TRANSCRIBER'S NOTE

Fractions have been left in the form a/b except for ¼ ½ ¾. A dozen or so occurrences of 'nn a-b' have been changed to 'nn-a/b', mainly on pages 27-40, for consistency.

Footnote anchors in a table are of the form (a) and the corresponding Footnote is placed at the bottom of that table. Other Footnote anchors are of the form [A] with placement at the end of that Chapter.

Obvious typographical errors and punctuation errors have been corrected after careful comparison with other occurrences within the text and consultation of external sources.

More detail can be found at the [end of the book].

The Railway Library
1909

A COLLECTION OF NOTEWORTHY CHAPTERS, ADDRESSES AND PAPERS RELATING TO RAILWAYS, MOSTLY PUBLISHED DURING THE YEAR.

COMPILED AND EDITED BY

SLASON THOMPSON

Manager of the Bureau of Railway News
and Statistics
Chicago

Chicago

The Gunthorp-Warren Printing Co
1910

[TABLE OF CONTENTS]

[INTRODUCTION]

In the following pages is presented a number of the more timely papers and addresses of the year 1909 on the present railway situation, together with chapters from two books of current interest on the same subject. As the object of the compilation has been to present in permanent and accessible form information in regard to American railways worthy of more than the ephemeral life of newspaper or pamphlet publication, it has been thought well to accompany the messages of today with a brief glance at the conditions on this continent before the days of railways. Happily for this purpose the first two chapters of Messrs. Cleveland and Powell's "Railroad Promotion and Capitalization in the United States," fresh from the press, afforded the very background needed, and the first report of the engineer of the Pennsylvania Railroad provided the glasses through which the reader can look forward from the small beginnings to what is now known as the greatest railway system on the globe.

After this study of conditions as they were, and of the opportunities that invited the railway pioneers of 1848, it is instructive to read the utterances of the latest of our empire builders, whose foresight and indomitable will anticipated the development of our Pacific Northwest with railway facilities that already lag behind the necessities of its amazing growth.

Of the other addresses and papers it is unnecessary to say more than that they reflect the prevailing sentiments of all thoughtful railway officials respecting conditions of the gravest import to the great industry upon which the entire fabric of our national prosperity and well-being depends. Only the shallowest student of our social, economic and political system can view the persistent attacks upon the American system of transportation without serious alarm for the results. This alarm is the prevailing note of these papers and it comes from men who are at the helm and who see the financial breakers upon which the fierce blasts of political exigency are driving the railways.

The papers by Sir George S. Gibbs and Mr. A. M. Acworth, the leading authorities on British railways, discuss the alternative to wisely regulated railways—nationalization of railways. With a continuance of unwise and burdensome regulation of railways, which strips responsibility of all discretion, nationalization is inevitable.

The Bureau's statistics of American railways for the year ending June 30, 1909, is included in The Railway Library because it affords the latest data not only as to the railways of the United States but for the world.

Acknowledgments are made to the authors and publishers of the various papers, and especially to the publishers of the two works from which important chapters have been extracted by their courteous permission, as well as that of their authors.

If this publication fulfils the purpose of its compilation, it will be succeeded by annual volumes of like character under the same title.

S. T.

Chicago, June 1, 1910.

[PRE-RAILWAY ERA IN AMERICA]

From Chapters I and II of "Railroad Promotion and Capitalization in the United States," by F. A. Cleveland and E. W. Powell. Longmans, Green & Co., 1909.

(By permission of the authors.)

Inland transportation, as we know it, is the product of the last century. It had its beginning in the industrial revolution. In England at the close of the eighteenth century the manor as a productive agency had been supplanted by a system of domestic production, and this in turn was giving place to the factory. The combined influences of increasing capital and invention had operated to centralize the industrial population in the towns. Ocean commerce was comparatively well developed, and manufacture was fast being established upon a modern basis; but inland transportation was still encumbered by such primitive methods as to make difficult the utilization of the resources of the interior. A century and a half before, Lord Bacon had called attention to the three great elements necessary to make a nation great and prosperous—"a fertile soil, busy workshops, and easy conveyance of men and things from one place to another,"—but the significance of this reflection was not appreciated until after the middle of the eighteenth century. The controlling force of custom—social inertia—had stood in the way of progress.

IN ENGLAND.

Until about the opening of the nineteenth century the principal manufacturing towns of Great Britain were situated on or near the coast; for in the inland country goods were still carried on the backs of men, or hauled in carts over heavy roads. Said Lardner: "The internal transport of goods in England was performed by wagon, and was not only intolerably slow, but so expensive as to exclude every object except manufactured articles, and such as, being of light weight and small bulk in proportion to their value, would allow of a high rate of transport. Thus the charge for carriage by wagon from London to Leeds was at the rate of £13 ($63.31) a ton, being 13½d. (27 cents) per ton per mile. Between Liverpool and Manchester it was 40s. ($9.60) a ton, or 15d. (30 cents) per ton per mile. Heavy articles, such as coal and other materials, could only be available for commerce where their position favored transport by sea, and, consequently, many of the richest districts of the kingdom remained unproductive, awaiting the tardy advancement of the art of transport."

IN AMERICA.

Before the Revolution the American colonists lived in almost complete isolation. Travel by land was limited, for water communication presented fewer obstacles to progress. Population was arranged along the seaboard, or in isolated groups a short distance inland. Living narrow, self-centered lives, each community developed a distinct dialect and characteristic customs and dress. Social activities were limited to going to mill, market and church, or exchanging friendly calls; traveling on foot or on horseback along wooded trails. Even between seacoast towns there was little interchange of products or population; and a citizen of one colony going to another was at once struck with the many local peculiarities. It was less than twenty years before the Revolutionary war when the first stage line was opened between New York and Philadelphia, and three days were then required for a single trip. It was ten years later when the first stage line was established between Philadelphia and Baltimore.

METHODS OF TRAVEL AND TRANSPORT.

Between towns of considerable size there were country roads over which vehicles could pass when the weather would permit. The stage coach, which was the only public land conveyance, plied along the coast and between a few inland centers, but the coaches of that day were rude boxes swung on wheels by leathern straps instead of springs, with seats for a dozen or more and accommodations for a limited amount of baggage. The rate of travel was from two to six miles an hour, according to the condition of the roads and the importance of the route. On the farm the mud-boat or stone sledge was in common use, and at times it was even employed to carry produce to local markets. In more progressive communities two-wheeled carts and wagons were to be found. The best of roads, however, were nothing but "mud roads"; and the wagons, commonly of the linchpin type, were clumsy and awkward. Some of the more primitive wagons had wheels made of cross sections of trees, trimmed and centered to roll on axles of wood. Those who traveled had little thought of time; companionship found expression in story-telling, gossip and tippling; and an emergency which required all to get out and "take a wheel" only added spice to the trip.

We have the following description of the roads about Philadelphia, the metropolis and commercial center of the New World: "On the best lines of communication the ruts were deep, the descents precipitous. * * * Near the great cities the state of the roads was so bad as to render all approach difficult and dangerous. Out of Philadelphia a quagmire of black mud covered a long stretch of road near the village of Rising Sun. There horses were often seen floundering in the mud up to their bellies. On the York road, long lines of wagons were every day to be met with, drawn up near Logan's hill, while the wagoners unhitched their teams, to assist each other in pulling through the mire. At some places, stakes were set up to warn teams of the quicksand pits; at others, the fences were pulled down, and a new road made through the fields." Transportation facilities were either entirely lacking or such as to make travel both expensive and hazardous. It is difficult to realize that as late as 1780 the roads over a large part of Pennsylvania were narrow paths which had been made through the woods by Indians and traders.

ABSENCE OF ROADS IN THE INTERIOR.

The isolation of interior settlements finds apt illustration in the Wyoming valley. This rich region along the Susquehanna had been until 1786 almost completely cut off from the outer world. A small colony had moved in from the East, and taking color of title from Connecticut, disclaimed the sovereignty of the Quaker proprietary. War consequently broke out between this isolated settlement and the Pennsylvania government. Several military expeditions were sent out to reduce the "Yankees" to submission; but the absence of roads and the necessity of carrying provisions on horseback left the determined pioneers masters of the situation when the larger issue, the Revolutionary war, suspended local strife. The spring after Burgoyne's surrender at Saratoga the settlers of the Wyoming valley learned that a detachment of Johnson's "Royal Greens" and Butler's "Rangers," with a company of Tories, had allied themselves with the Seneca Indians, and were preparing to descend upon the valley. A courier was despatched to congress, and appeals for aid were made to the neighboring states, but the isolation which had before served for defense now brought disaster. With the June freshet the British allies came down from Tioga, and nothing but ruins were left to mark the scene. One of the reasons urged for the removal of the state capitol from Philadelphia to Harrisburg in 1799 was the cost of travel, which bore heavily upon legislators from the interior.

THE ROADS OF NEW ENGLAND.

The early settlers of Springfield, Massachusetts, were obliged to send their household goods from Roxbury around by way of Long Island Sound and the Connecticut river, but they themselves were able to proceed on foot along an Indian trail. In time this trail was widened, and as the "Bay path" and the "Boston road" occupied an important place among the transportation routes of the colonies. It was, however, little more than a narrow wagon path until after the Revolution, and so indistinct was it that travelers frequently wandered off the route. A curious stone post marks the place near the national armory at Springfield, where in 1763 a western Massachusetts merchant lost his way, and set up a guide for other travelers. Even as late as 1795 there were but two stages between Boston and New York, and a week was required for the journey. John Bernard, the English actor, thus described a typical New England road in 1797: "Though far better than in any other quarter of the Union, the frequent jolts and plunges of the vehicle brought it into sad comparison with the bowling-greens of England. Very often we surprised a family of pigs taking a bath in a gully of sufficient compass to admit the coach. As often, such chasms were filled with piles of stones that, at a distance, looked like Indian tumuli. The driver's skill in steering was eminent. I found there were two evils to be dreaded in New England traveling—a clayey soil in wet weather, which, unqualified with gravel, made the road a canal; and a sandy one in summer, which might emphatically be called an enormous insect preserve." Such testimony makes real the difficulties which attended travel over the important routes, and enables one to understand how it could have required Washington nearly two weeks to make the trip from Philadelphia to Cambridge at the outbreak of the Revolution.

AFTER THE REVOLUTIONARY WAR.

Before the Revolution the subject of road improvement was seldom considered in public assemblies, and the early laws contain few provisions even for common roads. Those who proposed measures for general improvement met with little encouragement. As early as 1690 William Penn suggested the practicability of a waterway from the Schuylkill to the Susquehanna. In 1762 David Rittenhouse of Philadelphia, and Provost Smith of the University of Pennsylvania, proposed a similar project, and made surveys of the route by the Swatara and the Tulpehocken; in 1769 the American Philosophical Society interested itself in a canal survey between Chesapeake Bay and the Delaware, recommending the enterprise to the public. In 1768 Governor Moore of New York projected a canal around the Canajoharie Falls of the Mohawk. But to none of these suggestions was there any active response, for the time was not ripe for such undertakings.

Contributing to the road-making impulse immediately after the war of independence was a newly awakened community interest. At the time of the adoption of the constitution there were two distinct classes in the United States: a highly localized class of the seaboard and of the inland trade routes, and a widely distributed agricultural class. American commerce was largely confined to American products. England, France and Holland monopolized the trade of their colonies, and in other ways favored their own merchantmen in foreign trade. Such being the condition, our commercial advantage lay in the development of our own resources. The settlement of the Middle Atlantic states and of the valleys of the interior only served to strengthen the interdependence of the people, who found a common interest in internal improvements. To the agriculturist, cheap conveyance to market was a prerequisite to profitable industry. To the commercial class on the seaboard and on the leading trade routes, inland improvement was at that time no less important.

FIRST ERA OF ROAD MAKING.

There was a notable change in the popular attitude toward road making after the war, and all public-spirited men now saw in better means of communication an instrument for the establishing of American supremacy over the western continent. Legislatures made generous appropriations for highways. An active migration set in from New York and northern Pennsylvania to the West. In 1738 the first regular mail service was established between Albany and Schenectady. In 1793 the horse path from Albany to the Connecticut valley was widened to a wagon road. Like activity in road making was shown throughout southern and western New York, middle Pennsylvania, Maryland and Virginia.

In 1785 Pennsylvania appropriated $10,000 to lay out a road from a point near the mouth of the Juanita to Pittsburgh. In 1786 an act was passed appropriating $1,500 "to view and open a road from Lehigh Water Gap to Wyoming," which was the first road into that valley from the Delaware. In 1787 another road was authorized between the Susquehanna and the Delaware. Activity in opening communication with the interior increased until by 1791 the movement had assumed proportions to be styled a "mania." By a single act over $150,000 was appropriated for the improvement of eleven rivers and over a score of roads in different parts of the state. Other acts were passed at the same session, granting charters and appropriations for various transportation enterprises. New York in 1797 authorized the raising by lotteries of $45,000 for the improvement of various roads throughout the state. As if by common impulse, all the states now became interested in road improvement, and congress was asked to aid by this means the opening up of the resources of the interior.

BEGINNING OF THE CANALS AND PIKES.

The low cost of water transportation had early directed popular attention to canals as a means of overcoming obstructions in natural water courses, thereby serving the needs of the inland population, and also providing the means for diverting trade from one seaport to another. The Revolutionary war was hardly over when Charles Carroll organized a company to open a canal about the obstructions in the lower Susquehanna.

Those who took the most active interest in canal construction at this time were men who, like Washington, viewed the future with patriotic interest. This interest, however, was one which did not appeal to the private investor. An enterprise based upon such public consideration required government support.

This period also marked the beginning of turnpike construction. The first turnpike road in this country of which we have a record was built between Alexandria and the Lower Shenandoah. It was begun in 1785-6, and its completion was the cause of great satisfaction to Jefferson and other public-spirited men of Virginia, who had labored in the cause of a "broader national life." Alexandria was at that time an important competitor of the other seaboard cities. Across the Maryland peninsula on the Chesapeake lay Baltimore, a commercial rival of both Alexandria and Philadelphia. In 1787 the grand jury sitting at Baltimore called attention to the deplorable condition of the roads leading to that city, and urged the authorities to take immediate action. As a result, the county government ordered the old Frederick, Reistertown and York roads turnpiked at public expense. To the west of Philadelphia lay the Susquehanna valley. The natural outlet of this growing region was down the Chesapeake to Baltimore. To attract traffic to the Quaker City a company was organized in Philadelphia in 1792 to build the Lancaster pike, which was the first turnpike in this country built by voluntary subscription.

EFFECT OF EUROPEAN WARS ON AMERICAN SITUATION.

The outbreak of the European wars in 1793 was followed by a marked change in the American industrial situation. The immediate effect upon the grain growing of the West was to increase the demand for wheat. Prices of cereals rose to twice their former height. The average price of flour during the seven years from 1785 to 1793 had been about $5.40 a barrel; the average price from 1793 to 1806 (the two years of peace, 1802 and 1803, excluded) was $9.12. Such was the inducement to grain growing during this period.

Back from the North Atlantic coast radiated rich valleys—large tracts of agricultural lands which were well adapted to grain growing. A rush set in for the unclaimed resources of New York, Pennsylvania and Maryland, and for a time the tide of migration moved to the westward along the Ohio, and the border of the Great Lakes. Those who cultivated lands near the coast shared in the increased prosperity due to the European disturbance, but unless they could obtain better means of transportation, those who had located inland soon found that they could profit little. Grain as compared with cotton and tobacco was a low priced product. At best, the cost of transportation was ten dollars a ton for each hundred-mile haul; in many places it was much higher.

AMERICANS TURN TO HOME MARKETS.

Before 1807 the country had come to be divided into three sections: the commercial, shipbuilding East, the cotton and tobacco exporting South, and the isolated grain growing interior, linked with which was a languishing manufacturing interest on or near the seaboard. Beyond a limited range the producing proportion of our population could not participate in the profits of the European trade. The grain growers demanded a market, and the manufacturers saw their profits swept away by an influx of foreign goods. These were the interests which suffered from the diversion of capital to shipbuilding and foreign trade. Both looked to internal improvements as a solution of their troubles; their only hope was in a home market—in better roads, and in the development of the resources about them.

In the United States agriculturist and manufacturer turned to the national government for relief. But so long as the administration remained in the hands of the foreign trade party, the way was blocked to internal improvements. During the first three administrations after the adoption of the constitution, the individualistic republicans had been unable to gain control of the government; but with the admission of Kentucky, Tennessee and Ohio and the settlement of the parts of the sea coast states remote from transportation facilities, the anti-commercial constituency gained the balance of power. It was to the voters of these new regions that Jefferson owed his success. It was to satisfy the demands of the West for an outlet to the gulf that Louisiana was purchased. To satisfy the insistent demand for internal improvements the national government also built the Cumberland road, and contributed to many other transportation projects. It was the open hostility of the West and South toward the commercial East which forced the embargo, and broke down the domination of the seaboard interests in national affairs.

RIVER TRAFFIC DEVELOPED BY PRIVATE CAPITAL.

The inland routes which required the least capital to utilize in a primitive way were the rivers. Here the chief obstacle was the current. In the early nineteenth century long lines of rafts, flat-boats and "arks" might be seen floating down the Connecticut, the Hudson, the Susquehanna and the Potomac. There were 2,800 miles of rivers tributary to the Atlantic seaboard which were navigable, or which needed only to be cleared of snags and rocks to render them available for use by small craft. It was estimated that on the eastern slope there were about 25,000 miles of streams which might be utilized by the construction of locks and canals. In the Mississippi valley there were 14,000 miles of navigable rivers, and about 75,000 more which were considered possibilities. But with a three or four-mile current it was impracticable to row, pole or warp a boat and cargo upstream for a long distance. The result was that along those streams which nature had provided as highways the producer first built his boat out of the timbers of the forest, then loaded it with the produce of his farm or mill, and floated down stream to market. Upon reaching his destination, he abandoned his craft and returned by stage or on foot. This was indeed an expensive process—expensive in time, expensive in funds and expensive in human effort. It was an expense of production, however, and one which did not require capitalization.

It was not until 1807 that the steamboat became a commercial success. At this time New York was becoming well settled, and as the Hudson was a natural highway a boat which could drive against wind and stream had every promise of success. Robert Fulton, who had been interested in the problem of steam navigation since 1802, returned from Europe after several years of investigation, and brought back one of Watt's engines. He obtained the financial co-operation of Chancellor Livingston, and together they obtained a monopoly of steam navigation in New York waters. A boat was fitted with the Watt engine, and a successful trip was made from New York to Albany and return. The route yielded large profits from the start, and other boats were built. By 1813 six boats were doing a profitable business on the Hudson. The success of Fulton and Livingston proved attractive to others. Crowded out of New York's waters by the monopoly, John Stevens, in 1809, took a steamboat around from Hoboken into the Delaware. The Phoenix now found business so good in those waters where Fitch had failed that it was soon followed by two other boats. Soon the whole Atlantic seaboard, including the St. Lawrence, was supplied with steam craft.

But enterprise in steamboat navigation was not confined to the coast. Business opportunities in the Mississippi valley attracted the attention of one Nicholas Roosevelt, who proposed to Fulton and Livingston that he would make a trip to New Orleans to survey the prospects for an inland water route, with the understanding that they should finance a steamboat line if his report was favorable. So favorable was it that he was placed in charge of the construction of a river boat at Pittsburg, and in 1811 the New Orleans made her maiden trip down the Mississippi. Thereafter Roosevelt's boat took a regular route between New Orleans and Natchez. Other boats were added, but it was not until 1815 that a voyage was made upstream from New Orleans to Louisville and Cincinnati. After assisting Jackson in the campaign about New Orleans, the Enterprise, taking advantage of high water, steamed to Louisville in twenty-five days. In 1817 the Washington accomplished the same feat while the river was within her banks, and the public became convinced of the practicability of upstream navigation. The same year the Shelby reduced the time to twenty days, and by 1823 fifteen days sufficed. With the success of the steamboat, the Middle West was opened to rapid communication with the gulf.

WAGON ROADS INTO THE INTERIOR.

From 1807 to 1815 two changes had a marked effect upon the national attitude toward internal improvements. Before the outbreak of the European wars manufactures had made some progress in New England and in Pennsylvania. During the first struggle, and before the peace of Amiens, the only serious obstacle to American industry was the tendency to divert capital to wheat raising, shipbuilding and foreign trade. Prices were high, and the makers of goods found encouragement in large profits. With the cessation of hostilities American manufacturers looked to Congress for protection, for foreign goods poured into the country in such quantities and at such prices as to threaten the destruction of domestic production.

At the most, however, the manufacturing population was relatively small, but the disturbances to industry from 1815 to 1818 were such as to throw many out of employment, and to bring to the verge of bankruptcy and starvation those who had been engaged in shipbuilding and foreign trade. A great exodus to the interior was the result. In wagons, on horseback, or on foot—sometimes using handcarts, sleds and wheelbarrows to carry their provisions and light luggage—emigrants crowded the wooded paths that led to the West, where they might find conditions more favorable to independent livelihood.

All these conditions conspired to increase the depression in the East, and drive her people into agriculture and the development of the interior; while the opening of the Mississippi by the steamboat added to the attractions of the rich valleys in the Middle West. But upon his arrival in the West the newcomer found himself beyond the range of any market except New Orleans. To reach this market he "would produce or get together a quantity of corn, flour, bacon and such articles. He would build a flat-bottomed boat on the shore of some river or large creek, load his wares into it, and, awaiting the rise, with a few of his negroes to assist him, would float down to New Orleans. The voyage was long, tedious and expensive. When he arrived there he found himself in a strange city, filled with sharpers ready to take advantage of his necessities. Everybody combined against him to profit by his ignorance of business, want of friends or commercial connections, and nine times out of ten he returned a broken merchant. His journey home was performed on foot, through three or four nations of Indians inhabiting the western parts of Mississippi, Tennessee and Kentucky. He returned to a desolate farm, which had been neglected whilst he had been gone. One crop was lost by absence and another by taking it to market. This kind of business was persevered in astonishingly for several years, to the great injury and utter ruin of a great many people." It was the demand for safe transportation arising out of this situation which made Roosevelt's steamboat enterprise a success.

DEVELOPMENT OF COASTWISE COMMERCE.

The British blockade of our coast during the war of 1812 had a marked effect upon the development of inland routes of transportation, as may be seen from the following: "The interruption of the coasting trade was indeed a very serious affair. For years past that trade had given occupation to thousands of coasters and tens of thousands of sailors. The shoes made at Lynn, the Yankee notions of Connecticut, the cotton cards, the domestic cottons, the playing cards produced in New England, the flour of the Middle States, the East India goods brought in from abroad had found a ready market at Charleston, Savannah and Augusta, whence great quantities of rice and cotton were brought North. On the arrival of the British fleet this trade, no longer to be carried on in safety by water, began of necessity to be carried on by land. At first some merchants at Boston, having chartered a few wagons, despatched them with loads to Philadelphia, and even to Baltimore. This was enough. The hint was taken. A new industry sprang up, and by early summer the roads leading southward exhibited one continuous stream of huge canvas-covered wagons tugged along by double or triple teams of horses or of oxen. No distance was then too great, and hundreds of them would make their way from Salem and Boston to Augusta and Savannah. An estimate made towards the close of the year (1814) places the number of wagons thus employed at four thousand, and the number of cattle, horses and oxen at twenty thousand; nor does this seem excessive, for a traveler who drove from New York to Richmond declares that he passed two hundred and sixty wagons on the way."

THE CAPITALIZATION OF TURNPIKES.

Both overland trade and westward migration drew attention to the importance of good roads, both swelled the receipts of turnpike companies, and gave encouragement to investment of local capital in transportation improvement. By 1804 the Lancaster road had been extended to Pittsburg, and a regular stage line established which made a trip each way once a week. State governments lent every encouragement to the building of turnpike roads, even to the extent of subscribing to their stock. From contemporary writings and charter grants, it is estimated that nearly eight hundred turnpike companies were organized before the end of the war of 1812. Pennsylvania was pre-eminent in granting liberal charters, and toll rights, thereby encouraging the people of the more thickly settled districts to make such improvements for themselves. The corporations thus formed had little difficulty in obtaining capital subscriptions, whether for the construction of turnpikes or bridges, or for the operation of ferries. To the stock of these corporations several of the states subscribed in varying amounts. Although a few toll roads were constructed before that time, the turnpike movement may be said to date from the opening of the nineteenth century. Turnpikes (so called from the revolving, or turning bar, or pike which, when set across a toll road, prevented passage until charges were paid) were macadamized or otherwise improved at a cost varying from $500 to $10,000 per mile. Almost without exception they followed in a general way the old lines which had been worked out when travel on foot or on horseback was the chief method of communication, but wherever possible they were made straight, going over and not around hills and other obstacles. When the Boston and Salem turnpike was built a small but deep pond was encountered, but instead of going around the road crossed on a floating bridge. The construction of bridges and the operation of ferries were parts of this larger turnpike movement, and like the turnpikes themselves, they were usually disappointing to those who had invested with the hope of large dividends. At best, this movement did but little to supply the great need for improved transportation. To passenger service it was a great boon, in that it added much to personal comfort, though the time and cost of travel were little reduced. It required five dollars and fifty cents to pay tolls from Philadelphia to New York, besides the hotel bills and other expenses of the road. It took a week to go from Philadelphia to Pittsburg. What the country most needed—a cheap method of handling the bulky products of the interior—was not supplied. Freight was carried upon the turnpike with great difficulty and expense, and heavy goods were compelled to remain untouched on account of the high tolls.

REVIVAL OF CANAL CONSTRUCTION.

To meet this situation, canals had been proposed long before the period of turnpike building, and some surveys had been made, but because of lack of capital, construction was deferred. The earliest projects were for short cuts around rapids or falls, or between neighboring waters, but bolder plans followed. The first canal of any importance actually begun in the United States was the two-mile cut through the rocks about the South Hadley falls of the Connecticut. The Massachusetts legislature passed an act in 1792 incorporating the "Proprietors of the Locks and Canals on Connecticut River." Work was begun at once with Dutch capital, and in two years the canal was completed.

The Santee canal in South Carolina was the first large work of this kind constructed in the United States. It connected the Santee river with the Cooper river at Charleston, and it was opened in 1800. Its length was twenty-two miles, and its cost $600,000.

A much more important project was the Middlesex canal in Massachusetts, a charter for which was obtained in 1793. This canal extended from the Charles river to the Merrimac, twenty-seven miles, and was designed to attract to Boston the trade normally tributary to Portsmouth. Work was begun in 1794, and ten years later the canal was opened for traffic, though it was not entirely completed until 1808.

The successful completion of the Erie canal, which became an assured fact long before its actual accomplishment in 1825, stimulated similar projects all over the country. The local strife between trade centers, combined with the local demand for outlet, set a number of private projects in motion. Boston, Philadelphia, Baltimore and Georgetown were successfully appealed to for support for transportation routes which would enable them to compete with New York for the trade of the West. The Blackstone Canal Company, chartered by Rhode Island and Massachusetts in 1823, began the construction of a canal along the Blackstone river to connect Providence and Worcester, and this route was opened for traffic in 1828. Another New England project started at about the same time was for a canal to extend from New Haven northwards to Northampton, and on up the Connecticut valley into Vermont. Two companies were chartered for this purpose, the Farmington canal in Connecticut in 1822 and the Hampshire and Hampden canal in Massachusetts in 1823. The Farmington canal was completed in 1830; but the work on the Hampshire and Hampden project was for a time abandoned for want of funds, and the canal was not cut through to Northampton until 1835. While carrying a large traffic this canal, like the Blackstone canal, was more beneficial to the general business of the section traversed than to those who held its stock. Other private works of this period upon which large sums were expended were: The Delaware and Raritan canal, connecting Philadelphia with New York; the James River and Kanawha, an unfinished canal project in Virginia; and the Chesapeake and Ohio canal, which was not extended further west than Cumberland.

SCARCITY OF CAPITAL FOR CANALS.

On account of local needs, few canal or navigation companies had difficulty in obtaining their first subscriptions, but most of them experienced trouble in collecting assessments and in obtaining additional subscriptions. This timidity of investors, it now appears, was not without ground, for few of the private canal companies were able to bring their construction work to completion, and fewer still paid any dividends to their stockholders. The Middlesex canal was profitable until the building of a parallel line of railroad; the Montague canal, also in Massachusetts, yielded a fair return during the first twenty years that followed its completion in 1800. The Delaware and Schuylkill canal may be cited as a third exception. But it early became evident that public works of the number and magnitude required could be constructed only at national expense. As the constitution contains no direct provision for internal improvements, the subject became a party question.

From the first Congress had appropriated money for lighthouses, public piers, buoys and other aids to navigation, and about such action there had been no dispute, for it was agreed that these matters lay strictly within federal jurisdiction. From the first, also, Congress had been petitioned for appropriations for internal improvements. Most of these demands were local in character, and so were easily disposed of; but when the directors of the Chesapeake and Delaware canal asked Congress to supply the funds which they had been unable to obtain from sales of shares, the question was forced to an issue. Two facts were incontestable, the general importance of the work, and the ability of the national government to carry it on in view of the revenue surplus in the treasury.

In another way Congress had already committed itself to the support of public works. So long as the country was made up of states bordering on the Atlantic seaboard, improvements were matters of interest to all alike, but with the admission of new states in the interior, and the prospect of future accessions to the westward as the country expanded, an element of injustice seemed to enter these appropriations, which benefited the seaboard states at the expense of all. The feeling of discontent was intensified by the fact that the favored states were more thickly settled, and therefore better able to incur the expense. With the admission of Ohio, however, this was remedied by the establishment of the five per cent. land fund, and the self-interest of the seaboard was appealed to by the argument that the building of roads into the West would so stimulate sales of the public lands as to increase the national revenues.

The matter of national aid to internal improvements was again brought before Congress in 1816 by Calhoun, who presented a bill providing for the direct construction of roads and canals and the improvement of waterways out of a fund to be created by setting apart the bonus and dividends received by the government from the United States bank. This bill, which was drawn up by Clay, passed through Congress in 1817, but it was vetoed by Madison, who, though favorably disposed toward public works, had inherited from Jefferson a doubt as to the rights of Congress to participate in their construction without a constitutional amendment specifically granting the authority. And Monroe, holding the same opinion, vetoed a bill for the repair of the Cumberland road, and submitted to Congress a long statement of the principles involved in his decision. In the meantime, weary of waiting, New York had succeeded in building the Erie canal. Its success shifted the whole plan of promotion. With credit established abroad, internal improvements were taken up by the states, and for the next two decades transportation interest centers in state funding.

It was during this period of struggle for means of transportation facilities adequate to meet the demands of those whose fortunes had been cast in the remote interior that the railroad became the subject of serious economic interest.

(In subsequent chapters, Messrs. Cleveland & Powell trace the beginnings of the railroad, the physical and financial difficulties that beset them at every turn; the indomitable spirit with which they were projected, promoted and built into every quarter of the Union, until through the investment of billions of private capital the United States has been furnished with the best system of internal transportation in the world. To their pages the reader is referred for the continuation of this most interesting narrative.)

[FIRST ANNUAL REPORT]
of The Chief Engineer of the
PENNSYLVANIA RAILROAD COMPANY

June 12, 1848.

By J. Edgar Thomson.
Chief Engineer.

Engineer Department, Pennsylvania R. R. Co.

Philadelphia, June 12, 1848.

To the President and Directors of the
Pennsylvania Railroad Company:

Gentlemen—I have the honor to communicate to you the following Report of the operations of this Department since it was committed to my charge, now something more than a year.

Under the organization of the Engineer Department, as adopted previous to my acceptance of the office you have conferred upon me, the Road was to be divided into three divisions, Eastern, Western and Middle: Edward Miller, Esq., as associate engineer, was assigned to the Western, and W. B. Foster, Jr., to the Eastern division. These gentlemen had entered upon the survey of their respective lines, previous to my arrival, under instructions from the president, each with two full corps of assistants. The middle, or mountain division, not having been provided for, I concluded after a full consideration of the subject that the interest of the Company would be best promoted by so altering the organization as to abolish it altogether, and extend the eastern and western divisions to the summit of the Allegheny mountains, the natural boundary between them. Under this arrangement, the surveys have since been prosecuted.

The Board having directed me to cause a location of the whole line, from Harrisburg to Pittsburg, to be made at the earliest practicable period, I at once commenced a reconnoissance of that portion of the intervening country, over which it seemed—from an inspection of a map of the State—that the Road would probably pass, for the purpose of determining the best plan of operations to carry out their views.

The Legislature, in their grant to the Company, wisely left the choice of a route for the Road, between its termini, entirely free, throwing upon the Board the responsibility of selecting, upon the wide field that was opened to them, a line for their great work, which would offer the cheapest railroad conveyance for the transportation of freight and the most expeditious for travel that could be selected between the west and the northern Atlantic cities.

Such a route, it was believed from previous surveys, lay within the borders of Pennsylvania, an expectation which has been fully justified by the results obtained from our examinations.

Of the several routes proposed, I found no difficulty—after a careful inspection of the plans of the various surveys, made under the authority of the Commonwealth, and my reconnoissance of the country—in coming to the conclusion that the valley of the Juniata offered advantages for a line which, whether we consider the low gradients that may be obtained along it or its general directness, the desiderata required, is without a rival.

This stream has its source in the Alleghenies, and consequently severs, as it flows towards the Atlantic, all the secondary mountain ranges that lie east of them, and it heads opposite to the Black Lick and Conemaugh rivers, both of which sever those on the west, leaving the main Allegheny only to be surmounted, which would have to be encountered upon any other direct route, in addition to many of the inferior mountain ranges. A more northern route, by the west branch of the Susquehanna (which has its source beyond the Allegheny mountains), would have encountered less elevation at the principal summit, but its great increased length precluded its adoption; while, on the other hand, a southern route, though not indirect, was equally objectionable on account of the rugged character of the country, and the high gradients necessary to overcome the numerous summits upon it. A partial examination of one of the proposed southern routes was made, which followed the Cumberland Valley Railroad to near Shippensburg, and thence, crossing to the west side of the valley at Roxbury, it passed through the Blue Mountain, by a long tunnel, into Path valley; thence, following around the point of Dividing mountain, it crossed this valley and passed through Tuscarora, by another tunnel, to the valley of Augwick creek. Thence it would have been traced between Broad Top and Sideling mountains, and up Dunning and Bob's creeks to the summit of the Alleghenies at Bob's Creek gap; or, turning west by Bedford, crossed the Alleghenies at the head waters of the tributaries of Castleman's river, where the mountain is still much more elevated.

A line leaving the Cumberland Valley Railroad at Chambersburg, and turning the end of Blue mountain, thence seeking the low depression at Cowan's gap in Tuscarora, would be too circuitous to compare favorably with the bolder line from Shippensburg, already described.

But that line would encounter engineering difficulties of the most formidable character; leaving out of view its objectionable gradients, and considering it in reference to its cost, and the local accommodations it would extend to a large portion of the State—at present in a great measure deprived of the advantages of the State improvements—(the strongest argument in favor of the route), it will be found that equal accommodations could be extended to that region with a less expenditure of capital by placing the main stem of the road on the Juniata, and running a branch along one of the comparatively level valleys that lie between most of the parallel mountain ranges that we pass.

The facilities that railroads offer for extending their benefits to remote districts by means of lateral lines constitute one of their chief advantages over canals, and should prevent the error, too frequently committed in locating leading routes, of turning from a direct course to accommodate local interests to the injury of the great object intended to be accomplished.

Other modifications of the Juniata route have been suggested, and their merits fully considered, but, upon examination, all of them tended to confirm our preference in favor of the river line.

These conclusions were communicated to the Board, and the general route recommended having been adopted by them, I proceeded at once to make arrangements to have the line surveyed throughout. For this purpose three additional corps of engineers were organized—one for Mr. Miller's division, under the immediate direction of Mr. G. W. Leuffer, to operate on the summit and western slope of the mountain, and two upon Mr. Foster's, the first of which was placed in charge of Edward Tilghman, Esq., to whom was assigned the district between Lewistown and the confluence of the Raystown branch and main Juniata rivers.

The other corps was given in charge to S. W. Mifflin, Esq., a gentleman of well-known professional skill and experience, to whom we committed the surveys of the region from the Raystown branch to the summit of the Alleghenies, embracing the most important and difficult district upon the whole route to Pittsburg.

These parties did not take the field until the close of July, but they prosecuted their examinations with so much energy and success that we were enabled to determine the general line of the eastern division in season to place the most difficult points upon it under contract in November of last year.

While these arrangements were in progress, the parties previously in the field were actively engaged in examining the country between Harrisburg and Lewistown.

At the instance of a number of gentlemen from Perry county, a line was tried up Little Juniata creek, leaving the Susquehanna at Petersburg, thence near Bloomfield and along Sherman's valley to Concord gap, where it passed the Tuscarora mountain, thence it followed Tuscarora valley to Shade creek, and down that stream to Augwick creek, along the valley of which it was carried to Drake's ferry on the Juniata. The advantage promised for this route was a considerable saving of distance. The result, however, demonstrated that not only would we have had to encounter gradients running up as high as sixty feet per mile, but the length of the line would be increased four miles by its adoption. It was consequently abandoned.

After a careful examination of the country bordering on the Susquehanna and Juniata rivers, a line has been located as far up as Huntingdon, which is believed to be the best that can be obtained.

If the valleys of these streams had not been preoccupied by other improvements, a route would have been selected differing somewhat in its details from that adopted. Even for the short distance that we are brought into close proximity with them, the cost of the grading of the Road has been greatly enhanced by the confined ground we have been forced upon.

The located line commences at the Harrisburg and Lancaster Railroad depot; thence, passing through Harrisburg, it follows the sloping ground between the canal and the capitol ridge four miles, when it crosses the canal and, touching the point of Blue mountain, recrosses and passes to the west side of the Susquehanna river by a bridge 3,660 feet in length, and 44 feet above low water at grade line, which enables us to place the road on the top of the bridge. Thence we pursue this bank of the river through the villages of Duncannon and Petersburg to the Juniata, along the southern side of which it is continued through Newport and Perrysville to a point a short distance above Lewistown. Here the line crosses to the north side of the river, and within a short distance recrosses, to save nearly a mile of road, and one hundred and eighty degrees of curvature, together with some difficult ground along the bluff shores on the south side of the stream.

After regaining the southern side we follow the river slopes, over favorable ground, to Mr. Harvey's, about seven miles above Waynesburg, where the line again crosses to the north side, and passing back of Newton Hamilton, cuts through the neck of land in the great bend of that stream, 40 feet in depth at the summit and 3,100 feet in length at grade. Descending along the eastern slope of the river, we once more cross it at Shaeffer's aqueduct, and continue upon its southwestern bank through Jack's narrows, without meeting any serious difficulties, and finally pass to its north side, along which it is continued through Huntingdon to the Little Juniata, above Petersburg. Above Huntingdon, a preliminary location has been carried up the Little Juniata to Logan's narrows, at which point this stream divides Bald Eagle and Brush mountains in its passage from Tuckahoe valley.

Along the Little Juniata, from Dorsey's forge to the Narrows, the line encounters much difficult ground, owing to the circuitous character of the stream, and the high hills and mountains which bound its course. To obtain a route with easy curves we are forced, within this distance, to tunnel the point of Tussey's mountain, and to cross the river twelve times. To follow the line recommended by Mr. Schlatter through this region curves of 400 feet radius would have had to be resorted to, which I deem wholly inadmissible upon a road of the importance of that you have in view.

At Logan's Narrows we reach the valley that skirts the whole eastern base of the Allegheny mountains. Here it becomes necessary to determine the plan to be adopted to overcome the great barrier that separates us from the West. If it is to be surmounted by a road, with the gradients of the western division, the ascent must commence at this point, and gradually wind its way to the summit, by an almost continuous gradient, along the declivities of the mountains for nearly thirty-two miles, crossing the several streams that issue from it, by high bridges, and cutting through or tunneling their dividing summits.

Mr. Schlatter, in his Report to the Canal Commissioners, estimates the cost of grading the road, on this ascent, at $1,496,146, which I consider too low for a line with the gradient he adopted, but with the increased maximum grade found necessary on the western division, and a somewhat lengthened line, it would probably prove sufficient.

Upon my first reconnoissance of this portion of the country it occurred to me that its peculiar topographical features were lost sight of in the adoption of this plan of ascent, which seemed to look to the single object of obtaining a line with a particular gradient, without regard to the magnitude of the obstacles to be overcome to procure it; while, by pursuing a course from the Narrows, nearly in a direct line to Sugar Run gap (which we shall hereafter show is the best point to cross the mountain), the line would pass through a beautiful valley over comparatively favorable ground, gradually gaining elevation through its whole course, without exceeding the maximum inclination required on the line below, until it reaches the summit of the valley at Robinson's, a distance of fifteen miles. At this point we attain an elevation of 1,174 feet above tide, leaving but 980 feet to be overcome to reach the height found most suitable for passing the mountain, which is attained by a continuous gradient of 80 feet per mile, encountering no very formidable difficulties.

A resort to a gradient of 80 or more feet per mile is by no means an unusual expedient on leading railroads.

Upon the Western Railroad, in Massachusetts, their maximum gradient is 83½ feet per mile. On the Baltimore & Ohio Railroad they now have, between the waters of the Patapsco and Potomac, on each side of Parr's ridge, gradients of 82 feet per mile, and from the greater elevation of the Allegheny mountains at the place they must cross, it is to be presumed that their gradients at that point will still be increased to a higher rate.

Many other instances might be cited, some running up to 120 feet per mile, but it seems unnecessary to extend the list. Theoretically, the power necessary to overcome a given height is the same at all inclinations of the plane of ascent, but in practice, it is to some extent dependent upon the kind of power to be applied.

In the case under consideration, the locomotive steam engine will be the medium used, where the power is carried with the train, and forms part of the load to be moved, consequently, the cost of power on a plane ascending 80 feet per mile is greater than upon one of a more moderate inclination of equal height, by the difference between the gravity of the engines required to carry the same load on both planes.

As a general principle this would be true when the lengths of the roads to overcome the same height are equal, and it is necessary to carry the locomotives, required for the high gradient, over the same distance that they must run upon the low gradient.

But in one of these cases the maximum gradient due to the line below Logan's Narrows is carried to within 12¼ miles of the summit of the mountain—requiring extra power for that distance only—and in the other it ends 32 miles from it.

To explain more fully the relative value of the maximum gradients used on the different divisions of our Road, I have prepared the following table:

Table headings:
Col A: Division of Road.
Col B: Maximum Gradient, ascending westwardly, per mile.
Col C: Maximum Gradient, ascending eastwardly, per mile.
Col D: Gross load of a 20 ton freight locomotive,
exclusive of engine, and a tender of 10 tons. Friction
8½ lbs. per T. Adhesion ½.
Col E: Load of merchandise for a 20 ton freight engine,
the cars being estimated at 4/10ths of their
weight and load.
Col F: Relative load of locomotive on each gradient,
level being unit.
Col G: Number of locomotives of equal power necessary to carry
the same load up each gradient.

It will be perceived from the foregoing table that three locomotives are fully sufficient to transport the same load up the 80 feet gradient that two will carry on the gradient of the western division, and one on the eastern; hence the practical working of the road on the two methods of ascent would be to run two locomotives with the load brought from below from Logan's Narrows to the summit, say 31¾ miles, up the 50 feet gradient; while, on the other, the same engine that brought the load from Harrisburg would continue with it to Robinson's (15 miles), where it would accompany the two destined for Pittsburg to the summit of the mountain and return.

In the first case the engines together will have traveled 63½ miles, and, in the other, the three 51¾, leaving a difference in distance to be traveled by the moving power due to each full train, from the east, 11¾ miles in favor of the 80 feet gradient.

In practice it will therefore be seen—chiefly on account of the actual distance saved—that transportation can be afforded cheaper, in this case, on the 80 feet gradient than on the 50, without bringing into the estimate the interest on $841,000 that the latter would cost to obtain it more than the former. Under these circumstances we did not hesitate when the choice of routes was reduced to a selection between these two methods of overcoming the mountain, to decide in favor of the line by Robinson's, which has the additional advantage of bringing us within 6-1/3 miles of Hollidaysburg, where a connection may be made with the Allegheny Portage by a branch line, passing over favorable ground.

The distance from Harrisburg to Robinson's summit is 132-2/3 miles; upon the whole of this line, the only extraordinary impediments to the easy graduation of the road bed are the bridge over the Susquehanna, a deep and long cut near Newton Hamilton, and a tunnel 1,200 feet in length through a point of Tussey's mountain, and in this distance the maximum ascending gradient to Lewistown is 16 feet per mile, and descending 8 feet. Thence, to Robinson's summit, they are increased to 21 feet ascending, and 10-1/8 feet descending.

The descending gradients are generally so short that they will not be found, in practice, to decrease the load going east much below what is due to a fair working load for a locomotive on a level.

The maximum ascending gradient above Lewistown is determined by the deep cut near Newton Hamilton. The ascent of the Little Juniata seems, however, to require—to obtain an economical line—the use of this inclination, without much intermission, from Dorsey's forge to Robinson's summit. Below Lewistown the gradients are fixed to accommodate the increased trade that would fall upon the line between that place and Harrisburg, without increasing the number of trains.

These low gradients insure to us the important advantages of a single pair of drivers for the passenger engines, upon the eastern division, and, with these rates of inclination, we are enabled to make the line conform to the natural features of the country (above high water mark) without decreasing the curvature below 955 feet radius, except at the east end of the Susquehanna bridge, where a radius of 880 feet has been admitted.

All of our efforts to save distance, by deviating, temporarily, from the immediate valley of the river, involved either the use of high gradients, not justified by the distance saved, or an increased cost that was equally unwarranted. The beautiful valley of the Kishacoquillas offered the greatest temptation to leave the river route; but here we would have had to encounter gradients, in both directions, of 26-4/10 feet per mile, a bridge over Mill creek, 1,200 feet long, 111 high; another over a small tributary of the Juniata, 850 feet long and 150 feet in height, together with several others, or embankments of great magnitude, across ravines in the north slope of the river hills. These difficulties, added to 342 feet of additional elevation to be surmounted at the Allentown summit, so greatly overbalanced the small increase of curvature and distance (7/10 of a mile), by the river route, that it could not be adopted. It was also ascertained that by the use of the maximum gradients required on the valley route, the shortest line could have been procured by the river, and at the least cost. A fact, conclusive in itself, as to the proper route.

I deemed it unnecessary to make further instrumental examinations of the Stone mountain route, feeling satisfied that even if a line could be obtained in that direction which would approximate to an equality, in an engineering point of view, with the route selected—which, from a reconnoissance of a portion of the line and an examination of the plots of Mr. Schlatter's surveys, I should consider quite improbable—that its additional cost would entrench so much upon the means of the Company as to place it entirely out of the question.

A line was traced from Huntingdon to the Frankstown branch of the Juniata, below Williamsburg, across Tussey's mountain, by which a saving of distance could have been made nearly equal to the Stone mountain route, but its high gradients, cost, and the length of time that it would require to build the road over it rendered it equally objectionable. The valley of the Frankstown branch was also surveyed; the route by it joining the Little Juniata line at Robinson's ridge, but it proved both longer and more expensive than the latter. The searching examinations made of the whole region offering any chance for a more practicable route, on the north or south of the Juniata, leaves no doubt upon my mind but that the best line has been procured for the eastern division. Its comparatively easy curvature and low gradients, adapted in their inclination to the direction of the largest business, and extending from the eastern terminus of our Road to the foot of the great barrier that divides us from the west, give it advantages that are not equaled by any other route proposed, between the east and west, and can not be too highly appreciated by the Company.

Before determining the point to pass the mountain, a full examination of its crest was made, from Cedar Swamp summit on the south, to Three Springs Gap at the head of Moshannon creek on the north, embracing a distance of 44 miles. The following table will show the elevation, above tide, of each summit within that distance; also, that at Emigh's Gap, on the northern route, and at the head waters of Castleman's river on the southern:

Tabular Statement of Depressions of Allegheny Mountain.

It will be perceived that the lowest point in the mountain, except at Emigh's, is Maple Gap, from which issues Bell's Run (a branch of the Little Juniata), on the east, and Sandy Run of Clearfield, on the west. This point is 61 feet below Sugar Run Gap and could be further reduced 150 feet by a tunnel 700 yards in length. If the ground had been favorable beyond the summit, this route would probably have offered the greatest advantages to cross the mountain, but it opens westwardly upon the deep valley of Clearfield, a descent into which would involve the necessity of a resort to as steep a gradient on the west side of the mountain as that required on the east; and the elevation thus lost would have to be regained by following up the valley to Laurel Swamp or Munster summits, in the ridge that separates Clearfield from the Conemaugh, which is here the true backbone of the country.

Any attempt to carry a line along the west slope of the mountain, to avoid the descent to Clearfield, would, from the rugged character of the ground, prove impracticable, without a vast increase in its cost, length and curvature. No other point offers equal advantages to cross the mountain until we reach Sugar Run Gap, which is 41 feet below the Portage Railroad summit, and may be reduced 120 feet more by a tunnel 2,000 feet in length. Emigh's Gap, which is still lower than Maple Gap, could not, on account of its gradual slope, be reduced by a tunnel of moderate cost, and it is also too far north for a direct route to Pittsburg. South of the Portage the Alleghenies become the watershed of the Union, dividing the streams that flow into the gulf from those that empty into the Atlantic. They here assume a more elevated character than while separating only the tributaries of the Susquehanna, affording no opportunity to pass them by a line adapted to locomotive power—unless by a tunnel of immense extent—until we reach Bob's Creek Gap. The accompanying profile, which exhibits the crest line of the mountain (for 44 miles) will give a more definite idea of the relative height of these summits.

The mountain on each side of Bob's Creek Gap rises to a considerable height, making it appear, to a casual observer, a very deep depression; and, from this circumstance, it has generally been considered by the residents of the adjoining country to be the lowest pass in the Alleghenies, and, as it falls off rapidly on either side, it has also been supposed that it could be farther reduced by a tunnel of moderate extent. The several surveys of the mountain, however, prove it to be 212 feet higher than Sugar Run Gap, and, to reduce it to a level with the surface of the ground at the latter point, which is 120 feet above the grade of the adopted line, it would require a tunnel 1¼ miles in length, to be constructed under very disadvantageous local circumstances.

Cedar Swamp Gap, still farther south, is 53 feet lower than Bob's Creek Gap, but it falls off on each side so gradually that it could not be reduced conveniently more than 40 feet.

Neither of these points, therefore, which are the only passes worthy of notice south of the Portage Railroad that lie within the region over which a direct line to Pittsburg must necessarily traverse, afford depressions that will compare favorably with those farther north; nor does the ground leading to them, east or west of the mountains, offer equal facilities to obtain a line of uniform ascent to the summit. The distance from the Conemaugh is too short to overcome the elevation with the gradient used on the western division, and, from the Juniata, the greater height to be ascended would continue the line so long upon the mountain steeps that it would be exceedingly expensive to procure a roadbed with a gradient even higher than 80 feet per mile.

From the foregoing description of the most favorable mountain passes, it will be seen that Sugar Run Gap offers the greatest facilities to cross the Allegheny.

It now becomes necessary to consider in what direction the Road can be carried thence to Pittsburg. From an inspection of a map of the State it will be seen that a straight line, drawn from this gap to Pittsburg, will fall on Munster, Beulah, and follow the valley of Black Lick for nearly its whole extent, and intersect the Conemaugh near Blairsville; thence it crosses the country lying within the elbow formed by the Kiskeminetas and Allegheny rivers, passing the Loyalhanna and Crabtree waters, and following, generally, the high and broken ridge parting the Allegheny and Monongahela rivers. That line, which would approximate most nearly to this course, would—all other things being equal—be the most desirable for the Road.

The operations of the different corps, on this division, have been confined to surveys that were necessary to determine the point of crossing the mountain and to the regions between the Conemaugh and Pittsburg, west of the Chestnut ridge. Our examinations have not yet been sufficiently extensive to enable me to give a full description of that part of the country between the mountain and Blairsville, and I shall therefore leave it for a future report, with the simple remark that, from the information before me, I am satisfied that a practicable line may be obtained by the valleys, either of the Black Lick or Conemaugh, within the maximum gradient used upon the western division.

The district of country over which it will be necessary to carry the road from the Conemaugh to Pittsburg is one of remarkable intricacy. It lies wholly within the coal measures, and has, at some period, evidently been nearly a level plane of vast extent, covered by the ocean. The discharge of the waters from this wide spread field seems to have been sudden, forming numerous circuitous channels in every direction, cutting deeply into the soft horizontal strata of this region, in their descent to the tributaries of the Ohio, leaving the intervening ridges washed into so uneven a surface as to render the passage of a railroad along them entirely out of the question. A line following the Conemaugh—which bears northwest from Blairsville—to the Allegheny would avoid this difficult country, but the length of the route would be increased fully 50 per cent., and it is, therefore, inadmissible.

A route with higher gradients than those adopted on the Juniata throughout this division seems to be called for by the topography of the country.

In his report upon the western division, Mr. Miller gives the following account of the surveys, conducted under his direction by Messrs. Day and Pemberton, his principal assistants: "If a straight line be drawn from Blairsville to Pittsburg, it will be seen that Turtle creek is the only stream that approximates to the proper course of the road, whilst the Loyalhanna, the chief tributary of the Conemaugh, crosses it nearly at right angles, and Spruce Run, Roaring Run, Porter's Run, Beaver Run and others intersect it at various angles of obliquity. Much time and labor were bestowed by Mr. Schlatter and his principal assistant, Mr. Roebling, upon the investigation of this district, and their maps and profiles, loaned to us by the Canal Commissioners, have been of much service in our examinations. From a careful investigation of Mr. Schlatter's preferred route on the ground, it appeared possible to avoid some of the most formidable obstacles which he encountered by adopting a higher gradient than his maximum of 45 feet per mile, and by a reasonable increase of distance at a few points.

"Our trial lines confirmed this, and, in the location made, a maximum of 1. in 100, or 52-8/10 feet per mile, has been used at several places. The cheapness of fuel throughout the whole extent of the western division renders this increase of gradient less objectionable than elsewhere. Bituminous coal, of the best quality, is everywhere abundant, and can be delivered at the depots at from 56 to 84 cents per ton."

The principal changes made in the route referred to in Mr. Schlatter's report Mr. Miller describes as follows:

"Upon the White Thorn our line keeps the left bank, entirely to its mouth, avoiding a tunnel of 600 feet, leading into the valley of Buck Run, and a high bridge over White Thorn creek, and reducing that over the Loyalhanna, from 90 to 50 feet in height. West of Buchanan's summit we run level round the hill, between Porter's Run and Beaver Run, avoiding the Still House summit entirely, where a tunnel of 1,000 feet was proposed, with a cut of 70 feet at its western end, running out to grade in a distance of 1,700 feet.

"Passing Burnt Cabin summit, by a deep cut, the line descends along Turtle creek to the Monongahela.

"Below Murraysville the creek makes a double bend, like the letter S. The former line crossed one of these bends, by a tunnel 600 feet long, whilst ours crosses the other by a short, deep cut, following a remarkable pass by which the hill is nearly cut through. These changes have reduced many of the deep cuts, avoided several bridges, saved three tunnels, and reduced the length of a fourth, amounting in all to a reduction of 2,300 feet of tunneling."

After reaching the Monongahela, two routes present themselves, one following the bank of the stream to Pittsburg, and the other ascending along the slope of the river hills, enters a valley leading by Wilkinsburg and East Liberty. Thence, following this valley, it descends Two Mile Run, and enters the city on the Allegheny side. The latter, though the longest route, and requiring gradients of 50 feet per mile, has been adopted as it presented the only apparently feasible route by which a connection could be formed with a road extending towards the great west.

The comparative cost of grading and damages, upon the two lines, would be rather in favor of the route adopted.

A line has also been located from the junction of Turtle and Bush creeks, which passes up Bush creek and through Greensburg to Bernhard's summit, thence by the valleys of Fourteen Mile Run, Sauxman's and Magee's Runs, to the Conemaugh, at the gap through Chestnut ridge.

If the Conemaugh route, by Johnstown, should be adopted, the line by Greensburg will be about 3¾ miles longer than that by Turtle creek, but passes east of the Loyalhanna, over much more favorable ground than any other line examined.

Its advantages, in relation to the local trade of a rich and populous section of country, west and east of Chestnut ridge, through the gap formed by the Loyalhanna, give it strong claim for consideration.

Whether the increased length of the line and the difficulties west of Greensburg will be sufficient to counterbalance these local advantages we will leave undecided until the comparative estimates have been fully made out. Another line was traced, leaving Greensburg and passing into Ligonier valley, through Chestnut ridge, at the Loyalhanna Gap, thence north of this ridge along Coalpit and Kendrick's Runs, to the Conemaugh, which resulted unfavorably.

Further examinations will be made through Ligonier valley, striking the Conemaugh higher up. The Black Lick and the country between it and the Conemaugh will also be examined during the season.

The following summary statement will exhibit the estimated cost and distances of a continuous railroad from Harrisburg to Pittsburg, via Johnstown and Blairsville, graded for a double track, and a single track and turnouts laid.

The estimate is based on prices that are believed to be ample to finish the road in a substantial manner. If the work should be pushed with cautious energy, it may be completed for a somewhat less sum.

The width of the roadbed at grade line in thorough cuts of earth is 32 feet, in rock 26 feet and on embankments 25 feet.

That part of the line below Huntingdon has been located permanently; thence to Logan's Narrows the calculations are based on a preliminary location, and between this point and Blairsville upon an experimental survey, with liberal allowances for contingencies. Between Blairsville and Pittsburg the road has been carefully located. Upon that portion of it, between Blairsville and Turtle creek, gradients of 52-8/10 feet per mile have been admitted, which may be reduced to 50 feet per mile, by the expenditure of an additional sum of $40,000.

Our measurements of distances commence at the depot of the Harrisburg and Lancaster Railroad Company, 106¾ miles from the corner of Vine and Broad streets, in the city of Philadelphia, and terminate at the intersection of Liberty street, in the city of Pittsburg. Those made for the Commonwealth, under the direction of Mr. Schlatter, began at State street, in Harrisburg, and ended at Two Mile Run, on the Monongahela river, giving a difference in favor of Mr. Schlatter's line of about 1-8/10 miles in the points of starting. Between Blairsville and Pittsburg our distance has been actually increased 2-8/10 miles over that proposed by Mr. S., after making allowance for about 6/10 of a mile of an unaccountable discrepancy in the two measurements. This increased distance is incurred to save three tunnels, and other expensive work, amounting, together, to $280,000, or $100,000 per mile.

The whole difference between Mr. Schlatter's and Mr. Miller's measurements, supposing the points of starting and ending to have been the same, is 4-3/10 miles. The difference between the points of starting of the two surveys, on Mr. Foster's division, is about 2/10 of a mile. From Harrisburg to Huntingdon we lose, by following the river route. 7/10 of a mile[A] on Mr. Schlatter's line, and save, from thence to the summit of the mountain, about four miles.

As a connection with the Allegheny Portage Railroad would insure to us most of the advantages of an independent road to the western base of the mountain, it is evidently the policy of the Company to make it at the earliest practicable moment. Our location falling within 6-1/3 miles of that road, it becomes a very small matter to effect a junction with it. If the present means of the Company, however, would justify the expenditure, the connection could readily be made at the foot of Plane No. 4, on the west side of the mountain, thus saving 7 out of 10 of the inclined planes. This could be effected for the additional sum of $1,250,000, or for $950,000 a junction might be made at the summit of the Portage, avoiding the five eastern planes.

The branch to, or above, Hollidaysburg is, however, the cheapest and most speedy way of effecting the connection, and when our road is carried over the mountain it will remain a good feeder to the main line, and a fair investment of the capital of the Company.

The following is an estimate of the cost of a continuous road from Harrisburg to Pittsburg, in connection with the Allegheny Portage Railroad, graded for a double track throughout, except the branch to Hollidaysburg:

To the above amount should be added, for the purchase of depot grounds, erection of warehouses and shops, and the construction of cars and locomotives, as follows:

Making the whole cost of the Road, graded for a double and a single track laid, including outfit, $8,960,000.00.

It will not be necessary to expend the whole of this amount until some time after the Road is in use to Pittsburg. As the business increases the turnouts must be lengthened, depots and shops enlarged, and the number of locomotives and cars added to. These will not reach the sum estimated until probably four years after the Road is completed, in connection with the Allegheny Portage. We shall also reduce the cuttings and embankments to a single track width, wherever the character of the excavations or a deficiency of material for embankment will justify the curtailment. This will effect a saving, in the first outlay, of about $450,000, which will not be required until the business demands a double track.

The expenditure for the outfit, when the Road is opened through, will not exceed $1,340,000, leaving $650,000 of the estimate for this item to be disbursed after the Road is finished, to meet the demands of the increased business for the time stated.

This will leave the cost of the Road and outfit, when opened for use, in connection with the Portage Road to Pittsburg, as follows:

The Board having wisely determined in no event to enter into engagements beyond their ascertained means, I have thought it best, thus early, to present an estimate of the cost of the whole work for their guidance. It will be recollected that the estimate for the grading is made, in part, upon experimental surveys, with full allowances for contingencies. By the close of the year we hope to be able to give an estimate of the whole Road, in detail, from actual location, which may show a somewhat reduced cost.

Under the contemplated connection with that road, the Allegheny Portage becomes an important part of our line, and, for the information of the Board, I insert the following description of it, extracted from a pamphlet written by S. W. Roberts, Civil Engineer:

"The Portage Railroad consists of eleven levels, or graded lines, and ten inclined planes. The ascent from Johnstown to the summit is 1,171.58 feet, in a distance of 26.59 miles, and the descent, from the summit to Hollidaysburg, is 1,398.71 feet in a distance of 10-1/10 miles. There are five inclined planes on each side of the mountain, varying, in inclination, from 4° 9´ to 5° 51´, or from 7.25 feet to 10.25 feet elevation to each 100 feet base. They are numbered eastwardly, the one nearest Johnstown being No. 1; that nearest Hollidaysburg, No. 10. The following table shows the length, rise and fall of each 'Level' or grade line, and each inclined plane."

In conformity with resolutions of the Board, eighteen miles of the grading on the eastern and fifteen on the western ends of the Road were placed under contract in July last. In November the contracts upon the eastern division were extended to Lewistown, and on the 17th ult., to Huntingdon, together with a few miles of heavy work along the Little Juniata, embracing altogether 106 miles.

Very little of the grading, on the western division, has been executed, as there appeared to be no sufficient reason for pressing that portion of the Road until the means of the Company would justify a larger expenditure upon it than they have heretofore.

The work upon the eastern division has been retarded from the scarcity of labor. Time seems to be required to collect the necessary force upon the line. With the exception, however, of the Susquehanna bridge, the grading will be prepared for the superstructure, to Lewistown, this year. The masonry of that important job was first allotted to contractors. The principal of the firm, though highly recommended by the officers of the Reading Railroad, proved unequal to the task he had undertaken, and their contract was abandoned. In consequence, the remnant of last season, after the contract was let, was mostly lost.

The work has been re-let to Holman, Simons and Burke, who have carried it forward satisfactorily. The prevalence of high water, since the season for laying masonry commenced, has prevented as much progress, at this time, as could have been desired; but we still entertain hopes that it will be completed before the ensuing winter. If this is accomplished, the Road can be opened to Lewistown next spring. Under any ordinary circumstances it will be finished to Huntingdon (98½ miles) by the close of navigation in 1849—a point as low down as we may anticipate a profitable use of the Road from.

Our arrangements have been made with a view to the completion of the Road to the Allegheny Portage, early in the spring of 1850. An earlier period could not be fixed, owing to the magnitude of some of the work on the Little Juniata; a portion of which, embracing the tunnel, through a point of Tussey's mountain, was located and contracted for last December, to avoid delay and a premature expenditure of capital on the lighter work, which would have followed a general letting of the whole Road at that time, or since, even if it could have been prepared for contract in season.

If sufficient means shall be obtained to prosecute the western division, I would recommend that the heavy portions of the work, between the Conemaugh and the confluence of Brush and Turtle creeks, should be placed under contract, together with the grading, continuously from the Portage road to the point of divergence of the line from that river towards Pittsburg, if the Conemaugh route is adopted.

When the connection is made with the Portage Railroad, from the east, there will then be a continuous railroad from Philadelphia to Johnstown, 282 miles in length, and, if opened at the same time to near Blairsville, it will be extended to 310 miles, with only 43 miles of turnpike thence to Pittsburg, or 75 miles of canal navigation, giving a line of communication, with the Ohio river, far superior to any railroad route existing, or any that will at that time be built. On freight destined to the interior of Ohio but one transshipment will then be necessary. The canal boats, loaded at the terminus of the Road, can be conveyed to any point upon the Ohio canal.

If your Road possesses no other source of revenue than the local travel and transportation of the rich and populous region to be traversed by it—secured, as it will be, from competing lines by natural barriers stretching out on either side from the Susquehanna to the Potomac—they would be sufficient to justify its construction. The influence of the Pennsylvania canal has called into activity all the elements necessary to render the enterprise profitable, and, in consequence, it will be more successful with that improvement, as a pioneer rival, than if it was now to enter upon an unoccupied field. Whatever may be the effect of your work upon the business of the canal—and I do not believe it will be injurious—there can be no doubt but that it will add very materially to the revenues of the Commonwealth.

Important as the local sources of revenue are to the Company, they will afford but a limited amount of business compared with that to be derived from the great West. The route of your improvement is directly on the line that would be most desirable for a railroad to pass from St. Louis, or the confluence of the Mississippi and Missouri rivers, through the center of the wealth and enterprise of the Mississippi valley to the Atlantic. With a map of the Union before you, it will be found to be impossible to draw a line upon it that would accommodate so large an amount of population, or an equal extent of fertile country.

Through the broad bed of mountains that divide the Atlantic from the Western States—traversed by our route for 190 miles—natural gorges are found, cutting all of them to their bases, except the Allegheny, which is passed with comparatively easy gradients, and without encountering difficulties of a very unusual character. These favorable features of the country give to us a line which is the shortest and best that can be obtained between these sections of the Union, and insures to the Company the whole of the travel and light transportation, with much of the heavy trade, destined to Philadelphia and points north of this city, of the vast region between a line along the southern shores of Lake Erie, touching Lake Michigan, and extending to the far West, and the immediate valley of the Ohio river. The distance from Cleveland to New York being 80 miles shorter by this route than by the New York and Erie Railroad, much of the travel embarked upon the lakes for that city from the north and west must also be diverted to this line.

In view of these circumstances, can a reasonable doubt be entertained by any one as to the profitableness of the stock of the Pennsylvania Railroad Company? Its natural position must give to it more than sufficient business to make it yield large profits. Indeed, I confidently advance the opinion that when the Road shall have been completed that it will not be a question "whether it will pay an interest on its cost," but to what point the rates of freight and passage shall be reduced to give the Company ample revenues and at the same time make the work most extensively useful to the public.

Dividends from its revenue can be made of 6, 8 or 10 per cent. by changing the rates of freight and passage, at the discretion of the Directors.

From some experience in the management of the business of other roads, much less favorably situated than this, I feel no hesitation in making this prediction. I look upon the result as one upon which there can be no doubt entertained.

The inquiry may be made, "If this Road must prove a profitable investment, why other works in Pennsylvania, favorably located, have not yielded remunerating dividends to their proprietors?" In reply it can be stated that there is no important work, leading from Philadelphia, that ought not now to divide large profits, if their stock and funded debts exhibited a fair cash value of the property represented. Most, if not all, of these works, were commenced with inadequate capital, for the object in view, and from the anxiety of the stockholders to realize the large profits promised on their completion, and the public to enjoy the use of the improvement, they have been pressed forward faster than true economy, or the funds of the company, would justify. Engagements were made, relying upon fortune, or accident, to provide the means to meet them. These resources failing, they were thrown upon the mercy of either the contractors or the money lender. And, in consequence, the cost of the works has been rolled up to an amount not anticipated, and, in many cases, debts incurred, under the pressure of the moment, in the most objectionable shape, to meet which the whole of the receipts of the companies have necessarily been mortgaged.

In New England, and also in New York—where railroads have, in many cases, been deprived of the privilege of carrying freight—judiciously located roads have invariably paid well. Their success has not been caused by the exercise of any peculiar skill or economy in their management, as generally supposed, for, in this respect, though they stand deservedly high, there is none that conduct their business, under all circumstances, with as much economy as the Baltimore and Ohio Railroad, or some other southern companies.

In closing this communication it gives me much pleasure to acknowledge the zealous and cordial co-operation that I have received from my Associate and Assistant Engineers in carrying on the important work that you have committed to our charge.

Respectfully submitted, by
Your obedient servant,

J. EDGAR THOMSON,
Chief Engineer.

Note.—By way of "Then and Now" contrast, the income account of the Pennsylvania Railroad Company for the year ending June 30, 1909, from Interstate Commerce Commission Bulletin No. 5 is subjoined.

Revenues and Expenses of the Pennsylvania Railroad Company for the year ending June 30, 1909.

(a) Exclusive of some $1,790,000 taxes paid on leased lines.

Observe that the amount expended on maintenance of way and structures in 1909 was more than double the total estimated cost of the road from Harrisburg to Pittsburg in 1848.

The amount expended during the calendar year 1909 in revision of grades and alignment, and for additional tracks, yards and other terminal facilities, abolition of grade crossings and improvement of equipment was $5,581,809, exclusive of $4,000,000 applied towards construction of New York Terminal Extension.

This road as it exists today is a living monument to the sound policy of the American railway practice of a dollar for improvements for every dollar of dividends. S. T.

FOOTNOTE:

[A] By an alteration of the line, since made, the distance lost by the river route is reduced to four-tenths of a mile.

[RAILWAYS AND THE PACIFIC NORTHWEST]

By James J. Hill.

[On the occasion of the completion of the Spokane, Portland & Seattle Ry., connecting Portland with British Columbia, Mr. Hill delivered three noteworthy addresses at Portland, November 6, 1908, at Tacoma November 9 and Seattle November 10. The speech at Portland was an earnest plea for a more intelligent and economical cultivation and conservation of the vast agricultural resources of the Pacific northwest; the other two related largely to the part played by the railways in the development of that territory. The portions of these addresses which follow are taken from the full reports which appeared in the Seattle and Tacoma newspapers the next days.]

MR. HILL AT SEATTLE.

After Mr. Hill had been introduced and warmly applauded as the "Empire Builder," who had been intimately associated with the development of the northern tier of states from the Lakes to the Pacific Ocean, and he had acknowledged his obligation to the indomitable spirit of Seattle and its people, he began his address by disclaiming the ownership of the Great Northern railway. "Fifteen thousand people own it." said he. "The average holding is about 120 shares. Over 6,000 women are owners in the Great Northern railway, and I have to manage their affairs." Then he proceeded:

"It is three years since I was here, and I never expected that three months would pass without my coming to Seattle, but three years have passed and what do I find? I think the city in three years has doubled. I think it has doubled in everything that goes to make a city. Just look at the streets lined with commercial houses which would be a credit to any city in the world. It is far beyond what I expected to find, and I think that Seattle has a future. Seattle is entitled to her growth, and if the same spirit that has moved her citizens in the past continues, if the mantle of the older men falls on the shoulders of the younger men, Seattle cannot help but thrive. You have behind you one of the richest states in the Union; one of the very richest.

DEVELOPMENT OF RAILWAYS.

"Now, to come back to the relation of the railway to the development of the country. Next to the cultivation of the soil itself, in the amount of money invested and in the importance to all the people, is the railway property of this country. It is on a little different basis, I am sorry to say, from the general attitude of the public, from any other property. From what Judge Burke says as to the Golden Rule, if you can have it fairly applied, it would make our hearts glad.

"We frequently hear about railroad watered stock. It is a hackneyed phrase which is used with which to catch gudgeons, and it has caught a great many. Now, let us see. You can open a bank—five of us sitting here, if we had the money, could open a bank, put up the building and draw our checks, and that is disposed of. We have a million or a million and a half of capital, and, conducting the business of the bank within the law applied to bankers, we can earn any dividend we like, and we can divide it, even up to 40 or 50 per cent., and it has been done, and nobody finds any fault. Now, we might start a manufacturing establishment and we can divide any profits that we can legally make up to 40 or 50 or 100 per cent., or we can start a mercantile establishment and conduct it so as to bring any profit—there is no limit so long as we are within the laws of trade. But take the railroad.

"Now, remember, you can run your manufacturing establishment twenty-four hours a day, or you can run it one day in the week, or you can run it half the time and you can close it and it will not affect you, or you need not run it at all; and if you do not like the business you can dispose of it. You can liquidate your bank and go out of business; and so with the mercantile establishment, you can close it at any time. But when you have invested your money in a railway, you have undertaken an obligation to serve the public; you have taken a business risk that is greater than the business risk of any other business in the world. If you do not run it, move your trains with regularity, move your trains so as to accommodate the business, the courts will appoint a receiver and will issue receiver's certificates to an extent that would wipe out your investment. If there were anything left they would hand it back, but the chances are altogether that if you could not make it pay the receiver could not.

RAILROAD BIGGEST RISK.

"Now, I mention this simply to show that the business risk in building or operating a railway is greater than it is in any other business. There is nothing guaranteed, and sometimes you are told what appliances you may use; you are told what you must not use; you are told whom you can hire, and you are told when you can discharge him, and it has been at least hinted as to what you should pay him—what his wages and condition of work shall be. So that the only privilege that was left for the railroads was to pay the bills. That they are always expected to do, and it would be a great disappointment if they were not able to.

"In the section of this country, the portion of this country east of Chicago, I do not know anywhere north of the Ohio River, where a railroad, built with the greatest care and economy, could pay one per cent. on its cost; that is, a new road, built between any of the large cities of the west to the large cities of the east, paying the present price of real estate and terminals and the cost of construction, the cost of eliminating great profits, the cost of the necessary expenditure of money to make life and limb safe.

"Take, for instance, a railroad from New York to Chicago. I had curiosity enough to inquire from the leading real estate man who was getting the additional property for the New York Central, their terminals, what it would cost from Thirty-eighth street to Harlem River, a narrow strip of blocks on the East Side, say ten blocks, from Thirty-eighth to Forty-eighth street, to be used as a terminal. He told me it ought to be secured for $200,000,000, but he would not like to take the contract. Now, follow that up through Albany and Syracuse, Rochester and Buffalo and Erie and Cleveland and on to Chicago, and if you can get into Chicago and get out of New York with any reasonable cost I want to say that when your road was finished, at the present rate, it could not pay 1 per cent. on what it cost in money.

NO ROOM FOR MORE ROADS.

"Now, what chance is there for more roads between New York and Chicago, or between any Atlantic city and any large city in the west? During the ten years from 1898 to 1908 the railroad mileage in the United States increased about 24½ per cent., the passenger business increased 125 per cent., and the freight business increased 148 per cent. The additional burden was placed on the railways, with an increase of over 148 per cent. in the tons moved. What is it costing the Pennsylvania road to get into the City of New York? I do not know the exact figures, but I have seen it estimated from time to time at one hundred millions of dollars to secure passenger facilities in the City of New York. When I think of these things and see what you have here I think that we have reason to congratulate ourselves, and I think that we had a narrow escape from being compelled to do our business west of Commercial street in place of where we are today. There are no places that I know of today where there is any room or any use for any other large railway enterprise.

"The Milwaukee & St. Paul are coming to the Coast—and we are glad they are there. At different times, when people largely interested in that enterprise talked with me, I said, 'By all means build to the Coast; extend your road—if you do not, somebody who has more enterprise than you will take the business and will keep it on their own rails and you will not get a share of it.' But when that enterprise is finished, I do not know, north of the Platte River, where there is room for another railroad or occasion for one. There will be branches built, and they are necessary for the development of the country. You had expended, and there is being expended now, a very large sum during the last two years.

"The Northern Pacific and the Great Northern, within the State of Washington, have spent millions of dollars between Portland and Spokane. It ought not to frighten you; it will not wipe you out; you have your roots deep in the ground and they will stay there.

TACOMA IS WAKING.

"Now, I find in summing up the present population of the new country between Blaine and Vancouver—Portland is on the other side of the Columbia, although, fortunately, the state line does not limit our commerce or our right to trade with each other—there are over 700,000 people living on the line of the railway between Blaine and Vancouver. Portland claims 200,000, and I feel sure that she must be near that figure. Portland has grown rapidly, and I think possibly the young men have taken a sheet out of your book. There was a time when they were altogether too wealthy in Portland. Every man had business of his own to attend to and was so deeply engaged in it that he overlooked the business of the city. They did not take hold. You could come there if you were willing to bear all the expense and take what you could get. But Portland has had an awakening, and I believe that Portland, notwithstanding its remoteness from the sea, will have a good growth. It has a good country behind it and there is no reason why it should not have a good growth.

"Another city down here where we were beautifully entertained last night, Tacoma—I remember when we came out here they really did not need us and we did not want to force ourselves on them, and so we stayed right here. But I think, and I hope, that Tacoma is getting its eyes open and that it wants more railways. We don't ask much; we want the privilege of a place for foothold, a place to do our business at our own expense; and I think that we will probably succeed in getting it—I hope so.

GROWTH PLEASES HIM.

"I wanted to come back to your city here. I was more than surprised at your growth and I am more than gratified. I rather gathered that you had grown fast and that possibly you wanted a resting spell, but I don't see that there is any rest for you now. I think that you will go on as you have begun, and I was more than glad to see what you are doing in the way of adjusting your street grades. It is inexpensive; the burden may be hard upon some people, and difficult to carry, but it will cost infinitely less to do it now than in five or ten years, after those streets were lined with buildings that had cost a great deal of money and you could not afford to throw them away. Lay your foundations right and the structure will take care of itself.

"It will grow by degrees, and, when it is finished it will be part of a complete whole and you will be glad you did it. We have a good many communities to take care of along our railway, and with every one of them we have always the feeling that their prosperity means our prosperity. They have to earn the money before they can pay it to us, and what they do pay us we think is a small part; but we expect the railway business must depend upon close management and small savings.

"Take the dividend of the Great Northern railway. Three copper cents in moving a ton of freight ten miles pays our dividends. A ton of freight on a country road would be a fair load for a farmer's wagon, and ten miles would be a fair day's work if he returned the same night. We do that. Our dividend amounts to about 3 cents—a little less than three copper cents—for moving that load of freight. We find that we have neither poisoned the air nor the water and you have all the highways that you had before we came, but we give you a better one and a cheaper one.

MUST HAVE MONEY.

"And remember that you never can injure the railway without injuring yourselves. The railway has only two sources from which to get money. It must either earn it or borrow it, and if it borrows, and borrows judiciously, the rate of interest ought not to be high, but whatever it is, high or low, you pay it. Sometimes people who do not know better think that they are serving a good cause to stick the railway—the company is rich—a personal injury case or something of that kind—but it is a railway and they can afford it—stick them. Now, who pays the bill? Can we charge that up to the construction of a station?

"It is a part of the expense, and the law says that you must pay us for the use of our property enough to pay our expenses and our taxes, and a reasonable return upon the investment, so that all is charged in your bills.

"We had in one thriving city on the Great Northern, I recall, a suit for $20,000. A young brakeman stumbled against a pile of cinders that it was represented the trackmen threw out from between the rails and poured water upon it, and it froze in the winter and was solid, and as he was running alongside of his train he stumbled and fell and was injured—some great injury to the spine that wrecked his entire nervous system, and we inquired and found out how the coal got there, and our experience and education have made us suspicious; we took the cinders to the laboratory and had them analyzed and absolutely they were anthracite, and there never was a ton of anthracite coal burned in a locomotive in the State of Minnesota; we followed it up and we found that the man who brought the suit—a professional suit bringer—had, with a brakeman and his own son, taken the cinders from his own office and piled them there and poured water on them. Now, I speak of that just as an illustration of some applications of that Golden Rule.

COMPARES RAILWAY COST.

"Your future growth will depend on yourselves hereafter, as it has largely depended upon your own efforts in the past. The commerce going to and from the Pacific Coast cities by the sea is being largely carried in foreign bottoms. There was a time when the American nation was a nation of seafaring men, but that does not apply any longer, and I am sorry that that is so. I believe that the people of the United States, I believe that the genius of the country is just as able to carry upon the sea as upon the land. As matters stand today, any bay or inlet where a foreign flag can force its way inland into our country they can call to us to drop the bundle and they take it from us and we can't help ourselves. Now, we ought to be able to help ourselves, for on the land we have so far surpassed the others that there is no comparison.

"In Great Britain their average railway cost is $234,000 per mile. In the United States it is a little less than $60,000 per mile. In Germany it is about $110,000, in France about $140,000, in Austria about the same. Now let us see what they do with their two hundred and thirty-four thousand dollar machine and their one hundred and ten and one hundred and forty. In Great Britain they move an average of five hundred thousand ton miles to the mile of road at a cost of $2.16 for every hundred miles. In Germany they move about seven hundred thousand ton miles at a cost of a trifle under $1.36 for every hundred miles. In France 450,000 ton miles at a cost of $1.40 for every hundred miles. In Austria the cost is $1.50 for moving a ton of freight a hundred miles, and in the United States the cost is 74 cents and a fraction.

AGAINST SHIP SUBSIDY.

"Now we in the United States move the business for less than half the average cost of Europe. We pay from twice to four times the rate of wages, and we do it with an investment of about a third of their average. If we can do that on land, why can't we do it on the sea? I know that if the ships of the United States had the same care and the same opportunity that the ships of other nations have they would do it, and until then no subsidy, no ship subsidy, will ever enable them to compete with other business, because in principle it is wrong to tax all the business of the country—to put your hand into the public treasury and hand out to one particular business a cash subsidy in order that it may live.

"I want to tell you that a steamship line that cannot live without a cash subsidy will make a mighty, mighty lean race with one. It ought to rest on a business foundation. That is the only reason for running ships, because they can be made to pay, and if we can make our railways pay and work at the low rates that the railways in the United States do carry and pay the scale of wages that they do pay, why can't we succeed on the high seas? If we can't, let us hand that business over to somebody who will do it cheaper and better; but I don't feel that the case is a hopeless one, but, on the other hand, I do feel that it would only limit the efforts of those who were trying to make and to build up a merchant marine for the United States; it would only limit their efforts to extend a subsidy to a few ships engaged in the business.

FOREIGNERS GET SUBSIDY.

"I remember on one occasion that I went home from here and there was no tonnage to move the stuff we had to send to the Orient. Absolutely no tonnage was available, and when I got home there was a reception to one of our public men, and the late Senator Mark Hanna was there. I took up in a few remarks the question of a subsidy, and I said. 'If we are going to have one, let us pay a subsidy for something that is going to do us some good. Let us pay a tonnage on the actual products that reach a new market.'

"That would have done some good. The tonnage of the products that does not reach a new market, we wouldn't have anything to pay on that, and on that that does we could afford to pay. Now, we were driven out of the business on the Atlantic, but we might retain a hold upon the business of this ocean. Immediately there was a scheme for Congress for an appropriation, I think of $9,000,000, for ship subsidies, and they found that 80 per cent. of it would go to one line, under the bill that was being then drawn—and that line on the Atlantic Ocean—and I know that the men and most of the officers lived on the other side of the Atlantic, and the stock was owned on the other side of the Atlantic. Now that would not build up a merchant marine for us.

"A company over there has disposed of this old boat to our people and taken what new money they got and built new boats. That was all and that was celebrated—a portion of that was celebrated as the inauguration of a new merchant marine for the United States. Think of it!

"But some of our statesmen were wise enough to believe that it was going to succeed, but it did not. It fell ingloriously. When we have a merchant marine it will be because there is a reason for it. But until that time comes, just put up with the business that we can get, and let the others carry it who can carry it lower and better than we can in this country.

"But bear this in mind: That all your great harbors in the country when compared with the railroad yards sink into insignificance in the tonnage that they move. I think that, in Seattle, I would be safe in saying that twenty tons are moved by rail where one goes by water, unless you can count saw logs. And I had occasion to look up St. Louis. The Mississippi at St. Louis has from eight to twelve feet of water for nearly nine months in the year and boats run in and out of St. Louis, and we are all anxious to make a deep water channel from there to New Orleans.

"Now, in looking up the amount, I found that, notwithstanding they had from eight to twelve feet of water for nine months in the year, or about nine months, less than 1 per cent. of the tonnage that came into St. Louis moved by water; and out of over 1,500,000 tons of coal—and if there is any article among all the shipments that could be moved by water easily and cheaply it would be coal—not one ton of coal moved out of St. Louis by water last year.

"There is a scheme to spend the public money and create a channel fourteen feet deep to the levees at the mouth of the Mississippi, and there are plans to lath and plaster the bottoms of a great many other streams throughout the country, and so many that in order to get any appropriation for an enterprise of great national merit, it is necessary to divide up and load it down with a lot of appropriations. These make what is known as the pork barrel, the river and harbor bill. They load it down with the various enterprises that have no value to anybody, streams on which the government is called to spend more money than all the boats would bring if sold at auction, and in some cases where there have been no boats run for ten years.

LEADS WORLD IN TONNAGE.

"They say they ought to regulate the railroads. Now, when you come to consider the matter practically, I would rather have a railroad alongside of a navigable river, or a river with six or eight or ten feet of water in it, than to have it far away from the river. A box car will beat any ten-foot channel in the world, but when we get twenty or twenty-five-foot channels, the box car is not in it in bulky freight. You have got to have depth of water.

"Some years ago I built six freight steamers on the Great Lakes and they were considered whales in their day. They could carry 3,000 tons. Today a lake steamer and a double channel through the Soo Canal carries 12,000 tons, and has two additional firemen and one deckhand, and that is all the additional crew.

"Sometime I would like to have the city council of the City of Seattle, if they had the time, run down to the head of Lake Superior, and see what is the greatest port in the matter of tons moved in the world. London was, and Duluth and Superior a few years ago were trailing along fifth or sixth place; but last year it took first place with the cities of the world, and it handled more tonnage than any other city. London had 30,000,000 tons and Duluth had 34,000,000.

"Now, to show the enormous importance of that load of tonnage, that tonnage that is greater than any other city in the world, I undertake to say, and do say, that there are not 1,000 people, men, women and children, connected directly or indirectly, with moving that traffic between the land and the water in both directions. There is such a thing as doing a very large business without a harbor at all.

SEATTLE SPIRIT WINS.

"Although as far as foreign commerce is concerned, as far as business is concerned, when we get to the seaside, we have to hand it over to the ships. It must be done. But the great business is done in the railroad yards. I would not be without the harbor—far from it, but don't feel that the harbor is going to make you, and don't feel as a gentleman in public life in Washington, when a friend of mine talking with him said, 'You won't get any more railways built along the policies you advocate.' 'Oh, well,' he said, 'we have got them, we have got them.' And he was a member of the house committee of interstate commerce, a rather dangerous statement for him to make."

AT TACOMA.

In his address at the banquet of the Tacoma Chamber of Commerce on the preceding evening (November 9), Mr. Hill dwelt especially on the intimate relation of railway and agriculture interests. Among other things he said:

"The question of terminals means a great deal to a railroad and it is getting to be more and more full of meaning every year. Some cities, and large cities, today have all the railroads they will ever get, simply on account of the difficulty in getting terminals. I think the Northern Pacific terminals today—I think to buy them on the entire system—would cost more money than to grade the whole road, and I do not know but what it would cost more than to grade and put the rails down. That is a condition and, remember, that you pay the freight.

WILL SOON NEED ALL THE WHEAT WE RAISE.

"Within a comparatively short time, I will say that within six years, I will go on record, you won't send many cargoes of wheat from Tacoma by sea, simply because the United States wants every bushel that will be raised within the United States to feed her own people, and will pay you more money for it. If they didn't pay you more money for it, it would go to the foreigner, but our own people will pay more money for it and take it somewhere and grind it into flour. If you look for greater avenues or greater economy in transportation, but it will cease to go out as wheat. I will give you an illustration and you can draw your own conclusions as well as I can: In 1882 the United Slates raised 504,000,000 bushels of wheat and we had 52,000,000 people and we exported somewhere between 175,000,000 and 200,000,000 bushels. Twenty-five years later, in 1907, we raised 634,000,000 bushels. We increased in that twenty-five years a little less than 25 per cent. in our wheat yield, or 130,000,000 bushels.

"Our population increased 64 per cent., and converging lines meet somewhere. Now, if we had 90,000,000 of people—and we have between 88,000,000 and 90,000,000 this year—and use six and a half bushels per capita, it would take 585,000,000 bushels for bread and seed. Professor Rogers, of the Minnesota Agricultural College, puts our consumption for bread and seed for the last few years at a trifle over or a trifle under seven bushels. I think he uses ten years for his average, and I use twenty-five to get an average of about six bushels and forty pounds, and I call it six and one-half bushels.

"On last year's crop, with 634,000,000, we have had about 59,000,000 bushels to sell and we sold about 80,000,000. What is the result? After the 15th of January wheat was higher in Minneapolis than it was in Chicago, even up to the first of August, and part of the time it was higher than it was in New York, because they wanted it to make a loaf of bread to feed our people at home.

"We have not the great margin that we used to have. The seed on last year's crop went down to 59,000,000 bushels and, if my figures are equal to Professor Rogers'—and he is a professor of agriculture in the Agricultural College and maybe he has more time to look these questions up more carefully—but with his figures we hadn't a bushel to sell. Suppose we had 60,000,000 bushels to sell, and we are increasing in population at the rate of 2,000,000 per year, our natural figure is between 1,300,000 and 1,400,000, and allow 700,000 for immigration, not eleven, twelve, thirteen or fourteen as we have been having, but say seven and by 1950 you will have in the United States, it figures out to be accurate, 208,000,000, but suppose we have 200,000,000, it might come by 1945, or 1947, or it might be in 1955, but about that time we will have 200,000,000 people, and if they use six and a half bushels per capita for bread and seed, it would take 1,300,000,000 bushels to feed them.

PROBLEM OF THE WHEAT.

"That is a little more than twice what you are raising today, and you haven't any new fields to put a new plow in. From 1882, when we raised 504,000,000 bushels of wheat, following that time more than half of Minnesota, all the northern part of Minnesota, was brought under the plow, all of North Dakota, all of South Dakota, all of the state of Washington and all of Oregon, except 3,000,000 or 4,000,000 bushels raised in 1882, more than half of California, two-thirds or three-quarters in Kansas and Nebraska, a large part, practically all of Oklahoma or the Indian Territory and a large part of Texas, and take what was raised in 1907 on the new fields that were opened up, any new territory after 1882, and you will find that it is approaching 300,000,000 bushels, but the increase in the whole country in that twenty-five years was only 130,000,000 bushels, so that the old fields fell off about 170,000,000 bushels.

"Are we increasing our yield per acre? By no manner of means. It has been a steady and uniform decline for the past thirty years. Now, we have as good wheat fields as there are anywhere on the continent, and they will be made better. I am not a disciple of Malthus, because Malthus was an honest man no doubt, but when he wrote he did not understand the science of modern agriculture or the adaptation of the soil or of the seed to the soil, or the commercial value of a correct analysis of the soil and the adaptation of the soil nor its commercial value as suited to the crop it is best fitted for. All these things we have learned, and while you are teaching your young people let me advise you that the school that is most entitled to your care and the school that will do the most for the state in every place and will turn out men and women as they have always in industry and intelligence and everything else that goes to make good citizenship, the school attended by the boy on the farm is certainly as good as the best.

"When your forests are cut and hauled away, and sold to somebody else you have then, and we will give you a perennial forest, a crop every year of great value too. But we ought to be able to take care of our land and we will. I have no doubt about the future. We will do what other people have been compelled to do. In 1790, Great Britain was down to fourteen bushels. We are down to thirteen and nine-tenths now, average. They took the question up and it was much easier for them to control, as far as territory was concerned, because the territory was small, in the hands of a few land owners, mostly rented, and they faced conditions compelling the land owner to sub-fallow, and fertilize and carry one crop year after year. They appointed a royal commission and that royal commission went to work jointly. We have a royal commission, too, and they are able men. One is a professor at Cornell and another is a publisher of books in New York, and another is Mr. Pinchot, who is doing a great deal of work, but he is overrun with the work he has to do. This commission is to report in time for the meeting of Congress. Now, bear this in mind, Great Britain started in 1790 trying to keep the people on the land. The landlord was afraid of the great drift of the agricultural people to the colonies and the new republic, the United States at that time. The new republic was going to impoverish them, and leave them without any rent rolls. They went to work intelligently and in 1810 and 1811 Sir Humphrey David, the foremost scientist of his time, delivered most intelligent lectures on the qualities of the soil. In forty or fifty years after they started they had gotten their yield up to an average of twenty-five bushels per acre. Last year, it was 32.2. Starting at fourteen we ought to get up in place of 13.9 or 14, we ought to be able to get up to 28 or 30, and if we do we will have grain to feed our 200,000,000 people and to spare, and what do I hear? 'Some more, and then some?' Now in going over those questions, I am not worrying about the future of the country. I have more confidence in it today, the day for cheap wheat has left the United States, not to return, and we can stand that. This land, this side of the range, you can devote to better uses than raising wheat. I do not know why you should not get returns, as I said, that would equal 10 per cent. on $2,000 per acre. You can do it. There is no question as to that."

[SOUTHERN RAILWAYS AND THEIR NEEDS]

by
John F. Wallace.

Abstract of Address before Southern Commercial Congress Washington, D. C., Dec. 7 and 8, 1908.