Railroads -- United States; Railroads -- United States -- Finance
In 1884 the elder Garrett died, and his son Robert was elected to
succeed him. The old policy of independence and competition was
continued, the objective point being now an entrance into New York.
“When in 1885 the other trunk lines harmonized their differences, ...”
said the Chronicle, “the Baltimore & Ohio ... pursued its policy of
aggression.... The road must reach Philadelphia ... nay, must push
... on to New York.... Instead of seeking to avoid rivalry, its every
effort seemed to encourage it. Rates were reduced, concessions made
to shippers and travellers, the one idea apparently being to get
traffic no matter what the cost.”[26] The necessity of a secure New
York connection had been impressed upon the company in the course
of the rate wars. The first step was to be actual construction to
Philadelphia, the second, construction or traffic agreements from
Philadelphia to New York. Bonds were issued in April, 1883, for
construction of a so-called Philadelphia branch from Baltimore to the
northern boundary of Cecil County, Maryland,[27] there to connect with
the Baltimore & Philadelphia Railroad, which was being built through
Delaware and Pennsylvania to Philadelphia. Entrance into Philadelphia
was secured over the Schuylkill River East Side Railway, a corporation
organized under the laws of Pennsylvania and doing business in the city
only.[28] The distance was approximately ninety-nine miles; the cost
was later asserted to have been $20,000,000. Beyond Philadelphia the
Baltimore & Ohio relied on an agreement with the Philadelphia & Reading
for trackage to Bound Brook, New Jersey,[29] and on a traffic contract
with the Central of New Jersey for its line from Bound Brook to
Elizabeth.[30] Terminals on Staten Island were secured by purchase of
a controlling interest in the Staten Island Rapid Transit Company,[31]
and connection between Elizabeth and the Island was obtained by new
construction. The strength of this route was in its directness and
in its independence of trunk-line control; its weakness was in its
excessive cost between Baltimore and Philadelphia, and in its reliance
upon traffic contracts north of the latter city. A proposition was
advanced to unite the Baltimore & Ohio, the Philadelphia & Reading,
and the Central of New Jersey with the Richmond Terminal System. This,
however, fell through,[32] and the possibility still existed that
the Baltimore & Ohio might some day construct a line of its own from
Philadelphia to New York.
Public-domain text, read in full here on John Shaqi.
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