The States and Union. [volume] (Ashland, Ohio) 1868-1872, 1869-02-17
Tho Railroad Competition.

/ When the Erie Railroad, under the
management of jay Gould, leased the
Atlantic and Great Western road, the
Pennsylvania Central was on the point
of taking possession of it. If the
Pennsylvania road had succeeded in
possessing the Atlantic and Great
Western, the Erie would have been
cut off from Western connections, as
the New York Central sweeps the
lake shore. Since the success of the
Erie in acquiring the Atlantic and
Great Western road, the competitor
with the Pennsylvania Central for
Western connections has become of
general interest-ana- eeassst.la impor-
lance to the people of Cincinnati
Our interest here is that those roads
should compete at this point fer
Southern trade and travel, and we
propose to call public. attention to
some facts having a bearing upon that
competition.
We observed in the indianapolis
papers the other day, evidences of a
hiiarity, supposed to be INDUCED at
our expense, because the Ben. Smith
roads were leased by the Pe~nnsylvan-
ia Central rather than by the Erie.
Really, however, it was to the interest
of Cincinnati that the Ben. NTH
roads should go into the hands of the
Pennsylvania Central, because that
event increases the importance to the
Erie of her connections Mt Cincinnati
The interest of Indinlpolis was that
the Ben. Smith TO IDS should fall into
the hands Of the Erie, for then the
Pennsylvania Central, it is believed.
would have been obliged to establish
a competing road to Indianapolis, even
at the expense of building a part Of
it.
The Ben. Smith roads comprise the
lines from Columbus to indianapolis.
with branches leading to Chicago, and
q road west from Logansport 10 the
illinois line, supposed to be looking
for a Pacific connection. The Ere,
cutoff from the Central Indiana field
of operations, by the loss Of the Ben.
Smith lines, has the stronger induce
ment to look to the Southwest. +.
The Erie managers have for some
time, il is understood, been buying
the stock of the Fort Wayne and
Chicago road, with the intention of
obtaining control % !, and getting to
Chicago on that line, at the same time
apprepriating one of the most import
ant feeders of the Pennsylvania Cen
trail. The Legislature Of ennsylvan-
iii, subservient as usualto the railroad,
has passed an act framed expressly to
give: authority to the present Board
of Directors of the Fort Wayne road
to continue in power. The act is that
but o~ne.fourth of the Board shall go
out at one time; and the object is to
prevent the Erie managers from ma
king effective use of their stock in the
Fort Wayne road. If they succeed
in this, so far as Cincinnati is concern
ed we shall not complain.
In the contest between the Erie and
Pennsylvania roads for the lease of
the Ben. Smith hines, there were some
remarkable features that. from their
connection with other matters, require
to be noticed. The Erie offered to
pay SEVEN. peg cent. on the stock anu
the interest on the bonds. The Ponn-
sylvauja offered to run the roads and
pay TO tie stockholders thirty per
cent. of this gross earnings. Unques-
itionably, the Erie offer, ifkeeuree
was to be preferred ts, the other; but
the stockholders @are nlarmed by the
reputation OF the E-ie-road; as a ma
chine in, the hands OF. reckless specula-
tors, and they were adroitly led by the
representatives of the Pennsylvania
Central interest to distrust the credit
of the Erie Seeing their advantage.
and appreoiating their opportunity,
thu, Pennsylyanians had the lease
drawn to go NO effect at once. So
tsat contract 5 fzed; and tie Penn
syfv mia Central has a direct connec-
tipp with Indianapolis, and ecu ;es.a
Chicago line, vhatever happens to the
tert NayneSo &@' @
, But the contract between the Ham
ilton and Dayton Railroad and the
49, Ia a. fr-rrl.E~s 81 - 49, .EI