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4. Challenges and More Challenges, 1861
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4. ChallengesandMoreChallenges, 1861 The contract with Doolittle and Streator was terminated and a new one with McHenry was approved. McHenry and his people began to press for more European representation and authority in the American companies as foreign investment increased . Meanwhile, Reynolds cried out for more efficient management. The money crunch and concerns over the manner in which McHenry was disposing of the securities compelled Reynolds to travel to Europe. He met with Salamanca, who expressed dissatisfaction with the slow progress of the A&GW RR. To compound matters, the Civil War was creating a weakness in the money markets and a growing reluctance to invest in America. Back home, Reynolds emphasized the need to tap into the emerging oil market. He also accused Erie and Cleveland interests of trying to prevent construction of the A&GW west of Corry, Pennsylvania. FinancialCrisisandtheComingofWar The year opened under very inauspicious circumstances. The companies of New York and Penna. were in arrears to the contractors $75,000. Streator, trusting to the promises of McHenry, had strained his credit to the utmost and was a large borrower at the Portage County Bank and at the Chau122 tauqua County Bank at Jamestown. Payments were due to men and many of the laborers were in much distress. The terms were by no means amicable between the company and McHenry. He had failed in his promises and did not furnish satisfactory reports of his disposition of the bonds and shares given him by the trustees. He was moreover very anxious to secure the contract of Doolittle and Streator exclusively for himself, and was disposed to embarrass the contractors to compel them to submit to his terms. He had engaged the services of John Fallon, Esq., of Philadelphia, to aid his agent Thallon, and Church who for a long time had not been in cordial sympathy with the other directors, threw his influence to forward McHenry’s plans. Jan. 2. General Dick, Shryock, and I left in the morning by stage to Linesville, thence to Girard, Dunkirk, Salamanca to Jamestown, where we met Hill and Thorp. I here received letter from McHenry saying: “I hope my recent letters have reassured you as to the question of my ability .l.l. I repeat, I am ready to go to Warren.l.l.l.lI am sorry you did not sign the Erie contract (lease). I hope you will have done so, as your refusal gives me some difficulty with Evans.” Fallon wrote that he would not be able to meet us at Jamestown, and Church also failed to make his appearance and Kent was ill. Not having a quorum, the board adjourned to meet at New York January 10. One item of business was the consummation of the details of the E&NY City RR contract which had to be deferred. I ascertained that our contractors were indebted to the Chautauqua Co. Bank $25,700, an amount which caused them some uneasiness. Many creditors and claimants called for dues which we were unable to pay, and it was with much satisfaction I left for New York with Streator, General Dick, and Shryock. Jan. 4. I had a long interview with Thallon and demanded a payment of the $20,000 forwarded by McHenry with instructions not to pay it over until the contract (Doolittle and Streator) should have been transferred to him. I stated that the company would not object to making a reasonable contract with McHenry, but would enter into no negochallenges and more challenges, 1861 123 [35.175.174.36] Project MUSE (2024-03-28 19:34 GMT) tiations while the money arising from negotiations of the company’s securities was retained. Also telegraphed Fallon and Church to meet me in New York. Jan. 5. Streator needs $2,000 today. Thallon under instructions refused to pay over. I read him the power of attorney to McHenry and he showed me the very positive instructions of McHenry. He telegraphed Fallon for advice but without reply. Church and Fallon arrived in the evening and we spent the night investigating accounts and estimating the amount required to finish to Columbus. Kennard’s estimate proved very erroneous, more money being now needed than by his estimate of August. Thallon urged contract for McHenry for the Penna. road and evidently wished to control the New York road. After a long consultation it was decided to obtain accurate reports of the work done in New York and the amount required to complete the same, also amount required...