, 1873-05-09
: RAILROAD development,


1fc64Aent Nu16On OH 1.rlG'a EutATe.
From the keu York Tribune, lfnpG
NEW YoHK, Aug Z, 1874.
JAMES McHESnr, Eso.-DEAn SIN: In order
that you may be able to present your friends in
Europe, who are interested in the Eric and At
lantio d Great Western Railway Companies, some
Of the ideas which have recently suggested to
you verbally, now repeat for your careful con-
siderntion tho more prominent facts connected
with those roads, and the questions, duo consid-
Grafton Of which seems to me vital to their per-
manent success. Apart from all questions rs to
the cost Of transportation over broad-gauge
lines in comparison with the narrow-gauge
system, which last, for practical purposes,
has been adopted as the best compromise be-
tween tho Eastern and tho Western lines, which
may vary between 4.61a and 4.1o; say, with
out discussing tho comparative cost Of traus-
portation, though believe that. narrow-
gauge road may pay largely on it's costs, while
ono Of six feet may be worked without profit,
it 1s plain to MI those who haye carefully con-
sidered the questions involved, that the inability
! to run connections beyond Buffalo and Dayton
for broad-gaugo cars is a1ono sufficient reason
for requiring q reduction Of tie gauge Of both
tho Erie and Atlantic l. Great Western lines to
4.9H; and, until this is accomplished, tho re-
suits by the owners Of these roads cannot be go
cured.
But having secured this changa or being rs
sured that the means necessary for its nccou1-
pliahmont may be obtained in time to meet tho
requirements Of the Eric Company, another
question at once assumes equal or greater impor-
tanco, and unless VIC ablo, practically, to ex-
tend the Erie limo to Cincinnati and tho South
west, and the lake ports Gnc1uding Chicago), to
st. Louis and the Northwest and to the Pacific
coast, the Erie Road will romain isolated from
the main sources Of profitable business, the ab-
solute control Of whichas its sources, freed from
the capricious and ehangeable interests OF tho
managers OF other lines, is necessary to en-
able any trunk line to command, ut all times, its
due and proper share Of the traffic which, Is
md has reached the soabonra by the Pennsylva-
MIA and Central lines.
RESULTS OF COMPREHENSIVE POLICY.
This far-reaching policy was first acted upon
by the Pennsylvania Road. In ten Years it has,
BY leases, running arrangements, end tho pur-
chase Of interests in Western lneF, become tho
controlling power over many thousands of milosof
railroads, SO that it's syBtem has now become anet
work Of connections from Canada On the north
to the EXTREMIST western points OF tho United
States; and all these lines OF roads contribute
constantly and surely to tho business and profit
Of the Pennsylvania Road. At @ later date the
same systeln vas adopted by Mr.. Vanderbilt,
and the influence Of the Central Road is now al-
Penn6yirenia line. So far, the Eric and Atlantic
have been unable to compete with their rivals in
this fold BY the change OF the direction OF the
Eric, it is now, for the frat time, in position
ness, It it fails now to secure similar ad7an-
tages, it must remain, as in tho past, compare
lively powerleas. and its future cannot bo bril-
In looking over the whole field Of our Western
connections aud Of the main and constant
SOURCES from which our business springs, it
seemed, at first, almost impossible to extend the
influence Of the Eric Railway in any direction
without at once coming in contact and in con-
nct with tho systoms OF the Pennsylvania and
frnf Nv Sbey3-
limo only, which By its branches and leased roads
seemed to meet tho requirements OF the Erie
Company, was FREQ from embarrassing contracts
or alliances. Thia was tho limo Of the Cleveland,
Columbus, Cincinnati j. indianapolis Railway.
This road runB from Cleveland to Columbus, 138
mics; at Gallon 60miles from Cleveland, q branch
runs to Indianapolis, 202 miles, md from the
came point another branch extends to Spring
field, 81 miles, thence BY leased limo to Dayton,
junction, 48 miles, md to Cincinnati, miles, by
leased 1ino-all in the State OF Ohio. On the
north, from Indianapolis to Terre Hauto Estate
Ct lndana), p miles, the road is owned jointly
With the Penns;lyania Company, and thence to
by the Cleveland. Columbus. Cincinnati l. In;
dianapolis and the Pennsylvania Central. It
alao controls By running arrangement the line
from Beardetown, on the illinois. River, to
22s miles, passing through ONO Of the most pro-
duetire portions Of Illinois: It oT2s
railroad extending from Union, On tho
Indiananolis branch, to Dayton, on the
Cincinnati branch, distance Of 4S
miles, Ills branch being now nsed BY tho Penn:
eylvania Road to make it's CINCINNATI connec-
ton from the West. It controls largely. the
business OF tho Tuscarawas Valley Road, %
miles in length, which crosses the Cleveland,
Columbus, Cincinnati d indianapolis at Grafton,
and terminates on Lake Eric. These lines ag-
gregate 1,139 ,niea, Of which $50 miles are free
hold, the remainder being Leased on such advan-
ttaseous terms that the leases alone arc worth
;nree Part OF the present capital to any connect
natl & lndianapois Railway forms close connec-
}ion WITH the Atlantic 4 Great Western at Clere-
4and, s,; ;spnn'gfe1a p .'g Gallon: aud Dayton. The
d Indianapolis Railway is as follows:
nonaeo ceot.- 600 900
s1n- :. =; - 49,, =; -. ....l5 100000
Sufp1us real estate. 9'6o0Ol0
oiher assets, aa Per schedule, exceed. 100000
The shares OF the Company have paid annual
diYldeQla Of Der cent and unHarda frona tha