第76章 FIFTY-SIX YEARS WITH THE NEW YORK CENTRAL RAILROAD

This president was a violent prohibitionist and had heard that Caldwell was a bonvivant. He sent for Caldwell to discipline or discharge him. After a long and tiresome journey Caldwell arrived at the president's house. His first greeting was: "Mr. Caldwell, do you drink?"Caldwell, wholly unsuspicious, answered: "Thank you, Mr. President, I am awfully tired and will take a little rye."Mr. E. B. Thomas, president of the Lehigh Valley, was a valuable member of the association. The Baltimore and Ohio, as usual, had its president, Mr. Charles F. Mayer, accompanied by an able staff.

The Erie was represented by one of the most capable and genial of its many presidents, Mr. John King.

King was a capital story-teller, and among them I remember this one: At one time he was general manager of the Baltimore and Ohio under John W. Garrett. In order to raise money for his projected extensions, Garrett had gone to Europe. The times were financially very difficult. Johns Hopkins, the famous philanthropist, died.

His immortal monument is the Johns Hopkins University and Medical School. Everybody in Baltimore attended the funeral. Among the leading persons present was another John King, a banker, who was Hopkins's executor. A messenger-boy rushed in with a cable for John King, and handed it to John King, the executor, who sat at the head of the mourners. He read it and then passed it along so that each one could read it until it reached John King, of the Baltimore and Ohio, who sat at the foot of the line. The cable read as follows: "Present my sympathies to the family and my high appreciation of Mr. Johns Hopkins, and borrow from the executor all you can at five per cent. Garrett."Commodore Vanderbilt was succeeded in the presidency by his son, William H. Vanderbilt, who was then past forty years old and had been a successful farmer on Staten Island. He was active in neighborhood affairs and in politics. This brought him in close contact with the people and was of invaluable benefit to him when he became president of a great railroad corporation. He also acquired familiarity in railway management as a director of one on Staten Island.

Mr. William H. Vanderbilt was a man of great ability, and his education made him in many ways an abler man than his father for the new conditions he had to meet. But, like many a capable son of a famous father, he did not receive the credit which was due him because of the overshadowing reputation of the commodore.

Nevertheless, on several occasions he exhibited the highest executive qualities.

One of the great questions of the time was the duty of railroads to the cities in which they terminated, and the decision of the roads south of New York to have lower rates to Philadelphia and Baltimore. New York felt so secure in the strength of its unrivalled harbor and superior shipping facilities that the merchants and financiers were not alarmed. Very soon, however, there was such a diversion of freight from New York as to threaten very seriously its export trade and the superiority of its port. The commercial leaders of the city called upon Mr. Vanderbilt, who after the conference said to them: "I will act in perfect harmony with you and will see that the New York Central Railroad protects New York City regardless of the effect upon its finances." The city representatives said: "That is very fine, and we will stand together."Mr. Vanderbilt immediately issued a statement that the rates to the seaboard should be the same to all ports, and that the New York Central would meet the lowest rates to any port by putting the same in effect on its own lines. The result was the greatest railroad war since railroads began to compete.

Rates fell fifty per cent, and it was a question of the survival of the fittest. Commerce returned to New York, and the competing railroads, to avoid bankruptcy, got together and formed the Trunk Line Association.

New York City has not always remembered how intimately bound is its prosperity with that of the great railroad whose terminal is within its city limits. Mr. Vanderbilt found that the railroad and its management were fiercely assailed in the press, in the legislature, and in municipal councils. He became convinced that no matter how wise or just or fair the railroad might be in the interests of every community and every business which were so dependent upon its transportation, the public would not submit to any great line being owned by one man. The Vanderbilt promptness in arriving at a decision was immediately shown. He called upon Mr. Pierpont Morgan, and through him a syndicate, which Morgan formed, took and sold the greater part of Mr. Vanderbilt's New York Central stock. The result was that the New York Central from that time was owned by the public. It is a tribute to the justice and fairness of the Vanderbilt management that though the management has been submitted every year since to a stockholders'

vote, there has practically never been any opposition to a continuance of the Vanderbilt policy and management.

Among the most important of the many problems during Mr. Vanderbilt's presidency was the question of railway commissions, both in national and State governments. In my professional capacity of general counsel, and in common with representatives of other railroads, I delivered argumentative addresses against them. The discussions converted me, and I became convinced of their necessity. The rapidly growing importance of railway transportation had created the public opinion that railway management should be under the control and supervision of some public body; that all passengers or shippers, or those whose land was taken for construction and development, should have an appeal from the decision of the railway managers to the government through a government commission.