European Capital, British Iron, and an American Dream: The Story of the Atlantic and Great Western Railroad

2. From Ohio to New York, 1858–1859

2. FromOhiotoNewYork, 1858--1859 Reynolds broke off negotiations with Morton and awarded the contract for construction of the road to Henry Doolittle and W. S. Streator. The Meadville RR, now know as the “Atlantic & Great Western RR of Pennsylvania,” made bonds and stock available in England for cash and iron. James McHenry of London and Don José de Salamanca of Spain became principal fund-raisers. McHenry sent a reputable engineer, Thomas Kennard, to examine and report on the progress of the new line in America. Kennard proved to be a vital force in promoting the interests of the railroad; later he came to superintend its construction. A dispute with Christopher Ward of New York in 1859 led to the formation of the “Atlantic & Great Western RR in NY.” With this organization, all the administrative groundwork for the A&GW RR was complete for a continuous line from New York City to St. Louis, using the six-foot gauge. TheAtlantic&GreatWesternRRofPennsylvania 1858 After submitting to the counsel of the company, Church, for his written opinion regarding the rights of Doolittle under the powers granted by the company to him and Morton, and the claims he might have under and by virtue of agreements between himself and Morton, I decided to draw a contract fair in its terms recognizing the rights of Doolittle and offer it to 61
Morton for acceptance. In case of refusal, [I would] next offer it to Doolittle and some other responsible contractor. I prepared such contract and informed Morton of the unsurmountable objections on the part of the company to the terms proposed by him: the indefinite terms leading to misunderstanding and controversy, the assumption by the company of obligations beyond their ability to perform, leaving them in default in case of controversy and the right of transfer of the contract without the consent of the company. His answer being unsatisfactory, I went on February 6 to New York and spent two weeks. Morton evidently thought that the company would in the end be obliged to accept his terms, and was indisposed to make conces62 from ohio to new york, 1858–1859 Map of the Pennsylvania section of the A&GW. (Reynolds Collection, Allegheny College) sions. I offered to him the contract I had drawn. He refused to sign it. I then asked if he would carry out the terms of the contract made with the P&E. This he declined to do. I offered the same contract to Doolittle and W. S. Streator who acceded to the terms and the same was executed , subject to the approval of the board. On February 28, the contract was submitted to and formally approved by the company. I notified Morton of the termination of all negotiations with him and of the making of the new contract. Samuel T. Hallett states that the prospects [in Europe] are of a most encouraging character: “The capitalists want the whole of the bonds of all the companies. Will pay for them as fast as they can get them; and will take all within 60 or 90 days. Were you here now with bonds, bills, and powers, you could have all the money and warrants from the from ohio to new york, 1858–1859 63 W. S. Streator, one of the contractors for the A&GW. Photo by Chas. K. Bill’s Photographic Gallery, Broadway, New York. (Reynolds Collection, Allegheny College) strongest men in Europe.”Moran,president of the Erie RR,then in Europe , wrote encouragingly of the prospects of the Meadville RR. It now became necessary that the company should send their bonds to trustees in London to be ready for the negotiations under the very rose colored advice from England. These bonds had been executed and deposited with Henry V. Poor of New York, one of the trustees, a man supposed to be honorable in reputation and of good standing in the business community. On February 20, I wrote to Wm. Thorp, then residing in NY, requesting him to take the bonds from Poor and forward them to John Dick, treasurer. Our surprise as well as embarrassment was great when informed of his refusal to surrender them [due to] the present relations of the company with Morton. The contractors desired the bonds in London and we were powerless. It was soon evident that Poor and Morton were in league to force the company to terms, and were determined to use their power without scruple. I was equally resolved to make...