Jackson County, Missouri - Chapter 15: The Progress of Three Years, 1881

Chapter 15: The Progress of Three Years

The Events of 1877 - The Alton Road - The Union Depot - The Test of Barges on the Missouri - The Great Railway Strike - Bank Suspensions - Railway Extensions Affecting Kansas City - The United States Court House and Post- Office, and United States Courts - Rapid Growth of the City.

It was mentioned at the close of the last chapter that Kansas City began to revive from the effects of the panic of 1873, about the middle of the year 1876, and that population began again to come in and fill up the vacant houses, and revive the general tone of business. This revival was not local only, but general, and the whole country shared in it. In the west, especially, there was marked improvement, and not Kansas City only, but the whole west, entered upon a new era of prosperity and development, which, happily, has not yet received any serious check.

One of the first institutions to take advantage of the revival of times, to advance its interests, was the Chicago & Alton Railroad Company, which, as previously noted, had extended its line to Mexico, Missouri, on the old Louisiana charter, and for some years had been making its connections to Kansas City from that place over the St. Louis, Kansas City & Northern. On the 27th of February, 1877, T. B. Blackstone, President, J. J. Mitchell, Vice-President, and J. D. McMullin, General Superintendent, of that road, came to Kansas City, to confer with the people here, relative to extending that road along the route originally proposed for the Louisiana road to Kansas City. After such conference, they returned by the way of Glasgow, accompanied from this city by General John W. Reid, who had always taken an active interest in this line of road. During the spring and summer the sense of the people along the route was taken at a series of public meetings, and in the fall a new company was organized, called the Chicago, St. Louis & Kansas City Railroad Company, for the purpose of building the road. Mr. Mitchell was president of this company, and most of its members and stockholders were Chicago & Alton men. In October Mr. Mitchell submitted to Jackson county and other counties along the line, propositions for aid to the road. Of Jackson county, he required fifty thousand dollars in subscriptions to the stock of the company, and procurement of the right of way through the county. This was submitted to a meeting of the. people, and referred to a committee, of which General Reid was a leading member, to raise the subscriptions, and it was soon accomplished. A like result having attended the effort in other counties, the construction of the road was an assured fact before the close of the year.

The establishment of barge transportation on the Missouri River was again taken up, March 10th, at a meeting of grain merchants, and referred to a committee consisting of Messrs. M. Diveley, H. J. Latshaw, E. R. Threlkeld, T. J. Lynde, Major W. A. M. Vaughan, Colonel C. E. Kearney, and A. J. Gillespie. This meeting was brought about by some correspondence with the Great Central Dispatch Company, which proposed to put barges on the river. Nothing came of this proposition, however, and subsequently a committee was sent to St. Louis for the purpose of securing, if possible, some relaxation of the railroad pool rates from the Missouri Pacific and St. Louis, Kansas City & Northern Railroads. But this mission was unsuccessful, and on the return of the committee, an inef-

The Memphis Railroad project, in which Kansas City and Jackson county had been so largely and so unsuccessfully interested since 1870, re-appeared this year, and claimed a share of attention. On the 12th of April it was sold in bankruptcy, and was bought in by a company of Kansas City men for fifteen thousand and twenty-five dollars. Mr. J. D. Bancroft, formerly cashier of the First National Bank, and at this time a grain merchant, became manager for the purchasers, and made an effort to raise the money to build it, but without success ; and it slumbered in the hands of this company for several years without anything further being done to build it.

Other railroad enterprises, however, were more fortunate, and the Atchison, Topeka & Santa Fe Railroad began the construction of branches from Emporia south, since finished to Howard, Kansas, and from Florence to Eldorado, since finished through to a connection with the main line again at Ellinwood.

During the early part of the year there was considerable discussion of a proposition to put a dam across the Kaw River a few miles above the city for the purpose of creating a water power for manufacturing purposeb, and Mr. Pierson, engineer for the water company, made a favorable report concerning it, but nothing was ever done about it.

The long-continued effort to induce the railroads centering here to build an eligible Union Passenger Depot was this year successful. Early in the year a company was organized for that purpose, composed of the representatives of the different lines, and the work begun. On the loth of July the old wooden shed which had been used for that purpose was abandoned, and the point of interchange moved to the State Line Depot. Immediately afterward the old shed was taken down and the construction of the present elegant building begun. It was finished in January following and opened to the public with C. H. Dunham, Esq., as superintendent, A. W. Millspaugh, ticket agent, and John Hale, baggage master. Its cost was about two hundred and twenty-five thousand dollars.

One of the most exciting events since the close of the war occurred this year. It was the great railroad strike, which, beginning with the Baltimore & Ohio Railroad in July, swept over the country like a cyclone, causing much loss of property in Pittsburg and other cities, and denioralizing railway business seriously for some time. It reached Kansas City on the afternoon of the 23d of July, in . the refusal of freight-train men to work further without an advance of wages. That night meetings of the strikers were held, and the next day a mob of lawless individuals, made up chiefly of idlers, paraded the streets and forbade working men generally to proceed with their work. This looked ominous, and aroused the people. Meetings were quietly held that night and measures taken to protect property. Capt. H. H. Craig promptly raised a company of men and had them sworn in as special police, to protect the city. This prompt preparation for the mob crushed the lawless spirit of that class of idle adventurers, who were evidently seeking to take advantage of the railroad strike, create disorder and destruction, such as had prevailed in Pittsburg. The matter was thus confined to the railroad men and their employers, who succeeded in adjusting their difficulties so that freight business was resumed on the 30th of July. The passenger trains were not stopped at any time, as they carried the mails, and the strikers did not apparendy seek a colHsion with the government authorities by stopping the mails. From this affair arose the Craig Rifles, which have since been quite an interesting military and social organization.

The Board of Trade Building, which had been begun in the fall of 1876, was so far completed that the daily meeting of the Board was removed to it July 28th. On the 2nd day of August the office rooms in the building were let at public auction, only members of the Board engaged in grain, produce, provision or

Coaxes House, Kansas City, Mo

During the year 1877 there was considerable improvement in the city, relating more, however, to its general condition. The Board of Trade report for that year thus sums up some of its leading features :

" The population of Kansas City has been increasing rapidly for the past year and a half. The last estimate of population published in oar city directory was in 1873, when it appeared that the population was 40,740. I am informed by Mr. J. H. Ballenger, who compiles our directory, that the population in June of the year under review, was 41,786, showing an increase since 1873 of 1,046. Mr. Ballenger also informs me that immediately succeeding the panic of 1873, the population fell off considerably - a fact attributable to the depression of industrial interests and the cessation of public improvement. About July, 1876, this lost population began to come back to us, and by the beginning of 1877 the tenement houses of Kansas City were again full. Since that time, several hundred additional houses have been built and filled, and all vacant rooms over business houses have been occupied also : so that it is estimated that the new population coming within the past year and a half does not fall materialy short of eight thousand people.

" The movement of real estate likewise shows an improvement. There has not been so much improvement in the number of transfers, as in the better tone of the market, the higher valuation at which it is held, and the advance of rentals, which latter will average not less than fifty per cent.

" There has been no great enlargement of the industrial interest of the city, but estalishments previously existing are doing much more business and employing a larger number of operatives, and are generally much more prosperous.

"The markets of Kansas City have experienced marked improvement during the year. The amount of property coming into them for sale has much increased, and, in many respects, was of improved quality. There has been an increase of merchants engaged in purchasing and forwarding the produce offered, and with the increase of men there was also an increase of money. The markets have been active during the year, and have sustained their former high valuations as compared with other markets."

The extension of transportation facilities, other than those mentioned already in this chapter, consisted of the extension of the Clay Center Branch of the Kansas Pacific Railroad to Clifton, and the extension of the Central Branch Union Pacific to Concordia. This latter road made its eastern terminus at Atchison, Kansas, but met with such competition in the Republican Valley, from the Clay Center Branch of the Kansas Pacific, that it was compelled to make rates to Kansas City, by the way of the Missouri Pacific from Atchison, and thus became virtually a Kansas City road. The Joplin Railroad was also built this year from Girard, on the Fort Scott and Gulf, and at the end of the year it was proposed to extend it to the line of the Fort Smith & Little Rock Railroad, in Arkansas, thus securing a through line to the Mississippi River at Chicot, by the latter road and the Little Rock, Mississippi River & Texas, which was then about to be completed between Little Rock and Pine Bluff.

The year 1878 began under very favorable auspices, and great activity and improvements were promised. These promises, however, were not fully realized, yet the year was an eventful one.

In January all the arrangements for the building of the extension of the Chicago & Alton Railroad were completed, except the procurement of the rightof-way through the city. An effort was made early in the year to find a route and procure right-of-way into the southeastern part of the city by the valley of

O. K. Creek, but it was found that the right-of-way was so expensive, and the grades so high, that it was abandoned, and about the ist of July the company decided to adopt the route on which the road was subsequently built. Much difficulty was experienced in obtaining this right-of-way from the city, owing to the opposition of a few members of the city council. It was formally refused by a vote of that body July 17th, which led to a spirited public meeting at the Board of Trade hall on the evening of the i8th, at which the action of the council was severely commented upon by leading business men. The matter was brought up in the council again on the 8th of August and the right-of-way granted. The construction of the road meantime was progressing rapidly below, and on the 4th of December work was begun in the city' limits by the contractor, Peter Soden.

Bank Changes And Suspensions

About the beginning of the year 1878 was a time of great strain upon the banking houses of Kansas City, owing to the fact that the winter was very mild and very wet, which retarded the movement of the grain crops, depressed hog packing, and hence the live stock market, and materially depressed all kinds of trade. Merchants and others who were customers of the banks could not, therefore, meet their paper promptly, and, in addition to having to ask for extension, had also to seek further accommodation.

The Watkins Bank was consolidated with the Bank of Kansas City on the 8th of December, 1877, and from subseqiient developments was not in a very strong position when it did so. This bank was originally established by H. M. Northrup & Co. in 1857, and was the first regular banking institution in Kansas City. It was conducted by Messrs. Northrup & Co. until 1864, when it was transferred by them to J. Q. Watkins & Co., and Messrs. Northrup & Chick went to New York, where they did a successful banking business until 1873, when they were so badly injured by the great panic of that year that they again came West. Mr. Chick became cashier of the Kansas City National Bank, which had been established in 1872. This bank was subsequently re-organized as a private bank, under the name of the Bank of Kansas City, with Mr. Chick as president. Thus the original bank, with the establishment of which he was connected in 1857, passed again into his hands, when the Watkins Bank was consolidated with the Bank of Kansas Ciiy in December 1877.

The event however that affected Kansas City most was the failure of the First National Bank, which occurred on the 29th of January, carrying down with it the Commercial National Bank, a fine little bank of one hundred thousand dollars capital. The history and character of the First National up to this time has already been given in these pages. It had come to be regarded as the great bank of Kansas City by all classes of people, and owing to its enterprising, liberal management there was not a Hne of trade, and scarcely a merchant or business man of any class, that was not indebted to it for favors. It had been its practice, since Mr. Howard M. Holden took the management of it, to foster all kinds of business. It had been a great promoter of the markets, and at this time was the leading source of accommodations for live stock and grain merchants and packers. Usually, in the latter part of the year it was liberal with these classes, and so enabled them to carry forward their busmess until they could begin to reahze in the winter. The bad weather of this winter prevented them from meeting their engagements with it and its suspension was unexpectedly announced on the morning of January 29th. The same day the Commercial National closed, being weakened by a similar state of affairs and overborne by the drain that usually results to ail Banks by the suspension of one so prominent as was the First National. This made a great sensation in Kansas City and the surrounding country, as the First National was the leading depository in Kan- sas City, for the. country banks, but the sentiment of the people contained nothing of blame for the officers of the Banks. On the contrary, they were the recipients of universal sympathy for their loss, while the people deeply deplored the loss to the city of so valuable an institution. The expression of this sentiment was so remarkable, and so different from that which ordinarily attends the failure of a bank that it merits a place in our history.

Kansas Stock Yards, January 30, 1878. "We, the undersigned Live-Stock Commission Merchants, of Kansas City, Mo., in view of the suspension 01 the First National Bank, of our city, as announced in the morning papers, take this method of expressing our unqualified faith in the statement of the Bank officers that every depositor will be paid in full, and in this connection we wish to record our unbounded confidence in H. M. Holden, President of said Bank, as a just and upright man, of unimpeachable integrity, and financial ability of the highest order, to which Kansas City and the country adjacent thereto as largely indebted for their rapid and solid growth.

"Whereas, Financial events in our city may lead to a feeling of uneasiness in business circles, and as this board has ample evidence as to the ultimate solvency of the First National Bank and the Commercial National Bank, therefore,

'^Resolved, That our confidence in the integrity of the management of these banks is unimpaired, and we believe fully the statement of their officers, that all depojitors and creditors will be paid to the utmost satisfaction of all demands, and we say this, that causeless panic and uneasiness may be prevented.

That such is our confidence in these institutions and their officers and stock-holders, that we hope for and desire an early resumption of business, and pledge ourselves to extend all the aid we can to that end - both to the management and to the public. "

At the annual election of the Board of Trade, about three weeks preceding these events, Mr. Holden had been unanimously elected president of that institution. Hence, from a sense of delicacy, he sent his resignation to the board, on the 30th, the day following the suspension of the bank. This document was laid before the board on the ist of February, when, on motion of E. R. TJirelkeld, the board voted unanimously for the appointment of a committee to wait upon Mr. Holden and request its withdrawal. That committee in the discharge of this duty presented Mr. Holden with the following note, which further exhibits the sentiment prevailing in the community at the time :

''Dear Sir: - At a meeting of the Board of Trade to-day, your resigna- ~ tion as president was tendered, and the undersigned were appointed a committee to return it to you with renewed assurances of our confidence and respect, and to inform you that it is the united wish of the membership that you reconsider your

A few days later, Feb. 4th, after people had taken time to reflect, the merchants and business men, who were not' connected actively with either the Hve stock or grain markets, called a public meeting at the Board of Trade Hall, to express themselves concerning the matter. This meeting was lairgely attended and adopted the following resolutions :

"Whereas, A combination of circumstances which no reasonable sagacity could forsee or skill prevent has compelled the First National Bank of Kansas City to suspend, and

"Whereas, The First National Bank has always stood ready to help the public and private enterprises of Kansas City and the adjacent country, and thereby has exerted a most potent influence in developing the business, commerce and resources of Kansas City and the country, therefore

That we, the merchants and business men of Kansas City, interested as patrons or depositors of the First National Bank, and in the interests and institutions effected by its suspension, have full and complete confidence in the officers of the bank, and in their assurances that all depositors and creditors will be paid in full

That we believe the suspension of said bank was the result of circumstances that could not have been prevented, and that the officers of said bank are not in any respect blamable therefore,

That the loss we apprehend from said suspension is that incident to the reduction of our banking facilities, should the suspension become permanent, and the withdrawal, from the banking business in Kansas City, of the peculiarly wise and liberal management which has heretofore directed the affairs of the First National Bank, and though it exercised such a beneficent policy in developing the trade and commerce of Kansas City and the resources of the country commercially tributary thereto,

That inasmuch as we have ever regarded the First National Bank as peculiarly the friend of Kansas City, and the strongest supporter and promoter of our trade, that we cannot contemplate its permanent suspension and withdrawal from business except with apprehension of results of the mok unfortunate character, and bordering upon pubUc calamity, therefore we wish here to express our earnest hope that it may speedily resume business, and in that event we stand ready to give it the utmost support in our power."

The suspension of these banks was a severe blow to Kansas City. Owing to the mildness and dampness of the weather, merchants had been unable to dispose of the stock provided for their winter trade, and the products of the country were still unmarketed. Hence, in addition to being deprived of the assistance that might otherwise have been reasonably expected from the banks, the people suddenly found themselves confronted with the necessity of repaying loans already secured, which caused no httle embarrassment, depressed the markets, cut short the

The Barge Lines

Among the enterprises thus stopped, and the most important of all, was barge navigation on the Missouri River. The grain business had now attained such proportions that the people felt that this facihty must be provided. To that end a meeting was held at the Coates House on the evening of January r7th, at which the matter was referred to a committee consisting of Messrs. H. J. Latshaw, C. H. Prescott, T. J. Lynde, R. W. Quade and F. J. Baird, for the purpose of maturing plans. Two days afterward, January 19th, another meeting was held at which this committee reported, recommending the organization of a Kansas City company with a capital of fifty thousand dollars, to own and operate the barges. The proposition was so favorably received that four thousand, five hundred dollars was subscribed at the meeting. Resolutions were adopted asking Congress for appropriations to remove snags and other obstructions from the channel ; and a committee of twenty was appointed to place the stock of the company. On the 20th this committee met at the Coates House and laid out their work, and on the 23d a large public meeting was held at the Board of Trade, which was addressed by Messrs. Col. Coates, H. M. Holden, Hon. Stephen A. Cobb, of Wyandotte, James M. Nave, H. J. Latshaw, Capt. A. J. Baker, T. K. Hanna, John Freeland and Capt. McClelland. The committee of twenty was making very satisfactory progress and had placed about twentv thou- ' sand dollars of the stock, and had promises for ten thousand more when the banks failed, after which it was found impossible to place more of it. However, it was believed that the balance could be procured during the spring, and on the i2th of February a meeting of thesubscribers decided to organize the company and appointed Messrs. Latshaw and Lynde to prepare the papers. The work of this committee was reported at a meeting held February 14th, at which the company elected as directors for the first year : Messrs. K. Coates, B. A. Sheidley, T. B. BuUene, T. J. Lynde, H. J. Latshaw, John Freeland, J. M. Nave, H. M. Holden, Thomas Corrigan, S. B. Armour, C. H. Prescott, D. B.- Powers and John J. Mastin. This company finding it impossible in the existing state of financial affairs to place the remainder of its stock, never filed its papers, but it partly accomplished its objects in another way. On the 20th of March, Messrs. Coates, Latshaw and Freeland went to St. Louis for the purpose of ascertaining if barges could be had. They did not succeed in finding barges that could be bought, but their mission brought them into communication with the Mississippi Valley Transportation company and with the Babbage Transportation company, and they both became so favorably impressed with the project that they sent fleets of barges to Kansas City that year. The first of these fleets to arrive at Kansas City was that of the Mississippi Valley Transportation company, and consisted of the steamer Grand Lake and three barges. It left Kansas City July 5th, taking out 83,540 bushels of corn. TKe barges connected with this fleet were very large for the river ; one of them left our wharf drawing six feet of water, yet there being a good stage of water at the time the fleet reached St. Louis in safety, and without material hindrance. The next fleet was the first of the Babbage company, and consisted of the steamer A. J. Baker and three barges. This fleet made three trips during the season. The first, July 27th, took out 62,038 bushels of corn, the second, August 12th, took out 50,938, and the third, August 31st, took out 44,198 bushels of wheat, and all were very successful. The cost of freight by these barges was, to the shipper, five and a half cents per hundred, including insurance, the railroad rate being about eight cents on corn and thirteen on wheat. It cost the barge companies about two and a half cents to carry the grain to St. Louis, and Capt. Lowery, of the Babbage company, estimated that grain could then be carried from Kansas City to New Orleans at a cost to the shippers of seven cents, and pay a reasonable profit to the carriers. These facts were regarded as a demonstration of the feasibility of barge navigation of the Missouri River.

The Failure Of The Mastin Bank

The city had fairly rallied from the effects of the failure of the First National and Commercial National Bank, when on the 3d of August the Mastin Bank failed. Prior to the suspension of the First National, that Bank and the Mastin were the two leading banks of the city, hence when the First National failed the Mastin took quite a leading position. Other banks, however, notably "the Kansas City, and the Kansas City Savings Association, were brought into much greater prominence by that event. With the failure of the Mastin Bank in August these two became the leading banks. For a time, however, there was considerable embarrassment in business circles, for the lack of currency. The statement of the Mastin Bank at the time of its failure showed a large advance of money to the Water company and considerable investments in mines, and it was probably the tying up of its resource in this way, more than anything else that led to its failure. The capital of the other two banks mentioned was enlarged soon after the failure of the Mastin, and the Armour Bros, immediately began arrangements to establish another bank. This bank was opened for business on the 15th of September, in the room previously occupied by the Mastin Bank, in the Board of Trade, with A. W. Armour, Esq., as President, and C. H. Prescott, for many years previous auditor of the Fort Scott road, as cashier. It at once took a prominent position.

Other Enterprises Of 1 87 8

On the 19th of January a number of leading citizens organized a Mining Stock Board for the purpose of locating here a market for Mining Stock. Col. C. E. Kearney was President, T. F. Oakes and H. M. Holden, Vice-Presidents, Col. John C. Moore, Secretary, and Mead Woodson, Treasurer. It tried to arrange for the opening of the Board May loth, but did not succeed, and before the close of the year passed into entire quiescence.

Blooded Stock Sales

On the 15 th of May there was opened here the first great sale of blooded cattle, the stock coming mainly from the blue grass regions of Kentucky. It was tried as a venture by parties' owning the stock, and was so successful that it has been since maintained as a semi-annual sale. At this first sale two hundred animals were sold at an aggregate price of twenty-four thousand dollars. This and subsequent sales have brought into the country adjacent to Kansas City large numbers of blooded animals, the effect of which in the improvement of cattle is already perceived.

The Court House And Post-Office

On the 8th of March, a bill authorizing the construction of a public building in Kansas City, for Post-Office and Custom House purposes passed Congress. It was introduced by Hon. B. J. Franklin, of this city, who at that time represented this district in Congress, and provided for a building to cost two hundred thousand dollars, one hundred of which was appropriated at that session. Besides this bill for the benefit of Kansas City, Mr. Franklin secured the passage of a bill authorizing the holding of United States Courts in this city, and introduced a bill providing for the organization of the Indian Territory and its opening to settlement, for the passage of which he made great, but, unfortunately, unsuccessful efforts. In this latter he received the support of the people in unanimous resolutions adopted at public meetings and forwarded to him.

Railway Extension

The extension of railway lines in which Kansas City was interested during the year was thus stated at its close in the report of the Board of Trade :

" The extension of railroads centering at Kansas City was very considerable during the year. Chief among these extensions was that of the Chicago & Alton from Mexico, Missouri, to Kansas City, making another through line to Chicago and St. Louis. This road was nearly completed during the year, and in a few weeks will be opened for business. The next in immediate importance - probably the most important for this place - was the extension of the Atchison, Topeka & Santa Fe Railroad from Pueblo, Colorado, to Clifton, New Mexico, from whence it is to be rapidly extended to a connection with the Southern Pacific, of California, making a southern trans-continental route, a more valuable and important road than the Union Pacific. This road has also been engaged in building a branch to Leadville, Colorado, which will give railroad facilities to the rich San Juan country. The Central Branch Union Pacific has also extended its line to Beloit, Kansas, which brings to Kansas City the trade of the upper Republican and Solomon Valleys of Kansas. The Kansas Pacific extended its Clay Center Branch to Clyde, and built a branch from Solomon City to Minneapolis, which have the same general effect as the extension of the Central Branch. The Kansas City, Burlington & Santa Fe Railroad was further extended from Williamsburg to Burlington, which brings Kansas City an important addition to her trade from the southwestern part of central Kansas."

The pool that had existed since September 15, 1876, was dissolved on the 1 6th of March of this year, and was followed with the first severe railroad war in which the lines at Kansas City were ever engaged. This fight was apparently sought by the St. Louis lines, as against those leading to Chicago, and was inaugurated by the St. Louis, Kansas City & Northern, on the ist of April, with a cut of rates to about one third. It raged furiously for a short time, when the pool was re-organized.

It was during this year that Mr. Jay Gould first became interested in lines of road leading to Kansas City, since when his operations have led to many lively manipulations. This came about in this way: Mr. Gould was the chief owner of the Union Pacific, which, by its charter, was required to pro-rate in equal terms with the Kansas Pacific, for California business - a thing it had always refused to do. T. F. Oakes, Esq., who had, for many years, been general freight agent of the Kansas Pacific, had now became its general superintendent, and in that position was able to give the company most efficient aid in its long struggle with the Union Pacific, for its charter rights. Early in the year he got Mr. Chaffee, of Colorado, to introduce into Congress a bill to compel the Union Pacific to respect the rights of the Kansas Pacific, and a large public meeting in Kansas City, held February 8th, gave it a strong indorsement, and memorialized Congress on the subject. Similar action was taken at other places, and resulted in the favorable reporting of the bill in March, with a good prospect of its becoming a law. Mr. Gould could not defeat the measure by opposing it, and hence, in April, he sent agents to St. Louis, who succeeded in buying a controlling interest in the Kansas Pacific, and then withdrew the opposition of that company. In June the Kansas Pacific and Union Pacific pooled on Colorado business, but the through rates to California, which the public interested in the Kansas Pacific had been struggling for, and were led to expect, were not granted.

Notwithstanding the bank suspensions and financial embarrassments of the year, jgyS witnessed much substantial progress in Kansas City, due to the large influx of people and money. The population July ist was estimated by the directory at 50,126, an increase of 8,340 since the same time in 1877, and it was estimated that 5,000 had come in between July and January. There were 706 new

Early in the year 1879 a proposition was made by some of the old members of the old Chamber of Commerce to revive that organization, but after several meetings and a conference with the Board of Trade, the scheme was abandoned and the Committee of Commerce of the Board of Trade was appointed in its stead. This committee has never been an active one, yet several important enterprises have been inaugurated and secured by it, among which was the smelting works and barge line of 1880.

One of its first acts was to memorialize Congress on the improvement of the Missouri River. On the 7th of January Messrs. Camp, McDowell and Pee, Government Commissioners to lo' ^te the court house and post-office, arrived in Kansas City, and, after acqus'.it'ng themselves with the views of the people and examining the different .,it; ^ offered, accepted the corner of Ninth and Walnut streets, January 2Sth, aid it was purchased for $8,500 and the work of constructing the building soon afterward begun.

In May a party of United States engineers, under J. W. Nier, Esq., arrived in Kansas City, and commenced work on the improvement of the river a few miles north of the city, an appropriation of $30,000 for that purpose having been secured by Mr. Franklin. About the same time the first term of the United States District Court was begun in Kansas City, Judge Krekel presiding.

In the latter part of the month, Robert Gillham, a young engineer who had recently located in the city, proposed to improve the means of transit between the western and eastern parts of the city by building a tramway down the Bluff on Ninth street. He secured the interest of many of the best men in the city, but the project has met with such unfavorable treatment at the hands of the City Council that it is still one of Kansas City's uncompleted enterprises

In August, the first effort was made to organize a Provident Association in Kansas City. Mr. J. T. Howenstein was the projector of this movement and about forty prominent business men joined it; but for lack of attention it was allowed to expire.

In September, much interest was taken in a proposition to convert the roads of Rosedale and Independence into boulevards, but after a number of public meetings the interest was allowed to die out ; yet it will doubtless be done at some future time.

This year was one of great activity in business and individual enterprises of all kinds. Trade was rapidly extended in all directions ; the population increased, according to the directory estimate, to 60,372. Real estate became very active, and transfers increased $1,943,350; beside which there were thirteen additions platted and largely sold, some of which were outside the city limits. And there were about thirteen hundred new houses built, at an estimated cost of about $1,- 500,000.

Railroad Matters

The chief feature of this year was the construction of new railroads in the country in which Kansas City was interested, and changes in ownership of other roads. The report of the Board of Trade for the year, thus summarizes the matter :

"The building of new railroads was revived with the beginning of the year, and the roads in which Kansas City is interested were extended or built branches. The Kansas City, Fort Scott & Gulf Railroad built a branch from Baxter Springs tojoplin; the Kansas City, Lawrence & Southern extended its Independence branch to Greenwood, and is pushing it on to Arkansas City. The main line of the Atchison, Topeka & Santa Fe was extended from Clifton to Las Vegas, New

Mexico, its Cottonwood Valley Branch was extended to McPherson, its Eureka branch to Howard, and its Wichita branch to Wellington and Arkansas City. The Kansas Pacific extended its Clay Center branch to Concordia, its Solomon Valley branch to Beloit, and built a branch from Salina to McPherson. It also bought up and rebuilt and put into operation the old Lawrence & Carbondale road, which had been unused for several years. It also bought up the Denver Pacific from Denver to Cheyenne, and the Colorado Central and Boulder Valley, and the Denver & Rio Grande Railroad. The Central Branch Union Pacific, now a part of the Missouri Pacific, extended its Concordia Branch to Cawker City and built a branch to Kirwin and Stockton. The Atchison & Nebraska Railroad was extended from Lincoln to Columbus, and the St. Joe & Denver to a connection with the Union Pacific. Besides the new railroads thus actually built, much more has been laid out for the coming year. The old ill-fated Kansas City & Memphis road has been sold to a party of Boston capitalists, who propose to build about one hundred miles of it the coming year, and extend it afterward as occasion may require. The Burlington & Southeastern Railroad, which now runs from Burlington, Iowa, to Laclede, Missouri, has announced its intention of coming through to Kansas City during the coming year, and has made four surveys in search of a suitable route. The Kansas City & Northeastern Company has also surveyed a line from Kansas City to Chillicothe; Mo., and expect to begin the construction during the coming year."

" Besides the enterprises here enumerated, the Missouri Pacific Company extended its line between Holden and Paola to Ottawa, and built the old Fall River Railroad from Paola to Leroy; and the Lexington & Southern from Pleasant Hill, on the Missouri Pacific, to Nevada on the Missouri, Kansas & Texas had been projected."

" Great changes have taken place during the year in the ownership of the railroads at Kansas City. Mr. Jay Gould and associates, who previously held control of the Union & Kansas Pacific and St. Joe & Denver Railroads west of the Missouri River and the Wabash road east of the Mississippi, bought early in the year a controlling interest in the St. Louis, Kansas City & Northern and consolidated it with the Wabash under the name of Wabash, St. Louis & Pacific. This connected the roads except the Union Pacific, and to make connection with it the Pattonsburgh Branch of the St. Louis, Kansas City & Northern was extended through to Omaha. Soon afterward the same parties bought the Missouri Pacific and the Central Branch Union Pacific and have since consolidated them, making two divisions, connecting with each other at Kansas City. The same parties also bought an interest in the Hannibal & St. Joseph Railroad during the year, and latterly have bought the Missouri, Kansas & Texas."

In addition to the sales of roads here mentioned, the Fort Scott Company bought the Springfield & Western Missouri road in June, and has since completed it to a connection with the main line at Fort Scoit; and Mr. Gould bought the Kansas City & Eastern Narrow Gauge in November, and in December it was leased to the Missouri Pacific, which he had previously bought, and became a division of that road. Another important addition to Kansas City's railway facilities was the Chicago, Rock Island & Pacific, which in December made a contract with the Hannibal & St. Joseph Railroad for trackage rights over that road from Cameron, Mo., and it began to run its trains to Kansas City on the ist of January, 1880.

The year 1879 was characterized by another great railroad war, which seemed to be the result of the completion of the Chicago & Alton Railroad to Kansas City. In view of its early completion the pool was dissolved again on the i2th of April, and a promiscuous cutting of rates opened on the 14th. The Alton, however, was not opened for business until the i8th, and did not begin running passenger trains until May 13. The war arose over the allotment of its share of business to St. Louis, and was inaugurated by the St. Louis roads. On the 7th of June the war was extended to passenger business also, and for the remainder of the summer passenger rates between Kansas City and St. Louis, and Kansas City and Chicago were but fifty cents ; and freight rates went so low that for a considerable time grain was carried from Kansas City to St. Louis for five cents, and to Chicago for seven cents per bushel, and at one time reached the almost incredible limit of three cents to St. Louis and five to Chicago. The trouble, however, came to a close in September, and on the 12th of that month a new pool was formed which took in. the Alton.

While this fight was pending, in June and July, the contract between the Hannibal & St. Joseph and the Wabash, by which the latter road used the track of the former from Arnold Station to the bridge, and the contract for right of way across the bridge, expired, and the result was a lively individual conflict between the two roads. It was ended, however, in the Wabash building a track of its own, and making a new bridge contract, but the end of the fight was reached only through the courts.

City Growth

The growth of the city during the years included in this chapter was rapid, and the following new additions had been added to the city during this and the preceding year :