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

3. Building the Road, 1860

3. BuildingtheRoad, 1860 Problems increased for Reynolds and the company. McHenry complained that he was not furnished with an adequate supply of securities. Reynolds responded by accusing McHenry’s agents of illegal disbursement of proceeds from the sale of bonds; he feared that lack of control and accountability might result in disaster. It was the beginning of an endless confrontation between the two men. Reynolds also had to ward off overtures of the Erie RR to operate the A&GW RR. In addition to nagging financial stress, U.S. Customs seized a quantity of iron rails imported from England for improper invoicing. Despite these difficulties, the line was opened to Jamestown, New York, in August 1860. Bonds,Rails,andSpikes Jan 2. Thallon advises me of the receipt of another £4,000, making £8,000 within the fortnight; with instructions, “You will use these in case only that Reynolds has agreed to the Erie Contract.” The Erie RR Co. as represented by English interests, were desirous at this early day to secure the operating of our line. As will be seen hereafter, they made a determined effort for a lease when the line was opened to Jamestown, and my positive refusal to sign the lease was the cause of much hostility to me by English Erie RR directors. 85
Church, for McHenry, went to New York where he was engaged in the Hallett and creditors negotiation from January 12 to 31, when he wrote me, “The subscription is completed at last and some $12,000 over.” Kennard sends his certificate to Salamanca. He also drew a draft for £5,000. Jan. 4. McHenry: “Everything wears a very bright appearance now. All difficulties, and they have been very serious owing to early mismanagement , have been surmounted.l.l.l.lI am preparing the Paris market for the New York bonds.” Jan. 20. Hallett subscription to date $165,000. 2,000 tons of iron arrived . Work can commence week after next. A meeting was held in Warren early in the month, and resolutions passed asking for survey and location of our line through Warren county. Jan. 31. Doolittle and Streator have ordered their cars on for the commencement of work. [Doolittle] to be at Cleveland first of week. PurchaseoftheErie&NewYorkCityRR During the last week of January a delegation from Jamestown representing the E&NY City road visited Meadville with overtures for the occupation of their line.1 They proposed that they would rid themselves of Morton and his contract, and would transfer their road to the A&GW Co. on their own terms. It was of course impossible to make definite propositions on either side until the E&NY City Co. should be relieved from the Morton contract. The large amount of work done and the right of way secured rendered the arrangement desirable if it could be consummated on fair terms. Feb. 15. Left at noon with Doolittle, Streator, and General Dick and reached Waterford in time for the cars at 5:00 P.M. and arrived at Columbus at 6:30, where we met Kennard and Hill and Sexton, our right of way and subscription agent. Feb. 16. Spent the day on the line arranging for right of way etc. In the evening Allen, Hall, Shaw, and Williams, of the E&NY City company arrived, and the evening was spent in the discussion of the 86 building the road, 1860 Jamestown route. I had instructed Hill to examine their line and office notes and make report. This report he made to me on the 18th, and strongly advised that arrangements for one securing their road should be consummated. The amount of expenditure on the road $261,000, and estimated to complete $133,000. Feb. 22. From Diary. Wednesday I left home at noon in buggy with my horses. Day warm and clear, and snow almost gone. Roads muddy. Took plank road to Cambridge, Johnstown to Union [Mills]. One of the horses having lost a shoe, left my team to be sent to Columbus in the morning, and took the cars, where I met Judge Miles, and arrived at Columbus where I met Streator, Sexton, and Engineer Taylor, and corps. Feb. 23. After breakfast, Hall, Baker, Chamberlain, and Shaw called and spent the morning in explanation of the condition of their road. I afterwards consulted with [S. E.] Marvin and Bennett on the legal points involved in the transfer of the road, and the necessity of...