In the last part of the Nineteenth Century both Kearney and Gothenburg experienced a boom period during which both towns had dreams of becoming industrial giants. These two towns had many similarities and differences during this boom time.

        The most important and basic similarity the two towns shared was that they both had the same type of geographical location. At both Kearney and Gothenburg, the hills bordering the Platte Valley came down close to the Platte River. This made it economically feasible to build a canal from the Platte River into these hills, dam a ravine to form a reservoir and so use the stored water to generate electricity. Without this essential geographical location it is doubtful Kearney or Gothenburg could have had the boom period they did have. To further illustrate this, Ogallala could be brought into the picture. It too had the same type of geographical location and also built a canal and reservoir between the years 1889 and 1892. Unlike Kearney and Gothenburg, however, a boom failed to materialize. One reason had to do with geography again. Ogallala was located on the South Platte River which could not supply enough water to the Ogallala canal, while Gothenburg and Kearney were on the Platte River with its more abundant water supply. There were also other reasons for the failure of the Ogallala canal such as local opposition and a lack of money.

        Kearney was the first to take advantage of its favorable location. In 1882, a local canal company was organized and construction started. The work was almost completed when that company ran out of money. George W. Frank was induced to take over the canal work in 1885, and he carried it to a successful conclusion in 1886. The Kearney boom was on.

        In 1888, Olof Bergstrom, the founder of Gothenburg, saw what was happening in Kearney and believed the same thing was possible for Gothenburg. In the spring of 1888 Gothenburg precinct voted $5000 in bonds to construct a canal, and the Gothenburg Canal Company, a local company, was organized. After this initial activity, however, not much more was done. It was not until 1889 when the people of Gothenburg subscribed nearly $10,000 as a bonus for construction of a canal that serious activity began. That same year the Gothenburg Land and Improvement Company was organized in Kearney by Kearney people. President of the Company was O.S. Marden, who was manager of the Midway Hotel, secretary was C.H. Elmendorf, a son-in-law of George W. Frank, and treasurer was Robert J. Beattie. At one time Gothenburg had streets named after most of these men. This Company accepted the Gothenburg bond and bonus money and agreed to construct the Gothenburg canal. W.H. Elliott of the Kearney firm of Cox and Elliott was selected to superintend the construction of the canal. At first the Company had its office at 2119 Central Avenue, Kearney, but when construction started the office was moved to Gothenburg. In 1890, the canal was completed. The Gothenburg boom was on.

        There was during this time a great deal of contact between the two towns. The Gothenburg Land and Improvement Company donated $3,000.00 to the Kearney Cotton Mill subsidy. In 1889, John F. Jackson, who conducted a general store in Kearney, platted the Valley View Addition to Gothenburg. In 1892, W.T. Scott of Kearney secured the contract to erect the $14,500 Gothenburg school house. At least on one occasion the manager of the Gothenburg overall factory came to Kearney to hire girls to operate the sewing machines. The All Souls Episcopal Church of Gothenburg was organized with the help of Bishop A.R. Graves from Kearney. Harry Small, who came from Iowa to Gothenburg to work in his brother-in-law's drug store, after a few months moved to Kearney, where he would have his own drug store.

        Then there were the contrasts between the booms of the two towns. In 1890, the Gothenburg boom started to take a different direction from Kearney's. In that year all the real estate companies in Gothenburg, including the Gothenburg Land and Improvement Company, were absorbed into one big company, the Gothenburg Water Power and Investment Company. There were a few Kearney men in this company, but most of the shareholderes were from Milwaukee. Individuals from Milwaukee had been increasingly interested in the Gothenburg boom, and it was not long before they dominated this new company. In fact, the Gothenburg Water Power and Investment Company was starting to dominate the town of Gothenburg itself; and, if the Panic of 1893 had not put an end to the boom, Gothenburg was probably destined to have become a company town. Kearney did not develop in this direction. No one company or organization really dominated its scene.
 

First Midway Hotel, Kearney

Columbian School, Gothenburg. Note Drill Team of Gothenburg Fire Department with axes on shoulders.

        Another contrast between the two towns was the amount of local involvement in the boom periods. Kearney had the likes of George W. Frank and H. D. Watson and a legion of others. Such was not the case in Gothenburg. There was some local involvement, such as the three story brick Houston Hotel, which was built by Gothenburg investors; however, not nearly as much as Kearney. Of course, Kearney was a larger and older town. Probably the nearest Gothenburg came to producing something on the level of a George W. Frank or H. D. Watson would have been the brothers James and George Hiles. George Hiles had a large horse ranch south of Gothenburg, which James managed for him. James Hiles, with F. A. Reynolds, platted Hiles and Reynolds Addition to Gothenburg. George Hiles was a big promoter of the development of Gothenburg. In 1890, along with A.T. Gamble, Ross Gamble and H. D. Watson, he organized the Midland Loan and Improvement Company in Gothenburg. A.T. Gamble and Ross Gamble had the Buffalo County National Bank in Kearney. George Hiles lived in Milwaukee, Wisconsin, and was deeply involved in the lumber business there. He was probably responsible, in some part, for Milwaukee investors being so involved in the Gothenburg boom. Present day Hiles Canyon south of Gothenburg is named after this family.

        To contrast even more the Gothenburg and Kearney booms, the residential sections of the two towns would only have to be compared. The residential sections of Kearney are full of fine Victorian houses that were put up during the boom period. Such is not the case in Gothenburg. Only a hand full of really nice houses were put up in Gothenburg during the boom period and these do not compare too well with those of Kearney. There was a lot of house construction in Gothenburg during its boom period, but most were what could be termed cottages that were put up for the many expected factory workers. Most were put up by the Gothenburg Water Power and Investment Company.
 

Longfellow High School, Kearney, 1890

Gothenburg Opera House, 925 Lake Avenue, Gothenburg.

        The most important similarity, therefore, between Kearney and Gothenburg was their geography and that they both took advantage of it to produce their boom periods. Once that was done differences did develop. The main contrast between the Kearney and Gothenburg booms was the amount of local involvement. Kearney had much more local support, while much of Gothenburg's support came from outside the area, first from Kearney, then from Milwaukee.

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