New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1868-03-28
TIE ERIE" WAR

IL the pending Erie contest were
mere fight between Vanderbilt and Drew
for the control of a railroad. 1t would he
n matter of no concern to the public. with
the single exception of the Chamber OF Com
merce - which, pondcrously expressed It's
sense of the danger OF improving the railway
interest-no one has taken sides for Vanderbilt
against Drew, or for Drew against Vanderbilt.
But, in fact, the question at issue is one OF
principles more than men, The real question
is whether our railroads shall continue to be
mere instruments of corrupt mOney-making for
their managers, without yielding revenue to
their owners, or rendering service to the pub
lie, or whether, like other industrial enter
prses, they shall become source OF income
TO those who have invested their money III
them, and shall at the same time faithfully
perform the function for which they were con-
structed.
Six wears ago, three of the six railways ter
minating in the City of New-IOrk-to VIII:
TIE New jersey Central, the New-fOrk ana
New Haven, and the New-Jersey Transportation
Companies-paid regular dividends and were
held at a premium: and the other thrce-the
Erie, Hudson River, and Iarlem-paid no div
idends and were at heavy discount. in the
first three, Commodore Vanderbilt was di-
rector and heavy stakeholder. In two of the
last three, Daniel Drew was Il director, though
he was not supposed TO hold much OF their
stock. To Nanderblt's mind, 1t seemed an
anomaly that road running from New York
to Trenton should be good property, while a
road from New-YOr TO Albany was worthless;
that line from New-YOrk TO New-Haven
should earn large dividends, while line
from New-York to Chatham FOur-Comers
could not pay expenses. Suspecting
that management had much to do with
the difference, the Commodore acquired the
Harlem Road. For series of years, the stock
had ranged from to 49, Dividends had been
so long suspended that stockholders had for
gotten the address Of the Company. An cleo
ton of Directors was held. Mr.. Vanderbilt and
his friends went in; Mr.. Drew and his friends
went out. 1t took about two years to work
| out the problem but at the end OF that time
| Harlem not only earned dividends, and COM
manded q premium in the market, but carried
passengers more safely and more regularly than
ever before. The Commodore then purchased
control of the Hudson River, which had ruled
for a series of years ut 20G3O, had never been
able to extricate itself from crushing load OF
floating debt, and had been famous for acct
dents and irregularities Within year, Hud-
son became regular divdend-paying stock
and commanded large premium; while
freight and passengers were moved with per-
feet regularity, and there were few Interruptions
with absolutely no accidents. Thus taught
that nothing bnt management was
reaiired to render our NewYOlk roads good
property, Mr.. Vanderbilt next acquired control
of the New York Central. This line, which III
some points of view is the finest railway n
the world had for years paid 8@S per cent
dividend, supported the Democratic party
along its line, fed the Albany lobby, furnished
food and rament to Mr. Cornings constituents
and sustained the weight of $4,000 free passes
With economy, it was clear that dividendi
might be doubled or quadruplcd. But, at The