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Railroads (part 4)
Chicago, St. Paul, Minneapolis & Omaha Railway Co.

   This road, (the big four), which connects Omaha with the vast lumber region of Wisconsin and the great milling interests of Minnesota, is one of the leading lines running into Omaha and is the popular route to the principal points of the great Northwest. The general offices, located at St. Paul, Minn., occupy one of the handsomest brick buildings there.

   Officers of the company: H. H. Porter, President, Chicago, Ill.; E. W. Winter, Assistant President, St. Paul, Minn.; R. P. Flower, Second Vice President and Treasurer, Oshkosh, Wis.; C. F. Hatch, General Superintendent, St. Paul, Minn.; T. B. Clark, General Traffic Manager, St. Paul. Minn.; J. H. Hiland, Assistant Traffic Manager, St. Paul, Minn.; W. H. Truesdale, Assistant Traffic Manager, St. Paul, Minn.; C. D. W. Young, Auditor, St. Paul, Minn.; H. H. Atray, Assistant Auditor, St. Paul, Minn.; G. A. Hamilton, Local Treasurer, St. Paul, Minn.; T. W. Teasdale, General Passenger Agent, St. Paul, Minn.; W. H. S. Wright, Purchasing Agent, St. Paul, Minn.; C. W. Porter and W. H. Phipp, Land Commissioners, Hudson, Wis.; J. H. Drake, Land Commissioner, St. Paul; F. M. Luce, Car Accountant, Chicago, Ill.

   The Nebraska Division, Sioux City to Omaha, including its branches, under the able management of its present officers, is doing a very large passenger and freight business.

   The construction of the Norfolk Branch, which leaves the main line at Emerson, running west forty-nine miles, and will terminate at Norfolk, is being pushed forward as rapidly as possible; also work on Florence Cut-off is rapidly approaching completion. Florence Cut-off is about six miles north of Omaha and will save a heavy grade.

   The stations opened during the year 1881 are Wakefield, Wayne, Flournoy, Craig and Hiland. A beautiful passenger depot has been built by the C., St. P., M. & O. and S. C. & P. R. R., at Blair.

   General offices of Nebraska Division are located at Omaha, in Creighton Block.

   Officers for the division: George V. Morford, Superintendent, Omaha; J. A. Munroe, General Agent, Omaha.

   Omaha & Northwestern Railway.--On the 15th of February, 1869, the Legislature of Nebraska appropriated 2,000 acres per mile to any railroad which should complete ten miles of its route within one year, the grant in no case to exceed 100,000 acres. The members of the Legislature, appreciating the importance of prompt action and realizing that railroads alone could effect the desired end, wisely concluded upon the action, appropriating altogether 500,000 acres of land for the purpose of internal improvements. Movements to take advantage of this act were inaugurated during the summer of 1869 in various portions of the State, while Omaha remained quiescent, so to speak Finally, at what might be called the eleventh hour, her citizens awoke, and, with that energy and enterprise which are the characteristics of Western men, succeeded in completing twenty miles of road leading to the southwest and northwest, which have become two of the most important lines in the Western country.

   Early in October, 1869, James E. Boyd, one of the directors of the Central National Bank, made, through the public press, a proposition, the substance of which was that he would be one of twenty men to advance $10,000 for the purpose of constructing the Omaha & Northwestern road. A route was projected from Omaha to the Niobrara River, which forms the northern boundary of the State; the route was designed to be up the Missouri Valley some twenty-five miles, and, crossing the divide, descend into the beautiful and fertile valley of the Elkhorn River, which it would follow to a point some twenty miles distant from its terminus, thence cross the divide between the waters of the Elkhorn and Niobrara to the mouth of the latter. This point is 250 miles by river above Sioux City, and must open to Omaha the entire trade of the Upper Missouri country to Fort Benton and is in direct communication with the various Indian reservations and military posts of Northern Nebraska and Dakota Territory.

   The proposition of Mr. Boyd met with favorable responses from C. H. Downs, George M. Mills, William F. Sweesy and Jonas Gise, but, as this included but one-fourth of the required number, the project was abandoned, and, for a time, nothing mere was done.

   Some time after, the public became aware of the true condition of the railroad question, when meetings were held and largely attended, and at last the ball was put in motion, which resulted in the building of the Northwestern and Southwestern roads. The first meetings were called in the interest of the latter; but a short time subsequent, at a private meeting of wealthy and influential citizens, including the five gentlemen above mentioned, it was determined that if any road was built, the Northwestern should be included. After this meeting, the matter was thoroughly canvassed and agitated, and the general feeling obtained that one was equally as important to Omaha as the other. When the question of voting county bonds was brought up, the Northwestern took precedence and was voted one-half more important than the other.

   On the 19th of November, 1869, the articles of incorporation were drawn up, and, on the 27th of the same month, they were signed before L. L. Maguire, notary public, by the following gentlemen, who were the corporators: J. A. Horbach, Ezra Millard, J. E. Boyd, J. S. McCormick. H. Kountze. C. H. Downs, J. H. Millard, J. A. Morrow, W. A. Paxton, Jonas Gise, E. Creighton and A. Kountze. The first meeting of the incorporators and stockholders followed, at which it was decided to commence building the road at once on the most practicable route. At the same meeting, James E. Boyd, Ezra Millard, J. A. Horbach, John A. Morrow, Jonas Gise, John I. Redick, A. Kountze and J. S. McCormick were elected directors. To conform to the requirements of the charter, $100,000 of the capital stock of $1,000,000 had been previously subscribed and 10 per cent of that amount paid in. At the same meeting, the Board of Directors elected James E. Boyd, President; J. A. Horbach. Vice President; J. H. Millard, Treasurer, and A. M. Motherhead, Secretary. Notices asking for proposals for grading the road were ordered to be published in the daily papers, same to be opened in December.

   On the 29th of November, a meeting was held at which the "Mill Creek" route was adopted; 10 per cent of the amount subscribed in addition to that already paid was called for, and it was further agreed that the balance should be called in by instalments of 10 per cent as fast as the necessities of the road required. Subsequently, J. E. House was appointed Chief Engineer of the company, and, on December 1, bids for grading were opened and the contract let to William A. Paxton, at 45 cents per cubic yard.

   The work progressed with wonderful rapidity, and, on February 3, 1870, the road was completed ten miles on its route and in running order, at a cost for materials of $198,000.

   During 1870, twenty-six and one-half miles of road were completed to De Soto and a lease entered into with John I. Blair of a branch of the Missouri & Pacific road, known as the "De Soto Plug," by which communication between Omaha and Blair became direct and regular. Business grew in proportions, the country contiguous to the line contained a population of 40,000, and was being rapidly settled by an energetic, industrious class of farmers and business men. The road received $200,000 in 10 per cent twenty-year bonds from Douglas County; $150,000 in 8 per cent twenty-year bonds from Washington County for the building of the road from the south to the north line of the latter county; in addition, 2,000 acres per mile from the State and liberal donations from other northern counties. It was proving a valuable auxiliary to Omaha and rapidly bringing Northern Nebraska into full communion with the East. The financial condition of affairs was at this time most satisfactory. The cost of the road had been thus far $450,000, for which cash was paid and no mortgage bonds issued. October 7, 1871, the road was completed to Herman, on the line of Washington and Burt Counties, and located seven miles north to Tekama, with the prospect of extending a branch by way of Logan Creek and Elkhorn Valley to the mouth of the Niobrara.

   During 1872, the road-bed to Tekama was graded, but the high price of iron and equipments precluded the furnishing and operation of this extension. On January 1, 1873, the liabilities of the corporation included $470,000 worth of bonds, $320,000 of which were held by seven of the original incorporators as security for funds advanced on former construction account, and $150,000 were owned abroad. The assets consisted of the road-bed, equipments, etc., and the remainder of unsold lands donated by the State, aggregating altogether about $600,000. This year occurred the memorable financial panic, resulting, in a large measure, from the withdrawal of the active wealth of the country from immediate circulation. These, with other causes, which precipitated, in a greater or less degree, the catastrophe of 1857, brought about the crisis of 1873. Work was suspended and so continued through 1874, when the dire effects of the monetary stringency suggested were supplemented by those incident to and growing out of the grasshopper plague. On July 1 of this year, payment of interest on the first mortgage bonds of $470,000 was not made, and trouble commenced. The completion of the road to Tekama was again delayed and not consummated until August 26, 1876, at which time the company received $45,000 in bonds from Burt County. The following year, the Union Trust Company, as Trustees for certain of the bondholders, filed a bill in chancery praying for a decree of foreclosure and sale of the road to satisfy their claims. The decree was entered May 10, 1878, and, on October 5 of the same year, the Northern Nebraska Railway Company was incorporated by John A. Creighton, John A. Horbach, H. W. Yates, Frank Murphy and Herman Kountze, stockholders in the Omaha & Northwestern road, in anticipation of the sale of the latter road, as provided for in the decree. The latter took place on the 24th of October following, when it was purchased by the Union Trust Company for $105,000, and taken and operated by the new corporation, which, in May, 1879, put the line from Tekama to Oakland, in Logan Creek Valley, sixty-four miles from Omaha, under construction, and completed and placed the same in operation during the ensuing December.

   In the previous October, negotiations were commenced between the Northern Nebraska Railway and the St. Paul & Sioux City Railway Companies for a consolidation of their several interests, resulting in a contract therefor, dated November 29, 1879, under which the sale of the Nebraska Railway franchises to the St. Paul Railroad Company was perfected and concluded in March, l880. During that year, the Chicago, St. Paul, Minneapolis & Omaha Railroad Company was organized in Wisconsin and purchase made thereby of the Chicago, St. Paul & Minneapolis, the West Wisconsin, North Wisconsin and St. Paul & Sioux City roads. Since that date, the Omaha Northwestern road has been owned and operated by the new corporation, which owns 180 miles of track, equipped with furniture, tackle and apparel in Nebraska, including the Norfolk Branch, a line of road from the main line at Emerson Junction to Norfolk, a distance of forty-seven miles, commenced in 1880 and finished in 1881.