Centennial History Of The Pennsylvania Railroad Company 1846-1946 PRR HC

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Centennial History Of The Pennsylvania Railroad Company 1846-1946 PRR HC
Centennial History Of The Pennsylvania Railroad Company 1846-1946  By Burgess & Kennedy
Hard Cover
Copyright 1949
835 Pages
PART ONE
BACKGROUND AND BEGINNINGS
I. The Rivalry for Trade Routes to the West and the Establishment of the Pennsylvania State System of Public Works  1
II. The Impact of the Steam Locomotive on the Public Works System of Pennsylvania 13
III. Early Surveys for an All-Rail Route Across Pennsylvania 25
IV. Beginnings of the Pennsylvania Railroad-The Charter 35
V. The Company is Launched. The Administration of Samuel Vaughan Merrick (1846-1849)  41
VI. The Railroad is Located 45
VII.The Railroad is Built. The Administration of W. C. Patterson (1849-1852) 53
PART TWO
THE GREAT ADMINISTRATION OF J. EDGAR THOMSON (1852-1874) THE PENNSYLVANIA EXPANDS TO ITS PRESENT CONTOURS
VIII. Finances-The Problem of Finding Funds and the Construction of the Railroad from Harrisburg to Pittsburgh (1852-1856)        61
IX. Eyes to the West          74
X. The Pennsylvania Railroad Completed to Pittsburgh. Its Competitors and Connections in 1856        81
XI. The Pennsylvania Acquires the State Public Works (1857) and the Harrisburg, Portsmouth, Mountjoy and Lancaster (1860)         90
XII. Development of the Philadelphia Terminal     101
XIII. The So-Called "Commutation Lines" and Other Branch Lines in Pennsylvania  106
XIV. The Pennsylvania Acquires the Cumberland Valley Railroad and the Northern Central Railway     123
XV. The Pennsylvania Railroad Leases the Philadelphia and Erie (1861) and Acquires the Allegheny Valley (1868)      146
XVI. The Great Westward Expansion
Section I-Formation, Reorganization, and Expansion of the Fort Wayne System, 18561868      176
Section ii-Development of the Southwestern or "Panhandle" System, to Columbus, Ohio, 1854-1868.      188
Section iii-The Critical Year 1869-The Pennsylvania Acquires Routes to Chicago and Indianapolis and Leases the Fort Wayne  195
Section iv-Further History of the Southwestern Developments, 1868-1870: Formation and Completion of the Route to St. Louis and Acquisition of Lines to Cincinnati, Louisville and Vincennes  203
Section v-Formation of Pennsylvania Company and Organization of the Pennsylvania's "Lines West" System, 1870-1871  219
Section vi-Further Development of the Northwestern System, 1870-1873. Lines to Erie, Ashtabula and Toledo  223
XVII. The Pennsylvania Acquires a Through Line to New York (1871)
Section i-The Contract of 1863 With the "Joint Companies" and the Lease of the United Railroads of New Jersey in 1871  233
Section ii-History and Development of the United Railroads and Canal Companies of New Jersey Previous to the Time of the Lease to the Pennsylvania in 1871  241
XVIII. The Pennsylvania Enters the Nation's Capital       272
XIX. The Pennsylvania Railroad and the Anthracite Industry. 282
XX. Development of the Pennsylvania Railroad's Main Line 1856-1873 289
XXI. Investments in Affiliated Companies and Financial Operations and Results, 1856-1873 295
XXII. Revenues and Expenses 308
XXIII. The Stockholders' Investigating Committee of 1874. 314
XXIV. The Pennsylvania Canals 336
PART THREE
THE ADMINISTRATION OF COLONEL "TOM" SCOTT AND THE DEPRESSION OF THE SEVENTIES (1874-1880)
XXV. The New President and the Task of Contraction 341
XXVI. The Rate Wars 358
XXVII. The Oil Traffic and the Empire Transportation Company 362
XXVIII. The Pittsburgh Riots of 1877 365
XXIX. Additions and Extensions, 1874-1880 375
XXX. Corporate and Financial Affairs, 1874-1880 379
PART FOUR
THE ADMINISTRATION OF GEORGE B. ROBERTS (1880-1897) RECOVERY, STABILIZATION AND CONTINUED GROWTH
XXXI. President Roberts 385
XXXII. The Pennsylvania Acquires the Philadelphia, Wilmington and Baltimore 388
XXXIII. A Project in Competitive Expansion - The South Penn Railroad 408
XXXIV. Railroad Building in the Schuylkill Valley and New Jersey. 413
XXXV. Other Extensions of the System 419
XXXVI. Terminal Improvements 428
XXXVII. Property, Finances and Revenue During the Roberts Administration. 438
XXXVIII. The Johnstown Flood and Other Great Floods of 1889. 447
XXXIX. Establishment of the Voluntary Relief Department and the Employes' Saving Fund 450
XL. Death of President Roberts 452
PART FIVE
THE SHORT ADMINISTRATION OF PRESIDENT FRANK THOMSON (1897-1899)
XLI. President Thomson 453
PART SIX
THE ENGINEERING ADMINISTRATION OF PRESIDENT CASSATT (1899-1906)
XLII. Alexander Johnston Cassatt, Railroad Statesman 455
XLIII. The Campaign Against "Rebates"    458
XLIV. The Pennsylvania Extends its Rails to Manhattan Island 463
XLV. The Pennsylvania Acquires The Long Island Rail Road 473
XLVI. The Pennsylvania Acquires the Western New York and Pennsylvania Railway 482
XLVII. New Lines and Main Line Improvements 488
XLVIII. Terminal Improvements         495
XLIX. Financing During the Cassatt Administration504
L. Simplification of Corporate Structure    509
LI. End of the Cassatt Administration; The Projected Railroad System of George J. Gould         513
PART SEVEN
ADMINISTRATION OF JAMES MCCREA (1907-1913)
LII. James McCrea 517
LIII. Extensions and Improvements 519
LIV. Investments and Finances526
PART EIGHT
THE REA ADMINISTRATION (1913-1925)- PERIOD OF THE FIRST WORLD WAR AND ITS AFTERMATH
LV.Samuel Rea. 533
LVI. Extensions and Construction ; the Bridge to New England and the Entrance into Detroit. 536
LVII. Physical Improvements to the Property 543
LVIII. Further Simplification of the Corporate Structure 554
LIX. Investments, Revenues and Financial Results 559
LX. Unification of Lines East and Lines West of Pittsburgh 567
LXI. Labor Troubles and Depressed Revenues After the First World War 570
LXII. The Transportation Act of 1920 and the Consolidation Plan 574
LXIII. Financing During the Rea Administration 582
PART NINE
ADMINISTRATION OF WILLIAM WALLACE ATTERBURY (1925-1935)
LXIV. General Atterbury 589
LXV. Improvements in Operating Efficiency 592
LXVI. Co-Ordination with Other Forms of Transport 599
LXVII. Improvements in Road Property, 1926-1934-The Philadelphia Terminal. 605
LXVIII. Further Electrification and the Terminal Improvements at Baltimore and Newark 612
LXIX. Other Terminal Improvements 622
LXX. Financing the Improvement Program 626
LXXI. The Consolidation Movement Revives 634
PART TEN
THE PRESENT ADMINISTRATION
(1935-)
LXXII. The Late Depression Years, 1935-1939 645
Section i-Electrification to Harrisburg 647
Section ii-Improvements in Service 650
Section iii-The Safety Factor. 656
Section iv-Continued Improvement in Operating Efficiency. 658
Section v-The Impact of Government 659
Section vi-Financial Results 677
LXXIII. The Pennsylvania Goes to War 681
Section i-Preparation for War 681
Section ii-Handling the Wartime Traffic 683
Section iii-Wages and Rates 688
Section iv-The Operating Record 691
Section v-Taxes and Profits 693
Section vi-Debt and Interest Reduction 697
LXXIV. A few Comparisons 701
A Glance towards the Future 705
APPENDIX A       Rolling Stock        709
APPENDIX B       Dividends.783
APPENDIX C       Directors        785
APPENDIX D       Officers      793
APPENDIX E        Capital Stock; Stockholders; Dividends; Market Quotations  799
APPENDIX F        Debt, Guaranties, and Interest Paid    805
APPENDIX G       Employes and Payrolls  807
LIST OF PORTRAITS
Samuel Vaughan Merrick    41
William C. Patterson 53
J. Edgar Thomson    61
Thomas A. Scott    341
George B. Roberts    385
Frank Thomson    453
A. J. Cassatt    455
James McCrea 517
Samuel Rea.     533
W. W. Atterbury 589
M. W. Clement. 645
LIST OF MAPS
Pennsylvania. Showing routes surveyed by Colonel Charles L. Schlatter, 1835-1840 29
Commutation and Other Branch Railroads aided by Pennsylvania R. R. Co. 108
Northern Central Railway Lines and connections about 1874      130
Philadelphia and Erie Railroad; Allegheny Valley Railroad and connections, 1874 148
Railroads in Ohio, about 1870 186
Railroads in Indiana and Illinois, about 1870 187
United New Jersey Lines and Controlled Companies, 1871 244
Pittsburgh, Pa., Showing location of Various Stations 290
Pennsylvania Railroad System as of December 31, 1873 318
Philadelphia, Showing location of Various Stations 354
Philadelphia, Wilmington and Baltimore R.R. System, 1881, and N.Y. P. & N. R.R., 1884 396
Long Island Rail Road, 1900 472
Western New York & Pennsylvania Railway, 1900 484
Vandalia Railroad, 1905          510
LIST OF ILLUSTRATIONS
Horseshoe Curve, about 1870    FRONTISPIECE
Horseshoe Curve, 1945      FRONTISPIECE
Rockville Bridge, 1849, 1877 and 1902 50
Harrisburg Passenger Station 55
First Train at East Liberty, Pa. 56
Pittsburgh Passenger Station 66
Harrisburg Passenger Station, 1860 72
Market Street Bridge, Philadelphia, 1850 80
Broad and Market Streets, Philadelphia, 1860s 82
Bingham House, Philadelphia 83
Locomotive "Wheatland" 90
Belmont Inclined Plane, Philadelphia 91
Allegheny Portage Railroad Inclined Plane 92
Cumberland Valley Railroad Bridge at Harrisburg 125
Philadelphia & Erie R.R. Co. Passenger Station at Williamsport, Pa. 152
Bridge over Ohio River at Steubenville, Ohio, 1888 191
Union Station, Indianapolis, Ind., 1850s 193
Union Station, Indianapolis, Ind., 1888 194
Cincinnati Passenger Station, 1853 207
Camden & Amboy Railroad Train at Bordentown, N. J. Dock, 1834 254
Washington, D. C. Passenger Station, 1873 275
Perryville-Havre de Grace Bridge 352
Philadelphia, Centennial Depot of Pennsylvania R. R 356
Station at Market Street and Lancaster Avenue, Philadelphia       357
28th Street Roundhouse, Pittsburgh, Pa., after riots of 1877        368
Union Station and Grain Elevator, Pittsburgh, Pa., fired by rioters of 1877 370
Pittsburgh, Pa., Equipment destroyed by rioters 372
Union Station, Pittsburgh, Pa., 1896 374
"Ice Bridge" across Susquehanna River between Perryville and Havre de Grace, Maryland 392
Ferryboat "Maryland" 393
Philadelphia, Wilmington & Baltimore R.R. Station, Philadelphia, Pa 394
Broad Street Station, Philadelphia 430
Union Station, Chicago, Illinois 435
The Pennsylvania Limited, 1892     436
The Pennsylvania Limited, 1899            437
Jersey City Ferry 463
"Sandhogs" at work on construction of Tunnels into New York City 466
Pennsylvania Station, New York City 468
Philadelphia "High Line" 496
Union Station, Baltimore, Maryland 522
Union Station, Chicago, Illinois 552
Pennsylvania Station, 30th Street, Philadelphia 610
Broad Street Suburban Station, Philadelphia 648
Coal Handling Machine at Sandusky, Ohio 682
Locomotive "Indiana" 710
"Dauphin" and "Perry" Types of Locomotives 710
Norris Locomotive '"Loyalhanna" 711
Winans "Camel" Locomotive 712
Locomotive Showing Loughridge Chain Brake 715
Train equipped with "Westinghouse Air Brake" 716
Class I (Hl) Locomotive (1875) 722
Class I (Hl) Locomotive (1881) 723
Class R (H3) Locomotive (1885) 724
Class H6 Locomotive (1899) 725
Class L1s Locomotive (1914)  726
Class M1 Locomotive (1923) 727
Class I1s Locomotive (1916) 728
Class J1 Locomotive (1942) 729
Class Q1 Locomotive (1942) 730
Class Q2 Locomotive (1944) 731
Class D2a Locomotive (1881) . 732
Class D14 Locomotive (1894) 732
Class D16 Locomotive (1895) 733
Class G4 Locomotive (1899). 734
Class E3a Locomotive (1902) . 734
Class E3d Locomotive (1906) . 734
Class K4s Locomotive (1914). 736
Class T1 Locomotive (1942). 737
Class S2 Locomotive (1944) . 738
Class B4a Locomotive (1898). 740
Class C1 Locomotive (1924) . 741
Class DD1 Electric Locomotive (1910). 742
Class L5 Electric Locomotive (1924) 743
Class P5 Electric Locomotive (1933) 745
Class GG1 Electric Locomotive (1935) 745
Diesel Locomotive (1945) 746
Interior of early sleeping car 754
Pennsylvania Railroad Passenger Car, 1855 755
First Pullman Sleeper, 1859 756
Pennsylvania Railroad Passenger Car, 1862      756
Pullman Car with "Narrow Vestibule", 1890            757
Interior of dining Car, 1890 759
First Car with "Wide Vestibule", 1893 761
Class P70 Passenger Car not equipped for air conditioning (1907). 762
Class P70 Passenger Car equipped for air conditioning (1933) 762
Class P82R Passenger Car (1938) 762
Class P85BR Passenger Coach (1946) 763
Interior of Class P85BR Passenger Coach (1946) 764
"MU" Train 765
Pennsylvania Railroad Box Car (1855) 771
Pennsylvania Railroad Box Car (1876) 772
Class X-40 Automobile Box Car (1946) 773
Mill Type Gondola Car (G26) (1936) 774
Class GG Hopper Car (1895) 775
Class GL Hopper Car (1898) 775
Class H21 Hopper Car (1909) 776
Class FM Flat Car (1902) 776
"Gun Car" with bridge 777
"Gun Car" with 24 Wheels 777
"Gun Car" with 32 Wheels 777
Foreword
The indispensable part played by the railroads in the development and unification of the vast and diversified territory now embraced in the continental United States, is generally recognized. In fact, for many decades after the advent of the steam locomotive, the unparalleled rapidity of the nation's growth and progress proceeded side by side with the creation and extension of its nation-wide system of railroad transportation.
It is but natural, therefore, that the Pennsylvania Railroad, long one of the principal units in that transportation system, has, in its own growth and development, touched our national life at many different points, and measurably contributed to the evolution of the country's social and economic pattern and unrivalled industrial efficiency.
In the history which follows, these broad and far-reaching aspects are touched upon only by inference and implication. The story which is told is primarily that of the Pennsylvania Railroad as a typical example of American business enterprise in the field of public service. It is the story of how and why this railroad came into being, its expansion from a localized facility to a major trunk line, how it has been administered and operated, and what its contributions have been to the art of transportation and to railroad progress and advancement during its first hundred years of existence.
However, this story in itself, if adequately grasped and broadly understood, serves to shed a significant light of its own on the influences, trends and principles that have worked together in the building of America, and also on some of the deeper issues and problems of our own times.
Many factors have conspired in making the Pennsylvania Railroad what it is today, and what it has been for the last three-quarters of a century-one of the nation's main arteries of commerce and travel, serving directly and through its connections practically every portion of our own country and large areas to the North and South in Canada and Mexico. It may be helpful to summarize here some of the more important of these factors, as a preliminary to the history itself.
Fundamental to everything else, must be placed the prophetic vision of the far-seeing men who guided the railroad's policies in its earliest days and who, even then, clearly perceived the importance and immediate necessity of rail connections to the \Vest, and especially of reaching with all possible speed the Chicago and St. Louis gateways, through which the future traffic of the more remote West might be expected to flow.
While this situation was generally appreciated by other able railroad pioneers of the time, those who were laying the foundations of the Pennsylvania's destiny grasped it with a force and vividness that prompted immediate action. It took not only great initiative, but also great courage and daring, to develop such a policy of broad expansion at a time when railroads were still so new and their future possibilities sensed by only a few exceptional minds : hut it was never at any time a policy motivated by a mere blind urge toward bigness. It rested upon the reasoned conviction, which time has proved sound, that a railroad system could not attain its greatest effectiveness and utility until it had rounded out its contours to include its logical sphere of territory. A natural corollary was that this should be accomplished as promptly as possible.
For leadership in realizing the necessity of such a policy, formulating it into a definite program, and supplying the relentless energy and drive to give it effect, the chief credit, by the unanimous judgment of those who know the circumstances, unquestionably belongs to John Edgar Thomson, who was appointed the railroad's first chief engineer in 1847, and from 1852 to 1874 was its third president. More than any other man, he shaped the principles and defined the aims and objectives which have been responsible for the development of the Pennsylvania Railroad system as it exists today. At the close of his administration, which terminated with his death in office, the lines of the System had been extended from the Atlantic seaboard to the Mississippi River and from the Ohio and Potomac Rivers to the Great Lakes. With few exceptions, the territory then covered is the same as now, and the development, improvement and refinement of the System since 1874 have been largely internal.
A most interesting and important feature of the Pennsylvania's policy of logical expansion, in the years when its System was being molded toward its present form, was the fact that its growth and expansion took place largely through establishing friendly cooperation with locally promoted railroad enterprises, which first became connections and later were incorporated into the System, usually through the medium of long-term leases. It was in this manner that the entire portion of the System lying west of Pittsburgh was built up, as well as large and important segments of the eastern lines.
To cite an important specific example, it was in the manner just described that the Pennsylvania extended its service into Chicago by bringing into the System the Pittsburgh, Fort Wayne and Chicago Railroad. Through the Cleveland and Pittsburgh, it reached Cleveland and the water-borne trade of the Great Lakes. The "Panhandle"-more formally, the Pittsburgh, Cincinnati, Chicago and St. Louis Railroad-provided the line from Pittsburgh to St. Louis. The Little Miami gave a connection to Cincinnati, via Columbus.
In the East, the Northern Central brought into the System a strategic rail route from inland water transportation on Lake Ontario to tidewater at the Port of Baltimore, taking in on the way such cities as Elmira, N. Y., and Williamsport and Sunbury, Pa. Over the line of the Philadelphia, Baltimore and Washington Railroad, the Pennsylvania extended its service from Philadelphia to the National Capital. With the Philadelphia and Trenton Railroad and the rail lines of the United New Jersey Railroad and Canal Company, its service was extended from Philadelphia to New York.
This natural method of building up and rounding out the System, step by step, provided a sound and conservative basis of growth. It also had the great advantage of enlisting and perpetuating the support and cooperation of the local communities, on whose business the lines thus incorporated into the System substantially depended.
Still another element contributing to the healthy development of the Pennsylvania Railroad System, especially from the viewpoint of financial soundness, was the consistent policy of plowing earnings back into the property.
The Pennsylvania's management has always believed, and has many times publicly so stated, that the owners of the property the stockholders-are entitled to a reasonable return on their investment in the form of dividends.
However, throughout the years, it was also a policy of management never to pay dividends at the expense of the property. On the contrary, the custom grew, and became traditional, of putting a dollar back into the property for every dollar paid to the stockholders in dividends, and this was for many years a well understood and almost universally approved guiding maxim of Pennsylvania Railroad administrative stewardship.
It was long ago evident that this policy much more than justified itself from the standpoint of the stockholders' own interests. It contributed more than any other factor to the Company's ability to pay its stockholders a return on their investment in every year of its history. The substantial share of net income annually returned to the property not only reduced the cost of current maintenance, but provided means for improvements which progressively increased efficiency and lowered the costs of operation. Beside protecting the net income necessary for reasonable dividends, this also made possible the lowering of transportation rates, so that the public shared the benefits with the stockholders.
Under the conditions of more recent years, it has become extremely difficult, indeed impossible, to continue the practice of this unquestionably sound and equitable policy. An understanding change in regulatory attitude, however, based upon a realization of the principles upon which the railroads have been firmly established in our national economy, would again permit its free exercise, and this program for our future would be one of the most favorable developments in the sphere of railroad transportation that could possibly lie ahead. In its attainment, our hopes rest in complete confidence.
Any review, however brief, of the underlying factors entering into the upbuilding of the Pennsylvania Railroad would be incomplete without reference to the fact that it has never been a football of the stock market. At no time in its history were any of its policies or plans for growth determined, in the slightest degree, by stock market considerations. Nor have its affairs ever been shaped in the interest of financial manipulation. On the contrary, they have always been guided by professional railroad management, working in cooperation with businessmen of the highest ability, engaged in enterprises local to its lines, and concerned with the development of a sound transportation system and not with speculation.
This book deals with the past and not with the future. It presents an interesting and significant story down to the present time, and shows how a great institution was founded and has been built. It will remain for the future to show how that institution can be preserved, and the way provided for its continued progress in usefulness and effectiveness for the public, for its employes, and for its owners.
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