The sun. [volume] (New York [N.Y.]) 1833-1916, 1897-06-06
AN OHIO QUEST FOR FUNDS.
NOW 4 NEW YORKER SAVED Hen
CANAL PROJECT IN 1890.

Eiearar Lord'a stroke or Ge.i-s by which,
with the Aid or GOV. ne witt Clinton ana
John Jacob Astor. He Established the Creole
OF ohio ana Procured Needed Money.
There arc scores OF sons of Ohio In New
York" said a veteran New Yorker. land they
arc not backward on any occasion In exploiting
the Buckeye States greatness and tho Incl.
dental reflection of II on themselves: but I
wouldn't be afraid to bot the price OF oven such
a dinner MS the ohio Society has shown often
capacity for eating, that there isn't n single son
OF Ohio, either In New York or elsewhere. that
knows how n son OF New York estab-
lishcd the credit Of their state, made
II possible for her to complete n great
public We rk, and at tho same time saved two of
as eminent sons rs Ohio ever had from going
homo in humiliation and with futures anything
but bright. 1t happened n good while ago. and
l only know II through hearing my father tell
about Il. He was q confidential clerk for the
man who did all this for Ohio. and there can be
no question about the authenticity OF the story.
1t is an unwritten chapter in the financial and
political history OF tho country.
The Eric Canal was completed in 1925. and
as an auxiliary to and an extension OF this great
work the state Of Ohio resolved to construct q
canal across her own territory from Portsmouth.
on the Ohio River. to Cleveland. on Lake Erie.
The State was young and absolutely without
credit. Eastern merchants and capitalists. and
especially those of New York. had lost heavily
BY the wildcat methods of business prevalent
among their customers and debtors in Ohio,
and they were not disposed to look with much
favor on any proposition coming from that State
which involved tho investment Of money. But
to build the proposed canal money was neccs-
sary, and Now York was the only place where
there could be any hope OF raising IT,.
1.-TWO of the then most prominent men ofOhio.
cx.Gov. Brown and Gov. Morrow, we're sent to
this city as Commissioners to negotiate the de-
sired loan. Elcazar Lord was then perhaps ono
of the most conspicuous among the progressive
capitalists and fnancicrs of tho city. and tho
Commissioners appealed to him for aid. Mr..
Lord had been nm early and enthusiastic advo-
cate Of the Eric Canal. and was much in adj
vance Of the time on the subject Of internal i'm
provCmcnts, and he strongly commended the
project of the Ohio Canal to investors; but mono
would touch Ohio security. Wall street scorned
1t. The Commissioners werc discouraged at their
failure to raise money on the credit Of their
State. Then Lord used his influence with his
brother Rufus L., John Rathbone, Jr.. and Rus
sell II. Ncvins. men whose memories are still
green among the old merchants OF New York.
They agreed to take with him $3.50 600 of the
Ohio canal stock at 30. and hold it at par until
the balance of the loan. " ,o00.O0O. should be
still untakcn. Again the Ohio Commissioners
in despair sought aid from Eleazar Lord, but the
ala en hS h9d slrssdiy t ss HEM { sad h sis i S5sn s so5r Ss
was unable TO give further help.
Then, exclaimed Gov; Morrow in deepest
The sympathics Of Nj. Lord were profoundly
touched. He knew the Importance of the Ohio
project both TO the State and country. He knew
the unfavorable effect their return 10 Ohio with
simply a disastrous failure to report, would haye
sioncrs. He pondered over the matter a while,
and then left his office, telling his visitors 10
In 1896 De Wit, Clinton was at the zenith of
his power and influence in New York State. But
the Presidency. Tie was then Governor OF tho
Empire State. The Erie Canal had Just BEEN
ardent advocate had predicted, and the great
work was everywhere associated with his name.
Canal Ca SIs so GstPnE a'G not only because n"se" Of the fns i DR,1
ence it would have on the progress and welfare
IN iad sae snnntFy Of oh his " idsas ee oe infc \. w9q imp Se; sn
ments, and further spread his fame through tho
land. Elenzar Lord knew Clinton intimately.
"John ia Jacob AstSF Ct that tt. time e. had a claim
s asS its seltIement fav;srabIy to himself. and
he depended on De Witt Clinton to further such
Eeasaff Lord ord 1t WAS While j he was Wss ponderlas
over the dilemma in which the Ohio Commits
sioners and their State were placed by the lack
Of CONFIDENCE in them among, capitalists, thet
financial interests suggested themselves 10 him
as a combination that might be brought into
play for the saving of the Commissioners and
Canal: GOV. Clinton was then in the city at the
City Hall. Mr.. Aston had arrived in town from
Europe only n few days before. MI. Lord went
at once and had an audience with the Governor.
Placing the situation before him in al its bear
ings on Clinton's prospects and .Astor's interests,
"'You will do well. I think, Governor. to cal
on Mr.. Astor at once and ask him to either take
the Ohio State loan or give such assurances that
will warrant me in saying to such bankers asI
may think best TO take into my confidence that
he will subscribe for and take the loan, provided
others do not outhid him for it,
Endorsement OF his theories. Ohio had votes TO
give. Sclf.intcrest as well as patriotism APP
pealed to him in the affair. So Gov. Clinton ac-
guessed in Mr.. Lords view OF the situation. He
who lived then where the Aston House now
stands. His arguments had such effect with the
millionaire that in a short time Mr.. Lord was
able to say to several bankers, on his way back
the entire Ohio state loan: That gave to the
previously discredited security an instant value.
and capitalists We'd SO with each other in hids
ding for the loan that more than the amount of
or the loan Mr.. Aston took SC0o.oo0. In the
course OF a few, years the stock was paying 20
per cent. on the investment.
by this stroke of genius EloaZar Lord in q
the building OF the canal. The Ohio Legislature
passed a vote Of thanks to him, Gov. Clinton.
and John Rathbone. Jr., and the State made
them its guests OF honor at tho breaking OF
ney from Cleveland to the Ohio River was like
n triumplal march-and III bet there isn't a
son of Ohio in New York that ever heard of H..
ElcaZar a few years later became the founder OF
and was the first President of the company"