The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-07-19
The Proposed Railroad Consolidation.


An adjourned meeting OF the stockholders Of the
philadelphia and Erie Railroad was held yestsr-
DAY at noon. The object OF the session was the
cor SonsideTatlon Of the proposed merger Of the War.
Ish ana frankltn Railroad Company with the
1hilsdelphia and Erie Railroad Company. His
Honor Mayor Nc michael presided.
MT Henry d. Moore eaid it would be remem-
pered mat at the former meeting Of stocknolaeIs
ne stated he was preparing communication 70
councils on the subject Of the merger or conson-
dation of these roads, and suggested an ADJOURN
ment to give Councils time TO consider ana ACT
until to. day Tor that purpose The communica-
uon 70 which he alluded was prepared ana elgneu
that communication had not been published in the
proceedings of Councils, he respectfully asked
EfTo the OounciIs of the City Of Philadelphia.
Gentlemen: The undersigned, represen GauNes OF
the city in the Philadelphia and Erie Railroad
Company, would respectfully state that there are
two or three important considerations whlch IN
duce them to urge upon your honorable body
favorable consideration of the proposed merger or
consolidation of the Warren and Franklin Rail-
way Company with the philadelphia and Erie
road. First. We deem It highly Important and
essential that the Philadelphia and Erie road
shall secure and permanently retain it's trade with
the oil region of Pennsylvania through which the
Warren snd Franklin road passes, that it cannot
possibly be diverted from a., ~ by any rival iroaai
done unless by owning and controlling the road.
That the business Of this region is Of great impor-
tance will be apparent from the fact that about
one.fourth of the entire business OF the Phila-
delpha ana Erie road since the completion of the
Warren and Franklin road has come from the latter
road, and this business must from time to time
continue TO increase very largely, from the fact
that within the last two weeks, through the exer-
tions of the Warren and Franklin road,
rangement has been made with the Farmers road,
running from Oil City TO Petroleum Centre, which
gives the Warren and Franklin road virtual con-
troll of the business of that road for five years to
come il the proposed consolidation with the Phi
ladelphIa and Erie road shall be consummated,
In securing the trade OF this road they had to con-
the New York Central, the Atlantic and Great
Western and the Erie Railway Companies, which
interest now controls the Oil Greek road, and by
In tlv had.
deavored TO get entire control of the Farmers road
and that portion Of the oil region, but in which
they have been ehecKmated by the Warren and
Franklin Company, in the arrangement to which
nave alluded. Another consideration is the fact
Railroad will be finished to OIL Olty, where It
will connect with the Warren and Franklin road,
and them unless that road is controlled by the Phi
ladelpha and Erie, It's business may be diverted to
Pittsburg or elsewhere, instead of coming TO Phi
ladelphia over the Philadelphia and Erie and its
connecting roads and this most assuredy will be
the result If the Warren and Franklin road shall
fall into the hands of adverse interests. II does
appear that these considerations are too inn
portant TO be overlooked or lightly considered, For
the last five years the business of this region of our
State has been strongly contested for by New York
interests adverse to our State, and in this contest
they have succeeded only to limited extent,
in which they would have been entirely successful
but for the building and completion of the Warren
and FRANKLIN road and so exceedingly important
did the projectors of that road consider its
speedy completion as bearing upon the in
terests of the Philadelphia and Erie, and
other railroad interests of State, that this road
OF about SO miles in length, was completed and put
in operation in the short space of eight months,
from December '65 10 August'66, and notwthstand-
ing this road was completed in this short space Of
tine and during the high prices and severe winter
of that PERIOD its cost does not vary S400 per mile
from the cost of the Philadelphia ana Erie road.
And so important did the Philadelphia and Erie
road consider the construction of the Warren and
Franklin road in reference their own interests,
that at meeting of their held for that
shareholders to indorse the mortgage bonds of the
War; and Franklin Company to the amount OF
Ira CnaIO n
represented as follows viz
1st mortgage bonds, $l,3OO,OOO
Stock 2S 0OO shares, 1,4O0,O0O
2d mortgage bonds, chiefly used to furnish
equipment sidings, depots shops, &C., 7OO,OOO
Total cost of road and equipments, s3,4OO,OOO
which is about $65,OOO per mile with its engines
and cars, and the cost of the philadelphia and
Erie was Sls7OO,0OO, or S65,OO0 per mile, without
any equipment. Both companies are entirely clear
of floating or debts other than those stated There
is another impor tant consideration which has had
much weight with Directors for the city in
coming to the conclusion we have upon this sub
iect IL is the fact that neither the Warren and
Franklin nor the Philadelphia and Erie Company
a contest with strong rival roads for the valuable
petroleum and other trade Of this region OF our
State; but with combined interest," ana the ala,
also, of our powerful lessee, the Pennsylvania
Railroad, we can then successfully contend win
section OF our common wealth. Under these con-
alterations and believing that the best interests o
the Phiaaepha ana Erie r9ao, ana aSU
will be vastly promoted by the proposed cohsoil-
dation merger OF the warren ana FRANKLIN
Railway Company, we would respectfully urge
your honorable bodies to appoint suitable com
Inittee, which, In conjunction with tne mayor @
shall, after full examination Of the SUBJECT yot
the stock of the city for or against consolidation
as in their Judgment may best promote the lhIer
ests Of the city of Philadelphia
(Signed,) HENRY D. MOORE
twill be seen, Mr.. Chairman, that in this com
municaton we give our reasons why we favored
the merger consolidation OF these ROADS, ah'
after giving those reasons, we respectfully aske
Councils to appoint q suitable committee 10 ACT II
conjunction with your Honor in examining IN
subject, and after such examination 20 act as II
your Judgment might seem best for the interests Q
ihe civ Was not that a reasonable proposition o
request to make OF Oouncilsl Oould we 40 any
thing less and discharge our duty as representa-
tiVes OF the city, than TO ask them 10 lhVesuBat
the natter and then act as in their judgment mlgh
seem best for the interests of the cttyl And VIVA
mas been the result, sirl Why since this commu
tIon of merger or consolidation has been denounee
Ia unmeasured terms as can attempt 10 oolster u
worthless and bankrupt corporauon,' ana o
other epithets OF a similar character In re
plV 70 them 1 have only to say tnat II gen
tlemen can find any pleasure, or can lee
IL TO be their duty to use sucn iahguag
IN reference 70 It, they are welcome 70 the plea
sure and privilege. have done what con
sidered 10 be my duty, sir and In doing IL nav
been governed solely and entirely by what thln
ia for the best interests OF the Philadelpnld an
Erie and the Pennsylvania Central roads, ana IN
business interests and prosperity OF the city
Philadelphia. / am not interested 70 the amour
of a dollar (and / can say the same for my CO.
league, Mr.. Norton,) in any manner or form IN ~ ~
Warren and Franklin road, either dlrectly OF ~
directly, remotely or conungenuy, Dut am ~
terested in the Philadelphia and Erie road ana y