^SS^^bSSS^^^^ CORNELL UNIVERSITY LIBRARY BOUGHT WITH THE INCOME OF THE SAGE ENDOWMENT FUND GIVEN IN 1891 BY HENRY WILLIAMS SAGE Date Due HO^T^igSTJi^ -Wf=^ 1903 I a A&M If »C15?'N 24 W^ •% JA A_ PRINTED IN U. S. A fWf CAT. NO. 23233 3"7924 030 109 288 olin The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/cletails/cu31924030109288 HISTORICAL SKETCH ILLINOIS CENTRAL RAILROAD HISTORICAL SKETCH ILLINOIS -CENTRAL RAILROAD, TOGETHER WITH A BRIEK Biographical Record of its Incorporators AND Some of its Earlv Officers. WILLIAM K. ACKERMAN. CHICAGO: FERGUS PRINTING COMPANY, 1890. AT I 2S - ^ ^_ ^^ ^^ ^ <3 INTRODUCTORY. '' I "^HE following sketches contain a statement of facts ^ and incidents, which have occurred for the most part within the recollection of the writer — who was connected with the company, in various capacities, for a period of nearly thirty-two years — or have been gathered from reliable sources, relating to an important work in the history of the State which seem to him worth preserv- ing. He trusts that they will prove of interest to the class of readers who will be likely to peruse a paper of this character. Though frequent reference has been made in the past, in various forms as to the effect upon the physical and financial resources of Illinois by reason of the construction of the Illinois - Central Railroad at a critical period in the history of the State, still it is doubt- ful whether such stress has been laid upon the subject as either to do justice to the projectors, or enable the people of Illinois to realize fully, the present and prospective benefit conferred. Portions of this paper have already appeared in a pamphlet entitled "Early Illinois Rail- roads," but in order to preserve the chronological order of events in treating of the Illinois- Central Railroad, proper, it was deemed necessary to repeat them here. Wm. K. Ackerman. Chicago, July, 1890. ILLINOIS-CENTRAL RAILROAD: HISTORICAL SKETCH A N D BIOGRAPHICAL RECORD OF INCORPORATORS. By Wm. K. Ackerman. IN undertaking a brief sketch of the origin of the Illinois- Central Railroad, it is necessary to refer somewhat in detail to the correspondence of two men closely identified with its early progress, and whose names stand out prominently in the history of the State; I need hardly say that these are the Hon. Sidney Breese and the Hon. Stephen A. Douglas. In writing upon the subject, if one were to confine himself to the conten- tions indulged in by these two gentlemen, for the credit of either originating or advocating the scheme, considerable time and space would have to be given up in the endeavor to reconcile their respective claims. From the most careful examination made of the correspondence that passed between them upon the subject, it does not appear, however, that either of these gentle- men actually originated the plan of a central road; indeed Judge Douglas lays no positive claim to this, but Judge Breese, in his letter to the Illinois State Register, Dec. 23, 1850, says: "I must have the credit of it, for I originated it in 1835." And in his famous letter to Judge Douglas, written Jan. 25, 1851, to the latter at Washington, while in the senate, he says, "I claim to have first projected this great road in my letter of October, 1835," — meaning his letter to Judge John York Sawyer of Oct. 16, 1835. But even in this letter, he gives credit for the plan to "an intelligent friend in Bond County," who was William S. Waite of Greenville, and who proved himself an ardent supporter of the road until its final completion. These claims of Judge Breese are referred to by Judge Douglas in a somewhat sarcastic as well as a facetious manner in the voluminous correspondence* which was carried on during 1850 and 185 1, but the latter modestly abstains from claiming any connection with the meas- * "Early Illinois Railro^s. By W. K. Ackerman. Chicago, 1884." 6 BREESE- DOUGLAS CORRESPONDENCE. ure until December, 1843 — the year in which he entered the house of representatives and the same year in which Judge Breese entered the senate — or any exclusive credit for the consummation of the scheme. What Judge Breese did claim, was undoubtedly true, vis: that he had "said and written" more in favor of the plan than anyone else, and for this he was entitled to great credit. The daily Illinois State Register of Dec. 19, 1850, published an article, quoted from the Benton Sta?ida?-d, stating that Judge Breese favored what was known as the "Holbrook charter," to which particular reference will be made hereafter. This stirred Judge Breese to a reply in which he stated that he was in favor of accepting the release of the Cairo company on condition that their rights were to be respected. In the same letter, he claimed that he was entitled to the credit of the whole scheme of a central road, having "originated it in 1835." The editor of the Register, while willing to accord him all due credit, reminds him that the efforts of Senators Douglas and Shields, and Repre- sentatives VVentworth, McClernand, Richardson, Bissell, Young, and Harris, must not be overlooked: that they all did their duty and were deserving of praise. On Jan. 5, 1851, Senator Douglas replied to Judge Breese in the columns of the State Register, assuring him that no injustice was intended to be done him, and reminding him of the fact that when the people of Chicago tendered him and Gen. Shields a complimentary dinner for the part they had taken in procuring the grant of land from the general government, they modestly declined it, and in their letter dechning the honor awarded the principal merit to their col- leagues. To go back of the claims of both of these distinguished gen- tlemen, I suppose it is an historical fact that although Judge Breese brought the plan prominendy before the people of the State by newspaper pubHcations and letters to prominent men, still the credit of originating it really belongs to Lieut. -Gov. Alexander M. Jenkins when in the State senate in 1832.* This was three years before the intelligent friend from Bond County * One year after the first act relating to the construction of railways was passed by the general assembly of the State of Illinois, Jan. 28, 1831. LIEUT. -GOV. ALEX. M. JENKINS' PLAN. 7 whispered in Judge Breese's ear. Senator Jenkins' plan was to build the road from Cairo to Peru. Judge Breese's plan con- templated a line from Cairo to Galena, but when the plan was fully developed, Judge Douglas wrote Chicago as the northeast- ern terminus. Judge Breese said that the reason for this was because Judge Douglas had been investing in Chicago real estate and on that account wanted the road extended to that point. This was an unfair imputation, but a natural one, for Judge Breese to make, because his plan of a central road which was a local one, did not contemplate a branch to Chicago. Many opposed the enterprise in the central part of the State, fearing that a north- and-south line would divert traffic that that section might derive from an east-and-west line through the State. It must be borne in mind, that the prevailing idea at that time was to have the products of Illinois shipped to the South via Cairo and the Mis- sisippi River; but Judge Douglas, who took a broader view of the enterprise, saw the necessity of connecting the lakes with the Mississippi, and the St. Lawrence with the Gulf of Mexico, as well as a connection at Chicago with the various railways then projected or in process of construction from the principal cities of the East, so that the measure would commend itself to congress as a national work tending to benefit the whole country and not a local enterprise for the particular benefit of the State of Illinois. Only in this way could the votes of the members of congress from Pennsylvania, New York, New England, and other portions of the Union be secured, as they did not of course favor any proposition having for its tendency the diversion of trade from the upper Mississippi toward Mobile alone. Judge Breese was named as an incorporator in the first charter granted by the State in 1836 for a central road and having taken so deep an interest in the subject, he felt a commendable pride in the ultimate success of the measure. He was naturally jealous of his position in the matter, hence he could not brook a younger and more active rival. But he was entirely too sensitive in supposing that Judge Douglas had not properly recognized his early efforts in the matter. This feeling he describes in one of his letters to Douglas, in which he says, "In the outset, I will 8 CAIRO CITY-AND-CANAL COMPANY. candidly confess that, upon the subject of the [Illinois-] Central Railroad, with all its concomitants, I am very sensitive, the more especially since I thought I had discovered a studious endeavor on your part and on the part of those with whom you have acted, to conceal from the public my agency in bringing the measure into favor arid in opening the way for successful legislation in regard to it. In none of your speeches and letters you, and others who' have enjoyed your confidence, have made and written, has there been the least allusion to the part I have acted in the matter, nor in any of the papers in the State, supposed to be under your influence. Seeing this, and believ- ing there was a concerted effort to appropriate to yourselves, exclusively, honors to which I knew you were not entitled, I deem it my duty, for the truth of history, to assert my claim, and in doing so, have been compelled, much against my will, to speak of myself and of my acts in regard to it. My whole life will show that it is the first time I have ever exposed myself to the charge of egotism, and under the influence which actuated me, I may have claimed too much." The first act incorporating an Illinois- Central Railroad Com- pany was passed by the legislature of the State of lUinois, Jan. i8, 1836. It was a special charter and granted many valuable privileges. It contemplated rail communication only as far north as the lUinois-and-Michigan Canal. The scheme proved an utter failure. Under the internal-improvement act passed Feb. 27, 1837, its construction was undertaken by the State, without success, as there was neither credit to ensure, or capital to complete it. The appropriation under this act, $3,500,000, was in any event totally inadequate. The Cairo City-and-Canal Company was incorporated March 4, 1837. It was authorized to hold real estate in Alexander County, but more particularly the tract of land incorporated as the City of Cairo. They were to proceed to lay it off into lots for a town to be known as the City of Cairo; they were also empowered to construct dykes, canals, levees, and embankments, for the security and preservation of said city; also to construct a GREAT-WESTERN RAILWAY — HOLBROOK CHARTER. 9 canal to unite with Cache River, and to use water for a canal running to and through the city. Reference to this scheme is made in order to show in a gradual way the origin and progress of the Illinois - Central Railroad; its connection with the canal company was only incidental, Darius B. Holbrook, who afterward figured conspicuously in the effort to obtain a charter for a central road having been connected with the canal company. Five years later, March 6, 1843, the State having abandoned the attempt to build any more railroads, the legislature incorpo- rated the Great-Western Railway Company. This was known as the " Holbrook charter," so frequently referred to in the corres- pondence between Judge Breese* and Judge Douglas. This charter contemplated a "preemption right" only, to Holbrook and his associates, in which the State was to have no interest, instead of a direct grant of land to the State. This company was to consist of the president and directors of the Cairo City- and - Canal Campany, and the board of directors were to be chosen by that company. The road was to be commenced as previously contemplated at the mouth of the Ohio River, and was to run in about the same direction via Vandalia, Shelbyville, Decatur, and Bloomington, and to the same objective point, the Illinois-and-Michigan Canal. Rates of toll were to be established by the directors. The com- pany was authorized to issue bonds, which were to be counter- signed by the president and treasurer of the Cairo City-and- Canal Company. Section 14 provided that whenever the whole indebtedness of the company was paid and liquidated then the legislature should have power to alter and amend the charter as the public good should require. An estimate was to be made by a person appointed by the governor of the value of the work already done by the State, under the internal-improvement act of Feb. 27, 1837, and this was to be paid for by the newly-organized company at any time during the progress of the work. When all the obligations of the company were paid, then the railroad company was thereafter * Judge Breese was elected to the United - States senate, Dec. 18, 1842,. for full term commencing March 4, 1843. 10 VIEWS OF DOUGLAS AND BREESE. to forever pay the State, annually, as a consideration for grant- ing the charter, one-fourth of the net annual income, after the shareholders had received in any one year twelve per cent on their investment; and the act expressly provided that no legisla- ture should at any time so reduce the tolls as to produce less than twelve per cent per annum net to the shareholders. The Great-Western Railway Company, after spending large sums of money in doing work which eventually inured to the benefit of the State, became insolvent, and this third attempt to build a central road proved a signal failure. On March 3, 1845, its charter was repealed by a special act, passed for that purpose. That Judge Breese favored what was known as the Holbrook charter is shown by the fact that on Dec. 27, 1843, he presented in the house of representatives a memorial of the Great-Western Railway Company, praying the right of preemption for Holbrook and his associates to a portion of the public lands over which the proposed road was to be constructed. Judge Douglas, who was in the house of representatives at this time, declined to give this bill his support, very properly insisting that whatever grant was made should be conferred directly upon the State of Illinois, and not upon an irresponsible private corporation that he did not believe would carry out the project, and which he stigmatized as a "stupendous private speculation to enable the Cairo Company to sell their chartered privileges in England." This opposition of Judge Douglas was probably what first excited the hostihty of Judge Breese toward him. Judge Breese refused to coincide with the views expressed by Judge Douglas, and the bill failed of passage. His reason for wishing the preemption to run to a pri- vate corporation was, because he had no faith in the ability of the State to complete the work. This was quite natural consid- ering the fact that they had so signally failed in all previous eff"orts to build the road.' At the next session on Dec. 12, 1844, in deference to the views expressed by Judge Breese, Judge Douglas introduced a bill which substituted the words State of Ilhnois for the Holbrook company, as the party to whom the pre- emption right was to pass; but he appears to have given it a luke- PRE-EMPTION RIGHTS — CHICAGO TERMINUS. II -warm support and it did not pass. At the next session, Jan. 15, 1846, Judge Breese reported another bill to grant to the State of Illinois certain alternate sections of the public lands to aid in the construction of the Northern - Cross and [Illinois-] Central rail- roads in Illinois, but it does not appear that he ever moved to take v.p this bill. At the next session, Dec. 17, 1846, still another bill was introduced by Judge Breese, covering a right of way and a preemption right. It omitted the donations to the State, but permitted it to purchase the lands at a dollar and a quarter per acre upon the condition that it would build a rail- road through them. This bill failed also. In these various efforts, it would appear that Judge Breese was in favor of granting preemptiop rights only, and a right of way, either to a private corporation or to the State. Judge Douglas, on the other hand, insisted that an absolute donation to the State should be made. This was one of the principal points of difference between them. Judge Douglas stated to Judge Breese that if he would consent to this change he would allow him to take all the credit. Another point of differ- ence was in regard to the terminus at Chicago. It is evident that Judge Douglas particularly favored this plan, regardless of whether the road was built to Dubuque or not. And indeed the Eastern members also favored this plan because it con- templated a connection with the lakes; the line from Cairo to Galena being regarded in the East as a sectional scheme, calculated to throw the trade upon the Gulf of Mexico at the expense of the cities on the lakes and the Atlantic seaboard. Judge Breese, on the other hand, did not favor Chicago, as he freely admits. He says in one of his letters: "You will recollect that my bills, all of them, established the roads on the routes defined by our internal-improvement system of 1836 and 1837, on which the State had expended such large sums of money; and that fact was a strong argument, as I thought, in my report. In 1847, you made choice of Chicago as your home, and, as I understood, purcha.sed a large amount of property there. Now neither of my bills touched Chicago; they confined the roads to the old routes — the [lUinois-] Central Road, as then understood, 12 GREAT-WESTERN-RAILWAY CHARTER RENEWED. from Cairo, by Vanda'ia, Shelbyville, Decatur, Bloomington, Peru,, and Dixon, to Galena. A new light broke in upon you when, in conjunction with Mr. Butterfield and others interested in Chicago, a great movement was set on foot to disturb my plans and to- change the route of the [Illinois-] Central Railroad, so as to make it run to Chicago and thence to Galena. You can not have for- gotten how much surprised I was when you informed me of your intention, after you had taken your seat, in December, 1847, to bring forward this proposition, how earnestly I urged upon you,, while admitting the importance of the change, an adherence to the old plan." On Feb. 10, 1849, the charter of the Great-Western Railway was renewed by the legislature of Illinois, to take effect April 13, 1849, the grant running as in the first act, to the "president and directors of the Cairo City- and -Canal Company," with certain others to be associated with them, but under the name and style of the "Great- Western Railway." Among the names of the associate directors will be found those of Justin Butterfield, John B. Turner, Mark Skinner, and Henry Corwith. The new board was reinstated with all the powers and privileges con- tained in the first act, the act repealing the charter to the con- trary notwithstanding. Many additional and valuable privileges were conveyed by the State, including a grant of the right of way and of all the work and surveying done at the expense of the State. The new company was to expend at least one hun- dred thousand dollars within three years, and two hundred thou- sand dollars in each year thereafter until the line was completed from the city of Cairo to the city of Chicago. The governor of the State was to hold in trust, for the benefit of the company, whatever lands might be donated by the general government to the State of Illinois to aid in the construction of the road, anticipating, as it were, the action of the general government, the question of a land-grant having already been freely discussed in congress. Simultaneous with this, Judge Breese, from the committee on public lands — of which he was chairman during the last four years of his term as senator — reported the following bill in the United-States senate, February i, 1849: BILL PROVIDING FOR SALE OF LANDS. 1 3 "A bill to grant the right of way across the public lands and to dispose of said land in aid of the several states in the con- struction of railroads and canals. "■^Be it enacted by the senate and house of representatives of the United States of America in congress assembled, That whenever any state in which public land is situated have, or shall authorize the construction of any railroad or canal, and the route of the same shall have been surveyed and returned to the secretary of the treasury, the right of way on said route, so far as the same is situated on t/ie public land, be and the same is hereby granted for said purpose; and also the right to take stone and timber and materials for said erection on any of the public land adjacent, so long as said land is unsold; and the land for the space of one hundred feet on each side of the middle of said route shall be and remain for that purpose, so long as said canal or railroad is sustained. "Section 3. And it is further enacted. That when the survey of said route shall have been returned to the secretary of the treasury, he shall, at the request of the governor of said state, reserve from public sale all or so much of the public lands within ten miles of said route, as said governor, by direction of the legislature of said state, shall request, and the same shall be retained for said state, and shall be sold and conveyed to said state or to whoever said state shall direct, at and for the minimum price per acre, in such quantities and at such times as said state shall desire, in aid of said construction. Pi'ovided, nevertheless, that said route shall be so surveyed and returned, and said land so reserved, within three years from the passing of this law; and all of said land 7iot actually so purchased and paid for by said state, within ten years from the passing of this act, shall be sub- ject to sale and private entry in the same manner as if the same had not been reserved. And provided further, that this shall not extend to any land but such as is subject to private sale at one dollar and twenty -five cents per acre; and nothing in this act contained shall be so construed as to grant to any state such right of preemption to any land heretofore set apart or reserved for schools, nor to any public land which may have been reserved by 14 GRANT OF ALTERNATE SECTIONS OF LAND. the United States for military or other public purposes, nor to mineral lands, nor to any to which a right of preemption may previously have been acquired by any person or persons." This bill passed the senate, February 13, 1849— was presented in the house by Jacob CoUamer from Vermont — but met with consider- able opposition, and failed of passage there. This bill also, it will be noticed, contemplated only a preemption of lands. As far back as 1848, Senator Douglas had introduced a bill in the United-States senate, granting alternate sections of the public land to the State of Illinois to aid in the construction of a. rail- road from Cairo to Galena with a branch to Chicago. This bill was reported from the senate committee on public lands of which Sidney Breese of Illinois was chairman. It was subsequently taken up and early in May was passed by the senate. The representatives in the house from Illinois all gave it their cordial support, but toward the close of the session it was laid on the table by a small majority. At the next session, 1848-9, Douglas again introduced his bill in the senate, but before any action was had in that body, the Illinois representatives in the house had succeeded in having the bill of the last session restored to its place on the calendar; but congress adjourned without any further action on the bill by the house. In December, 1849, Douglas, with his colleague, Gen. James Shields, who had succeeded Breese, and the Illinois delegation in the house matured a bill looking to the construction of the Illinois-Central Road and its Chicago branch. That bill, which all the Illinois members had a voice in framing, was introduced in the senate by Douglas in January, 1850. During its pendence in the senate, besides receiving the support of the Illinois senators, it was advocated by Henry Clay, William H. Seward, John C. Calhoun, William H. King, Thomas H. Benton, and Gen. Lewis Cass. While the bill was pending, the Cairo City-and-Canal Company induced the legislature of Illinois to pass a measure ceding to that company all lands that might at any time be granted by ACT OF CONGRESS ACCEPTED. 1$ congress to the State, to aid in the construction of the Illinois- Central Railroad. Senator Douglas was still unwilling that the grant should pass to a private corporation direct, and finally- induced Darius B. Holbrook of Cairo, 111., the president of the Cairo City-and-Canal Company to release to the State of Illinois all the rights of that company, which he did, executing on Dec. 24, 1849, on behalf of his company as president, a full release and surrender to the State of Illinois of what was known as the Holbrook charter with all the rights and privileges therein con- tained; in accordance with which, the legislature on Dec. 17, 1851, passed an act accepting this release and repealing all the acts which they had before granted to this company — Jan. 16, 1836, March 6, 1843, ^"d Feb. 10, 1849. Judge Douglas in his letter to Judge Breese of March 13, 1 85 1, well says: "I can well conceive that it might prove better for Mr. Holbrook and his partners, and more effectual for their schemes of speculation for them to have had a preemption than for the State to have had a grant; but I apprehend that you will find it difficult to convince any citizen of Illinois who was not a partner in the speculation, that it was better for the State not to have the lands than to have them, or to be required to pay a dollar and a quarter an acre for them, instead of receiving them for noth- ing under the act of last session. The same act accepted the act of congress of Sept. 20, 1850, granting the lands to the State of Illinois to aid in the construc- tion of a railroad from Chicago to Mobile. The Mobile-and- Ohio Railroad was not however fully completed from Columbus, Kentucky, to Cairo, uiitil 1874. In 1872, the Illinois-Central Railroad Company extended its aid to the Mississippi - Central Railroad Company, and that line was extended from Jackson, Tennessee, to Fillmore, a point nearly opposite Cairo; and thus for the first time was completed an all rail communication from the lakes to the Gulf of Mexico. The bill making a grant of lands to the states of Illinois, Mis- sissippi, and Alabama, passed the United-States senate on May 2, 1850, by a vote of 26 to 14, and was passed in the house on September 17, 1850, by a vote of loi to 73. Mobile was inserted l6 MOBILE — EFFORTS OF JOHN S. WRIGHT. as the objective point by Thomas Childs, jr., of New York, who was at that time largely interested in the Mobile-and-Ohio Rail- road Company. Hon. John Wentworth, in his "Congressional Reminiscences," gives an interesting account of the proceedings attending the passage of this bill in the house — and the State of Illinois is largely indebted to him for the efforts he put forward in that direction — but the claim that he once owned one-fourth of the capital of the Illinois-Central Railroad Company, must be regarded as an extravagance of speech. Hon. George Ashmun of the Springfield district, Mass., and a friend of Daniel Webster, dis- tinguished himself among the non-resident supporters of the bill. It was largely through his influence in the house that the bill was passed. On their return to Illinois at the close of the session. Judge Douglas and Gen. Shields were tendered a public dinner by the citizens of Chicago in consideration of their services in obtaining the passage of this act. In declining the honor, they modestly awarded to their colleagices in the house the full measure of credit for having successfully carried the bill through to com- pletion. John S. Wright of Chicago, worked most faithfully to secure the land-grant from congress to aid in the construction of the Central Road. He wrote and had printed and distributed at his own expense, circulars stating briefly the necessity of the road to the welfare of the nation, and six thousand copies of petitions to congress urging the passage of the act. These peti- tions were prepared in three different forms, so as to meet the wishes of the South, the East, and the State of Illinois, and set forth the advantages to be gained by each section. At that time, such documents were mailed free to postmasters, and he kept a clerk busy for weeks sending these to every postmaster between the lakes and the Gulf The requests to the postmasters to get signers and forward the petitions to their congressmen were promptly attended to, and the petitions came in by thousands, and had much influence with members. Wright also went to Washington and spent* considerable time laboring for the passage of the bill; he also published a pamphlet in which he took the * Address of Augustine W. Wright before the Chicago Historical Society. GRANT TO ILLINOIS, MISSISSIPPI, AND ALABAMA. 1 7 ground that the grant was of such immense value, it should go ■direct to the State and that it should hold the lands and build the road from the proceeds of their sale. He wrote: "the State would be everlastingly dishonored if the legislature did not •devise laws to build the road, and disenthrall the State of its enormous debt besides, out of the avails of this land grant." The suggestion was not altogether unfeasible, but it is exceed- ingly doubtful whether the State could have carried out the project as successfully as a private corporation; judging retro- spectively, it is fair to presume that it would have made another and signal failure in such an attempt. On Sept. 20, 1850, the act passed by the thirty-first congress, ■on the 17th of that month, was approved, "granting the right of -way and making a grant of lands to the states of Illinois, Missis- sippi, and Alabama, in aid of the construction of a railroad from the southern terminus of the Illinois-and-Michigan Canal to a point at or near the junction of the Ohio and Mississippi Rivers, Cairo, with a branch of the same to Chicago, and another via the town of Galena to Dubuque in the State of Iowa." Gov. William H. Bissell, afterward a solicitor of the company, was in the house at the time this act was passed. This was accomplished after repeated attempts had been made, beginning in the year 1843, under the leadership of Sidney Breese. Augustus C. Dodge, senator from Iowa, suggested the amendment providing for the termination at Dubuque. In order to aid in the continuation of this road from the mouth of the Ohio River to Mobile, similar rights were conferred upon the states of Alabama and Mississippi. Mobile was the objec- tive point on the south, and the Mobile -and -Ohio Railroad par- ticipated in the advantages of the grant, receiving its share of the public lands through the states of Alabama and Mississippi. The evident design was to promote traffic, particularly in food prod- ucts from Chicago and the Northwest and cotton from the Gulf States to the South and to Europe via Mobile, but the shallow- ness of the water in Mobile Bay and the consequent expense ■of lighterage and of other charges was an insuperable objection to foreign shipments via that point, and to this extent, the plan of 2 1 8 MOBILE AND NEW ORLEANS— DUBUQUE BRIDGE. connecting the lakes with the gulf was a failure.* The construc- tion of the jetties at the mouth of the Mississippi River, at a later date, placed New Orleans in a more favorable position. Besides the immense traffic carried to that point by rail, a large quantity of corn is shipped to the latter city in barges from St. Louis for trans- shipment abroad. The grant of lands referred to was to cover alternate sections in even numbers within six miles, if vacant lands to this extent could be found; if not, then within fifteen miles. All preemption rights were to be respected, and in accord- ance with this provision, the Illinois-Central Railroad Company afterward accepted payment for such lands from actual settlers at the government price. The act further provided that the con- struction of the road should be commenced at Cairo on the south, and at the Illinois-and-Michigan Canal on the north, simultane- ously, and continued from each of said points until completed, after which the branches to Chicago and Dubuque, Iowa, were to be extended. The provision, as to the extension to Dubuque, was a singular one to apply to a road that depended upon the State of Illinois for its charter — it assumed that a bridge was to be constructed across the Mississippi River between Dunleith and Dubuque connecting the two states, but made no requirement as to its construction. In point of fact, this bridge was not built until nineteen years after — in 1869 — thirteen years after the rail- road was completed, and then under a separate charter.t Fifteen years after its completion, the railroad company acquired a con- * A plan is now on foot for deepening the water in Mobile Bay which if successfully carried out will add materially to the prosperity of that city. Mobile Bay, from Mobile to Fort Morgan, is 36 miles in length with a varying width of from 10 to 20 miles. During the past five or six years, the government has been making small appropriations for the purpose of dredging out a channel to the depth of 23 feet and 300 feet in width, to admit of vessels drawing 23 feet of water coming up to the wharves of Mobile. This year — 1890, there is an appropriation of $350,000 for continuing this work. It has passed the house and if not cut down in the senate, it will enable a considera- ble amount of work to be done in the next year upon this channel. Mobile is improving and from its close proximity to the high seas ought to be the most important port on the Gulf coast for reaching the islands in the Gulf and West Indies, and Central and South American countries. + The Dunleith -and- Dubuque Bridge Company. IOWA LINES CONSTRUCTED. ig trolling interest in it, thus fully perfecting the original design of a continuous railway from Cairo to Dubuque.* The grant of land was to apply to the main road and branches, respectively, in quantities corresponding to the length of each, and only to be disposed of as the work progressed. All lands that had been previously granted to the State in aid of the lUinois-and-Michigan Canal were to be reserved from the opera- tions of the act, and the price of these was to be increased to double the minimum price of government lands. So that one effect of the grant was to immediately enhance the value of the canal lands. The grant from the United-States government was to go direct to the State of Illinois for the purpose named. The railroad and branches when completed were to remain a "public highway" for the use of the government, free from toll or other charge upon the transportation of any property or troops of the United States. That is to say — the use of the road bed should be allowed the government, but the railroad companies should not be obliged to furnish equipment and men to handle the business. Consequently it was mutually agreed, that the government should be entitled to a reduction of thirty- three and one -third per cent from the regular tariff rates on all transportation conducted for their account, this percentage representing the value of the use of the highway or road bed. The United-States mails were also to be trans- ported over the road for such compensation as congress might direct. In case the road was not completed within ten years, the State of Illinois was to be required to pay back to the United * October 13, 1867, the Illinois-Central Railroad Company leased the Du- buque-and-Sioux-City Railroad extending from Dubuque to Sioux City, a distance of 143 miles, for twenty years with privilege of taking the same in perpetuity. The lease included the Cedar-Falls-and-Minnesota Railroad extending from Waverly north to Mona, a distance of 7S'/i miles. A year later, it leased, upon the same terms, the lowa-Falls-and-Sioux-City Railroad extending from Iowa Falls to Sioux City, a distance of 184 miles. In 1887, it constructed the Cherokee-and-and-Dakota Railroad from Onawa to Sioux Falls, a distance of iSi}4 miles, and the Cedar-Rapids-and-Chicago Railroad from Manchester to Cedar Rapids, 42 miles; making a total mileage now operated, west of the Mississippi River, of 600 miles. 20 FIRST MEETING OF INCORPORATORS. States the amount which it might have received upon the sale of any part of the lands and to reconvey any lands unsold. In a small and dimly-lighted room at No. i Hanover Street, a little narrow street leading out of Wall Street, in the city of New York in the early spring of the year 185 i, there met a number of gentlemen who were known in law as the incorporators of the Illinois-Central Railroad Company. It was no new scheme that they met to consider, but an old one they were about to revive. In entering upon this great work, they were not indulging in mere speculation or experiment; many of them had been connected with other successful enterprises and this experience helped them to form a proper judgment in the prosecution of the work they were about to undertake. Probably no body of incorporators, or directors as they afterward became, was ever imbued with more earnest determination, confident reliance, pride of undertaking, and honesty of purpose. And it may be added that no corpor- ate body was ever formed that was composed of men of more indomitable energy, integrity of character, business capacity, sagacity, and foresight. They were men who lived and moved in the healthy atmosphere of conmiercial probity and stood high in the estimation of their fellow-men. In social life, their estab- lished reputations gave them a standing among men that could not be disputed. In the prosecution of their trust, the interest of the shareholders they represented was regarded as identical with their own. The shareholders in turn appreciated this and whatever mistakes were made were promptly overlooked. This feeling of mutual confidence strengthened the hands of the board in all they undertook and gave character to the enterprise abroad. The enterprise upon which they pinned their faith, they pro- moted and sustained to a large extent with their private fortunes. It is true that they had much to stimulate them in their efforts — a promise of two million and a-half of acres of beautiful, rich, and fertile prairie land was no mean incentive to urge them on. Yet it certainly required no little amount of courage to take up a pro- ject that had already been three times attempted, twice by organ- ized corporations and once by the State of Illinois, each time MOTIVES GOVERNING THEM. 21 with the same result — disastrous failure. But in this instance, whatever might be their fate as individual investors, the benefit to be conferred upon the State of Illinois by the successful accomplishment of the work would be not less marked. When the dark-days of the panic of 1857 overshadowed them, they might have abandoned their trust and sold their respective interests for what they would bring, but this would have been to them a poor substitution for the reahzation of their plans, and such an idea does not seem to have entered their minds. They knew, moreover, that there were those who had been induced to invest their money in the enterprise because their names had been identified with it, and they felt that they were resting under a moral obligation to save these from pecuniary loss if possible. It is very refreshing to look back in the history of American railways and consider personal character, and I wish to pause here to offer tribute to the characters of certain men connected with this early and important enterprise in the history of our State, most of whom it was my privilege to know and to some of whom, I was placed under personal obligation. Most prominent among those who were instrumental in bring- ing this great work to a successful termination, was Jonathan Sturges who was one of the incorporators of the company, and a director from February 10, 1851 to May 28, 1862; he was again elected, May 17, 1868, and held the office until the time of his death, Nov. 28, 1874. He was also acting-president at one time. In the management of this prop- erty, he applied the same rules of commercial integrity that were employed in his own business. In the days of its sorest trials, Mr. Sturges proved the main-stay of the Illinois-Central Railroad, and in the time of its greatest financial depression when the price of its shares declined, his great fear was that some who had been induced to purchase them owing to his pfficial relation with the company, might suffer loss. Mr. Sturges was born at Southport, Ct, March 24, 1802. He was one of the honored mer- chants of the city of New York. His business-house was estab- lished about 1834 and was then Reed and Sturges; afterward it 22 JONATHAN STURGES. became Reed, Hempstead and Sturges, and later, Sturges, Ben- nett and Company, wholesale grocers at No. 125 Front Street. He was elected a member of the chamber of commerce, July i, 1834, and was elected its vice-president in 1863, and retired from that office in 1867. The following is an extract from a letter addressed to Mr. Sturges by his brother merchants, Dec. 30, 1867, on the occasion of his retiring from business and inviting him to meet them at dinner: "Your life among us of nearly half-a century in the same locality in Front Street, we can truly say has been such as commends itself to every one both old and young, who regard that which is true, just, and noble, in mercantile character." Mr. Sturges was a liberal patron of the fine arts, and was elected an honorary member of the National Academy of Design in 1837, and at that time and through all the earlier years of the society, was one of its best friends. He was also a member of the old Sketch Club which is now continued under the name of the Century Club. He was among the first to recognize and patron- ize American artists: the works of Coles, Kensett, Cropsey, Jarvis, and Church, adorned the walls of his beautiful home, and form today a valuable collection of purely American paintings. He was a leading and devout member of the Presbyterian church, a christian of genuine humility, and one who recognized his responsibility to God. His religious behef was reflected in his daily life, presenting a noble example to young men who could learn from him to prize what is most excellent in the pursuits of life. After his retirement from active business, he devoted much of his time to works of benevolence. He was always generous in his gifts to the worthy poor and was closely identified with many of the leading charities of the city, to the support of which he made liberal contributions in his life time; and these were continued even after his death, for, though in his will he omitted to make any special bequests of this character, the twelfth clause of his will provided as follows: "1 have omitted in this will to make bequests to various objects and systems of benevo- lence in which I feel a deep interest, as I desire to charge each of my children and descendants with the responsibility of admin- CHAMBER -OF -COMMERCE TRIBUTE. 23 istering the means placed in his or her hands as one who must give an account thereof; they know my views arid practice in this respect and the objects I cherish, and I confidently hope they will always realize the happiness of promoting, as they may be able, the best interests of our race, and of dispensing of their abundance to the rehef of those who may be straitened under the visitations of adversity." On Dec. 3, 1874, the directors of the chamber of commerce ordered the following minute to be entered upon their record: "In 1868, Mr. Sturges retired from active business with an ample fortune and a reputation for probity and honor which is better than earthly riches. He had come to be regarded as the foremost man in the tea and coffee trades which he had followed for so many years, and was recognized as a wise counsellor, and a warm and steadfast friend. The good example which he lived doubtless did much to impart to the whole body of traders, of which his house was a conspicuous member, that character for integrity and upright dealing which it has always borne — which it still maintains. * * Mr. Sturges was a prornoter of many important undertakings, as well as an able coadjutor in all, and in the discharge of his various and responsible duties, he was always governed by a rectitude of purpose and unswerving fidel- ity to his trust. Good sense and a sound judgment were the distinguishing characteristics of his great worth in all corporate bodies. As one of the founders and directors of the Bank of Commerce, as director and acting-president of the Illinois-Central Railroad Company, as one of the proprietors and directors of the New-York and New-Haven Railroad Company, and as vice- president of this association, he was widely known and held in high regard. Nor was it in the walks of business, in the counting- room, and in the exchange, that he was chiefly honored and beloved — he was a recognized patron of art. In the church, he manifested the virtues of a christian; in society, the unostenta- tious attributes of a gentleman; in the service of his country, the devoted zeal of a true patriot; as a citizen, the love of the philanthropist, never forgetting his obligations to the poor, the sick, and the crippled, but extending to all the benefactions of a 24 GEORGE GRISWQLD. warm heart and of an open hand. The homage we paid to the good man when hving we desire to perpetuate in hallowed mem- ories, and to this end, we inscribe on our minutes the sentiments that are graven on our hearts — of gratitude for this life of un- common beauty, of sincere sorrow for our own great loss, and of our sympathy for the family of the bereaved to whom it is ordered that a copy of the foregoing be transmitted after being signed by the officers of the chamber." He died in the city of New York, Nov. 28, 1874. The Sturges Pavilion, within the grounds of Bellevue Hospital, was erected as a ir.emorial to Mr. Sturges at a cost of $30,000. It is in fact a surgical operating-room furnished with every necessary appliance for skilfully conducting amputations and other operations. It was found, that of the operations performed within the hospital walls, a large percentage proved fatal owing to the unhealthy surroundings; since the operations have been carried on in the pavilion this percentage has been very materially reduced. George Griswold was of the firm of N. L. and G. Griswold who occupied a rough - granite store at No. 71 and 72 South Street in the city of New York. This building was a fitting emblem of the standing and credit of the house. They were engaged in the China trade, sailijig the good ship Panama, and did a very large business, selling Canton goods, teas, etc. J. N. A. Griswold, son of George Griswold, who in 1855 became presi- dent of the Illinois-Central Railroad Company, was sent as super- cargo on the Panama to China, and resided there for many years. Mr. Griswold came to New York from Lyme, Conn., in 1*74, and in i^fe the house was established. In those early years, the mer- chants ruled the city, and participation in politics was regarded not only as honorable but as an imperative duty. He made an excellent presiding officer at political or popular meetings for any purpose. He was always ready to promote the interests of the city and added largely to its prosperity in his day. He had many noble traits of character, and more than one young merchant owed his success to the help and counsel Mr. Griswold afforded. Although well advanced in years at the time, he took part LEROY M. WILEY. 25 in the organization of the Illinois-Central Railroad Company, in 1851, he was a man of such wonderful energy for his years and possessed of such remarkable will power, that many of the younger men engaged with him in this important work, found it no small task to keep up with his movements. He was a director in the Bank of America for many years, and was also interested in many institutions of a public character in the city of New York. He was a member of the Presbyterian church, attending Dr. Pott's church. He died in New York, Sept. 18, 1859, in the old homestead which he had occupied for so many years at No. 9 Washington Square. Leroy M. Wiley was born in Hancock County, Georgia, on Oct. 30, 1794. His father was born in South Carolina, and his mother in Mecklenberg County, North Carolina; they were both of Scotch-Irish descent and were among the early settlers in Hancock County, Georgia. About the year 1800, they re- moved to Baldwin County and resided on a farm near Milledge- ville, which had been made the capital of the state. Here his father died, leaving his widowed mother with seven children in limited means to fight the battle of life alone and to provide for their support and education. Under these circumstances, Leroy the eldest son, then only fifteen years of age, was placed in a dry-goods store in Milledgeville to earn his living and make his way in the world. With a limited education, by industry and integrity, faithfulness and close application to business, he soon gained the confidence of all those with whom he came in contact and laid the foundation for his success in life. Upon his arrival at manhood, Mr. Wiley entered into business with Thos. W. Baxter, who had married his eldest sister, under the name of Wiley and Baxter, and for many years this firm con- tinued in Milledgeville doing a large and profitable business. After the settlement of Macon, they opened an additional store in that city where they were equally successful. In 1832, the firm was divided, Baxter moving to Macon, and Wiley went to Charleston, S. C, at the invitation of the Messrs. Parish of New York and became associated in business with them under the 26 LEROY M. WILEY. firm-name of L. M. Wiley, Parish and Company in Charleston, and Parish and Company in New York. They did a large and lucrative business extending throughout the Southern States, and thus Mr. Wiley became one of the leading merchants of the South and a man of wealth. After the retirement of the Messrs. Parish from business, Mr. Wiley removed to New York and became the head of the house under the name of L. M. Wiley and Company, and afterward as a special partner in the firm of W. G. Lane and Company, continuing in business until 1854. In the winter of 1853, he was called on an urgent engagement to StLouis, and through the exposure of that journey, then partly made by stage-coaches, and from general overwork, he had a slight attack of paralysis, and at the earnest solicitation of his friends and relatives, he retired from all mercantile pursuits. From this time, he devoted his time and energies to the management of his large estate and to the various enterprises in which he was engaged. He established a large flour-mill and iron-works on the Etowah River near Cartersville, Ga., and became interested with others in various railroad companies, and these, together with his plantation interests, occupied his time. He was one of the original corporators and directors of the Illinois-Central Rail- road Company from 1851-64. He was also a director and largely interested in the Great-Western Railroad Company of Illinois, after- ward the Toledo,-Wabash-and- Western Railroad Company. At the commencement of the war, influenced by education, association, and sentiment, he removed South to protect his interests and to cast his lot with his brothers and sisters, and remained quietly at his plantation near Eufaula, Ala., which henceforth became his home. During his absence South, his seat in the board was declared vacant, May 19, 1864, on account of absenteeism. After the restoration of peace, he returned to New York, resumed his old quarters at the Astor House, and engaged again in the various railroad enterprises in which he was interested. The board of directors of the IlHnois-Central Railroad Company, out of respect to Mr- Wiley and in recognition of his valuable services to the company during its early organization, again elected him a director. May 29, 1867, which office he held until the time of his death. ROBERT RANTOUL, JR. 27 Mr. Wiley was a man of fine physique and indomitable energy and a gentleman of the old school. He was scrupulously honor- able and just in all his transactions, never seemed to know what fatigue was, and his invincible will power was felt among his subordinates in all the ramifications of his extensive business. In society, he was courteous and polite, and among his relatives, he was exceedingly kind and generous. His three sisters were all left widows with large families of children, and two of them with- out means. The families of these two he supported, and educated their children, and all of his nieces he educated, giving them the very best advantages the country afforded. At the commencement of the war, he had by his own exertions and without entering into any speculations, accumulated a fortune estimated at two millions of dollars, at a time when millionaires were not so plenti- ful as they now are. During that unfortunate struggle, much of his property was greatly depreciated in value, and this, together with the effects of emancipation, swept away one-half of his estate, which, when he died, was valued to be about one million of dollars. Having never married, he gave his entire property to his three sisters and the children of his deceased brothers. In January, 1868, Mr. Wiley, while on his journey from Georgia to New York, was again attacked by disease of the brain, and his friends, finding him in this condition, removed him to the home of Mr. Gresham, who had married his niece, in Macon, Ga. But he did not improve, and was carried to Welanee — the name he gave to his beautiful home in Alabama — and there, under the tender care of his sisters and nieces, he quietly passed away, April 16, 1868, and his body lies ^t rest in Macon by the side of his mother. Robert Rantoul, jr. was an American statesman, born in Beverly, Mass., August 13, 1805. He was graduated at Harvard College in 1826 and was admitted to the Essex bar in 1827. In 1837, he was appointed a member of the Massachusetts board of education. In 1838, he removed to Boston, and in 1843 was appointed by President Tyler collector of that port, and in 1845, United-States district-attorney for Massachusetts. Hiram Ketchum 28 FIRST DRAFT OF CHARTER. a celebrated lawyer of New York and an intimate personal friend of Daniel Webster, suggested the latter's name as a fit person to draft the charter of the Illinois-Central Railroad, but Webster could not give it attention and named Rantoul, who did most of the work at his Boston office. Hon. George White, now judge of probate for Suffolk County, was then a student in Rantoul's office, and copied out the first draft in his handwriting. Probably Ketchum aided Rantoul in formulating the charter; there were, however, radical changes made in it before its final passage, which Mr. Rantoul personally superintended in Spring- field. By a coincidence, while thus engaged, he was elected by the Massachusetts legislature to serve out Daniel Webster's term in the United-States senate, which had been temporarily filled by Robert C. Winthrop under an appointment of the governor, enter- ing the senate, Feb. 22, 1851, twelve days after the Illinois-Cen- tral Railway charter was passed. After Mr. Rantoul's services of a few weeks in the senate, he was succeeded by Charles Sumner for the long term. He was elected to the house of representatives the same year, 1851, for the first time, and died before his term expired, Aug. 7, 1852. Said his historian: "Of the great men who in 1852 were sum- moned to "put on immortality," Robert Rantoul, jr., in all the elements of moral worth, intellectual activity, practical usefulness, and beneficence to mankind, was one of the greatest. His life was a scene of incessant labor in the cause of liberty, justice, and humanity. Of every subject to which he directed his atten- tion gaining with unparalleled facility a profound knowledge, a thorough mastery, he devoted' his acquirements with an honest and inflexible purpose to advance the welfare of society; yet he sounded no trumpet before him. His manners were gentle, quiet, and unostentatious. * ^ Few men have been called from the scenes of American civil life whose death caused more unaffected sorrow and tender grief" One of the laudable acts of his life was the effort he made for the abolition of capital punishment and his report is still one of the standard authorities on the subject. In poHtics, Mr. Rantoul was a democrat and an earnest advocate of free- trade. VALUE OF ILLINOIS LANDS. 29 At the time application was 'made to the legislature of Illinois for the Illinois-Central Railroad charter, there were certain West- ern capitalists who desired to secure it, as they did not wish the project to go to Eastern capitalists. Abraham Lincoln was employed on their behalf but he was unsuccessful. When in 1863, Rantoul's son — the present mayor of Salem, Mass. — was introduced to President Lincoln at the White House, the latter referred to this tact and acknowledged he did all he could to stop it, but added with a laugh and slapping his lank thighs, "Your father beat me, he beat me!" Rantoul was the author of an interesting pamphlet entitled : "Letter on the value of the public lands of Illinois" which he wrote in 1850. It was an inquiry as to the prospective value of lands in Illinois and an examination of the considerations which would probably influence the settlement of the State. In this pamphlet, he compared the lands of our State with those of the older states and showed how the latter had been affected in value by railway construction. The pamphlet teems with valuable statistical information, and we quote extensively from it. At that time, 1850, it appears that the unsold lands in Ohio, Indiana, and Illinois, were as follows : Ohio, containing 25,576,960 acres, had unsold 367,742 Illinois, M 35,459,200 I. I. 1. 11,449,471 Indiana, n 21,637,760 n n " 1,511,266 He estimated that the eleven million acres of land not taken up in Illinois would supply a population of little more than four hundred thousand persons with twenty-eight acres each, and pre- dicted that this increase at the ordinary rate would occur in six or seven years, and that if the rate of increase should not be checked, five hundred and sixty-five thousand persons would be added to the population in eight years, and nine hundred and five thousand in twelve years, this at the ordinary rate. He then went on to show what, in his belief, would be the effect of the settlement of the Illinois -Central Railroad lands, and estimated the following increases in population by land districts : 30 DEBT OF ILLINOIS — EFFECT ON IMMIGRATION. DISTRICT RATE OF INCREASE 1'OPULAT'N, i86o Quincy and Chicago, 66^ per cent, 525,225 Dixon, Danville, and Vandalia, 240 n 640,009 Other five, 80 n 633,620 T, 798-854 His prophecy was completely fulfilled. The population of our State in 1850 was 851,470 and in ten years, 1860, it had reached 1,711.951- Referring to the debt of Illinois and its effect upon emigration to that State, he says : "During the last ten years, Illinois has labored under a debt of a magnitude absolutely overwhelming, when compared with her resources at the commencement of that period. She had then before her a very gloomy alternative. If she endeavored to meet even the interest of her obligations, she would be crushed under the weight of an intolerable taxation, from which her most able and enterprising citizens would have fled into other states. If she abandoned the effort in despair of the possibility of success, then she must suffer all the consequences of the total loss of credit consequent on her bankruptcy. In neither case, did it seem to be probable that her public-works could be made avail- able toward the discharge of the debt incurred for them or aid to develop the resources of the State. Why should an emigrant from the old world, or from the states, with the broad valley of the Mississippi open before him where to choose, voluntarily assume a full share of these embarrassments by becoming a citizen of Illinois? The answer which the emigrants have given to this question may be seen in the settlement of Wisconsin, which state, with a colder climate and harder soil than Illinois, has added to her population more than eight hundred and eighty per cent in the last ten years — a progress unprecedented in the history of the world in any agricultural community. "Ten years ago, Illinois, borne down with debt, had not only not a mile of railroad, or canal, or plank road, in operation within her borders, but no reasonable plan had been agreed upon by which she could hope to diminish her debt, discharge her interest, or acquire facilities of communication. She has now her canal EFFECT OF RAILWAYS ON POPULATION. 3 1 debt rapidly approaching toward extinction, revenues sufficient in a very short time to discharge her whole interest without increasing the rate of taxation, one hundred miles of canal, and a still greater length of railroad in highly profitable operation, with plank roads in great numbers paying dividends large enough to insure the early construction of several thousand miles more. Not only so but she has before her the certainty that she will be supplied with more than twelve hundred, perhaps it may be safely said, more than fifteen hundred miles of railroad in the next five or six years; and channels are already constructed to convey her products, transported to her borders on these railroads, through Michigan, Indiana, and the Eastern states, to the sea- board and abroad. If, paralyzed as she was for the last ten years, her growth was at about the same rate as that of Michigan, hav- ing less than half as dense a population, with her railroads and her lake borders and her steamboats; about the same as that of Missouri with only two-thirds as dense a population, and with the Queen City of the Great River in her centre receiving the whole current of emigration up the Mississippi; about the same numeri- cally as that of Wisconsin and Iowa together, these two starting with a hundred thousand square miles of land unoccupied, wholly unencumbered with debt and accessible from the lake and from the river — why should she not, in her present healthy condition, her limbs unshackled and her pathway free before her, advance, with the step of a giant refreshed, toward her natural position among the first in population, power, and wealth of the North American confederacy of states? * * But, it may be asked, will not a larger portion of the additional population coming into the valley of the Mississippi, diverge into the new states and so be drawn off from Illinois? "Certainly not to the inaccessible portions of those states — because a bushel of corn costing six cents which can be carried for thirty cents to a market where it will sell for thirty-six cents, is not worth so much as a bushel of corn costing twenty cents which can be carried for ten cents to the same market and sold for the same price of thirty-six cents. A saving of twenty cents per bushel on the transportation of your corn is the saving of ten 32 ILLINOIS GRAIN SHIPMENTS. dollars on the crop of an acre reckoned at fifty bushels ; and this sum is twenty per cent interest on a first cost of fifty dollars per acre. It will be better economy, therefore, taking the article of corn as a criterion, to buy land in the south part of the Danville district at fifty dollars per acre, when the prices by competition for it shall have been raised so high, and you have a double-track railroad within twelve miles of your farm, than it would have been to buy the same land at a dollar and a quarter per acre when there was no practicable outlet for your produce. "Corn was carried during the summer from a point several miles above the mouth of the Illinois River down to the Illinois, thence up that river to the canal, thence to Chicago, and thence to New York, and there sold at a profit. Corn was not low in Illinois last summer, but in New York it was considerably lower than the average of the last four years. Corn will go to market cheaper from the lands in the Danville district on the line of the Chicago branch of the Central Road than from the point of shipment on the Mississippi first referred to. Corn is so cheap and bulky that all other agricultural produce may be carried much further on the railroad without too great an addition to its price. All produce for which a market can be found at the seaboard will bear the cost of transportation from Illinois. "Nor need we be alarmed at the vast amounts of produce which these unsettled tracts are capable of yielding. The North- west never received so great an accession to its population in any equal period as in the last five years; the emigration from foreign countries, most of which passes to the Northwest, having risen to 299,610 in 1849, ^"d to 315,333 in 1850, instead of less than 50,000 a year as it was formerly. Yet with this unparalleled increase of laborers cultivating the richest soil of the world, with the new avenues to market that have been opened during that time, all pouring to the seaboard the surplus of a succession of bountiful harvests in quantities unheard of before, and at much lower freights than before, the supply has not kept pace with the demand as is shown by the fact that agricultural products, almost without exception, have borne much higher prices during the last four years than during the four next preceding. The following FARM-PRODUCT PRICES 1843-6. 33 are the average prices of the whole quantities of some of the principal articles exported from the United States during the two periods : Flour, 1843-4-S-6, $4.79 1847-8-9-50, $5.77 Wheat, 11 11 -96^ M II 1.29}^ Corn, II n .55 M 11 .71}^ "The prices of pork and other animal products differ also in about the same proportion. The difference extends also to southern products, so that labor will not be diverted at the South from their peculiar staples, to wheat, corn, pork, and the articles which now employ Northwestern labor. The prices were : Cotton, 1843-4-5-6, $ .068728 1847-8-9-50, $ .08417 Rice, n 11 17.66 M 11 22.24 Tobacco, 11 II 52.15 " " 59-47 "Stimulated by this rise of prices, the exports of the last four years exceeded those of the four years previous in vegetable food and the products of animals alone by about one hundred millions of dollars in the total : The animal products, exported from 1843-46 inclusive, were valued at $24,153,331 And the vegetable food at - 47!335>438 Making an aggregate of $71,488,769 "But, during the period from 1847-50 inclusive, the exports of animal products were about doubled and amounted to $47,354,655 The vegetable food was more than doubled, being 123,720,738 Total $171,075,393 Subtract amount for previous four years, 71,488,769 $99,586,624 "The demand for Northwestern products for exportation is, however, far from being the only dependence of the producer. The home demand increases and must continue to increase in a ratio even greater than the foreign demand. As the country grows richer, a larger proportion of its population is withdrawn from agricultural pursuits to be employed in manufactures and mining, and in the management of internal exchanges and trans- portation, and foreign navigation and commerce. AH these 3 34 COAL AND IRON PRODUCTIONS. persons ceasing to grow their own food and consuming freely, since, taken as a whole, they have ample means to purchase, create a continually expanding demand, which for the last five years at least, has not been overtaken by the supply. This prog- ress in this country is far beyond that of any other part of the world in the rapidity with which it proceeds. This communica- tion would extend to too great a length if I should collect all the elements which would be necessary to judge accurately how fast this change goes on. But for the present purpose and with a view to contrast the multitudes of men devoted now to other than agricultural pursuits with the small numbers of a time not far dis- tant, let us compare a few particulars of the years 1830 and 1850. "In the year 1830, the anthracite coal sent to market from the mines of Pennsylvania was less than 175,000 tons. In 1850, it was about twenty times that amount. In 1830, the iron produced in the United States was about 165,000 tons or about as much as Great Britain produced in 1800. In 1850, the United States produced about four times as much as in 1830 or about the same quantity that Great Britain produced in 1830. The cotton man- ufacturers in the United States consumed in 1830, 45,000,000 of pounds of raw material; in 1850, 270,000,000 of pounds or six times as great a quantity. "The instruments of transportation compare as follows, after an interval of twenty years only: 1830 1850 Miles of canal in operation, 1,277 31698 Miles of railroad in operation, 73 8,779 Miles of railroad in construction, 338 1 1,000 Tons of shipping, 1,191,776 3>535>4S4 Tons of shipping built in the year, 58,094 272,218 Number of steamers built in last five years, 196 965 "The imports of the year 1830 were $70,876,920, but in 1850 they had risen to $178,138,318. This increased purchase of course took off increased quantities of products to pay for it The imports in the four years ending with 1830 were $313,363,- 339; for the four years ending with 1850, they were $627,519,323, while the exports for four years ending in 1830 were $300,797,692, and for the four years ending in 1850, they were $610,339,598. INCREASE IN IMPORTS AND EXPORTS. 35 The imports having doubled in twenty years, the exports have doubled also. Has the whole demand, both domestic and foreign taken together, been sufficient to keep up the prices of the surplus products of the Northwest, as compared with the prices of manu- factured and imported articles which the farmer purchases with the disposable portion of his crop? The answer to this question determines whether the inducements to settle in the Northwest are gaining strength ; /i^r it is the amount wkick his surplus will purchase that determines the question whether the farmer will grow rich or poor. "If we compare the four years with the four preceding, we shall find: 1. That goods manufactured in the Eastern States have become much cheaper. 2. That imported articles have grown cheaper. 3. That agricultural products command much higher prices than before.* 4. That the cost of transporting agricultural produce from the West to the seaboard, and manu- factured and imported articles from the seaboard to the West has been materially diminished and is Hkely to be still more so. "Each of these four changes is of vast importance to the settlers on public lands, and their combined influence has caused wealth to pour in like a flood into those sections of the Northwest having convenient access to the markets of the world. Of the effect of this tribute of wealth upon the accumulations of those communi- ties who receive it, I give as an instance, that the wealth of the thirteen northern counties of Illinois was six times as great in 1849 as it has been nine years before in 1840, as follows: Population and valuation of the thirteen counties on the line- of the Chicago-and-Galena Railroad in 1840 and 1849: * True at the time he wrote but since then greatly changed. At this time- no industry is suffering such depression as that of agriculture. A report of the State Board of Agriculture of Illinois for the year 1889 shows that the total value of the corn crop for 1889 in Illinois was $58,337,049, and that the total cost of production of the same was $68,272,872, making a total loss to the farmers of Illinois for the year 1889 of $9,935,823. There would appear to be something wrong in the reciprocal relations of a country when for the past twenty years those of its people who produce the real, wealth of the country have been gradually getting poorer, and have been compelled to use a necessary article of food (corn) for fuel. And yet this, has been done for many years throughout the corn-belt of Illinois. 36 POPULATION AND VALUATION OF LAND. COUNTIES POP. 1840 1850 VAL. 184O VAL. 1849 Jo Davies, 6,i8o 18,767 383.715 2.785.22s Stephenson, 2,800 11,666 125,485 837,685 Winnebago, 4.609 ii,73' 222,630 1,564,617 McHenry, 2,578 15,800 88,930 1,545.277 Lake, 2,634 14.134 95.385 1,222,088 DeKalb, 1,697 7,544 66,945 720,108 Kane, 6,551 16,242 289,565 1,442,001 DuPage, 3,535 9.290 196,290 943.503 Cook, 10,201 43.280 1,864,205 7,617,102 Boone, 1,705 7,627 55'99o 717.292 Kendall, new 7,730 1,205,739 Carroll, 1,023 4,586 65,345 37o,372 Ogle, 3,479 10,020 175.555 971.230 46,992 178,417 3.630,040 21,942,239 Population in 1840, 46,992. Valuation, $3,630,040; per head, $77-25- Population in 1850, 178,417, by United-States census. Deduct 15,000, increase 1849 to 1850. Population in 1849, 163,417. Valuation, $21,942,239; per head, $134.27." John F. A( Sanford was an incorporator of the lUinois- Central Railroad Company and one of its directors from Feb. 10, 1851 to March 18, 1857; he was of the firm of Pierre Chouteau, jr. and Company, extensive traders in furs and other commodities with the far-northwest country — they had warehouses in St. Louis and New York. Chouteau was also a director of the company from 1857 to i860. He was born in St. Louis, Jan. 19, 1789. He was of French extraction, his father and uncle, Auguste, were the founders of the city of St. Louis and gave it its name ; they were both born in New Orleans. Pierre was at first a clerk with his father and uncle, who were then largely engaged in the fur trade with the Indians, but soon entered into business for himself. May 1, 1813, Berthold and Chouteau opened their new firm in .St. Louis with a general stock of merchandise. This was the ^origin and foundation of what afterward, by the addition of two CHOUTEAU — AMERICAN FUR-COMPANY. 37 new partners — John P. Cabanne' and Bernard Pratte, sr. — with their added capital, became the great and wealthy "American Fur- Company" to trade with the Indian tribes on the Upper Missouri; and which for many years almost monopolized the fur trade of the upper country and acquired large wealth. Following the Indians as they receded from point to point, Chouteau established himself at different points on the Missouri River, and finally at Fort Benton, Montana, at the head of navigation of the Missouri River. In 1806, he visited Dubuque to trade with the Sacs and Foxes, ascending and descending the river in canoes. He also followed the Indians as they receded up the Osage River, and up the Mississippi from Keokuk to St. Paul, having trading posts all along the rivers. In 1834, he and his associates purchased the interest of John Jacob Astor in the American Fur-Company, and in 1839, they formed the trading company which, under the firm name of P. Chouteau, jr. and Company, extended its operations southward as far as the Cross Timbers in Texas, northward to the Falls of St. Anthony, and northwestward to the Blackfeet Country; monopolizing the fur trade of the entire region east of the Rocky Mountains and also controlling the trade of Santa Fi in New Mexico. This business necessitated the employment of a large amount of capital, and large transactions in the Eastern cities were carried on, so that Chouteau was finally obliged to take up his residence in New York ; but he afterward returned to St. Louis. In 1808, acting under the instructions of Gov. Lewis, he con- cluded an important treaty with the Osages fixing the boundary between them and the whites. In 18 19, he was a member of the convention which framed the first constitution for the State of Missouri, but with this exception, he never engaged in politics. Both Chouteau and Sanford were exceedingly just in their dealings with the Indians, and by this means gained their confidence and were enabled to carry on their trading with them amicably, and through these transactions amassed a large fortune. Chouteau died in St. Louis on Sept. 8, 1865. Fort Pierre, 1300 miles above St. Louis on the west bank of the river, was named in compliment to Pierre Chouteau. Owing to his generous treatment of the Indians and the great 38 JOHN F. A. SANFORD. confidence placed in him by them, Sanford was appointed by the United-States government Indian-agent for the Mandans, Ricka- rees, Minatarees, Crows, Knisteneaux, Assineboins, and Blackfeet tribes, and made frequent trips up the Missouri and went among the Indian tribes, and his very presence among these hostile people always restored confidence and courage. The speech <;f Ha-wan-je-tah — the one horn, a Sioux chief,* will serve to show the estimation in which Major Sanford was held by them: "My father, I am glad to see you here today: my heart is always glad to see my father when he comes — our Great Father who sends him here is very rich and we are poor. Our friend who is on your right hand — meaning Pierre Chouteau — we all know is very rich and we have heard that he owns the great medicine -canoe. He is a good man and a friend to the red man. My father, I hope you will have pity on us, we are very poor." After these words, he took ofi" his beautiful war-eagle head-dress, his shirt and leggings, his necklace of grizzly bear's claws, and his moccasins, and tying them together, laid them gracefully down at the feet of Major Sanford as a present. Major Sanford made a short speech in reply, thanking him for the valuable present which he had made him, and for the very polite and impressive manner in which it had been done, and sent to the steamer for a quantity of tobacco and other presents which were given to him in return. He frequently visited Washington with representatives of these different tribes; an amusing and interesting story is told also by Catlin of a young Assineboin, Wi-jun-jon — the pigeon's egg head, who was selected by Maj. Sanford to represent his tribe in a dele- gation which visited Washington City under his charge in the win- ter of 1832. With Maj. Sanford the Assineboin, together with repre- sentatives of several others of those Northwestern tribes descended the Missouri River on their way to Washington in a Mackinac boat from the mouth of the Yellow Stone. Wi-jun-jon and another of his tribe, at the first approach to the civilized settle- ments, commenced a register of the white men's houses or cabins by cutting a notch for each on the side of a pipe stem, in order to be able to show when they got home how many white men's * "Catlin's North American Indians," Vol. I, page 228. VISIT OF CATLIN TO THE INDIAN TRIBES. 39 houses they saw on the journey: as the cabins increased in num- bers, they soon found their pipe stem filled with marks, and they determined to put the rest of them on the handle of a war-club which was soon marked all over likewise. At length while the boat was moored at the shore, Wi-jun-jon and his companion stepped into the bushes and cut a long stick upon which they afterward attempted to copy the notches from the pipe-stem and club, but the cabins increased so in number that they, after consulting a little, pitched their sticks overboard. Wi-jun- jon was. absent a year on his trip to Washington and when he returned to his tribe with Major Sanford, he was decked in a full suit of colonel's uniform which had been presented to him in Washington. He wore with it a beaver hat and a blue umbrella. Catlin frequently accompanied Major Sanford in his visits to the different Indian tribes and in this way procured the interesting views and portraits with which his works are illustrated; and to the correctness of which Major Sanford certifies. It took about three months for a steamboat to reach the mouth of the Yellow Stone from St. Louis. The steamer, Yellow Stone, on her first trip up the Missouri, had Catlin and Sanford on board. As she approached the Mandan village, she fired a salute of twenty guns, which caused great alarm among the Indians. When they stepped aboard, they met, to their great surprise and delight, their old friend Major Sanford, their agent, and this put an end to all their fears. Mr. Sanford married Miss Emilie, the daughter of Chouteau. He was a genial gentleman of polished and graceful manners, and of fearless nature, which manifested itself either when driving a spirited horse or facing an hostile savage. The cares and anxieties of the immense business transacted by his firm, but largely devolving upon him, weighed heavily upon his mind, and at last it succumbed to the strain. He died in New York in 1857, much beloved and respected by all who were brought into commercial or social relations with him. Gouverneur Morris of Morrisania, was the only child of Gouverneur Morris and Anne Cary Randolph, and was born at Morrisania, New York, on February 9, 18 13. 40 GOUVERNEUR MORRIS. The earliest record of the Morris family in America dates from about the time of the Restoration, 1660, when Colonel Lewis Morris, having played a bold and daring part in opposition to King Charles, being then in the Island of Barbadoes, and think- ing it imprudent to return to England, directed his thoughts and aspirations toward America. Accordingly, he sent his brother Richard to New York empowered to purchase large tracts of land, "they both being in affluent circumstances." Whilst Richard was living in New York, a son was born to him, in 1672, and called Lewis, after his uncle. "Six months after this child's birth" — so runs the old record — "the father, Richard, died, and in a few weeks the mother also died, and this child, the sole one of the family and name at that period in this country, was left at nurse among strangers at Harlem." Such part of young Lewis' papers and other property as had escaped the pillage of servants and soldiers was placed by the Dutch — then in possession of New York — under the care and management of some of the principal inhabitants, and a guardian was appointed for the infant. When New York was restored to the British in 1674, Lewis Morris, sr., came from Barbadoes, took charge of his nephew, and settled upon his lands in New Jersey, improving at the same time his estate in Westchester Co., which by the royal patent of 1676 was called the lordship or manor of Morrisania. Before leaving Barbadoes, Lewis Morris, sr. had unfortunately married a woman of low extraction and bad conduct whom he brought with him to America. During Morris' last illness, this woman destroyed all the family-papers she could lay her hands on, and so remodelled his will as to leave herself and one Bichley, her accomplice, the whole personal estate and all the negroes and silver. The fraud, however, was so evident that when young Lewis came of age, some years after his uncle's death, the legislature gave him possession of the estate as his uncle's heir-at-law. Lewis Morris married Isabella Graham, a near relative of the Marquis of Montrose, by whom he had fifteen children, of whom five daughters and two sons survived him. At different times, he held the offices of chief justice of New York and New Jersey, state councillor and acting governor in 1731 and governor of New Jersey in 1738. LEWIS MORRIS, THE SIGNER. 41 In a quaint old family-record kept by himself, Lewis Morris says: "I begin the year the asth of March. I was born at Tin- tern in New Jersey in 1698, Sept. 23, and I was married by Wm. Vesey [the first rector of Trinity Church] on March, 17, 1723, to Mrs. Sarah Staats." The issue of this marriage was three sons and one daughter. Lewis, the eldest son, was "born the 8th day of April, 1726." He was afterward one of the signers of the Declaration of American Independence. Sarah Staats, the first wife of Lewis Morris, died in 1731, and Morris married Nov. 3, 1846, "Mrs. Sarah Gouverneur," and the issue of this marriage was four daughters and one son — Gouverneur, who was born on January 30, 1752, and who played so distinguished a part in the struggle for American freedom and in the formation of the con- stitution, and who, during the stormy days of the revolution in France, stoutly maintained the integrity of his government in the fulfilment of his duties as accredited minister to the French court. In the autumn of 1798, Gouverneur Morris returned to America after an absence of ten years, and rebuilt the house at Morrisania in which he had been born, and, which having been within the enemy's lines during the revolution, had seen so many stormy days. In 1809, Gouverneur Morris married Miss Anne Gary Randolph, the daughter of Thos. Mann Randolph, Esquire, of Tuckahoe, Virginia, and in 1816, Morris died, leaving to her the care of his son and also of his estates, in which she was to have a life-interest. Morrisania was far removed during the early part of the cen^ tury from the busy parts of New- York city, and communication was only easy by means of the family carriage. Occasional trips into town and rare journeys not comfortable and often dangerous through New-York state to Jefferson County to inspect lands — called the "Morris tract," lying along the St. Lawrence River — - seem to have been the principal breaks in the life of young Gouverneur, who with only the companionship of his mother, and occupied by the various interests connected with his farm, grew to man's estate. On May 28, 1837, Mrs. Morris died and Morris^ became possessed of his father's estates and responsibilities. After Mrs. Morris' death, the house at Morrisania was closed for 42 HARLEM RAILROAD EXTENSION. some years and during this period Morris mingled somewhat in the society of New York and among his numerous kinsfolk. The extensive field for men of intelligence and enterprise which was opened by the projecting and building of railways, early attracted Morris' attention; he foresaw the great effect they would have in helping to build up and develop the varied interests •of the whole country, and therefore devoted himself earnestly to the work. His first effort in this field was in connection with the New-York-and-Harlem Railroad. The company had by herculean ■efforts completed the road in 1838 from the city hall to Harlem, 125th street, in the course of which it had blasted its way through many deep rock cuttings, and had performed the wonderful feat, for that early day, of driving a tunnel of several hundred feet in length through the rock at Yorkville hill, and had built a long and high viaduct across the Harlem flats at great expense. The road was made a double track and had cost so much that the company found its finances completely exhausted on reaching this point, as also were its powers to proceed further under its ■charter. About this time, 1838, another company was chartered by the legislature of the State of New York, called the New-York- and-Albany Railroad Company, empowered to build a road from New York to Albany. Gouverneur Morris and other gentlemen interested in the Harlem road, conceived and carried out the idea of purchasing this charter and consolidating it with the Harlem, which, being accomplished, opened the way for extending the Harlem railroad beyond the Harlem River. Railroads were then in their infancy and people were timid about investing money in them so that it seemed probable that the extension ■would have to be abandoned. In this emergency, Morris came forward and personally supplied the means with which to extend the road as far as Williarasbridge in Westchester County, about seven miles, making use for the railway of the bridge built for wagon travel across the Harlem River at the head of Fourth Avenue, that bridge being owned by Gouverneur Morris and his ■cousins Gerard W. Morris and William H. Morris. Morris had the satisfaction of seeing the completion of this extension and its opening for business in 1841. From this time forward for ALBANY EXTENSION — VERMONT VALLEY R. R. 43 many years, he acted as a director in the company, taking a very active part in conducting its affairs, and at one time held the office of vice-president. He exerted himself in having the road ■extended from time to time until it reached its final completion in 1852, by a connection with the Boston-and-Albany Road at Chatham Four Corners in Columbia County, New York, one hundred and thirty miles from the city. The last fifty miles of the road from Dover Plains to Chatham Corners — called the "Albany extension" — were built in 185 1-2 by Morris in partner- ship with George L. Schuyler and Sidney G. Miller as chief con- tractors. Seeing the importance to the Harlem Railroad of hav- ing a connection with deep water tide at its southern terminus, Morris undertook and completed in 1850 the construction of the Port Morris branch road from a point near the Melrose station on the main line to a point on the East River opposite Flushing Bay, including the building of ample wharf accommodations for large vessels. This road was built upon Morris' own lands and with money supplied entirely by himself He was one of the incorporators of the Illinois -Central Railroad Company and a •director from the date of its incorporation to August 4, 1854. In 1850, with George Barker and others, Morris built the Vermont- Valley Railroad, twenty-two miles long, from Brattle- boro' to Bellows Falls on the Connecticut River. He became a ■director in the company and subs2quently was chosen president. His career as a railway projector and builder ended when he retired fi-om the presidency of the Vermont-Valley Road about 1879. Morris, in 1852, commenced to build the Treverton-and- Susquehanna Railroad in Pennsylvania. This road, sixteen miles long, including a very long bridge over the Susquehanna River, was a most difficult work, requiring much time and care in its •execution. It was, however, very satisfactorily completed in 1855. Associated with George L. Schuyler, J. S. Stranahan, Josiah W. Baker, Charles G. Case, and Sidney G. Miller, Morris entered into contract with the Albany-and-Susquehanna Railroad Company in 1853, to build its road from Albany to Binghamton in Broome County on the Erie Railway, a distance of one hun- dred and forty miles. The work was commenced soon after the 44 BOSTON PIERHEAD TO THE PACIFIC. contract was signed, and the grading was quite far advanced when, in 1854, a difference of opinion arising between the company and the contractors, work was stopped, the contractors consider- ing themselves justified in abandoning it. As early as 1839, Morris became persuaded that the progress of railways through the country could not be arrested by the timidity of persons unwill- ing to, put their money in them, and to a number of gentlemen averse to subscribing for the completion of the New York-and- Albany Road, he plainly stated this conviction. "Gentlemen," said he, "it makes no difference how dilatory you are in the . matter, within thirty years there will be steam communication from Boston pierhead to the Pacific." The less far-seeing among this group of gentlemen were inchned to treat the prediction as a flight of the imagination, but many of them lived to see the prophecy fulfilled, for, exactly thirty years and four months .after it was made the last spike was driven in the Pacific Railway. Railways, however, did not exclusively occupy Morris' atten- tion; as he was always a devoted farmer and successfully culti- vated his acres, and for many years, the New- York market was largely supplied with produce from his farm in the form of milk and vegetables. One of Morris' earliest acts in behalf of the public, was the building of a church on a part of his farm. This church, a monument to his mother and called St. Ann's, was built in 1841, and consecrated by Bishop Onderdonk in the summer of the same year. It is now a flourishing city parish, and, stand- ing as it does surrounded by beautiful grounds, it bids fair to become the first church in this large and important part of New- York City. In February, 1842, Mr. Morris married his cousin. Miss Martha Jefferson Gary of Virginia, and by her had ten children of whom five survive him. Mrs. Morris died in 1873, and in 1876, Mr. Morris married his cousin. Miss Anna Morris. After his second mar- riage, he lived quietly at Pelham, where he died after a long illness, August 20, 1888, aged seventy-five years. The period of one hundred and thirty-eight years covered by the lives of the two men, father and son, was one of vast interest to the civihzed world. It embraced the American revolution for FRANKLIN HAVEN. 45 independence, the revolution in France for liberty, the develop- ment of the far-reaching power of the press, the perfecting of the locomotive -engine which has opened up the immense resources of America, and the unfolding of the amazing power of the electric telegraph. With keen intelligence, the two Morrises, father and son, conceived and prophesied the development of their country, and each, in his generation, labored earnestly for its advance- ment. Mr. Morris was a man of powerful physique, had a robust and generous nature, and possessed broad views regarding matters of public policy. He was somewhat negligent of his personal appearance, but with commendable pride, he always signed his name "Gouverneur Morris of Morrisania."* Franklin Haven was born May 30, 1804. When the Mer- chants Bank of Boston was incorporated in 1831, Mr. Haven ac- cepted the office of cashier. He was elected, 1836, its president, which office he continued to hold until Jan., 1884, having served the institution in the two capacities for over half-a century. At the time of his resignation, he was succeeded by his son Franklin Haven, jr. He continued a director, however, until March, 1885, when he resigned that position and was succeeded by Abbott Lawrence. In 1838, he was appointed pension agent for New England and held that office seventeen years. He was also appointed sub-treasurer at Boston in 1849 3-iid resigned in 1853, but at the request of President Peirce continued a year longer. As chair- man of the commission on public lands of the state in 1859, and many years subsequent, he had much to do with the growth and development of the city of Bosto:; over what is known as the Back Bay, now the most beautiful part of the city. He enjoyed the acquaintance and esteem of Daniel Webster, and after his death and that of his son Fletcher, became guardian of Fletcher's children. He was an incorporator of the IHinois- Central Railroad Company and a director from Feb. 10, 1851 to • "Gouverneur Morris," by Anne Cary Morris, Genealogical and Biograph- ical Record, January, 1889. 46 JOSEPH W. ALSOP. May 28, 1862, and gave much of his valuable time to the affairs of the company. As he resided in Boston, he was obliged to make a journey to New York each time he attended a board- meeting, which he did with frequency. When he retired from the directory, the board made a handsome recognition of his services. Mr. Haven is a gentleman of striking features, tall and erect, of courtly bearing and possessed of great dignity of manner as well as kindly feeling, and is perfectly upright in all his business relations. Among the people of New England and especially among the bankers and merchants, none stand higher in the estimation of their fellowmen than he. Mr. Haven still Hves in Boston and is the sole survivor of the incor- porators of the company. He spends about half the year at his country-house in Beverly Farms, where he has ever dispensed a genial hospitality. His place is noted as one of the most beautiful sea-side homes in New England. Joseph W. Alsop was for many years of the firm of Alsop- and Chauncey of New York, formerly Alsop, Wetmore and Cryder, one of the greatest of New- York's old mercantile houses. The Alsops trace back their ancestry to Richard Alsop, who was lord mayor of Dublin in 1597. Joseph W. Alsop was descended from one of the oldest families in Connecticut, which had settled at Middletown before the revolution, early in the eighteenth century; Middletown being at that time a commercial seaport doing more business than New Haven and Hartford combined. Joseph W. Alsop was born in Middletown, Nov. 22, 1804. He received a common-school education. At the age of fifteen, he entered the commission -house, of which his father was senior partner, as clerk. The house then commanded a large share of the West-Indian and South-American trade, and in the capacity of agent, Alsop made several voyages to Santa Cruz and other commercial ports. He came to New York in 1824 and soon thereafter began business in his own name. Branches of the house of Alsop and Company were established on the western coast of South America, where they are still conducted under the same firm -name and ALSOP AND CHAUNCEY — PANAMA RAILROAD. 4/- where they now, almost alone, maintain the repute of American commerce in fields from which it has been driven by our own stupid legislation. In 1842, on the return of Henry Chauncey — at that time one of our first merchants — from South America, the firm of Alsop and Chauncey was formed. The partnership- continued until the death of Chauncey about fifteen years ago. Shortly before the discovery of gold in California, William H. Aspinwall, in connection with the old house of Rowland and Aspinwall, started a line of steamships to run in connection with the Panama Railroad. In both of these enterprises, the New- York branch of Alsop and Chauncey took a prominent part. Aspinwall, upon whom the principal labor of establishing the railroad devolved, subsequently said that had it not been for the sagacity, integrity, and capital of Alsop's firm, the road would not have been finished. Besides the firm of Rowland and Aspin- wall, John L. Stephens, Gouverneur Campbell, Joseph W. Riley, Edward Bartlett, and Samuel Comstock, were associated with Alsop in the Panama enterprise, several of whom were succes- sively connected with the house of Alsop and Chauncey, and all of whom were familiar with the Southern coast and with the wants- of commerce, and who understood the usefulness of this road to- American trade. Mr. Alsop was the first president of the Ohio-and-Mississippi Railroad, and was receiver of it for ten years and retired in favor of Gen. George B. McClellan. He was one of the incorporators of the Illinois-Central Railroad Company and a director from Feb. 10, 185 1 to May 27, 1863. He was a director of the Sea- men's Savings Bank and was its treasurer for many years, and was also director of the Woman's and St. Luke's hospitals. Mr. Alsop had not been actively engaged in business for about seven years at the time of his death, 1870, but had remained in the city during each winter and at the old homestead in Middletown during the summer. Mr. Alsop was always a warm friend to the deserving poor, and young men of principle and integrity who got into business embarrassment, he helped, often at great inconvenience to him- self. He always declined to accept any political office. He was- 48 DAVID A. NEAL. an earnest friend to the democratic party, but never permitted his political principles to influence or disturb his social rela- tions. He died at his residence, No. 32 West - Washington Place, New-York City, February 26, 1878. He left a wife and one son. Dr. Joseph W. Alsop of Middletown, Connecticut. He was an exceedingly conscientious and upright man, and died as he had lived deeply loved and respected. His remains were taken by special train to his native town for burial. The funeral services in New York were conducted by Dr. Eaton and Dr. John Cotton Smith, and at Middletown; Bishop Williams officiated. Thus passed away one of the greatest of New York's old merchants. Captain David Augustus Neal, the first vice-president of the Illinois-Central Railroad Company, was one of the incor- porators of the company and a member of 'the board of directors from Feb. 10, 1851 to March 19, 1856. He was bom at Salem, Mass., in June, 1793; his Hfe was an exceedingly eventful one. He received a thorough elementary education and left school early. At the age of twenty-two, he made his first voyage to Calcutta as super -cargo in the brig Alexa?idria, a small craft of two hundred and fifty tons burthen, owned by himself and his father. In 181 7, he made a voyage to Batavia, a city of Java — the capital of the Dutch possessions in the East Indies, in com- mand of the same vessel. This voyage he always said was with- out doubt the first voyage ever navigated on tee-total principles. As he had come to the command of his vessel, as the phrase is "through the cabin window," that is to say through the circum- stance of part ownership and without the rough discipline, delay, and experience of the lower grades of service, his crew at once began to presume upon this fact and to test his quality. AVhen a few days out, the men sent back, by one of their number, the usual allowance of grog which had been served, stating that if they could not have more, they would not have any. The young captain took them at their word, directed the ship's stew- ard to "cut off the tap," and navigated his brig without further trouble. His comment was, "the rum came home safe and so did the men.'' CAPTAIN NEAL'S ADVENTURES. 49 During the war with Great Britain in 181 2, he embarked in privateering and met with considerable success. In May, 18 14, he was captured and taken to Halifax, where he spent his freedom birthday in a British prison. From Halifax, in July, 1814, he sailed in a transport, one of a fleet conveyed by the Goliath^ Capt. Maitland, for Dartmoor prison in England. While in the fogs of the Grand Banks of New Foundland, he took part in an attempt to get possession of the transport, was severely wounded and had his hand dressed by Surgeon Barry O'Meara of the Goliath, who, soon after, joined Capt. Maitland of the Bellero- j>hon, going with him to St. Helena in charge of the captured Bonaparte. Surgeon O'Meara afterward wrote a famous memoir of the event. Capt. Neal carried with him the evidence of this attempted escape until his dying day. He was released from Dartmoor by the treaty of peace«of 1815. Later, he was a shipmaster in the merchant - service and commanded ships until the summer of 1826, making several voyages to the Medi- terranean, the East and West Indies, South America, and inci- dentally visiting a great deal of the interesting scenery and a great many of the historical spots in Europe and Asia. He was an observant traveller and gained much valuable knowledge in his trips abroad. These were singularly free from disaster with the exception of one trip to Sumatra, undertaken in 18 18, where his crew fell sick and some died. Failing to ship fresh hands there, he made the best of his way around the Cape of Good Hope to the island of Saint Helena in hopes of a supply of provisions, medicines, and able-bodied men. But here Napoleon was a prisoner, and access to the harbor was so jealously guarded that he succeeded in obtaining nothing but supplies for his depleted medicine-chest. He returned from this place with his vessel in charge of himself, one old sailor, and two chinamen, they being the only able-bodied seamen on board. In this miserable condi- tion, he at last reached the coast of Virginia in the tempestuous January of 1820 with his remnant of a crew on short allowance and here he suffered total shipwreck in sight of the lights of Cape Hatteras. The shore, being white with snow, had misled them as to distance. Capt. Neal made his way to Norfolk and Baltimore, 4 50 FIRST VICE-PRESIDENT ILLINOIS CENTRAL. where having settled the disastrous voyage with his owners, he took passage for Philadelphia on Monday, early in March, in a government mail-wagon. On retiring from the sea, he became a commercial partner in the house of Neal and Sons, which was founded by his father, an old revolutionary veteran, privateersman, and prisoner of war, and finally became head of that house on the retirement of Capt. Neal, sr. He became president of the Eastern Railroad of Massachusetts in 1841, when it was extending its lines from Massachusetts into New Hampshire and Maine, and subsequently took charge also of the Reading Railroad of Pennsylvania, the affairs of which were much disordered and which was then in control of Eastern bankers. Both of these positions he resigned in 185 1 to become vice-president of the Illinois-Central Railroad Company, of which he w-as one of the original incorporators and in which he held a large pecuniary interest. He remained in that position four years. He was a director for five years until 1856. In 1 85 1, he visited Illinois and went over the proposed route with Col. Roswell B Mason, was very favorably impressed with the country, and made a very elaborate report to the board of directors on the value of lands and on the resources and probable amount of traffic that would be controlled by the line when- com- pleted. He also paid considerable attention to the organization of the land-department and to the platting and selling of the lands which had been donated to the company. During the period of the construction of the road, he made two trips to Europe, spending a considerable portion of his time in Liverpool, where he purchased about 80,000 tons of iron rails of a most excellent quality — 56 pounds to the yard.* In London, he took part in the negotiation of the first issue of sterling bonds made by the company. They were sold at a premium. * The receiving and forwarding of these rails was entrusted to a com- mission-house established in New York in 1852, under the firm name of Clark & Jesup, being composed of Charles G. Clark and Morris K. Jesup. This was the inception of the present firm of Crerar, Adams & Co. (John McGregor Adams, Edward S. Shepherd), extensive manufacturers of railway supplies, Chicago, whose senior partner, John Crerar, recently died, leaving such a munificent sum to the city for a public library, and other liberal bequests. WILLIAM H. ASPINWALL. 51 Capt. Neal was a man of robust nature and of great physical endurance. In his religious views, he was perhaps inclined to be somewhat heterodox, or, even skeptical; he was brought up in the midst of tendencies and influences which may have been intensified by his early acquaintance with oriental life and thought, of which in his autobiography, which he left in manuscript, he writes most understandingly. Capt. Neal never held political office of any kind. He died at Salem, Massachusetts, in August, 1861. William H. Aspinwall, one of the incorporators of the company, was born in 'New York, Dec. 16, 1807; he was a nephew of Gardner G. Rowland, and, at an early age, he entered the old shipping -house of Gardiner G. and Samuel S. Rowland, and was taken into the firm in 1832. In 1837, the new firm of Rowland and Aspinwall was estabhshed. This house had the largest Pacific-coast trade of any firm in New York, besides doing an extensive business with the East and West Indies, England, and the Mediterranean. Shortly after the discovery of gold in California, he retired from the active management of the firm and secured the contract for a line of mail -steamers to run from the Isthmus of Panama to San Francisco, Cal. This line was established under the name of the Pacific - Mail Steamship Company. He and his associates also organized the Panama Railroad Company, and constructed its road. In aid of its con- struction, they received a liberal concession from the government of New Granada. Owing to the unhealthy climate of the coun- try through which the line passed, the construction proved an expensive work, but after many difficulties the road was com- pleted and opened for business Feb. 17, 1855. In both of these enterprises, Mr. Aspinwall was eminently successful and he held the office of president of the company for many years. He founded the city of Aspinwall, at the eastern terminus of the railway. Besides his brief connection with the Illinois -Central Railroad, Mr. Aspinwall was interested in the construction of the Ohio-and-Mississippi Railroad, extending from Cincinnati, to St. Louis. This was built as a broad-gauge road, but after- ward changed to the standard gauge. Mr. Aspinwall traveled;, 52 THOMAS WILLIAM LUDLOW. much in the last twenty years of his life and, being a liberal patron of the fine arts, made an important collection of paintings. These were sold by his family in 1886. Mr. Aspinwall was a man of fine presence, a courteous gentleman, an earnest christian, and justly ranked as one of New York's great merchant-princes; he was remarkable for his generosity and his lenience to the debtors of his house. He died in his native city, Jan. 18, 1875, '" the sixty-eighth year of his age. His son, Lloyd, commanded the 2 2d Regiment of New- York militia during the war of the rebellion in its three months' ser- vice; had charge of the purchase of vessels for the Newbern expedition; was president of a board to revise army regulations; was General Burnside's aid at Fredericksburg; and, after the war, was a brigadier-general in the National guard. Thomas William Ludlow, a son of Thomas Ludlow and Mary Ludlow, was born at his father's house, on the northeast corner of Garden Street (now Exchange Place) and Broadway, New York, on June 14, 1795. He was a great-grand- son of the founder of the New-York family of Ludlow, Gabriel (arrived in New York, 1694), who came of the old English stock to which belonged the republican general. Sir Edmund Ludlow, and the great Puritan statesman and jurist, Roger Ludlow of Massachusetts and Connecticut* Thomas W. Ludlow graduated with credit from Columbia College in the class of 181 1, and served as a trustee of his alma mater from 1833 to 1836. After graduating he read law with Martin Wilkins. In 1825, he went to England with his cousin, Frances Mary Ludlow, wife of Philip Thomas and mother of Ludlow Thomas, in connection with her claim to the Harison succession, then in the English courts, and * Gabriel Ludlow, son of Gabriel Ludlow and Martha, his wife, from whom the New-York branch of the Ludlows are descended, was born at Castle Carey, in Somerset, England, November 2, 1663. He arrived in New York, November 24, 1694. He was clerk to the provincial assembly, and one of the first vestrymen of Trinity Church. He married at the fort in New-York City, on Easter' Monday, April 5, 1697, Sarah Hanmer, one of the daughters of the Rev. Joseph Hanmer, D.D., then deceased, who was chaplain to his majesty's forces in the province of New Brunswick, and the THOMAS WILLIAM LUDLOW. 53 was successful. However, he soon withdrew from general prac- tice of his profession. His brother-in-law, Gulian Ludlow, recom- mended him, toward the close of his active life, to his family connections of the great banking-house of Crommelin of Amster- dam, and to his English correspondents as well, and for many years Mr. T. W. Ludlow had charge of their important commis- sion business in America, and conducted it so much to their satisfaction that, upon his retirement, the Crommelins sent him a large sum of money, with which he procured, as a souvenir, a splendid service of plate. For the account of the Dutch house, Mr. Ludlow had much to do with a loan of the District of Columbia, an affair of considerable importance at the time. He represented also the Holland Land Company, and was at one time instrumental in saving the interests of his clients, which were menaced by an adverse sentiment in congress. From early manhood, Mr. Ludlow's mental grasp of the pros- pects and promises of the country, which was then almost wholly undeveloped, was remarkably comprehensive, and with his imme- diate associates, many of them at that time or since distinguished in the fields of public or of private affairs, he took an active part in the inception of a number of business enterprises which have continued to be highly prosperous, and have several of them contributed not a little to the national progress. Thus he became one of the incorporators of the Ilhnois- Central Railroad Com- pany, February 10, 185 1, and was a director of that company from February 10, 1851, to August 25, 1854. He was the first president of the Panama Railroad Company; a director of the New- York Life Insurance Company; and one of the founders of the New- York Life Insurance and Trust Company. Of the last first clergyman of the Church of England in the province of New York. The descent of Thomas W. Ludlow is as follows: Gabriel Ludlow, born at Castle Carey, Somerset, England, Nov. 2, 1663; married in New Yorlc, April 5, 1697, Sarah, dau. of Rev. Joseph Hanmer, D.D. Henry Ludlow (eldest surviving son), born May 22, 1701; married, in 1725, Mary, dau. and heiress of John Corbett of Rockland. Thomas Ludlow (a younger son), born July 21, 1742; died January, 1822; married Mary Ludlow, his first cousin, dau. of William Ludlow and Mary Duncan. Thomas William Ludlow (second son), born in New- York City, June 14, 1795. 54 THOMAS WILLIAM LUDLOW. corporation, Mr. Ludlow served as vice-president up to the time of his death. This corporation has been managed so well that the shares originally issued at $ioo now sell for $700. Mr. Ludlow was enrolled in his youth in the militia force assembled to defend New York during the war of 181 2. In 1837, under his friend, President VanBuren, he was sent to Europe on a special mission for the United-States treasury, and from 1837 to 1839 visited all the important capitals and financial centres, meeting with very satisfactory success in the placing of large amounts of United-States securities during that period of grave business disturbance at home. He was present with his wife at the coronation of Queen Victoria in Westminister Abbey, in 1838. After 1853-5, when Mr. and Mrs. Ludlow traveled leisurely through England, France, Belgium, Holland, Germany, Switzerland, Austria, and Italy, for their pleasure, he retired from active business other than the management of his own property. While always inclined to favor democratic tenets, Mr. Ludlow numbered among his intimates, chiefs of both great parties, and, possibly because of his independent bias in public questions, he never essayed to take an active part in politics. Nevertheless he was a man of much public spirit, always interested in the consideration of state and poHtical questions, and in the pro- motion, as well, of the local interests and improvements of the community in which he lived. Mr. Ludlow married, in 1828, Frances Wickham Morris, a beautiful and accomplished daughter of Robert Morris of Ford- ham (Morrisania), and established a charming home in the then fashionable quarter of the fifth ward of the city, at the southeast corner of Varick and Laight Streets, Hudson Square, opposite St. John's Park, which is now the site of the freight-station of the New-York Central Railroad. Soon afterward he acquired a large tract of property south of Yonkers, adjoining the new station of the Hudson-River Road which bears his name, Ludlow, and his country-place there, long reputed one of the most commodi- ous and beautiful on the river, was among the first of the delight- ful modern places for which the banks of the Hudson near New York have since become famous. Many pleasant allusions to HENRY GRINNELL. 55 this place and the hospitable life there appear in the recently- published diary of his friend Philip Hone.* May 30, 1832, upon the return of Washington Irving to this country from diplomatic service abroad, Mr. Ludlow and other friends and admirers of Irving gave him a grand dinner at the City Hotel, New York, then the most notable hotel in the city. Three hundred persons sat down to the dinner table at six o'clock, among them most of the best and most prominent men in New York. It was one of the society events of that day. Despite Mr. lyudlow's intimate connection with many great business enterprises, he never cared to become what would now be considered a rich man. He was satisfied to enjoy what was for ante-bellum days an ample competence, and he delighted above all, with his closest family connections — Morrises, Hamil- tons, Schuylers, Livingstons — in the social and intellectual inter- course and entertainment of a wide circle of friends, the most cultured and polished of the metropolis. In this choice circle, for half a century he was so much loved and esteemed that although his generation has passed away, the name of this old- school gentleman — the very soul of honor and embodiment of aristocratic courtesy — is still remembered and respected in busy New York. Mr. Ludlow died at his country-seat, Cottage Lawn, Yonkers, New York, July 17, 1878, leaving behind him the memory of a thoroughly just, upright, liberal, and temperate life. Henry Grinnell was bom in New Bedford, Massachusetts, in 1800, was graduated at New-Bedford Academy in 1818, and during the same year became clerk in a commission-house in Pine Street, New York. In 1825, he was made a member of the firm of Fish and Grinnell, afterward Grinnell, Minturn and Company. He was much interested in geography, and especially in Arctic exploration, and in 1850 at his own expense, fitted out an expe- dition to search for Sir John Franklin, from whom nothing had been heard in five years. The expedition sailed from New York in May, 1850, under command of Lieut. E. J. DeHaven with Dr. * See especially volume II, page 82. 56 A CONTRAST. Elisha Kent Kane (whose second-cousin, Elias Kent Kane, was a senator from Illinois) as surgeon and naturalist. It discovered land in latitude 75° 24^ 21", which was named Grinnell Land — an island north of Cornwallis Island which should not be con- founded with the better-known Grinnell Land bordering on the frozen sea. In 1853, in conjunction with George Peabody, he spent $50,000 in the equipment of the second Franklin search expedition, giving it also his personal supervision. This expedi- tion was placed in charge of Dr. Kane, and the government bore part of its expenses. Mr. Grinnell also contributed freely to the Hayes' expedition of i860, and to the "Polaris" expedition of 187 1. He was one of the original incorporators of the Ilhnois- Central Railroad Company and named in the charter; but, as he was about retiring from active business at the time the company was being organized, his connection with it was brief. Through- out life, he was an earnest advocate of the interests of sailors. He was the first president of the American Geographical Society in 1852-3, and a vice-president from 1854-72. His daughter, Sylvia, married Admiral Ruxton of the British navy, and in 1886, presented to that society a crayon portrait of her father framed in wood taken from the Resolute. Mr. Grinnell was also one of the merchant princes of New York and died in that city, June 30, 1874, universally loved and respected. A New-York paper, commenting lately upon a man who had figured conspicuously in the railroad-world, said : "His fortune is variously estimated from fifteen to twenty-five millions. Outside of the corporations he controls and his money, he occupies but little space, having no interest in public affairs, in literature, science, art, or society. * * Of full habit and florid complexion, his white hair becomes him, and he looks as serene and contented as if he had passed his life in benefitting his fellows. He does not disHke them, but he gives himself no trouble concerning their progress and amelioration, one of the cardinal articles of his faith being that every man should paddle his own canoe. What he lacks— mental, moral, or social cultiva- tion—he does not care for or miss ; what he has— a vast property ROBERT SCHUYLER. 57 and the capacity to increase it — he understands and thoroughly enjoys.'' What a contrast does this picture present to those I have drawn from the life and labors of such men as I have referred to. Let the reader think for a moment of a sordid, selfish soul, suc- cessful perhaps as the world sometimes counts success, but actuated by no worthy ambitions, and then let him think of some of the splendid specimens of manhood who were co-laborers ni the enterprise whose annals I am writing. Statesmen, working out problems for their country's good — warriors, incited to coura- geous action by patriotic devotion — honorable merchants, eleva- ting the standard of commercial integrity — christians, whose pure lives stand out as bright examples — bold pioneers, opening up new territory to civilization — American gentlemen, whose grace and manners left their impress on the period in which they lived — philanthropists, giving largely of their means to rescue the brave as well as the fallen; and let him turn from the sadder to the brighter picture, with more hope for humanity and a desire to emulate the deeds and characters of its nobler examples. Robert Schuyler was the first president of the Illinois- Central Railroad Company, a grandson of Gen. Phillip Schuyler of revolutionary fame; he served from March 19, 1851 to July 3, 1854. He became interested in Illinois railways through the purchase of the finished portion, 24 miles, of the Northern-Cross Railroad from Jacksonville to Meredosia, the first railroad con- structed in the State. It was sold at public sale, April 26, 1847, and purchased by Nicholas H. Ridgely of Springfield, who soon after, through the negotiations of Thomas Mather of the same city, sold it to a construction company organized in New York in which Schuyler was interested. Its name was changed to the "Sangamon and Morgan Railroad'' and it was rebuilt, work being completed July 22, 1849. The record of Robert Schuyler in his connection with Ameri- can railways is an interesting, but a sad one, to dwell upon.. He was a pioneer in American railway construction and justly deserved the title of the first railroad king. He was at one 58 ROBERT SCHUYLER. time the president of five railways, viz: the New- York-and- New-Haven, the Harlem, the Illinois -Central, the Rensalaer- and - Saratoga, and the Sangamon - and - Morgan, and these vari- ous positions he held up to a certain period with great credit to himself. He was a man of unusual business ability, aided by a sound judgment and a liberal education. In his devo- tion to duty, he was no less remarkable; though broken in health, he was frequently found laboring in his private rooms until an early hour in the morning in a conscientious effort to serve the best interests of his shareholders. His versatility of mind enabled him to accomplish great results in a short space of time. He \va.s a man of keen perceptions, clear and comprehen- sive views, and these constituted him a vfist counsellor. His un- affected dignity, courteous bearing, and refined manner, com- manded the respect of all who kriew him, and these included many eminent persons of his day. Such qualities lent a peculiar ■charm to his office and station, and gave him .the presence of an American gentleman. There was a provision in the charter of one of the railroad companies with which he was connected that required its completion within a certain time under a penalty of forfeiture. In an effort to complete it within the specified time, as was supposed, he in an evil moment of mistaken zeal, resorted to very questionable measures, which in the end proved his down- fall. In addition to holding the office of president of the New- York -and -New- Haven Railroad Company, he was the transfer agent of that company. At that time, the share certificates of railways were not countersigned as they now are; consequently there was nothing to prevent irregularities. Transfer agents had it in their power at that time to over-issue the shares of a railway, and it was done in this instance. The first irregular issue was made in October, 1853, and others followed until the irregularity was discovered, July 3, 1854. This occurrence resulted in the action that was afterward taken by the New- York stock exchange, requiring that all certificates be signed by two officers of a com- pany, and registered and countersigned by a third disinterested party, which must be a banking or trust company. This has proved a wholesome check upon similar dishonest transactions. ROBERT SCHUYLER. 59 It also resulted in the passage of a'special law, in 1855, by the legislature of the State of New York, familiarly known as the "Schuyler Act," making the over-issue of capital stock in that state a felony; for up to this time there was no statute covering such a breach of trust. A final examination of the books of the New-Haven Company and a return of all certificates showed that there had been an over-issue of the stock of that company amount- ing to about $2,000,000. The discovery was made by mere accident. Schuyler was taken ill on June 29, 1854, and remained away from his office until July 3; the vice-president, Mr. Worthen, being called in to act as transfer agent, the fraud was discovered by the presentation of some of the spurious certificates issued by Schuyler. The case, which was brought by the holders of these irregular certificates, many of whom claimed to be innocent holders, was continued in the courts for ten years, but finally resulted in a decision in the New- York court of appeals, in 1864, against the railroad- company, which compelled it to reimburse every holder the value of his shares. Schuyler, in his pride and ambition to succeed, and lack- ing the moral courage to acknowledge his needs and mistakes, fell into the fatal blunder which brought ruin to his reputa- tion, sorrow to his friends, disgrace to his family- name, and disaster for the time being to the financial world. Flattered by apparent success — deficient in caution — failing properly to measure his resources — and withal, lacking the principle with which he had been credited, he dissipated large sams of money in an attempt to resuscitate failing properties. In an effort to retrieve himself, he committed this terrible wrong. How- ever questionable his procedure, or reprehensible his conduct may appear to the minds of those unfamiliar with all the cir- cumstances of the case, a careful investigation into his conduct shows that he was at least in part actuated by unselfish motives. It does not appear that he took advantage of his position merely to enrich himself. The trust imposed in him was unhmited, and the burden laid upon him very great ; but there is a limit to human accomplishment, and there ought to be a limit to the responsibility laid upon human intellect. If there is not. 6o WILLIAM PORTER BURRALL. those who impose excessive burdens in hopes of obtaining impossible results, should at least be willing to share in the responsibility, and to accept the outcome with resignation. In this instance, the zeal to promote the interest of one corporation tempted him to draw — temporarily, as he no doubt regarded it — upon the resources of another. The redeeming feature of the case laid in the fact that, when the transaction was laid open, he did not attempt to palliate his offence and meet his accusers with brazen effrontery. His sense of personal honor was so shocked, and his mortification so great, that he could not face his friends, and hence his flight to a strange land, to find relief in death. He fled the country from Quebec in a stray vessel: had he been a polished villain instead of a blunderer, he might have covered his tracks. But he had not studied the art of fraud, and so he put a very honest construction upon his own dishonesty. He attempted too much for his day, and failed. Many have gone further since and succeeded, as the world counts success. But his was not a day of "trusts," when transactions quite as dis- honest, and involving many more millions, can be so deftly hidden as to defy discovery. The world might indeed say that his sin partially lay in the fact of his being found out. The subtleties of finance had defeated him, because in his blindness he could not see his peril in time to be warned; and so, in the meridian of an otherwise bright and extraordinary career, his light went out. A life was extinguished that could not well be spared at that juncture from the railway world. He died in a foreign land, poor and friendless; the concealed worm had fed upon him, until he was wrecked mentally and physically, and he became the mere shadow of his former self William Porter Burrall was the second president of the Illinois-Central Railroad Company, having succeeded Mr. Schuy- ler under whom he had acted as vice-president. He was born in Canaan, Conn., Sept. i8, 1806; died at Hartford, Conn., March 3, 1874. His father, William Morgan Burrall, was a lawyer by profession, a graduate of Yale, a prominent member of the bar of Litchfield County, Conn., an associate judge of the WILLIAM PORTER BURRALL. 6 1 county court from 1829-36, and after that, chief judge for ten years. His ancestors were among the original settlers of the town of Canaan, and his mother, Elizabeth Morgan, was a mem- ber of the well-known Hartford family of that name. WiUiam P. Burrall's mother was Abigail Porter Stoddard, a descendant of the Porter and Stoddard families of Salisbury, Conn., both of them prominent in the early history of the town and state. Mr. Burrall was graduated at Yale College in 1826, among his classmates being President Sturtevant and Elizur Wright; he studied law at the Litchfield law-school; also in the office of the late Chief-Justice Church, where he was associated as a law-stu- dent with O. S. Seymour, late chief-justice, and was admitted to the bar of Litchfield County in 1829. He practised law in his native town until October, 1839, when he removed to Bridge- port, Conn., to accept the presidency of the Housatonic Rail- road, which position he held for fifteen years. This railroad had just become an accomplished fact by the exertions of Alfred Bishop, a gentleman of great energy and personal power, father of Hon. W. D. Bishop. Mr. Burrall was called from its management to the Illinois-Central Railroad Company as treas- urer, and became president. He was afterward connected with the New-York-and-New-Haven Company as vice-president, then with the Hartford-and-New-Haven as vice-president and president, and finally was made vice-president of the New-York,- New-Haven-and-Hartford at the consolidation of the companies. He was several times a member o'f the house of representatives and also filled the position of state senator. In his business relations, Mr. Burrall was a man of singular honesty and accuracy. His views were broad and generous. He favored no mean or stingy policies. He held in just estimate the rights and responsibilities of railroad companies, believing that the true secret of success in railroad management is found in fair and courteous treatment of the traveling and trading public. He desired the best, safest, and quickest accommodation for all patrons of his roads. He withheld ' no proper information from his stockholders. He kept his promises and asked of those with whom he came in contact that they should keep theirs. He was 62 WILLIAM HENRY OSBORN. faithful to every trust reposed in him. As a draughtsman of railroad contracts, he had no superior in the country. There was no ambiguity in the language he employed; every sentence was so clearly expressed as to leave no room for doubt as to its- meaning. As a citizen, he favored honesty and truth in all public matters. The stain of corruption never was upon his hands in his exten- sive dealings with legislatures, courts, and commissions. In the sphere of private life, Mr. Burrall's course was unusually charming. Courteous, unobtrusive, pure, gentle, tender-hearted as a child, he kept a "peaceful tenor" in all his dealings with his associates. He was benevolent, but his benevolence was unos- tentatious. He was courageous, but his courage was always tempered with consideration for others. His word was as sacred as if sealed as a covenant. Into the privacy of domestic grief we may not enter, but we may say that Mr. Burrall's large family found in his affectionate heart a faithful response in all the tenderest relations of life, and that his sudden death sundered many sacred cords. Such a life as his was an honor and blessing to our common nature, and the community in which he lived mourned his loss with no common grief. One of his daughters is the wife of Henry H. Anderson,, a prominent lawyer in the city of New York. The revelation of the Schuyler incident shocked the confidence of the financial world and placed under suspicion every enterprise with which he had been connected. The unfortunate affair happened at a critical time in the history of the Illinois-Central Railroad Company. On the day following this disaster, Mr. W. H. Osborn was called to'the council of the board of directors and he was afterward (August ii, 1854), elected a member. On Dec. i, 1855, he was elected president of the company. He entered with remarkable energy upon the work of restoring public confidence to this great enterprise. A resume of his ser- vices to the company and incidentally to the State, is given below : William Henry Osborn was bom in Salem, Mass., Dec. WILLIAM HENRY OSBORN. 63 21, 1820, and received a high-school education in that venerable New-' England town. Shortly after leaving school, he entered the counting-room of the old East- India house of Peele, Hub- bell and Company, founded by J. Willard Peele, engaged in the East-India trade. After remaining there awhile, he was sent to Manilla, (under the auspices of Stephen C. Phillips who was a member of the house), to represent the business at that place. He resided there several years, and afterward became the head of the firm and engaged in business on his own account. He traveled extensively in Europe and on his return to the United States in 1853, took up his residence in the city of New York, where he shortly after married the daughter of that most estimable man and upright merchant, Jonathan Sturges, . the senior member of the firm of Sturges, Bennett and Company, at that time one of the largest mercantile houses in the city of New York. Mr. Sturges was one of the incorporators of the Illinois -Central Railroad Company, and had unbounded faith in the future development of the State of Illinois. He, in company with other men of large means and reputation, had entered with great energy upon the work of constructing the Illinois - Central Road upon a sound financial basis. The high character of the men engaged in the work of reviving a scheme that was destined to prove of such great advantage to the State, inspired confidence both at home and abroad. But the undertaking proved to be a more formidable one than even the minds of those sagacious men had calculated upon. In 1854, while the work of construction was well under way, it became apparent that much larger expenditures would be required than had been estimated, and to carry it through to a successful completion more vigorous measures must" be adopted. Up to the end of 1854, only 300 miles of the whole 704 miles to be built were completed, and these in detached portions, so- that they were operated at great disadvantage and cost, and the entire Amount of net earnings derived from their operation for the last half of the year was, as appears by one of the early reports of the company, only $149,744.16. While the road was earning so little, the interest account on the bonded debt 64 WILLIAM HENRY OSBORN. already incurred, was rolling up so heavily as to threaten to engulf the whole enterprise. To add to the "paucity of events," the crops of Illinois in this year, 1854, were almost a total failure, checking the. sale of lands which had been donated to the com- pany, as well as diminishing the amount of collections for those already sold. To add to the complication of affairs, the "Schuy- ler fraud" over-issue of the stock of the New-Yprk-and-New- Haven Railroad Company was made public July 3, 1854, and completely unsettled business affairs, making it almost impossible to negotiate railway securities, however good. The directory, though composed of men of such high standing in the community, were all residents of the Eastern States, and they could not give that close personal attention to the affairs of the company which its pecuHar condition at that time so earnestly demanded. It was therefore necessary at this critical juncture, to find immediately some one who could go to the scene of active operations in Illinois and personally superintend the closing up of the gaps between the unfinished portions of the line, as economically and as expe- ditiously as possible, so that it could be placed in a thoroughly equipped condition to earn money for the shareholders. At that time, the demand for men of such capacity was beginning to be felt all over the country, but in no instance was it more urgent than in the case of the Illinois-Central Railroad Company. In this dark hour for those who had ventured so largely and with such sanguine expectations upon this first land -grant project, (and which threatened for a while to prove even more disastrous than had other successive attempts that had been made to construct a road through the center of the State), Mr. Osborn was called to the command, and took up for a time his residence in Chicago. It was a herculean task imposed upon him and one which would have daunted almost any other man. The people of the State of Illinois have never known what a debt of gratitude they owe to Mr. Osborn for his suc- cessful effort in saving the road to the State. It is perhaps no exaggeration to say, that if it had not been for the extraordinary exertions made by him at that time, the road would not have been brought to a successful completion, certainly not within the ASSIGNMENT OF THE COMPANY. 6$ time it was, for, if foreclosure proceedings had been instituted then, it is extremely doubtful whether any new corporation which might have been formed would have been willing to accept the onerous conditions imposed by the original charter; and so in this way the essential advantage in the matter of tax on gross earnings would have been lost to the State. Even after the ordeal of 1854 had been safely passed and the •company's financial condition greatly improved by the successful negotiation by Mr. Osborn of a temporary loan of three millions of dollars, new and unlooked for difficulties arose. The income of the road had scarcely become sufficient to pay its running expenses, for the country along its line had not sufficiently developed to yield an adequate traffic for its support when the panic of October, 1857, with all its disastrous accompaniments, ..swept over the country. Mr. Osborn had sailed for Europe a month previous. The financial skies were comparatively clear when he left, but on October 9, all the banks in New York, with the exception of the Chemical Bank, and most of those through- out the country, suspended specie payment. The wheels of commerce became clogged, and distrust everywhere so prevailed that it was impossible to negotiate a sterling bill at any rate of exchange. At this time, Mr. Osborn was in London in con- ference with English bankers with a view of placing the finances •of the company on a more substantial footing. This he would have undoubtedly succeeded in accomplishing at once, but for the circumstances referred to. The suddenly changed condition •of affairs compelled his immediate return to this country. The Atlantic cable was not in operation at that time, and on his .arrival at Sandy Hook, he was startled to read in the New- York papers an announcement by the treasurer of the company in these words : "Office Illinois - Central Railroad Co., New York, October 9th, 1857. "The Directors of The Illinois-Central Railroad Company are under the painful necessity of announcing that, notwithstand- ing the most strenuous exertions to avert such a result, the Com- pany is forced to suspend payment. 5 66 ASSIGNMENT OF THE COMPANY. "The existing derangement in the financial affairs of the coun- try surprised the Company with a large floating debt incurred for the completion and equipment of the road. To provide for its payment when the usual credits became unavailable, an assess- ment of ten dollars per share was promptly made, and upon this side" of the Atlantic, largely paid in advance, enabling the Com- pany to meet its engagements in September. The installments upon the stock held abroad, have been in rapid progress of pay- ment, but the negotiation of the bills of exchange drawn against them, difficult at first, has at length become impossible. "All other and usual modes of raising money are well known to ■ be entirely unavailable. It would be in vain at this time to call in another installment on the stock, as the same difficulties which prevent the realizing of the proceeds of the one already called,, in season to meet the accruing obligations of the Company, would attach to any other immediate assessment. "The Directors have therefore yielded to the stern necessity of the case reluctantly, but with a clear conviction that the true interests of both creditors and stockholders would be promoted by the legal steps which, under the advice of able counsel, have been taken to secure their respective rights. "The coupons due on the construction bonds, October i, have been paid to a large extent, and a provision has been made to receive the balance outstanding in payment of unpaid install- ments, if desired by the holder. No serious inconvenience will probably result therefrom. "All possible exertions will be used to pay off every liability without unnecessary delay; and to relieve the Company from its present embarrassment. "As this has not risen from any difficulties intrinsic in the enterprise, but from the extraordinary condition of the money market, the Directors see therein no cause to abate the confidence they have heretofore felt and expressed in the value of the road and the lands of the Company. By order of the Board, J. N. Perkins, Treasurer." The coupons falling due on the large bonded debt then out- standing, were being presented by anxious holders, and, to satisfy RESTORATION OF THE COMPANY TO CREDIT. 6^ these and to prevent further complication, Mr. Osborn upon his personal responsibility — for the credit of the company was entirely exhausted — negotiated loans to a large extent from banks and individuals, and with the proceeds paid the coupons and held them until the company was able to redeem them. He then provided a plan for the reestablishment of the company's credit by the issue of a new loan of about $5,000,000. From the proceeds all the outstanding, floating indebtedness of the company was paid in full, principal and interest, the assignees discharged, and the business of the company placed once more in the hands of its officers. The restoration of the company to full credit had a ^■ery favorable effect upon all American securities abroad, and made the IlUnois - Central Railroad the most prominent American corporation in the eyes of English capitalists, and, increasing public confidence in it, materially strengthened other com- panies of a similar kind. It was the turning-point in the affairs of the company, and from that time on, it enjoyed an unbroken era of prosperity. When Mr. Osborn became con- nected with the Illinois-Central Railroad Company in 1854, it had a bonded debt of nearly $20,000,000, and a floating debt in addition of $2,500,000, as shown by the annual report of that year, and the future of the enterprise was an unsolved problem. When he retired from active participation in its affairs in 1877, its bonded debt was $10,508,000, the road was and had long been paying regular dividends, and it had a large amount of assets on hand available for any contingency. During the frequent visits of Mr. Osborn on the other side, he had occasion to consult with the large shareholders of the company, and in this way, he formed the acquaintance of many prominent English bankers and states- men. Among these was Richard Cobden, who had first visited Illinois in 1855, and passed over a portion of the proposed line and who, when he saw the beautiful prairie and examined its fertile soil, became an enthusiast as to the prospective value of the property; so much so, that he invested nearly all his money in it. Morley, in his life of Cobden, refers to a visit made by.Mr. Osborn to the great premier in 1858, whom he found in a per- 68 ORGANIZATION OF THE LAND DEPARTMENT. turbed state of mind regarding his holding of Illinois - Central shares, and whom he aided with his friendly counsel. In 1858, the troubles of the previous year were aggravated by another failure of the crops. This bore heavily upon the new settlers on the company's lands, most of whom had made only their first payment. The result was that many of them became so impoverished in their resources that they were almost objects of charity. Not a few were entirely destitute of the necessaries of life. Private contributions of tea, coffee, sugar, and provisions were made by the directors of the company and sent to various points on the line to relieve cases of actual suffering. From 1 86 1 on, owing to the great development of the resources of the country and the consequent rapid settlement of the company's lands, regular dividends were paid on its shares. Mr. Osborn occupied the position of president of the company from Dec. i, 185s to July II, 1865, and was a director from Aug. 11, 1854 to May 30, 1877, so that he practically continued in the manage- ment of the company's affairs for twenty-two years, a manage- ment that was characterized by prudence and conservatism, remarkable skill and executive ability, firm and unceasing devo- tion to the interests of the company, indomitable will and cour- age, and, above all, strict integrity of purpose. Mr. Osborn retired from active business a few years since? He now spends much of his time at his country-seat, Wing-on-Wing, at Garrisons-on-the-Hudson, which is one of the most beautiful on the river. His time in the city is largely occupied in benevo- lent work, taking a deep interest in the Institution for Ruptured and Crippled Children and the Training - School for Nurses attached to Bellevue Hospital. ORGANIZATION OF THE LAND DEPARTMENT. All the requirements of the act of incorporation having been complied with, the deed conveying the lands from the State of IlHnois to the IHinois- Central Railroad Company was executed March 24, 1851, by his excellency Augustus C. French, governor of the State. Simultaneously with the delivery of the deed, a deed of trust was executed by the president of the company to JOHN MOORE. 69 Morris Ketchum, John Moore, and Samuel D. Lockwood, con- veying, to them in trust, all the lands granted by the government of the United States under the act of congress referred to, and all the other property of the company, as security to the State for the faithful performance of work to be undertaken, and to secure the bonds to be issued. This was an important trust and it was of the utmost importance to the interests of the State that it should be confided to those who would wisely and faithfully administer it on its behalf, and probably not in the whole State of Illinois could there have been found two more fit persons for this purpose than John Moore and Samuel D. Lockwood. John Moore was an Englishman by birth, having been born at Grantham, Lincolnshire, Sept. 8, 1793. Up to his fourteenth year, he attended the common school and all his subsequent education was obtained without a teacher. He often studied while at his work at his trade as a wheelwright, to which he was apprenticed at an early age. In 181 7, he sailed for America. He settled first in Virginia but remained there but a short time, when he removed to Harrison, Hamilton County, Ohio ; here he worked at his trade; March 9, 1*820, he married a Kentucky lady, a Mrs. Misner. They had a family of eight children. In October, 1 830, he moved to Mc Lean County, Illinois, and settled on a farm at Randolph Grove. There he entered forty acres of land and afterward purchased considerable more land, and did some farming. He also worked at his trade; and here he endured the privations to which all the early settlers were sub- jected. In 1831, he was elected a justice-of the-peace, this being the first office he held. In 1835, he was elected to the legisla- ture, which then held its sessions at Vandalia. In 1839, he was elected to the senate of the State and in 1840, he was elected Keutenant- governor; this oflSce he held up to 1846. At the close of his term, at the outbreak of the Mexican War, he enlisted as a private in the 4th Regiment of lUinois Volunteers, which he had been active in forming, and was almost immediately chosen lieutenant-colonel; he bravely and honorably served dur- ing that war and participated in several engagements — • Cerro 70 SAMUEL D. LOCKWdOD. Gordo, Rio Grande, and Vera Cruz. When he returned from the Mexican war, the State of Illinois presented him with a sword to show its appreciation of his distinguished services. In 1848, he was appointed state treasurer by Governor French, to fill the vacancy caused by the death of Milton Carpenter. At the expiration of the term in 1850, he was elected to hold the same office and was reelected in 1852. In 1854, he was again a can- didate, but was defeated on account of an absurd prejudice which sprang up at that time against foreigners. In 1853, Mr. Moore was appointed by Gov. Matteson to settle the difficulty between the State of Illinois and the firm of Thompson and Foreman, growing out of a contract by which that firm was to deliver to the State of Illinois a certain amount of railroad iron. This difficulty was arranged by Mr. Moore to the entire satisfaction of all parties. He was appointed one of the trustees of the Illinois-Central Railroad Company in 185 1, and held that posi- tion up to the time of his death in 1866. Mr. Moore was nearly six feet in height and heavily built; his shoulders were broad, and his carriage erect and his com- plexion ruddy. His health was remarkably good, and this doubt- less contributed to his cheerful, happy disposition. He was a man of great natural force of character and an honest man, and was familiarly known throughout the State as "Honest John Moore." The State of Illinois never had a more faithful guardian of her interests. His power of memory and of conversation was wonder- ful. He was a fine presiding officer and the chair of the senate has never been filled by a more accomplished parliamentarian. His death, which occurred at Boston, Sept. 23, 1866, was the result of a surgical operation performed upon his eyes for cata- ract. His remains were interred in the old burying-ground at Randolph Grove.* Judge Samuel Drake Lockwood was bom at Poundridge, AVestchester County, New York, August 2, 1789; when quite young, his father died, leaving his mother with three small children * "Good Old Times in McLean County, Illinois, " by Dr. E. Duis, Bloom- ington, 1874. SAMUEL D. LOCKWOOD. 7 1 and with but slender means of support; by this event, Samuel's plans for a liberal education were broken up and he was thrown upon his own resources. At twelve years of age, he spent a few months at a private school in New Jersey, where he says of him- self, "I acquired some knowledge of arithmetic and enough of Latin to be able to decline a few nouns and conjugate a few verbs.'' Lessons in arithmetic were given orally and written out by the pupils. In 1803, he went to hve with his mother's brother, Francis Drake, a lawyer of Waterford, New York, where he remained as a law-student until February, 181 1, when he was licensed to practise law and opened an office in Batavia, New York. It may be said of Judge Lockwood as was said of John Quincy Adams, that he never had a boyhood. In early years, he met the stern realities of life which left no time for boyish or manly sports, and, as a consequence, he had no relish for such things. But he was preeminently a home man, in full sympathy with everything that would increase the happiness of home, and bring enjoyment to the family circle. The first four years of his professional life was a hard struggle with disease and pecuniary embarrassment. In a new country, he found the legal profession well filled and in it some men of reputation and experience — able to absorb all the business. On March 12, 1813, however, he was appointed master in chancery by Gov. Tompkins, a circumstance which, as he wrote to his father, enabled him, with his other practice, to support himself decently and to pay the debts he had contracted before he got into business. This period included the war time, when everything was depressed to the lowest point. Judge Lockwood naturally diffident and retiring, feeble in physical constitution, with a tendency to self- depreciation, and far separated from all family friends, must have passed through many trials, and his final success is an evidence of that sterling worth of character with which in after life he was universally credited. From a letter to his mother, written in May, 181 5, we learn that he remained in Batavia about a year, then removed to Auburn in that year and practiced law with George B. Throop until the fall of 1818, when he started for Illinois, reaching Shawneetown, 72 LOCKWOOD'S removal to ILLINOIS. December 20. He made the journey in company with William H. Brown and others on a flat-boat down the Alleghany and Ohio rivers. From Shawneetown, Lockwood and Brown made the trip to Kaskaskia, a distance of 120 miles, on foot and arrived December 26, entire strangers to the country. On their way, they were met by two young men bound for the same place. These were Thomas Mather and Sidney Breese, both from New York. Judge Lockwood remained in Kaskaskia a year, and then removed to Carmi, spending a year there. In 1 82 1, at the second session of the legislature held at Vandalia, he was elected attorney-general. This election to office necessi- tated his removal to Edwardsville. In 1822, Governor Coles appointed him secretary of state, but in the same year, President Monroe appointed him receiver of public moneys at Edwardsville and he accepted the latter position. In 1823, he was appointed an agent of the board of canal commissioners. In 1824, he was elected associate justice of the supreme court, and in 1824-5, assisted in a revision of the criminal code of the State which, with few amendments, has continued in force ever since. He remained on the bench until the adoption of the new state con- stitution in 1848. Judge Lockwood was therefore a resident of Illinois from 1818 to 1874, and for over fifty years was in public service, holding during that period, under state and national appointment, the following positions of trust and responsibility, attorney-general, secretary of state, receiver of public moneys in the Edwardsville land -office, associate justice of the supreme court. He was slate trustee of the Illinois - Central Railroad from the organization of that company until his death in 1874,^ and was charter trustee in each of the state institutions estab- lished for the benefit of the insane, deaf and dumb, and blind. This brief outline indicates something of Judge Lockwood's standing in the State, something of the esteem with which he was regarded by his fellow -citizens, and something of the influ- ence he must have exerted in that period of our State history, when a few of our good and wise men were laying the founda- tions of those civil, social, and educational institutions, which have secured for us our present prosperity and are a standing MORRIS KETCHUM, TRUSTEE. 73 proof of the wisdom and fidelity of the great men into whose labor we have entered. Dr. Edward Beecher, president of the Illinois College from 1830 to 1844, now of Brooklyn, New York, writing of Judge Lockwood, says : " During an acquaintance of over twenty years, of which fourteen associated me with him as a trustee of Illinois College, I have seen in him incorruptible integrity and wisdom as a counsellor in all things, with an unwavering devotion to sound principles and the public good in every position he held. His life, in all its relations, public and social, was spotless, and I think he had the entire confidence and warm affection of the community in which he lived." Dr. T. M. Post of St. Louis, writes: "He was a man I felt happy and honored to regard as a friend to the close of his life. There was in his character a rare blending of elements, a modesty, gentleness, and delicacy, well-nigh feminine, and great, general kindliness, combined with intrepid firmness of principle, a large practical wisdom, distinguished judicial ability and integ- rity, and a personal purity and honor as stainless as a star.'' Mr. Coffin, in his biography, says: "He was eminently wise in counsel, earnest and perservering in action, faithful and honest in every position of trust; dignified in deportment, kind and tender in all friendly relations, with a loyalty to truth and right, com- manding the admiration of all who knew him, irrespective of all party or sectarian difference.* The State had the appointment of two trustees of the lands and the railroad company one ; the latter selected Morris Ketchum of the banking-house of Ketchum, Rogers and Bement of New York, who was also the second treasurer of the company. He was a brother to Hiram Ketchum, the celebrated lawyer. Mr. Edward Bement of the same banking-house being the first treasurer elected. Mr. Ketchum was also connected with the locomotive works of Rogers, Ketchum and Grosvenor of Patterson, New Jersey, who supplied the first one hundred locomotives used by the company ; he was also interested in the New-York-and-New-Haven Railroad Company, and was the author of the plan of raising money on * "Life and Times of Samuel D. Lockwood," by Samuel Coffin, 1890. 74 LAND COMMISSIONERS. "preferred stock," the first issue of which was made by that company during Mr. Ketchum's connection with it. It was a clever device invented to enable railway companies to raise money without increasing their mortgage debt, and, while at the same time it apparently weakened, it did not necessarily impair the value ot the common stock. The land-commissioners have been John C. Dodge, who took part in the platting and selection of the lands; John Wilson, formerly land-commissioner of the gen- eral land- office, Washington; John W. Foster, author of the "Mound Builders," and other geological works; Chas. M. Dupuy, Walter M. Phillips, John B. Calhoun, and Peter Daggy; L. P. Morehouse is the present incumbent. His long and faithful service in the engineering department was rewarded by his appointment as land-commissioner. Mr. Daggy, though retired as commissioner upon a liberal pension, still continues to act as secretary of the land department. Of the lands entrusted to them, the soil for the most part was of a rich, black, deep mould, of unsurpassed fertility, capable of producing in the greatest abundance wheat, rye, corn, oats, and fruits, and vegetables of all kinds. But, with all their produc- tiveness, the quarries and mineral wealth had remained compara- tively unsettled and uncultivated until this road was constructed, and would have continued so in all probability for many years to come, but for the facilities of travel and transportation furnished by it. These lands had been in the market subject to private entry for a third of a century at a mere nominal value, and yet in very few instances were purchasers found for them. Remote from markets, without facilities for transportation, and with roads almost impassable, the cost of handling the products of the lands to a market, and the time employed therein, amounted almost to as much as the value of the land. The total grant of land to the State of Illinois was 2,595,000 acres which were donated to the company, being at the rate of 3700 acres per mile. The grant of lands referred to was not, strictly speaking, the first act of congress making a grant of lands directly and specifically to aid railroad building, but was among the first in importance. Of the land donated by the State to the PRE-EMPTION CLAIMANTS. 75 Illinois -Central Railroad Company, 107,614 acres were first con- veyed to preemption claimants. Gov. Joel A. Matteson, in his inaugural message to the eighteenth general assembly, convened Jan. 3, 1853, referring to this, says: "I have not heard that any settler upon the company's land has had occasion to complain, but, on the contrary, when the time by law had passed for prov- ing preemptions upon the company's land by the settler upon the lands, the company took no advantage and allowed the lands to be entered on proof being made, the same as if directed by law. This course pursued in, can not fail to awaken in the minds of the people of this State strong feelings of reciprocal good-will." The rapid settlement of the railroad lands stimulated the sale of the government lands, alternate sections, which for years had been in market, but remained unsold, though for a considerable time they could have been obtained with land-warrants at about one-half the government price. After the location of the Illinois- Central Railroad, a large portion of them were immediately sold for from $2.50 to $5 an acre, and the line of the road began to fill up with hardy and enterprising settlers, enabling the govern- ment to close Its land-offices. Up to January i, 1890, of the lands donated to the company, 2,456,829 acres had been dis- posed of to about 30,000 actual settlers, yielding $28,742,002.93. The population of the State when the grant was made was 851,470. The population of Chicago was less than 40,000. By the recent census (1890) it is found to be over i,ico,ooo. The landed interest seemed for a time to be regarded as of ■greater importance and value than the railroad itself. Said a member of the English Parliament — the Hon. Lawrence Hey- Tvorth of Liverpool — who visited Illinois in 1856, and went over the line of railway shortly after its completion, "This is not a railway company; it is a land company," and so impressed was he with the future value of the lands, that he went back to New York and gave his bankers a carte-blanche to purchase all the Illinois -Central Railroad Company's shares that were offered for sale, and they did not stop purchasing until they had acquired for his account an interest amounting to over $1,000,000. I mention this to show how pleasing a picture the beautiful open ^6 EFFORTS TO SETTLE THE LANDS. prairies of our State presented to the eye of a foreigner at that time, and what a deep impression they made upon his mind. But Mr. Heyworth failed to reap pecuniary advantage from his investment, for the reason that, like the projectors already referred to, he had anticipated too much. The country indeed made the railroad, but the railroad did not respond quickly enough in making the country. The promise of the enormous traffic, that it was believed these lands would supply to the railway, was not fulfilled soon enough to yield sufficient revenue to meet the early matured interest on the debt. The estimates and predictions made by the friends of the road told a flattering tale of wealth, and indeed they were all realized, but not within the time expected. The difficulty was that these rich promises pre- supposed a larger emigration to the State and a more rapid settlement upon the lands than could possibly take place within the time specified. The cry went out to the farmers of England, Germany, Sweden, Norway, Holland, and other countries, at the cost of many thousands of dollars, to come over and settle in this new and beautiful country, but for a time it was scarcely heeded. Special agents were employed to go to these countries to explain the advantages of settling in our State, and pamphlets printed in their respective languages, describing the attractiveness of the country and the fertility of its soil, were scattered broadcast over Europe. The dismal failure of Morris Birkbeck and others to establish English colonies in Illinois was still fresh in the minds of many of the English farmers, and, with few exceptions, they could not be induced to leave the mother country. The kind words spoken of Illinois by Birkbeck in his "Letters from Illinois," and "Notes on a Journey to America," both published in 1818, were savagely attacked by other Englishmen who warned their countrymen not to be deluded by his statements. Later on, however, many Scandinavians, Poles, and a few Germans and Russians, found their way over and located upon these lands, but for the most part they were settled by people from the adjoining, and older Eastern states, who were perhaps better qualified to judge of their resources and could cultivate them to greater advantage. MEMORIAL FOR CHARTER. 'JJ MEMORIAL FOR CHARTER. On January 15, 185 1, Governor Augustus C. French sent a communication to the house of representatives transmitting a memorial of which the following is a copy :* "To the honorable the seriators and representatives of the people of the State of Illinois in general assembly convened : "The memorial of Robert Schuyler, George Griswold, Gouvern- €ur Morris, Jonathan Sturges, Thomas W. Ludlow, and John F. A. Sanford of the city of New York; and of David A. Neal, Franklin Haven, and Robert Rantoul, jr., of the city of Boston and vicinity, respectfully represents : "That, having examined and considered an act of congress of the United States, whereby land is donated by the United States for the purpose of insuring the construction of a railroad from Cairo, at the mouth of the Ohio River, to Galena and the north- western angle of the State of Illinois, with a branch extending to Chicago on Lake Michigan, on certain conditions, therein expressed; and, having examined also the resources of the tract of country through which it is proposed that the said railroad shall pass, and the amount of cost, and the space of time neces- sary for constructing the same, the subscribers propose to form a company, with ■ such others as they may associate with them, including among their number persons of large experience in the construction of several of the principal railroads of the United States, and of means and credit sufficient to place beyond doubt * Although this was the only plan for the completion of the road submitted to the legislature, another plan was' seriously agitated by some of the leading men in the State in conjunction with certain men in New York, who had figured considerably in Illinois matters, and a bill was prepared in accordance therewith. The design was to have the State virtually control the road, and one of the provisions of the bill was that the stock should be made a basis for banking under any law establishing a general system of banking. There were other curious provisions which are interesting as showing the condition of things at that time, and especially the opinions of men as to the best means of raising millions of money by a bankrupt State. The press of the State discountenanced the project and favored giving the lands to actual settlers. The bill for this project may be found in the Chicago Daily Democrat of Jan. II, 1851. 78 MEMORIALISTS. their ability to perform what they hereinafter propose, make the following offer to the state of Illinois for their consideration: "The company so formed by the subscribers will, under the authority and direction of the State of Illinois, fully and faith- fully perform the several conditions, and execute the trusts, in the said act of congress contained. And will build a railroad with branches between the termini set forth in said act, with a single track, and complete the same, ready for the transportation of merchandise and passengers, on or before the fourth day of July, which will be in the year of our Lord, eighteen hundred and fifty- four. And the said railroad shall be, in all respects, as well and thoroughly built as the railroad running from Boston to Albany, with such improvements thereon as experience has shown to be desirable and expedient, and shall be equipped in a manner suitable to the business to be accommodated thereby. And the said company, from and after the completion of the said road, will pay to the State of Illinois, annually, * per cent of the gross earnings of the said railroad, without deduction or charge for expenses, or for any other matter or cause; provided, that the State of Illinois will grant to the subscribers a charter of incor- poration, with terms mutually advantageous with powers and limitations, as they, in their wisdom, may think fit, as shall be accepted by said company, and as will sufficiently remunerate the subscribers for their care, labor, and expenditure in that behalf incurred, and will enable them to avail themselves of the lands donated by the said act to raise the funds, or some portion of the funds, necessary for the construction and equipment of said railroad. "Robert Schuyler, Dav. A. Neal, George Griswold, Robert Rantoul, jr., GOUVERNEUR MoRRIS, JoNA. StURGES, of Morrisania, Thos. W. Ludlow, Franklin Haven, John F. A. Sanford. "December 28, 1850.'' It was laid on the table and ordered to be printed. ' John Wentworth said that it was proposed to fiU this in ten per cent but that he opposed it. INTRODUCTION OF ACT. 79, On January 14, 185 1, Asahel Gridley introduced in the senate a bill for an "act to incorporate the Illinois - Central Railroad Company," which was referred to the committee on internal- improvements. After various decisions and references from day to day, James L. D. Morrison, on February 5, following, offered a substitute for the original bill, to which varions amendments were offered, aud, on the next day, February 6, it was finally passed in the senate by a vote of 23 to 2. Four days later — February 10, 1851, it passed the house of representatives by a vote of 72 to 2. The final passage of the bill was celebrated in Chicago by the firing of cannon and other demonstrations in honor of the event. That clause in the charter making the governor of the State an ex-qfficio officer was suggested by John Wentworth. The incorporators named were, George Griswold, Franklin Haven, David A. Neal, Jonathan Sturges, Joseph W. Alsop, Robert Rantoul, jr., John F. A. Sanford, Leroy M. Wiley, Robt.. Schuyler, Henry Grinnell, William H. Aspinwall, Thomas W. Ludlow, and Gouverneur Morris. The four last named never took a very active part in the affairs of the company. Of the others who formed a part of the first board of directors, the most active and prominent were Messrs. Sturges, Alsop, Gris- wold, Neal. and Sanford. Of the original board of directors, but one survives, Mr. Haven. The ace was accepted by the company, March 19, 185 1. The charter was a special one, and in its bearing upon the future welfare and prosperity of the State, probably the most important it ever granted. It conferred — as was supposed at the time — valuable privileges, although it exacted unusual benefits in return. Among the privileges granted were those contained in the eighth section, which authorized the board of directors to establish such rates of toll for the conveyance of persons and property as they should, from time to time, determine. A singu- lar provision in relation to this right to fix rates was, that it was to be governed by the by-laws of the company. The language of the charter is, "as they shall from time to time by their by- laws determine." Ordinarily, the object of a by-law is to servQ 8o WORK OF CONSTRUCTION COMMENCED. as a regulation of a society or corporation in a manner agreed upon by the members, but, as rates of transportation are neces- sarily frequently changed, to make them valid and binding in this particular case, would necessitate as frequent a change of the by- laws, and as this could only be done by the board of directors^ it would require an assembling of that body so often as' to practically make it a freight - and - passenger department of the company. Had any one of the corporators supposed for a moment, that the day would ever come when this right to fix rates would be questioned, and that the highesfcourt in the land would decide that the police power of the State must override the right to fix rates, it is very doubtful whether the charter would have been accepted at the time it was, and the road would not probably have been constructed for many years after. The work of constructing 700 consecutive miles of railroad was about to be commenced. Although overshadowed by more modern achievements, it was a gigantic undertaking for that day, and not a few of those who had witnessed previous failures, bplieved that a similar fate awaited this. The mortgage upon 2,000,000 acres of the lands and the property of the company, to secure an issue of construction bonds amounting to $17,000,- 000, was executed September 13, 1851. Of these, $5,000,000 were negotiated in London, and such was the confidence reposed in the directory of the company that the bonds were eagerly taken up at a premium before construction work was fairly com- menced. The bonds carried with them the right to subscribe to the share capital in the proportion of ten shares to each bond, and as the outlook for the shares was very promising at the time, this proved a very popular feature. At this time, the bonds of the State of Illinois were selling at a large discount, so that in the Eastern States confidence in any Illinois project was too limited to command any financial aid in that direction. At this time and for many years after, foreign capital was sought to carry out all the leading enterprises in the West. Among the first and largest expenditures made were those for procuring the right of way into the City of Chicago. This RIGHT OF WAY — VALENTINE SCRIP. 8 1 ■difficult task was entrusted to James F. Joy and Mason Bray- man, who first procured from the common council on June 14, 1852 (Walter Smith Gurnee, being then mayor of the city) an ordinance granting permission to the company "to lay down, construct, and maintain within the limits of the city of Chicago, and along the margin of the lake within and adjacent to the same, a railroad with one or more tracks.'' This ordinance was confirmed by an agreement entered into between the railroad ■company and the city of Chicago, March 28, 1853. Lands for depot purposes, north of Randolph Street, were acquired by purchase from the United - States government and from private owners,* and the right of way south of Park Row was obtained by purchase and through condemnation proceedings. The com- pany afterward acquired by purchase most of the riparian rights pertaining to the lands. On March 22, 185 1, the board of directors by a unanimous * Various and persistent attempts have been made by different parties representing the heirs of Jean Baptiste Beaubien, Mark Noble, and others, to get possession of the lands in fractional southwest quarter of section 10, extending north and south of Randolph Street. April 5, 1872, under a special act of congress, there was issued to Thos. B. Valentine and wife, of San Francisco, scrip for about 13,000 acres of land, in pieces of forty acres each, in consideration of their having quit- claimed to the United States a similar quantity of land in the county of Sonoma, near the city of San Francisco, to which Valentine had acquired some title. These lands were included in what was known as the "Miranda Grant" (granted in 1844 to Juan Miranda, and from whom Valentine had received his title), which the government had inadvertently disposed of. The scrip received from the government was locatable on any public lands (not mineral) unappropriated and unoccupied. October 18, 1875, Valentine filed a claim in the land-office at Springfield, 111., on fractional section 10, claiming that it was public land and that he was entitled to a patent there- for. This was the first location attempted on the company's depot-grounds under "Valentine Scrip." Feb. 12, 1878, he applied to the commissioner of the general land-office for a patent; the application was allowed, and the patent ordered to be issued. An appeal was taken by the City of Chicago (which claimed an interest in a portion of the ground) to the secretary of the interior, Hon. Carl Schurz. February 28, 1879, the secretary reversed the decision of the commissioner, on the ground that no part of section 10 was "public land" upon which scrip of such character could be located; that it could only be located upon " lands that are in a state of nature. " 6 82 JOURNEY TO ILLINOIS — ENGINEERS APPOINTED. resolution appointed Roswell B Mason of Bridgeport, Conn., engineer - in - chief with jurisdiction over the entire line. No person could have been selected better qualified for the work. Mr. Mason was born Sept. 19, 1805, in the town of New Hart- ford, Oneida County, New York. In 1822-3, he was in the engineering department of the Erie Canal; in 1824, was assis- tant-engineer on the Schuylkill Canal; in 1825, was assistant- engineer on the Morris Canal and until 1831, when he took charge of part of the Pennsylvania Canal. In 1833, he became superintendent of the Morris Canal, and left it in 1837, when he became chief- engineer of the Housatonic Railroad, and held that position and that of superintendent until 1848. From 1848 -51, he was chief-engineer and superintendent of the New-York- and-New-Haven Railroad. He commenced his journey to Illinois on May 14, 1851, accompanied by a corps of engineers. Their route west was as follows : by steamer from New York to Albany, thence by rail- road to Buffalo, by steamer from Buffalo across Lake Erie to Detroit, by railroad thence to New Buffalo on the east side of , Lake Michigan — the Michigan -Central Railroad, at that time, being completed only to this point — and thence by steamer to Chicago ; arriving through in about five days. A few days after his arrival, he organized several surveying parties, divided the line into working divisions and appointed over each a competent division-engineer, the work being apportioned as follows : N. B. Porter, from Chicago to Rantoul. L. W. Ashley, from Rantoul to Mattoon. C. Floyd Jones, from Mattoon to Main - Line Junction, and north of Centralia and the main line from Ramsey's Creek to Richview. Arthur S. Ormsby, from Richview to Cairo. H. B. Plant, from Ramsey's Creek to Bloomington. Timothy B. Blackstone, from Bloomington to Eldena. B. B. Provost, from Eldena to Dunleith. B. G. Roots had charge of surveying parties between the Big- Muddy River and the Ohio-and-Mississippi Railroad. Shortly after Col. Mason's arrival in Chicago, he was joined JOHN B. CALHOUN. 83 by Mr. John B. Calhoun of Bridgeport, Conn., who had been connected with the Housatonic Railroad Company, and who took charge of the accounts and finances. Col. Mason, writing of him several years after, says: "He was a competent, faithful, and reli- able man." Mr. Calhoun remained in the service of the company for many years, and became its land -commissioner. He was a genial and courteous gentleman, unpretentious, and thoroughly honest, and a man of such an ingenuous nature, that he despised anything like deception. Millions of dollars passed through his hands during the work of construction without the loss of a cent to the company. Very heavy settlements had to be made with contractors during the progress of the work, and most of these were made by Mr. Calhoun personally, in the capacity of paymaster. As currency was scarce in the State and most of that in circulation was practically irredeemable, it was necessary to send to the eastern banks to procure a monthly supply. In this way, the notes of many of the Hartford banks were put in circu- lation along the line; but as these banks all redeemed in specie, it was not long before they found their way back for redemption. Mr. Calhoun named almost all the stations that were opened fqr business on the road after its completion. The names are mostly of Indian origin, but a few were named in a peculiar manner. "Tolono," for example, was constructed by placing the vowel o thrice repeated, and alternating arbitrarily with the three consonants which the word contains, producing a name suffi- ciently unique. On March 16, 1853, in addition to his other duties, Mr. Mason was charged with the care of the transportation department of the company's road, covering such portions of the line as were .completed and in operation, with additional title of general- superintendent, and in March, 1855, additional executive powers, were granted him in Illinois. In the early prosecution of the work, great difficulty was experienced in procuring laborers; the country through which the line was surveyed was of course entirely unsettled. South- erly from Chicago for about 130 miles, it was an almost unbroken prairie, inhabited only by deer, wolves, and other wild animals. 84 PROSECUTION OF THE WORK. with no settlement in view. There were not half a dozen places on the entire line of sufficient importance to be known on the map of the State; so that men had to be brought a great dis- tance to do the work and they had to be cared for along the line. Indeed with the exception of La Salle and Galena on the main Hne, and Jonesboro in southern Illinois near the line, there were no places of importance along the proposed route. Nearly 80,000 tons of iron rails of a superior quality had been purchased in England by Capt. David A. Neal, the vice-president, and these began to arrive early in 1852. There were no rail- mills of importance in this country at that time. The cost of the rails purchased ranged from $38.50 to $43.50 per ton, f.o.b., at Wales or Liverpool. These rails were for the most part except- ionally good in quality, and some of them were in track for thirty years ; a much longer period than the steel rails now man- ufactured will last under ordinary traffic. Considerable portion of the line was located and construction was well under way by the fall of 185 1. Maps and profiles were prepared, and these were deposited with the commissioner of the general land-office at Washington, as required by law, in February, 1852. The final approval of location and selection of lands was secured a month later. The last contract was let Oct. 13, 1852. In May, 1853, the first portion of the road from La Salle to Bloomington, 61 miles, was put in operation, a temporary bridge was erected over the Illinois River, and cars were hauled to the top of the bluff with ropes and chains by means of a stationary engine. In Jul)', 1854, 128 miles of the Chicago branch from Chicago to Urbana were finished and trains were running. A few years afterward the company donated $50,000 toward the construction of the industrial college at this point, now known as the Illinois Univer- sity. In November of the same year, the communication from Freeport to Galena was completed. In the same month, for the first time, passengers were carried from Chicago to Cairo, via Chicago -and -Mississippi Railroad to St. Louis, thence east by the Ohio-and-Mississippi Railroad to Sandoval on the main line of the Illinois-Central Railroad, from which point the road was then open to Cairo, a distance of 118 miles. EGYPT — LOCATION OF LINE TO CHICAGO RIVER. 85 The writer was a passenger on the first train that passed through southern Illinois to Cairo, and remembers well how the "Egyptians" turned out to witness the novel sight, to them, of a locomotive engine and train of cars. They lined the track on both sides at every station, the men dressed in their snuff- colored jeans, and the women with gaudy-colored calicoes, check-aprons, and big sun-bonnets. They stood dumb with amazement. Many of them looked as though they had come out "between the shakes'' of fever and ague. When the road was located not a single railroad track crossed the right of way between Chicago and Cairo, a distance of 365 miles. The first work put under contract was that portion of the line extending from Chicago to what was then known as Calu- met Station, now called Kensington. This was done in order to enable the Michigan -Central trams to enter the city, and that company made a temporary loan to the Illinois-Central Company to enable the latter to complete this fourteen miles more promptly. Their first train passed over this new track on May 20, 1852, running north as far as Thirteenth Street, where a temporary ]3assenger-depot was constructed, and which was used for nearly a year thereafter. The road from about Sixteenth Street to Randolph Street was afterward constructed upon piles driven in the bed of the lake, and this piling was maintained until shortly after the great fire of 187 1, when the right of way was filled with debris from the fire. The line into Chicago was originally located through Section 10, T. 39, N. R. 14, east of 3d p. m., to the Chicago River, so that, north of Randolph Street, it passed through a portion of Fort -Dearborn addition then owned by the United -States gov- ernment. The map showing the location was filed in the general land-office at Washington, the local land-office at Springfield, and iu the registry of deeds for Cook County. The company claimed a right of way through Section 10, north of Randolph Street, under the act of congress of Aug. 4, 1852, entitled, "An act to grant the right of way to all rail and plank roads and macadam- ized turnpikes passing through the public lands belonging to the United States incorporated by any of the states." That act 86 BALTIMORE AND OHIO RAILROAD — CAIRO BRIDGE. gave such a right for ten years after its passage. The company, however, acquired the right of way through Section lo, from the United-States government by purchase on October 14, 1852, at a cost of $45,000, which was then a very high price. Afterward the raihoad company brought suit against the United States for the repayment of the moneys paid for the land acquired in Fort- Dearborn addition, on the ground that the act of congress applied to the lands reserved by the government for military purposes as well as other public lands, but the court of claims decided adversely to the railroad company. The Baltimore-and-Ohio Railroad did not enter the city over the Ilhnois-Central tracks until Nov. 17, 1874. That portion of the "main line," as it was called between Cairo andiLaSalle, a distance of 300.99 miles, was completed Jan. 8, 1855. With its southern terminal in close proximity to Dixie's land, the road offered ready means of escape for slaves, of which many were not slow to avail themselves whenever the opportunity offered. This they did by crossing the river at Bird's Point, Ken- tucky, to Cairo, and secreting themselves in freight-cars or under passenger -coaches, just prior to their departure for the north. When discovered, if the conductor of the train happened to be friendly to the slave, his escape was winked at, but in a few in- stances they were returned to their masters, under the law as it existed at that time.* Up to Oct. 29, 1889, the transfers of freight and passengers between the north end of the New-Orleans Line and the Illinois- Central at Cairo, were made by transfer steamers which conveyed the cars from one point to another, but on this date the Cairo bridge was opened for traffic, forming a continuous rail route from Chicago to New Orleans, a distance of 938 miles. The length of the bridge is 3 miles and 4720 feet, and its cost to date has been about $2,700,000, which will be further increased by expenditures in the way of filling approaches and of additional tracks. The Galena branch. La Salle to Dunleith, a distance of 146.73 miles, was completed June 12, 1855. * Fugitive-slave law, repealed June 13, 1864. CITY OF GALENA. 8/ The city of Galena, in 1850, lay principally on the north bank of the river, and had in that year a population of 6000; the whole population of JoDavies County was only 18,600. The road was located at first on the south side, because of very hostile opposition, on the part of the people of Galena, to the extension of the line across the river, owing to a fear that their trade would be injured, which at that time was quite large. After the bridge was constructed across the river by the railway coni- pany, one of the old settlers sat at the south end and swore that he would shoot the first engineer who attempted to cross; a little kindly persuasion on the part of some of the more conservative citizens induced him to retract this oath. Some idea of the value and magnitude of the business of the city may be gathered from the following table of exports for 1851 : Lead, 33,082,190 pounds, value $1,417,151. Flour, 39,385 barrels. Barley, 42,731 bushels. Pork, 3,185 barrels. Lard, 125,000 pounds. Bacon, 312,568 pounds. Butter, 87,618 pounds. Eggs, 22,880 dozen. Hides and skins, 9,326 Horses, 800 head. Cattle, 1,500 head. Lumber, 5,085,684 feet. Shingles, 2,470,000 bundles. The town was laid out in 1827 and incorporated as a city in 1839- The fear, as to constructing a railway through the city, was certainly well founded, for the completion of the road to Dun- leith— now called East Dubuque— 17 miles north, proved almost the ruin of Galena as a business centre; the trade being trans- ferred to Dubuque. The road from Galena to Dunleith was opened Monday, June 11, 1855; and the first passenger - train passed through on that day. No railways were at this time con- 88 WORK COMPLETED — COL. MASON RESIGNS. structed from Dubuque west, and all the merchandise for the Upper Mississippi and the northwest was transferred to steamers at Dunleith, where large and substantial stone warehouses were erected to receive and store it. This gave for the time being quite an impetus to the place; the price of city -lots rapidly advanced; a fine, large hotel, called the "Argyle House," which many old lUinoisans remember well, was erected by Frederick S. Jesup, a banker of Dubuque, besides many stores and dwellings. A connection with Chicago at Freeport was made by using the tracks of the Galena - and - Chicago - Union Railroad, which, in 1864, became a part of the Northwestern Railway system. When the Chicago -and- Iowa Railroad was built in 1872, from Aurora to Forreston on the main line, its tracks were used and the arrangement via Freeport discontinued. The Chicago branch between Chicago and the junction with the main line, a distance of 249.78 miles, was completed September 26, 1856.* Sections of the different divisions were operated as fast as completed. On Saturday, September 27, 1856, Col. Roswell B Mason, engineer-in-chief, having been notified that the last rail was laid on the 705.5 miles of road and that the construction of the Illinois-Central Railroad was an accomplished fact, immediately sent a dispatch to the board of directors in New York informing, them of the circumstance. Shortly after, he tendered his resignation to the board, and it was reluctantly accepted. In 1861, he was appointed comptroller of the land - department and retained that position until 1867. In 1865, he was appointed by the state legislature one of the members of the Chicago board of public works to superintend the lowering of the summit of the Illinois -and - Michigan Canal. In 1869, he was elected mayor of the citj of Chicago, and held that office at the time of the great fire, Oct. 9, 1 871; he is still (August, 1890) a resident of Chicago. In 1857, what was known as the Peoria - and - Oquawka Rail- road was constructed from Oilman on the Chicago branch to El Paso on the main line, thus forming a connection between these * The original plan was to have the Chicago branch leave the main line at a point between Decatur and Vandalia. COST OF ROAD — CHARTER-TAX. 89 two important divisions. The Oilman, - Clinton - and - Springfield Railroad, connecting the branch with the capital of the State, was opened for business on December 3, 187 1. The early estimates as to the cost of construction of the Illi- nois-Central Railroad proved erroneous : it was supposed that the proceeds of the $17,000,000 of mortgage debt created, secured by 2,000,000 acres of land, would be amply sufficient to con- struct the road, and that, immediately upon its completion, the traffic offering would yield sufficient revenue to pay the interest on the bonds issued so that no large contribution from share capital would be necessary; but this proved a disappointment, and it was found necessary to call in not only the entire amount of the share capital, but to increase the capital, all of which was paid up in full. The charter provided that the capital stock should be $1,000,000, which might be increased from time to time to any sum not exceeding the entire amount expended on account of the road. The capital was fixed at $17,000,000, cor- responding to the amount of the mortgage debt, but this has been gradually increased to meet the necessities of the company. It is now $40,000,000. The total cost of the 705.5 miles of road alone, as shown by the report of June 30, 1889, was $35,110,609.21. The dependence placed upon the value of the lands granted also proved a disappointment. The entire pro- ceeds of these, so far as received, during the construction of the line and until its completion were not sufficient to make up the deficiency in interest on the funded debt. To refer again to the clause in the charter of the company requiring the payment of a tax of seven per cent on the gross earnings, its great importance to the State may be better under- stood when it is stated that, up to October 31, 1889/ no less than the enormous sum of $11,873,337.14 has been paid into the state treasury under this requirement. It may not be uninterest- ing to the tax-payers of Illinois to show what this sum practically represents in assets of the State. In a recent report prepared by Hon. C. W. Pavey, state auditor for the United-States census department, the value of public buildings owned by the State is shown as follows: 90 ILLINOIS' ASSETS — PROVISIONS AS TO TAX. State-house, Springfield, $4,000,000 Northern Insane Hospital, Elgin, 535!°°° Eastern Insane Hospital, Kankakee, 1,211,000 Central Insane Hospital, Jacksonville, 800,000 Southern Insane Hospital, Anna, 643,000 Institution, Deaf and Dumb, Jacksonville, 385,000 Institution for the Blind, Jacksonville, 171,000 Asylum for Feeble-Minded, Lincoln, 182,000 Soldiers' Orphans' Home, Normal, 148,000 Charitable Eye-and-Ear Infirmary, Chicago, 84,000 State Reform School, Pontiac, 220,000 Soldiers and Sailors' Home, Quincy, 235,000 Northern Penitentiary, Joliet, 1,500,000 Southern Penitentiary, Chester, ' 750,000 Normal University, Normal, 250,000 Illinois University, Urbanna, 270,000 Southern University, Carbondale, 200,000 Executive Mansion, Springfield, 50,000 Supreme Court, Ottawa, . 50,000 Supreme Court, Mount Vernon, 5S,°oo State- Arsenal, Springfield, 15,000 $11,754,000 In the constitution of 1870, the following reference is made to the payment of this tax: "No contract, obligation, or liability, whatever, of the Illinois -Central Railroad Company to pay any money into the state treasury, nor any lien of the State upon, or right to tax property of, said company in accordance with the provisions of the charter of said company, approved February 10, in the year of our Lord 185 1, shall ever be released, sus- pended, modified, altered, remitted, or in any manner diminished or impaired by legislative or other authority; and all moneys derived from said company, after the paying of the State debt, shall be appropriated and set apart for the payment of the ordi- nary expenses of the state government, and for no other purpose whatever." The act of 1 869, known as the Lake-Front act, contains this clause : " This act shall not be construed nor have the effect to EFFECTS OF THE CIVIL WAR. 9 1 release the Illinois -Central Railroad Company from the payment into the treasury of the State of Illinois of the per centum on the gross or total proceeds, receipts, or incomes derived from •said road and branches stipulated in the charter of said com- pany." The year r86i was a memorable one in the history of the Illinois-Central Railroad. Ten years had elapsed since its charter was obtained. The road was fully completed and thoroughly -equipped, but the results of operating it were disappointing. In April of that year, the government placed a force of troops at Cairo. Conmiunication with the south being prohibited, the through business was cut off, and the interests of the company suffered for a time both in the loss of traffic and the failure of the farmers to pay for their lands. To add to the difficulty, the bank issues in Illinois were largely based upon the securities of the Southern States. The overthrow of this currency caused the with- drawal of $12,000,000 of paper from circulation with great loss .to the holders. The tax payable to the State upon the gross •earnings was, at that time, payable in gold, and the company was obliged to pay a premium of twenty-five per cent for a draft on New York, payable in coin. As the farmers indebted to the company could not meet the payments due on their lands in cash, the land-department adopted the alternative of accepting pay from them in corn, with which their cribs were overflowing. Commencing August i, in that year, there were received 1,860,- •000 bushels of corn for lands, and a large. quantity was received in the following year. With the necessities growing out of the war, sorghum, or Chinese sugar cane, began to be successfully cultivated in Illinois in 1861, and about 1,500,000 gallons of syrup were produced. Cotton was also raised to a considerable extent in southern Illinois, the price of that staple having reached one dollar per pound. Many of the settlers on the company's lands in southern lUinois were from the south, and were, therefore, familiar with the cultivation of both these products. The loss of the southern traffic was soon compensated for in 92 POSSESSION BY UNITED-STATES GOVERNMENT. the extraordinary impetus given to every branch of business by the equipment and movement .of the vast number of men placed in the field. It is estimated that in Illinois alone that year 65,000 men were withdrawn from the ordinary occupations of civil life to engage in warlike pursuits. The corn, hay, and oat crops of 1 86 1-2 were unusually good, and the prices of these products advanced. The demand from the south, though not of the character looked for, was very great, and all the corn, oats, and hay, that could be transported to Cairo, found a ready pur- chaser at extraordinarily high prices in the person of Uncle Sam's quartermaster. Corn sold at one time at $1.50 per bushel at Cairo and hay and oats were correspondingly high. The offerings of freight were beyond the carrying capacity of the line; and traffic was tendered at various points, with a cer- tainty that it could not be moved, in order that claims for damages for refusal to receive might be made. Several hundred thousand dollars were paid out on this account. The movements of troops and munitions of war were so large that at times whole regiments had to be transported in freight cars. It was no uncommon thing for the passenger department to receive an order to move 10,000 troops at a few hours' notice. From this time on, the revenues of the line were immense, and the interest on the bonded debt of the company was no longer a source of anxiety to those who had stood by it so heroically through the struggles of the preceding decade. The first dividend on the shares, two per cent, was earned and paid that year, six years after the com- pletion of the line. The road was placed at the service of the government, which at times had practical possession, and the number of troops transported over it was very large, as was also the quantity of munitions of war and stores. Most of the lUinois, Minnesota, and Wisconsin troops were sent south via Cairo. The first de- tachment of Illinois volunteer troops, under orders of Governor Richard Yates and in command of Brig. -Gen. Swift of Chicago, was carried south in April, 1861. It was rumored that the con- federates intended an attack on some of the bridges on the road south of Centralia, and these men were sent there to defend them. UNION OFFICERS AND SOLDIERS FURNISHED. 93 Such was the haste with which they were dispatched, that most of them were unprovided with arms! For these and many other bodies of troops forwarded, the company did not wait to obtain proper requisitions from the State, and consequently no compen- sation was allowed for the service. A large sum of money due from the State remains unpaid to this day. Free transportation was given during the war for all supplies forwarded to the sick and wounded in the hospitals in the South. During the war, not only slaves and refugees from the South, but deserters from the southern army, and, I am sorry to add, a few from the Union army escaped by crossing the river at Cairo. The demands upon the road-bed and rolling stock of the com- pany, from i86r to 1865, were so heavy that at the close of the war, the track had been so overtaxed as to be in an almost unsafe condition, and it was restored only after many years of labor and the expenditure of large sums of money. Many of the Union officers and privates, previous to the war, occupied positions in the service of the Illinois-Central Railroad Company. Among them were : Maj.-Gen. George B. McClellan was engineer-in-chief in 1856 and vice-president in 1857-9. The financial resources of the company at this time were quite limited, so that the position proved a most trying one to fill. In that year the company was compelled temporarily to make an assignment of its property, and the then Capt. McClellan was appointed one of the assignees. This trust he administered with great faithfulness. He was cou- rageous under difficulties, exceedingly tender-hearted, just and considerate in his treatment of those placed under him, and was beloved by all with whom he came in contact. He had charge of Chicago Harbor in 1843, 3-nd superintended the removal of the sand-bar across the Chicago River. Maj.-Gen. Ambrose Everett Burnside was cashier of the land- department in Chicago and treasurer of the company. He was a director of the company from 1865 to 1868. Upon the break- ing out of the war in 1861, he was called by Gov. Sprague of Rhode Island to take charge of the state troops, and from the colonelcy of the First Rhode Island Regiment he rapidly rose to 94 BANKS, RANSOM, BRAYMAN, AND OTHERS. the rank of major-general. His distinguished services in North? Carolina caused him to be promoted to the chief place in com- mand of the Army of the Potomac. He afterward served his State many years and until his death as United-States senator. Maj.-Gen. Nathaniel P. Banks was resident director in Chicago from September, i860 to June, 1861. He left this post to enter the army. Brig. -Gen. Thomas E. G. Ransom was station-agent at Farina,. a small station in southern Illinois, at the time the war broke out. He lived, fought, and died a brave man, every inch a soldier. I last saw him alive in his tent at Bird's Point, in May, 1861. He was anxious to be ordered to the front. Brig. -Gen. Mason Brayman was one of the solicitors of the com- pany. He did good service for the company during its early organ- ization and was instrumental in securing most of its right of way. Brig. -Gen. John Basil Turchin, colonel of the Nineteenth Illi- nois Volunteers and author of "Chickamauga," 1889, was en- gaged in the land-department. He induced a large number- of his countrymen to settle upon the lands of the company near Radom Station. Brig. - Gen. H. L. Robinson, for whom President Lincoln showed some friendship, was a conductor on one of the subur- ban trains. He rose to the position of colonel and quartermaster. Col. John B. Wyman, colonel of the Thirteenth Illinois Volun- teers, lived at Amboy; was division superintendent of the north division; he was killed at Chickasaw Bayou, December 27, 1862. Col. David Stuart was one of the solicitors of the company. Lieut. Wm. DeWolf was engaged in the land-department. He died June 2, 1862, from injuries received at the fight at Williams- burg, Va., May 4, in that year. Maj. Joseph Kirkland, for some time auditor of the company, entered the volunteer service in 1861, in the first levy of troops. He served faithfully and gallantly as private, lieutenant, captain, and major, successively, and was with Gen. McClellan in his Virginia campaign, and remained in the service until 1863. The major is now connected with the staff of the Chicago Tribune. Col. James T. Tucker, who was aid to Gen. Banks while the EVERETT, CARSON — DEVELOPMENT. 95 latter was in charge at New Orleans, was an assistant-treasurer of the company. He was commissioned by Gov. Richard Yates in 1 86 1. He was a most generous -hearted young man, and every one who met "Jimmy" Tucker learned to love him. After the war he was the company's general southern agent at New Orleans, which position he filled most acceptably. He died in that city, April 15, 1874. Sergt. Charles W. Everett, of Battery A, Chicago Light Artil- lery, had been employed in the land-department; he received a fatal wound at the battle of Belmont, Ky., and was brought to his home at Woodlawn and died there. It was my privilege to watch with him during his last night on earth. Irving W. Carson, the celebrated scout who served in the army of the Potomac, had been conductor on the Hyde-Park train, and was killed while serving under Gen. Grant at Vicksburg. There were hosts of others, principally privates, but many of whom rendered meritorious service, that enlisted from the ranks of the Illinois -Central Railroad. In truth, during the early part of the war, enlistments by the employes were so numerous that it was difficult to find men to take their places. Since the completion of the original 705.5 miles of the Illinois- Central Railroad proper, the company has purchased, leased, or constructed, seventeen other lines extending into ten different states and running through nearly fifteen degrees of latitude, until it now has in its system a mileage four times as great as that orig- inally projected, or say 2888 miles. Prominent among these is the line between Cairo and New Orleans, sometime known as the "Chicago,-St. Louis-and-New-Orleans Railroad," to which full reference will be hereafter made. But the parent road is, as it always has been, the main-stay of the entire system: all the lateral lines pay tribute to it, so that the State receives its enormous tax not only as at first upon the 705.5 miles within its limits, but upon all the revenue derived from traffic contributed by these lateral lines (which were purchased, constructed, or leased as feeders) as well as by each connecting line. No other state in the Union enjoys such a fruitful source of income from its 96 CHICAGO HARBOR AND IMPROVEMENT COMPANY. railways. The road employs 12,383 men, owns 470 locomotive engines,* 413 passenger-coaches, and 13,862 freight cars. Its right of way is the most liberal of any railroad in the world, being 200 feet in width over its entire length. For the 705 miles, this covers about 16,000 acres of land, equal to twenty-five miles square in area. LAKE -FRONT ACT OF 1869. I s'uppose a history of the Illinois -Central Railroad, however brief or condensed, would be incomplete without a reference to the lake -front act. It will perhaps be a revelation to many to learn that the Illinois - Central Railroad Company was not the first in the field in the effort to acquire the lake front, and it will perhaps be a matter of interest to many to learn just how the plan originated. As far back as 1866, an organization known as the Chicago Harbor Improvement Company, and which was composed of many of the leading citizens of Chicago, attempted to obtain from the legislature of the State of Illinois certain rights which can be more clearly defined and understood by certain articles of agreement entered into by those interested in it, which were as follows : Chicago Harbor-and-Improvement Company. "Articles of agreement and association made and entered into by and between the respective subscribers hereto, each with the other, for the uses and objects and upon the declarations herein contained and stated. First: It is hereby declared to be the object of this associa- tion to secure by legislative, and other grants, franchises, immu- * The first locomotive engine built in Chicago by a railway company for its own use was that constructed by the Illinois-Central Railroad Company at its Weldon shops in March, 1862, and known as Engine No. 44. Up to 1856, the company was burning wood in their engines, for which they were paying about $5 per cord. That year some experiments were made in burning coal, by changing the fire-boxes of the engines, which proved successful, and all the wood-burning engines were gradually changed to coal burners; thus effecting a large reduction in the operating expenses of the road, as coal could be purchased for about '$1 a ton at the mines. CHICAGO HARBOR AND IMPROVEMENT COMPANY. 97 nities, easements, and privileges, the right to create, fill in, con- struct, build, dredge, excavate and dig out, own and possess, lands, piers, wharves, breakwaters, sea-walls, canals, slips, docks, warehouses, elevators, stores, and buildings of every name and description, within and upon, and off from the limits, or any part thereof, now covered by the waters of Lake Michigan, or the Chicago River, lying and situated opposite and east of fractional sections 22 and 15 and that portion of fractional section 10 lying south of the Chicago River, in township 39, north -range 14, east of the third principal meridian, within one mile of the shore of said lake, or within so much and such part of said limits as may be feasible and expedient, and therein and there- upon, to create, fill in, construct, build, dredge, excavate and dig out, own and possess, lands, piers, wharves, breakwaters, sea-walls, canals, slips, docks, warehouses, elevators, stores, and buildings of every name and description, and do all and singular, such other work and perform such other acts as may be neces- •sary to be done to carry out and effectuate the object and ends of this association. '^Second: This association shall be known and called 'The Chicago Harbor Improvement Company.' "Third: The oflScers of the association shall consist of a presi- dent, vice-president, treasurer, secretary, and an executive com- mittee composed of five members of the association, to be chosen by the association. Said officers and executive committee to hold office during the pleasure of the association. The duties of the executive committee shall be to obtain the legislation, grants, franchises, immunities, and easements mentioned in the first section of these articles. "Foui'th: All grants, franchises, immunities, and easements obtained by the association shall run to individuals composing said association, and shall be owned and possessed by the several members thereof in equal undivided pro-rata proportions; and each member thereof shall have the right, upon the organization of any corporation under and by virtue of such grants or fran- chises, to subscribe for and receive an equal proportion with each and every other member thereof of the capital stock of such corporation. 7 98 LAKE-FRONT ACT. '■'Fifth: It is hereby agreed by and between the parties hereto, that each member hereof is Hable for and hereby promises to pay to the treasurer hereof his equal pro-rata proportion of all assessments made to defray the expenses incident to the obtain- ing of the legislation, grants, franchises, and easements aforesaid. "Sixth: All assessments under article "fifth shall be made by the association at a meeting called by the secretary thereof by written or printed notice to each member thereof, such notice specifying the time, place, and purpose for which such meeting is called. For the purpose of this section, one-half of the mem- bers of said association shall constitute a quorum, and a majority vote of such quorum shall be sufficient to create a valid assess- ment. "Seventh: Any member of the association failing to pay each and every assessment made against him in accordance with sections fifth and sixth after notice and demand by the treasurer shall forfeit to said association all interests in its grants, fran- chises, immunities, and easements, and may by resolution be declared expelled therefrom. "Chicago, March lo, 1866, A. D." The organization that sought to obtain this franchise was com- posed of many of the leading citizens of Chicago, but they were governed by selfish motives, and could give nothing in return — it is even doubtful whether they would have carried out their scheme. They failed to procure the privileges they sought to obtain, and at the next session in 1869, the legislature conferred similar rights upon the railroad company by the passage of an act of which the following is a copy : Lake-Front Act. "An act in relation to a portion of the submerged lands and lake -park grounds, lying on and adjacent to the shore of Lake Michigan, on the eastern frontage of the City of Chicago. "Section i. Be it enacted by the people of the State of Illinois, represented in the General Assembly, That all right, title, and interest of the State of Illinois in and to so much of fractional section 15, township 39, range 14, east of the third principal meridian, in the City of Chicago, County of Cook, and State of LAKE- FRONT ACT. 99 Illinois, as is situated east of Michigan Avenue and north of Park Row, and south of the south line of Monroe Street, and west of a line running parallel with, and four hundred feet east of the west line of said Michigan Avenue — being a strip of land four hundred feet in width, including said avenue along the shore of Lake Michigan, and partially submerged by the waters of said lake — are hereby granted, in fee, to the said City of Chicago, with full power and authority to sell and convey all of said tract east of said avenue, leaving said avenue ninety feet in width, in such manner and upon such terms as the common council of said city may, by ordinance provide: Provided, that no sale or convey- ance of said property, or any part thereof, shall be valid unless the same be approved by a vote of not less than three-fourths of all the aldermen elect. "Sec. 2. The proceeds of the sale of any and all of said lands shall be set aside, and shall constitute a fund, to be desig- nated as the "park fund" of the said City of Chicago, and said fund shall be equitably distributed by the common council between the south division, the west division, and the north division of the said city, upon the basis of the assessed value of the taxable real estate of each of said divisions, and shall be applied to the purchase and improvement, in each of said divi- sions, or in the vicinity thereof, of a public park, or parks, and for no other purpose whatsoever. "Sec. 3. The right of the Illinois-Central Railroad Company, under the grant from the State in its charter, which said grant constitutes a part of the consideration for which the said com- pany pays to the State at least seven per cent of its gross earn- ings, and under and by virtue of its appropriation, occupancy, v.se, and control, and the riparian ownership incident to such grant, appropriation, occupancy, use, and control in and to the lands submerged or otherwise lying east of the said line running parallel with, and four hundred feet east of the west line of Michigan Avenue, in fractional sections 10 and 15, township and range as aforesaid, is hereby confirmed, and all the right and title of the State of Illinois, in and to the submerged lands»constitut- ing the bed of Lake Michigan, and lying east of the tracks and lOO LAKE -FRONT ACT. breakwater of the Illinois - Central Railroad Company, for the distance of one mile, and between the south line of the south pier extending eastwardly, and a line extended eastward from the south line of lot twenty-one, south of and near to the round house and machine-shops of said company, in the south division of the said City of Chicago, are hereby granted, in fee, to the said Illinois - Central Railroad Company, its successors and assigns: Provided, however, that the fee to said lands shall be held by said company in perpetuity, and that the said company shall not have the power to grant, sell, or convey the fee to the same; and that all gross receipts from use, profits, leases, or otherwise of said lands, or the improvements thereon, or that may hereafter be made thereon, shall form a part of the gross proceeds, receipts and income of the said Illinois-Central Rail- road Company, upon which said company shall forever pay into the State treasury, semi-anlmally, the per centum provided for in its charter, in accordance with the requirements of said charter; And provided, also, That nothing herein contained shall authorize obstructions to the Chicago harbor, or impair the public right of navigation; nor shall this act be construed to exempt the Illinois- Central Railroad Company, its lessees or assigns, from any act of the general assembly which may be hereafter passed regulat- ing the rates of wharfage and dockage to be charged in said harbor: And provided further. That any of the lands hereby granted to the Illinois - Central Railroad, and the improvements now, or which may hereafter be, on the same, which shall here- after be leased by said IlHnois-Central Railroad Company to any person or corporation, or which may hereafter be occupied by any person or corporation other than the said Illinois - Central Railroad Company, shall not, during the continuance of such leasehold estate, or of such occupancy, be exempt from munici- pal or other taxation. "Sec. 4. All the right and title of the State of Illinois, in and to the lands, submerged or otherwise, lying north of the south line of Monroe Street, and south of the south line of Randolpli, Street, and between the east line of Michigan Avenue, and the track and roadway of the Illinois-Central Raihoad Com- LAKE- FRONT ACT. lOI pany, and constituting parts of fractional sections lo and 15, in said township 39, as aforesaid, are hereby granted, in fee, to the Illinois-Central Railroad Company, the Chicago,-Burlington-and- Quincy Railroad Company, and the Michigan-Central Railroad Company, their successors and assigns, for the erection thereon of a passenger-depot, and for such other purposes as the business of said company may require. Provided^ That upon all gross receipts of the Illinois-Central Railroad Company from leases of its interest in said grounds or improvements thereon or other uses of the same, the per centum provided for in the charter of said company shall forever be paid in conformity with the require- ments of said charter. "Sec. 5. In consideration of the grant to the said Illinois- Central, Chicago,-Burlington-and-Quincy, and Michigan-Central railroad companies of the land as aforesaid, said companies are hereby required to pay to the said City of Chicago, the sum of $800,000, to be paid in the following manner, viz.: $200,000 within three months, from and after the passage of this act, $200,000 within six months from and after the passage of this act; $200,000 within nine months from and after the passage of this act; $200,000 within twelve months from and after the passage of this act; which said sums shall be placed in the park fund of the said City of Chicago, and shall be distributed in Hke manner as is hereinbefore provided for the distribution of the other funds which may be obtained by said city from the sale of the lands conveyed to it by this act. "Sec. 6. The common council of the said City of Chicago is hereby authorized and empowered to quitclaim and release to the said Illinois-Central Railroad Company, the Chicago,-Burling- ton-and-Quincy Railroad Company, and the Michigan -Central Railroad Company, any and all claim and interest in and upon any and all of said land north of the south line of Monroe Street, as aforesaid, which the said city may have by virtue of any expenditures and improvements thereon or otherwise, and in case the said common council shall neglect or refuse thus to quitclaim and release to the said companies, as aforesaid, within four months from and after the passage of this act, then the said 102 ACCEPTANCE — VETO BY GOV. PALMER. companies shall, be discharged from all obligation to pay the balance remaining unpaid to said city. "Sec. 7. The grants to the Illinois - Central Railroad Com- pany contained in this act are hereby declared to be upon the express condition that said Illinois - Central Railroad Company shall perpetually pay into the treasury of the State of Illinois the per centum on the gross or total proceeds, receipts, or income derived from said road and branches stipulated in its charter, and also the per centum on the gross receipts of said company reserved in this act. "Sec. 8. This act shall be a public act and in force from and after its passage.'' This act was accepted by the board of directors of the Illinois- Central Railroad Company, July 16, 1870, and the secretary of state advised accordingly. This bill was returned to the house of representatives April 14, 1869, by Gov. John M. Palmer without his approval. The reasons given for the veto were that the consideration for the grant was insufficient — that the rights that were confirmed to the railroad company were too vaguely enumerated — that the act was not, in his judgment, coupled with such restrictions as would protect the rights of the State — that the act did not 7'equire the Illinois-Central Railroad Company to place improvements on the submerged lands — that the price named for the three blocks of land between Randolph and Monroe streets — intended to be used for a passenger- depot — $800,000 — was below the market- value. On April 16, 1869, however, the act was passed in the house over the governor's veto by a vote of 52 to 31, and in the senate by a vote of 14 to 11. A careful examination of the act will show that, although the railroad company was to receive an extraordinary grant, the interests of the State at least were very well guarded. The railroad company could not part with the fee, and were obligated to pay perpetually to the State upon all gross income derived from the property the same percentage that they pay on the gross earnings of their railway, 7 per cent; NECESSITY OF DOCKS FOR CHICAGO. 103 also taxes to the City of Chicago upon any of the lands acquired under the grant, that might be leased to other parties. There was also a provision in the act that the general assembly should reserve power to regulate the rates for dockage. The view taken by many senators and representatives who voted for this measure was, that the State was simply utilizing its interest in the submerged lands by constituting thera a- source of permanent income to it and incideiitally to the City of Chicago. The ownership of docks by municipalities has never proved very profitable, and their construction and maintenance have been fruitful sources of cor- ruption. It is possible, therefore, that what was regarded by some, at the time, as a tremendous "steal" might have proved a large and permanent benefit to the city and to the State. The construction of piers at that time would have afforded splendid facilities for the shipping interest of Chicago, and a strong effort was made to induce the Michigan -Avenue prop- erty owners to consent to their erection, but ifiany of them owning comfortable and costly homes were reluctant to surrender them to the demands of business, and rehnquish rights which they had acquired under original purchase, as well as under a special act of the legislature of the State of Illinois, passed in 1863, which is as follows: "The State of Illinois, by its canal - commissioners, having declared that the public ground east of said lots should forever remain open and vacant, neither the common council of the City of Chicago nor any other authority, shall ever have the power to permit encroachments thereon without the assent of all the per- sons owning lots or land on said street or avenue.'' The great need of the City of Chicago is increased dockage ; the accommodation offered by those on the Chicago River and its branches is entirely inadequate to the wants of a great city of nearly 1,200,000 inhabitants. The loss of time and great expense to which vessels are subjected by reason of being compelled to pass through the numerous bridges spanning the Chicago River are very great, and have inflicted incalculable injury upon the shipping interest of the port of Chicago, while the delay caused by the opening and closing pf the bridges has also proved a 104 REPEAL OF LAKE-FRONT ACT. serious inconvenience and loss to her citizens. With each section of the city now supplied with a park, and some of them but partially completed, the necessity for an additional one in the business portion of the city, and which can only be created at great expense, does not seem as pressing or important as the construction of additional docks, which the city under its charter has the right to construct. During the year 1889, 10,804 vessels arrived at the port of Chicago, representing a tonnage of 5,102,790. On July 3, 187 1, with a view of preventing encroachments upon the shore of the lake, certain proceedings were commenced by the United States by information filed in the United-States circuit-court and a temporary injunction was obtained. A year later, a stipulation was entered into between the railroad company and the war department upon the recommendation of the engi- neer officers of the United-States government, establishing certain dock lines on the east, to which point, those authorized, should be allowed to construct piers. Two years later, April 15, 1873, the following act was passed: "An act to repeal an act entitled 'An act in relation to a portion of the submerged lands and Lake-Park Grounds, lying on and adjacent to the shore of Lake Michigan, on the eastern frontage of the City of Chicago; in force April 16, 1869.' "Section i. Be it enacted by the people of the State of Illinois represented in the general assetnbly, That the act entitled 'An act in relation to a portion of the submerged lands and Lake-Park Grounds, lying on and adjacent to the shore of Lake Michigan, on the eastern frontage of the City of Chicago; in force April 16, 1869,' be and the same is hereby repealed." The subsequent Htigation growing out of the passage of these various acts culminated in the decision rendered by Judge Harlan and H. W. Blodgett, February 23, 1888, in the United-States circuit - court. This decision confirmed to the Illinois - Central Railroad Company its title to all lands held by it north of Randolph Street and also all its rights as riparian owner south of Park Row. As to the distance between Park Row and Randolph Street, the following extract, from the opinion referred to, will perhaps give the reader a clearer view of the decision rendered by the court : VISIT OF FOREIGN DELEGATES. I05 "Upon the whole case, we are of opinion that the effect of the repeahng act of 1873 was to withdraw from the' railroad company as well the grant of the submerged lands described in the third section of the act of 1869, as the additional powers therein con- ferred upon it, by implication, to engage in the business of con- structing and maintaining wharves, piers, and docks, for the bene- fit of commerce and navigation generally, and not in the prose- cution of its business as defined and limited by its original charter; saving to the company the right to hold and use, as part of its way ground, or right of way, the small part of the submerged lands, outside of its breakwater of 1869, between Monroe and Washington Streets, extended eastwardly, which was reclaimed — ^presumably upon the faith of the act of 1869 — from the lake in 1873. Such appeal was attended with the further result, that while the city of Chicago may, under its charter, pre- serve the harbor, prevent obstructions being placed therein, and make wharves and slips, at the ends of streets, the exercise of those powers, and the whole subject of the development or improvement of the harbor by a system of wharves, docks, piers, and other structures, is with the State, subject only to the para- mount authority of the United States under the power of congress to regulate commerce." An appeal to the United-States supreme court may be taken by any one of the parties interested, viz: the Illinois -Central Railroad Company, the city of Chicago, or the state of Illinois, at any time within two years after entry of decree — Sept. 24, 1888. VISIT OF FOREIGN DELEGATES. The year 1876 brought new misfortunes to the affairs of the company. Restrictive legislation in Iowa, of the most aggres- sive character, compelled a large reduction in local tariff rates on the lines in that state, and, incidentally, on all through traffic to and from all points within the State. The difficulty was aggra- vated by a loss of revenue consequent upon a failure of crops both in Iowa and Illinois. Added to this, there had been a large number of new lines constructed throughout the West, but par- I06 TRUNK-LINE WAR. ticularly in the states of Illinois and Iowa, for which there was no remunerative traffic. The division of the limited traffic over so many lines was, as Mr. Wilson G. Hunt aptly expressed it, like giving "one bone to two dogs." Competition became very sharp and rates were forced so low that many of the weaker lines were driven into bankruptcy. The crowning folly of this dark year in railroad history was the inauguration of the fierce trunk-line war between the Baltimore- and-Ohio Railroad and the Vanderbilt lines, and in which the Pennsylvania- Central was necessarily involved. It was largely a struggle for supremacy between cities, but much personal bitter- ness was also engendered. Mr. Garrett boasted of his shorter line to the seaport and his cheap fuel, and made his demands accord- ingly. Mr. Vanderbilt pointed to his curveless and gradeless four-track line as more than an equivalent. The battle waxed sore. Freight was moved for some time at rates below the cost of carrying. Practically, at Chicago, both of these systems entered into competition with the lakes and canal. The result was a loss, and both sides, weary of the fray, came out of it with largely exhausted resources. The introduction of larger grain- carrying vessels on the lakes, and the reduction of tolls on the Erie Canal, soon proved to the trunk-lines the folly of attempting to compete with water -carnage. The effect upon all the weaker east-and-west lines was most disastrous — they were compelled to carry freight from all junction points south of Chicago at the same rates as prevailed at Chicago. This, of course, seriously affected the operations of the Illinois - Central Railroad, as it deprived them of the haul to Chicago. The result was that their traffic, at all the junction -points in Illinois, was con- fined to short hauls between the stations, changing, in fact, the entire working of this part of the line by reducing it to a local business. This division of traffic, with the loss of the long haul to Chicago — which had for so many years proved so certain and profitable a source of income to the company — proved very injurious to its revenue. The unsatisfactory condition of the affairs of the company— which, however, reflected in no degree fairly upon the manage- MEETING OF SHARE-HOLDERS IN LONDON. 107 nient, being due entirely to circumstances over which they had no control — produced a feeling of restlessness among the foreign holders of its shares who could not so well appreciate the condi- tions which led to it as those on this side of the Atlantic Ocean. The average shareholder will rest in sublime contentment and with a confidence born rather of calm indifference than of intel- lectual comprehension, regarding the affairs of his company, so long as other brains are working out successful results for his benefit. He will saunter into the treasurer's office semi-annually or quarterly, if notified, scrawl his name on the dividend-book in a more or less legible style, receive his check in silence or per- haps with a little growl, and saunter out again, scarcely troubling himself to inquire whether his dividend is earned or only paid. But woe be to the luckless wight of an official, who, through an error of judgment or unforeseen circumstances, fails to accom- plish all that he attempted in the way of cash returns, even though he be fortified with the aforesaid shareholder's proxy. A shareholder's meeting is a tame affair with the shareholders — with dividend - checks in their pockets — absent; but a meeting of shareholders to consider ways and means will soon resolve itself into a warring demonstration. So, in this case, this temporary check to the company's prosperity — happily apparent rather than real — was first felt on this side of the water where the circum- stances of the case were better understood, and its effect was soon discounted. London and Amsterdam slowly responded to the shock. A meeting was held in London on January 26, 1877, to con- sider existing difficulties, which was presided over by Sir John Rose, and at which were present a large number of English shareholders, and representatives of the administration office for American railroad securities in Amsterdam, at which some unnecessary denunciation was indulged in. Their action, how- ever, resulted in the sensible conclusion to appoint a joint- committee to select delegates to proceed to New York, to confer with the directors and to examine into the financial condition of the company, and then to visit Illinois and the South to make a critical examination of the company's property and report upon I08 REPORT OF FOREIGN DELEGATES. its condition and resources. Captain Douglas Galton was ap- pointed on behalf of the English shareholders, and H. de Marez Oyens on behalf of the Dutch shareholders. They sailed for New York and held a series of lengthy and very satisfactory con- ferences with the directors, resulting in a complete dissipation of the unfounded fears which had been entertained. They then proceeded to Illinois and went over the entire line with the officers of the company, making a very thorough and critical examination of the property and of its assets. As a result of their inspection, they prepared and submitted to their respective bodies of shareholders, April 27, 1877 — three months after their appointment — a very elaborate report covering the conclusions at which they had arrived and giving their reasons in detail. It was in all respects highly compHmentary to the directors and officers of the company, and justly so, and most reassuring to the share- holders. In this report, they made various suggestions, which, if carried into effect would, in their judgment, prove advanta- geous to the interests of the company. Stringent economies were introduced into the operations of the line, and the recom- mendations of the delegates were, so far as circumstances would permit, carried out. The price of Illinois-Central-Railroad shares, which had fallen to forty cents on the dollar, rapidly recovered. The office of president had been vacant since July, 1876, at which time Mr. John M. Douglas resigned, and on October 17, 1877, the writer, who had filled the office of vice-president and had been acting-president, was elected to fill the vacancy, which position he held until August 15, 1883, afterward again serving as vice-president until January i, 1884, at which time he retired from the service. The year 1877 gave promise of better things for the railways of Illinois. The corn crop of that year in this State amounted to about 270,000,000 bushels and the wheat crop was about 32,500,000 bushels. The price of iron and steel declined to a very low point, and railway-supplies were correspondingly low. In Iowa, the indications of pubHc sentiment toward railways were, temporarily, somewhat more favorable, as the effects of RIOTS OF JULY, 1877. 109 injudicious legislation on the interests of the state were beginning to be felt by the people. The unwise and restrictive laws, which had been passed, began to cripple the railways and forbid further investments of capital and this had its effect upon the legislature of the state. RIOTS OF JULY, 1877. The dark spot in railway history this year was the inauguration of the great railway-strike which occurred in July. "Railway- strikes attended by riots were at that time in progress in several of the states, but the first demonstration in Chicago was at a mass meeting of workingmen, so called, held Monday evening, July 23, at the corner of Madison and Market streets, at which there was about 5000 present. The first indication of mob vio- lence occurred next morning — Tuesday, when a mob of men and boys, armed with clubs and sticks, moved down South- Canal Street, compelling all workmen in the lumber-yards and factories to quit work. They were dispersed by the police but later on in the day another mob collected near Remington's gun-store on State Street. This was dispersed also by the police. In the afternoon, mobs congregated in different parts of the city. The first actual violence occurred on Wednesday, when the rioters began driving men from their work and destroying property in the lumber-district, and massed a large force near McCor- mick's reaper factory on Blue -Island Avenue. A second mob congregated at Van Buren- Street bridge and still another in the vicinity of the Illinois -Central elevators. This latter was most effectually dispersed by the police under Lieut. Bell and Sergt. Brennan, who dealt with the leaders in the most summary man- ner. Before noon, several outbreaks occurred in various parts of the city and the street-cars were compelled to stop running. At the Chicago,-Burlington-and-Quincy freight-depot, five rioters were shot dead. That evening, the rioters raided a gun -store and appropriated the stock. Thursday morning, 26th, the rioters were massed in the vicinity of the i6th-Street viaduct and several sanguinary conflicts took place. At noon the rioting culminated, and the police, who were greatly exhausted from their efforts of no CONDUCT OF EMPLOYES DURING RIOTS. the four previous days, were no longer able to cope with the rioters, and it was found necessary to order out the military. The first and second regiments reported for duty; two six-pound guns and two companies of cavalry were also brought into ser- vice. These troops were stationed in different parts of the city and had a quieting effect upon the surging crowd, but in one instance they were obliged to fire upon the rioters. By Monday, July 31, the riot was practically at an end. Owing to the prompt measures resorted to and the efficiency of both the police and the military, the city of Chicago happily escaped with small loss."* The whole demonstration had none of the elements of a strike,, the men were simply intimidated and feared to go to work. The property of the Illinois - Central Railroad, as was that of many others, was imperilled by the action of lawless mobs that visited the freight-yards and shops of the company and ordered the engineers to stop moving trains and the men to quit work. These demonstrations were made in most instances by men not connected with the railroads. Almost all the Illinois- Central men took a stand and gave proof of their loyalty and devotion to the company against the rioters, and assisted in pre- serving the property of the company. Indeed, it is greatly to the credit of the men to record the fact that, during this trying or- deal, the company suffered no loss whatever beyond detention of traffic. All of its rolling-stock was removed to a place of safety, south of the city. A company of militia was organized by volunteers from the different departments of the service, muskets were purchased for their use and Col. James Noquet, chief draughtsman, was placed in command of the force which was placed on duty in the freight- yard. Many of the men had fought in the Union army, and Col. Noquet had been a soldier in the French army and had led troops against a mob in the city of Paris. These facts being made known were sufficient to deter the rioters from committing depredations. Col. Noquet was assisted by Thomas J. Tustin, William Wilkinson, Oliver A. Berry, and other faithful men, at that time in the service of the company. * "History of Chicago," by A. T. Andreas, 1885. PULLMAN PALACE-CAR COMPANY. 1 1 F In 1878, a contract was entered into with the PuUman Palace- Car Company for the use of their sleeping-cars. Previous to this, the company had constructed and used its own sleeping-cars. For a number of years after the road was constructed, it was not regarded as a passenger-line. Indeed, it is very doubtful whether the passenger receipts were sufficient to pay the expenses of keeping up this branch of the traffic. It had no through con- nections of importance, but after the acquisition of the southern- lines leading to New Orleans and to other important points in the South, the character of the business of the line was materially changed and it gradually began to take its place among the first- class passenger-lines of the country, and it became necessary to devote greater attention to this class of traffic. The introduc- tion of the elegant coaches of the Pullman Company greatly improved the service of the company, a fact which the travelling public were not slow to appreciate. May 26, 1880, ground was broken for the construction of the works of the Pullman Palace-Car Company on land adjoining the Illinois-Central tracks, about one mile north of Kensington Station. The establishment of this model manufacturing town of Pullman upon the road, at so convenient a distance from the city, gave an immense impetus to the suburban traffic which, though carried on for many years, had not, up to this time, proved very profitable. In 1879, the company constructed a bridge across the Chicago River under authority contained in an ordinance which had been passed many years before, Dec. i, 1862, entitled "an ordinance approving the plans for a bridge to be erected by the Illinois- Central Railroad Company across the Chicago River." This connected its depot-grounds on the south side with the lands of the Chicago Canal-and-Dock Company on the north side. The construction of this bridge added immensely to the facilities of the road, enabling it to reach important connections on the north side, theretofore only reached by the circuitous route afforded by the St. Charles Air-line crossing at Sixteenth Street. In 1880, the Kankakee-and-Southwestern Road, a branch line running southwest from Otto, was extended to a junction with the- 112 RAILWAY COMMaNICATION WITH THE SOUTH. northern division at Minonk, thus giving an independent connec- tion between that division and the Chicago branch. Steel rails were purchased this year to complete in steel the entire original line, and when laid soon demonstrated that the most remunerative employment of capital in a railway is in perfecting its condition. In 1881, a brick elevator, with a capacity of 600,000 bushels, was erected at Cairo ; and in Chicago two new dock.s, and the substantial iron viaduct at the foot of Randolph Street were com- pleted. In the following year, additional terminal facilities were provided by the construction of additional tracks from the Chi- cago-yards south — which- provided two tracks for freight trains, two tracks for passenger trains, and allowed two tracks to be devoted entirely to suburban business, giving the road the finest and safest entrance into a great city possessed by any railway in the world. In 1883, the South -Chicago Railroad was completed which afforded a double-track connection, about five miles in length, with this important manufacturing town and added largely to the suburban traffic. RAILWAY COMMUNICATION WITH THE SOUTH. For many years after the completion of the Illinois -Central Railroad, the directors made repeated attempts to carry out the original intention, as contemplated in the act of congress granting the public lands to the three states, by effecting an all rail com- munication with the Gulf of Mexico. Traffic to and from the South was gradually increasing; and transhipment of produce and merchandise at Cairo by ferry to Columbus, Kentucky, a distance of twenty miles, there connecting with the Mobile -and- Ohio Railroad, was attended with both unnecessary delay and expense. Accordingly in 1872, a contract was entered into with the lines that were then known as the Mississippi -Central Rail- road, 232 miles in length, and New Orleans, -Jackson, -and-Great- Northern Railway, 206 miles in length — which were operated under one management — providing for the extension of the MISSISSIPPI-CENTRAL EXTENDED. II 3 former line from Jackson, Tennessee, to a point opposite Cairo, a. distance of 108 miles, and for a mutual interchange of traffic. Under this contract, the Illinois-Central Company was to invest annually, one-eighth of its earnings from traffic to and from those lines, in their consolidated mortgage bonds to the extent of $100,- 000 per annum for ten years. This contract was afterward modi- fied to the extent of an engagement to purchase outright $200,- 000 of these bonds at par, annually, to the extent of $6,000,000 in all. This was done in order to enable the two southern lines to negotiate the bonds so as to procure the necessary means to construct the new intermediate road and make certain necessary improvements. The Mississippi -Central Road was extended to Cairo — work being completed so that it was opened for traffic December 24, 1873. This supplied a most important hnk in the direct chain from Chicago to New Orleans, a distance of 913 miles. The Illinois - Central Railroad Company subsequently ex- changed $5,000,000 of its five-per-cent bonds for the same amount of the seven-per-cent, southern bonds with the engage- ment to purchase attached, thus practically taking up its own ■obligation with a bond bearing a reduced rate of interest. The opening of an all-rail route to the south had the effect of largely diverting traffic from the Mississippi River; but the south- ern roads had scarcely recovered from their impoverished condi- tion following the close of the war, and, lacking the means to properly equip and maintain them, they were not in a situa- tion to handle the large traffic offering. Steel rails were selling at nearly $100 a ton at this time, and many other articles of rail- way supplies were correspondingly high. Added to this, the financial panic of 1873 affected all railway enterprises throughout the country, so that this and the year following were years of unusual depression; the results of the particular arrangements referred to did not therefore immediately prove as satisfactory as was expected. In 1876, the roads between New Orleans and Cairo defaulted on their interest, and, on March 10, in that year, both lines were placed in the hands of a receiver. Forclosure proceedings fol- 114 REPORT OF W. H. OSBORN. lowed, and, as a result, the Illinois -Central Railroad Company became, after about two years of litigation, practically the owner of both lines, under purchase, and the name of the company own- ing the consolidated New Orleans line was changed to the Chicago- St. I.ouis-and-New Orleans Railroad Company. It was thought by many, who were unfamiliar with the resources of the South, that the additional obligation assumed by the Illinois -Central Railroad Company would prove an onerous burden, and, for the time being, it had the effect of depressing the market-price of its shares. After the IlHnois-Central Company obtained full con- trol of the two lines, it completed their restoration to the stand- ard of first-class railways, and then what was feared at one time might prove a serious burden to the Illinois -Central Railroad Company became in reality the best paying portion of the line. The remainder of the story can best be told by producing verbatim the report of Mr. William H. Osborn, chairman of the executive committee, who, through all these trying years, never lost faith in the ultimate success of the undertaking, and to whose sagacity and foresight, aided by the indomitable energy of Mr. James C. Clarke, who was in charge of the lines, and the remark- able legal ability displayed by Judge James Fentress, now the general solicitor of the Company, may be attributed the very satisfactory termination reached. This report contains an epitome of the entire transaction and is as follows : Report of Mr. William H. Osborn, chairman of the Chicago,- St. Louis-and-New Orleans Railroad Company: "New York, Dec. 30, 1882. "To THE Board of Directors OF THE Illinois - Central Railroad Company: "Gentlemen: — This Railway, consisting of 548 mites of main- track, 31 miles of branches, with 106 locomotives, 2,241 cars, and all other property and rights attached to it, with $1,000,000, five-per-cent, 1951 bonds, $125,000, six-per-cent bonds, and $623,043.70 in cash will be surrendered to you on the first proximo, in pursuance of the lease of this property to the Illinois- Central Railroad Company, dated June 13, 1882, thus complet- FROM THE LAKES TO THE GULF. I 15 ing your system with a well-finished railroad and plant from the lakes to New Orleans. "The Hon. Stephen A. Douglas introduced in the senate of the United States in 1848, a bill 'granting to the State of Illinois the right of way and donation of public lands for making a rail- road to connect the waters of the Upper and Lower Mississippi with the chain of lakes at Chicago.' This motion resulted in the granting of lands to Illinois and similar grants to Mississippi and Alabama in order to effect the completion of this important con- nection. "It was the subject of earnest debate in the senate in 1850 and was supported by Senators Lewis Cass of Michigan, Henry Clay of Kentucky, and William H. Seward of New York. The latter gentleman, speaking of the proposed railroad, said: 'I regard this work as a great national enterprise — a great national thoroughfare.' The bill, after the advocacy of these distinguished statesman, passed the senate by a vote of nearly two to one. "In 185 1, the State of Illinois accepted a proposal to build the Road, made to it by a prominent body of New York and Boston gentlemen, all of whom, with but two exceptions, have passed away. "The act of the general assembly of Illinois, approved Feb. 10, 1 85 1, constituted your present corporation. Most of the directors named in the charter became the active managers of the Company, and, before the Illinois -Central Road was com- pleted, the directors communicated with those of the Mobile-and- Ohio Road, and upon several occasions endeavored to promote the completion of that Hne to Cairo; but the Mobile -and -Ohio Road did not reach Cairo until a recent period. The public events which arrested the progress of the country for so many- years left the railroads south of the Ohio River in the most dilapidated and ruinous condition. There was no railway com- munication from Cairo south until 1874. "Previous to your hne reaching Cairo, the products of Louisi- ana were shipped by steamboats to St. Louis, trans-shipped up. the Illinois River by smaller steamboats, trans-shipped again to, canal-boats, and reached Chicago by the Michigan Ca.nal., These; Il6 COMMERCE OF THE SOUTH. three transfers caused a delay of a month or six weeks. The grain and provisions, which were so indispensable to the South, were sent in the same circuitous way. I^ater on, this traffic was connected with your road at Cairo but in a very unsatisfactory manner, as most of the commerce upon the Lower Mississippi was destined for St. Louis and Cincinnati; Cairo was not of suffi- cient importance to command exclusive lines of boats upon the river. Moreover, this river communication was oftentimes very expensive; the frequent transfers required expensive packing of provisions; grain was sent in bags; and upon the north-bound freight, chiefly sugar and molasses, the waste and shrinkage was serious. It is a singular fact that the rates of rail transportation today from New Orleans to Chicago, and from Chicago south, are not equivalent to the loss by shrinkage and waste upon the sugar and molasses in former times, or to the cost of packing the provisions sent south, which is not now required under the present modes of shipment by rail. Thus the producer is brought close to the consumer at least expense. It is a moderate estimate to say that the prices of provisions and grain, hay, and other products of the North, now ruhng in the South, are lessened one-third by the advantage of the present rail communication. "The Illinois -Central directors, in 1872, unanimously agreed to advance about $5,000,000 toward the extension of the Missis- sippi-Central Road to Cairo, and to the improvement of the Jackson Road to New Orleans. It is not pleasant to waste words upon the failure in the expectations of the Company. These advances at one time appeared to be lost through the failure of the Southern lines to pay the interest upon the bonds purchased. These circumstances are well known to the present board. It may be well to remember that in February, 1876, the board of directors were willing to take the control of the property bur- dened with a debt of $18,372,834, with an annual interest charge of $1,404,655.97, and to spend $2,000,000 additional in the necessary improvement to the property. Negotiations to this end failed, and foreclosure proceedings were commenced by filing a bill in the federal courts in the spring of 1876. These proceedings terminated happily in 1877, and the two roads were NORTH AND SOUTH TRUNK LINE. 1 17 purchased that year in behalf of the bondholders on equal terms — the Illinois-Central holding a majority of the bonds in default. The legal steps in the foreclosure were directed by the Hon. John A. Campbell and the Hon. James Emott, and, later, by our present solicitor-general, the Hon. Jas. Fentress of New Orleans. Suffice it to say that, under the counsel of these eminent lawyers, we have not had to retrace our steps in any one instance. Repeated legislation was required from all four of the Southern States, and ordinances from the city of New Orleans, and other municipalities, all of which were obtained promptly and honestly. The desire of the Southern people to have a first-class railroad was expressed through the governors of the states and the legis- latures, who gave every assistance which could consistently be granted. This new Company is now constituted a corporation in perpetuity with the right to lease other roads or to lease its own road to the Illinois-Central Company. The acts, deeds, and papers have been carefully examined. Your possession of this property is as absolute as if the original charters had been granted to the Illinois-Central Railroad Company directly. "I have, therefore, the satifaction of concluding the active existence of this corporation which has had only five years of duration. Your road constitutes the most important north and south trunk line in the world. The traffic is chiefly in the inter- change of commodities, the exclusive growth of the South for commodities grown in the north, and is of indispensable necessity to a population of six or eight millions of people. The location of the line is so direct that this traffic is perhaps less open to competition than that of any other line on this continent. "Soon after the appointment of receivers in 1876, I induced those gentlemen to appoint Mr. James C. Clarke the general manager of both lines. It required the whole term of the receiverships to catch up with arrears. The employes were un- paid for several months; there were not fifty tons of spare rails upon the road; no supplies in the machine-shops; no fuel on hand. The demoraHzation of unpaid employes is always dan- gerous, leads to accidents, puts the Hves of all the passengers in peril and causes the death of some. There was a fatality attend- Il8 • RESULT OF CLARKE'S ADMINISTRATION. ing these lines at that time. The route was avoided; many travelers preferred to take their chance upon the river rather than face the dangers of the track. Mr. Clarke had not the power to restore order and discipline to the management of this property until the termination of the receiverships, January i, 1878. From that date, full control of the working of the line has rested upon him. Knowing him for many years, his experience, his perfect integrity, his thoroughness m every detail of railroad construc- tion and management, I have never interposed my comparatively imperfect knowledge of railway affairs. "Mr. Clarke has rebuilt this line from its ashes. At the machine-shops were piles of broken cars; and the remnants of locomotive boilers, which had been exploded for years, were still maintained on the books of the Company as engines. The bridges all required renewing; the ties were rotten and defective. From this confusion, Mr. Clarke now delivers to you a well-con- structed and equipped railroad. 35 engines and 1200 cars have been built in the shops of the Company; 24^ miles of bridging have been built; 3}^ miles of open trestle-work have been filled up with solid embankments; 1,341,500 new cross-ties have been put in, equal to 2,080 ties per mile on this whole road and side tracks. The road has been extended 3j^ miles to East Cairo; a spur line of 12 miles to Lexington is nearly completed; the passenger equipment renewed and doubled; the wooden truss bridges replaced with iron ; every bar of iron has been taken from the track, which is now laid entirely with steel; 200 miles of track ballasted with stone or gravel, and over 100 miles of the road have been fenced. It was indispensable to change the gauge, adopting the standard gauge of the North, which of course required the change of all the motive power and rolling-stock. This has been done. The side tracks were insufficient — 15 miles of new side track have been added, the shops furnished with new machinery sufficient for the repair and construction of engines and cars at both of the principal machine-shops; new shops have been built at Jackson, Tennessee. The improvements to the road render it safe; the trains are now running from New Orleans to Chicago, about the same distance as from New York to Chi- SERVICES OF JUDGE FENTRESS. II9 cago, at about the same speed. Passengers going to St. Louis were formerly two nights and one day on the road; they are now taken through in twenty-nine hours. The station-grounds on the river-bank at New Orleans were insufficient; large and valuable property has been purchased, and a freight-station, which accom- modates the West-Indian and Mediterranean freight business, built near the river front. "These betterments, which have cost about $5,000,000, have been paid for out of the earnings of the property. The road is not overlaid with debt to correspond to these outlays. On the contrary, its improved condition and the increase of traffic bene- fitted the credit of the corporation to such an extent that it has been practicable to issue and sell five-per-cent bonds to take up the older issues of six's, seven's, and eight's. In this way, the interest charge upon the property, which is intrinsically worth $5,000,000 more than it was in 1876, has been actually reduced $370,505.97 per annum and its debt from $18,372,834 to $17,- 000,000. "The services of Judge Fentress in arranging and settling the many legal complications which cumbered and afflicted this rail- way and in securing the legislation affecting its powers for all time, though not as conspicuous to the eye as those of Mr. Clarke, have been equally valuable and of as much permanent importance. Annfexed to this statement is an exhibit of the legislation in the several states. "The Company has no engagements with other railway cor- porations excepting those for the construction of the two lines in Mississippi, which have been entered into under your direction and by your authority. Its recent contract with the Western Union Telegraph Company is open to revision at short periods, and the engagement with the Pullman Southern Car Company can be terminated at the option of the Company in 1884. It is free from floating debt and free from litigation. "You take this productive property with a surplus in hand and with all the powers necessary for its future management. You now own $5,000,000 of the five-per-cent bonds, for which there is no immediate use as the requirements of the Southern line I20 REPORT OF JAMES C. CLARKE. upon capital account are drawing to a close and can readily be met from the earnings of the property. I therefore beg to sug- gest to your consideration the cancellation of this $5,000,000 of bonds, thus reducing the debt to $13,000,000, upon which the interest charge will eventually be $650,000. This reduction of interest charge will enable you to pay larger dividends upon the $10,000,000 of stock now the property of your shareholders. This step will reduce your entire fixed charges to about $1,350,- 000 on 1525 miles of railway. "For the next thirteen years, you have no debt to provide for. $2,500,000 of your bonds fall due in 1895. ^^ seems unwise to hold $5,000,000 of your own executed obligations available at any moment. The experience of nearly thirty years strengthens my impression that prosperity — leading to unwise expenditures — is oftentimes as dangerous as adverse crops, with consequent loss of traffic affecting income. The specific for accuracy in accounts and economy in expenditures appears to be — to take all expenses including construction out of income and divide the surplus only. "I beg to refer to you the annexed exhibits and reports. "In retiring from this trust, I have every reason to believe that the New-Orleans division of the Illinois-Central is in charge of zealous, faithful, and experienced men. W. H. OsBORN, Chairman." Report of Mr. James C. Clarke, general manager of the Chi- cago, -St. Louis-and-New-Orleans Railroad Company: "New Orleans, La., January i, 1883. "To THE Shareholders of the Chicago, -St. Louis-and-New-Orleans Railroad Co.: '■'Gentlemen: — I was elected vice-president and general mana- ger of this company in January, 1878. At that time, the equip- ment of the road in motive power and rolling-stock consisted of 80 locomotives and 1240 cars. At the present time, this Com- pany has 106 locomotives and 2242 cars of all kinds. Many of the engines and cars on the schedule in 1878 have been rebuilt and renewed. Some were condemned as unsafe for future use. REDUCTION OF GRADES RECOMMENDED. 121 II of the old engines were sold, their capacity to draw heavy trains being too light for profitable use. "The report of the chairman of our board, dated December, 30, to the directors of the Illinois -Central Railroad Company — now the lessee of this railroad — treats of the work which has been done on track, building bridges, engines, cars, ballasting, fencing, depot -grounds, side tracks, shops, machinery, steel rails, change of gauge, etc., etc., in a general way. It is, therefore, considered unnecessary to refer again to them. At the close of the year 1877, there were 60 miles of steel rails on the track. On December 31, 1882, the whole main track, 548 miles, is laid in steel rails. "Reduction of Grades between Jackson, Tenn., and Canton. — The maximum of grades on this portion of the road has been reduced from 60 feet per mile to a maximum of 40 feet per mile, few exceeding 35 feet per mile. "This has enabled our engines to draw over this portion of the road six to eight loaded cars more per train than the engines of the same class were able to do before the grades were reduced, thus largely reducing the expenses in train service by increasing the earnings per train. "The portion of the line between Jackson, Tenn., and East Cairo, no miles, has some grades of 52 feet or more per mile. It was constructed with these grades. Evidently the question of economy in operating the line as a channel of commerce was not considered in adopting such grades. I recommend to the lessee to reduce these grades to a maximum of 40 feet per mile. The work may be done gradually, and the outlay spread over a series of years. I am sure it will pay to reduce the grades on this portion of the road. "In these times of low rates for transportation service, nothing is more conducive to economy in operating a railroad than low grades, steel rails,, a well -ballasted track, large engines, and slow speed of heavy freight-trains. "Capital Account. — There is at present nothing to call for any immediate large outlay of money. "It is proposed to build four combined brick, freight- and 122 VALUE OF NEGRO LABOR. passenger-Stations on the line during the coming year, costing in all about $15,000, and to revise and remodel the freight-houses and yards and tracks at the levee station in New Orleans, to adapt them to handle the business with less force and expense than we now incur. The increased facility and decreased ex- penses in transacting business at this station will compensate for the outlay to be made. "Motive Power. — The present equipment of engines seems to be sufficient for the wants of the road until the business shall increase to require more power. "Ballasting. — I recommend to the lessee the continuance of this important matter, gradually, as we have heretofore done during the summer months, when the traffic is light and the engines and cars can be spared from service to transport it. "Fencing. — This necessary precaution to avoid accidents and prevent paying damages for stock injured or killed, which, in the past five years, has amounted to upward of $60,000, should be gradually pursued until the whole line is enclosed. "Machine -Shops, Machinery, and Tools. — The present condition of this plant and its location is all that will be required on this line until its business and traffic shall be increased fifty per cent more than it now is. "Steel Rails. — It will be necessary to buy 150 to 200 tons per year to make frogs and switches and provide for those, now in track, which may be broken or rendered unfit for use by reason of accidents. "Labor. — During the past five years, this Company has employed a large amount of unskilled labor, consisting chiefly of negroes. My experience with this class of labor has been very satisfactory. When intelligently directed, properly treated, and justly dealt with, there is no better laborer than the negro to be found among any race in the world. They are peculiarly fitted for labor in semi-tropical climates, and, by nature cheerful, obedient, kind, imitative, and contented. They are fast learning that "freedom" means honesty, industry, and intelligence. They are now a valuable laboring population, and each year, as they acquire education, they will become better citizens. They should BETTERMENTS MADE FROM INCOME. 1 23 "be justly dealt with and treated with the respect due all honest laborers. "Capital Required for Future Improvements. — From the past five years' experience, I feel I am justified in saying that this property, managed as we have no doubt it will be, will furnish the funds to make the betterments and improvements that may be necessary, as well as to provide for the fixed charges and rentals. '•The Illinois -Central Railroad Company has, today, assumed the control and management of this property as lessee. Here- after its earnings and expenses will appear in the accounts of that Company, under the head of the 'Southern Division of the Illinois-Central Railroad Company.' "Conclusion. — As you are aware, the managers of this property, during these past five years, have made no published report. All our receipts, during these five years, have been applied to the operating expenses, and reconstruction, and to the interest on the prior liens, styled the first and second mort- gage bonds. I have not endeavored to draw a nice distinction between operating expenses and construction account. After providing for the interest on the prior liens, I have used the remainder of the money in rebuilding this road. It is now in such a condition that I feel it safe to say that it can be main- tained and steadily improved at about sixty per cent of its gross earnings. The gross earnings, during the past five years, have been as follows : 1878 -- -- .- $2,842,434.15 1879 -- -- -- -- 3,3S7>3°S-oo 1880 - 3>7i6,902.42 1881 .- -- -- -- 4,o59'i5i-4o 1882 .. -- -- 3,820,996.83 A yearly average of $3,559,357-96 "The report of the chairman of the board referred to gives the results of our stewardship of your property. "With a sense of gratitude to officers and employes in every grade of the service for their zeal, anxiety, and devotion at all 124 ACTION OF THE BOARD OF DIRECTORS. times to promote the Company's interest, and the cheerful coop- eration and aid rendered to me in the management, I desire to place my acknowledgments on the records of the Company. Respectfully, James C. Clarke, General Manager." This report was submitted to a meeting of the board of direc- tors, held January 17, 1883, and the following preamble and resolutions were adopted: [Extract from the minutes :] "The report of Mr. William H. Osborn, chairman of the Chicago, - St. Louis - and - New - Orleans Railroad Company, ad- dressed to this board under date of December 30, 1882, accom- panied by the report of the Hon. James Fentress, general solicitor, addressed to him, under date of December 8, 1882; and, also, the report of Mr. James C. Clarke, general manager of the Chicago, - St. Louis - and - New - Orlearts Railroad Company, addressed to the shareholders of that Company, under date of January i, 1883, having been submitted and read, it was, on motion of Mr. Webster, duly seconded, "Resolved, That these reports be accepted by this board, printed, and a copy thereof transmitted to each shareholder of the Illinois-Central Railroad Company, and to each holder of the leased hne stock certificates issued against the shares of the Chicago,-St. Louis-and-New-Orleans Railroad Company. "That this board desires to express and place on record its high appreciation of the wisdom, zeal, and unflagging fidehty with which Mr. Osborn, Mr. Clarke, and Mr. Fentress, and every other officer whose work has come under the observation of this board, have conducted the affairs of the Chicago, -St. Louis-and- New-Orleans Company since the property was placed in their hands. And the president of the IlHnois- Central Company is hereby directed to express to those officers of the Chicago, -St. Louis-and-New-Orleans Company the thanks of this board for the gratifying results which their labors have done so much to accomplish." president's letter to MR. OSBORN. 1 25 The following, moved by Mr. Elliott, and duly seconded, was also adopted : "In view of these highly satisfactory reports, the board deems it desirable to call the attention of the Illinois-Central share- holders specifically to the increased value of their property result- ing from the intelligent and unwearied efforts of the officers wlio have been charged with the care and development of the South- ern line; therefore, be it "Resolved, That the board recommends to the shareholders, at their next annual meeting, to take such action as they may deem best to express their appreciation of the results thus obtained and their recognition of the services rendered." In obedience to the request of the board of directors, the president addressed letters to Mr. Osborn, Judge Fentress, and Mr. Clarke, expressing the thanks of the board of which the following are copies: "Illinois-Central Railroad Company, president's office. Chicago, January 24, 1883. "William H. Osborn, Esq., New York: "My Dear Sir: — At a meeting of the board of directors of the Illinois-Central Railroad Company, held on the 17th instant, your report to them, dated December 30, i88i2, was submitted, read, ordered to be printed, and copies mailed to each share- holder and leased-line certificate-holder of the Illinois -Central Railroad Company. "The following resolution was offered by Mr. Sidney Webster, duly seconded, and passed unanimously : "Resolved, That these reports be accepted by this board, printed, and a copy thereof transmitted to each shareholder of the Illinois-Central Railroad Company and to each holder of the leased-line stock -certificates, issued against the shares of the Chicago,-St. Louis-and-New-Orleans Railroad Company — that this board desires to express and place on record its high appre- ciation of the wisdom, zeal, and unflagging fidelity with which Mr. Osborn, Mr. Clarke, and Mr. Fentress, and every other officer whose work has come under the observation of the board, 126 ackerman's recollections. have conducted the affairs of the Chicago,-St. Louis-and-New- Orleans Company since the property was placed in their hands. And the president of the Illinois - Central is hereby directed to- express to those officers of the Chicago, - St. Louis - and - New - Orleans Company the thanks of this board for the gratifying results which their labors have done so much to accompHsh. "Also the following, offered by Mr. John Elliott: " In view of these highly satisfactory reports, the board deems it desirable to call the attention of the Illinois-Central sharehold- ers specifically to the increased value of their property resulting from the intelligent and unwearied efforts of the officers who have been charged with the care and development of the South- ern line; therefore, be it " Resolved, That the board recommends to the shareholders at their next annual meeting to take such action as they may deem best to express their appreciation of the results thus obtained and their recognition of the services rendered. "I do not know that I can add anything that will emphasize more distinctly the sincere gratification felt by the board on the completion of your work and I fear that I shall but feebly convey to you the proper expression of their feeling. Remembering, as- I do, the physical condition of the Chicago, -St. Louis-and-New Orleans Railroad six years ago, and the complicated state of its finances and affairs generally, the work which you have just com- pleted seems to me the most remarkable exhibition of energy, skill, and untiring perseverance, ever recorded in the history of railroad management. Words fail me to properly express the appreciation which I am sure every member of the board of directors of the Illinois -Central Railroad Company feels in refer- ence to the prominent part you have taken in rescuing this- property and in protecting the interests of the Illinois-Central shareholders. This work has been to you at times one of great discouragement as well as intense anxiety; but the grand result accomplished, now commanding the attention of those interested with you, will, I am sure, compensate you for your labors and call out from the shareholders a more earnest expression of approval than has yet been given. Even without this, I am sure that the eminent satisfaction you will enjoy arising from the con- scientious application of your energies in developing and bring- PRESIDENT ACKERMAN TO FENTRESS. 127 ing to a successful conclusion so arduous a work as you have been charged with, would of itself amply repay you for the harassing cares which have surrounded you in its prosecution. "Permit me, in conclusion, to express to you my own sense of the great obligation under which you have placed us, and to express the hope that, although in the future you may not be engaged in the active management of the line, yet that we may be favored from time to time with your kind cooperation, and may have the benefit of your long experience, gained in the management of the Illinois-Central property for a period of over a quarter of a century. "I remain, with great respect, "Yours very truly, Wm. K. Ackerman, President.'" "Illinois -Central Railroad Company, president's office. Chicago, January 24, 1883. "Hon. James Fentress, New Orleans: "My Dear Sir: — At a meeting of the board of directors of the Illinois-Central Railroad Company, held on the 1 7th instant, the very able and comprehensive report prepared by you as solicitor general of the Chicago, -St. Louis-and-New-Orleans Rail- road Company, and addressed to the chairman of the executive committee of that Company, covering a period of five years past and giving a synopsis of the legislation obtained during your management of the legal department during that time, was laid before the board, together with the reports of the chairman and general-manager. They were read in full, accepted by the board, ordered to be printed, and copies thereof sent to each share- holder and to each leased-line certificate-holder of the Company. "The following resolutions were offered by Messrs. Webster and Elliott, duly seconded, and passed unanimously: [Same preamble and resolutions as contained in letter to Mr. William H. Osborn.] "From the foregoing, it will be seen that it is made my pleas- ing duty to convey to you the thanks of the board, as expressed 128 PRESIDENT ACKERMAN TO CLARKE. in the above resolutions, which I take great pleasure in doing. There was but a single expression on the part of all the members of the board and that was one of full appreciation of the very able manner in which you have conducted the legal business of the Chicago, -St. Louis-and-New-Orleans Railroad Company since that line first came into the possession or under the control of the Illinois-Central Railroad Company. The management of the department, over which you have so successfully presided during the past five years, has been eminently satisfactory, and the board feel that there is due to you an expression of the high sense of obhgation under which you have placed the shareholders of the Company for the very happy results that you have obtained. "Desiring to add my own personal congratulations and good wishes, and trusting that our future relations will be as pleasant and harmonious as they have been in the past, "I remain, with great respect. Yours very truly, Wm. K. Ackerman, President." "Illinois-Central Railroad Company, president's office. Chicago, January 24, 1883. "James C. Clarke, Esq., New Orleans: "My Dear Sir: — At a meeting of the board of directors of the lUinois-Central Railroad Company, held on the 17th instant, the report prepared by you dated January i, 1883, and addressed to the shareholders of the Chicago, -St. Louis-and-New-Orleans Railroad Company, was submitted, read, ordered to be printed, and copies thereof mailed to each shareholder of the Illinois- Central Railroad Company. "The following resolutions were offered by Messrs. Webster and EUiott, duly seconded, and passed unanimously : [Same preamble and resolutions as contained in letter to Mr. William H. Osborn.] "From the foregoing, it will be seen that it is made my duty to express to you, as one of the officers of the Chicago,-St.Louis- and-New-Orleans Railroad Company, the thanks of the board for HON. JOHN A. CAMPBELL. 1 29 the efforts put forward by you during the past five years and ■which have resulted in bringing this property to its present very satisfactory condition. Although the board of directors have now by formal resolution more particularly called the attention •of the shareholders to your efforts in accomplishing so desirable a result, yet I am sure that, during all the time you have been so engaged, they have never ceased to feel how great was the obliga- tion under which you had placed them. Of my own personal knowledge, I know full well with what difficulties you have had to contend and the many adverse circumstances with which you have been surrounded. In 1874, I passed over the hne of road which you have practically rebuilt. Comparing my recollections at that time with its present condition, I can better and more fully appreciate what a work you have accomplished. The Chi- cago, - St. Louis - and - New - Orleans Railroad from this time on becomes a part and parcel of the old line, which it has been the good fortune of both of us to serve for so many years together. I sincerely trust that our relations, personal and official, will be as pleasant and cordial in the future as they have been in the past. Believe me, dear Mr. Clarke, yours very sincerely, Wm.. K. Ackerman, President." In addition to the reports made by Mr. Osborn and Mr. Clarke, was one furnished by Judge James Fentress, then of Bolivar, Tennessee, giving a concise statement of the legal history of the case. He, with Hon. John A. Campbell of New Orleans — ex-attomey-general of the United States and at one time one of the justices of the United- States supreme court — had been most active in the management of the company's legal affairs in the South, and with consummate skill had been instrumental in bringing them to a successful result. Both Judge Campbell and Judge Fentress — owing to their great ability and thorough famil- iarity with the laws of Tennessee, Mississippi, and Louisiana, the latter unusually complex — were enabled to render most valu- able services in expediting settlements of complicated legal questions. Judge Fentress is now the general-solicitor of the company, resident in Chicago, having succeeded Mr. Benjamin 9 130 LAW DEPARTMENT OF THE COMPANY. F. Ayer, who held that position for many years and is now the general -counsel of the company. The law department of the company has always been maintained at a high standard, and among its legal advisers, in past years, may be found the names of James F. Joy, Hiram Ketchum, William Tracy, Wm. Curtis Noyes, Daniel Lord, Charles O'Connor, Judge Ebenezer Lane,* Judge James Emmott, Melville W. Fuller, the present chief- justice of the United States; W. C. Goudy, Senator William B, Allison, Lyman Trumbull, and John N. Jewett. The acquisition of the lines between Cairo and New Orleans, viz; the New-Orleans, -Jackson-and-Great-Northern Railroad — from New Orleans to Canton, 206 miles — and the Mississippi- Central Railway — Canton, Mississippi, to Jackson, Tennessee, 236 miles — with the newly -constructed, connecting line, north from Jackson, Tennessee, to East Cairo, Illinois, of 108 miles, added 550 miles to the southern extension. This has been further increased by the construction of the Canton,-Aberdeen-* and - Nashville Road — Aberdeen to Durant, Mississippi, 108 miles; the Yazoo - and - Mississippi - Valley Railroad, 115 miles; and by the purchase of the Memphis-and-Grenada Railroad — Grenada, Mississippi, to Memphis, Tennessee, 100 miles; making a total mileage south of Cairo of 873 miles. The distance from Sioux City to New Orleans is 1220 miles. No road in the country, I believe, is called upon to transport so great a diversity of products. The writer calls to mind that in the * Ebenezer Lane, jurist, was born in North Hampton, Massachusetts, Dec. I7> 1793, and died in Sandusky, Ohio, June 13, 1866. He was graduated at Harvard in 181 1, studied law under the guidance of his uncle, Matthew Griswold of Lyme, Connecticut, in 1814, and was admitted to the bar. After practising for three years in Connecticut, he removed to Ohio and settled in Norwalk, Huron County. He became judge of the court of common pleas in 1824, and from 1837 until 1845 was judge of the supreme court of Ohio. After his retirement from the bench, he resumed his profession and was after- ward engaged in various relations with western railroads. Dec. 6, 1855, he was elected resident-director of the Illinois-Central Railroad Company, and was their legal adviser for three years. He withdrew from active employ- ment in 1859. His ability and experience rendered his advice wise and trust- worthy. Like Rufus Choate, Horace Greeley, and some other great men, he never learned to write legibly. JOHN M. DOUGLAS. I31 early spring of 1876, during the time the company was expend- ing over $100,000 in removing snow and ice from its tracks in northern Illinois and in Iowa, its trains from the south were bringing strawberries and early vegetables to Chicago. And in the spring of 1881, when the ground was Covered with snow in Chicago, a consignment of twenty-seven car loads of watermelons was received from Texas. BIOGRAPHICAL. This brings us down to a period when the writer's long con- nection with this magnificent system of railway ceased. There are many with whom it was his good fortune to labor and with whom he was brought in the most pleasant relations, official and personal, to whom he would most gladly do justice in this narra- tive did space permit. A few of these, however, I should in closing at least refer to. First, I will mention Mr. John M. Douglas. Mr. Douglas was born at Plattsburg, Clinton County, New York, August 22, 1819. His maternal grandfather, Elijah Weaver, was a second lieutenant in the revolutionary war, and his father, Congdon Douglas, served in the war of 181 2 and fought at the battle of Plattsburg. At the age of seventeen, John M. Douglas entered the law-office of Sweatland and Beckwith, at Plattsburg, and read law for three years. He then came west and settled in Galena, Illinois. He was admitted to the bar in 1841 and opened a law-office in that city. In 1856, he came to Chicago, and, in 1857, was appointed one of the solicitors of the Illinois-Central Road, David Stuart being the other. It never had a more faithful servant than he.. Cautious and conservative in temperament, many were the breakers avoided by his wise counsel. Litigation pregnant withi danger, he made it a rule to setde; but, where he beUeved the law and the evidence to be on his client's side, or where he believed there was a principle worth contending for, he would contest, generally with success, a case to the end. Knotty prob- lems, such as frequently encompass the operations of a railway, he studied out with untiring zeal. Mr. Douglas was a director of the company from May 29, 132 LEWIS V. F. RANDOLPH. 1861, to May 22, 1872, and from January 15, 1875, to July 17, 1876. On July II, 1865, he was elected president of the com- pany and served until March 14, 1871. He continued in the service as general -solicitor and, on January 28, 1875, '"'^.s again elected president, serving until July 17, 1876, when he retired permanently from the service. His presidential terms covered important periods in the history of the road, and, in the course of his management, he encountered many difficult problems, in dealing with which he displayed sterling qualities of mind, and in the solution of which he was eminently successful. Diffident and retiring in his disposition, he was often mis- understood. The labors of the best part of his life were with singular devotion given to the interests of this company and it is pleasant to know that they were appreciated. Mr. Lewis V. F. Randolph was born in Somerville, New Jersey, May 16, 1838. He came of a family which had then dwelt in New Jersey 200 years and was descended from an English gentleman, Edward Fitz Randolph, who had espoused the Puritan faith and whose wife, Elizabeth Blossom, was also one of the earliest arrivals of the Pilgrim stock. His mother was of an old Dutch family whose ancestors had come to Long Island and afterward to New Jersey, long prior to the American revolution. Lewis studied hard at Plainfield, a pleasant town near Somerville, and made good progress in mathematics and the languages. His father died when he was but ten years old and he, being an only son with several sisters, left school while still a boy, turning from the alluring offer of a university education made by kind friends, to throw his youthful energies into business activity. At first, he was cashier and salesman for a mercantile firm, and afterward spent nearly ten years — 1854 to 1863 inclu- sive — in the American Exchange Bank, New York, rising through various clerical positions from year to year. About the latter end of this period of service, he enlisted as a soldier in the Union army and served in it until after the confederates were driven back from their sally into Pennsylvania. In 1864, he entered the president's office of the Illinois -Central Railroad Company as private secretary, and was soon afterward sent to the com- LYNDE A. CATLIN. 1 33 pany's money-department at Chicago. Later on, he was recalled to the financial office in New York and elected assistant-treasurer. In 1873, he was chosen a director by the stockholders and, in 1874, he was elected treasurer of the company. Besides discharging the duties of the positions above named, Mr. Randolph has filled other places of public trust, including that of mayor of Plainfield, New Jersey; he is also known as a pubUc speaker and writer. Mr. Randolph was as an office-manager a careful disciplinarian. Being thoroughly versed in analysis and an accurate and efficient accountant, these qualifications rendered his services to the com- pany, at all times, most valuable but especially at certain impor- tant periods in its financial affairs. He was ever punctiliously correct in all transactions involving financial operations, and in these his banking education and experience served him well. He was conscientious in his devotion to duty; and no officer of the company ever enjoyed more fully or continuously the confi- dence and respect of the board of directors. In 1884, he de- clined a reelection as director, and, in 1885, resigned the treasurership of the company. He is still a trustee of several mortgages on the company's lines. After spending a short time in a successful quest for health among the higher altitudes of the Rocky -Mountain Country, he returned, in 1887, to New York and accepted an offer, from the executors of Hon. Samuel J. Tilden, to assist them in the care of the large estate committed to their management. Lynde A. Catlin was born in the city of New York, Oct. 31, 1833, and was graduated at Yale College in 1853. He entered the service of the Illinois -Central Railroad Company, May 10, 1854. In 1863, he was appointed secretary of the company. In 1874, he visited England on the company's business and again in 1875. For over 30 years, Mr. Catlin was in charge of the stock-books of the company and the records of the board, and was the custodian of all its valuable papers and documents. During all that time, he enjoyed the fullest confidence and re- spect of the board of directors and of every officer of the com- pany. He was modest almost to a fault, but was and is much 134 JAMES C. CLARKE. beloved for his natural amiability and generosity and for his exemplary christian character. On his retirement from the ser- vice in 1884, the board passed resolutions of respect and good wishes as they did in a few other exceptional cases. He is still a trustee of one of the largest mortgages on the company's lines. Mr. Catlin now lives a retired life at Putnam, Connecticut, where he has abundant opportunity to enjoy nature and good books, and profit in a leisurely way by his own culture and literary tastes, and enjoy the society of devoted friends. A fellow- ofl5cer, who served constantly with Mr. Cadin for over twenty years, remarked recently, "I never knew him to speak a cross word or do an unworthy act." Mr. James C. Clarke was born in Montgomery County, Mary- land, in 1826. Like several other Illinois - Central workers — among whom may be mentioned John H. Done, Samuel J. Hayes, John C. Jacobs, and Charles C. Berry — he commenced his rail- way-life on the Baltimore -and -Ohio Railroad; he entered its ser- vice in 1844, and was first engaged in the road department and then entered the machinery department as a fireman; after the usual term of service as such, he was appointed a locomotive- engineer. During this term of service, he ran the old engine "Arabian," which was on exhibition in Chicago in 1883 and which is now used as a switch-engine in the yard of Mt. Clare shops, Baltimore. In 1855 — at the instance of Mr. John H. Done, who had been master of transportation on the Baltimore- and-Ohio Railroad and was called to a similar position on the Illinois -Central Railroad — Mr. Clarke accepted the position of division -superintendent of the main line with headquarters at Amboy, Illinois. Matters were then in a demoralized condition on that division and insubordination existed among the men. Mr. Clarke, com- ing among them a stranger, did not meet with a very hospitable reception. He tells an amusing story of conversations had in his hearing, between some of the men, around the big stove in the depot-hotel on the night of his arrival, about "that fellow Clarke" who, they had heard, was coming over to Amboy to straighten things out. As he had not registered his correct name LINCOLN'S TRIP TO WASHINGTON. 1 35 on the hotel-book, he enjoyed not only the conversation with its boasts and threats, but, by joining in it, he was enabled to obtain some valuable points for the government of his future course. It did not take them long to find out who "that fellow Clarke" was, for, on the suceeding day, on the occasion of the first revolt, every man in the shops was discharged and the shops were closed to await the arrival of fresh men. One year afterward, he was appointed general-superintendent, and, upon the death of Mr. Done — which sad event occurred through an accident at Hyde Park — he was elected to succeed the latter as master of transportation. He remained in the ser- vice at that time for about three years — 1856-1859, and then resigned to accept a position as general-superintendent on the Northern- Central Railroad, where he remained three years — 1859 — 1862. While in charge of the road in the early part of the war, the task of conducting President Lincoln in safety from Harrisburg to Washington, prior to his first inauguration, devolved upon him. A few years before, Mr. Lincoln had been one of the attorneys of the Illinois-Central Company. This was during Mr. Clarke's early connection with the road; and, upon this memorable trip, their former pleasant acquaintance was renewed. Shortly after- ward, Mr. Clarke retired to his farm near Frederick, Maryland, where he was alternately visited by portions of the federal and confederate armies, and was occasionally asked to drink to the success of each side, a condition of things that rendered farming in that locality a somewhat dubious occupation. After the close of the war, he engaged in the iron business at the Ashland furnaces in Missouri — 1862-1870. He was then elected president of the Chesapeake-and-Ohio Canal Company, and, for the first time in 16 years, he made this canal self-sustain- ing and paid off in two years more than $600,000 of its prefer- ence debts from its net earnings. He remained in charge of this property for two years — 1870 to 1872. Mr. Clarke was then elected vice-president and general-manager of the Erie Railway Company, while that road was still suffering from the evil effects of the Fisk management. Here he proved himself faithful among 136 CLARKE'S RECORD CONTINUED. the faithless; his savings at the spigots were numerous and effec- tive but were sadly offset by waste at the bungs. Mr. Clarke was familiar with the use and purposes of the locomotive-engine and all legitimate railroad machinery, but the operations of a small printing-press quite baffled him. One day, there was submitted to him a mysterious voucher for $50,000 for his approval. All the explanation vouchsafed for the proposed payment was that it was "for legal services;" Mr. Clarke shortly after signed his name, not to the aforesaid voucher, but to a letter of resignation, after a service of two years — 1872 to 1874. In 1874, he returned to the Illinois-Central service as general- manager — 1874 to 1877 — and took a very active part in the reorganization and reconstruction of the roads which had been acquired south of CairC) and which have been hereinbefore re- ferred to in detail. He became vice-president and general- manager — 1877 to 1883 — and president — 1883 to 1888 — of these dependent lines successively. He was also vice-president of the Illinois-Central Railroad Company, and in August, 1883, became president, succeeding the writer who had resigned in his favor. This position he held until May 18, 1887. He resigned as director, Dec. 21, 1887. Mr. Clarke's record as a railroad manager would fill a respec- table-sized volume of itself. I have given but the briefest out- line of it; he has had an unusually extensive experience. He is a man of indomitable energy, unswerving integrity, and is pos- sessed of great versatility. His pow;r of adaptation to adverse circumstances and conditions is something remarkable. He has a wonderful capacity for dealing with men, and his tact and dis- cretion in this particular have saved many thousands of dollars to the companies he has served. It has been said that on the occasion of a strike on one of his roads, a "grievance committee" of locomotive -engineers, who visited him, were put into such good humor that they forgot what they came for. Having been a Knight of the Footboard him- self, he knew how to sympathize with this class, and he could enter into their feelings and grant all reasonable requests; but, at the same time, he could, in his clever way, point a lesson when he believed they were wrong. EDWARD TURNER JEFFERY. 1 37 The duties of the various positions held by Mr. Clarke have always been fulfilled with great faithfulness and with a sincere devotion to the interests of the company served. His cardinal qualities are tenacity and honesty of purpose united to a thor- oughly self-sacrificing spirit. A more economical manager prob- ably never administered the aftairs of a railway. He can utilize every scrap, purchasing only what is absolutely necessary, and can economize labor i'l distributing or in manufacturing, and so keep down expenses. His orders to his subordinates are always given with great explicitness and enforced with a stern discipline. Mr. Clarke is now president and general - manager of the Mobile -and -Ohio Railroad Company, and, in this position, he is again giving practical evidence of the qualifications I have attributed to him, by improving the physical condition of that property and raising the standard of discipline among its em- ployes — and it is confidently predicted that he will land that property on a firm basis of material and financial prosperity. Edward Turner Jeffery was born in Liverpool, England, April 6, 1843. His father, who was an engineer in the British navy, died when Edward, was five years old. Very soon afterward, the mother with her orphan charge came to this country and settled in Wheeling, West Virginia, where the boy received his only school education — until his twelfth year. The family then re- moved to Chicago, and, in October, 1856, young Jeffery procured employment as an office-boy with Samuel J. Hayes, superinten- dent of machinery of the Illinois- Central Railroad. He was afterward placed for awhile in the tin- and copper-shops, and then served as an apprentice in the machine-shop, cultivating what might be regarded as an hereditary fondness for the craft of the machinist. He then entered the department of mechanical drawing, and, after he had mastered this science, he was — at the age of twenty — put in charge of this department, and was also made secretary to the superintendent of machinery, and had charge of all new work done in the shops and foundry. From Feb. I, 1871, to May 4, 1877, he was assistant-superintendent of machinery, and on that date he was appointed general -superin- tendent of the road serving as such until Dec. 15, 1885, when he 138 EDWARD TURNER JEFFERY. was appointed general-manager of the entire line — a rare promo- tion for one of his age, the more so when we consider his humble beginnings. He resigned as general-manager in 1 889. His own advancement, step by step, was fairly won without favoritism or solicitation, but solely on the ground of merit and fitness. His experience not only added to his capacity as a rail- road manager, but it Hkewise broadened his mind and enlarged his heart and sympathies for every honest wage-worker, especially for the young apprentice in the shops. His official career, in the Illinois - Central Railroad Company, was singularly successful throughout. His particular strength lay in his thorough adaptation to the company's service and to every branch of it in which he served, as well as in his great industry and energy. It was my good fortune, during the seven important years of my connection with the company, as its executive, to have so able a man with me, and one so loyal alike to me and to the company as was Edward T. Jeffery. He was skilful, energetic, .systematic, and economical; and, in all he undertook, he worked with an intelligent comprehension of the duty in hand. A har- monious feeling was maintained among the employe's, and their ■devotion to him was something rarely witnessed in corporate ■operations. The seven years, heretofore referred to, were the most pros- perous ones in the history of the company. Many important additions and improvements were made to the property during this time, and, as the engineering department had been abolished — Mr. Leverett H. Clarke, chief-engineer, having resigned after a faithful service of twenty-five years — and the construction account -had been closed, the planning and superintending of these new works devolved largely upon the general -superintendent. The gross earnings were increased, the operation expenses were kept at a very low percentage, while at the same time, the physical ■condition of the property was fully maintained and large addi- tions were made to its rolling-stock. By way of illustration, I give a synopsis of the operations of the line during the period referred to, 1877-1883, both inclusive, taken from the annual reports of the company for these years : JOSEPH F. TUCKER. 1 39 YEAR GROSS OPERATION NET PER c'T OF DIVIDENDS BETTER- EARNINGS EXPENSES , EARNINGS OPER. EXPS. PAID MENTS* 1S77 $6,639,845.40 $4,093,284.01 $2,546,561.39 46.72 $1,160,000 $73,603.70 1878 7,111,184.28 4,095.955.09 3,015,229.19 43.24 J, 740,000 194,803.64 1879 7.234,464.06 4,037,543.21 3,196,920.85 41.7s 1,740,000 386,016.15 1880 8,304,811.81 4,825,799 20 3,479,012.61 44.13 1,740,000 842,323.56 1881 8,586,397.44 5. 359. =15-70 3,227,181.74 48.42 2,030,000 925,380.36 1882 8,9oj:,3i2.i8 5,244,543.03 3,660,769.15 4491 2,030000 1,271,45163 1883 i3,o64.743.39t 7,800,586.48 5,264,156.91 49,25 2,903,000 632,529.66 * Paid from income. i Southern division earnings included. These good results should be attributed largely to careful attention given to details, to maintenance of esprit de corps in the force, and to a reasonable perception of the real mutual obliga- tions of employer and employed. Joseph F. Tucker was born in Saco, Maine, September 29, 1835. He entered the service of the company September 15, 1856, and remained until 1884. Five of these twenty-eight years were spent as ticket-agent, ten as general freight -agent, two as general-superintendent, and nearly nine as traffic-manager. From the foregoing, it will be seen that his education in the traffic department was thorough, and the lessons he gained there taught him that earnings for his road meant more than gathering a large volume of profitless business for self-glorification. The "rate per ton per mile" was his ever present thought — and he aimed to secure such a rate as would produce a reasonable net result of profit. In this matter, he was a wholesome example to many in similar positions and they might have studied with advantage his conservative course. It is safe to assert that had certain of the freight-agents in former years adopted such honor- able and conservative principles in the prosecution of their busi- ness, it is more than probable that the railway interests of this country would have suffered less than it has at the hands of legis- latures. Many a time at meetings and in conventions, did Mr. Tucker warn these railroad managers and freight-agents as to what would be the result of their doubtful dealings. His words were not always heeded, and when the storm came it swept into bankruptcy the i^roperties managed by the reckless or ignorant men who had withstood him. There is another thing about "Joe" Tucker that is pleasant to I40 JOHN C. WELLING. record and that is the esteem in which he was always held by the shippers over his line as well as by t"he craft of traffic -managers. It was always said of him that his word was as good as his bond, and so it was. The shippers used to say that if he declined to make concessions, he could always give a good reason for the ground he took and that the refusal was always made in such a kind spirit that, although they might feel disappointed, they could not go away offended. And in his relations to other lines, it required no cast-iron compact of any association of traffic-mana- gers to bind him to an agreement as to maintenance of rates. It was this spirit of fairness and integrity that made and kept him host of friends both among freight-men and shippers. His management of the traffic business of the Illinois -Central Railroad Company extended through some very troublous times, particularly during the period when railroad commissioners were sometimes appointed not so much for their fitness as for political reward. When these men got on the wrong track and attempted to make unreasonable reductions, it was difficult to reason them out of it, for they were dealing with a subject concerning which they were profoundly ignorant, and were governed more by prejudice, and passion, than by sound sense and sober judgment. But Mr. Tucker's arguments, before the board of railroad - and - warehouse commissioners, evincing as they did a thorough mastery of the subject and delivered with such fair- mindedness and honest precision, were usually listened to with respectful attention and often carried conviction to his hearers; and, in one instance at least — aided by some suggestions from his brother officers — he prevailed upon the members of the board actually to recall a schedule of tariff rates which they had ordered to take effect within a few days. He proved clearly to the minds of the commissioners that the practical effect of an enforcement of the schedule would be a confiscation of railway -property and that it would also operate to the disadvantage of the public. John C. Welling was born near Trenton, New Jersey, on Feb. 24, 1840, and received his education in that city. In 1858, he went into business at Titusville, New Jersey, remained there until 1861, when he was appointed clerk to John W. Newell, paymas- BENJAMIN FRANKLIN AVER. 141 ter of the United-States army. He was in the government ser- vice until August, 1866, and then entered the service of the Iron- ton Railroad and Mining Company, whose mines were located near AUentown, Pennsylvania, and owned by Robert Lennox Kennedy of New York. He afterward served as Mr. Kennedy's private secretary until 1874, when he entered the service of the Illinois-Central Railroad Company in the financial department in New York. Sept. i, 1874, he removed to Chicago to take the position of assistant-treasurer. Two years later, he was appointed auditor. His title was afterward changed to general -auditor and then to comptroller, a title more nearly corresponding to the duties performed, his office being charged with the supervision of all the accounts of the company. It is a position of far greater responsibihty and having a more important bearing upon the successful administration of the affairs of a railway than is gener- ally supposed. Mr. Welling's department has been conducted with marked ability and has served as a model for many of the railway accounting offices of the country. The system of accounts adopted has proved a wholesome check upon errors and irregu- larities of every kind. Personally, Mr. Welling is held in very high estimation by the board of directors, by every brother officer, and by all the employes of the road, especially by the young men serving immediately under him, who find in him not only an example of t good life but a kind and helpful counsellor. Benjamin Franklin Ayer was born in Kingston, Rockingham County, New Hampshire, April 22, 1825. His family is one of the oldest in New England, he was descended in the eighth generation from John Ayer, who had settled in Haverhill, Mass., in 1645. After preparing himself at the Albany, New York, Academy, Mr. Ayer entered Dartmouth College, where he was graduated in the year 1846. He afterward attended the Dana Law-School of Harvard College to perfect himself for the pro- fession of the law. In July, 1849, he was admitted to the bar and practised in Manchester, New Hamphire — being endowed with natural abilities for the profession, he soon made a high reputation. He was elected to the legislature in 1853. In 1854, 142 STUYVESANT FISH. he was appointed prosecuting-attorney for Hillsborough County, New Hampshire, and held that office imtil his removal to Chi- cago in 1857. He was admitted to the bar of IlHnois on May 15 of the same year, and he as rapidly rose in the regard of our people and of the profession as he had in his Eastern home. In 1861, he was appointed corporation-counsel and served as such five years, during which time, he prepared the revised charter of Chicago in 1863. He was afterward of the law-firm of Beckwith, Ayer and Kales. When Judge Corydon Beckwith withdrew to- accept the general -solicitorship of the Chicago -and -Alton Rail- road Company, the firm was continued by Ayer and Kales. In 1876, he was tendered the position of general - solicitor of the Illinois-Central Railroad Company. Prior to this, he had devoted his attention to corporation and railroad law and had distin- guished himself in this class of legal practice. He accepted the offer of the Illinois-Central Railroad, gave up all other practice,, and has since devoted himself to the legal department of this company. He was elected a director of the company, April 25, 1877, which position he still holds. In 1890, his title was changed to that of general -consul. Mr. Ayer was for several years presi- dent of the Western Railroad Association, which was organized many years since to pass upon the validity of patents affecting railways and which includes in its membership all the leading railways of the West. Stuyvesant Fish was born in New-York City, June 24, 1851;. educated at Columbia College. Entered the service of the IlHnois -Central Railroad Company, October i, 187 1, as a clerk in the financial office in New York until June 20, 1872, when he was- appointed secretary to President Newell in Chicago, serving until Oct. 30, 1872. Nov. I, 1872, he left the service of the company to accept a position with the banking house of Morton, Bliss and Company, New York, and afterward with their London house,. Morton, Rose and Company, remaining there until Dec. 31, 1874, when he returned to New York to become the managing clerk of the house, holding their power of attorney, and remained with them until March 15, 1877. From December 14, 1876 to March 6, 1879, he was a member of the New -York stock- DEVELOPMENT OF THE SYSTEM. 143. exchange. March 16, 1877, he was elected a director of the Illinois -Central Railroad Company, and was appointed treasurer and agent for purchasing committee of the New-Orleans, -Jackson - and - Great - Northern Railroad. November 8, 1877, he was elected secretary of the Chicago, - St. Louis - and - New - Orleans Railroad Company and in March, 1882, vice-president. From January 7, 1883 to April 2, 1884, he was second vice- president, from April 2, 1884 to May 14, 1887, vice-president,, and since May 18, 1887, president of the Illinois -Central Rail- road Company, succeeding Mr. James C. Clarke. Edward H. Harriman was elected vice-president, September 28, 1887. The years 1884 to 1890 inclusive were years of great activity in the development of the Illinois-Central Railroad system. The conservatism, which had marked the early operations of the com- pany, gave place to very active progress. Large expenditures- were made on capital account in the completion of lines already in progress, and in the construction and acquisition of new lines, as well as for additional equipment and for other property. The mileage of the system was increased during this period nearly 1000 miles. Among the more important works carried out were the follow- ing ones : In Illinois, the South-Chicago Railroad was completed, afford- ing a double-track connection with this important manufacturing town — 4.76 miles. The middle division was extended to a junction with the main line near Bloomington — making the length of the division 131.26 miles. In Chicago, the two large grain-elevators were purchased at an appraised value. The Chicago, - Madison - and - Northern Railroad, which was undertaken in 1886, was completed to a point near the city limits of Chicago, and trains were run from there to Freeport, Madison, and Dodgeville, in August, 1888. The entrance through the city limits of Chicago is now being completed. 144 ACQUISITIONS OF BRANCH LINES. The Chicago,-Havana-and-Western Railroad — 130 miles in length — was acquired in 1887, under foreclosure proceedings, as was also the Rantoul Narrow-Gauge Railroad — 76 miles, extend- ing from West Lebanon, Indiana, to Leroy, Illinois, the gauge of the latter being afterward changed. The 13 miles of track constructed, in 1885, by the Chicago,- Burlington-and-Northern Railroad Company, on the company's right of way between East Dubuque and Portage Curve under condemnation proceedings, was purchased in 1888, and an arrange- ment made permitting the Chicago,-Burlington-and-Northern Rail- road to use it at a fixed rental. The supreme court of Illinois having decided adversely to the condemnation proceedings. Control of the Dunleith-and-Dubuque bridge was secured in 1888 by the purchase of all the stock of that company, and the Chicago,-St. Paul-and-Kansas-City Railroad and the Chicago,- Burlington-and-Northern Railroad became participants in its use as joint- tenants. Large additions were made to the equipment. In Iowa, the Cherokee-and-Dakota Railroad — extending from Cherokee, Iowa, northwesterly to Sioux Falls, Dakota, and from Cherokee southwesterly to Onawa, 153 miles — was constructed. Also, the Cedar-Rapids-and-Chicago Railroad — extending from Manchester to Cedar Rapids, Iowa. The control of the Dubuque-and-Sioux-City (143 miles) and the lowa-Falls-and-Sioux-City (183 miles) roads was obtained through the purchase of the securities of those companies. In the south, the Canton,-Aberdeen-and-Nashville Railroad, on which work had been commenced in 1883, was also completed. A large amount was expended on the Yazoo-and-Mississippi- Valley Railroad and it was completed in December, 1886. Control of the line running from Grenada, Mississippi, to Memphis, Tennessee, 100 miles in length, was secured and in- vestments were made in the bonds and stock of that company to a large extent. The bridge across the Ohio River at Cairo was built to obviate the delays incident to the ferry transfer. The amount expended in the prosecution and completion of these various enterprises aggregated over $33,000,000. JOHN NEWELL. I45 There are many men now occupying high positions in railway and commercial circles who were formerly connected with the Illinois-Central Railroad Company. Pirominent among these is Mr. John Newell, president of the , Lake - Shore - and - Michigan - Southern Railway Company. As far back as 1855, Mr. Newell was division-engineer on the main line. His knowledge of engineering and his experience in that profession served him well when he returned to the service of the company. He was elected, its president in 187 1. During his presidency, he encountered a larger proportion of trials than ordinarily fall to the lot of the railway-manager. They might be summed up chiefly in three words — grangerism, fire, and panic. In 1 87 1, the legislature enacted the first granger law, which proved so. odious in its terms that the supreme court of the state declared it unconstitutional. But, in the mean time, it inflicted untold hardships upon the railways of the state, and, owing to its peculiar geographical position, none suffered worse than the Illinois -Central Railroad. On more than one occasion, law- less mobs undertook to dictate how the trains should be run on the road. If there is any one thing that the average railway- manager especially rebels against, it is to have outsiders interfere with the running of his trains. The good sense of the people soon prevailed, and another law, not so objectional in its provi- sions, was passed two years after. The great Chicago fire, of Oct. 8 and 9, 1871, destroyed a very large amount of the company's property, including its freight- houses with all the valuable goods stored in them; also, one of the large grain-elevators with its contents,* and the commodious passenger-depot. These severe losses almost paralyzed for the * The other elevator was saved through a fortunate circumstance. There happened to be loaded on a flat-car in the freight -yard a steam, fire-engine which had been ordered from an eastern manufacturer for Beloit, Wisconsin. The man in charge of it volunteered to assist in unloading it and putting it in position for service, and, by taking suction from the lake, a. well-directed stream was applied to the huge building just as the flames began to lick up the belting inside the door. The engine, which had done such valuable service, was purchased by Messrs. J., and E. Buckingham, the lessees of the elevators. 10 146 T. B. BLACKSTONE — MARVIN HUGHITT. time being the business of the road. As entrance to the com- pany's grounds in Chicago was completely obstructed, it was im- possible to receive or forward freight. The company's money loss by the fire was about $300,000. This, fortunately, was largely covered by insurance in a reliable company — the Liver- pool and London and Globe of London — which promptly paid its obligation in full. In 1873, a financial panic swept over the country with all its concomitant evils, rendering successful administration of railroad affairs a matter of no ordinary difficulty. The business of the country was greatly unsettled and prices of produce fell to a very low point. Corn sold on the board of trade, Chicago, in June of that year, as low as 27 cents,* and, owing to the diversion of grain-carrying vessels to the ore trade — then quite active, it was difficult to make charters. The consequence was that the com- pany's elevators were soon filled and the movement of this class of traffic in the direction of Chicago was almost suspended. The company was compelled to pay exorbitant lake-and-canal rates in order to relieve their elevators ; and, in some instances^ as high as 33 cents per bushel was paid on wheat to New York — vessel owners naturally taking advantage of the situation. Mr. Newell, during all these and other various trials, proved himself equal to every emergency; and the affairs of the com- pany during his connection with its management, April 14, 1871 to September 11, 1874, were administered with fidelity and on his part with an unflinching adherence to what he believed to be for the best interests of the shareholders. Timothy B. Blackstone, the president of the Chicago -and - Alton Railway, was one of the division -engineers who assisted Col. R. B Mason in surveying, locating, and constructing the line of the road and was with him from May, 1851, to December, 1855- Mr. Marvin Hughitt was born in August, 1837, and may be said to have begun his railroad experience with the Chicago-and- Alton Railroad in 1856, in the capacity of superiutendent of telegraph and train-despatcher. He entered the service of the * This is the lowest price touched in twenty-five years. MANAGEMENT DURING THE WAR. 147 Illinois - Central Railroad Company in 1862, and occupied the positions of superintendent of telegraph, train-despatcher, assist- ant-general-superintendent, and general -superintendent, succes- sively. He was appointed general-superintendent in 1866 — suc- ceeding W. R. Arthur, who had held that position for about seven years — and remained in that position until 1870. The period of his connection with the company was a somewhat trying one. It was during the stormy days of the rebellion, when the railway ser- vice was a hard field to occupy. The demoralization incident to the war seemed to permeate every part of the line and unfortu- nately it was not confined to the subordinates. Many of the men in the different departments having enlisted in the army, their places had to be supplied by new and inexperienced hands. Per- fect discipline was practically impossible. The earnings of the line were very large, but all supplies and materials had to be bought at war-prices. The equipment, both in quantity and quality, was inadequate to the demands upon it, and these demands were all the more diffieult to meet with an unballasted roadbed upon a prairie soil. These disadvantages, particularly at a time when the resources of the road were greatly overtaxed, required about as much heroism as any that was displayed on the field of battle,, and reflected great credit upon those who could bring good results out of such comparatively disordered conditions, and Mr.. Hughitt was well entitled to a share of this credit. For awhile, the United - States government hesitated about making payments to the company for transportation of troops, and munitions of war. Hon. Elihu B. Washburne, then a mem- ber of congress from Illinois, took the ground that the company was obliged under its charter to carry them free. If congress adopted this view, it meant bankruptcy for the road. The matter- was very thoroughly discussed and exhaustively examined by congress, and a conclusion was reached in exact accordance withi the charter — that the roadbed should remain open a "public highway" free for the transportation of troops and war -materials, for the government; but that the company was not expected to> furnish equipment supplies and men free. An adjustment was- made by which the company received a proportion of cash earn- 148 IOWA LINES — DUBUQUE BRIDGE. ings corresponding to the value of the train service and labor supplied by it in the work it did for the government. The year after the close of the war, 1866, there was a large decline in the passenger traffic consequent upon the discontinu- ance of hostilities. The South had been desolated by the war, its labor system was disorganized and its industries were not yet reconstructed, so that its impoverished people were unable to purchase much. The southern states not taking their usual' supply of food from the north, traffic in that direction decreased. The roadbed and equipment, owing to the heavy traffic of the five years preceding, were greatly deteriorated and this called for large expenditures in the way of reconstruction, sadly affecting net results. October i, 1867, the Dubuque-and-Sioux-City Railroad was leased; but all the traffic at Dunleith had to be transported across the river to Dubuque by ferry. This year the construction of the Dunleith-and-Dubuque bridge was commenced, but* it was not opened for business until January i, 1869. In 1869, the corn crop in central Illinois was a failure. 54 miles of Cedar- Falls-and-Minnesota ,and 49 miles of the lovva-Falls-and-Sioux- City railroads were constructed this year but both lines — the former to Mona and the latter to Sioux City — were not completed until the following year. In 1869, the Iowa system reached the total length of 402 miles. In 1870, an arrangement was made with the Belleville-and- Southern-Illinois Railroad for running through trains between Cairo and St. I^ouis. In 187 1, Mr. Hughitt was succeeded as general-superintendent by Mr. Abram Mitchell, having resigned to accept the position of assistant-general-manager of the Chicago,-Milwaukee-and-St.- Paul Railway. In the same year, he became superintendent of the Pullman Palace-Car Company. In February, 1872, his con- nection with the Chicago-and-Northwestern Railway commenced, in which company he held with great credit to himself and to the material prosperity of said company the various positions of superintendent, general-manager, and second vice-president, and finally rose to the presidency. CONCLUSION. 149 The present managers of the Illinois-Central Railroad Com- pany have a goodly heritage. They would do well to emulate the example of their predecessors in carrying along a work born in integrity of purpose — prosecuted with heroism under every conceivable adversity to a successful completion — and now com- ing into their hands within the past half-dozen years with no taint of mismanagement — with no shadow of questionable transactions — or wrong doing of any sort, involving injustice to their share- holders, their responsibility to whom they so freely acknowledged and so faithfully fulfilled. The construction of the Illinois-Central Railroad marked a new era in the history of the state of Illinois, an era in which it could turn from the mortification of broken pledges, and despair of insolvency, to the bright realization of restored credit at home and abroad. Well has the state profited by its sad experience, "internal improvement" need be no longer dreamily indulged in as a joyful anticipation of childish fancy — for it is now being worked out to its fullest completion. Well may its sons rejoice, and let them not forget to honor the memory of those who filled important parts in the work of construction and commercial progress. I50 MILEAGE. ILLINOIS-CENTRAL RAILROAD CO.'S MILEAGE. NORTHERN LINES: Chicago division, Chicago to Cairo, .. -. -- 364.80 Main line, East Dubuque to Main-Line Junction, .. 341.95 South-Chicago branch. Park Side to South Chicago, 4.63 St. Charles air-line, i6th Street to West Side Chicago River, .75 Wisconsin division. South Elmhurst to Freeport, -- 94.80 Madison branch, Freeport to Madison, __ .. .- 61.59 Dodgeville branch, Freeport to Dodgeville, . - - - 65.32 Springfield division. Oilman to Springfield, -. -_ 11 2. 14 Havana branch. Champaign to Havana, .. .. 100.75 Decatur branch, White Heath to Decatur, - - . . 46.06 Pontiac division. Otto to Normal Junction, .. .. 7946 Coal branch, Buckingham to end of track, .. .. 10.00 Pontiac branch, Kempton Junction to Kankakee Junction, 41.80 Rantoul division, West Lebanon to Leroy, - _ _ _ 74.43 1398-48 WESTERN LINES: Dubuque division, Dubuque to Carbon Y, .. .. 187.66 Cedar-Rapids branch, Manchester to Cedar Rapids, 4i-74 Cedar-Falls branch, C. F. and M. Junction to Lyle, ._ 75.80 Cherokee division, Storm Lake to Sioux City, .. i34.9i Sioux-Falls branch, Cherokee to Sioux Falls, .. __ 96.50 Onawa branch, Cherokee to Onawa, .. .. 56.73 593-34 SOUTHERN LINES: Mississippi division. East Cairo to Canton, ._ .. 341.03 Aberdeen branch, Aberdeen to Durant, .. .. 108.25 Louisiana division. Canton to New Orleans, . . . _ 207.45 Yazoo and Mississippi, Yazoo City to Parsons, .. 115-25 Lexington branch, Durant to Tchula Junction, . . 24.67 Memphis division, Memphis to Grenada, .. .. 100.00 896.65 Total mileage 2888.47 DIRECTORS. 151 DIRECTORS OF THE ILLINOIS WITH DATE OF THEIR 1851-1890: *Jonathan Sturges, *George Griswold, *Gouverneur Morris, *David A. Neal, *John F. A. Sanford, . . Franklin Haven, *Leroy M. Wiley, *Robert Rantoul, jr. *Henry Grinnell, *Thomas W. Ludlow, *Joseph W. AIsop, *Gov. Augustus C. French, *Robert Schuyler, -CENTRAL R.R. CO. ELECTION. February February February February February February February February February February February February February 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. 10, 1851. The foregoing, with the governor of Illinois, constituted the first board of directors; the following named were afterward elected: *Morris Ketchum, . . *Wi]liam P. Burrall, *Gov. Joel A. Matteson, *J. Newton Perkins, William H. Osbom, *Frederick C. Gebhard, J. N. A. Griswold, . . James F. Joy, *Thomas E. Walker, *Ebenezer Lane, *Gov. William H. Bissell, Abram S. Hewitt, Deceased. April 15, 1851. March 16, 1853. January i, 1852. August II, 1854. August II, 1854. October 24, 1854. December 5, 1854. March 21, 1854. November 7, 1855. December 6, 1855. January i, 1856. Manch 19, 1856. 15- DIRECTORS. "^Pierre Chouteau, jr., Gustavus W. Smith, *William Tracy, *Gov. Richard Yates, Nathaniel P. Banks, John M. Douglas, James C. Fargo, William R. Arthur, H. H. Hunnewell, . . Edwin H. Sheldon, James Caird, Cunningham Borthwick, Gov. Richard J. Oglesby, Henry Chauncey, Wilson G. Hunt, *Ambrose E. Burnside, . - R. Daniel Wolterbeek, Gov. John M. Palmer, _ . George Bliss, J. Pierpont Morgan, Louis A. Von Hoffman, John Newell, *Lucien Tilton, William H. Gebhard, - . William K. Ackerman, Gov. John L. Beveridge, L. V. F. Randolph, . . *Abram R. Van Nest, - . Frederick Sturges, Constantine Menelas, Gov. Shelby M. CuUom, A. G. Dulman, _ . Stuyvesant Fish, Benjamin F. Ayer, James C. Clarke, *John Elliott, . . * Deceased. March i8, 1857- December 12, 1857. April 12, i§59. January i, i860. September 6, i860. May 29, 1861. May 28, 1862. May 28, 1862. May 28, 1862. May 28, 1862. May 27, 1863. May 27, 1863. January i, 1864. May 25, 1864. June 14, 1864. May 31, 1865. December 13, 1865. January i, 1868. May 27, 1868. May 31, 1871. May 31, 1871. May 31, 1871. May 31, 1871. May 31, 1 87 1. May 29, 1872. January i, 1873. January 28, 1873. January 26, 1875. October 26, 1875. December 15, 1875. January i, 1876. March 16, 1877. March 16, 1877. April 25, 1877. May 30, 1877. May 30, 1877. DIRECTORS. IS3 W. Bayard Cutting, . . Sidney Webster, . . Gov. John M. Hamilton, Edward H. Harriman, . . Gov. Richard J. Oolesby, 2d term, Walther Luttgen, Robert Goelet, S. Van Rensalaer Cruger, WiUiam Waldorf Astor, Oliver Harriman, Levi P. Morton/ John W. Auchincloss, Gov. Joseph W. Fifer, J. C. Welling, _ . *Charles M. Da Costa, _ ' George BHss, May 28, 1879. April, 19, 1882. February 6, 1883 May 30, 1883. January i, 1884 March 12, 1084 March 12, 1884 March 12, 1884 March 11, 1885 March 10, 1886, March 10, 1886 May 3, 1888. January i, 1889 March 9, 1889. March 13, 1889, March 13, 1889, PRESIDENTS: *Robert Schuyler, . . *William P. Burrall, - . John N. A. Griswold, William Henry Osborn, John M. Douglas, _ _ John Newell, Wilson G; Hunt, John M. Douglas, William K. Ackerman, James C. Clarke, Stuyvesant Fish, ' Deceased. March 19, 185 1 to July 11, 1853. July 28, 1853 to Nov. 23, 1854. Jan. 10, 1855 to Dec. i, 1855. Dec. I, 185s to July 11, 1865. July II, 1865 to March 14, 1871. April 14, 1871 to Sept. 11, 1874. Sept. II, 1874 to Jan. 28, 1875. Jan. 28, 1875 to July 17, 1876. Oct. 17, 1877 to Aug. IS, 1883. Aug. 15, 1883 to May 18, 1887. May 18, 1887. FERGUS PRINTtNQ COMPANY, OHIOAOO. irtvt.Tr.- j -.s = j ii»>