Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1869-02-10
l'he Erie and Pemnsyivnni0
Central Railroad Wnr.

Central Railroad Wnr.
The Western Railroad Gasette gives the
following detailed statement Of the Lease
Of the Columbus, Chicago / Indiana Cen
trail r. r., to the Psnsy ylvanis Central, and
also Of the vast network Of sroads thus
paced under the control Of this one com
pany. As the result Of this contest direct
ly affects the Railroad interest Of Davsn.
port, in the matter of Eastern connections
aud in the completion Of the Davenport /
st. Paul road, it will be interesting TO our
Iowa readers, and We therefore give it in
full, - fsllows:
The agony is over. At the mes.inS of the
stockholders Of the Columbus, Chicago d In
disna Central Railway Company on Friday OF
last week, ths lease vt that road to the Erie
Railway Company was NOS ratified, but bv u
decided majority the stockholders rstined .
prspssition offered by the Peupsyivania Rail
road Company, by the terns Ct which . per-
petnal lease Of the Columbus line, with all IL
branches. - granted TO the latter corporation.
Doab.isss the public generally were eurpris-
cd by this result-if surprise IS longer possible
st an thing done or not done BY the advsntue-
Gus Erie. But it had been SO wide and pssi.
bus line, that few paid asy attention 10 the
csnditioa-not always statsd-that this lease
was only an o9er to leass until ra.i6ed BY the
stockhslders Of the rsad. However this may
be, there can Be ~ doubt that the Erie Com
psny gained grsatly in credit by the general
superstition that il had secured connections with
Indians spolis, Caro-. 81. Louis, Peoria, Ksokuk,
kock Island snd Chicsss, and By the same
stroke had cut tbs main couneetion Of most
Of those places with its most formidable rival
But the Psnnsylvanie Railroad, mindful cf
the danger threatening it, acted bsldIy.
eessfully. Il did not desire the Chicago branch
Of the Columbus line, - long ~ il could main J.
tain its connscton with the Pittsburgh h Fort
Wayns, but the rest of the road is almost in-
dispensabls to it; and in the event Of The loss
OF the Fort Wayne road which it considers, at
least not impossible the Chicago branch would
be even mere valuable than the rest Of the read,
% Il would net only secure IL . connse,ion With
Chicago, but shorter line between thas city
and New York than 10 Afforded By any other
route. though not % short - the one now op.
Grated.
The terms offered BY the two reads we're %
follows:
The Erie Railway offered 10 pay the interest
on the bonded debt Of the Columbus Cempa '.
and an average Of per cent TO the stockholders.
1t wsuid lay third rail for the six foot gauge
at its own expense, and delissr the read 10 the
ed it.
The Pennsylvaaia Company guarantees no
dividends 70 the steekheldsrs. hut PAYS to the
Columbus Oe0fany 20 per csnt. Of the gross
ssrnings Of their read. II also will sxpend IN
smeunt equal 70 what it would csst 70 lay q
third rail IN permanent improvements reduc
lag grades, ballasting and otherwise impfov
ing the track. and in Increasing the rollin {
| stock. The amount 10 bs thus expended il
q. 900 200.
Now while the Rrie proposition promised On
immediate, regular, and remunsrativs income
to the COLUMBUS stockholders. the terms offer
cd BY the Psennsyivania secured the improve.
msnt 81 tho property, the development of the
business of all its lines, and rave the Columbus
| stockholders shares 10 the increased income
produced by the increased traffic. I, is es,,ms
ted thstthe earnings Of the road will be s. 600.
ees the first year, 80 per eeat. of which will paw
the q, 400, coo interest On the bonded debt. and
leave - o, ,0oo for dividends on stock and ID ess
earnings can hardly fail to increase very ersst
| when all the connections with the Nissi.si,ri
| are conrlstsd. Indeed. the estimate that The
annual esrnings will reach el0, ,ooo, COO in lesl
| than fvs yea seems not at all eltravagant
| The Pennsylvania Railroad with the coupec
items it nov has. is the most extensive railroad
| corporation in the wsrld Having ea.tsrn ter.
| nini At New York and Philadelphia, the tive
! great cities of America. II will carry over III
maa liue the traffic gathered BY the fslIowina
reads:
| The Panhandle line. reaching from Pi,ts.
bureA to Columbus lss miles, which is.virtu.