“The railroad is sprung from the application of two fundamental ideas - one the use of a mechanical means of developing speed, the other the use of a smooth running surface to diminish friction.”
One transformed millions of acres of uncultivated land
into fertile farms, while the other furnished the transportation which
carried the crops to distant markets. Before these inventions appeared,
it is true, Americans had crossed the Alleghanies, reached the
Mississippi Valley, and had even penetrated to the Pacific coast; thus
in a thousand years or so the United States might conceivably have
become a far-reaching, straggling, loosely jointed Roman Empire,
depending entirely upon its oceans, internal watercourses, and imperial
highways for such economic and political integrity as it might achieve.
But the great miracle of the nineteenth century--the building of a new
nation, reaching more than three thousand miles from sea to sea, giving
sustenance to more than one hundred million free people, and diffusing
among them the necessities and comforts of civilization to a greater
extent than the world had ever known before is explained by the
development of harvesting machinery and of the railroad.
The railroad is sprung from the application of two fundamental
ideas--one the use of a mechanical means of developing speed, the other
the use of a smooth running surface to diminish friction. Though these
two principles are today combined, they were originally absolutely
distinct. In fact there were railroads long before there were steam
engines or locomotives. If we seek the real predecessor of the modern
railroad track, we must go back three hundred years to the wooden rails
on which were drawn the little cars used in English collieries to
carry the coal from the mines to tidewater. The natural history of this
invention is clear enough. The driving of large coal wagons along the
public highway made deep ruts in the road, and some ingenious person
began repairing the damage by laying wooden planks in the furrows. The
coal wagons drove over this crude roadbed so successfully that certain
proprietors started constructing special planked roadways from the mines
to the river mouth. Logs, forming what we now call "ties," were placed
crosswise at intervals of three or four feet, and upon these supports
thin "rails," likewise of wood, were laid lengthwise. So effectually did
this arrangement reduce friction that a single horse could now draw a
great wagon filled with coal--an operation which two or three teams,
lunging over muddy roads, formerly had great difficulty in performing.
“In the United States three new methods of transportation made their appearance at almost the same time-the steamboat, the canal boat, and the rail car.”
The next improvement was an attempt
to increase the durability of the wagons by making the wheels of iron.
It was not, however, until 1767, when the first rails were cast entirely
of iron with a flange at one side to keep the wheel steadily in place,
that the modern roadbed in all its fundamental principles made its
appearance. This, be it observed, was only two years after Watt had
patented his first steam engine, and it was nearly fifty years before
Stephenson built his first locomotive. The railroad originally was as
completely dissociated from steam propulsion as was the ship. Just
as vessels had existed for ages before the introduction of mechanical
power, so the railroad had been a familiar sight in the mining districts
of England for at least two centuries before the invention of Watt
really gave it wings and turned it to wider uses. In this respect the
progress of the railroad resembles that of the automobile, which had
existed in crude form long before the invention of the gasoline engine
made it practically useful.
In the United States three new methods of transportation made their
appearance at almost the same time--the steamboat, the canal boat,
and the rail car. Of all three, the last was the slowest in attaining
popularity. As early as 1812 John Stevens, of Hoboken, aroused much
interest and more amused hostility by advocating the building of a
railroad, instead of a canal, across New York State from the Hudson
River to Lake Erie, and for several years this indefatigable spirit
journeyed from town to town and from State to State, in a fruitless
effort to push his favorite scheme. The great success of the Erie Canal
was finally hailed as a conclusive argument against all the ridiculous
claims made in favor of the railroad and precipitated a canal mania
which spread all over the country.
Yet the enthusiasts for railroads could not be discouraged, and
presently the whole population divided into two camps, the friends of
the canal, and the friends of the iron highway. Newspapers acrimoniously
championed either side; the question was a favorite topic with debating
societies; public meetings and conventions were held to uphold one
method of transportation and to decry the other.
“The Pennsylvania was the first American railroad to lay steel rails and the first to lay Bessemer rails; it was the first to put the steel fire-box under the locomotive boiler; it was the first to use the air brake and the block signal system; it was the first to use in its shops the overhead crane.”
Louis, with branches reaching southward to Cincinnati and northward to
Chicago. This system--then known as the "Pan Handle" route and later as
the Pittsburgh, Cincinnati, Chicago and St. Louis was a consolidation
of several independent properties of importance which had been gradually
extending themselves over this territory during the previous decade.
This new system, which embraced over fourteen hundred miles of road,
gave the Pennsylvania a second line to Chicago, a direct line to
St. Louis, a second line to Cincinnati, and access to territory not
previously tapped.
While the achievements of the Pennsylvania Railroad Company during these
years of consolidation and expansion are not to be compared with those
of more modern times, it is well to realize that even as early as the
seventh decade of the last century this railroad was always in the
forefront in matters of high standards and progressive practice. It
was the pioneer in most of the improvements which were later adopted
by other roads. The Pennsylvania was the first American railroad to lay
steel rails and the first to lay Bessemer rails; it was the first to put
the steel fire-box under the locomotive boiler; it was the first to use
the air brake and the block signal system; it was the first to use in
its shops the overhead crane.
In these earlier years also the Pennsylvania had established its
enviable record for conservative and non-speculative management. No
railroad wrecker or stock speculator had ever had anything to do with
the financial control of the company, and this tradition has been passed
on from decade to decade. The stockholders themselves, even in those
days of loose methods and careless finance, had the dominating voice
in the affairs of the company and were also factors in the approval or
disapproval of any proposed policies. In the matter of its finances
the Pennsylvania developed and established an equally clean record. The
company began almost at the beginning to pay a satisfactory dividend on
its shares and continued to do so right through the Civil War period.
Since the through line from Philadelphia to Pittsburgh was opened, not
a single year has passed without the payment of a dividend--a sixty-year
record which can be duplicated by no other American railroad system.
The Pennsylvania still continued to forge ahead even during the exciting
period from 1877 to about 1889, when the trunk lines were aggressively
carrying on that policy of cutthroat competition between Chicago and the
Atlantic seaboard which resulted in so severely weakening the credit
and position of properties like the Baltimore and Ohio and the Erie.
“As a result of these new conditions, the States, cities, and towns were welded together, and population and prosperity increased rapidly in those inland sections which had formerly languished because they had no means of easy and rapid communication.”
As a result the Baltimore and Ohio
of the present decade has reached an enviable position as one of
the great Eastern trunk lines, comparing well with other progressive
properties like the Pennsylvania, the New York Central, the Southern,
the Illinois Central, and the Louisville and Nashville. Millions have
been poured into the property in the past fifteen years; its main lines
have been largely rebuilt; its rolling stock is chiefly of the most
modern types; and its terminals and structures are such as modern
conditions demand.
CHAPTER VI. LINKING THE OCEANS
In 1862, when the charter was granted by the United States Government
for the construction of a railroad from Omaha to the Pacific coast,
the only States west of the Mississippi Valley in which any railroad
construction of importance existed were Iowa and Missouri. During the
three decades which had passed since the first railroad construction,
the earlier methods of transportation by boat, canal, and stage coach
gave place in the Eastern half of the United States to more modern
methods of transportation. As a result of these new conditions, the
States, cities, and towns were welded together, and population and
prosperity increased rapidly in those inland sections which had formerly
languished because they had no means of easy and rapid communication.
The construction of extensive railways, however, and particularly the
consolidation of small, experimental lines into large systems, dates
from the days of the discovery of gold in California. The nation did
not begin to realize the extraordinary possibilities of the vast
Western territory until its attention was thus suddenly and definitely
concentrated on the Pacific by the annual addition of over fifty million
dollars to the circulating medium. The wealth drawn so copiously from
this Western part of our continent had a stimulating effect on the
commerce, manufactures, and trade of the entire Eastern section. People
began to understand that with the acquisition of California the
nation had obtained practically half a continent, of which the future
possibilities were almost unlimited, so far as the development of
natural resources and the general production of wealth were concerned.
The public conviction that a railroad linking the West and the East was
an absolute necessity became so pronounced after the gold discoveries
of '49 that Congress passed an act in 1853 providing for a survey of
several lines from the Mississippi to the Pacific.
“The development of railroad properties under the Vanderbilt influence was not confined to the territory east of Chicago and the Mississippi Valley.”
In this same year 1885, another event of importance took place. The New
York, West Shore and Buffalo Railroad, which after strenuous efforts
extending over many years had constructed a new trunk line from
Weehawken along the west shore of the Hudson to Albany and thence to
Buffalo, came under the control of the New York Central. The great
system in the Middle West, now known as the "Big Four," or Cleveland,
Cincinnati, Chicago and St. Louis--embracing 750 miles of lines westward
from Cleveland and Columbus, Ohio, to Indianapolis, Springfield, and
Cincinnati, and having traffic connections with St. Louis--was also a
Vanderbilt property at this time, although not under the formal control
of these interests. Another important competing line secured in this
period was the New York, Chicago and St. Louis, built to parallel the
Lake Shore and known as the "Nickel Plate" route. This road extended
from Buffalo to Chicago, and, like the West Shore, had been constructed
with the hope of ultimately selling out to its competitor.
The development of railroad properties under the Vanderbilt influence
was not confined to the territory east of Chicago and the Mississippi
Valley. As early as 1859 a large system of roads had been merged in
the section extending westward from Chicago to Omaha and radiating
throughout Iowa, Minnesota, Kansas, Wisconsin, Missouri, and other
States. This company was known as the Chicago and North Western
Railroad, and its property, which was one of large and growing value,
by 1886 embraced a system of over 3500 miles of road. Although neither
controlled by the New York Central nor directly affiliated therewith, it
was classed as a Vanderbilt property.
While for many years after the death of the Commodore the Vanderbilt
family remained in direct financial and operating control of the New
York Central and its myriad of subsidiary lines and their genius as
railroad builders and operators was distinctly evident, yet the brains
and resources of the Vanderbilts were not alone responsible for
the brilliant career of the system down to recent times. William H.
Vanderbilt, though a man of unusual ability, did not possess the breadth
of view or the sagacity of his father, and in the course of a few years
he found himself exposed to a cyclone of public criticism.
“In fact there were railroads long before there were steam engines or locomotives.”
Before these inventions appeared,
it is true, Americans had crossed the Alleghanies, reached the
Mississippi Valley, and had even penetrated to the Pacific coast; thus
in a thousand years or so the United States might conceivably have
become a far-reaching, straggling, loosely jointed Roman Empire,
depending entirely upon its oceans, internal watercourses, and imperial
highways for such economic and political integrity as it might achieve.
But the great miracle of the nineteenth century--the building of a new
nation, reaching more than three thousand miles from sea to sea, giving
sustenance to more than one hundred million free people, and diffusing
among them the necessities and comforts of civilization to a greater
extent than the world had ever known before is explained by the
development of harvesting machinery and of the railroad.
The railroad is sprung from the application of two fundamental
ideas--one the use of a mechanical means of developing speed, the other
the use of a smooth running surface to diminish friction. Though these
two principles are today combined, they were originally absolutely
distinct. In fact there were railroads long before there were steam
engines or locomotives. If we seek the real predecessor of the modern
railroad track, we must go back three hundred years to the wooden rails
on which were drawn the little cars used in English collieries to
carry the coal from the mines to tidewater. The natural history of this
invention is clear enough. The driving of large coal wagons along the
public highway made deep ruts in the road, and some ingenious person
began repairing the damage by laying wooden planks in the furrows. The
coal wagons drove over this crude roadbed so successfully that certain
proprietors started constructing special planked roadways from the mines
to the river mouth. Logs, forming what we now call "ties," were placed
crosswise at intervals of three or four feet, and upon these supports
thin "rails," likewise of wood, were laid lengthwise. So effectually did
this arrangement reduce friction that a single horse could now draw a
great wagon filled with coal--an operation which two or three teams,
lunging over muddy roads, formerly had great difficulty in performing.
“The nation did not begin to realize the extraordinary possibilities of the vast Western territory until its attention was thus suddenly and definitely concentrated on the Pacific by the annual addition of over fifty million dollars to the circulating medium.”
CHAPTER VI. LINKING THE OCEANS
In 1862, when the charter was granted by the United States Government
for the construction of a railroad from Omaha to the Pacific coast,
the only States west of the Mississippi Valley in which any railroad
construction of importance existed were Iowa and Missouri. During the
three decades which had passed since the first railroad construction,
the earlier methods of transportation by boat, canal, and stage coach
gave place in the Eastern half of the United States to more modern
methods of transportation. As a result of these new conditions, the
States, cities, and towns were welded together, and population and
prosperity increased rapidly in those inland sections which had formerly
languished because they had no means of easy and rapid communication.
The construction of extensive railways, however, and particularly the
consolidation of small, experimental lines into large systems, dates
from the days of the discovery of gold in California. The nation did
not begin to realize the extraordinary possibilities of the vast
Western territory until its attention was thus suddenly and definitely
concentrated on the Pacific by the annual addition of over fifty million
dollars to the circulating medium. The wealth drawn so copiously from
this Western part of our continent had a stimulating effect on the
commerce, manufactures, and trade of the entire Eastern section. People
began to understand that with the acquisition of California the
nation had obtained practically half a continent, of which the future
possibilities were almost unlimited, so far as the development of
natural resources and the general production of wealth were concerned.
The public conviction that a railroad linking the West and the East was
an absolute necessity became so pronounced after the gold discoveries
of '49 that Congress passed an act in 1853 providing for a survey of
several lines from the Mississippi to the Pacific. Though the published
reports of these surveys threw a flood of light on the interior of
the continent, they led to no definite result at the time because the
rivalry of sections and groups of interests for the selection of this or
that route held up all progress.
The Act of 1862, which created the Union Pacific Railroad Company,
together with the amending Act of 1864, authorized the construction of
a main line from an initial point "on the one hundredth meridian of
longitude," in the Territory of Nebraska to the eastern boundary of
California, with branch lines to be constructed by other companies
and to radiate from this initial point to Sioux City, to Omaha, to St.
“When business revived in the closing years of the nineteenth century, the history of American railroads began a new chapter.”
Consequently when the period of depression arrived with the
panic of 1893, the Vanderbilt properties were, as a whole, in a strong
position to meet the changed situation and, like the great Pennsylvania
property, they all passed through to the advent of the new industrial
era without the defaulting of a bond or the passing of a dividend. The
remarkable character of this achievement is evident in view of the fact
that in the period from 1893 to 1898 more than sixty-five per cent of
all the railroad mileage in the United States went into the hands of
receivers.
After the close of this era of panic, the Vanderbilt lines began
expanding again, though on a much smaller scale than in their more
active time. In 1898 William K. Vanderbilt, then president, made the
announcement that the New York Central had leased the Boston and Albany
Railroad, at that time a lucrative line running from Albany across
Massachusetts into Boston. This gave the system an entry into the New
England field, which it has continuously held since. A few years later
this New England interest was increased by the acquisition of the
Rutland Railroad in Vermont, thus making connection with the Ogdensburg
and Lake Champlain, a line running across the northern part of New York
State, which had also come under Vanderbilt control.
When business revived in the closing years of the nineteenth century,
the history of American railroads began a new chapter. Federal railroad
regulation, which started in a moderate way with the passage of the
Interstate Commerce Act in 1887, had steadily increased through the
years; the Sherman Anti-trust Act, passed in 1890, had been interpreted
broadly as affecting the railroads of the country as well as the
industrial and other combinations. These influences had thus greatly
curtailed the consolidation of competing lines which had gone on so
rapidly during the decades following the Civil War. Railroad managers
and financiers therefore began to face a very serious problem.
Competition of a more or less serious nature was still rampant, rates
were cut, and traffic was pretty freely diverted by dubious means.
Consequently many large railroad systems of heavy capitalization bid
fair to run into difficulties on the first serious falling off in
general business.
Great men are usually the products of their times and one of the men
developed by these times takes rank with the greatest railroad leaders
in history.
“It was a simple matter to find fault with the railroad; it has always been its fate to arouse the opposition of the farmers.”
The great success of the Erie Canal
was finally hailed as a conclusive argument against all the ridiculous
claims made in favor of the railroad and precipitated a canal mania
which spread all over the country.
Yet the enthusiasts for railroads could not be discouraged, and
presently the whole population divided into two camps, the friends of
the canal, and the friends of the iron highway. Newspapers acrimoniously
championed either side; the question was a favorite topic with debating
societies; public meetings and conventions were held to uphold one
method of transportation and to decry the other. The canal, it was
urged, was not an experiment; it had been tested and not found wanting;
already the great achievement of De Witt Clinton in completing the Erie
Canal had made New York City the metropolis of the western world. The
railroad, it was asserted, was just as emphatically an experiment; no
one could tell whether it could ever succeed; why, therefore, pour money
and effort into this new form of transportation when the other was a
demonstrated success?
It was a simple matter to find fault with the railroad; it has always
been its fate to arouse the opposition of the farmers. This hostility
appeared early and was based largely upon grounds that have a familiar
sound even today. The railroad, they said, was a natural monopoly;
no private citizen could hope ever to own one; it was thus a kind of
monster which, if encouraged, would override all popular rights. From
this economic criticism the enemies of the railroad passed to details
of construction: the rails would be washed out by rains; they could
be destroyed by mischievous people; they would snap under the cold
of winter or be buried under the snow for a considerable period, thus
stopping all communication. The champions of artificial waterways would
point in contrast to the beautiful packet boats on the Erie Canal, with
their fine sleeping rooms, their restaurants, their spacious decks on
which the fine ladies and gentlemen congregated every warm summer day,
and would insist that such kind of travel was far more comfortable than
it could ever be on railroads. To all these pleas the advocates of the
railroad had one unassailable argument--its infinitely greater speed.
“By this time Vanderbilt had achieved a great reputation as a man who created values, earned dividends, and invented wealth as if by magic; other railroad managers now began... ask him to do with them what he had done with the Harlem and the Hudson River. ”
Consequently many large railroad systems of heavy capitalization bid fair to run into difficulties on the first serious falling off in general business.
Horses and mules, and even sail cars, made more rapid progress than did the earliest locomotive.