Reminiscences Part 8

The Duluth & St. Paul Railroad Company, which was then a part of Jay Cooke's system, upon my request, furnished the necessary means, and sent Mr. F. S. Christensen, heretofore mentioned, to Mississippi to bring the party to St. Paul, which he did under many difficulties, in such satisfactory manner that upon his return he received an appointment by the company as local land agent at Rush City, in which position he remained many years. He is now president of the bank at that place, being married as before stated, to my niece, the little Zelma, whom the Indian squaws were so fond of playing with in the old log cabin. The little colony from Mississippi has certainly demonstrated that the northern climate is by far the best for the northern people. They had left Sweden strong, robust and hopeful men and women; after having stayed one year in the South they arrived in Minnesota pale, poor and broken down, lacking strength and energy, and almost without hope.

The railroad company acted most generously towards them. It built them comfortable houses, furnished an abundance of provisions, cooking utensils and other necessaries; they gave the men employment at liberal wages as soon as they were able to work, and yet many of those very people growled and complained because we did not do more for them. I remember distinctly how one of the women, when her share of groceries and provisions arrived, was perfectly indignant because there was only granulated sugar, and she had always been "used to drink coffee with lump sugar in Sweden." This bad trait among newly arrived emigrants from any country is very common, grat.i.tude and contentment being exceptional the first year or two, as all will testify who have had anything to do with them. It really seems that the more that is done for them the less satisfied they are. I am glad to say, however, that after a few years they get over this bad fault, and so did the little party from Mississippi, most of whom have all of late years repented and even apologized for their former folly and ingrat.i.tude. They formed the nucleus of the large Swedish settlement west of Rush City, now one of the most prosperous in the state.

After the close of the legislature in the spring of 1871 preparations were made for carrying out my agreement with Jay Cooke to go to Europe for an indefinite time. Having been criticised by some of my countrymen, for resigning the office of secretary of state at that time, I owe them the following explanation: First: Personally, I was comparatively poor, and the salary which I received from the government, with the great draw-backs for all sorts of charities and public enterprises, which an official in that position has to meet, was insufficient to support me and my family, and I considered that I had the same rights as any other citizen to better my pecuniary condition, which I did by accepting the offer of Jay Cooke. Secondly: It was of greater importance to the public, and I could render better service to the state at this period of its early development, as agent for a great railroad company, which fact was fully recognized by our leading public men, and it was with their advice and at their earnest request that I took the step. I accordingly tendered my resignation to the governor of our state, but he, out of polite consideration, preferred that I should take a leave of absence until fall, when the people would have an opportunity at the political convention, to designate my successor, and wrote me the following letter:

"STATE OF MINNESOTA, "EXECUTIVE DEPARTMENT.

"St. Paul, May 25, 1871.

"_Col. H. Mattson, Secretary of State_:

"Dear Sir: Learning that it is your intention, on taking your departure for Europe, to resign your office of secretary of state, allow me to ask you to reconsider that resolution. You will leave a very competent deputy, perfectly acquainted with all the duties of the office, and in whose integrity, as well as in his honesty, the public have unlimited confidence. Within a few months your successor will be indicated by the delegates chosen by the people, comprising the dominant party of the state, and then he may be appointed, if you are to resign at all, with no uncertainty as to the popular choice of the individual who should fill that important post. For these reasons I hope you will conclude to withhold your resignation, at least for the present. I most cordially wish you a pleasant journey to the field of your new labors, great success there, and a safe return to the land you have served and loved so well.

"Very truly yours,

"HORACE AUSTIN, Governor."

It is true that even after the state convention the governor did not appoint my successor, but preferred to leave the office nominally in my hands in charge of my very able a.s.sistant, the Hon. Pennock Pusey, until the end of the term, so that in fact I did not resign, but kept my office during the whole term for which I had been elected.

In the last week of May I left for Sweden the second time, taking my family with me. The journey pa.s.sed very pleasantly over England, Germany and Denmark. We arrived in Hamburg in the morning of the day when the Hamburgian troops returned under Prince Carl from the Franco-Prussian war, and made a triumphant entry into the city, being received with the greatest enthusiasm by the whole populace. It was indeed a grand sight, as all these troops marched by our hotel, men and horses literally covered with wreaths, flowers and bouquets, thrown over them by the grateful people. On this journey I carried important business letters from leading railroad men in Minnesota to some capitalists in Holland, who had advanced several million dollars for the construction of railroads in our state. I mention this, because it paved my way to very important business connections with prominent Hollanders a few years afterward.

Shortly before entering upon this journey, a private banking and foreign exchange business was established in St. Paul under the firm name of H.

Mattson & Co. My partners were Consul H. Sahlgaard and A. T. Lindholm, who successfully managed the business during my absence. A few years later this affair was merged into the St. Paul Savings Bank, of which Mr. Sahlgaard became the cashier, while Mr. Lindholm and myself both withdrew. The banking firm H. Mattson & Co. was one of the first firms that, as agent for the Cunard Line, introduced the system of prepaid steamship tickets from Europe to America, which has gradually gained the confidence of the people, and developed into a very extensive and important business.

CHAPTER XI.

In Sweden Again--Reception at My Old Home--Visit to Northern Sweden--Field Maneuvers in Sweden--The Opening of Parliament--In Norway--Visit in Stockholm--Royal Palaces--The Gota Ca.n.a.l--A Trip to Finland and Russia--King Oscar II.--A Trip to Dalarne in the Winter.

On June 21, 1871, I landed a second time in my native country at Malmo.

As already stated, I was this time accompanied by my wife and children, and intended to remain in Europe several years, which we also did.

At Hessleholm we were met by relatives and friends who conducted us to the old city of Christianstad, where we were to make our home. The early part of the beautiful northern summer we spent in visiting friends and kinsmen. Entertainments, excursions and festivities of all kinds alternated continually. The kindness and hospitality of the people knew no bounds, and no matter how defective some of the old inst.i.tutions of Sweden may be they are in my opinion more than counterbalanced by the many beautiful and n.o.ble traits of character of the people, which we observed everywhere, and which are faithfully stored up in our hearts and minds, so that we always find a great delight in looking back to those days.

Having spent a large portion of the summer in this manner, I started in the month of August on a tour to the northern part of the country, visiting Stockholm, Upsala, Gefle, Hudiksvall, and several other places.

This was my first opportunity to see the beautiful scenery of northern Sweden, the fine, quiet bays, the magnificent lakes, the pleasant valleys, the green hills, the mountains dark with pine forests, all of which contribute to make the scenery of Norrland so varied and attractive.

In the fall I returned to southern Sweden, and had an opportunity to witness the field maneuvers of the largest portion of the Swedish army, and also to meet the popular king Charles XV. The maneuvers were very fine, but, in my opinion, the troops could not have endured a long campaign, with its exhaustive marches and hardships. The soldiers complained loudly of fatigue, and quite a number of them were taken sick after the march of only fourteen to eighteen miles, although the weather was fine, cool, and bracing. Compared with our American army during the late war, when marches of twice that distance were quite frequent, the Swedish army was inferior; but these weak points would probably soon be remedied by practice in actual warfare.

After having seen King Charles I was no longer astonished at his great popularity among the people. There was something about him which seemed to electrify and charm everyone who came within the circle of his personal influence. I saw him again the following winter at the opening of parliament in Stockholm. With all due respect for old Swedish customs and manners, I cannot but compare this pageant to a great American circus--minus the menagerie, of course. I would like to describe this serio-comical demonstration for the benefit of my American readers; but I am sorry to say that I can no longer remember the t.i.tles of the different officers, heralds, guards, lackeys, pages, etc.,--all of them dressed in the most gorgeous costumes, some of them preceding, others following the king and the royal princes, who were adorned with all the mediaeval clap-trap insignia of royalty, and wrapped in huge mantles of gay colors, and with long trains borne by courtiers or pages. We can comprehend the importance of a display of this kind a couple of centuries ago, but it seems to me that the common sense of our times demands its abolishment, and unless I am very much mistaken King Charles himself, who was a practical and sensible man, was of the same opinion.

The same winter I made a visit to Norway, which was repeated the following summer. The social and political conditions of the country reminded me somewhat of America, Norway being ahead of Sweden in that respect, and I am not surprised that the Norwegians are proud of their beautiful country.

One of my most pleasant journeys in Europe was a trip which I took in company with wife and children in the early part of the summer of 1872.

On this trip we went through the lovely province of Sodermanland, and thence by rail to Stockholm, where we met many old friends and acquaintances. Midsummerday was celebrated in the circle of a number of happy friends at Ha.s.selbakken, and on the following days we made repeated visits to the enchanting surroundings of the capital. On one of these outings to Drotningholm, a summer palace, we met other American tourists, and I remember distinctly how we all agreed that this was just the locality for some charitable inst.i.tution, where the unfortunate poor and suffering members of society could be taken care of, as, for instance, a home for old widows, or orphans, or old men who have served their country faithfully in peace or war, but have been reduced to poverty in their old age. As a contrast to Drotningholm we pictured in our minds the Soldiers' Home near Washington, where Abraham Lincoln had a few rooms, and found rest and recreation among trees and flowers, and it seemed to us that some of the country palaces of Sweden might just as well be used for a similar purpose.

Having remained in Stockholm for some time, we directed our course southward, by way of the Gota ca.n.a.l, past Motala, Trollhattan, and Gothenburg. How great, how delightful, how glorious! Dull and coa.r.s.e must that man or woman be who can make this trip without being proud of the sons of Sweden and their peaceful avocations. In school I had read the history of Sweden, but it treated chiefly of warfare and of the exploits of the kings, only incidentally touching the achievements of peaceful work and the development of social and moral culture, which, in my opinion, are of supreme importance, and deserve the greatest honor.

But then, it must be remembered that Swedish history was at that time written with the a.s.sumption that royalty and a few warriors are the sun and the stars around which the whole people and the country revolve, and from which they received their light and value. A better time has now dawned on Sweden, and even common people are acknowledged to have a certain inherent worth. Still I am afraid it will take some time before old prejudices can be dispelled.

In the fall of the same year I took a trip through Finland and Russia, having secured a pa.s.sport issued by Gen. C. C. Andrews, who was then United States minister in Stockholm. I went with the steamer Aura from Stockholm to bo, Helsingfors, and Cronstadt. The pine-clad islands and sh.o.r.es of the Bay of Finland afforded a beautiful panorama from the steamer. The sight of Sveaborg made me feel that I was still a Swede in soul and heart, for I was overpowered by a deep sadness when I thought of the heinous treason by which this impregnable fortress was forced to surrender.

I spent several days in St. Petersburg, during which I took in the chief sights of this grand city, such as St. Isaac's church, the monument to Peter the Great, the winter palaces, etc. It happened to be the anniversary of the coronation of the Czar, and I had the pleasure of seeing the magnificent military parade arrayed for the occasion. My American pa.s.sport opened all doors to me wherever I tried to enter, and I was treated with the greatest politeness by military as well as civil authorities. To an uninitiated eye my personal liberty and independence seemed just as great here as in Washington; but that was not the case, for I knew that my every step was being closely watched.

One day my guide conducted me to a place in one of the suburbs, where some hundred prisoners were starting on their long journey to Siberia.

He also conducted me to the Church of St. Peter and St. Paul, where the Russian Czars are crowned and buried; and through the fortress and prison, in whose moist, murky dungeons the political prisoners hear the great bell in the steeple striking the hour, and the watchman crying his monotonous, "G.o.d save the Czar," while from year to year the victims of despotism suffer and languish, often on a mere suspicion, and without a fair trial, until death finally puts an end to their sufferings. What is the reason that politically Russia has always been on the most friendly terms with the United States? How can liberty and the rankest tyranny have anything to do with each other? This has always been a riddle to me. I despise the friendship of a despotism like that of Russia, where the government orders innocent men and women to be seized in the silence of the night, torn away from their homes and families, incarcerated in dungeons, and subjected to bodily torture and social disgrace simply because they are suspected of having expressed or cherished liberal ideas.

Returning to Sweden by way of Finland I remained a few days at Helsingfors. Having presented my pa.s.sport to the authorities of the city, the commander of the garrison sent an officer inviting me to visit the barracks and other places of interest. I accepted the invitation and spent two days under the guidance of my cicerone. This was of course a rare treat, and it brought me in contact with many prominent citizens and officers. We also took a ride out in the country to see the condition of the peasants. In common with all other Swedes I have always sympathized with unfortunate Finland, in the belief that its people must be very unhappy and yearn for a reunion with Sweden. This proved to be a great misconception. What a peculiar contradiction! The Russian despots treat the Fins with generosity and justice, and as far as I could understand, the people were highly pleased with Russian supremacy, and would not become subjects of Sweden again, even if they could.[4]

[Footnote 4: Since the above was written the Russian government has shown a disposition to treat Finland in a way that will soon change the friendly feelings of the Finnish people.]

The following winter I had the honor of meeting King Oscar, of Sweden, at the funeral solemnities arranged by the grand lodge of Free Masons on the occasion of the death of King Charles XV. I have attended quite a number of official gatherings of different kinds in different countries, and seen persons vested with the highest authority conducting the same, but as to true dignity and lofty majesty, King Oscar excelled them all.

When I compare him with the czar of all the Russias, or compare the condition of the Swedes with that of their Russian neighbors, I thank G.o.d for my old native land and its n.o.ble king.

Of my numerous trips in Sweden I must mention one in particular,--a journey by sleigh,--in company with my old friend Karl Mollersvard, from Upsala to Gefle, and from Falun south, through Dalarne, past Smedjebacken, and the lakes below this to Vesters. The beauty of the country of a northern clime does not show itself in its entire splendor until dressed in the garb of winter. The branches of the mighty pines loaded down by the dazzling snow; millions of snow crystals, more beautiful than diamonds, glittering from every twig as the sun sends its first morning rays through the forests; the picturesque costumes of the peasantry; the comfortable inns with their fine dishes of northern game; the neat sleighs drawn by small, swift, sure-footed horses; here and there a smelting furnace or a country church,--all these things combined left on my mind a picture of rural life more quiet, happy and beautiful than I had ever seen before.

CHAPTER XII.

Visit in Minnesota and Philadelphia--Conversation with Jay Cooke--The Crisis of 1873--Negotiations in Holland--Draining of a Lake in Skne--Icelandic Colony in Manitoba--Return to America.

In the spring of 1873 I returned to Minnesota in company with a large number of immigrants. Being anxious to have my children learn the Swedish language, I left my family in Sweden where the children attended school. They spent this summer at Ronneby watering place, where the surroundings are characteristic of the mild and pleasant scenery of southern Sweden.

In traveling from the Atlantic to Minnesota we came by way of the Great Lakes and the Sault St. Marie ca.n.a.l. Having spent a couple of months in Minnesota I returned to Europe again via Philadelphia, New York and Quebec. The reader may remember that the Northern Pacific railroad was building at that time, and that Jay Cooke, by means of his enthusiasm and great popularity, had succeeded in raising large sums of money for this stupendous enterprise. The Union Pacific railroad, south of us, was already in operation, and its owners, fearing the compet.i.tion of the new road, had resorted to all conceivable schemes to undermine the confidence of the public in the Northern Pacific road and its promoters.

Many of those who had furnished money began to feel uneasy, but Jay Cooke went ahead, full of hope and confidence in its final success. Just as I called at his private office in Philadelphia in August, one of his bookkeepers handed him a card from a prominent moneyed man in Philadelphia who wished to see him, and the following conversation took place between the two:

"What can I do for you, my friend?" Jay Cooke said.

"We begin," said the capitalist, "to lose confidence in your railroad schemes. I have bought $20,000 worth of bonds, but I am getting a little afraid, and came to ask your advice."

"My dear sir, the Northern Pacific Railroad bonds are just as safe as United States bonds."

"If this is your conviction, will you please exchange them for my bonds?"

"Certainly. Here; give this"--he handed him a slip of paper with a few lines on it--"to my cashier, and he will give you United States bonds in exchange."

The gentleman withdrew perfectly satisfied, and Jay Cooke turned to me with the following explanation: "I have seen the Northern Pacific country; that's the reason I am so confident in the success of this railroad enterprise. If we only succeed in accomplishing the work, I shall certainly prove that I was right; but if we fail, our antagonists will get a grist to their mill. But, whatever the result may be, no one shall have a right to say that I did not stake my fortune on my conviction."

The same day I left Philadelphia for Europe, but I had scarcely reached Sweden when the great crisis came. Jay Cooke, whose fortune was estimated at twenty million dollars, was a ruined man. The work on the Northern Pacific railroad was suddenly stopped, and the obligations of the company depreciated to almost nothing. We all remember the terrible crisis that followed. Thousands of people were ruined, and the whole country suffered one of the most disastrous financial crises of modern times. My own loss was a very hard blow to me, not merely because I lost my position, but because my property in Minnesota, which consisted exclusively of real estate, stock and farm products, lost its value.

This catastrophe was chiefly due to business jealousy, and there was no real cause for the panic, which was also clearly proven afterward. The Northern Pacific railroad has now been completed, and has proven to possess all the merits which Jay Cooke claimed for it. Its obligations are again above par. Jay Cooke has paid every dollar of his debt, with interest, and again lives in affluence and luxury, respected and honored by the whole country.

Returning to Sweden I pa.s.sed through Holland, which country I had visited a couple of times before, as already mentioned. I carried important business letters from the leading men of the St. Paul & Pacific Railroad Company, now known as the Great Northern Railroad Company. Dutch capitalists had advanced the money--about twenty million dollars--for building this road. The company had received very extensive land grants from the United States government; but during the first few years after the construction of the road to Breckenridge the country through which it pa.s.sed was so spa.r.s.ely settled that the traffic of the road was insufficient to pay its running expenses, hence their stocks and obligations depreciated very much in value. But the American railroad officials with whom I had been connected in the capacity of land agent were firmly convinced that if this road could be extended about thirty miles to the Northern Pacific railroad, and a little more time allowed for the settlement of the country along the line, the enterprise would pay a handsome dividend. It was my task to explain this to the Dutch capitalists, and persuade them to advance another $150,000--a mere trifle compared with what they had invested already--to build said extension, which was to pa.s.s through a perfectly level country. The president of the company, George L. Becker, and its land commissioner, Herman E. Trott, had previously visited Holland on the same business. But all our representations were in vain. The Dutch were stubborn, and would not give out another dollar. "It is of no use," they said, "to throw away a small sum of good money after a large sum of bad money, for it is all lost, anyway." The crisis of 1873 aggravated the situation still more, for this company, and its bonds were continually depreciating. The St. Paul & Pacific railroad had pledged itself to accept its own bonds at par in payment for its land, and as I and others had sold hundreds of thousands of acres of this land to new settlers on credit, I tried, and also succeeded, in perfecting an arrangement with the Hollanders, by which the new settlers who had purchased land on credit, were allowed to buy on time the bonds of the company, at about twenty-five per cent. of their face value, and apply the same, without discount, on their debts for the land, a method of liquidation that was highly advantageous to the settlers. As soon as this was found out in Minnesota, bankers and other capitalists sent agents to Holland to make similar arrangements, and, in the course of the next three years, a brisk business was done in exchanging those bonds for land, by which thousands of settlers saved large sums of money, and a number of bankers and agents made small fortunes. If I had returned to Minnesota immediately I could have realized a very handsome profit by this arrangement; but I had made agreements which compelled me to stay in Sweden some length of time, and I left this business in the hands of my former partner, Consul Sahlgaard, and the St. Paul Savings Bank. But they did not grasp the importance of this matter until it was too late, and the lion's share of the profits went to new parties; who thus reaped the benefit of my plans, as is often the case under such circ.u.mstances.

As in the case of the Northern Pacific Railroad, the subsequent success of the St. Paul & Pacific Railroad proved that Messrs. Becker, Trott, and myself were right, and if the Dutch bondholders had followed our advice they would not only have saved their twenty million dollars, but also made as much more. The bonds continued to depreciate to almost nothing until the company was declared insolvent, a receiver appointed, and very expensive legal measures were resorted to, until finally the Dutch became disgusted with the whole matter and transferred all their interests to an American syndicate headed by J. J. Hill, of St. Paul, at present the well-known Minnesota railroad king. The sum paid was a mere trifle. Hill's syndicate procured money for building the connecting link and completing the system. The syndicate made twenty million dollars by this transaction, and, within five years after the Dutch had sold their bonds for a mere bagatelle and the company had changed its name to the St. Paul, Minneapolis & Manitoba, practically the same bonds were sold on the exchange in Amsterdam for one hundred and fifty cents on the dollar.