Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1867-04-10
BIG RAILROAD FINANCEERING.
FAST FREIGHT LINES.
How TO Make Them PaJ
Those In the Ring.

: sion of our State Legislature, com
4 mittee appointed at the previous ses
e sion, made a report to the Senate o
the result of their investigations into
the condition and workings of the rail
roads of Ohio. They unearthed sew,
sral nicely planned schemes for putting
money in individual pockets at the ex
pense of the many. That which re
+ lat es to operations connected with the
Atlantic & Great Western R. R., viii
more partiulary interest readers in this
section. The following is copy of the
"Reply of Special Committee on Rail
roads, to Memorial of S. S. L'Hom
medieu, FEBRUARY %, 1867.
A memorial and representation hav'
ing been made by S. 5. L'Hommedieu
President of the Cincinnati, Hamilton
& Dayton Railroad Company, to the
to the General Assembly, and received
end ordered to be printed by the SEN
ate, complaining of unfairness to the
officers and companies under his charge,
and of misstatements of facts relating
to them, in the report of the special
committee on Railroads, we deem ii
proper to make the following answer :
We made examination into the man.
agement of the Cincinnati, Hamilton
& Dayton, Dayton & Michign, and At
lantic & Great Western Railroads in
the same manner, and for the same
i purpose, that the examination of the
management of other roads was made,
and were careful to guard against the
dangers Of Partially or Injustice. In
taking the testimony, we took that of
Mr.. L'Hommedieu last, furnished him
all the testimony taken in relation to
his roads, and allowed him time to
make full and deliberate answer upon
interrogatories. Upon .re-examination
of Mr.. Moores, we again allowed him
to make answer in writing thereto
The whole of the evidence is printed
with the report of the committee, and
if the explanation made by Mr.. L'Hom-
medieu is not sufficiently full or salts
factory, it is no fault of your commit
tee.
We have been so considerate in the
preparation of our report, as in taking
the testimony, concerning the affairs of
the roads under Mr.. L'Hommedieu's
charge, especially as to transactions
bearing upon his personal conduct and
that of his subordinate officers, as will
appear by reference to the testimony.
The Great Eastern Despatch was Or
ganized by Julius Henderson, son, and
w. I. Williams, step son, of d. g. Hen
derson, to who was secured one-third |
interest in equal shares S. S. L'Hom- |
medieu, to whose son, S. S. L'Hom- |
medieu, Jr., and son-in-law, J. J. Slo- |
cum, one-third interest was secured in |
equal shares, the cash being advanced |
therefor by S. S. L'Hommedieu and |
Daniel McLaren and J. r. Reed, for |
each of whom one-sixth interest was
taken, in the names respectively of
Slocum and Williams, and the partner
ship was known as Williams & Slocum.
The Despatch operated almost exclusi-
vely over the Cincinnati, Hamilton and
Day ton road and roads leased by it, of
which Mr.. THommedieu was Presi.
dent, Mr.. McLaren was Superintend-
ent, and Mr.. Reed Freight Agent, per-
sons originally controlling, or in fact
owning, a two-t third interest in the De-
spatch. 1t operated in direct competi-
ton with, and secured business east
ward, otherwise going over the Allan
tic and Great Western Raiload, of which
D. c. Henderson was through freight
agent, Mr.. L'Hommedieu President,
and McLsren Superintendent, persons
controlling, or in fact owning
q one-half interest in the Despatch.-I
This Despatch was organized at the {
time of the existence OF a contract be-
tween the Cincinnati, Hamilton & Day
ton, and Atlantic & Great Western
in which the former contracts &
to deliver the eastward bound freight
it controls to the latter at Dayton
This Despatch, therefore. operated to
destroy, to some extent, the business of !
the Atlantic & Great Western Road, s
which it was the duty of Mr.. L'Hom- ]
medieu to promote to defeat the con- =
tract, involving the honor of one COM
psny and the rights of another, which ]
It was his duty to preserve and main
tain and it was interested in absorb \
ing the profits of the Cincinnati, Ham, t
lton and Dayton road, which it was 7
ais duty TO guard. It is difficult to .
of case of more thorough 8
of inconsistent interests o
and duties, yet we alluded to only a q
portion of these circumstances, and d
lid not mention Mr.. 'Hommedieu's b
with them in our report.
Mr.. L'Hommedieu, in connection
With Dean Richmond, reorganized a t
Propeller line on Lake Erie, between {
Buffalo and Toledo, in which stock was
aiken BY Mr.. L'Hommedieu, Mr.. Nc S
Laren and Mr.. Griffiths, and by con- /
ract between the Cincinnati, Hamilton q
Z Dayton, and Dayton & Michigan g
'oads, the Propeller line and the New i
York Central, established through
reight route between Cincinnati and q
he east. Report, pages 15S co., This 4
through route necessarily operates in P
lirect competition with the Atlantic & &
treat Western road, of which Mr.. K
q IHommedieu is President, Mr.. McLa- a
'en Superintendent, and Mr.. Grifiths L
through freight agent. In our report
We did not allude to the matter. p
These examples are sufficient to show a
hat Mr.. L'Hommedieu has no cause p
If complaint against the committee, as a
% their treatment of him either in o
heir examination or report. p
He has as little cause to complain of n
he statements of facts or conclusions, 81
n reference to the operations of the "
treat Eastern Despatch, contained in d
heir reports. Il
l. The first inaccurracy complained ei
#, is the statement that thee. II. & D. Il
Dad charged the Great Western De- a
patch $50 per car of eight tons from L
Dayton to Cincinnati, and for all ex- l.
ess over eight tons. C
Mr.. L'Hommedieu says in his testi- Vi
nony REPORT, page I47): THE Great fc
Western Despatch Company also have "A
car load rate over the c. II. & D. and cl
|. & o. w. roads eight tons westward ii
ound freights, for which they pay" OF
&C. Mr.. Reed, Freight Agent Of c. II. Ii
, D. Road, says Report, page 1927