Omaha daily bee., 1899-12-17
WHY CAPITAL Is BACKWARD
Pertinent Discussion by Omaha Business Men
and Leading Capitalists
SOME THINK oMAHAls DOING WELL ENOUGH
Others Point Out n Variety of Ren-
sons Why Omaha Money is Not In
vested In Commercial and In
dustrinI Enterprises.

OMAHA, Dec. 14.-To the Editor OF The
Bee; Commenting. editorally, upon letter
from Mr.. 2. I. Lindsey The Bee OF recent
date uses this language:
In other cities men of wealth take pride
IN giving financial support To all new un-
dertakings tending TO increase the trade
lmrSrtance Of the community. In Omaha
tpa,r cuplIa,isls n,a seem TO prefer to invest
state. AS long as Omaha people prefer to
pant their capital in Texas townsites, Mex
lean coffee plantations Missouri zinc mines
ana Colorado holes in the ground, instead
OF developing the resources at home, Omaha
will be in danger of falling behind in the
race for commercial supremacy.
1t seems to be certain that Omaha is not
only in danger of, but that 1t has already,
fallen behind in the race for commercial
supremacy" However unpleasant or dis
tasteful the fact may be- it cannot | be-
heve, be sincerely denied. Whether II be
due to the fact stated by The Bee, that "our
capitalists seem to prefer to invest their
money outside of their own city and state"
or not, let us assume that it is So 1t be-
comes important, then, to know why this
Is true All rejecting persons understood
that capital can neither be coaxed nor
ecolded into engaging in Industrial and
business enterprises in Omaha, and such
persons Will agree that IL the reason why
capital goes elsewhere, fails to seek in
vestment here, can be discovered and re-
moved 1t will then engage in operations
here. / doubt if it can be correctly said
that, I'm other cities men of wealth take
pride in giving financial support to all new
undertakings tending to increase the trade
Importance of the city" Capital 10 not
often invested ON such motives and when 1t
is it is generally lost, which is not only
bad fer the capitalist but it is worse for
the city than II no investment had been
made.
Now, l think 1t must be conceded that
"our capitalists" do not prefer to invest
their money outside of their own city and
state" out of mere perversity. If capital
lists, whether of Omaha or elsewhere, prefer
to invest their money elsewhere than in
Omaha and Nebraska there must be some
economic reason for it. The reason may or
may not be sound but it is not perverslty.
Capitalists everywhere are moved by much
the same motives and the circumstance of
living in Omaha would not produce any
change Besides, foreign capitalists are no
more active in promoting new enterprises in
this city than our own whereas / believe
the capital of persons residing in this city,
as well as those residing elsewhere, would
promptly seek investment here if there was
believed to be no economic reason against
it. ....,s,
what 1t conceves to be the true reason
why capital does not engage in new in
dustrial and business enterprises in this
city? M
Following out the suggestion in this COM
munication The Bee has submitted the ques-
tion propounded to number of the leading
capitalists with the following results:
Henry w. Yates, president Nebraska Ma
Dat
ments upon Mr.. Lndsey's recent paper and
MS comments upon both. The question in
volved is, of course, an important one. If
for any reason our home capitalists are un-
willing to invest in home enterprises we
are certainly in a bad way and ought to
fall behind in the race for commercial su-
premacy.'
ut is true that men of wealth, as a rule,
take pride in home interests and endeavor
10 advance them and those in Omaha are
no exception to the rule. This has been
evinced on numberless occasions. In fact
am inclined to believe that we have had, il
anything, too much of tais public spirit.
There have been many who, in their en-
deavors to build up the city, have en-
dangered their capital and quite number
OF them can be named who few years ago
were considered men of wealth who are not
now included in that category.
ut is unreasonable to expect all who have
capital to limit its use and operation to
their home field. If some individually have
the opportunity presented to them to in
vest to greater advantage in Texas town
sites, Mexican coffee plantations, Colorado
holes and what not, 1T is their privilege to
do so and it is really to the citys in
terest that they should. The capital gained
will, in all probability, be expended here.
M is entirely correct in his assumption
that capital will naturally go only into those
Investments which promise a satisfactory
return, but its failure to do that in Omaha
Is no evidence that these opportunities do
not exist 1t should not be forgotten that
there Is a limitation to the amount of local |
capital which can be thus used This, l |
think, is the real difficulty in Omaha and |
do not know that 1t is different elsewhere. !
Examination will probably show it is outside |
capital which in every case builds up a |
progressive city.
~ am not willing to concede that we |
have fallen behind in the race for CONNER
cial supremacy. On the contrary, there
never before has been time when our COM
merce has been so widely expanded and the /
operations of our jobbers and manufactur-