" John F. Boyd, now [May 9, 1891] sher- iff of Douglas County, was the first superin- tendent of the yards, and performed the first active labor toward organizing the work, and building the yards. He came here from the Council Bluffs yards, and continued to serve as superintendent until elected sheriff in 1888.

" Arthur Shriver was among the first men here, having come in April, 1884, and was followed in June by Frank Boyd, D. R. Scott, Ed. Cullen and ' Ike ' Brayton. Frank Boyd is now [May 9, 1891] superitendent. I. A. Brayton, or . Ike' as he is known by everybody, was the first yard master and assistant superintendent. The yards could not be run successfully without him, to this day. Billy Williams came in April, 1884, and Dan Williams, Billy's brother, arrived in July of the same year. The latter is known as 'happy Dan,' on account of his faculty of always seeming contented under all circumstances. * * *

"Ed. Hulett was the first weighmaster, and was succeeded by Ed. Stearns, in the

spring of 1885. Ed. held down the job for over four years, and then left it for the position of live stock reporter for The Drovers Journal, which position he fills with much ability.

" James Paxton, a nephew of W. A. Pax- ton, was the first time-keeper. Ile now [May 9, 1891] has charge of the Council Bluffs yards.

" Mr. Hutchins was the first foreman of the yards, and was succeeded by William Stewart, who landed May 2, 1884. * * At that time not a post had been set or a board sawed; neither did Mr. Stewart, as recently stated in the [Omaha] Bee [of May 3, 1891] drive the first stakes, but took up the work where Mr. Ilutchins left off, in the fall following:"*

A little over a year after the purchase of their first tract of land, on which to locate their yards, the Union Stock Yards Com- pany had deeded to it an additional tract, amounting to ninety-seven and eight-hun- dredths acres, by L. M. Anderson,t for the sum of $14,562, the deed for this having been executed February 25, 1885; so that then the company owned in all two hundred and fifty-three and fifty-six hundredths acres.

On the 28th of May, 1887, the stock yards company purchased for $44,183, from the Sonth Omaha Land Company( the syndicate's successor, really), seventy-six acres and three-tenths of an acre, "excepting, how- ever, all lands that have hitherto been con- veyed to the Omaha & Southwestern Rail- way Company and the Omaha Belt Railway Company for right-of-way purposes, which right-of-way contains 8.64 acres, more or less, leaving the amount of land conveyed

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History of the city of Omaha, Nebraska, Part 96

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