This caused great excitement for a time as it was known that the state had, and has a large reward for coal in paying quantities in Nebraska. Finally the drilling company represented that they were down 1,100 feet, collected for the first thousand, managed to lose their drill beyond recovery and abandoned the whole thing. The manager was afterwards killed in Wyoming by one of his employees for becoming too intimate with his wife. The demand increased with its rapid growth, and on May 24, 1888, the first election for water bonds took place and $35,000 of bonds were voted. The survey was made and a water system soon perfected with a large Holly pumping station three and onehalf miles southwest of town.

The pumping system was soon found to be inadequate and besides was too expensive. The

HISTORY OF WESTERN NEBRASKA

cost of operating was about $600 a month and the supply insufficient. In 1891, during the administration of Mayor J. I. Leas, a survey was made which disclosed that a gravity system could be obtained by tapping Chadron creek at a point seven miles south of the city. The matter was taken up by the council and that year another bond election voted $80,000 more bonds and the pipe line was extended up Chadron creek to the designated point. The proceeds of the bonds, however, failed to cover the expense of the new project and interest bearing warrants were issued to the amount of $10,000, which were purchased by Chadron citizens, the plant completed and the pumping station abandoned. The demand for water has increased every year and it was found necessary to lay