Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1868-12-23
IRON the New york Talss Dec. 9Th
Report OF Mr.. Jay Gould on the Past
and Present Of the Erie Railway.


and Present Of the Erie Railway.
Shortly after 1 became President Of
this Company, some months since
and after thoroughly acquainting my
self with the wants and requirements
of the Company, with the view OF de-
voting what energy and experience
had to their cOnsummatiOn, L acted
upon the theory that the Erie Railway
Company, which owed its existence
to the State. was bound to pursue q
policy that would foster and protect
both the commerce of the city and the
business Interests ofthe State. found
the equipment of the road, both en-
gines and cars, inadequate for its
business. There is not a local station
between New York and Buffalo where
business men and shippers are not now
greatly suffering Tor want of cars. In
addition to these local requests, We
are bound to give facilities to our
Western connections. They are now
and have been greatly suffering from
an inability TO furnish cars and
gines to bring forward the freight.
Much Western trade has thereby been
driven away from New York TO Phil
adelphia and Baltimore. / propOse to
remedy this evil by furnishing the
road with ample equipments to accom-
mOdate the public, ond protect the
local customers of this road.
The Western connections Of the
Company were in an unsatisfactory
condition. The Michigan Centraland
Great Western Railways, forming q
line between Chicago and Suspension
Bridge, were completely shut off from
us by want of q link of twenty miles
of road between Buffalo and Suspen-
sion Bridge. l entered into negOtia-
tons with these Companies, and, as q
result, the road in question is now be-
ing rapidly constructed, and by July
l, the Erie Railway will be doing a
fair share of the business of these
Companies between New York and
Niagara Falls and Suspension Bridge,
connecting at Chicago. From this
source 1 expect to derive a revenue of
from one to two millions of dollars
per year.
We not only are suffering for en-
gines and cars, but a large portion Of
the line was single track, and the pres
sure upon it was so great that it was
almost impossible to pass the vast traf-
fic of the Company over it. Frequent
delays in both passenger and freight
trains were a necessary result. These
delays injured the traffic of u line,
to obviate which i am now double
tracking the road as rapidly as posi-
BILE from Buffalo east, Hornellsville
east, Corning west, and on the Della
ware Division. Very soon the entire
line between Buffalo and New York
will have q double track, easily saving
one hour in the running of passenger
trains, and one day in the running of
freight trains, beside doubling the ca
pacity of the road. / found the char
acter of the iron rails so deficient in
quality that l considered the road IN
safe, and Immediately called to my as
sistance the best talent and experience
in the country, and we r now man
ufacturing our own steel rails at q rate
which will cover the entire line be-
tween Buffalo and New York in about
two years, and we have already eighty
miles of steel rails laid on the Eastern
Division, and I consider our track to-
day equal to any in the country. l
found the road in bad shape. As to
the supply of fuel and its great cost,
although we were buying q large
amount of coal, we were buying much
of it at retail prices, and our fuel ac-
count was costing US 81, 100000. I am
now mining coal at Our own mines at
a cost of about $3.50 per ton, or q
saving of nearly $l,OO0,000 On the
single item of fuel alone.
There was another important mat
ter presented to my attention at an
early day, namely, a third rail, Dr. mar
row gauge. All our Western eonnec-
tons, excepting the Atlantic and
Great Western, were narrow gauge,
requiring a transhipment at Buffalo
and Dunkirk of every a of through
freight passing over the road, while
on the competing lines of the New
York Central and Pennsylvania Cen
trail there was no transhipment be-
tween Chicago and New York. The
Western roads agreed to furnish the
cars for the whole line between Chi
cago and New York, leaving it only
for the Erie Company to provide the
third rail. / could not, acting for this
Company, decline so important an
improvement, and 1 was rapidly con-
centrating the arrangements to carry
out this plan, when the recent htiga-
tons, supposed to be in the interest of
competing lines broke out. Beyond
the expense of these litigations, and
the annoyance and loss OF time they
Occasioned me, 1 do not regret them.
The charges made are without the
slightest foundation in truth, as was
well known to the principal insti-
gators.
Since 1 have been connected with
the Company L have secured the fol-
lowing roads and on the following
terms:
The Paterson and Newark, extend
ing from Newark to Paterson, leased /;
the Erie Company to operate the road
and to pay as REM thirty-five per cent.
of the gross earnings; the Erie Com
pany have the fixing of rates.
l regard this connection as very i'm
portant. 1t makes Newark, q city of
one hundred and twenty thousand
population, and the largest manufac-
turing city in the Union, one of the
termini of the Erie Railway.
The Newburgh and New York Rail-
road, fourteen miles, making the
shortest line between Newburgh and
New York, is being constructed by
this Company. 1t had been cOntem-
plated.
L AdNt llduc u COlllIdCl Will llC
Delaware and Hudson Canal Com
pany for the entire transportation of
the Western coal, amounting to $780,
900 tons per annum, a tonnage equal
to our total through tonnage last year.
This embraces the use of eight miles
between Honesdale and Hawley, and
also a new road between CarbOndale
and Susquehanna. This coupled with
the new road being constructed in
conjunction with the Michigan Cen
trail and Great Western, between Buff
falO and Suspension Bridge, embraces
all the new lines that have been Sc
cured or constructed under my ad-
ministratiOn. Iconsider them all i'm
pOrtant additions to the Company.
1 have also revised and made a new
contract with the United States Ex-
press Company, made upon a more
equitable basis, and largely increasing
our compensation for doing the eX-
press business,
Alta meeting of the Executive Com
mittee to-day, the President was di-
rected to commence suits against Cor
nelius Vanderbilt for the recovery of
the 81, 600, 900 subsidy paid him, and
to compel him to take back the s., 000,-
900 of stock at the So, 500, 600 originally
paid him by the Company.
Suits were to-day commenced