The Washington herald., 1907-03-31

Leod became temporarily one of the most /
prominent men in the country. The Me-
LeOd star set several years ago, however /
and ne now IS little more than memory /
in the world of high finance and trans I
portation.
Mcleod began his railroad career, after I
receiving a common school education, as /
rOdman. before he was twenty-0ne. on /
the Northern Pacific Railroad. while it
was a-buiiding. One day. when IN the
West COTbin. chiefly remembered from
his connection with the Long Island. now |
a Pennsylvania property met young Nc /
Le0d in a Northern Pacific eating house. /
Mcleod talked so well about the railroad |
business in general that CoTbin asked |
him to transfer his activities TO the East |
and become manager of the Utica. Ithaca /
and Elmira Railroad This suited Nc
Leod and he established himself at FL
mira, where he made lot OF friends and /
did a lot of hard work. The road is now
an unimpOrtant branch Of the Lehigh /
Valley system.
Corbin liked McLeOd's work so well that
when elected president of the Philadelphia
and Reading he mede the young man
presidents assistant This was in 1886 |
The general manager being away from
his post, Mcleod was really acting mana
ger; after two years he was raised TO
the vice presidency. Corbin's retirement
and McLeOd's advancement to the head
ship Of the railroad and allied properties
took place in 1890.
Mcleod at once began TO cut ice in
huge blocks He became a favorlte with
Russell Sage, the Goulds, and the Van
derbilts, as well as with Corbin. Appar-
entity he made the Reading pay he not
only brought about the lease Of the Le-
high and the Central Of New Jersey. but
he got the Central New England Railroad
under Reading control and connected the
two systems by way of the Poughkeepsle
! Bridge. He also made direct deal with
the Boston and Maine. and an Indirect
one with the New York and New England
! for the transportation of the sO-cailed
coal combines" product. He connected
the New England systems with his Penn
| sylvania systems by arrangements with
short lines via the POughkeepsie bridge
over the HUDSON, thus cutting cdt water
transportation at New York 3nd on Long
/ Island Sound
/ Through the New Jersey Central he got
Reading TO New York. There the Reading
and the Long Island railroads were to be
/ connected by system of tunnels under
the East and North rivers somewhat sim
/ liar TO that which the Pennsylvania Rail
road the New York Rapid Transit Com
mission, and the "McAd0o" corporations
Iare now completing. Corbin had the plans
for his projected tunnels all made: they
/ fitted in exactly with his schemes 10 con-
struct deep water harbor at the eastern
end OF Long Island. whence steamers
should sail two or three times a week for
Europe. and cut the transatlantic voyage
/ by two or three days.
| BY q combination between the Jersey
! Central. the Reading. and the Baltimore
and Ohio, the famous Royal Blue passen-
ger trains between New York and Wash
iington were established. Through the Le-
/ highs lines TO Buffalo Western connec-
ton was made. There was open talk that
/ the Baltimore and Ohio might eventually
be swallowed by the Reading. In time il
was to be the greatest link IN a trunk line
extending from the Middle West 10 Port
4 land. Ne. and TO MOntauk Point the
most easterly end Of Long Island
This great trunk line was TO reach sew
eral of the big Western centers Of popu-
ilation. and practically all the great cities
/ OF the Atlantic seabOard-W Washington.
/ Baltimore. Philadelphia. New York and
1 Boston. MCLeOd was made president Of
the New York and New England as we'll
as of the Boston and Maine
/ In those days Mcleod was a railroad
/ king. Neither Hill nor Hartman is better
known TO the public to-day than Mcleod
was then. His portraits were in all the
/ periodicals, his name was one 10 conjure
with IN Wall Street and. according 10 a
ivivacious chronicIer Of the day. he lived
lsumptuously IN a swell Philadelphia
hotel"
Downfall of Mcleod.
This was the situation in 1892 II can
readily be seen that # was not altogether
a pleasing one in certain quarters. The
success OF 50 gigantic a new trunk line
scheme might unjoint more than one other
/ big scheme engineered by men quite as
clever as Mcleod and with more money
at their command. Anyway, the bottom
dropped out Of all his plans just when he
was supposed to be on the crest of the
wave.
Not long before he had issued state
ment which made it appear that Reading
was rolling in wealth, and that it would
be no trouble AT all TO pay the full per
leent-about S3e00.000 a year-On all the
three series of income bonds which had
been issued. This statement put Reading
stock away up. Spectators and others
bought freely, and there was plenty of
talk about big money made in Reading.
There was plenty of talk. too, that
Reading was in peril. Under the Mcleod
]
the 'coal combine" had already put up
the price of coal repeatedly when he
needed money; the newspapers said he
would have to boost prices a few more
nOtches in order to see himself through.
Naturally this sort Of talk, whether justi-
ned or not made Mcleod decidedly uR-
popular. and may have hastened his
downfall.
| But its direct cause always has been
/ believed 10 be "a suddenly developed an
tagonism on the part of Drexel, Morgan
& Co. who had been in complete SYM
pathy with him This was followed by
a general and unexpected withdrawal Of
credits, and Mcleod mad TO prepare to
shut up shop.
In order 10 perfect his trunk line scheme
he had tried, among other things, to Sc
cure the Old Colony Railroad in Massa-
chusctts, now a part of the New York
New Haven and Hartford. for one of his
links. In this ne bucked up hard against
Drexel. Morgan & Co. As if by magic all
his money sources were dried up. His
cali loans We're promptly terminated
Banks which had hitherto been ready 10
llend TO him were no longer accommO-
dating There even was trouble In get
ting cash enoagh for the pay roll, let
alone carrying out the big plans for fur
ther expansion or meeting the interest
charges. panic ensued and Reading
dropped twenty points over night. Three
receivers-McLeod himself, Z. p. Wilbur
and Judge PaxsOn-Were appointed
On April 5. 1888. Mcleod had to resign
the presidency and in February 1894 he
was being questioned severely as a wit
ness before an examiner into his meth
DDS, who had been appointed by the
courts Isaac L. Rice was the leading