174 |
|
ADDRESS BEFORE THE NEBRASKA STATE HISTORICAL SOCIETY
ON THE EVENING OF JANUARY IS, 1906.
BY HON. NORRIS BROWN. ATTORNEY GENERAL OF NEBRASKA.
Ladies and Gentlemen:
The right of the state to tax railroads at
all is obtained from the same authority that the right to tax
other property is. Under the Constitution of Nebraska. every item
of property within its boundaries is subject to taxation except
that which is used exclusively for church, charitable, and
educational purposes. The warrant for that authority is found in
the 9th clause of the Constitution, and one feature of that I
would like to call your attention to specifically, and, for fear I
may misquote it, permit me to read it to you:
"The legislature shall provide such revenue as
may be needed by levying a tax by valuation so that every person
and every corporation shall pay it tax in proportion to the value
of his, or her, or its property and franchise, the value to be
ascertained in such manner as the legislature shall direct."
It is clear to start with that the property,
whether it is physical - in sight, or whether it is tangible - out
of sight, is taxable, assessed according to its valuation.
|
175 |
Under the second proposition it is equally clear that the value shall be ascertained in the method provided by the legislature. Now those two propositions, I take it, are settled by the Constitution. In obedience to that authority the legislature when it first met in this state passed it revenue law. For the purposes of this discussion it is sufficient to call your attention to the fact that in the year 1903 the legislature wiped it off the statute book from the first to the last section, and in its place they put what is now known as the new revenue act. It was an act not to tax part of the property in this state, but an act to tax all of the property in this, state - personal, real, tangible, and intangible. It also provided a detailed list by which the assessor became an inquisitor. It was his duty to put on paper and get the signature of the man who owned the property, every item of the property, whether little or big item. The attempt of this new law was the purpose, which is well known by everybody, of the legislature to raise more money for the state. This was the purpose of it. And you could not raise more money for the state unless you increased the taxes in the state, could you? That was the purpose of the act. And the reason for that purpose was that under the old law it was not only full of inequalities and iniquities, but it didn't raise enough money to pay the expenses of the government. And it didn't matter much which party was running the government; the government was running behind every year under the old law. That was the object of the new law - to increase the taxes. Now to observe generally that that law was partially successful, is the fact that the total assessment roll of this state, under the old revenue act, had never exceeded $180,000,000. All property - railroads and common folks, all of it - never had exceeded the sum of $180,000,000. Railroad property in the state had never been taxed to exceed $26,000,000; that was the sum and the highest mark it ever reached. Under the new law the assessment roll increased to almost $300.000,000, and the railroads from $26,000,000 to about $46,000,000 in round numbers. That gives
176 |
|
us an idea of these two laws as to their operation and
also a comparison of the corporation property. with other
property.
I am here to discuss particularly railroad
taxation in this state and under this law. This law undertook to
provide the method, as the Constitution provided, by which you
might ascertain the valuation of the railroad for taxation
purposes. My good friend, the professor [E. A. Ross], has
told you about the difficulties that confront any assessor
undertaking to assess a railroad. You must remember that the
railroad doesn't just lie within our state; it passes through many
states. It therefore becomes the duty of the assessor in this
state to find the valuation, not of the entire railroad, but just
of a piece of it, just a part of it. Those difficulties the
legislature undertook to minimize, to reduce to the lowest
possible degree, and to do that they went to great length in
declaring the method by which the state board of equalization and
assessment might investigate that question. I want to talk to you
a little while about that method.
In the first place, that law said that every
railroad corporation doing business in this state should make a
return to the state board of all of its property, its physical
property nothing about its stocks and bonds - but its physical
property; its miles of right of way; its depots, their cost; its
bridges, their cost; its trackage; every item of physical property
that it owned in the state must be returned to the state board,
and that the value of that physical property should be returned to
the state board and sworn to by the agent of the railroad making
the return. Now, my friend discusses quite clearly how
insufficient and unsatisfactory that method would be, to assess it
at that rate; just take the physical property at what it is
returned and assess it. That would be unfair. Let its apply the
test to a railroad system in this state. Here is a railroad that
has a thousand miles within Nebraska, in round numbers. The total
system has 3,000 miles operating in several different states. They
make a return of their cars and physical property in Nebraska, and
the officer swears that it is worth on an average $20,000 a mile,
making the re-
|
177 |
turn that is sworn to. The legislature that passed the
law thought that that would not be a safe test upon which to base
the taxation of a railroad, and they provided that the value of
its physical property as returned by the railroad agent should not
bind the state board making the assessment, and yet that was one
of the tests the law did provide the board must examine. Under the
law the state board had followed the injunction of the law and
applied that test, that is, they had examined these returns and
found that they were worth $20,000 a mile as returned by a
statement, - and this of a railroad that you could not buy in the
markets of the world for $60,000 a mile. Do you know of anybody
whom you are satisfied is fair, that would argue that a railroad
should be assessed, then, according to its physical property? in
Nebraska, under this law, it can not be assessed by the physical
test alone. Why? Because this same act provides further on that
the railroad must make an additional and further return to the
state board. It provides what that return and the schedules shall
contain. And what is it? The total capital stock issued by the
corporation. What else? The market value of that capital stock.
What else? The dividend that has been paid by that corporation on
its stock during the preceding year. What else? The total issue or
its bonded indebtedness outstanding against the corporation, and
its value and rate of interest, and whether paid or not. Now we
have a second test provided for here by the legislature under this
provision of the Constitution that authorizes it; a test; that
permits the assessing board to investigate the stock and bond
values that my friend talked to you about. He said that was an
unsatisfactory test, in a measure. I agree with him, in a measure.
Any test is unsatisfactory that undertakes to fix the valuation of
a corporation that is doing a business in a number of states when
you can not fully, exactly, and accurately fix a value on that
part of the system in this state. But let me tell you, the courts
of this country have been dealing as often as legislatures have
with the question of how to tax railroads, and the courts in this
country, ever since 1875,
12
178 |
|
when Chief Justice Miller laid down the rule that no
fairer method has ever been devised by the legislature to fix the
value of a railroad than to find the value of its stocks and
bonds, and from them to ascertain the value of a part of the
system, have sustained the Title. Why is it fair? Because when you
buy the stocks and bonds of a railroad you have bought all the
railroad. You haven't bought anything else. And when you own the
stocks and. bonds of a road you own it all, every mile of it,
every car, every asset that it holds, whether assessed in
connection with the company or something else, you are the owner
of that railroad system, depots and all. The difficulty with the
stock and bond test, and the reason why it is unsatisfactory is
this, that you can not find out what the value of the stocks is.
That is the trouble. It is easy to find the value of a bond
because it has a reasonably staple value on the market. But when
you come to the value of the stock which is issued whenever the
directors make up their minds they want more stock outstanding,
that is a different proposition, because it is subject to
manipulation sometimes. But who manipulates it? The fellow who
owns it, and the fellow who knows what it is worth. The fellow who
has to pay the taxes on it. The fellow who is dealing in those,
kinds of securities, he is the fellow who manipulates it. And if
he does it to his own disadvantage he can not complain of the
assessing board, because it is his act, and not the act of the
assessor. But the board is not bound by any market value
anyhow.
It is the duty of the board under the second
provision to investigate and ascertain the actual value of the
storks and bonds, and it is the duty of the company to return
actual value if it knows it, as well as the market value. In this
state in 1904 there were returns made of a railroad operating in
eleven states that had outstanding $208,000,000 of stock, who
swore to the state board of this state that they did not know what
their capital stock was worth. It did not have any market value
because its owners had taken it off the market. It was not quoted
since 1901. Now it had no market value. They swore under oath that
they did not know what it was
|
179 |
actually worth. That left the board up in the air. Left
them to resort to some other means of investigation, which they
did, to find out what the value of that stock was. But now then,
let us carry this application of this principle to the road that I
started with, of one thousand miles that returned its physical
property to be worth $20,000 a mile. It said the stocks were not
worth par, and the board took them at their own value, not
$200,000,000 as they had outstanding, but $175,000,000, what the
board itself said it was worth, or about 82 cent's on the dollar.
If you take the mileage of that road at their own figure, take the
bonds at par, and they were above par, and you have a stock and
bond valuation on that road of over $100,000 to the mile, a
property whose physical return value was only $20,000. This is the
second test of stocks and bonds according to this law.
Now there comes the third proposition. The
legislature was not satisfied to have the board investigate the
value of a railroad two ways, but it said you must do it three
ways, and they made a command upon every railroad operating in
this state to make a sworn return to the state board of the amount
of its earnings, gross and net. My friend said that he thought
that this test was a pretty fair test. If you capitalize the net
earnings which they say was $4,000 a mile at 4 per cent, that
would give the value of the road. His argument was - and the
courts agree with him - that the fair rate to capitalize earnings
is six per cent. But I have yet to find a reason why the per cent
should be that high. Here is a plant which pays four per cent
dividends; it is a four per cent institution; its bonds all draw
four per cent and some four and one-half and five per cent. Will
you tell me why they should be capitalized at six per cent when
they are a four per cent plant? But we will take the court's view
of it and give the roads the benefit of capitalization at six per
cent, and what is the result as to this company I have been
talking about? Its net earnings average the system over, more than
$4,000 a mile. What is the net earning of a railroad? It is what
is left after every item of expense in the operation has been
paid. You have
180 |
|
maintained your road and kept it in repair. Not only
that, you have paid your taxes; and whatever is left, that goes
into your pocket; after all these expenses are paid, the rest is
net earnings. The state board in 1904 was not satisfied to have a
return made as to the net earnings of this railroad on its entire
system; the board thought the system was earning more money in
Nebraska than in the other states, and it asked for a return
showing net earnings in Nebraska; and while the returns showed
that the whole system over every mile had averaged over $4,000 net
earnings, in Nebraska averaged $5,500 per mile net. That is a
great earning power. You capitalize this and you have at least
$90,000 per mile on an average in this state.
Now, then, we have applied the three tests that
the law authorizes, and this road, worth by the physical property
test $20,000; by stock and bond test about $92,0000, and the net
earning test something less than that, and you have an average
valuation of beyond $65,000 per mile, $10,000 per mile more than
it is assessed. Do you wonder the courts sustained that
assessment? When you come to the final assessment of railroad
property in Nebraska, as in every other state, you have got to
depend upon the integrity of our state assessors in fixing the
property and its valuation, because it is their judgement that
does the business. The law is here, and it is their judgment that
must do the rest.
There are two ways to beat a law. First, never
to pass it. That is one way. Second after you have passed it, put
some one in office who will not enforce it. That is the second
way. I don't care what kind of law you put on the statute books,
unless you will put an assessor there who will carry it out, you
will never get an equitable assessment. My friends, I have talked
longer than I expected. I thank you. [Applause.]
|
181 |
BY E. L. LOMAX.
A description of the growth and progress of
Nebraska, without mention of the Union Pacific, would be like the
play of Hamlet without the Prince of Denmark. The construction of
the road, its rise and triumphs, are a part of the history of the
state, and the prosperity of the road has increased the
advancement and wealth of Nebraska which has accompanied, it.
The Union Pacific was the, first road to enter
Nebraska. In 1863 the work was begun and forty miles of road were
completed by 1865. Within five more years, 705 miles of road were
constructed and operated in the state, and this increase continued
until now, in 1902, there are over fourteen thousand miles of rail
and water lines directly controlled by the Union Pacific R. R. A
reference to this is necessary to show what part the road has
taken in enabling the commonwealth to double and quadruple, as it
has done. The mileage of the Nebraska division of the Union
Pacific is as follows:
Eastern District - Council Bluffs to Grand |
|
Island and spars |
159.95 |
Middle District - Grand Island to North Platte |
137.23 |
Western District - North Platte to Cheyenne |
225.41 |
Total |
522.59 |
|
|
Beatrice Branch - Valley to Beatrice |
96.72 |
Stromsburg Branch - Valparaiso to Stromsburg |
53.30 |
Norfolk Branch - Columbus to Norfolk |
50.37 |
Albion Branch - Oconee to Albion |
34.54 |
Cedar Rapids Branch - Genoa to Cedar Rapids |
30.55 |
Ord Branch - Grand Island to Ord |
60.77 |
Scotia Spur - Scotia Junction to Scotia |
1.37 |
182 |
|
Loup City Branch - St. Paul to Loup City. |
39.40 |
Pleasanton Branch - Boelus to Pleasanton. |
22.06 |
Kearney Branch - Kearney to Callaway |
65.79 |
Sioux City Branch - Sioux City to Norfolk. |
74.94 |
Total Nebraska Division |
1,052.40 |
Throughout the state there is already one
mile of railroad to every fourteen square miles.
Vast regions of fertile country have thus been
opened up to settlers, and great areas of land brought by rail
into contact with metropolitan centers. Prosperous cities have
sprung up in every section traversed by this line.
The state in thirty-nine years has grown from
122,000 to 1,068,901 inhabitants, with a proportionate increase in
material and other property. Take the following as an example of
the surprising growth of Nebraska:
The population in 1855 was |
4,494 |
The population in 1860 was |
28,841 |
The population in 1875 was |
247,280 |
The population in 1880 was |
452,402 |
The population in 1885 was |
740,645 |
The population in 1890 was |
1,056,793 |
The population in 1900 was |
1,068,901 |
In 1860 there was 1 person to 3 square miles. |
|
In 1880 there were 6 persons to 3 square miles. |
|
In 1900 there were 13 persons to 3 square miles. |
The assessed valuation of the State is over
$170,000,000; there were 120,000 farms under cultivation.
It has now nearly 5,600 miles of railways, which
is greater than those of Siberia and Japan combined. It is first
in intelligence of its citizenship; second in health; third in
corn growing and sugar beets; fourth in oats; fifth in wheat; and
sixth in hay.
Its cattle products in 1900 were 2,206,792;
sheep 322,057; hogs about 1,500,000.
In 1900 its smelting work products were
$28,000,000; beet sugar, $520,301.
|
183 |
The estimated value of South Omaha
products alone in 1901 is $14,000,000 greater than that of the
whole state in 1890. Its true wealth is estimated in 1900 at
$1,282,246,800, as against $385,000,000 in 1880, an increase of
233 per cent.
Its surplus products in 1900 are valued at
$225,555,160.89.
The beginning of all this, the phenomenal
growth, dates from the commencement of the Union Pacific R. R.
In a brief outline of this character it would be
impossible as well as unnecessary to describe the early history of
this great railroad. It is now a part of the history of the United
States, and everybody knows something of it, but in order to
appreciate what the Union Pacific has done, it is well to remember
that the expanse of territory now called Nebraska was in what our
forefathers called "The Great American Desert," which spread its
arid, lifeless mantle of land over thousands of square miles of
the. great western basin of the Mississippi. In latitude north and
south, and in longitude east and west, the awful barrenness
extended without limit. Civilization had hardly approached it on
any side. The idea of ever crossing this expanse was regarded as
well-nigh impossible. In the midst of this seeming hopeless
sterility, Nebraska has sprung up - a state of magnificent extent,
seventy-seven thousand square miles, or 49,000,000 acres in
area!
It could be spread over all New England, and yet
have 11,000 square miles to spare.
In this stupendous transformation, the Union
Pacific has been a mighty factor. Let me cite merely a few of the
things this great railroad has done for Nebraska. Take, for
instance, the economic importance of irrigation. The distribution
of water by artificial methods, better known as irrigation, has
received such an impetus during the past few years that it has at
last resolved itself into a national proposition. All western and
some of the southern States have established state departments of
irrigation, Nebraska along with the others. Not that this state
could not produce crops without resorting to artificial methods,
for the volume of rainfall has increased and continues to increase
of late years, but the soil
174 |
|
of Nebraska is suitable for irrigation, and farmers have
found that it has multiplied the productive capacity of soils.
The Mormons seem to have started irrigation in
the West when they conveyed the waters from the mountain streams
of Utah and distributed them over the valleys and tablelands.
For years after this there was no progress made
in the matter of irrigation. In fact, the matter was hardly
thought of by residents east of the Rocky Mountains until a few
years ago, when the Union Pacific look the matter up and urged it
upon the settlers of the western portion of the state. For a time
it was slow work, but by being persistent and advocating it in the
press and in pamphlets, it soon took root, and as a result today
more than 1,500,000 acres of land lying along "the Overland
Route," beyond Columbus can be flooded by the waters of the Platte
that are tributary.
The first place where irrigation was tried in
Nebraska was along the valley of the Platte. The water was
diverted from the natural channel and conducted over the fields.
The result was marvelous. That year, while, generally speaking
there was an average supply of moisture - as much as in many of
the other western states- - the crop yield on the irrigated land
was nearly two-fold of that upon land where nature only supplied
the moisture. The result of this experiment induced the passenger
department of the Union Pacific to urge upon farmers the necessity
of constructing irrigation ditches. Not only did the Union Pacific
urge this. It assisted in bringing settlers at reduced rates and
in many other ways. At this time about fifty irrigation companies
are operating in Nebraska near the main line of the Union
Pacific.
Taking Dawson county is example, it will be
found one of the most prosperous counties in the state. The main
line of the Union Pacific traverses this county.
The following figures show what Dawson county
has done in the way of irrigation:
|
185 |
LENGTH, |
CAPACITY, |
|
MILES. |
ACRES. |
|
Farmers & Merchants Irrigation Co |
83 |
80,000 |
Cozad Irrigation Co |
40 |
46,000 |
Gothenburg Water Power and Irrigation Co. |
29 |
25,000 |
Orchard & Alfalfa Irrigation Co |
20 |
15,000 |
Gothenburg South Side Irrigation Co |
30 |
15,000 |
Farmers Irrigation Co |
10 |
5,000 |
Platte River Irrigation Co |
18 |
8,000 |
Elm Creek Irrigation Co |
10 |
8,000 |
Bird & Newman Irrigation Co |
8 |
1,200 |
Booker & Ralston Irrigation Co |
6 |
1,500 |
Edmisten Irrigation Co |
5 |
3,000 |
259 |
207,700 |
In assisting the irrigation movement, in
reclaiming arid wastes and making the soil productive despite
parching winds, the Union Pacific has helped to make a more
prosperous community by laying a sure foundation for the creation
of revenue, and the development of the state by inducing the
influx of immigration and wealth within its confines.
It is well known that the Union Pacific R. R. is
equipped with heavy eighty-pound steel rails, that its main line
is nearly all ballasted with the famous "Sherman gravel" hauled at
great expense out to points on the line. During the past two or
three years millions have been spent for labor and improving the
physical condition of the system. While not all these vast items
have been expended in Nebraska, much of it has gone to enrich the
residents of the State.
Since the construction of the road, the Union
Pacific has maintained large shops at Omaha and smaller ones at
Fremont, Grand Island, and North Platte. For over a quarter of a
century this road has carried thousands of these shop men on its
payrolls, annually exchanging hundreds of thousands of dollars
with them, the company giving them its money and they giving the
company their labors in return. In the headquarters at Omaha, the
Union Pacific maintains an army of officers and employees who are
paid good salaries
186 |
|
regularly. This money has amounted to millions of dollars
during the past thirty years, and has been spent chiefly in
Nebraska, it large portion of it going to the merchants and the
tradesmen and others along its line. When you consider that the
Union Pacific has been doing business since 1865, that the vast
sums of money referred to have been paid out year after year, you
may then get some idea of what it has done and is doing toward the
support of the people of Nebraska.
It is not too much to state that for more than
thirty years the Union Pacific expenditure in Nebraska has been
far greater than any other corporation doing business in the
state.
Let me answer the question, "What has the Union
Pacific done for Nebraska?" by pointing to some of the coming
cities of the commonwealth, Fremont with a population of 8,000;
Lincoln, 40,000; Columbus, 3,600; Grand Island, 7,500; Norfolk,
4,000; Kearney, 6,000; North Platte, 4,000; not omitting South
Omaha with a population of 26,000, the third largest packing
center in the United States, and hundreds of other thriving
cities, towns, villages, and hamlets, which, by the magic hand of
the Union Pacific alone, sprang into existence. But for the Union
Pacific, the pioneer railroad company, these towns would not
exist. But for the Union Pacific, we might be crossing the plains
and climbing the mountains to the Pacific Coast in covered wagons
or slow trains of less ambitious roads, instead of in the palatial
cars of "The Overland Route."
The Union Pacific has spent thousands upon
thousands of dollars in advertising the state of Nebraska, not
only in the United States, but all over the world. Not only in our
new possessions but in the cities, towns, and villages of Europe
has the Union Pacific placed Nebraska before the emigrant or
traveler, as a desirable spot, by maps and pamphlets, by
magazines, newspapers, and sundry other ways.
The following extract from a report of the
Senate committee on Pacific Railroads, dated February 19, 1869,
shows that the
|
187 |
Union Pacific has been instrumental in building up the
state of Nebraska since its earliest days.
"It can be shown by official records," says the
report before mentioned, "that the Kansas Pacific, the Union
Pacific, and the Central Pacific have been instrumental in adding
hundreds of thousands to the population of the states of Kansas,
Colorado, Iowa, Nebraska, California, and Nevada. Minnesota owes
to the rapidity and cheapness of transportation by rail her best
immigrants - over 100,000 Germans, Norwegians, and Swedes. Every
foreign laborer landing on our shores is economically valued at
$1,500. He rarely comes empty-handed. The superintendent of the
Castle Garden (New York) Immigration Depot has stated that careful
inquiry gave an average of $100, almost entirely in coin, as the
money property of each man, woman, and child, landed in New York.
From 1830, the commencement of our railway building, to 1860 the
number of foreign emigrants was 4,787,924. At that ratio of coin
wealth possessed by each, the total addition to the stock of money
in the United States made by the increase to population was
$478,792,400. Well might Dr. Engel, the Prussian statistician,
say: Estimated in money, the Prussian state lost during the
sixteen years by emigrants a sum of more than 180,000,000 thalers.
It must be added that those who are resolved to try their strength
abroad are by no means our weakest elements; their continuous
stream may he compared to a well-equipped army, which, leaving the
country annually, is lost to it forever. A ship loaded with
emigrants is often looked upon as an object of compassion; it is
nevertheless in a political-economical point of view generally
more valuable than the richest cargo of gold dust.
The words of Sidney Dillon uttered many years
ago are not inappropriate now. He said: "The growth of the United
States west of the Alleghenies during the past fifty years is due
not so much to free institutions or climate or the fertility of
the soil as to railways. If the institutions and climate and soil
had not been favorable to the development of commonwealths
railways would not have been constructed, but if rail
188 |
|
ways had not been invented the freedom and natural
advantages of our western states would have beckoned to human
immigration and industry in vain. But increased facilities for
travel are among the smaller benefits conferred by the railways.
The most beneficent function of the railway is that of a carrier
of freight. What would it cost for a man to carry a ton of wheat
one mile? What would it cost for a horse to do the same? The
railway does it at a cost of less than a cent. This brings
Nebraska Colorado, Dakota, and Minnesota into direct relation with
hungry and opulent Liverpool, and makes subsistence easier and
cheaper throughout the civilized world. The world should,
therefore, thank the railway for the opportunity to buy wheat, but
none the less should the West thank the railway for the
opportunity to sell wheat.
No fact among all the great politico-economical
facts that have illustrated the world's history since history
began to be written is so full of human interest or deals with
such masses of mankind since the railway opened to the seaboard
these immense solitudes.
Within fifty years over 30,000,000 people have
been transplanted to or produced upon vast regions of hitherto
uninhabited and comparatively unknown territory, where they are
now living in comfort and affluence and enjoying a degree of
civilization second to none in the world, and greatly superior to
any that is known in Europe outside of the capitals. This could
not have happened had it not been for the railways, and is a
helper in developing this great area the Union Pacific has been a
very potent factor.
|
189 |
BY GEORGE L. MILLER.
When the vanguard of the whole occupation are
the pioneers first planted foot in Nebraska, a majority of them
had come from the timber lands of their ancestral states. When
they looked out upon vast oceans of treeless prairie lands, it was
hard for them to understand how it was possible for them to be
permanently occupied and subdued to the home-making uses of
agriculture. They never thought of planting trees except for
ornament and shade, where they might grow by proper nursing for
their rude little huts. How could trees grow on a "desert"? How
could people wait for trees to be planted and grown, even if they
could be made to grow at all?
As was quite natural, they were moved by
instinct to dream and dig, for coal. Holes in the hills on the
Nebraska side of the Missouri river were bored in plenty from
north to south, within the state boundaries, and there were more
coal discoveries in those early days of blind hopes and doubting
expectation than could be easily counted for numbers. Nor have we
done making these coal discoveries yet. Large sums of money have
been sunk in these vain quests for coal deposits of sufficient
depth of vein and quantity to be made available for use. Veins of
coal would, it is true, be frequently found, which would give good
ground for confidence that they would supply enough of the black
diamonds, for commercial use. But they were only surface veins,
and not the real coal measures. These surface veins would be 2 1/2
to 3 feet in thickness, counting the shale, and would yield fine
coal, rich in carbon and heating power. These coal discoveries
have only led to a large harvest of disappointed hopes and a large
loss of money. The late J. Sterling Morton was an early and
conspicuous victim of these illusive coal discoveries in the
territorial period, one of which was made on the Nebraska City
farm. Dr. F. V. Hayden, the famous geologist who made the U. S.
survey of the territory, was called in to examine the coal mine.
Anxious
190 |
|
as he was on all accounts to make a favorable report, and
especially on Mr. Morton's account, he told Mr. Morton the sad
scientific truth about it, which more than forty years of time
have confirmed. I doubt whether Mr. Morton lived quite long enough
to forgive Hayden for telling him the truth. Professor Hayden
always held, with Meek, that the coal beds which appear in Iowa
dip down very deep in Nebraska, perhaps 3,000 feet. The nearest we
ever came to getting a real substantial bed of coal was when Mr.
P. E. Iler put down a boring for anything that might be found,
oil, gas, coal, or what not, at his old distillery in Omaha. A
vein of coal was struck at a depth of several hundred feet which
was, in fact, highly promising. Pennsylvania experts were brought
out who said so. I was interested in a small way, but I did not
forget the warning of Hayden. There were high hopes and much
excitement. All Mr. Iler got was a supply of artesian water, which
was very valuable to the distillery of which he was then the
owner. But Peter's coal mine, like all the rest of them, "petered
out."
When, in 1855, 1 went with the army to Ft.
Pierre, dreams of coal and of cedar and pine timber were excited
by vague reports of these products on the upper Missouri, and I
was asked to look out for them. My point of observation from the
decks of a steamboat did not enable me to see anything but the
color of coal, where slate and shale had been exposed by the wash
of the river. We had heard of islands rich with cedar. I did not
see them. As to pine timber, ditto. Reports were circulated of
vast deposits of coal through Indians and traders, although I saw
none or it. These reports were founded on fact, and if is there in
unlimited quantity, to the great advantage of South Dakota. It is
the lignite formation. A proposition was made a few years ago to
some Omaha capitalists to bring this coal to the Nebraska markets
by barging it down the river, but it was ascertained that the coal
deteriorated by exposure. It is said to contain more carbon than
the Wyoming product which Hayden discovered during the Union
Pacific construction. It was in 1867, 1 think,
|
191 |
Hayden brought down the first specimens of Wyoming coal
to Omaha, in a gunny sack, and dumped them on the floor of the
editorial apartment of the Omaha Daily Herald, which then
called itself "a strictly religious journal, price $10 a year,
invariably in advance."
This, in brief, is a mere outline of the brave
efforts and uniform failures that were made in the past, and which
still continue at longer or shorter intervals, to uncover coal
measures on Nebraska soil. Behind these efforts and giving them
energy have been the strong motives of individual gain, alluring
visions of sudden and large wealth, and also, be it said, a
higher, if not a more effective force of public spirit, striving
for the advancement of the general welfare of the "young
commonwealth." Nothing could be more commendable in motive on the
part of ambitious citizens, however misdirected may have been
their labors and sacrifices. As the editor of the Omaha Daily
Herald, in the cream of my manhood life for many years, I used
to share with others a keen regret that Nebraska could not boast
the advantage of mineral wealth in any form to reinforce its
prodigious capacity for agriculture. It was I who first said in
the columns of that somewhat busy little newspaper, "Nebraska's an
agricultural state, or it is nothing.", Time and events have
confirmed that judgment, and its implied forecast of its sole
dependence for development, population, and power, and I may now
repeat the retrain with variations, so to say, that enable me to
declare that Nebraska's an agricultural state, and wouldn't be a
mineral state if it could, even if coal measures were within 500
feet of the surface soil in a general distribution over the state.
In other words, when all of our people were deploring the want of
coal, they did not appreciate then, and may not now, that it would
be a losing trade to swap our fertile and inexhaustible corn,
winter wheat, and other cereal-producing lands, for coal lands, or
any other mineral lands. Corn beats coal. Coal can be had for the
asking from contiguous states by payment of prices for it that are
little more than they would be if the state abounded in coal. But
what more?
192 |
|
I am writing this paper at a time when
a mighty movement for the improvement of our great rivers, the
Missouri, greatest of all, by federal appropriations which will
make our great Nebraska boundary line on the east as freely and
safely navigable by boat and barge of great capacity as the lower
Mississippi, to whose broad waters it is the most generous
contributor. Then will come the day and hour when the lignite of
the Dakotas will be safely housed and swiftly brought to out,
eager wharves at slight cost over mining, in endless supply for
all uses, in easy competition with Wyoming, Kansas, Missouri, and
other coals.
I have another vision imparting more than
shadowy forms to dreams of the future greatness of the Missouri
valley, the Nile of the United States, and two times as rich as
the historic river of Egypt, which are not all dreams. Major
Chittenden of the U. S. A. says that this Missouri river kingdom
of ours is capable of supporting a population of 25,000,000
people. Not pretending to know the half that this accomplished
officer does of the great valley, I am bound to agree with him.
But to ever realize such results, or any great results from dense
populations in this valley, one condition precedent must be deemed
vital, namely, the broad acres of this vast natural garden of
agricultural wealth must be defended and protected from
destructive invasions and overflow from the mad waters of the
river. Its improvement for navigation means the certainty of this
protection as an almost necessary incident of the work of
deepening and widening the channel for boats and barges; at any
rate, the people of the West, whose geographical heart Nebraska
is, will not fail to redeem and secure, at the hands of the
nation, that which is most certain to increase its population,
wealth, and power beyond the wildest dreams of men.
© 2000, 2001 Pam Rietsch, T&C Miller