My Memories of Eighty Years [96]
I delivered argumentative addresses against them. The discussions converted me, and I became convinced of their necessity. The rapidly growing importance of railway transportation had created the public opinion that railway management should be under the control and supervision of some public body; that all passengers or shippers, or those whose land was taken for construction and development, should have an appeal from the decision of the railway managers to the government through a government commission.
As soon as I was convinced that commissions were necessary for the protection of both the public and the railroads, I presented this view to Mr. Vanderbilt. The idea was contrary to his education, training, and opinion. It seemed to me that it was either a commission or government ownership, and that the commission, if strengthened as a judicial body, would be as much of a protection to the bond and stock holders and the investing public as to the general public and the employees. Mr. Vanderbilt, always open-minded, adopted this view and supported the commission system and favored legislation in its behalf.
In 1883 Mr. Vanderbilt decided, on account of illness, to retire from the presidency, and Mr. James H. Rutter was elected his successor. Mr. Rutter was the ablest freight manager in the country, but his health gave way under the exactions of executive duties, and I acted largely for him during his years of service. He died early in 1885, and I was elected president.
The war with the West Shore had been on for several years, with disastrous results to both companies. The Ontario and Western, which had large terminal facilities near Jersey City on the west side of the Hudson, ran for fifty miles along the river before turning into the interior. At its reorganization it had ten millions of cash in the treasury. With this as a basis, its directors decided to organize a new railroad, to be called the West Shore, and parallel the New York Central through its entire length to Buffalo. As the New York Central efficiently served this whole territory, the only business the West Shore could get must be taken away from the Central. To attract this business it offered at all stations lower rates. To retain and hold its business the New York Central met those rates at all points so that financially the West Shore went into the hands of a receiver.
The New York Central was sustained because of its superior facilities and connections and established roadway and equipment. But all new and necessary construction was abandoned, maintenance was neglected, and equipment run down under forced reduction of expenses.
I had very friendly personal relations with the managers and officers of the West Shore, and immediately presented to them a plan for the absorption of their line, instead of continuing the struggle until absolute exhaustion. Mr. Vanderbilt approved of the plan, as did the financial interests represented by Mr. Pierpont Morgan.
By the reorganization and consolidation of the two companies the New York Central began gradually to establish its efficiency and to work on necessary improvements. As evidence of the growth of the railway business of the country, the New York Central proper has added since the reorganization an enormous amount of increased trackage, and has practically rebuilt, as a necessary second line, the West Shore and used fully its very large terminal facilities on the Jersey side of the Hudson.
During his active life Mr. Vanderbilt was very often importuned to buy a New York daily newspaper. He was personally bitterly assailed and his property put in peril by attacks in the press. He always rejected the proposition to buy one. "If," he said, "I owned a newspaper, I would have all the others united in attacking me, and they would ruin me, but by being utterly out of the journalistic field, I find that taking the press as a whole I am fairly well treated. I do not believe any great interest dealing with the public can afford to have an organ."
Colonel Scott, of the Pennsylvania,
As soon as I was convinced that commissions were necessary for the protection of both the public and the railroads, I presented this view to Mr. Vanderbilt. The idea was contrary to his education, training, and opinion. It seemed to me that it was either a commission or government ownership, and that the commission, if strengthened as a judicial body, would be as much of a protection to the bond and stock holders and the investing public as to the general public and the employees. Mr. Vanderbilt, always open-minded, adopted this view and supported the commission system and favored legislation in its behalf.
In 1883 Mr. Vanderbilt decided, on account of illness, to retire from the presidency, and Mr. James H. Rutter was elected his successor. Mr. Rutter was the ablest freight manager in the country, but his health gave way under the exactions of executive duties, and I acted largely for him during his years of service. He died early in 1885, and I was elected president.
The war with the West Shore had been on for several years, with disastrous results to both companies. The Ontario and Western, which had large terminal facilities near Jersey City on the west side of the Hudson, ran for fifty miles along the river before turning into the interior. At its reorganization it had ten millions of cash in the treasury. With this as a basis, its directors decided to organize a new railroad, to be called the West Shore, and parallel the New York Central through its entire length to Buffalo. As the New York Central efficiently served this whole territory, the only business the West Shore could get must be taken away from the Central. To attract this business it offered at all stations lower rates. To retain and hold its business the New York Central met those rates at all points so that financially the West Shore went into the hands of a receiver.
The New York Central was sustained because of its superior facilities and connections and established roadway and equipment. But all new and necessary construction was abandoned, maintenance was neglected, and equipment run down under forced reduction of expenses.
I had very friendly personal relations with the managers and officers of the West Shore, and immediately presented to them a plan for the absorption of their line, instead of continuing the struggle until absolute exhaustion. Mr. Vanderbilt approved of the plan, as did the financial interests represented by Mr. Pierpont Morgan.
By the reorganization and consolidation of the two companies the New York Central began gradually to establish its efficiency and to work on necessary improvements. As evidence of the growth of the railway business of the country, the New York Central proper has added since the reorganization an enormous amount of increased trackage, and has practically rebuilt, as a necessary second line, the West Shore and used fully its very large terminal facilities on the Jersey side of the Hudson.
During his active life Mr. Vanderbilt was very often importuned to buy a New York daily newspaper. He was personally bitterly assailed and his property put in peril by attacks in the press. He always rejected the proposition to buy one. "If," he said, "I owned a newspaper, I would have all the others united in attacking me, and they would ruin me, but by being utterly out of the journalistic field, I find that taking the press as a whole I am fairly well treated. I do not believe any great interest dealing with the public can afford to have an organ."
Colonel Scott, of the Pennsylvania,