USA > Nebraska > Douglas County > Omaha > History of the city of Omaha, Nebraska > Part 99
Note: The text from this book was generated using artificial intelligence so there may be some errors. The full pages can be found on Archive.org (link on the Part 1 page).
Part 1 | Part 2 | Part 3 | Part 4 | Part 5 | Part 6 | Part 7 | Part 8 | Part 9 | Part 10 | Part 11 | Part 12 | Part 13 | Part 14 | Part 15 | Part 16 | Part 17 | Part 18 | Part 19 | Part 20 | Part 21 | Part 22 | Part 23 | Part 24 | Part 25 | Part 26 | Part 27 | Part 28 | Part 29 | Part 30 | Part 31 | Part 32 | Part 33 | Part 34 | Part 35 | Part 36 | Part 37 | Part 38 | Part 39 | Part 40 | Part 41 | Part 42 | Part 43 | Part 44 | Part 45 | Part 46 | Part 47 | Part 48 | Part 49 | Part 50 | Part 51 | Part 52 | Part 53 | Part 54 | Part 55 | Part 56 | Part 57 | Part 58 | Part 59 | Part 60 | Part 61 | Part 62 | Part 63 | Part 64 | Part 65 | Part 66 | Part 67 | Part 68 | Part 69 | Part 70 | Part 71 | Part 72 | Part 73 | Part 74 | Part 75 | Part 76 | Part 77 | Part 78 | Part 79 | Part 80 | Part 81 | Part 82 | Part 83 | Part 84 | Part 85 | Part 86 | Part 87 | Part 88 | Part 89 | Part 90 | Part 91 | Part 92 | Part 93 | Part 94 | Part 95 | Part 96 | Part 97 | Part 98 | Part 99 | Part 100 | Part 101 | Part 102 | Part 103 | Part 104 | Part 105 | Part 106 | Part 107 | Part 108 | Part 109 | Part 110 | Part 111 | Part 112 | Part 113 | Part 114
*See The Drovers Journal for December 31, 1892: art .; "Our Review."
+Fully described in a subsequent chapter.
*Union Stock Yards Directory, by Bert Anderson and A. F. Stryker, p. 4.
CHAPTER III.
THE "SYNDICATE" AND SOUTHI OMAHA LAND COMPANY.
The pioneers of the territory included within what is now the incorporated limits of South Omaha, came not to form a city, but to secure themselves farms; and some of them came early, even at a date when Omaha was only known on paper. And they continued to live, until a recent period, in Douglas Precinct -a division of Doug- las County not yet wholly wiped out by the onward march of a "metropolitan city," or of a "city of the second class, having over eight and less than twenty-five thousand inhabitants."
Those pioneer times just antedating the founding of South Omaha are well remem- bered by those who are now living. But how many of them, ten years ago, for one moment imagined that, of some one of their farms, a single acre might be picked out, which, if cleared of all its buildings, would, on the first day of January, 1893, be worth $100,000? But the future was not open to the score of farmers in this goodly portion of what was then Douglas Precinct, who, in the spring of 1883, sowed their grain and planted the corn on land worth, as they be- lieved, fifty dollars an acre, although one or more gifted with a far-seeing eye, would not be anxious to sell at four times that figure.
The men who first conceived the idea of, and who formed themselves into a " syndi- cate" to purchase the few farms and tracts lying to the south ward of the City of Omaha, and to create, upon the tracts so bought, stock yards and packing houses, also a town -to these men, South Omaha owes largely whatever is to-day of the city. It is proper, therefore, that the names of these men, who, on the 30th of August, 1883, were deeply interested in the movement, should be made a matter of record: A. II. Swan, C. A. Righter, Colin J. Mackenzie, M. C. Keith, August Richard, W. A. Paxton, Milton Rogers, J. E. Markel, Thos. Swobe, John. A. McShane, Iler & Co., Caldwell, Hamilton & Co., Frank Murphy, Ben B. Woods. Geo. E. Barker, Samnel E. Rogers, J. M. Wool-
worth, J. H. Dumont, Charles F. Manderson, Benj. F. Smith, Samuel Allerton.
What the syndicate accomplished is first to be considered.
It is to be borne in mind that on the first day of December, 1883, was formed, in Omaha, "The Union Stock Yards Company (Limited)"; and it has already been shown that, previous to that date, a large tract of land (including several farms) had been pur chased by a syndicate, not only for stock yards and packing houses, but also for the laying out of a town contiguous thereto .*
And here it may be explained that the tracts thus secured were from the following named gentlemen, to whom were paid the following sums:
Acres.
Amount.
John Kennelly.
220
$41,552 00
Fred. Drexel
365
47.808 57
Geo. Holmes
148.15
25 483 50
John Bagley
147
38,220 00
Patrick Bagley
31
8,060 00
S A. Orchard.
120.50+
20,166 66
C. L. Clark
160
40,000 00
J. W. Lee
300
75,000 00
R. Hendricks
1181 4.068 00
J. Thompson.
266§
12,620 00
The whole number of acres was 1,875.65, at a cost of $312,978.73; but 464 acres lay outside the present South Omaha, costing $30,076.67. This leaves the actual purchase inside what are now the city's limits, 1,411.65 aeres, costing $282,902.06, equivalent, on an average, of a small fraction over $200 an acre.
On the first day of January, 1884, all these lands, inside and outside the present limits of South Omaha, were conveyed in a trust-deed to the syndicate-that is, exe- cuted by Leverett M. Anderson and wife
*Ante, p. 597.
"Scarcely eight years ago the slie where twelve thousand people now live and prosper ; where 100,000 car loads of traffic are annually handled; where business to the extent of more than $50,000,000 is done every year, was common farming land." -South Omaha-The Magic City, hy Samuel P. Brigham, Joseph J. Breen and Z. Cuddington, May 7, 1892.
+Eighty acres of this fract lies west of, and outside the limits of South Omaha,
Wholly in Sarpy County and outside South Omaha.
¿ All io Sarpy County and beyond the city limits.
613
614
HISTORY OF SOUTH OMAHA.
(who had secured the title to them), to Alexander H. Swan, William A. Paxton, Thomas Swobe, Frank Murphy, Charles W. Hamilton, Peter E. Iler, and James M. Woolworth, trustees,-the whole lying in the counties of Douglas and Sarpy, Ne- braska-to secure the payment of bonds to the amount of $1,400,000; but it was stipu- lated in the deed that there should be con- veyed to the Union Stock Yards Company, of Omaha, (limited), the 156.48 acre tract which has already been described ; and it was also stipulated that the trustees should lay out the remainder of the lands, or so much and such parts as they in their dis- cretion, might think expedient, into a town, with streets, passage-ways, public grounds, lots, blocks, and reserves, and improve the same, or cause the same to be improved by roads, walks, railroads, water-works, gas- works, and other convenient and proper structures and works of whatsoever nature, the planting of trees and pleasure grounds, and otherwise, and they might establish and maintain, or cause to be established and maintained, lines of transportation of per- sons and property, and reserve and donate and convey to proper parties, lots and par- cels of these lands for schools, churches and other public buildings.
Now all these lots, except such as were reserved, were to be disposed of under certain regulations mentioned in the deed, and the proceeds were to be held by the the trustees in lieu of the lands for the security of the bonds issued by them.
The trustees before mentioned, at once organized with A. II. Swan, as president; Frank Murphy, as treasurer; and Thomas Swobe, as secretary ;- appointing for direc- tors, A. II. Swan, Thomas Swobe, Peter E. Iler, W. A. Paxton, Frank Murphy, Charles W. Hamilton and J. M. Woolworth. The organization, it must be understood, was wholly and legally distinct from the Union Stock Yards Company. After the organi- zation of the syndicate, M. A. Upton was appointed assistant secretary and manager, and L. M. Anderson, superintendent. The prospective plans of the syndicate and their expectations of what would be the result of their scheme, is thus set forth at that date by one who understood how strong were the convictions of all in its ultimate success.
" The adjacent lands to Omaha were care- fully looked over, and certain properties
situated on the line of the Union Pacific Railway, and adjoining the City of Omaha, were selected, being only seven minutes from the Union Pacific Depot; and an arrangement was entered into with that rail- way to continue the present [1884] dummy train, which runs to and from Council Bluffs, on the east side of the Missouri River, every hour, to the lands that were thus chosen. * * *
" It is hard to form or convey an accurate mental picture of a country one has never seen. The imagination is an uncertain quality, and it plays fantastic tricks with merely written descriptions. Nevertheless, I will essay the difficult task of describing this portion of the Nebraska prairie, with the object of delineating the country and its natural adaptation for the purposes required, viz. : 21 suburban town to Omaha, and the stock yards, packing houses, etc., for the development of a vast trade, yet in its infancy. .
" It must be borne in mind that the stock yards and packing houses (lands for which have been reserved and set apart) are to be so far removed from this vast pur- chase for a suburban town, that they will offer no ground of objection to sale for residential purposes. The yards and packing houses, etc., will be out of the sight of the residential portions of the main estate, and be sufficiently far removed to render them no objection. The estate will be laid out into a well arranged and care- fully studied town for workingmen nearest to the yards. The more easterly portions will be subdivided into lots suitable for more wealthy residents. By reference to the map it will be seen that this suburban town will not only be reached by the Union Pacific main line, but by a belt or circular line of railway, now fully established, con- necting all the six eastern roads at this one point, and thus giving every facility, at very low rates, for merchants, clerks, em- ployes of the various railroads, to reach their homes in a few minutes from their various occupations and employments; and, also, by a cable line. The undertaking has had the entire support of the Union Pacific Railway and its local management, as well as the Burlington & Missouri River Railroad in Nebraska.
"So that the main features of the lands chosen may be rightly comprehended by one
615
THE SYNDICATE AND THE LAND COMPANY.
who is a stranger to such lands, a common error should be corrected, and that is to suppose a prairie to be a dead level. It is not so, but on the contrary, the American plain is ever ascending to the higher alti- tudes until it merges into the lower slopes of the Rocky Mountains. The tract of land referred to comprises low hills through nicely graded little slopes or valleys, nearly all gently sloping to the present main line of the Union Pacific Railway, with rising ground on each hand. In fact, the contours of the land are pretty hills or dells, and when the landscape is clothed with a due proportion of wood, as this property is, the scene is exceedingly pleasing, and, certainly, most picturesque. Where not under culti- vation there is a rich mould clothed with a luxurious growth of grass, like an English meadow. The entire tract is underlaid by a bed of gravel, which forms a vast store- house for water, with a never-failing stream running through the entire estate, from the north to the south.
" This is a fair description of the purchase in its outline feature. This tract of land being secured, it was offered to certain gentlemen upon the most advantageous terms, viz .: That the owner would convey the same to any responsible parties as trus- tees, who would agree to lay it out into a suburban town and promote a system of stock yards, and organize companies to erect packing houses for dressing beef, cattle, sheep and hogs for packing or ship- ment by refrigerator cars to the Eastern cities and Europe, and the utilization of all the products by aid of fertilizing works, canning establishments, glue and bone fac- tories, etc., and other such important manu- factories; and in such case he agreed to accept bonds running over a long series of years, with the very low rate of five per cent. interest; receiving such bonds as in full payment and consideration for his lands.
" After a careful examination of the title to the property, and in accordance with the agreement, a certain trust was formed and deed executed to the following gentlemen: William A. Paxton, A. II. Swan, Charles W. Hamilton, Frank Murphy, Peter Iler, Thomas Swobe and .J. M. Woolworth. One of the most important features in this trust deed is, that under no circumstances, of any nature or kind, can this trust be wound up, and the entire lands sold without the con-
sent of a majority in interest of the holders of the bonds, and thus virtually vesting the sole control in the bondholders. It also provides that all property sold from time to time shall be applied to the liquidation of the bonds and interest due thereon. Printed copies of this trust deed may be obtained. The trust deed is entirely in accordance with the laws of the State of Nebraska, and the terms of trust have been settled and agreed to by a gentleman of the highest standing and professional reputation-the Ilon. J. M. Woolworth, who is an attorney and counsellor of years' standing in Ne- braska, and who, it may be asserted, is of United States repute.
" The next question that to any inquiring mind will arise is, -. Ilow is this property to be sub-divided and dealt with, and what are the probable returns for the investment ?' The great question of drainage arises first. The draining is by means of the slopes or valleys all running into the main drainage formed by the creek that follows the line of the Union Pacific Railway (as will be seen on the map), which empties into the Papillion River, and thence passes on into the Mis- souri, rendering the natural drainage perfect in every respect, and in the place of running into the City of Omaha, passes directly away from it. Nearly all American cities are laid out in right angles, and to preserve these streets in a direct line of the compass, a vast expense is often incurred in grading, cutting down high lots and filling in low lands. The intention is to abandon this plan, and to deal with this property in laying it out in natural grades, using what nature has so freely given, and to sub-divide by means of the gentle sloping valleys so as to have an easy ascent or descent to and from the hills, which offer the most picturesque sites for the residential portion of the town. In Omaha, during the year 1883, $150,000 was expended in merely grading the streets, and with paving and sewerage over half a million dollars.
" The stock yards and packing houses are [to be] located in a valley at the southern extremity of the purchase, entirely out of view, and to comprise in such re-sale to that company about 156.48 acres. Two hundred feet on each side of the Union Pacific Rail- way, about two miles in lengtlı, are to be reserved for warehouses, stores, elevators, shops, and such premises as may require
616
HISTORY OF SOUTH OMAHA.
switches, and are directly dependent on rail- way facilities. The balance of the lands is to be sub-divided into lots and sold for cash or on long credit, with a reasonable rate of interest, payments for which being received either by bonds, cash or monthly.
" The taxes of Omaha are comparatively high, by reason of the vast expense of grad- ing. It is intended to inaugurate a proper system of self-government, independent of Omaha, confining the taxation within the limits of the South Omaha corporation; nevertheless the growth of South Omaha will be the prosperity of Omaha, and so vice versa.
" The probable returns must next be con- sidered, and they are so carefully studied that they are decidedly underrated rather than overdrawn:
The entire property, less the 200 feet herein referred to, will be divided into about 3.070 lots of about 60x150 feet each, which may be fairly esti- mated at $250 to $2,000 per lot. and will average $1,125 per lot $3,453,750
The 200 feet reservation. divided into lots of 50x200 feet, will produce about 350 lots for the purposes be- fore mentioned, as also for stores and retail business. These may be estimated at from $300 to $1.500 per lot. making an average of $900 per lot .. 315 000
Total $3,768.750
" This does not take into consideration the great advance by reason of improve- ments, buildings, etc., in the value of the property remaining from time to time un- sold, but is based upon actual value, with a due consideration, to a limited extent, of the assured improvements.
"The population of Omaha, together with Council Bluffs, which is on the east side of the Missouri, and if properly called would be 'East Omalia,' and is now connected with Omaha by local trains of the Union Pacific Railway, is over 75,000, and with the addition of the proposed important business, within five years from the present date at least double, or 150,000, may be relied upon. However, this would only be a fair calculation in proportion to the growth of the city within the last three years, even without the impetus now con- templated. The bonds therefore as an investment,-being secured by this prop- erty, speak for themselves. It may be asked, what about the interest on the capi-
tal invested, which is always increasing. Bear in mind that the great increase in the value of the lots as each resident builds his house, effects an advance in fact that can scarcely be estimated. Following a judi- cious plan, which has proved highly success- ful in the sale of railway lands, the trustees will reserve each alternate lot, and thereby gain the benefit of the adjoining improve- ments."*
It will provoke a smile to consider, at this date (1893), the declaration made in the foregoing extract, " that the stock yards and packing houses * are to be so far * removed from this vast purchase for a sub- urban town, that they will offer no ground of objection to sale for residential purposes;" and again, that "the yards and packing houses, etc., will be out of sight of the resi- dential portions of the main estate, and be sufficiently far removed to render them no objection." And the following (the itali- cising is ours) is even more facetious: "The estate will be laid out into a well-arranged and carefully studied town for working-men, nearest to the yards. The more easterly portions will be sub-divided into lots suit- able for more wealthy residents."
The map mentioned in the extract just given is the first attempt ever made to de- liniate South Omaha on paper. It is a map of Omaha, with South Omaha added on the south; but the latter is wholly fanciful, as it was drawn before the "town " of South Omaha was first surveyed (which survey is mentioned in the next paragraph). In some respects it conforms to the first recorded plat. East and west streets, lying east of the Union Pacific Railroad, are designated (as now) by letters, beginning with A and going south until I Street is reached. But north and south streets are not indicated either by names or numbers, except that what is now Twenty-Fourth Street is given as " Bellevue Avenue." A cable line enters South Omaha, where, from the north, the motor line now enters it, turning off of " Bellevue Avenue " at E Street, and running thence in a south- west course until the Union Pacific Railroad track is reached.
During the first half of the year 1884, the syndicate cansed to be surveyed and platted three bundred and eighty-nine acres of their
*Omaha : Its Past, Present and Future. By C. R. Schaller. Printed in the "Seventh Annual Report of the Board of Trade of Omaha, for the Year ending December, 1883." Published in the first half of the year 1884.
617
THE SYNDICATE AND THE LAND COMPANY.
land; one hundred and forty-four acres ly- ing in section 33, of towhship 15, north, in range 13, east, and twenty-five aeres in sec- tion 34, of the same township; also, one hun- dred and sixty-five acres lying in section 4, and fifty-five acres in section 3, of township 14, north, in the same range. The plat was completed and certified to by George Smith, county surveyor. July 18, 1884. The traet thus laid out was named South Omaha. It included considerably over one-fourth of the syndicate lands and was laid out into one hundred blocks, containing 1070 lots, each 60x150 feet in size, with streets 80 feet and alleys 20 feet in width. Trees were planted on each side of every street, twelve feet from the line of the lot; and near the north end of the town two entire blocks were reserved for park purposes. The tract as surveyed and platted was bounded on the north by a part of the present south line of the City of Omaha; on the east by (the present) Twenty-third Street; on the west by the Union Pacific Railroad right-of-way; and on the south by an east and west line running about one hundred and twenty feet south of (the present) O Street.
Says a writer soon after: "A tract of land has been selected a short distance south of Omaha, and in addition to having com- pletely appointed stock yards, this company (Union Stock Yards Company of Omaha) intend to build a little annex, or suburban city around their operating premises. It will be a location of pleasant, comfortable and cheap homes, especially for those con- nected with the stock yards, where there will be every desirable social, religious and educational advantage."*
Even before lots were put on sale, we have this published Omaha statement, enti- tled, -- " A word to Omaha Workmen :" "Thousands of suburban lots have been sold [in Omaha] for a small cash payment, the balance to be paid in installments of ten or fifteen dollars per month. There are a very large number of workingmen, and people of limited means generally, who have thus made a start toward acquiring homes and hundreds who are on the lookout for just such opportunities. Every cent is being saved by these people, and applied to lots which they have purchased, and upon which they are building small but comfortable
houses. They are punctual in their pay- ments, and a most desirable class of pur- chasers. Applications are coming every day from just such people for lots in South Omaha. This includes thousands of work- ingmen in this community, and the realiza- tion of permanent work in the stock yards, packing houses, etc., and of homes to be had on easy terms near their work, will make them substantial citizens. It encourages them to take a deeper interest in the welfare of the city and stop abuses through the ballot-box. Many of the Omaha working- men already have comfortable homes entirely paid for, and now are looking out for, and acquiring additional property upon which they are erecting small houses to rent.
" The almost universal movement on the part of Omaha workingmen shows that they are a frugal and industrious class, who are the backbone of the city, and ever ready to maintain law and order. This may open the question whether rents will maintain their upward tendency. There is no doubt on this point, for Omaha will next year, 1885, and for years to come, continue to grow rapidly. It follows, therefore, that all who now secure homes or put money in real estate will reap a handsome profit."
After the syndicate had made the plat of a part of their lands before mentioned and duly recorded the same, a system of exten- sive improvements began .* Water works, at an expense of $30,872.07 were erected, elear cold water having been furnished the Union Stock Yards as early as Angust 1, 1884, by the syndicate, from a point in the northeast portion of their lands, which was not included in what had before been laid off as a town.
"Not among the least of the natural ad- vantages of South Omaha, as a residence place," said a resident of the town, writing on the twenty-fifth of September, 1885, "is the splendid water from the South Omaha water works. In the northeastern part of
*The Lending Industries of the West (1884), p. 27. But it will he ohserved the writer confounds the Union Stock Yards Com- pany with the syndicate. "A little annex" is good, certainly!
*** The syndicate on New Years day. 1884. deeded their entire possessions (except what had been determined upon for the Stock Yards Company) to trustees in trust to secure the payment of $1,400 000 in bonds. These trustees then organ- ized for business-they would have a town surveyed aod platted * * * and then they would put on sale their lots and hy every loducement legally and fairly held out encourage emigration to South Omaha. They succeeded. * * * Emi- gration thus far had been promoted not only hy inducements held out for work at the stock yards and hy the two packing firms, but had heeo stimulated by the liberal policy of the syo- dicate in selling lots at a moderate price sod on loog time at a fair rate of interest ; hesides, many improvements were entered upon by the town proprietors which, it was clearly seen by all newcomers would' redound to their benefit."- The Drovers Journal, Dec. 31, 1892.
618
HISTORY OF SOUTH OMAHA.
[the syndicate tract, adjoining] the town site, which is covered with a dense growth of timber, is a deep gorge through which runs a stream of pure sparkling water, fed by a number of living springs. Across this stream has been erected a dam and on its banks are situated the crib, pump and boiler house. The supply of water, furnished as it is by never failing springs, is inexbaust- able, and has the advantage of being free from Missouri river mud, to say nothing of other filth. Since the first plant was made, additions have been built to the pump house, an additional boiler put in, and many other minor improvements made. There are two pumps with a joint capacity of 1,500 gallons per minute. The water is pumped, but as a matter of precaution a stand-pipe has been erected at an elevation of two hundred feet from the works, with a capacity for nearly one million gallons. This is kept full, for use in case of accident to the pumps or pipes. With this elevation a stream can be thrown fifty feet high at the stock yards, a mile distant, with stand-pipe pressure alone.
" The reservoir is in a most romantic spot, surrounded by a vast body of timber, which is to be underbrushed and otherwise in- proved for park purposes. At no distant day it will furnish. a shady resort for the increasing population of South Omaha, and for tired [Omaha] city people as well." *
Need help finding more records? Try our genealogical records directory which has more than 1 million sources to help you more easily locate the available records.