"If the N. W. needs the privileges of our charter or the land grant which attaches to the portion of the line from Escanaba to the Menominee, we ought to accord them so that we incur no pecuniary liability for the construction or operation of the line. "If the N. W. needs that we consent to a modification of the drawback which it is to allow us on its whole 242 miles for joint business that comes to or from the Peninsula--we may do that. "But we cannot dilute our present investment by what will be inferior, though incidentally very desirable to us; or enlarge our undertaking from what we know to be completely within our means, of which we have measured the cost, and except to a very subordinate extent fixed it by purchases and contracts. If any of us aid the line south by taking an interest in it, it will be as a separate adventure. "Not only has this been our uniform answer to such suggestions, but our present mortgage expressly excludes any extensions south from its provisions in favor of extensions north. "Now as to extensions north, our policy would be not less provident. We must feel our way, accepting only what will surely be remunerative and not diluting our investment. "So much in answer to your letter. "Now a few words in addition on the general subject. "1. Separately, our charges can scarcely fail to be affected 25 cents by the mutual fear of competition, alleviated as much as possible. That all comes from the profits on 300,000 tons; it is the interest on a million. "2. In a state of paper-money prices, advancing constantly because of increasing issues, we can protect ourselves only by making rates correspond with daily increasing expenses. "This is not apt to be done with sufficient promptitude and boldness. "You will be and we shall be timid and laggard in meeting the exigencies which are before us--from fear of competition and from the delay which always attends arrangements between independent parties. "3. We should better our condition as to our land grants if our efforts were joined. We could do so at the present session of Congress. "There are other considerations which I have not time to discuss. "It is necessary to arrive at results as soon as possible. "1. Some important construction we have deferred to await the negotiations. "2. We shall soon have to decide important questions which would be affected very materially by the junction of our interests. Of course, we are not so improvident as to act now on the hypothesis of successful negotiations between us.