The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1895-07-27
HISTORY OF A FAMOUS WAR.
The Cumberland Valley Railroad Recalls
Celebrated Incident In Railway Annals
by Purchasing the south Pom Road.

Philadelphia, July 26.-Announcement
Is made that the Cumberland Valley
railroad has purchased the maps. un-
finished road and general effects of the
South Pennsylvania Railroad company
and that corporation has ceased to be
an independent organization. The
Cumberland Valley is controlled by the
Pennsylvania railroad. SO that the
famous South Pennsylvania, despite the
DEGREES Of court and the Constitution OF
Pennsylvania. has lawfully, though
rather fgnominiously. fallen into the
hands of the Pennsylvania. Ten years
ago there was great stir over this
matter. The Vanderbilts, the great
owners of railroads. and the Pennsylva-
MA came into conflict during period
when the four original trunk lines"
were almost always at odds.
The Vanderbilts We're piqued at what
they thought was the encroachment Of
the Pennsylvania railroad into their
New England territory. They began
magnificent war of rates. and finally
William II. Vanderbilt threw his for
tune into the fight and announced that
he would retaliate by building the Beech
Creek road into the heart of the Penn
sylvania's rich bituminous coal pre-
serves, and would even parallel the
Pennsylvan!a's main line by construct
ing the South Pennsylvania. The Wig
orous attitude of Mr.. Vanderbilt was
In some respect due to a notion that
the Pennsylvania was encoura ging the
West Shore project. which paral.eled the
main line of the New York Central.
This road was really projected and
built by some Wall street people, who
hoped to repeat the success Of George l.
Seney, who had recently constructed
and sold to the Vanderbilts the Nickel
Plate road, which paralleled the Lake
Shore.
Embarrassed Even jay Gould.
The situation was seized by Wall
street spectators and as the rate cut
ting and useless railroad construction
went on. the bears reaped a rich harvest
in the great fall in stock values. Their
campaign put stop to the Vanderbilt
dividends. and incidentally put even the
great Jay Gould temporarily in a posi-
tion In which he was not able to respond
to the calls of his bank. The bears pre-
tended that A. ]. Cassatt was to be
made president of the West Shore.
At the height Of the contest. when It
seemed as II there was to be a COM
plete wiping out Of railroad values in
Wall street, and the Vandefbilts were
energetically pushing their new lines in
Pennsylvania, P ierpont Morgan ap-
peared one day at the old Pennsylvania
office on Fourth street, and told
President Roberts that he controlled the
New York Central and that the useless
war must cease. Mr.. Roberts was OF
the same opinion and soon after, in
connection with other trunk line mag
mates, the matter was arranged. 1t
was agreed that the Vanderbilts should
take the West Shore and the Pennsyl-
vania should obtain possession of the
Beech Creek and the South Pennsylva-
mia and that hostilities should cease.
Taken Into the Courts.
These acquisitions, tremendous in
those days. excited public interest 80
far that the deal was taken into the
courts and successfully contested. A
decision was finally reached which pre-
vented its being carried into execution.
Under the terms of the agreement the
Pennsylvania railroad was to buy the
Southern Pennsylvania for $4,5OO, 900,
and the Beech Creek road was to be
leased to the Northern Central. After
long litigation the court refused to
allow either of these contracts to be ex-
ecuted. In the meantime. however,
more harmonious relations were
brought about at the inception of the
deal which resulted in a much better
state of affairs in the railroad world
and in a peace between the Wander
5llts and the Pennsylvania which to
this day has never seriously been
broken. The Vanderbilts kept the
Beech Creek road. stopped the con-
struction Of the Southern Pennsyl-
vania and now all that is left of the
latter great project has fallen into the
hands Of the Pennsylvania railroad.